Overview

• In an October 8 letter to G20 ministers, Andrew Bailey cautioned that rebounding asset prices may be out of line with an uncertain economic and geopolitical outlook, leaving markets vulnerable to a disorderly adjustment.
• The FSB highlighted rising sovereign debt and said vulnerabilities across the financial system remain elevated.
• The body will move from drafting new policy to monitoring and facilitating consistent implementation of existing global financial reforms across jurisdictions.
• An interim review led by former FSB chair Randal Quarles, due to the G20 next week, finds that full, timely and consistent implementation of agreed reforms has not been achieved.
• Days after the warning, President Donald Trump's threat of large new tariffs on China was linked to Wall Street's biggest fall in nearly six months, underscoring sensitivity to geopolitical shocks.