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☆ Prudential's full year profit up 8%, COVID curbs removal a boost: CEO
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, March 15 (Reuters) - Asia-focused insurer Prudential's (PRU.L) operating profit rose 8% in 2022, boosted by new insurance sales despite the coronavirus pandemic, and its new boss said on Wednesday sales had picked up further since China lifted its COVID-19 curbs. Adjusted operating profit from the London and Hong Kong dual-listed company came in at $3.38 billion on a constant exchange rate basis, up from $3.23 billion in 2021, Prudential said in a statement. The result beat a forecast of around $3.34 billion from 22 analysts' forecasts provided by the company. The insurer has now completed the move of its entire senior management team from London to Hong Kong - its new global headquarters - which is closer to its revenue sources. Reporting by Selena Li Editing by Shri Navaratnam and Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

☆ BOJ debated feasibility of tweaking yield control in January, minutes show
▼ + stars: | 2023-03-15 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

At the January meeting, the BOJ maintained its ultra-low interest rates, including a bond yield cap it was struggling to defend, defying market expectations it would phase out its massive stimulus programme amid mounting inflationary pressure. "The BOJ must keep various options in mind in guiding monetary policy. But with overseas economies slowing now, it's inappropriate to rush towards an exit" from ultra-easy policy, another board member said, according to the minutes. Under yield curve control (YCC), the BOJ guides short-term rates at -0.1% and the 10-year bond yield around zero as part of efforts to sustainably hit its 2% inflation target. Instead of tweaking YCC, the BOJ modified its funds-supply market operation in January to use it as a new tool to prevent long-term rates from rising too much.

☆ Fed to consider tougher rules for midsize banks after SVB collapse-source
▼ + stars: | 2023-03-15 | by ( Pete Schroeder | ) www.reuters.com time to read: +2 min

March 14 (Reuters) - The Federal Reserve is considering tougher rules and oversight for midsize banks similar in size to Silicon Valley Bank (SIVB.O), which collapsed suddenly last week, according to a source familiar with the matter. Now, a review of the $209 billion bank's failure being conducted by Fed Vice Chair for Supervision Michael Barr could lead to strengthened rules on banks in the $100 billion to $250 billion range, the source told Reuters. That review of Fed supervision and regulation of the bank will be released by May 1, and augments a review of bank capital rules by Barr already underway. All those requirements could be reworked by the Fed in the aftermath of the collapse, which has also spurred fresh calls from proponents of tougher rules for regulators to rebuild those restrictions. On Tuesday, 50 Democratic lawmakers, including Senator Elizabeth Warren, introduced a bill to repeal the law that eased rules for banks in 2018.

☆ China, Russia, Iran conduct four-day naval exercises in Gulf of Oman
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

[1/3] A Russian warship is seen during a joint naval military drill between Iran, Russia, and China in the Gulf of Oman, Iran, in this picture obtained on March 15, 2023. Iranian Army/WANA (West Asia News Agency)/Handout via REUTERSBEIJING/MOSCOW, March 15 (Reuters) - China, Iran and Russia are conducting joint naval exercises in the Gulf of Oman from March 15-19, the Chinese and Russian defence ministries said on Wednesday. The drills, the 2023 edition of the "Marine Security Belt" exercises, will help "deepen practical cooperation among the navies of participating countries", China's defence ministry said. Russia's defence ministry said the active phase of the exercises would be on March 16-17, involving various joint manoeuvres including daytime and night-time artillery firing. Reporting by Beijing and Moscow newsrooms; Editing by Shri Navaratnam and Kevin LiffeyOur Standards: The Thomson Reuters Trust Principles.

☆ BOJ board debated feasibility of tweaking YCC - Jan meeting minutes
▼ + stars: | 2023-03-15 | by ( Leika Kihara | ) www.reuters.com time to read: +1 min

TOKYO, March 15 (Reuters) - Bank of Japan (BOJ) policymakers debated the feasibility of making further tweaks to its bond yield curve control with one member saying it must keep "various options in mind" on the future course of monetary policy, minutes of its January meeting showed on Wednesday. The nine-member board concluded that it was premature to exit ultra-loose monetary policy now with inflation yet to sustainably achieve the BOJ's 2% target, according to the minutes of the Jan. 17-18 meeting. "The BOJ must keep various options in mind in guiding monetary policy. But with overseas economies slowing now, it's inappropriate to rush towards an exit" from ultra-easy policy, another board member said, according to the minutes. At the January meeting, the BOJ maintained ultra-low rates, including a bond yield cap it was struggling to defend, defying market expectations it would phase out its massive stimulus programme amid mounting inflationary pressure.

