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South Korea Money Supply Growth Eases Further





South Korea's money supply growth slowed for the third straight month in December, preliminary figures from the Bank of Korea showed Monday. M2, a broad measure of money supply, rose 7.5 percent year-over-year in December, slower than the 7.7 percent spike in the previous month. On a monthly basis, M2 money supply dropped slightly by 0.1 percent at the end of the year, reversing a 0.4 percent increase in November. At the same time, annual growth in liquidity quickened to 8.3 percent in December from 7.8 percent in the preceding month. Liquidity of financial institutions grew at a slower pace of 8.9 percent yearly in December, following a 9.2 percent hike a month earlier.


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Singapore Airlines expects global economic weakness to dent premium traffic





Singapore Airlines is expecting weakness in the global economy to affect its premium air traffic, its chief executive officer Goh Choon Phong said on Monday. Phonh said, "we are still seeing the demand in this segment on our routes anyway, to be fairly strong”. SIA's business model hinges on using its hub at Singapore's Changi Airport to connect passengers within Asia and to Europe, Australia and the U.S.


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Canadian Dollar Rises Against Most Majors





The Canadian dollar strengthened against most majors in the Asian session on Tuesday. The Canadian dollar rose to near 2-week highs of 1.3773 against the U.S. dollar and 1.5372 against the euro, from yesterday's closing quotes of 1.3832 and 1.5428, respectively. Against the yen, the loonie advanced to a 1-week high of 83.24 from yesterday's closing value of 82.79. If the loonie extends its uptrend, it is likely to find resistance around 1.36 against the greenback, 1.49 against the euro and 87.00 against the yen.


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Bank of Japan's negative interest rates take effect





Despite the global market turmoil, the Bank of Japan has formally implemented negative interest rates aimed at encouraging banks to lend more money and press savers and entities to spend and invest. The BOJ unveiled the plan on January 29 where banks will pay 0.1% for keeping extra reserves with the central bank. The announcement pushed the markets down even though it quickly drove the Japanese yen down and beefed up stock prices. Stock prices of Japanese banks declined as well, plunging by as much as 30%. Although analysts said the timing of instituting negative rates was not right, Economic Minister Nobuteru Ishihara said it will take more time to gauge the effect of such rates, which has started to affect auto loans and mortgages.

Asian stocks advance as European, Japanese shares surge 7%






Asian shares accelerated Tuesday as European and Japanese stocks ended 7% higher in the last trading session. Japan's Nikkei 225 closed at 16,138.48, up 0.72%. The Shanghai Composite Index ended at 2,801.17, up 2%. Hong Kong's Hang Seng Index settled at 19,201.96, up 1.5%. South Korea's Kospi was at 1,882.44, up 1.1%. In China, markets rallied amid weak trade figures reported by the government. Also, People's Bank of China Governor Zhou Xiaochuan's comments, aimed at alleviating woes about dwindling currency reserves, propelled the yuan into its largest gain since 2005. Meanwhile in Japan, Softbank Group climbed around 14% in early trade following they unveiled its biggest share buyback, seeking to beef up investor sentiment


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Fed mulls changing plans over rate hikes - minutes





Federal Reserve officials once considered changing their game plan on raising interest rates throughout this year, based on the minutes of their latest meeting. The minutes also showed policymakers were concerned a global economic degeneration could affect the United States and agreed the uncertainty had escalated since their decision to increase rates in December. Members unanimously voted to hike rates by 25 basis points last year for the first time since 2006. Since then, oil prices have continued to decline and global stock markets have been more volatile. Some officials felt they need to wait to further raise rates due to rigid economic conditions to ensure the US economic outlook is not dwindling and inflation is not below their 2% target.


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Russia: Oil output may hit worst price despite OPEC talks





Russia's oil production may slide 14% in the next five to ten years amid initial agreement with Saudi Arabia to freeze crude output at January levels to bolster crude prices. The country's Energy Ministry said oil output may decline to 460 million metric tons in 2020-2025 from 534 million metric tons a year ago. In a worst case scenario, the ministry emphasized oil prices would stay at approximately $31 to $33 per barrel between 2016 and 2017, rebounding to $42 per barrel in 2020. That scenario presumed demand in China and other Asian countries dwindles on degenerating economic expansion, the United States raises shale output, and Middle East nations bolster cheap supplies. Russia has been contending with its longest recession in two decades as slumping oil prices and global sanctions have dented its economy over the Ukrainian crisis.

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UK bank rules won't change if British people backs Brexit





The United Kingdom's bank rules won't go back to pre-crisis days should British people decide to support leaving the European Union in a June 23 referendum. Prudential Regulation Authority head Andrew Bailey made the statement as Prime Minister David Cameron is pushing to better the country's ties with the EU. Bailey ruled out a revert as the banking rules are integrated in a general response to any financial crisis that the Basel Committee on Supervision coordinated globally. Under the deal with the European leaders, the banking law, which includes prudential prerequisites for banks, is to be implemented by all financial institutions to achieve balance in the market.


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Fed official cautions on scrambling for government-only US funds





A top Federal Reserve official warned converting US money funds to government-only from prime could be steeply reverted and affect the general policy implementation when a new tool is gradually ditched. New York Fed Markets Group Head Simon Potter said money funds, a tool wrenching interest rates from close to zero, are only interim. Over 100 funds have secured an access to overnight repurchase facility rendering a 0.25% short-term yield on cash. Many of them are scrambling to make the change in recent months. The Securities and Exchange Commission has given them until October to redeem prime funds. Published: 2016-02-23 01:19:00 UTC+00 BACK TO NEWS LIST


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China can raise budget deficit to 4%, says PBOC officials





As the government seeks to slash corporate taxes, China has the capacity to bolster its budget deficit to 4% of gross domestic product. In an Economic Daily article they wrote, People's Bank of China officials emphasized ample government-owned assets, low levels of sovereign debt, and almost swift economic expansion give the country more advantage to sell additional bonds. They added China could keep a debt-to-GDP ratio of up to 70% at the end of 2025 in case the deficit was escalated to 4%. The article emerges before the nation's leading lawmakers meet this month, in which the annual economic plans and goals will be decided on and unveiled.




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