Early Bird Headlines 22 March 2015
Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
- US companies sell record euro debt (Financial Times) Depressed bond yields in Europe are attracting record debt sales by US multinationals appears a real bargain as interest rates and exchange rates for euro are very low. Econintersect: Companies better be careful to borrow only what they expect to repay from euro based income or they could be badly burned if future exchange rates are very unfavorable.
- U.S. Looks to Work With China-Led Infrastructure Fund (The Wall Street Journal) Obama administration proposes co-financing projects with new Asian Infrastructure Investment Bank. Econintersect: U.S. had to do something – allies all signing up with China.
- Falling energy and food prices push UK towards deflation (The Guardian) Analysts expect inflation is likely to have fallen to 0.1% with some predicting that figures could show a negative reading.
- Greece’s leader warns Merkel of ‘impossible’ debt payments (Financial Times) Letter from Alexis Tsipras says ” … “impossible” for Athens to service debt obligations due in the coming weeks if the EU fails to distribute any short-term financial assistance to the country.”
- No cash for Athens until reforms in place, says Spain (Financial Times) Conservative Spanish government fears loss to left in next election if Greece’s leftist government gains concessions.
- Russia delivers nuclear warning to Denmark (Financial Times) Russia’s ambassador to Denmark wrote in a newspaper opinion piece threatening a nuclear attack if Denmark participates in a NATO missile defense program.
- Sebi relaxes debt-equity conversion norms for banks (Business Standard) India’s banks have a non-performing loan problem and the markets regulator has relaxed rules allowing banks to convert bad debt inot equity of the borrower.
- India’s Rajan backs removal of central bank’s debt powers (The Business Times) Mr. Rajan: “A public debt management agency as a professional organisation, independent of the (central) bank, independent of the government, is something that is desirable.” The government would set up a new agency for debt management, possibly also including regulation of trading (markets).
- FDI via approval route surges 162 pc to $1.91 bn in Apr-Jan (The Hindu) Foreign Direct Investment (FDI) has uncreased 162% in the first 9 months of the current fiscal year compared to a year earlier.
- China to keep prudent monetary policy to support structural reforms: central bank governor (The Business Times) “China plans to further ease capital controls in an ongoing bid to make the yuan fully convertible,” said central bank Governor Zhou Xiaochuan. Zhou also indicated that the bank intends to stick to a conservative monetary policy despite recent rate cuts and reduction in reserve requirements aimed at lifting the nation’s rate of growth. Econintersect: Mr. Zhou sounds conflicted.
- Economics Ministry to address falling exports to China (Focus Taiwan News Channel) Taiwan wants to increase other export markets besides China.
- Abe-Kuroda honeymoon soured by fiscal friction (Reuters Canada) The central bank wants more action to reduce debt while Abe is emphasizing growth. Econintersect: The credibility of this report is challenged by the statement: “… Japan’s staggering public debt, which at 230 percent of GDP is twice the U.S. figure and about 50 points higher than perilous Greece, …” Compare Japan to the U.S.? Yes. To Greece? No way.
- Japan could join China-led AIIB (China Spectator)
- Economy set to ‘regain some momentum’ in late 2015 (The Australian Business Review) Central Bank Rate cut, consumer confidence numbers support improvement.
- Benchmark ASX 200 could top 6000 on interest rate optimism (The Brisbane Courier Mail) The benchmark ASX 200 could top the landmark 6000 level this week, a seven-year high, as Wall Street rallied on expectations low interest rates will continue to boost stocks.
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