China says its economic growth is improving, but analysts warn it still needs stimulus

China’s claim of stronger-than-expected economic growth in the first part of this year may be tempting policymakers to pare back stimulus. It said those sectors should be closely monitored for possible risks, suggesting worries about possible overheating. Mainland Chinese equity markets fell Monday on concerns stimulus could be reduced. But, Nomura cautioned, China’s growth recovery is “not solid yet” and growth could falter again. “We believe the pace of monetary easing will slow, but it is sti


China’s claim of stronger-than-expected economic growth in the first part of this year may be tempting policymakers to pare back stimulus. It said those sectors should be closely monitored for possible risks, suggesting worries about possible overheating. Mainland Chinese equity markets fell Monday on concerns stimulus could be reduced. But, Nomura cautioned, China’s growth recovery is “not solid yet” and growth could falter again. “We believe the pace of monetary easing will slow, but it is sti
China says its economic growth is improving, but analysts warn it still needs stimulus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: kelly olsen, getty images
Keywords: news, cnbc, companies, nomura, analysts, growth, possible, china, needs, warn, economy, improving, politburo, including, markets, stimulus, economic, monetary, easing


China says its economic growth is improving, but analysts warn it still needs stimulus

China’s claim of stronger-than-expected economic growth in the first part of this year may be tempting policymakers to pare back stimulus. Analysts say that would be a mistake.

The world’s second-largest economy expanded 6.4% in the first quarter from the same period in 2018, the government announced last week, slightly beating analyst predictions. An array of policies, including encouraging banks to make more loans, put in place last year as the economy took a hit from the U.S.-China trade war have been credited with helping boost activity.

But pronouncements since last week’s GDP figure, including after a meeting of the Communist Party’s powerful politburo, indicate that officials see the growth outlook improving, feeding speculation of a rethink in how much of a boost the economy may need.

A politburo statement issued Monday and reported by the official Xinhua news agency emphasized the economy’s strong start to the year but appeared to express concern about financial and real-estate markets. It said those sectors should be closely monitored for possible risks, suggesting worries about possible overheating.

Mainland Chinese equity markets fell Monday on concerns stimulus could be reduced.

“The slight change in tone is understandable due to the rapid build-up of debt and a potential irrational exuberance in stock markets and big cities’ property markets,” economists at Japanese investment bank Nomura said in a note Monday regarding the politburo statement.

Chinese stocks have been on a tear in 2019 after recording their worst performance in a decade in 2018. The benchmark Shanghai index is up about 29% so far in 2019 after losing almost 25% last year.

But, Nomura cautioned, China’s growth recovery is “not solid yet” and growth could falter again.

“We believe the pace of monetary easing will slow, but it is still too early to withdraw monetary easing measures despite the limited monetary policy scope,” they said.


Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: kelly olsen, getty images
Keywords: news, cnbc, companies, nomura, analysts, growth, possible, china, needs, warn, economy, improving, politburo, including, markets, stimulus, economic, monetary, easing


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Turkish central bank needs to be ‘fully independent,’ IMF’s Europe director says

Economic and political developments in Turkey have had investors worried for more than a year now. One of the country’s most immediate needs if it wants to get its house in order is to ensure total independence of its central bank, according to the man who led the bailouts of Greece, Portugal, Iceland and Ukraine during the Great Recession. “So we welcome the increase we’ve seen in interest rates in the last six to seven months, but it’s important that the Turkish central bank be allowed to be f


Economic and political developments in Turkey have had investors worried for more than a year now. One of the country’s most immediate needs if it wants to get its house in order is to ensure total independence of its central bank, according to the man who led the bailouts of Greece, Portugal, Iceland and Ukraine during the Great Recession. “So we welcome the increase we’ve seen in interest rates in the last six to seven months, but it’s important that the Turkish central bank be allowed to be f
Turkish central bank needs to be ‘fully independent,’ IMF’s Europe director says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-14  Authors: natasha turak, chris mcgrath, getty images
Keywords: news, cnbc, companies, fully, director, central, bank, europe, number, turkish, needs, independence, challenges, monetary, imfs, independent, policy


Turkish central bank needs to be 'fully independent,' IMF's Europe director says

Economic and political developments in Turkey have had investors worried for more than a year now.

