DOCSLIB.ORG

The EDHEC Express – 9.11.2020

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The EDHEC Express – 9.11.2020 November 9, 2020 Weekly Newsletter EDHEC Student Finance Club Sign up form EUROPE BRITAIN LAGGING IN BID TO REPLACE EU TRADE DEALS SWITZERLAND HOLDING OUT AGAINST NEW Britain is on the verge of losing EU trade benefits with more than a LOCKDOWN dozen nations from January 1st. Britain have been trying to negotiate Switzerland is determined to avoid new deals and agreements that Brussels has with governments all lockdown deciding against following around the world. its neighbours. Having reported more Liz Truss, the international trade secretary, has concluded than 1,580 cases per 100,000 citizens replacement deals with many countries, but still have about 15 which is higher than the U.K, the countries they seek to rollover or replace deals. Liz hopes to finalize federal council at Bern has deals after promising negotiations with Canada and Singapore. introduced a raft of new measures instead. Source: FT Ueli Maurer, the swiss finance minister warned that the new restrictions could be disastrous, and Switzerland cannot afford a second lockdown. But the federal council hopes to ward off the second wave of coronavirus with the new measures. Source: FT Twitter and Google’s head of A.I back London based VC fund Volkswagen goes Green! Nathan Benaich, founder and general partner of boutique VC firm Air Street Capital has caught the eye of Twitter, Google execs and the billionaire founder of Clash of Clans maker Supercell. The 32- year venture capitalist has raised a $17m fund which will be used to back around 25 start-ups in Europe and the U.S. that have AI at their The Government of Greece and the core. Volkswagen Group signed an agreement last week to co-plan and Benaich has dominated the worlds of venture capital and artificial establish an electric transport system intelligence for almost a decade. As the sole general partner, on an island in the Mediterranean. Benaich is the only full-time investor at Air Street Capital. He has got The project is slated to last for an support from the likes of Jeff Dean, Google’s head of AI, and initial period of six years on the island Supercell founder Ilkka Paananen, who have also invested in his of Astypalea and is based around the fund. – Source: FT and CNBC development of an electrified transport network with the goal of developing “a model island for climate-neutral mobility.” Source: FT and CNBC OCADO ACQUIRES TWO U.S. ROBOTICS START-UPS Online supermarket Ocado, which also raised its full-year profit forecast, has acquired San Francisco based robotics firm Kindred Systems for $262m and Las Vegas firm Haddington Dynamics for $25m in cash and shares. Shares of Ocado were up over a as+ 9% on Monday after the announcement of acquisitions. “In our mission to solve one of the world’s hardest challenges in robotics, the picking and packing of groceries, we’re acquiring two leading robotics companies,” Ocado mentioned in an announcement. Chief Executive of the organization Tim Steiner said the acquisitions will allow the company to “acce lerate delivery, innovate more and grow faster.” – Source: FT and CNBC USA JOE BIDEN WINS THE PRESIDENTIAL ELECTION “Prospect of divided pushed US break-even rates — Congress and questions a market proxy for inflation US EMPLOYERS surrounding economic expectations — to a one- ADD 638,000 stimulus have had big month low. effects on markets”. JOBS IN OCTOBER But there is a divided Joe Biden was elected the 46th Congress, which might shield AND president of the US, pledging to corporates from higher taxes UNEMPLOYMENT tackle the pandemic and restore and tighter regulation. the soul of America in a victory. Besides, there is room for RATE FALLS movement on the regulation of As election results rolled in, fin-techs after this election. For US employers added 638,000 jobs money managers dialed back example, there is a lot that in October, as the labor market wagers on a spending-fueled fintech cannot do, in both continued its slow rebound eight economic boost that would feed lending and payments, without months from the start of the through to inflation. Their being heavily regulated like a pandemic. shifting bets propelled a sharp deposit-taking bank. The latest figures from the US rally in Treasuries and Bureau of Labor Statistics came in Source: FT higher than economists’ forecast for a gain of 600,000 jobs. The unemployment rate dropped to 