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Associated Press
an hour ago
- Business
- Associated Press
As Markets Teeter, EBC's David Barrett Calls for Caution, Lower Leverage, and Strategic Gold Allocation
Addressing rising yields, shifting gold dynamics, and why discipline—not speculation—will define success for investors LONDON, UNITED KINGDOM, June 9, 2025 / / -- In a climate defined by rising macroeconomic uncertainty and widening asset class divergence, David Barrett, CEO of EBC Financial Group (UK) Ltd, is urging global investors to reduce leverage, diversify prudently, and prepare for uncertainties. His remarks, shared in a feature interview aired on China Central Television (CCTV), delivered a framework for a stable approach to investing in turbulent times. The interview, which featured Barrett alongside representatives from Goldman Sachs, Citigroup, and JPMorgan, explored the factors reshaping global asset allocation and the evolving role of gold as a strategic hedge. From Peak to Pullback: The Gold Recalibration In early 2025, gold surged over 25% year-to-date, briefly surpassing $3,500 per ounce—far outperforming equities and commodities. While U.S. stocks posted moderate gains and oil markets slumped, gold's momentum highlighted persistent risk aversion in investor sentiment. However, according to CCTV's coverage, gold pulled back more than 5% in May, following signs of easing trade tensions and a drop in the U.S. Consumer Price Index (CPI) to 2.3% in April—a shift that tempered inflation expectations and briefly weakened gold's appeal as an inflation hedge. 'People should be conservative with their leverage and their exposure,' said Barrett. 'Keep your powder dry so you can react to these ever-changing news cycles. It gives you the opportunity to exploit moves when they come along.' Sovereign Risks and the Long View Barrett also drew attention to deepening structural concerns—particularly in sovereign debt markets. Moody's downgrade of the U.S. sovereign credit rating from Aaa to Aa1 on 17 May 2025 stripped the U.S. of its final top-tier rating. Paired with weak demand at 20-year U.S. and Japanese bond auctions, this has pushed long-term yields to multi-year highs and stirred investor anxiety. 'This isn't about risk aversion—it's about intelligent positioning,' Barrett added. 'Gold is not just a safe haven—it's a barometer for uncertainty.' Central Banks Rewriting the Playbook Goldman Sachs now forecasts gold to reach $3,700 by year-end, with JPMorgan projecting $4,000 per ounce by Q2 2026. However, Citigroup has warned that weakening retail demand could weigh on prices beyond 2026. Barrett emphasised that while institutional conviction is strong, investors must balance opportunity with caution—particularly in the face of diverging monetary cycles and fragile geopolitical backdrops. As gold transitions from a 'one-way bull market' to a more volatile repositioning phase, Barrett reaffirmed EBC Financial Group's role in guiding investors through complexity. 'We remain committed to helping our clients build resilient, forward-looking portfolios. That means understanding when to act, and when to step back,' he said. ### About EBC Financial Group Founded in London's esteemed financial district, EBC Financial Group (EBC) is a global brand known for its expertise in financial brokerage and asset management. Through its regulated entities operating across major financial jurisdictions—including the UK, Australia, the Cayman Islands, Mauritius, and others—EBC enables retail, professional, and institutional investors to access a wide range of global markets and trading opportunities, including currencies, commodities, shares, and indices. Recognised with multiple awards, EBC is committed to upholding ethical standards and is licensed and regulated within the respective jurisdictions. EBC Financial Group (UK) Limited is regulated by the UK's Financial Conduct Authority (FCA); EBC Financial Group (Cayman) Limited is regulated by the Cayman Islands Monetary Authority (CIMA); EBC Financial Group (Australia) Pty Ltd, and EBC Asset Management Pty Ltd are regulated by Australia's Securities and Investments Commission (ASIC); EBC Financial (MU) Ltd is authorised and regulated by the Financial Services Commission Mauritius (FSC). At the core of EBC are a team of industry veterans with over 40 years of experience in major financial institutions. Having navigated key economic cycles from the Plaza Accord and 2015 Swiss franc crisis to the market upheavals