Despite some uncertainty brought on by upcoming national elections, the prospects for the French economy are getting better, said Francois Villeroy de Galhau, the Bank of France's governor. But France also needs to move faster with pension and labour market reforms and the European Central Bank should continue to use monetary policy to stimulate Europe's economy, he said at a conference in Frankfurt, Germany.
ASIFMA CEO Mark Austen said that China is ready to move ahead strongly in capital market development. Austen said the country's progress in this area is unprecedented and its positive attitude to attracting foreign investors and willingness to make necessary reforms, along with a general trend away from low interest rates globally, could help it "to learn from the experience of developed markets, avoid mistakes and leapfrog for their successes".
Marcus Schenck, chief financial officer at Deutsche Bank, was appointed deputy CEO this month, with several industry insiders commenting that he is on course to become the bank's eventual leader. Schenck, who has a reputation for effective negotiation and clear views on the bank's future direction, will move to full-time oversight of the investment bank once a CFO is appointed.
Market participants and authorities in Europe are concerned that the US might decide against implementing the Basel Committee on Banking Supervision's Fundamental Review of the Trading Book rules. The concerns have prompted discussion about delaying implementation of the rules in Europe.
The Supreme Court in the UK ruled that the Financial Conduct Authority didn't identify Achilles Macris, a former executive at JPMorgan Chase, in an enforcement notice related to the 2012 "London whale" incident. Several similar cases against the UK regulator are expected to be abandoned in light of this ruling, lawyers said.
Restrictions on the repatriation of proceeds from investments in China are a big concern for offshore investors, said ASIFMA CEO Mark Austen. "Foreign investors do not want to be trapped inside China due to repatriation limits," Austen said.
The pace of corporate-bond defaults in China stands a good chance of picking up, said James McCormack, Fitch Ratings' global head of sovereign ratings. The economy is slowing and the level of corporate debt is already unsustainable, he said.
China's riskiest corporate borrowers have sold a record $6.1 billion of dollar bonds so far this year, according to Bloomberg data, effectively causing yield-hungry global investors to take on increased credit risks. Rates on Chinese dollar high-yield notes have dropped 81 basis points since the beginning of the year, with some observers commenting that this could prompt turbulence.
Conditions are right for China to make a bold move in global economics by bidding to acquire London Stock Exchange via Hong Kong Exchanges and Clearing, writes Peter Guy. LSE is vulnerable as Brexit talks begin and Guy writes that this also is an opportunity for China to create a powerful bilateral trade agreement with the UK.
The Association of Southeast Asian Nations has worked for almost a half-century to create an Asian-Pacific free trade area, but events outside the region have raised doubt about the effort. US withdrawal from the Trans-Pacific Partnership is a setback, and a Group of 20 statement that does not argue against protectionism has shocked Asian leaders.
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