12072016Wed
Last update: Wed, 07 Dec 2016 07pm

Global Business & Economy

World - Global Business & Economy

China banking regulator to tighten rules on lenders' derivative trading SHANGHAI: China's banking regulator has drafted rules that will require lenders to tighten risk management in derivatives trading, a business the watchdog said has been expanding rapidly in recent years. Lenders must set up sound policies and procedures in dealing with risks stemming from derivative trading, and must include counterparty credit risk management, the China Banking Regulatory Commission (CBRC) said on its website on Monday.The rules, which were based on methods published by the Basel Committee on Banking Supervision in 2014, is aimed at "strengthening commercial banks' ability to manage risks stemming from derivative tools," CBRC said.China has been stepping up efforts to ward off financial risks, strengthening supervision in areas that previously received inadequate regulatory attention, including shadow banking and derivatives trading.For example, China's securities regulator has restricted index futures trading since the mid-2015 stock market crash, and has also banned the use of over-the-counter (OTC) derivatives as a ...

World - Global Business & Economy

OECD sees resurgent US growth boosting global economy PARIS: Global growth will pick up faster than previously expected in the coming months as the Trump administration's planned tax cuts and public spending fire up the U.S. economy, the OECD said on Monday, revising up its forecasts.In its twice-yearly Economic Outlook, the Organisation for Economic Cooperation and Development estimated global growth would accelerate from 2.9 percent this year to 3.3 percent in 2017 and reach 3.6 percent in 2018.The Paris-based organisation was slightly more ...

World - Global Business & Economy

China Nov factory activity likely continued steady expansion BEIJING: Activity in China's manufacturing sector likely held onto a modest expansionary trend this month, a Reuters poll showed, as industrial firms continued to benefit from higher producer prices and a recovery in demand.The official manufacturing Purchasing Managers' Index (PMI) is expected to come in at 51.0 in November, which would be the fourth straight month of expansion, according to the median forecast of 36 analysts polled by Reuters.The index hit a two-year high of ...

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Unexpected fall in Thailand's October exports adds to gloom BANGKOK: Thailand's customs-cleared exports unexpectedly dropped in October after two months of gains, adding to pressure on the struggling, trade-reliant economy in the face of tepid global demand.Exports, worth about two-thirds of the Thai economy, have contracted the past three years, placing a big drag on the military government's attempts to revive Southeast Asia's second-largest economy.Domestic consumption also remains sluggish, despite the junta's efforts to to boost demand since it seized power in May 2014 ...

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Fitch drops South Africa outlook to negative on political risks JOHANNESBURG: International credit rating firm Fitch dropped its outlook for South Africa from stable to negative on Friday, citing the country's recent political turmoil under President Jacob Zuma.Zuma has been engulfed by graft scandals and a power struggle with Finance Minister Pravin Gordhan, while economic growth has fallen to 0.5 percent and unemployment hit a 13-year high."Political risks to standards of governance and policy-making have increased," Fitch said in a statement, confirming that it kept ...

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ECB to keep easy policy as inflation still far from target FRANKFURT: The European Central Bank is still far from its inflation target and will keep an accommodative policy even after the recent uptick in bond yields and inflation, ECB rate setter Yannis Stournaras said in a Bloomberg TV interview on Friday. "Monetary policy will continue to be accommodating until inflation arrives to a desirable level, which is 2 percent or slightly lower. It's still a long distance from this target," Bank of Greece Governor Yannis ...

World - Global Business & Economy

Dutch budget deficit seen at 0.4pc/GDP in 2016 after tax windfall AMSTERDAM: The Dutch government expects to run a budget deficit of just 0.4 percent of national output in 2016 after receiving 4.3 billion euros worth of tax revenue more than expected, Dutch media reported on Friday. As recently as September, the government had forecast a 2016 deficit of 1.1 percent of gross domestic product. This month the country's statistics office said the economy grew at 2.4 percent in the third quarter from a year earlier, ...