08262016Fri
Last update: Fri, 26 Aug 2016 03pm

Banking & Finance

Business & Finance - Banking & Finance

Bank of Japan's rush into stocks raises fears of market distortions TOKYO: The Bank of Japan's near doubling of its purchases of Tokyo shares is causing investors to worry the central bank will dominate financial markets, which could lead to price distortions as it continues to grease the economy. The BOJ's buying spree will make it harder for investors to sift good companies from bad, and raises a host of other problems including misallocating capital, making equities trading more speculative and reducing incentives for companies to meet shareholder needs, analysts say.More than three years of massive monetary stimulus has already resulted in the central bank cornering the Japanese government bond (JGB) market and distorting interest rates."The increased BOJ purchasing provides a very favourable demand environment for listed equities," said Michael Kretschmer, chief investment officer at Pelargos Capital in the Hague. "Nevertheless, in the long run we strongly doubt these type of monetary gimmicks aimed at price setting of risk assets can ...

Business & Finance - Banking & Finance

Deutsche Bank extends oil & gas coverage with new hire NEW YORK: Deutsche Bank has hired Lackland Bloom, former co-head of oil & gas investment banking at JP Morgan, to run its Houston office as a managing director in the natural resources group. Bloom will report to Greg Sommer and John Anos who are co-heads of Deutsche Bank's natural resources group, according to a memo obtained by IFR. Bloom had been with JP Morgan for roughly 16 years. Prior to joining JP Morgan, he was ...

Business & Finance - Banking & Finance

New Zealand central bank expects 35 basis points of cuts WELLINGTON: New Zealand's central bank said on Tuesday that its current interest rate track involves further cuts to balance a number of risks while generating an increase in consume price index inflation."Our present judgment is that the current interest rate track, involving an expected 35 basis points of further interest rate cuts, balances a number of risks weighing on the economy, while generating an increase in CPI inflation back toward the mid-point of the 1 ...

Business & Finance - Banking & Finance

UAE to deposit $1bn in Egypt central bank ABU DHABI: The United Arab Emirates agreed Monday to deposit $1 billion into Egypt's central bank in a new show of support for President Abdel Fattah al-Sisi, state news agency WAM said.The announcement comes as Egypt grapples with a dollar shortage and dwindling foreign reserves, and as Sisi has been preparing public opinion for economic reform measures, including further subsidy cuts.The $1 billion (800,000 euro) deposit, which is for a six-year period, comes as part ...

Business & Finance - Banking & Finance

Nigeria's central bank selling dollars in forex market LAGOS: Nigeria's central bank sold dollars in the forex market on Monday, four hours after the market opened with no trades, traders said. The naira rate was 308 to the dollar, its closing level in the previous session, by 1245 GMT. Copyright Reuters, 2016 ...

Business & Finance - Banking & Finance

RBS to relive unpleasant memories as investor lawsuit looms LONDON: At an English country mansion last month, lawyers for Royal Bank of Scotland (RBS) sat down with representatives of angry shareholders to broker an end to what may end up being the costliest case in British legal history. The meeting at The Grove, an 18-century estate near London that served as the secret World War Two HQ for Britain's biggest railway company, was convened to persuade investors to drop claims they were misled into ...

Business & Finance - Banking & Finance

Taiwan probes leading bank linked to Panama Papers TAIPEI: Taiwan is investigating a bank linked to the so-called Panama Papers scandal, in the wake of a $180 million fine levied by US authorities for "flagrant disregard" of anti-money laundering laws.American regulators last week said Taiwan's Mega International Commercial Bank showed indifference towards transactions carried out through Panama, which it calls a "high-risk jurisdiction for money-laundering". The US Department of Financial Services (DFS) said it had identified "suspicious transactions" between Mega International's New York ...