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WORLD NEWSFriday 22 January 2016
Hong Kong bourse boss not fan of China’s market intervention
KELVIN CHAN probably intervene again ket intended to prevent anybody likes it. I don’t dia event to outline the
AP Business Writer in the markets but hoped big share price swings but think they even like it but bourse’s strategy over the
HONG KONG (AP) — The officials would do a better which traders said add- that’s what they did. That’s next three years, which is
head of Hong Kong’s stock job. ed to turmoil. They failed what they think they have focused on expanding di-
exchange said Thursday The emergency measures to stop the rout, with the to do, they probably will do rect trading links with main-
that he wasn’t a fan of were aimed at stemming Shanghai Composite down it again.” land Chinese equity, com-
recent moves by Beijing a painful decline on Chi- about 19 percent since the The comments highlight modity and bond markets.
to prop up sagging share na’s stock markets that also start of the year. how the Chinese govern- In late 2014, the Shanghai-
prices but it won’t stop the contributed to a global “What do you think of the ment’s clumsy meddling in Hong Kong Stock Connect
exchange from expanding slump in shares. The mea- Chinese obnoxious inter- markets has eroded confi- trading link was launched
ties with mainland Chinese sures included curbs on vention policy? That’s what dence in its ability to steer giving international inves-
counterparts. stock sales by major share- you’re asking,” Li said in a the country through eco- tors wider access to Chi-
Hong Kong Exchanges holders and a botched reply to a reporter’s ques- nomic and financial re- na’s main stock market,
and Clearing CEO Charles “circuit breaker” mecha- tions. “I don’t like it. I don’t forms. which had been largely
Li said that Beijing would nism on the Shanghai mar- think you like it. I don’t think Li was speaking at a me- closed off to outsiders.q
ECB holds out chance of more stimulus at March meeting
President of Greece Prokopis Pavlopoulos, left, and President of the European Central Bank Mario nations that use the shared ECB president Mario Draghi
Draghi, shake hands as they meet in Frankfurt, Germany, Tuesday, Jan. 19, 2016. euro currency will have a opening the door widely for
new set of staff estimates new ECB action in March,”
(AP Photo/Michael Probst) about the future course of wrote analyst Carsten Brz-
inflation. eski at ING-DiBa.
DAVID McHUGH turmoil threaten the econ- ber ECB governing coun- That could be fodder for “While today’s ECB meet-
AP Business Writer omy. cil left its key interest rates a possible shift to do more ing will again feed bold
FRANKFURT, Germany (AP) At a news conference untouched Thursday and to push up inflation in the speculations about what
— European Central Bank Thursday, Draghi under- didn’t ramp up its existing eurozone, which is now could happen in March,
head Mario Draghi let rat- lined his willingness to ex- 1.5 trillion-euro ($1.63 tril- considered way too low the question remains
tled investors know that pand existing stimulus ef- lion) monetary stimulus pro- at 0.2 percent annually. Oil whether Draghi will really
the bank is poised to take forts, saying several times gram. has fallen from around $45 be able to deliver on his
action as soon as its next that there was “no limit” to At its March 10 meeting, per barrel since the bank’s promise.”
meeting in March if plung- measures it might take. however, the bank that sets Dec. 3 meeting to around The bank made a similar
ing oil prices and market As expected, the 25-mem- monetary policy for the 19 $28 per barrel. statement in October be-
Draghi indicated the dras- fore increasing stimulus on
tic recent fall in oil prices Dec. 3. The increase, how-
has increased risks that ever, was less than mar-
inflation will stay too low. kets had expected, and
The bank’s goal is just un- shares sagged in its wake.
der 2 percent, a level con- Draghi issued a mild cau-
sidered healthiest for the tion against exaggerated
economy. expectations this next time.
“It will therefore be neces- He said he “abstained from
sary to review and possibly blaming markets as such,”
reconsider our monetary adding, “and why is that
policy stance at our next so? Because communica-
meeting in early March,” tion is a two-way affair. So
he told reporters in Frank- it’s very hard to put the
furt, Germany. blame of some disappoint-
“What was expected to be ment on one side only.”
a dull first meeting of the He didn’t offer hints about
year turned out to be an the exact tools he bank
exciting ECB meeting, with might choose. q
Russian ruble keeps on falling, hits new record low
JAMES ELLINGWORTH ing Wednesday evening. ally changing, the rate is Iran, which increases the Vneshprombank, one of
Associated Press It later recovered slightly volatile, but it’s far from a supply of oil on global mar- the country’s top 50 lend-
MOSCOW (AP) — The Rus- to trade around 83.85 on collapse,” he said Thurs- kets. ers, after finding evidence
sian ruble hit another his- Thursday evening. day in comments reported The IMF predicted Tuesday that “persons exercising
toric low against the dollar Thursday’s slip means the by Russian news agencies. that Russia’s economy will control over the bank” had
Thursday as currencies slid ruble is at its lowest level Putin had no plans for any contract 1 percent in 2016 stripped its assets, add-
across the former Soviet since the currency was emergency meetings, he following a fall of 3.7 per- ing that law enforcement
Union against the back- redenominated in 1998, added. cent last year, before re- would be involved in track-
drop of low oil prices. during Russia’s worst post- The steep decline in oil pric- turning to 1 percent growth ing the missing money.
The ruble traded above 85 Soviet economic crisis. es — which are trading at next year. The ruble has The funds may have been
to the dollar for the first time President Vladimir Putin’s 12-year lows — has been a lost more than half its value spent in Russia, Europe and
in Moscow early Thursday spokesman Dmitry Peskov severe blow to Russia’s oil- against the dollar in the last the U.S. on property such
afternoon, a fall of more insisted, however, that the dependent economy. The two years. as real estate, shares and
than three percent, which situation was not critical. ruble’s new lows this week Also Thursday, the Russian “expensive vehicles,” the
beat the previous low of “I wouldn’t use the word follow the lifting of inter- central bank said it had central bank said in a state-
82.4 to the dollar set in trad- ‘collapse.’ The rate is re- national sanctions against revoked the license of ment. q
