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☆ Oil climbs, markets on edge over darkening growth outlook
▼ + stars: | 2023-06-25 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

S&P 500 futures were 0.2% higher and currency markets were broadly steady. The private Wagner army then withdrew after striking a deal guaranteeing their safety and the exile of their leader, Yevgeny Prigozhin, to Belarus. The consequences for the Ukraine war were not clear, though the challenge to Russian President Vladimir Putin's authority was the starkest in decades of his leadership. "As such, we are likely to see a marginal uptick in oil prices in the coming days, if the situation does not deteriorate." Elsewhere markets were already on edge about a darkening growth outlook, as China's post-pandemic recovery stalls and global interest rates remain high, and traders were unwilling to take any new positions on the basis of Russian events.

Persons: Wagner, Yevgeny Prigozhin, Vladimir Putin's, Jorge Leon, Antony Blinken, Ray Attrill, Masato Kanda, Stephen Coates Organizations: Brent, Rystad Energy, National Australia Bank, Thomson Locations: SINGAPORE, Rostov, Moscow, Ukraine, Belarus, Russia, Sydney, Asia, China, steadied

☆ Russia turmoil to fuel market volatility, flight to safety
▼ + stars: | 2023-06-24 | by ( ) www.reuters.com time to read: +5 min

The question is how much and how lasting the reaction will be, much of which depends upon unknowable developments." It is reasonable to expect oil and other key commodity prices to rise. If oil prices rise sharply, that will indeed weigh upon equities and reignite stagflation fears. In theory it should benefit from a flight to safety, but in practice a strong dollar can impede it." “Probably bearish Indian stocks too as the dividend they’ve received from cheap Russian oil likely disappears.

Persons: Wagner, Stringer, STEVE SOSNICK, stagflation, MICHAEL PURVES, DAVID KOTOK, Putin, Orban, ’, GEORGE BOUBOURAS, JAMIE HALSE, “, Tom Westbrook, Megan Davies, Carolina Mandl, Ira Iosebashvili, Lananh Nguyen, Daniel Wallis Organizations: Southern Military District, REUTERS, Moscow, Defense, CUMBERLAND, NATO, MELBOURNE, WHO, SYDNEY, Thomson, & & Locations: Rostov, Don, Russia, Russian, China, SARASOTA , FLORIDA, Belarus, Soviet, EU, Hungary, Turkey, JAPAN, Ukraine, Eastern Europe, Singapore, New York

☆ Morning Bid: Fragile markets wait on PMIs
▼ + stars: | 2023-06-23 | by ( ) www.reuters.com time to read: +2 min

Japan's Nikkei (.N225) looks set to snap a 10-week winning streak and the MSCI Asia ex-Japan index was poised for its worst week of the year, as rates and inflation look higher for longer. The yen earned some reprieve, but it's shaky and at 143 to the dollar is firmly in intervention-watch territory. The Aussie, a growth bellwether, is quickly unwinding a two-week rally and Aussie stocks (.AXJO) are down 3% in three days. The sour turn leaves markets in a delicate spot ahead of global purchasing managers' index surveys due through the day. Reuters GraphicsReuters GraphicsKey developments that could influence markets on Friday:Europe, UK and U.S. PMIsUK Retail SalesReporting by Tom Westbrook; Editing by Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.

Persons: Tom Westbrook, Sterling, Threadneedle, Muralikumar Organizations: Bank of England's, Japan's Nikkei, Reuters Graphics Reuters, PMIs, Thomson Locations: Asia, Japan, China, Lira, Europe

☆ Asia stocks slide as growth outlook darkens
▼ + stars: | 2023-06-23 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.7% and is down 3.6% for the week, its worst since March. Japan's Nikkei (.N225) fell 1% as core inflation in Japan hit its fastest pace in more than four decades. Last week the U.S. Federal Reserve surprised markets with a hawkish outlook and central banks in Australia and Canada have delivered unexpected hikes. Two-year Treasury yields rose 9 bps to 4.8% overnight and were steady at 4.7888% in Asia on Friday. Brent crude futures were set for their worst week in nearly two months and fell 0.5% to $73.79 a barrel.

