«The latest measures are shifting
from interest rate policy to quantitative easing,» Jamin said.
Not exact matches
Important factors that could cause actual results to differ materially
from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build
rates of certain aircraft; 6) the effect on aircraft demand and build
rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange
rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting
from cancellations, deferrals, or reduced orders by their customers or
from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations
from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover
from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount
rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition
from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit
ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of
interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher
interest payments should
interest rates increase substantially; 27) the effectiveness of any
interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange
rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government
policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
Officials
from the government shared their concerns about higher
interest rates with a Bloomberg reporter, violating the convention of keeping politics out of the day - to - day handling of monetary
policy.
The benchmark 10 - year Treasury note fell
from a more than four - year high to below 3 percent after the European Central Bank kept
interest rates unchanged and reaffirmed its stimulative monetary
policy stance.
«Emerging market powers eager to move away
from being tied to the monetary
policy of the U.S. and the banking system as well as to adopt the block chain as a payment system prove willing adherents as they adjust to zero
interest rates and the decrease in systematic risk.»
Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices,
interest rates and foreign currency exchange
rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services
from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade
policies or the U.K.'s pending withdrawal
from the EU, on general market conditions, global trade
policies and currency exchange
rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
«The failure to deliver tax reform and the slower relative growth likely keep us on the path of gradual normalization in
interest rate policy,» said the analysts, who see the S&P 500 falling to 2,550
from its Monday close of 2,572.83.
The Bank of Korea left its key
interest rate unchanged on Tuesday, as expected, taking note of muted inflationary pressure and showing caution ahead of any further monetary tightening
from the U.S Federal Reserve's
policy meeting on March 20 - 21.
Lacking a formal education in economics and having graduated with law degree
from Yale University, Powell had to learn on the job when it came to monetary theory and
interest -
rate policy.
Mired in a world of low growth, low inflation and low
interest rates, officials
from the Federal Reserve, Bank of Japan and the European Central Bank said their efforts to bolster the economy through monetary
policy may falter unless elected leaders stepped forward with bold measures.
Without a clear voice
from Berlin, the EU will simply find it harder to articulate
policies to deal with the suppression of civil rights in central Europe, the splintering of the single market through Brexit and — heaven help us — a possible renewal of the Eurozone crisis amid as global
interest rates turn higher.
Bond prices fell, sending the yield on the U.S. 10 - year Treasury note to its highest level in four years, following newly released minutes
from the U.S. Federal suggesting bullish sentiment among
policy - makers and signalling more
interest rate hikes ahead.
Zentner says the Fed
policy committee's median
interest rate forecast for the end of 2015 will dip to 0.375 %, down
from the prior forecast of 0.625 % in June.
As long as the market expects the Fed to cut, the pressure on the stock market will be mitigated by an outlook for some relief
from present
interest rate policy.
The answer is, of course, that there is a positive
policy reaction relationship
from expenditure to
interest rates — when activity is high or growing fast,
policy will be tightening so
interest rates are rising.
But this
policy reaction continues beyond a single quarter, and must be confounded (to some extent) with the opposite (negative) relationship
from interest rates to activity.
As a percentage of GDP, more than half of the outstanding sovereign bonds in the developed world originated
from countries or regions where negative
interest rate policies are in place, primarily representing bonds
from the euro zone and Japan.
The first - quarter lag of
interest rates is omitted
from this relationship because it has a positive sign in estimation, which the authors attribute to the
policy reaction.
The BOE will refrain
from raising
interest rates next week but is still set to start normalizing
policy, according to the institute.
The fifth, and most recent, factor is the US Federal Reserve's signals that it might end its
policy of quantitative easing earlier than expected, and its hints of an eventual exit
from zero
interest rates, both of which have caused turbulence in emerging economies» financial markets.
In addition, a rise in long - term
interest rates seems inevitable sooner or later, either because of inflation or because the Federal Reserve backs away
from its easy - money
policies.
It allowed the implementation of monetary
policy to move away
from the use of reserve and liquidity ratios on banks to the use of market operations to influence short - term market
interest rates and, through that channel, the
interest rates that all lenders charged on loans.
While there are some signs of recognition such as the Fed's reduction in its estimated neutral
rate from 4.5 percent to 3.0 percent during the last 2 years, the IMF's explicit use of the term secular stagnation in its World Economic Outlook, ECB president Mario Draghi's call for global coordination and greater use of fiscal
policy, and Japan's indicated
interest in fiscal - monetary cooperation, policymakers still have not made sufficiently radical adjustments in their world view to reflect this new reality of a world where generating adequate nominal GDP growth is likely to be the primary macroeconomic
policy challenge for the next decade.
The Bank of England has pursued a «stop - go»
policy, raising the
interest rate to attract enough foreign short - term loans to keep the exchange
rate from falling.
