S&P Global Ratings downgraded China's credit rating to A+ from AA- citing increased debt. Ratings on HSBC China, DBS Bank China and Hang Seng China were also lowered.
Banks are increasingly turning to machine learning to help them cope with stricter risk-modelling regulations. "Even if you have a simple econometric model which you can explain to the regulator, you can also use your machine-learning model as an alternative model and say, 'OK, I have checked and tested my other model with this machine-learning model'," says Mostafa Mostafavi of Credit Suisse Group.
Most Asian-Pacific stock markets declined Friday as traders reacted to a downgrade in China's credit rating and North Korea's statement that it might test a nuclear weapon in the Pacific Ocean. Japan's Nikkei 225 slid 0.3%; Hong Kong's Hang Seng Index lost 0.8%; Australia's S&P/ASX 200 gained 0.5%; China's Shanghai Composite slipped 0.2%; South Korea's Kospi dropped 0.7%; and India's Sensex was down 1.4%.
Turkish Airlines has ordered 40 Boeing 787-9 airliners for almost $11 billion. Turkish President Recep Tayyip Erdogan has said he wants Istanbul to be one of the world's major hubs for air travel.
The Hong Kong initial public offering for China's ZhongAn Online Property & Casualty Insurance brought in $1.5 billion after shares priced at the top of their suggested range. Trading in the shares on the Hong Kong exchange is set to begin Thursday.
A.P. Moeller-Maersk, the world biggest operator of container ships, said it will sell its tanker business to its controlling shareholder, APMH Invest, for $1.17 billion. After the transaction closes, APMH plans to form a consortium with Japan's Mitsui to hold the tanker business.
The number of independent broker-dealers in the US declined 28% from 2005 to 2015, according to a report from Fidelity Investments. Broker-dealers' operating margins fell to 3% last year from 12% in 2006, encouraging small firms to become branches of major broker-dealers, the report said.
A survey by BMG Research found that 52% of UK respondents favor staying in the EU, while 48% want Britain to leave. Two months ago, respondents were equally divided on the same question.
The Financial Stability Oversight Council is scheduled to discuss dropping AIG's designation as a systemically important financial institution. AIG has reduced assets from $1.048 trillion in 2007 to $499.76 billion in June and has divested dozens of businesses.
A proposed change to the Federal Reserve's FR Y-15 reporting rule requiring the eight US global systemically important banks to include cleared derivatives transactions would increase client-cleared notional by an estimated $46 trillion. Banks that have worked to reduce G-SIB scores but stand at the upper limit of surcharge categories, including Citigroup, JPMorgan Chase and Morgan Stanley, would be at risk of being pushed into the next bucket.