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☆ Premarket stocks: Bank CEOs are already complaining about new regulations they haven't even seen yet
▼ + stars: | 2023-07-19 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Investors, worried about the economic atmosphere and the recent regional banking collapse, breathed a sigh of relief at the results. Jamie Dimon, head of JPMorgan Chase, commented on the bank’s Friday earnings call that non-bank financial rivals were “dancing in the streets” as regulators get ready to increase bank capital requirements. “This is great news for hedge funds, private equity, private credit, Apollo, Blackstone,” Dimon said of the proposed regulations. The change, they say, will increase the financial system’s resilience following the failures of three regional banks earlier this year. “The capital in the industry is sufficient,” said Bank of America CEO Brian Moynihan on his company’s earnings call Tuesday morning.

Persons: Jamie Dimon, JPMorgan Chase, ” Dimon, ”, Jeremy Barnum, Barnum, don’t, Brian Moynihan, “ They’ve, Morgan Stanley, James Gorman, Elizabeth Warren, Richard Blumenthal, Tammy Duckworth, Martin Gruenberg, “, Taylor Marr, That’s, they’re, Bryan Mena, Neil Saunders Organizations: CNN Business, Bell, New York CNN, Silicon Valley Bank, JPMorgan, Blackstone, of America, CNBC, Valley Bank, Signature Bank, Federal Deposit Insurance, Redfin, Retail, Commerce Department Locations: New York, Silicon, Basel, Massachusetts, Elizabeth Warren , Connecticut

☆ US banks' residential mortgages face mandates exceeding global standards - Bloomberg News
▼ + stars: | 2023-07-18 | by ( Reuters Staff | ) www.reuters.com time to read: +1 min

FILE PHOTO: The Federal Deposit Insurance Corp (FDIC) logo is seen at the FDIC headquarters. REUTERS/Jason Reed/File Photo(Reuters) - U.S. bank regulators are set to release their plans next week for a sweeping overhaul of capital rules, with the latest draft including requirements for large lenders’ residential mortgages that go beyond international standards, Bloomberg News reported on Monday. The changes would be part of the U.S. version of a global accord known as Basel III that followed the financial crisis, according to the report. The OCC and the FDIC did not immediately respond to Reuters’ requests for comment. The proposal is the first major rule led by Fed Vice Chair for Supervision Michael Barr, who has launched a sweeping review of capital rules and is expected to be tough on Wall Street.

Persons: Jason Reed, Michael Barr Organizations: Federal Deposit Insurance Corp, REUTERS, Bloomberg, Basel III, Federal Reserve, Currency, OCC, FDIC, Reuters, U.S . Federal, Banking, Silicon Valley Bank, Fed Locations: U.S, Basel, Silicon

Federal banking regulators are expected to introduce proposals in the coming weeks requiring banks to keep more cash on hand to ensure the financial system remains stable. The nation's largest lender may increase prices or abandon some products as a way to offset the higher capital costs, Barnum said. One key new expected rule would require banks to hold more capital against certain trades. Meanwhile, banks are staying cautious and preserving capital until there is more clarity around the rules. Wells Fargo was expecting capital requirements to climb and weighing the potential effect on stock buybacks, CEO Charlie Scharf told investors on its call.

Persons: Michael Barr, Jeremy Barnum, Barnum, Jane Fraser, Wells Fargo, Charlie Scharf, Blackstone, Jamie Dimon, Pete Schroeder, Nupur Anand, Saeed Azhar, Tatiana Bautzer, Lananh Nguyen, Megan Davies, Susan Heavey Organizations: WASHINGTON, Federal, JPMorgan Chase's, JPMorgan, U.S, Treasury, Industry, Blackstone, Apollo, JPMorgan Chase, Thomson Locations: Washington, New York

☆ Fed plans to boost US banks' reserve requirements; industry gripes
▼ + stars: | 2023-07-10 | by ( Pete Schroeder | ) www.reuters.com time to read: +5 min

The banking industry called the effort misguided and economically harmful. ‘HOLISTIC REVIEW’Barr’s speech served as a comprehensive update on a “holistic” review of bank capital rules that he launched shortly after joining the U.S. central bank in 2022. He said he will seek to apply stricter capital rules to banks with more than $100 billion in assets, expanding the pool of firms that must comply. Dashing industry hopes for any rules relief, Barr also said he did not plan to weaken an existing surcharge on large global banks or leverage rules which the industry argued hampered Treasury market functions. The Fed has itself come under criticism for its oversight of banks involved in this year’s banking crisis.

