Bank of England Governor Mark Carney acknowledged the drop in the value of sterling as "fairly substantial" when speaking with lawmakers Tuesday. He said the central bank will take the decline into account when setting interest rates.
The euro will continue to be vulnerable without a full banking union, said European Central Bank President Mario Draghi, who added that record-low interest rates should not be considered a new normal. While low interest rates coupled with liquidity can lead to financial stability risks, Draghi says he has no present concerns.
The British government fully understands that financial-services firms need highly skilled workers and it won't block filling those jobs through immigration, said UK Chancellor of the Exchequer Philip Hammond. He also noted concerns regarding the loss of EU passporting.
Morgan Stanley CEO James Gorman has questioned the value of quarterly reporting for US companies. "Why wouldn't that power and information in an organization go into what's best for clients, rather than having to report again in another nine weeks?" he said.
October has seen the fastest pace for increased positions on rising crude prices, even before OPEC meets next month, according to the Commodity Futures Trading Commission and Intercontinental Exchange. "While much of the oil market paints a picture of a commodity struggling under the weight of a huge surplus, statistical balances suggest that conditions have improved markedly," said Barclays commodity analyst Kevin Norrish.
Investors are starting to take an interest in the initial public offering market again, with much of the gains going to technology businesses. The average first-day earnings for tech IPOs in 2016 have increased to 32%, the highest since 2000.
The Basel Committee on Banking Supervision's heightened capital requirements have modestly expanded US bank lending, a study by the Federal Reserve Bank of New York found. The finding contradicts banks' assertion that the requirements have forced them to reduce lending.
Europe's revised Markets in Financial Instruments Directive will challenge the foreign exchange community, JWG Group research head Dan Simpson says. MiFID II "will effect huge policy change, seismic new technology builds, substantial data challenges and significant commercial decisions," Simpson says.
The European Central Bank is seeking a gradual implementation of high-frequency trading regulations, suggesting that stringent rules could hurt the financial markets. "More constraining measures ... seem, in light of our study, not yet necessary and should be used with care as their negative impact on market liquidity, efficiency and resilience might be detrimental to financial stability and market resilience," the ECB wrote in a bulletin Tuesday.
Vijay Angelo and James Davies, former senior managers at GMEX Group, are launching the London Derivatives Exchange on Wednesday. LDX is the rebranded GMEX Exchange, which was spun off from GMEX Group and trades euro-denominated constant-maturity futures.
- Page 1