The UK will abandon its demand that EU courts cease to have any authority in the UK after Brexit, according to a position paper to be released today by Prime Minister Theresa May's government. The paper says that some foreign judgements against businesses and individuals will be enforced in the UK to ensure that cross-border laws are applied in a "fair and sensible way", a government source said.
Fitch Ratings upgraded the Greek government's credit rating to B- from CCC, citing progress on its economic growth and lower political risk. The announcement prompted the 10-year government bond yield to drop 5 basis points in early trading Monday.
Tracking benchmarks closely has become essential to investment performance. Third-party providers have answered the call with products that deliver pricing of over-the-counter securities, but investors increasingly want to understand the quality of this pricing data.
The European Central Bank's widely anticipated move toward tapering its bond-buying scheme looks likely to have a considerable effect on emerging economies, which hold record levels of euro debt, and could hamper those economies' recent rally. However, the effect is unlikely to equal the "taper tantrum" that wiped half a trillion dollars off the MSCI Emerging Markets Index when the Federal Reserve proposed a similar move in 2013.
Lord Nicholas Macpherson, former permanent secretary to the UK Treasury, issued an unusually forceful condemnation of quantitative easing and bond-buying schemes, likening their effect to that of heroin. He tweeted that they bring diminishing returns and increasingly negative side effects, and called for them to be ended.
Corporate defaults in China were low through the first half of 2017, allaying some investor fears. Economists say economic growth helps companies avoid default.
A price forecast consensus among banks and investors is that after a resistance around $4,500 to $4,800 and a correction, bitcoin will possibly continue to rally to $6,000 by year-end and hit $7,500 in 2018. "There's a lot of interest from traders and mainstream finance on the rise of all these new cryptocurrencies, but when they first get exposure into the space, they'll go into bitcoin," says Pantera Capital Management Vice President Paul Veradittakit.
China Construction Bank is conducting a roadshow to raise at least $15 billion for a fund that would invest in the government's Belt and Road initiative, sources say. Chinese President Xi Jinping has said $124 billion would become available to construct a modern Silk Road.
Most Asian-Pacific stock markets advanced Tuesday as investors limited exposure to risk while they awaited word about interest rates at a Federal Reserve symposium. Japan's Nikkei 225 slid 0.1%; Hong Kong's Hang Seng Index gained 0.9%; Australia's S&P/ASX 200 moved up 0.4%; China's Shanghai Composite edged up 0.1%; South Korea's Kospi added 0.4%; and India's Sensex was up 0.1%.