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  • 2020-02-13 06:23


    By Luke Heighton

    FRANKFURT (MNI) - European policymakers should revisit the regulation and supervision of the non-banking financial sector, the governor of the Bank of Spain said on Thursday, saying that risks associated with non-bank intermediaries' financial activities are "gradually becoming more systemic."

    Here are other key points from the speech in Madrid, in which Pablo Hernandez de Cos said some segments of the non-bank financial sector exhibit "particularly high levels of vulnerabilities, similar to those witnessed before the crisis":

    -- After some stabilisation in Q3, latest euro area data shows that activity remains "subdued and fragile," de Cos said, with 0.1% GDP growth in Q4 and with French and Italian growth rates in negative territory.

  • 2020-02-12 20:28


    TOKYO (MNI) - Japan's corporate goods price index posted a third straight year-on-year increase in January, with the index accelerating to the highest level in 14 months, according to data released by the Bank of Japan on Thursday.

    - January's 1.7% y/y gain was up on a rise of 0.9% in December, 0.1% in November and -0.4% in October.

    - For the month, CGPI rose 0.2% , following a 0.1% m/m gain in December.

    - The export price index rose 0.3% m/m on a yen basis, quicker than the previous flat growth, marking the fifth consecutive monthly rise.

    - The import price index rose 0.7% m/m on a yen basis, down from the 0.9% m/m growth reported in December.

    --MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com
    --MNI Sydney Bureau; +61 405322399;

  • 2020-02-11 15:46


    By Jean Yung

    WASHINGTON (MNI) - With the U.S. economy in a "good position" and fears of coronavirus gutting global growth yet to materialize, Federal Reserve Bank of St. Louis President Jim Bullard told reporters Tuesday that U.S. interest rates are "steady as she goes."

    Futures markets are rightly pricing in "some tail risk" from the Chinese outbreak but the epidemic will likely subside within one to two months as in past episodes, he said.

    "Markets have what's called a peso problem, where they have to decide about the low probability of a high impact event, so I think that's skewing the forecast a little bit toward Fed easing," he said.

  • 2020-02-11 13:40


    --Soft Landing Still Reasonable Forecast for U.S. Economy in 2020

    WASHINGTON (MNI) - China's coronavirus outbreak adds to other risks threatening a soft landing for the U.S. economy this year, St. Louis Fed President Jim Bullard said Tuesday.

    "Experience with previous viral outbreaks suggests that the effects on U.S. interest rates can be tangible and last until the outbreak is clearly contained," he said, pointing to the effects on the 10-year Treasury yield of other viral outbreaks such as SARS, swine flu, avian flu and Ebola.

    In the case of swine flu, the 10-year yield fell nearly 60 bps about a month into the outbreak before rebounding.

  • 2020-02-11 12:18


    -BOE Carney Says Banks Stress Tested Against Economic Shock Way Greater Than Corona Virus

    LONDON (MNI) - Bank of England Governor Mark Carney said the UK economy had shown signs of improvement since the November election, but that the Bank could still provide more stimulus if it began to flag.

    The following are points from Carney's testimony to the House of Lords Economic Affairs Committee:

    -The MPC left Bank Rate on hold at its January meeting, with two members backing a 25-basis-point cut, and Carney said that the post general election data had shown signs of improvement.

    But, he said "there is some slack in the economy ...

  • 2020-02-11 12:04


    By David Robinson

    LONDON (MNI) - Bank of England Monetary Policy Committee member Jonathan Haskel said firms' increasing shift to intangible assets may be making it harder for them to supply collateral against loans, contributing to a lower equilibrium interest rate and supporting the case for monetary easing now to move away from the zero lower bound.

    The problems firms face in borrowing push up risks spreads, and make them more vulnerable to changes in financial conditions, Haskel said in a speech at the University of Nottingham on

    Haskel has recently voted for a 25 basis point rate cut, including at the January meeting.

    The "low interest rate environment we find ourselves in, reinforced by the trend towards intangible assets that I have discussed today, in part

  • 2020-02-11 05:00


    By Irene Prihoda and Les Commons

    LONDON (MNI) - The UK economy flatlined in Q4 following an upward revision to growth in Q3, leading to a modestly better than expected reading for annualised growth.

  • 2020-02-07 05:00


    By Evan Ryser

    WASHINGTON (MNI) - The U.S. Commerce Department's new rule to impose duties on products from countries that undervalue their currencies "almost assuredly" violates World Trade Organization subsidy obligations, Jeffrey Schott says in a new blog post published Friday by the Peterson Institute for International Economics.

    "Bluntly put, Commerce has manipulated the definition of currency manipulation for protectionist purposes," said Schott, a former Treasury official and member of the delegation who negotiated the GATT Subsidies Code.

    "[T]his regulatory change conflicts with current Treasury practice and almost assuredly violates World Trade Organization (WTO) subsidy obligations, which I helped write 40 years ago," he wrote.

    --NEW RULE

    The U.S.

  • 2020-02-07 00:55


    TOKYO (MNI) - The Bank of Japan's Consumption Activity Index posted a second straight m/m rise in December, up 0.3% on a seasonally adjusted basis following a 2.3% gain in November, data released Friday showed.

    The rise came after the downwardly revised gain in November November and a downwardly revised fall of 9.5% in October.

    The data showed private consumption continues to recover gradually after the post-tax hike drop in October but the spending lacked momentum.

    The BOJ's latest assessment is that "private consumption has been increasing moderately, albeit with fluctuations due to such effects as of the consumption tax hike, against the background of steady improvement in the employment and income situation."

    The index for the October-December period fell

  • 2020-02-05 21:22


    TOKYO (MNI) - Bank of Japan board member Takako Masai says the BOJ must watch the impact of the coronavirus on the global economy and the sentiment of firms and households in Japan.

    "If there is a greater possibility that the momentum (toward achieving the price stability target) will be lost, the BOJ should not hesitate to take additional easing measures," Masai told business leaders in Nara City on Thursday.

    She added, "The BOJ will persistently devise measures considered necessary at the time and continue to conduct monetary policy in an appropriate manner while carefully paying attention to both the positive effects and side effects of it policy."

    Masai did not elaborate, however, on when and how the BOJ would consider more easing measures.

    Masai is widely