Headlines

The planned move of the European Banking Authority’s headquarters from London to Paris will reduce the UK’s influence over the rules governing European finance, experts said on Tuesday. EU foreign ministers meeting in Brussels on Monday voted for the EBA to shift its headquarters from London to Paris after Brexit, the Financial Times reported. The EBA is responsible for writing standards that EU banks should abide by — how to calculate potential losses on risky loans, for example — as well as carrying out stress tests on them to safeguard the financial system.

The Greek government on Tuesday unveiled an ambitious draft budget for next year, the latest sign the country is making progress in its economic recovery after years of painful austerity and international bailouts, the International New York Times reported. The government projected that the economy will grow 2.5 percent next year, after a 1.6 percent anticipated increase this year, a further sign of Greece’s confidence as it looks to wean itself off the financial assistance it has relied on for the last eight years.

Chinese developers such as China Vanke and Country Garden are increasingly turning to the securitisation market as an alternative fund-raising channel as the onshore bond market remains mostly inaccessible, the International New York Times reported on a Reuters story. Property companies are in particular stepping up the securitisation of receivables from property sales, providing them with funds to develop other projects.

Chinese central bank governor Zhou Xiaochuan said growth prospects have improved in the world's second-largest economy, but its monetary policy remains prudent and neutral, the International New York Times reported on a Reuters story. Earlier this week, China published upbeat data showing its economy got off to a strong start to 2017, supported by bank lending, a government infrastructure spree and a long-sought resurgence in private investment.

Venezuela’s efforts to restructure its debt may have triggered an initial stampede for the exits, but some investment funds are maintaining their portfolios or even beefing them up, betting that other investors’ distress could spell opportunity, Reuters reported. President Nicolas Maduro spooked bondholders this month when he announced plans to restructure some $60 billion in bonds as his socialist government struggles with an economic crisis brought on by years of mismanagement. Yet Maduro also said the country would keep servicing its obligations for now.

Embattled billionaire Patrick Drahi sought to shore up the plunging stock price at Altice NV, the phone and cable company weighed down by $50 billion in debt, assuring investors he won’t sell new shares to raise cash, Bloomberg News reported. “Altice confirms that it is not in preparation of a cash raising by means of an equity or equity-linked issuance and has no intention to pursue such action within the group including Altice USA,” the Amsterdam-based company said in a statement published at 12:30 a.m. Monday.

Toshiba Corp.’s plan to raise more money may bring in vocal investors more willing to take an active role in the electronics maker’s affairs, Bloomberg News reported. David Einhorn’s Greenlight Capital, Daniel Loeb’s Third Point and other investors have agreed to buy 600 billion yen ($5.4 billion) worth of newly issued shares, an extra cushion of cash on top of the already-agreed 2 trillion-yen sale of the Tokyo-based company’s chips business to a group led by Bain Capital.

In attempting to head off a Bernie Madoff moment, China has set the stage for an even deeper bond market rout, Bloomberg News reported. Ten-year government note yields last week hit the psychologically important 4 percent level as investors braced for sweeping rules to curb risks in the country's $15 trillion asset-management industry.Caving into social pressure, banks in China have been bailing out wealth-management products that have gone bad. That's not going to be allowed come June 2019.

Soured loans sitting on the books of euro zone banks are holding back growth and creating a systemic risk, so a resolution is urgent, European Central Bank Governing Council member Bostjan Jazbec told a conference in Vienna on Monday, Reuters reported. “I think that there is an urgent need to clean up the banking system of all the NPLs (non-performing loans) that are still in the system,” Jazbec said.

Banca Carige SpA reached agreement with a group of banks to underwrite a share sale of about 500 million euros ($590 million) after key investors pledged their support, allowing the lender to proceed with its restructuring plan, Bloomberg News reported. Malacalza Investimenti, Carige’s main investor, agreed to buy 17.6 percent of the stock, while the second-biggest shareholder Gabriele Volpi agreed to oversubscribe to the offer, increasing his stake to 9.9 percent from 6 percent, the Genoa-based lender said in a statement early Saturday.