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☆ What one Swiss bank's troubles can tell us about market vulnerabilities — and social media
▼ + stars: | 2023-11-30 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

A pedestrian sheltering under an umbrella passes a Julius Baer Group Ltd. branch in Zurich, Switzerland, on Tuesday, July 13, 2021. The share price of Julius Baer plummeted after the Swiss private bank disclosed 606 million Swiss francs ($692.7 million) of loan exposure to a single conglomerate client. The 606 million Swiss franc exposure to one client — via three loans to different entities within a European conglomerate — is collateralized by commercial real estate and luxury retail, the company revealed. The bank last week booked provisions of 70 million Swiss francs to cover the risk of a single borrower in its private loan book. The European Central Bank recently examined the commercial real estate sector and the provisioning methods and capital buffers of European banks.

Persons: Julius Baer, Signa, Julius Baer's CET1, DBRS Morningstar, Vitaline Yeterian, Elisabeth Rudman, Julius Baer's Organizations: Julius Baer Group, Austrian, DBRS, CNBC, European Central Bank, Swiss Locations: Zurich, Switzerland, Swiss

"It is hard to understand how the ECB ended up buying the bonds of property companies, while at the same time warning of the risks of property price inflation," former ECB chief economist Otmar Issing told Reuters. But data this week shows the central bank still owned the two bonds issued by SBB as of Nov. 24. While Sweden is not in the euro zone, SBB issued the debt bought by the ECB in neighbouring Finland, which is. Alongside the SBB bonds, the ECB also hoovered up the debt of other property companies which have since hit problems, including Sweden's Heimstaden. The ECB also gobbled up many German real estate bonds, including 39 issued by Vonovia, which has been selling property to cut debt.

Persons: Otmar Issing, Daniel Gros, Gros, Sweden's, Heimstaden, it's, Alexander Smith Organizations: SBB, European Central Bank, ECB, Reuters, Research, Institute, European, Bocconi University, Fitch, Vonovia, Thomson Locations: FRANKFURT, Europe, Germany, Sweden, Milan, Swedish, Finland

☆ Euro zone inflation sinks to 2.4%, below expectations
▼ + stars: | 2023-11-30 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

(Photo by Ying Tang/NurPhoto via Getty Images)Annual inflation in the euro zone cooled to 2.4% in November from 2.9% in October, flash figures showed Thursday. Inflation in the euro zone's largest economies, Germany and France, has dropped to 2.3% and 3.8%, respectively. ECB officials have repeatedly stressed that it is too early to declare victory over price rises in the 20-member euro zone bloc, as they monitor potential pressures from wage increases and energy markets. Separate data released by statistics agency Eurostat on Thursday showed that unemployment in the euro area remained at a record low of 6.5% in October, despite a contraction in the euro zone economy in the third quarter. "For the ECB, signs of an imminent victory on inflation are mounting," Bert Colijn, senior euro zone economist at ING, said in a note, adding that some of the impact from existing monetary tightening was yet to be felt.

Persons: Ying Tang, —, Mathieu Savary, Bert Colijn Organizations: Aachen, Getty, Reuters, European Central Bank, Energy, ECB, BCA Research, Eurostat, ING Locations: Aachen, Germany, France, European

☆ Euro zone inflation tumble pits ECB against markets
▼ + stars: | 2023-11-30 | by ( Balazs Koranyi | ) www.reuters.com time to read: +5 min

Inflation has dropped quickly towards the ECB's 2% target from levels above 10% just a year ago but policymakers have cautioned against excessive optimism. The rapid inflation slowdown puts the euro zone central bank and investors on a collision course as the two appear to see greatly different paths ahead, both for consumer prices and ECB interest rates. "And if the recent trends in inflation and growth continue then 2024 will be the year when the ECB implements a pirouette in monetary policy." "The market is therefore right to start looking at rate cuts for 2024. Some economists argue that modelling current inflation is exceptionally difficult because corporate profits are the main driver, not wages as in normal bouts of rapid inflation.

