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☆ Sri Lanka's rate hike shows commitment to rapid disinflation - IMF
▼ + stars: | 2023-03-04 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +2 min

COLOMBO, March 4 (Reuters) - Sri Lanka's decision to raise interest rates shows the crisis-hit country's commitment to reducing inflation quickly towards single-digit levels, the International Monetary Fund (IMF) said on Saturday. In a surprise move, the South Asia nation's central bank raised rates by 100 basis points on Friday to battle inflation, which is at 50.6%. The central bank raised its standing deposit facility rate to 15.50% and its standing lending facility rate to 16.50%, and said it would relax its currency band to move towards a market-determined exchange rate as it seeks to secure the bailout. The bank raised rates by 950 bps in the first half of last year to contain the country's financial crisis. Sri Lanka is pushing for finalisation of a four-year Extended Fund Facility and is expecting IMF board level approval this month, its central bank chief said on Friday.

☆ 3 reasons why the stock market has been incredibly resilient in the face of an aggressive Fed, according to JPMorgan
▼ + stars: | 2023-03-02 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

There has been remarkable resilience in the stock market despite soaring interest rates and stalling earnings growth. Excess cash savings and a solid credit market have helped prop up the stock market, according to JPMorgan. These are the three reasons why the stock market has been so resilient despite an aggressive Fed. For more than a decade, consumers were able to take advantage of near-zero interest rates and score 30-year fixed mortgages at less than 4%, while businesses locked in long-term debt at low interest rates. Headroom in the equity risk premiumThe equity risk premium is the excess return earned in the stock market relative to the risk-free rate.

☆ Man Group beats AUM expectations, posts higher performance fees
▼ + stars: | 2023-02-28 | by ( Nell Mackenzie | ) www.reuters.com time to read: +2 min

The company posted full year core pretax profit of $779 million, up 18% on the previous year. It recorded a core net management fee growth of 6% collecting $779 million of core performance fees. "An increase in volatility and higher dispersion meant higher alpha generation. The firm recorded net inflows of $3.1 billion for 2022, down 77% against a year earlier, although this was 5.3% higher than the average posted by the UK hedge fund industry. Many pension funds reached for profitable investments they had elsewhere, like hedge funds as well as investments into collateralised loan obligations.

☆ Op-ed: The calm before the storm – These 3 drivers will dictate the landing ahead for the U.S. economy
▼ + stars: | 2023-02-28 | by ( Rebecca Patterson | ) www.cnbc.com time to read: +5 min

The approach of those storms seems an appropriate analogy to the U.S. economic outlook today. Investors today are keenly focused on what kind of economic landing the U.S. will have and how best to position for different outcomes. That's critical for the broader growth outlook, given that consumption represents around two-thirds of the economy. While many U.S. firms are expressing their nervousness about the economic outlook, they are at the same time still seeking to hire. A negative feedback loop would likely ensue, with less income weighing on spending and less spending making companies more cautious.

A year from Russia's invasion of Ukraine, fracturing geopolitics seems to be rolling back world trade links and financial interdependence at speed. But global financial conditions - and the strength of the U.S. dollar as a proxy for that - may be playing a bigger part than the more dramatic political narrative lets on. "A stronger dollar tends to go hand in hand with tighter global financial conditions and more subdued supply chain activity." Compensating somewhat for dollar exchange rate strength over the decade were historically low real dollar borrowing rates. There's little doubt that the pandemic and the geopolitics surrounding Ukraine and Taiwan have been major potential disruptions to world trade by themselves.

The TGA is a liability on the Fed's balance sheet. This means that when the TGA goes down, reserves go up, effectively administering an injection of liquidity into the system. chartThis runs counter to the Fed's current stance of pursuing a tighter monetary policy, of which draining liquidity from the system via QT is a part. Mark Cabana, head of U.S. rates strategy at Bank of America, calculates that since the Fed's QT program got underway last May, the Fed's balance sheet has shrunk by $406 billion and the TGA has dropped $422 billion. "Fed QT to date has been largely absorbed by lower TGA," he and his team wrote in a recent note.

☆ Asian shares cautious, BOJ faces crunch policy decision
▼ + stars: | 2023-01-16 | by ( Wayne Cole | ) www.reuters.com time to read: +5 min

Earnings season gathers steam this week with Goldman Sachs, Morgan Stanley and the first big tech name, Netflix, among those reporting. However, it did try to get ahead of speculative sellers by announcing it would do another emergency round today, suggesting it was determined to defend its yield policy at least for now. THE YEN UN-ANCHOREDThe BOJ's uber-easy policy has acted as a sort of anchor for yields globally, while dragging down on the yen. Were it to abandon the policy, it would put upward pressure on yields across developed markets and likely see the yen surge. "A soft-landing also reduces the tail risk of much higher U.S. rates, and this reduced risk premia helps global risk appetite."

