Financial Markets
Top stories summarized by our editors
11/21/2017

German Chancellor Angela Merkel said she prefers to hold snap elections to break a political standoff rather than ruling as a minority government. President Frank-Walter Steinmeier will first talk with leaders of several parties to find out if there is a way a coalition government could be put together.

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Angela Merkel
11/21/2017

Federal Reserve Chair Janet Yellen said she will leave the central bank's board of governors as soon as her presumed successor, Jerome Powell, is sworn in. Her departure will give President Donald Trump a fourth vacancy to fill on the seven-member board.

11/21/2017

European Central Bank President Mario Draghi said a European deposit insurance scheme cannot be countenanced until banks make significant progress in reducing nonperforming loans. However, he reiterated that EDIS remains a key ECB goal.

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Reuters
11/21/2017

The EU voted to let Paris be the new home of the European Banking Authority after Brexit. Eight cities made bids for the EBA, with the French capital ultimately winning out over Dublin.

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European Banking Authority, EU
11/21/2017

A number of banks are reportedly developing synthetic securitisations to help counter the sharp rise in capital provisioning expected when the International Financial Reporting Standard 9 is enforced in January. Commentators warn that investors might be reluctant to engage with an unproven instrument and regulators might not view the strategy sympathetically.

11/21/2017

More than 20 banks are reported to have signed up to Eurex Clearing, Deutsche Boerse's interest-rate swaps scheme that offers profit-sharing and management participation to the most active users. The recently launched business aims to draw customers from London Stock Exchange Group's LCH, which dominates swaps clearing activity.

11/21/2017

European Central Bank President Mario Draghi says he expects wages to start rising across the eurozone as unemployment continues to fall. Wages have remained stagnant despite the bloc's strengthening economy, but Draghi says employment growth should start to reinvigorate compensation.

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Fox Business, Reuters
11/21/2017

The European Commission published lengthy and detailed recommendations aimed at building a stronger corporate-bond market across the EU. The proposals include keeping close watch on the effect of the revised Markets in Financial Instruments Directive's research rules.

11/21/2017

The European Banking Authority made public final guidelines for credit-risk modelling to be relied upon in determining banks' risk-weighted assets. The purpose of the guidelines is to build trust in financial institutions' internal models, the EBA said.

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European Banking Authority
11/21/2017

The People's Bank of China and the Ministry of Finance will support private investment in manufacturing through a national fundraising guarantee fund and an expansion of types of asset collateral available to private firms, the government said Monday. China is also encouraging private firms to invest in global infrastructure projects.

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Reuters