ING Groep N.V. PERP DBT 6.125 (ISG)
- Bloomberg
China Joins U.S. as Engine of Global Recovery With Record Growth
(Bloomberg) -- China’s economy strengthened in the first quarter of the year as consumer spending rose more than expected, putting it on course to join the U.S. as twin engines for a global recovery in 2021.Gross domestic product climbed 18.3% in the first quarter from a year earlier, largely in line with the 18.5% predicted in a Bloomberg survey of economists, though that record-breaking figure was mainly due to comparisons with a year ago when much of the economy was shut due to coronavirus. Retail sales beat expectations while industrial output growth moderated.The latest data puts China on course to grow well above its annual target of more than 6%, supporting the view that China and the U.S., where economists predict 6.2% growth, will both outperform other major nations this year. China’s recovery hasn’t yet plateaued after it became the first major economy to contain the spread of coronavirus and return to growth, with GDP rising 0.6% in the first three months of 2021 from the previous quarter.How Much of China’s GDP Was Made in America?: Daniel MossThe recovery last year was led by strong investment in real estate and infrastructure spurring demand for industrial goods, while overseas orders for medical goods and electronic devices fueled exports. Consumer spending had lagged, but the latest figures showed a turnaround. Retail sales growth was 6.3% in March when calculated on a two-year average growth basis -- which removes distortions created by last year’s lockdowns -- up sharply from the rates seen last year.“We are seeing a bit more balanced recovery in the Chinese economy,” Wang Tao, chief China economist at UBS AG, said in an interview with Bloomberg TV. “That early pickup in construction industry is going to give way to more household consumption,” she added. Consumer spending at restaurants and sales of discretionary goods such as jewelry, alcohol and tobacco led the growth of retail sales in March.The economy was also boosted by a jump in investment from overseas. Inbound investment into China rose almost 40% to $45 billion in the first three months of 2021, according to data from the Ministry of Commerce released Thursday. That was the highest for that period in comparable data back to 2002.Markets were choppy following the data release but ended the day little changed, with the benchmark CSI 300 Index paring an earlier loss of as much as 0.6% to finish up 0.35% for the day. The yield on benchmark 10-year sovereign debt fell slightly to 3.16%. The onshore yuan was unchanged on the day at 6.5226 per dollar.Broadening out the recovery remains a work in progress with growth in the first quarter still reliant on the property sector. Fixed-asset investment in real estate rose 7.6% on a two-year average growth basis and infrastructure spending increased roughly in-line with pre-pandemic rates. Quarterly steel production of 271 million tons suggests that annual output is on course to top 1 billion tons for the second year running.What Bloomberg Economics Says...The undershoot in GDP growth relative to expectations and lopsided nature of the recovery do not warrant any economy-wide shift in monetary policy, in our view.Looking forward, production is poised to start peaking, while demand should pick up further. This should add more balance in what looks to be a steady recovery ahead.Chang Shu, chief Asia economistFor full report, click hereAlthough Beijing has promised “no sharp turns” in monetary and fiscal support this year, some prominent economists have warned that premature tightening could still put the recovery at risk. The central bank has asked banks to curtail loan growth in coming months as it seeks to control credit to curb asset bubbles. Alongside the investment data, data showing home prices grew at the fastest pace in seven months in March will likely prompt more action by Chinese policy makers to rein in the sector.“Considering the robust recovery, we certainly do not expect Beijing to step up easing measures, but it is also unlikely to make a sharp shift in its policy stance,” Nomura economists led by Lu Ting wrote in a note. Authorities have learned lessons from a “forceful deleveraging campaign” in 2017-18, which led to bond defaults, a stock market selloff and weaker growth, they said.The statistics bureau said Friday inflation is expected to remain in a moderate range this year, and while rising commodity costs could boost domestic prices, there’s no basis for prices in upstream sectors to rise significantly.