UK economy risks a slowdown if Brexit confusion continues, RBS boss warns

Howard Davies, chairman of British bank RBS, told CNBC on Tuesday that the U.K. risks a slowdown to its economy if uncertainty over Brexit continues. Davies added that the bank is seeing a slowdown in the pipeline of loan applications for investment as businesses wait on the outcome of Brexit. “If you have a choice to invest or not invest in present circumstances, I think sitting on your hands looks like a prudent strategy.” But he cautioned, the chances had risen that U.K. leader Theresa May’s


Howard Davies, chairman of British bank RBS, told CNBC on Tuesday that the U.K. risks a slowdown to its economy if uncertainty over Brexit continues. Davies added that the bank is seeing a slowdown in the pipeline of loan applications for investment as businesses wait on the outcome of Brexit. “If you have a choice to invest or not invest in present circumstances, I think sitting on your hands looks like a prudent strategy.” But he cautioned, the chances had risen that U.K. leader Theresa May’s
UK economy risks a slowdown if Brexit confusion continues, RBS boss warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: david reid, silvia amaro
Keywords: news, cnbc, companies, slowdown, theresa, economy, bank, told, rbs, risks, warns, boss, uncertainty, continues, say, confusion, brexit, uk, think, union


UK economy risks a slowdown if Brexit confusion continues, RBS boss warns

Howard Davies, chairman of British bank RBS, told CNBC on Tuesday that the U.K. risks a slowdown to its economy if uncertainty over Brexit continues.

In October, the Royal Bank of Scotland said it had set aside, as an impairment provision, 100 million pounds ($128 million), in order to account for economic uncertainties – Brexit being the biggest concern for the British lender.

“If we get continued political uncertainty for some period, which is now quite possible, then I think we may see a weakening in the U.K. economy,” he told CNBC’s Joumanna Bercetche at the UBS European Conference.

Davies added that the bank is seeing a slowdown in the pipeline of loan applications for investment as businesses wait on the outcome of Brexit. “If you have a choice to invest or not invest in present circumstances, I think sitting on your hands looks like a prudent strategy.”

Davies said the probability of a “no-deal” Brexit, where Britain crashes out of the European Union with no trade agreement in place, had not increased in his view.

But he cautioned, the chances had risen that U.K. leader Theresa May’s proposal, known as the “Chequers plan,” would likely fail the test of fellow lawmakers. The RBS chairman said a prepackaged deal was starting to look like an option.

“Some kind of continued customs union but nothing special for the U.K., or as people are taling about a potential Norway option,” he said.

Davies said Theresa May was sticking fast to her plan as she was likely receiving a lot of advice to say that a no deal Brexit “really could be a mess.”

“I’d be very surprised any prime minister, however ‘Brexit-enthusiastic’ they may be, faced with that advice would say well you know what you can say that, but I’m just going to go for it.”


Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: david reid, silvia amaro
Keywords: news, cnbc, companies, slowdown, theresa, economy, bank, told, rbs, risks, warns, boss, uncertainty, continues, say, confusion, brexit, uk, think, union


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Asia markets retrace some losses; oil prices closely watched after OPEC warns on output

Asia markets retraced some of their early losses Monday morning but investors remained wary about global risks that include a trade fight between the U.S. and China, growth outlook, as well as oil prices. Oil prices will also be closely watched on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies warned about surging oil output that is set to leave the crude market oversupplied in 2019. That announcement came as rising supply and a weaker outlook for demand


Asia markets retraced some of their early losses Monday morning but investors remained wary about global risks that include a trade fight between the U.S. and China, growth outlook, as well as oil prices. Oil prices will also be closely watched on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies warned about surging oil output that is set to leave the crude market oversupplied in 2019. That announcement came as rising supply and a weaker outlook for demand
Asia markets retrace some losses; oil prices closely watched after OPEC warns on output Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, opec, closely, retrace, market, shares, warns, output, markets, trade, traded, dollar, losses, watched, index, oil, prices


Asia markets retrace some losses; oil prices closely watched after OPEC warns on output

Asia markets retraced some of their early losses Monday morning but investors remained wary about global risks that include a trade fight between the U.S. and China, growth outlook, as well as oil prices.