Persons: HSI, Wong Kok Hoong, Henry Russell, Maybank's Wong, Jerome Powell, Simon Cameron, Moore Organizations: Nikkei, Trade, China . Hong Kong, U.S . Federal Reserve, ANZ, U.S, Brent, Thomson Locations: SINGAPORE, Asia, Pacific, Japan, China . Hong, Maybank, Singapore, Britain, Norway, Australia, Canada, Europe, United States

☆ Analysis: Investors shelve China assets before bigger stimulus
▼ + stars: | 2023-06-23 | by ( Summer Zhen | ) www.reuters.com time to read: +5 min

[1/2] A view of the city skyline, ahead of the annual National People's Congress (NPC), in Shanghai, China February 24, 2022. A global fund manager survey by BofA Securities showed shorting Chinese stocks was the second-most "crowded" trade in June, after going long on big tech. "I can't believe that there is anymore bad news to absorb," said Andy Maynard, head of equities at China Renaissance. Restoring confidence is looking increasingly like a long-term project and investors are positioning for a longer game and a slower rebound. "We are all looking for something a bit more decisive in helping to restore animal spirits, investor confidence and market confidence, and I think that hope may be still at risk of being disappointed."

Persons: Aly, Morgan Stanley, Hong, Dong Chen, Andy Maynard, Morgan, James Liu, Guan Yi, Summer Zhen, Jason Xue, Tom Westbrook, Jacqueline Wong Organizations: National People's Congress, REUTERS, BofA Securities, Pictet Wealth Management, China, Reuters, G Investments, Thomson Locations: Shanghai, China, HONG KONG, Beijing, Asia, Singapore, Hong Kong, Pacific

Russell Westbrook, who played for the Washington Wizards in the 2020-21 NBA season, reacts prior to playing against the Denver Nuggets at Capital One Arena in Washington, D.C., February 17, 2021. Qatar's sovereign wealth fund has offered to buy a minority stake in Monumental Sports & Entertainment, the parent company of the Washington Wizards and other Washington, D.C., sports teams, the National Basketball Association said Thursday. The NBA is still reviewing the deal with the Qatar Investment Authority, league spokesperson Mike Bass said in a statement to CNBC. The NBA in November began to allow sovereign wealth funds and other institutional investors to buy noncontrolling stakes in the league's teams. In addition to the Wizards, Monumental owns the National Hockey League's Washington Capitals and the Women's National Basketball Association team, the Washington Mystics.

Persons: Russell Westbrook, Mike Bass, QIA, Bass Organizations: Washington Wizards, NBA, Denver Nuggets, Capital, Washington , D.C, Monumental Sports & Entertainment, D.C, National Basketball Association, Qatar Investment Authority, CNBC, Sportico, Wizards, Monumental, Hockey League's Washington Capitals, Women's National Basketball Association, Washington Mystics, NBA G League, NBC Sports Washington, Monumental Sports Locations: Washington ,, Washington, Monumental, Qatar

☆ Dollar dips as Powell testimony disappoints hawks
▼ + stars: | 2023-06-21 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +4 min

Powell told lawmakers the fight against inflation still "has a long way to go" and that despite a recent pause in interest rate hikes officials agreed borrowing costs would likely need to move higher. While noting that inflation remains very far from the Fed's target, Powell said it may make sense to still raise rates, at a more moderate pace. The dollar index , which measures the currency against six rivals, fell 0.43% to 102.07 following Powell's testimony to the House Financial Affairs Committee. Investors broadly expect rate hikes to resume at the Fed's July meeting, though financial market indicators reflect doubts that the Fed will deliver more increases beyond that. YEN UNDER PRESSURE, STERLING SEESAWSThe euro was 0.62 % higher against the dollar at $ 1.0985 .