of the COVID-19 pandemic. We foster a culture where integrity, respect, and client asset security are paramount, ensuring that every investor relationship is handled with the utmost seriousness it deserves. As the Official Foreign Exchange Partner of FC Barcelona, EBC provides specialised services across Asia, LATAM, the Middle East, Africa, and Oceania. Through its partnership with United to Beat Malaria, the company contributes to global health initiatives. EBC also supports the 'What Economists Really Do' public engagement series by Oxford University's Department of Economics, helping to demystify economics and its application to major societal challenges, fostering greater public understanding and dialogue. Michelle Siow EBC Financial Group + +60 163376040 email us here Visit us on social media: LinkedIn Instagram Facebook YouTube X Other Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
The Sun
4 days ago
- Business
- The Sun
Indonesia Cements Status as China's Top ASEAN Partner with Historic Currency Pact – EBC Financial Group Insights
JAKARTA, INDONESIA - Media OutReach Newswire - 5 June 2025 - As one of China's largest ASEAN trading partners, with bilateral commerce reaching USD147.80 billion in 2024 (6.1% YoY growth), Indonesia has solidified its economic ties with China. During Chinese Premier Li Qiang's state visit ahead of the ASEAN-GCC-China Summit, the two nations signed four new MoUs—most critically, an upgraded Local Currency Settlement (LCS) pact between Bank Indonesia (BI) and the People's Bank of China (PBOC). EBC Financial Group (EBC), a leading brokerage firm, examines how this agreement redefines Indonesia's economic resilience. Sectoral Wins: The Foundation for Deeper Ties The accords support Indonesia's LCS framework across key sectors. Trade and tourism will benefit from streamlined visa policies, targeting 2 million Chinese visitors in 2025. A USD5 billion commitment for twin industrial parks (Fujian-Batang SEZ) will create over 100,000 jobs. Soft power initiatives, like joint TB vaccine research and media collaboration, strengthen people-to-people ties. The LCS Breakthrough: Financial Sovereignty in Action The BI-PBOC agreement enables Rupiah-Yuan use in capital accounts, offering three advantages: • Trade Shield: Bilateral trade (USD147.80B in 2024, +6.1% YoY) avoids costly USD conversions for exports like palm oil and nickel. • Rate Cut Buffer: BI gains flexibility with 5.3% of reserves in yuan, easing policy without destabilising the Rupiah. • BRICS Leverage: Access to New Development Bank funding supports President Prabowo's USD20B infrastructure agenda, reducing dollar reliance. 'This isn't just about cutting transaction fees—it's a recalibration of Indonesia's financial DNA,' says David Barrett, CEO of EBC Financial Group (UK) Ltd. 'By enabling Yuan-backed trade and investment flows, BI is building a hedge against Fed policy shocks.' ASEAN's New Template: Unity Amid Global Realignments China-ASEAN trade hit USD330B (Jan-Apr 2025, +9.2% YoY), with Indonesia leading regional integration. The upgraded CAFTA 3.0 and ASEAN-GCC-China Summit highlight diversified economic partnerships. As Barrett notes, 'Indonesia is crafting a blueprint for monetary diversification. The Local Currency Settlement (LCS) deal illustrates how mid-sized economies can reduce overreliance on a single dominant currency, balancing regional cohesion with global standards.'
Zawya
4 days ago
- Business
- Zawya
Indonesia Cements Status as China's Top ASEAN Partner with Historic Currency Pact – EBC Financial Group Insights
With bilateral trade projected to hit USD160B in 2025, Indonesia's Yuan-Rupiah pact with China for de-dollarisation and reshapes ASEAN's financial future. JAKARTA, INDONESIA - Media OutReach Newswire - 5 June 2025 - As one of China's largest ASEAN trading partners, with bilateral commerce reaching USD147.80 billion in 2024 (6.1% YoY growth), Indonesia has solidified its economic ties with China. During Chinese Premier Li Qiang's state visit ahead of the ASEAN-GCC-China Summit, the two nations signed four new MoUs—most critically, an upgraded Local Currency Settlement (LCS) pact between Bank Indonesia (BI) and the People's Bank of China (PBOC). EBC Financial Group (EBC), a leading brokerage firm, examines how this agreement redefines Indonesia's economic resilience. Sectoral Wins: The Foundation for Deeper Ties The accords support Indonesia's LCS framework across key sectors. Trade and tourism will benefit from streamlined visa