Japan’s Nikkei 225 erased early losses of more than 0.7 percent to trade fractionally higher while the Topix index was near flat. In South Korea, the Kospi retraced losses of more than 0.6 percent to trade down 0.1 percent.

Markets in Greater China were mostly positive in early trade. Taiwan’s Taiex index was up 0.35 percent while Hong Kong’s Hang Seng Index added 0.14 percent. Major indexes in the mainland markets traded mostly flat: The Shanghai Composite at around 2,600 while the Shenzhen composite added nearly 0.2 percent.

In Australia, the ASX 200 erased earlier losses to trade marginally higher around 5,923. The heavily-weighted financial subindex fell 0.66 percent as shares of some major banks tumbled: ANZ shares were down 3.74 percent and the National Australia Bank declined 0.24 percent. Westpac shares were up 0.13 percent and Commowealth Bank rose 0.58 percent.

Oil prices will also be closely watched on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies warned about surging oil output that is set to leave the crude market oversupplied in 2019.

A committee of several OPEC members and other crude exporters said that a larger group of roughly two dozen nations may have to launch a fresh round of output cuts in order to keep the oil market balanced. That announcement came as rising supply and a weaker outlook for demand have contributed to a sharp pullback in oil prices.

“The fairly quick downward correction in oil prices has finally stirred OPEC members to broach the topic of more output cuts over the weekend,” Wei Liang Chang, a foreign-exchange strategist at Mizuho Bank, wrote in a morning note. “Even so, the correction in oil prices appears partly due to a pullback in global equities, and output management risks exaggerating price moves when market sentiment reverses.”

U.S. crude traded up 0.8 percent at $60.67 a barrel while global benchmark Brent was up 0.95 percent at $70.85.

In the currency market, the dollar index, which measures the U.S. dollar against a basket of its peer, traded at 96.984, up from levels below 96.000 in the previous week.

Analysts said that the dollar “reasserted itself” as sentiment fell in the stock market last Friday.

The Japanese yen traded at 113.95 to the dollar while the Australian dollar traded at $0.7229.

— CNBC’s Tom DiChristopher contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, opec, closely, retrace, market, shares, warns, output, markets, trade, traded, dollar, losses, watched, index, oil, prices


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Big Oil sees ‘huge potential’ in LNG — but warns it is still too expensive for consumers

The liquefied natural gas (LNG) market has massive potential, leading energy executives said Monday, but warned the commodity is still too expensive for many consumers around the world. Oil giants and energy companies are increasingly interested in LNG — a form of natural gas chilled to liquid form — as governments around the world mandate using cleaner fuel than coal. It comes at a time when the race is on for LNG producers to build export terminals amid soaring demand for the commodity. Speaki


The liquefied natural gas (LNG) market has massive potential, leading energy executives said Monday, but warned the commodity is still too expensive for many consumers around the world. Oil giants and energy companies are increasingly interested in LNG — a form of natural gas chilled to liquid form — as governments around the world mandate using cleaner fuel than coal. It comes at a time when the race is on for LNG producers to build export terminals amid soaring demand for the commodity. Speaki
Big Oil sees ‘huge potential’ in LNG — but warns it is still too expensive for consumers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: sam meredith
Keywords: news, cnbc, companies, consumers, warns, big, natural, warned, expensive, potential, lng, energy, worldoil, world, form, huge, sees, gas, oil


Big Oil sees 'huge potential' in LNG — but warns it is still too expensive for consumers

The liquefied natural gas (LNG) market has massive potential, leading energy executives said Monday, but warned the commodity is still too expensive for many consumers around the world.

Oil giants and energy companies are increasingly interested in LNG — a form of natural gas chilled to liquid form — as governments around the world mandate using cleaner fuel than coal.

It comes at a time when the race is on for LNG producers to build export terminals amid soaring demand for the commodity.

Speaking at an industry event at the ADIPEC oil summit in Abu Dhabi, Claudio Descalzi, CEO of Italian oil and gas giant Eni, said: “LNG has huge potential.”

“But one of the problems with it, one of its fragile points, is the price. It is very expensive.”


