Page 25 - ARUBA TODAY

BUSINESS Tuesday 28 March 2017
A25

Stocks sink early on Washington worries before paring losses

STAN CHOE time, and the fact that we
AP Business Writer haven’t had a 1 percent
NEW YORK (AP) — Wor- down day for so long is ex-
ries that Washington may traordinary,” Manley said.
not be able to help busi- “But the things that are usu-
nesses as much as once ally responsible for a major
thought knocked stock market decline just don’t
indexes down hard early seem to be in place.”
Monday, but they clawed The S&P 500 has lost 1 per-
back most of their losses cent in a day just once
and ended the day mixed. since mid-October.
The Standard & Poor’s 500 Interest rates fell Monday.
index fell 2.39 points, or The yield on the 10-year
0.1 percent, to 2,341.59 Treasury dropped to 2.37
for its seventh drop in the percent from 2.41 percent
last eight days. The Dow late Friday. Just a couple
Jones industrial average weeks ago, it was above
sank 45.74, or 0.2 percent, 2.60 percent.
to 20,550.98, while the Nas- Bank stocks have tracked
daq composite index rose the movements of Treasury
11.64, or 0.2 percent, to yields recently, because
5,840.37. higher interest rates would
When trading opened for allow them to charge more
the day, it looked as if losses Trader Timothy Nick works on the floor of the New York Stock Exchange. Worries that Washington for loans and reap bigger
would be much worse. The may not be able to help businesses as much as once thought knocked stock indexes down hard profits.
S&P 500 sank from the start early Monday, but they clawed back most of their losses and ended the day mixed. Investors also expected fi-
and was down as much as (AP Photo/Richard Drew) nancial companies to be
0.9 percent. taxes, loosen regulations said John Manley, chief eq- translating into bigger prof- some of the biggest ben-
The weakness followed last for companies and institute uity strategist at Wells Fargo its for businesses, which are eficiaries of easier regula-
week’s failure by Republi- other corporate-friendly Funds Management. set to report their first-quar- tions with a Republican-led
cans to repeal the Afford- policies. “Trump lucked out when ter results in the coming White House.
able Care Act, something Indexes recovered most of he got elected president, weeks. Financial stocks in the S&P
they’ve been pledging to their losses in the afternoon, because it was just as earn- The Federal Reserve, mean- 500 dropped 0.5 percent,
do for years, which raised largely thanks to gains in ings were coming out of a while, is moving very slowly one of the larger losses
doubts that Washington hospital and other health two-year slumber,” he said. in raising interest rates and among the 11 sectors that
can push through promises care stocks. Tax cuts, de- “I think it’s been as much, is loath to apply the brakes make up the index. Mor-
to help businesses. regulation and other busi- if not more, about earnings to the economy too quick- gan Stanley fell 88 cents,
Investors have been antici- ness-friendly moves could as it’s been him” behind ly. or 2.1 percent, to $41.58,
pating that President Don- still happen, but even if they the 9.4 percent rise for the “Investors have to acknowl- and Capital One Financial
ald Trump and the Repub- don’t, the stock market has S&P 500 since Election Day. edge that a 5 percent cor- lost $1.67, or 2 percent, to
lican-led Congress will cut several pillars of support, An improving economy is rection can happen at any $82.13. q
Supervisor: UK banks need solid EU roots to access bloc

DAVID McHUGH European ones — could banking regulators were Central Bank’s supervisory ing oversight at an EU level
AP Business Writer lose access to the other 27 “prepared for any out- board overseeing banks at after national regulators
FRANKFURT, Germany (AP) EU countries if Britain opts come of the negotiations, the EU level. The single su- were seen as too willing to
— A top banking supervi- to break away from the and banks should be too.” pervisory mechanism was overlook looming trouble
sor says that British banks bloc’s single market. She warned that EU bank- created to provide bank- at their home banks. q
must put down solid roots if EU financial centers such ing officials would be cau-
they want European bank- as Frankfurt, Dublin and tious of banks shopping
ing licenses to keep access Paris are competing for among jurisdictions looking
after the UK leaves the Eu- any banking business that for easier rules.
ropean Union. might have to move. “As supervisors, we will not
Sabine Lautenschlaeger British Prime Minister There- participate in a race to the
said Monday that banks sa May has said she plans bottom,” she said.
seeking licenses in the EU to submit official notice on She noted that banks could
post-Brexit would need Wednesday that her coun- also seek access under an
“sufficient local staff and try intends to leave the Eu- arrangement known as
operational indepen- ropean Union and its pro- a “third-party branch,” in
dence.” European licens- visions for tariff-free trade which they would remain
ing authorities “will not ac- and free movement of under national supervision.
cept empty shell compa- workers within its borders. Some countries require lo-
nies,” she said. That follows a referendum cal bank branches to have
Banks currently can last June in which a ma- financial reserves to pro-
do business throughout the jority voted to leave. The tect them against losses,
28 EU countries by having a terms of Britain’s departure while others don’t. Lauten-
base in one of those states, will be the focus of talks schlaeger said that could
an arrangement called during a two-year negoti- be changed during an up-
“passporting.” Banks that ating period following the coming review of EU bank-
have their EU base in Lon- handing over of May’s let- ing legislation.
don — which includes ter to EU officials. Lautenschlaeger is vice-
British banks but also non- Lautenschlaeger said chair of the European