Activity has picked up in mergers and acquisitions, with transactions passing $1 trillion worldwide during the third quarter, according to Refinitiv. However, activity fell 21% year over year during the first nine months of 2020 to $2.2 trillion.
The chairs of Societe Generale and Banco Santander have criticised the European Central Bank's request for banks to pause dividends. They say it makes the banking sector less attractive to investors, reduces competitiveness with US rivals and discourages lending.
Some Federal Reserve officials are concerned the central bank has not stated how it would cope with asset bubbles and excessive risk caused by its low-interest-rate policy. Some worry that by not addressing the issue, the Fed leaves room for doubt that it will maintain low rates after the coronavirus pandemic has passed.
Banks including Citigroup, Goldman Sachs and JPMorgan Chase are anticipating the prospect of an unclear outcome from the US presidential election, which could disrupt markets for weeks. Several banks are running simulations to test their response to spikes in liquidity and credit risk.
The biggest technical outage since 1999 has halted trading for all of today on the Tokyo Stock Exchange. The exchange has attributed the interruption to a system error and has not confirmed whether trading would resume Friday.
In a ruling that could inflame trade tensions between the EU and the US, the World Trade Organisation has authorised retaliatory tariffs from the EU on $4 billion in exports from the US, sources say, a result of a long-running dispute over subsidies for Boeing. It is unclear whether the EU will act immediately or wait until after the US presidential election.
Mairead McGuinness, nominee for EU financial-services commissioner, says the bloc is preparing for the UK to have no access rights to European markets beyond those granted until year-end. "As tensions in the overall EU-UK negotiations have increased, we continue to prepare for all possible scenarios, including a no further equivalences scenario," McGuinness says in a written answer to lawmakers.
Work on an EU consolidated tape was put on hold because of the coronavirus pandemic, but the issue is starting to receive renewed attention. "We may not be back yet to where we were earlier this year, but from a data-standardisation perspective, the work has progressed," says Graham Dick, CEO of Aquis Exchange Europe.
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