Treasury Services – Game Towne http://gametowne.com/ Fri, 24 Jun 2022 02:04:41 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://gametowne.com/wp-content/uploads/2021/06/icon-6-150x150.png Treasury Services – Game Towne http://gametowne.com/ 32 32 Australian Treasury yields brace for biggest weekly decline in a decade https://gametowne.com/australian-treasury-yields-brace-for-biggest-weekly-decline-in-a-decade/ Fri, 24 Jun 2022 01:22:19 +0000 https://gametowne.com/australian-treasury-yields-brace-for-biggest-weekly-decline-in-a-decade/ Australian bond buyers keep the reins as traders wait for Lowe from the RBA. 10-year coupons pull back from eight-year high to break four-week uptrend. The yield on 3-year Treasury bills has reversed from late-2011 highs, on track to post the biggest weekly loss in 11 years. Australian data and the hawkish RBA fail to […]]]>
  • Australian bond buyers keep the reins as traders wait for Lowe from the RBA.
  • 10-year coupons pull back from eight-year high to break four-week uptrend.
  • The yield on 3-year Treasury bills has reversed from late-2011 highs, on track to post the biggest weekly loss in 11 years.
  • Australian data and the hawkish RBA fail to support bond buying amid recession fears.

Australian bond markets are following global signals to tease bulls as fears of an economic slowdown intensify. Probably hawkish comments from Reserve Bank of Australia (RBA) Governor Philip Lowe, to be released at 11:30 GMT on Friday, also keep Australian bond buyers hopeful.

That said, Australian 10-year Treasury bond yields continue their pullback from the highest levels since 2014 despite daily gains of 1.0% around 3.71%.

More importantly, the 3-year counterpart is eyeing the biggest weekly loss since 2011 with a drop of more than 11% to 3.31% at press time.

“Australian bonds fell this month after the RBA raised rates more than economists expected and Governor Philip Lowe said policymakers would do what is needed to bring inflation down,” Bloomberg said. to justify movements in the bond market.

It should be noted, however, that global recession fears are strong enough to weigh on market sentiment and Treasury yields as of late.

Australia’s risk aversion ignores upbeat PMIs in the country, as well as weaker US activity numbers, not to mention recently upbeat traffic data from China. That said, the Australian S&P Global PMI’s preliminary readings for June were mixed, as the Manufacturing and Services PMIs beat forecasts and market precedents, but the Composite PMI fell below previous readings. The manufacturing PMI rose to 55.8 from 54.7 expected and 55.7 previously, while the S&P Global Services PMI rose above market consensus 49.1 to 52.6 from 53.2 previous reading. It should be noted that the composite PMI fell below 52.9 to 52.6 in June.

It should be noted that the RBA’s Lowe is likely to reiterate its hawkish bias, especially after the recently upbeat Australian PMIs, which could in turn favor Australian bond buyers and weigh on yields. However, comments about the economic downturn can be detrimental to movements.

Also read: AUD/USD climbs back to 0.6900 amid corrective pullback ahead of RBA’s Lowe’s

]]>
Finastra and ITC Infotech expand European partnership to deliver cloud-based treasury automation https://gametowne.com/finastra-and-itc-infotech-expand-european-partnership-to-deliver-cloud-based-treasury-automation/ Wed, 22 Jun 2022 08:34:00 +0000 https://gametowne.com/finastra-and-itc-infotech-expand-european-partnership-to-deliver-cloud-based-treasury-automation/ Users benefit from cash-as-a-service that is rapidly deployed and hosted in the cloud LONDON, June 22, 2022 /PRNewswire/ — Finastra today announced a strategic partnership with ITC Infotech to provide Finastra’s Fusion Kondor cloud-based cash-as-a-service solution to its growing customer base in Europe. Customers will benefit from increased treasury services automation, a scalable system that […]]]>

Users benefit from cash-as-a-service that is rapidly deployed and hosted in the cloud

LONDON, June 22, 2022 /PRNewswire/ — Finastra today announced a strategic partnership with ITC Infotech to provide Finastra’s Fusion Kondor cloud-based cash-as-a-service solution to its growing customer base in Europe. Customers will benefit from increased treasury services automation, a scalable system that keeps pace with regulatory changes, and a fast time-to-market for new features. This partnership strengthens Finastra’s long-standing relationship with ITC Infotech.

Anindya RoyPresident – Europe of ITC Infotech said, “Bank treasury teams are looking to modernize their processes and improve their operational resilience. The Kondor Treasury as a Service solution will enable banks to quickly leverage treasury technology, automate manual processes, reduce reliance on spreadsheets and legacy technologies, and improve profitability. Finastra’s technology is market leading, and we are excited to offer clients a seamless managed services proposition that is easy and quick to implement, and significantly reduces cash, risk and compliance.

“The ability to create and manage treasury systems at many banks is a challenge, and with increasing regulations to meet, an automated solution that fills operational gaps may be ideal,” said Monica Summerville, Head of Capital Markets, Celent. “By leveraging cloud delivery, bank employees can focus on their core roles, rather than worrying about the underlying IT. This path also gives treasury managers visibility and flexibility needed to easily comply with regulations, for which requirements are constantly updated in the solution, including Basel IV, EU CRR IV, FRTB, SA-CCR and IRRBB.”

The solution could be up and running in just 90 days as it is designed out of the box and pre-configured with best practice templates. Prior to implementation, customer value experts from Finastra and ITC Infotech spend time with the bank’s treasury, operations and IT teams to review the current architecture, help mitigate risk and guarantee a long-lasting solution in a secure cloud. Banks using Finastra technology can also exploit FusionFabric.cloud open development platform to access innovative applications.

