A number of quantitative analysts say their efforts to model and predict liquidity risks in the futures market are hampered by the lack of available data from alternative risk premia strategies. The increasingly popular strategies were valued at more than $150 billion in 2016 with more than half the products futures-based, but analysts say that banks do not divulge the assets within them, which makes accurate forecasting difficult.
The UK Financial Conduct Authority is rolling out a scheme to help new asset managers, a follow-up to a study that found weak competition in the asset-management sector. "This will make it easier for firms to understand how the FCA works, make a complete submission, and transition from our authorisation to supervision regime," according to the FCA.
The European Investment Bank and the European Stability Mechanism, the eurozone's bailout agency, should work together more closely to deal with challenges that confront Europe, EIB President Werner Hoyer said. The two institutions should set up a relationship similar to one already in place between the World Bank and the International Monetary Fund, he said.
Procter & Gamble has defeated activist investor Nelson Peltz's effort to get a board seat through a proxy war by 6.15 million votes, or 0.2% of outstanding shares. Trian Fund Management, which Peltz controls, says the result is too close to call and is "based on estimates and incomplete information."
Europe's Airbus said it will buy a majority interest in the C Series airliner program of Canada's Bombardier. Bombardier CEO Alain Bellemare said that by assembling the aircraft at the Airbus plant in Alabama, the manufacturer will avoid a 300% import duty recently proposed by the US.
Most Asian-Pacific stock markets advanced Tuesday after US equity indexes touched record highs overnight. Japan's Nikkei 225 gained 0.4%; Hong Kong's Hang Seng Index was flat; Australia's S&P/ASX 200 climbed 0.7%; China's Shanghai Composite declined 0.2%; South Korea's Kospi added 0.2%; and India's Sensex was down 0.1%.
German airline Lufthansa said it is ready to bid €500 million for Alitalia's global network and European point-to-point business. The Italian newspaper Corriere della Sera reported that the Italian government considered the job losses required by Lufthansa's proposal "too brutal."
Analysts have questioned a report by President Donald Trump's Council of Economic Advisers that says the administration's planned corporate tax cut would benefit the middle class through wage gains.
The Labor Department has asked the US District Court in Minneapolis to stay a legal challenge by Thrivent Financial for Lutherans to the department's fiduciary rule while the agency revises the rule. The department said its administrative actions "are likely to address the challenged provision before it becomes applicable."
Inspections by the Financial Industry Regulatory Authority are targeting registered representatives the industry self-regulator sees as threats to clients, said Susan Axelrod, FINRA's executive vice president for regulatory operations. A special exam unit focused on high-risk brokers has conducted "several hundred examinations focused on these individuals," she said.