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Global global exchanges on the high week, seeking recovery from the declines seen last week, even with an increase in coronavirus cases and expectations in the political field.

Europe, European stock markets signal recovery after the worst week since June. News that the giant ArcelorMittal is negotiating to merge its assets in the United States with Cleveland-Cliffs, the largest producer of ore pellets in the country. Investors are concerned about the recent numbers that point to a major setback in the fight against coronavirus, which has caused the countries that make up the United Kingdom, as well as France and Spain (second third and sixth largest economies on the continent respectively), to give some steps back in the resumption of its economic activity, again imposing a series of measures that guide its citizens once again, to interrupt their social activities. Brexit case, with EU companies warning of the loss of 700,000 jobs in the event of a Brexit without a deal…

In Asia, over the weekend, the National Bureau of Statistics of China reported that the profit of the local industry grew 19.1% in August. The market operated mostly upward, with the exception of China. In Japan, Nikkei rose 1.32%, while South Korea's Kospi rose 1.29%. The Hang Seng index, from Hong Kong, with a high record of 1.04%. At the same time, China's Shanghai SE fell 0.06%.

International WTI oil futures (NYMEX: CL \ V20) are trading at $ 39.91, down -0.84%. Brent (NYMEX: BZ \ V20) also operates at a drop of -0.62%, traded at US $ 41.66.

NEIN zur Kündigungsinitiative, ein Schritt in die richtige Richtung

 

NEIN zur Kündigungsinitiative, ein Schritt in die richtige Richtung Die Schweizerische Bankiervereinigung (SBVg) hat klar die Gegner der sogenannte Kündigungsinitiative unterstützt. Das Engagement hat sich gelohnt. Die Initiative wurde am 27. September 2020 deutlich abgelehnt. Read in your browser »

Combating money laundering effectively

Combating money laundering effectively 23/09/20 The FinCEN files criticise international efforts to combat money laundering as insufficient. For Swiss banks, it is clear that a clean financial centre is key to being competitive. The Swiss Bankers Association (SBA) supports an effective and continuously improved system for combating money laundering and thus also the ongoing revision of the Anti-Money Laundering Act.

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European stock exchanges world stock markets are trading higher this morning, with investors reacting to new economic data in Europe. European stock exchanges operate in positive territory, as well as New York futures indices.

European economic activity showed slower growth in September, with the purchasing manager index (PMI) Markit at 50.1, down from 51.9 seen in August. Even so, readings above 50 indicate expansion of activity. Prior to that, Spain revised its Gross Domestic Product forecast for a 17.8% drop in the second quarter compared to the previous period, less severe than the previous 18.5% drop estimate.

In Asia, markets closed higher, with the exception of Japan, where the Nikkei fell 0.06%. In China, Shanghai SE rose 0.17%, while Hong Kong's Hang Seng index advanced 0.11% and South Korea's Kospi rose 0.03%.

In the region, investors responded to comments made by Federal Reserve Chairman Jerome Powell on Tuesday. He said the Central Bank remains committed to supporting the economy for as long as necessary. In addition, he warned that the economy could slow down in the coming months without further stimulus from Congress.

International WTI oil futures (NYMEX: CL \ V20) are trading at $ 40.11, up + 0.78%. Brent (NYMEX: BZ \ V20) also operates at an increase of + 0.91%, trading at US $ 42.10.

 

Report on the misuse of the Bank of England’s press conferences audio feed and the Bank’s management response 23 September 2020 In December 2019, the Court of Directors of the Bank commissioned a review by the Bank’s Internal Auditor and Independent Evaluation Office into misuse of the Bank’s Press Conferences audio feed. This findings of the review and the Bank’s response to the review’s findings and associated recommendations are published today. Report on the misuse of the Bank of England’s press conferences audio feed The Bank of England’s response to the report on the misuse of the Bank of England’s press conferences audio feed

Prudential Regulation Authority publishes CP12/20

 

UK withdrawal from the EU: Changes before the end of the transition period 22 September 2020 This joint Bank of England and Prudential Regulation Authority (PRA) Consultation Paper (CP) contains: Section A: an update on the Bank’s and PRA’s intended use of the temporary transitional power provided for in the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019. Section B: Bank and PRA consultation with proposals to fix deficiencies arising from the UK’s withdrawal from the EU and make consequential changes before the end of the transition period. Section B is split into three parts: Part 1 sets out Bank and PRA proposals in relation to consequential changes required to existing Bank and PRA EU Exit Instruments to update references to exit day and a small number of changes in light of adaptations to relevant EU legislation made by the European Economic Area (EEA) Agreement. Part 2 sets out the PRA’s proposals in relation to the PRA Rulebook and BTS that will, or are expected to, be retained in UK law. Part 3 sets out the Bank’s (as FMI competent authority) proposals in relation to BTS that will be retained in UK law.  This CP is relevant to all firms authorised and regulated by the PRA, including those that expect to have a deemed permission under the ‘temporary permissions regime’ (TPR) or Financial Services Contracts Regime (FSCR), or that seek to apply for PRA authorisation in the future. It is also relevant to FMIs recognised and supervised by the Bank, including those central counterparties (CCPs) that expect to have a deemed recognition under the ‘temporary recognition regime’ (TRR).

