March 28, 2023
United States:
Markets Are Wrong on US Rate-Cut Bets, BlackRock Says
The Federal Reserve will keep raising interest rates despite traders betting otherwise as fears of a banking crisis convulse markets, according to BlackRock Inc.
The world’s biggest money manager favors inflation-linked bonds — securities that offer protection from rising prices — on the view markets are wrong in expecting imminent US rate cuts as the economy lurches toward a recession. This time is different as the Fed and its peers have made clear that troubles buffeting the banking sector won’t halt their battle against inflation, BlackRock Investment Institute strategists including Wei Li wrote in a client note.
Europe:
Banks in France Face More Than $1.1 Billion Fines After Raids
French banks including Societe Generale SA and BNP Paribas SA face collective fines of more than 1 billion euros ($1.1 billion) as part of a probe into tax fraud and money laundering related to dividend payments.
HSBC Holdings Plc, Natixis SA and BNP’s Exane unit are also part of the investigation, according to the prosecutors office in Paris, which said that the fines include penalties and back interest. Preliminary investigations related to the raids were opened in December 2021, the prosecutor said.
Asia:
China Premier to Speak; Ex-PBOC Head Warns of Risks: Boao Update
Asia will be a bright spot for a world that’s otherwise facing wide-ranging risks, Chinese officials told the Boao forum, where top speakers are set to include Chinese Premier Li Qiang.
Government officials and business leaders are meeting this week on the tropical island of Hainan for the annual conference, with discussions to tackle topics ranging from supply chain disruption to the post-Covid economic recovery to clean energy and geopolitical tensions. Billed as an Asian version of the World Economic Forum, the conference kicked off Tuesday and is slated to run through Friday.
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