Wissam KhouryEVP, Treasury & Capital Markets Business Unit at Finastra, said: “ITC Infotech has been a long-time partner of ours and it makes sense to extend our proven track record in delivery, bringing banks to Europe, access to cutting-edge treasury technology in the cloud. Together, we will deliver our treasury platform as a managed service offering, creating a compelling solution for our joint customers to leverage new capabilities such as cash management. This move aligns well with our commitment to orchestrating ecosystems that deliver real value to the financial services industry.”

For more information, please contact:

Caroline Duf Priya Trivedi
Global PR Manager Media Relations Manager
J +44 (0)7917 613586 T +91 815106622
E [email protected] E- [email protected]
finastra.com itcinfotech.com

About ITC Infotech

ITC Infotech is a leading global provider of technology services and solutions, led by Business and Technology Consulting. ITC Infotech provides business-ready solutions to help clients succeed and be future-ready, seamlessly bringing together digital expertise, strong industry-specific alliances, and the unique ability to leverage the in-depth domain expertise of ITC Group companies. The company provides technology solutions and services to businesses in industries such as banking and financial services, healthcare, manufacturing, consumer goods, travel and hospitality, through a combination of traditional and newer business models. , as a long-term sustainable partner. ITC is one of india leading private sector companies and a diversified conglomerate with businesses spanning consumer goods, hospitality, cartons and packaging, agribusiness and information technology. For more information, please visit: http://www.itcinfotech.com/

About Finastra

Finastra is a global provider of financial software applications and marketplaces, and launched the leading open innovation platform, FusionFabric.cloud, in 2017. It serves institutions of all sizes, providing solutions and services awards in the areas of loans, payments, treasury and capital. Markets and Retail & Digital Banking for banks to support direct banking relationships and grow through indirect channels, such as integrated finance and banking as a service. Its pioneering approach and commitment to open finance and collaboration is why it is trusted by around 8,600 institutions, including 90 of the world’s 100 largest banks. For more information, visit finastra.com.

The head office

4 Kingdom Street
Paddington
London W2 6BD
UK
Such. : +44 20 3320 5000

Logo: https://mma.prnewswire.com/media/967510/Finastra_Logo.jpg

SOURCEFinastra

]]>
Daily Financial Regulation Update — Saturday, June 18, 2022 | Paul Hastings LLP https://gametowne.com/daily-financial-regulation-update-saturday-june-18-2022-paul-hastings-llp/ Mon, 20 Jun 2022 13:43:31 +0000 https://gametowne.com/daily-financial-regulation-update-saturday-june-18-2022-paul-hastings-llp/ Federal agencies US Department of Treasury US Treasury welcomes Financial Action Task Force censorship of Russia June 17, 2022 The Financial Action Task Force (FATF) concluded the last plenary session under the German Presidency and made policy recommendations to strengthen efforts to fight corruption and the misuse of virtual assets. The FATF again condemned the […]]]>

Federal agencies

US Department of Treasury

US Treasury welcomes Financial Action Task Force censorship of Russia

June 17, 2022

The Financial Action Task Force (FATF) concluded the last plenary session under the German Presidency and made policy recommendations to strengthen efforts to fight corruption and the misuse of virtual assets. The FATF again condemned the Russian war against Ukraine and took steps to restrict Russia’s FATF membership privileges.

Federal Reserve Board

Monetary Policy Report

June 17, 2022

The Federal Reserve Board has released the June 2022 Monetary Policy Report.

Speech: President Powell’s Welcome Remarks on the “International Roles of the U.S. Dollar”

June 17, 2022

Chairman of the Board of the Federal Reserve, Jerome Powell, delivered a welcome speech at the “International Roles of the US Dollar,” a research conference sponsored by the Federal Reserve Board, in Washington, DC.

Document: The digital economy and productivity

June 17, 2022

The Federal Reserve Board published an article titled “The Digital Economy and Productivity”.

Federal Reserve Bank of New York

New York Fed to launch regular release of new measure of how corporate bond market is working

June 17, 2022

The Federal Reserve Bank of New York has announced that it will begin monthly release of a new research product focused on identifying periods of widespread distress in the US corporate bond market. The first release is scheduled for Wednesday, June 29 at 10:00 a.m. EDT.

The U.S. Economy in Brief – June 2022

June 17, 2022

The Federal Reserve Bank of New York released the June 2022 US economy in a snapshot showing that core inflation remained high, the unemployment rate was unchanged and the savings rate fell.

Core Inflation Gauge (UIG) – June 2022

June 17, 2022

Staff at the Federal Reserve Bank of New York have released June 2022 Core Inflation Gauge (UIG) measurements.

New York Fed DSGE Model Forecast — June 2022

June 17, 2022

The Federal Reserve Bank of New York has released the Dynamic Stochastic General Equilibrium (DSGE) model forecast for June 2022.

International

bank of england

Survey: Market Player Survey Results – June 2022

June 17, 2022

The Bank of England has released the results of the Market Participants Survey for June 2022.

Working Paper: Types of start-ups and macroeconomic performance in Europe

June 17, 2022

The Bank of England has published a staff working paper titled “Types of start-ups and macroeconomic performance in Europe”.

UK Financial Conduct Authority

The FCA’s work on market abuse and manipulation

June 17, 2022

The Financial Conduct Authority has published an update of its work on market abuse and manipulation.

