If you have teenage children who have earned income from a summer job or part-time position, consider setting up Roth individual retirement accounts for them and matching contributions to the accounts. Roth IRAs often make sense for younger savers, as they allow for many years of tax-free growth.
The Bank of England has been urged to clarify whether EU banks with branches in London will be able to continue trading in the UK post-Brexit without reapplying for a licence or setting up a subsidiary. An announcement from Deputy Governor Sam Woods is expected before year-end.
Questions about which brokerages and exchanges are authorised to run organised trading facilities and which contracts can be listed have yet to be answered, despite OTF establishment being a key requirement of Europe's revised Markets in Financial Instruments Directive.
The gap between German and US 10-year bond yields has neared the widest point since April ahead of meetings of the European Central Bank and the US Federal Reserve. Market watchers expect the meetings to highlight increasing divergence, with the Fed likely to increase interest rates and the ECB expected to hold rates.
Tax changes under consideration by the US Congress are discriminatory and could harm international trade and investment, the finance ministers of the five biggest European economies say in a letter to US Treasury Secretary Steven Mnuchin. An excise tax in the proposal would violate double-taxation treaties and would conflict with World Trade Organisation rules, the letter says.
Banks' appetite for lending to European leveraged loans is cooling, with participation in syndicates falling to less than 10% from as high as 25% since summer. Aggressive pricing and dealmaking reportedly are making conservative banks uncomfortable, but market participants say investors such as pension funds, insurers, sovereign-wealth funds and high-net-worth individuals are eagerly stepping in.
The Basel Committee on Banking Supervision's latest revisions to the Basel III capital framework have met doubts from bankers, who say the changes do not help them accurately reassess capital requirements and depend excessively on national regulators' calculations. The committee's impact study on the operational-risk framework suggests capital requirements will fall by 30% on average, but independent projections show a wide variety that depends on the bank, ranging from a decrease of 66% to an increase of 222%.
Trade officials from the EU, the US and Japan have agreed to oppose Chinese support for excess industrial capacity and other trade practices that distort the global economy, a source says. A joint statement is expected at a World Trade Organisation ministerial meeting in Argentina.
The Federal Reserve has confirmed it will launch three market benchmarks to replace the US dollar London Interbank Offered Rate. The Secured Overnight Financing Rate, the Triparty General Collateral Rate and the Broad General Collateral Rate will launch during the second quarter.
Most Asian-Pacific stock markets posted losses Tuesday, with traders unimpressed by a record high set by the Dow Jones industrial average. Japan's Nikkei 225 declined 0.3%; Hong Kong's Hang Seng Index lost 0.6%; Australia's S&P/ASX 200 rose 0.3%; China's Shanghai Composite dropped 1.2%; South Korea's Kospi gave up 0.4%; and India's Sensex was down 0.7%.