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China’s top banks to issue offshore loans to help developers repay debt -sources

China has ordered its top four state-owned banks to issue offshore loans to help developers repay overseas debt, three people with knowledge of the matter told Reuters, in Beijing’s latest support measure for the cash-starved property sector. The regulators have given the banks ‘window guidance’, or verbal orders that leave no paper trail, setting a date of Dec. 10 by which to make loans secured against domestic assets, said two of the sources, who all spoke on condition of anonymity. China has stepped up support in recent weeks to undo ...

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Morgan Stanley making ‘modest’ job cuts; CEO ‘wouldn’t bet against’ Musk

Morgan Stanley (NYSE:MS) is making modest job cuts worldwide, Chief Executive Officer James Gorman said on Thursday, as sluggish deal markets weigh on Wall Street profits. “Some people are going to be let go,” Gorman said at the Reuters NEXT conference, without specifying numbers. “We’re making some modest cuts all over the globe. In most businesses, that’s what you do after many years of growth.” Corporations have postponed dealmaking as U.S. inflation remains high. That has put pressure on investment banks that earned record profits last year from advising on ...

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Credit Suisse looks to speed up cuts as revenue outlook worsens

Credit Suisse is accelerating cost cuts announced just weeks ago, Chairman Axel Lehmann said on Friday, as client outflows and a slowdown in activity weigh on the Swiss bank’s revenue outlook. “We are really doubling down on the execution,” Lehmann said in a TV interview with Bloomberg a day after Reuters cited sources as saying the embattled bank was looking for ways to speed savings. Credit Suisse said in October it intends to reduce its cost base by around 2.5 billion Swiss francs ($2.67 billion) to about 14.5 billion in ...

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China is a growing threat to national security, U.S. companies and American workers, U.S. Commerce Secretary Raimondo says

It’s now clear to U.S. officials that China, once considered a possible economic and political ally, has become an emerging threat to national security, U.S. companies and American workers, Commerce Secretary Gina Raimondo said Wednesday. “Over the past decade, China’s leaders have made clear that they do not plan to pursue political and economic reform and are instead pursuing an alternative vision of their country’s future,” Raimondo said in a speech at the Massachusetts Institute of Technology. “China’s reprioritization away from economic growth toward national security and its assertive military ...

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World Bank chief says poorest countries owe $62 billion on bilateral debt

The world’s poorest countries now owe $62 billion in annual debt service to official bilateral creditors, an increase of 35% over the past year, World Bank President David Malpass said, warning that the increased burden is increasing the risk of defaults. Malpass told the Reuters NEXT conference in New York that two thirds of this debt burden is now owed to China, providing some details of the development lender’s annual debt statistics report due next week. “I’m worried about a disorderly default process where there’s not a system to really ...

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Euro zone producer prices fall more than expected m/m in Oct

Euro zone producer prices fell more than expected month-on-month in October and decelerated sharply year-on-year, underlining economists’ expectations that inflation may have peaked. The European Union’s statistics office Eurostat said prices at factory gates in the 19 countries sharing the euro fell 2.9% month-on-month in October for a 30.8% year-on-year rise, decelerating from an 41.9% annual increase in September. It is the first time since May 2020 that producer prices have declined month on month. Economists polled by Reuters had expected a 2.0% monthly fall and a 31.5% year-on-year rise. ...

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U.S. Fed policy now more hawkish than policy rules suggest is needed

Federal Reserve interest rate policy has moved beyond the level called for by commonly followed monetary policy rules, according to a report released on Thursday by the Cleveland Fed, pointing to how hawkish the central bank has become in its inflation battle. The Fed’s short-term rate target should be at 3.52% in the final quarter of the year, according to the bank’s latest quarterly estimate of where the key central bank rate should be based on seven different rules. This estimate is under the current 3.75% to 4% federal funds ...

