Showing posts with label Global Banks. Show all posts
Showing posts with label Global Banks. Show all posts
Monday, April 19, 2010
Citigroup profit rises, tops Wall Street target - MarketWatch
Citigroup profit rises, tops Wall Street target - MarketWatch: "NEW YORK (MarketWatch) -- Citigroup Inc. on Monday reported better-than-expected earnings, which more than doubled from the year-ago period as capital markets recovered, allowing the firm to mark up prices of some of its troubled assets."
Saturday, April 17, 2010
California bank brings U.S. failure tally to 48 - MarketWatch
California bank brings U.S. failure tally to 48 - MarketWatch: "SAN FRANCISCO (MarketWatch) -- Oakland, Calif.-based Innovative Bank was closed by regulators Friday, marking the 48th U.S. bank failure of 2010. The Federal Deposit Insurance Corp. said in a statement that Innovative Bank had roughly $268.9 million in assets, and $225.2 million in deposits as of Dec. 31. The FDIC estimated that the cost of the bank's failure to the deposit insurance fund will be $37.8 million. Innovative Bank is the third California-based bank to fail this year."
Tuesday, April 13, 2010
Fed's Lacker: We're a long way from full recovery - MarketWatch
Fed's Lacker: We're a long way from full recovery - MarketWatchSAN FRANCISCO (MarketWatch) -- Federal Reserve Bank of Richmond President Jeffrey Lacker said the U.S. economy is still early in its recovery from one of the deepest recessions on record, according to remarks prepared for a speech Tuesday.
Sunday, January 24, 2010
Obama's Crackdown On Banks leads to a sharp fall in US markets
The stock market suffered its worst setback in more than 10 months as investors rejected President Obama's plans to restrict big banks and earnings reports that just weren't good enough.
The Dow Jones industrial average had its fourth big drop in five trading days Friday, sliding 217 points. Over the past three days, the Dow lost 552 points, or 5.2 percent, and over the past five days, it fell 537 points, after gaining 115 points on Tuesday.
It was the worst showing for the market since it began its recovery last March. The Dow lost 4.1 percent this week, its worst week since it hit a 12-year low in March.
All the major indicators fell more than 2 percent Friday.To read the full article click here.
The Dow Jones industrial average had its fourth big drop in five trading days Friday, sliding 217 points. Over the past three days, the Dow lost 552 points, or 5.2 percent, and over the past five days, it fell 537 points, after gaining 115 points on Tuesday.
It was the worst showing for the market since it began its recovery last March. The Dow lost 4.1 percent this week, its worst week since it hit a 12-year low in March.
All the major indicators fell more than 2 percent Friday.To read the full article click here.
Thursday, January 14, 2010
Standard Bank sees Angola as key growth market
South African Standard Bank hopes to open for business in Angola by mid-year when it will be interested in any sector consolidation and set to act as a link between the country's resources and China and Russia. Warming relations between Angola and South Africa and the ties Africa's biggest bank by assets has with China and Russia -- rivals in attempts to secure access to Angolan resources -- should help the new business, a senior executive said. Angola rivals Nigeria as Africa's biggest oil producer and is the world's fifth biggest diamond producer. It is the third-biggest economy in sub-Saharan Africa, behind Nigeria and South Africa.
Zambia 2010 GDP likely above 7 per cent
Zambia is likely to register economic growth exceeding 7 per cent in 2010, spurred by a resurgence in mining and a boom in construction and agriculture, Bank of Zambia (BoZ) Governor Caleb Fundanga said on Monday. The Central Statistical Office said in October the economy was expected to grow by 6.3 percent in 2009.
Sunday, December 13, 2009
133 banks collapsed in US so far
With three more American banks biting the dust, the total number of collapses in 2009 has touched 133, more than five-fold that of last year.Battered by the financial turmoil, an average of 11 banks especially the small and medium ones, are going belly up every month in the country.
Last year, just 25 banks had collapsed.The count of bank failures in 2009 is the maximum in 18 years. In the wake of the savings and loan crisis, a whopping 181 banks were shuttered in 1992.
