DIRS.INFO The most relevant business & tech news

☆ Saudi discussing $5 billion deposit for Turkey - Saudi finance ministry spox
▼ + stars: | 2022-11-22 | by ( ) www.reuters.com time to read: 1 min

DUBAI, Nov 22 (Reuters) - Saudi Arabia and Turkey are discussing a $5 billion deposit at Turkey's central bank, a Saudi Ministry of Finance spokesperson said on Tuesday. "We are in final discussion to make a USD 5 billion deposit with the central bank of (Turkey)," the spokesperson said in an emailed response to a Reuters query. Reporting by Ghaida Ghantous; Editing by Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

☆ Fed's Mester wants more progress on inflation before ending interest rate hikes
▼ + stars: | 2022-11-21 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Cleveland Federal Reserve President Loretta Mester said Monday inflation will need to show more signs of progress before she's ready to stop advocating for interest rate increases. While acknowledging that recent data has been encouraging, the central bank official told CNBC that the progress is only a start. Markets rallied in recent days following data showing the rate of price increases slower than estimates, though inflation is still running at a 7.7% annual rate as gauged by the consumer price index. In recent days, the Fed has faced some criticism that its focus on inflation could cause unnecessary damage to the economy. Mester said the Fed is trying to bring down inflation "as painlessly as possible."

☆ Japan sees core inflation at highest in 40 years as Asia-Pacific stocks rise
▼ + stars: | 2022-11-18 | by ( Jihye Lee | ) www.cnbc.com time to read: 1 min

Keeping inflation under control is the best way to ensure a strong economy for everyone, Federal Reserve Governor Philip Jefferson said Thursday. "Low inflation is key to achieving a long and sustained expansion — an economy that works for all," the central bank official said during an event in Minneapolis. "Pursuing our dual mandate is the best way for the Federal Reserve to promote widely shared prosperity." Jefferson did not provide any direct comments on where he sees policy heading as the Fed looks to achieve both full employment and stable prices. His comments from following a flurry of speeches from his colleagues, who universally say the Fed will need to raise interest rates more to bring down inflation still running around its highest levels since the early 1980s.

☆ Colombia's Grupo Aval posts 23.2% decrease in Q3 net profit
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +1 min

Nov 16 (Reuters) - Colombian financial conglomerate Grupo Aval (GAA.CN) reported third quarter net profit down 23.2% from a year earlier on Wednesday, landing at 929.8 billion pesos ($193.4 million), citing a higher effective tax rate and increased costs. The conglomerate's portfolio includes Colombian banks Banco de Bogota (BBO.CN), Banco Popular (BPO.CN), Banco AV Villas (VLL.CN) and Banco de Occidente (BOC.CN). The central bank of Latin America's fourth-largest economy has raised its benchmark interest rate to 11% - its highest level in 21 years - in continued efforts to respond to rising inflation. Grupo Aval, controlled by business magnate Luis Carlos Sarmiento, said its consolidated portfolio grew 16.5% during the quarter compared to 3Q21. (1 dollar = 4,806.07 Colombian pesos at end-September)Reporting by Aida Pelaez Fernandez and Carolina Pulice, Writing by Kylie Madry; Editing by Brendan O'BoyleOur Standards: The Thomson Reuters Trust Principles.

☆ Wall Street drops as Powell signals Fed not close to done
▼ + stars: | 2022-11-02 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +3 min

Reuters GraphicsInvestors had been widely anticipating a 75-basis point rate hike, while hoping the Fed would signal a willingness to begin downsizing the rate hikes at its December meeting. However, comments from Fed Chair Jerome Powell that it was "very premature" to be thinking about pausing rate hikes sent stocks sharply lower. Wednesday's decline was the largest percentage drop for the S&P 500 since October 7. The private payrolls report came on the heels of data on Tuesday that showed a jump in U.S. monthly job openings, indicating labor demand remained strong. The S&P 500 posted 22 new 52-week highs and 20 new lows; the Nasdaq Composite recorded 108 new highs and 203 new lows.

☆ Britain to go it alone for now on reining in 'shadow banking'
▼ + stars: | 2022-11-02 | by ( Huw Jones | ) www.reuters.com time to read: +5 min

Britain hopes the LDI crisis creates momentum for comprehensive global reform to improve data and liquidity in the sector. In Britain the Financial Conduct Authority (FCA) regulates UK-based managers of LDI funds, and The Pensions Regulator (TPR) regulates pension schemes. UK regulators face pushing ahead alone, for now, hoping global reforms eventually pressure others to follow suit. Most LDI funds are listed in European Union states like Luxembourg and Ireland, meaning structural changes would rely on the bloc. The Central Bank of Ireland said it has stepped up data collection, analysis and engagement with LDI funds.

