China offers a financial industry exam in English, first test on May 4

Industry exams in English are the latest example of China’s financial opening up.

Starting next month, for the first time, foreign senior staff of private securities funds will be able to take the industry’s qualifying exam in English, the Asset Management Association of China said on its website April 12. The tests are for staff including chairmen and presidents, as well as investment, research and trading heads.

Fidelity International, UBS Asset Management and Man Group are among foreign firms licensed for China’s 2.6 trillion yuan ($414 billion) private securities funds industry, which caters to qualified domestic companies and wealthy individuals, rather than selling products to the public as mutual funds do. The qualifying exams were previously only offered in Chinese, sending foreign firms scrambling for the limited pool of local language speakers to fill such posts.

“This new development is a major step toward welcoming global talent,” Liu Ming, a senior associate at Shanghai-based consulting firm Z-Ben Advisors, said in an email. “This offers more opportunity for foreign managers to transfer key senior members of their overseas teams to oversee and run their China operations.”

US Federal Reserve officials discuss 'slightly steeper' future rate hikes

US Federal Reserve officials signalled that the central bank may have to accelerate the pace of future rate hikes amid stronger economic growth and inflation, according to the minutes of the Fed's latest monetary policy meeting.

"A number of participants indicated that the stronger outlook for economic activity, along with their increased confidence that inflation would return to two per cent over the medium term, implied that the appropriate path for the federal funds rate over the next few years would likely be slightly steeper than they had previously expected," said the minutes of the Fed's March 20-21 meeting released on Wednesday.

At that meeting, the Fed raised its target range for the federal funds rate to 1.5-1.75 per cent, the first rate hike of 2018, reports Xinhua.

It was also the first meeting led by Fed Chairman Jerome Powell, who took the helm of the central bank in February.

US consumer price index slips 0.1% in March, but core inflation firming

US consumer prices fell for the first time in 10 months in March, weighed down by a decline in the cost of gasoline, but underlying inflation continued to firm amid rising prices for healthcare and rental accommodation.
The drop in the headline monthly inflation reading reported by the Labor Department on Wednesday is likely temporary as producer prices increased solidly in March.

In addition, the tightening labour market is expected to start generating significant wage inflation in the second half of the year. As such, many economists believe the Federal Reserve will raise interest rates three more times this year.

The US central bank increased borrowing costs last month and forecast at least two additional rate hikes in 2018.

"US inflation is warming up rather than heating up," said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. "Still, the upward trend could suffice to nudge the Fed three more times this year."

The Consumer Price Index slipped 0.1 percent last month, the first and largest drop since May 2017, after climbing 0.2 percent in February, the Labor Department said.

GM posts loss on $7-bn non-cash charge; margins up despite sales drop

General Motors Co on Tuesday posted better-than-expected quarterly results as cost-cutting and higher vehicle prices offset a double-digit decline in US sales volume and said it expected 2018 would be a strong year globally and in North America, sending its stock up more than 1 percent.

Speaking to reporters, Chief Financial Officer Chuck Stevens said that despite recent stock market volatility due to concerns that the US economy may be overheating, the No 1 US automaker is "not overly concerned about inflation."

"Our forecast is premised on continued growth in the US economy," Stevens said. He said GM expects interest rates to rise 75 basis points in 2018.

Stevens said that a 25 basis point increase in interest rates meant an increase of only $3 for the average car loan payment.

S&P, Dow move higher as bank stocks climb again

The S&P 500 and the Dow indexes rose in morning trading on Wednesday as bank stocks added to gains following strong economic data and encouraging comments from Federal Reserve officials that sealed the case for a December rate increase.
JPMorgan climbed 1.9 percent and Bank of America rose 2.2 percent, making the S&P financial index the biggest gainer among S&P 500 sectors.

Fed chair nominee Jerome Powell said on Tuesday the case for a December rate hike was coming together and also hinted at lighter bank regulation, while Fed chair Janet Yellen said on Wednesday that a strengthening economy will warrant continued rate increases.

"Economic data has been very strong and the economy looks as good now as it ever has," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

The second revision of third-quarter gross domestic product showed growth increased at a 3.3 annual rate, up from the previously reported 3 percent.

The Fed's preferred gauge of inflation, the personal consumption expenditures (PCE) price index excluding food and energy, rose 1.4 percent in the third quarter, in line with the forecast by economists polled by Reuters.

Investors are keeping a keen eye on progress on US tax bill. Senate Republicans on Tuesday rammed forward the bill, which corporate America is hoping will slash business tax rates, in an abrupt, partisan committee vote that set up a full vote by the Senate as soon as Thursday.
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Watching inflation closely but economy is strong, says Janet Yellen

The US economy remains strong and the strength of the labour market calls for continued gradual increases in interest rates despite subdued inflation, Federal Reserve Chair Janet Yellen said on Sunday.

"We will be paying close attention to the inflation data in the months ahead," Yellen said in prepared remarks at an international banking seminar in Washington. "My best guess is that these soft readings will not persist."
Yellen also said she expected the US economy to exceed its long-term trend during the second half of the year and repeated the impact of recent hurricanes on the economy should be temporary.