Persons: Sarah Meyssonnier, Kamil Kovar, Yannis Stournaras, Fabio Panetta, Panetta, Christine Lagarde's, Bert Colijn, Balazs Koranyi, Catherine Evans Organizations: REUTERS, ECB, Moody's, Bank of Italy, ING, Thomson Locations: Paris, France, FRANKFURT

☆ Morning Bid: November bids adieu with inflation data, OPEC
▼ + stars: | 2023-11-30 | by ( ) www.reuters.com time to read: +5 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 26, 2023. With signs of turn emerging in Federal Reserve policy guidance and October PCE inflation readings set to encourage that later in the day, rate cut fever was in full flow across the Atlantic too. Headline annual inflation in the bloc fell as low as 2.4% - within arm's length of the ECB's 2% target. Later on Thursday, U.S. PCE inflation for the prior month is pencilled to fall 3.0% from 3.4% - with a core also ebbing to 3.5%. "Monetary policy is in a good place," Cleveland Fed President Loretta Mester said on Wednesday, echoing comments from previously hawkish Fed governor Christopher Waller the previous day.

Persons: Brendan McDermid, Mike Dolan, policymaker Fabio Panetta, Loretta Mester, Christopher Waller, John Williams, Christine Lagarde, Megan Greene, Kroger, Bernadette Baum Organizations: New York Stock Exchange, REUTERS, Treasury, Federal, European Central Bank, Bank of Italy, policymaker, U.S ., ECB, Cleveland Fed, Wall, OPEC, Dallas Fed, PMI, York Federal, Bank of England, Academy Sports, Rock Biotech, Titan, Reuters, Thomson Locations: New York City, U.S, China, Canada, Vienna, Automotive, Duluth, BOS, Jan

☆ Goldilocks meets Santa as global stocks power to best month in three years
▼ + stars: | 2023-11-30 | by ( Naomi Rovnick | ) www.reuters.com time to read: +5 min

MSCI's world stock index (.MIWO00000PUS) is set to close the month up around 9%, its best performance since November 2020, when markets cheered the arrival of COVID-19 vaccines. Global bond prices have soared, with an ICE BofA index of global investment-grade bonds in major markets set to return 3.4% in November, the best month on record going back to 1997. Global growth stocks in high-tech sectors are up 11% (.dMIWO0000GNUS) while value stocks, which are mainly in cyclical industries and offer high dividends, have gained 6.5% (.dMIWO0000VNUS). And a cloudier outlook for stocks suggests a divergence could open up between again between stocks and bonds. The broader global index is set to return 1.6% for the year.

Persons: Joshua Roberts, That's, bode, Altaf Kassam, Wall, We've, Guy Miller, Joost Van Leenders, Van Lanschot Kempen, Van Leenders, Kassam, Naomi Rovnick, Yoruk Bahceli, Dhara Ranasinghe, Christina Fincher Organizations: Federal Reserve, REUTERS, U.S . Federal Reserve, European Central Bank, State Street Global Advisors, Traders, Fed, Insurance Group, Equity, Reuters Graphics Reuters, Treasury, Thomson Locations: Washington , U.S, COVID, U.S

☆ Fed's favorite gauge shows inflation rose 0.2% in October and 3.5% from a year ago, as expected
▼ + stars: | 2023-11-30 | by ( Jeff Cox | ) www.cnbc.com time to read: +4 min

The personal consumption expenditures price index, excluding food and energy prices, rose 0.2% for the month and 3.5% on a year-over-year basis, the Commerce Department reported. Energy prices fell 2.6% on the month, helping keep overall inflation in check, even as food prices increased 0.2%. Goods prices saw a 0.3% decrease while services rose 0.2%. On the services side, the biggest gainers were international travel, health care and food services and accommodations. I'm hearing normalizing, not recession, but I am hearing consumer slowing down."

