Finance

The Next Phase of Finance

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Today’s strengthening economic recovery has not overcome the understandable but devastating loss of trust in the financial system that followed the crisis a decade ago. Restoring trust will require reasserting control over the financial sector, to ensure that it is serving the economy, not the other way around. Bertrand Badré Project Syndicate WASHINGTON, DC – The decade since the global financial crisis has been tumultuous, to say the least. True, no great war has erupted, and we have more or ... Read More »

China gets tough on debt with ‘Rottweiler regulator’

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People’s Bank of China handed increased powers as financial shake-up points to Liu He’s influence Gordon Watts Asia times President Xi Jinping has opened the door for confidante Liu He to push through economic reforms after China’s central bank was handed more power in a major shake-up in the financial sector. Details released during Tuesday’s session of the de facto parliament, the National People’s Congress, outlined plans for merging the banking and insurance regulators. At the same time, the People’s ... Read More »

Brexit: No-trade deal with EU to cost businesses £58bn a year, research finds

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‘Existential threat’ posed to some UK industries by increased tariffs and customs checks, according to report Ben Chapman Independent A no-deal Brexit would cost companies in the UK and the EU £58bn a year, with Britain’s financial services sector taking the biggest hit, according to new research. The additional direct “red-tape cost” of tariff and non-tariff barriers would be £27bn to UK firms and £31bn to their EU counterparts, a report from consultancy Oliver Wyman and law firm Clifford Chance estimates. “These increased costs and… Brexit: No-trade… Read More »

Asia-Pacific trade deal signed by 11 nations

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Eleven Asia-Pacific countries have just signed the trade pact formerly known as the Trans-Pacific Partnership. Tim McDonald BBC Although the US pulled out last year, the deal was salvaged by the remaining members, who signed it at a ceremony in the Chilean city of Santiago. Chilean foreign minister Heraldo Munoz said the agreement was a strong signal “against protectionist pressures, in favour of a world open to trade”. The deal covers a market of nearly 500 million people, despite the ... Read More »

US Tariffs: ‘Aluminum Companies Will Benefit, Everyone Else Will Lose’ – Analyst

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Trump’s decision to introduce higher tariffs on steel and aluminum imports would be detrimental to both the US and the EU. Sputnik This is what French Finance Minister Bruno Le Maire has stated, noting that the US measures would have a major impact on the European economy. Sputnik discussed this with Simon Lester, Trade Policy Analyst at Cato Institute. Sputnik: What is your take on President Trump’s statement that the US has been suffering from unfair trade, is that really the case? ... Read More »

Reserve Bank leaves rates on hold at record low 1.5 per cent

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The Reserve Bank of Australia has left the cash rate at a record-low 1.5 per cent, as sluggish wage growth and inflation put the board in a holding pattern for the 17th meeting in a row. Eryk Bagshaw The Sydney Morning Herald Reserve Bank governor Philip Lowe used the word “gradual” to describe Australia’s economic recovery three times in his short statement on monetary policy on Tuesday, indicating the bank is in no rush to raise interest rates from their ... Read More »

In a trade war, China would act to protect its interests: official

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Beijing: China doesn’t want a trade war with the United States but will act to protect its interests, a senior Chinese official said on Sunday, as other major US trading partners smarted at looming steel tariffs. Kirsty Needham The Canberra Times China’s response to Mr Trump’s announcement of 25 per cent tariff on steel and 10 per cent on aluminium has been muted compared to the reaction of the EU and Canada because China doesn’t rank in the top 10 steel ... Read More »

Housing risks ‘catastrophic’: Grattan Institute

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Australia’s eight-year house price boom has savaged the living standards of poorer Australians while so far leaving the wealthy untouched, a new Grattan Institute analysis finds. Peter Martin The Age But the report, to be released on Monday, warns of a “catastrophic” impact on all income groups should mortgage rates rise by more than a few percentage points. The institute’s chief executive, John Daley, said Australians who already owned their houses had been little affected by soaring prices to date because ... Read More »

