Deutsche Bank erroneously paid Eurex Clearing a daily collateral adjustment worth reportedly €28 billion about a week before Easter, but the mistake was caught before causing financial harm. The error raises questions about the bank's risk controls, but spokesman Charlie Olivier says officials "have rigorously reviewed the reasons why this error occurred and taken steps to prevent its recurrence."
The "Fearless Girl" statue, which stands opposite the "Charging Bull" statue in New York City, will move to a space outside the New York Stock Exchange because its location poses a safety risk, Mayor Bill de Blasio says. "Charging Bull" also might relocate, but no timeline or location has been set, the mayor's office says.
The 11 countries involved in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership want to continue with the trade pact as is, said the executive director of the Asia-Pacific Economic Cooperation Secretariat, Alan Bollard. US re-entry is possible "in some years," but the renegotiations likely required would slow progress made by the 11 countries, Bollard said.
The US Treasury Department may restrict Chinese investments by invoking use of the International Emergency Economic Powers Act. One goal of the move would be to pressure China to stop requiring foreign companies to partner with local firms on technology transfers.
Countries will not benefit from "inward-looking policies based on protectionism," said Taro Aso, Japan's finance minister. Global imbalances would be better remedied by a multilateral framework, rather than a bilateral one, Aso told Group of 20 finance leaders.
Asian-Pacific stocks followed a decline on Wall Street Friday. Japan's Nikkei 225 dropped 0.1%; Hong Kong's Hang Seng Index fell 0.9%; Australia's S&P/ASX 200 fell 0.2%; China's Shanghai Composite slid 1.5%; South Korea's Kospi declined 0.4%; and India's Sensex was down 0.2%.
State Street's Financial Select Sector SPDR exchange-traded fund has experienced the biggest single-day loss this year, despite strong earnings reports from major US banks. Many investors are skeptical banks can continue the positive performance, says Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
The UK should see multiple interest-rate increases in the next few years, including one this year, but probably not as soon as May, says Bank of England Governor Mark Carney. Economic data are mixed, Carney says, with unemployment at a 42-year low but inflation and retail sales disappointing.
Steel and aluminum tariffs are more likely to reduce US employment than to increase it, Federal Reserve Bank of New York researchers say. Employment in steel-intensive industries could decline as exporters dependent on steel raise prices or lower profit margins, the researchers say.
The 30-year fixed-rate mortgage probably does not need a government guarantee to survive, Randal Quarles, Federal Reserve vice chairman for supervision, said at a Senate banking committee hearing. US Sen. Heidi Heitkamp, however, said, "There are a number of people in smaller or midsized institutions who believe it would be difficult to take a 30-year interest-rate risk without some kind of assurance they could offset that risk."
Federal Reserve Governor Lael Brainard explained her vote against a proposal to change capital or liquidity rules for big banks, saying the largest firms "have the right kind and amount of liquidity." Vulnerabilities in asset valuation and business leverage show signs of "financial imbalances," Brainard said.
Trade tension could reduce investment as businesses experience an "erosion of confidence," says Christine Lagarde, managing director of the International Monetary Fund. More "clouds are accumulating on the horizon" of the global economy, though short-term prospects are promising, Lagarde says.
The majority of US firms say establishing a Chinese research and development center is of minimal importance compared with other regions, according to a survey by the American Chamber of Commerce in Shanghai. Less than 4% of businesses say China is their most important R&D center, citing factors including poor protection of intellectual property rights.
The International Monetary Fund urges regulators and policymakers in different jurisdictions to use a "nimble, innovative and cooperative approach" to establish cryptocurrency rules. "National authorities and international standard setters are encouraged to intensify cooperation on the monitoring of crypto-assets and on the consistency of the regulatory approach," an IMF report states.
Silicon Valley is lobbying for exemptions from Securities and Exchange Commission and other regulatory oversight until the cryptocurrency industry matures because of fears US regulation would hamper development. "You can't just start writing laws and regulations today and expect to get it right," said Chamber of Digital Commerce President Perianne Boring.
Direxion plans to launch an exchange-traded fund that uses leverage to give three times the performance of an index focused on artificial intelligence and robotics. This ETF is advised for investors familiar with daily leveraged and inverse investment, Direxion says.