According to the Federal Deposit Insurance Corporation (FDIC), three entities ? Republic Federal Bank, Valley Capital Bank and Solutions Bank ? were closed on December 11.The failure of these banks is expected to cost FDIC ? which is often appointed as the caretaker of collapsed entities ? USD 252.1 million
Last year, just 25 banks had collapsed.The count of bank failures in 2009 is the maximum in 18 years. In the wake of the savings and loan crisis, a whopping 181 banks were shuttered in 1992.
According to the Federal Deposit Insurance Corporation (FDIC), three entities ? Republic Federal Bank, Valley Capital Bank and Solutions Bank ? were closed on December 11.The failure of these banks is expected to cost FDIC ? which is often appointed as the caretaker of collapsed entities ? USD 252.1 million
Tuesday, November 24, 2009
USD 3 billion loan from the World Bank
India may get USD 3 billion loan from the World Bank for development of roads in the country in the next 3-6 months, a senior Transport Ministry official said today.
"The Department of Economic Affairs has forwarded the request for the loan to the World Bank and we can expect to get it in 3-6 months' time, after the institution completes its due diligence," the official told .
The government has sought loan for converting 6,372-km of 1-lane highways to 2-lane out of the total 19,702 km single lane highways in the country under National Highways Development Project (NHDP) Phase IV.However, the mode of repayment of this loan has not been finalised yet.
"The Department of Economic Affairs has forwarded the request for the loan to the World Bank and we can expect to get it in 3-6 months' time, after the institution completes its due diligence," the official told .
The government has sought loan for converting 6,372-km of 1-lane highways to 2-lane out of the total 19,702 km single lane highways in the country under National Highways Development Project (NHDP) Phase IV.However, the mode of repayment of this loan has not been finalised yet.
source:PTI
Wednesday, November 4, 2009
US Fed keeps rates unchanged
The U.S. Federal Reserve on Wednesday expressed growing confidence that an economic recovery was building, even as it stuck to its commitment to keep borrowing costs near zero for "an extended period."
As expected, the central bank closed out a two-day meeting with a decision to keep benchmark overnight interest rates in a range of zero to 0.25 percent.
As expected, the central bank closed out a two-day meeting with a decision to keep benchmark overnight interest rates in a range of zero to 0.25 percent.
Tuesday, November 3, 2009
World Bank raises its forecast on China
The World Bank on Wednesday raised its forecasts for Chinese growth this year and projected a slightly faster pace of expansion in 2010, but it said Beijing did not need to embark on major policy tightening at this stage.
Gross domestic product will increase 8.4 percent this year and 8.7 percent in 2010 on the back of massive fiscal and monetary stimulus, the bank said in a regular update on China's economy.
Gross domestic product will increase 8.4 percent this year and 8.7 percent in 2010 on the back of massive fiscal and monetary stimulus, the bank said in a regular update on China's economy.
Federal Reserve began a two-day meeting on Tuesday
The U.S. Federal Reserve began a two-day meeting on Tuesday that is expected to end with a reaffirmation that policies to support the economy will stay in place for some time, even as signs of recovery mount.
In particular, the Fed is not expected to soften its commitment to hold benchmark interest rates exceptionally low for "an extended period."
In particular, the Fed is not expected to soften its commitment to hold benchmark interest rates exceptionally low for "an extended period."
Friday, October 30, 2009
BOJ begins to withdraw from credit market; holds rates
A split Bank of Japan began withdrawing from credit markets on Friday and said it would scrap all key funding support programmes by March, resisting government pressure to support corporate borrowing until the economy strengthens.
The bank extended a low-interest loans scheme by three months, but set an expiry date for March and said it would end less-used funding measures -- buying of corporate bonds and commercial paper -- in December, as expected.
The government has pressed the BOJ to continue its corporate debt buying and other measures the central bank says are no longer necessary because credit markets have largely recovered from the shock of the global financial crisis.
The government fears the central bank -- which on Friday forecast growth to bounce back over the next few years -- is too optimistic in its outlook.
The BOJ also forecast deflation to persist for a third year and stressed it would keep interst rates low for some time.
Central banks around the world have begun debating how and when to phase out their emergency steps to contain the damage wrought by the worst global financial crisis in decades.
