March 11, 2024
United States:
End of Fed Tool That Buoyed US Banks Puts Reserves in Spotlight
Wall Street banks are hunting for alternative ways to shore up their coffers as an emergency lending tool that helped resolve last year’s regional banking crisis expires.
The Bank Term Funding Program, which was established in March 2023 to restore confidence in the financial system after the collapse of Silicon Valley Bank, is set to stop doling out loans by Monday’s close. That’s reigniting the debate over whether the US financial system has the tools it needs to keep ample cash on hand.
Europe:
ECB Can Cut Rates Even If Fed Doesn’t, Unicredit’s Nielsen Says
The European Central Bank shouldn’t worry about cutting interest rates if that means decoupling its policy from the Federal Reserve, Unicredit economist Erik Nielsen said.
The Italian bank’s chief economics adviser told Francine Lacqua on Bloomberg Television that a strong labor market with elevated wage growth and lots of fiscal support could mean the US economy should stay constricted. If so, euro-zone officials should take a different path, he said.
Asia:
China’s Woes Cast Shadow Over Global Market Rally
China’s unceasing economic malaise threatens to ripple across rallying global markets, according to the latest Bloomberg Markets Live Pulse survey.
Global stocks are at records as US economic resilience, buzz around artificial intelligence and growth in places like India and Indonesia keep the rally going. That’s despite troubles in the world’s second-largest economy that include property-sector turmoil, entrenched deflation and geopolitical tensions with the US.
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