The House will not act on legislation to raise the US debt limit until the Trump administration agrees to lift spending restrictions on domestic agencies, House Speaker Nancy Pelosi said. Treasury Secretary Steven Mnuchin said if agreement is reached on spending caps, "the debt ceiling has to be included."
Central banks should consider risk presented by climate change when they establish monetary policy, instead of solely as a financial-stability concern, said European Central Bank Governing Council member Francois Villeroy de Galhau. "It is also part of our mandate for monetary policy because climate change affects price evolutions, [affects] the economic outlook," Villeroy de Galhau said.
Companies including Mastercard, PayPal, Visa and Uber have agreed to invest in Facebook's cryptocurrency, sources say. Each company will invest about $10 million in a consortium that manages the coin, which will be backed by a portfolio of government-issued currencies to ensure stability, the sources say.
Asian-Pacific stock markets were mixed Friday as investors became increasingly concerned about attacks on oil tankers in the Middle East. Japan's Nikkei 225 gained 0.4%; Hong Kong's Hang Seng Index fell 0.8%; Australia's S&P/ASX 200 added 0.2%; China's Shanghai Composite dropped 1%; South Korea's Kospi lost 0.4%; and India's Sensex was down 0.8%.
China has opened a technology-innovation board on the Shanghai Stock Exchange. The exchange has approved six companies to trade on the board, which was created to stimulate investment in innovative-technology companies and to encourage them to list shares in China, instead of offshore exchanges.
Property developer ESR Cayman has delayed a Hong Kong initial public offering, which could have raised as much as $1.24 billion. The offering's aggressive pricing faces resistance, sources say, and demand is poor.
Initial public offering activity in London is at a 10-year low, with only 13 firms listing on the London Stock Exchange in the first half of the year and only one cross-border listing, and the trend is likely to continue, according to a report by law firm Baker McKenzie. "The markets will recover, but right now Brexit has a chokehold on the industry," said Adam Farlow, head of the Europe, Middle East and Africa capital-markets practice.
The economic burden of the US-Chinese trade dispute will harm China more than the US, says Larry Kudlow, director of the White House National Economic Council. A meeting between Chinese President Xi Jinping and US President Donald Trump at an upcoming Group of 20 meeting hasn't been formalized, Kudlow says.
The EU has agreed to increase hormone-free beef the US can export annually, a concession that could ease trade tensions, sources say. US producers reportedly can sell 18,500 metric tons initially and 35,000 metric tons after seven years.
The European Securities Markets Authority increasingly uses artificial intelligence to clarify and analyze unstructured data sets generated by post-crisis reporting requirements as the regulator monitors systemic risk. "You can have a much more sophisticated view of the risks" if AI can link data sets, says Steffen Kern, head of risk analysis and economics.
The euro's use as a global currency has surged after sitting at a record low last year, according to the European Central Bank. Growing confidence in the eurozone and concerns about the US political landscape have pushed the euro's share of the foreign exchange reserve market to 20.7%, an increase of 1.2 percentage points during the past decade, while the US dollar's share has reached a historic low.
US regulators should find ways to encourage market participants to accelerate the transition away from Libor, Commodity Futures Trading Commission member Rostin Behnam says. "We may need to think about more aggressive policy decisions to help the transition move along in a quicker, more expedient way," Behnam says.
Commodity Futures Trading Commission member Dan Berkovitz has voiced frustration that position limits on 28 commodities haven't been established nine years after the Dodd-Frank Act authorized the CFTC to set them. "I hope that we will complete it soon," he said.
BlackRock has brought to NYSE Arca two exchange-traded funds that give exposure to cybersecurity and genomics. The iShares Cybersecurity and Tech ETF picks investments from the NYSE FactSet Global Cyber Security Index, while the iShares Genomics Immunology and Healthcare ETF is linked to the NYSE FactSet Global Genomics and Immuno Biopharma Index.