central banks

Emerging Asia’s US$5 trillion reserves put to test in currency war

(Aug 7): It used to be that a buildup in foreign reserves was seen as a bulwark against currency shocks and swift turns in investor sentiment.

Those days seem far away -- and that defense less robust -- as the trade conflict between the US and China evolves into a full-blown currency war that’s threatening emerging markets globally. Reserves of central banks in developing Asian nations, which have risen to almost US$5 trillion ($6.9 trillion) this year, will now be put to the test as currencies slide.

Global investor risk appetite wanes amid supply chain disruption, Brexit uncertainties: State Street

SINGAPORE (Aug 1): Investors across North America, Europe and Asia Pacific are showing a waning appetite for risk, according to State Street Corporation’s Investor Confidence Index (ICI) for July.

Global ICI fell 2.4 points to 84.9 in July, compared to June’s revised reading of 87.3.

The index measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors.

How to keep central banks independent

SINGAPORE (July 22): The global financial crisis that erupted in 2008 transformed the role of central bankers and the scale and scope of their policy toolkit. Today, financial stability is once again at the core of central banks’ missions, and interest rates in a number of rich countries are likely to remain at or even below zero for some time. This means that central bankers’ actions will be more visible and politically sensitive than they were even a decade ago.

How to keep central banks independent

SINGAPORE (July 22): The global financial crisis that erupted in 2008 transformed the role of central bankers and the scale and scope of their policy toolkit. Today, financial stability is once again at the core of central banks’ missions, and interest rates in a number of rich countries are likely to remain at or even below zero for some time. This means that central bankers’ actions will be more visible and politically sensitive than they were even a decade ago.

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Central banks counter economic jitters the golden way

(June 17): It appears that all that is gold glitters now, with more central banks, exchange-traded funds (ETFs) and consumers buying the precious metal. Gold accumulation by central banks and other institutions rose 68% y-o-y in 1Q2019. Recent data from the World Gold Council (WGC) shows that central banks’ net purchases of gold totalled 145.5 tonnes for 1Q2019 — the strongest 1Q purchase since 2013, during which 179.1 tonnes were bought.

Central banks counter economic jitters the golden way

(June 17): It appears that all that is gold glitters now, with more central banks, exchange-traded funds (ETFs) and consumers buying the precious metal. Gold accumulation by central banks and other institutions rose 68% y-o-y in 1Q2019. Recent data from the World Gold Council (WGC) shows that central banks’ net purchases of gold totalled 145.5 tonnes for 1Q2019 — the strongest 1Q purchase since 2013, during which 179.1 tonnes were bought.

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Debt is not the problem; sustainability is

SINGAPORE (Sept 21): There were at least 102 Singapore-listed companies with net gearing ratios of above 100%, with 17 operate in the property management and development industry, according to 12-month trailing data from Bloomberg.

Even so, there are wide differences in the financial strength of individual companies within each sector. Take the two largest developers City Developments (CDL) and CapitaLand, Each has net gearing below 50%, whereas several of the smallest developers, such as Aspial Corp and Chip Eng Seng, have net gearing levels of around two times or higher.

Asia's policy-makers just scored a new e-commerce growth measure

SINGAPORE (Apr 16): Policy makers in Asia grappling with how to measure the growth of e-commerce just scored one more tool in Singapore.

The Singapore Department of Statistics has started publishing the proportion of the city state’s retail sales that were transacted online. In February, those purchases made up 3.9% of overall retail sales, or $144.3 million, compared with 4.1% in the prior month, the agency reported Thursday.

Investors face higher market risks in 2018

SINGAPORE (Feb 2): The Federal Open Market Committee, meeting for the last time under outgoing chair Janet Yellen, left the federal funds rate unchanged on Jan 31 while paving the way for rate hikes under Yellen’s successor Jerome Powell.

See: Janet Yellen’s Fed era ends with unanimous vote of no rate hike

These factors are critical to continued global growth, says Morgan Stanley

SINGAPORE (Dec 19): Morgan Stanley is in the view that the ongoing global economic cycle will stay stronger for longer, on the back of a pick-up in investment growth, a gradual rise in core inflation, steady removal of monetary accommodation, contained financial stability risks in the US, and a moderate slowdown in China.

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