Financial Markets
Top stories summarized by our editors
12/14/2018

Congress took a break for the holidays without a plan for heading off a partial shutdown of the US government next week. Talks on keeping the government running haven't progressed since President Donald Trump said he is willing to take the blame for a shutdown if he doesn't get funding to build a wall along the border with Mexico.

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Politico
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President Donald Trump, Congress
12/14/2018

Benchmarks indicate China's trade dispute with the US is damaging the Chinese economy. Industrial output had the smallest gain in almost three years last month, while retail sales increased at the slowest pace since 2003, according to the National Bureau of Statistics.

12/14/2018

Talks are set to continue in coming days as the European Commission and Italy attempt to hammer out a deal for the nation's 2019 budget. Yields on Italian debt have fallen amid hopes of a compromise, despite a lack of clarity on how Italy would implement cuts in public spending that the EU wants to see.

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Reuters, Reuters, Yahoo
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European Commission
12/14/2018

The European Central Bank Governing Council has voted to end €2.6 trillion in bond buying but has pledged to continue reinvesting proceeds from maturing assets. Loose monetary policy continues, however, with the ECB holding its benchmark interest rate at zero until at least next autumn.

12/14/2018

Investors have poured cold water on reports that the German Finance Ministry is trying to broker a merger between Deutsche Bank and Commerzbank, saying they see little point in a tie-up. Meanwhile, two US senators want an investigation into Deutsche Bank's compliance with anti-money-laundering and bank-secrecy laws.

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Reuters, Reuters
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Deutsche Bank, Deutsche, AML, Commerzbank
12/14/2018

British Prime Minister Theresa May has told an EU committee that UK parliamentary approval of the Brexit deal is still possible but that an orderly withdrawal is at risk. The EU has said the backstop deal to prevent a hard border between Ireland and Northern Ireland is intended to be temporary and has refused to give legally binding guarantees.

12/14/2018

A working group on risk-free rates at the Bank of England wants greater focus on adoption of the Sterling Overnight Index Average. "It would be appropriate to begin considering more granular milestones with a more targeted approach," according to minutes from the group.

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BoE, BoE
12/14/2018

If stress tests of US and EU clearinghouses are to identify consequences of bank and clearinghouse collapses for the financial system, they must include more jurisdictions, banks and risk scenarios and must be performed more frequently, according to a US Federal Reserve working paper. Clearinghouse testing by US and EU regulators "is in its infancy", the paper says.

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US Federal Reserve, EU
12/14/2018

Regulated cryptoassets and regulatory clarity would attract institutional investors, Seed CX CEO Edward Woodford says. New products, such as security token offerings, traded on a regulated exchange could give institutional investors confidence to enter the market.

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Seed CX
12/14/2018

Bitcoin has slipped closer to $3,000, trading at $3,256 this morning after falling 5.4% Thursday. Traders say volatility means the cryptocurrency is unlikely to find support in the market, while venture capital outfits reportedly also are pulling out.

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$3,000, Bitcoin