Tag Archives: Nordic States

Greenback bounces after end-2019 selloff, yuan shrugs off coverage easing

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(Reuters) – The greenback snapped a six-day dropping streak so as to add 0.25% on Thursday, the primary buying and selling day of 2020, pushing the euro off five-month highs whereas the offshore yuan shrugged off reserve ratio cuts that might add $115 billion value of liquidity.

FILE PHOTO: U.S. 100 greenback notes are seen on this image illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Gained/

Buying and selling might stay skinny till Tuesday, when most European international locations open after Monday’s Epiphany vacation however market gamers will likely be relieved the greenback navigated the vacation interval with out experiencing the cash market squeezes many had feared.

The greenback index slumped 0.4% on New Yr Eve as massive banks took solely a small portion of the $150 billion supplied by the U.S. Federal Reserve’s in a single day repo operation and borrowing prices fell to the bottom stage since March 2018.

(Graphic: The Fed dives into the repo market png click on, right here)

Whereas wariness stays that there might be a repeat of final January’s “flash crash”, when large stop-loss promoting swept via holiday-thinned markets, analysts mentioned the Fed’s liquidity injections had lowered the danger.

“There’s nothing basic…on the finish of final 12 months the greenback offered off fairly sharply so we’re seeing an easing in among the greenback promoting stress,” mentioned Lee Hardman, senior FX strategist at MUFG.

“The liquidity squeeze didn’t materialise in order that’s contributing to stability in broader monetary markets…However the greenback story has been turning detrimental in current months, partly due to motion taken by the Fed to ease greenback liquidity,” Hardman mentioned, referring to the U.S. central financial institution’s steadiness sheet growth re-launched in October.

Having ended December nearly 2% decrease in opposition to a basket of currencies, the greenback inched as much as 96.65 whereas in opposition to the euro it was at $1.119, knocking the only forex from its highest stage since early August of $1.1249.

The dollar index ended 2019 nearly flat.

The Chinese language yuan closed at 6.9631 to the greenback, its strongest shut since Aug. 2, and in addition firmed offshore after small downward strikes triggered by Wednesday’s transfer to chop the amount of money that banks should maintain, releasing $115 billion value of funds to assist the economic system.

The transfer had been broadly anticipated following Premier Li Keqiang’s pledge final month to unleash extra stimulus.

(Graphic: China lending fee and RRR click on, right here)

Traders at the moment are ready for the U.S. ISM manufacturing survey due on Friday. Throughout a lot of Asia and Europe, closing buying managers indexes painted a barely brighter image, with French, German and euro zone readings a contact higher than advance PMIs.

However additionally they confirmed an 11th straight month of contracting euro zone exercise.

The euro slipped 0.2%, having strengthened 1.8% in opposition to the greenback final month. Nevertheless, euro zone bond yields prolonged their rise and inflation expectations rose to the very best since July.

“Increased bond yields are more likely to hold the euro’s micro-rally going, wildfires will hold a lid on Aussie greenback, and PMIs and oil are supporting Norwegian, Swedish and Canadian currencies,” Societe Generale informed purchasers.

The Swedish crown briefly firmed 0.3% in opposition to the euro after PMIs rose in December following three months of declines, though they nonetheless languished in contraction territory.

The Norwegian crown inched to 3-1/2 month highs after firmer PMIs, additionally benefiting from firmer crude costs.

The Australian greenback slipped 0.3%.

U.S. President Donald Trump mentioned on Tuesday that Section 1 of a commerce take care of China could be signed on Jan. 15 on the White Home. Markets are ready for additional particulars

Reporting by Sujata Rao; Modifying by Frances Kerry, Kirsten Donovan

Our Requirements:The Thomson Reuters Belief Rules.

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Swedbank chairman quits over money laundering scandal

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STOCKHOLM (Reuters) – Swedbank Chairman Lars Idermark has quit only a week after the lender’s chief executive was ousted over her handling of a money laundering scandal, saying the controversy threatened to distract from his role as head of forestry group Sodra.

FILE PHOTO: Swedbank Acting CEO Anders Karlsson and Chairman of the Board Lars Idermark attend a news conference in Stockholm, Sweden March 28, 2019. REUTERS/Johan Ahlander/File Photo

The bank, Sweden’s biggest mortgage lender, had fired its CEO Birgitte Bonnesen last week only an hour before a heated annual shareholder meeting marked by disgruntled investors rounding on her handling of the money laundering allegations.

Allegations against Swedbank, largely reported by Swedish TV, have linked it to a scandal at Danske Bank, which faces potential lawsuits, fines and sanctions after admitting last year that 200 billion euros ($225 billion) of suspicious payments had flowed through its Estonian branch between 2007 and 2015.

“Following recent strong debate about Swedbank and questions about the bank’s control of suspicious money laundering in the Baltics, I have concluded that the media attention is not compatible with my CEO role at Sodra,” Idermark said in a statement on Friday.

“Therefore, I have decided that the best alternative is to leave the position as chair of Swedbank with immediate effect.”

In connection with last week’s meeting, where many investors were vocal in their criticism of the bank’s management, third-largest shareholder Alecta had warned it could demand further dismissals if the board did not take immediate action to restore confidence in the bank.

“It’s a welcomed and expected decision, but it’s shouldn’t have taken so long; it would have been better if he resigned before the AGM,” Swedish Shareholders’ Association chief Joacim Olsson told Reuters.

Olsson called on the bank to put all cards on the table, including internal investigations into its dealings in the Baltics.

Alecta on Friday said that the Swedbank nomination committee should continue to strengthen the board.

“They need to be thorough, but it shouldn’t take too long,” an Alecta spokesman said.

Both Bonnesen and Idermark had been under fire for the bank’s communications and how they have handled the allegations, which have sparked a four-way investigation by regulatory authorities in Sweden, Estonia, Latvia and Lithuania. Swedbank shares, meanwhile, have lost about a third of their value.

The shares were unchanged at 146.50 Swedish crowns by 0805 GMT on Friday, having recovered from a seven-year low of 127.2 crowns set on March 29 when the departure of its CEO was announced.

The committee in charge of the bank’s executive appointments said it would intensify work on strengthening the board, including finding a new chairman. The board said it would call a special shareholder meeting to confirm any appointment.

($1 = 0.8908 euros)

Reporting by Helena Soderpalm and Johannes Hellstrom; Additional reporting by Johan Ahlander; Editing by David Holmes and David Goodman

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