October 23rd – Top Stories
- Fed likely to delay taper after disappointing US jobs datal - Telegraph – By Katherine Rushton,
American employers created fewer jobs in September than forecast, raising expectations that the US Federal Reserve will keep pumping money into the world’s largest economy at the same rate for several months yet.
Stock markets rose on Tuesday as investors bet that the central bank would keep on buying bonds at the rate of $85bn a month until next year, and potentially even increase that figure to help fuel America’s still-fragile economic recovery.
- China Money Rate Jumps Most Since July on PBOC, Tax Flows - Bloomberg – By Bloomberg News
China’s benchmark money-market rate jumped the most since July as the central bank refrained from adding funds to markets and corporate tax payments drained cash.
The seven-day repurchase rate, a gauge of funding availability in the banking system, surged 42 basis points, or 0.42 percentage point, to 4 percent as of 10:04 a.m. in Shanghai, according to a weighted average compiled by the National Interbank Funding Center. That was the biggest advance since July 29. The overnight repo rate jumped 67 basis points, the most since June 20, to 3.76 percent.
The People’s Bank of China has suspended selling reverse-repurchase contracts since Oct. 17, leading to a net withdrawal of 44.5 billion yuan ($7.3 billion) from the financial system last week. The authority asked commercial banks to submit orders today for 28-day repurchase contracts, 91-day bills, and 14-day reverse repos planned for tomorrow, according to a trader at a primary dealer required to bid at the auctions.
3/ Eurozone & UK
- ECB Launches Push to Strengthen Eurozone Banks - ABC News – By DAVID McHUGH
he European Central Bank is launching a push to strengthen the eurozone’s banking system and keep troubled financial institutions from holding back the region’s economy.
The bank announced Wednesday that a yearlong review of 130 of Europe’s biggest banks will begin next month. The asset review is an effort to check for hidden bank losses such as loans that are unlikely to be repaid. That will be followed by a stress test conducted along with the European Banking Authority that would simulate bank losses in a crisis.