Faber News Flow

https://www.scmp.com/economy/china-economy/article/3005957/china-issues-record-new-loans-first-quarter-2019-beijing Chinese banks issued a record US$865 billion of new loans in the first quarter of 2019 In March, banks issued US$251 billion in loans, the second highest behind only March 2009.

Europe Stoxx 600 Index erased earlier losses and U.S. futures extended gains after China reported a sharp rebound in March exports even as imports shrank for a fourth straight month and at a sharper pace, painting a mixed picture of the economy as trade talks with the United States reach their endgame. Export growth rebounded significantly to +14.2% yoy in March,the strongest growth in five months and  well above consensus expectations,  and up from -20.8% year-on-year in February, primarily on the Chinese New Year distortion. Shipments picked up around 3% month-on-month, suggesting some improvement in foreign demand, Julian Evans-Pritchard, senior China economist at Capital Economics, said in a note. But he said exports have yet to fully recover from a sharp slowdown late last year. "With global growth set to remain weak in the coming quarters, a strong rebound in exports looks unlikely," he said. Adding to the worries, China's imports fell more than expected, suggesting

One month ago,   we asked  if that was it for China's "Shanghai Accord 2.0"? Turns out the answer was a resounding " no. " As we noted  at the time , one month after the PBOC injected a gargantuan 4.64 trillion yuan ($685 billion) into the economy - more than the GDP of Saudi Arabia - in the month of January in the country's broadest credit measure, the All-System Financing Aggregate a credit injection that was so massive it even prompted the fury of  China's prime minister Li Keqiang who lashed out  at the central bank for its unprecedented debt generosity in a time when China was still pretending to be on a deleveraging path, in February the PBOC again surprised China-watchers, this time to the downside, when the Chinese central bank reported that aggregate financing increased by a paltry 703 billion yuan, roughly half the expected 1.3 trillion, the lowest print in the revised series history. However, to assuage fears that China was turning off the cre

https://in.reuters.com/article/china-economy-loans-idINKCN1RO12W Fabrizio

https://www.reuters.com/article/china-economy-loans-idUSL3N21Q1YT Fabrizio

BERLIN (Reuters) - Germany faces the risk of steep U.S. tariffs on cars and a no-deal Brexit, a double whammy which could bring a golden decade of growth in Europe's powerhouse economy to an end. Chancellor Angela Merkel and her ministers are working behind the scenes to mitigate the impact should the worst-case scenario come to pass. A stagnating German economy or even a recession would hold back the euro zone as a whole and cast uncertainty over the European Central Bank's planned exit from its loose monetary policy. The Berlin government is already facing a budget shortfall of up to 25 billion euros by 2023 as the economic slowdown means tax revenues will come in below previous estimates, according to a finance ministry document. Nonetheless, faced with the threat of a recession, Finance Minister Olaf Scholz is prepared to bend Germany's strict debt rules, a senior government official told Reuters on condition of anonymity. "If the double whammy should materialize,

The ECB is prepared to support the European economy. Yesterday's ECB meeting was one of transition and did not give rise to a change in monetary policy. Mario Draghi nonetheless took a slightly more cautious tone on the economic context owing to the ongoing deterioration of the manufacturing sector. Although risks are still oriented to the downside on the scenario, the ECB still expects to see an improvement in growth during the year, while certain negative factors are starting to fade (automobile sector and 'yellow vests'). That said, were the economic situation or the transmission of monetary policy via the banking channel to deteriorate more than expected, Mario Draghi is prepared to take any measures that are needed. His action could require more favourable conditions for the TLTRO planned in September or new measures to offset the impact of negative rates on banks' ROE and thus their ability to finance the economy. While certain members of th

10:24 11/04/2019 The International Monetary Fund warned of "dangerous" consequences for the U.S. economy if moves such as President  Donald Trump's calls for Federal Reserve interest-rate accommodation lead to monetary policy mistakes. "Undermining central-bank independence would be dangerous," Tobias Adrian, director of the fund's monetary and  capital-markets department, said when asked about Trump's recent criticism of the Fed. He spoke as the IMF's  spring meetings were getting under way in the U.S. capital. The Fed left its policy rate unchanged last month, and Chairman Jerome Powell, whom Trump installed in February 2018,  said rates could be on hold for some time as global risks weigh on the economic outlook and inflation remains muted.  The IMF supports the Fed's stance on monetary policy, Adrian said. The IMF's latest Global Financial Stability Report warns that easy monetary policy and financial conditions may raise  already high de

10:21 11/04/2019 Bloomberg Markets "Their structural overhaul is more about improving profit through cost cuts rather than through raising the top line," said Kengo Sakaguchi, an analyst at Japan Credit Rating Agency. "Reducing costs may help its earnings improve temporarily,  but unless its top line grows afterward, the outlook will remain murky." 10:08 11/04/2019 Nomura Holdings Inc.'s latest attempt to revamp its international business is falling flat with investors, who've never been so downbeat on the stock relative to global peers. Japan's largest brokerage has dropped almost 3 percent in Tokyo trading  since Chief Executive Officer Koji Nagai unveiled a sweeping overhaul plan on April 4, bringing its six-month slide  to 23 percent. That's the second-biggest decline among major securities firms worldwide after Societe Generale SA,  outpacing even notoriously poor performers like Deutsche Bank AG. Nomura's valuation discount versus global fi