"By extending the low-interest loan special operation the BOJ apparently wants to avoid being perceived by the public and the government as becoming hawkish," said Masamichi Adachi, senior economist at JPMorgan Securities
"But by saying the measure will end in March, instead of not specifying a deadline, it showed that the bank wants to end the measure at any cost."
Board member Atsushi Mizuno, a former BOJ bull whose view has turned pessimistic and is due to leave the central bank in December, opposed ending buying of corporate bonds and low interest loans, forcing votes of 7-1 in both cases.
"Monetary policy needs to be flexible, so it makes sense for the BOJ to end its buying of commercial paper and corporate bonds as they have drawn few bids," said Susumu Kato, chief economist at Calyon Securities.
To fend off criticism that its moves could hurt Japan's fragile economy, the BOJ said it would continue to provide ample liquidity through its regular market operations even after the low rate loan programme expires in March. It voted unanimously to keep interest rates steady at 0.1 percent, as widely expected.
The BOJ's CP buying auction on Oct. 23 drew no bids for the third time in a row, and issuance rates are now lower than the cost of government borrowing, which BOJ officials have pointed to as the market-distorting drawback of running the programme too long.
For a graphic tracking Japan's credit market improvements, click here
OUTLOOK ROW
Some cabinet ministers have put the pressure on the BOJ, with Finance Minister Hirohisa Fujii criticising the BOJ's economic assessment as too rosy. That gap could widen after the BOJ made bullish economic forecasts.
While its economic projection of 1.2 percent growth in the year from next April is more or less in line with forecasts by private forecasters, its projection of 2.1 percent in the following year looked optimistic, some economists said.
"The BOJ seems to be thinking that Japan is likely to achieve an economic recovery quickly in 2011/12," said Kyohei Morita, chief economist at Barclays Capital Japan.
In a sign weak demand is playing an increasing part in pushing down prices, the so-called core-core consumer price index, which strips out food and energy costs, fell 1.0 percent in September from a year ago, larger than than the 0.9 percent seen in the year to August.
The BOJ has nudged rates near zero and in July it extended the emergency measures it put in place in several stages from December last year through February this year.
BOJ officials won't admit that government pressure could influence its monetary policy decisions. But they do want to work closely with the government, and they have got the message that it isn't happy about the BOJ's view of the economy.
"The government always puts on pressure. You can't tell a dog not to bark," said Naomi Hasegawa, senior fixed-income strategist at Mitsubishi UFJ Securities.
source :reuters
The bank extended a low-interest loans scheme by three months, but set an expiry date for March and said it would end less-used funding measures -- buying of corporate bonds and commercial paper -- in December, as expected.
The government has pressed the BOJ to continue its corporate debt buying and other measures the central bank says are no longer necessary because credit markets have largely recovered from the shock of the global financial crisis.
The government fears the central bank -- which on Friday forecast growth to bounce back over the next few years -- is too optimistic in its outlook.
The BOJ also forecast deflation to persist for a third year and stressed it would keep interst rates low for some time.
Central banks around the world have begun debating how and when to phase out their emergency steps to contain the damage wrought by the worst global financial crisis in decades.
"By extending the low-interest loan special operation the BOJ apparently wants to avoid being perceived by the public and the government as becoming hawkish," said Masamichi Adachi, senior economist at JPMorgan Securities
"But by saying the measure will end in March, instead of not specifying a deadline, it showed that the bank wants to end the measure at any cost."
Board member Atsushi Mizuno, a former BOJ bull whose view has turned pessimistic and is due to leave the central bank in December, opposed ending buying of corporate bonds and low interest loans, forcing votes of 7-1 in both cases.
"Monetary policy needs to be flexible, so it makes sense for the BOJ to end its buying of commercial paper and corporate bonds as they have drawn few bids," said Susumu Kato, chief economist at Calyon Securities.
To fend off criticism that its moves could hurt Japan's fragile economy, the BOJ said it would continue to provide ample liquidity through its regular market operations even after the low rate loan programme expires in March. It voted unanimously to keep interest rates steady at 0.1 percent, as widely expected.