Far from ignoring Lula's challenges to control the risks of this institutional shock, investors and analysts said however that the focus remains on fiscal issues when assessing the new government in the long term. If the new parameters are considered weak by the market, it could renew fears of fiscal dominance and prevent the BCB from easing." Discussions of the new fiscal framework are key under Lula's administration, after policymakers have highlighted inflationary risks arising from leftist President-elect's 168 billion reais ($32 billion) spending proposal to meet campaign promises. "The unsettled and deeply divided political environment and related high social tension keeps risk premia high and could undermine overall governability." (.JPMEGDBRAR)A mobilized opposition with the "potential to turn violent" is the main conclusion from Sunday's protests for the political risk advisory Eurasia Group.

☆ Oil plunge, tech collapse and Fed cuts? Strategist shares possible 2023 market 'surprises'
▼ + stars: | 2022-12-07 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, August 29, 2022. After a tumultuous year for financial markets, Standard Chartered outlined a number of potential surprises for 2023 that it says are being "underpriced" by the market. Eric Robertson, the bank's head of research and chief strategist, said outsized market moves are likely to continue next year, even if risks decline and sentiment improves. He warned investors to prepare for "another year of shaken nerves and rattled brains." As such, he named eight potential market surprises that have a "non-zero probability" of occurring in 2023, which fall "materially outside of the market consensus" or the bank's own baseline views, but are "underpriced by the markets."

☆ Stocks have not yet bottomed and investors should be prepared for flat returns through 2023, Goldman Sachs says
▼ + stars: | 2022-11-28 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

Despite a relief rally this month, Goldman Sachs says the stock market has still not bottomed out. Investors should have less exposure to stocks and bonds in the near-term, the bank wrote in a note on Monday. A Goldman analyst broke down why investors may want to allocate more to cash and credit for now. But the party isn't going to last, according to Goldman Sachs strategist Christian Mueller-Glissmann, and there are a number of conditions that have still not been met in order for a market bottom to form. And the recent relief rally on peak inflation/hawkishness hopes has reduced risk premia on cyclical assets again."

REUTERS/Richard Carson/File PhotoLONDON, Nov 23 (Reuters) - You can sometimes buck the market - for a time at least. Even mention government or central bank intervention in financial markets to many professionals and you elicit a tirade on such futility against forces beyond control. Against that, this year was marked by three very different examples of direct financial market intervention that appear to have succeeded in their narrow and targetted goals at least - despite many doubts whether they would or even could work. And it was at least in some part due to the SPR intervention, even if that was aided by central bank tightening and slowing world demand. All three examples of market intervention had their own dynamics and drivers.

LONDON, Nov 11 (Reuters) - Defusing this year's single biggest shock to the world economy could catalyze a rebound in global markets many investors feel is overdue - but may also raise other uncomfortable conundrums. Murmurs about some endgame in the 9-month-old Russian invasion of Ukraine - suggestions of anything from 'talks about talks' to some negotiated ceasefire - have swirled in media over the past week. All were watched as intently by global investors as much as politicians or military strategists. Western sanctions slapped on Moscow seeded an energy and food price explosion that compounded and elongated the post-pandemic inflation spike around the world. US Geopolitical RiskUS inflation, Fed rates and marketsThe opinions expressed here are those of the author, a columnist for Reuters.

But Broadbent's concentration on the likely peak terminal rate next year is what matters most. For context, that UK terminal rate, now pencilled in for around the middle of 2023, rocketed almost two full percentage points from just prior to the botched mini-budget to as high as 6.25%. Fed terminal rates, now targeted about March next year, have jumped 150 bps to 5% over the past two months. And Morgan Stanley, for example, see a UK terminal rate as low as 4% - a huge drop from current market pricing. The stubborn refusal of terminal rate pricing to return to where it was last month reflects the extent of those jitters.

☆ Goldman says stay defensive and overweight cash
▼ + stars: | 2022-10-19 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +3 min

Investors should be defensively positioned in their portfolios and holding cash on the sidelines through the end of the year, according to Goldman Sachs. The firm is specifically overweight cash and commodities, neutral on credit and bonds and underweight equities for the next few months. Not near the market bottom The view comes as global monetary policy continues to tighten in response to persistently high inflation. 60/40 drawdown, has deepened," wrote Mueller-Glissmann, adding that growth stocks have also deteriorated further amid high inflation. "We are looking for peaks in inflation, hawkishness, recession risk, risk premia and investor bearishness."

