ASB Securities Morning Brief for Wednesday, 29 June 2016
Wednesday, 29 June 2016

New Zealand Headlines

New Zealand Market Report: New Zealand shares rose as investors embraced the local market's insulation from global turmoil and high yields, with Spark New Zealand, Precinct Properties and Summerset Group rising. The S&P/NZX 50 Index gained 29.65 points, or 0.4 percent, to 6,716.58. Within the index, 31 stocks rose, 13 fell and six were unchanged. Turnover was $152.4 million... Read more

The New Zealand dollar rose back above 70 US cents after British Prime Minister David Cameron reiterated he would leave Brexit negotiations to his successor and won't invoke article 50 of the Lisbon Treaty that would begin the process for leaving the regional economic bloc. The kiwi traded at 70.47 US cents as at 5pm in Wellington, having earlier fallen as low as 69.76 cents, from 70.65 cents yesterday. The local currency traded at 52.93 British pence, having touched a three-year high 53.67 pence overnight, from 52.72 pence yesterday.... Read more

The New Zealand dollar hit a three-year high against the British pound amid continued uncertainty about the outlook for the UK following that country's vote to leave the European Union. The kiwi touched 53.67 British pence overnight, its highest since May 2013, and was trading at 53.02 pence at 8am in Wellington, from 52.72 at 5pm yesterday. The local currency dropped to 70.08 US cents from 70.65 cents yesterday... Read more

Despite what we like to think - wealth is not evenly distributed in New Zealand, in fact it's the worst it's been in over a decade. Statistics New Zealand's wealth share of individuals shows the top 10 per cent of people have almost 60 per cent of wealth. The figures are for the year to June 2015... Read more

New Zealand export log prices slid to a five-month low in June as returns were hurt by a stronger local currency and an increase in shipping costs. The average wharf gate price for New Zealand A-grade logs dropped to $116 in June, from $120 a tonne in May, according to AgriHQ's monthly survey of exporters, forest owners and saw millers. That's the lowest level since January's $115 a tonne... Read more

New Zealand's primary product exporters are in for a tough period if the local dollar retains its new-found strength against the pound and euro following Britain's decision to leave the European Union. The country's biggest export - dairy - is unlikely to suffer any direct impact from Britain's exit but the depressed euro could make the price of EU dairy products cheaper in a market already plagued with low prices and too much supply... Read more

Brexit fallout: UKIP leader Nigel Farage apologises to New Zealand for joining Common Market... Read more

Key doubts a unilateral 'Google tax' would work. The New Zealand government is sticking with the OECD's process for pushing multi-national corporations to pay more tax rather than pursuing the kind of 'Google tax' being mooted in Australia and the UK, said Prime Minister John Key.... Read more

New Zealand's foreign trust disclosure rules are inadequate and probably allow illegal activities to go undetected, says a government inquiry by former PwC chairman John Shewan that recommends a significant increase in disclosure and a register of trusts. The government appointed Mr Shewan to the inquiry after some 11.5 million documents were leaked from Panamanian law firm Mossack Fonseca related to foreign trusts including many that referred to New Zealand... Read more

A new government data set shows about 5.2 percent of New Zealand households owe more than they own at a time when low interest rates have made borrowing more attractive. As at June 30, 2015, 4.6 percent of the country's 1.67 million households had a net worth of between $0 and negative $100,000 and 0.6 percent were in even deeper negative equity, Statistics New Zealand's household net worth figures show. The report is the first of a new series, which the agency last touched on during a longitudinal study through last decade... Read more

Alternative lending options. Further lending restrictions for investors could mean the day of the non-bank lending sector has come, brokers are suggesting. It has been well reported that the Reserve Bank remains concerned about the heated nature of the country’s housing market... Read more

Associations expecting 'yes' vote. PAA’s chief executive says he would be very surprised if his organisation's members did not vote in favour of the establishment of Financial Advice New Zealand.... Read more

