Rising stock prices and dropping bond yields suggest further tightening of monetary policy is in order, Federal Reserve Bank of New York President William Dudley said. Treasury and mortgage-backed bond markets have been unaffected by news of the Fed's plan to shrink its balance sheet, evidence that the central bank's communications have "been effective in fostering an orderly adjustment in expectations," he said.
The European Central Bank won't buy Greek bonds as part of its quantitative-easing scheme until Greece's international creditors spell out what debt relief they plan to give, said ECB President Mario Draghi. Without that information, ECB experts can't prepare a "fully fledged" analysis of Greece's debt, he said.
British Prime Minister Theresa May should form a proposal for protecting EU citizens' rights after Brexit that has "more ambition, clarity and guarantees," says Michel Barnier, the EU's chief Brexit negotiator. EU officials are particularly concerned that May rejects the view that a European court should resolve any conflict regarding EU citizens' rights.
Major investors are pressuring hedge funds to incorporate sustainable investment strategies. "When investors like us are looking at a hedge fund's investment, we look at it from a perspective of what we are doing in responsible investing more broadly," said Marta Jankovic of APG Asset Management.
Recent polls of participants at Bloomberg's BuySideWeek 2017 show say China is seen as a hot spot when it comes to investment risk, followed by the Middle East and the US. Participants said they were most likely to put money to work in the US, the eurozone and the UK.
Global regulators working on capital rules for the insurance industry have asked insurance companies to provide information on how internal risk-capital models are used. The request is being made in anticipation of a disagreement between European and US regulators over how risk models should be used when setting capital requirements.
IBM is working with seven of Europe's largest banks to launch a blockchain project that will be used for international trade involving small and medium-size enterprises. "We are convinced that blockchain will have a huge impact on banks in the future and that trade finance is one of the biggest areas of potential for the technology," said Rudi Peeters of KBC Group, one of the banks involved in the project.
Markit's iTraxx Europe Senior Financials Index has fallen to its lowest level since 2011, indicating growing confidence in Europe's banks, after a recent bailout of two Italian lenders.
France's Societe Generale has combined its electronic and high-touch trading teams to provide customers with a wider, more flexible range of trading options. They can choose high-touch only or electronic-only execution, or a tailored combination, with the newly integrated service offering access to more than 125 global equity and multiasset-listed derivatives exchanges.
German lawmakers say a recent bailout of two Italian banks shielded senior bondholders at taxpayers' expense. The lawmakers are calling for tighter regulation of EU state-aid policies.
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