“The economy is far from overheating,” said Bruce Pang, head of macro and strategy research at China Renaissance Securities Hong Kong Ltd. “The consumer sector doesn’t have a solid basis for overheating, and I don’t think the central bank will take a faster turn for monetary policy.”Bloomberg Economics forecasts global GDP growth of 6.9% in 2021, rapid enough to bring output substantially back onto its pre-Covid path. Data released Thursday showed the U.S. economy’s comeback is firing on all cylinders, with retail sales exceeding pre-pandemic levels in all categories except restaurants. Production at U.S. factories increased in March by the most in eight months.China has rapidly accelerated its vaccination campaign over the past month in a move that should help bolster spending on services. A recovery in major economies fueled by vaccine roll-outs and the Biden administration’s massive fiscal stimulus is expected to sustain rapid growth in Chinese exports this year.Economists have upgraded their forecasts for China’s growth in recent days: Bloomberg Economics expects 9.3% expansion, ING Groep NV economist Iris Pang predicts 8.6% and Nomura sees 8.9%.“We expect the economy to continue to gain momentum in the second quarter, with a rotation in terms of the drivers of growth compared to last year,” said Louis Kuijs, head of Asia Economics at Oxford Economics Ltd. in Hong Kong. “Less generous fiscal and monetary policy will weigh on infrastructure and real estate investment, while improved profitability and confidence should buoy corporate investment and consumption.”(Updates with foreign investment data.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
- GlobeNewswire
ING to separate Board roles for operations and technology; Ron van Kemenade appointed chief technology officer, chief operations officer Roel Louwhoff to leave ING
ING to separate Board roles for operations and technology; Ron van Kemenade appointed chief technology officer, chief operations officer Roel Louwhoff to leave ING ING announced today that in order to further strengthen its position as a digital leader in banking it will separate the Management Board Banking roles for technology and operations. Ron van Kemenade will be appointed member of the Management Board Banking and chief technology officer, effective 1 May 2021. After a transitional period, Roel Louwhoff, chief operations officer and chief transformation officer, will leave ING later this year to continue his career outside the company. Further announcements on his succession will be made as and when appropriate. Ron van Kemenade is currently ING’s chief information officer, reporting to the chief operations officer. In his new role as chief technology officer on the Management Board Banking he will remain responsible for technology globally, including infrastructure, applications and architecture. He will also remain responsible for data management and will assume responsibility for information security. The chief operations officer will remain responsible for bankwide operations including KYC, the Global Transformation Office and ING Business Shared Services. Ron van Kemenade (Dutch) joined ING in 2003 as director Internet Retail for ING Netherlands. He has held various positions including responsibility for direct channels and payment services at the Postbank, for product and programme management at ING Retail Banking and as CIO of ING Netherlands from 2010. In 2013, he assumed his current position. Before joining ING, Ron worked at telecom provider KPN for 12 years, lastly as director Consumer Internet and Media Services (2001-2002). He holds a degree in public administration from the University of Twente and a postgraduate Controller’s degree. Roel Louwhoff was appointed as ING’s chief operations officer effective 1 May 2014 and additionally as chief transformation officer in October 2016. Before joining ING he held positions in consultancy, operations and IT with various international organisations including SNT, ClientLogic Corporation and BT. Steven van Rijswijk, CEO of ING said: “Today’s announcement marks a next step in our journey to become a data-driven digital leader in banking. I am confident that Ron’s appointment as chief technology officer will serve as a catalyst for our further development. As ING’s first chief operations officer, Roel has played a central role in the execution of our strategy. We have benefitted enormously from his experience and drive and will continue to do so in the coming months. But I want to thank him already for his valuable contributions to ING and wish him well in his future activities.” Roel Louwhoff said: “The separation of the operations and technology roles at board level is a natural step in the evolution of ING as a digital leader, which I fully support. For me, after seven years on the Board, it is also a natural moment to start looking for a change of scenery later this year. I have thoroughly enjoyed the journey over the past years and I want to thank all of my 57,000 colleagues and wish them well for the future.” The appointment of Ron van Kemenade has been approved by the European Central