The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France.Politicsread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
Futures fell after Trump said the U.S. will raise tariffs on more than $500 billion worth of Chinese imports, increasing trade tensions.Marketsread more
Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Neither the U.S. nor China wants to be seen as the party that derailed trade talks, says William Reinsch of Center for Strategic and International Studies.World Economyread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
Education Minister Ong Ye Kung says the Singapore government has been preparing for the challenge of an aging workforce "for the past 20 years."Employmentread more
Megvii is known for its facial recognition technology and while revenue grew over 350% in 2018, its losses have widened.Technologyread more
Stocks in Asia fell Monday afternoon following an escalation in the U.S.-China trade war late last week.Asia Marketsread more
Wall Street banks are awaiting the announcement of regulatory stress test results expected later this month with bated breath. But their investors are waiting with their wallets open.
After the Federal Reserve's Comprehensive Capital Analysis and Review test results are announced, Fitch Ratings analysts think that "credit card banks" may fare best. In the prior four years, the banks with the largest credit card businesses performed better in regulatory exams as a group, analysts noted.
And this could lead to billions in payouts for banks' investors, Fitch said. Capital requests, or what banks ask regulators for permission to pay out to investors, are set to rise this month via the stress tests because most banks will score passing grades with the Fed, according to Fitch.
"Banks have become more comfortable with the process and creative with their capital requests," the analysts wrote.
Stress tests — regulatory exams which Wall Street and international banks are required to face as part of post-crisis industry reform — also determine how much stock banks can buy back from shareholders, and the size of the dividend they're allowed to cut to investors.
After some bank investors pressed unsuccessfully at shareholder meetings to break up banks or curb executive pay, passing stress tests and distributing capital might be a welcome reprieve for Wall Street executives who have struggled to offset unnaturally low interest rates. Even banks' ability to distribute capital to investors must be approved by regulators.
"Many investors are well aware, the banks still have handcuffs on, in terms of what they can distribute," said Nathan Flanders, managing director covering non-bank financial institutions with Fitch.
And that especially applies to international banks that operate on Wall Street. The report notes that foreign-banks, which are not as experienced with the regulatory exams, have received objections to capital plans, stalling payouts to investors.
Wall Street firms are also under tougher standards, as evidenced by the Fed now requiring banks to model negative interest rates into their stress tests.
"The regulators have heightened expectations for big banks," said Julie Solar, senior director covering financial institutions with Fitch.
As long as banks pass their tests, their investors can increase expectations as well.