Persons: Michael Barr, Evelyn Hockstein, ” Barr, Barr, Joe Biden, ”, Tim Adams, Jerome Powell Organizations: WASHINGTON, Federal, Federal Reserve, Banking, Housing, Urban Affairs Committee, Capitol, REUTERS, Center, Institute of International Finance, U.S, Silicon Valley Bank, Republican, House, Monday, Bank Locations: Washington , U.S, Washington, Basel, Silicon, U.S

☆ Banks with at least $100 billion in assets could face higher capital limits
▼ + stars: | 2023-07-10 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +4 min

Banks with at least $100 billion in assets would be subject to similar regulation that banks with $700 billion in assets currently face, under Barr’s proposal. These regulations would force banks to hold an additional two percentage points of capital, or an additional $2 of capital for every $100 of risk-weighted assets, Barr said. “Our recent experience shows that even banks [with at least $100 billion in assets] can cause stress that spreads to other institutions and threatens financial stability,” Barr in remarks at the Bipartisan Policy Center. Requiring banks to hold more capital could help mitigate risks that arise when banks are under stress. Barr on Fed’s fight against inflationIn addition to discussing bank regulation, Barr also spoke about the Fed’s plans to get inflation down.

Persons: Michael Barr, Banks, Barr, “, ” Barr, SVB, Kevin Fromer, ”, Dennis Kelleher Organizations: New, New York CNN — Federal, Center, Valley Bank, Financial Services, Wall, Better, CNN Locations: New York

☆ US banks lose favor with European hedge funds, Goldman says
▼ + stars: | 2023-07-06 | by ( Carolina Mandl | ) www.reuters.com time to read: +3 min

Overall, shares in European banks are outperforming U.S. peers as they did not face the deposit flight experienced in the United States. "In Europe, hedge funds have rotated out of banks and insurance into financial services in the past couple of months, but still positioning in European banks remains stronger than in U.S. banks," Goldman Sachs said in the report obtained by Reuters. The data shows European investors are more bullish about banks on their own continent, while they have a more neutral approach to U.S. banks. The gap between European hedge funds' positioning in European and U.S. banks has widened mainly after a crisis this year in which U.S.-based bank Silicon Valley Bank and two other lenders failed. Short interest as a share of free float in U.S. banks grew to 2.3% in June from 1.8% in January, while staying stable for European banks, at 0.6%.

Persons: Goldman Sachs, Wells, Goldman, Morgan Stanley, Carolina Mandl, David Holmes, Clarence Fernandez Organizations: YORK, Dow Jones, Banks, Reuters, Silicon Valley Bank, UBS, Credit Suisse, Bridgewater Associates, JPMorgan & Co, Bank of America Corp, Wells Fargo & Co, Goldman Sachs Group Inc, Thomson Locations: U.S, United States, Europe, Silicon, Swiss

☆ US banks out of favor with European hedge funds, Goldman tells clients
▼ + stars: | 2023-07-05 | by ( Carolina Mandl | ) www.reuters.com time to read: +2 min

NEW YORK, July 5 (Reuters) - European hedge funds have reduced their exposure to U.S. banks at a fast pace since the beginning of the year, while roughly keeping their positioning in European banks, Goldman Sachs (GS.N) said in a recent report sent to clients. Overall, shares in European banks are outperforming U.S. peers as they did not face a deposit flight as happened in the U.S. "In Europe, hedge funds have rotated out of banks and insurance into financial services in the past couple of months, but still positioning in European banks remains stronger than in U.S. banks," Goldman Sachs wrote in the report obtained by Reuters. The data show that European investors are more bullish about banks on their own continent, while they have a more neutral approach to U.S. banks. The gap between European hedge funds' positioning in European and U.S. banks has widened mainly after the banking crisis in which U.S.-based bank Silicon Valley Bank and two other lenders failed earlier this year.