☆ Most Gulf central banks raise interest rates after Fed's move
▼ + stars: | 2022-11-02 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Hamad I MohammedDUBAI, Nov 2 (Reuters) - Most Gulf states said on Wednesday they would increase their key interest rates after the Federal Reserve raised its key policy rate by three-quarters of a percentage point for the fourth straight time. Saudi Arabia and the United Arab Emirates, the region's two largest economies, both increased rates by 75 basis points. The Saudi central bank, also known as SAMA, lifted its repo and reverse repo rates to 4.5% and 4%, respectively. Bahrain also raised its main rate by 75 basis points while Qatar increased rates by between 50 and 75 basis points. The impact of higher interest rates among Gulf oil exporters in 2022 has so far been limited.

☆ Oil is all that Putin has left, U.S. presidential advisor Amos Hochstein says
▼ + stars: | 2022-10-31 | by ( Anmar Frangoul | ) www.cnbc.com time to read: +1 min

Oil is all Russia's economy has left following its invasion of Ukraine earlier this year, according to Amos Hochstein, special presidential coordinator for President Joe Biden. "Oil is the only thing they have left in that economy … Putin has destroyed the rest of the economy," Hochstein told CNBC's Hadley Gamble Monday. "All he's got left is the stuff that comes out of the ground. He won't sell his gas to Europe anymore, so all he has is oil, so that's what funds this war." The Russian economy shrunk by 4% year-on-year over the second quarter, and the Central Bank of Russia expects the downturn to deepen in the quarters ahead.

☆ ECB raises deposit rate to 1.5%, highest since 2009
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: +2 min

FRANKFURT, Oct 27 (Reuters) - European Central Bank raised interest rates for the third meeting in a row on Thursday and signalled an intention to start mopping up cash from the banking system to fight record-high inflation. The central bank of the 19 countries that share the euro raised the interest rate it pays on bank deposits by 75 basis points, taking it to the highest level since 2009 at 1.5%. "The Governing Council took today’s decision, and expects to raise interest rates further, to ensure the timely return of inflation to...2%," the ECB said. Finally, the ECB changed the terms of its Longer-Term Refinancing Operations to encourage banks to repay those multi-year loans early. ECB President Christine Lagarde will explain the policy decisions in a news conference at 1245 GMT.

☆ Analysis: Decade of central bank largesse haunts taxpayers as losses loom
▼ + stars: | 2022-10-25 | by ( Francesco Canepa | ) www.reuters.com time to read: +6 min

Signage is seen outside the European Central Bank (ECB) building, in Frankfurt, Germany, July 21, 2022. The British government, which received 120 billion pounds in profits from the BoE since 2009, has already earmarked a transfer of 11 billion pounds for the central bank. It will contribute to losses of around 40 billion euros for euro zone central banks next year, according to Morgan Stanley. They have all warned of upcoming losses and the Dutch central bank openly said it risked needing a bailout, although finance minister Sigrid Kaag later cautioned this was "not yet on the table". By contrast, central banks with less cash and higher-yielding bonds in Italy, Spain and Greece were likely to fare better.

☆ Northwestern Mutual's chief strategist says the Fed could push the economy off a deflation cliff if it doesn't slow its pace — and shares 4 ways to hedge against declining earnings
▼ + stars: | 2022-10-21 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +6 min

Brent Schutte believes that the Fed risks pushing the US economy into a deflationary environment. He shared four asset classes to hedge against the earnings decline that many analysts anticipate. While stubbornly persistent inflation has been top of mind recently for most investors, lately Brent Schutte has been growing increasingly worried about the opposite case — deflation. "2014 to 2020, we all were worried about deflation; that's what everybody wanted to talk about. But once the economy has reached a downturn, Schutte thinks that inflation won't continue to persist.

☆ Putin called an additional 300,000 men into the military a month ago, and it's taking a toll on the economy
▼ + stars: | 2022-10-21 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Putin's mobilization of men for the Ukraine war could hit the economy, the Russian central bank said. More than 300,000 Russian men and their families have fled the country since the mobilization order. "The recovery of economic activity stalled in September," the research department of the Central Bank of Russia said in a report on Wednesday. Russia's central bank did not reference those escaping from the call-up, but said the mobilization has created new challenges for production processes and output maintenance. "September's events will not necessarily push Russia into an immediate recession, but challenges are mounting," Morning Consult analysts said.

LONDON — Her tenure as Britain’s prime minister began in the early days of fall, but it didn’t even last until winter. The plan was criticized not only by the opposing Labour Party, but also President Joe Biden and the International Monetary Fund. Chancellor of the Exchequer Kwasi Kwarteng and British Prime Minister Liz Truss attend the annual Conservative Party conference on Oct. 2. Truss told Parliament on Wednesday, “I am a fighter, not a quitter,” after repeatedly being told she was unfit for office by opposition lawmakers. Under an expedited process, leadership challengers must win the support of 100 fellow Conservative Party lawmakers (out of a total of 357) by Monday afternoon.

