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02.12.25 - 18:36
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BoE governor says it has not forgotten lessons of financial crisis, as it eases capital rules (The Guardian)
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Bank of England's move risks stoking concerns about weakening protections against UK bank failuresBusiness live – latest updatesThe Bank of England governor, Andrew Bailey, has attempted to reassure that the lessons of the 2008 financial crisis have not been forgotten, as he announced plans to loosen capital rules for high street banks for the first time since the global crash.The central bank announced on Tuesday that it will lower capital requirements related to risk-weighted assets by one percentage point to about 13%, reducing the amount lenders must hold in reserve. Continue reading......
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02.12.25 - 15:06
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Bitcoin Erases Some Losses, BOE UK Lender Stress Tests Show Resilience | The Opening Trade 12/2 (Bloomberg)
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Bitcoin halted its slide and stocks staged a cautious comeback as a global flight from risky assets eased.
The Bank of England cut its estimate of how much Tier 1 capital the UK's banking sector needs to around 13% of risk-weighted assets. The central bank also warned about growing risks from a profitable fixed-income hedge fund strategy known as the basis trade and called on market participants to manage their risk-taking to avoid a disruptive unwinding of trades that could prompt volatility in gilts.
The Opening Trade has everything you need to know as markets open across Europe. With analysis you won't find anywhere else, we break down the biggest stories of the day and speak to top guests who have skin in the game. Hosted by Anna Edwards and Guy Johnson. (Source: Bloomberg)...
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02.12.25 - 13:36
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BOE Warns of Growing Risks From Hedge Fund Basis Trades (Bloomberg)
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The Bank of England is warning about growing risks from a profitable fixed-income hedge fund strategy known as the basis trade, calling on market participants to manage their risk taking to avoid a disruptive unwinding of trades that could prompt volatility in gilts. Hedge fund net gilt repo borrowing — where they borrow cash by pledging gilts as collateral — reached close to £100 billion ($132 billion) in November, the central bank said Tuesday, the highest since data collection began. That compares to a £77 billion estimate in June. Bloomberg Global Finance Reporter Laura Noonan joins Stephen Carroll and Tom Mackenzie on Bloomberg radio to discuss. (Source: Bloomberg)...
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02.12.25 - 13:36
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Pound Slides Amid Dovish BoE Expectations (AFX)
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BRUSSELS (dpa-AFX) - The British pound weakened against other major currencies in the European session on Tuesday, as the U.K. Prime Minister Keir Starmer reiterates the need to reduce inflation a......
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02.12.25 - 08:24
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AI valuations heighten risk of ′sharp correction′ in stock markets, Bank of England warns – business live (The Guardian)
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Rolling coverage of the latest economic and financial news, as the Bank of England releases its Financial Stability Report Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.Risks to the financial stability of the UK have increased during 2025, the Bank of England is warning this morning, as it cites the risk of a stock market crash triggered by highly-valued AI companies.Equity valuations in the US are close to the most stretched they have been since the dot-com bubble, and in the UK since the global financial crisis (GFC). This heightens the risk of a sharp correction.By some industry estimates, AI infrastructure spending over the next five years could exceed five trillion US dollars. While AI hyperscalers will continue to fund much of this from their operating cash flows, approximately half is expected to be financed externally, mostly through debt.Deeper links between AI firms and credit markets, and increasing interconnections between those firm...
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