Persons: Goldman Sachs, Wells, Goldman, Morgan Stanley, Carolina Mandl, David Holmes Organizations: YORK, U.S, Dow Jones, Banks, Reuters, Silicon Valley Bank, UBS, Credit Suisse, Bridgewater Associates, JPMorgan, Co, Bank of America Corp, Wells Fargo & Co, Goldman Sachs Group Inc, Thomson Locations: U.S, Europe, Silicon, Swiss

☆ US banks gird for dose of post-stress-test trauma
▼ + stars: | 2023-06-29 | by ( John Foley | ) www.reuters.com time to read: +8 min

NEW YORK, June 29 (Reuters Breakingviews) - For the biggest U.S. banks, the nerves this year come after the exam. Fed stress tests subject banks to a theoretical market shock and incorporate elements of operational risk, and then spit out a “stress capital buffer” requirement tailored to each firm. The risk for banks is that new rules get piled on top of existing regulations in a process known as gold-plating. U.S. banks are awaiting a proposal from their regulators to revamp capital rules, expected in July. Gruenberg said regulators were considering expanding the reach of a stricter set of capital rules to include banks with over $100 billion in assets.

Persons: Goldman Sachs, Michael Barr, Jamie Dimon, Banks, Morgan Stanley, Jay Powell, PwC, watchdogs, Michelle Bowman, Martin Gruenberg, It’s, Gruenberg, Peter Thal Larsen, Streisand Neto Organizations: YORK, Reuters, Federal Reserve, JPMorgan, Citigroup, Banking Supervision, Basel III, America, State Street, Bank of New York Mellon, Big, Bank, U.S ., Reuters Graphics Reuters, Signature Bank, First, Fed, Federal Deposit Insurance, FDIC, Credit Suisse, Committee, “, “ Basel IV, Federal, Thomson Locations: U.S, Basel, Goldman, Big U.S, Swiss, “ Basel

☆ Americans aren't spending like they used to
▼ + stars: | 2023-06-29 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

You can also download the app to get notifications about our biggest markets stories. Spending has remained elevated even through the Fed's 10 straight rate hikes, but warning signs of a change have started to surface. That's going to further take the wind out of Americans' brisk spending over the last few years. From David Rosenberg to Rob Arnott, experts are sharing what the disruptive technology can mean for the economy, jobs, and stock market. The biggest companies and banks can't agree on where the stock market is heading next.

Persons: I'm Phil Rosen, You'll, let's, Derek Davis, Patek Pilippe, Audemars, Jerome Powell, Brian Moynihan, Morgan Stanley, Andy Ryan, Pablo Hernández de Cos, David Rosenberg, Rob Arnott, Stocks, Russell, Goldman Sachs, Phil Rosen, Max Adams, Hallam Bullock Organizations: Big Apple, Portland Portland Press, Getty, Rolex, Bloomberg, Bank of America, Bank of Spain, Fed, Wall Street, Royal, Nvidia, Tesla, Morningstar Locations: Madrid, Phoenix, Miami, Royal Caribbean, New York, London

Banks' commercial real estate portfolios performed better than expected, showing $65 billion in losses or 8.8% of average loan losses, slightly down on last year's 9.8%, the Fed said. "Some may ask how all the banks can get a regulatory thumbs-up when the industry just went through a period of turmoil. The test assesses whether banks would stay above the required minimum 4.5% capital ratio. The average capital ratio for the 23 banks was 10.1%, the Fed said. That compares with 9.7% last year, when the central bank tested 34 lenders against a slightly easier scenario.

Persons: Morgan Stanley, Goldman Sachs, Charles Schwab, Michael Barr, ” Barr, Banks, Barr, Lindsey Johnson, Dennis Kelleher, Ian Katz, Pete Schroeder, Caroline Valetkevich, Deepa Babington, Stephen Coates Organizations: Federal, JPMorgan Chase, Bank of America, Citigroup, Charles Schwab Corp, Deutsche Bank's, Financial Corp, U.S . Bancorp, Valley Bank, Wells, JPMorgan, Industry, Consumer Bankers Association, U.S, Treasury, T Bank, PNC Financial, Citizens Financial, Better, Fed, Capital Alpha Partners, Thomson Locations: Big U.S, Wells Fargo, U.S

Banks typically provide research to clients as part of a broader offering of services, but that changed when the European Union introduced the Markets in Financial Instruments Directive (MiFID) II laws in 2018 to improve transparency. "It took about a year for us to become compliant to MiFID II laws -- it was a long, intense process," said Candace Browning, head of BofA Global Research. U.S. financial firms were initially given an exemption by the U.S. Securities and Exchange Commission, which expires on July 3. "Companies continue to face challenges complying with the MiFID II unbundling requirement and U.S. law," said Joe Corcoran, SIFMA's managing director and associate general counsel for capital markets. 'EXPENSIVE AND COMPLICATED' In Europe, asset managers under MiFID II are not allowed to pay for research through broker commissions on trading -- instead, investors are billed separately by banks for research.

