Financial Markets
Top stories summarized by our editors
7/19/2018

Federal Reserve Vice Chairman for Supervision Randal Quarles told a banking conference the Fed should consider easing rules for some US banks with more than $250 billion in assets rather than lumping them in with global systemically important banks. "We have a unique opportunity to further tailor our supervision and regulation framework for large banks," Quarles said.

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Reuters
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Randal Quarles, Fed
7/19/2018

Federal Reserve Chairman Jerome Powell expressed concern about trade tensions brought about by the Trump administration's policies. "We hear many, many stories of companies that are concerned and are now beginning to make investment decisions, or not make them, because of this," he said in congressional committee hearings.

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Reuters
7/19/2018

Federal Reserve Chairman Jerome Powell told a House Financial Services Committee that the agency has no plans to regulate the growing cryptocurrency market because it is not big enough to threaten economic stability. Powell did warn that cryptocurrencies pose serious risks to "unsophisticated investors."

7/19/2018

The European Fund for Strategic Investments has surpassed its goal to stimulate €315 billion since its launch in July 2015, says Jean-Claude Juncker, European Commission president. The EC says EFSI increased GDP in the EU by 0.6% while supporting 750,000 jobs.

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Reuters
7/19/2018

Christian Bittar and Philippe Moryoussef, the French former traders convicted of conspiracy to defraud by dishonestly manipulating Euribor, are scheduled to be sentenced Thursday in a London court. Bittar pleaded guilty; Moryoussef was tried in absentia after departing London for France.

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Reuters
7/19/2018

A joint statement from eight countries' finance ministers says the EU should redouble its efforts to create a capital markets union as Brexit and EU elections are on the horizon.

7/19/2018

The premium required by investors to maintain 30-year German debt over Germany's benchmark 10-year debt recently reached its lowest point in five weeks. Major factors behind the drop were positions regarding European Central Bank action and concerns about global growth.

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Reuters
7/19/2018

Impatience among regulators is rising after the Basel Committee on Banking Supervision found only three of 30 banks taking adequate steps under BCBS 239 principles, which concern the aggregation and reporting of risk data. Regulators are discussing the potential of capital charges, which is something banks should "be worried about", said Dessa Glasser of Financial Risk Group.

7/19/2018

June's consumer price index matched May's 2.4%, which was a one-year low, according to the UK's Office for National Statistics, reducing the possibility of an interest-rate rise in August. Higher inflation had been expected in June due to increasing petrol costs, said the ONS.

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The Guardian (London)
7/19/2018

The People's Bank of China is offering Chinese banks money, requesting that large lenders take the lead in executing plans to lend to small businesses at lower cost, after new credit as a percentage of GDP reportedly neared a three-year low in June. Commercial banks will receive funds from PBOC's Medium-term Lending Facility.