Financial Markets
Top stories summarized by our editors
7/25/2017

If growth in China and other emerging markets continues at its current pace, the International Monetary Fund could have its headquarters in Beijing, not Washington, D.C., within a decade, said Managing Director Christine Lagarde. She said the IMF's bylaws require its home office to be in the member country with the largest economy.

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Reuters
7/25/2017

The decision by the Trump administration to delay and eventually repeal the International Entrepreneur Rule reveals a lack of understanding of just how important immigrants are to America's entrepreneurship, NVCA's Devin Miller writes. "With so many other countries around the world becoming attractive locations for entrepreneurs to move to and build companies, the U.S. needs policies that attract job-creating entrepreneurs and allow them to stay here to build their companies that create new jobs for Americans," he writes.

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NVCA Blog
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NVCA, Trump
7/25/2017

After three years on the sidelines, Greece is headed back to the international bond market with the sale of five-year bonds aimed primarily at testing the market. S&P Global Ratings affirmed Greece's B- rating and raised its outlook to positive from stable.

7/25/2017

The European Central Bank has authorised execution of summer carry trades, sending dealers in search of suitable assets such as Italian bonds, which offer attractive carry and roll-down rates. The development is seen as part of a strategy to minimise market turbulence ahead of key ECB meetings in the fall where tapering its long-running stimulus programme is expected to be discussed.

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Bloomberg
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ECB, European Central Bank
7/25/2017

Investments following socially responsible or sustainable strategies have reached $23 trillion, with the strategy especially attracting proponents in Japan, China, New Zealand and Australia. While growth is continuing, the pace of growth has slowed over the past two years.

7/25/2017

Barclays is the first investment bank to offer an estimate of the research fees it will charge asset managers when Europe's revised Markets in Financial Instruments Directive makes unbundled disclosure a requirement. According to reports, the bank is proposing a three-tier tariff of annual charges ranging from £30,000 to £350,000.

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The Trade (UK)
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Barclays, investment bank
7/25/2017

Deutsche Bank is the latest institution to signal a plan to move substantial parts of its business to Frankfurt, Germany, from London in anticipation of a possible hard Brexit, a source said. While the plan has not been officially announced, staff have been told the vast majority of trades are set to be relocated to Frankfurt between September 2018 and March 2019, involving a sum of around $350 billion, a fifth of the bank's balance sheet, the source said.

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Bloomberg
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Deutsche Bank
7/25/2017

The UK House of Lords financial affairs committee is looking for a way to preserve access to the European market for British banks and insurers after the UK withdraws from the EU. Several banks and insurance companies have announced plans to open facilities on the Continent to continue to do business there after Brexit.

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EU, EU, insurance companies
7/25/2017

Strategists at Bank of America have warned that the European Central Bank's expected tapering of its stimulus scheme could be complicated by the many European nonfinancial companies with weak profitability that depend on the ECB's efforts and are highly vulnerable to interest-rate rises. The strategists estimate that as many as 9% of European companies fall under this category.

7/25/2017

A recently published review of US bank regulation could result in US companies' capital costs falling, leading to a competitive disadvantage for European institutions, Huw van Steenis writes.

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Huw Van Steenis