IMF/KIEV: ‘ Agree on Set of Measures for Payment of Next Tranch’e of $1.7-Billion in Bailout Money – IMF Press Services ‘


#AceFinanceNews – IMF/KIEV:July.04: The International Monetary Fund and Kiev’s representatives have agreed on a set of measures to be taken by Ukraine in order to receive $1.7 billion in bailout money, according to the IMF press service.

The much-needed 2nd tranche of a promised $17.5 billion support package will be released when the IMF’s Ukrainian mission determines that the requirements of the agreement have been met, though the press release did not specify what those conditions might be.

The IMF’s management and board will also have to approve the final release of funds. Initially, the IMF predicated their support on Ukraine reaching a deal with its private creditors to restructure its debt to reduce its payments by $15 billion over four years.

This has not proven easy, however, and the IMF now says it may release funds to Kiev even if it defaults on its private creditors.

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BRITAIN: UK exporters feeling the heat from eurozone crisis


#AceFinanceNews – Headlines:July.04:
UK exporters feeling the heat from eurozone crisis

http://www.theguardian.com/business/2015/jul/04/uk-exporters-feeling-the-heat-from-eurozone-crisis

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Article: Volatility in China’s stock markets stokes conspiracy theories


#AceFinanceNews – CHINA:July.03:
Volatility in China’s stock markets stokes conspiracy theories

http://www.theguardian.com/business/2015/jul/03/china-stock-markets-volatility-conspiracy-manipulation

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MARKETS: FTSE marks biggest weekly drop in a month


#AceMarketsNews – July.03: LONDON (Reuters) – Britain’s blue-chip share index marked its biggest weekly drop in a month on Friday, with miners slipping on a slowdown in China and banks falling after Brazil said it was investigating some global lenders’ currency market activity.

The index fell broadly in line with shares across Europe before a Greek referendum on Sunday on its debt terms that may decide the country’s future in Europe.

The FTSE 100 closed 0.7 percent lower at 6,585.78 points and hardly moved on data showing Britain’s services sector grew more than expected last month.

The index has fallen more than 2 percent so far this week, marking its worst weekly percentage fall since early June on concerns about Greece’s debt crisis.

The banking index fell 1.2 percent on news that Barclays, HSBC, Royal Bank of Scotland and Standard Chartered were among those under investigation on suspicion of rigging the Brazilian real.

Royal Bank of Scotland fell 1.9 percent, also hit by news the bank may need to pay $13 billion to settle claims that it misled investors in mortgage-backed securities, according to documents filed in a U.S. court.

The UK mining index fell 1.2 percent after a survey showing services sector activity in China, the world’s top metals consumer, slowed to its lowest in five months in June. Rio Tinto, BHP Billiton and Anglo American all dropped about 1 to 1.9 percent.

A further sharp sell-off in Chinese stocks also weighed on sentiment. The rout has wiped trillions of dollars off Shanghai- and Shenzhen-listed shares.

“The markets are looking at the bigger picture and focussing on what’s happening in Greece and China. The Chinese slowdown and stock market wobbles there are making their presence felt,” Commerzbank equity strategist Peter Dixon said.

“Investors don’t want to be ‘long’ going into the weekend and would wait for the Greek referendum results for a clearer market direction,” he said.

The International Monetary Fund delivered a stark warning on Thursday of the huge financial hole facing the country.

(Editing by Andrew Heavens)

FTSE marks biggest weekly drop in a month

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#BRICS ‘ Market Means Independence from West Says Indian Delegate ‘


#AceFinanceNews – #BRICS According to a member of the Indian delegation at the BRICS Civic Forum in Moscow, a common market between BRICS member states would ensure the countries’ economic independence from the West.

MOSCOW (Sputnik), Yulia Shamporova – A common market between BRICS member states would ensure the countries’ economic independence from the West, a member of the Indian delegation at the BRICS Civic Forum in Moscow told Sputnik on Thursday.

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LONDON: ‘ Bank of England says primed for action over Greek crisis ‘


#AceFinanceNews – Featured LONDON (Reuters) – The Bank of England said on Wednesday it stood ready to take any action required in response to Greece’s worsening debt crisis, and warned that lack of liquidity left financial markets vulnerable to a sell-off.

Greece’s troubles were the most rapidly looming threat to financial stability in Britain, the BoE said, but other dangers came from a record current account deficit, highly indebted housing market and threats to banks from computer hackers and misconduct by their own staff.

The greater focus on financial markets highlights the BoE’s growing interest in areas beyond formerly troubled banks, potentially setting up a clash with other regulators and the asset-management industry.

Bank of England says primed for action over Greek crisis

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MARKETS & JOBS: Asia stocks rise for 3rd day though Greece, China concerns weigh


#AceMarketsNews – HONG KONG (Reuters) – Asian stocks advanced for a third consecutive day and the greenback advanced on Thursday helped by upbeat U.S. economic data though weak Chinese stocks and Greece’s standoff with its creditors capped gains.

Stocks in Shanghai fell 0.9 percent on Thursday, taking that market’s total losses to nearly a quarter since a June 12 peak even as authorities have rolled out numerous market-friendly measures such as reduced interest rates cuts and slashed trading costs.

