Posts belonging to Category FOREX



White House: Trump will not immediately bolt NAFTA

Trump wants to renegociate NAFTA

President Donald Trump on Wednesday told the leaders of Mexico and Canada that he will not immediately pull out of the North American Free Trade Agreement, just hours after administration officials said he was considering a draft executive order to do just that.

The White House made the surprise announcement in a read-out of calls between Trump, Mexican President Enrique Pe?a Nieto and Canadian Prime Minister Justin Trudeau.

http://www.abcnews.go.com…  Thu.,  27 April 2017

The world’s 100 largest banks

23 banks with more than a $1 trillon of assets

China’s largest banks kept growing in 2016, but the currency turmoil unleashed by Brexit battered European companies in S&P Global Market Intelligence’s latest global bank rankings.

China’s “Big Four” — Industrial & Commercial Bank of China Ltd., China Construction Bank Corp., Agricultural Bank of China Ltd. and Bank of China Ltd. — all maintained their rank as the four largest banks in the world with a combined $11.910 trillion in assets as of Dec. 31, 2016. Tokyo-based Mitsubishi UFJ Financial Group Inc. retained its place as the world’s fifth largest bank at $2.590 trillion in assets.

Brexit was not kind to European currencies in 2016 — the euro bought $1.055 at the end of 2016, compared to $1.086 a year earlier, while the British pound fell to $1.235 from $1.474 over the same period. The drop in the pound alone knocked $289.53 billion off of the asset value for London-based Barclays Plc, which fell two spots in the ranking to No. 17 with $1.496 trillion in assets; the bank’s assets would have been $1.785 trillion if converted to U.S. dollars using the year-end 2015 exchange rate.

http://www.snl.com…  Fri.,  21 April 2017

China to post solid, steady first-quarter growth

Building booms, but debt risks loom

China is expected to report on Monday that its economy grew 6.8 percent in the first quarter, well above Beijing’s full-year target, buoyed by surging government infrastructure spending and a gravity-defying property market that is showing signs of overheating. A strong reading could help wobbly global financial markets but add to worries that China’s government is still relying too heavily on old growth engines like stimulus and not doing enough to tackle risks from an explosive build-up in debt.

Though policymakers have pledged repeatedly to push reforms to head off financial risks and asset bubbles, the government is seeking to keep the world’s second-largest economy on an even keel ahead of a major leadership transition later this year.

http://www.reuters.com…  Mon.,  17 April 2017

Banks are now assuming there will be a “hard Brexit”

HSBC Says Companies Already Re-Routing Business

HSBC Holdings Plc said some of its largest clients have already asked for their business to be routed through the bank’s offices in mainland Europe and aren’t waiting to see what Brexit deal the U.K. hammers out with the continent’s trading bloc.

http://www.bloomberg.com…  Fri.,  14 April 2017

The City of London under threat

London will lose  a €930 billion  daily business — after Brexit

London will lose the business of euro clearing — a €930 billion (£792 billion, $995 billion) daily business — after Brexit, says France’s finance minister Michel Sapin.

Sapin said in an interview with the Financial Times that it is not possible for the City to continue the lucrative clearing business after Britain leaves the European Union on March 29, 2019 because it would hurt the EU’s “sovereignty.”

http://www.businessinsider.com…  Mon.,  10 April 2017

Trump-Xi meeting

How Trump seeks to push his trade agenda forward

While Trump’s longstanding rhetoric on the trading relationship will hang over the meeting, the encounter also comes as Trump nears three months in office having done little to make good on his bold promise to fundamentally alter the trading relationship.
Trump, it seems, has held his fire in favor of making a play to improve the trading relationship through direct talks. But how much will Trump be able to draw out of his counterpart?
While Trump has focused the brunt of his rhetoric on simply reversing the United States’ $347 billion trade deficit with China, experts say an improved trading relationship will rest not on China simply changing that top-line number, but fundamentally altering the role it plays in its economy.
http://www.cnn.com…  Thu,  06 April 2017

Brexit: JPMorgan Said in Talks for Dublin Office

Citi Weighs EU Unit

JPMorgan Chase & Co. is in talks to buy a Dublin office building as the bank considers expanding in the Irish capital as one of its options for when Britain leaves the European Union, according to people with knowledge of the matter. The lender is negotiating the potential purchase of a building being developed by a venture between Kennedy Wilson Holdings Inc. and Ireland’s National Asset Management Agency, the people said, asking not to be identified because the plans are private. The building at 200 Capital Dock has about 130,000 square feet (12,000 square meters) of space, the people said. That’s enough for more than 1,000 workers.
http://www.bloomberg.com…  Fri.,  31 March 2017

Brexit: Lloyd’s of London chooses Brussels to set up it’s Hub

London’s 329-year old insurance market is setting up in Brussels to counter Brexit effects

Lloyd’s of London, the insurance market founded in the British capital in 1688, plans to open a European Union hub in Brussels following the U.K. vote to leave the bloc. The company expects the office to be operational at the beginning 2019, it said in a statement on Thursday, without giving further details on the move.

“The decision of the U.K. to leave the European Union has obvious implications for the market and our business with Europe,” Chairman John Nelson said in the company’s annual report. “Finding the right solution has been a top priority over the last nine months.”
http://www.bloomberg.com…  Thu.,  30 March 2017

Brexit: What is Article 50 ?

The only explanation you need to read

Brexit is the greatest disaster to befall the European Union in its 59-year history but the referendum in which British voters opted to leave the European Union does not automatically signal the country’s exit. That is the job of Article 50Britain’s complex negotiations to exit the EU can only begin when Article 50 of the Treaty of Lisbon is formally triggered by the UK.

http://www.telegraph.co.uk…  Mon.,  27 March 2017

EU chief Juncker warns against EU-US trade war

A trade war would neither be in Europe’s nor the USA’s interest

European Commission President Jean-Claude Juncker warned in a newspaper interview that a trade war between the United States and Europe would not be good for either.Asked by Bild am Sonntag newspaper whether Europe could withstand a trade war with the United States, Juncker said: “A trade war would neither be in Europe’s nor the USA’s interests.” He said it was necessary to take protectionist comments being made by U.S. President Donald Trump’s administration seriously and also to be prepared.

http://www.reuters.com…  Mon,  20 March 2017