6.9%, compared with 7.9% a month earlier, and analysts’ average estimate of 7.7%. Unemployment peaked at 14.7% in April. Source: FT BERKSHIRE HATHAWAY REPORTS A PROFIT OF $30BN POTENTIAL PRIVATE EQUITY BIDDERS FOR REEBOK Private equity firms have been eying US sports Berkshire Hathaway, the conglomerate that owns outfitter Reebok, as the brand’s corporate parent insurers including Geico, fast-food chain Dairy Queen, Adidas looks to untether itself from the long- and railroad giant BNSF reported a profit of $30bn for term, awkward relationship with the subsidiary. the quarter, an increase by +82% from a year ago, or Reebok was acquired in 2006 for €3.1bn and $18,994 for each of the company’s class A shares. recorded just €1.7bn in revenues last year. A potential sale of the brand would mark the end of Berkshire’s investment portfolio, which includes big one of the most costly and ill-suited pairings in the stakes in Apple, American Express and Bank of America, history of the sports gear industry. swelled by $25bn for the period as the US stock market continued to rally. Private equity firms Permira and Triton have considered a move for Reebok. London-based The increase in profits for its railroads, utilities and Permira has a record of buying footwear and energy businesses helped to offset a net loss for its apparel brands. It owns Dr Martens, maker of insurance business that dragged operating earnings classic punk-style boots, and has also recently down by a third, to $5.5bn. Berkshire had reported a acquired trendy footwear brand Golden Goose. $218m loss from insurance underwriting for the However, a potential investment in Reebok would quarter, down from a $440m profit a year ago. be a change for Triton, which invests primarily in Source: FT and CNBC European companies and mostly has portfolio companies in manufacturing, healthcare and business services. Source: FT and CNBC ASIA MALAYSIA’S CHINA HALTS $37BN ANT PETRONAS TO GROUP IPO, CITING ‘MAJOR PAY SABAH STATE ISSUES’ $303M IN SALES TAX Chinese regulator has lucrative lending and credit Malaysian state-owned energy suspended the $37bn listing of business. giant Petronas is expected to pay Ant Group, which had been set the resource-rich state of Sabah to become the world’s largest That online aspect of the firm's 1.25bn ringgit (US$303m) in sales IPO, one day after regulators business accounts for nearly 40% tax next year. Sabah Deputy Chief had grilled Jack Ma, founder of of its revenue, per regulators Minister Jeffrey Kitingan said the company. filing, and allows millions of country’s Prime Minister Chinese residents to easily Muhyiddin Yassinhad agreed for The Chinese fintech company access loans via credit platforms. the state to collect the 5% tax from Ant Group was ready to shatter Ant may be forced to spin in out Petronas next year. records with a $37bn IPO on due to the regulations, as the November 5th, with a reported information reported. Sabah and neighboring Sarawak estimated valuation close to state in Borneo island hold much of $300bn. The billionaire, Jack Official said there were "major the nation’s oil and gas reserves, Ma, publicly criticized China's issues" with Ant's listing under and have long asked for more financial regulatory system at a the new rules, and the Shanghai payments from Petronas, the sole Shanghai conference on exchange suspended Ant's IPO manager of the country’s energy October 24, declaring the rules on November 3rd. The company reserves. Petronas is a significant to be ill-suited for fostering willingly pulled its listing from source of revenue for the federal healthy innovation. He also Hong Kong stock exchange on government and a hit to its finances slammed the regulators that the same day. could also affect the annual enforce a set of international Experts informed that it would dividend it pays to the government, banking rules as "an old man's take another six months before its sole shareholder. The company club." A week later, regulators Ant resumes its IPO, if it even is set to pay 34bn ringgits in immediately introduced new does, and the firm has its work dividends this year to help the regulations on online lending, cut out: it will need to review the government fight the Covid-19 which directly impacted Ant's nation's new lending rules and pandemic, and 18-billion-ringgit reapply to qualify for its dual next year. listing. Source: FT and Business Insiders Source: FT and Business Insiders PHILIPPINE AUTHORITIES THAI REGULATOR APPROVES