The US central bank voted to hold interest rates steady at its last policy meeting in September. Since then, Yellen has repeatedly acknowledged rising uncertainty on the path of inflation, which has been retreating from the Fed's 2 percent target rate for much of the year.

Minutes from the meeting, released last Wednesday, showed policymakers had a broad debate about recent soft inflation and the impact on interest rates if it fails to rebound.

However, Yellen and some other key policymakers have also made plain they expect to continue to gradually raise interest rates given the strength of the overall economy and continued tightening of the labour market.
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US jobless claims rise by 3,000 amid tightening labour market

The number of Americans filing for unemployment benefits unexpectedly rose last week, but the underlying trend remained consistent with a tightening labour market. Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 244,000 for the week ended Aug. 5, the Labor Department said on Thursday.

Data for the prior week were revised to show 1,000 more applications received than previously reported.

Economists polled by Reuters had forecast claims would be unchanged at 2,40,000 in the latest week. With the labour market near full employment, there is probably limited room for claims to continue declining.

Claims have now been below 300,000, a threshold associated with a healthy labour market, for 127 straight weeks. Thatis the longest such stretch since 1970, when the labour market was smaller. The unemployment rate is 4.3 percent.

Labor market tightness could encourage the Federal Reserve to announce a plan to start unwinding its $4.2 trillion portfolios of Treasury bonds and mortgage-backed securities at its policy meeting next month.
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US jobless claims down 5,000, labour market tightens

The number of Americans filing for unemployment benefits fell last week, pointing to a tightening labor market that likely keeps the Federal Reserve on course to announce plans next month to start reducing its massive bond portfolio.

Labor market strength was also underscored by another report on Thursday showing US-based employers in July announced the fewest job cuts in eight months.

"The labor market remains tight as a drum even if it is not throwing off the sparks of higher wages and more inflation," said Chris Rupkey, chief economist at MUFG in New York. "The Fed can continue mopping up the stimulus provided to fight the financial crisis and recession."

Initial claims for state unemployment benefits decreased 5,000 to a seasonally adjusted 2,40,000 for the week ended July 29, the Labor Department said. Economists had forecast claims falling to 242,000.

Claims have now been below 300,000, a threshold associated with a healthy labour market, for 126 straight weeks. Thatis the longest such stretch since 1970, when the labour market was smaller. The labour market is near full employment, with the thejobless rate at 4.4 percent.

Economists believe that labour market tightness will encourage the Fed to announce a plan to start offloading its $4.2 trillion portfolios of Treasury bonds and mortgage-backed securities in September.
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Trump's 3% target for US growth quite challenging in coming years: Yellen

It would be "quite challenging" for the United States to reach the 3 percent growth target set by President Donald Trump, Federal Reserve Chair Janet Yellen told a Senate panel on Thursday in a hearing focused on regulatory reform and a discussion of lagging productivity.

Trump has pledged to boost annual growth to 3 percent, the average for much of the last 70 years, and predicated an earlier tax plan on reaching that figure.

The Fed, the Congressional Budget Office and others feel that an ageing population and lagging productivity mean the economy's potential has downshifted to around 2 percent growth or less - a fact that has profound effects on national wealth as the slower pace compounds over time.

"I think it is something that would be wonderful if you could accomplish it," Yellen said at a Senate committee hearing. "I think it would be quite challenging," and require a broad set of changes from tax reform to an improved education system that adds to labour productivity.

Yellen's appearance before the Senate Committee on Banking, Housing and Urban Affairs covered much of the same ground as her session with a House committee on Wednesday where she said the Fed's plans for further gradual rate increases and a slow drawdown of its balance sheet remain on track.
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Donald Trump tells Merkel he is not an isolationist; calls for 'fair trade'

President Donald Trump on Friday dismissed the notion that he was an "isolationist" in his policies, as he held talks with German Chancellor Angela Merkel and asserted that Germany and the US must work together towards fair and reciprocal trade policies.

"My administration is in the process of rebuilding the American industrial base. A stronger America is in the interest, believe me, of the world as a whole," Trump told reporters at a joint news conference with the visiting German Chancellor Merkel.

Germany and the United States, he said, must work together towards fair and reciprocal trade policies that benefit people of both the countries.

"Millions of hard-working US citizens have been left behind by international commerce, and together, we can shape a future where all of our citizens have a path to financial security. The United States will respect historic institutions and we will also recognise the right of free people to manage their own destiny," Trump said.

On immigration, another issue dividing Merkel and the new US president, Trump said immigration was a "privilege" and not a "right".

Responding to a question, Trump refuted the impression that he is an isolationist.

"I don't believe in an isolationist policy. But I also believe a policy of trade should be a fair policy. The United States has been treated very, very unfairly by many countries over the years. That's going to stop. But I'm not an isolationist," he said.

"I'm a free trader, but I'm also a fair trader. Our free trade has led to a lot of bad things happening. You look at the deficits that we have, and you look at all of the accumulation of debt. We're a very powerful country. We're a very strong country," said the US President.(READ MORE)