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: sam meredith
Keywords: news, cnbc, companies, consumers, warns, big, natural, warned, expensive, potential, lng, energy, worldoil, world, form, huge, sees, gas, oil


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Trump warns OPEC against cutting oil production: ‘Prices should be much lower based on supply’

“Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!” Trump’s latest broadside comes on the heels of a sharp pullback in oil prices that has seen U.S. crude plunge into a bear market and post its longest losing streak on record. The sudden drop in oil prices from four-year highs just last month has forced OPEC and a group of crude exporters including Russia to rethink how they are managing the market. On Sunday, a committee repres


“Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!” Trump’s latest broadside comes on the heels of a sharp pullback in oil prices that has seen U.S. crude plunge into a bear market and post its longest losing streak on record. The sudden drop in oil prices from four-year highs just last month has forced OPEC and a group of crude exporters including Russia to rethink how they are managing the market. On Sunday, a committee repres
Trump warns OPEC against cutting oil production: ‘Prices should be much lower based on supply’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: tom dichristopher, essam al-sudani
Keywords: news, cnbc, companies, opec, cutting, oil, group, lower, crude, tweeted, production, warns, prices, saudi, supply, president, based, trump


Trump warns OPEC against cutting oil production: 'Prices should be much lower based on supply'

President Donald Trump on Monday tweeted that he hopes OPEC does not cut oil output, the same day Saudi Arabia’s energy minister said the cartel and its allies may need to throttle back production by about 1 million barrels per day.

“Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!” he wrote on Twitter.

The tweet marks Trump’s latest attempt to influence OPEC policy on Twitter. The president has tweeted at the 15-nation producer group several times this year, blaming it for rising oil prices and ordering its members to take steps to tamp down the cost of crude.

Trump’s latest broadside comes on the heels of a sharp pullback in oil prices that has seen U.S. crude plunge into a bear market and post its longest losing streak on record. Prices tumbled over the last five weeks as global equity markets sold off, crude supplies rose and the outlook for growth in oil demand weakened.

The sudden drop in oil prices from four-year highs just last month has forced OPEC and a group of crude exporters including Russia to rethink how they are managing the market.

On Sunday, a committee representing the group said oil supply is growing faster than demand, suggesting the alliance may have to launch a fresh round of production cuts. The same day, Saudi Energy Minister Khalid al Falih said the kingdom’s oil shipments would fall by 500,000 bpd in December.

On Monday, Falih told an oil conference in Abu Dhabi that technical analysis suggests “there will need to be a reduction of supply from October levels approaching a million barrels” from the alliance.


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: tom dichristopher, essam al-sudani
Keywords: news, cnbc, companies, opec, cutting, oil, group, lower, crude, tweeted, production, warns, prices, saudi, supply, president, based, trump


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Russia warns OPEC against ‘hasty’ policy changes, says oil market volatility could be here to stay

OPEC and non-OPEC exporters must stick to a consistent message if they are to avoid exacerbating wild swings in the oil market, Russian Energy Minister Alexander Novak said Sunday. And what’s more this volatility could remain,” Novak told CNBC’s Steve Sedgwick, according to a translation. The group said Sunday it would “continue closely monitoring” oil market conditions, before adding that “new strategies” could be implemented to balance the market in 2019. The next full OPEC meeting, when any p


OPEC and non-OPEC exporters must stick to a consistent message if they are to avoid exacerbating wild swings in the oil market, Russian Energy Minister Alexander Novak said Sunday. And what’s more this volatility could remain,” Novak told CNBC’s Steve Sedgwick, according to a translation. The group said Sunday it would “continue closely monitoring” oil market conditions, before adding that “new strategies” could be implemented to balance the market in 2019. The next full OPEC meeting, when any p
Russia warns OPEC against ‘hasty’ policy changes, says oil market volatility could be here to stay Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-11  Authors: sam meredith, omar marques, anadolu agency, getty images
Keywords: news, cnbc, companies, volatility, meeting, novak, hasty, warns, pumping, producers, policy, changes, nonopec, russia, market, output, stay, oil, opec


Russia warns OPEC against 'hasty' policy changes, says oil market volatility could be here to stay

OPEC and non-OPEC exporters must stick to a consistent message if they are to avoid exacerbating wild swings in the oil market, Russian Energy Minister Alexander Novak said Sunday.

