Technical analyst Robert Colby, CMT, has singled out health care as a strong performer among US equities, saying the sector has outstanding medium- and long-term prospects and noting its price remains above 50- and 200-day moving averages. The chart reading for utilities shows similar good health, Colby says.
Several cryptocurrency exchanges have joined the Virtual Commodity Association, which could become a self-regulatory organization. Commodity Futures Trading Commission member Brian Quintenz says he welcomes creation of an SRO for the industry, "given the absence of federal oversight jurisdiction in the cryptomarket."
A Bundesbank report says that the German economy is stable but that slower growth is expected in the second half of this year, after 0.4% growth in the first quarter and 0.5% growth in Q2. Fewer industrial orders and more operational difficulties as automakers change test procedures are among reasons.
Fund managers have warned a no-deal Brexit would mean high-risk European bank debt issued under English law would no longer comply with the EU's minimum requirement for own funds and eligible liabilities.
The leveraged-loan market is worth close to $1.4 trillion, ahead of the high-yield bond market's $1.3 trillion, says Mark Zandi, chief economist at Moody's Analytics. The leveraged-loan market has become similar to the subprime-mortgage market at the beginning of the financial crisis, Zandi says.
A lack of grandfathering ahead of introduction next year of the EU Securitisation Regulation has dampened bank investors' appetite for long-dated asset-backed securities. Some investors are concerned a lack of liquidity will make offloading the securities difficult.
London faces five key challenges as it strives to remain a premier financial hub after Brexit, Silla Brush and Alexander Weber write. EU insistence on regulatory equivalence, rather than mutual recognition; stringent requirements on the structure of EU offices of UK entities; and the location of clearinghouses for euro-denominated derivatives are among unresolved issues.
President Donald Trump says he has low expectations of trade negotiations this week between the US and China. He says China has "done too well for too long" in the existing trade environment, and he has no short-term time frame for ending the dispute.
Bank of England Chief Economist Andy Haldane has called for retraining of people as artificial intelligence renders many jobs obsolete. AI is set to create an industrial revolution, Haldane says, and equipping people with new skills is essential to avert mass unemployment, rising inequality and social tensions.
A leverage-ratio standard adopted by the Basel Committee on Banking Supervision overstates counterparty default risk for derivatives-trading banks, according to a study by the Commodity Futures Trading Commission. The standard is "not just on average conservative, but much more conservative for cross-currency portfolios," the study concludes.
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