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Last update: Sat, 25 Jun 2016 04am

Global Business & Economy

World - Global Business & Economy

Fed's Powell warns that dollar-based Libor could disappear NEW YORK/WASHINGTON: Financial markets need to consider the risks of relying heavily on the dollar-based London Interbank Offer Rate because this reference rate could stop being published, Federal Reserve Governor Jerome Powell said on Tuesday as a Fed-convened committee continued to zero in on an alternative to the so-called Libor."Market participants are not used to thinking about this possibility, but benchmarks sometimes come to a halt," Powell said in prepared remarks in New York for a roundtable discussion on a report on alternative reference rates.Libor is one of the world's most important benchmarks and about $300 trillion in contracts reference it. But Libor has come under scrutiny since traders at several large banks were accused of rigging its daily rates.That scrutiny has led to requirements that banks base their submissions for Libor rates on actual market trades, which Powell said was made difficult by a long-term decline in the money ...

World - Global Business & Economy

IMF deputy managing director Zhu to leave Fund in July WASHINGTON: The International Monetary Fund said on Tuesday its third highest ranking official, Deputy Managing Director Min Zhu, will leave the Fund when his five-year term expires in late July.Zhu, a former central banker at the People's Bank of China is one of four IMF deputy managing directors. He had focused on jobs and growth issues that have risen in prominence at the IMF as global growth has waned, along with fragile, small and low-income ...

World - Global Business & Economy

Fed's Yellen: US economy faces 'considerable uncertainty' WASHINGTON: Federal Reserve Chair Janet Yellen warned Tuesday that the US economy faces "considerable uncertainty" from slower domestic activity and from a possible British vote to break with the European Union.Pointing to dragging hiring and business investment recently, and to the risk that a pro-Brexit vote will send shock waves through global markets, Yellen signaled that the Fed has become less optimistic about US growth over the short term and will proceed with great caution ...

World - Global Business & Economy

Fed Chair Yellen: US economy faces 'considerable uncertainty' WASHINGTON: Federal Reserve Chair Janet Yellen said Tuesday that the US economy faces "considerable uncertainty" from slower domestic activity and from a possible British vote to break with the European Union.Warning of the risk that some recent signs suggest US domestic demand "might falter", Yellen stressed that the Fed will proceed with caution toward raising interest rates.Copyright AFP (Agence France-Presse), 2016 ...

World - Global Business & Economy

IMF commends Serbia's economic policies, urges more effort on debt BELGRADE: The International Monetary Fund on Tuesday commended Serbia's economic programme for its strong performance, but said greater effort will be needed to curb the country's high levels of debt.In a statement after an IMF mission completed its fourth and fifth reviews of a 1.2 billion euro loan deal, the Fund said it saw Serbian inflation at 1.3 percent this year, well below the central bank's target of between 2.5 percent and 5.5 percent.It commended ...

World - Global Business & Economy

Croatia political instability threatens recovery, S&P says LONDON: Political instability in Croatia after the government lost a no-confidence vote last week is "lamentable" and could do fresh damage to its long-suffering economy, rating agency Standard and Poor's said on Tuesday.S&P rates Croatia BB, below investment grade, and has a negative outlook on its debt, but the country has emerged from a six-year recession - one of the world's longest downturns - and its crucial tourist industry is booming.That recovery is threatened by ...

World - Global Business & Economy

Turkish economy minister welcomes rate cut, says it will help revive economy ANKARA: Turkey's economy minister welcomed central bank's rate cut on Tuesday, saying it would help revive economy as it eases access to the cheaper financing needed by manufacturers.In an emailed statement, Economy Minister Nihat Zeybekci also said he welcomed the simplification process in the central bank's rate corridor policy.Turkey's central bank cut its overnight lending rate by 50 basis points on Tuesday, as expected, marking its fourth straight month of easing and leaving no doubt ...