Chartered Accountants Australia and New Zealand has entered into an alliance with the largest global accountancy body in the world. The partnership with the Association of Chartered Certified Accountants (ACCA) means both organisations will share expertise globally, strengthening their reach and resources. Combined, the organisations represent 788,000 accountants in 181 countries... Read more

Building a new advice process – Start With A Question. Just say for a moment that one of the outcomes of the Financial Advisers Act Review is that most RFAs will have to meet the requirements of the AFA Code of Practice... Read more

Fisher Funds takes out Consumer NZ’s 2016 People’s Choice award for KiwiSaver. Fisher Funds, the largest New Zealand-owned and -operated KiwiSaver provider, has been named Consumer NZ’s 2016 People’s Choice award winner for KiwiSaver. The award follows part-owner TSB Bank being named Consumer NZ’s People’s Choice winner for banking earlier this month... Read more

KiwiSaver members have seen hundreds of dollars disappear from their balances thanks to Brexit, but they are being urged not to panic. ANZ's general manager of wealth and marketing Ana-Marie Lockyer said, since it was revealed that Britain had voted to leave the European Union, someone with a $12,000 KiwiSaver balance would have lost less than $35 in a conservative fund, someone in a balanced fund less than $200 and a growth fund member less than $375... Read more

Transfer firms untroubled by Brexit. Pension transfer advisers are expecting to have to reassure some British migrants about the impact of Brexit on their UK super savings.... Read more

Government sets up group to advance primary sector interests following Brexit.... Read more

The number of sharemilkers or contract milkers intending to buy a farm has dipped over the last 20 years, as entry into ownership becomes more difficult. Two decades ago, 70 per cent said they planned on buying a farm but this year that had dropped to 47 per cent, Agfirst consultant James Allen said... Read more

The Companies Office has rejected a complaint by NZ First leader Winston Peters over Silver Fern Farms’ handling of a controversial deal with Chinese company Shanghai Maling. The Dunedin-based meat co-op said it had received a letter from the Companies Office saying it had considered Mr Peters’ complaint and “the registrar has not identified any evidence of a breach of s138A of the Companies Act 1993.”... Read more

Chinese-owned Marlborough Wine Estates Group to list on NXT. A Chinese-owned Kiwi wine company - which produces O:Tu and Music Bay brands - is set to go public. Marlborough Wine Estates Group will list 293.3 million shares on the NXT on Thursday in a compliance listing valued at almost $60 million... Read more

Smiths City Group chief executive Roy Campbell has increased his holding in the retailer he joined in 2015 buying shares in an off-market purchase. Documents filed with the NZX show he held just 2,603 Smiths City shares prior to spending $19,391 to take his holding up to 38,512. It was an off-market transaction with the seller named as Sim Nam Lee, with a price of 54 cents a share. His holding now amounts to 0.07 percent of the retailer. The shares rose 3.7 percent or 2 cents to 56 cents. They're down 3.6 percent since the start of 2016 but are up 8.4 percent on a year ago.... Read more

Wyndham Hotel Group is adding six hotels with about 500 rooms to its portfolio over the next three years, which the company says will help take pressure off the tourism sector. Following the recent opening of Ramada Hotel & Suites Queenstown Remarkables Park in partnership with New Zealand owned development and construction company Safari Group, six new franchised Wyndham group hotels are scheduled to open between 2016 and 2019 across the country... Read more

The Food & Grocery Council says New Zealand's main law to tackle anti-competitive behaviour, section 36 of the Commerce Act, should be amended to include an "effects test" and the Commerce Commission be given expanded remedies including an "unconscionability provision". The council, whose members include Nestle, Fonterra Cooperative Group, and Goodman Fielder, made the comments in its submission to the Ministry of Business, Innovation & Employment's targeted review of the Commerce Act. ... Read more