The BOJ's CP buying auction on Oct. 23 drew no bids for the third time in a row, and issuance rates are now lower than the cost of government borrowing, which BOJ officials have pointed to as the market-distorting drawback of running the programme too long.
For a graphic tracking Japan's credit market improvements, click here
OUTLOOK ROW
Some cabinet ministers have put the pressure on the BOJ, with Finance Minister Hirohisa Fujii criticising the BOJ's economic assessment as too rosy. That gap could widen after the BOJ made bullish economic forecasts.
While its economic projection of 1.2 percent growth in the year from next April is more or less in line with forecasts by private forecasters, its projection of 2.1 percent in the following year looked optimistic, some economists said.
"The BOJ seems to be thinking that Japan is likely to achieve an economic recovery quickly in 2011/12," said Kyohei Morita, chief economist at Barclays Capital Japan.
In a sign weak demand is playing an increasing part in pushing down prices, the so-called core-core consumer price index, which strips out food and energy costs, fell 1.0 percent in September from a year ago, larger than than the 0.9 percent seen in the year to August.
The BOJ has nudged rates near zero and in July it extended the emergency measures it put in place in several stages from December last year through February this year.
BOJ officials won't admit that government pressure could influence its monetary policy decisions. But they do want to work closely with the government, and they have got the message that it isn't happy about the BOJ's view of the economy.
"The government always puts on pressure. You can't tell a dog not to bark," said Naomi Hasegawa, senior fixed-income strategist at Mitsubishi UFJ Securities.
source :reuters
Sunday, October 25, 2009
Bank closings for the year hit 105 in US
Bank closings for the year hit 105 on Friday when regulators shut down three small banks in Florida, one in Georgia, one in Wisconsin and one in Minnesota.
The Federal Deposit Insurance Corp. took over Partners Bank, a small bank in Naples, Fla., with $68.7 million in assets and $63.4 million in deposits.
Others that failed were: Hillcrest Bank Florida, also based in Naples, which had $83 million in assets and $84 million in deposits; Flagship National Bank in Bradenton, Fla., with total assets of $190 million and total deposits of about $175 million; and American United Bank in Lawrenceville, Ga., with $111 million in assets and $101 million in deposits.
Also failing were: Bank of Elmwood in Racine, Wis., with $327.4 million in assets and $273.2 million in deposits; and Riverview Community Bank, based in Otsego, Minn., with $108 million in assets and total deposits of about $80 million.
Stonegate Bank, based in Fort Lauderdale, Fla., agreed to buy the deposits and assets of Partners Bank as well as the deposits of Hillcrest Bank Florida and $28 million of its assets. Ameris Bank, based in Moultrie, Ga., is buying the deposits and assets of American United Bank. First Federal Bank of Florida in Lake City agreed to assume all of the deposits of Flagship National Bank.
Tri City National Bank of Oak Creek, Wis., agreed to assume all the deposits of Bank of Elmwood. Central Bank of Stillwater, Minn., agreed to assume all of the deposits of Riverview Community Bank.
The 105 failures are the most in a year since 1992 at the height of the savings-and-loan crisis. They have cost the federal deposit insurance fund about $25 billion so far this year, and hundreds more bank failures are expected to raise the cost to around $100 billion through 2013.
The failure of Partners Bank is expected to cost the deposit insurance fund an estimated $28.6 million, while that of Hillcrest Bank Florida is expected to cost $45 million. American United Bank is expected to cost $44 million, and First Federal will be $59 million. Bank of Elmood's failure is expected to cost the fund $101.1 million, while Riverview Community Bank will cost $20 million.
The Federal Deposit Insurance Corp. took over Partners Bank, a small bank in Naples, Fla., with $68.7 million in assets and $63.4 million in deposits.
Others that failed were: Hillcrest Bank Florida, also based in Naples, which had $83 million in assets and $84 million in deposits; Flagship National Bank in Bradenton, Fla., with total assets of $190 million and total deposits of about $175 million; and American United Bank in Lawrenceville, Ga., with $111 million in assets and $101 million in deposits.
Also failing were: Bank of Elmwood in Racine, Wis., with $327.4 million in assets and $273.2 million in deposits; and Riverview Community Bank, based in Otsego, Minn., with $108 million in assets and total deposits of about $80 million.
