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9/25/2020

The EU has released a plan for growing capital markets to decrease dependence on City of London firms and to help businesses recover from the coronavirus recession. The EU wants companies to reduce use of bank loans and instead get capital from stock and bond markets.

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Reuters
9/25/2020

Investment strategies that were paying off while inflation expectations were rising have reversed to return losses in recent weeks. Stocks, US Treasurys, speculative-grade corporate bonds, precious metals and copper are all under pressure as expectations of deflation become prevalent.

9/25/2020

Shifting fundamentals mean investors should switch out of European equities and into emerging-market stocks, Citigroup strategists say. "We think it makes sense to trim some developed-market specific risk at a time where near term probabilities are skewed to some regional economic surprise indexes turning negative again, led by Europe," according to a note from the strategists.

9/25/2020

Swiss National Bank Chair Thomas Jordan says the central bank has no knowledge of a potential merger between UBS and Credit Suisse. Jordan has dismissed talk of a deal as rumours and has declined to comment on regulatory implications.

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Reuters
9/25/2020

Societe Generale has made significant gains by developing structured products but must urgently address the challenge of reducing the downside that has emerged during the coronavirus pandemic.

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Societe Generale
9/25/2020

Racial inequality has cost the US economy $16 trillion in growth during the past 20 years, according to a study from Citigroup. The study, which outlines strategies for repairing the imbalance, estimates $13 trillion of the gap stems from lending inequality, $2.7 trillion comes from wage inequality and lost opportunities in housing and education make up the rest.

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The Hill
9/25/2020

The UK Financial Conduct Authority wants banks and investment firms to better guard against misconduct as staffers work from home and are less monitored for compliance. More workers are expected to resume remote work as coronavirus cases rise again, and though companies have managed the challenge, the FCA is "going to be looking to them to find perhaps some more creative, resilient solutions", says Megan Butler, an executive director at the FCA.

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Reuters
9/25/2020

Special-purpose acquisition companies, also known as blank check companies, are facing greater scrutiny on matters such as disclosure and compensation, US Securities and Exchange Commission Chair Jay Clayton says. Clayton acknowledges the usefulness of SPACs in providing an alternative to initial public offerings but says the SEC is concerned about "transparency and whether investors are getting all the information they need".

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SEC
9/25/2020

FTSE Russell plans to include Chinese government bonds in the World Government Bond Index starting in October 2021. The move could see $140 billion flow into the Chinese bond market, according to Goldman Sachs.

9/25/2020

The European Commission proposed a package of measures to bring more uniformity to the enforcement of EU financial market rules and implement oversight of cryptoassets. Under the new system the European Banking Authority would regulate companies that issue "significant" stablecoins.