Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
Blackstone Executive Vice Chairman Tony James says he's less optimistic now than before that the U.S.-China trade war could be resolved, but even a smaller deal could help...World Economyread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
President Trump also said he is "not looking for a partial deal" with Beijing, moving away from his suggestion last week that he would consider an "interim deal."Politicsread more
Progress on trade talks will determine how far market will move above new highs.Trader Talk with Bob Pisaniread more
"Sure, the trade war's taking its toll on business ... it's just not taking its toll where it was supposed to," Jim Cramer says.Mad Money with Jim Cramerread more
Joe Biden called on President Donald Trump Friday to release the transcript of a call with a foreign leader that is the subject of a whistleblower complaint. Biden described...Politicsread more
For investors taking a breather from the chaos in August, buckle up as the market is about go crazy again, Goldman Sachs warned.Marketsread more
Palantir Technologies is targeting a valuation of at least $26 billion in a private fundraising round, the first for the Peter Thiel-backed data analytics startup in four...Wall Streetread more
Michael Pack, a conservative filmmaker linked to Steve Bannon, saw at least $1.6 million in donations from his nonprofit sent into the coffers of his independent production...Politicsread more
The New England Patriots released Antonio Brown just 11 days after signing the wide receiver. The NFL Super Bowl champion team initially had kept him in the face of a rape...Sportsread more
The Bank of England (BOE) has attacked the European Union (EU) for risking the possibility that £29 trillion ($38 trillion) worth of derivatives could becoming untradeable after March next year.
In its Financial Stability Report, published Wednesday, the U.K. central bank said that while the British government had committed to a temporary permissions regime from March 2019 onwards, the EU had, as yet, made no corresponding promise. Britain is set to leave the bloc on March 29, 2019.
The BOE said the biggest Brexit risk to financial services remained where both the EU and U.K. needed to act, such as ensuring the continuity of existing derivatives. In the report, the bank said that the EU had not “indicated a solution analogous to a temporary permissions regime.”
The bank estimated that this could affect about a quarter of over-the-counter derivative contracts between the U.K. and the European Economic Area (EEA), with a notional value of around £29 trillion. Of that amount, around £16 trillion is due to mature after Britain leaves the EU. A derivative is a contract between two or more parties whose value is based on an underlying financial asset like stocks, bonds, commodities, currencies or interest rates.
"The U.K. government has committed to legislate, if necessary, to allow EEA counterparties to continue servicing contracts with U.K. entities (through a temporary permissions regime and additional legislation if required)," the report said. "EU authorities have not announced an intention to enable U.K. counterparties to continue servicing contracts with counterparties in the EEA.”
The BOE accusation could be seen as a response to EU criticism last week that claimed U.K. banks were not prepared for a hard Brexit.
Speaking to reporters following the report’s release, Bank of England Governor Mark Carney said that the EU regulator's Brexit assessment was "incomplete." "They did not acknowledge the temporary permissions regime, which has been very clearly signaled by the U.K. government,” Carney added.
The BOE report claimed that major U.K. banks had tripled their capital strength since 2007 and the system as a whole could sustain the British economy in a disorderly Brexit.