Funds are allocating more money toward assets that benefit from the effects of rising inflation as prices around the world continue to climb amid tighter labour markets and supply chain bottlenecks. In October, 38% of clients surveyed by Bank of America said they were overweight assets that gain from price hikes and higher bond yields.
Long-serving head of Germany's central bank and European Central Bank committee member Jens Weidmann is to leave his roles at the end of this year. "I have come to the conclusion that more than 10 years is a good measure of time to turn over a new leaf -- for the Bundesbank, but also for me personally," Weidmann said in a letter to staff.
The European Central Bank is taking an increasingly hard line to push banks to increase their staffing and capital levels for post-Brexit operations in the EU, sources said. A predicted exodus of jobs from London to the continent after the UK left the bloc has so far failed to materialise, but industry sources said the ECB is becoming increasingly firm in demanding lenders move resources to the continent to manage their operations there.
Indebted property developer China Evergande Group has reportedly been granted an extension on a defaulted bond a day after it announced it had failed to secure a deal to sell a majority stake of its property services unit for $2.6 billion. The reprieve was agreed after the firm's chairman Hui Ka Yan pledged personal assets against the debt, sources said.
Goldman Sachs has announced it is working with American Express to improve the cloud-based payments technology in its growing transaction banking business. The Wall Street stalwart is looking to expand beyond its investment banking roots with a move into payment processing for corporate clients and others.
UniCredit has asked around 50 of its London-based traders to consider relocating to Milan and may issue a similar request to some of its Munich staffers, according to sources. The proposed move is part of CEO Andrea Orcel's plans to streamline its operations and decision-making, and have less reliance on London as a hub in the wake of Brexit.
European Central Bank board member Frank Elderson has said banks in the eurozone should be legally obliged to meet targets they set to mitigate their exposure to climate change. "Only by introducing mandatory transition plans can banks' lofty intentions for the next 30 years be turned into concrete actions now," Elderson told a conference.
Bank of England governor Andrew Bailey has been appointed by the Financial Stability Board as chair of its Standing Committee on Supervisory and Regulatory Cooperation, replacing Himino Ryozo. The move is effective immediately and Bailey will serve a two-year term, which can be renewed once.
The Bank of England has begun its first stress test to examine the resilience of UK-registered central counterparties. The exercise will be run throughout 2021 and 2022 and will look into CCPs' ability to handle system-wide credit and liquidity risk events.
Cboe Global Markets has agreed to acquire Chicago-based Eris Digital Holdings' spot market, regulated futures exchange and clearinghouse, re-naming the derivatives exchange for digital assets as Cboe Digital. Cboe says it will form a digital advisory committee made up of retail brokers, trading firms and banks to help develop the platform.
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