Bank

Keynote speech by Commissioner McGuinness at the European Financial Integration 2024 joint conference of the European Commission and the European Central Bank

Retrieved on: 
Tuesday, June 18, 2024

When I was a Member of the European Parliament, this was discussed, not advanced hugely, but we made some incremental progress.

Key Points: 
  • When I was a Member of the European Parliament, this was discussed, not advanced hugely, but we made some incremental progress.
  • Because citizens do know that there are barriers when it comes to accessing financial products in the single market.
  • Which frankly is one of the four freedoms that has yet to be fully in place in the European Union.
  • You can see from the Commission's European Financial Stability and Integration Review what's been done, because that will be presented this morning.

For the next prime minister to solve the UK’s productivity problem, they must attract more foreign investment – here’s how

Retrieved on: 
Tuesday, June 18, 2024

The UK is also in the bottom 30% for productivity among all OECD economies and shows no signs of improving.

Key Points: 
  • The UK is also in the bottom 30% for productivity among all OECD economies and shows no signs of improving.
  • Meanwhile, GDP per worker, the other common measure of labour productivity, was up just 0.8% over the same period, compared to a historic average of 1.4%.
  • Extremely weak productivity leaves little room for wage increases above the rate of inflation.
  • One way is to attract more foreign investment, which is disproportionately important to the UK economy.
  • For every ten percentage-point increase in foreign presence in a UK industry, it raises the productivity of that industry by 0.5%.

How to improve foreign investment

  • Economic uncertainty Foreign investment falls when companies are more uncertain about UK economic policy.
  • The chart below shows how foreign investment was affected by the Brexit vote.
  • Foreign inflows as a % of GDP We estimate that between the referendum and the end of 2020, the proportion of GDP from foreign inflows fell by as much as 0.5%.
  • Corporation tax Lower rates of UK corporation tax relative to other countries can potentially strengthen foreign investment.

The takeaway

  • Yet in 2023, the UK government raised the corporation tax rate from 19% to 25%, which is 1.4 percentage points above the OECD average.
  • To mitigate this effect, one would be looking for other economic policies to be more certain.
  • In May 2024, however, the uncertainty index was 24% higher year on year as a result of Tory infighting and disastrous local election results.

The impact of environmental regulation on clean innovation: are there crowding out effects?

Retrieved on: 
Tuesday, June 18, 2024
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Key Points: 

    Financial Integration and Structure in the Euro Area

    Retrieved on: 
    Tuesday, June 18, 2024
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    Other factors, such as supply chain disruptions, adverse energy supply shocks and monetary tightening have also negatively contributed to the drop in automotive production.

    Key Points: 
    • Other factors, such as supply chain disruptions, adverse energy supply shocks and monetary tightening have also negatively contributed to the drop in automotive production.
    • Despite intensified foreign competition, the euro area automotive industry has defended its global positioning by focusing on profitable market segments.

    The wage-price pass-through across sectors: evidence from the euro area

    Retrieved on: 
    Tuesday, June 18, 2024

    Abstract This paper studies the pass-through from wages to producer prices using sectoral disaggregated data for the euro area.