Persons: Dow Jones, Stocks, Bonds, Bill Adams, John Williams, Thomas Barkin Organizations: Federal Reserve, Commerce Department, Energy, Dow Jones, Treasury, Labor, Fed, Labor Department, Comerica Bank, . New York Fed, Richmond Fed, CNBC, European Central Bank, CNBC PRO Locations: ., New York

☆ Eurozone Inflation Falls Faster Than Expected
▼ + stars: | 2023-11-30 | by ( Liz Alderman | More About Liz Alderman | ) www.nytimes.com time to read: +3 min

Excluding food and energy prices, so-called core inflation rose 3.6 percent, a sharply slower pace than previous months. “The price to pay is higher interest rates, more difficult financing and therefore an economic slowdown,” he added. Interest rates were raised from below zero and are now at the highest level in the central bank’s two-decade history. But Europe is facing a drawn-out economic slowdown as high interest rates and the lingering impact of Russia’s war in Ukraine continue to curb activity. to start lowering interest rates next year, possibly before the summer.

Persons: ” Bert Colijn, ” Bruno Le Maire, Christine Lagarde, Colijn Organizations: ING Bank, European Central Bank, ”, Eurostat, France Inter Locations: Ukraine, France, Germany, Spain, Belgium, Europe, United States

☆ Intesa's CET1 requirement under SREP process rises to 9.32%
▼ + stars: | 2023-11-30 | by ( ) www.reuters.com time to read: 1 min

Intesa San Paolo bank headquaters is seen in Turin, Italy, November 7, 2018. The ECB had set the same threshold at 8.88% for the current year. The new requirement kicks in on Jan. 1, 2024. The increase to 2023 stems mostly from a buffer that 'Other Systemically Important Institutions' (O-SII) are due to hold, which stands at 1.25% for 2024 versus 0.75% in 2023. The countercyclical buffer requirement also inched up slightly to 0.23% from 0.16%, Intesa said.

Persons: headquaters, Stefano Rellandini, Intesa, Valentina Za, Jonathan Oatis Organizations: REUTERS, European Central Bank, ECB, Thomson Locations: Paolo, Turin, Italy

☆ Italy's competition watchdog stops Intesa moving clients to mobile bank
▼ + stars: | 2023-11-30 | by ( ) www.reuters.com time to read: +3 min

Intesa Sanpaolo bank logo and stock graph are seen displayed in this illustration taken, May 3, 2022. Italy's AGCM antitrust authority opened a probe earlier this month into the way Intesa was transferring clients to Isybank after a raft of complaints which the watchdog said had now reached 5,000. It wants Intesa to only move clients who explicitly give their consent. Isybank targets 4 million Intesa customers under 65 who only access their banking services remotely. The group migrated the first 300,000 Intesa account holders in October and plans to shift another 2 million in March.

Persons: Dado Ruvic, Intesa, AGCM, Carlo Messina, Antonio Valitutti, Isybank, Valentina Za, Giulia Segreti, Christina Fincher, Jane Merriman, Susan Fenton Organizations: REUTERS, Bank of Italy, European Central Bank, Thomson Locations: Italy

For much of this year central banks have successfully pushed back against rate cut bets. "I believe the Fed will act rationally and begin to cut rates by the end of next year, but we can't rule out the scenario that the Fed is not going to cut rates and just let the ramifications of recession do what they do." Reuters GraphicsSHIFT NEARINGMarkets now fully price in a 25 basis point U.S. rate cut in May, having seen a 65% chance earlier this week. "There are now committee members in all three (banks) willing to talk about rate cuts next year," said Chris Jeffery, head of rates and inflation strategy at LGIM. "The ECB should begin to ease policy as soon as April 2024, with risks that a more sinister downturn in growth could warrant a rate cut as soon as March," he said.

Persons: Jonathan Ernst, ramping, It's, Nate Thooft, Goldman, Christopher Waller, Huw Pill, Yannis Stournaras, Chris Jeffery, we'd, Dario Perkins, Simon Harvey, Yoruk, Naomi Rovnick, Harry Roberston, Davide Barbuscia, Ira Iosebasvili, Saqib Iqbal Ahmed, Dhara Ranasinghe, Catherine Evans Organizations: . Federal, REUTERS, ECB, U.S . Federal Reserve, European Central Bank, Manulife Investment Management, Treasury, Graphics, Bank of England, Deutsche, Lombard, Traders, Yoruk Bahceli, Thomson Locations: Washington, United States, Europe, Goldman Sachs, Greek, Amsterdam, London

The inflation rate fell to 2.3% in November. Analysts polled by Reuters had expected inflation to ease to 2.6%. Core inflation, which excludes volatile food and energy prices, fell to 3.8% in November from 4.3% the previous month. "But the inflation rate will fall to below 3% as early as the beginning of next year," Wollmershaeuser said. Economists pay close attention to German inflation data, as Germany publishes its figures one day before the euro zone inflation data release.

