US Treasury Secretary Steven Mnuchin is considering going to China to try to resolve trade differences, saying he is "cautiously optimistic" the countries can reach agreement. The Chinese Commerce Ministry says it is aware of US intent to visit and welcomes talks on trade and economic issues.
Money manager Amundi has taken a long position on Spanish sovereign bonds because it expects strong economic growth, despite political upheaval. Victor de la Morena, Amundi's chief investment officer for Spain, says the economy has strengthened for five consecutive years and predicts growth of 2.6% in 2018 and 2.5% in 2019.
Tyson Foods' venture capital unit is investing in alternative meat companies such as Beyond Meat and Memphis Meats, despite the fact that Tyson's core business is the processing of meat-based proteins. "If we are not aware of it and participating in our own disruption, we basically deserve what we get," said Tyson Ventures Chief Financial Officer Tom Mastrobuoni.
The Securities and Exchange Commission won't extend the May 14 deadline for its new markup disclosure requirements, although industry bodies and participants had been hoping for more time. Leslie Norwood, SIFMA managing director and associate general counsel, said firms are working to implement compliance plans before the deadline and that broker-dealers have commissioned vendors to develop relevant compliance tools, but "connecting those new tools to existing systems and vendors as well as [conducting] related testing and training by May 14 remains a challenge."
Jacob Frenkel, chairman of JPMorgan Chase International, says a trade war would be "disastrous" and "an experiment that is too expensive." Frenkel considers the Smoot-Hawley Tariff in the 1930s "among the most catastrophic acts in congressional history" and warns against repeating the error.
The European Central Bank might wait until July to unveil how bond buying will end so it can see whether the economy bounces back from a slow first quarter, sources say. Some Governing Council members reportedly think interest-rate guidance need not change at that time.
The European Central Bank has asked Deutsche Bank to explain a €28 billion erroneous transfer to Eurex Clearing, German newspaper Handelsblatt reports. The ECB reportedly also wants to know how the bank will prevent a repeat incident.
A lack of a post-Brexit equivalence deal could affect the quality of data needed for transparency calculations to comply with Europe's revised Markets in Financial Instruments Directive, says Conor Foley, global head of government relations at Norton Rose Fulbright. "As it stands, data for UK firms won't be included in MiFID II transparency calculations after 2020, so all will need to [be] recalculated and many will be dramatically affected," he says.
Asian companies are behind US peers in insurance coverage against cyberattacks, according to FM Global. Less than 20% of Asian companies have cyberinsurance, compared with 66% of US businesses, the insurer says.
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