Stocks edged forward; the S&P 500 rose 0.4 per cent to 1,585.16 as weekly jobless claims improved, and corporate earnings continued to come in ahead of expectations (Reuters).
US bankers have begun to support European peers against Fed plans to impose tighter capital requirements on their US operations. Executives from JPMorgan and Goldman have pressed policymakers on the proposal for foreign banks’ US subsidiaries to hold a minimum level of 7 per cent core capital to risk-weighted assets by 2015. Other US banks fear the rise of “Balkanised” regulation around the world (Financial Times). Liquidity rules proposed by the Fed have also drawn the ire of European banks (New York Times). Read more
There’s been some thought-provoking revisionism floating around about Cyprus lately.
The gist seems to be this: Why not push bank bail-in policy in the eurozone much harder, right into uninsured depositors if need be, if Cyprus has not (yet?) budged most gauges of bank funding from their current calm. And more importantly, when there is a vicious circle to resolve. Read more
The number of cargoes that go towards determining the Dated Brent price is rising.
As Reuters reported on Thursday:
At least nine May cargoes have moved up the North Sea Forties crude programme after stronger-than-expected output from Britain’s Buzzard oilfield, the biggest contributor to the Forties stream.
“One thing that I think would stand you in very good stead is to avoid lobbying – influencing policy is probably a better way to put it. We hear so much about fragmentation, but then the banks and trade associations discuss at great length trying to lower the standards.”
That’s William Coen, deputy secretary-general of the Basel Committee on Banking Supervision, as quoted by Risk on Wednesday. Read more
Live markets commentary from FT.com
New Italian PM criticises austerity || UK avoids contraction || Central banks buy gold || South Korean GDP beats || UK GDP today || Merkel in political austerity squeeze || Greece to seek German war reparations || US 15% capital megabank bill introduced || Pressure seen on ECB to cut rates next week || Greece seeks German reparations Read more
(Chart from El Pais with thanks… though please label the axes in the future. It drove us a little crazy.) Read more
Asian stocks mostly higher || New Italian PM criticises austerity || UK buy-to-letters main FLS beneficiaries || South Korean GDP beats || UK GDP today || Merkel in political austerity squeeze || US 15% capital megabank bill introduced || Pressure seen on ECB to cut rates next week || Greece seeks German reparations Read more