The financial industry has voiced concerns that market disorder at the height of the coronavirus pandemic could return, according to minutes from a June meeting of the Bank of England Money Markets Committee. "It was noted that this, in conjunction with Brexit and geopolitical risks, could make year-end challenging," the minutes state.
Irish Finance Minister Paschal Donohoe has been elected president of the Eurogroup, which influences many financial decisions in the eurozone. The position gives him a central role in developing an EU fund to help member economies recover from the coronavirus pandemic.
Retail investors now comprise roughly one-fifth of all participants in stock market trading and up to one-quarter on the busiest trading days, according to market maker Citadel Securities. Structural market changes such as zero commissions are cited as a factor.
The coronavirus pandemic could cause loan losses worth $2.1 trillion for banks worldwide this year, according to S&P Global. The company expects the losses to swallow about 75% of pre-provision earnings.
Barclays is currently leading the field in UK equity offerings, rising from fourth place last year, ranking ahead of leading Wall Street rivals such as Goldman Sachs and JPMorgan Chase, according to Bloomberg data.
Deutsche Bank has achieved a 40% rise in Q2 trading revenues at its credit trading arm after struggling in the first quarter. The bank is still expected to post an overall loss for Q2 because of the coronavirus crisis.
The UK chancellor's decision to base this week's stimulus measures on real-time data such as retail activity raises questions on whether it should replace more traditional data sources.
The UK Financial Conduct Authority's interim chief executive Christopher Woolard says the agency will consult on a possible new regime for open-ended property funds. While praising the cooperation of fund managers when it was decided to suspend daily trades in the funds amid the coronavirus crisis, Woolard commented that "this crisis, like the aftermath of the Brexit referendum, shows the difficulty for these funds of maintaining a promise of daily liquidity to investors when their assets are inherently illiquid."
German authorities are investigating allegations that executives at insolvent payment processor Wirecard have been involved in money laundering. This adds to several German and US inquiries into the firm's activities.
Global banks are in a precarious position as they try to navigate compliance with both China's new security law imposed on Hong Kong, and sanctions against China under deliberation in the US. Banks face a serious dilemma if the US calls on them to cooperate in sanctioning Chinese entities, which the new security law expressly prohibits.
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