First Read
Hits & Takes
JLN Staff
The Crypto-Evolved event in New York on Wednesday still has some tickets available. In fact, you can click on THIS LINK and sign up with a 25% discount for being a reader of this newsletter. Please take a look at the promotional video we produced, starring TT’s Mike Unetich for more information on the conference.~JJL
Join DePaul University for the upcoming Federal Trade Commission event: “Decrypting #Cryptocurrency Scams.” Speakers include representatives from the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, and the Chamber of Digital Commerce. And our friend and DePaul alum Colleen Sullivan of CMT Digital Limited will be a panelist.~JJL
Aaron Lucchetti has joined the publishing desk at the Wall Street Journal as a senior editor overseeing coverage of finance and markets.~JJL
George Will, who left the Republican Party in 2016, urges conservatives to vote against Donald Trump. Will spoke at the FIA EXPO in recent years, and he and I are both members of the Emil Verban Society.~JJL
One for the calendar. Chicago-Kent College Of Law is hosting a blockchain law event called Block(Legal)Tech, the college’s first daylong event dedicated to the legal aspects of blockchain technology on Thursday, August 9, 2018. It will feature presentations and panel discussions from top experts on the law of distributed ledger systems, tokenized assets, and cryptoasset-based funding.~JK
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OCC Launches New Brand Identity
OCC
Aligns With Growing Role as Industry Thought Leader and Influencer
OCC, the world’s largest equity derivatives clearing organization, announced today the launch of a new brand identity that aligns with its increasingly visible role as a systemically important financial market utility, influential thought leader, and steward of the U.S. exchange-listed options industry.
****You down with OCC? Yeah you know me.~SD
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The Spread – Week of 6/18 to 6/22
JohnLothianNews.com
We’re back with our weekly options news recaps!
Watch the video and see the stories referenced here »
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China, Europe Warn Trade War Could Trigger Global Recession
Bloomberg News
Both sides ‘firmly oppose’ unilateralism, Xi aide Liu He says; U.S. to release plan on restricting China investment in tech
China and the European Union vowed to oppose trade protectionism in an apparent rebuke to the U.S., saying unilateral actions risked pushing the world into a recession.
/jlne.ws/2lvPn9p
****** Are you ready for the Trade War?~JJL
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Trump’s Trade War Could Shut Cheesemakers Out of Foreign Markets; With other countries raising tariffs to American products and signing trade deals without the United States, the American cheesemaker is increasingly standing alone.
By Ana Swanson – NY Times
It’s a common observation here that you can’t turn off the cows — not for Christmas, and not for a trade war.
/jlne.ws/2tCirjd
****** Blessed are the cheesemakers, for they shall spread goodness around the world.~JJL
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Cryptocurrencies; Fiat Currencies; Trust; Fraud; Jurisdiction; Administrative Law Judges
Gary DeWaal – Bridging the Week
Last week, the Bank for International Settlements strongly criticized cryptocurrencies, claiming that trust in digital tokens could disappear at any time because of the “fragility of the decentralized consensus through which transactions are recorded.” Moreover, BIS said that if cryptocurrencies are successful, their use could crash the Internet. BIS contrasted the instability of cryptocurrencies with the general stability and global acceptance of fiat currencies and current payment mechanisms. Venezuelan bolivars anyone? Separately, the Commodity Futures Trading Commission requested a federal appeals court to review and reverse a recent adverse decision against it potentially undercutting its authority to bring fraud cases against persons transacting in commodities where no derivatives are involved and even where leveraged commodity transactions involving retail persons are at play.