“There is a lot of volatility in the market. And what’s more this volatility could remain,” Novak told CNBC’s Steve Sedgwick, according to a translation.

“Therefore, right now we shouldn’t be making any hasty decisions. We need to look at the situation very carefully to see how it will develop so that we don’t end up changing our course by 180 degrees every month.”

His comments come shortly after top exporters at the Joint Ministerial Monitoring Committee (JMMC) meeting in Abu Dhabi said they would not shy away from another round of production cuts.

This appeared to an abrupt turnabout from OPEC’s September meeting, when some of the world’s leading oil producers were talking about pumping extra oil onto the market in order to help soothe intensifying supply shock fears.

The group said Sunday it would “continue closely monitoring” oil market conditions, before adding that “new strategies” could be implemented to balance the market in 2019.

Saudi Arabia’s Energy Minister Khalid al-Falih said Sunday that the OPEC and non-OPEC alliance would collectively decide whether reducing global output would be necessary over the coming weeks.

The next full OPEC meeting, when any policy decision will be voted on, is scheduled to take place in Vienna, Austria on December 6.

About two dozen exporting nations began capping their output in 2017 in a bid to drain a global crude glut. The group agreed in June to restore some of that output, and producers with spare capacity have been pumping more oil since then.


Company: cnbc, Activity: cnbc, Date: 2018-11-11  Authors: sam meredith, omar marques, anadolu agency, getty images
Keywords: news, cnbc, companies, volatility, meeting, novak, hasty, warns, pumping, producers, policy, changes, nonopec, russia, market, output, stay, oil, opec


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New Zealand central bank shifts to neutral tone and warns of growth risks

New Zealand’s central bank struck a neutral tone as it marked two full years of steady policy on Thursday, saying its next move would depend on how the economy fared and cautioned of downside risks to growth from global trade frictions. As widely expected, the Reserve Bank of New Zealand kept the official cash rate (OCR) at 1.75 percent, where it has remained since late 2016, and reiterated it expected to hold rates into 2020. The central bank removed a line from its previous statements that its


New Zealand’s central bank struck a neutral tone as it marked two full years of steady policy on Thursday, saying its next move would depend on how the economy fared and cautioned of downside risks to growth from global trade frictions. As widely expected, the Reserve Bank of New Zealand kept the official cash rate (OCR) at 1.75 percent, where it has remained since late 2016, and reiterated it expected to hold rates into 2020. The central bank removed a line from its previous statements that its
New Zealand central bank shifts to neutral tone and warns of growth risks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: mark coote, bloomberg, getty images
Keywords: news, cnbc, companies, global, zealand, economic, tone, risks, neutral, growth, central, bank, ocr, cut, shifts, warns, trade, rate, inflation


New Zealand central bank shifts to neutral tone and warns of growth risks

New Zealand’s central bank struck a neutral tone as it marked two full years of steady policy on Thursday, saying its next move would depend on how the economy fared and cautioned of downside risks to growth from global trade frictions.

The New Zealand dollar rallied briefly and bonds sold off as the markets priced out any chance of a near term rate cut and instead focused on when New Zealand would join some of its global counterparts in raising rates.

As widely expected, the Reserve Bank of New Zealand kept the official cash rate (OCR) at 1.75 percent, where it has remained since late 2016, and reiterated it expected to hold rates into 2020.

“The timing and direction of any future OCR move remains data dependent,” Governor Adrian Orr said in a statement, and in a press conference later in the day he refused to rule out a rate cut if economic conditions deteriorated.

The central bank removed a line from its previous statements that its next rate move could be either up or down, but noted both upside and downside risks remained to growth and inflation projections.

“We don’t agree that the RBNZ needs to maintain the fence-sitting dual approach to policy,” said Citibank economist Paul Brennan.

“While our own forecasts show a near-term moderation in GDP growth, we expect CPI inflation to exceed the RBNZ’s latest forecasts and maintain the view that the OCR will need to rise from Q3 next year.”

A run of stellar economic data including a surprise drop in third-quarter jobless rate to 10-year lows, better-than-expected growth and inflation numbers over recent months, has given the RBNZ some breathing room.