Stonegate Bank, based in Fort Lauderdale, Fla., agreed to buy the deposits and assets of Partners Bank as well as the deposits of Hillcrest Bank Florida and $28 million of its assets. Ameris Bank, based in Moultrie, Ga., is buying the deposits and assets of American United Bank. First Federal Bank of Florida in Lake City agreed to assume all of the deposits of Flagship National Bank.
Tri City National Bank of Oak Creek, Wis., agreed to assume all the deposits of Bank of Elmwood. Central Bank of Stillwater, Minn., agreed to assume all of the deposits of Riverview Community Bank.
The 105 failures are the most in a year since 1992 at the height of the savings-and-loan crisis. They have cost the federal deposit insurance fund about $25 billion so far this year, and hundreds more bank failures are expected to raise the cost to around $100 billion through 2013.
The failure of Partners Bank is expected to cost the deposit insurance fund an estimated $28.6 million, while that of Hillcrest Bank Florida is expected to cost $45 million. American United Bank is expected to cost $44 million, and First Federal will be $59 million. Bank of Elmood's failure is expected to cost the fund $101.1 million, while Riverview Community Bank will cost $20 million.
Tuesday, October 20, 2009
Bank of China executive to take senior position in IMF
The Bank of China announced today vice president Zhu Min had resigned, amid speculation that he is set to take a senior position at the International Monetary Fund (IMF).
Zhu, 56, was leaving the state-run bank to join another organisation, the Chinese lender said in a statement to the Shanghai stock exchange, without elaborating.
"Bank of China Co received the resignation from vice president Zhu Min on October 16. Mr Zhu resigned from the position of vice president because he will transfer to another post," the statement said.
State media has said Zhu, who would first take up a position at the central People's Bank of China would be the first Chinese national to hold a major post within the Washington-based fund.
A spokesman for the Bank of China declined to comment on Zhu's resignation and no one at the IMF was immediately available to comment.
Zhu, 56, was leaving the state-run bank to join another organisation, the Chinese lender said in a statement to the Shanghai stock exchange, without elaborating.
"Bank of China Co received the resignation from vice president Zhu Min on October 16. Mr Zhu resigned from the position of vice president because he will transfer to another post," the statement said.
State media has said Zhu, who would first take up a position at the central People's Bank of China would be the first Chinese national to hold a major post within the Washington-based fund.
A spokesman for the Bank of China declined to comment on Zhu's resignation and no one at the IMF was immediately available to comment.
Friday, October 16, 2009
Major Chinese banks to watch lending rates
Major Chinese banks must make sure their lending does not run out of control and that their capital adequacy ratios do not deteriorate, the country's banking regulator said in comments published on Friday.
The instruction was relayed to the lenders by Jiang Dingzhi, a vice-chairman of the China Banking Regulatory Commission (CBRC), at a meeting on Wednesday.
His comments are the latest sign of unease among regulators about the risks that banks are taking by ramping up lending to support the government's 4 trillion yuan ($585 billion) economic pump-priming package.
"Banks should make efforts to keep their lending operations stable," Jiang said in a statement posted on the CBRC's website, www.cbrc.gov.cn.
"Big banks should continue to enhance their management of credit risk to ensure the stable operation of China's banking system," he added.
By using the word "stable" in this context, Jiang is sending a message that the CBRC does not want big banks to resume lending at the breakneck pace of the first few months of the year.
The rate slowed somewhat last quarter, in line with seasonal patterns, but annual yuan lending growth still jumped to 34.2 percent in the year to September from 14.6 percent last October.
China's five biggest banks accounted for 47.4 percent of the total of 8.67 trillion yuan in new loans extended in the first nine months.
The five are Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications.
Jiang said the banks had achieved good results so far this year but they needed to be alert to new challenges, which he did not identify.
Reiterating comments made last Friday by CBRC Chairman Liu Mingkang, Jiang said the big banks must increase their loan loss provisions to at least 150 percent of their non-performing loans.
Jiang said banks must also be more rigorous in assessing the performance of their borrowers in order to quickly identify non-performing loans.
source:reuters
The instruction was relayed to the lenders by Jiang Dingzhi, a vice-chairman of the China Banking Regulatory Commission (CBRC), at a meeting on Wednesday.
