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BUSINESS Saturday 12 OctOber 2019
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Stocks surge on optimism about US-China trade talks

By ALEX VEIGA er kinds of loans, jumped to
STAN CHOE 1.74% from 1.65% late Thurs-
Associated Press day, a big move. The jump
Stocks marched higher in yields helped send bank
on Wall Street Friday after- stocks higher on expecta-
noon, riding investor op- tions of bigger profits for
timism that the U.S. and making loans. JPMorgan
China can make progress Chase rose 2.7%, and Bank
in their punishing trade war. of America climbed 2.5%.
The broad rally drove the Technology stocks, which
Dow Jones Industrial Aver- often do lots of business
age more than 470 points with China, also helped
higher and had the S&P power the indexes higher.
500 index on track to close Apple climbed 2.8%, and
out its first weekly gain in Broadcom added 3.1%.
four weeks. KEEPING SCORE: The S&P
Before meeting with Chi- 500 index was up 1.7%, as
nese Vice Premier Liu He of 3 p.m. Eastern time. Ear-
for trade talks at the White lier it had been up 1.9%. The
House, President Donald Dow climbed 474 points, or
Trump said, "Good things 1.8%, to 26,971 after earlier
are happening." Investors being up nearly 500 points.
are hopeful the two sides In this Oct. 2, 2019, file photo specialist Dilip Patel, right, works on the floor of the New York Stock The Nasdaq rose 2%. The
can reach at least a limited Exchange. Russell 2000 index of smaller
deal on trade and tamp Associated Press company stocks outpaced
down tensions that have the broader market with a
already dragged down in December. The worry anything here that shows to be a disaster that stops 2.6% gain.
manufacturing around the is that all the uncertainty forward progress," said Ben the global expansion.'" TAMPING DOWN TRADE TEN-
world. about global trade may Phillips, chief investment of- Treasury yields rose as in- SIONS: Markets around the
One set of U.S. tariffs is spill over into stronger areas ficer at EventShares. "If we vestors felt less need for world have swung sharply
scheduled to rise on Chi- of the economy, such as get there, that's enough safety and dumped bonds. on every morsel of progress
nese products next week, household spending, and for the market to say, 'OK, The yield on the 10-year or dissonance dribbling out
and another round of tariffs cause a recession. we're moving in the right di- Treasury, a benchmark for about the U.S.-China trade
is scheduled to take effect "The market is looking for rection and this isn't going mortgages and many oth- war.q

Fed approves rules loosening Dodd-Frank bank restrictions

WASHINGTON (AP) — The take that puts the financial
Federal Reserve is easing system at risk.
restrictions imposed on "Reducing the stringency of
banks following the 2008 bank capital requirements,
financial crisis, giving a vic- liquidity rules and stress
tory to the banking indus- testing makes large bank
try and President Donald failures more likely, while
Trump. watering down living wills
The Fed on Thursday ap- requirements magnifies
proved a set of rule chang- the economic devastation
es that implement legisla- caused by such failures," he
tion passed by Congress said.
last year to loosen restric- The living wills requirement
tions, particularly for small- was enacted by the 2010
er community banks, im- law to make sure financial
posed by the Dodd-Frank institutions have plans for
Act passed in 2010. winding down their opera-
Trump has often criticized tions in the event of a fail-
Dodd-Frank, which he says ure, so that taxpayers are
has hurt economic growth not left liable as they were
by making it harder for in the 2008 crisis.
banks to lend. The rules changes modify
The Fed's changes will ease the frequency the living
requirements on banks for In this Jan. 30, 2019, file photo Federal Reserve Chairman Jerome Powell speaks at a news confer- wills will have to be updat-
holding capital and cash ence in Washington. ed.
and also for the so-called Associated Press Rob Nichols, president of
living wills big banks must the American Bankers As-
develop in case they fail. lone no vote. She said she banking industry to loosen worst banking crisis since sociation, praised the Fed
The Fed approved the cap- believes the changes will restrictions imposed by the Great Recession of the for the changes, saying
ital and liquidity changes weaken critical safeguards the 2010 law. The law was 1930s. they would fulfill the 2018
and the modifications on governing the largest insti- backed by the Obama Gregg Gelzinis, a policy law aimed at tailoring gov-
living wills by 4-1 votes, tutions. administration with the aim analyst with the Center for ernment regulations to
with Fed board member The rules changes capped of preventing a replay of American Progress, said the better match each bank's
Lael Brainard casting the a multi-year effort by the the 2008 financial crisis, the rules changes are a mis- business model.q