Bank of America is not waiting for onset of recession

Bank of America is not waiting for the onset of a recession due to the bankruptcy of oil companies

These fears are groundless, says economist Bank of America Merrill Lynch, Michel Mayer.

Concerns that the bankruptcy of oil companies may trigger the onset of the recession in the United States are groundless, says economist Bank of America Merrill Lynch, Michel Mayer.

It is important to note that if the number of defaults is growing because of the situation in the economy itself, their influence on it is quite limited – quoted by Business Insider Meyer.

Meyer cites the example of a hypothetical mid-sized companies:. Let’s say it 600 thousand employees, and, for example, half of them will become unemployed within a year (it draws attention to the fact that bankruptcy does not necessarily lead to liquidation of the company, but often its restructuring ) – this corresponds to a reduction of 25 thousand jobs a month.. However, keep in mind that a considerable part of these reductions have already taken place and has been reflected in the statistics, not too reflected on the state of the economy.

oil companies, the threat of bankruptcy is not reflected in the volume of loans granted by banks.

Although it is too early to judge, but so far there is no evidence of deterioration in bank lending dynamics – emphasizes Meier.

According to portfolio manager Mark Durbiano of Federated Investments, concerns about the impact of defaults oil companies on the economy expressed in the active sale of high-yield bonds since the beginning of the year, but in recent weeks the dynamics of these papers shows that the risks are seen as declining.

“The quality of corporate loans is high, the US economy is strong, there is no reason to think that something is about to change,” – emphasizes Durbiano.

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CBR will introduce harmonization of deals with

CBR will introduce harmonization of deals with shares of banks of Russia in the amount of more than 0.1% of assets

MOSCOW (Reuters) – A new bill the Ministry of Finance on the harmonization of banks buying shares of companies with the Central Bank stipulates that the regulator will require approval of the transaction to generate income and participation in the management, on which the bank will spend an amount greater than 0.1 per cent of assets.

"The bill provides that the said acquisition will require the consent of the Bank of Russia, if the amount of funds allocated for the purchase of shares (interests) of the legal entity to exceed 0.1 percent of the value of the credit institution’s assets", – stated in the press service of the regulator in response to a Reuters query.

"Mandatory criterion for determining whether the need to obtain the consent of the Bank of Russia is the fact that the relevant investment is made by the credit institution for the purpose of generating income from the ownership of shares (stakes) in the legal entity and participation in the management of its activities".

The Ministry of Finance wants to oblige Russian banks to agree to purchase large stakes in companies with CBR, calling the purpose of this measure improving the financial stability of banks. Notice of the beginning of the preparation of the bill, involving changes in the law "On Banks and Banking Activity", It was taken at the federal portal of draft regulations on Thursday.

(Kira Zavyalova, Elena Fabrichnaya editor)

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India wants for 5 years to bring in raw materials

India wants for 5 years to bring in raw materials extraction expansion $ 15 billion in investment

The Government of India is going for 5 years to bring 1 trillion rupees ($ 15 billion) investment to support the mining sector in order to reduce imports of raw materials, said Industry Minister Piyush Goyal in an interview with Bloomberg.

The minister spoke about the intention to invite foreign companies to participate, while recognizing the existence of a number of problems, including those related to the acquisition of land and in the field of environmental law.

According P.Goyala, mining industry in India is at an early stage of formation, but some success it has already achieved.

In particular, coal output growth has led to a reduction in imports of raw materials by 8% for the year ended March 31, up to 200 million tons. It is expected that in the current fingodu coal overseas purchases will drop to 160 million tons, and coal to the state corporation Coal India (NS: COAL) Ltd. It sets an ambitious goal of doubling production by 2020, up to 1 billion tons a year.

It is estimated the Federation of Indian mining industry, only 13% of 575 thousand sq. Meters of land with potential for production have been explored at the moment, with the share of private capital in the sector is minimal.

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EC will continue trade negotiations with United

The EC will continue trade negotiations with the United States until the effective completion

Negotiations between the EU and the US on the TTIP (Transatlantic Trade and Investment Partnership) are moving, in the European Commission has a clear mandate on them 28 Member States of the European Union, European Commission spokesman Margaritis Shinas.

"At the last meeting of the European Council, European Commission President Jean-Klod Yunker received the necessary support in regard to the continuation of negotiations", – said a spokesman on Tuesday at a briefing in Brussels in response to a request to comment on the question of the need for France to conduct further discussions on the TTIP.

M.Shinas said he did not consider it necessary to comment on individual statements. "We prefer to maintain an organized work and stick to what was envisaged in the hope to conclude these negotiations", – he said.

"We will continue our work on the basis of the mandate that we have been entrusted"- reiterated the EC representative, in response to persistent questions on the same subject. According to him, "When negotiating, they are to come to the result".

He again referred to a statement by Jean-Claude Juncker that the European Commission is negotiating not to weaken the European standards on environmental protection, food or lifestyle. This, according to him, on the other hand, is about how to achieve international recognition of these standards.

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