The US might go ahead with a revised North American Free Trade Agreement with Mexico but without Canada, US Trade Representative Robert Lighthizer says. A spokesman for Canadian Foreign Affairs Minister Chrystia Freeland says Canada is focused on the substance of the deal, not the timeline.
European Central Bank Chief Economist Peter Praet says that the eurozone can further reduce stimulus this year but that normalisation remains a long and slow process. Praet's comments downplay President Mario Draghi's prediction of a "relatively vigorous" increase in underlying inflation.
A panel of banks wants the European Commission to postpone the switch from the Euro Overnight Index Average and the Euro Interbank Offered Rate to an EU-wide reference rate. Banks worry the alternative rate will have too little liquidity, but the European Parliament must approve any deadline extension.
Investors are eyeing more European stocks as prices near the lowest in seven years while the euro strengthens. Other reasons for attraction include faster inflation, optimism for sustained growth and relaxed animosity toward the EU by Italian populists.
The UK might not see a regulatory breakdown if a no-deal Brexit occurs because its regulatory framework is aligned with that of the EU, says Marco Zwick, director of Luxembourg regulator Commission de Surveillance du Secteur Financier. With memorandums of understanding being drafted, the UK regulatory framework will be close or identical to EU regulation by March, so there is hope negotiations will be simple, says European Securities and Markets Authority policy officer Kian Navid.
China and the US should avoid viewing each other with a Cold War mentality and should not treat relations as a zero-sum game, Chinese Foreign Affairs Minister Wang Yi says. Relations will worsen if trade tensions continue, which is in neither country's interest, he says.
The International Regulatory Strategy Group wants the British government, financial sector and regulators to take a coordinated, global approach to regulation to avoid market fragmentation. "The UK should play a leading role in shaping the global regulatory architecture," according to a report by the think tank.
Tandem Bank has updated its app to prompt customers to sweep spare cash from their account to an interest-bearing savings account. The UK challenger bank says the feature improves savings habits by prompting people to set aside small amounts each month, rather than a lump sum.
Five financial industry trade bodies have sent a letter to the Basel Committee on Banking Supervision, the International Organization of Securities Commissions and nearly 60 regulatory authorities, requesting the threshold for the final wave of initial-margin rules be raised from $8 billion to $100 billion of aggregate average notional amount.
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