Statements from Federal Reserve Chairman Jerome Powell and Federal Reserve Bank of St. Louis President James Bullard suggest a quarter-point interest-rate decrease will occur this month. Bullard has emphasized the move should be seen as recalibration, rather than the first in a series of cuts.
China will repeal limits on the amount of fund, securities and insurance companies that foreign investors can own in 2020, one year earlier than planned, according to the Financial Stability and Development Committee. China will also encourage foreigners to establish pension- and wealth-management companies, as well as currency brokerages, the committee says.
The European Commission is preparing to give Ireland billions of pounds in aid to help it ride out economic damage it will suffer if a no-deal Brexit occurs, a senior EU diplomat says. The bloc reportedly is ready to "spend whatever [is] necessary" to help Ireland if Brexit disrupts trade.
US equity indices keep breaking records, largely because of the performance of Amazon, Apple, Facebook and Microsoft. The companies make up 19% of the total return in 2019 for the S&P 500, according to S&P Dow Jones Indices.
US Ambassador to the EU Gordon Sondland says he hopes Ursula von der Leyen, incoming president of the European Commission, can restart US-EU trade talks. The US is prepared to impose additional tariffs on the EU if negotiations fail to produce results or if member states enact taxes on digital services, Sondland says.
BlackRock's CEO Larry Fink says the European Central Bank must embrace an "equity culture" and buy up stocks
in order to stimulate Europe's economy. "I don't see how if they do more easing, which means - deeper negative rates - I don't know how that transmission [works] in the economy," Fink said.
Banks and major corporates are discovering that transfer pricing for derivatives is becoming a big issue as they explore the internal functions that will be affected by the transition away from Libor, says European Venues and Intermediaries Association Chairman David Clark. "When you do the internal transfer pricing you have to cope with different tax regimes. So when you unwind internal transfer pricing you have a tax problem," he said.
The European Commission intends to withdraw equivalence access to parts of the bloc's financial market for some countries, including Australia, Brazil, Singapore and Argentina, for not matching the EU's regulations. The draft proposal due to be published this week is considered a warning to Britain to stay aligned with EU rules to maintain direct access to the bloc after Brexit.
The European Securities and Markets Authority has issued two sets of guidelines for money market fund managers on stress testing and how to report stress test results by 2020 to national regulators. ESMA chairman Steven Maijoor said because a money market funds disruption could effect financial stability the stress testing is needed to assess and mitigate against potential risks.
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