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Reuters poll: U.S. house prices to fall 12% peak to trough – analysts

A retreat in U.S. house prices will extend into next year, although the expected 12% peak-to-trough drop predicted by analysts polled by Reuters would be just about one-third as severe as the last market correction 15 years ago. Such a modest fall after a 40% rise in average house prices over the last two years based in part on a surge in demand for more space during the COVID-19 pandemic will not be enough to make housing affordable, analysts said. House prices have doubled in the last decade but a ...

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Turkish Nov trade deficit surges more than 60% yr-on-yr -ministry

Turkey’s trade deficit jumped 61.6% year-on-year in November to $8.801 billion, the Trade Ministry said on Friday, as surging gold and energy import costs continue to widen the shortfall. Turkey’s exports rose 1.9% to $21.854 billion in November, while imports climbed 14% to $30.655 billion, the data showed. In Jan-Nov period, the trade deficit increased by 153.6% to stand at $99.850 billion, the ministry said. Source: Reuters (Reporting by Ezgi Erkoyun and Ebru Tuncay; Editing by Daren Butler and Ali Kucukgocmen)

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Fed in a flutter as US inflation softens

US inflation surprises on the downside again Federal Reserve Chair, Jerome Powell, tried his best to talk up the prospect of a higher-for-longer interest rate policy story, but the market didn’t believe him yesterday and will be even less inclined to do so after today’s personal income and spending report. The 0.2% month-on-month core Personal Consumer Expenditure deflator outcome (consensus 0.3%) is another inflation surprise with the year-on-year rate slowing to 5% from 5.2%. This is significant as it is the Fed’s favoured measure of inflation and with pipeline price ...

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ECB’s Lagarde warns some fiscal policies in Europe could fuel excess demand

European Central Bank President Christine Lagarde warned on Friday that some European governments’ fiscal policies could lead to excess demand, and that fiscal and monetary policies need to work in synch for sustainable, balanced economic growth. “Fiscal policies that create excess demand in a supply constrained economy might force monetary policy to tighten more than would otherwise be necessary,” Lagarde said at a conference hosted by the Bank of Thailand and Bank for International Settlements in Bangkok. “Regrettably, at the moment, at least some of the fiscal measures that we ...

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U.S. job growth strong in November; wages rise

U.S. employers hired more workers than expected in November and increased wages despite mounting worries of a recession, but that will probably not stop the Federal Reserve from slowing the pace of its interest rate hikes starting this month. The Labor Department’s closely watched employment report on Friday also showed about 186,000 people left the labor force last month, keeping the unemployment rate steady at 3.7%. Labor market tightness and strength keeps the Fed on its monetary policy tightening path at least through the first half of 2023. Fed Chair ...

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Fed’s Barkin: labor supply likely will remain constrained

The United States is likely in a sustained period in which there will remain a shortage of workers, complicating the Federal Reserve’s aim of getting labor demand back into balance, Richmond Fed President Thomas Barkin said on Friday. “Labor supply looks like it will remain constrained…and the Fed’s efforts to bring demand back into balance won’t be easy,” Barkin said in a speech to an event in Virginia, as he pointed to households still having about $1.3 trillion more in savings then they did pre-pandemic and fiscal stimulus in a ...

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German exports fall more than expected as demand cools in Europe, U.S

German exports fell more than expected in October, as high inflation and supply chain snags hit demand in its key trading partners, further raising the spectre of recession for Europe’s largest economy. Exports declined by 0.6% on the month, twice as much as analysts had predicted in a Reuters poll, data from the Federal Statistics Office showed on Friday. October marked the second month in a row of falling exports, after September saw an unexpected drop of 0.5% on the month. Shipments to Germany’s top export partner, the United States, ...

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China central bank says to support growth, sees moderate inflation in 2023

China’s central bank will focus on supporting the slowing economy, People’s Bank of China Governor Yi Gang said on Friday, adding that domestic consumer inflation is likely to stay moderate in 2023. The central bank’s accommodative policy will help support China’s economic recovery and employment, Yi said in a video speech to the Bank of Thailand-BIS conference in Bangkok. “Our focus is growth right now,” Yi said, adding that China’s economic growth is slower than expected due to the impact from the COVID-19 pandemic and other headwinds. Yi said advanced ...

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