Administrative changes

Vacant jobs

Federal Reserve Board

  • Vice President for Oversight – Michael S. Barr appointed April 15, 2022 (nomination hearing held May 19, 2022; committee approval June 8, 2022; full Senate vote pending.)

Federal Deposit Insurance Corporation

  • President – ​​Vacant (Martin Gruenberg is acting president)
  • Vice President – ​​Vacant

Office of the Comptroller of the Currency

  • Controller – Vacant (Michael Hsu is Acting Controller)

Appointments/Confirmation Hearings

U.S. Treasury Department – Janet Yellen (effective January 26, 2021)

Federal Reserve Board – Jerome H. Powell (effective May 23, 2022)

Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)

Federal Deposit Insurance Corporation – Martin Gruenberg (Acting Chair, appointed February 5, 2022)

Consumer Financial Protection Bureau – Rohit Chopra (effective October 12, 2021)

Security and Exchange Commission – Gary Gensler (effective April 17, 2021)

Small Business Administration – Isabella Casillas Guzman (effective March 16, 2021)

Commodity Futures Trading Commission – Rostin Behnam (effective December 17, 2021)

Financial Crimes Network

National Administration of Credit Unions – Todd M. Harper

U.S. Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Federal Housing Finance Agency – Sandra L. Thompson, (confirmed May 25, 2022)

US Department of Education – Dr. Miguel Cardona (effective March 2, 2021)

PH Customer Alerts

Click here to learn more about our Coronavirus series.

Legislation/legislative updates

Click here to view the full text of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), Adopted March 27, 2020.

Click here to view the full text of the Expanding Paycheck Protection Program Act of 2020, Adopted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Adopted on June 5, 2020.

Click here to view the full text of the Consolidated Credit Law, 2021, Adopted on December 27, 2020.

Click here to view the full text of the 2021 US bailout plan, Adopted March 11, 2021.

Click here to view the full text of the PPP Extension Act 2021, Adopted March 30, 2021.

Click here to see a current list of bills the Senate Committee on Banking, Housing and Urban Affairs, the Senate Committee on Small Business and Entrepreneurship, the House Committee on Financial Services and the House Committee on Small Business.

]]>
US targets Russian yacht broker linked to Jersey https://gametowne.com/us-targets-russian-yacht-broker-linked-to-jersey/ Sat, 18 Jun 2022 15:01:54 +0000 https://gametowne.com/us-targets-russian-yacht-broker-linked-to-jersey/ A YACHT broker with close ties to Jersey has been added to the Russian sanctions list as US authorities expand their crackdown on the assets of oligarchs around the world. Businessman Evgeniy Kochman and two Jersey-registered companies he runs – Imperial Yachts and BLD Management – have been named by the US Treasury Department as […]]]>

A YACHT broker with close ties to Jersey has been added to the Russian sanctions list as US authorities expand their crackdown on the assets of oligarchs around the world.

Businessman Evgeniy Kochman and two Jersey-registered companies he runs – Imperial Yachts and BLD Management – have been named by the US Treasury Department as it seeks to increase pressure on Russian leader Vladimir Putin after the country invaded Ukraine in February.

But it’s unclear whether any action will be taken against Jersey businesses, as a government spokesperson told JEP the island does not apply US sanctions – only those issued by the UK or the United Nations Security Council – and the Jersey Financial Services Commission will not. comment on individuals or entities.

U.S. Justice and Treasury Department task forces are now targeting ‘enablers’ linked to Putin’s regime, U.S. officials have said, and are trying to break the intricate networks wealthy Russians use to hide and move money. silver.

Mr Kochman’s companies are said to cater to Moscow’s elite, with Imperial Yachts operating an office in the Russian capital, although both companies are largely run from Monaco.

The companies have been registered in Jersey through the Fiduchi Group and use a mailbox at the company’s office in Kensington Street for deposits with the JFSC.

Mr. Kochman owns 5% of each company, with the remainder held by Fiduchi Trustees Ltd. Beyond that, ownership is unclear. A Fiduchi spokesperson told JEP: “We are unable to comment on individual customer queries.”

Imperial Yachts is considered one of Fiduchi’s biggest customers.

The US action against Mr Kochman and Imperial Yachts follows the seizure of the £270m mega-yacht Amadea in Fiji last month.

US authorities believe it is owned by sanctioned Russian billionaire Suleiman Kerimov, with Imperial Yachts negotiating its sale in 2021.

The yacht was returned to the United States after a legal battle in Fiji with holding company Amadea officially registered with Millemarin Investment. US officials managed to take possession of the yacht and sail it under the US flag, with Amadea arriving in Honolulu this week.

The 348-foot yacht features a helipad, lobster pond, swimming pool, hot tub, fire pit, five-ton stainless steel Art Deco albatross figurehead, winter garden and luxurious interiors. Its annual running costs are estimated at £20-25 million.

According to a New York Times article about Mr Kochman and his companies – which described Jersey as a “secret haven” – documents found on board suggest Imperial Yachts was running the vessel as part of its high-profile services.

Imperial, dubbed a “Kremlin-associated yacht brokerage” by the U.S. Treasury, handles everything from initial construction and fit-out to charters and crewing services.

In response to international media inquiries about US sanctions, Imperial Yachts released a statement on its website saying the company had been “targeted by numerous baseless and inaccurate accusations”.

The statement said the accusations made by the US government and the press are “false” and that the company “is not involved in our client’s financial affairs.”

But US officials told the NYT it was the responsibility of people in the yacht service industry to avoid doing business with those on the sanctions list or they too would be subject to sanctions.

