If growth in China and other emerging markets continues at its current pace, the International Monetary Fund could have its headquarters in Beijing, not Washington, D.C., within a decade, said Managing Director Christine Lagarde. She said the IMF's bylaws require its home office to be in the member country with the largest economy.
After three years on the sidelines, Greece is headed back to the international bond market with the sale of five-year bonds aimed primarily at testing the market. S&P Global Ratings affirmed Greece's B- rating and raised its outlook to positive from stable.
The European Central Bank has authorised execution of summer carry trades, sending dealers in search of suitable assets such as Italian bonds, which offer attractive carry and roll-down rates. The development is seen as part of a strategy to minimise market turbulence ahead of key ECB meetings in the fall where tapering its long-running stimulus programme is expected to be discussed.
Investments following socially responsible or sustainable strategies have reached $23 trillion, with the strategy especially attracting proponents in Japan, China, New Zealand and Australia. While growth is continuing, the pace of growth has slowed over the past two years.
Barclays is the first investment bank to offer an estimate of the research fees it will charge asset managers when Europe's revised Markets in Financial Instruments Directive makes unbundled disclosure a requirement. According to reports, the bank is proposing a three-tier tariff of annual charges ranging from £30,000 to £350,000.
Deutsche Bank is the latest institution to signal a plan to move substantial parts of its business to Frankfurt, Germany, from London in anticipation of a possible hard Brexit, a source said. While the plan has not been officially announced, staff have been told the vast majority of trades are set to be relocated to Frankfurt between September 2018 and March 2019, involving a sum of around $350 billion, a fifth of the bank's balance sheet, the source said.
The UK House of Lords financial affairs committee is looking for a way to preserve access to the European market for British banks and insurers after the UK withdraws from the EU. Several banks and insurance companies have announced plans to open facilities on the Continent to continue to do business there after Brexit.
Strategists at Bank of America have warned that the European Central Bank's expected tapering of its stimulus scheme could be complicated by the many European nonfinancial companies with weak profitability that depend on the ECB's efforts and are highly vulnerable to interest-rate rises. The strategists estimate that as many as 9% of European companies fall under this category.
A recently published review of US bank regulation could result in US companies' capital costs falling, leading to a competitive disadvantage for European institutions, Huw van Steenis writes.
China's Politburo, the ruling Communist Party's highest-ranking decision-making body, focused on a commitment to fighting systemic financial risks, according to a statement released after a meeting headed by President Xi Jinping. The government will also improve co-ordination of financial regulation and stabilise the property market, the statement said.
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