BOJ Cuts Inflation, Growth Outlook; Policy Unchanged
The Bank of Japan forecast slower economic growth and abandoned a prediction that consumer prices will increase this year, making it harder to raise the world's lowest borrowing costs. ``Downside risks are increasing,'' Governor Toshihiko Fukui said in Tokyo today after his policy board kept interest rates on hold. He repeated the bank's commitment to raise rates as long as the economy keeps expanding and prices resume gaining.
Hong Kong Sells HK$7.8 Billion to Defend Dollar Peg
The Hong Kong Monetary Authority sold HK$7.828 billion ($1 billion) to defend its currency's 24- year-old fixed exchange rate, as overseas investors bet the city's assets will benefit from growth in China's economy. Today's sales were 10 times larger than the two previous interventions this month after Hong Kong's currency climbed to HK$7.75 per dollar, the top of its permitted trading range. Thomas Chan, a spokesman for the HKMA, confirmed the transaction.
Deutsche Bank Profit Rises on Tax Gains, Asset Sales
Deutsche Bank AG, Germany's biggest bank, said the fourth quarter began ``very positively'' and reiterated its profit targets after tax credits and asset sales increased earnings by 31 percent. Deutsche Bank rose the most in more than two years in Frankfurt trading after the company reported that third-quarter net income climbed to 1.62 billion euros ($2.34 billion), or 3.31 euros a share. The bank estimated on Oct. 3 that profit would exceed 1.4 billion euros.
Dubai Regulator Signs Agreement With US Banking Supervisors
The Dubai Financial Services Authority (DFSA) has entered into an historic Memorandum of Understanding with the United States Banking Supervisors.
European Stocks Advance; BHP Billiton, Total Pace the Gains
European stocks climbed for a third day, led by mining and energy companies, after metal prices rallied and oil rose to a record. BHP Billiton Ltd., the world's largest mining company, and Total SA, Europe's biggest oil refiner, advanced. Volkswagen AG led carmakers higher after Goldman, Sachs & Co. lifted its price estimate for the stock. Clarins SA and Actelion Ltd. gained after analysts raised their recommendations on the shares.
Asian Stocks Fall; Kookmin Bank, Takeda Pharmaceutical Decline
Asian stocks fell, dragging a regional benchmark from a record, after Kookmin Bank reported earnings that missed analysts' estimates and Seiko Epson Corp. cut its profit forecast. Takeda Pharmaceutical Co., Japan's biggest drugmaker, led declines in Japan on concern one of its experimental medicines will be delayed. Kookmin, South Korea's largest lender, had its biggest decrease in two weeks. Toshiba Corp. fell after brokerages including UBS AG cut their ratings on the stock.
Hong Kong Leaders Urge Investor Caution
Two senior members of Hong Kong's government have warned that, while the local economy has been faring well and is likely to continue in the same vein for the foreseeable future, investors should be on their guard in markets that remain volatile following the recent credit crunch. In his latest 'Viewpoint' column for the Hong Kong Monetary Authority, Joseph Yam, HKMA Chief Executive, observed, not for the first time, that there are a lot of uncertainties confronting Hong Kong's economy and financial markets, particularly the economic and financial outlook for the Mainland and the US.
US Senate Votes For 7 Year Internet Tax Moratorium
The United States Senate has approved legislation that would result in the current moratorium on internet access taxes being extended for seven years. “This agreement is a common sense victory both for internet users and for state and local governments," Senators Tom Carper (D-Del.) and Lamar Alexander (R-Tenn.) said in a joint statement issued after Thursday's voice vote.
