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Business & Finance - 2021-04-16
Erdogan adviser says central bank unlikely to cut rates early in Turkey
Money & Banking

Erdogan adviser says central bank unlikely to cut rates early in Turkey

  • Erdogan has long called for lower rates and abruptly fired the last three bank chiefs in less than two years, including Naci Agbal on March 20. Analysts say the bank's credibility is tarnished given Erdogan's outsized influence on monetary policy.
  • "I do not think the central bank or the governor knows when they will cut the policy rate, since they will act according to the data. I think it is early to make a comment on rate cuts before seeing the inflation data," said Ertem.
Published 16 Apr, 2021 08:06pm
New UniCredit chief sees technology at core of every decision
Money & Banking

New UniCredit chief sees technology at core of every decision

  • Orcel, former head of investment banking at UBS, started in his new role on Thursday, after narrowly overcoming an investor revolt over an up to 7.5 million euro ($9 million)pay package that makes him one of Europe's best-paid bank executives.
  • "Getting this right in a time frame that will have a material impact is critical to the success of our business, for the service that we provide for our clients and for our customers," he said.
Published 16 Apr, 2021 08:03pm
GM, LG Energy Solution to build 2nd US battery plant in Tennessee
Companies

GM, LG Energy Solution to build 2nd US battery plant in Tennessee

  • The planned 2.8 million-square-foot plant, scheduled to open in late 2023, will employ 1,300 people and is expected to have a production capacity similar to the companies' Ultium Cells joint-venture plant in Lordstown, Ohio, of about 35 gigawatt-hours as they move to respond to the growing demand in the electric vehicle market.
  • LG Chem said in a regulatory filing that its LG Energy Solution unit will invest $933.5 million in the plant between this year and 2023.
Published 16 Apr, 2021 07:57pm
Congo central bank cuts interest rate to 10.5pc
Money & Banking

Congo central bank cuts interest rate to 10.5pc

  • It had hiked the interest rate from 7.5% to 18.5% last August to re-anchor inflation expectations.
  • Growth is forecast at 4.4% in 2022, the IMF said. Congo is Africa's top producer of copper and recorded record output of the metal last year.
Published 16 Apr, 2021 07:41pm
Bitcoin tumbles after Turkey bans crypto payments citing risks
Forex

Bitcoin tumbles after Turkey bans crypto payments citing risks

  • The decision could stall Turkey's crypto market, which has gained momentum in recent months as investors joined the global rally in bitcoin, seeking to hedge against lira depreciation and inflation that topped 16% last month.
  • In a statement, the central bank said crypto assets were "neither subject to any regulation and supervision mechanisms nor a central regulatory authority", among other security risks.
Published 16 Apr, 2021 06:27pm
India central bank's rejection of 10-year bond bids fuels late rally
Financial

India central bank's rejection of 10-year bond bids fuels late rally

  • The benchmark 10-year bond yield closed at 6.08%, down 5 basis points on the day after earlier rising to 6.18%, its highest since April 7.
  • On Friday, RBI sold bonds worth 113.27 billion rupees, less than half of what it set out to raise for the government and rejected all bids at the sale of the 10-year bond.
Published 16 Apr, 2021 06:23pm
Sri Lankan shares end lower as financials drag
Stocks

Sri Lankan shares end lower as financials drag

  • The CSE All-Share Index fell 0.57% to close at 7,600.57 points. The index is up over 12.2% for the year.
  • Conglomerate Lanka ORIX Leasing Company Plc and investment company Browns Investments Plc were the top drags to the index, falling 2.7% and 3.1%, respectively.
Published 16 Apr, 2021 06:03pm
Lilly asks FDA to not allow lone use of COVID-19 drug bamlanivimab
Companies

Lilly asks FDA to not allow lone use of COVID-19 drug bamlanivimab

  • The request made to the US Food and Drug Administration is not due to any new safety issues, but in response to the new variants in the country that could be resistant to bamlanivimab when used alone, the drugmaker said in a statement.
  • Hospitals with bamlanivimab supply should now order etesevimab to pair with it, Lilly said.
Published 16 Apr, 2021 05:45pm
US Treasury yields edge higher, day after hefty fall
Financial

US Treasury yields edge higher, day after hefty fall

  • Ten-year Treasury yields fell more than 10 basis points on Thursday, the biggest one-day move down since early-November, Yields touched a low of 1.5280% -- well off 14-month highs hit recently above 1.77%.
  • On Friday, yields rose again to 1.56%, up 3.5 basis points on the day but still down eight bps from where the market opened on Thursday.
Published 16 Apr, 2021 05:37pm
Russia's Yandex to launch e-grocery delivery in Paris then London
Industry

Russia's Yandex to launch e-grocery delivery in Paris then London

  • Russia's e-commerce market boomed last year as lockdown restrictions kept shoppers at home, with Yandex.Lavka, a 15-minute grocery delivery service, one of the main beneficiaries.
  • Yango, the international arm of Yandex Go, the firm's taxi aggregator and food tech business, launched the grocery service in Israel under the Yango Deli brand late last year.
Published 16 Apr, 2021 05:33pm
Goldman Sachs communications head Jake Siewert to leave
Money & Banking

