Overseas Headlines – June 29, 2021

United States:

Wall Street Funnels Cash to Investors on Stress-Test Success

“Morgan Stanley led big U.S. banks in raising payouts to investors — by jacking up dividends or announcing plans to buy back shares — after amassing cash piles that easily met the Federal Reserve’s capital requirements. Dividend payouts by the nation’s six largest lenders will rise, on average, by almost half — and that’s with Citigroup Inc. abstaining from an increase — according to statements issued Monday. Morgan Stanley doubled its quarterly payout while also announcing as much as $12 billion in stock buybacks.”



ECB Charts Lone Crisis Stimulus in Choppy Wake of Shifting Fed

“European Central Bank officials are gearing up for a new phase of crisis response where their ultra-loose monetary stimulus becomes an increasingly lonely effort while the rest of the world moves on. The institution’s approaching challenge is how to keep supporting Europe’s nascent economic rebound against a backdrop of shifting policy trajectories by counterparts such as the Federal Reserve, that could augur wild swings in financial markets and potentially push up borrowing costs throughout the region.”



Bank of Japan Cuts Some Bond Purchase Targets Over Next Quarter

“The Bank of Japan cut bond purchases for the next three months while shifting to a quarterly buying plan to offer more certainty to markets. The quarterly plan released Tuesday showed a reduction of at least 25 billion yen ($226 million) in purchases of each of the one-to-three, five-to-10 years and 10-to-25 year buckets. Previously, it had only released monthly purchase targets.”



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