BHP SET TO MAKE ITS FIRST INVESTIGATE TRANSACTIONS $10.6BN TESCO TAKEOVER INVESTMENT FROM $400M FOR LINKS TO WIRECARD CLIMATE INVESTMENT FUND THROUGH A LANDMARK DEAL WITH CHINA’S BIGGEST STEELMAKER Thai competition authorities have approved one of Asia’s Philippine regulators in June biggest merger and acquisition launched an investigation into deals of the year - allowing a go Wirecard’s local partner ahead to the $10.6bn takeover businesses. It includes of Tesco’s south-east Asian The Anglo-Australian miner - BHP Centurion Online Payment operations. The purchase by Group and China Baowu Group, International, PayEasy local family conglomerate China’s biggest steelmaker, have Solutions and ConePay Charoen Pokphand was signed a memorandum of International that appeared — approved on Friday, subject to a understanding focused on on paper at least — to do few conditions including on decarbonizing steelmaking, an substantial business with relations with suppliers.
Load more

Recommended publications
  • A Recap of Recent Financial and Economic Market Activity. Applications for U.S
    Samuel Mangiapane, CRPC®, MBA Managing Principal | Financial Advisor Chartered Retirement Planning Counselor℠ 732-807-2340 direct [email protected] email mintfinancialservicesllc.com website Mint Financial Services LLC 2-10 Broad Street, Suite 303 Red Bank, NJ 07701 July 2021 - A recap of recent financial and economic market activity. Applications for U.S. state unemployment insurance fell by more than projected, reaching a fresh pandemic low. U.S. manufacturing continued to expand at a solid, yet slightly slower pace while a measure of prices paid for materials jumped to an almost 42-year high. Year to date, cyclicals have been some better performers. Energy shares are up 44.5% with the rebound in oil prices, and financials have bounced 25.2%. In contrast, S&P 500 growth stocks are up 14.3%, lagging slightly the S&P 500’s 15.5% gain. Tech stocks are up 14.9% year-to-date. Oil jumped to the highest in more than six years after a bitter fight between Saudi Arabia and the United Arab Emirates plunged OPEC+ into crisis and blocked a supply increase. Fearful of their growing influence, China is in the middle of a sweeping crackdown on the nation's biggest tech firms. Last November, Beijing pulled the planned IPO of fintech giant Ant Group, and in April, it hit Alibaba (BABA) with a record $2.8B fine over abusing its market dominance. The Fed delivered a double-whammy after its quarterly economic forecasts showed officials expect two rate hikes in 2023 and Chair Jerome Powell announced the central bank was getting the taper debate into gear.
    [Show full text]
  • Global Fintech Biweekly Vol.18 Aug 28, 2020 Global
    Friday Global FinTech Biweekly vol.18 Aug 28, 2020 Highlight of this issue – Global payment giants 2Q20 results: the pandemic accelerates payment digitalization Figure 1: PayPal outperformed peers with its online payment strength Source: Company disclosure, AMTD Research Note: 1) Square’s big loss in non-GAAP net income in 1Q20 was mainly due to the increase in provision for transaction and loan losses; if excluding the item, the 1Q20 YoY growth of non-GAAP net income would be 23%. 2) For Visa, 4Q19, 1Q20 and 2Q20 refer to 1QFY20, 2QFY20 and 3QFY20, respectively. Global payment giants beat expectations in 2Q20; online and contactless payments uplifted earnings Global payment giants’ 2Q20 results outperformed market consensus on the whole. Although the offline payments and cross-border payments experienced a heavy blow, contactless payments and online payments expanded dramatically and partially offset the declines. PayPal, which focuses on online payments, posted record growth, with its gross payment volume (GPV), adjusted net income and net margin all reaching their historic highs. As the world has entered a new phase in the fight against the pandemic, the global consumer payment market gradually recovers, and the GPVs of payment giants improve month by month since April. Online payments in the US grew rapidly in the quarter, while offline payment volume declined less than expected due to the US economic stimulus package. China's consumer spending recovery unfolded as the pandemic went under control. In both developed and developing markets, offline contactless payments and online digital payments penetration rates are fast increasing, and payment giants are strengthening their digital offerings to ride on the contactless digitalization trend.
