In a speech that sent investors running for the doors in disappointment, the outgoing European Central Bank president, Mario Draghi, also had onlookers wondering whether he had just laid the ground for the Japanification of the European economy.
Blackrock’s chief investment officer of global fixed-income, Rick Rieder, has gone on the record, backing ECB equity purchases of European companies as a way to “positively influence the private sector and improve European growth prospects”. The Bank owns close to 30-trillion yen in exchange traded funds, which amounts to almost 5% of the stock exchange’s large companies’ market capitalisation and almost 80% of Japanese ETF equity assets.
Of greatest concern, however, is how the Bank of Japan will be able to disinvest from the stock market down the line without affecting market prices. Monetary policy fixed income asset purchases do not pose this problem because they mature and fall off the balance sheet. That means the bank doesn’t have to formulate an exit strategy.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Business Maverick: U.K. Starts No-Deal Brexit Meetings as It’s Now a Real ProspectU.K. Prime Minister Boris Johnson’s high-level Brexit cabinet holds its first meeting Monday, and will gather every day to ensure the country leaves the European Union on Oct. 31.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK: Anglo American is backAnglo American’s interim results announcement on July 24 promised to be a fairly prosaic affair. But two pivotal events changed that. A surprising $1-billion share buyback was announced. And then came the decision by Indian tycoon Anil Agarwal to unwind his looming financial scheme in which he bought control over 20% of the company. Agarwal made a huge fortune from the bet, but the real winner is Anglo.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: SA economy could be the winner if online gambling is legalisedOnly 40 casinos are legally licensed to operate in South Africa – the traditional kind, the brick and mortar type. All other casinos are considered outlaws – whether online and otherwise. But the black market doesn’t play by the rules. And its gamble is paying off, handsomely. DURITZ79 I struggle to see how taking more from the public is going to be a good thing, that said, a night at the casino can be fun
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Asset Bubbles to Zombie Companies: The Dark Side of Rate CutsWarren Buffett’s warning that you only learn who’s swimming naked when the tide goes out is hardly heard these days as waves of easy monetary policy wash over the world’s financial markets
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: LSE shares hit record high as investors cheer $27 bln Refinitiv bidLondon Stock Exchange Group Plc shares rose more than 15% to a record high on Monday as investors cheered its $27 billion bid to buy financial data firm Refinitiv Holdings Ltd, in a deal that could transform the exchange operator into a global market infrastructure and data giant.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Why Donald Trump Can’t Steer the Global Car MarketTurns out that overturning the Obama administration’s fuel-economy rules isn’t as easy as it seems.
Source: dailymaverick - 🏆 3. / 84 Read more »