Trade discussions between the US and China have stalled, but US Treasury Secretary Steven Mnuchin says the Trump administration is open to negotiations and is wanting not necessarily tariffs but fair trade. Chinese Commerce Ministry spokesman Gao Feng says that US companies should lobby their government to "defend their own interests" and that no talks are underway, although Commerce Vice Minister Wang Shouwen has called for both sides to meet.
Leaders in the financial industry have offered varied reactions to the British government's white paper on Brexit, which notably drops a demand for UK banks to have easy access to the EU. AFME CEO Simon Lewis welcomes the "further clarity and detail on the UK government's position" but emphasises a need for further progress, saying businesses need "certainty of a transition period and direction on the future trading relationship to minimise disruption to clients".
The Spanish government estimates a 2.7% public deficit relative to GDP in 2018, up from a previous forecast of 2.2%, Economy Minister Nadia Calvino says. Spain also expects a deficit of 1.8% in 2019, up from a previous estimate of 1.3%, as increasing oil prices eat into growth expectations.
Greek bonds are taking their place among the most attractive in Europe, says Scott Thiel of BlackRock, as the country moves on from financial difficulties. The country's largest corporate borrower, Hellenic Telecommunications Organisation, has received more than €1.8 billion in orders for four-year bonds, and a credit rating upgrade from S&P Global Ratings is expected to prompt demand for further offerings.
The European Securities and Markets Authority has delayed publication of updated systematic-internaliser calculations for derivatives to 1 February. ESMA says it has been unable to conduct a complete analysis because of insufficient data.
China appears to be prioritising growth and investment over a crackdown on risky lending. The State Council has urged city managers to accelerate approved investment projects, in contrast with earlier emphasis on restraining expenditures, to counter signs of economic slowdown.
SIX Group is partnering with Nasdaq to use the latter's post-trade technology to provide clearing for pan-European equities and Nordic derivatives for members. SIX can take advantage of Nasdaq's clearing and real-time risk-management technology and Financial Framework index technology.
The European Securities and Markets Authority has told businesses they have until the end of the month to apply for relocation to the EU to obtain regulatory authorization by March 29. "As there is no assurance that a transition period will be agreed upon, entities need to consider the scenario where a hard Brexit would take place on 30 March 2019," according to ESMA.
UK Chancellor Philip Hammond says the government's Brexit plan is a "pragmatic solution" that lets the financial-services industry "flourish."
The Securities and Exchange Board of India has updated the method behind daily stress tests for commodity derivatives markets. The change reflects market concerns, and the regulator has requested the modification be used within three months.
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