Bank. Roel Louwhoff will step down from the Management Board Banking effective 1 August 2021 and will leave ING on 1 November 2021. As of 1 May 2021, the composition of ING’s Management Board Banking will be as follows: Steven van Rijswijk, chief executive officerTanate Phutrakul, chief financial officerLjiljana Čortan, chief risk officerPinar Abay, head of Market LeadersAndrew Bester, head of Wholesale BankingAris Bogdaneris, head of Retail and head of Challenger & Growth MarketsRon van Kemenade, chief technology officerRoel Louwhoff, chief operations officer and chief transformation officer (until 1 August 2021) Note for editorsA short interview with Ron Van Kemenade is available at ing.com. For further information on ING, please visit www.ing.com. Frequent news updates can be found in the Newsroom or via the @ING_news Twitter feed. Photos of ING operations, buildings and its executives are available for download at Flickr. ING presentations are available at SlideShare. Press enquiries Investor enquiries Raymond Vermeulen ING Group Investor Relations +31 20 576 6369 +31 20 576 6396 Raymond.Vermeulen@ing.com Investor.Relations@ing.com ING PROFILE ING is a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is empowering people to stay a step ahead in life and in business. ING Bank’s more than 57,000 employees offer retail and wholesale banking services to customers in over 40 countries. ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N). Sustainability forms an integral part of ING’s strategy, evidenced by ING’s leading position in sector benchmarks by Sustainalytics and MSCI and our ‘A-list’ rating by CDP. ING Group shares are included in major sustainability and Environmental, Social and Governance (ESG) index products of leading providers STOXX, Morningstar and FTSE Russell. In January 2021, ING received an ESG evaluation score of 83 ('strong') from S&P Global Ratings. IMPORTANT LEGAL INFORMATION Elements of this press release contain or may contain information about ING Groep N.V. and/ or ING Bank N.V. within the meaning of Article 7(1) to (4) of EU Regulation No 596/2014. Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to a number of factors, including, without limitation: (1) changes in general economic conditions, in particular economic conditions in ING’s core markets, including changes affecting currency exchange rates, (2) the effects of the Covid-19 pandemic and related response measures, including lockdowns and travel restrictions, on economic conditions in countries in which ING operates, on ING’s business and operations and on ING’s employees, customers and counterparties, (3) changes affecting interest rate levels, (4) any default of a major market participant and related market disruption, (5) changes in performance of financial markets, including in Europe and developing markets, (6) political instability and fiscal uncertainty in Europe and the United States, (7) discontinuation of or changes in ‘benchmark’ indices, (8) inflation and deflation in our principal markets, (9) changes in conditions in the credit and capital markets generally, including changes in borrower and counterparty creditworthiness, (10) failures of banks falling under the scope of state compensation schemes, (11) non-compliance with or changes in laws and regulations, including those financial services and tax laws, and the interpretation and application thereof, (12) geopolitical risks, political instabilities and policies and actions of governmental and regulatory authorities, (13) legal and regulatory risks in certain countries with less developed legal and regulatory frameworks, (14) prudential supervision and regulations, including in relation to stress tests and regulatory restrictions on dividends and distributions,, (also among members of the group), (15) regulatory consequences of the United Kingdom’s withdrawal from the European Union, including authorizations and equivalence decisions, (16) ING’s ability to meet minimum capital and other prudential regulatory requirements, (17) changes in regulation of US commodities and derivatives businesses of ING and its customers, (18) application of bank recovery and resolution regimes, including write-down and conversion powers in relation to our securities, (19) outcome of current and future litigation, enforcement proceedings, investigations or other regulatory actions, including claims by customers who feel mislead and other conduct issues, (20) changes in tax laws and regulations and risks of non-compliance or investigation in connection with tax laws, including FATCA, (21) operational risks, such as system disruptions or failures, breaches of security, cyber-attacks, human error, changes in operational practices or inadequate controls including in respect of third parties with which we do business, (22) risks and challenges related to cybercrime including