Central Banks
Erste Bank warns of widening corporate credit spreads amid ECB rate hike bets
Austrian lender Erste Group flags rising pressure on corporate credit spreads as energy costs and ECB rate expectations drive bond market volatility. Volkswagen’s stock slump highlights sector strain.
UK proposes Bank of England mandate to support stablecoin innovation
HM Treasury plans to add a secondary objective for the BoE to foster digital payment innovation, including stablecoins, while maintaining financial stability as its primary goal. The proposal will be debated in Parliament next month.
SNB insists on stricter capital rules for UBS despite parliamentary pushback
Swiss National Bank vice chair rejects compromise proposal to ease CET1 capital requirements for UBS, citing financial stability risks. Parliamentary committee expected to rule next week.
Moody’s affirms Philippines’ Baa2 rating with stable outlook
Rating agency cites fiscal consolidation efforts and resilient funding access as key strengths, while warning of debt affordability pressures and climate risks.
Ray Dalio urges 15% gold allocation as US debt policy sparks dollar, yield fears
Gold hits three-month high above $4,640/oz as Treasury yields fall and dollar weakens on surprise U.S. debt-buyback expansion. Dalio flags debt crisis hedge.
Turkey’s central bank to restart one-week repo auctions
The Turkish central bank will resume weekly repo operations at its 37% policy rate, ending a suspension tied to inflation risks from regional conflict. Governor Fatih Karahan said conditions had improved.
Former UBS CEO backs Swiss regulator in dispute with bank
Oswald Grübel, ex-CEO of UBS and Credit Suisse, sides with Finance Minister Karin Keller-Sutter against UBS's pushback on stricter capital rules. He argues state oversight is essential to prevent systemic risk.
Euro zone wage growth slows in Q2, ECB data shows
Negotiated wages rose 2.44% in the three months to June, down from 2.56% in Q1, according to European Central Bank figures released Friday.
30-year Treasury yield tops 5.33%, outpacing dividend stocks by 2.2 points
The gap between the 30-year Treasury yield and dividend stock yields has widened to 2.2 percentage points, the widest since 2007. History suggests divergent paths ahead for bonds and equities.
Global markets digest August 2026: equities rise, bonds wobble, Bitcoin surges
U.S. stocks extend gains on CTA normalization, while 30-year Treasury yields hit 19-year highs before easing. Bitcoin breaks above $79,000 amid ETF inflows and Treasury buyback expansion.
Central banks hold most gold reserves at Bank of England, World Gold Council data shows
Survey finds 57% of central banks use the Bank of England as a foreign custodian for gold reserves, with Goldman Sachs estimating monthly purchases by official sector at 50 tonnes through 2026.
SNB’s Tschudin says negative rates remain an option in Switzerland
Swiss National Bank director Petra Tschudin cites anchored inflation expectations and a stable CPI basket as key factors behind record-low inflation. The central bank retains all policy tools, including sub-zero rates, to meet its 0-2% inflation target.
SNB’s Tschudin warns AI could fuel near-term inflation pressures
Swiss National Bank board member cites redirected investment flows and chip shortages as potential short-term drivers of price gains, though long-term impact remains uncertain.
BOJ’s July 2027 meeting timing fuels speculation on rate hike timing
The Bank of Japan’s next policy meeting, scheduled for July 21-22, 2027, coincides with the expiration of two hawkish board members’ terms, raising questions about the central bank’s normalization strategy.
European stocks hit August lows as bond yields surge, central banks stay hawkish
Stoxx Europe 600 extends losing streak to seven sessions amid rising long-term yields and hawkish central bank signals. Novonesis leads gains after strong earnings.
Global economic calendar: August 20, 2026 — earnings, inflation and central bank updates
AEGON, Alibaba and Walmart among companies reporting quarterly results; Germany releases producer prices and trade data alongside Sweden’s Riksbank rate decision.
South Korea to launch $72 bln chip windfall fund for youth, AI
Government proposes Future Response Fund to channel semiconductor tax revenue into youth employment, housing and AI investment. Legislation to be submitted with 2027 budget.
China holds benchmark lending rates steady for 15th month in August
The People's Bank of China kept the one-year and five-year loan prime rates unchanged at 3.00% and 3.50%, respectively, as policymakers prioritize fiscal support over further monetary easing amid weak July economic data.
Global bond yields surge to multi-decade highs on US turmoil
US long-term borrowing costs hit 2007 highs, dragging G7 yields higher amid Iran war, inflation fears and political uncertainty. Central bank responses remain uncertain.
Mexico’s central bank holds rates at 6.5% amid inflation concerns
Banxico signals prolonged pause as services inflation remains sticky, while peso gains 6% in 2026.
China holds loan prime rates steady for 15th month in August
The People's Bank of China kept the one-year and five-year loan prime rates at 3.00% and 3.50%, respectively, as weak domestic demand and banking sector constraints limited policy options.
U.S. Treasury may expand bond buyback program beyond $4 bln per issue
Secretary Bessent signals potential increase in Treasury bond repurchases to stabilize markets and address yield distortions. Update follows surprise doubling of buyback size announced Wednesday.
U.S. accused of interest-rate manipulation after doubling bond buybacks
Criticism of the Swiss National Bank’s currency interventions highlights parallels with Washington’s bond-market interventions, which similarly distort market pricing. Analysis of policy overlap and unintended consequences.
IMF hails Lebanon bank law changes as ‘major step’ amid crisis
Parliament passes amendments to bank resolution framework, meeting 99% of IMF demands, but president’s approval and Constitutional Council review still pending.