(Add HKMA comment)
HONG KONG, March 23 (Reuters) – The Hong Kong Monetary Authority (HKMA) on Thursday lifted its base rate charged through the overnight discount window by 25 basis points to 5.25%, hours after the U.S. Federal Reserve delivered a rate rise of the same margin.
Hong Kong's monetary policy moves in lock-step with the U.S. as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.
"The Fed's rate-hike decision is consistent with market expectation, but there will continue to be considerable uncertainties on the interest rate path in the US," HKMA said in a statement.
The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point, but indicated it was on the verge of pausing further increases in borrowing costs after the recent collapse of two U.S. banks.
The Federal Open Market Committee policy statement also said the U.S. banking system was "sound and resilient".
The HKMA said: "Individual banks in the US had exhibited financial health and liquidity problems recently, which might result in credit tightening."
"It is too soon to assess how much this will further affect economic activities and influence monetary policy."
The financial and monetary markets of Hong Kong continued to operate in a smooth and orderly manner, despite the volatility of overseas markets, and Hong Kong dollar interbank rates might remain at elevated levels for some time, the HKMA added. (Reporting by Donny Kwok; Editing by Himani Sarkar and Bradley Perrett)
Big Japanese manufacturers remained pessimistic about business conditions for a third straight month in March, the closely watched Reuters Tankan survey showed, reflecting worry about slowing global growth that could hurt the country's export engine. Service-sector firms' mood rebounded in a sign of domestic demand-driven recovery, in which the prospects of higher wages among big firms at the spring labour talks may encourage households to spend their way out of the COVID-induced doldrums. The Reuters Tankan, designed to closely track the Bank of Japan's key quarterly tankan survey, suggested the central bank's survey due next April 3 will likely show deterioration in business confidence at big manufacturers.
(Bloomberg) — Regulators in Hong Kong and Singapore moved to reassure investors that subordinated debt holders have priority over equity holders in the event of a bank being wound up, joining global peers in seeking to remove uncertainty.Most Read from BloombergFinally, a Serious Offer to Take Putin Off Russia’s HandsBomb Threat Called In to New York Court Where Trump Hearing HeldAckman Warns of Accelerated Deposit Outflows After Fed DecisionA New Chapter of Capitalism Emerges From the Banking
HONG KONG (Reuters) -The Hong Kong Monetary Authority (HKMA) on Thursday lifted its base rate charged through the overnight discount window by 25 basis points to 5.25%, hours after the U.S. Federal Reserve delivered a rate rise of the same margin. Hong Kong's monetary policy moves in lock-step with the U.S. as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar. "The Fed's rate-hike decision is consistent with market expectation, but there will continue to be considerable uncertainties on the interest rate path in the US," HKMA said in a statement.
"Interest rate and economic uncertainties posed a large risk to the near-term demand," Chief Executive Officer Jeffrey Mezger said on a post-earnings call with analysts. While the outlook for the housing market largely remained unclear, mortgage rates, which in February resumed their upward trend, are falling again in tandem with a sharp fall in U.S. Treasury yields after the recent turmoil in the banking sector sparked fears of contagion. Interest rates on the most popular U.S. home loan tumbled by the most in four months last week after emergency measures taken to shore up the wider banking system drove a mad dash by investors to the safety of government bonds, the Mortgage Bankers Association said on Wednesday.
Hershey Co is looking to reduce "trace" amounts of lead and cadmium in its chocolate, chief financial officer Steve Voskiul told Reuters on Wednesday, after Consumer Reports found that some dark chocolate bars had potentially harmful levels of the heavy metals. Consumer Reports, a nonprofit consumer group, tested chocolate bars including those made by Hershey late last year and found that some of them contained possibly harmful levels of lead, cadmium or both for people who eat more than one ounce per day.
As the Fed raises interest rates, here are the biggest winners and losers from its latest decision.
The last few weeks have been rocky, with the collapse of Silicon Valley Bank, and the crypto-heavy Silvergate and Signature banks, dominating the headlines. For a short time, it seemed that the contagion would spread to the global financial giants. Now, however, it appears that we’ve managed to avoid a true banking crisis – and Raymond James’ chief investment officer Larry Adam has pointed out several reasons why. For starters, Adam notes that Credit Suisse, despite its troubles, found a way out
Elon Musk on late Monday offered his opinion on what the Federal Reserve should do with its benchmark interest rate. The Fed's FOMC is meeting for two days this week.
