The bank blamed a tough March and April for a 27 pct drop in Q2 fixed-income trading. That’s at odds with both market data and larger rivals – JPMorgan, for one, was well up on last year as of May. It doesn’t help that newly private Jefferies’ opacity makes comparisons tricky.
The rich world summit could come up with a substantive agreement on corporate tax avoidance. It might be an important step towards an efficient global system. But it can’t do much without a broader consensus. Leaders need to be tax reform evangelists, both at home and abroad.
The country’s plan to hike energy prices is a welcome reduction in a $20 billion subsidy bill. But inflation could surge, raising the risk of capital outflows. That leaves the central bank no room to offset the fiscal tightening; sacrificing GDP growth is the only option.
The telecom company had a $93 bln bid for Telefonica blocked by Madrid, according to a Spanish newspaper. The target has denied the story. But it’s a sign of the problem AT&T faces: a lofty stock multiple makes M&A tempting, but it seems shut out of both domestic and foreign deals.
The election of moderate cleric Hassan Rohani to the presidency showed the level of public discontent with Iran’s ruling hardliners. A radical change in foreign policy, allowing an economic turnaround, is unlikely. But the balance of power in Tehran has definitely shifted.
The city-state is forcing lenders to set aside up to $9.6 bln in extra reserves as punishment for rate-rigging offences. With rates low, the costs will be smaller than recent mega-fines. And proposed new rules mean future misbehaviour will be met with more conventional justice.
Monte dei Paschi’s stock jumped after the Italian bank proposed removing the voting rules favouring its controlling foundation. The move will allow the stricken lender to attract new capital, and Brussels to approve state aid. Not that there was much choice.