Mark Boleat, former chairman of the City of London, says the outcome of Brexit negotiations is irrelevant because a gradual exit by financial institutions is already happening. "These moves are bad for London, but they are also bad for the EU because they will make financial markets less efficient," says Boleat, who predicts Brexit will reduce tax revenue from the City by as much as £10 billion annually.
Chinese commerce has become more difficult in the past year because of increasing regulation, and the trend is expected to continue, according to a business-confidence survey by the EU Chamber of Commerce in China. This is at odds with China's pledges to ease foreign access, the survey report says, and while "some of these pledges have been written into legislation, European companies have yet to see much real concrete implementation".
Starbucks stock has plunged after the company announced a plan to close 150 stores, and technical analyst Steve Miller says the end of a downward cycle on Starbucks' chart will compound the decline. The stock has attained lower highs during the past two cycles and is heading toward a support line, suggesting it might revive briefly, then continue descent, Miller writes.
Sirius XM broke out of long-term consolidation in January and has been rising since, writes technical analyst Bruce Kamich, CMT. All main indicators are bullish, Kamich notes, and modest corrections have ensured the stock is not overbought, so it looks capable of sustaining ascent.
Sen. Pat Toomey, R-Pa., a member of the Senate banking committee, says a proposed legislative package to promote capital formation and small-business creation, while easing certain Securities and Exchange Commission regulatory requirements, is likely to face opposition from Democratic senators. In an address to delegates at the Prudential Regulation Conference, co-hosted by SIFMA and The Clearing House, Toomey said the senators "are in a difficult position politically."
A report from cybersecurity expert Vectra Networks discusses whether another data breach on the scale of Equifax's is possible and highlights techniques hackers employ. Vectra's Chris Morales says hackers burrow tunnels between one data bank and another, tunnels that are difficult to detect and close, despite increasing cybersecurity investment in the financial industry.
AXA Equitable has reported first-quarter net income of $291 million in its first earnings statement as an independent company, compared with a $197 million net loss in Q1 of 2017. Paris-based AXA spun off New York-based AXA Equitable in an initial public offering in May.
EU banks' average securitisation exposures fell for the third consecutive year in 2017, with securitisations accounting for 0.7% of risk exposures, compared with 3.2% in 2008, according to the European Central Bank. The decline in securitisation exposures is consistent across bank sizes, although policymakers have expressed hopes forthcoming rule changes will revive appetite for securitisations.
Regulators in jurisdictions including the UK, Canada, Hong Kong and the Netherlands are trying improve corporate culture at banks by paying attention to communication from top management. Determining whether the effort has an impact is challenging, says Kevin Stiroh, an executive vice president at the Federal Reserve Bank of New York.
The European Securities and Markets Authority has confirmed 2 July is a firm deadline for trades to carry a legal entity identifier, as required by the revised Markets in Financial Instruments Directive. ESMA says many LEI applications have been submitted since the deadline was set, indicating no need to extend the grace period.
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