☆ Fed to consider tougher rules for midsize banks after SVB, Signature failures -WSJ
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

March 14 (Reuters) - U.S. Federal Reserve is reconsidering its regulations regarding midsize banks which could potentially mean expansion of existing restrictions that currently only affect larger Wall Street firms, the Wall Street Journal reported on Tuesday. Regulators were forced to announce relief measures on Sunday, reassuring customers that all the deposits from both the banks would be covered. The Fed also announced a new facility to give banks access to emergency funds, in a bid to calm broader fears in the market. According to the newspaper, the revised rules could target firms with between $100 billion to $250 billion in assets. The Federal Reserve did not immediately respond to Reuters request for comment.

☆ Investors tiptoe back into US bank stocks, regulators probe SVB collapse
▼ + stars: | 2023-03-14 | by ( Chris Prentice | ) www.reuters.com time to read: +6 min

March 14 (Reuters) - Bruised U.S. bank stocks regained some ground on Tuesday, as a sell-off sparked by Silicon Valley Bank's collapse gave way to bargain-hunting by investors hopeful that efforts to shore up confidence would avert a wider financial crisis. The S&P 500 regional banks index (.SPLRCBNKS) rebounded 1.4%, leaving it with a 26% loss over the past five sessions. Investors worry about the health of smaller banks, the prospect of tighter regulation and authorities' preference for protecting depositors before shareholders. Reuters Graphics Reuters GraphicsINVESTIGATIONSAs markets adjusted to the impact of SVB's collapse, regulars turned their focus to the circumstances around the bank's collapse. Officials are also examining stock sales by officers of SVB Financial Group, which owned the bank, the WSJ reported, citing people familiar with the matter.

Worries about potential contagion had also slammed bank shares in Asia and Europe as investors re-examined their risks, despite assurances from U.S. President Joe Biden and other global policymakers that the financial system is safe. In Europe, where some see lenders as less vulnerable, the banking index (.SX7P) first fell then recovered to rise 2.7%. Asian banking stocks had extended their declines overnight, with Japanese banks hard-hit despite reassurances from the Bank of Japan said about their capital buffers. Regulator FDIC had moved swiftly to close New York's Signature Bank SBNY.O as well as taking control of SVB. Citing people familiar with the matter, the WSJ said the investigators are also examining stock sales that SVB Financial Group's executives made days before SVB failed, adding that the Justice Department's probe involves the department's fraud prosecutors in Washington and San Francisco.

Banking giants Citi (C.N), Wells Fargo (WFC.N) and JP Morgan (JPM.N) were also 1%-3% higher in the pre-market. Japanese financial institutions have sufficient capital buffers to absorb losses caused by external factors, including risks caused by SVB's collapse, the Bank of Japan said. Traders currently see a 50% chance of no rate hike at that meeting, with rate cuts priced in for the second half of the year. The prospect of higher rates had been "the reason investors have been really excited about Japan bank stocks", Ikeda added. We just ask for a little bit of time because of the volume," FDIC employee Luis Mayorga told waiting customers.

[1/2] Customers wait in line outside a branch of the Silicon Valley Bank in Wellesley, Massachusetts, U.S., March 13, 2023. REUTERS/Brian SnyderMarch 14 (Reuters) - Silicon Valley Bank's collapse continued to pound global bank stocks on Tuesday as investors fretted over the financial health of some lenders, despite assurances from U.S. President Joe Biden and other policymakers. The European banks index (.SX7P) fell 0.6% after posting its biggest percentage loss in more than a year on Monday. "Bank runs have started (and) interbank markets have become stressed," said Damien Boey, chief equity strategist at Sydney-based investment bank Barrenjoey. The prospect of higher interest rates had been "the reason investors have been really excited about Japan bank stocks", Ikeda added.

"Bank runs have started (and) interbank markets have become stressed," said Damien Boey, chief equity strategist at Sydney-based investment bank Barrenjoey. A furious race to reprice interest rate expectations also buffeted markets as investors bet the Federal Reserve will be reluctant to hike next week. Traders currently see a 50% chance of no rate hike at that meeting, with rate cuts priced in for the second half of the year. The prospect of higher interest rates had been "the reason investors have been really excited about Japan bank stocks." After marathon weekend talks, HSBC HSBA.L said it was buying the British arm of SVB for one pound ($1.21).

☆ Analysis: SVB collapse unleashes Treasury volatility, whiplashing investors
▼ + stars: | 2023-03-14 | by ( Carolina Mandl | ) www.reuters.com time to read: +5 min

[1/2] Customers wait in line outside a branch of the Silicon Valley Bank in Wellesley, Massachusetts, U.S., March 13, 2023. REUTERS/Brian SnyderNEW YORK, March 14 (Reuters) - Extreme volatility is rattling U.S. Treasury markets in the wake of Silicon Valley Bank's (SIVB.O) collapse and investors fear a prolonged bout of gyrations before calm returns to bond markets. The Fed chief's hawkish message helped push yields, which move inversely to prices, to their highest levels in years. As investors piled back into Treasuries, yields plummeted. Over the longer term, sustained rate volatility is unlikely to be good for stocks, said Purves, of Tallbacken Capital.

