Deutsche Bank has sold $1 billion in nonperforming shipping loans that predate the financial crisis to investment funds Oak Hill Advisors and Vaerde Partners. The bank says that it is not exiting shipping finance but that the sale lets it focus on more viable areas of the sector.
The People's Bank of China has raised the daily fixing rate by 71 basis points, but the yuan continues to lose ground against the US dollar, hitting the lowest point since January. "The central bank might step in to intervene if the sell-off turns out to be out of control," says Yinshu Capital CEO Bob Zhou, citing the US-Chinese trade dispute for the decline.
Boeing shares have fallen sharply, after a bright performance for most of this year, and look likely to suffer further, as do other aerospace and defense stocks, says technical analyst Mark Newton, CMT. Newton says Boeing's relative strength index has peaked at an abnormal high above 75, which historically indicates heavily overbought conditions that lead to a correction.
General Electric will be replaced by Walgreens Boots Alliance in the Dow Jones industrial average. Industrial firms have become less important to the US economy than health care, financial, technology and consumer companies, says David Blitzer of S&P Dow Jones Indices.
The Securities and Exchange Commission seeks comment on a proposed five-year plan that makes protecting Main Street investors the No. 1 priority. The draft says it is difficult for investors to know what standards of conduct govern financial professionals because the distinction between those who provide investment advice and those who sell securities "has become less clear."
A report from TheCityUK warns of a "looming crisis" if the UK and the EU do not resolve financial regulatory issues concerning Brexit, which could affect as much as £26 trillion in uncleared derivatives contracts, as well as insurance policies, business contracts and personal finances of 36 million people. The report urges action to ensure contracts are grandfathered in.
The European Investment Bank is considering launching a floating-rate note linked to the Sterling Overnight Index Average, a source says. The EIB reportedly is discussing the plan with investors, and the note could be priced within days and could prove a blueprint for bond issuance.
The UK Labour Party is proposing an operational overhaul at the Bank of England, including a mandate to drive productivity growth to 3%. Details of how the BoE would do this and the time frame it would have have not been clarified.
Chain Accelerator has been founded in France and has partnered with 30 financial and technology specialists. Services include technical prototyping, business development, funding guidance and support for initial coin offerings, and the startup contributes to a government goal to make Paris "the capital of the ICOs", Chain Accelerator co-founder Nicolas Cantu says.
A European Parliament committee has endorsed legislation to give the European Central Bank more authority over clearinghouses that handle euro-denominated contracts after Brexit. The bill needs consideration by the full Parliament and EU states.
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