Federal Reserve Governor Lael Brainard said the Fed is lagging behind other central banks in upping scrutiny of climate risk considerations in bank supervision. "The US has been behind and we need to catch up ... The nature of climate change is such that ... it could pose significant risks both in terms of sudden changes in asset prices but also change the financial system generally," Brainard said.
The use of cannabis in states where recreational use is legal rose only among certain demographic subgroups within the first few years of legalization, said Columbia University epidemiology professor Silvia Martins, co-author of a study published in JAMA Network Open. In addition, "there were virtually no increases in cannabis use frequency and cannabis use disorder," Martins said.
The center-left Social Democrats headed by finance minister Olaf Scholz won a narrow victory in Germany's election as support for the center-right parties that backed outgoing chancellor Angela Merkel plummeted to its lowest ever level. Scholz, who is expected to try to form a coalition with the Greens and liberal Free Democrats, said he has the mandate he needs to form Germany's next government.
Sovereign debt traders are responding to the increasing odds that the US and UK will tighten monetary policy as yields hit their highest level since June. The yield on the 10-year US Treasury bond briefly broke above 1.5% on Monday, later declining to 1.49%.
Financial market participants are growing concerned about the progress of efforts by the Commodity Futures Trading Commission to replace US dollar Libor with the Secured Overnight Financing Rate. "The initiative has substantially moved price discovery in the interdealer (D2D) market from Libor to SOFR, but it remains to be seen how quickly this translates in the dealer-to-client (D2C) side," said Michael Riddle, CEO at Eris Innovations.
The European Securities and Markets Authority is inviting industry comments on a paper in which it proposes a series of regulatory changes to simplify best execution reports required by the revised Markets in Financial Instruments Directive. EMSA's recommendations must be enacted as EU legislation before they can take effect.
The European parliament's environment and economic affairs committees on Monday rejected three attempts by fellow lawmakers to prevent the EU from enacting new rules for sustainable investing. Opponents of the new rules argued either that nuclear and gas power should be designated as green or that the proposals conflicted with existing EU law.
The China Banking and Insurance Regulatory Commission said it wants to encourage mainland-based insurers to sell catastrophe bonds in Hong Kong. The regulator said the approach would help insurers cope with the risks from natural disasters like floods, typhoons and earthquakes.
Underwriters have launched 42 initial public offerings in Europe this quarter bringing in a decade-high $8.5 billion of proceeds, but not a single firm has listed via a special-purpose acquisition company. In 2020 and early in 2021 interest in SPACs jumped in the US, but demand in Europe remained muted and now they are disappearing from the US market as well.
A surge in the 10-year Treasury yield has had a spillover effect on some highly-valued tech stocks. The rise triggered a sector rotation from growth stocks to value stocks and the tech-heavy Nasdaq 100 gave up as much as 1.5% of its value.