However, Orr pointed to temporary factors for the pick-up in second-quarter economic growth and cautioned of headwinds to growth.

“Weak business sentiment could weigh on growth for longer. Trade tensions remain in some major economies, raising the risk that trade barriers increase and undermine global growth.”

The New Zealand dollar hit a fresh three-month high of $0.6820 immediately after the rate decision but quickly retreated from those levels to last hover around $0.6785.

Government bonds were sold off for a second straight day as investors priced out the risk of a cut with yields on the long-end of the curve up about 5 basis points.


Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: mark coote, bloomberg, getty images
Keywords: news, cnbc, companies, global, zealand, economic, tone, risks, neutral, growth, central, bank, ocr, cut, shifts, warns, trade, rate, inflation


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Italy has no future outside of the euro zone, top EU official warns

As the standoff between Rome and Brussels continues, the EU has said loud and clear that there is “no future” for Italy outside the euro zone. The European Commission — the legislation arm of the EU — and Italy have been arguing over Rome’s financial plans for 2019, after the new anti-establishment government in the country decided to increase public spending in the coming years. In its plans for 2019, Rome said that it will increase the public deficit to 2.4 percent of GDP (gross domestic produ


As the standoff between Rome and Brussels continues, the EU has said loud and clear that there is “no future” for Italy outside the euro zone. The European Commission — the legislation arm of the EU — and Italy have been arguing over Rome’s financial plans for 2019, after the new anti-establishment government in the country decided to increase public spending in the coming years. In its plans for 2019, Rome said that it will increase the public deficit to 2.4 percent of GDP (gross domestic produ
Italy has no future outside of the euro zone, top EU official warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: silvia amaro, elisabetta a villa, getty images
Keywords: news, cnbc, companies, italys, public, future, zone, euro, eu, warns, italy, deficit, official, 2019, commission, plans, european, rome, outside, increase


Italy has no future outside of the euro zone, top EU official warns

As the standoff between Rome and Brussels continues, the EU has said loud and clear that there is “no future” for Italy outside the euro zone.

The European Commission — the legislation arm of the EU — and Italy have been arguing over Rome’s financial plans for 2019, after the new anti-establishment government in the country decided to increase public spending in the coming years.

In its plans for 2019, Rome said that it will increase the public deficit to 2.4 percent of GDP (gross domestic product) — three times higher than what the previous government had promised. However, taking into account all the new policies that Rome wants to put forward, the European Commission said Thursday that Italy’s 2019 deficit will in fact be 2.9 percent — close to the EU’s threshold of 3 percent.

The European Commission said previously that it’s not only worried about Italy’s headline deficit, but mostly with its structural deficit (which excludes the state of the economy). A deviation from the European fiscal rules could put Italy’s finances under closer scrutiny by Brussels and they could even be put under certain restrictions. The latter could be the so-called excessive deficit procedure (EDP), which aims to help countries correct their finances.

In 2020, the government deficit is projected to reach 3.1 percent of GDP, the Commission said, warning that risks related to market reactions could potentially worsen that forecast.


Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: silvia amaro, elisabetta a villa, getty images
Keywords: news, cnbc, companies, italys, public, future, zone, euro, eu, warns, italy, deficit, official, 2019, commission, plans, european, rome, outside, increase


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Professor Jeremy Siegel warns the stock market may not see its typical post-midterm surge next year

A split between House and Senate isn’t the worse thing, says Jeremy Siegel 3 Hours Ago | 02:46The stock market may not get the post-midterm surge over the next 12 months that usually happens, Wharton School finance professor Jeremy Siegel warned on Tuesday. Siegel blames worries about the Federal Reserve’s path higher for interest rates and the possibility of Democrats taking control of the House in Tuesday’s voting. Democrats are expected to win the House, while Republicans are expected to keep