Geldwäscherei wirksam bekämpfen

21/09/20

Die «FinCEN-Files» kritisieren die internationalen Anstrengungen in der Bekämpfung der Geldwäscherei als ungenügend. Für die Schweizer Banken ist klar: ein sauberer Finanzplatz ist ein zentraler Faktor der Wettbewerbsfähigkeit. Die Schweizerische Bankiervereinigung (SBVg) unterstützt ein wirksames und laufend verbessertes Dispositiv zur Bekämpfung der Geldwäscherei und damit auch die laufende Revision des Geldwäschereigesetzes.

Read in your browser »

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Global exchanges are mixed this morning, with no catalysts to encourage a buying movement in the markets, while investors are watching the rise in coronavirus cases in Europe.

Roche Holding is the high profile on the old continent after saying that its drug Actemra reduced the need for ventilation in patients with Covid-19.

The World Health Organization has warned of a "very serious situation" that is emerging in Europe. According to the director of WHO in Europe, Hans Kluge, the transmission of coronavirus in September is faster than at the beginning of the pandemic.

In Asia, markets closed on a positive, led by China, where Shanghai SE rose 2.07%. In Japan, the Nikkei 225 closed up 0.18%, while the Hong Kong Hang Seng index rose 0.47%. South Korea's Kospi index closed up 0.26%.

 International WTI oil futures (NYMEX: CL \ V20) are trading at $ 41.20, up 0.6%. Brent (NYMEX: BZ \ V20) also operates at an increase of + 0.6%, trading at US $ 43.56.

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The speech of the always "super sincere Jerome Powell", who put his finger on the wound when speaking yesterday, conditioning the resumption of American economic activity to the political will of Congressmen, already wrapped in body and soul in the presidential elections scheduled for November 3, yet echoes in this opening of the negotiations in Europe and in the futures in NY that operate in the negative terrain early this morning.

In Brazil, the Central Bank's Monetary Policy Committee (Copom) maintained the basic interest rate (Selic) at 2%, as expected. This occurs after nine consecutive cuts.

Normally, forecasting low rates over a long period encourages stock purchases, but this was not the case yesterday, with the Nasdaq and S&P 500 indexes falling. This morning, New York futures indices signal that these markets are likely to open in the negative.

In Europe, investors will follow the UK Central Bank's monetary policy decision today, but a change in direction is not expected.

In Asia, the Bank of Japan kept its monetary policy unchanged. In its statement, the BoJ said the economy has started to improve but remains in a severe situation due to the impact of the pandemic. In the country, the Nikkei 225 closed down 0.67%.

The other Asian markets have also retreated. In China, Shanghai SE fell 0.41%. Hong Kong's Hang Seng index lost 1.56%. South Korea's Kospi index closed down 1.22%.

International WTI oil futures (NYMEX: CL \ V20) are trading at $ 40.24, close to stability. Brent (NYMEX: BZ \ V20) also operates stable, trading at $ 42.32.

 

Agents' summary of business conditions - 2020 Q3 17 September 2020 This publication summarises intelligence gathered by the Bank’s Agents between early August and early September. The Agents’ scores published alongside this document are based on information gathered between mid-July and late August. During the early stages of the pandemic, economic activity fell at an unprecedented pace, reflected in some Agents’ scores moving to the extremes of their range, where scores can be consistent with a wide range of outcomes. Although activity has recovered in recent months, it is still markedly weaker than a year ago, so a number of the Agents’ scores have remained very low. A summary of information gathered by the Bank’s Decision Maker Panel is also published alongside this document. Agents' summary of business conditions - 2020 Q3

Monetary Policy Committee Announcement and Minutes

 

Bank Rate maintained at 0.1% 17 September 2020 At its meeting ending on 16 September 2020, the MPC voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously for the Bank of England to continue with its existing programmes of UK government bond and sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, maintaining the target for the total stock of these purchases at £745 billion. View Monetary Policy Summary and minutes Monetary Policy Committee dates for 2021 Dates for Monetary Policy Committee (MPC) announcements on Bank Rate and publication of MPC meeting minutes and the quarterly Monetary Policy Report. View the press release

Weg vom kurzfristigen Renten-Engineering – hin zur nachhaltigen beruflichen Vorsorge

 

Rund 40 Prozent der Finanzierung der beruflichen Vorsorge können in den zehn Jahren von 2009-2018 dem dritten Beitragszahler zugerechnet werden. Neben den Arbeitgebern und Arbeitnehmern als bekannte Beitragszahler der beruflichen Vorsorge spricht man beim Ertrag auf dem angelegten Vermögen vom sogenannten «dritten Beitragszahler».