    [Show full text]
  • REPORT the Ant Group
    REPORT 0 2 0 2 The Ant Group IPO H T 0 2 R E B O T C O October 20th, 2020 The Ant Group IPO There are only a handful of companies that can be described as truly transformative. Ant Group has upended the Chinese banking system and, with WeChat, has become the model for global financial services in the decades ahead. Ant Group has the potential to be the financial backbone of a slew of industries and could well provide the framework for a cashless China and, potentially, a cashless globe. It is all too easy to paint to rosiest of scenarios for the Ant Group as they dominate China and look to take on the world. International dominance is far from certain. Given the current climate between Washington and Beijing, the prospect for Ant Group in the world's richest economy is non-existent. While tensions may ease in the event of a Biden Presidency, the United States will be a negligible revenue source for the company. Emerging markets are often cited as low hanging fruit as countries across Africa, Asia, and Latin America crave for Alipay's efficiency. Yet, as the Indian example has shown, rising techno-nationalism and skepticism over the Chinese Communist Party's (CCP) intentions may limit international growth opportunities. I hosted a panel on October 13th to discuss Ant Financial's success and its future expansion in the context of geopolitical tensions. I was joined by Martin Chorzempa — research fellow, Peterson Institute of Economics Zennon Kapron — founder of Singapore-based fintech consultancy Kapronasia Colin Liang —head of China research, RWC Partners Neil Sheppard — COO of the financial services group at Singapore-based Diginex We discuss the interplay between Ant Group and the CCP, the role and future for the traditional banking system, the outlook for capital markets transactions in the context of this payment’s ecosystem, and other risks to Ant Group.
    [Show full text]
  • Between Evolution and Revolution
    Navigating the payments matrix BetweenCharting aevolution course andamid revolution evolution and Payments to 2025 and Beyond revolution THE FUTURE OF FINANCIAL SERVICES PAYMENTS 2025 & BEYOND 2 | PwC Navigating the payments matrix Foreword Dear reader, The financial-services industry is in the midst of a We are therefore delighted that the first report we are significant transformation, accelerated by the COVID-19 launching in our 2025 & Beyond series focuses on the pandemic. And given the key role digitisation plays payments industry and the key themes that are influencing in the financial lives of more and more of the world’s it. How the industry responds to these trends will define population, electronic payments are at the epicentre of both how successful it is in the coming years and its this transformation. impact on society overall. Payments are increasingly becoming cashless, and We hope that you find these insights helpful and the industry’s role in fostering inclusion has become provocative. Please feel free to reach out to me and my a significant priority. Payments also are supporting colleagues with your comments and feedback. the development of digital economies and are driving innovation—all while functioning as a stable backbone for Sincerely, our economies. Peter C. Pollini Principal, PwC US [email protected] 3 | PwC Navigating the payments matrix Figure 1: Cashless transaction volume will more than double by 2030 Where are Number of cashless transactions in billions 61% we now? GROWTH Total 3,026 82% GROWTH Sending a text to pay for a bus ticket in 1,818 Turkey, using a QR code to buy groceries in China, or tapping a sales terminal with Total 1,882 a mobile phone in the US.
