The coronavirus pandemic has led banks to rely on investment banking activities to cover losses on consumer loan books, with several banks achieving massive fixed income revenues, writes Tom Braithwaite.
Some European banks are withdrawing from the commodity trade finance market in light of setbacks, raising the prospect of less competition in the short term. Revenue from the activity fell 40% year over year in the second quarter to $700 million, according to Coalition.
Former Barclays chief executive Bob Diamond says the "leanest and most focused" banks will emerge in good shape from the coronavirus pandemic. Citing profitability as the main concern, Diamond advises banks to outsource non-core activities as much as possible.
The willingness of Chinese state-backed banks to comply with US sanctions underlines the importance of the US dollar, Nisha Gopalan writes. Chinese government officials have derided the sanctions, but the US dollar continues to dominate cross-border transactions, while China has made little headway in increasing the yuan's global role.
Building on existing responsible sourcing efforts, the London Metal Exchange is proposing to support sustainable metal production by creating a low-carbon aluminum spot trading platform, with plans for adding other metals. LME also aims to increase transparency of the metals and mining industries with a digital register for market-wide sustainable labeling, and is taking comments on the proposals until Sept. 24.
ED&F Man has received a judge's approval to raise about $320 million from creditors, which it says will allow it to continue pursuing disposals that have been set back due to the coronavirus pandemic. The commodities group reportedly spoke with other firms late last year about investing in its financial brokerage arm, ED&F Man Capital Markets.
Credit Suisse Group is shutting down an exchange-traded note tied to natural-gas futures after its over-the-counter trading price surged 6,150%. The VelocityShares Daily 3x Inverse Natural Gas ETN was one of nine ETNs Credit Suisse had delisted on July 12.
CME Group will launch a Nasdaq-100 Volatility Index-based futures contract on October 5 to allow clients to hedge portfolio volatility on the index. "[W]e're seeing a heightened volatility environment, with Nasdaq-100 fundamentally displaying different characteristics in terms of price performance versus every global equity index benchmark," said CME Group head of alternative investment products Tim McCourt.
The coronavirus crisis has caused enrollment in quantitative finance programs at top universities to slump, as remote teaching models and restrictions on international travel leave students deferring their placements.