Persons: Fabian Bimmer, Timo Wollmershaeuser, Wollmershaeuser, Commerzbank's, Ralph Solveen, Solveen, Bert Colijn, Colijn, Miranda Murray, Maria Martinez, Linda Pasquini, Sharon Singleton, Kirsten Donovan Organizations: REUTERS, Rights, Reuters, Union, European Central Bank, Thomson Locations: Hamburg, Germany, Spanish

☆ Digital bank robberies key risk for central bank e-money, BIS report warns
▼ + stars: | 2023-11-29 | by ( Marc Jones | ) www.reuters.com time to read: +2 min

REUTERS/Steve Marcus/File Photo Acquire Licensing RightsLONDON, Nov 29 (Reuters) - Digital bank robberies and other cyber hacks will be a key risk for countries launching digital versions of their currencies, a new report from the Bank for International Settlements has warned. The BIS, dubbed the central bankers' central bank, has been overseeing much of the global development work on central bank digital currencies (CBDCs) and its report is its most comprehensive assessment yet of the challenges. A worst case scenario though would be a cyber hack that saw money stolen from what would effectively be a central bank's digital vault. "Cyber security is a key risk for CBDCs," the report published on Wednesday said, adding they would have "far-reaching implications" for the way central banks currently operate. China is trialling a prototype digital yuan with 200 million users, while the European Central Bank has just begun two years of advanced-stage exploratory work.

Persons: Steve Marcus, Marc Jones, Christina Fincher Organizations: Def Con, REUTERS, Bank for International, BIS, CBDCs, European Central Bank, Thomson Locations: Las Vegas , Nevada, U.S, Bahamas, Nigeria, China

☆ Market vulnerabilities and a possible U.S. recession: Strategists give their cautious predictions for 2024
▼ + stars: | 2023-11-29 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

The market is now largely pricing a peak at the current Fed funds target range of 5.25-5.5%, with interest rate cuts to come next year. watch now"At the outer edges of the economy there is obvious stress that is likely to spread in 2024 with rates at these levels. So it's easy to see how bad levered investments could have been made that would be vulnerable to this higher rate regime." Recession risk 'delayed rather than diminished' In a roundtable event on Tuesday, JPMorgan Asset Management strategists echoed this note of caution, claiming that the risk of a U.S. recession was "delayed rather than diminished" as the impact of higher rates feeds through into the economy. "I think the the key conclusion here is that interest rates do still bite, it's just taking longer this time around," she said.

Persons: Victor J, Jim Reid, David Folkerts, Landau, Reid, Folkerts, GSAM, Karen Ward, it's Organizations: New York Stock Exchange, Blue, Bloomberg, Getty, Monetary, Federal Reserve, Deutsche Bank, Global Economics, Research, Silicon Valley Bank, Goldman Sachs Asset Management, European Central Bank, Fed, ECB, JPMorgan, Management Locations: New York, Washington, U.S, Canada, Brazil, Chile, Hungary, Mexico, Peru, Poland

☆ Bill Ackman says the US economy faces a real risk of a 'hard landing' if the Fed doesn't cut interest rates soon
▼ + stars: | 2023-11-29 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Bill Ackman said in a Bloomberg podcast he expects the US Federal Reserve to cut rates soon. He said the US economy risks a sharp downturn if the Fed doesn't cut interest rates soon. AdvertisementBill Ackman expects the US Federal Reserve to cut rates as early as the first quarter of next year. The Fed needs to cut interest rates soon to avoid a sharp downturn in the US economy, the billionaire investor said on Bloomberg's "The David Rubenstein Show: Peer-to-Peer Conversations." The Fed has raised interest rates 11 times since March 2022 in an effort to cool soaring inflation.