    [Show full text]
  • Adam Smith Awards Asia Winner – Best Liquidity Management Solution
    Ant Group elevates customer experience with next-generation treasury structure Adam Smith Awards Asia Winner – Best Liquidity Management Solution About Established in October 2004, Ant Group is a leading global online payments provider that aims to bring inclusive, transparent and cost-effective financial services to its customers, including individuals and small-and-micro enterprises, around the world. Partnering with more than 250 global financial institutions worldwide, Ant Group provides online payment channels for 1.2 billion buyers and 2 million sellers in over 200 countries, servicing major global merchants and all 60 Alibaba affiliates. The challenge As Ant Group expanded its footprint globally and the volume of payments through its channels grew exponentially, it found increasing inefficiencies and limitations in its treasury functions in the form of: • Decentralized FX and liquidity management which was being managed by local geographical entities as opposed to being centrally managed, resulting in a sub- optimal account and liquidity structure, and a lack of central visibility over fund movements. • Costly overdrafts (ODs) and funding shortage as Ant’s main funding currencies are U.S. dollars (USD) and Chinese Yuan (CNY) so it needed to constantly tap on ODs to cover any funding short-falls in local currencies (LCY) or had to sell USD (or CNY) to buy LCY on transactional basis, resulting in additional FX costs on top of OD costs. • Fund efficiency constraints as Ant operated its global treasury funds solely from Singapore, resulting in value-dating that could only happen in Asia Pacific (APAC) hours. In addition, the speed of non-APAC collections and payment was compromised as they were done via accounts based in APAC.
    [Show full text]
  • Daily Business News
    DAILY BUSINESS NEWS Daily Business News September 13, 2020 BUSINESS NEWS ANALYSIS REPORT commission alone cannot do it, he persons who are out to gobble up said. "To diversify products of the investors' hard-earned money through Capital Market News market and make the market debt- various deceitful acts. The warning based rather than equity-based, we came from chairman of the approved many bonds," he said. Bangladesh Securities and Exchange Good governance, digitalisation can Commission (BSEC) Prof. Shibli After taking over in May, the new charge up stock market: analysts Rubayat Ul Islam as he spoke at a commission led by Islam approved webinar on Saturday. Leading market Good governance, digitisation, zero coupon bonds worth Tk 850 operators and analysts, among others earnings growth of listed companies crore, subordinated bonds worth attended the virtual event. and supportive macro-economy are around Tk 3,500 crore and local bonds the key to a sustainable stock market, of Tk 100 crore. The commission will In reply to a question over continuing analysts said yesterday. Their allow stock brokers to open digital job of the officials of brokerages and comments came in a webinar -- outlets abroad in order to attract non- merchant banks prohibited by the Towards a sustainable capital market: resident Bangladeshis and foreign former leadership of the commission, the drivers of growth -- jointly investors to the market, Islam said. To Prof. Islam said the securities organised by Bangladesh Merchant ensure transparency, the BSEC is regulator will publish the names of Bankers Association (BMBA) and working to digitise every sphere of those officials.
    [Show full text]
  • ACM Study: Big Techs in the Dutch Payment System
    Please note that, although every effort has been made to ensure this translation is accurate and consistent, it is for informational purposes only. In case of any dispute or inconsistencies, the Dutch version is authentic. Summary At the request of the Dutch Ministry of Finance, the Netherlands Authority for Consumers and Markets (ACM) carried out a market study into the role of major technology firms (“Big Techs”) in the Dutch payment system. In this study, ACM looked at the following Big Techs: Apple, Amazon, Ant Group, Facebook, Google, and Tencent. This report offers a description of the current positions of these Big Techs on the Dutch payment market and, more specifically, on the submarkets for offline payments, online payments, and peer-to- peer payments. Among other topics, the report explores the question of what the Big Techs’ considerations are for entering the Dutch payment market, and what their strategies or plans are. In addition, this report examines possible opportunities and risks for competition, should the positions of Big Techs on the payment market become stronger. Finally, the report examines the question to what extent the current legal framework and regulatory toolbox are sufficient for mitigating any anticompetitive concerns, and for keeping the payment market open. Positions of Big Techs on Dutch payment market are small, but on the rise ACM’s study reveals that, right now, Big Techs still have a small presence on the Dutch payment market, but one that is growing. So far, Big Techs have offered consumers primarily innovative payment solutions, including paying by e-wallet on mobile devices.