Auckland Council is nearing the limit on what it can borrow through the Local Government Funding Agency as low interest rates encourage local authorities to take on low-cost debt. Auckland Council yesterday deferred a bond sale, citing market volatility that has followed the UK's decision to exit the European Union. The LGFA has a covenant on the net debt-to-revenue ratio for the council of 250 percent, which it says is consistent with an A+ credit rating from Standard & Poor's... Read more

Light rail the winner in latest Auckland Transport turnaround. One of the reasons touted for Auckland’s City Rail Link was future rail expansion to the airport but that has now gone out the window. Auckland Transport’s (AT) board has dumped heavy rail in favour of buses or light rail (trams) for a 40-minute trip to the airport from the CBD, at the same time three Auckland councillors have asked the Auditor-General to investigate the costs and operation of the rail link... Read more

Ridesharing service Uber has today launched a new partnership with Pandora in New Zealand, Australia and the US that allows drivers to create a personalised station that plays the music they like. The service is free and will be ad-free until the end of the year. Those riding in the cars can also log in through the Uber app to create their own Pandora account... Read more

Air New Zealand has been named both International Airline of the Year and Domestic Airline of the Year at the fifth annual Roy Morgan Customer Satisfaction Awards... Read more

Massive US Volkswagen settlement for emissions cheating won't affect NZ owners. The head of Volkswagen New Zealand says a $21 billion settlement in the United States for owners of vehicles caught up in a diesel emissions cheating scandal does not affect motorists here... Read more

Experienced broadcaster and screen industry leader Whetu Fala has been appointed to the Board of Māori Television.... Read more

The Waikato's new tourism boss, Jason Dawson has been charged with ushering in a new era in promoting the region a visitor destination. Dawson replaces Kiri Goulter who resigned in March. Dawson said he had some big shoes to fill, but was up for the challenge... Read more

Jetstar employees face day with no pay after ANZ glitch... Read more

A SkyCity worker has admitted stealing more than $45,000 of casino chips from his former employer. For nearly a month Chandra Komati Reddy, 34, swiped the tokens and handed them on to associates who would cash them in; before the funds were split between the men... Read more

A company caught up in a controversial Inland Revenue raid has lost a High Court fight over a $1.1 million income tax deduction. Honk Land Trustees (HLT) in 2011 challenged the legality of an Inland Revenue search and seizure operation. Among the sites targeted were the homes of former Ernst & Young tax partner David Tauber and former Dragon Den star Paul Webb. Both, at the time, were directors of the Honk group of companies and were being probed by IRD... Read more

Opinion - Susan Hornsby-Geluk: Strong human rights law protects older workers... Read more

New Zealand Herald Editorial: PM spoke too soon on poor trust rules... Read more

Australian Headlines

Australian Market Report: The Australian sharemarket has followed international bourses down on Tuesday, giving up yesterday’s gains after Brexit worries drove trans-Atlantic markets down on Monday night. At the 4.15pm (AEST) official market close, the benchmark S&P/ASX 200 index was off 33.9 points, or 0.66 per cent, to 5103.3, while the broader All Ordinaries index lost 36.6 points, or 0.7 per cent, lower to 5179.6.... Read more

The Australian dollar has lifted above US74c in late trade, after swinging through a wide arc during the session. The unit was initially weaker on the back of further shocks in the UK, before it recovered on soothing words from Japan. At 6.20pm (AEST), the Australian dollar was trading at US74.12 cents, compared with US73.33c at the same time on Monday. It had touched traded as low as US73.25c during the session.... Read more

Investors have savaged locally listed companies exposed to the UK after Britons voted to split from the European Union. One of the most exposed, QBE, has lost $2 billion in market value since the Brexit vote on Friday... Read more

With the Brexit vote sending shockwaves through global markets, it's worth wondering why the futures market is only giving a one-in-five chance to the RBA cutting interest rates next week. Even last Friday afternoon, as news that British voters had opted to exit the European Union spread across a shocked world, the market put the odds of a July cut in Australia at 45 per cent at most, a sentiment that lasted only a few hours... Read more