Persons: Banks, Candace Browning, Joe Corcoran, SIFMA's, SIFMA, MiFID, Michael Eastwood, Jefferies, Jesse Forster, BofA, salespeople, Browning, Forster, Russell Sacks, Nupur Anand, Lananh Nguyen, Deepa Babington Organizations: YORK, Bank of America Corp, Jefferies Financial, European Union, Financial, BofA Global, U.S . Securities, Exchange Commission, Securities Industry, Financial Markets Association, SEC, Jefferies, Coalition, King, Spalding, Thomson Locations: Europe, U.S, Greenwich, Coalition Greenwich, New York

☆ How safe are America’s biggest banks? The Fed’s imminent stress tests may offer clues
▼ + stars: | 2023-06-28 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +5 min

That’s because no stress test scenario could perfectly predict the conditions that would cause a bank to collapse. And besides, that’s not the purpose of stress tests, said Covas, a former Fed economist who developed some of the central bank’s early stress tests. The test scenarios were designed before the banking crisisFed officials update the stress test scenarios each year to capture the latest vulnerabilities in the economy. It’s a misconception that “if no bank fails these stress tests are not useful,” or the tests were too easy, Covas said. “You really don’t need a stress test to figure out that SVB had some significant issues,” he added.

Persons: Francisco Covas, that’s, Covas, “, ”, João Granja, they’ve, SVB Organizations: New, New York CNN, Federal, Bank Policy Institute, University of Chicago Booth School of Business, Fed, Silicon Valley Bank, Signature Bank, First Republic Bank, CNN Locations: New York, Silicon

Under the "stress test" exercise, the Fed tests big banks' balance sheets against a hypothetical severe economic downturn, the elements of which change annually. WHY DOES THE FED 'STRESS TEST' BANKS? It announces the size of each bank's stress capital buffer in the subsequent months. For example, the 2022 stress test envisioned a 5.8 percentage point jump in unemployment under a "severely adverse" scenario. This extra test will not count towards banks' capital requirements but will allow the Fed to explore applying multiple adverse scenarios in future.

Persons: Banks, Wells, Goldman Sachs, Morgan Stanley, Michael Barr, Pete Schroeder, Michelle Price, Andrea Ricci Organizations: U.S . Federal, Big, Fed, Citigroup, Bank of America, JPMorgan Chase &, Goldman Sachs, Deutsche Bank's U.S, JPMorgan Citigroup, Wells Fargo & Co, Bank, U.S, Treasury, Thomson Locations: Big U.S, Silicon

The central bank on Wednesday will release the results of its bank "stress tests" which assess how much capital banks would need to withstand a severe economic downturn. The annual exercise, introduced following the 2007-2009 financial crisis, is integral to banks' capital planning, dictating how much cash they can return to shareholders via dividends and share buybacks. Despite the turmoil, and the exam being the hardest in years, bank analysts and executives expect the 23 lenders being tested will show capital in excess of regulatory minimums. While that will not affect capital, it will be used to assess potentially employing multiple scenarios in future stress test exercises. "In an environment of ever-changing risks, stress tests can quickly lose their relevance if their assumptions and scenarios remain static," said Barr in December.

Persons: Nick Zieminski WASHINGTON, JPMorgan Chase, Goldman, Morgan Stanley, jitters, Wells, Jefferies, Randal Quarles, Michael Barr, Barr, Pete Schroeder, Michelle Price, Deepa Babington Organizations: Citibank, REUTERS, Big U.S, Bank, U.S, Treasury, Citigroup Inc, Bank of America, JPMorgan, Goldman Sachs, Capital, U.S . Bancorp, Citizens, Fed, Bank Policy Institute, RBC, Thomson Locations: Jackson, Queens, New York City, U.S, Big, Silicon, Wells Fargo, Washington

☆ Inside JPMorgan's handling of Jeffrey Epstein
▼ + stars: | 2023-06-26 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

This is the last week of 10 Things on Wall Street. But there remains a very large blight on JPMorgan's record that has come back into the spotlight this year: Jeffrey Epstein. Insider's Kaja Whitehouse and Emmalyse Brownstein have a breakdown of JPMorgan's long, drawn-out breakup with Epstein. Read more on JPMorgan's handling of Jeffrey Epstein. The Treasury secretary isn't particularly worried about the potential for more bank mergers this year, per The Wall Street Journal.

