President Obama Uses Small Business Owners to Argue for Export-Import Bank

#AceFinanceNews – July.22: President Obama Uses Small Business Owners to Argue for Export-Import Bank
TIME / Maya Rhodan


President Obama said the renewing the Export-Import Bank’s charter should be a “no-brainer” during a meeting with business owners at the White House.

On Wednesday, Obama called on Congress reauthorize the bank, which Congress allowed to expire in late June, by using small- and medium-sized business owners to debunk the Congressional argument that it provides government handouts to big businesses.

“This should be a no-brainer,” Obama said Wednesday. “The Export-Import Bank makes money for the U.S. government. I just want to be clear about this: This is not a situation in which taxpayers are subsidizing these companies.”

The 81-year-old bank, which helps finance foreign purchases of U.S. products such as Boeing planes, saw its charter lapse on July 1 when Congress failed to act. Conservative activists had increasingly targeted the bank as a form of corporate welfare in recent years, and House Majority Leader Kevin McCarthy called it “crony capitalism,” although it retains some support among Republican lawmakers.

But while activists focus on the bank’s bigger clients, the White House has focused on the ways it helps smaller businesses.

“Ex-Im equips companies with financing they need to go toe-to-toe with foreign rivals, resulting in more exports and more well-paying jobs in cities and towns here in America, rather than overseas,” a White House official said recently.

Senators have signaled interest in renewing the bank through an amendment to a bill that funds a critical infrastructure program that could suffer a lapse in funding if its not renewed by the end of July. The Senate, however, is struggling to pass its version of the bill, which failed to clear a procedural hurdle on Tuesday.

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Reuters: Exclusive – HSBC to agree sale of Turkish unit to ING for around $750 million: sources

#AceFinanceReport – July.22:HSBC is set to agree to sell its Turkish business to Dutch lender ING Group for around $700 million-$750 million (480.06 million pounds) in the next few days, two people familiar with the matter told Reuters on Wednesday.

Exclusive – HSBC to agree sale of Turkish unit to ING for around $750 million: sources


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LONDON: Bank of England minutes show some rate-setters edging towards hike

#AceFinanceNews – LONDON (Reuters) A number of Bank of England rate-setters are moving towards voting for the first increase in borrowing costs in over eight years, adding to expectations of a split among policymakers in August.

All nine members of the BoE’s Monetary Policy Committee voted on July 8 to leave rates at a record low of 0.5 percent, as they have done since January, minutes of the meeting showed on Wednesday.

For all of them, the deepening crisis in Greece and China’s financial market volatility meant the decision was “clear cut”.

But the central bank said that if Greece had not been a factor, “a number” of policymakers would have found the decision not to raise rates more finely balanced than before. In June, just two policymakers described their decision similarly.

Since the MPC met two weeks ago, the risk of a Greek exit from the euro zone has diminished.

“Absent that uncertainty, the decision between holding Bank rate at its current level versus a small increase was becoming more finely balanced,” the minutes said.

Economists said three of the MPC’s nine members might vote for a rate hike in August, getting the ball rolling for a majority to back an increase later this year or in early 2016.

BoE Governor Mark Carney has suggested in speeches that a hike may come around the end of the year.

An acceleration of earnings growth may prove to be the final evidence that MPC members Martin Weale and Ian McCafferty need to say that the economic recovery can withstand a rate hike, even with inflation still stuck at around zero.

David Miles, who was once one of the MPC’s strongest advocates for more economic stimulus, said last week that holding off on a hike for too long would be “a bad mistake”.

In a media interview published on Wednesday, Miles declined to comment on how he might vote in August, his last meeting as an MPC member, saying: “I’m sure I’ll have something to tell the grandchildren. What it’ll be, we’ll have to wait and see. It’s never too late.”