Netwealth embraces fintech to broaden reach. Non-institutionally aligned platform provider netwealth will bolster its technology offering by partnering with a range of fintech groups in local and overseas markets, following news that the company has surpassed $9 billion in funds under management (FUM). Netwealth managing director Matt Heine told financialobserver the group would look beyond robo advisers for new start-up partners.... Read more

Brexit: Australian consumer confidence declines, but still near one-month high... Read more

CoreLogic’s latest Pain and Gain report reveals exactly how long you need to keep your property before you can sell for a profit. Just how long do you need to keep your property before you can sell it for double what you paid for it? The common real estate myth has always been that property doubled in value every ten years, but in reality that usually wasn’t the case.... Read more

Shares in mining contractor MACA spiked this morning after it won a $115 million contract for Blackham Resources’ Matilda gold project near Wiluna. The Perth company said the contract, which would include open pit mining services including drilling and blasting, and loading and hauling, would last 32 months and allow it to employ 100... Read more

BHP Billiton is staying away from any large scale exploration in key mineral segments such as iron ore, coal and potash, as its deals with a sharply lower capital expenditure budget. The resources giant will instead shift focus to conventional oil and copper, allocating nearly all of its $US900 million exploration budget for 2016/17 on the two commodities where its sees maximum long term growth potential... Read more

Independence Group has mined the first development ore at its $443 million Nova mine, insisting development of the nickel-copper project on the edge of the Nullarbor remains on schedule and budget. The Peter Bradford-led Independence this morning reported Nova, as part of last year’s $1.8 billion takeover of Sirius Resources, was 90 per cent complete at the end of May with production of nickel and copper concentrates on track for December. Independence shares were 3 cents lower at $3.13 at 10am.... Read more

PepinNini Minerals Ltd has been granted a trading halt by the ASX, pending an announcement relating to a share placement... Read more

Alacer Gold has hedged 160,000 ounces of gold at $1,273 per ounce for the period from July 2016 to September 2018... Read more

Evolution Mining has underlined its bullish outlook by doubling dividend payouts after posting record gold production, in line with its 2015/16 guidance. Australia's second-largest gold miner by output expects to produce 800,000 ounces of gold in the 12 months to June 30, in the middle of the 770,000 to 820,000 range it outlined in February... Read more

The State Government has bowed to pressure from mid-tier Pilbara miners and extended a $2.50-a-tonne discount on exports at Port Hedland’s Utah Point bulk export terminal. The discount will also be applied to manganese miner Consolidated Minerals, which had partly blamed high costs at Utah Point for the January closure of its Woodie Woodie mine... Read more

Manas Resources will purchase the Victoria gold project in Tanzania from Cienega for US$4 million (A$5.4 million). Manas understands some of the VGP licenses are subject to JV agreements or pre-existing royalty arrangements although it would appear that the most prospective areas are available on a 100% basis... Read more

Metallica Minerals has received $900,000 for the sale of the non-core Boyne limestone project in Queensland... Read more

Mineral Resources has extended its position in the State’s emerging lithium industry, agreeing to buy Global Advanced Metal’s Wodgina mine and tenements. MinRes is already the part-owner and operator of the Mt Marion lithium mine near Kalgoorlie, and said today it would acquire GAM’s Wodgina mine – including its tenements, camp, processing facilities and power station – for an undisclosed sum. MinRes shares were down 31¢ to $8.13 at midday.... Read more

WPG Resources Ltd has appointed Cornel Parshotam as chief operating officer, effective 1st July 2016. Parshotam joins WPG from his most recent position as Head of Operations at BHP Billiton’s Olympic Dam mine in South Australia... Read more

Atlas Iron founder and managing director David Flanagan has quit the company, only months after the close of a debt-to-equity swap designed to secure the long-term future of the mid-tier iron ore miner. Mr Flanagan returned to the top job at Atlas just over a year ago, as the company mothballed its Pilbara iron ore operations amid tumbling iron ore prices. Atlas shares closed unchanged at 0.9¢ today.... Read more