Persons: Dan DeFrancesco, I've, I'm, we've, Goldman Sachs, Jeffrey Epstein, Rick Friedman, hasn't, Kaja Whitehouse, Emmalyse, Epstein, Kaja, Read, Janet Yellen, isn't, Moody's, Francis Bacon, We've, Jeffrey Cane, Jack Sommers Organizations: Getty, JPMorgan, Dow, Norges Bank Investment Management, CNBC, Goldman, Street, Financial Times, Sequoia Capital, FDIC, Bloomberg, Dassault Falcon, LinkedIn Locations: NYC, Cambridge, Republic, dealmaking ., New York, London

☆ Japan Investment Corp in $7 billion deal talks with chipmaker JSR, Nikkei reports
▼ + stars: | 2023-06-23 | by ( ) www.reuters.com time to read: +1 min

June 24 (Reuters) - State-backed Japan Investment Corp is in talks to buy the country's top chipmaker, JSR Corp (4185.T), for about 1 trillion yen ($6.96 billion), the Nikkei reported on Saturday. If the deal goes through, JSR would delist from the Tokyo Stock Exchange as soon as 2024, according to Nikkei. To purchase JSR, JIC intends to establish a new company with 500 billion yen in capital, while Mizuho Bank will provide another 400 billion yen in finance. The fund plans to raise 100 billion yen via preferred shares and subordinated loans underwritten by various banks, according to Nikkei. The deal would grant JSR, with its significant 30% share of the global photoresist market, greater freedom for expansion, without being constrained by worries about stock market performance, Nikkei said.

Persons: JIC, Riya Sharma, Arun Koyyur Organizations: Japan Investment Corp, JSR, Nikkei, Tokyo Stock Exchange, Mizuho Bank, Thomson Locations: Bengaluru

Bank regulators led by the U.S. Federal Reserve are finalizing the proposal which would implement international capital standards agreed by the Basel Committee on Banking Supervision in the aftermath of the 2007-2009 financial crisis. On Wednesday, Fed Chair Jerome Powell told Congress it was critical banks have strong capital, but regulators must be mindful of the tradeoffs. Republican officials at the agencies have flagged similar concerns, two people said, while Republican lawmakers on Wednesday also raised worries over capital rules with Powell. The Fed is drafting the Basel rules with the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corp. (FDIC). Speaking to reporters last week, acting Comptroller Michael Hsu said banks had "not been shy about sharing their concerns" which regulators were taking into account.

Persons: Morgan Stanley, Andrew Kelly, Jerome Powell, Michael Barr, Isaac Boltansky, jitters, Powell, “, Kevin Fromer, It's, Michael Hsu, Pete Schroeder, Niket Nishant, Lananh Nguyen, Tatiana Bautzer, Michelle Price, David Gregorio Organizations: New York Stock Exchange, REUTERS, WASHINGTON, Bank, U.S . Federal, Banking, Bankers, Committee, American Express, U.S, UBS, Deutsche Bank, Barclays, Washington, Bank Policy Institute, WALL, Fed, Industry, Republican, Financial Services, Currency, Federal Deposit Insurance Corp, Regulators, FDIC, OCC, Thomson Locations: Manhattan , New York City, U.S, Basel, Silicon

☆ Depending on who you ask, BlackRock just saved, or killed, crypto
▼ + stars: | 2023-06-22 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Today we've got stories on a startup helping you build your credit with rent payments, Wall Street reentering the home-buying frenzy, and how to cut out late-night snacking. But that hasn't stopped critics from painting BlackRock's filing as part of a wider power shift in crypto benefiting traditional financial firms. (It's worth noting that the announcement coincides with the launch of EDX Markets, a crypto exchange backed by Wall Street royalty like Citadel Securities, Fidelity, and Charles Schwab, per The Wall Street Journal.) Wall Street isn't in the business of supporting causes that could put it out of business. By partnering with traditional finance firms, crypto companies are letting the fox in the hen house.