A split between House and Senate isn’t the worse thing, says Jeremy Siegel 3 Hours Ago | 02:46The stock market may not get the post-midterm surge over the next 12 months that usually happens, Wharton School finance professor Jeremy Siegel warned on Tuesday. Siegel blames worries about the Federal Reserve’s path higher for interest rates and the possibility of Democrats taking control of the House in Tuesday’s voting. Democrats are expected to win the House, while Republicans are expected to keep
Professor Jeremy Siegel warns the stock market may not see its typical post-midterm surge next year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-06  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, house, siegel, sp, stock, jeremy, warns, months, professor, usually, market, typical, postmidterm, past, surge, investors


Professor Jeremy Siegel warns the stock market may not see its typical post-midterm surge next year

A split between House and Senate isn’t the worse thing, says Jeremy Siegel 3 Hours Ago | 02:46

The stock market may not get the post-midterm surge over the next 12 months that usually happens, Wharton School finance professor Jeremy Siegel warned on Tuesday.

“There’s a lot more uncertainties that will make next year not … a stellar year we usually get in third-year presidential cycles,” Siegel, a longtime stock bull, said in a “Squawk on the Street” interview.

Siegel blames worries about the Federal Reserve’s path higher for interest rates and the possibility of Democrats taking control of the House in Tuesday’s voting.

Democrats are expected to win the House, while Republicans are expected to keep their slim majority in the Senate.

Stocks have already reaped the benefits of President Donald Trump’s business-friendly deregulation and tax cuts, said Siegel, though he did admit that the market has historically done well under a divided government.

On average, the S&P 500 has been up 16.7 percent in the 12 months after midterm elections, going back to World War II, according to CFRA. (Of course, past performance is not indicative of future results.)

Stocks were higher Tuesday as investors awaited the results of the much-anticipated election.

The Dow Jones Industrial Average and the S&P 500 on Monday logged their fourth positive sessions out of the past five, with the Dow closing at its highest level in nearly three weeks.

Last month, Siegel urged investors to be somewhat cautious, saying numerous headwinds, including the midterms, will keep stock prices muted for 2019.

However, at the time, Siegel said he still favors stocks long term, adding the market will be the best-performing asset for investors looking out three to four years from now.


Company: cnbc, Activity: cnbc, Date: 2018-11-06  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, house, siegel, sp, stock, jeremy, warns, months, professor, usually, market, typical, postmidterm, past, surge, investors


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Bank of Japan governor says he’s aware that easy policy is hurting lenders, warns of global risks

Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank was aware that prolonged ultra-loose monetary policy could squeeze financial institutions’ margins and potentially destabilize the country’s banking system. “The BOJ fully recognizes that, by continuing monetary easing, financial institutions’ strength will be cumulatively affected,” Kuroda said in a speech to business leaders in Nagoya, central Japan. “Although these risks are judged as not significant at this point … the


Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank was aware that prolonged ultra-loose monetary policy could squeeze financial institutions’ margins and potentially destabilize the country’s banking system. “The BOJ fully recognizes that, by continuing monetary easing, financial institutions’ strength will be cumulatively affected,” Kuroda said in a speech to business leaders in Nagoya, central Japan. “Although these risks are judged as not significant at this point … the
Bank of Japan governor says he’s aware that easy policy is hurting lenders, warns of global risks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-05  Authors: akio kon, bloomberg, getty images
Keywords: news, cnbc, companies, risks, hurting, easy, monetary, global, easing, boj, governor, warns, lenders, financial, policy, kuroda, hes, rising, stimulus, institutions, japan


Bank of Japan governor says he's aware that easy policy is hurting lenders, warns of global risks

Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank was aware that prolonged ultra-loose monetary policy could squeeze financial institutions’ margins and potentially destabilize the country’s banking system.

Given subdued inflation and uncertainty surrounding overseas economies, however, he said the BOJ needed to maintain its massive stimulus program while keeping a watchful eye on the merits and costs of its policy.

“The BOJ fully recognizes that, by continuing monetary easing, financial institutions’ strength will be cumulatively affected,” Kuroda said in a speech to business leaders in Nagoya, central Japan.

Japan’s banking system could destabilize in the event of a severe negative shock, if financial institutions more actively take on risk to make up for narrowing margins from years of low interest rates, he said.

“Although these risks are judged as not significant at this point … the BOJ will scrutinize developments and encourage financial institutions to take action as necessary,” he said.

