Financial Markets
Top stories summarized by our editors
8/21/2018

Technical analyst Robert Colby, CMT, has singled out health care as a strong performer among US equities, saying the sector has outstanding medium- and long-term prospects and noting its price remains above 50- and 200-day moving averages. The chart reading for utilities shows similar good health, Colby says.

8/21/2018

A Bundesbank report says that the German economy is stable but that slower growth is expected in the second half of this year, after 0.4% growth in the first quarter and 0.5% growth in Q2. Fewer industrial orders and more operational difficulties as automakers change test procedures are among reasons.

8/21/2018

Fund managers have warned a no-deal Brexit would mean high-risk European bank debt issued under English law would no longer comply with the EU's minimum requirement for own funds and eligible liabilities.

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EU, Brexit
8/21/2018

The leveraged-loan market is worth close to $1.4 trillion, ahead of the high-yield bond market's $1.3 trillion, says Mark Zandi, chief economist at Moody's Analytics. The leveraged-loan market has become similar to the subprime-mortgage market at the beginning of the financial crisis, Zandi says.

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Mark Zandi, Moody
8/21/2018

A lack of grandfathering ahead of introduction next year of the EU Securitisation Regulation has dampened bank investors' appetite for long-dated asset-backed securities. Some investors are concerned a lack of liquidity will make offloading the securities difficult.

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Practice Insight
8/21/2018

London faces five key challenges as it strives to remain a premier financial hub after Brexit, Silla Brush and Alexander Weber write. EU insistence on regulatory equivalence, rather than mutual recognition; stringent requirements on the structure of EU offices of UK entities; and the location of clearinghouses for euro-denominated derivatives are among unresolved issues.

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EU, Silla Brush, EU, Brexit, Brexit
8/21/2018

President Donald Trump says he has low expectations of trade negotiations this week between the US and China. He says China has "done too well for too long" in the existing trade environment, and he has no short-term time frame for ending the dispute.

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Reuters
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President Donald Trump
8/21/2018

Bank of England Chief Economist Andy Haldane has called for retraining of people as artificial intelligence renders many jobs obsolete. AI is set to create an industrial revolution, Haldane says, and equipping people with new skills is essential to avert mass unemployment, rising inequality and social tensions.

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BBC
8/21/2018

The US stock market rally is set to break a longevity record, and technical analyst Stephen Suttmeier, CMT, says it has room to grow. Highs for the iShares Russell 1000 Growth and iShares Russell 1000 Value exchange-traded funds indicate healthy rotation, while calm on the Cboe Volatility Index and positive investor sentiment add evidence of the rally's strength, Suttmeier says.

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MarketWatch
8/21/2018

Shares of Tesla declined almost 4% Monday after JPMorgan Chase lowered a price target amid skepticism of Tesla CEO Elon Musk's plan to take the company private. The stock had surged when Musk said funding was in place, but reports have emerged Saudi Arabia's sovereign-wealth fund, thought to be a source of funding, is negotiating an investment in Tesla rival Lucid Motors.

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Reuters