News 

Switzerland’s FINMA warns of risks stemming from transitioning away from LIBOR

“FINMA has identified three specific risks in connection with the replacement of LIBOR interest rates: legal risk, valuation risk and risks in connection with operational readiness” reports financefeeds.com. Inadequate preparation for the replacement of LIBOR interest rates (envisaged by the end of 2021), including Swiss franc LIBOR, hence represents a key risk.Among the main risks, according to the regulator, are those related to the discontinuation of LIBOR. LIBOR benchmark interest rates continue to be widely used in financial instruments, FINMA notes. Source: financefeeds.com

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News 

Goldman Sachs sees 10-year Treasury yields rising to 2% on “Phase One” trade deal

“Adding that while risks ahead are substantial, their base case remains for a trade agreement that includes a reduction in existing tariffs and avoids those due to take effect on 15 Dec” reports forexlive.com. Just to note, Goldman Sachs’ view for Treasuries next year is that they will end 2020 at around 2.25% “on account of the improved economic outlook and the removal of some tail risks i.e. trade war, Brexit”.As for the “Phase One” deal, I reckon there could be an initial hint of optimism but as soon as…

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AUD News 

Country ‘risks being dumping ground’ for cars with potent greenhouse gas

“Australia is at risk of becoming a dumping ground for cars pre-charged with a greenhouse gas 1,400 times more potent than carbon dioxide, industry groups warn” writes Royce Kurmelovs for theguardian.com. HFO-1234yf has no impact on the environment as a greenhouse gas, but is slightly more flammable under very specific circumstances. Source: theguardian.com

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Markets News Stocks 

Goldman Sachs just updated its definitive checklist for predicting stock market crashes — and its conclusion points to years of lower returns for investors

“He also unveiled an addition to the variables that go into Goldman Sachs’ bear market risk indicator” writes Finanzen Net Gmbh for businessinsider.com. They then set a threshold level for each one, and observed how each performed in the lead up to bear markets.Every variable that made the cut met or exceeded its threshold at least 60% of the time prior to bear markets since 1960.The indicator currently shows the risk of a bear market is fading and currently stands at 61%.The biggest downside risk for 2020 — and one…

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Markets News 

EU Won’t Let Stablecoins Enter Market Until Risks Are Addressed

“No global stablecoin project will begin operation in the European Union (EU) until the associated risks to monetary sovereignty are addressed, according to EU authorities” writes Helen Partz for cointelegraph.com. As such, solving the challenges raised by global stablecoins requires coordinated efforts from global jurisdictions, the authorities noted.If adopted on a global scale, stablecoins pose a threat to monetary sovereignty, the Council and the Commission argued.In their statement, the EU authorities have outlined multiple risks and issues associated with adoption of stablecoins — digital currencies pegged to another asset to…

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Crypto News 

Stablecoin Adoption Can Impact Economy, Warn Senior US Regulators

“A panel of senior financial regulators in the United States has warned the public about the purported risks of stablecoins and cryptocurrencies” writes William Suberg for cointelegraph.com. The FSOC was set up in 2008 to combat risks to the financial sector after the financial crisis.Financial regulators should review existing and planned digital asset arrangements and their risks, as appropriate.” The FSOC additionally mentioned Bitcoin (BTC) and other cryptocurrencies as part of its coverage.In its annual report for 2019, the regulators stated, “If a stablecoin became widely adopted as a means…

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News 

No Demand for a State Digital Currency in Japan: Central Bank Governor

“Bank of Japan (BOJ) Governor Haruhiko Kuroda said that there is no public demand for a central bank digital currency (CBDC) in the country” writes Adrian Zmudzinski for cointelegraph.com. Still, when it comes to global stablecoins such as Facebook’s Libra, Kuroda said the bank would take a more cautious approach.Meanwhile, countries worldwide are increasingly researching public and private digital currencies and stablecoins.Nevertheless, the Bank of Japan has been conducting technical and legal research on this matter in order to stand ready when the need for CBDC 13 may arise in…

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Markets News 

Australian housing risks have eased, top regulators say

“Banks have reined in lending following a public inquiry last year which found widespread misconduct and irresponsible lending tactics in the sector” writes Midwest Communications Inc for 95kqds.com. “Overall, near-term risks related to the housing market have lessened as housing market conditions nationally have improved,” the council said in its December quarterly statement released on Wednesday following a meeting on Nov. 29.MELBOURNE (Reuters) – Concerns over the risks from falling prices in Australia’s housing market have eased, but lenders need to do more to spur small business growth, the nation’s…

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News 

Facebook warns EU regulators seeking data access about privacy, liability risks

“We will not proceed unless regulators are satisfied, particularly U.S. regulators are satisfied, that we have ticked all the boxes,” he said” writes Midwest Communications Inc for 95kqds.com. BRUSSELS (Reuters) – Facebook warned European Union regulators on Monday against forcing tech giants to open their vast troves of data to rivals, saying such a move would carry privacy and liability risks.Clegg said there was also the question of liability, and who would bear the responsibility if things went wrong.”There is a fundamental tension between transferring people’s data, particularly when your…

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