How regulators failed China stock market
BEIJING | July 8, 2015 | Caixin | The government was slow to recognize the risks that umbrella trusts created, then acted as if the Shanghai Composite Index should set policy.
Markets
The collapse in Chinese equities spilling over into other assets
LONDON | July 8, 2015 | Barclays | Shanghai, Shenzhen, and Hong Kong-listed H-Share indices all fell 3-4%, although the declines likely understate the weakness in sentiment given that trading has been halted in shares comprising c.40% of market capitalisation.
Investors would rather bet on Spanish stocks instead of bonds
MADRID | July 3, 2015 | By Francisco López | Investors who bought a Spanish 10-year bond last January 1st are losing today 3.8% of their investment. Those who chose a financial product linked to lbex35 earned 6% in the same period, despite the recent fall caused by the Greek crisis.The evolution of the Spanish stock market has been better in the first half of the year and, according to experts, may further improve.
PBOC shows it is concerned about Chinese stock market
BEIJING | July 2, 2015 | By Xu Gao via Caixin | Moves by the Chinese central bank (PBOC) indicate that it is paying close attention to margin trading and the commitment that banks have made to the bourse.
Qualifying Securitization: EBA presses pause?
July 1, 2015 | BNP | While Grexit is the market concern of the moment, disintermediation and securitisation will be important to monitor for the future.
Capital controls: Greece and Iceland
LONDON | June 30, 2015 | By Sigrún Davídsdóttir | Now that Greece has controls on outflow from banks, capital controls, many commentators are comparing Greece to Iceland. There is little comparison to be made between the nature of capital controls in these two countries. The controls are different in every respect except in the name. Iceland had, what I would call, real capital controls – Greece has control on outflow from banks. With the names changed, the difference is clear.
Tuesday unlikely to bring further changes for the Greek banks
LONDON | June 30, 2015 | BNP | On Tuesday the bailout programme expires and Greece is due to make a payment of EUR1.5bn to the IMF. Both important events. However given that the ECB has already capped the ELA ceiling, we don’t expect any further significant measures against the banks.
BoS recommends Spanish banks consolidate further, invest in innovation
The Corner | June 28, 2015 | Seven years after the crisis, and after a widespread restructuring process, Spanish banks still need to achieve a sustainable business model, the country’s central bank governor said.
Markets consolidate ahead of EU summit
The Corner | June 25, 2015 | As EU finance ministers are meeting for a second scheduled summit today, European equities opened lower: markets are cautiously optimistic for a deal between Greece and its creditors.
Fed to stay dovish in new rates regime
The Corner | June 17, 2015 | The Federal Open Market Committee’s policy statement, due to be released today at 1800 GMT, is widely expected to signal a first rates’ hike in September. For the first time in eight years the outcome of the meeting is not constrained by the “forward guidance” commitment. Is the US economy healthy enough?