Brexit: May will meet Juncker – markets still

The UK Prime Minister Theresa May will meet the European Commission president Jean-Claude Juncker on Wednesday in Brussels to have the final discussions regarding the Irish border-issue, backstop.

UK Cabinet´s plan is to get the revised Brexit-deal to the Parliament next week before the possible second vote on the 27th Feb. According to sources one option is to use technology in order to solve the border-issue as a longer-term issue.

In London the stocks declined 0,56 % to 7197 points by the FTSE 100 -index. In Germany the Dax-index gained 0,09 % to 11309 points and in France the CAC 40 -index declined slightly 0,16 % to 5160 points.

In Wall Street Tuesday was the week´s first trading day after the President´s Day on Monday  and Dow Jones increased 0,03 % to 25 891 points. The S&P 500 -index gained 0,15 % to 2779 points and Nasdaq 0,19 % to 7488 points.

The financial markets were waiting for more news related to US-China trade talks and regarding the March deadline for new tariffs. During this week is also more information expected from the Federal Reserve´s and European Central Bank´s meeting memos. On the other hand, the worsening of the economic growth outlook in China and some EU countries might impact that the central banks are forced to revised their monetary policies during the first half of this year.

Euro was trading at 1,138 dollars, down by 0,03 % and UK Sterling was down also by 0,02 % and was 1,306 dollars. Brent Crude was up 0,03 % to 66,52 dollars per barrel.

Business Finance

Stocks mixed in Wall Street – Dell returned to the markets

The US stocks were mixed on Friday trading in Wall Street. The Dow Jones index was down 0,52 % to 23018 points, but the Nasdaq-index ended up 0,08 % to 6584 points. Larger S&P 500 index ended down 0,13 % to 2485 points.

Technology-company Dell Technologies (DVMT) returned to the markets, when its listing started again. The shares were listed in NYSE after six years as a private company. During Friday, the banking group Wells Fargo (WFU) announced that it will pay 575 million dollars to the state as settlement of phony accounts and customer abuses.

The e-cars manufacturer Tesla (TSLA) announced two new board members as part of the SEC settlement. The Oracle co-founder Larry Ellison and HR director Kathleen Wilson-Thompson will join the board. Tesla shares gained after the news. California is also the first US state to mandate women in boards.

In Europe the stocks gained and for example in London the FTSE 100 -index rose 1,89 % to 6653 points. In Germany the DAX-index ended up 1,71% to 10558 points and in France the CAC 40 index ended up 1,74 % to 4678 points.

In Asia stocks were mixed. In Tokyo the Nikkei-index ended down 0,31 % to 20014 points, while in Hong Kong the Hang Seng index gained 0,10 % to 25504 points.

Euro was trading slightly up 0,20% at 1,14 dollars and the UK sterling 0,47 % up to 1,27 dollars.

Brent oil, ICE, was up 0,08% to 52,20 dollars per barrell.

The year 2018 has been very downside trend for the global stocks and according to Bloomberg this year has been the worst year since 2008.

The volatility is expected to continue in 2019. On the agenda there is for example the Brexit vote, USChina trade talks, US Goverment shutdowns and the monetary policies of central banks.

Business Finance

Central banks: Climate risk is on the agenda

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Central banks are starting to integrate climate risk management into monetary policies globally.  Central Banks and Supervisors have establised a working group called “The Central Banks and Supervisors Network for Greening the Financial System (NGFS)”.

This is a voluntary group, but the idea to share best practices and to contribute to the development of environmental and climate risk management in the financial sector. One of the targets is also to support the transition towards sustainable ecnonomy and green finance.

According to the network, climate-related risks are a source of financial risk. It is therefore within the mandates of Central Banks and Supervisors to ensure the financial
system is resilient to these risks.

Some Central Banks have also started to scale up green finance by accounting for climate and environment-related factors in their investment strategies.  According to the network findings some Central Banks, regulators and local authorities have introduced incentives for banks to increase green lending and for issuers to issue green bonds.

The Secretariat is permanently provided by Banque de France and the chairman is Mr Frank Elderson, member of the Governing Board of De Nederlandsche Bank.

The network has structured its work into three dedicated workstreams: Supervision (chaired by Ma Jun from the People’s Bank of China), Macrofinancial (chaired by Sarah Breeden from the Bank of England) and Mainstreaming green finance (chaired by Joachim Wuermeling from the DeutscheBundesbank).

The Network members include:

  • Banco de España
  • Banco de México
  • Bank Al Maghrib
  • Bank of England
  • Bank of Finland
  • Bank Negara Malaysia (Central Bank of Malaysia)
  • Banque Centrale du Luxembourg
  • Banque de France / Autorité de Contrôle Prudentiel et de Résolution (ACPR)
  • Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
  • De Nederlandsche Bank
  • Deutsche Bundesbank
  • European Central Bank
  • Finansinspektionen (Swedish FSA)
  • Japan FSA
  • Monetary Authority of Singapore
  • National Bank of Belgium
  • Oesterreichische National Bank
  • the People’s Bank of China
  • the Reserve Bank of Australia
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