One of the country’s most immediate needs if it wants to get its house in order is to ensure total independence of its central bank, according to the man who led the bailouts of Greece, Portugal, Iceland and Ukraine during the Great Recession.

“Turkey faces a number of challenges, and one of them is that the central bank needs to be fully independent so it can continuously assess and tighten policies as circumstances change in a forward-looking manner,” Poul Thomsen, director of the International Monetary Fund’s Europe department, told CNBC’s Joumanna Bercetche during the IMF Spring Meetings in Washington, D.C. over the weekend.

“So we welcome the increase we’ve seen in interest rates in the last six to seven months, but it’s important that the Turkish central bank be allowed to be fully independent in its assessment of monetary policy in addition to a number of other challenges on fiscal policy, and more transparency.”

Turkey’s economy is already in recession, rocked last year after fears over government interference into central bank independence, over-leveraged banks, a large current account deficit and a diplomatic spat with the U.S. triggered investor and capital flight. The lira lost 36 percent of its value against the dollar by the end of 2018.


Company: cnbc, Activity: cnbc, Date: 2019-04-14  Authors: natasha turak, chris mcgrath, getty images
Keywords: news, cnbc, companies, fully, director, central, bank, europe, number, turkish, needs, independence, challenges, monetary, imfs, independent, policy


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

UBS chairman: Europe is running out of economic policy options to boost growth

Both emerging markets and the U.S. appear poised to recover from last year’s economic stumbles, but problems persist for Europe, according to the head of global financial giant UBS. “We’re a bit skeptical about the ability of Europe to use stimulus to come out of this,” he said. In many European countries, including Italy and France, there’s very little room for governments to use fiscal policy to stimulate the economy, Weber said. Only Germany has room for additional fiscal measures, but Berlin


Both emerging markets and the U.S. appear poised to recover from last year’s economic stumbles, but problems persist for Europe, according to the head of global financial giant UBS. “We’re a bit skeptical about the ability of Europe to use stimulus to come out of this,” he said. In many European countries, including Italy and France, there’s very little room for governments to use fiscal policy to stimulate the economy, Weber said. Only Germany has room for additional fiscal measures, but Berlin
UBS chairman: Europe is running out of economic policy options to boost growth Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-12  Authors: saheli roy choudhury, angel navarrete, bloomberg, getty images
Keywords: news, cnbc, companies, economic, options, growth, weber, policy, europe, room, economy, running, monetary, lower, main, chairman, boost, fiscal, ubs


UBS chairman: Europe is running out of economic policy options to boost growth

Both emerging markets and the U.S. appear poised to recover from last year’s economic stumbles, but problems persist for Europe, according to the head of global financial giant UBS.

The continent is predicted to only achieve a slow rebound, Axel Weber, chairman of the Swiss investment bank, told CNBC’s Joumanna Bercetche in Washington D.C. on Thursday.

“We’re a bit skeptical about the ability of Europe to use stimulus to come out of this,” he said. “I think there is some downside risk in Europe and you have to acknowledge that. So, whilst I do have the main outlook to be a sort of L-shaped recovery, stabilization at a lower level, growth below potential, I don’t have the main scenario of a recession.”

The International Monetary Fund recently downgraded growth in the euro zone. It now expects the bloc to grow at 1.3 percent in 2019 — lower than its forecast had been six months ago.

In many European countries, including Italy and France, there’s very little room for governments to use fiscal policy to stimulate the economy, Weber said. That’s because their fiscal deficits are near the upper limit of the 3 percent of GDP that the European Central Bank allows. Only Germany has room for additional fiscal measures, but Berlin will only use it to boost the domestic economy, the UBS chief said.

On the monetary policy front, the ECB has pumped trillions of euros into the economy over the past few years to boost inflation and promote growth. Earlier this week, the ECB held interest rates steady.

“What you have to ask yourself is: After years of quantitative easing, is adding more of the same really going to have the same impact on the economy that it did have when they started this? My answer to that is, probably not,” Weber said.