Kuroda’s remarks came after minutes released earlier on Monday showed the BOJ’s nine-member board discussed the rising cost of prolonged easing at its rate review in September.

“One member said there was room to make the BOJ’s policy framework more flexible in the future” if the economy continues to expand, the minutes showed.

Another member said the board should discuss how long the BOJ can maintain its stimulus program, given perceived limits to its policy duration, the minutes showed.

While the BOJ will scrutinize financial risks from easing, it also needed to consider uncertainties surrounding Japan’s economic outlook as Sino-U.S. trade frictions and rising protectionism could weigh on global demand, Kuroda said.

“The impact of such problems on Japan’s economy is limited for now,” Kuroda said. “But if the problems persist, the effect on Japan’s economy could become bigger,” he added.

“It’s necessary to persistently continue with powerful monetary easing, while considering both the positive effects and side effects in a balanced manner,” Kuroda said.

Subdued inflation has forced the BOJ to maintain its radical stimulus program despite the rising demerits, such as the hit to financial institutions’ profits from prolonged low rates.

The BOJ kept monetary policy steady last month and Kuroda ruled out a near-term interest rate hike amid risks from global trade disputes.


Company: cnbc, Activity: cnbc, Date: 2018-11-05  Authors: akio kon, bloomberg, getty images
Keywords: news, cnbc, companies, risks, hurting, easy, monetary, global, easing, boj, governor, warns, lenders, financial, policy, kuroda, hes, rising, stimulus, institutions, japan


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US sanctions will push Tehran’s hardliners to the fore, Iranian American council warns

The reimplementation of U.S. sanctions on Iran will benefit the hard-line faction within the Middle East country, according to the Washington, D.C.-based National Iranian American Council (NIAC). The non-profit group — which aims to represent Iranian Americans — added that the sanctions could also isolate the United States and increase its reliance on Saudi Arabia in the region. Policy Director Ryan Costello told CNBC Monday that the current president of Iran, Hassan Rouhani, is a moderate figur


The reimplementation of U.S. sanctions on Iran will benefit the hard-line faction within the Middle East country, according to the Washington, D.C.-based National Iranian American Council (NIAC). The non-profit group — which aims to represent Iranian Americans — added that the sanctions could also isolate the United States and increase its reliance on Saudi Arabia in the region. Policy Director Ryan Costello told CNBC Monday that the current president of Iran, Hassan Rouhani, is a moderate figur
US sanctions will push Tehran’s hardliners to the fore, Iranian American council warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-05  Authors: david reid, atta kenare afp getty images
Keywords: news, cnbc, companies, warns, tehrans, director, sanctions, push, council, rouhani, american, states, costello, moderate, iran, policy, hardliners, fore, benefited, iranian


US sanctions will push Tehran's hardliners to the fore, Iranian American council warns

The reimplementation of U.S. sanctions on Iran will benefit the hard-line faction within the Middle East country, according to the Washington, D.C.-based National Iranian American Council (NIAC).

The non-profit group — which aims to represent Iranian Americans — added that the sanctions could also isolate the United States and increase its reliance on Saudi Arabia in the region. Policy Director Ryan Costello told CNBC Monday that the current president of Iran, Hassan Rouhani, is a moderate figure who may have to adopt a tougher stance if he is retain control of the country?

“Rouhani really has had the rug pulled out from in terms of sanctions … When you look at the forces who have benefited from this decision it is the IRGC (Islamic Revolutionary Guard Corps) who have benefited,” Costello said in a phone call.

“You are kind of likely to see a rally around the flag with this and the moderate wing of the Rouhani government will also have to move more in line with the hardliners,” he added.

The Trump administration has reinstated all sanctions removed under the 2015 nuclear deal, targeting both Iran and states that trade with it. The policy director said the sanctions “snapback” will allow the Iranian government to shift blame on the U.S. as the cause of domestic suffering, especially should shortages of food and medicines become more acute.


Company: cnbc, Activity: cnbc, Date: 2018-11-05  Authors: david reid, atta kenare afp getty images
Keywords: news, cnbc, companies, warns, tehrans, director, sanctions, push, council, rouhani, american, states, costello, moderate, iran, policy, hardliners, fore, benefited, iranian


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