Dairy Farmers will still get a low price for their milk from co-operative Murray Goulburn over the 2016/17 season. Murray Goulburn announced on Tuesday that it expects to pay dairy farmers $4.80 per kilogram of milk solids (kgms) for the 12 months ending June 30, 2017.... Read more

Nine pieces of fried chicken for $10 and $1 cups of chips are luring customers to Collins Foods' expanding KFC fast food chain, returning the restaurant operator to profit. Collins Foods has reported a $29.1 million full-year profit, 12 months after losing $10.4 million loss it made a year ago following a $37.5 million writedown of its Sizzler brand. Impressed with Collins Foods turnaround, investors drove the group's share price five cents higher, or 1.04 per cent, to $4.84 at 1320 AEST.... Read more

Fast food restaurant operator Collins Foods has returned to profit as its grows its KFC network while closing loss-making Sizzler restaurants. Collins Foods reported a $29.1 million full-year profit, bouncing back from the $10.4 million loss booked a year ago following a $37.5 million writedown of the Sizzler brand... Read more

BrainChip Holdings Ltd has been granted a trading halt by the ASX, pending the release of an announcement regarding a proposed acquisition by BrainChip of a private technology company in Europe... Read more

APN sells GHC investment manager... Read more

Transaction Solutions International Ltd’s 25% owned Indian associate TSI India will provide a comprehensive outsourced ATM solution to SREI Infrastructure Finance Corporation. SREI is a publicly listed company on the London Stock Exchange and Bombay Stock Exchange and holds an ATM white label license for deployment of 9,000 ATMs from the Reserve Bank of India... Read more

Mayne Pharma is set to significantly expand its US presence through the $US652 million ($A889 million) acquisition of a suite of generic drugs from Teva Pharmaceutical Industries and Allergan. Mayne said the price excludes transaction costs and an extra investment of $A120 million needed for capital expenditure, technology transfer and working capital... Read more

MMJ Phytotech Ltd in an ASX trading halt... Read more

James Packer's bid to add a 71-storey casino complex to Sydney's skyline is one step closer after his project was given the final tick of approval from NSW's Planning Assessment Commission. Substantial modifications were made to the original Crown Resorts proposal for a $2 billion six-star hotel and VIP-only casino at Barangaroo.... Read more

Clean TeQ Holdings Ltd to ply water purification methods in China’s Shanxi Province... Read more

IBM hires ex-AFP cyber top cop to run Aussie infosec centre.... Read more

KNeoMedia Ltd has upgraded its suite of online education products by launching the latest version of KNeoWorld App on the Google Play Store. KNeoWorld is an educational gaming app for young students playing games with educational content... Read more

The NRMA has revved up its digital ambitions by luring former Vodafone Australia digital boss Vincent Dempsey as its new general manager of digital delivery. The appointment marks the end of a three-year tenure for Dempsey at Vodafone, where he led a cultural push to apply centric design and agile principles within the budgetary structures and constraints of the telco sector... Read more

IDT Australia Ltd has been granted a trading halt by the ASX, pending the release of information regarding a proposed capital raising. The halt will remain in place until the opening of trade on Thursday 30th June 2016, or earlier if an announcement is made to the market... Read more

Optus to outsource HR, finance operations... Read more

The company behind the Jamie's Italian chain of restaurants across Australia has been placed in receivership after it failed to see eye-to-eye with its lenders. Ferrier Hodgson said the board of the Keystone Hospitality Group couldn't reach an agreement with the lenders on key aspects of its financial structure... Read more

IKEA is recalling 29 million chests and dressers after six children were killed when the units toppled over and fell on them. The US Consumer Product Safety Commission said that the chests and dressers are unstable if they are not secured to a wall... Read more