☆ British Prime Minister Liz Truss resigns after economic plan sparked turmoil
▼ + stars: | 2022-10-20 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Patrick-Smith-Circle-Byline-Template.Jpg | Patrick Smith | ) www.nbcnews.com time to read: +4 min

LONDON — British Prime Minister Liz Truss announced Thursday that she would resign after just six weeks in office, following a disastrous and rapidly reversed economic plan that sent the pound plunging and her government into chaos. Britain's Prime Minister Liz Truss delivers a speech outside No. She ended the brief statement by saying: "I will remain as prime minister until a successor is chosen." Liz Truss is now the shortest-serving prime minister in British history. Her personal approval rating fell to minus 70, according to pollsters at YouGov, making her the most unpopular party leader in British history.

The central bank's step underscores the dilemma Tokyo faces in trying to contain unwelcome yen falls, without resorting to interest rate hikes that could derail Japan's fragile recovery. Register now for FREE unlimited access to Reuters.com Register"Recent rapid and one-sided yen declines are undesirable. "We will continue to take appropriate steps against excess volatility, while watching currency market developments with a strong sense of urgency," he said. The government, which holds jurisdiction over currency policy, spent 2.8 trillion yen ($19 billion) in dollar-selling, yen-buying intervention last month when authorities acted in the markets to prop up the yen for the first time since 1998. The BOJ is widely expected to maintain its massive stimulus programme at its next two-day policy meeting ending Oct. 28.

☆ Fed's Harker sees 'lack of progress' on inflation, expects aggressive rate hikes ahead
▼ + stars: | 2022-10-20 | by ( Jeff Cox | ) www.cnbc.com time to read: +1 min

Philadelphia Federal Reserve President Patrick Harker on Thursday said higher interest rates have done little to keep inflation in check, so more increases will be needed. The latter comment was in reference to the fed funds rate, which currently is targeted in a range between 3%-3.75%. Markets widely expect the Fed to approve a fourth consecutive 0.75 percentage point interest rate hike in early November, followed by another in December. Harker indicated that those higher rates are likely to stay in place for an extended period. "Inflation will come down, but it will take some time to get to our target," Harker said.

☆ An often-overlooked economic measure is signaling serious trouble ahead
▼ + stars: | 2022-10-20 | by ( Jeff Cox | ) www.cnbc.com time to read: +5 min

However, Fed officials are stressing that they're far from finished when it comes to raising rates. "When this basket is signaling the weakness that it's showing, what the Fed typically does is not raise rates. But in this case, it's not only raising rates aggressively, but with a commitment to continue raising rates aggressively." In addition to the typical headline metrics such as the consumer price index and the Fed's preferred personal consumption expenditures price index, the Cleveland Fed's "sticky price" CPI rose 8.5% on an annualized basis in September, up from 7.7% in August. The measure looks at items such as rent, the price of food away from home and recreation costs.

☆ Will Liz Truss outlast a lettuce? British PM faces jokes after ditching tax cut plans
▼ + stars: | 2022-10-18 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Patrick-Smith-Circle-Byline-Template.Jpg | Patrick Smith | ) www.nbcnews.com time to read: +5 min

President Joe Biden even joined the criticism with a rare comment on an ally’s economic policies in which he called the tax cut plan a “mistake.”Truss admitted fault Monday night. “I do want to accept responsibility and say sorry for the mistakes that have been made,” she told BBC News. “Anyone could have seen that this wasn’t going to fly — how could they have not seen that coming?” Ford said. As critics had predicted, markets tanked and the pound fell to its lowest level against the dollar in 30 years. “It wasn’t just a total disaster with the markets, it was a total disaster electorally,” Ford said of Truss’ economic plan.

☆ U.K.'s new finance chief warns of 'difficult decisions ahead' amid political and market turmoil
▼ + stars: | 2022-10-15 | by ( Leila Sackur | ) www.nbcnews.com time to read: +5 min

LONDON — The U.K.'s new finance minister warned of “difficult decisions ahead” on Saturday, the morning after he had replaced his predecessor who was only 38 days into the job. Warning of “difficult decisions ahead” Hunt told British broadcaster Sky News: “Some taxes will not be cut as quickly as people would want, some taxes will go up.” (Sky News is owned by Comcast, the parent company of NBC News.) Kwarteng became the second shortest-serving chancellor of the exchequer, as the British finance minister is known. Britain's Prime Minister Liz Truss at a news conference on Friday. Truss is Britain’s third prime minister in six years.

