Traders are reacting to July's weak inflation numbers by scaling back bets the Federal Reserve will increase interest rates again this year. The federal funds futures market indicated a 37.4% chance Friday of a rate increase in December, down from 46.8% the week before, according to CME Group.
5 Step Guide to Text Messaging Compliance Text messaging is the largest gap in compliance facing financial companies today. Use this five-step guide to learn how to build a text messaging compliance program that enables your firm to use text messages—without the risk.
The market for Fannie Mae and Freddie Mac credit-risk transfers has grown to $48 billion since the programs' inception, a shift toward a reduced role for government in the US mortgage market. JPMorgan Securities estimates sales will reach $15 billion this year, up from the previous record $13 billion issued in 2016. "The government's footprint in the mortgage market is receding quickly and significantly," said Mark Zandi, chief economist at Moody's Analytics.
Warren Buffett's Berkshire Hathaway has sold 10.6 million General Electric shares worth roughly $315 million in the second quarter, according to a securities filing. GE shares have lost 20% of their value this year, while the Standard & Poor's 500 index has risen 10%.
Brexit, gridlock in Washington, D.C., and sanctions against Russia are all geopolitical issues that could impact markets in the second half of 2017. Additionally, upheaval in Venezuela could disrupt the oil-producing nation.
Treasury yields rose after Federal Reserve Bank of New York President William Dudley said he favors another interest-rate increase this year if economic improvement appears. The Fed balance sheet likely will fall to between $2.5 trillion and $3.5 trillion five years after shrinkage starts, he said.
President Donald Trump stands a good chance of getting a package of tax cuts enacted by Congress ahead of the 2018 midterm elections, economists polled by Bloomberg said. Meanwhile, S&P Global Ratings' U.S. Chief Economist Beth Ann Bovino wrote in a recent report that Trump's administration is not likely to push through its tax reform or infrastructure plans in the near future.
Firms and industry groups have raised concerns about cybersecurity in requests to the Securities and Exchange Commission to delay a rule establishing liquidity risk-management programs and a change in reporting requirements because they need more time to comply. The SEC has not responded publicly, but one industry representative points out the SEC has data-security issues that could attract cybercriminals.
Trade negotiators for the US, Mexico and Canada begin renegotiating the North American Free Trade Agreement in Washington, D.C., on Wednesday. US President Donald Trump, Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau each have their priorities, which could be deal-breakers, and a number of sticking points need to be resolved.
When SIFMA hosted its 2017 Operations Conference and Exhibition in Florida, technology, regulation and compliance operations dominated the discussions. Over the last few years, questions on the transformative potential of technology together with the culmination of initial experiments, promising proof-of-concept projects, and analysis of early results have driven the financial services industry to go beyond simply asking what emerging technology can do. As we look forward to OPS 2018, SIFMA's Tom Price notes that today's industry changes aren't just about FinTech.
In a recent speech, SEC Chairman Jay Clayton outlined eight principles to guide his Chairmanship of the SEC. SIFMA welcomes him for a one-on-one conversation at The Capital Markets Conference to discuss how these principles will be put into practice. Chairman Clayton joins confirmed speakers including Treasury Secretary Steven Mnuchin; Abigail Johnson of Fidelity Investments; David Solomon of Goldman Sachs; and Warren Stephens of Stephens Inc. Returning to Washington, D.C. on October 23-24, the event features candid conversations and nine in-depth breakout sessions on the state of America's capital markets. Early bird rates now available.