German banks are suffering from overcapacity in the market and inadequate business models and management, not low interest rates, European Central Bank President Mario Draghi said after a meeting with German lawmakers. The ECB's easy-money policies have helped avert a depression in Europe, decreasing unemployment and increasing German exports as the eurozone economy recovers, Draghi said.
Protectionism and other efforts to restrict trade threaten to prolong slow global growth and inequality, International Monetary Fund Managing Director Christine Lagarde said. "If we turn our backs on trade now, we would be choking off a key driver of growth at a point when the global economy is still in need of every good piece of news it can get," she said.
The Commodity Futures Trading Commission hopes to complete position-limit rules by year's end so US and EU rules can take effect simultaneously, said CFTC Chairman Timothy Massad. The CFTC also plans to draft contingency measures if the EU fails to implement margin rules for noncleared derivatives by the beginning of March, Massad said, noting, however, that he is confident the EU will put the rules in place by the deadline.
Global oil prices shot up initially by more than 5% amid news that OPEC's 14 members agreed to make modest reductions in total crude oil production this year. They agreed to work out the details of a production cut of as much as 700,000 barrels a day when OPEC meets in Vienna at the end of November, an official said.
French regulators will provide English-speaking officials and accept legal documents in English from companies with an EU registration seeking to relocate to France, according to a joint statement by the Financial Markets Regulator and French Prudential Supervision and Resolution Authority. The offer is part of an initiative to lure British financial technology and asset management companies looking to preserve passporting rights in Europe to France after the Brexit vote.
A survey of financial professionals before the Brexit vote ranks London, New York, Hong Kong, Singapore and Tokyo as the top five financial centres, though next year's ranking is expected to be different. The Global Financial Centres Index shows that eight of 15 cities expected to rise in significance are Asian-Pacific, with Shanghai in the lead.
Two-thirds of financial advisers surveyed by an industry group said they expect to lose some or all of their low- to middle-income clients because of the Labor Department's fiduciary rule. For the same reason, 16% said they will stop offering retirement-related products or services.
Japan's retail sales posted a 2.1% year-over-year drop in August, deepening the 0.2% downturn in July, the Ministry of Economy, Trade and Industry said. It was the sixth consecutive month of falling sales as modest wage gains limit consumer spending.
The proportion of people in the US who have defaulted on student loans within three years of graduation has declined modestly, although the total number remains high, the Department of Education said in a report. For the 2013 graduating class, the default rate was 11.3%, slightly less than the 11.8% for 2012 and well below the 14.7% for 2010, which was the peak year.
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