Company: cnbc, Activity: cnbc, Date: 2019-04-12  Authors: saheli roy choudhury, angel navarrete, bloomberg, getty images
Keywords: news, cnbc, companies, economic, options, growth, weber, policy, europe, room, economy, running, monetary, lower, main, chairman, boost, fiscal, ubs


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Singapore central bank stands pat on monetary policy as growth slows

17 out of 20 economists in a Reuters poll predicted that the central bank would keep monetary policy unchanged. Across Asia, a slowing world economy and abrupt end to Federal Reserve policy tightening have seen markets betting on outright rate cuts or easier policy stance for a growing list of central banks. “GDP growth in the Singapore economy has eased, bringing the level of output closer to its underlying potential. The central bank also on Friday revised down its 2019 core inflation forecast


17 out of 20 economists in a Reuters poll predicted that the central bank would keep monetary policy unchanged. Across Asia, a slowing world economy and abrupt end to Federal Reserve policy tightening have seen markets betting on outright rate cuts or easier policy stance for a growing list of central banks. “GDP growth in the Singapore economy has eased, bringing the level of output closer to its underlying potential. The central bank also on Friday revised down its 2019 core inflation forecast
Singapore central bank stands pat on monetary policy as growth slows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-12
Keywords: news, cnbc, companies, bank, quarter, monetary, pat, stands, global, policy, central, tightening, growth, singapore, economy, slows


Singapore central bank stands pat on monetary policy as growth slows

Singapore’s central bank on Friday kept its monetary settings unchanged after two consecutive rounds of tightening, underscoring policymakers’ concerns about a cooling economy and rising risks to the outlook from slackening global demand.

The Monetary Authority of Singapore (MAS), which manages policy through exchange rate settings rather than interest rates, said it would maintain the slope of the Singapore dollar’s policy band while keeping the width and level at which the band is centered unchanged.

17 out of 20 economists in a Reuters poll predicted that the central bank would keep monetary policy unchanged.

Across Asia, a slowing world economy and abrupt end to Federal Reserve policy tightening have seen markets betting on outright rate cuts or easier policy stance for a growing list of central banks.

“GDP growth in the Singapore economy has eased, bringing the level of output closer to its underlying potential. Despite some pickup in labor costs, inflationary pressures are mild and should remain contained,” MAS said in its semi-annual statement.

MAS increased the slope of the policy band twice last year in efforts to control rising price pressures and strengthen its currency in its first such tightening moves in six years.

The central bank also on Friday revised down its 2019 core inflation forecast to 1 to 2 percent, from 1.5 to 2.5 percent previously.

Preliminary data for first-quarter gross domestic product (GDP) confirmed the city-state was experiencing its weakest growth in 2-1/2-years on a year-on-year basis.

From the year ago, GDP grew 1.3 percent in the first quarter, below the 1.5 percent expansion forecast in a Reuters poll.

GDP grew 2.0 percent in the January-March period from the previous three months on an annualized and seasonally adjusted basis, well above an expected 1.2 percent expansion.

Manufacturing, once a key pillar of growth for the city-state, showed a shock 12 percent fall in the first quarter from the quarter ago.

“We expected manufacturing to be down but the print is more severe than we thought,” Selena Ling, OCBC’s head of treasury research said.

The Singapore dollar was broadly unchanged after the decision.

Growth in the affluent city state has been dented over the past year by a Sino-U.S. trade dispute and slowing global demand.

“The uncertainty for the Singapore economy still remains the same, a two-pronged risk – U.S.-Sino trade relations and the maturing of the global electronics cycle,” said Barnabas Gan, Singapore economist at United Overseas Bank.


Company: cnbc, Activity: cnbc, Date: 2019-04-12
Keywords: news, cnbc, companies, bank, quarter, monetary, pat, stands, global, policy, central, tightening, growth, singapore, economy, slows


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Signs of a global economic recovery in the second half are emerging

Worries about the global economy percolate even as equities around the world rise, but an economist at Ned Davis Research says the worst of it may be over. Alejandra Grindal, senior international economist at the firm, said the aggregate of manufacturing purchasing managers’ indexes (PMIs) from across the globe stabilized in March after falling for 10 straight months. Meanwhile, the number of countries reporting expansion in the manufacturing sector rose for the first time in six months. “We mig


