Financial Markets
Top stories summarized by our editors
1/16/2018

Pan Gongsheng, vice governor of the People's Bank of China, has raised concerns about trading of digital currencies, according to an internal memo. "The financial work conference clearly called for limiting 'innovations' that deviate from the need of the real economy and escape regulation," Pan said in reference to a meeting of regulators and policymakers.

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Reuters
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Pan Gongsheng, Bank of China, PBOC
1/16/2018

An overhaul of the eurozone financial sector must make progress by early 2019, French Finance Minister Bruno Le Maire says. First-phase priorities include a banking union, a capital-market union and fiscal convergence; establishment of a crisis-stabilisation process and a joint budget will come later.

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Reuters
1/16/2018

European Central Bank Governing Council member Philip Lane calls London "the wholesale headquarters of the EU" and warns of adverse effects on EU financial stability without a Brexit transition period.

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EU, EU, European Central Bank, ECB
1/16/2018

The euro, driven by optimism about the eurozone economy, hit a three-year high of $1.2296 Monday, then softened to $1.2263 this morning. Currency traders were encouraged by a statement from a European Central Bank official that the ECB might fully end bond buying after September if economic and inflation trends hold.

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Reuters
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European Central Bank, ECB
1/16/2018

Unbundling of research fees under Europe's revised Markets in Financial Instruments Directive will force brokers to reduce staff and will decrease analyst coverage, experts say. A drop in coverage might bolster specialist brokers who target smaller firms.

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Reuters
1/16/2018

The Greek Parliament has approved a 1,500-page bill for additional austerity, including acceleration of sales of foreclosed properties and revision of labour laws to make calling strikes more difficult for unions. The government hopes no further major measures are necessary before the country's bailout expires in August.

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Kathimerini (Greece)
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Greek Parliament
1/16/2018

Disclosure requirements under Europe's revised Markets in Financial Instruments Directive encourage use of exchange-traded funds and let market participants easily compare investment products, Gaurav Sharma writes. "This improved cost transparency, as well as a ban on commission paid to financial advisers, will push down industry fees, intensify the move to passive and put industry profits under pressure," according to a report from Moody's Investors Service.

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Forbes
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Gaurav Sharma, Moody
1/16/2018

European Central Bank staff has reviewed nearly 1,700 regulatory moves from 1995 to 2014 to identify the most effective methods of deflating credit bubbles. Findings suggest loan limits and larger capital buffers control lending better than adjustment of banks' risk measurements, though researchers stress the findings are tentative.

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European Central Bank, ECB
1/16/2018

Some banks have begun to use climate change models to gauge loan portfolios, but experts warn against moving quickly to mandate climate disclosures. "There are still many unknowns and challenges associated with modelling and stress-testing climate change risk," said Rahel Wendelspiess of UBS.

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climate change, UBS
1/16/2018

The EU Benchmarks Regulation is not catching on among Asian asset managers, many of whom don't understand how it affects their business, according to an industry group.