The 25 financial events that shaped the year 2015 

As we are close to move from year 2015 to year 2016, OneStopBrokers has collected and presents the major Financial events happened in 2015.

2015 was a year that the Eurozone was almost collapsed. We all witnessed a possible Grexit but also heard about Brexit and Fixit. Oil and Gold prices fell at the lowest position while big scandals hit the world and FED raised interest rates first time since 2006. 

1) EU Tax increased in digital content 

With the new year, 2015, a change in fiscal rules in the European Union is increasing the tax on many purchases of digital content like e-books and smartphone applications. Tax experts say Europe’s revamped rules could add up to an extra $1 billion in annual tax revenue for European governments.

2) Lithuania adopt the euro

With the beginning of new year 2015, Lithuania has become the 19th European country to adopt the euro. Lithuania is among the fastest growing economies in Europe.

3) The Swiss National Bank shock the financial world

Right in the middle of January, The Swiss National Bank shock the financial world with its decision to discontinue the minimum exchange rate of CHF 1.20 per euro. Banks, brokers and individual investors were left with hundreds of millions of dollars in losses.

4) Swiss Bank secret is finished. Lebanon said will not abandon its banking secrecy law

Early at the beginning of 2015 Switzerland announced that has agreed to start sharing financial information with the European Union, making it much harder for Europeans to hide wealth from tax authorities. According to data compiled by the consulting firm Deloitte, Swiss banks hold $2 trillion of foreigners’ money, more than any other country.

At the same time, leading Bankers in Lebanon said that will not abandon its banking secrecy law but will continue to cooperate with the United States and other nations in the exchange of tax information and the fight against money laundering. Lebanon adopted the banking secrecy law in 1956 in a bid to attract Lebanese and foreign deposits.

5) Cyprus lifted the last remaining capital controls

In April of 2015, after 2 years of deep financial crisis that included the wound up of the island’s second-biggest lender and seized of deposits, Cyprus announced that is lifting the last remaining capital controls. Cyprus received a €10bn bailout from the EU and International Monetary Fund (IMF) after its biggest banks nearly collapsed in March 2013 because of huge losses on their Greek investments.

6) What about Russia?

2015 was in financial scope very active year for Russia. On April, Chairperson of Russia’s Central Bank announced that the country is going to gradually move away from international ratings to Russian ones. At that time, Russia’s sovereign rating was downgraded below the investment grade by S&P and Moody’s. On May, Russian President Vladimir Putin ratified an accord to set up a $100 billion reserve fund rival to the IMF. The fund is meant to shield the BRICS against “short-term liquidity pressures” and promote greater cooperation between the five member countries.

The end of 2015 is coming with two major financial announcements from Russia. First, Russia wants to launch its own crude benchmark in 2016 and see its domestic oil blends compete with Brent and WTI and second Russian central bank issues new payment cards to take on Visa and MasterCard. Thirty-five Russian banks have agreed to participate in the launch of a new national payments card intended to challenge the dominance of Visa and MasterCard.

7) Islamic Banking landed in the Heart Of Europe

Early in April of 2015, the Islamic Banking landed in the Heart Of Europe. Kuveyt Turk (KT) Bank has obtained a full banking license, making it the first Islamic bank in Germany.

8) Saudi Arabia opened its stock exchange to direct foreign investors

On April, one of the most eagerly awaited economic reforms in Gulf region in recent times was announced. Saudi Arabia‘s market regulator said that the opening of the kingdom’s stock exchange to direct foreign investors will take place on June 15. Saudi market, is the largest in the Gulf with a capitalisation of around $510 billion.

9) 26 African countries signed a potentially historic free-trade

In May, the leaders of 26 African countries signed a potentially historic free-trade pact by creating a common market spanning half the continent from Cairo to Cape Town. The deal on the Tripartite Free Trade Area (TFTA) caps five years of negotiations to set up a framework for preferential tariffs easing the movement of goods in an area home to 625 million people.

10) $9 billion penalty

2015 was a year with many fines imposed on major Global Banks. The record penalty imposition was against BNP Paribas SA of a total $9 billion for violating U.S. economic sanctions. BNP pleaded guilty in June 2014 to illegally funneling billions of dollars through the U.S. financial system for clients in Sudan, Iran and Cuba—countries designated as state sponsors of terror and subject to U.S. embargoes at the time of the misconduct.

11) Greek Crisis

The anxiety of a Grexit was on the peek following a No vote of the Greek referendum. With the No vote, Greece rejected austerity measures demanded in return for bailout money. Following the referendum’s results, Oil prices fell sharply while euro pulled down.
All seemed that a Grexit was near. Finally, after a week of big uncertainty eurozone leaders said they would give Greece another bailout provided that the government implements a round of austerity measures. Stock markets in Europe rose the following trading day while the the crisis seems to be temporarily averted.

