Business growth has slumped to the lowest level since 2014 in the eurozone, an IHS Markit survey shows. GDP growth of 0.2% is expected this quarter, while manufacturing output is falling at the fastest pace in six years, IHS Markit economist Chris Williamson says.
Banca Carige could be forced to make a €700 million cash call if a BlackRock-brokered rescue is executed, sources say. The amount is higher than the €630 million the Italian bank had said it would need to make up a shortfall, after reporting a loss of €273 million for 2018.
City of London workers have faced a slump as the terms and date for Brexit drag on, decreasing trading turnover, earnings from banking fees and hedge fund launches during the first quarter. The slump will continue until investors see positive political action, Global Alliance Partners economic adviser Alastair Winter says.
Long-only buy-side firms are increasing use and knowledge of algorithmic trading as they adapt to the trading landscape under Europe's revised Markets in Financial Instruments Directive and to clients' needs, a survey shows. The survey also finds that firms that use at least five algo providers have decreased about 10% and that firms that use one provider have increased about 10%.
A rule proposed by US regulators would let custody banks exclude central bank deposits from determination of the supplementary leverage ratio.
China hopes to draw more investment in stock and bond markets as it opens up access to foreign investors, the State Administration of Foreign Exchange says. "China will become an important destination of diversified asset allocation for global investors in the future, under the policy of further opening up and facilitation," spokeswoman Wang Chunying says.
US banks saw a slump in prime-brokerage divisions during the first quarter, partly because of lower derivatives revenue, Bank of America analysts say. Conditions improved late last month, but investment-banking revenue had an aggregate decline of 11% in Q1 compared with Q1 of 2018.
A delayed cross-currency swaps clearing service from Eurex Clearing reportedly is scheduled for introduction by the end of June. Dealers are concerned about liquidity and an increase in posted margin.
Commerzbank disagrees with Deutsche Bank on the amount of clients and revenue they could lose in a merger, sources say, marking one of several obstacles to a deal.
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