Revving up consumer spending is one of the targeted measures likely to continue under the newly installed government, according to SCB analysts. WICHAN CHAROENKIATPAKUL Economic policies aimed at stimulating domestic consumption are expected to materialise soon, but long-term government stability still poses uncertainty for investment sentiment, says a banking executive.Previous economic policies enacted under the military-led government are likely to continue under the new administration, with MPs from the Palang Pracharath Party taking the helm of important ministries in charge of economic affairs, said Sathit Pongtanya, first senior vice-president for the family office business at Siam Commercial Bank (SCB). Such policies will help support investment sentiment in Thailand's capital market, Mr Sathit said. "The new government will try hard to shore up economic growth through domestic consumption and government spending, since global factors remain full of uncertainty," … [Read more...] about Political stability still in doubt ahead of expected stimulus
Banks dealing in foreign exchange
LONDON/FRANKFURT: For Deutsche Bank chief executive Christian Sewing, shrinking the group's investment bank will be the relatively easy: if expensive: part of his restructuring plan.Finding steady revenue streams to produce the 7.4 billion euros (US$8.31 billion) the bank expects in charges from cutting down its trading arm will be more challenging.Germany's biggest bank said on Sunday it planned to focus on corporate banking, foreign exchange, deal-making, asset management, and private banking. All these areas potentially could provide less volatile revenue streams than the bank's equity and rates trading arms, but they are already fiercely competitive and undergoing sweeping technological changes.CORPORATE BANKINGDeutsche Bank wants corporate banking to be the center of its business.This involves building on its strengths in transaction banking - such as trade finance and cash management.The bank is held up by rivals as a traditionally strong performer in these areas, but its … [Read more...] about After Deutsche Bank cuts, where will the growth be?
LONDON/NEW YORK: The increasing frequency of flash crashes in the US$5.1 trillion-a-day foreign exchange market has regulators scrambling for answers.Sudden, violent and often quickly reversed price moves are now a regular occurrence in world currency markets - often during the so-called 'witching hour', a period of thin trading between 5-6 pm in New York when currency dealers there have powered off and colleagues in Tokyo have yet to sign on.Two big crashes this year separately pummeled the yen and the Swiss franc and, given the importance of currency pricing for trade, investment flows and the global economy, policymakers are concerned a major fracturing could threaten financial stability."The question is, is this a new normal, or is it a canary in the coalmine sort of thing?" said Fabio Natalucci, deputy director of the Monetary and Capital Markets Department at the International Monetary Fund (IMF)."We have seen the frequency of these events increase so this may be pointing to a … [Read more...] about Bump in the night: FX flash crashes put regulators on alert
SHAH ALAM: UMW Holdings Bhd expects its nascent aerospace business under the manufacturing and engineering division to turn around next year as it ramps up production capacity. The division is undertaken through UMW Aerospace, which had, in 2015, entered into an agreement with Rolls Royce Plc to manufacture and assemble fan cases for Rolls-Royce Trent 1000 and Trent 7000 aero engines used in Boeing and Airbus aircraft. Speaking to the media after the group’s AGM yesterday, UMW group CEO and president Badrul Feisal Abdul Rahim did not reveal the exact figures of its fan cases production due to a confidentiality clause. However, he said the unit delivered over 50 fan cases in 2018 and is expected to more than double that this year. “We expect (aerospace business) to improve significantly due to the successful production ramp up.” In 2018, the aerospace business’s losses narrowed significantly to RM29.4 million from RM60.4 million in 2017. UMW also revealed it is … [Read more...] about UMW expects aerospace unit to turn around in 2020
ISLAMABAD: Pakistan will get US$6 billion from the IMF over the next three years to meet its foreign debt obligations, the country's advisor on finance said on state television, after signing the agreement.The deal comes after months of negotiations over what will be Pakistan's 22nd bail out aimed at staving off a potential balance-of-payments crisis as the country struggles with a stagnating economy.Pakistan's advisor on finance said that foreign loans have exceeded US$90 billion, and exports have registered a negative growth over the past five years."So Pakistan will get US$6 billion from the IMF, and in addition we will get US$2 to US$3 billion from the World Bank and Asian Development Bank in the next three years," said Abdul Hafeez Shaikh during the broadcast."The trade deficit reached US$20 billion and our foreign exchange reserves have dipped by 50 per cent in past two years. So we have a US$12 billion gap in our annual payments and we don't have the capacity to pay them," he … [Read more...] about Pakistan to get US$6b from IMF to meet foreign debts