The final decision on which countries will get to host the European Banking Authority and the European Medicines Agency when they leave London due to Brexit will be made by an EU vote in November. Germany and France denied a report that they had secretly agreed to divide up the agencies between themselves, with the medicines agency going to France and the banking authority to Germany.
A wrangle has emerged between global regulators who have failed to agree on how to calibrate the minimum volume of risk-weighted assets required to establish a standardised capital floor for banks, as they work towards compliance with the Basel Committee on Banking Supervision's forthcoming financial-regulatory framework. However, Catherine Contiguglia writes that the debate is premature, as the calibration would depend on several other aspects of the standardisation strategy that are still unknown.
This week's decision to add 222 Chinese A-class shares to the benchmark MSCI indices is likely to provoke governance problems for fund managers, analysts say.
All 34 banks that underwent the Federal Reserve's annual stress test cleared the first round. "This year's results show that, even during a severe recession, our large banks would remain well-capitalized," Fed Governor Jerome Powell said.
Asian-Pacific stock markets mostly advanced in narrow ranges Friday as China's bank regulator asked questions about loans made to buy assets outside the country and as oil prices started recovering from 10-month lows. Japan's Nikkei 225 edged up 0.1%; Hong Kong's Hang Seng Index was flat; Australia's S&P/ASX 200 rose 0.2%; China's Shanghai Composite added 0.3%; South Korea's Kospi moved up 0.4%; and India's Sensex was down 0.5%.
Qatar Airways has submitted an antitrust filing seeking authorization to buy a 10% stake in American Airlines. In its own regulatory filing, American Airlines said that the CEOs of the two companies have talked but that the offer was unsolicited.
French President Emmanuel Macron said he will try win support for restrictions on investments and takeovers targeting Europe's strategic interests. In the past, smaller EU states in Southern and Eastern Europe receiving large investments from China have opposed limiting such deals.
Japan's manufacturing output and work orders are weakening. For June, the Nikkei Flash Japan Manufacturing Purchasing Managers' Index declined to 52, a seven-month low.
Regulators testifying before the Senate banking committee supported easing and simplification of rules recommended in the Treasury Department's review of post-crisis regulation. While Federal Reserve Governor Jerome Powell advocated an exemption from the qualitative portion of stress tests for banks with high-quality capital planning, acting Comptroller of the Currency Keith Noreika called for streamlining and simplifying the Volcker rule.
Advisers are being forced to change daily work habits to comply with the Labor Department's fiduciary rule, a survey by Aite Group found. Among advisers servicing retail retirement accounts, 69% said dealing with necessary workflow changes is somewhat or very difficult, the survey found.