The Federal Reserve is considering broader changes "in the not-too distant future" to ease bank stress tests, including making the annual test scenarios more consistent and coordinating results in time for shareholder-return efforts, said Randal Quarles, vice chairman of Supervision. Changing when the results are released would allow banks "to engage in more thoughtful capital planning," Quarles said.
Declining oil prices coupled with a dimming outlook for global growth caused the Dow Jones Industrial Average and S&P 500 to lose almost 1% of their value during Friday trading, while the Nasdaq Composite ended the day 1.7% down. Shares of material, industrial and tech companies -- including Caterpillar, Deere, Netflix and Facebook -- posted the biggest losses due to their exposure to China and vulnerability to trade tensions.
UK asset managers must face the growing challenge posed by rivals in Japan and China if the UK is to retain its competitive edge, opines industry specialist Tom Brown.
Ratings agency Scope warned that Germany's AAA credit rating could be jeopardized in the coming years as fears mount over the country's growing demographic imbalances. Analysts said mounting pension and health care costs linked to Germany's aging population could eventually hinder growth and push up debt levels.
The UK and Hong Kong are in talks to develop their trade links, a British minister visiting the territory said. A new collaboration would focus on financial technology and medicine, and could include a free-trade agreement
Hedge fund managers are bracing for a reckoning Thursday, the deadline for clients to state their intention to withdraw funds. October was the industry's worst month in seven years, leaving the HFRI Fund Weighted Composite Index down about 1.7% on the year so far and on track for the worst year since the collapse of Lehman Brothers a decade ago.
The European Securities and Markets Authority's proposed amendments to the European Market Infrastructure Regulation to help shift noncleared swaps from London to the European Union may be too narrow to overcome the hurdles of a post-Brexit mass swaps migration, experts say.
Critics of last week's China International Import Expo event in Shanghai, which saw Chinese companies and their foreign counterparts ink around $57.83 billion worth of deals, claim the event was staged and question how many of the deals will actually come to fruition. Duncan Innes-Ker, the Economist Intelligence Unit's Asia head, said what is needed is action to level the playing field for trade in China, not pledges to import more.
The trade dispute between the US and China has pitted sections of the US auto industry against each other as they battle over who is responsible for paying tariffs on Chinese parts. Carmakers rely on complex, long-term supply chains and are grappling with the sudden challenge of allocating tariff costs throughout the chain.
Panellists at a forum agreed that distributed ledger technology "will inevitably build silos" if providers don't ensure interoperable connectivity is a priority among infrastructures. "If we don't bake in interoperability from the beginning, we risk making the fragmentation worse than it currently is," said Lee Braine of Barclays.
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