Persons: Bill Ackman, —, David Rubenstein, That's, Ackman, Rubenstein, There's Organizations: Bloomberg, US Federal Reserve, Service, Carlyle Group, Deutsche Bank, European Central Bank, UBS Locations: Israel, Swiss

☆ ECB should not set policy based on profit concerns: de Guindos
▼ + stars: | 2023-11-29 | by ( ) www.reuters.com time to read: +1 min

European Central Bank (ECB) Vice-President Luis de Guindos arrives at the Presidential Palace for a meeting with Cyprus President Nikos Christodoulides in Nicosia, Cyprus, October 4, 2023. REUTERS/Yiannis Kourtoglou/File Photo Acquire Licensing RightsFRANKFURT, Nov 29 (Reuters) - The European Central Bank should not set policy based on consideration about its own profitability or the profits earned by banks, ECB Vice President Luis de Guindos said in a newspaper interview, weighing in on a disagreement between policymakers. Some ECB governors are keen to increase unremunerated minimum reserve requirements for lenders in part to lower the losses the central bank is set to make on having to pay record high rates on excess liquidity. "I understand that remuneration of reserves is important for some banks, but monetary policy shouldn’t be driven by the financial position of banks or the profits of the central banks," de Guindos told Belgian newspapers De Standaard and La Libre Belgique in an interview. Reporting by Balazs Koranyi; Editing by Andrew HeavensOur Standards: The Thomson Reuters Trust Principles.

Persons: Luis de Guindos, Nikos Christodoulides, Yiannis, de Guindos, Balazs Koranyi, Andrew Heavens Organizations: European Central Bank, Cyprus, REUTERS, Rights, ECB, La Libre Belgique, Thomson Locations: Nicosia, Cyprus, Belgian, La

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 28, 2023. REUTERS/Staff/File Photo Acquire Licensing RightsLONDON, Nov 28 (Reuters) - The EU is falling behind Britain in tapping into savers' money to boost the stock market, despite reforms in continental Europe being a step in the right direction, an official with Germany's bourse told Reuters. For Maassen there is an opportunity in Europe to rival US capital markets. Maassen urged policymakers to speed up the implementation of the Capital Markets Union, a longstanding project to create a single market for capital beyond national borders. Earlier this month, European Central Bank President Christine Lagarde called for a capital markets union, with a single supervisor and trading infrastructure, to finance its digitalisation and green transition.

Persons: Stefan Maassen, Jeremy Hunt, Hunt, ThyssenKrupp, Maassen, Germany's, Christine Lagarde, Lagarde, Pablo Mayo Cerqueiro, Anousha Sakoui, Christina Fincher Organizations: REUTERS, Staff, Germany's bourse, Reuters, Capital Markets, Deutsche, Frankfurt Stock Exchange, Schott Pharma, OLB Bank, DKV, New York Stock Exchange, EU, Capital Markets Union, European Union, European Central Bank, ., Thomson Locations: Frankfurt, Germany, EU, Europe, we're, U.S

☆ Asian stocks subdued as traders brace for inflation data
▼ + stars: | 2023-11-28 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

"But I think it's not just this week's inflation indicator, it's also the December payroll numbers ... they'll be quite critical." "Our view is that the Fed will probably start cutting rates when inflation goes below the 3% mark. The weaker-than-expected data weighed on Treasury yields, with the yield on benchmark 10-year notes slipping 9.6 basis points on Monday. The dollar index , a measure of the greenback against a basket of currencies, fell to 103.07, its lowest since Aug. 31. Data showed retail sales in Australia unexpectedly slipped in October as consumers cut back on everything but food, though analysts believe many were merely saving some money to splurge on Black Friday sales that took place this month.