Persons: Jerome Powell's, Powell, Karl Schamotta, Schamotta, Michael Brown, STERLING, Kazuo Ueda, Charles Schwab, Saqib Iqbal Ahmed, Tom Westbrook, Farouq Suleiman, Sam Holmes, Kim Coghill, Sharon Singleton, Alex Richardson, Richard Chang Organizations: YORK, U.S, Fed, House Financial, Committee, Investors, Bank of Japan, Reserve Bank of Australia's, Fidelity, Citadel Securities, Thomson Locations: Beijing

After an initial rise, sterling fell as much as 0.56% against the dollar to a low of $1.2691 following this month's inflation figures. Investors and money managers now turn their focus to Fed chief Jerome Powell's testimony before Congress at 10:00 a.m. "The former may do more to give additional support to send the dollar index and (bond) yields higher." The rally against the yen pushed the U.S. dollar index , which measures the currency against six major peers, up slightly to 102.58. "The Aussie could dip below 0.6700 this week, particularly if Powell is hawkish," he said.

Persons: Powell, Jerome Powell's, Adam Cole, Kazuo Ueda, Tuesday's, Joe Capurso, Bitcoin, Charles Schwab, Tom Westbrook, Farouq Suleiman, Sam Holmes, Kim Coghill, Sharon Singleton Organizations: Federal, RBC Capital Markets, Bank of Japan, U.S, Commonwealth Bank of Australia, Fidelity, Citadel Securities, Thomson Locations: SINGAPORE, LONDON, Asia, Pacific, China, Tokyo

☆ Dollar firm ahead of Powell testimony, sterling up on hot inflation
▼ + stars: | 2023-06-21 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

Sterling briefly rose as far as 0.3% against the dollar to $1.2803 before settling back to $1.2765. It also rose slightly on the euro and yen , as traders were betting the Bank of England would need to take rates higher. Powell is due to begin his testimony before Congress at 1400 GMT. "The former may do more to give additional support to send the dollar index and yields higher." "The Aussie could dip below 0.6700 this week, particularly if Powell is hawkish," he said.

Persons: Powell, Jerome Powell's, Sterling, Tuesday's, Joe Capurso, steadying, Charles Schwab, Tom Westbrook, Sam Holmes, Kim Coghill Organizations: Federal, Bank of England, Bank of Japan, Fed, Commonwealth Bank of Australia, New Zealand, U.S, Fidelity, Citadel Securities, Thomson Locations: SINGAPORE, Asia, China, Tokyo

☆ Morning Bid: Nevermind the cricket, here's inflation
▼ + stars: | 2023-06-21 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Tom WestbrookBritish inflation figures this morning could take traders' minds off England's cricket defeat, should they show the slowdown that economists are hoping for. But a bit the questions Australia's comeback at Edgbaston has asked about England's aggressive new cricketing style, an upside inflation surprise can upset the policy outlook. In Asia, China's slowdown and the lack of big-bang stimulus had markets on the slide. Later on Wednesday, Federal Reserve Chair Jerome Powell appears before the U.S. Congress where he will be quizzed about policymakers' projections for two more interest rate hikes this year. Key developments that could influence markets on Wednesday:British inflation dataFed Chair Jerome Powell speaksReporting by Tom Westbrook; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

Persons: Tom Westbrook, Joe Biden, Antony Blinken's, Jerome Powell, Jacqueline Wong Organizations: Reuters, Bank of England, Edgbaston, U.S, U.S . Congress, Thomson Locations: Asia, California, China

☆ Dollar finds footing on housing data as yuan falters
▼ + stars: | 2023-06-21 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

SummarySummary Companies U.S. housing starts surge; dollar drifts higherTraders await UK CPI and Powell testimonySINGAPORE, June 21 (Reuters) - The U.S. dollar was firm in Asia trade on Wednesday following surprisingly strong U.S. housing data, while the yuan and Aussie dollar nursed losses and focus turned to Federal Reserve Chair Jerome Powell's appearance before Congress later in the day. The yen was also firm at 140.50 per dollar ahead of an appearance by Bank of Japan Governor Kazuo Ueda on Wednesday. The Aussie and yuan were Tuesday's largest losers and were in no mood for a bounce early on Wednesday. The yuan fell about 0.3% overnight and in offshore trade early on Wednesday the currency was pinned at 7.1826 per dollar, near a seven-month low. It is under pressure after the central bank flagged it was finished with hikes, while data showed the economy in recession.