Worries about the global economy percolate even as equities around the world rise, but an economist at Ned Davis Research says the worst of it may be over. Alejandra Grindal, senior international economist at the firm, said the aggregate of manufacturing purchasing managers’ indexes (PMIs) from across the globe stabilized in March after falling for 10 straight months. Meanwhile, the number of countries reporting expansion in the manufacturing sector rose for the first time in six months. “We mig
Signs of a global economic recovery in the second half are emerging Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: fred imbert, str, afp, getty images
Keywords: news, cnbc, companies, global, emerging, economic, recovery, ned, months, expansion, half, monetary, international, grindal, second, economist, signs, manufacturing, research


Signs of a global economic recovery in the second half are emerging

Worries about the global economy percolate even as equities around the world rise, but an economist at Ned Davis Research says the worst of it may be over.

Alejandra Grindal, senior international economist at the firm, said the aggregate of manufacturing purchasing managers’ indexes (PMIs) from across the globe stabilized in March after falling for 10 straight months. Meanwhile, the number of countries reporting expansion in the manufacturing sector rose for the first time in six months. She noted these indicators usually bottom about four to eight months “before the next expansion begins.”

“We might be getting signs of a global economic recovery in the second half of the year,” Grindal said at the Ned Davis Research annual investment conference in Boston. “At least it’s sort of giving you some rays of light.”

Grindal’s comments follow the International Monetary Fund decreasing its 2019 growth outlook to 3.3%, which would be the lowest since the financial crisis, from 3.5%. In its report, the IMF highlighted risks such as the potential of increasing trade tensions as well as tighter monetary policy from the Federal Reserve.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: fred imbert, str, afp, getty images
Keywords: news, cnbc, companies, global, emerging, economic, recovery, ned, months, expansion, half, monetary, international, grindal, second, economist, signs, manufacturing, research


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Fed hits back over Trump claims that monetary ‘tightening’ is hurting the economy

“I personally think the Fed should drop rates,” the president told reporters Friday. In terms of quantitative tightening, it should actually now be quantitative easing.” However, Neely pushed back on the president’s ideas about the future policy path, writing that “quantitative tightening will probably not affect the economy in any noticeable way.” Neely cited four specific reasons why QT won’t bite as hard:Benefits to yields won’t reverse as QE had only repaired “temporarily illiquid markets.”


“I personally think the Fed should drop rates,” the president told reporters Friday. In terms of quantitative tightening, it should actually now be quantitative easing.” However, Neely pushed back on the president’s ideas about the future policy path, writing that “quantitative tightening will probably not affect the economy in any noticeable way.” Neely cited four specific reasons why QT won’t bite as hard:Benefits to yields won’t reverse as QE had only repaired “temporarily illiquid markets.”
Fed hits back over Trump claims that monetary ‘tightening’ is hurting the economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-08  Authors: jeff cox
Keywords: news, cnbc, companies, trump, yields, claims, significantly, hurting, think, rate, fed, hits, monetary, economy, quantitative, wont, tightening, rates, asset


Fed hits back over Trump claims that monetary 'tightening' is hurting the economy

Trump has been a frequent Fed critic as the central bank has raised rates and moved to undo the historically easy monetary policy in place for much of the past decade. He has blamed the central bank for the fourth-quarter stock market meltdown in 2018 and said growth would have been much faster without rate hikes, four of which came last year.

“I personally think the Fed should drop rates,” the president told reporters Friday. “I think they’ve really slowed us down. There’s no inflation. In terms of quantitative tightening, it should actually now be quantitative easing.”

However, Neely pushed back on the president’s ideas about the future policy path, writing that “quantitative tightening will probably not affect the economy in any noticeable way.”

“The pace of the recent decline in the Fed’s asset holdings — if such declines continue — would take at least five years to return to the pre-crisis trend,” Neely said. “Such gradual effects contrast with the large, discrete asset price changes that immediately followed the original asset purchase announcements and reflected almost the whole expected near-term change in fundamentals.”

Neely cited four specific reasons why QT won’t bite as hard:

Benefits to yields won’t reverse as QE had only repaired “temporarily illiquid markets.”

Because the Fed ended asset purchases in 2014 and started hiking rates in 2015, tightening already has been happening with little negative impact on either financial markets or the economy.

The Treasury has been issuing longer-dated bonds at lower yields, helping mitigate some of the damage by the Fed also shedding similar duration debt.

