There is a lack of clarity over China's bail-in framework, which is hindering major banks' efforts to meet total loss absorbing capacity requirements. "Banks in China are well aware of the long-term pressure of the TLAC requirement, but it is very hard for them to budget for this kind of capital issuance until they have more clarity over what is required in a Chinese context," says Qiang Liao, a Standard & Poor's analyst.
Chinese banks have been pouring money into entrusted investments for years, but recent regulatory guidelines have prompted lenders to pull back. The situation has caused losses for Chinese stocks and bonds, and created upheaval in the country's money-management industry.
Analysts at Man AHL, BlackRock, UBS and Research Affiliates are working toward what has been described as the Holy Grail of asset management: a working factor-timing model. "Looking at individual factor behaviours ... we see decent evidence that well-constructed factors can potentially demonstrate trending behaviour," says Matthew Sargaison, Man AHL's chief investment officer.
Executives who are putting together Saudi Aramco's initial public offering have informed supervisors the company is worth probably at least $500 billion less than the $2 trillion a government official has stated, sources say. Company and government officials reportedly are discussing postponing or shrinking the IPO.
PPG Industries, a US paint company, has increased its bid for Akzo Nobel, which has rejected two previous offers, by 8% to $28.8 billion to pressure its competitor to begin takeover discussions. After the revised offer was made public, Akzo shares surged as much as 6%.
Asian-Pacific stock markets advanced Tuesday after results of the French presidential election boosted global equity markets. Japan's Nikkei 225 gained 1.1%; Hong Kong's Hang Seng Index added 1.3%; Australia's S&P/ASX 200 rose 0.3%; China's Shanghai Composite moved up 0.2%; South Korea's Kospi gained 1.1%; and India's Sensex was up 1%.
For decades, the middle class has become a smaller proportion of the US population, while the trend has been the opposite in parts of Western Europe, according to a study by the Pew Research Center. From 1991 to 2010, the proportion of people in middle-income households declined to 59% from 62% in the US, while it rose to 67% from 61% in the UK and to 74% from 72% in France.
The $10.3 billion Nord Stream 2 pipeline, which will carry Russian natural gas through the Baltic Sea to Europe, has the support of five EU companies, which will pay for half of the project's costs. The pipeline is expected to be finished by the end of 2019.