Persons: Powell, Jerome Powell's, they'd, Kazuo Ueda, Li Qiang, Tuesday's, Joe Capurso, steadying, Mieneke Perniskie, Sterling, Daniela Hathorn, Bitcoin, Citadel Securites, Charles Schwab, Tom Westbrook Organizations: CPI, U.S, Federal, Traders, Bank of Japan, Commonwealth Bank of Australia, New Zealand, Bank of England, Fidelity, Citadel, Thomson Locations: SINGAPORE, Asia, China, Europe, Kiwibank, Wellington

☆ China cuts lending benchmarks to revive slowing demand
▼ + stars: | 2023-06-20 | by ( ) www.reuters.com time to read: +4 min

REUTERS/Thomas Peter/FILE PHOTOSHANGHAI/SINGAPORE, June 20 (Reuters) - China cut its key lending benchmarks on Tuesday, the first such reductions in 10 months as authorities seek to shore up a slowing economic recovery, although concerns about the property market meant the easing was not as large as expected. The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.55%, while the five-year LPR was cut by the same margin to 4.20%. The People's Bank of China (PBOC) lowered short- and medium-term policy rates last week. "There is no need to roll out all policy measures all at once." Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

Persons: Thomas Peter, Julian Evans, Pritchard, Xing Zhaopeng, Xing, China's, Bruce Pang, Jones Lang LaSalle, Winni Zhou, Tom Westbrook, Kripa Jayaram, Sam Holmes Organizations: Central Business, REUTERS, Capital Economics, Reuters, Mainland Properties, People's Bank of China, ANZ, Jones, Graphics, Thomson Locations: Beijing, China, SHANGHAI, SINGAPORE, outpacing

☆ Another Chinese company scraps GDR plan as listing rules tighten
▼ + stars: | 2023-06-20 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI/SINGAPORE, June 20 (Reuters) - Bethel Automotive Safety Systems Co (603596.SS) scrapped plans to issue Global Depository Receipts (GDR), citing changes in domestic and overseas capital market conditions, after China tightened rules for GDR listings. The new GDR rules by China's securities regulator last month put curbs on the use of proceeds and made issuances liable to national security reviews, potentially dampening Chinese companies' interest in listing in Europe, bankers said. The Shanghai-listed automotive braking system manufacturer said on Monday it decided to terminate the GDR plan after considering its financial and operational situations. Earlier this month, Shenzhen-listed medical devices maker Jiangsu Yuyue Medical Equipment & Supply Co (002223.SZ) cancelled a proposed Swiss GDR offering plan, citing changes in market conditions. Reporting by Jason Xue in Shanghai and Tom Westbrook in Singapore; Editing by Varun H KOur Standards: The Thomson Reuters Trust Principles.

Persons: Bethel, Jason Xue, Tom Westbrook, Varun Organizations: Bethel Automotive Safety Systems, SIX, SIX Swiss Exchange, Supply, Thomson Locations: SHANGHAI, SINGAPORE, Bethel, China, GDR, Europe, Shanghai, SIX Swiss, Shenzhen, Jiangsu, Swiss GDR, Zurich, London, U.S, Singapore

☆ China seen cutting key lending benchmarks as economy slows
▼ + stars: | 2023-06-19 | by ( ) www.reuters.com time to read: +3 min

The People's Bank of China (PBOC) lowered short- and medium-term policy rates last week, signalling it is about to embark on another round of loosening in monetary settings in a push to rev up the recovery. In a poll of 32 market watchers, all participants predicted cuts to both the one-year loan prime rate (LPR) and the five-year tenor . "However, the biggest risk is that rate cuts can be ineffective when households and businesses are excessively conservative, busy deleveraging and paying off debt." China's cabinet met on Friday to discuss measures to spur growth in the economy and pledged to roll out more policy support. Despite strong consensus of cuts to the LPR on Tuesday, market participants are divided on the size of the reductions.