His comments are the latest sign of unease among regulators about the risks that banks are taking by ramping up lending to support the government's 4 trillion yuan ($585 billion) economic pump-priming package.
"Banks should make efforts to keep their lending operations stable," Jiang said in a statement posted on the CBRC's website, www.cbrc.gov.cn.
"Big banks should continue to enhance their management of credit risk to ensure the stable operation of China's banking system," he added.
By using the word "stable" in this context, Jiang is sending a message that the CBRC does not want big banks to resume lending at the breakneck pace of the first few months of the year.
The rate slowed somewhat last quarter, in line with seasonal patterns, but annual yuan lending growth still jumped to 34.2 percent in the year to September from 14.6 percent last October.
China's five biggest banks accounted for 47.4 percent of the total of 8.67 trillion yuan in new loans extended in the first nine months.
The five are Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications.
Jiang said the banks had achieved good results so far this year but they needed to be alert to new challenges, which he did not identify.
Reiterating comments made last Friday by CBRC Chairman Liu Mingkang, Jiang said the big banks must increase their loan loss provisions to at least 150 percent of their non-performing loans.
Jiang said banks must also be more rigorous in assessing the performance of their borrowers in order to quickly identify non-performing loans.
source:reuters
Tuesday, October 13, 2009
BOJ may withdraw support for corp finance
The Bank of Japan may decide to start withdrawing support for corporate finance on Wednesday, despite government criticism, at a policy meeting that may set the tone for its relationship with the new government.
The outcome of the two-day meeting has few implications for the corporate finance market, which has recovered from the shock of the financial crisis triggered by the collapse of Lehman Brothers last year.
But it will signal that the Bank of Japan, like its central bank peers in other major economies, wants to start edging monetary policy back towards more normal settings, as it judges that the credit and money markets have returned to normal and no longer need central bank help
The outcome of the two-day meeting has few implications for the corporate finance market, which has recovered from the shock of the financial crisis triggered by the collapse of Lehman Brothers last year.
But it will signal that the Bank of Japan, like its central bank peers in other major economies, wants to start edging monetary policy back towards more normal settings, as it judges that the credit and money markets have returned to normal and no longer need central bank help
BOJ left its policy rate unchanged at 0.10 pc
The Bank of Japan kept markets guessing on Wednesday on the future of its support for corporate finance, avoiding any reference to the measures in a statement after its latest policy review.
The central bank had been tipped to decide whether it would start withdrawing support for corporate finance, despite government criticism that the economy was still unstable.
Although it made no reference to funding measures in its statement, the central bank repeated its assessment that financial conditions were increasingly showing signs of improvement.
It left its policy rate unchanged at 0.10 percent, as a widely expected, and upgraded its view on the economy, saying it was recovering.
The central bank had been tipped to decide whether it would start withdrawing support for corporate finance, despite government criticism that the economy was still unstable.
Although it made no reference to funding measures in its statement, the central bank repeated its assessment that financial conditions were increasingly showing signs of improvement.
It left its policy rate unchanged at 0.10 percent, as a widely expected, and upgraded its view on the economy, saying it was recovering.
Thursday, October 8, 2009
Bank of England left interest rates at 0.5 percent
The Bank of England left interest rates at a record low of 0.5 percent for the seventh month running on Thursday and said it would keep its 175 billion pound asset buying programme in place, as expected.
Focus has now switched to the November meeting when the Monetary Policy Committee will have new economic forecasts, though most analysts do not expect the BoE will change policy then either given Britain may now be emerging from recession.
"Right now we believe they will announce no further additions to the purchase programme in November, but much will depend on the economic news between now and then," said George Buckley, chief UK economist at Deutsche Bank.
A sizeable minority still see a further expansion of the quantitative easing programme which pumps money into the economy because any recovery is likely to be fragile.
UK government bond prices fell after Thursday's no-change verdict as some investors had priced in a chance of the BoE expanding the programme which mostly buys gilts.
BoE Governor Mervyn King had actually wanted to raise the asset-buying total to 200 billion pounds in August but, along with two other members, was outvoted by the rest of the MPC.