Persons: DAX, Vasu Menon, they'll, Menon, Dave Ramsden, Christine Lagarde, Jerome Powell, HSI, Brent, Ankur Banerjee, Sam Holmes, Kim Coghill Organizations: Federal, Investors, OCBC Bank, of England, European Central Bank, Japan's Nikkei, Treasury, New Zealand, Thomson Locations: SINGAPORE, Asia, Pacific, Japan, Singapore, U.S, Hong Kong, Australia

☆ Asian stocks inch ahead as traders brace for inflation data
▼ + stars: | 2023-11-28 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

Japan's Nikkei (.N225) eased 0.20% but is up 8% this month, on course for its strongest monthly performance in three years. "The outlook for central bank policy has been a big factor driving the improvement in risk appetite in November," said Rodrigo Catril, senior FX strategist at National Australia Bank. Investors will focus this week on the Fed's preferred measure of inflation on Thursday and euro zone consumer inflation figures for further clarity on the where inflation is headed. The weaker-than-expected data weighed on Treasury yields, with the yield on benchmark 10-year notes slipping 9.6 basis points on Monday. The dollar index , a measure of the greenback against a basket of currencies, fell to 103.11, its lowest since Aug. 31.

Persons: Rodrigo Catril, Catril, Christine Lagarde, Jerome Powell, HSI, Brent, Ankur Banerjee, Sam Holmes Organizations: Federal, Japan's Nikkei, National Australia Bank, European Central Bank, Treasury, Thomson Locations: SINGAPORE, Asia, Pacific, Japan, U.S, OPEC

☆ BoE leads central bank chorus on need for restrictive policy
▼ + stars: | 2023-11-28 | by ( ) www.reuters.com time to read: +2 min

Deputy Governor for Markets and Banking of the Bank of England Dave Ramsden attends a press conference concerning interest rates, at the Bank of England, in London, Britain, November 2, 2023. Speaking at a central bank conference in Hong Kong, Bank of England (BoE) Deputy Governor Dave Ramsden also said he saw no financial stability grounds to lower interest rates, which are currently up at 5.25%. “We think that monetary policy is likely to need to be restrictive for an extended period of time," he said. Even with all that tightening, Ramsden said inflation was not expected to return to 2% until the end of 2025. Markets have started to position for the first rate cut, with a move seen as soon as April or June.

Persons: Bank of England Dave Ramsden, HENRY NICHOLLS, BoE, Dave Ramsden, Ramsden, Michele Bullock, Bullock, Pablo Hernández de Cos, Cos, Wayne Cole, Selena Li, Xie Yu, Jamie Freed, Simon Cameron, Moore Organizations: Markets, Banking, Bank of England, Reserve Bank of Australia, Bank of Spain, European Central Bank, ECB, Thomson Locations: London, Britain, HONG KONG, Australia, Spain, Hong Kong

☆ Morning Bid: Treasuries gobbled up, oil braces for OPEC
▼ + stars: | 2023-11-28 | by ( ) www.reuters.com time to read: +5 min

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 17, 2023. Benchmark Treasury yields fell back more than 10 basis points to 4.37% after a total of $109 billion of 2 and 5-year notes hit the Street on Monday without much disruption. Another weak U.S. housing readout, with sub-forecast new home sales last month, perhaps flattered the post-auction moves. That's likely a mixed blessing for Federal Reserve watchers - the continued buoyancy of consumption but with increasing price discrimination. Fed futures priced about 85bps of rate cuts through next year, starting in June, though many major banks expect even more.

Persons: Brendan McDermid, Mike Dolan, That's, Hong, Louis, Christopher Waller, Michelle Bowman, Michael Barr, Austan Goolsbee, Christine Lagarde, Philip Lane, Dave Ramsden, BoE, Jonathan Haskel, Hewlett Packard, Ed Osmond Organizations: New York Stock Exchange, REUTERS, Treasuries, Treasury, Adobe Digital, Federal Reserve, Louis Fed, U.S . Treasury, Richmond Fed, Dallas Fed, . Treasury, Chicago Fed, European Central Bank, ECB, Bank of England, Citi Trends, Fluence Energy, Reuters, Reuters Graphics Reuters, Thomson Locations: New York City, U.S, Asia, Europe, United States, China, New York, St, Uxin, Canaan, Elbit

☆ AI threatens wages, not jobs - so far, ECB paper finds
▼ + stars: | 2023-11-28 | by ( ) www.reuters.com time to read: +1 min

AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration//File Photo Acquire Licensing RightsFRANKFURT, Nov 28 (Reuters) - The rapid adoption of artificial intelligence could reduce wages, but so far is creating, not destroying jobs, especially for the young and highly-skilled, research published by the European Central Bank showed on Tuesday. Firms have invested heavily in artificial intelligence, or AI, leaving economists striving to understand the impact on the labour market and driving fears among the wider public for the future of their jobs. Most of their impact on employment and wages – and therefore on growth and equality – has yet to be seen." The findings were in contrast to previous "technology waves," it said, when computerisation decreased "the relative share of employment of medium-skilled workers, resulting in "polarisation".