Persons: David Chao, Chao, Li Hongwei, Zhou, Tom Westbrook, Sam Holmes Organizations: People's Bank of China, Reuters, Asia Pacific, Citi, Thomson Locations: SHANGHAI, SINGAPORE, China, Invesco

☆ Berkshire Hathaway adds to Japan trading company holdings
▼ + stars: | 2023-06-19 | by ( ) www.reuters.com time to read: +2 min

[1/4] The logo of Marubeni Corp is seen at the company headquarters in Tokyo, Japan, May 10, 2016. Berkshire said its ownership now averages more than 8.5% at the companies and the aggregate value of the investments is the largest of any Berkshire-held public stocks outside the U.S. Known as "sogo shosha," Japanese trading houses trade in a variety of materials, products and food, often serving as intermediaries, and provide logistical support. Nikkei futures slightly pared some losses after the Berkshire announcement. Reporting by Lavanya Ahire in Bengaluru and Tom Westbrook in Singapore; Editing by Kim Coghill and Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

Persons: Toru Hanai, Warren Buffett's Berkshire Hathaway, Lavanya, Tom Westbrook, Kim Coghill, Christopher Cushing Organizations: Marubeni, REUTERS, Berkshire, Nikkei, Billionaire, Mitsubishi Corp, Mitsui & Co, Sumitomo, Thomson Locations: Tokyo, Japan, Itochu, Berkshire, Bengaluru, Singapore

☆ Goldman Sachs cuts China growth forecast as property slowdown bites
▼ + stars: | 2023-06-19 | by ( ) www.reuters.com time to read: +1 min

SINGAPORE, June 19 (Reuters) - Goldman Sachs (GS.N) analysts have cut forecasts for China's economic growth, citing persistently weak confidence and the cloud over the property market as stronger-than-expected headwinds. The U.S. investment bank lowered its full-year real gross domestic product growth forecast for the world's second biggest economy from 6% to 5.4%, according to a note published late on Sunday. It also lowered its 2024 growth forecast from 4.6% to 4.5%. The cut follows similar moves by global peers, though still leaves Goldman among the most optimistic, as data shows China's post-pandemic recovery faltering. "We judge that growth headwinds are likely persistent while policymakers are constrained by economic and political considerations in delivering meaningful stimulus."

Persons: Goldman Sachs, Goldman, Hui Shan, Tom Westbrook, Simon Cameron, Moore Organizations: Thomson Locations: SINGAPORE, U.S, China

Equities trading was choppy on Wednesday after the Fed signaled it could follow its June pause with two more rate increases this year. But by Thursday afternoon the S&P 500 .SPX and the Nasdaq had rallied to 14-month highs on upbeat economic data. Higher jobless claims helped fuel bets that the Fed would not follow through with more rate hikes. "It's almost like a sweet spot," Tunkel said, also pointing to Chinese data boosting energy stocks and oil prices. Gold prices rose from a three-month low as the dollar and bond yields fell after U.S. economic data, although worries over more Fed rate hikes capped gains.

Persons: Irene Tunkel, Tunkel, Brendan McDermid, Sterling, Brent, Sinéad Carew, Marc Jones, Tom Westbrook, Mark Potter, Alexander Smith, Richard Chang Organizations: LONDON, European Central Bank, Federal Reserve, Nasdaq, BCA Research, Dow Jones, New York Stock Exchange, REUTERS, Treasury, Reuters, Thomson Locations: U.S, New York City, China, New York, London, Singapore

☆ Stocks stall as US rates seen higher for longer
▼ + stars: | 2023-06-15 | by ( Tom Westbrook | ) www.reuters.com time to read: +4 min

Committee members surprised markets by projecting two more 25 basis point hikes this year, sending short-term U.S. yields higher and closing out bets on any cuts in 2023. "The market takeaway was that rates would stay high for longer, rather than spike upwards in line with the shift in projected Fed funds rate." Two-year Treasury yields jumped as much as 13.5 bps in the session, before settling two bps higher at 4.69%. China cut a key benchmark, its medium-term loan rates, by 10 bps and the yuan hit a six-month low of 7.1783 per dollar. That likely confirms an end to rate hikes and the kiwi was last down 0.7% at $0.6163.