Fears remained on Wall Street on Monday despite the measures announced over the weekend following the collapse of California-based Silicon Valley Bank (SIVB.O) and New York-based Signature Bank (SBNY.O). Some investors have called for further action by banking regulators to reassure markets. But banking experts said regulators would likely want to see the extent of any further contagion before deciding on fresh measures. In addition, the Fed announced Monday it was doing an internal review of its oversight of Silicon Valley Bank, where it was the primary regulator. Prior to Silicon Valley Bank's collapse, banks had been lobbying lawmakers to push back against the Fed's review, arguing it could slow the economy.

☆ Honduras president says govt to seek official relations with China
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

TEGUCIGALPA, March 14 (Reuters) - Honduras President Xiomara Castro said on Tuesday she had instructed the country's foreign minister to bring about the opening of official relations with China. Honduras' foreign ministry did not immediately reply to a request for comment on the announcement. China does not allow countries with which it has diplomatic relations to maintain official ties with Taiwan. If Honduras breaks off its relations with Taiwan, it would leave it with formal diplomatic ties with only 13 countries. Taiwan's foreign ministry said it was "in the process of understanding" the situation, without giving further details.

At some Silicon Valley Bank branch locations in California, depositors gathered early Friday to attempt to get their cash out, fearing it could be inaccessible in the coming days. It has had financial relationships with a who’s who of Silicon Valley firms over the years, including Snapchat's parent Snap Inc (SNAP.N). A locked door to a Silicon Valley Bank (SVB) location on Sand Hill Road is seen in Menlo Park, California, U.S. March 10, 2023. A Silicon Valley Bank spokeswoman didn't immediately respond to a request for comment sent Friday. As of Friday, FarmboxRx’s funds were still tied up with Silicon Valley Bank.

☆ Heavy rain in Australia triggers flood evacuations in Queensland
▼ + stars: | 2023-03-11 | by ( ) www.reuters.com time to read: +2 min

SYDNEY, March 11 (Reuters) - Emergency services in Australia's Queensland state evacuated residents to higher ground on Saturday, as record-breaking floods sparked by heavy rain lashed the region's northwest. Fifty three residents of the isolated Gulf Country town of Burketown, about 2,115 km (1,314 miles) northwest of state capital Brisbane, had been evacuated since heavy rain triggered floods earlier this week, police said Saturday. At Burketown, the flood topped the March 2011 record of 6.87 metres after up to 293 mm of rain fell on Thursday and Friday, the Bureau of Meteorology previously said. Police were co-ordinating the evacuation via helicopter to the mining town of Mount Isa, about 425 km (264 miles) south. Flood alerts were current on Saturday for large swaths of Queensland, and there were also warnings for severe storms, heavy rainfall, and potential flash flooding in many parts, including the Gulf Country.

WASHINGTON/NEW YORK, March 11 (Reuters) - The rapid unraveling of SVB Financial Group (SIVB.O) has blindsided the banking industry after years of stability. Investors and customers now face a nervous wait to see if SVB bank finds a buyer quickly. During the 2008 financial crisis, Washington Mutual found a buyer immediately. One area of particular focus could be larger regional banks, which saw some rule relief under the Trump administration. U.S. banking regulators said in October they were considering new requirements on large regional banks, including holding more long-term debt to weather losses.

Australia's second largest airline is in talks with banks including Goldman Sachs (GS.N) and UBS (UBSG.S) about the loan, said the sources, although no decision has been made yet and the size of the debt has not been finalised. The sources did not wish to be identified as the discussions were private. The airline's owner Bain Capital and Goldman Sachs declined to comment. Bain said in January it would explore re-listing Virgin, which it bought for A$3.5 billion ($2.45 billion) including liabilities in 2020 after it was placed in voluntary administration, the closest Australian equivalent to Chapter 11 bankruptcy. It hired Goldman, UBS and Barrenjoey last month as lead managers for the potential initial public offering (IPO).

☆ China's Xi secures precedent-breaking third term as president
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +3 min

[1/4] Chinese President Xi Jinping looks on after casting his vote during the Third Plenary Session of the National People's Congress (NPC) at the Great Hall of the People, in Beijing, China, 10 March 2023. MARK R. CRISTINO/Pool via REUTERSBEIJING, March 10 (Reuters) - Xi Jinping on Friday secured a precedent-breaking third five-year term as China's president as he tightens his grip as the country's most powerful leader since Mao Zedong. The stage was set for another Xi term when he did away with presidential term limits in 2018. Xi chatted casually with Li, who was seated to his left, as delegates deposited voting slips into electronic ballot boxes. The parliament also elected Zhao Leji, 66, as the new parliament chair and Han Zheng, 68, as the new vice president.

