The Federal Reserve has conducted two open market operations this week to bring down interest rates, which had surged as high as 10%, and plans to intervene again today in the overnight funding market. Market participants say rates spiked in response to a shortage of cash, rather than a deterioration of credit quality.
Any Brexit deal from the UK must be proposed in writing by 30 September, says Antti Rinne, prime minister of Finland, which is holding the rotating EU presidency. "If not by then, then it's over," he says.
Eurozone member states should take whatever fiscal policy steps they can to support the European Central Bank's monetary policy moves to boost the bloc's flagging economy, says ECB policymaker Pablo Hernandez De Cos. "It is imperative that national and European authorities carry out structural reforms," he said.
Many firms are not prepared to meet the April 2020 deadline for the EU's Security Financing Transactions Regulation, according to a survey by Cappitech and Kaizen Reporting. Only 37% of the securities lending industry has started or completed its preparation and 56% of banks are only in the pre-implementation planning stages, with 11.5% yet to begin SFTR preparations.
The London Stock Exchange has tapped JPMorgan as a "defense adviser" to help fight a possible hostile takeover attempt by Hong Kong Exchanges and Clearing after rejecting HKEx's £31.6 acquisition bid, sources say. HKEx has until Oct. 9 to make a formal bid and is currently wooing LSE shareholders to support a deal.
A large number of sell-side firms are using International Securities Identification Numbers for financial instrument reporting requirements under the European Market Infrastructure Regulation without becoming Systematic Internalisers, according to the Derivatives Service Bureau.
The European Central Bank is considering investigating Deutsche Bank's purchases of its own subordinated bonds, sources say. Deutsche Bank allegedly did not obtain approval for the purchases until 2017, and the bank could face a fine if the ECB finds wrongdoing.
Despite efforts by both the US and China to de-escalate their trade war, a solution to the dispute could be many years off, writes economist Andy Xie. The growing technological rivalry between the two nations is unlikely to abate and what he calls "full-scale military competition" could soon happen.
Deutsche Boerse and Google Cloud have partnered to expand the bank's ability to "develop and operate complex workflows" and formulate cloud-based security and compliance strategies. Google will also help Deutsche Boerse's data-driven business model using analytics, automation, machine learning and artificial intelligence, as well as blockchain technologies.
The German government has approved a blockchain strategy that it says will promote innovation but protect the economy from the risks posed by digital currency upstarts such as Facebook's Libra stablecoin. "A core element of state sovereignty is the issuing of a currency, we will not leave this task to private companies," said finance minister Olaf Scholz
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