China Has No Plans to Devalue Yuan, Vice President Li Says – Bloomberg China’s vice president underlined the Communist leadership’s pledge to avoid pursuing a policy of devaluation of the yuan, after criticism that his nation’s policy makers haven’t been clear on their intentions with the exchange rate.
Soros Says China Hard Landing Will Deepen the Rout in Stocks – Bloomberg Billionaire investor George Soros said China’s economy is headed for a hard landing, a slump that will worsen global deflationary pressures, drag down stocks and boost U.S. government bonds.
Convict Libor Brokers Only If They Played ‘Significant’ Role, UK Jury Told – Reuters Jurors in Britain’s second Libor trial were instructed on Thursday not to convict the six former brokers in the dock unless evidence showed they played a “significant” part in an alleged plot to help convicted trader Tom Hayes rig the benchmark interest rates.
Draghi Readies for ECB Action in March as Global Risks Escalate – Bloomberg Mario Draghi set the euro area up for expanded monetary stimulus for the third time in a year as China’s economic slowdown and market volatility threaten to derail the region’s recovery.
Squeezed Bank Dealers Quit European Government Bond Markets – Reuters A rise in the number of banks giving up primary dealer roles in European government bond markets threatens to further reduce liquidity and eventually make it more expensive for some countries to borrow money.
The Evolving Nature of the Fixed Income Markets – Profit & Loss The Bank for International Settlements (BIS) released two new reports, highlighting the structure and liquidity of fixed income markets and finds that while recent market changes do not appear to have had a negative effect on liquidity, in times of stress, arguably when the need for liquidity is at its greatest, liquidity conditions can deteriorate.
FX Volatility Wreaks Havoc on UK Corporate Treasurers – Euromoney Businesses will need to closely manage their exposures to currencies this year to avert losses, as notable exchange-rate moves this month are already threatening to eat into profits, warn foreign-exchange experts.
Norway to World: We’re Sitting Out the Big Wealth Fund Selloff – Bloomberg The world’s biggest wealth fund won’t be joining its counterparts in a selloff that’s hurting already depressed markets.