To address a shortage of ventilators in New York hospitals, Gov. Andrew Cuomo approved a method that allows one ventilator to be used to support two patients. NewYork-Presbyterian Hospital has started using the little-studied practice this week, developing protocols for the method and rapidly scaling it up, while sharing their strategies with other hospitals.
Moody's Investors Service has changed the outlook to negative from stable for banking systems in Belgium, Denmark, France, Italy, the Netherlands and Spain based on the possibility the coronavirus pandemic will trigger a recession. "The economic and market upheaval caused by the pandemic will depress business activity and increase banks' asset risk, which will require additional loan loss provisions," the credit rating agency says.
An EU summit on financing the fight against the coronavirus pandemic turned into an argument when Italy and Spain pressed for a "coronabond" to cover the cost, a proposal opposed by Germany and the Netherlands. When it became clear no compromise was possible, European Council President Charles Michel sent the issue to be studied by eurozone finance ministers, who will return with a formal proposal in two weeks.
Some European banks are finding that their credit risk models are not working under the conditions prompted by the coronavirus outbreak and are repurposing their stress-testing techniques to determine the economic impact based on data from past crises.
Citigroup, Morgan Stanley and HSBC are among the leading global banks that have told staff they will pause plans to trim jobs amid the ongoing coronavirus crisis.
Open-ended fund assets rose 3.1% to reach a global total of €52.7 trillion during Q4 2019, figures from the European Fund and Asset Management Association show. "Net sales of equity funds rebounded strongly during the fourth quarter of 2019, as investor confidence strengthened at that time against the background of improved economic conditions," said EFAMA senior director for economics and research Bernard Delbecque.
The UK's Financial Conduct Authority must do more to lighten the regulatory burden on London firms, according to a poll of City employees. Toscafund Asset Management chief economist Savvas Savouri urged the FCA to "Cut regulatory red tape and cut it fast."
Some firms that participate in the over-the-counter derivatives market are taking steps to avoid coming under initial margin rules that take effect in September. One popular strategy is shifting to cleared swaps and listed futures.
Early indications suggest the Federal Reserve's decision to purchase corporate debt and bond exchange-traded funds is starting to restore stability in the market.
Meredith Coffey, co-chair of the the Federal Reserve-sponsored Alternative Reference Rates Committee's working group on business loans, says the current conditions due to the coronavirus outbreak may cause some market participants to rethink their use of the amendment approach as a fallback option for loans.
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