On Thursday, the BoE simply said it would complete its scheduled asset-buying programme next month and keep the scale under review.
In either case, policy is likely to remain ultra-loose for months yet as policymakers around the world have been stressing now is not the time to withdraw the extraordinary support they have ploughed into their economies over the last year
British economic output in the second quarter of 2009 was 5.5 percent lower than a year ago and policymakers are worried it will take years for the level of GDP to get back to where it once was, entailing huge job losses in the interim.
And while most recent data have pointed to the worst being over for the economy, figures this week showing a shock 1.9 percent fall in August manufacturing output raised doubts over whether the economy started growing again in the third quarter.
"We had previously been confident that GDP growth would turn positive, thus heralding the end of the recession, but it now seems to be a much tighter call," said Philip Shaw, chief economist at Investec.
Thursday marks the first anniversary of the major central banks' surprise coordinated rate cut to bolster confidence after the collapse of Lehman Brothers.
The European Central Bank is also expected to hold interest rates at a record low of 1 percent when it announces its decision at 1145 GMT.
source :reuters
Focus has now switched to the November meeting when the Monetary Policy Committee will have new economic forecasts, though most analysts do not expect the BoE will change policy then either given Britain may now be emerging from recession.
"Right now we believe they will announce no further additions to the purchase programme in November, but much will depend on the economic news between now and then," said George Buckley, chief UK economist at Deutsche Bank.
A sizeable minority still see a further expansion of the quantitative easing programme which pumps money into the economy because any recovery is likely to be fragile.
UK government bond prices fell after Thursday's no-change verdict as some investors had priced in a chance of the BoE expanding the programme which mostly buys gilts.
BoE Governor Mervyn King had actually wanted to raise the asset-buying total to 200 billion pounds in August but, along with two other members, was outvoted by the rest of the MPC.
On Thursday, the BoE simply said it would complete its scheduled asset-buying programme next month and keep the scale under review.
In either case, policy is likely to remain ultra-loose for months yet as policymakers around the world have been stressing now is not the time to withdraw the extraordinary support they have ploughed into their economies over the last year
British economic output in the second quarter of 2009 was 5.5 percent lower than a year ago and policymakers are worried it will take years for the level of GDP to get back to where it once was, entailing huge job losses in the interim.
And while most recent data have pointed to the worst being over for the economy, figures this week showing a shock 1.9 percent fall in August manufacturing output raised doubts over whether the economy started growing again in the third quarter.
"We had previously been confident that GDP growth would turn positive, thus heralding the end of the recession, but it now seems to be a much tighter call," said Philip Shaw, chief economist at Investec.
Thursday marks the first anniversary of the major central banks' surprise coordinated rate cut to bolster confidence after the collapse of Lehman Brothers.
The European Central Bank is also expected to hold interest rates at a record low of 1 percent when it announces its decision at 1145 GMT.
source :reuters
Bank irregularity: more Nigerian bank officials to be quizzed
Three more former top bank executives will be quizzed by the Nigerian anti-corruption agency in connection with the alleged debt irregularities, police said.
"The three newly sacked managing directors Francis Atuche (Bank PHB), Charles Ojo (Spring Bank) and Ike Oraekwotu (Equitorial Trust Bank) will be interrogated by the Economic and Financial Crimes Commission (EFCC) officers," police spokesperson Femi Babafemi said yesterday.
The trio were sacked on October 2.
Earlier, five bank chiefs were removed by the Central Bank of Nigeria (CBN) nearly two months ago for "financial impropriety" and they were arrested and produced before a local court which granted them bail.
source:PTI
"The three newly sacked managing directors Francis Atuche (Bank PHB), Charles Ojo (Spring Bank) and Ike Oraekwotu (Equitorial Trust Bank) will be interrogated by the Economic and Financial Crimes Commission (EFCC) officers," police spokesperson Femi Babafemi said yesterday.
The trio were sacked on October 2.
Earlier, five bank chiefs were removed by the Central Bank of Nigeria (CBN) nearly two months ago for "financial impropriety" and they were arrested and produced before a local court which granted them bail.
source:PTI
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