A spokesperson for the Jersey government said: “Jersey is a British Crown dependency and applies UK self-governing (i.e. non-UN) sanctions. It does not apply the self-governing sanctions of any other country. .

“The UK takes a robust and thorough approach when making stand-alone sanctions designations or proposed UN sanctions lists, informed by access to extensive intelligence and data, and underpinned by legally sound processes that consider the rights of individuals as well as international foreign policy issues.This is consistent with policy adopted in other Crown Dependencies and many Overseas Territories.

“It is not possible to hide the beneficial owner of an entity in Jersey. Jersey enjoys good relations with US authorities, regularly exchanges beneficial ownership information with US authorities, and was recently publicly recognized for its assistance in a US sanctions investigation.

“The island has long supported financial crime investigations by the United States and other countries around the world.”

In a statement, the JFSC said: “Jersey has a mature and sophisticated regime to combat money laundering and terrorist financing.” Working in partnership with government and other agencies, we are actively committed to upholding international standards for the prevention and detection of money laundering and terrorist financing. Where this includes penalties, we will ensure that these and our strong laws are followed. The JFSC does not comment on individuals and/or entities and therefore the JFSC will not provide any further comment at this time.

]]>
Europe new battleground for platform monopolies https://gametowne.com/europe-new-battleground-for-platform-monopolies/ Thu, 16 Jun 2022 20:52:51 +0000 https://gametowne.com/europe-new-battleground-for-platform-monopolies/ In Apple’s current antitrust issues, the focus of the company’s legal concerns is increasingly shifting from the United States to Europe as investigations by European and UK authorities call for changes to Apple’s policies. Meanwhile, although the company is sometimes lauded for having less monopolistic business practices than its rival, Alphabet, Google’s parent company, is […]]]>

In Apple’s current antitrust issues, the focus of the company’s legal concerns is increasingly shifting from the United States to Europe as investigations by European and UK authorities call for changes to Apple’s policies.

Meanwhile, although the company is sometimes lauded for having less monopolistic business practices than its rival, Alphabet, Google’s parent company, is nonetheless in European hot water.

For both companies, pressure from competition watchdogs on the continent stems from the way Apple and Alphabet impose strict limits on how users of the platform can monetize their content, making it difficult, if not impossible, for the creators not to grant a share to the giants of Big Tech.

Since 2010, the European Commission has opened a number of antitrust investigations into Google’s activities in the bloc, alleging the company is abusing its dominant market position in violation of European competition laws.

To date, three investigations have resulted in formal charges against Alphabet, which has been fined more than €8 billion by the commission.

Read more: Dutch watchdog to probe Google’s Play Store policies

More recently, Alphabet offered to let rival ad intermediaries place ads on YouTube to answer a crucial part of an EU antitrust probe into whether the world’s biggest video platform was giving itself an unfair advantage. by restricting access to user data. And according to people familiar with the investigation, the move could allow Alphabet to settle the case without further fines, Reuters reported.

Apple’s European problem

Just when it looked like Apple’s fight against antitrust lawsuits was coming to an end, a series of recent announcements show that the case is far from closed on Apple’s App Store monetization model. ‘company.

While the years-long battle between Apple and Epic Games appears to be over, for now Apple’s restrictive App Store policies are still unclear.

Read also: Epic Files Motion to stop Google from removing Bandcamp from the Play Store

The company’s decision in 2021 to reduce the commission percentage it charges on in-app payments appears to have done little to appease app developers, who have long argued that Apple’s App Store policies are hampering competition and ultimately stifle innovation.

Related: Apple uses developer revenue to defend App Store practices

In light of these complaints, many app developers may be pleased with recent developments in Germany, where the country’s competition regulator, Bundeskartellamt, has announced it is investigating an iOS framework called App Tracking Transparency. (ATT).

Learn more: Apple app tracking rules spark German antitrust scrutiny

ATT requires third-party apps to request permission from iOS users to track their digital activity for ad targeting. The anti-competition objections stem from the fact that Apple itself is not subject to its own rules.

The Bundeskartellamt investigation will be closely watched by authorities in France and Poland, who have expressed similar concerns about how ATT is being used by Apple to erect unfair barriers for other companies.

Moving duopoly

Outside the EU, the UK competition watchdog has published its final report on an in-depth investigation into what he sees as the monopolistic practices of Big Tech mobile platforms. The report reaffirms the concerns of the Competition and Markets Authority (CMA) about how Apple and Google are unfairly exploiting their status as guardians of the mobile ecosystem.

The report succinctly summarizes many app developers’ problems with the current state of the app store market as follows: “Apple prohibits alternate app stores and sideloading on iOS. Google allows alternatives, but the result on Android is much the same, in part because of the hardware barriers to entry and expansion faced by competing app stores.

Given that the UK government has delayed passing reforms that would give the CMA greater enforcement powers, the report acknowledges that many of the authority’s concerns are unlikely to be resolved anytime soon.

Related: UK digital strategy must be the anti-EU regulator

In a post-Brexit regulatory twist, it looks likely that the EU will be the first to tackle mobile duopoly, a move that would force Google and Apple to change policies and take further legal action in the UK. useless.

Register here for daily updates on all of PYMNTS’ Europe, Middle East and Africa (EMEA) coverage.

——————————

NEW PYMNTS DATA: THE CUSTOM PURCHASING EXPERIENCE STUDY – MAY 2022

About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.

