Endgame for US Basel III negotiations The shockwaves from the Global Financial Crisis (GFC) are still apparent, at least in the sphere of regulation, with the US banking industry currently engaged in an unprecedented lobbying campaign against proposed new rules to Basel III – Basel IV or the so-called “Basel Endgame”. In
European equities back in vogue Beset by multiple crises and lackluster growth for over a decade, European equity market underperformance had become ingrained in investor expectations. However, since bottoming out in October 2022, they have been a surprise outperformer. Can this last? For the best part of 15 years, a litany of
Inflation divergences: Implications for monetary policy Inflation dynamics across developed economies are diverging. US inflation data has come in “hot” so far in 2024, but inflation in Europe has eased, falling short of expectations. While the Fed is opting to look through the data for now and sticking to its
Renewables growth strong but still off required pace The world increased its global renewable energy capacity in 2023 by around 500 gigawatts (GW) to over 4,000 GW, according to the International Energy Agency (IEA). While this rate of growth in capacity (50% higher than in 2022) – the fastest in
Navigating inflation: Soft landing on a moving target Amid strong signs that the aggressive tightening cycle implemented by monetary authorities to combat inflation may have run its course – with interest rates set to head lower later this year – markets are jubilant. However, some central bankers and economists caution that these celebrations
ETFs – popular as ever, with increased specialization Exchange-traded funds (ETFs) are one of the major financial innovations of recent decades, their growing popularity reflected in an ever-rising share of assets under management. Global ETF assets hit the USD 10 trillion mark this year, of which the US accounts for the vast majority
Fossil fuels and net zero – can they ever be compatible? The road to net zero is a complicated journey with multiple diversions, forks, and confusing terrain, not least exemplified by the contention that it can be achieved while actually increasing fossil fuel production. Climate change objectives are typically articulated
Basel III Endgame: US banks to be brought into line with Basel III The announcement of new proposals – referred to as the “Basel III Endgame” – to bring the regulatory capital framework in the United States into line with the final provisions of Basel III is well timed following well-publicized instances of the
Credit cycle on the turn “Higher for longer” is a mantra with which observers of the global interest rate regime have been familiar with for some time. As central banks worldwide remain resolved to stay the course of rate rises to counter obstinate inflation, so the effects of ‘normalized’ rates are beginning to bite
Open banking – A global perspective It is more than a decade since open banking arrived on the scene to a reluctant banking sector. That is just one reason why it has yet to reach its potential but it is in less developed markets where its impact promises to be revolutionary. Open banking
