US tariffs recently imposed on goods from China will cost American households $106 billion annually, according to a report from the Federal Reserve Bank of New York. These tariffs likely will reduce overall tariff revenue collected by the US and will "create large economic distortions," the report said.
Deutsche Bank CEO Christian Sewing has pledged to pare the bank's struggling investment arm as shares hit a record low. He says management is preparing "tough cutbacks" in investment banking, although he has not gone into specifics.
The European Central Bank is losing confidence that the eurozone economy will recover during the second half of this year, according to minutes from an April meeting. "There was now somewhat less confidence in the baseline scenario [for growth] and that the range of other possible outcomes had widened," the minutes show.
Japan's Nomura has announced 14 promotions to managing director on its European team. The move comes weeks after the bank cut 100 positions in London focused on Europe, the Middle East and Africa as part of a $1 billion cost reduction.
The low quality of data disclosed by firms under Europe's revised Markets in Financial Instruments Directive means best execution remains theoretical, instead of providing actual value to investors, according to a report by Liquidnet.
European Securities and Markets Authority official Verena Ross has hailed the success of the revised Markets in Financial Instruments Directive, but the financial-services sector says it has seen little benefit.
The European Securities and Markets Authority, the European Banking Authority and the European Insurance and Occupational Pensions Authority have jointly issued a consultation on unifying reporting of intragroup transactions and risk concentration to prevent arbitrage. The draft standards fall under Solvency II but account for derivatives transactions and exchange-related information.
The Bank of England has unveiled guidance for financial institutions to assign oversight of risk arising from climate change to a senior manager.
China's sale of $20 billion in US Treasurys suggests China could use its position as the biggest holder of US debt as leverage in trade negotiations.
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