    [Show full text]
  • Fidelity® Capital Appreciation Fund
    PORTFOLIO MANAGER Q&A | AS OF APRIL 30, 2021 Fidelity® Capital Appreciation Fund Key Takeaways MARKET RECAP ® • For the semiannual reporting period ending April 30, 2021, the fund's The S&P 500 index gained 28.85% for Retail Class shares advanced 26.28%, trailing the 28.85% gain of the the six months ending April 30, 2021, benchmark, the S&P 500® index. with U.S. equities rising on the prospect of a surge in economic growth amid widespread COVID-19 vaccinations, fiscal • Co-Managers Jason Weiner and Asher Anolic made several stimulus that included a third round of idiosyncratic picks for the fund the past six months that offset relief payments and fresh spending investments in cyclical stocks that outperformed amid increasing programs. In November, stocks shrugged prospects for an economic recovery. off a two-month retreat by gaining 11%, as investors digested results of the U.S. • Non-benchmark investments in two China-based companies – e- elections. The momentum continued in commerce giant Alibaba Group Holding and tech media and December, with the approval of two entertainment conglomerate Tencent Holding – detracted notably. breakthrough COVID-19 vaccines and prospects for additional government • On the positive side, an overweighting in Capital One Financial stimulus. As the calendar turned, contributed significantly, as did a sizable stake in industrial investors saw reasons to be hopeful. The conglomerate General Electric. rollout of two COVID-19 vaccines was underway, the U.S. Federal Reserve pledged to hold interest rates near zero • As of April 30, Jason and Asher believe stock valuations already reflect until the economy recovered, and the the initial leg of an economic recovery, which is why they remain federal government would deploy focused on bottom-up security selection, as opposed to investing trillions of dollars in aid to boost broadly in cyclical industries.
    [Show full text]
  • Big Techs in the Dutch Payment System
    Please note that, although every effort has been made to ensure this translation is accurate and consistent, it is for informational purposes only. In case of any dispute or inconsistencies, the Dutch version is authentic. Report Big Techs in the payment system 16 November 2020 2511 WB Hague 2511 The Muzenstraat41 070 00 20 722 www.acm.nl Netherlands Authority for Consumers and Markets Big Techs in the payment system Summary At the request of the Dutch Ministry of Finance, the Netherlands Authority for Consumers and Markets (ACM) carried out a market study into the role of major technology firms (“Big Techs”) in the Dutch payment system. In this study, ACM looked at the following Big Techs: Apple, Amazon, Ant Group, Facebook, Google, and Tencent. This report offers a description of the current positions of these Big Techs on the Dutch payment market and, more specifically, on the submarkets for offline payments, online payments, and peer-to- peer payments. Among other topics, the report explores the question of what the Big Techs’ considerations are for entering the Dutch payment market, and what their strategies or plans are. In addition, this report examines possible opportunities and risks for competition, should the positions of Big Techs on the payment market become stronger. Finally, the report examines the question to what extent the current legal framework and regulatory toolbox are sufficient for mitigating any anticompetitive concerns, and for keeping the payment market open. Positions of Big Techs on Dutch payment market are small, but on the rise ACM’s study reveals that, right now, Big Techs still have a small presence on the Dutch payment market, but one that is growing.