The MPC’s July minutes showed it was divided on whether the pick-up in wages posed a threat to the Bank’s inflation target of 2 percent. Policymakers were also unsure of the scale of the downward impact on inflation from a big rise in sterling and a fall in oil prices since their last economic forecasts in May.

A survey on Wednesday showed that the BoE’s message that higher rates are coming has been heard by British households, especially follow Carney’s speech last week.

Forty-four percent of respondents in the survey conducted by financial data firm Markit expected tighter monetary policy in the next six months, versus 31 percent before Carney’s recent comments and 24 percent in June.

Wednesday’s release of the minutes was the last that BoE will make separately to the announcement of its interest rate decisions. Starting with its rates announcement on Aug. 6, minutes will be published at the same time as policy decisions.

(Additional reporting by Andy Bruce Editing by Jeremy Gaunt)

Bank of England minutes show some rate-setters edging towards hike


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#GREECE Gets new liquidity boost ahead of key reform vote


#AceFinanceNews – ATHENS, Greece (AP) – Greece’s liquidity-starved banks got a new cash injection from the European Central Bank on Wednesday, hours before a key vote in parliament on further economic reforms demanded by international creditors in return for a third bailout.

A European banking official told The Associated Press the ECB decided to increase emergency liquidity to Greek banks by 900 million e…

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#MARKETS Recap of Asian shares wilt in shadow of Wall Street’s earnings woes

#AceMarketsNews – TOKYO (Reuters) July.22: Asian stocks skidded on Wednesday after weak earnings dragged down U.S. equities, while the dollar was trading just below highs hit earlier this week.

S&P 500 mini futures were down about 0.4 percent from late U.S. levels, after U.S. equities tumbled on weak earnings from bellwethers IBM and United Technologies, while Apple Inc slumped in late trading after posting its results.

Financial spreadbetters expected Britain’s FTSE 100 to open 24 points or 0.4 percent lower; Germany’s DAX to open 40 points or 0.3 percent lower; and France’s CAC 40 to open 11 to 13 points or as much as 0.3 percent lower on Wednesday.

“As goes Apple, as goes the U.S. stock market. So, unless we see something spectacular from European markets, we should see a modestly risk-off session in the U.S.,” Chris Weston, chief market strategist at IG, said in a note.

MSCI’s broadest index of Asia-Pacific shares outside Japan extended losses and was down about 1.1 percent.

Japan’s Nikkei stock index ended down 1.2 percent, snapping its six-day rising streak and pulling away from Tuesday’s nearly four-week closing high as the Apple news reverberated on related tech shares.

“Since the market had been rising, such bad news can take a toll,” said Hikaru Sato, a senior technical analyst at Daiwa Securities. “But the impact from Apple’s weak forecast should not drag on.”

Spot gold shed about 0.7 percent on the day to $1,090.95 per ounce, after plunging to five-year lows on Monday as investors unloaded bullion against a backdrop of improving risk sentiment after Greece agreed on a plan with its creditors that will keep it in the euro zone for now.

Standard & Poor’s on Tuesday upgraded Greece’s sovereign credit rating by two notches and revised its outlook to stable from negative, citing euro zone countries’ initial agreement to start negotiations with Athens on a third bailout.

The euro edged down slightly on the day at $1.0935, toward Monday’s three-month low of $1.0808.

The dollar index was steady at 97.331 after rising as high as 98.151 in the previous session, its highest level since late April.

The dollar edged down about 0.2 percent against the yen to 123.67 yen after scaling a six-week high of 124.48 yen on Tuesday.

Crude oil futures remained under pressure as investors worried about ample supply.

U.S. crude was down 1.4 percent at $50.13, while Brent shed about 0.9 percent to $56.53.

(Additional reporting by Ayai Tomisawa in Tokyo; Editing by Simon Cameron-Moore)

Asian shares wilt in shadow of Wall Street’s earnings woes


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Article: Citigroup will refund $700 million for deceptive practices

#AceFinanceNews – Citigroup will refund $700 million for deceptive practices


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