Goldman Sachs communications head Jake Siewert to leave

  • Siewert, a veteran of the Clinton and Obama administrations, joined the Wall Street bank in 2012. Before that, he was a top aide to former Treasury Secretary Timothy Geithner.
  • Siewert led Goldman's makeover efforts after the 2008 global financial crisis and was also involved in the launch of Marcus, its online retail banking division, the report said.
Published 16 Apr, 2021 05:31pm
Morgan Stanley profit blows past estimates, flags credit event loss
Money & Banking

Morgan Stanley profit blows past estimates, flags credit event loss

  • The Wall Street powerhouse, however, recorded a total one-off loss of over $900 million that it said was related to a credit event and subsequent losses from "a single prime brokerage client."
  • Morgan Stanley was one of six banks who had exposure to Archegos Capital Management, a family office fund that defaulted on margin calls late last month and triggered a firesale of stocks across Wall Street.
Published 16 Apr, 2021 05:21pm
Kansas City revenue falls 3.5pc as COVID-19 hits volumes
Companies

Kansas City revenue falls 3.5pc as COVID-19 hits volumes

  • The company's net income rose to $153.4 million, or $1.68 per share, in the first quarter ended March 31, from $152.3 million, or $1.58 per share, a year earlier.
  • Operating ratio, a key metric for Wall Street, rose to 64.2% from 60.5% a year earlier. A lower operating ratio signals improved profitability.
Published 16 Apr, 2021 05:07pm
Chinese banking sector's first-quarter profit growth at 1.5pc, says regulator
Money & Banking

Chinese banking sector's first-quarter profit growth at 1.5pc, says regulator

  • Chinese banks have begun to improve earnings in tandem with an economic recovery and are expected to continue to do so throughout the year.
  • The amount of special bonds for capital replenishment "will be relatively stable compared with last year", said Xiao Yuanqi, vice-chairman of CBIRC, adding that the disposal of bad loans will be no less than in previous years.
Published 16 Apr, 2021 04:53pm
Forint underperforms; investors unwind zloty short bets
Forex

Forint underperforms; investors unwind zloty short bets

  • The Hungarian forint slid 0.42% to 360.80 per euro, underperforming its peers. It has lost 1% this week.
  • The currency weakened in low liquidity because of a zloty-forint flow, traders in Budapest said, adding that the forint was also due for a correction after steady gains in the past few weeks.
Published 16 Apr, 2021 04:42pm
Cheaper cellphone charges to weigh on BOJ's inflation forecast
Money & Banking

Cheaper cellphone charges to weigh on BOJ's inflation forecast

  • Cellphone fee cuts to weigh on BOJ's price forecast – sources.
  • Impact of lower fees likely transitory, won't affect policy.
  • Price trend stripping away one-off factors 'solid' – sources.
  • Analysts expect fee cuts to shave up to 0.6% point off core CPI.
  • BOJ to mull impact of fee cut in April quarterly f'cast review.
Published 16 Apr, 2021 04:30pm
Spain's cement consumption jumps 53pc in March as construction recovers
Industry

Spain's cement consumption jumps 53pc in March as construction recovers

  • Cement consumption rose to 1.41 million tons in March, recovering from a slump last year and moving 9.3% above the level recording in March 2019, the Oficemen data showed.
  • As building projects resumed in the summer of 2020, when the lockdown ended, Oficemen expects annual consumption in 2021 to remain stable from 2020.
Published 16 Apr, 2021 04:27pm
Euro zone yields rise as US Treasury yields jump back after rally
Financial

Euro zone yields rise as US Treasury yields jump back after rally

  • Benchmark 10-year US Treasury yields, which fell more than 10 basis points on Thursday, undid much of that move and were up 6 bps in early European trade.
  • Euro zone bond yields also started the day higher, with Germany's 10-year yield, the benchmark for the region, up nearly 2 basis points to -0.28%.
Published 16 Apr, 2021 04:14pm
European new car sales jump 87% y/y in March

European new car sales jump 87% y/y in March

  • Sales at Volkswagen and Stellantis to the EU, Britain and the countries of the European Free Trade Association (EFTA), rose by 46% and 140% respectively, while Renault reported a rise of 70%.
Published 16 Apr, 2021 11:01am
Asian markets mixed as record China data fails to impress
Stocks

Asian markets mixed as record China data fails to impress

  • "With the Fed keeping the sugar taps open and offering up free tickets for investors to come frolic in the markets like 'kids in the candy store', the transition from policy to growth has been as smooth as silk with a benign reaction in yields suggesting that a growth tantrum is not on the cards anytime soon."
Published 16 Apr, 2021 10:50am
Aussie, kiwi up
Money & Banking

Aussie, kiwi up

SYDNEY: The Australian and New Zealand dollars touched three-week tops on Thursday as their US counterpart extended...
Updated 16 Apr, 2021 09:54am
Sterling struggles
Money & Banking

Sterling struggles

LONDON: The pound was steady on Thursday, edging up against the euro but struggling to regain momentum as market...
Updated 16 Apr, 2021 09:54am