12) Chaos in China’s stock market

China’s stock market was in Chaos. China’s stock markets were in the midst of a crash, and with panic spreading, authorities have stepped in with drastic measures to prevent a looming disaster. The Shanghai Composite soared 180 per cent in a spectacular bull run which came to an abrupt end mid June.

13) The historic deal with Iran

2015 was the year of a landmark nuclear deal struck between Tehran and world powers. On August 12, Switzerland became the first country to Lift Iran Sanctions. The country’s governing Federal Council decided to lift a ban on precious-metals transactions with Iranian state entities, and end requirements to report trade in Iranian petrochemical products and transport of Iranian crude oil, among other measures. After years of sanctions, Iranian Oil goes back on the Market.

14) The world’s largest natural gas fields of Egypt

The end of August came with an announcement from the Italian energy group Eni saying it has found one of the world’s largest natural gas fields off Egypt’s coast. According to Eni, this historic discovery will be able to transform the energy scenario of Egypt.

15) The scandals in VW and in China’s biggest brokerage firm

2015 was also the year of big scandals as Volkswagen AG admitted to cheating on U.S. air pollution tests for years. The shares of VW that time plunged as much as 22 percent while investigations begun on VW cars and are expanding to more than 50 models from brands including BMW, Mercedes, Ford, Volvo, Nissan and Jaguar Land Rover.
On September, News coming from China reported that the president of China’s biggest brokerage has been caught in Beijing’s widening probe of insider trading. Cheng Boming, the president of Citic Securities, was under investigations for “insider dealing and leaking inside information,” the company reported.

16) First prosecution in Libor scandal

The Libor scandal. After years of invetsigations, the first brokers to face prosecution in the global Libor investigation over allegations they helped traders from various panel banks to manipulate the rate by acting as middlemen went on trial in London at the beginning of October. All six men standing trial are accused of conspiring with Tom Hayes, a former Tokyo-based trader for UBS who later joined Citigroup, and others to manipulate Libor tied to the Japanese yen.

17) The year of the world’s biggest Trade Agreement (TPP) 

2015 was also the year that the world’s biggest Trade Agreement (TPP) was concluded. The TPP is one of the world’s most extensive trade agreements, bringing together 12 Pacific rim countries, including the US and Japan. The member countries of the TPP account for some 40% of the global economy.
While TPP was concluded, US and EU opened the 11th round of free-trade talks on a huge transatlantic trade treaty. Negotiations on TTIP began in July 2013 and a US-EU deal would tie together two giant economies that are home to some 850 million people and account for about half of global output.

18) China is trying to make its currency more lucrative

China raises central rate of the yuan by 341 basis points to 6.3154 against the US dollar, the largest amount in a decade on November 02, To make the currency more lucrative, China had also said it will consider a trial programme allowing individuals in the Shanghai free trade zone to directly buy overseas assets and is also looking at opening up yuan-denominated bonds to trading by foreign companies.

19) The markets after Paris Attacks 

Following the attacks in Paris, the euro was sold heavily in Asian trading and fell to a six-month low. Stock markets in Asia Pacific have fallen sharply while in Europe, futures trade pointed to sharp falls in the main markets.

20) what about Fixit?

In 2015 we have heard about Grexit and Brexit. But what about Fixit? A Finnish exit of the single currency. A 50,000 strong petition has forced Finland’s parliament to debate whether to quit the 19-country euro zone. Finland’s parliament will debate next year whether to quit the euro, a senior parliamentary official said.

21) The gold price sank

Early in December, Gold sank to the lowest level in more than five years while Silver and platinum dropped to multiyear. The fall of Precious metals price was after Federal Reserve Chair Janet Yellen signaled her confidence in the U.S. economy.

22) Oil price is falling

In the middle of December, Oil Prices end at nearly Seven-Year Lows at below $37 a barrel. Last time oil was cheaper than that was in the depths of the Great Recession in February 2009. It reached a peak of nearly $108 per barrel in June 2014. New data showed OPEC is still pumping like there is no tomorrow.

23) FED raises interest rates

FED raises interest rates first time since 2006. The Federal Reserve’s 25-basis-point increase was almost a decade in the making and easily one of the most telegraphed in history. Global stocks, dollar jumped.

24) The Saudi Arabia’s 2016 Budget

Saudi Arabia, the world’s top crude exporter for more than a decade, reveals cuts plan to shrink budget deficit. The 2016 budget marks biggest shakeup in years and includes politically sensitive reforms. Among others, the government plans to introduce VAT in coordination with other countries in the region.

25) Bitcoin is one of 2015′s biggest winners 

Bitcoin, the digital currency heralded as a potential successor to the global monetary system, is up about 37 percent against the U.S. dollar since the beginning of the year.

 

 

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