French President Emmanuel Macron said that if the UK wants its banks to retain free access to the European single market, Britain must contribute financially to the EU budget and submit to the authority of EU courts. The approach is commonly called the "Norway model" because that's Norway's relationship with the EU.
The House has passed a stopgap measure to keep the government open after today, but Democratic opposition seems likely to prevent passage in the Senate. Senate Majority Leader Mitch McConnell, R-Ky., didn't appear to have enough votes when the Senate adjourned late Thursday.
Bundesbank President Jens Weidmann has dismissed criticism from Christine Lagarde, managing director of the International Monetary Fund, that Germany's current-account and budget surpluses are excessive and that some cash reserves should be diverted to public spending. Lagarde contends lowering the surpluses would reduce global imbalance and curb protectionism, but Weidmann has countered an increase in public spending "would likely be a futile undertaking".
A European Commission report says that the value of nonperforming loans on banks' balance sheets is declining but that the total is still excessive. The commission plans to introduce "statutory prudential backstops" to ensure banks set aside enough capital to absorb losses from loans that go bad.
The European Commission is proposing that the European Court of Justice play a role in settling trade disputes between the EU and Switzerland, making it a possible model for Brexit.
The European Securities and Markets Authority is expected to publish updated guidance concerning post-trade reporting requirements for over-the-counter derivatives under the revised Markets in Financial Instruments Directive after reviewing industry comments, sources say.
The European Securities and Markets Authority has invited public comments on proposed restrictions to the sale of contracts for difference and binary options by spread-betting firms. The restrictions include limits on leverage and retail customer losses, as well as a standardised risk warning, for CFDs and a ban on selling binary options to retail customers.
The Chinese economy expanded 6.8% in the fourth quarter compared with Q4 of 2016, faster than expected. The development is expected to help policymakers, who are trying to reduce debt and pollution without reining in growth.
Financial-technology startup Visible Alpha has received a $38 million investment from Goldman Sachs, Wells Fargo, Banco Santander, Macquarie Group and others. Research-fee rules under Europe's revised Markets in Financial Instruments Directive have been a boon to Visible Alpha tools that gauge research quality, according to the firm.
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