The European Central Bank is capable of supplying liquidity to a bank being wound down if certain conditions are fulfilled, says ECB board member Benoit Coeure. The ECB likely would need approval from eurozone finance ministers before deploying the Eurosystem Resolution Liquidity lending facility.
European stocks declined Monday, after UBS gave disappointing results and after the 10-year US Treasury yield hit the highest level since 2014. UBS stock tumbled 3.8%, while Nestle, Unilever and Anheuser-Busch InBev shares declined 0.5% to 1.6%.
Technical analyst Clive Maund singles out oil and gas producer Molori Energy as likely to benefit from an expected increase in oil prices. Long- and near-term charts show the stock near a support level that should provide a boost, and a low price makes this is a good moment to consider it, Maund writes.
Technical analyst Bruce Kamich, CMT, asserts adverse conditions that have held down Coca-Cola the past two months show little sign of abating and could worsen this quarter. The 50-day moving average slipped below the 200-day counterpart in early March, and the daily on-balance-volume line is weakening, which suggests aggressive selling, Kamich writes.
Former US Commodity Futures Trading Commission Chairman Gary Gensler said the Securities and Exchange Commission probably wouldn't classify bitcoin, bitcoin cash and Litecoin as securities, but cryptocurrencies Ether and Ripple may qualify. Gensler said if a cryptocurrency is named a security by the SEC, it will probably become a court case.
The Bank of England is launching a modified version of the Sterling Overnight Index Average today as an alternative to the London Interbank Offered Rate. Sonia is based on real transactions, rather than estimates, and swaps traders have used the original version.
The British pound has declined to a five-week low against the US dollar, and traders cite remarks from Bank of England Governor Mark Carney that an expected interest-rate increase might be deferred. Brexit uncertainties and disappointing economic data have increased downward pressure.
The London Metal Exchange has proposed ending free use for the first six months by algorithmic traders. CEO Matthew Chamberlain says traders have taken unfair advantage of the offer.
EU authorities should be involved in supervision and resolution of third-country central counterparties "that may pose specific concerns from an EU financial-stability perspective", says European Central Bank board member Benoit Coeure.
Regulators should take a risk-based approach that prioritises banks that "display significant cultural drivers of misconduct", the Financial Stability Board says in a paper. Regulators should be alert to "decision-making dominated by the business lines", which suggests executives have lost control, the paper says.
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