☆ Britain's failed tax experiment will leave economic scars and credibility issues, analysts say
▼ + stars: | 2022-10-18 | by ( Jenni Reid | ) www.cnbc.com time to read: +6 min

U.K. Prime Minister Liz Truss faces increasing pressure to resign. The yield on these bonds, which reflect the cost of borrowing for the government and influence interest rates on many products such as mortgages, eased lower after the statement Monday. The yield on 10-year bonds, the closely-watched benchmark seen as the indicator of long-term interest rates, remains significantly elevated at 4.045%, up from 3.49% before the budget. Bonds tend to become less attractive when interest rates rise, decreasing their price and sending up the yield. watch nowWider effectsWith the ideologically-driven policy platform Truss ran on now dead in the water, there is uncertainty in many other areas.

☆ Government bonds no safe haven in central bank-driven recession -BlackRock
▼ + stars: | 2022-10-17 | by ( Davide Barbuscia | ) www.reuters.com time to read: +2 min

NEW YORK, Oct 17 (Reuters) - Government bonds may not offer much protection in a recession if surging inflation pressures central banks to continue tightening monetary policy, the BlackRock Investment Institute said. Risks of a global recession have increased as central banks around the world tighten monetary policy to bring down consumer prices. While central banks have typically eased monetary policy to boost economies when they showed signs of contraction, "That era is over. Now central banks are set to induce recessions by over-tightening policy," BlackRock, the world's largest asset manager, said. BlackRock expects the correlation between bonds and stocks to remain positive, meaning bonds will unlikely protect investors from falls in stocks valuations.

☆ Further 20% fall in U.S. stocks ‘certainly possible,’ says IMF director
▼ + stars: | 2022-10-12 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

A shift in investor sentiment could see a further 20% downside for U.S. stock markets, according to the International Monetary Fund's director of monetary and capital markets. Sentiment and risk premia have held up "pretty well" so far, leading to an "orderly tightening," he said Tuesday. Asked about a recent CNBC interview with Jamie Dimon, in which the JPMorgan chief executive said the S&P 500 could easily fall by another 20%, Adrian said it was "certainly possible." The U.S. Federal Reserve raised its funds rate to 3%-3.25%, the highest it has been since early 2008, in September as it attempts to cool 8.3% year-on-year inflation. The latest U.S. inflation figures are due Thursday.

☆ Moody's warns UK unfunded tax cuts are 'credit negative'
▼ + stars: | 2022-09-28 | by ( ) www.reuters.com time to read: +1 min

SYDNEY, Sept 28 (Reuters) - Global ratings agency Moody's has warned the British government that plans for unfunded tax cuts could lead to larger budget deficits and higher interest rates, threatening the country's credibility with investors. In a blunt release the agency said large unfunded tax cuts were "credit negative", leading to structurally higher deficits amid rising borrowing costs, a weaker growth outlook and acute public spending pressure. "A sustained confidence shock arising from market concerns over the credibility of the government's fiscal strategy that resulted in structurally higher funding costs could more permanently weaken the UK's debt affordability," Moody's said. The pound tumbled to an all-time low of $1.0327 on Monday while bond yields surged as investors demanded a higher risk premia for holding British assets. Register now for FREE unlimited access to Reuters.com RegisterReporting by Wayne Cole Editing by Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: Eye of the storm
▼ + stars: | 2022-09-27 | by ( ) www.reuters.com time to read: +5 min

REUTERS/Shannon Stapleton TPX IMAGES OF THE DAYA look at the day ahead in U.S. and global markets from Mike Dolan. As Hurricane Ian raged and set its sights on Cuba and Florida, a global financial storm in bond and currency markets calmed moderately - though likely only temporarily. read moreRegister now for FREE unlimited access to Reuters.com RegisterFor all its potential destruction, Ian doesn't yet appear on the world markets radar. UK debt auctions this week will be watched very closely. But this may be the eye of the storm.

☆ Morning Bid: Unstable cable
▼ + stars: | 2022-09-26 | by ( ) www.reuters.com time to read: +5 min

Supercharging an already rampant U.S. dollar around the globe, the sterling/dollar rate - nicknamed 'cable' by traders - went into virtual freefall at one point early on Monday. The pound's plunge comes ahead big auctions of both long-term and inflation-linked British government bonds this week and increasing liquidity issues in the gilt markets. read moreThe scale of the pound's losses and fiscal fears has many traders speculating about emergency rate rises by the Bank of England. Rate futures now price in a three-quarters-of-a-point hike to 3% on or before the BoE's next meeting on Nov. 2. read moreChina also acted in a different way on Monday to rein in yuan ongoing slump against the dollar.