Persons: Jerome Powell, Steve Englander, Powell, Tai Hui, Bitcoin, Shri Navaratnam Organizations: ECB SINGAPORE, U.S . Federal Reserve, Fed, Central Bank, Nikkei, Standard Chartered, Morgan Asset Management, New Zealand, ECB, Bank of Japan, Brent, Thomson Locations: China, New Zealand, U.S, Asia, Pacific, Japan, New York, CHINA, Beijing

☆ China cuts medium-term loan rates as economy sputters, more easing expected
▼ + stars: | 2023-06-15 | by ( ) www.reuters.com time to read: +3 min

[1/2] Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. Activity data to be released later on Thursday morning was expected to point to further weakness. The cuts could also pave the way for reductions in China's benchmark lending rates when they are set next Tuesday. With 200 billion yuan ($27.93 billion) worth of MLF loans set to expire this month, Thursday's operation resulted in a net 37 billion yuan ($5.17 billion) of fresh fund injection into the banking system. The central bank also injected 2 billion yuan ($279.14 million) through seven-day reverse repos at 1.9%, it said in an online statement.

Persons: Tingshu Wang, skidding, Goldman Sachs, Li Gu, Tom Westbrook, Kim Coghill Organizations: People's Bank of China, REUTERS, BNP, Barclays, Thomson Locations: Beijing, China, SHANGHAI, SINGAPORE, outflows, Shanghai, Singapore

This week it hit a six-month low on the dollar after surprise cuts to key China rates, putting the gap between 10-year sovereign yields in China and the U.S. at its widest since November. The position, with China's rates below those in the United States , is the reverse of more than a decade of high-growth that saw China paying better yields than markets in the west. "The People's Bank of China's tolerance of currency weakness ... also opens up room for further yuan weakness." Even if the Federal Reserve holds rates steady later on Wednesday, as expected, traders are braced for an extended period of elevated U.S. interest rates and, increasingly, for China to hold rates low or push them even lower. Analysts polled by Reuters expect the PBOC will cut the costs of medium-term loans on Thursday and many market watchers expect a benchmark lending rate cut next week.

Persons: hasn't, Morgan, J.P, Tommy Xie, Kiyong Seong, Winni Zhou, Brenda Goh, Tom Westbrook, Kim Coghill Organizations: Bond, People's Bank, People's Bank of China, Federal Reserve, Reuters, Authorities, OCBC Bank, Societe Generale, Thomson Locations: SHANGHAI, SINGAPORE, China, U.S, Beijing, United States, Asia, Shanghai, Singapore

☆ China central bank seen cutting medium-term policy rate: Reuters poll
▼ + stars: | 2023-06-14 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI/SINGAPORE, June 14 (Reuters) - China's central bank is widely expected to cut the borrowing cost of medium-term policy loans for the first time in 10 months on Thursday, after it lowered two key short-term policy rates, a Reuters poll showed. China remains an outlier among global central banks as it loosens monetary policy to shore up a stalling recovery but further rate cuts will widen the yield gap with U.S. assets and risk greater outflows. The MLF rate serves as a guide to the benchmark loan prime rate (LPR), and markets usually use the medium-term rate as a precursor to any changes to the lending benchmark. Looking ahead, we expect another 10bp cut in the MLF rate in 3Q23." The PBOC last cut the MLF rate in August 2022 to prop up the broad economy disrupted by stringent zero-COVID measures.

Persons: Ting Lu, Larry Hu, Wu Fang, Winni Zhou, Tom Westbrook, Jacqueline Wong Organizations: People's Bank of China, Nomura, Macquarie, Thomson Locations: SHANGHAI, SINGAPORE, China, lockstep

"The central bank's rate cut decision was not a complete surprise to the market," said Ken Cheung, chief Asian FX strategist at Mizuho Bank. Further interest rate cuts in China would only widen the yield gap with the United States, even if the Fed pauses this week, sending the yuan lower and accelerating capital outflows. Tuesday's rate cut suggests policymakers are increasingly worried about the health of China's recovery, traders and analysts said. Bloomberg reported on Tuesday, citing unnamed sources, that China was considering at least a dozen stimulus measures including cuts to interest rates to support areas such as real estate and domestic demand. "There could be another RRR or policy interest rate cut in Q4, depending on the economic outcome over the next several months."