]]>
BofA Brings Virtual Account Management to the US https://gametowne.com/bofa-brings-virtual-account-management-to-the-us/ Tue, 14 Jun 2022 14:01:55 +0000 https://gametowne.com/bofa-brings-virtual-account-management-to-the-us/ After launches in the Netherlands, Ireland and the UK, Bank of America is bringing its Virtual Account Management (VAM) tool to the US As the company stated in a press release Tuesday, June 14, the solution allows companies to create virtual accounts that serve as sub-accounts linked to a physical account. “Today’s large enterprises typically […]]]>

After launches in the Netherlands, Ireland and the UK, Bank of America is bringing its Virtual Account Management (VAM) tool to the US

As the company stated in a press release Tuesday, June 14, the solution allows companies to create virtual accounts that serve as sub-accounts linked to a physical account.

“Today’s large enterprises typically have a complex account structure, which creates challenges for real-time visibility and reconciliation,” said Liba Saiovici, head of Global Receivables in Global Transaction Services at Bank of America. “Our VAM solution will help customers who want to streamline their bank account structures and increase the efficiency of their treasury operations and global cash management.”

According to Bank of America, the tool allows treasurers to create a virtual account within 24 hours and view its transactions in real time, as well as transactions related to other virtual accounts linked to the same physical account.

The bank said its VAM solution can be integrated with all major enterprise resource planning systems and “supports cross-company cash movement across virtual accounts for complex cash management operations.”

Bank of America said VAM will support ACH, wire transfers, vaults, check disbursements, in-house vaults and remote deposits. The program is expected to arrive in other countries in Europe, Latin America and Asia during the rest of 2022 and into next year.

Last month, PYMNTS interviewed Jennifer Petty, managing director of treasury products at Bank of America, who spoke of an increased urgency to embrace digital business transactions as working from home becomes more firmly entrenched.

See also: Buried B2B payments shortcuts often hide in plain sight

“We’ve seen a 50% increase in the number of customers coming to us month over month to talk to us about digitization,” Petty said. As these customers become more familiar with digital payments, they are modernizing transactions to and from their end consumers.

“We’re in an economy where customers are very focused on spending and focused on how they can improve their working capital,” Petty told PYMNTS, adding that “we’re able to see the ins and outs data really trying to streamline payments. . And there’s a lot of information we can use to help these companies go from digital ‘point A to point B’.”

——————————

NEW PYMNTS DATA: THE CUSTOM PURCHASING EXPERIENCE STUDY – MAY 2022

About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.

]]>
New Zealand’s economy and society at a crossroads https://gametowne.com/new-zealands-economy-and-society-at-a-crossroads/ Sun, 12 Jun 2022 20:27:00 +0000 https://gametowne.com/new-zealands-economy-and-society-at-a-crossroads/ Summary of key points:- Premature call for US inflation spike New Zealand at a crossroads in the post-Covid economic era Premature call for US inflation spike There were high expectations in the US ahead of last Friday’s CPI inflation figures for May that the annual inflation rate will record a peak for the 12 months […]]]>

Summary of key points:-

  • Premature call for US inflation spike
  • New Zealand at a crossroads in the post-Covid economic era

Premature call for US inflation spike

There were high expectations in the US ahead of last Friday’s CPI inflation figures for May that the annual inflation rate will record a peak for the 12 months to May, lower than the 12 months to May. in April, that is to say the confirmation of the inflation peak. The view of this column over the past few weeks has been that when financial and investment markets saw the US annual inflation rate falling, instead of rising, sentiment and direction would change for bond yields. lower, stable stock markets and a weaker US dollar. .

This call turned out to be slightly premature, as the increase in core inflation (excluding volatile and uncontrollable food and energy prices) for the month of April came in at +0.60% , slightly above the previous consensus forecast of +0.50%. The annual core inflation rate is at 6.00% (above the previous forecast of 5.90%). The guardians of inflation, the Federal Reserve, manage monetary policy on the measure of underlying inflation and not on headline numbers, because changes in interest rates have no impact on the global costs of oil/freight and weather conditions determining food prices. It was a near miss; However, markets expressed disappointment with the Dow Jones stock index falling 880 points, with 10-year bond yields jumping to 3.16% from 3.03% and the US dollar index rising to 104. .2 versus 102.50. As a result of the stronger USD and stock market sell-off, the NZD/USD exchange rate fell to 0.6360 from 0.6450.

Similar to the April inflation numbers in the US, the components that rose again in May were housing and air fares. Prices for new and used cars surprisingly rose after posting declines in recent months. Mortgage interest rates in the United States have risen sharply in recent months, rising from less than 3.00% to 5.50%. The chart below indicates that it seems inevitable that activity, prices and confidence in the US housing market will decline significantly over the next few months due to rising mortgage interest rates.

Combined with gasoline prices rising above US$5 a gallon, the slowing housing market will hit U.S. consumers hard and the resulting weaker demand in the economy will ease core inflationary pressures. . Some are calling on the Federal Reserve to accelerate interest rate hikes to 0.75% at its next meeting (6am Thursday June 15 NZ time), but that seems unlikely as the results underlying inflation are not significantly higher than the Fed’s forecasts.

The expected ‘V’ shaped rally in the NZD/USD rate to 0.6800 has been reversed with this latest US inflation reading. However, the peak of inflation (and therefore the peak of the USD) has only been delayed in time, not completely ruled out. It looks like we will have to wait for the June US inflation numbers on July 14th to see a confirmation of the peak. Currency and bond markets will start pricing in this likely outcome well before July 14th. Local USD exporters who only executed 50% of their longer term three- and four-year hedging intentions now have the option at 0.6360 to trade the balance.