The Master Builders Association is refusing to meet with South Australia's construction union over a proposal which could see wages across the industry rise by up to 5 per cent. The Construction, Forestry, Mining and Energy Union (CFMEU) wants to even out pay rates across 100 enterprise agreements in the state, which would result in a pay increase for about two-thirds of the agreements... Read more

International Headlines

U.S. Market Report: U.S. stocks tumbled after the U.K.’s shock vote to secede from the European Union. In two days, the S&P 500 Index plunged the most since its August swoon and the Dow Jones Industrial Average erased 871 points. Here are cases cited by strategists and traders for why Brexit isn’t the death knell for the seven-year bull market... Read more

North/South Americas Market Report: North and South American markets are broadly higher today with shares in Brazil leading the region. The Bovespa is up 1.37% while U.S.'s S&P 500 is up 1.27% and Mexico's IPC is up 0.88%... Read more

European Market Report: European markets closed sharply higher today with shares in London leading the region. The FTSE 100 is up 2.64% while France's CAC 40 is up 2.61% and Germany's DAX is up 1.93%... Read more

Asian Market Report: Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.58% and the Nikkei 225 rose 0.09%. The Hang Seng lost 0.27%... Read more

Hiding in gold's shadows, is silver. Silver futures hit a five-month high on Friday at US$18.31 an ounce, as investors snapped up the precious metal.... Read more

World’s Top Fortunes Fall $196.2 Billion Since Brexit Bombshell... Read more

The US economy grew faster than previously estimated in the first quarter of the year, according to official figures. The Commerce Department said gross domestic product (GDP) grew at an annual pace of 1.1% in the quarter, up from an earlier estimate of 0.8%. The upwards revision was helped by stronger export sales. However, growth in consumer spending was revised down to 1.5%, the slowest pace since the first quarter of 2014... Read more

Here’s who benefits most from the demise of Sports Authority... Read more

Under Armour’s Quest to Dethrone Nike and Jump-Start Baltimore. Kevin Plank is out to build the ‘baddest brand on the planet.’ Here’s where the city fits in... Read more

Shares of Twilio Inc. were soaring 22% Tuesday morning to new highs as the company, which recently went public, extended its Monday gains... Read more

Volkswagen agrees to record $14.7 billion settlement over emissions cheating... Read more

Lyft Inc. may be hitting a wall in its war with its much richer competitor. This year, armed with a fresh $1 billion from investors, Lyft charged into battle with Uber Technologies Inc. in the U.S., vastly increasing spending to subsidize driver and rider growth. Lyft promised investors it would cap spending at $50 million a month, or $600 million for 2016, people familiar with the matter said in April. Uber matched many of Lyft’s subsidizes, pumping out driver promotions and keeping fares down... Read more

Market pressure eases after Brexit rout... Read more

Rupert Murdoch believes the Brexit decision is "wonderful." In his first public remarks about the referendum result, delivered in London on Tuesday, Murdoch compared it to a prison break that frees the British people. Murdoch owns several highly influential media properties in the United Kingdom, including The Sun, The Times and Sky News... Read more

Richard Branson: Brexit killed my big deal. Brexit has already killed off one big investment in the U.K. Richard Branson, the billionaire founder of Virgin Group, said his company had ditched a planned acquisition after the U.K. voted last Thursday to leave the European Union... Read more

U.K. Treasury chief George Osborne has no doubts: Britain will "absolutely" have to cut spending and raise taxes following its vote to leave the European Union. "It's very clear that the country is going to be poorer as a result of what's happening to the economy," Osborne told the BBC on Tuesday... Read more

Osborne Rules Himself Out of Race to Be Next U.K. Prime Minister... Read more

Cities around Europe are getting ready to fill the big Brexit-shaped hole emerging in London. Britain's vote to leave the European Union rocked the global financial markets and tanked the pound. One of the main concerns is the future of London as the financial and tech capital of Europe.... Read more

