The European Central Bank says economic growth and inflation are picking up across the eurozone, and projected inflation of 1.7% is close to the central bank's target, but the ECB has left stimulus unchanged. All economic trends are headed in the right direction, President Mario Draghi says, but "an ample degree of monetary stimulus remains necessary".
The fate of the Republican tax bill became uncertain when US Sen. Marco Rubio said he would not vote for the measure unless the child tax credit is increased, a provision that would increase the cost of the bill. Under congressional rules, the bill can't increase the deficit during the next 10 years by more than $1.5 trillion if Republicans are to pass it without Democratic votes.
The European Central Bank says certain classes of unsecured bank bonds can no longer be used as loan collateral, as it seeks to transfer banking risk to bond investors.
The Bank of England says a recent breakthrough in Brexit talks, in which negotiators agreed to move on to trade discussions, should bolster the UK economy, which has flagged since the Brexit referendum. Meanwhile, the BoE has kept its benchmark interest rate unchanged but has signalled a series of marginal increases in coming years.
A survey on how firms prioritise investment in compliance IT finds 47% of respondents think their firms are reactive, rather than proactive. "Firms that are failing to take a proactive approach to monitoring and managing compliance are taking a big risk," said Doug Morgan, CEO of Cordium, which commissioned the survey.
The Derivatives Service Bureau says exchange groups that operate numerous trading venues are not applying for as many International Securities Identification Numbers as expected. A number is required for regulatory reporting under Europe's revised Markets in Financial Instruments Directive.
The European Commission is considering relaxing capital rules for smaller investment firms. The proposal would exempt most EU investment firms from the Capital Requirements Regulation.
Two EU diplomats say economist Hans Vijlbrief of the Dutch Finance Ministry will be selected president of the Eurogroup Working Group, which manages gatherings of eurozone finance ministers.
The Financial Stability Board, the Basel Committee on Banking Supervision, the International Organisation of Securities Commissions and the Committee on Payments and Market Infrastructures have begun a survey on incentives to adopt central clearing of derivatives. Survey results will be used to evaluate changes implemented after the financial crisis.
Foreign direct investment in China increased 90.7% year over year in November, mainly because of spending by companies that had recently entered the Chinese market, according to the Ministry of Commerce. Meanwhile, 4,641 foreign companies started operating in China, up 161.5% compared with November 2016.
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