Persons: Dan DeFrancesco, we've, Andrii Shyp, Arif Qazi, Wall, Insider's Rebecca Ungarino, Rebecca, Morgan Chittum, hasn't, Charles Schwab, I've, Read, Teresa Heitsenrether, Here's, We're, Netflix's, Jeffrey Epstein, Epstein, Bel, Gary Winnick, Kaja Whitehouse, Nathan Rennolds Organizations: EDX, Wall, Citadel Securities, Fidelity, Street, JPMorgan, Bloomberg, Netflix, US Virgin Islands, Bel, Air, LinkedIn Locations: BlackRock, New York, London

☆ The Fed’s latest pause still means high rates for you
▼ + stars: | 2023-06-14 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

The average bank savings rate as of June 7 was a mere 0.25%, according to Bankrate.com. But that’s because the savings rates at the biggest US banks pay very little — see, for instance, 0.01% at JPMorgan Chase (JPM). Currently, the average credit card rate is at a record high of 20.44% as of June 7, according to Bankrate.com. [And] home equity rates are the highest in more than 20 years,” McBride said. The average rate on a 30-year mortgage was 6.71% in the week ending June 8, down from 6.79% the week before.

Persons: ”, Greg McBride, Sara Kalsman, Schwab, you’ll, That’s, ” McBride, Bankrate, McBride, Anna Bahney Organizations: New, New York CNN, Federal Reserve, JPMorgan Chase, Fidelity, Fed, “ Locations: New York, Boston, Detroit

☆ Why Hong Kong can’t cut loose from the US dollar just yet
▼ + stars: | 2023-06-13 | by ( Laura He | ) edition.cnn.com time to read: +11 min

Hong Kong CNN —Hong Kong’s currency is facing its biggest test since the global financial crisis of 2008. The steep fall is a sign that investors are ditching the Hong Kong dollar. The Hong Kong Monetary Authority (HKMA) is committed to keeping the Hong Kong dollar between 7.75 and 7.85 per greenback. People walk past the Hong Kong Monetary Authority (HKMA) on May 4, 2023, in Hong Kong, China. “Pegging the Hong Kong dollar to the US dollar encourages such transactions to be carried out in Hong Kong and under Hong Kong law, even if neither party is based in Hong Kong.”This helps to create jobs and prosperity in Hong Kong, while also benefiting mainland China.

Persons: Hong, hasn’t, Andy Xie, ” Logan Wright, Bill Ackman’s, Ackman, Wright, Peter Parks, Kong, Deng Xiaoping, Margaret Thatcher, outflows, Chi Lo, Chen Yongnuo, Hong Kong’s, ”, Richard Cookson ,, Boaz Weinstein, Daniel Fung, Rhodium’s Wright, Xie, Eddie Yue, Banks, John Greenwood, “, Greenwood, ” Greenwood Organizations: Hong Kong CNN, British, Hong, Traders, Hong Kong, Bill Ackman’s Pershing, Capital Management, Getty, Lehman Brothers, Hong Kong Monetary Authority, US Federal Reserve, Asia Pacific, BNP, Asset Management, Fed, China News Service, Rubicon Fund Management, Bloomberg, Saba Capital Management, National Security Law, CNN Locations: Hong Kong, United States, China, Hong, Beijing, AFP, Britain, “, ”, Riding

☆ China makes surprise rate cut as economic recovery loses steam
▼ + stars: | 2023-06-13 | by ( Laura He | ) edition.cnn.com time to read: +3 min

The rate will drop to 1.9% from 2%, according to the People’s Bank of China. The rate cut reveals “growing concerns among policymakers” about the health of China’s recovery, Capital Economics analysts said on Tuesday. “The … rate cut came earlier and sharper than our and market expectations, highlighting the sense of urgency to alleviate economic momentum and business confidence,” said Becky Liu, head of China macro strategy for Standard Chartered Bank. That rate cut also came as a surprise and followed a week of turmoil in global financial markets triggered by the failure of some regional US banks. In the language of China’s policymakers, that implies a bias towards easing monetary policy, said Larry Hu, chief China economist for Macquarie Group.

