US Treasury Secretary Steven Mnuchin is considering going to China to try to resolve trade differences, saying he is "cautiously optimistic" the countries can reach agreement. The Chinese Commerce Ministry says it is aware of US intent to visit and welcomes talks on trade and economic issues.
Money manager Amundi has taken a long position on Spanish sovereign bonds because it expects strong economic growth, despite political upheaval. Victor de la Morena, Amundi's chief investment officer for Spain, says the economy has strengthened for five consecutive years and predicts growth of 2.6% in 2018 and 2.5% in 2019.
The European Central Bank might wait until July to unveil how bond buying will end so it can see whether the economy bounces back from a slow first quarter, sources say. Some Governing Council members reportedly think interest-rate guidance need not change at that time.
The European Central Bank has asked Deutsche Bank to explain a €28 billion erroneous transfer to Eurex Clearing, German newspaper Handelsblatt reports. The ECB reportedly also wants to know how the bank will prevent a repeat incident.
A lack of a post-Brexit equivalence deal could affect the quality of data needed for transparency calculations to comply with Europe's revised Markets in Financial Instruments Directive, says Conor Foley, global head of government relations at Norton Rose Fulbright. "As it stands, data for UK firms won't be included in MiFID II transparency calculations after 2020, so all will need to [be] recalculated and many will be dramatically affected," he says.
Asian companies are behind US peers in insurance coverage against cyberattacks, according to FM Global. Less than 20% of Asian companies have cyberinsurance, compared with 66% of US businesses, the insurer says.
Manipulation of the Cboe Volatility Index has been alleged, but European counterpart VSTOXX and French volatility index VCAC are protected from abuse, the Autorite des Marches Financiers says. "Since the VCAC is not an underlying of listed derivatives, a manipulation scheme on the VCAC index similar to the alleged VIX manipulation may thus be ruled out," according to a report from the French regulator.
People's Bank of China Governor Yi Gang says risk and leverage in the financial sector are under control, after years of what the International Monetary Fund has called a "dangerous and unsustainable" trend. China will continue "advocating cooperation and dialogue" regarding trade, Yi says.
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