I have used a fall in exports to show how constrained Beijing's
policy choices are, but I could just have easily done the same using as an example any change in the currency regime, the reform of the hukou system, the de-industrialization of the bankrupt northeast provinces, the development of the OBOR and Silk Road projects, changes in
interest rates or minimum reserves, protecting the stock market
from crashing, the provincial bond swaps, changes in the tax regime, improving energy and environmental
policies, and so on.
Finance Minister Jim Flaherty says Canada will face global pressure to raise
interest rates in 2014, as the United States begins to step back
from its
policy of extraordinary economic stimulus through intervention in bond markets.
The central bank made a concerted effort starting late last year to divorce its «forward guidance» on
interest rates, what it tells markets about the expected future path of
policy,
from specific calendar dates.
In the press conference that followed the monetary -
policy meeting, the president of Europe's central bank, Mario Draghi, stated that
interest rates will remain at current levels well past the end of the bank's asset - purchase program, carried out along with reinvesting principle payments
from maturing securities.
For one thing, central banks have become more likely to tap the brakes by raising
interest rates and moving away
from ultra-loose monetary
policies.
Any move toward US monetary
policy normalization would come in spite of an appeal
from the International Monetary Fund (IMF) that the country delay raising
interest rates until next year.
The minutes
from the Federal Reserve's January meeting showed that
policy makers argued for keeping
interest rates near record lows for longer due to both the stronger dollar and the crisis in Greece.
It is not that monetary
policy is entirely powerless, but its marginal effect may be smaller, and the associated risks greater, the lower
interest rates go
from already very low levels.
Sound financial
policy requires that the Government fully fund any budget deficit by issues of securities to the private sector at market
interest rates, and not borrow
from the central bank.
But
from the perspective of monetary
policy transmission, the higher level of private sector leverage also does imply a stronger impact
from interest rate changes.
Hints of a tighter monetary
policy from the ECB and anunlikely
interest rate increase
from the SNB confirm that both central banksare moving in opposite directions.
The FOMC (Federal Open Market Committee) will be holding its sixth
policy meeting of 2017
from September 19 - 20, after the Board of Governors of the US Federal Reserve System voted unanimously to leave its key
interest rate unchanged in July.
From a labor market perspective, we think it is hard to justify maintaining
interest rates at zero or to pursue a negative -
interest rate policy in the United States.
Competition spread more openly to the market for existing borrowers in mid 1996 when banks cut the
interest rate on standard variable -
rate loans independently of any effect on funding costs
from a change in monetary
policy.
At its July meeting, the BoE left
interest rates unchanged, with its monetary -
policy committee appearing to place less priority on inflationary pressures resulting
from the British pound's depreciation, maintaining its view that UK inflation would peak at around 3 % later this year.
Furthermore, the Fed would like to adhere to the so - called «Taylor Rule» (in spite of Professor Taylor's protestations that it is misinterpreting and misusing his concept), a mathematical construct that purports to make monetary
policy more «scientific» by establishing an arithmetic rule for varying the administered
interest rate according to the variance of «actual
from target inflation» (note that «inflation» refers to the change in a price index in this case, not the phenomenon of inflation of the money supply as such), as well as the variance of economic output
from «potential output» (i.e, the so - called «output gap» is incorporated in the formula as well).
These are the reserves the Fed adjusts to effect its monetary
policy (credit liquidity) and
interest rate goals, and these are the reserves it sells in order to reduce its balance sheet and drain liquidity
from the interbank system, which affects the availability of credit in the economy.
The Bank of Japan will consider making negative
interest rates the centrepiece of future monetary easing by shifting its prime
policy target
from base money to
interest rates at its review, Reuters reported on Sept. 14, citing sources familiar with its thinking.
In response to the threat
from inflation, which in August of this year reached a 16 - year high, Mexico's central bank sharply tightened monetary
policy, increasing
interest rates at seven consecutive meetings up to June.
In my next article, I'll dig deeper into how the internet economy has impacted monetary
policy and what we should expect
from interest rates going forward.
This is quite a difference
from many other sovereign markets, many of which are involved in stimulus
policies that push down
interest rates.
He also offered a similar warning in July, citing the potential for a
policy mistake by the Federal Reserve as it looks to normalize
interest rates from ultralow levels in the wake of the 2007 - 09 financial crisis.
Due to CBN's fixation with fixing exchange
rates at a subsidized
rate, it had to tighten money supply leading to a high monetary
policy rate of 14 % with other
interest rates following
from that high base.
The Monetary
Policy Committee (MPC) of the Bank of Ghana (BoG) has, in a surprise move, cut its key benchmark
interest rate by 200 basis points
from 25.5 per cent to 23.5 per cent, citing downward trends in inflation.
is a weekly topical series hosted by comedian Daniel Tosh that delves into all aspects of the Internet,
from the ingenious to the absurd to the Reserve Bank of Australia board member Ian Harper said economic growth isn't strong enough to justify an
interest -
rate increase and
policy makers can do
At the same time, gold has benefited
from central bank
policies and the level of real
interest rates (in other words, the
interest rate after inflation.)