UK government minister Jeremy Hunt has criticised businesses that say they might move out of the UK if the government fails to resolve trade aspects of Brexit negotiations, calling those statements "threats". Airbus and BMW are among major companies concerned about a lack of progress in negotiations, and Edwin Morgan of the Institute of Directors says "firms think very carefully before sticking their heads above the parapet, so they should be listened to by politicians, not dismissed".
Shares in German automakers BMW, Daimler, Porsche and Volkswagen fell Friday before regaining ground after US President Donald Trump tweeted a 20% import tax on European vehicles was possible. His remark met opposition from Republican lawmakers and prompted an assurance from US Commerce Secretary Wilbur Ross no decision had been made.
Commodity Futures Trading Commission member Brian Quintenz says he sees no rush to match European rules on high-frequency trading. Some concepts under Europe's revised Markets in Financial Instruments Directive "are ones which Chairman [J. Christopher] Giancarlo and I have specifically rejected, such as allowing for a regulator to access a firm's source code without a subpoena," Quintenz says.
Agustin Carstens, general manager of the Bank for International Settlements, has warned retaliatory tariffs might have an adverse economic impact that hampers global growth and that spreads to financial markets. Carstens predicts that investors will grow increasingly cautious and that markets will become more volatile and sensitive to interest-rate changes as central banks end accommodative monetary policy.
Novo Banco is on a roadshow to issue as much as €400 million in subordinated debt, largely by swapping senior bonds, as it tries to bolster capital ratios and to adjust its funding structure. The Portuguese bank has struggled since creation out of the failed Banco Espirito Santo in 2014.
Europe's revised Markets in Financial Instruments Directive has prompted a decline in research quality, fund managers say. Many analysts have left the industry.
Most of the world's biggest banks aren't adequately accounting for total risk exposure across subsidiaries, geographical boundaries and business lines, according to a report from the Basel Committee on Banking Supervision. Among 30 global systemically important banks, only three have fully implemented 2013 guidelines for aggregating risk data and for making the information available to regulators, the report says.
The People's Bank of China plans to reduce banks' reserve requirements by one-half percentage point on 5 July, the day before US tariffs take effect. The decision marks a move away from tight credit controls, amid evidence the economy is slowing.
Commerzbank is working with a content-automation firm to produce basic analyst notes via artificial intelligence. Other investment banks say they are working on similar projects.
David Lloyd, managing director of the UK and the Nordics at Alibaba, has laid out objectives as the company grows in Europe but says "we're not going toe-to-toe with local e-commerce players". Alibaba, known as the "Amazon of the East", aims to connect European entities and brands with Chinese consumers and to offer payment services for Chinese tourists in Europe.
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