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Three US banks set aside $28bn to deal with Covid-19 fallout
July 14, 2020--JP Morgan and Citi report significant declines in profit, while Wells Fargo posts a $2.4bn loss
Three of the largest US banks said on Tuesday they had set aside a whopping $28 billion (Dh102.8bn) for loan losses, in a stark reminder that much of the economic pain from the coronavirus pandemic is still to come.
Borrowers have been propped up by trillions of dollars in government and bank assistance, cheap credit and loan forbearance programmes, but some of that support is going away, and banks said they fear losses will spike.
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Source: thenational.ae
Federal Reserve's $3 trillion virus rescue inflates market bubbles
July 13, 2020-- The Federal Reserve's $3 trillion bid to stave off an economic crisis in the wake of the coronavirus outbreak is fuelling excesses across U.S. capital markets.
The U.S. central bank has pledged unlimited financial asset purchases to sustain market liquidity, increasing its balance sheet from $4.2 trillion in February to $7 trillion today.
While the vast majority of these purchases have been limited to U.S. Treasuries and mortgage-backed securities, the Fed's pledge to bolster the corporate bond market has been enough to spur a frenzy among investors for bonds and stocks.
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Source: reuters.com
SEC commissioner calls for better ESG labelling
July 12, 2020--One of the US investment industry's top regulators has called for asset managers to provide clearer explanations of how environmental, social and governance metrics could affect the performance of ESG-labelled funds.
Sustainable investment funds are gathering record-breaking inflows and attracting mounting scrutiny from US regulators, who are concerned that not enough information is being provided to retail investors to allow them to properly compare available choices.
Elad Roisman, one of the four most senior officials at the Securities and Exchange Commission, said asset managers that wanted to use the labels "ESG", "green" and "sustainable" to name or advertise funds should be required to explain how these terms would influence the strategy and objectives of an investment product.
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Source: technocodex.com
ETFGI reports ETFs and ETPs listed in US gained net inflows of 57.59 billion US dollars during June 2020
July 10, 2020 -ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that ETFs and ETPs listed in US gained net inflows of US$57.59 billion during June, bringing year-to-date net inflows to US$189.04 billion which is much higher than the US$116.08 billion net inflows gathered at this point last year.
Assets invested in the US ETFs/ETPs industry have increased by 2.6%, from US$4.23 trillion at the end of May, to US$4.34 trillion, according to ETFGI's June 2020 US ETFs and ETPs industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Assets of $4.34 trillion invested in ETFs/ETPs listed in US at the end of June are the 3d highest on record.
During June 2020, ETFs/ETPs listed in US attracted $57.59 billion in net inflows with Fixed Income products being the most attractive among all asset classes.
Year-to-date net inflows of $189.04 billion are much higher than the $116.08 billion had gathered by end of June 2019.
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Source: ETFGI
Fed Discloses More Corporate Bond and ETF Purchases
July 10, 2020--The Federal Reserve bought about $1.3 billion face value of corporate bonds from June 17-26, boosting its purchases under a market stabilization buying program to about $1.5 billion at the time, according to disclosures Friday.
The Fed bought a much larger swath of bonds as part of its plan to build a portfolio of about 794 companies that tracks a broad market index. The market value of corporate bond exchange-traded funds bought by the Fed as part of the program also increased by about $1.2 billion to $8 billion ...
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Source: wsj.com
Trump says he's no longer considering phase-two trade deal with China
July 10, 2020--President Trump on Friday said he is no longer confident about negotiating a phase-two trade deal with China, noting that the coronavirus pandemic has damaged the countries' already-strained relationship.
Why it matters: The president's remarks throw both the future of the U.S.-China trade war and the first phase of the deal that the two countries signed in January into limbo.
What they're saying: "I don’t think about it now," Trump told reporters on Air Force One Friday in response to questions about phase two of the pact, per a White House pooler.
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Source: axios.com
CFTC.gov Commitments of Traders Update
July 10, 2020--The current reports for the week of July 07, 2020 are now available.
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Source: CFTC.gov
Most hedge funds to be allowed to keep equity holdings secret
July 10, 2020--US regulator set to sweep away quarterly disclosure requirements for all but largest managers.
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Source: FT.com
Wells Fargo Preparing to Cut Thousands of Jobs: Bloomberg Law
July 9, 2020-- Wells Fargo & Co is preparing to cut thousands of jobs starting later this year, Bloomberg Law reported on Thursday, citing people familiar with the matter.
The company's plans will eventually result in eliminating tens of thousands of positions due to pressure to "dramatically reduce costs", the report said.
Wells Fargo, the fourth-largest U.S. lender by assets, is leaning on cost cuts to stabilize its bottom line as it recovers from a raft of fines and costs relating to sales abuses first uncovered in 2016 and mounting loan loss provisions due to the coronavirus-driven economic downturn.
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Source: money.usnews.com
Top U.S. market's audit watchdog gives gloomy forecast for quality bookkeeping at U.S.-listed Chinese firms
July 9, 2020--An official with the U.S. Securities and Exchange Commission's (SEC) accounting oversight arm on Thursday said it sees "no prospects" of being able to properly do its job overseeing disclosures and preventing accounting fraud in China, amid ongoing consideration by the Trump administration of how to stave off the possible investor risk.
The comments by William Duhnke, chairman of the Public Company Accounting Oversight Board (PCAOB), comes as the latest in a series of statements in response to pressure from the White House and lawmakers to reduce the perceived risks Chinese companies pose to U.S. investors.
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Source: reuters.com
