European Central Bank President Christine Lagarde warned that an escalation of disputes over trade levies kicked off by US President Donald Trump may have a detrimental effect on the world economy. 

“If we were to go to a real trade war where trade would be dampened significantly, that would have severe consequences,” she told the BBC. “For growth around the world and for prices around the world, but particularly in the United States.” 

In the interview, Lagarde said that Trump’s “decisions, his counter decisions, are a cause for concern, are a cause for us to be extremely vigilant,” adding that this is “causing a level of uncertainty that we haven’t seen in a long time.” (BBG – Continue Reading) 

Italy's second-largest bank UniCredit (CRDI.MI), said it had received European Central Bank authorisation to issue new shares, subject to shareholder approval, to finance its takeover bid for smaller rival Banco BPM (BAMI.MI). 

Shareholders in UniCredit meet on March 27 to approve the new share issue needed to finance the buyout offer for Banco BPM. (RTRS – Continue Reading) 

China's financial regulator urged institutions to boost support for consumption, promising in a statement on Friday to relax consumer credit quotas and loan terms as it offers long-term backing to make available large sums.

The National Financial Regulatory Administration (NFRA) added that it encouraged financial institutions to provide loan renewal support to eligible borrowers of personal consumption loans. (RTRS – Continue Reading) 

Japan’s largest trade union federation is set to announce its first tally of pay deals, a crucial measure of whether wage growth momentum is holding up in the country. Worker pay remains an essential piece of the virtuous economic cycle sought by the Bank of Japan and the government.

The Japanese Trade Union Confederation, known as Rengo, will release its initial tally of wage agreements later Friday, offering insight into how much companies were able to respond to the strong push from unions. Worker demands last week reached 6%, marking the highest level since 1993. The announcement is expected as early as 4:15 PM. 

The outcome of the spring wage negotiations is closely tracked by the Bank of Japan as a barometer of pay growth momentum. Sustained salary increases are seen as vital for fueling domestic demand and keeping the central bank on track for further monetary tightening. (BBG – Continue Reading)