    [Show full text]
  • REPORT Ant Group China Fintech Update
    1 REPORT 2 0 2 Ant Group D N China Fintech Update 2 2 Y R Martin Chorzempa A U Peterson Institute R B E F China Fintech Update Our on-going focus on Ant Group and Fintech regulation more broadly continued with Martin Chorzempa — Senior Fellow at the Peterson Institute for International Economics, returning to continue our conversation on the true drivers and consequences of the clampdown on Ant Group. As we have stated since the IPO's suspension in Q4, this is so much greater than Ant Group and Alibaba founder Jack Ma, overstepping his bounds. This is about regulating a strategically important segment of the Chinese economy that had been transformed in recent years via a fintech revolution led by Alibaba and Tencent. Their dominance had fallen outside the regulatory framework, led by the PBOC, and recent actions have seen the Chinese regulators take back control. Martin and I discuss the latest state of play that culminated over the weekend with the announcement that Ant Group and other online consumer lenders would be required to put aside 30% of capital for all new loans in conjunction with their bank partners. When combined with the bank holding company structure, Ant Group’s future profitability has been dramatically curtailed and will dramatically decrease the IPO valuation when it comes to market, most likely at some stage in Q4. The IPO will go ahead because Ant Group needs the capital to cover the regulatory burden. We explore China’s New Regulatory Environment and the growing dominance of the PBOC. Regulatory turf-wars are common in China, and the PBOC appears to have taken a dominant position in the country's financial and economic direction.
    [Show full text]
  • ELFA Updates
    ELFA Updates ELFA Legal & Regulatory Update 28/09/2020 – 02/10/2020 Key Highlights: • This Legal & Regulatory Update covers the week commencing 28/09/2020. • BoE releases statement on ESMA’s recognition decisions with respect to central counterparties (CCPs) established in third countries. • BoE & FCA encourage market participants in further switch to SONIA in interest rate swap markets (CCFF). • FCA announces further 6-month extension and amendments to 10% depreciation notifications under MiFID. • FCA publishes rules that will apply at end of transition period. • FCA releases statement on MiFID trade reporting and position limit obligations. • ESMA to recognise three UK CCPS from 1 January 2021. • ESMA publishes draft rules for third-country firms under new MiFIR and MiFID II regimes. • ESMA proposes amendments to MiFIR transparency regime for non-equity financial instruments. • ESMA responds to EC’s Green Bond Standard consultation. • ESMA announces update to reporting under Money Market Funds Regulation. • EIOPA launches consultation on use of risk mitigation techniques by insurance and reinsurance undertakings. • EIOPA launches European-wide comparative study on diversification in internal models. • EBA publishes final guidelines on appropriate subsets of sectoral exposures in application of systemic risk buffer. • ECB is phasing out secured marketable assets other than asset-backed securities, legislative covered bonds and multi-cédulas as collateral. • ECB intensifies its work on a digital euro. • ESRB releases 33rd issue of its risk dashboard. • European Commission publishes list of members of platform on sustainable finance. • European Commission considers improving resilience of financial services against cyberattacks. • CSSF integrates ESMA’s guidelines on liquidity stress testing in UCITS and AIFs into its regulatory approach.
    [Show full text]
  • REPORT Chinese Fintech the Path to Regulation
    0 2 REPORT 0 2 Chinese Fintech H T 0 3 The Path to Regulation R E B M E V O N Chinese Fintech - the Path to Regulation Within the span of weeks, Ant's anticipated IPO – marked as the most valuable filing in history — came crashing down. Ostensibly for a series of controversial remarks made by CEO Jack Ma that criticized China's regulators, the bigger question is whether China is trending towards an era of regulating its financial industry and how this government oversight will impact the future of behemoth platforms such as Alipay and WeChat Pay. In a US-China Series virtual forum, I spoke again with Martin Chorzempa, a research fellow at the Peterson Institute for International Economics, to discuss the fallout of Ant's suspended IPO and the future of the payments system in China. Martin and I discuss the inevitability of regulation of fintech upstarts and whether or not Jack Ma’s speech critical of regulators was nothing more than a convenient excuse. Martin provides us with an excellent historical context and frames an argument where these companies will face ever increasing scrutiny, not solely because of their actions but because of the banking system’s strategic importance. This was less about the politics of Jack Ma flying to close to the sun and more about the Party maintaining control. In the Ant Group report we published in late October, we discussed nationalization risk, and frankly, I think it is underestimated over the medium term. These companies are now too big to fail, which in Chinese parlance, means they are too big not to comply.
    [Show full text]