Wall Street firms cut 2,000 jobs last month. James Brown, a labor market analyst at the New York state Department of Labor, said it was the largest employee reduction since summer interns were released.
The New York City Sergeants Benevolent Association and the administration of Mayor Bill de Blasio have reached a seven-year labor contract. The city has now made deals with four of the five police unions.
Laurence Fink, chief executive officer at BlackRock, said he expects the divergence between active and passive fund flows to continue. "The trend is not going to be arrested anytime soon," Fink said. "The low-interest-rate environment is making investors look more at risk budgeting, and as they do, the use of [exchange-traded funds] and passive funds is going to continue to grow."
New York Gov. Andrew Cuomo said his proposal for development of America's biggest convention center at the Aqueduct racetrack in Queens won't cost New York state a thing, even if it fails. The developer, the Malaysian gambling company Genting, will cover all expenses and won't get any tax-free bonds to help finance the project, he said.
Japan's main banking organization followed the lead of the country's Financial Services Agency and central bank in questioning possible consequences of the U.S. Volcker rule. "We'll express our similar concerns as public comments" to U.S. officials, said Katsunori Nagayasu, chairman of the Japanese Bankers Association. Stanford University professor Darrell Duffie recently released a study on the impact the proposed Volcker rule would have on market-making.
The market for bonds backed by consumer loans appeared until recently to be unaffected by turmoil prompted by Europe's debt woes, according to The Wall Street Journal. The situation has changed, with issuance of asset-backed securities grinding to a halt and risk premiums widening. Investor confidence has taken a hit, affecting the $700 billion market.