bit.ly/2KiHphU
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Friday’s Top Three
Our top read story on Friday was a top read story on Thursday from a different publication. Marketwatch’s Day trader tries out ‘demo’ platform, ends up with actual $5 billion position grabbed your attention for the interesting but frightening case of a retail trader giving trading a try on a live trading system, all the while thinking, “Hey, it’s a demo.” Second was the FT’s The rise of a new generation of anti-Americans; Condemnations of the US are becoming routine – and may not end when Trump departs, about the damage one man can do. Third went to Business Insider’s ‘We hope your class will accept our invitation:’ NYSE just responded to a letter from someone claiming to be a 10th grader
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MarketsWiki Stats
128,536,329 pages viewed; 23,165 pages; 213,678 edits
MarketsWiki Statistics
Lead Stories
Ex-Goldman Exec Pushes ’70s Fix for Bond Market’s Big Problem
Nick Baker and Matthew Leising – Bloomberg
After GSessions flop, Chris White launches BondCliQ quote feed; Former NYSE CEO Niederauer invests, sees parallels to Nasdaq
Chris White wants to drag corporate-bond trading into the 21st century. Or at least the late 20th century. With a new platform called BondCliQ, White, who made his name at Goldman Sachs as a bond-trading technology expert, hopes to fix a seemingly intractable problem with corporate bonds: that even in the digital age, investors are often flying blind. That’s because most big trades still get done by haggling with a handful of big banks.
/jlne.ws/2lvTnXp
BIS warns of ‘disciplining force’ of financial markets; Italian bond ructions show governments have little space to fill void left by stimulus
Claire Jones in Paris – FT
The “disciplining force” of financial markets will leave debt-laden governments with limited room to boost growth as central banks ditch their crisis-era stimulus, the head of the Bank for International Settlements has warned.
/jlne.ws/2lzwDpy
U.S. Plans Curbs on Chinese Investment, Citing Security Risk
Saleha Mohsin and Jenny Leonard – Bloomberg
Tough stance said to have reluctant support from Mnuchin; Possible approach would be two-track CFIUS review process
The Treasury Department is planning to heighten scrutiny of Chinese investments in sensitive U.S. industries under an emergency law, putting Washington’s trade war with Beijing on a potentially irreversible course.
/jlne.ws/2luEVPw
Erdogan Triumph Takes Turkey Into the Era of One-Man Rule
Ben Holland – Bloomberg
Main challenger concedes defeat but says contest ‘wasn’t fair’; President’s allies also gain majority in parliamentary vote
Recep Tayyip Erdogan, modern Turkey’s longest-serving ruler, won a mandate to govern with sweeping new powers after a double victory in presidential and parliamentary elections.
/jlne.ws/2lBDxL7
How the Last Commodity Funds Will Survive the Algo Age: ‘Adapt or Die’; Despite the recent rally in raw materials, hedge funds that trade commodities keep shuttering
Stephanie Yang – WSJ
Raw materials have staged a powerful rally over the past year, but that hasn’t helped some of the biggest commodities hedge funds, which are closing up shop to a degree not seen since at least the turn of the century.
/jlne.ws/2tAlQPl
Order and Execution Management Systems Increasingly Indispensable
Kevin McPartland and Brad Tingley – Greenwich Associates
Technology spending by asset managers, hedge funds and other buy-side firms is quickly catching up to compensation expenses. It now accounts for 40% of the total budget, up from just below one-third only two years ago. Nearly one-quarter of those technology dollars are spent on access to order and execution management systems (aka, OMS and EMS).
/goo.gl/XA8khr
SEC Probes Whether Companies Rounded Up Earnings Per Share
Dave Michaels – WSJ
Federal regulators are investigating the case of the missing “4,” exploring the numeral’s conspicuous absence in quarterly reports that could mean companies have improperly rounded up their earnings per share to the next highest cent, according to people familiar with the matter.
/on.wsj.com/2MRvS7B
Meanderful: Liquidity dancing
Matt Hurd – Meanderful
Liquidity misconceptions in finance are some of the annoying itches I have wanted to scratch for a while. This is a meander that scratches that itch.
I won’t meander anything newsworthy for most market professionals here. If you’re a professional, I’d save your time. Nevertheless, this may be a reasonable reference to point to if you’re asked about liquidity.
bit.ly/2Ka6Dvu
Upstarts Crash Wall Street’s $7 Billion Capital-Markets Party; Ex-bankers from Goldman Sachs, JPMorgan hang out shingles to advise companies on securities offerings
Maureen Farrell and Liz Hoffman – WSJ
When Twitter Inc. TWTR 1.41% was looking to raise $1 billion from investors earlier this month, it put out the usual calls to Wall Street banks.
