08252016Thu
Last update: Thu, 25 Aug 2016 05am

Business & Finance - Managed Funds

BoE's bond-buying struggles reverberate across euro zone markets LONDON: German bond yields fell to a one-week low on Tuesday after the Bank of England had to pay up to prise long-dated bonds from reluctant investors in an auction for its relaunched quantitative easing scheme.The falls in yield seen across euro zone markets tracked those in British bonds after the reverse auction -- the third since the bank relaunched QE earlier this month -- showed further evidence of an unwillingness by investors to sell debt that could prove problematic for the central bank's stimulus. The Bank of England said the offer-to-cover ratio on its reverse auction of Gilts with maturities of 15 years and above was 1.54 on Tuesday, down from 2.67 last week. The first operation two weeks ago was a technical failure. Analysts said the BoE also paid a high premium for the bonds, comparing the highest price paid to the weighted average price at the auction."The ...


Business & Finance - Banking & Finance

Czech central bank to adjust systemic risk buffers for banks from 2017 PRAGUE: The Czech central bank will adjust individual capital buffers for systemically important banks as of January next year, the bank said on Twitter on Tuesday. It gave no details. A spokesman said it would release a statement on the changes at 8.00 a.m. (0600 GMT) on Wednesday. The current capital charge is 3 percent for Erste Bank unit Ceska Sporitelna and CSOB, owned by KBC ; 2.5 percent for Komercni Banka, majority-owned by Societe ...

Business & Finance - Banking & Finance

Peru's central bank expects Aug inflation at about July's 2.96pc LIMA: The president of Peru's central bank said Tuesday that the annual inflation rate in August will likely be similar to the 2.96 percent pace posted in July. Julio Velarde told reporters on the sidelines of an economic forum that inflation will likely cool to about 2.8 percent by the end of the year before continuing to cool toward the central bank's goal of 2 percent in 2017. Copyright Reuters, 2016

Business & Finance - Banking & Finance

Russia central bank: govt decision on pensions no reason to change inflation forecast MOSCOW: Russia's central bank said on Tuesday a government decision to make a one-off payment to pensioners early next year was no reason to change its inflation forecast. The bank added in a statement that adjusting pensions to account for inflation was not an obstacle to its monetary policy target of low and stable inflation. Copyright Reuters, 2016

Business & Finance - Industries & Sectors

Russia's Rusal Q2 core earnings seen up 8pc q/q MOSCOW: Russian aluminium giant Rusal is expected to report an 8 percent rise in second-quarter core earnings compared with the previous quarter thanks to a recovery in aluminium prices, a Reuters survey of analysts at six banks showed.Rusal's second-quarter earnings before interest, taxation, depreciation and amortisation (EBITDA) are expected to increase to $336 million from $312 million in the first quarter.Aluminium prices on the London Metal Exchange (LME) are up about 11 percent since the ...

Business & Finance - Banking & Finance

Bank of England pays high premiums for bonds in QE buyback LONDON: The Bank of England paid a high price to buy government bonds from investors on Tuesday, the latest sign that its plan to soften the Brexit hit to Britain's economy faces more of a challenge than initially thought.The BoE said on Tuesday it received fewer offers of long-dated bonds from investors than at a similar auction last week, part of its quantitative easing programme.The offer-to-cover ratio fell to 1.54 from 2.67 at an auction ...

Business & Finance - Industries & Sectors

VW, suppliers settle dispute after marathon talks BERLIN: Volkswagen and two of its parts suppliers on Tuesday resolved a contract dispute that had hit output at more than half of the carmaker's German plants and threatened to undermine its recovery from a diesel emissions scandal.After more than 20 hours of negotiations that went on through the night, VW said it had had settled its differences with CarTrim, which makes seats, and ES Automobilguss, which produces cast iron parts needed to make gearboxes, ...