policies, targeting 2 million Chinese visitors in 2025. A USD5 billion commitment for twin industrial parks (Fujian-Batang SEZ) will create over 100,000 jobs. Soft power initiatives, like joint TB vaccine research and media collaboration, strengthen people-to-people ties. The LCS Breakthrough: Financial Sovereignty in Action The BI-PBOC agreement enables Rupiah-Yuan use in capital accounts, offering three advantages: Trade Shield: Bilateral trade (USD147.80B in 2024, +6.1% YoY) avoids costly USD conversions for exports like palm oil and nickel. Rate Cut Buffer: BI gains flexibility with 5.3% of reserves in yuan, easing policy without destabilising the Rupiah. BRICS Leverage: Access to New Development Bank funding supports President Prabowo's USD20B infrastructure agenda, reducing dollar reliance. "This isn't just about cutting transaction fees—it's a recalibration of Indonesia's financial DNA," says David Barrett, CEO of EBC Financial Group (UK) Ltd. "By enabling Yuan-backed trade and investment flows, BI is building a hedge against Fed policy shocks." ASEAN's New Template: Unity Amid Global Realignments China-ASEAN trade hit USD330B (Jan-Apr 2025, +9.2% YoY), with Indonesia leading regional integration. The upgraded CAFTA 3.0 and ASEAN-GCC-China Summit highlight diversified economic partnerships. As Barrett notes, "Indonesia is crafting a blueprint for monetary diversification. The Local Currency Settlement (LCS) deal illustrates how mid-sized economies can reduce overreliance on a single dominant currency, balancing regional cohesion with global standards." Hashtag: #EBCFinancialGroup #BRICS The issuer is solely responsible for the content of this announcement. EBC Financial Group
Malay Mail
4 days ago
- Business
- Malay Mail
Indonesia Cements Status as China's Top ASEAN Partner with Historic Currency Pact – EBC Financial Group Insights
With bilateral trade projected to hit USD160B in 2025, Indonesia's Yuan-Rupiah pact with China for de-dollarisation and reshapes ASEAN's financial future. Trade Shield : Bilateral trade (USD147.80B in 2024, +6.1% YoY) avoids costly USD conversions for exports like palm oil and nickel. : Bilateral trade (USD147.80B in 2024, +6.1% YoY) avoids costly USD conversions for exports like palm oil and nickel. Rate Cut Buffer : BI gains flexibility with 5.3% of reserves in yuan, easing policy without destabilising the Rupiah. : BI gains flexibility with 5.3% of reserves in yuan, easing policy without destabilising the Rupiah. BRICS Leverage: Access to New Development Bank funding supports President Prabowo's USD20B infrastructure agenda, reducing dollar reliance. JAKARTA, INDONESIA - Media OutReach Newswire - 5 June 2025 - As one of China's largest ASEAN trading partners, with bilateral commerce reaching USD147.80 billion in 2024 (6.1% YoY growth), Indonesia has solidified its economic ties with China. During Chinese Premier Li Qiang's state visit ahead of the ASEAN-GCC-China Summit, the two nations signed four new MoUs—most critically, an upgraded Local Currency Settlement (LCS) pact between Bank Indonesia (BI) and the People's Bank of China (PBOC). EBC Financial Group (EBC), a leading brokerage firm, examines how this agreement redefines Indonesia's economic accords support Indonesia's LCS framework across key sectors. Trade and tourism will benefit from streamlined visa policies, targeting 2 million Chinese visitors in 2025. A USD5 billion commitment for twin industrial parks (Fujian-Batang SEZ) will create over 100,000 jobs. Soft power initiatives, like joint TB vaccine research and media collaboration, strengthen people-to-people BI-PBOC agreement enables Rupiah-Yuan use in capital accounts, offering three advantages:"This isn't just about cutting transaction fees—it's a recalibration of Indonesia's financial DNA," says David Barrett, CEO of EBC Financial Group (UK) Ltd. "By enabling Yuan-backed trade and investment flows, BI is building a hedge against Fed policy shocks."China-ASEAN trade hit USD330B (Jan-Apr 2025, +9.2% YoY), with Indonesia leading regional integration. The upgraded CAFTA 3.0 and ASEAN-GCC-China Summit highlight diversified economic partnerships. As Barrett notes, "Indonesia is crafting a blueprint for monetary diversification. The Local Currency Settlement (LCS) deal illustrates how mid-sized economies can reduce overreliance on a single dominant currency, balancing regional cohesion with global standards."Hashtag: #EBCFinancialGroup #BRICS The issuer is solely responsible for the content of this announcement.