New Zealand at a crossroads in the post-Covid economic era

By any measure of historical and international comparisons, the New Zealand economy is currently expected to be in a golden period with export prices at 40-year highs (terms of trade index) and unemployment at one record high of 3.2%. Higher export earnings and many jobs with rising wages suggest increased living standards and peace/happiness for all.

The ‘Rockstar’ economy continues now that Covid is out of the way, right?

Unfortunately, the rather sad reality of life in New Zealand today, despite export success and low unemployment, seems more like a syndrome of resignation, division and resentment. The hangover for the state-sponsored party economy in 2020 and 2021 (money printing and tax splurges) is hitting hard with little improvement in sight.

Any foreigner looking at New Zealand today, perhaps an overseas investor or a potential immigrant looking for new opportunities, is bound to observe the following less than positive images and direction:-

  • Works: The reasons why the unemployment rate is so low is that young people are voting with their feet and leaving the country in droves for great opportunities in Australia and also because of inconsistent government policies restricting immigration. Delays/shortages of products and services in all aspects of life in New Zealand are currently entirely due to a chronic shortage of workers. A competent government would have an immigration action plan to solve the problem.
  • Education: Any nation that only has 60% of its children in school regularly (and only aspires to increase that to 70% in the next two years!) is already on a slippery slope standard of living and social unrest. Again, the government has contributed to this problem by instilling public fears over the Covid pandemic and by abolishing the centralized school truancy management system.
  • Lodging: New Zealanders’ preoccupation with buying and selling existing homes with each other, causing inevitable booms and busts, adds no growth or wealth to the economy. Coupled with food prices well above other countries, ridiculous property prices relative to income make New Zealand a very expensive and unattractive place to live. The answer to this problem lies in urban land zoning and economies of scale/competition in building homes.
  • Law and order: Poor police forces are under pressure from an overburdened justice system, undetained criminals, criminals imported from Australia 501, gang violence seemingly condoned by politicians and methamphetamine addiction leading to poverty and suffering children. All of these issues are interrelated, but there is no leadership from anyone to solve the problems.
  • Health: Government inaction and restructuring decisions have left primary, secondary and tertiary health services dangerously underfunded, staff under extreme pressure and in general disarray. Delayed screenings, interventions and operations due to Covid cause more grief than Covid itself.
  • International exchange: We seem confused and without a plan in this critical area for the economy. We have a very successful free trade agreement with China and we have extended it to 10 other Pacific Rim economies with the CPTPP. However, the Prime Minister’s recent visit to the United States has apparently changed New Zealand’s non-aligned foreign policy stance post-ANZUS, which has rightly upset our biggest trading partner, China. If our exporters experience unexplained blockages at Chinese docks over the next few months, they will know who to blame!
  • Climate change, carbon and agriculture: To bring international attention and applause to climate change policies, the current government seems determined to impose additional costs and BS regulatory compliance on our most important and productive industry, agriculture. Historically, agricultural science has been the backbone of New Zealand’s economy and our super-smart agri-scientists will find the solutions to methane emissions and sequestration through plant/animal farming and carbon sinks /methane. A smart government would invest heavily in this science, without overtaxing our hard-working farmers to grow food. Considerable resentment is growing again in rural New Zealand as farming as an industry is hammered by ideological socialist politicians in Wellington who don’t seem to understand that the agricultural export sector has saved the bacon from the economy over the past two years.

The direction that New Zealand takes in the coming years with its political leadership and related economic policies will determine whether we continue on the current path to a Venezuelan outcome or to a more prosperous path and a socially consistent example like Denmark.

With some policy changes to make our economy more competitive and attractive to foreign investors and immigrants, the balance of odds favors the Kiwi Dollar after the Danish Krone over the Venezuelan Bolivar!

Select chart tabs



*Roger J Kerr is Executive Chairman of Barrington Treasury Services NZ Limited. He has been writing commentaries on the New Zealand dollar since 1981.

]]>
UK Treasury opens consultation on proposed insolvency regime to manage stablecoin failure | Cadwalader, Wickersham & Taft LLP https://gametowne.com/uk-treasury-opens-consultation-on-proposed-insolvency-regime-to-manage-stablecoin-failure-cadwalader-wickersham-taft-llp/ Fri, 10 Jun 2022 21:59:39 +0000 https://gametowne.com/uk-treasury-opens-consultation-on-proposed-insolvency-regime-to-manage-stablecoin-failure-cadwalader-wickersham-taft-llp/ On May 31, 2022, the UK Treasury announcement a consultation on government proposals to address the failure of systemic digital settlement asset (“DSA”) businesses (including stablecoins) by adapting the Special Administration Regime of Financial Market Infrastructure (“ IMF SAR”) existing. According to a article in the FinancialTimes, the Treasury said that the failure of a […]]]>

On May 31, 2022, the UK Treasury announcement a consultation on government proposals to address the failure of systemic digital settlement asset (“DSA”) businesses (including stablecoins) by adapting the Special Administration Regime of Financial Market Infrastructure (“ IMF SAR”) existing.

According to a article in the FinancialTimes, the Treasury said that the failure of a systemic stablecoin could jeopardize the “continuity of services essential to the functioning of the economy and the access of individuals to their funds or assets”. The failure of the terra stablecoin has greatly heightened concerns among many regulators about the lack of transparency and potential weaknesses in the market. The Treasury said “events in the crypto-asset markets have further underscored the need for appropriate regulation to help mitigate risk to consumers, market integrity and financial stability.”

