Financial Markets
Top stories summarized by our editors
2/20/2019

The list of companies planning to leave the UK is lengthening as Brexit approaches but no divorce agreement is in sight. The departure of Honda will eliminate 3,500 jobs, and the Netherlands says it has helped 42 companies relocate from the UK.

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Politico, CNN
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Dutch government, Honda
2/20/2019

More European Central Bank officials are laying the groundwork for intervention if the economy weakens further. The ECB is examining the situation and has tools at its disposal, including interest-rate policy, Vice President Luis de Guindos says.

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European Central Bank
2/20/2019

The Basel Committee on Banking Supervision's leverage ratio requiring a minimum 3% capital buffer has reduced swaps trading at firms with a larger capital over total exposure ratio, according to a European Central Bank study. "The leverage ratio imposed by Basel III may provide a constraint to the trading activity in the interest rate swaps market even if it has no direct material effect on the net over gross ratio," the study says.

2/20/2019

An auction of €7 billion in 30-year French debt has been five times oversubscribed as hopes mount of renewed market intervention by the European Central Bank. The ECB is expected to offer the banking sector a fresh wave of financing to boost the economy.

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Reuters
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European Central Bank
2/20/2019

Italy and the EU have started negotiations to extend the "GACS" state-guarantee scheme that helps banks offload bad loans, a source says. The scheme expires on 6 March.

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Reuters
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European Union
2/20/2019

A Bank of England working group on sterling risk-free reference rates will examine the use of compression auctions for transitioning Libor contracts to rates such as the Sterling Overnight Index Average. Some members support the proposed auction process, while others say infrastructure hurdles limiting participation are possible.

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Libor, BoE
2/20/2019

Environmentally friendly investing is no longer a rarity in China, Dao Ventures founder Tao Zhang says. The country's efforts to address environmental challenges have created opportunities for impact investors.

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Tao Zhang
2/20/2019

Eurex Clearing has added Bloomberg's US swap execution facility and UK multilateral trading facility to approved trade sources, letting clients directly submit executed swaps transactions through those facilities to Eurex. Bloomberg's Dutch MTF also will connect to Eurex Clearing as part of the deal.

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Bloomberg
2/20/2019

Japanese index provider Nikkei's request to be a third-country benchmark administrator in the EU is held up by Brexit uncertainty. This raises questions about the fate of other Asian benchmark administrators needing registration by a year-end deadline.

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Nikkei, EU, Brexit
2/20/2019

A pending agreement between National Stock Exchange of India and Singapore Exchange involving collaboration at Gujarat International Finance Tec-City has not kept investors from fleeing Nifty futures contracts at either exchange. Regulatory uncertainty in India is likely to keep foreign traders away from GIFT City.

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LiveMint (India)