the effects of cyber-attacks and changes in legislation and regulation related to cybersecurity and data privacy, (23) changes in general competitive factors, including ability to increase or maintain market share, (24) the inability to protect our intellectual property and infringement claims by third parties, (25) inability of counterparties to meet financial obligations or ability to enforce rights against such counterparties, (26) changes in credit ratings, (27) business, operational, regulatory, reputation and other risks and challenges in connection with climate change, (28) inability to attract and retain key personnel, (29) future liabilities under defined benefit retirement plans, (30) failure to manage business risks, including in connection with use of models, use of derivatives, or maintaining appropriate policies and guidelines, (31) changes in capital and credit markets, including interbank funding, as well as customer deposits, which provide the liquidity and capital required to fund our operations, and (32) the other risks and uncertainties detailed in the most recent annual report of ING Groep N.V. (including the Risk Factors contained therein) and ING’s more recent disclosures, including press releases, which are available on www.ING.com. This document may contain inactive textual addresses to internet websites operated by us and third parties. Reference to such websites is made for information purposes only, and information found at such websites is not incorporated by reference into this annual report. ING does not make any representation or warranty with respect to the accuracy or completeness of, or take any responsibility for, any information found at any websites operated by third parties. ING specifically disclaims any liability with respect to any information found at websites operated by third parties. ING cannot guarantee that websites operated by third parties remain available following the filing of this document or that any information found at such websites will not change following the filing of this document. Many of those factors are beyond ING’s control. Any forward looking statements made by or on behalf of ING speak only as of the date they are made, and ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. This document does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States or any other jurisdiction. Attachment PDF version of press release
- Bloomberg
Fed Signals It’s Ready to Wield Power Over Short-Term Rates
(Bloomberg) -- Federal Reserve Chairman Jerome Powell stands ready to pull some of the central bank’s policy levers in between regularly scheduled meetings, if that’s what it takes to keep short-term interest rates under control.He noted recent downward pressure on rates during the Federal Open Market Committee’s March 16-17 meeting, according to minutes released Wednesday, and said it might be appropriate adjust the interest on excess reserves rate (known as IOER), the amount the Fed pays on its facility for overnight reverse repurchase agreements or both. Action could come at a regular meeting or between them to keep the fed funds rate, the central bank’s main policy benchmark, “well within” 0% to 0.25%, he said.Repo and Treasury bill rates have been flirting with zero -- and even trading below sometimes -- since the beginning of the year as reserve balances at the central bank swell. Market participants have told the Fed that a rapid expansion in reserves could keep driving money-market rates lower, with the earliest and most pronounced moves in the overnight secured funding markets.“The Fed has no qualms about helping the front-end when it’s necessary, but at the moment it seems that things would have to get worse before the Fed steps in,” said Gennadiy Goldberg, senior U.S. rates strategist at TD Securities.Padhraic Garvey, head of global debt and rates strategy at ING Groep NV, expects that moment could come sooner with a 10 basis point hike on IOER. “It would be purely a technical thing, to coax liquidity into that bucket, and in so doing to help frame where surrounding alternatives should trade, including the likes of SOFR,” he wrote in a client note.Traders aren’t waiting either. They’re selling futures tied to the Fed Funds rate that would benefit from such a move after the FOMC minutes hinted at the appropriateness of implementing adjustments to administered rates.The Fed took its first steps to support short-term rates last month when it directed the Open Markets Desk at the New York Fed to increase the daily counterparty limit on its overnight reverse repo facility to $80 billion per day from $30 billion, the first adjustment since 2014.On Wednesday, 15 participants tapped the facility for $35 billion, the most since March 31.(Adds strategist quote in fifth paragraph and price action in sixth.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