The Fed has reduced its holdings by such a small amount that it will take years to be felt by markets.

Neely notes the angst caused in markets by the tightening moves, but said the Fed’s actions are “unlikely to significantly impede economic activity.”

In addition to ending the bond portfolio rolloff, the Fed also pledged to take a “patient” approach to further rate hikes and indicated that no increases are likely in 2019 unless the data changes significantly.


Company: cnbc, Activity: cnbc, Date: 2019-04-08  Authors: jeff cox
Keywords: news, cnbc, companies, trump, yields, claims, significantly, hurting, think, rate, fed, hits, monetary, economy, quantitative, wont, tightening, rates, asset


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

A ‘Japanization’ of monetary policy in Europe might not be such a bad thing, Nomura’s Koo says

Europe is so worried about ‘Japanization,’ economist says 9 Hours Ago | 04:07European officials should not worry about following in the footsteps of the Bank of Japan (BOJ) when it comes to monetary policy, according to the chief economist of Nomura Research Institute. His comments come shortly after the European Central Bank (ECB) announced it would put off plans to “normalize” policy, fearing a sharp slowdown in economic growth over the coming months. The move has prompted concern among some m


Europe is so worried about ‘Japanization,’ economist says 9 Hours Ago | 04:07European officials should not worry about following in the footsteps of the Bank of Japan (BOJ) when it comes to monetary policy, according to the chief economist of Nomura Research Institute. His comments come shortly after the European Central Bank (ECB) announced it would put off plans to “normalize” policy, fearing a sharp slowdown in economic growth over the coming months. The move has prompted concern among some m
A ‘Japanization’ of monetary policy in Europe might not be such a bad thing, Nomura’s Koo says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-05  Authors: sam meredith, alex kraus, bloomberg via getty images
Keywords: news, cnbc, companies, nomuras, monetary, economist, japanization, worse, growth, europe, koo, bank, worried, policy, european, japan, bad, ecb, thing


A 'Japanization' of monetary policy in Europe might not be such a bad thing, Nomura's Koo says

Europe is so worried about ‘Japanization,’ economist says 9 Hours Ago | 04:07

European officials should not worry about following in the footsteps of the Bank of Japan (BOJ) when it comes to monetary policy, according to the chief economist of Nomura Research Institute.

His comments come shortly after the European Central Bank (ECB) announced it would put off plans to “normalize” policy, fearing a sharp slowdown in economic growth over the coming months.

Instead, the ECB said it would aim to provide banks with even more liquidity and delay a planned interest hike until 2020.

The move has prompted concern among some market participants, with Europe’s central bank potentially set to mirror steps taken by the BOJ.

Speaking to CNBC’s Steve Sedgwick at the Ambrosetti Workshop in Italy on Friday, Nomura’s Richard Koo said European policymakers were “so worried about ‘Japanization.'”

They fear they are going to have “very slow growth, deflation and things (will) just get worse and worse and worse,” Koo said, before adding: “Those of us sitting in Japan actually weren’t faring all that badly.”


Company: cnbc, Activity: cnbc, Date: 2019-04-05  Authors: sam meredith, alex kraus, bloomberg via getty images
Keywords: news, cnbc, companies, nomuras, monetary, economist, japanization, worse, growth, europe, koo, bank, worried, policy, european, japan, bad, ecb, thing


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

China should quickly get out of its huge US trade problem

The vigilant members of the China-based American and international chambers of commerce, and the World Trade Organization, will serve as keen observers that China is properly implementing and enforcing its trade regulations. Third, China can benefit from an enhanced International Monetary Fund surveillance, technically called Article IV consultations. Fourth, the IMF consultations and the OECD’s biannual examinations would provide unimpeachable expert opinions on China’s monetary policies and it


The vigilant members of the China-based American and international chambers of commerce, and the World Trade Organization, will serve as keen observers that China is properly implementing and enforcing its trade regulations. Third, China can benefit from an enhanced International Monetary Fund surveillance, technically called Article IV consultations. Fourth, the IMF consultations and the OECD’s biannual examinations would provide unimpeachable expert opinions on China’s monetary policies and it
China should quickly get out of its huge US trade problem Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: dr michael ivanovitch, visual china group, getty images
Keywords: news, cnbc, companies, quickly, china, trade, examinations, chinas, economic, monetary, americas, american, huge, international, problem, policies


China should quickly get out of its huge US trade problem

First, approach the issue with a sense of urgency it deserves. Promptly begin to diversify Chinese exports away from U.S. markets, and strongly step up purchases of American goods and services to quickly stop and markedly reverse the trend of China’s growing bilateral trade surpluses.

