In the pre-2008 lending boom, American banks sold their dodgiest “subprime” loans to investors around the world. When the U.S. housing bubble burst and borrowers defaulted en masse, a global financial crisis ensued. Brussels now wants to loosen the rules governing the practice, meaning banks would need to put aside less capital against the loans
Despite transatlantic tensions, several U.S. groups are expected to announce major investment projects, including logistics group Prologis, which will invest around €6.4 billion in new logistics facilities and data centers, and Amazon (€300 million). British digital bank Revolut will also invest €1 billion and ask French authorities for a banking license, while Spanish telecom infrastructure
Even when large-cap stocks lose, they still find a way to win. It’s been a rocky year for the S&P 500, but the mega-cap-heavy index has still easily beaten its peers with a relatively modest 5.2% loss. For comparison, the mid-cap-dense S&P 400 and small-cap-oriented S&P 600 have sold off by 6.9% and 10%, respectively,