Persons: Dado Ruvic, –, Balazs Koranyi, Barbara Lewis Organizations: REUTERS, Rights, European Central Bank, ECB, Thomson

☆ ECB could take bigger role in supervising shadow banks, Enria says
▼ + stars: | 2023-11-28 | by ( ) www.reuters.com time to read: +2 min

European Union (EU) flags fly in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski/File Photo Acquire Licensing RightsFRANKFURT, Nov 28 (Reuters) - The European Central Bank may need to take on a bigger role in supervising shadow banks as they are now bigger than conventional lenders and may be sitting on elevated risk, the outgoing head of the ECB's supervision arm told European newspapers. "These are different animals to banks, so we shouldn’t expect to supervise them in the same way as we supervise banks." Taking on oversight of shadow banks would require legislative changes, a time consuming process even under the best of circumstances, and requiring broad political agreement. But some have argued that such a change could ease liquidity stress, particularly if shadow banks gained access to the ECB lending operations.

Persons: Ralph Orlowski, Andrea Enria, Expansión, Enria, Balazs Koranyi, Tomasz Janowski Organizations: Union, European Central Bank, REUTERS, Rights, prudential, ECB, Thomson Locations: Frankfurt, Germany

[1/4] A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 27, 2023. In precious metals, gold hit a six-month high with a boost from the softer dollar and expectations for a pause in Fed tightening. There's a growing sense the economy is slowing, that price growth will likely continue to fall, that profit growth will likely fall," said Jack Ablin, chief investment officer at Cresset Capital, in Chicago. The U.S. dollar index slid against most major currencies on Monday and was on track for a monthly decline of more than 3%, which would be its biggest monthly drop in a year. The dollar index was down 0.203%, with the euro up 0.11% to $1.0951.

Persons: Brendan McDermid, Brent, Jack Ablin, Ablin, Christine Lagarde, Jim Barnes, Sterling, Sinéad Carew, Chuck Mikolazczak, Harry Robertson, Wayne Cole, Stephen Coates, Ed Osmond, Chizu Nomiyama, Christina Fincher Organizations: New York Stock Exchange, REUTERS, Treasury, U.S, Federal Reserve, Cresset, Dow Jones, Nasdaq, European Central Bank, Central, Reuters Graphics Oil, Thomson Locations: New York City, U.S, Europe, OPEC, Chicago, Bryn Mawr, Berwyn , Pennsylvania, Israel, New York, London, Sydney

The dollar index , which measures the currency against six major peers, slipped 0.1% to 103.37 and was headed for a monthly loss of more than 3%, its worst performance since November 2022. The market is also eyeing a rate decision from the Reserve Bank of New Zealand and Chinese purchasing managers' index (PMI) data. In other currencies, the euro was little changed against the dollar at $1.0937 . Against the yen, the dollar fell 0.4% to 148.885 yen . The dollar extended losses after data showed U.S. new home sales fell more than expected in October, dropping 5.6% to a seasonally-adjusted annual rate of 679,000 units.

Persons: ECB's Lagarde, Helen, Christine Lagarde's, Gertrude Chavez, Dreyfuss, Samuel Indyk, Rae Wee, Toby Chopra, Mark Potter, Paul Simao Organizations: U.S, Federal Reserve, Monex USA, Fed, European Central Bank, Bank of England, Reserve Bank of New, Australian, greenback, New, Thomson Locations: U.S, Washington, OPEC, Australia, Reserve Bank of New Zealand, New Zealand, China, New York, London, Singapore

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