Country risk: Indonesia’s in-built resilience makes it one to watch in 2020
Global trade frictions, domestic political challenges and environmental concerns should all be undermining Indonesia’s outlook. And to a certain extent that is the case, with the country downgraded this year in Euromoney’s country risk survey, if only slightly. Compared with...
SNB Maintains World’s Lowest Policy Rate
SNB left the policy rate unchanged at -0.75% in December. Again, the members reiterated the commitments to intervene in the currency in order to curb the appreciation of Swiss franc, which is described as “highly-valued”. They also affirmed to maintain...
Dollar Dives as Fed Might Not Hike Until after 2022, ECB and SNB Next
Dollar was sold off deeply overnight after Fed left interest rate unchanged. Most importantly, Fed chair Jerome Powell indicated that there is no need for any rate hike unless inflation materially surprises on the upside. Considering that Fed projects inflation...
Fed Set a Neutral Tone and Signaled that Rate will Stay Unchanged Throughout 2020
As widely anticipated, FOMC left the Fed funds rate unchanged at 1.5-1.75% in December. Trying to deliver a neutral tone, there were only few changes in the policy statement and the updated economic projections. The median dot plot shows that...
‘Bond King’ Gundlach says a recession is ‘very unlikely’ in 2020
DoubleLine Capital CEO and Wall Street “Bond King” Jeffrey Gundlach is not worried about a possible recession in 2020 even though he doesn’t think China and the U.S. will get a trade deal done anytime soon. “We’ve never had a...
Bank of America CEO Brian Moynihan says confident consumers are spending 5.5% more this year
Brian Moynihan, CEO, Bank of America Scott Mlyn | CNBC Bank of America CEO Brian Moynihan said Wednesday the lender’s customers spent about 5.5% more this year over 2018, a bullish sign for the U.S. economy. “People are spending, and...
The Fed is expected to hold rates steady and vow to keep short-term lending markets stable
Federal Reserve Board Chairman Jerome Powell holds a news conference on October 30, 2019 in Washington, DC. ERIC BARADAT | AFP | Getty Images The Federal Reserve is expected to conclude its December meeting on Wednesday afternoon by signaling it’s...
US consumer prices increase more than expected in November
U.S. consumer prices rose more than expected in November, which could further support the Federal Reserve’s intention not to cut interest rates again in the near term after reducing borrowing costs three times this year. The Labor Department said on...
Banks buoyant in surging Dominican Republic
The rapid growth of the Dominican Republic economy in recent years has led to strong credit growth, changing market dynamics, and is attracting new entrants. The IMF predicts a 5% increase in GDP this year, slightly down from 2018’s 7.0%,...
Look behind Germany’s surprise call for deposit insurance
Andrea Enria, chair of the supervisory board of the ECB, gave a speech in London at the end of October celebrating some of the successes of banking union – establishment of a single supervisory mechanism or large banks, NPLs brought...
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