Business & Economy

March,27(Agencies)--The Basel Committee on Banking Supervision,charged with worldwide oversight, said Thursday that it would “learn lessons” from the US bank failures and the emergency buyout of Credit Suisse that have roiled financial markets.The near-implosion of Credit Suisse last week, leading to its sale to fellow Swiss giant UBS, came after the collapse of two tech-lending banks in the United States triggered fears of international fallout.The Basel committee, established in 1974, said after a meeting that it would “take stock of the regulatory and supervisory implications stemming from recent events, with a view to learn lessons”.“Banks and supervisors must therefore be vigilant to the evolving outlook to ensure that the g...

March 27, 2023 at 12:54 pm | Economic Affairs

March,27(Agencies)--Oil prices stabilised in Asian trade on Monday as investors sought cues from broader financial markets, while comments by Russian President Vladimir Putin over the weekend ratcheted up geopolitical tensions in Europe.Brent crude futures held unchanged at $74.99 a barrel at 0357 GMT after hitting a session high of $75.64. US West Texas Intermediate crude was at $69.29 a barrel, up 3 cents, after rising to $69.92 earlier in the session.Brent rose 2.8% last week, while WTI rebounded 3.8% as jitters in the banking sector eased. Oil markets are closely watching the sentiment in financial market, while oil fundamentals remain sidelined, said Vandana Hari, founder of oil market analysis provider Vanda Insights.“Expect most p...

March 27, 2023 at 12:49 pm | Economic Affairs

March,27(Agencies)--US dollar stays firm on Monday, Yen hovered near its seven-week peak as investors assessed moves made by authorities and regulators to rein in worries over the global banking system.Risk-wary investors sent the yen was last at 130.70 on Monday to a seven-week high of 129.65 per dollar on Friday. The dollar index, which measures the currency against six rivals, was up 0.078% at 103.060, having gained 0.5% on Friday amid banking jitters, with shares of Deutsche Bank sliding nearly 9%.Markets are pricing in an 87% chance of the Fed’s standing pat on interest rates in its next meeting in May and anticipate a rate cut as early as July, according to CME FedWatch tool.Global banking stocks have been battered through the mont...

March 27, 2023 at 12:22 pm | Economic Affairs

March,25(Agencies)---Moody’s has downgraded the long-term deposit ratings of mBank and changed the outlook to negative from “under review” citing risks stemming from the legacy of Swiss franc loans at Polish lenders, the agency said.Moody’s has downgraded the long-term issuer ratings of the bank’s mortgage unit mBank Hipoteczny and changed the outlook to negative from “under review”.The agency confirmed Bank Millennium’s long- and short-term deposits ratings and changed the outlook on its long-term deposit ratings to negative from “under review”.An adviser to the European Union’s top court last month sided with Polish borrowers with Swiss franc-denominated mortgages. Poland’s regulator has warned the matter could co...

March 27, 2023 at 8:16 am | Economic Affairs

March,23(Agencies)-- Asian markets skidded Thursday, tracking losses on Wall Street after the US Federal Reserve hiked interest rates again and dealt a blow to hopes it could cut them later in the year to soothe worries over the banking sector.Recent turmoil caused by the collapse of two US lenders and the takeover of Credit Suisse had fanned speculation central banks would pause their inflation-fighting monetary tightening campaign.But on Wednesday, officials announced a ninth straight increase in the cost of borrowing as they put their emphasis on containing prices, though the 25-basis-point rise was half of what was expected at the start of the month.Fed boss Jerome Powell also told journalists that “rate cuts are not in our base case...

March 24, 2023 at 11:09 am | Economic Affairs

March,23(Agencies)-- US dollar stayed under pressure near seven-week low Thursday as US bond yields fell sharply after the Federal Reserve sounded close to calling time on interest rate hikes.The Fed raised its benchmark funds rate by 25 basis points, as expected, but dropped language about “ongoing increases” being needed in favour of “some additional” rises, as it waits and watches how wobbling confidence in banks affects the economy.Futures imply only an even chance of one more hike. That’s a contrast to Europe where markets see another 50 bp or so to go, and the gap sent the euro surging.The dollar pared some of its losses when US Treasury Secretary Janet Yellen set off another round of bank stock selling and jitters over sta...

March 24, 2023 at 11:09 am | Economic Affairs

March,23(Agencies)-- A clutch of European central banks announce interest-rate decisions Thursday as markets remain jittery over turmoil in the global banking sector.The Bank of England will join the Norwegian and Swiss central banks in revealing their latest moves on borrowing costs also in the face of stubbornly-high inflation.All three are expected to lift rates, following the US Federal Reserve’s decision Wednesday to hike interest rates by a quarter of a percentage point, or 25 basis points.While the Fed said that “some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive” to bring down inflation, it added that the recent turmoil in the banking sector may he...

March 24, 2023 at 11:07 am | Economic Affairs

March,23(Agencies)-- Oil prices fell Thursday after three sessions of gains as Federal Reserve Chair Jerome Powell highlighted banking sector credit risks for the world’s largest economy, while US crude stocks rose more than expected.Brent crude futures fell 66 cents, or 0.9%, to $76.03 a barrel by 0420 GMT, while US West Texas Intermediate crude (WTI) dropped 74 cents, or 1.0%, to $70.16.Both crude benchmarks settled on Wednesday at their highest close since March 14 after the dollar slid to a six-week low. “Economic risks were being flagged out in the Fed meeting, while higher-than-expected US crude oil stockpiles also dampened some optimism around demand outlook,” said Yeap Jun Rong, market strategist at IG.However, the weakness i...