Associated Press
23-05-2025
- Business
- Associated Press
Bank Indonesia's Rate Cut Strategy: Navigating Growth, Stability, and BRICS Realities - EBC Financial Group Analyses
EBC Financial Group unpacks BI's 25 bps cut to 5.50%—weighing fiscal stimulus against rupiah risks and the geopolitical opportunities of BRICS membership JAKARTA, INDONESIA, May 23, 2025 / / -- Bank Indonesia (BI) has lowered its benchmark interest rate by 25 basis points to 5.50%, marking its second cut of the year. This signals a strategic pivot toward supporting economic growth amid global trade tensions and domestic fiscal ambitions, while navigating the delicate interplay of political priorities and market confidence. EBC Financial Group (EBC), a leading brokerage firm, examines how this decision reshapes the economic outlook in Indonesia and what it reveals about the country's development path. A Strategic Tightrope: Stimulus vs. Stability The rate cut comes in response to a challenging macroeconomic backdrop: Q1 2025 GDP growth slowed to 4.87%, the weakest pace in three years, and global trade uncertainty looms with new U.S. tariffs. BI's decision highlights three strategic considerations: • Inflation Dynamics: April's headline inflation remained subdued at 1.95%, within BI's target range. However, core inflation at 2.5% and the volatility of food prices suggest underlying pressures on household spending . • Currency Dynamics: The rupiah has rebounded 3% from April's historic lows, yet analysts project pressure as US tariffs loom and fiscal spending accelerates. • Capital Market: Along with the rate cut. BI relaxed foreign ownership by raising foreign bank capital limits, from 30% to 35%, which signals a commitment to attracting investment while managing volatility The BRICS Factor: Opportunity or Constraint? Indonesia's BRICS membership forces Bank Indonesia (BI) to navigate a trilemma: balancing domestic growth via rate cuts, rupiah stability, and newfound geopolitical risks tied to the bloc. As the newest group member now representing 28% of global GDP and 45% of the world's population, Indonesia gains access to the New Development Bank's (NDB) low-cost infrastructure financing, potentially easing fiscal pressures and reducing dollar dependency (Source: BRICS). However, this also exposes BI's policy to several tensions: • Geopolitical Balancing: While BRICS offers alternative trade partnerships, such as $150 billion in annual trade with bloc members, the U.S. has signalled scrutiny of BRICS-aligned economies. BI's rate cuts risk amplifying rupiah volatility if tariffs target Indonesian exports such as nickel and palm oil. • Monetary Flexibility: Collaboration within BRICS could accelerate local currency transactions, mitigating exchange-rate risks, but BI rate cuts could clash with this agenda. Lower rates may discourage foreign investors seeking higher yields, straining the rupiah if dollar outflows accelerate. This is monetary policy as high-stakes economic statesmanship,' observes David Barrett, CEO of EBC Financial Group (UK) Ltd. 'BI isn't just setting rates, it's also navigating a dual transformation: balancing domestic political priorities with global market confidence while walking the BRICS tightrope. Rate cuts may fuel Indonesia President, Prabowo Subianto growth ambitions, but they also test whether BRICS can deliver tangible trade gains or just geopolitical baggage.' Barrett adds, 'Financial markets are watching this high wire act closely, the rupiah's resilience will hinge on BI's ability to convert BRICS' alternative financing into real economic buffers. For traders, this creates layered opportunities - from currency plays to sector-specific bets - but ordinary Indonesians will feel the impacts through everything from loan rates to import prices.' What's Ahead for Indonesia? This rate cut underscores Indonesia's strategic pivot toward sustaining growth while managing stability, where it acts as a blueprint other emerging economies may study as they confront similar global headwinds. The success of this approach will depend on BI's ability to maintain investor confidence amid fiscal expansion and geopolitical shifts. Global markets will likely view Indonesia's policy mix as a litmus test for emerging-market resilience in an era of economic divergence. To explore EBC's Indonesia market analysis and macroeconomic trend, visit ### About EBC Financial Group Founded in London's esteemed financial district, EBC Financial Group (EBC) is renowned for its expertise in financial brokerage and asset management. With offices in key financial hubs—including London, Sydney, Hong Kong, Singapore, the Cayman Islands, Bangkok, Limassol, and emerging markets in Latin America, Asia, and Africa—EBC enables retail, professional, and institutional investors to access a wide range of global markets and trading opportunities, including currencies, commodities, shares, and indices. Recognised with multiple awards, EBC is committed to upholding ethical standards and these subsidiaries are licensed and regulated within their respective jurisdictions. EBC Financial Group (UK) Limited is regulated by the UK's Financial Conduct Authority (FCA); EBC Financial Group (Cayman) Limited is regulated by the Cayman Islands Monetary Authority (CIMA); EBC Financial Group (Australia) Pty Ltd, and EBC Asset Management Pty Ltd are regulated by Australia's Securities and Investments Commission (ASIC); EBC Financial (MU) Ltd is authorised and regulated by the Financial Services Commission Mauritius (FSC). At the core of EBC is a team of industry veterans with over 40 years of experience in major financial institutions. Having navigated key economic cycles from the Plaza Accord and 2015 Swiss franc crisis to the market upheavals of the COVID-19 pandemic. We foster a culture where integrity, respect, and client asset security are paramount, ensuring that every investor relationship is handled with the utmost seriousness it deserves. As the Official Foreign Exchange Partner of FC Barcelona, EBC provides specialised services across Asia, LATAM, the Middle East, Africa, and Oceania. Through its partnership with the UN Foundation and United to Beat Malaria, the company contributes to global health initiatives. EBC also supports the 'What Economists Really Do' public engagement series by Oxford University's Department of Economics, helping to demystify economics and its application to major societal challenges, fostering greater public understanding and dialogue. Michelle Siow EBC Financial Group +60 16-337 6040 email us here Visit us on social media: LinkedIn Instagram Facebook YouTube X Other Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