    Key Points: 
      • Abstract This paper studies the pass-through from wages to producer prices using sectoral disaggregated data for the euro area.
      • We find a positive and statistically significant wage-price pass-through that reaches 50% after three years, which differs across sectors.
      • Instead, the estimates hint at an important role for international competition in the domestic market for the tradeable sector.
      • They also suggest that the sales destination matters: wage growth contributes to domestic inflation for goods but not to export inflation.
      • Finally, we also provide evidence of an increase in the wage-price pass-through after 2020, particularly in private services.
      • This illustrates how the link between wages and prices, the so-called wage-price pass-through, is a key element in understanding inflation developments.
      • Our results highlight a sizeable wageprice pass-through in the euro area, which stabilises at around 50% after two to three years.
      • In particular, we show that a higher import penetration in the domestic market lowers the wage-price pass-through in the industrial sector.
      • Overall, our results underscore the importance of considering sectoral heterogeneity when formulating a monetary policy response to wage pressures.
      • ECB Working Paper Series No 28xx 2 1 Introduction As inflation made a come back with the post-pandemic re-openings in 2021, wage developments also took centre stage.
      • This illustrates how the link between wages and prices, the so-called wage-price pass-through, is a key ingredient to understand inflation developments.
      • Our paper is the first to study the pass-through from wages to producer prices in the euro area using sectoral disaggregated data.
      • We highlight a sizeable wage-price pass-through in the euro area, which stabilises at around 50% after two to three years.
      • (2022), we also identify a new international channel at play: the wage-price pass-through in industry matters for domestic sales but not for exports.
      • Evidence for the euro area also shows that the wage-price pass-through is smaller in recessions than in expansions (Hahn, 2020).
      • In the United States, Peneva and Rudd (2017) find little evidence that changes in labor costs have a substantial effect on price inflation in recent years.
      • (2021) document a weakening of the wage pass-through in the United States, and attributes it to better-anchored inflation expectations.
      • Their results also document a weakening pass-through over time, in particular in the goods sector prior to the Covid-19 crisis.
      • (2023) show in a theoretical model that a combined increase in input prices and in wages amplify the total pass-through to prices.
      • Chin and Lin (2023) also find a rising ECB Working Paper Series No 28xx 4 pass-through from wages to consumer prices after the pandemic.
      • (2023) document an increasing inflationary effect, both to producer prices and consumer prices, of supply-chain constraints in manufacturing industries after Covid.
      • Similar evidence has been found for the United States (LaBelle and Santacreu, 2022).
      • The next section describes the data and highlights some salient stylized facts regarding inflation and wage dynamics across sectors.
      • 2 Data collection and stylized facts 2.1 Data collection We rely on dissagregated economic data at the sectoral level for the euro area from Eurostat.
      • More specifically, we gather indices on producer prices (PPI)2 , import prices of industrial goods3 , turnover, gross wages and salaries and hours worked.
      • 5 Specifically, we take the difference in log terms between the indices on gross wages and the indices on hours worked.
      • 9 Domestically produced goods or services can be sold domestically or exported, and the selling prices can differ depending on the sales destination.
      • However, the PPI series for goods sold domestically are only available for the industry sector in Eurostat.
      • ?Full sample? corresponds to the 2009Q1-2023Q2 sample, ?Pre-Covid? to the 2009Q1-2019Q4 sample and ?Post-Covid? to 2020Q1-2023Q2.
      • Table 1 provides summary statistics of the four-quarter change in producer prices, wages per hour worked and input prices.
      • The second and third vertical panels display the figures for the pre-Covid sample (2009Q1-2019Q4) and for the post-Covid sample (2020Q1-2023Q2), respectively.
      • Hence, for any given 2-digit sector s, we employ the change in labour productivity growth of the corresponding 1-digit sector s?.
      • Specifically, a 10% increase in input prices is associated with an increase in 6.9% in producer prices after one year.
      • , 20 quarters whereas the right-hand side panel reports the estimates of ?h from equation 2 separately for industry and private services.
      • We investigate this question for the euro area by estimating our baseline equation 2 separately for the industrial and for the private service sectors.
      • 4.1 Sectoral labour shares Private services sectors tend to be more labour-intensive than industrial sectors (see evidence for the euro area in Figure A1 in Annex).
      • The following columns further suggest that the wage-price pass-through remains non-significant, irrespective of whether the goods are exported to other euro area countries or outside the euro area.
      • Overall, these results provide evidence of an increasing wage-price pass-through in the euro area after Covid.
      • Globalisation and inflation: New cross- ECB Working Paper Series No 28xx 29 country evidence on the global determinants of domestic inflation.
      • More specifically, it asks the following question How do you expect your selling prices to change over the next 3 months?
      • Information on all of the papers published in the ECB Working Paper Series can be found on the ECB?s website.

    Federal Reserve Maintains Interest Rates, While GreenPath Financial Wellness Finds Credit Card Rates Average 28%

    Retrieved on: 
    Thursday, June 13, 2024

    This move all but ensures credit card interest rates will remain at record highs.

