Sunday , November 19 2017

Global banks said to consider Trump-related risk disclosures



The world’s biggest banks are poised to warn investors that President Donald Trump has the potential to roil global markets and impact their firms by redrawing regulations and limiting the free movement of employees, according to people familiar with the matter.
US and UK banks are considering adding to their risk disclosures or beefing up particular sections in their annual reports due later this month, according to people familiar with the drafting of the documents. They’d likely cite the incoming new administration as a potential source of heightened uncertainty, but stop short of mention Trump by name, they said.
Although banks stand to benefit from higher interest rates and Trump’s pledge to relax rules, heightened volatility could affect trading and a slowdown in global commerce may curtail dealmaking as the president turns his attention to trade policies with China and Mexico. Bank stocks have been on a bull run in recent weeks but some money managers say investors have ignored emerging political risks.
Warnings that the new US administration may be disruptive “would most likely have to be included, given the potential ramifications,” said Rob Smith, a partner in risk consulting at KPMG in London. “I would be very surprised if a particular institution called out Trump. Rather, they will explain the impacts in broader terms about US regulatory reassessments. He presents a risk, but there are also opportunities.”

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epa03751580 Traders work on the floor of the New York Stock Exchange at the start of the trading day in New York, New York, USA, 19 June 2013. Inflation remained minimal last month in the United States, leaving the rate-setting Federal Reserve flexibility when it issues monetary policy decisions 19 June in Washington.
Consumer prices rose a seasonally adjusted 0.1 per cent in May, following declines of 0.4 per cent in April and 0.2 per cent in March. Uncertainty about the Fed's plans has left world bond and equities markets yo-yoing in recent weeks. The Fed is scheduled to end its two-day regular meeting with a monetary policy statement at 2 pm (1800 GMT) Wednesday, followed by a closely watched press conference by bank chief Ben Bernanke.  EPA/JUSTIN LANE

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