How Europe’s Band-Aid Ensures Greece’s Bondage

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All the happy talk about impending “debt relief” and a “clean exit” from Greece’s third “bailout” obscures an uglier truth: the country’s debt bondage is being extended to 2060. Yanis Varoufakis Project Syndicate Worse, by ossifying Greece’s insolvency, while pretending to have overcome it, Europe’s establishment is demonstrating its refusal to fix the eurozone’s flaws. ATHENS – Greece’s never-ending public-debt saga has come to signify the European Union’s inept handling of its inevitable eurozone crisis. Eight years after its bankruptcy, ... Read More »

Paul Keating says Australia’s sycophancy to US damaging its own interests

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Former Labor prime minister says there should be greater independence within alliance and South China Sea ‘is not our fight’ Ben Doherty Guardian Australia’s “client state” obsequiousness towards the US was damaging its own interests and ignoring the rise of China as the nascent “primary economic state of the world”, Paul Keating has argued. Speaking at the Lowy Institute in Sydney, the former Labor prime minister said the alliance with the US did not mandate slavish devotion to American demands “as the ... Read More »

Big investors backed shareholder campaigns on climate, human rights

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It had already been a challenging year for BHP by the time its new chairman, Ken MacKenzie, took to the stage at the company’s AGM last November. Ruth Williams The Age The complex repercussions of the deadly Samarco mine disaster in Brazil two years before rolled on and combative hedge fund Elliott had spent much of the year using its toe-hold shareholding to push for a radical shake-up. Against that backdrop a resolution lobbed by a tiny group of retail ... Read More »

‘Britain Would Collapse If It Tried to Pay Back the Money it Drained From India’

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Britain drained more than 9 trillion pounds from India over 173 years, says economist Utsa Patnaik. Newsclick Report Britain would collapse if it tried to pay back the money it drained from India, eminent economist Utsa Patnaik said at a conference at Jawaharlal Nehru University, New Delhi on Wednesday. Delivering the inaugural lecture at the three-day Sam Moyo Memorial Conference on “Land and Labour Questions in the Global South”, Utsa Patnaik said that the estimated drain from India to Britain ... Read More »

Merkel eyes overhaul of EU finances for post-Brexit bloc

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BERLIN: Brexit offers the EU an opportunity for a broad rethink of its financial set-up, German Chancellor Angela Merkel said on Thursday before an EU summit that will tackle the bloc’s future budget. Reuters Arab News Addressing the Bundestag (lower house of parliament), Merkel made clear that the future of the EU would be a priority in her fourth term, provided a coalition deal between her conservatives and the pro-EU Social Democrats is approved by SPD members. “We need a ... Read More »

Ukraine’s National Bank to prolong sanctions against banks with Russian capital

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Earlier Ukraine’s President enforced the decision of Security and Defense Council to impose sanctions against five banks with Russian capital 112.International The National Bank of Ukraine believes that the sanctions against banks with Russian state capital, expiring on March 16, should be prolonged. Vitaliy Vavryshchuk, the Head of the National Bank Financial Stability Department said this, as Interfax-Ukraine reports. “Yes, there is a need to prolong them,” he responded. He also mentioned that the presence of banks with Russian capital within the… Ukraine’s National ... Read More »

Two of the big four fail to submit to inquiry despite earning millions of dollars in taxpayer funding

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Two of Australia’s largest consultancy firms have failed to lodge submissions to a public inquiry on the use of consultants despite raking in billions of dollars in taxpayer funding. By Eryk Bagshaw Brisbane Times PriceWaterhouseCoopers and KPMG are the only two of the big-four firms to have made submissions to the inquiry, which was called after an audit found spending on contracts outside the public service had spiralled to $47 billion for 2016-17. The big four have earned close to $2 ... Read More »

UK Government-backed investment bank needed for small business lending, think tank urges

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A new report says a new national investment bank could address the lack of long-term investment in SMEs Ravender Sembhy The Independent Britain should set up a state-backed investment bank to focus on small business lending as part of efforts to tackle poor productivity, a think tank has urged. A new report by Civitas argues that the creation of a new “national investment bank” will address the “market failure” that has led to a lack of long-term investment in SMEs. The new lender ... Read More »