Shares in Shanghai and Shenzhen have lost a quarter of their market capitalization since the rout began, according to Thomson Reuters data.

Broader investor sentiment is also expected to remain cautious in the coming weeks, thanks to growing uncertainty over whether Greece can step back from an economic abyss after its debt default to the International Monetary Fund, and doubts over its future in the euro zone.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 percent in volatile trade. Tokyo’s Nikkei climbed 1.1 percent thanks to a weaker yen, while South Korea’s Kospi rose 0.5 percent.

“We are shaping up for a bumpy ride in the summer as the Greek crisis means a risk-on, risk-off approach is seen in the markets,” said Tai Hui, chief markets strategist at JP Morgan Asset Management in Hong Kong. “Investors are likely going to move towards a more conservative positioning in their portfolios.”

Greek Prime Minister Alexis Tsipras has called a referendum on Sunday that could determine his country’s future in Europe. On Wednesday, Tsipras urged Greeks to reject an international bailout deal, souring hopes of any breakthrough.

OFFGUARD

The calling of the referendum caught global investors by surprise even as underlying market volatility has picked up, suggesting that equity positions may come under pressure, according to Barclays strategists.

A popular gauge for measuring market volatility has pulled back from this week’s highs but remains at elevated levels.

While U.S. stocks ended up overnight, shares had trimmed intraday gains as Athens refused to soften its stance on bailout terms with its creditors.

“July 5th (day of Greek referendum) is the next key date for the euro and after that July 20th, when Greece owes the European Central Bank 3.5 billion euros,” Kathy Lien, managing director of FX Strategy for BK Asset Management, wrote.

“If this payment is missed, the ECB will most likely pull the plug on liquidity to Greek banks, which would have a more dramatic impact than the latest default, leading to increased uncertainty for Greece, the euro and the financial markets as a whole.”

The euro came under pressure once more as hopes of a resolution retreated overnight.

The common currency’s fall was exacerbated by strong U.S. data, which pushed Treasury yields higher and underpinned the dollar.

On Wednesday, the ADP National Employment report showed that 237,000 private-sector U.S. jobs were created in June, handily exceeding the median expectation in among economists surveyed by Reuters for a gain of 218,000. Construction spending in May was equally strong, hitting the highest level since October 2008.

Investors are now awaiting another batch of U.S. data from durable goods to nonfarm payrolls ahead of a holiday on Friday, in observance of the July 4 Independence Day.

The euro was up 0.1 percent at $1.1068 after losing 0.9 percent on Wednesday. The euro has lost about 1 percent this week.

The dollar was also up against the yen, gaining 0.2 percent to 123.44 and hovering near a one-week high.

In commodities, U.S. crude steadied somewhat after shedding 4 percent overnight on data showing stockpiles in the United States rose for the first time in more than two months. [O/R]

U.S. crude was little changed at $57.04 a barrel.

(Additional reporting by Shinichi Saoshiro in TOKYO; Editing by Richard Borsuk)

Asia stocks rise for 3rd day though Greece, China concerns weigh

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Germany’s first interest-free Islamic bank opens in Frankfurt


#AceFinanceNews – GERMANY: July.01: Germany’s first interest-free Islamic bank opens in Frankfurt
July 01, 2015 21:32

Reuters / Osman Orsal

Germany has opened its first Islamic bank representing a full range of banking services in accordance with the laws of Sharia. The Frankfurt-based bank, called KT Bank AG, is owned by Kuveyt Turk, the largest Islamic banking institution in Turkey.

KT Bank has also opened its affiliates in Mannheim and Berlin and plans to reach Cologne, Hamburg and Munich in the near future.

The Sharia law Islamic banks prohibit bank from charging interest on loans, as well as to take part in investments, especially those considered haram, like gambling, weapons, prostitution and alcohol.

Thus, Islamic banks do not provide customers with a mortgage; instead they buy a house and resell it at a higher price that already includes interest. Given the fact that the bank pays the tax twice – with the purchase and sale of the house – deals become much more expensive compared to those from conventional banks.

Among 4.5 million Muslims residing in Germany, 21 percent are ready to use the services of an Islamic bank, said the head of Kuveyt Turk Bank Kemal Ozan referring to a poll carried out by his company. However, Kuveyt Turk noted that it focuses not only on the Muslims living in Germany, but expects to approach the entire German market.

In 2010, Kuveyt Turk opened a small office in Mannheim, Baden-Wuerttemberg. In 2012 it appealed to the German authorities for a full banking license.

Istanbul-based Kuveyt Turk is one of the largest banks in Turkey and is part of Kuwait Finance House, which is mostly owned by Kuwaiti investors.

Islamic banks have already proved quite successful in the markets of England and France. UK houses five Islamic banks and the Islamic Bank of Britain reported a 55 percent increase in deposits of non-Muslims over 2014. The bank associates these figures with the Barclays’ rate rigging scandal.

The UK has also become the first non-Muslim country to issue sukuk – an Islamic bond equivalent similar to a participation certificate. This type of bond is also utilized in Hong Kong, Luxembourg and South Africa.

Germany’s first interest-free Islamic bank opens in Frankfurt
http://rt.com/business/271105-germany-opens-islamic-bank/

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