☆ British PM Liz Truss axes finance minister, tax cuts that sent pound crashing
▼ + stars: | 2022-10-14 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Patrick-Smith-Circle-Byline-Template.Jpg | Patrick Smith | ) www.nbcnews.com time to read: +5 min

LONDON — Embattled British Prime Minister Liz Truss fired her finance minister and abandoned a flagship policy Friday, in a bid to save her job after her economic plan stoked weeks of market panic. Earlier, Truss removed Finance Minister Kwasi Kwarteng just 38 days after the pair took power. Kwarteng becomes the second shortest-serving chancellor of the exchequer, as the British finance minister is known. Truss' personal office confirmed the next finance minister will be Jeremy Hunt, a former health secretary and minister under successive Conservative governments. Crucially, the bank’s bond-buying program is set to end Friday, meaning the government must convince markets its economic plan is sound to avoid further chaos.

☆ Sri Lanka cabinet approves downgrade to 'low income country'
▼ + stars: | 2022-10-11 | by ( ) www.reuters.com time to read: +2 min

COLOMBO, Oct 11 (Reuters) - Sri Lanka's cabinet has approved a proposal to downgrade the island nation's economic status to "low income country", in order to get access to concessional funding from international organisations, the cabinet spokesman said on Tuesday. Sri Lanka's economy is in a deep slump, shrinking at an annual 8.4% in the June quarter in one of the steepest quarterly declines. Register now for FREE unlimited access to Reuters.com RegisterThe cabinet had decided to downgrade the island to "low income" on the World Bank list, said cabinet spokesman Bandula Gunawardane. "Given the serious financial crisis Sri Lanka is facing representatives of international organizations had informed us that if Sri Lanka was categorised as a low income country access to funding would be easier," Gunawardane said. The Central Bank of Sri Lanka, which held policy rates steady last week, is predicting an 8.7% gross domestic product contraction for 2022.

☆ Fed's Evans says fighting inflation is the top priority even if that means job losses
▼ + stars: | 2022-10-10 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Chicago Federal Reserve President Charles Evans said the central bank is holding fast in its commitment to bring down inflation even if it means people losing their jobs. "Price stability sets the stage for stronger growth in the future." "But price stability makes the future better." Evans said he sees some signs that inflation is letting up as supply chain pressures ease. Evans is a non-voter on the rate-setting Federal Open Market Committee and has said he is leaving his position early in 2023.

☆ Erdogan says Turkey will keep cutting interest rates, mocks British pound
▼ + stars: | 2022-09-29 | by ( Natasha Turak | ) www.cnbc.com time to read: +1 min

Turkish President Tayyip Erdogan addresses members of his ruling AK Party (AKP) during a meeting at the parliament in Ankara, Turkey May 18, 2022. MANDATORY CREDITTurkey will keep cutting interest rates, its President Recep Tayyip Erdogan said, despite soaring inflation at over 80%. Faced with deepening economic problems, Erdogan also took the time to throw some barbs at the U.K., saying that the British pound has "blown up." The currency has lost roughly 28% of its value against the dollar this year and 80% in the last 5 years as markets shunned Erdogan's unorthodox monetary policy of cutting interest rates despite high inflation. "Turkey has 80% inflation and I guess the worst performing currency over the past decade.

☆ U.S. interest rates may be rising, but that won't trigger another Asian Financial Crisis, analysts say
▼ + stars: | 2022-09-23 | by ( Su-Lin Tan | ) www.cnbc.com time to read: +5 min

watch nowThe world economy may be facing conditions seen during the 1997 Asian Financial Crisis — aggressive U.S. interest rate hikes and a strengthening U.S. dollar. The Thai baht and other Asian currencies collapsed, triggering the Asian Financial Crisis and leading to slumps in stock markets. Reducing currency disparity with the U.S. dollar reduces the risks of capital flights and foreign exchange rate collapses. Nevertheless, he, too, does not anticipate another Asian Financial Crisis. watch now"They largely let exchange rates absorb the external pressure, rather than supporting the currency by selling FX reserves."

☆ Gulf central banks raise rates after Fed's third big hike in a row
▼ + stars: | 2022-09-21 | by ( ) www.reuters.com time to read: +2 min

The Central Bank of Bahrain is seen in Manama, October 27, 2013. The Saudi Central Bank, also known as SAMA, lifted its repo and reverse repo rates by 75 bps to 3.75% and 3.25%, respectively. The UAE's central bank will from Thursday hike its base rate by three-quarters of a percentage point to 3.15%. Qatar's central bank will from Thursday increase its lending rate to 4.5%, deposit rate to 3.75% and repo rate to 4.0%. Bahrain raised its key policy interest rate on its one-week deposit facility to 4%.

Search resuls for: "The Central Bank of"

25 mentions found