Second, with such a sincere show of good faith, Beijing should adopt regulatory changes offering internationally comparable guarantees for the protection of intellectual property and prohibition of forced technology transfers to Chinese joint-venture partners. China’s apparently large panoply of non-tariff barriers to trade should also be dismantled.

The vigilant members of the China-based American and international chambers of commerce, and the World Trade Organization, will serve as keen observers that China is properly implementing and enforcing its trade regulations.

Third, China can benefit from an enhanced International Monetary Fund surveillance, technically called Article IV consultations. That would make sure that China’s monetary, fiscal and structural economic policies — which include both domestic and foreign trade — are fully in compliance with international rules and best practice policies.

In addition to that, China may also wish to engage in extensive biannual economic examinations with the Organization of Economic Cooperation and Development to get an independent expert assessment of the entire spectrum of its economic policies. That’s what the OECD does well, and that could be a very useful source of unbiased advice. Such examinations would also shield China from widely publicized amateurish attacks on its economic management.

Fourth, the IMF consultations and the OECD’s biannual examinations would provide unimpeachable expert opinions on China’s monetary policies and its managed floating exchange rate. That would preserve China’s monetary sovereignty and offer much-needed advice about the country’s highly sensitive capital account transactions.

How China frames those steps within the ongoing trade negotiations with the United States is a matter of its own judgment.

But one thing should be clear: Dragging on the negotiating process while continuing to accumulate China’s huge surpluses on American trades is over. Washington has finally come to the point where it can no longer tolerate inconclusive talk fests while China laughs all the way to the bank.

To be sure, though, getting the trade surplus issue out of the way will not radically improve the U.S.-China relations. That’s impossible as long as America’s security experts consider China a “strategic competitor” and “a revisionist power” determined to challenge America’s world order.

One could expect, however, that a meaningful progress on bilateral trade problems could open more space to address acute security issues in a constructive manner, although, again, there is no guarantee for such an outcome. China’s contested maritime borders, Korean problems and Beijing’s Belt and Road transactions will remain America’s war and peace issues for the foreseeable future.


Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: dr michael ivanovitch, visual china group, getty images
Keywords: news, cnbc, companies, quickly, china, trade, examinations, chinas, economic, monetary, americas, american, huge, international, problem, policies


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Dramatic monetary policy reversals shouldn’t spark jitters: Invesco

Central banks dramatically reversing their stances shouldn’t create so much unease: Invesco 6:01 PM ET Thu, 7 March 2019 | 02:06Invesco’s Kristina Hooper believes Wall Street’s preoccupation with the global growth slowdown is misguided. According to Hooper, significant shifts in central banks’ monetary policies are fanning those fears instead of giving the market confidence. “Now that we have the European Central Bank piling on, that raises questions about what’s going on. What are central banks


Central banks dramatically reversing their stances shouldn’t create so much unease: Invesco 6:01 PM ET Thu, 7 March 2019 | 02:06Invesco’s Kristina Hooper believes Wall Street’s preoccupation with the global growth slowdown is misguided. According to Hooper, significant shifts in central banks’ monetary policies are fanning those fears instead of giving the market confidence. “Now that we have the European Central Bank piling on, that raises questions about what’s going on. What are central banks
Dramatic monetary policy reversals shouldn’t spark jitters: Invesco Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-10  Authors: stephanie landsman, spencer platt, getty images, daniel acker, bloomberg, sean brophy, eyeem, david a grogan
Keywords: news, cnbc, companies, hooper, shouldnt, banks, central, reversals, dramatic, policy, thats, invesco, streets, jitters, slowdown, policies, bank, spark, questions, growth, monetary


Dramatic monetary policy reversals shouldn't spark jitters: Invesco

Central banks dramatically reversing their stances shouldn’t create so much unease: Invesco 6:01 PM ET Thu, 7 March 2019 | 02:06

Invesco’s Kristina Hooper believes Wall Street’s preoccupation with the global growth slowdown is misguided.