Vodafone Weighs Post-Brexit Move as CEOs Seek Access to Europe... Read more

The average income in the UK moved above its 2009-10 peak in 2014-15, official figures show, owing to a rise in the number of people in work. The mid-point net income of all households in the UK was up 3% after inflation. That meant average income before housing costs reached £473 per week - around £24,600 a year, the Department for Work and Pensions (DWP) said... Read more

European Union leaders pressed the U.K. to spell out how it wants to move forward after voting to leave the bloc, saying uncertainty surrounding the process risks damaging them all. As David Cameron attended what is probably his last EU summit as prime minister, fellow government chiefs warned that delaying the period before the U.K. formally activates the EU’s exit mechanism will prevent the start of negotiations over any future relationship... Read more

Italy's banks were already reeling before the Brexit market rout. Now it seems some of them may need a bailout. Shares in the country's biggest lenders lost 30% of their value on Friday and Monday as global markets went into meltdown after the U.K. voted to leave the European Union. The stocks stabilized on Tuesday but are still deep in the red for the year -- some of the big names have lost 60%... Read more

Britain must pursue a Norway-style agreement with the EU if it is to avoid a damaging recession, according to Morgan Stanley. The bank said negotiating membership of the European Economic Area (EEA) and retaining access to the single market would help the UK to secure a "civilised divorce" from the EU... Read more

4 possible effects of Brexit on Russia's economy. Rather than being a boon, UK’s possible exit from the EU could cast the Russian economy into troubled waters... Read more

Russian Central Bank to introduce 200 and 2,000 ruble notes in late 2017... Read more

Buffett-Backed BYD to Enter $450 Billion China Monorail Market. BYD Co., the electric-car maker that counts Warren Buffett’s Berkshire Hathaway Inc. as a shareholder, is in talks with several of China’s smaller cities on building monorail systems to preempt traffic congestion spurred by rapid growth in automobile ownership... Read more

Takata shares surged on Tuesday after the airbag supplier's boss reportedly said he would resign once the company recovers from a scandal linked to at least 13 deaths and scores of injuries globally. The Tokyo-listed stock jumped more than 10 percent to 405 yen ($4) in the afternoon, as chief executive Shigehisa Takada told the annual shareholder meeting that he would step down from his family company... Read more

The Bank of Japan wrote down the value of its holdings of government debt by 874 billion yen ($8.5 billion) in the last fiscal year, undercutting the income from its still profitable asset-purchase program. With yields below zero, the central bank is buying debt at prices higher than the face value. As the bank purchases and holds debt until maturity, it doesn’t value the bonds at market price but takes the markdown gradually so that at maturity the book value equals the principal... Read more

South Korea on Tuesday announced an economic stimulus package of 20 trillion won ($17 billion) as it cut its 2016 growth forecast due to slowing global demand and the fallout from Britain's shock decision to leave the EU. The finance ministry revised its growth target for the year to 2.8 percent from 3.1 percent, and said it would provide a supplementary budget of 10 trillion won to create jobs and cushion the impact of ongoing state-run corporate restructuring on ailing industries... Read more

Bangladesh's central bank has ended a contract with US cyber security firm FireEye to investigate February's online theft of US$81 million (A$110 million), turning down a proposal to extend the agreement. More than four months after hackers broke into the systems of Bangladesh Bank and transferred money from its account at the Federal Reserve Bank of New York, investigators in Bangladesh and the United States are still trying to identify them... Read more

Indian Prime Minister Narendra Modi on Monday said attempts to cast doubt over outgoing central bank governor Raghuram Rajan’s nationality or his love for the country were “unjust.” Mr. Modi, speaking just over a week after Mr. Rajan said he would return to academia when his term at the Reserve Bank of India expires in September, said the claims made by a senior member of his Bharatiya Janata Party, were wrong... Read more

5 Ways Indians Might Benefit from ‘Brexit’... Read more

Opinion - Matthew Lynn: Now the vote is over, let's move on with six steps to a bright future... Read more

Analysis - Paul R. La Monica: How low can bond rates go after Brexit?... Read more

Latest reports

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