Persons: ”, Becky Liu, Zhaopeng Xing, Betty Wang, Yi Gang, Larry Hu, “ Governor Yi Organizations: Hong Kong CNN, People’s Bank of China, Capital, Standard Chartered Bank, PMI, ANZ Research, Macquarie Group, “ Locations: Hong Kong, China

☆ Does a recession in Europe hurt the US?
▼ + stars: | 2023-06-13 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Slow consumer spending and sticky inflation have led to two consecutive quarters of economic contraction in the European Union. That means that the eurozone fell into a recession over the winter months, and growth this year is likely to be weak. If Europe sneezes, the economists ask, is it possible that the United States catches a cold? Akinci and Pesenti recently examined whether economic crises in Europe have affected the United States over the past thirty years. Strong employment and higher wages can mean higher inflation as companies pass on increased labor costs by raising the price of goods.

Persons: they’re, Ozge Akinci, Paolo Pesenti, “, we’ll, We’ll, Janet Yellen, Emmanuel Macron, ‘, Goldman Sachs, David Solomon, ”, Solomon, ” Solomon, haven’t, It’s, Alicia Wallace Organizations: CNN Business, Bell, New York CNN, European Union, Federal Reserve Bank of New, Organisation for Economic Co, US Federal Reserve, French, CNBC, Federal, CPI, Federal Reserve Locations: New York, United States, Europe, Federal Reserve Bank of New York, Greece, France

An appellate authority at the Enforcement Directorate (ED) issued the so-called show cause notices under India's foreign exchange laws for alleged illegal remittances of 55.51 billion rupees ($673.2 million). India alleges Xiaomi's local unit made illegal remittances to foreign entities by passing them off as royalty payments. The notices were issued to Xiaomi and officials including the chief financial officer of its India unit, the ED said in a statement. The banks received notices because they allegedly allowed foreign remittances described as royalty payments without conducting due diligence and obtaining necessary documentation, the agency added. Court documents show Xiaomi's frozen assets are spread across accounts at various banks including Deutsche, Citi and HSBC.

Persons: Xiaomi, Aditya Kalra, Shubhendu Deshmukh, Shounak Dasgupta, Jamie Freed Organizations: HK, Deutsche Bank, HSBC, Citigroup, Reuters, Deutsche, Citi, Samsung Electronics, Thomson Locations: DELHI, India

☆ India's currency in circulation falls further post RBI currency withdrawal move
▼ + stars: | 2023-06-08 | by ( Dharamraj Dhutia | ) www.reuters.com time to read: +2 min

Currency in circulation was down by 272.8 billion rupees ($3.30 billion) for week ended June 2, data from the Reserve Bank of India (RBI) on late Wednesday showed. It was down by 364.9 billion rupees in the week ended May 26. On May 19, the RBI had said it will start withdrawing 2,000-rupee denominated notes from circulation. People holding those notes were to deposit them in their respective bank accounts or exchange them for smaller denominations between May 23 and September 30. "It can be safely assumed that the banking system liquidity would increase by one trillion rupees to two trillion rupees gradually over the next few months," said Sandeep Bagla, chief executive officer at Trust Mutual Fund.

Persons: Sandeep Bagla, Dharamraj Dhutia, Nivedita Organizations: Reserve Bank of India, Reuters Graphics Reuters, Reuters, Trust Mutual Fund, Thomson Locations: MUMBAI

☆ For Wall Street's newest interns, it's important to keep things in perspective no matter how things end up
▼ + stars: | 2023-06-06 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Let's take a step backFor Wall Street interns, this week marks the start of their professional lives. So to the Wall Street interns who don't get a return offer in a few months, don't worry, you will too. Read more about Jefferies' Richard Handler explaining how Wall Street interns need to keep perspective. Check out all 15 pieces of advice Handler has for Wall Street interns. We asked our rising stars of Wall Street for some book recommendations.

Persons: Dan DeFrancesco, we've, I've, Richard Handler Jefferies, Richard Handler, Jefferies, Handler, It's, That'd, Guess, Tiffany Haley, Binance, Insider's Navah Maynard, Brandon Snower, Jeffrey Cane, Jack Sommers Organizations: Costco, Jefferies, Wall, Twitter, ESPN, Wall Street, SEC, Vanguard, Nike, LinkedIn Locations: New York, London

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