Whacked further by a soaring dollar, indices of overseas sovereign bonds in dollar terms are down almost 24% - even worse than then S&P500's (.SPX) 19% year-to-date reversal. Far from portfolio buffers, these sorts of moves make bonds meat and drink for hedge funds. And even though equity prices have fallen and cheapened on many models, their relative value versus bonds has not. It trimmed expected equity returns by a quarter point. Reuters poll-U.S. treasury yield outlookRobeco Chart on Asset Allocation HistoryThe opinions expressed here are those of the author, a columnist for Reuters.

☆ Tinerii, chemați la vot… pe TikTok! — Moldova.org
▼ + stars: | 2021-07-02 | by ( Autor Invitat | ) www.moldova.org time to read: +3 min

Programul Challenger îndeamnă tinerii să voteze conștient și lansează o provocare video – „De ce merg pe 11 iulie la vot”. Campania „Avem ce Votăm” se desfășoară pe platforma TikTok și își propune să informeze tinerii despre alegerile parlamentare anticipate din 11 iulie, într-un limbaj simplu și accesibil. Adaugă pe această scurtă secvență textul „De ce merg pe 11 iulie la vot” . Campania încurajează cât mai mulți tinerii să comunice colegilor și prietenilor săi despre alegerile din 11 iulie 2021. Campania încurajează tinerii să voteze informat.

Persons: Challenger, ., Videourile Organizations: Challenger, challenger, Facebook, TikTok, Campania

Intră pe pagina TikTok Challenger.md și vezi mai multe exemple. Campania încurajează cât mai mulți tinerii să comunice colegilor și prietenilor săi despre alegerile din 11 iulie 2021. Videourile pot fi postate, de asemenea, pe pagina Facebook și Instagram, cu utilizarea etichetelor #avemcevotăm și #challenger. Pentru alte detalii, accesați paginile Challenger de pe Instagram, Facebook și TikTok. Campania încurajează tinerii să voteze informat.

Persons: ., Videourile Organizations: Challenger, challenger, Facebook, TikTok, Campania

Programul Challenger a lansat o provocare în ajun de alegeri parlamentare anticipateProgramul Challenger îndeamnă tinerii să voteze conștient și lansează o provocare video - „De ce merg pe 11 iulie la vot”. Campania „Avem ce Votăm” se desfășoară pe platforma TikTok și își propune să informeze tinerii despre alegerile parlamentare anticipate din 11 iulie, într-un limbaj simplu și accesibil. Adaugă pe această scurtă secvență textul „De ce merg pe 11 iulie la vot”. Selectează una dintre melodiile din trend, adaugă #avemcevotăm #challenger și postează videoul. Videourile pot fi postate, de asemenea, pe pagina Facebook și Instagram, cu utilizarea etichetelor #avemcevotăm și #challenger.

Persons: ., Videourile Organizations: Challenger, challenger, Facebook, TikTok, Campania

☆ METRO Cash & Carry Moldova aplică o politică consecventă în domeniul managementului calității, responsabilității sociale, integrității și deservirii clienților
▼ + stars: | 2021-06-30 | by ( Onixmedia Srl | ) diez.md time to read: +3 min

Rezultatele politicii companiei METRO Cash & Carry Moldova, în domeniul managementului calității, responsabilității sociale, deservirii consumatorilor și integrității au fost apreciate în cadrul concursului „Marca comercială a anului 2020”. METRO Cash & Carry Moldova a primit pentru al șaselea an consecutiv cea mai mare distincţie – Laureat al „Concursului pentru realizări în domeniul calităţii 2020”. De asemenea, compania a fost premiată cu distincția „Mercurul de aur” și diplomă de onoare pentru politica sa de responsabilitate socială. Compania a fost apreciată și cu „Premiul integrității” pentru standarde înalte în domeniul politicilor de conformitate și integritate, în sectorul privat. În anul financiar 2019/20, compania METRO a înregistrat un volum al vânzărilor de 25,6 miliarde EUR.

Persons: METRO Cash, METRO, Dow Jones Organizations: METRO Cash, METRO, Moldova Locations: Moldova, Republicii Moldova, Sustenabilitatea, Republica Moldova

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