Global markets

World stock markets are up this morning, driven by resumption of AstraZeneca vaccine testing and news of major acquisitions.

In Asia, exchanges closed higher. Japan's Nikkei 225 index rose 0.65%, while South Korea's Kospi index advanced 1.30%.

In China, Shanghai SE rose 0.57%. Hong Kong's Hang Seng index rose 0.56%.Japanese technology conglomerate SoftBank Group has announced the sale of the chip company Arm Holdings in the United Kingdom to US company Nvidia for $ 40 billion.

Another operation that helps to animate the markets is the purchase of Immunomedics by the American Gilead Sciences, for US $ 21 billion.

New York stock market futures indices rose sharply after accumulating a drop in the first two weeks of the month. Technology stocks are leading the way, reacting to the news that Oracle has surpassed Microsoft and is expected to take TikTok operations in the United States.

International WTI oil futures (NYMEX: CL \ V20) are trading at $ 37.21, down -0.3%. Brent (NYMEX: BZ \ V20) also operates down -0.3%, trading at $ 39.72.

Bitcoin (COIN: BTCUSD) trades at $ 10,427. Gold (COMEX: GC \ U20) is traded at $ 1,943 per troy ounce.

⇒ The conditions that make gold an attractive investment 

Iron ore futures contracts traded on the Dalian exchange closed up 2.41%, quoted at 848,500 yuan, equivalent today to $ 124.36.

Coronavirus

AstraZeneca resumes testing of the vaccine against Covid-19 on Monday (14).Tests of the Covid-19 vaccine developed by laboratory researchers in the United States and Germany from Pfizer and BioNTech, which are in the final testing phase, can be extended to more people.

The companies have requested the Food and Drugs Administration (FDA), an agency that acts like Anvisa in the United States, the authorization to apply the doses to over 14 thousand people.

The world records 29,026,240 cases of coronavirus and 924,643 deaths, confirmed today by Johns Hopkins University.

Brazil has totaled 4,330,455 cases since the beginning of the pandemic and 131,625 deaths.

UK MARKET

United Kingdom - The July industrial production index will be published at 3 am by the statistics department.

United Kingdom - The July service sector activity index will be published at 3 am by the statistics department.

United Kingdom - The July trade balance will be published at 3 am by the statistics department.

Join us to help Beirut

 

                          YB2B UK supports this idea!

The devastation caused by the recent explosions in Beirut has left families and communities in need of help. Join us to provide the much needed relief to the hundreds of thousands of injured or homeless people and the families of those who lost their lives.

 

Inflation Attitudes Survey August 2020 11 September 2020 This quarterly survey, conducted by Kantar on our behalf, assesses public attitudes to inflation, opinions about the Bank and awareness of our work. This news release describes the results of the Bank of England’s latest quarterly survey of public attitudes to inflation, undertaken between 11 and 16 August 2020.

NOTICE TO THE MARKET PRIO3 IS INCLUDED INTO BOVESPA INDEX (B3)

 

NOTICE TO THE MARKET PRIO3 IS INCLUDED INTO BOVESPA INDEX (B3) Rio de Janeiro, September 8, 2020 - Petro Rio S.A. (“Company” or “PetroRio”) (B3: PRIO3) informs its shareholders and the market in general that, on the present date, its shares were included into the portfolio of Bovespa Index (“Ibovespa” or “IBOV”), principal index of B3, composed of shares with the highest traded volume in the past 12 months. PetroRio’s shares were included into the position 63 among 77 listed companies, ahead of traditional companies, with higher revenues and market value, which evidences a strong visibility and awareness of the Company in the local and international capital markets. Similarly, the presence in the Ibovespa increases the visibility of the Company, which allows the search for a higher number of investment funds for PRIO3. The Company, which already part of several indexes, including IBrX-100, SMLL, IGCX, IGC-NM and ITAG), is now listed in a total of nine indexes on the São Paulo Stock Exchange. PetroRio believes that the inclusion into new indexes is result of hard work of its team in expanding its participation, relevance and exposure in the local and international markets. The Company will continue to focus on its growth strategy, seeking, through its deliveries, generation of value to its shareholders.