Persons: Ken Cheung, Yi Gang, Cheung, Marco Sun, Frances Cheung, Goldman Sachs, Winni Zhou, Tom Westbrook, Sam Holmes, Jacqueline Wong Organizations: People's Bank of China, Mizuho Bank, MUFG Bank, Bloomberg, OCBC Bank, Thomson Locations: SHANGHAI, SINGAPORE, China, United States, outflows

☆ China cuts short-term borrowing costs as economy slows
▼ + stars: | 2023-06-13 | by ( ) www.reuters.com time to read: +4 min

SummarySummary Companies PBOC lowers 7-day reverse repo to 1.9% vs. 2.0% prev. The People's Bank of China (PBOC) cut its seven-day reverse repo rate by 10 basis points to 1.90% from 2.00% on Tuesday, when it injected 2 billion yuan ($279.97 million) through the short-term bond instrument. "The central bank's rate cut decision was not a complete surprise to the market," said Ken Cheung, chief Asian FX strategist at Mizuho Bank. Tuesday's rate cut suggests policymakers are increasingly worried about the health of China's recovery, traders and analysts said. "However, the market is expecting the PBOC to cut the policy rate further.

Persons: 10bp, Ken Cheung, Yi Gang, Cheung, Marco Sun, Frances Cheung, Julian Evans, Pritchard, Winni Zhou, Tom Westbrook, Kim Coghill, Sam Holmes Organizations: People's Bank of China, Mizuho Bank, MUFG Bank, OCBC Bank, Capital Economics, Thomson Locations: SHANGHAI, SINGAPORE, China, United States, outflows

☆ Turkish lira slips despite appointment of well-regarded finance minister
▼ + stars: | 2023-06-05 | by ( ) www.reuters.com time to read: +1 min

June 5 (Reuters) - Turkey's lira slid almost 1% on Monday in thin trading during the Asian day to weaken past 21 per dollar, in a shaky initial reaction to the appointment of highly-regarded Mehmet Simsek as finance minister. The lira hit 21.1 to the dollar, not far above a record low of 21.8 made last week. Simsek, 56, won markets' confidence during terms as finance minister and deputy prime minister between 2009 and 2018. Turkey's annual consumer price inflation hit a 24-year peak beyond 85% last year, and stood at 44% in April in a sign that further monetary tightening was required, according to Elmi. "A simple return to credible economic policy could see a marked change in Turkey's investment appeal," he said.

Persons: Mehmet Simsek, Tayyip Erdogan's, Mohammed Elmi, Tom Westbrook, Shri Navaratnam, Jamie Freed Organizations: Federated Hermes, Thomson Locations: Turkey

☆ Chinese quants redouble AI bets amid ChatGPT frenzy
▼ + stars: | 2023-06-05 | by ( ) www.reuters.com time to read: +4 min

REUTERS/Thomas White/Illustration/File PhotoSHANGHAI/SINGAPORE, June 5 (Reuters) - Chinese quant hedge fund managers are rushing to explore ChatGPT-style tools, embracing the emerging AI technology that has sparked a global frenzy since the release of the widely popular Microsoft-backed OpenAI chatbot. His hedge fund already uses ChatGPT to better understand a company's fundamentals and avoid value traps, project earnings power, and identify investment opportunities and risks. A ChatGPT-like tool boosts quants' ability to process text-related data, said Feng Ji, chairman of Baiont Capital. Feng's hedge fund, backed by former Google China chief and AI veteran Kai-Fu Lee, has invested heavily in hardware to enhance computing power required for model-training. Regulators are looking for ways to tackle the impact of generative AI technology.

Persons: Thomas White, Steve Chen, Feng Ji, ChatGPT, Feng, Kai, Fu Lee, Feng's, Larry Cao, Cao, it's, Samuel Shen, Tom Westbrook, Himani Sarkar Organizations: Microsoft, Baiont, Google China, Flyer, Zhishan Investment, Wall, Regulators, HK, Baidu, CFA Institute, Thomson Locations: SHANGHAI, SINGAPORE, Shanghai, Beijing, Feng's Nanjing, China

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