Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Banks

Carney: UK is ‘investment banker for Europe’

The governor of the Bank of England has repeated his calls for a “smooth and orderly” UK exit from the EU, saying that a transition out of the bloc will happen, it was just a case of “when and how”. Responding to the BoE’s latest bank stress tests, where lenders overall emerged with more resilient […]

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Currencies

China stock market unfazed by falling renminbi

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors. The Shanghai Composite, which tracks stocks on the mainland’s biggest exchange, has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi […]

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Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Banks

Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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Financial

Defaults gather, and now our Ratesetter watch begins

Posted on 30 November 2016

Here’s a deceptively simple question: what are the expected defaults on Ratesetter’s loan book? It’s simple because there should be a straightforward answer, even if there’s some uncertainty and subjective judgement built into the number. It’s deceptive because there seem to be two answers, one that makes everything look fine and another, which requires some […] Continue Reading

Property

US pending home sales inch higher in October

Posted on 30 November 2016

A forward-looking indicator of US home sales edged slightly higher in October, indicating steady recovery in the country’s housing market. The National Association of Realtors said pending home sales, based on signed contracts to buy previously-owned single-family homes, rose 0.1 per cent from September, in line with economists’ estimates. The rate of growth had slowed […] Continue Reading

Financial

Wealth manager Brewin Dolphin hit by restructuring costs

Posted on 30 November 2016

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […] Continue Reading

Banks

BoE stress tests reactions: ‘No room for complacency’

Posted on 30 November 2016

The results of the Bank of England’s toughest ever stress tests are in, and it’s safe to say results have been mixed; RBS was forced to present a new plan to bolster its capital position, while Barclays and Standard Chartered also failed to meet some of their minimum hurdles. Here’s a roundup of what analysts […] Continue Reading

Banks

Basel Committe fail to sign off on latest bank reform measures

Posted on 30 November 2016

Banking regulators have failed to sign off the latest package of global industry reforms, leaving a question mark hanging over bankers who complain they have faced endlessly evolving regulation since the financial crisis. Policymakers had hoped to agree the contentious new measures at a crunch meeting held in Chile this week, but a senior official […] Continue Reading

Banks

Barclays: life in the old dog yet

Posted on 30 November 2016

Barclays, a former basket case of British banking, is beginning to look inspiringly mediocre. The bank has failed Bank of England stress tests less resoundingly than Royal Bank of Scotland. Investors believe its assets are worth only 10 per cent less than their book value, judging from the share price. Although Barclays’s legal team have […] Continue Reading

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