But she understands why there’s worry.

According to Hooper, significant shifts in central banks’ monetary policies are fanning those fears instead of giving the market confidence. She suggests it’s creating more questions than answers — and that’s a problem.

“I don’t think the slowdown is going to be that bad as we sit here today, and certainly that’s not what we got from the ECB [European Central Bank] in terms of their downgrade of growth forecasts,” the firm’s chief global market strategist said Thursday on CNBC’s “Futures Now.” “We’re not seeing any kind of major turmoil at this point.”

The latest shift came last week when the ECB slashed its growth forecasts and issued a warning about the “threat of protectionism.”

“Don’t forget that just a few months ago we heard from Jay Powell saying that balance sheet normalization would remain on autopilot. He changed rather dramatically,” said Hooper. “Now that we have the European Central Bank piling on, that raises questions about what’s going on. What are central banks worried about that is causing them to make rather dramatic pivots?”

Despite the Street’s negative reaction to the latest ECB’s growth comments, Hooper isn’t alarmed.

“Investors that have a long-term time horizon should use this as an opportunity,” she said.

She sees emerging markets catching a bid from more accommodative central bank policies. Hooper particularly likes emerging markets in Asia and China is a big piece of that despite the U.S. trade tensions.

“China is employing a lot of stimulus both monetary and fiscal,” said Hooper. “We could actually see signs of some improvement in economic data in China.”


Company: cnbc, Activity: cnbc, Date: 2019-03-10  Authors: stephanie landsman, spencer platt, getty images, daniel acker, bloomberg, sean brophy, eyeem, david a grogan
Keywords: news, cnbc, companies, hooper, shouldnt, banks, central, reversals, dramatic, policy, thats, invesco, streets, jitters, slowdown, policies, bank, spark, questions, growth, monetary


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Germany’s top central banker warns against bringing back stimulus in Europe

The European Central Bank (ECB) shouldn’t rush into implementing massive bond-purchase programs in the future, the head of the German central bank warned in an interview with CNBC Wednesday. The 19-country region launched a quantitative easing package — a massive stimulus program — back in 2015 to prop up the moribund economy following the sovereign debt crisis. The active bond-buying ended in December last year, but throughout its existence there was running opposition, saying it was dragging o


The European Central Bank (ECB) shouldn’t rush into implementing massive bond-purchase programs in the future, the head of the German central bank warned in an interview with CNBC Wednesday. The 19-country region launched a quantitative easing package — a massive stimulus program — back in 2015 to prop up the moribund economy following the sovereign debt crisis. The active bond-buying ended in December last year, but throughout its existence there was running opposition, saying it was dragging o
Germany’s top central banker warns against bringing back stimulus in Europe Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-27  Authors: silvia amaro, ints kalnins
Keywords: news, cnbc, companies, wednesdaythe, europe, banker, bringing, debt, massive, weidmann, central, stimulus, fiscal, germanys, bank, warns, wednesdayespecially, sovereign, monetary


Germany's top central banker warns against bringing back stimulus in Europe

The European Central Bank (ECB) shouldn’t rush into implementing massive bond-purchase programs in the future, the head of the German central bank warned in an interview with CNBC Wednesday.

The 19-country region launched a quantitative easing package — a massive stimulus program — back in 2015 to prop up the moribund economy following the sovereign debt crisis. The active bond-buying ended in December last year, but throughout its existence there was running opposition, saying it was dragging on for too long.

“I have always argued that for me, the purchase of sovereign debt is a very special instrument,” Jens Weidmann, the president of the Bundesbank, told CNBC’s Julianna Tatelbaum Wednesday.

“Especially in the context of a monetary union, where you have one monetary policy but 19 independent fiscal policies and, the danger of communitizing fiscal debt is very different from that of the U.S. or Japan,” he added.


Company: cnbc, Activity: cnbc, Date: 2019-02-27  Authors: silvia amaro, ints kalnins
Keywords: news, cnbc, companies, wednesdaythe, europe, banker, bringing, debt, massive, weidmann, central, stimulus, fiscal, germanys, bank, warns, wednesdayespecially, sovereign, monetary


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post