    Key Points: 
    • This move all but ensures credit card interest rates will remain at record highs.
    • Credit card interest rates are typically influenced by the Federal Reserve's rate, yet there are additional factors at play.
    • This figure surpasses most nationally reported average credit card interest rates, including the Federal Reserve's average of 22.63%1.
    • For more information about managing high interest rates using GreenPath Financial Wellness' Debt Management Program, please visit greenpath.com or call (866) 648-8122.

    IRA Capital Acquires a 253-Unit Class-A Senior Living Community in the Seattle MSA

    Retrieved on: 
    Wednesday, June 12, 2024

    IRA Capital Continues its Senior Housing Portfolio Expansion with the Acquisition of Quail Park of Lynnwood

    Key Points: 
    • Irvine, California--(Newsfile Corp. - June 12, 2024) - IRA Capital ("IRA"), a leading private equity firm based in Irvine, California, is pleased to announce its recent acquisition of Quail Park of Lynnwood ("Quail Park"), a 253-unit, Class-A, senior housing property located in Lynnwood, WA (Seattle MSA).
    • The all-cash acquisition of Quail Park adds another premier asset to IRA's expanding healthcare portfolio and underscores its unwavering commitment to addressing the growing needs of the elderly community.
    • "We are thrilled about acquiring Quail Park and continuing our growth in the senior housing sector," said Jay Gangwal, Managing Partner at IRA Capital.
    • "Quail Park of Lynnwood is a testament to our commitment to senior housing and our growth-focused strategy," said Azhar Jameeli, Managing Director at IRA Capital.

    Turkiye Garanti Bankasi A.S.: Regarding the Sale of Non-Performing Loans Portfolio

    Retrieved on: 
    Monday, June 17, 2024

    for a total consideration of TL 116.100.000,00,

    Key Points: 
    • for a total consideration of TL 116.100.000,00,
      - in the total principal and contractual interest amount of TL 261.655.365,01 as of April 24, 2024, to Ortak Varlık Yönetim A.Ş.
    • for a total consideration of TL 110.600.000,00,
      - in the total principal and contractual interest amount of TL 301.884.005,91 as of April 16, 2024, to Emir Varlık Yönetim A.Ş.
    • for a total consideration of TL 110.600.000,00,
      - in the total principal and contractual interest amount of TL 260.366.149,62 - as of April 23, 2024, to Gelecek Varlık Yönetim A.Ş.
    • for a total consideration of TL 110.200.000,00,
      - in the total principal and contractual interest amount of TL 303.983.940,32 as of April 17, 2024, to Dünya Varlık Yönetim A.Ş.

    Fix Price Group PLC: FIX PRICE NOTIFIES ITS SHAREHOLDERS THAT IT HAS RECEIVED A RESIGNATION NOTICE FROM THE DEPOSITARY BANK

    Retrieved on: 
    Monday, June 17, 2024

    The resignation notice does not imply the immediate termination of the GDR program.

    Key Points: 
    • The resignation notice does not imply the immediate termination of the GDR program.
    • BNY currently remains the depositary bank for the Group’s GDRs.
    • BNY gave the Company until 19 August 2024 to appoint a potential successor depositary bank.
    • Fix Price remains strongly committed to protecting the rights and ensuring the interests of all its shareholders.

    Turkiye Garanti Bankasi A.S.: Announcement regarding Syndicated Loan Agreement

    Retrieved on: 
    Monday, June 17, 2024

    On 06.06.2024 our Bank has signed a syndicated loan agreement with 367 days maturity in the amount of US $ 240,750,000 and € 178,600,000 comprising of two separate tranches.

    Key Points: 
    • On 06.06.2024 our Bank has signed a syndicated loan agreement with 367 days maturity in the amount of US $ 240,750,000 and € 178,600,000 comprising of two separate tranches.
    • The loan which will be used for trade finance purposes has been executed with commitments received from 46 financial institutions from 22 countries.
    • The all-in cost for USD and EUR tranches have been realized as SOFR + 2.50% and Euribor + 2.25% respectively.
    • *In contradiction between the Turkish and English versions of this public disclosure, the Turkish version shall prevail.