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Tuesday, July 16, 2019

European Central Bank News

World Shares Higher on US-China Deal Hopes

Global shares rose on Monday amid growing optimism the United States and China will reach a trade agreement as soon as this month.U.S. President Donald Trump and Chinese President Xi Jinping might seal a formal trade deal around March 27, given progress in talks between the two countries, the Wall Street Journal reported on Sunday.The two nations have imposed tit-for-tat tariffs on billions of dollars worth of each others' goods, roiling financial markets, disrupting manufacturing supply chains and shrinking U.S.

File Image: AdobeStock / © Redindie

World Shares Higher on US-China Deal Hopes

Global shares rose on Monday amid growing optimism the United States and China will reach a trade agreement as soon as this month.U.S. President Donald Trump and Chinese President Xi Jinping might seal a formal trade deal around March 27, given progress in talks between the two countries, the Wall Street Journal reported on Sunday.The two nations have imposed tit-for-tat tariffs on billions of dollars worth of each others' goods, roiling financial markets, disrupting manufacturing supply chains and shrinking U.S.

Image CREDIT: AdobeStock / © Kasto

Hedge Funds Hunt for Shipping Debt

A growing number of hedge funds are moving into shipping debt, an asset class few have invested in before, looking to buy up loans and bonds as banks cut their exposure to the troubled sector.World economy worries and cost pressures are dampening prospects for a proper recovery in many segments of the shipping sector, which has struggled with tough markets for a decade.Meanwhile European banks, particularly German lenders, are trying to offload distressed and performing loans…

file Image / CREDIT AdobeStock / © Nightman 1965

China-U.S. Trade Talks a Tonic to Battered Markets

World stock markets rallied on Friday after Beijing announced a new round of trade talks with Washington, though recession fears still had markets betting the next move in U.S. interest rates might be down.News that the United States and China would hold vice-ministerial level talks on Monday and Tuesday to resolve a trade dispute bought some respite to battered markets, with MSCI's world stock index up a third of a percent and U.S. stock futures around 1 percent firmer ."We're not expecting a major breakthrough on Jan.

© victor217 / Adobe Stock

Asian Shares, Oil Fall as US-China Trade Spat Escalates

Asian shares fell to a 2-1/2 week low on Monday after U.S. President Donald Trump cranked up trade tensions by going ahead with tariffs on Chinese imports, prompting Beijing to immediately respond in kind.Fears of a global trade war added to pressure on oil prices, which extended Friday's big fall, while the dollar retreated from near 3-week highs against the safe haven yen.Spreadbetters suggested a subdued start for European shares, with FTSE futures off about 0.1 percent. U.S.

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HSH Nordbank Aims to Buy Shipping Loans from Other Banks

Germany's HSH Nordbank, once the world's biggest ship financier, aims to buy shipping loans from other banks and make new investments in the industry as it emerges from years of turmoil, a top bank official said.The bank's regional government owners are selling the lender to buyout groups Cerberus Capital Management and J.C. Flowers, with investors GoldenTree, Centaurus Capital and Austrian bank BAWAG also taking stakes."HSH, at the end of this process of privatization, will for the first time since 2008 be restored.

© Dmitry V. Petrenko / Adobe Stock photo

Economic Indicators Pointing Up -BIMCO

The recent months’ uptick in global indicators, which implies a strengthening in the global economy, is not sufficient for the patient to be discharged yet. The state of the global economy is still uncertain, despite stronger growth dynamics in advanced economies, and not least in China. When the IMF updated its outlook for advanced economies for 2017 and 2018 in January, it was the first time since 2007 that an IMF January update lifted expectations for the present and coming years.

© Petr Jilek / Adobe Stock

Proposed New Capital Rules Threaten Shipping

The global shipping industry will hit a credit crunch if proposed new bank capital rules are implemented in a sector already weighed down by toxic debt, bankers involved say. The Basel Committee of banking supervisors from nearly 30 countries met in Chile last month in an effort to complete the new rules for lenders in the world's major financial centres. It is now trying to pin down the details. While the rules do not target shipping specifically, some of the biggest rises in…

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money poured into safe-haven gold and government bonds. Sterling suffered a record plunge. The blow to investor confidence and the uncertainty the vote has sparked could keep the Federal Reserve from raising interest rates as planned this year, and even spark a new round of emergency policy easing from major central banks. The traditional safe-harbor assets of top-rated government debt, the Japanese yen and gold all jumped.

Image: European Central Bank

ECB Reviews Shipping Loans

European Central Bank (ECB) kicked off a review into the risks of banks’ shipping exposure, Reuters reported. ECB is conducting an in-depth review of banks’ exposure in shipping amid rising provisions for bad debt in an industry still mired in crisis. The ECB’s banking supervisor sent an email at the end of last week asking a raft of European banks for details of their shipping loans and the status of their loan loss provisions as an “initial step” in a broader review of lending in the sector, one of the sources quoted the email as saying.