Based on the average brokerage recommendation (ABR), Medical Properties (MPW) should be added to one's portfolio. Wall Street analysts' overly optimistic recommendations cast doubt on the effectiveness of this highly sought-after metric. So, is the stock worth buying?
A "bull case" scenario for the shares of beleaguered First Republic Bank as it considers its options became more difficult on Wednesday after Treasury Secretary Janet Yellen said there is no discussion on insurance for all bank deposits without approval from the U.S. Congress. First Republic, whose shares have lost much of their value since the banking crisis started in the U.S. on March 8, is among banks speaking to peers and investment firms about potential deals in the wake of U.S. regulators' taking over Silicon Valley Bank and Signature Bank following bank runs. Morgan Stanley analyst Manan Gosalia, in a report earlier this week, set a target price of $54 for First Republic shares in a best-case scenario.
The legendary investor published a chart which quantifies the uninsured clients and unrealized capital losses for major regional banks.
Nvidia ‘s latest rally has the stock less than $10 billion away from passing Berkshire Hathaway to become the fifth largest by market capitalization. At that point Nvidia stock had fallen 62% from the start of 2022 through its low on Oct. 14, leaving it with a market cap of just $279.6 billion, as worries about the chip sector and valuation weighed on the shares. Berkshire, on the other hand, dropped 12% through its own low on Oct. 12, when it was valued at $588.5 billion.
UBS on Sunday agreed to buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) in stock and agreed to assume up to 5 billion francs ($5.4 billion) in losses, in a shotgun merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. Klein, a veteran dealmaker, was merging his eponymous advisory boutique into Credit Suisse's investment banking operations to create CS First Boston as a standalone business which he would have led from New York. UBS has now assigned a legal team to examine how to void the contract Credit Suisse signed with Klein in the cheapest way possible, according to the FT report, which cited people with direct knowledge of the matter.
With the recent collapse of two banks serving as a backdrop, the Federal Reserve hiked interest rates another 25 basis points on Wednesday. The decision to raise the federal funds rate to a 4.75-5% target range comes on the heels of the … Continue reading → The post Fed's Latest Rate Hike: What Retirees Need to Know appeared first on SmartAsset Blog.
Before this sale, ARK Invest owned 9.9 million shares of the crypto exchange worth $575 million.
Abel, who heads the non-insurance operations of Berkshire (ticker: BRK.A, BRK.B), purchased 55 class A shares at a price of $447,259 on Friday, lifting his stake in the A shares to 228 shares. Berkshire shares rose 1% Tuesday to $460,515, and the B shares gained 0.9% to $303.85. The purchases were made on behalf of the Gregory Abel Revocable Trust on behalf of his wife, children, and other family members.
Here are key takeaways from the Federal Reserve's interest-rate decision and statement on Wednesday: Federal Open Market Committee votes unanimously to raise benchmark rate by 25 basis points, as forecast, to target range of 4.75%-5%; second straight hike of that size following December's 50 basis-point hike and the four straight 75 basis-point moves before that “Dot plot” of rate forecasts shows 5.1% median estimate for end-2023, unchanged from last update in December; end-2024 projection rises
Being profitable on paper belies the tough situation for GameStop.
(Bloomberg) — Ford Motor Co.’s Jim Farley was told recently of a survey that found investors overwhelmingly believe legacy automakers can’t be cost competitive with Tesla Inc.Most Read from BloombergBomb Threat Called In to New York Court Where Trump Hearing HeldFed Caught Between Inflation and Bank CrisisA New Chapter of Capitalism Emerges From the Banking CrisisXi Aligns With Putin Against US, But Hesitates on Gas DealFinally, a Serious Offer to Take Putin Off Russia’s Hands“I’m with them,” t
(Bloomberg) — Asian stocks projected relative calm Thursday after Treasury Secretary Janet Yellen rattled US bank shares and the Federal Reserve pushed back against bets for interest rate cuts this year. Most Read from BloombergFinally, a Serious Offer to Take Putin Off Russia’s HandsBomb Threat Called In to New York Court Where Trump Hearing HeldAckman Warns of Accelerated Deposit Outflows After Fed DecisionA New Chapter of Capitalism Emerges From the Banking CrisisStocks Roiled by Fed Day’s N