To view the full file, please click here. PetroRio Investor Relations Praia de Botafogo, 370 | 13th floor | Botafogo | Rio de Janeiro | 22250-040 website: http://ri.petroriosa.com.br/

New recommendations for banks on dealing with insolvency risks at companies

The drastic drop in GDP and the consequences thereof are weighing on the economy. The SBA is therefore working together with the sector on recommendations for dealing with potential insolvencies. The aim is to avoid bankruptcies wherever possible by ensuring the best possible coordination between the banks supplying the loans and SMEs. This gives companies time to implement restructuring and recovery measures – and therefore to safeguard jobs.

Herbert J. Scheidt, Chairman of the SBA, says: “Competitive banks and a stable financial centre are a basic prerequisite for the functioning of our economy. With their extensive network across Switzerland, the banks provided even greater support for their clients during the corona crisis. They are fulfilling their responsibility and serving as reliable partners to the economy. The SBA also proved its efficacy as a central point of contact and coordinator for the sector during the crisis. Today, we can see the results of the work we have done over the last four years, during which we made significant changes at the Association.”

Sustainability is shaping the future of banking

Sustainable finance remains one of the SBA’s top priorities, and holds significant potential for the Swiss financial centre. In this area, the SBA is focusing on attractive market-based framework conditions and sector initiatives. Following the SBA’s publication in the summer of guidelines on integrating sustainability into the advisory process for private clients, the Association is now focusing on three areas: disclosure, classification (taxonomy) and measurability. The SBA is working together with the federal government, the authorities and the sector to define the requirements for the disclosure of climate-related financial risks. The SBA supports efforts to develop a uniform and harmonised classification system and meaningful methods of measurement. These prerequisites must be in place to enable transparency and comparability as well as reliable statements regarding the effectiveness of different measures.

On behalf of the SBA, the research institute gfs.bern conducted a representative survey on “Sustainability and Banks”. The survey shows that the majority of the Swiss population is satisfied with the environmental sustainability of the banks. At the same time, however, the Swiss have expectations of banks and politicians. For example, they have expressed a wish for banks to always give information about sustainability aspects when providing advisory services. A significant majority of the population is also in favour of greater transparency with regard to sustainability aspects, as well as better framework conditions for sustainable investments and products.

Global markets

Long weekend eve, with the Independence holidays in Brazil and Labor Day in the USA, both on Monday, brings the highlight of the report on the North American labor market in August.

The so-called payroll gains relevance because it will be the first to be released after the end of the emergency aid of US $ 600 per week to the unemployed. The benefit expired on July 31 and was not renewed amid the impasse between Republicans and Democrats in Congress.

 For Trump, the stock market crash was a "profit-taking" because "someone said something stupid". The American stock markets melted yesterday, the result of a strong profit-making movement in the technology sector, which had been responsible for driving the market to break consecutive records in recent months and to record one of the best events in history.

Wall Street scared the world yesterday, amid a strong sell-off wave in stocks in the technology sector, which raised doubts about the bursting of a new “dot com” bubble. The Nasdaq index fell by almost 5%, closing below 12,000 points, while the S&P 500 had the worst session since June, yielding 3.5%.

This morning, however, New York stock exchange futures are up, erasing the losses recorded last night and signaling that the sudden drop in techs does not mean that a broader correction is underway.

In Europe, banks help raise stock exchanges. Spaniards Caixabank and Bankia have announced that they are negotiating a merger to create Spain's largest bank.

In Asia, the market closed down after the low view of technology companies.In China, Shanghai SE lost 0.87%, while Hong Kong's Hang Seng index fell 1.25%. Japan's Nikkei 225 index fell 1.11% and South Korea's Kospi fell 1.15%.

 International WTI oil futures (NYMEX: CL \ V20) are trading at $ 41.71, up 1.0%. Brent (NYMEX: BZ \ V20) also operates at an increase of + 0.8%, trading at US $ 44.37.

 

Staff Working Papers 4 September 2020 Staff working papers describe research in progress by Bank staff and are published to elicit comments and to further debate. The following Bank of England staff working paper has been published today:   The link between bank competition and risk in the United Kingdom: two views for policymaking By Sebastian J A de-Ramon, William B Francis and Michael Straughan

 

Prudential Regulation Authority publishes PS20/20 Responses to Chapters 2 to 7 of CP3/20 ‘Occasional Consultation Paper’ 4 September 2020 This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Chapters 2 to 7 of Consultation Paper (CP) 3/20 ‘Occasional Consultation Paper’. It also includes the final rules, updated supervisory statements (SS), forms, relevant templates, and associated LOG files and instructions. This PS is relevant to different firms, as follows: Chapters 2 and 7: PRA-authorised Capital Requirements Regulation (CRR) firms; Chapter 3: non-Solvency II insurance firms; Chapter 4: all Solvency II firms, including the Society of Lloyd’s; Chapter 5: all PRA-authorised firms; and Chapter 6: PRA-supervised firms that operate in the UK but are not UK-headquartered firms.