• Friday, October 21, 2016 - 16:17 SF Fed's Williams: Balance Sheet Will Shrink in Future 0

    --Debate At Fed About Size of Balance Sheet
    --'No Question' Wage Growth Picking Up

    WASHINGTON (MNI) - The Federal Reserve will continue to reinvest the proceeds on the $4 trillion worth of bonds it accumulated during the financial crisis until "interest rates are well away from zero," San Francisco Fed President John Williams said Friday, but over time the balance sheet will shrink.

    There has been a lot of discussion among academics and at the Fed over whether it should keep a "somewhat larger balance sheet than normal at all times" so as to give the Fed more flexibility around its policy choices, Williams said, but the...

  • Friday, October 21, 2016 - 14:30 SF Fed's Williams Again Makes Case for Gradual Hikes 'Sooner' 0

    By Jean Yung

    WASHINGTON (MNI) - San Francisco Federal Reserve Bank President John Williams on Friday repeated much of the same speech he made more than a month ago, arguing for gradual rate hikes given the economy is at full employment and prices are within sight of the Fed's inflation target.

    "In the context of a strong economy with good momentum, it makes sense to get back to a pace of gradual rate increases, preferably sooner rather than later," Williams said in a speech prepared for the Federal Home Loan Bank of San Francisco's annual members conference.

  • Friday, October 21, 2016 - 09:17 EU-Canada Deal Yet To Be Finalised, Talks Ongoing: EU Offcls 0

    BRUSSELS (MNI) - The European Union has yet to reach final agreement on a free trade agreement with Canada, but negotiations are ongoing, senior European Union officials said Friday.

    Speaking at a press conference at the end of the European Council meting in Brussels, Council President Donald Tusk said no deal had yet been reached on a deal with Canada, but negotiations were ongoing.

    European officials had hoped to sign off on a free trade agreement with Canada at this week's Council meeting.

  • Friday, October 21, 2016 - 06:51 China Outstanding Loans to Property Developers Rise 7.6% 0

    --Mortgage lending in first 9 months up 95% from year earlier

    BEIJING (MNI) - Outstanding bank loans to property developers rose 7.6% y/y to CNY7.04 trillion at the end of September, the PBOC said Friday, easing from an 8.0% growth rate in the year to August.

    The PBOC said loans for housing development were up 9.6% y/y at CNY5.47 trillion end-September, compared with 9.5% growth end August while loans for land clearance, preparation and development edged up 0.9% to CNY1.57 trillion, down from a pace of 3.1% growth y/y in the year through August.

    The PBOC also said outstanding mortgage loans at the end of September were 33.4% higher than a year earlier at CNY17.93 trillion, up from 32.5%...

  • Friday, October 21, 2016 - 06:06 Italy Padoan: No-Vote In Referendum Not the End of the World 0

    By Johanna Treeck

    FRANKFURT (MNI) - A negative outcome for the Government to Italy's constitutional reform referendum in December would not be the end of the world, Italian Finance Minister Finance Minister Pier Carlo Padoan said Friday.

    "In financial markets there is the idea that the referendum is the end of the world. Well it is not," Padoan asserted. Even in the "unfortunate" case that a no-vote prevails, Italy will continue to reform as it already has, Padoan said.

    However, Padoan stated that he expects the yes-vote to prevail and "further boost the reform efforts."

    The overall boost to confidence and political willingness to embark on reforms while new rules would accelerated the process legislation,...

  • Friday, October 21, 2016 - 05:52 BOJ Kuroda: Japan Needs Higher Labor Mobility, New Work Styles 0

    TOKYO (MNI) - Japan must increase its labor market mobility and seek a better work-life balance to overcome labor shortages and compete in global markets, Bank of Japan Governor Haruhiko Kuroda said Friday.

    Whether Japan's economy will grow in the long-run depends on whether the country's labor market can adapt to advances in technological innovation, globalization and demographic change, he told an economic conference.

    BOJ officials have been saying raising the economy's low growth potential and turning people's deflationary mindset into higher inflation expectations are crucial in boosting Japan's zero inflation to the bank's 2% price stability target.

    Technological progress increases income and purchasing power,...