The government considers that the Bank of England (‘BoE’) and not the Financial Conduct Authority (‘FCA’) should be the primary regulator in the administration of systemic DSA companies. It is proposed that the BoE be given the power to lead an appointed administrator. According to the consultation, the government intends to amend the IMF SAR to include an additional objective covering the return or transfer of funds and assets on deposit which can only be taken into account when the IMF SAR is applied to companies DSA systems. In addition, it is suggested that the BoE consult the FCA (1) before issuing instructions to administrators regarding the objectives of the scheme and (2) when seeking a special administration order for a systemic DSA business subject to the regulatory requirements imposed by both BoE and CIF. The government said the new rules would “allow administrators to consider the return of customer funds and private keys as well as continuity of service”.

The Treasury requested answers to the following questions:

  1. Do you have any comments on the intention to designate the IMF SAR as the primary regime for systemic DSA companies that are not banks?
  2. Do you have any comments on the intention to establish an additional objective for the IMF SAR focused on the return or transfer of customer funds, similar to that found in the Special Administrative Regime for Payments and Electronic Money, to apply only to systemic DSA companies?
  3. Do you have any comments on the intention to give the BoE the power to direct the administrators and to introduce new regulations in support of the IMF SAR to ensure that the additional objective can be managed effectively, or what other regulation might be necessary?
  4. Do you have any comments on the intention to require the BoE to consult the FCA before seeking an administrative order or directing administrators in the event of regulatory overlap?

Submissions must be made by August 2, 2022, after which the government will review all submissions and publish its response.

]]>
Even 3% yields can’t attract wary Treasury investors https://gametowne.com/even-3-yields-cant-attract-wary-treasury-investors/ Thu, 09 Jun 2022 05:58:53 +0000 https://gametowne.com/even-3-yields-cant-attract-wary-treasury-investors/ Placeholder while loading article actions For much of the last decade, US bond investors lamented the ultra-low yields on government securities. Today, the highest inflation in 40 years pushed ‘income’ back into ‘fixed income’ as yields fell the most on record and yields jumped. What investors need to decide now is whether getting back into […]]]>
Placeholder while loading article actions

For much of the last decade, US bond investors lamented the ultra-low yields on government securities. Today, the highest inflation in 40 years pushed ‘income’ back into ‘fixed income’ as yields fell the most on record and yields jumped. What investors need to decide now is whether getting back into the beleaguered asset class is a timely move or an invitation to grab a falling knife.

Caution is in order and for good reason. Traders who thought Treasury yields peaked last month, with two-year notes yielding around 2.78%, are seeing them take another run at those highs, and the 10-year note has cracked again 3% this week. Investors at the reopening of 10-year Treasury bonds on Wednesday – the highest yield since 2018 – offered lukewarm demand. They submitted offers for 2.41 times the amount offered, which was lower than the average of 2.5 times over the past six reopenings. Fixed income funds recorded significant outflows throughout the year. Jim Vogel, an analyst at FHN Financial, wrote that the auction went “with an obvious lack of enthusiasm” that echoed another auction earlier this week.

Markets are still trying to determine how much the Federal Reserve is willing to raise the fed funds rate as it tries to keep inflation from taking root in the US economy, and attention has turned. to the report on the consumer price index which should be published. Friday. Economists polled by Bloomberg forecast consumer prices rose 8.2% in May from the month a year earlier, still near the highest since the 1980s. Inflation may have hit a peak, but the downward slope is far from steep enough to reassure the central bank. the inflationary stick to the service sector of the economy. The cross-currents can be dizzying for investors and economists, who agree that the Fed will raise interest rates through the summer, but are beginning to differ sharply on what they think the central bank will do in the fall, when the economy may have slowed considerably. With inflation as high as it is, bonds yielding between 2.5% and 3% may still seem like meager compensation. These coupon payments will likely buy fewer groceries next year than they do today.

On the other hand, no one expects inflation to stay this high forever, which can make buying and holding long-term bonds attractive. Exchange-traded fund investors began returning to mid- to long-term US government bond funds in early May when it looked like yields had peaked, but they appear to have fallen back recently. as it became less clear that yields had plateaued. .

The debate is not whether inflation will stay above 8% for the foreseeable future, but how fast it will fall and whether the economy is ready for future peaks. Supply chains remain somewhat blocked, but have improved. Energy prices are high, but they never stay high forever.

This does not necessarily mean that short-term bond yields are back below the 0.5% level that prevailed in the decade following the financial crisis. There are also longer-term opposing forces, with prognosticators fearing that the war in Ukraine and the pandemic supply chain experiment are among a confluence of factors that will reverse globalization, prompting developed countries to produce goods. potentially more expensive closer to home. Others predict that the transition to clean energy will entail higher costs, at least initially, as society invests in new products and infrastructure.

Yet interest rates have been on a clear downward path for decades – even centuries, according to economic historians – and history suggests they will settle much lower than they are today. today. For long-term investors, long-term bonds can be a worthwhile investment. It’s mostly a question of whether other investors have the confidence to risk a notch or two.

More other writers at Bloomberg Opinion:

• Beware of a bear market that is more than a bear cub: Nir Kaissar

• Inflation’s ‘fun’ period was far too short: Jared Dillian

• Today’s pensions don’t favor Millennials and Gen Z: Erin Lowry

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Jonathan Levin has worked as a Bloomberg reporter in Latin America and the United States, covering finance, markets, and mergers and acquisitions. Most recently, he served as the company’s Miami office manager. He holds the CFA charter.

