European Regulators Push Mifid II Deadline Back to 2018 – Profit & Loss
The European Commission has proposed a one-year delay to the implementation of MiFID II.
Yellen – Fed Not Likely to Reverse Course on Rates Despite Risks – Reuters
The Federal Reserve is unlikely to reverse its plan to raise interest rates further this year, but tighter credit markets, volatile financial markets, and uncertainty over Chinese economic growth have raised risks to the U.S. economy, Fed Chair Janet Yellen told U.S. lawmakers on Wednesday.
Currency Turmoil Casts Doubt on Forex Pegs – Financial Times (subscription)
Market turmoil often radiates from currencies and showdowns between central banks and aggressive investors. A burning question in early 2016 is how long countries such as China, Saudi Arabia and other can continue to rely on currency reservces to spare their currencies from a pronounced drop in value.
Stocks Decline With Crude as Rout Resumes; Yen, Gold Advance – Bloomberg
Stocks dropped around the world as investors shunned risk and crude extended losses, while the yen and gold gained.
Finance Ministers, Central Bankers Seen Taking Up Forex Stability – Nikkei Asian Review
Steps to address the turmoil in foreign exchange markets are expected to be on the agenda when finance ministers and central bank chiefs of the Group of 20 nations meet in Shanghai on Feb. 26-27.
Kyle Bass Steps Up Attack on China’s Currency – Wall Street Journal (subscription)
Investor Kyle Bass stepped up his attack on China’s currency, arguing in an investor letter distributed Wednesday that the second largest economy’s foreign reserves are “already below a critical level”.
City of London’s Relations With Eurozone Confounding Brexit Talks – Euractiv.com
Draft European Council conclusions suggest that the relationship between eurozone countries and the City of London remains a sticking point in negotiations on a series of reforms to keep the United Kingdom in the EU.
To Stave Off Currency War, is it Time for a Coordinated Response to the Chinese Yuan? – MarketWatch
With investors fearing a further, significant fall in the value of China’s yuan currency could send more shock waves through international financial markets, some strategists think it’s time for global policy makers to come up with a coordinated plan that would help ease China’s transition to a weaker—and more free-floating—currency.
Sweden Cuts Rates Deeper Into Negative Territory, Says May Go Further – Bloomberg
Sweden’s central bank lowered its key interest rate even further below zero and said it’s prepared to use its full toolbox of measures as it battles to revive inflation and keep the krona from appreciating.