March 24, 2023 at 11:03 am | Economic Affairs

March,23(Agencies)-- Saudi Foreign Minister Prince Faisal bin Farhan Al Saud and his Iranian counterpart, Hossein Amirabdollahian, have agreed to meet soon and pave the way for the re-opening of embassies under a deal to re-establish ties, Saudi state news agency SPA said on Thursday.Earlier this month, Iran and Saudi Arabia agreed to revive relations after years of hostility that had threatened stability and security in the Gulf and helped fuel conflicts in the Middle East from Yemen to Syria.The ministers spoke by phone to mark the occasion of the Muslim holy month of Ramadan, SPA said.Amirabdollahian emphasized during the call Iran’s readiness to strengthen relations with Saudi Arabia, Iran’s official news agency IRNA reported.The f...

March 24, 2023 at 11:03 am | Economic Affairs

March, 22(Agencies)--British consumer price inflation unexpectedly rose to 10.4% in February of January’s 10.1%, figures from the Office for National Statistics showed on Wednesday.Economists polled by Reuters had forecast that the annual CPI rate would drop to 9.9% in January, moving further away from October’s 41-year high of 11.1% but still eating into the spending power of workers whose pay is rising by less.The Bank of England is due to announce on Thursday whether it has raised interest rates for an 11th meeting in a row. Core CPI - which excludes energy, food, alcohol and tobacco and is watched closed by the BoE - rose to 6.2% from 5.8% in January, versus a forecast decline to 5.7%.The annual inflation rate in the services secto...

March 23, 2023 at 12:37 pm | Economic Affairs

March,22(E.A Report)-- Pakistan Stock Exchange (PSX) stayed witnessing Wednesday sell off for the fifth consecutive session, led it to fall over 500 points owing to stalemate between Pakistan and the International Monetary Fund (IMF) with regard to resumption of the bailout programme.KSE-100 Index recorded a decrease of 501.88 points or 1.23% to close at 40,376.1. at close on Wednesday. Market is getting mixed signals and while some investors are optimistic of a staff level agreement, others seem to be sceptical.Since Thursday last week, the market has shed nearly 1,500 points. Trading began on a mixed note and the market remained rangebound, however, final hours of the session saw modest selloff which dragged the KSE-100 Index downward.Al...

March 22, 2023 at 7:48 pm | Economic Affairs

March,22(Agencies) Malaysian palm oil futures tumbled on Wednesday to their lowest in five months, weighed down by sharp losses in rival edible oils and crude oil, and lingering concerns about the global banking crisis.The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange slid 140 ringgit, or 3.7%, to 3,644 ringgit ($815.94) a tonne by the midday break, hitting its lowest since Oct. 14.Palm fundamentals remain strong but trading is weighed down by bearish sentiment, said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.“Adding to the woes is uncertainty over interest rate decision from the Fed,” Varqa said. While recent market turmoil has eased, the Federal Reserve’s interest rate ...

March 22, 2023 at 7:46 pm | Economic Affairs

March,22(E.A Report) Pakistan Business Council (PBC), one of the country’s largest corporate advocacy platforms, has warned that time is running out for the country as it struggles to resume the International Monetary Fund (IMF) programme.“As stakeholders contest short-term power, Pakistan’s long-term future is in jeopardy,” said the PBC in a statement on Wednesday. “Drip feed and hope will not suffice. Without IMF’s programme and debt reprofiling, help from friendly nations is not forthcoming.” “Pakistan is running out of time,” it added.The statement comes as Pakistan reels from one of its worst economic crises in history. The South Asian country has been faced with a barrage of woes with a perceived default risk and do...

March 22, 2023 at 7:41 pm | Economic Affairs

March,22(EA Report) Federal Board of Revenue (FBR) directed a Pakistani tracking service provider, TPL Trakker, to install tracking devices on containers and trucks carrying transhipment cargo.FBR in a notice has asked company to begin operations at all customs stations across the country where transhipment consignments are being originated from or designated to TPL Trakker.The company that sells and installs tracking devices and provides vehicle tracking and fleet management services, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.“We are pleased to announce that the Federal Board of Revenue (FBR), in terms of its letter dated March 20, 2023 and SRO 413(I)/2012 dated 25-04-2012, has directed the com...

March 22, 2023 at 7:37 pm | Economic Affairs

March, 22(Agencies)--British consumer price inflation unexpectedly rose to 10.4% in February of January’s 10.1%, figures from the Office for National Statistics showed on Wednesday.Economists polled by Reuters had forecast that the annual CPI rate would drop to 9.9% in January, moving further away from October’s 41-year high of 11.1% but still eating into the spending power of workers whose pay is rising by less.The Bank of England is due to announce on Thursday whether it has raised interest rates for an 11th meeting in a row. Core CPI - which excludes energy, food, alcohol and tobacco and is watched closed by the BoE - rose to 6.2% from 5.8% in January, versus a forecast decline to 5.7%.The annual inflation rate in the services secto...

March 22, 2023 at 7:35 pm | Economic Affairs

March 22,2023Islamabad (EA Report)Foreign Minister Bilawal Bhutto Zardari has extended warm felicitations on the signing of the Joint Trilateral Statement by Iran, Saudi Arabia and China, and termed the resumption of diplomatic relations between Riyadh and Tehran as a testament to the wisdom and farsightedness of the leadership of the two countries.In a telephonic conversation with Foreign Minister Hossein Amir Abdollahian of the Islamic Republic of Iran, on Wednesday, the Foreign Minister also commended the important role played by China in facilitating this process, which has also been the stated policy of Pakistan.Underscoring Pakistan’s close fraternal relations with both Iran and Saudi Arabia, the Foreign Minister stressed that the ...

March 22, 2023 at 1:42 pm | Economic Affairs