Negative interest rates or lower rates for longer? SHARE PHIL - Jonathan Ravelas (The Philippine Star) - September 18, 2019 - 12:00am One may ask why the negative interest rates? To mitigate the impact of the global financial crisis triggered by the collapse of Lehman Brothers in 2008, many central banks cut interest rates near zero. A decade later, interest rates remain low in most countries due to subdued economic growth. With Donald Trump’s trade war, some major central banks–having little room to cut rates further, have resorted to this unconventional policy of negative interest rates. Under a negative rate policy, financial institutions are required to pay interest for parking excess funds with the central banks. In other words, banks are charged for keeping any surplus cash beyond that which regulators say they must keep on hand. This way, central banks penalize financial institutions for holding on to cash in … [Read more...] about Negative interest rates or lower rates for longer?
Money market for emergency fund
No choice but to open up market Is the Rice Tariffication Law (RCL) to blame for the problems that our rice farmers are facing right now, in particular the low palay farmgate prices allegedly caused by the influx of cheap imported rice? Before, rice imports to the Philippines were subject to quantitative restrictions or limitations in terms of the amount or quantity that can be imported into the country. The Minimum Access Volume (MAV) for rice was at 350,000 metric tons and anything beyond that amount is subject to high tariffs. The RCL abolished quantitative restrictions, meaning anybody can bring in rice from abroad provided that they pay a 35 percent import duty if the rice is sourced from ASEAN member countries. The tariff increases to 40 percent from non-ASEAN countries if imports are below 350,000, and 180 percent if imports are from non-ASEAN countries and above 350,000 tons. The law also removed the power of the National Food Authority to manage … [Read more...] about No choice but to open up market
caption Don’t make these mistakes with your money as you near retirement age. source RyanJLane/Getty Images Your retirement should be your golden years, where you reap the rewards of decades of hard work. But if you don’t save enough to cover your living expenses or you get hit with bad luck, retirement can be a time of financial stress. In addition, longer life expectancy has changed the calculus of retirement savings. If you retire at 65 and live to be 100, you may spend almost the same number of years in retirement as you did working. That means that for almost every working year, you need to fund a non-working year. No pressure, though. Related: 7 surprising expenses people don’t expect when they retire, according to experts Richard Hall, a financial planner at Pitzl Financial, told Business Insider about seven of the biggest money mistakes he sees people make before retirement and how to avoid them. Here are the mistakes you should be … [Read more...] about The 7 biggest money mistakes people make before they retire
Thailand’s equity and currency markets are boosted by almost US$4 billion of foreign inflows in June. (Bangkok Post photo) June is shaping up to be one of the best months for investors in Thailand as the nation’s currency, bonds and stocks outperform in Asia, but the market rally now faces formidable economic and political risks.Thailand’s markets have been boosted by almost US$4 billion of foreign inflows this month as the central bank held off from interest-rate cuts, helping support bonds and the currency. But even the Bank of Thailand has voiced concern over the baht’s strength and said it has intervened in the market, while economic growth prospects are worsening. “Foreign funds are using equities and bonds as tools to speculate on the baht’s strength,” said Pornthep Jubandhu, head of the investment research group at SCB Asset Management Co, the nation’s biggest private money manager with $45 billion of assets. … [Read more...] about Weakening Thai economy suggests trouble for Asia’s top assets
By Jack Ewing The New York Times Milan Schreuer Mon., May 6, 2019 On a breezy day in September, an ominous text message appeared on Fredrik Ekstrom’s phone: Go immediately to the war room. Ekstrom is chairman of Nasdaq Clearing, an outpost of the U.S. stock exchange company in Stockholm, which processes futures trading and acts, in part, as a shield against contagious losses in the global financial system. He headed toward an ordinary conference room outfitted with extra phones, video hookups, data terminals and policy manuals, designed to be a command center in case of a financial crisis. Until then, the war room had been used only for drills. Other senior executives were waiting when he arrived. They described an unfolding disaster. A trader named Einar Aas was having a spectacularly bad day. Ekstrom knew the name. Aas worked from his seaside home in a remote Norwegian fishing village, trading futures contracts tied to the price of Scandinavian … [Read more...] about How a lone Norwegian trader shook the world’s financial system