Businesses, under government pressure to increase wages to boost household consumption, are struggling to motor on in the face of muted demand. Japan GDP revised down on weak consumptionPrivate consumption, which makes up more than half of the country's GDP, grew 0.3%, the data showed, downgraded from an initial estimate of a 0.5% increase. Consumption of goods was also less solid than previously estimated, the data showed. Domestic demand as a whole knocked 0.3 percentage point from revised GDP growth, slightly more than initially estimated, while net exports added 0.4 percentage point. Reporting by Kantaro Komiya and Eimi Yamamitsu Editing by Chang-Ran Kim & Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

☆ Asian shares stutter, dollar buoyant as data supports hawkish Powell
▼ + stars: | 2023-03-09 | by ( Stella Qiu | ) www.reuters.com time to read: +5 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) eased 0.2% on Thursday, extending a drop of 1.4% the previous session. S&P 500 futures eased 0.1% and Nasdaq futures were off 0.3%Inflation data out of China showed on Thursday that domestic demand still remained tepid. The U.S. dollar index, measuring the greenback's value against a basket of major peers, hovered close to a three-month top at 105.6. The central bank on Wednesday left its key overnight interest rate on hold, becoming the first major central bank to suspend its monetary tightening campaign. On Thursday, the two-year Treasury yields held close to its 15 year highs at 5.0553%, while the benchmark 10-year yields were steady at 3.9775%.

☆ Egypt central bank seeks advisor for United Bank sale -sources
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +1 min

CAIRO, March 9 (Reuters) - Egypt's central bank has sent investment banks a request for proposals to pitch for an advisory role in the sale of United Bank of Egypt, which the central bank owns, two sources with knowledge of the matter said. The search for advisors comes after talks with Saudi Arabia's sovereign wealth fund to acquire United Bank failed after disagreement over its valuation. The government said it planned to sell stakes in 32 companies, but since then has placed stakes in other companies up for sale as well. The finance ministry said last month it was seeking to sell the 20% stake in AlexBank that it still owns. Analysts say a stake in the state-controlled House and Development Bank may also be up for sale.

SINGAPORE/LONDON, March 7 (Reuters) - The U.S. dollar held steady on Tuesday ahead of testimony before Congress by Federal Reserve Chair Jerome Powell, while the Aussie slid after the Reserve Bank of Australia hinted it might nearly be done with monetary tightening. Elsewhere, the euro, sterling and yen were all broadly steady with the common currency at $1.0671 , the pound at $1.20245 , and one dollar worth 135.7 yen . That meant U.S. dollar index , which measures the unit against six major rivals, was also flat at 104.3, having slipped 0.26% a day earlier. "If (he) remains cautious ... that could trigger the dollar index to fall further below the 105.00-level ahead of the release of the NFP report on Friday." Investors are also awaiting the final policy meeting for Bank of Japan Governor Haruhiko Kuroda on Thursday and Friday, when the central bank is set to stick to its ultra-loose monetary path.

☆ Dollar treads water ahead of Powell testimony; Aussie slips
▼ + stars: | 2023-03-07 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

SINGAPORE, March 7 (Reuters) - The U.S. dollar was tentative on Tuesday ahead of testimony before Congress by Federal Reserve Chair Jerome Powell, while the Aussie slid after the Reserve Bank of Australia hinted that it might nearly be done with monetary tightening. Elsewhere, the U.S. dollar index , which measures it against six major rivals, was flat at 104.24, having slipped 0.26% overnight. "We suspect he will sound noncommittal for now and take his cues from the looming upcoming key data," said Cummins, who expects the Fed to raise rates by 50 basis points. Fed funds futures traders are pricing in a 76% probability the Fed will raise rates by 25 basis points at its March meeting. OCBC currency strategist Christopher Wong said Powell's testimony will be one of the last instances of Fed officials speaking before the black-out period commences ahead of the FOMC meeting.

☆ Australia central bank tempers hawkish outlook after hiking rates to over decade high
▼ + stars: | 2023-03-07 | by ( Stella Qiu | ) www.reuters.com time to read: +4 min

In a dovish step, the central bank dropped a reference to further rate "increases", saying instead that "further tightening" would be needed, suggesting that just one more hike might be enough. Rates have already gone up by a whopping 350 basis points since last May, easily the most aggressive tightening campaign by the central bank in modern history. Speculation was rife that the central bank could temper the forward guidance given recent softer data with unemployment rising, economic growth disappointing and wages not climbing as fast as feared. Gareth Aird, economist at Commonwealth Bank of Australia, sees a risk of the RBA could pause in April. "The reference to assessing 'when' means that the RBA Board has not yet made their mind up around increasing the cash rate in April," Aird said.

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