European Commission President Jean-Claude Juncker has told former EU commissioner Neelie Kroes to explain why she failed to declare that she was director of an offshore venture backed by the United Arab Emirates. Lawyers representing Kroes conceded that she should have disclosed her directorship in Mint Holdings but said she didn't because the company never became operational.
UK Prime Minister Theresa May has rebuffed Foreign Minister Boris Johnson's claim that Britain will start Brexit negotiations by early 2017. May has told ministers to avoid participating in a "running commentary" on the strategy or timing of negotiations.
Bank of England Governor Mark Carney has urged Germany to use its Group of 20 presidency in 2017 to advance the issuance of green bonds to help mitigate global climate change. "The G-20 -- whose members account for around 85% of global emissions -- has a unique responsibility," Carney said.
As regulations and weak profits drive business from traditional banks to financial intermediaries, Europe will need to adapt its policies to mitigate risks from the shadow-banking sector, European Central Bank President Mario Draghi said. Bank profitability is in large part being squeezed by competition caused by overcrowding in the banking sector, he noted.
Saks Fifth Avenue is raising the profile of its personal shopping service in an effort to make it available to a larger group of shoppers. The Fifth Avenue Club service has moved to a more visible spot in the retailer's New York City flagship, with rooms big enough for friends to shop together, and Saks plans to replicate the prototype at about 30 other stores.
Policymakers should explore inconsistencies in the way regulations treat bank investments, Treasury Secretary Jack Lew told the House Financial Services Committee. "Distinctions were made between different kinds of activities so that private equity is treated one way, merchant banking is treated another way," Lew said.
Federal Reserve Chair Janet Yellen is scheduled to testify Wednesday before the House Financial Services Committee on the central bank's supervision and regulation of financial markets, as required by the Dodd-Frank Act. The Fed's recommendation that Congress curb merchant banking and Wells Fargo's questionable business practices are likely to be discussed.
The Bank of England will revise its post-Brexit forecasts upward if the economy continues to show signs of strength, policymaker Kristin Forbes says. "I've worried a bit in our forecast that we control for many of the measures that simultaneously control for uncertainty, and then we put in uncertainty effects, so we're putting them in twice," she said.
The Bank of Japan's move to manage sovereign-bond yields will probably place a cap on interest rates and create demand for higher-paying corporate bonds, analysts say. Fixed-income investors are likely to focus on longer-maturity corporate bonds and may become more receptive to lower-rated debt, they say.
China's State Administration of Foreign Exchange said it will put a stop to fraudulent foreign investment deals created to hide the movement of capital out of China. Guo Song, director general of capital-account management, said the agency has uncovered several fake mergers and acquisitions that were actually transactions to hide outbound capital flows.
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