More stories like this are available at bloomberg.com/opinion

]]>
Community Bank of the Bay raises $119.4 million; The US Treasury invests in preferred stocks https://gametowne.com/community-bank-of-the-bay-raises-119-4-million-the-us-treasury-invests-in-preferred-stocks/ Tue, 07 Jun 2022 13:39:00 +0000 https://gametowne.com/community-bank-of-the-bay-raises-119-4-million-the-us-treasury-invests-in-preferred-stocks/ News and research before you hear about it on CNBC and others. Claim your one week free trial for StreetInsider Premium here. OAKLAND, Calif., June 07, 2022 (GLOBE NEWSWIRE) — Bay Community Bancorp, (OTC Pink: CBOBA) (the “Company”), today announced that its wholly-owned subsidiary, Community Bank of the Bay, (the “Bank”), a San Francisco Bay […]]]>

News and research before you hear about it on CNBC and others. Claim your one week free trial for StreetInsider Premium here.


OAKLAND, Calif., June 07, 2022 (GLOBE NEWSWIRE) — Bay Community Bancorp, (OTC Pink: CBOBA) (the “Company”), today announced that its wholly-owned subsidiary, Community Bank of the Bay, (the “Bank”), a San Francisco Bay Area commercial bank and California’s first FDIC-insured Community Development Financial Institution (“CDFI”) with full-service offices in Oakland, Danville and San Mateo, completed an investment of $119.4 million from the US Treasury Department.

The Treasury investment, made under the Emergency Capital Investment Program (“ECIP”), is in the form of non-cumulative senior perpetual preferred shares. For the first two years from the date of issuance of the Perpetual First Preferred Shares, the dividend rate will be zero percent (0%) per annum, and thereafter dividend payments will begin to accrue. accrue with a maximum dividend rate of two percent (2%) and the dividend rate may be reduced to one-half percent (0.5%) depending on the level of increase in qualifying loans made by the Bank. On October 18, 2021, the Treasury announced that 204 credit unions, banks, and savings and loan holding companies had applied for total investments of more than $12.88 billion under the ECIP program and that the application exceeded the amount available by $4.13 billion.

On December 14, 2021, at the Freedman’s Bank Annual Forum in Washington, D.C., Treasury Secretary Janet L. Yellen and Vice President Kamala Harris announced that the U.S. Treasury would invest $8.7 billion in up to 186 Minority Depository Institutions (“MDIs”). and CDFI banks and credit unions to accelerate the recovery of small businesses, minority-owned businesses and consumers, especially those in low-income and underserved communities who may have been disproportionately impacted by the economic effects of the COVID-19 pandemic. The Bank previously announced that it was one of five California banks and six credit unions to be approved by the US Treasury for an ECIP investment.

“This capital, in the form of qualifying Tier 1 preferred stock, presents a truly transformative opportunity for our Bank, our shareholders, our customers and the communities we serve,” said William E. Purcell, Chairman of Bay Community Bancorp. . Great Financial Crisis, the Bank raised capital four times to support our growth from less than $85 million in total assets to nearly $1 billion. Although each previous capital raise was successful, the process was cumbersome and dilutive for shareholders. Deployed correctly, this new capital can support over $1 billion in asset growth and allows us to focus intensely on enhancing shareholder value as we build on our banking business model. successful community.

“We are particularly pleased that our ECIP application and loan plan, which draws heavily on our more than ten years of financial performance and community impact experience, has earned the full investment possible under ECIP guidelines, even though the program was oversubscribed by more than $4 billion,” said William S. Keller, President and CEO. “This substantial capital increase will result in increased lending capabilities and new services that will better meet the needs of Bay Area small and medium-sized businesses, real estate developers and investors, service organizations and independent creators. , especially those who traditionally operate and reside in underserved communities.

For more information on the US Treasury ECIP investment, please visithttps://home.treasury.gov/policy-issues/coronavirus/assistance-for-small-businesses/emergency-capital-investment-program

About Bay Community Bancorp and Community Bank of the Bay

Bay Community Bancorp (OTCPink: CBOBA) is the parent company of Community Bank of the Bay, a San Francisco Bay Area commercial bank with full-service offices in Oakland, Danville and San Mateo. Community Bank of the Bay serves the financial needs of private businesses and professional services firms, as well as their owner-operators and nonprofit organizations throughout the San Francisco Bay Area. Community Bank of the Bay is a Member of the FDIC, an SBA Preferred Lender and a CDARS Depository Institution, headquartered in Oakland, with full-service branches in Danville and San Mateo. It is California’s first FDIC-certified community development financial institution and one of only three operating in the Bay Area. The bank is credited with establishing the Bay Area Green Fund to fund sustainable businesses and projects and support environmentally friendly values. Additional information about the bank is available online at www.BankCBB.com.

Forward-looking statements

This release may contain forward-looking statements, such as, but not limited to, statements about plans, expectations and objectives for growth and improvement. Forward-looking statements are subject to risks and uncertainties. These risks and uncertainties may include, but are not limited to, interest rate fluctuations, inflation, government regulations and general economic conditions, including the California real estate market and other factors beyond the will of the Bank. These risks and uncertainties could cause results for subsequent interim periods or for the full year to differ materially from those those indicated. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. The Bank does not undertake, and expressly disclaims any obligation, to update or revise any forward-looking statement, whether to reflect new information, future events or otherwise, except as required by law.

Contacts: William S. Keller, President and CEO510-433-5404[email protected]

main logo

Source: Bay Community Bancorp

]]>