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ECB urges Bremer Landesbank to boost capital amid shipping crisis

The European Central Bank has urged German state-owned lender Bremer Landesbank to shore up its capital resources against non-performing loans in shipping, three sources familiar with the matter said. Bremer (BLB) needs another 700 million euros ($800 million) in equity, weekly magazine Focus reported earlier on Saturday, citing talks between the city-state's finance chief and parliamentary leaders. "There are close discussions with the ECB," one of the sources told Reuters. Strengthening BLB's capital is a "matter of intense talks," a second source said.

Peter Sand

Uncertainty in Asia Echoes Around The World - BIMCO

2016 continues where 2015 ended, with all eyes on China. This is mainly because of uncertainty surrounding the development of the world’s second-largest economy. When the first day of the Shanghai Stock Exchange of 2016 closed prematurely, the trading results echoed around the world. It warned us that we are in for a rough ride in 2016. IMF has just revised its view on 2016 and 2017, down by 0.2% for each year. Now being more in line with BIMCO’s view of challenging global econom-ics, where the pickup in activity is more gradual than earlier IMF estimates.

Emblem Courtesy BIMCO

Shipping Market in 2015 & Looking Forward - BIMCO

Global economy: menacing clouds in the sky cast a shadow on global economic developments 2015 never really took off, even though the global economic activity looked stronger earlier in the year. The negative indicators seen at the end of 2014 were not overcome, and we saw a significantly lower level of growth for global GDP in 2015 than in the previous five years. This was primarily due to the struggling emerging markets and developing economies, led by changes in China’s economic focus.

Euro and Oil Resume Fall

The euro fell on Friday, continuing the slide that saw the currency finish out 2014 at a 29-month low against the U.S. dollar, on expectations that the European Central Bank will soon embark on outright money-printing. Crude prices fell in a volatile session, while equities as measured by a global index lost ground. Wall Street's equity benchmark ended a choppy day barely changed, with gains in energy and high-dividend stocks offsetting declines in consumer-centered shares. The S&P 500 on Wednesday closed out trading for 2014 with a third consecutive year of double-digit percentage gains…

Oil Prices Spike on Iraq Anxiety, Stocks Dip

Brent at 3-mo high, U.S. U.S. Crude oil prices spiked on Thursday on worries over supply as violence escalated in Iraq, while a worldwide equities gauge edged down after Wall Street opened lower. Crude jumped after Iraqi Kurdish forces took control of the northern oil city of Kirkuk, in the face of a triumphant Sunni Islamist rebel march towards Baghdad that threatens Iraq's future as a unified state. Brent crude futures rose the most in more than three months to a high of $112.34 a barrel, the highest since early March. U.S. crude added 1.7 percent to its highest since September.

Strong U.S. Jobs Report Pushes Up Dollar

World shares dipped from a record high and the dollar and U.S. bond yields climbed on Thursday as strong jobs data added to bets that U.S. interest rates could rise within the next six months. U.S. employment growth jumped in June and the unemployment rate declined to near a six-year low of 6.1 percent, effectively dispelling fears about the economy's health and underscoring its momentum heading into the second half of 2014. The headline gain of 288,000 jobs was well above forecasts of 212…

Peter Sand, BIMCO Chief Shipping Analyst

BIMCO: Reforms Necessary to Improve Economy

The International Monetary Fund (IMF) has downgraded its global growth projection from 3.7% in April to 3.4% in July. The adjustment is primarily due to the large negative result in the U.S. in the first quarter of the year. The IMF stressed that this is now behind us – and it therefore sticks to its 2015 projection with an unchanged growth level of 4.0%. Moreover, the outlook for the various emerging markets including, amongst others, Russia, ASEAN-5, Brazil, Mexico and South Africa, is now less optimistic compared to the assessment made three months ago.

IMF to Resume Greece Bailout Talks after Election

The International Monetary Fund will resume bailout talks with Greece once a new government is in place after next month's snap general election, IMF spokesman Gerry Rice said in a statement on Monday, noting that Athens faces no immediate funding needs. "Discussions with the Greek authorities on the completion of the sixth review of the program that is being supported by an Extended Arrangement will resume once a new government is in place, in consultation with the European Commission and the European Central Bank," the emailed statement said.

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Chinese Stocks & Dollar Were Stars, Oil Big Loser

China and the United States headed the list of 2014 top-performing equity markets among larger economies while markets elsewhere ended the year on a wary note as another sharp drop in oil and worries about Greece's future drove profit-taking. The U.S. dollar on Wednesday added slightly to gains that have made it the year's star major currency. Some European bond yields added to a string of all-time lows following a surprisingly sharp fall in Spanish inflation on Tuesday. European stocks wrapped up the year 4 percent higher overall…