The Fed Needs to Fight the Next Recession Now

Bloomberg Quint | Apr 15, 2019 at 11:30 AM
  • Consider its ability to stimulate growth by lowering interest rates.
  • In the early 2000s, when the tech bubble burst, it had to lower rates more than 5 percentage points to keep the unemployment rate from rising much above 6 percent.
  • Instead, the Fed should publicly commit now to maintain maximum stimulus after a recession until the unemployment rate falls below 3 percent, as long as the year-over-year core inflation rate remains below 2.5 percent.

United States

ISS opposes free pass for UBS bosses after French tax ruling

Reuters | Apr 15, 2019 at 11:27 AM
  • UBS shareholders should oppose discharging the board and top management of Switzerland’s biggest bank from liability after a guilty verdict in a French tax evasion case.
  • This is the latest opposition put up by shareholder advisers after a French court in February found UBS guilty of illegally soliciting clients and laundering the proceeds of tax evasion, ordering it to pay 4.5 billion euros ($5.1 billion) in penalties.
  • Ethos Foundation on Friday recommended UBS’s shareholders reject all of the Swiss bank’s executive and board pay proposals at the annual meeting, including binding votes on bonuses and pay packages.

United States

US, UK-based firms backing Naresh Goyal’s bid for Jet Airways, but lenders may not let him back in

Money Control | Apr 15, 2019 at 11:25 AM
  • Naresh Goyal’s bid for Jet Airways is reportedly being backed by Delaware-based Future Trend Capital.
  • Etihad has made it clear it does not want to exceed its stake in Jet Airways beyond 25 percent, as that would mandate an open offer for an additional 20 percent.
  • Industry experts believe the carrier has a chance of surviving this rough patch if banks release this fund.


China’s yuan funds outstanding for forex decline in March

Xinhua News Agency | Apr 15, 2019 at 11:25 AM
  • China’s yuan funds outstanding for foreign exchange dropped for an eighth straight month in March.
  • Such funds are an important indicator of cross-border foreign capital flows and domestic yuan liquidity.
  • A similar measure of capital flow, the country’s foreign exchange reserves edged up 0.3 percent from February to 3.0988 trillion U.S. dollars by the end of March.

United States

Goldman Sachs 1Q profit, revenue falls

Fox Business | Apr 15, 2019 at 11:17 AM
  • Goldman Sachs Group Inc.‘s first-quarter profit fell 21% from a year ago as quiet trading and underwriting took a toll across Wall Street.
  • Goldman posted a quarterly profit of $2.25 billion, or $5.71 a share, on revenue of $8.81 billion.
  • Trading revenue fell 18% to $3.61 billion compared with a year-ago quarter.

United States

Citigroup’s 1Q profit rises, but revenue slips

Fox Business | Apr 15, 2019 at 11:16 AM
  • Citigroup Inc. said Monday its first-quarter profit rose 2% from a year ago.
  • Analysts expected $18.634 billion.
  • To account up for this revenue pressure and to stay on track to meet its return targets, Citigroup has been cutting expenses.

United States

China central bank calls for more policy coordination to support growth

Reuters | Apr 15, 2019 at 11:15 AM
  • China’s central bank on Monday called for more coordination between the country’s monetary policy, fiscal policy and other policies as Beijing seeks to fend off risks and maintain stable economic growth.
  • The central bank reiterated its pledge to continue with a prudent monetary policy that is neither too loose or too tight, and ensure reasonably ample liquidity in the interbank market.
  • China will report the first-quarter economic growth pace on Wednesday.

United States

Goldman Sachs beats analysts’ estimates for first quarter profit while markets impacted revenue

CNBC | Apr 15, 2019 at 11:15 AM
  • Goldman Sachs posted first quarter profit that exceeded analysts’ expectations, while company-wide revenue missed on tougher market conditions for two of the firm’s main divisions.
  • Revenue dropped 13% to $8.81 billion on lower results in the bank’s Wall Street trading and Investing and Lending segment, below analyst’s $8.9 billion estimate.
  • Goldman’s Institutional Client Services division, which houses its trading operations, posted $3.61 billion in revenue for the quarter, an 18 percent decline from a year earlier.

Russian Federation

Visa launches cash withdrawal pilot project in Russia

TASS Russian News Agency | Apr 15, 2019 at 11:07 AM
  • International payment system Visa together with the Russian Agricultural Bank and The Parmezan retail chain launched a pilot project in Russia to withdraw cash at the store’s cash desks.
  • The plans for the payment system include making the service available throughout the country.