Friday, March 12, 2010

Financial regulatory overhaul-Japan Bank Lending-China yuan - $EWJ

Financial regulatory overhaul – Sen Banking Committee Chairman Dodd will introduce his sweeping plan to overhaul financial regulations Monday without any Republican support. Introducing the bill Monday will allow Mr. Dodd to hold a vote in his committee before the Easter recess in early April. If Dodd and Republican Sen Corker fail to resolve their differences, the vote on the Senate banking committee could fall along party lines, making it difficult for Democrats to break any filibuster on the Senate floor.

China yuan - there is heavy speculation Fri morning (3/12) around the world that China may take action on the yuan as early as this weekend; forward renminbi contracts headed towards their largest weekly gains in 2 months. FT

· Japan Bank Lending - Bank lending remained weak in February, posting the third consecutive oya decline at 1.6% (it was -1.7%oya in January and -1.2%oya in December last year). The BoJ reiterates the weakness of corporate loan demand for both operating and investment funds as a cause of the weakness, and notes that the extreme weakness in city
banks' lending reflects base effect (lending by city banks to large firms was boosted in the several months after the Lehman shock). Meanwhile, regional banks continues to increase their lending, albeit modestly.

 China worries of bailouts and asset bubbles increases - Northwestern University’s Victor Shih said China may be forced to bail out banks that made loans for local-gov’t projects. In addition, there is a risk that inflation or asset bubbles may force the gov’t to withdraw their support to local gov’t’s much earlier than expected. Bloomberg 

No comments:

Post a Comment