Calls for Simplifying ESG-Related Rules Grow Louder in Europe
A group that advises the European Commission is calling for significant changes to the rules for corporate reporting of sustainable business activities.
The Platform on Sustainable Finance is recommending the European Union's Taxonomy Regulation be revised to make it easier for companies to decide which metrics are material to report. The regulation, which was adopted in 2020, has been renounced by some companies for being overly complicated and of limited use.
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Los Angeles Times
an hour ago
- Los Angeles Times
Consumer sentiment rises for 1st time this year as inflation remains tame
WASHINGTON — Consumer sentiment increased in June for the first time in six months, the latest sign that Americans' views of the economy have improved as inflation has stayed tame and the Trump administration has reached a truce in its trade fight with China. The preliminary reading of the University of Michigan's closely watched consumer sentiment index, released Friday, jumped 16% from 52.2 to 60.5. The large increase followed steady drops that left the preliminary number last month at the second-lowest level in the nearly 75-year history of the survey. Consumer sentiment is still down 20% compared with December 2024. 'Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed,' Joanne Hsu, director of the survey, said in a written statement. 'However, consumers still perceive wide-ranging downside risks to the economy.' Americans have largely taken a darker view of the economy's future after President Donald Trump unleashed a wide-ranging trade war, imposing steep tariffs on China, the European Union, and dozens of other countries. Yet in April Trump postponed a set of sweeping tariffs on about 60 nations and last month reached a temporary truce with China, after both sides had sharply ratcheted up tariffs on each other. The Conference Board's consumer confidence index, released in late May, also increased after five straight declines that were linked to anxiety over tariffs. U.S. duties remain elevated compared with historical levels, but so far they have not worsened overall inflation. Prices rose just 2.4% in May compared with a year ago, up slightly from 2.3% in April. Still, most economists expect tariffs to hit harder in the coming months. Consumer confidence is sharply divided by political outlook, with Republicans feeling much better about the economy under Trump than Democrats. Democratic sentiment about the economy was much higher under Biden, while Republican views were low. This month, however, sentiment did improve among supporters of both parties and independents. Consumers' inflation expectations — basically a measure of how worried people are about future inflation — dropped this month, which will be welcomed by the inflation-fighters at the Federal Reserve. Inflation expectations can become self-fulfilling, because if people worry price increases will get worse, they can take steps — such as demanding higher pay — that push prices even higher. The Fed meets next week, and is expected to keep its key short-term interest rate unchanged at about 4.3%. Rugaber writes for the Associated Press.
Yahoo
7 hours ago
- Yahoo
Europe Delays Stricter Banking Rules to Keep ‘Level Playing Field' With US Rivals
The European Union's executive arm is holding off on implementing new banking rules that could be tantamount to putting a potato sack around the legs of the region's lenders in the middle of a 100-yard dash against their US counterparts. The European Commission announced Thursday that the so-called Fundamental Review of the Trading Book, a boring technocratic name if there ever was one, will be delayed one year until 2027. It would place stricter rules on the region's investment-bank trading desks at a time when the US seems increasingly less inclined to impose similar regulations of its own. READ ALSO: Just How Much Data Does the Fed Need to Cut Rates? and Retail Investors Risk Ominous Opportunity Cost With Private Investments, Moody's Warns The new rules are part of the Basel III international banking reforms that were introduced in 2017 and designed in response to the 2008 financial crisis. Basel III is meant to create global standards for the way banks measure risk and enhance their ability to withstand shocks (a.k.a. prevent another systemic implosion worthy of an Oscar-winning Matt Damon-narrated documentary). Specifically, the Fundamental Review of the Trading Book will tighten how banks measure and hold reserves against their capital markets activities, zeroing in on investment banking. Investment banking, of course, is on an earnings tear on both sides of the Atlantic, with trading desks cashing in on volatile equities even as US tariff policy has curbed M&A activity. JPMorgan Chase and Morgan Stanley reported record revenue from their equity traders in the first quarter, while investment banking fees rose 12% at JPMorgan and 8% at Morgan Stanley. Deutsche Bank, Germany's largest lender, reported its highest quarterly pre-tax profit in 14 years in the first quarter, with its trading unit netting record revenues. Income at France's largest bank, BNP Paribas, slipped in its latest quarter, but the equities desk was a bright spot with a record result. Were the EU to implement the new rules now, however, the region's investment banks could look across the Atlantic and see a US administration less inclined to follow suit: Last year, the Federal Reserve softened its proposed Basel III rules after intense lobbying from the banking industry. That was even before the second Trump administration, which promised a deregulation-focused agenda, came into power. Last month, the Financial Times reported that US officials plan to roll back bank capital requirements in the next few months. In January, as Trump entered office, the UK put its own new capital rules on hold until 2027, with the Bank of England stating that it wanted to see what the US does first, in the interest of its own 'competitiveness and growth considerations.' The European Commission made a similar case Thursday, noting that 'concerns regarding the international level playing field and the impact on EU banks remain high.' Waiting Game: Banks are still waiting for a potential recovery in dealmaking, which would further boost investment fees, but that will require clarity from the Trump administration on trade policy. On May 29, Goldman Sachs President John Waldron told a conference that he saw a 'quite good' outlook for investment banking, adding that the 'pipeline is strong all over the world.' He did, however, flag volatility as an obstacle to deals. Earlier this week, Bank of America CEO Brian Brian Moynihan said at a conference that his bank expects investment banking fees to fall to $1.2 billion in the second quarter from $1.6 billion a year earlier. He said that's 'not where we want to be' but also flagged that there are 'great prospects.' This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.
Yahoo
10 hours ago
- Yahoo
US opposes lowering G7 cap on Russian oil, Bloomberg reports
The United States is opposing a proposal by other Group of Seven nations to lower the price cap on Russian oil, Bloomberg reported on June 13. Citing unnamed sources, Bloomberg said the U.S. remains opposed to reducing the cap from $60 to $45 per barrel – a position it first took earlier this year when Treasury Secretary Scott Bessent declined to support a similar effort. The price cap, introduced in December 2022 as a measure to limit the Kremlin's ability to finance its war against Ukraine, prohibits Western companies from shipping, insuring, or otherwise servicing Russian oil sold above $60 per barrel. Despite U.S. resistance, the European Union and United Kingdom – backed by other European G7 countries and Canada – have said they are prepared to move forward with the proposal, even without Washington's endorsement. One source told Bloomberg that the EU and U.K. could explore lowering the cap without the U.S., as most of Russia's oil is transported in European waters. However, a unified G7 agreement would carry greater impact if it could be enforced by the U.S. The price cap debate has become more urgent as oil prices, which had fallen below the $60 cap in recent months, surged following Israel's strikes against Iran in the past 24 hours. G7 leaders will revisit the price cap discussion during the upcoming summit, hosted by Canada from June 15-17 in Kananaskis County, Alberta. The summit agenda will also include topics such as support for Ukraine in the Russian war, global economic stability, digital transformation, and climate change. The G7 currently includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The European Union is also represented in the group. Read also: Israel-Iran war could provide economic boost Russia needs to continue fight against Ukraine We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
