Financial Markets
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7/25/2016

International Monetary Fund chief Christine Lagarde lost her attempt to avoid trial in a case involving actions in her previous post as France's finance minister. But she is expected to stay in her job and avoid time behind bars if convicted.

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Christine Lagarde, IMF
7/25/2016

The risks that the Italian banking system faces are overestimated, says Bank of Italy Governor Ignazio Visco, estimating that the value of non-performing loans at banks facing a capital shortfall totals just 1% of GDP. While stress test results are not yet in, Visco says several options exist before a public backstop will be necessary.

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Bloomberg
7/25/2016

A global version of a tax on financial transactions got support from German Finance Minister Wolfgang Schaeuble at the Group of 20 nations' summit. The tax proposal makes sense on a worldwide scale and in the context of a crackdown on tax avoidance, he said.

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Wolfgang Schaeuble
7/25/2016

Responding to speculation about a sudden strengthening of the yuan late last week, Zhou Xiaochuan, head of the People's Bank of China, said the central bank is working to maintain the stability of the yuan measured against a basket of currencies. "We are sticking with a managed floating exchange rate system, and that's a policy stance we have been reiterating for years," he said.

7/25/2016

Buy-side firms would be mistaken to dismiss blockchain technology, writes Sid Kalla from CoinDesk. "The obvious win for the buy-side is the possible efficiency gains that could be achieved by using a blockchain-based solution at the back-office for custody and settlement," Kalla writes.

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CoinDesk (U.K.)
7/25/2016

The Group of 20 nations' finance ministers concluded their meeting in China with a pledge to use monetary, fiscal and structural policy tools to boost growth. The world's economy remains weak, the ministers said, so leaders should prepare for fallout from the UK's vote to withdraw from the EU and not wait for the likely financial and economic effects to be felt.

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finance ministers, G-20, EU
7/25/2016

Unless the UK swiftly negotiates a deal to pull out of the EU that guarantees its access to the single European market, the value of global mergers and acquisition is likely to plummet over the next five years by as much as $1.6 trillion, according to a report from the Baker & McKenzie law firm. Unlike the global collapse of the M&A market after the failure of Lehman Brothers, the consequences of the UK's withdrawal from the EU will be mostly felt in Britain and Europe, the report said.

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EU, Lehman Brothers, Brexit, law firm
7/25/2016

A record inflow of $4.9 billion in funds that specialize in emerging-market bonds was realized the week that ended July 20, according to Bank of America. It was the second record in three weeks, with inflows credited to a vigorous search for higher returns amid sub-zero yields in developed markets.

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Bloomberg
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Bank of America
7/25/2016

With Brexit in the background, major central banks are the focus this week, with the Federal Reserve and Bank of Japan due to make key policy decisions and results of banking stress tests due in Europe. The Fed is widely expected to keep rates steady, while speculation in Japan cuts both ways as policymakers are expected to lower their inflation forecast.

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Reuters
7/25/2016

China Investment said it posted a 2.96% loss on the offshore portion of its $810 billion portfolio last year. It was the sovereign-wealth fund's first loss on investments outside China since 2011.

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China Investment Corp.