/jlne.ws/2lyE68r
European Investment Bank raises £1bn 5-year Sonia-based debt; Bond sale pioneers use of alternative reference rate to scandal-hit Libor
Kate Allen and Philip Stafford in London – FT
The European Investment Bank has pioneered the use of the reformed interest rate benchmark Sonia for bond pricing, by selling £1bn of debt that is linked to the alternative for scandal-tarnished Libor benchmark.
/jlne.ws/2lzy3QU
Banks May Be Using Lehman-Style Trick to Disguise Debt
John Glover – Bloomberg
Debt may be within limits just four times a year, BIS says; Repo allows banks to deflate balance sheets at reporting time
Banks may be disguising their borrowings in a way similar to that used by Lehman Brothers Holdings Inc., with debt ratios falling within limits imposed by regulators just four times a year.
/jlne.ws/2lyngqd
German asset managers call for ‘unhindered access’ to City post-Brexit
James Booth – City AM
The association that represents German asset managers has called for “unhindered access” to investment services provided by the City after the UK leaves the EU.
/jlne.ws/2lwl5mP
Tech’s Titans Tiptoe Toward Monopoly; Amazon, Facebook and Google may be repeating the history of steel, utility, rail and telegraph empires past—while Apple appears vulnerable
Christopher Mims – WSJ
Imagine a not-too-distant future in which trustbusters force Facebook FB 0.12% to sell off Instagram and WhatsApp. Imagine a time when Amazon’s cloud and delivery services are so dominant the company is broken up like AT&T . Imagine Google’s search or YouTube becoming regulated monopolies, like electricity and water.
/jlne.ws/2lzeCaY
Exchanges, OTC and Clearing
Three kids and a flute: How India and Singapore can end the NSE-SGX dispute; A minor domestic quarrel has turned into a major court battle over who gets to trade the benchmark Indian index
Andy Mukherjee – Business Standard
The path to ending the custody dispute between the National Stock Exchange of India Ltd. and Singapore Exchange Ltd. passes through a parable involving three kids and a flute. A minor domestic quarrel has turned into a major court battle over who gets to trade the benchmark Indian index.
/jlne.ws/2lvUciV
BSE, NSE to impose charge on high algo OTR in equity segment from Jun 29; Algorithmic or algo trading refers to high-frequency and automated execution of trades on the stock exchanges through pre-programmed software platforms installed on servers
Press Trust of India
Leading exchanges BSE and NSE have said that charges for high algo order to trade ratio (OTR) will be levied in the equity segment from June 29. The bourses currently levy charges for high algo OTR in equity derivatives and currency derivatives segments.
/jlne.ws/2lySOMI
Trade certificates from 8 am to 10 pm via the Frankfurt Stock Exchange
Eurex
Investors can now trade around one million certificates and warrants on the Frankfurt Stock Exchange from 8 am to 10 pm – one hour earlier in the morning and two hours longer in the evening. For the first time, trading hours in Frankfurt will be extended to 22:00.
/jlne.ws/2tAv1zj
Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange Closed for Canada Day
TMX
Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange will be closed on Monday, July 2, 2018, for the Canada Day holiday.
/jlne.ws/2yF8C9N
ICE Brent Crude Marks 30th Year as Leading Global Oil Benchmark; TAIFEX to Launch Taiwanese Dollar Brent Futures
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, marked the 30th anniversary of its Brent futures complex, which serves as the primary reference price for global crude oil.
/jlne.ws/2tC3ygL
15th Consecutive Nasdaq Closing Cross Sets Record for Number of Shares Traded During 2018 Russell US Indexes Reconstitution
GlobeNewswire – Nasdaq
Nasdaq (Nasdaq:NDAQ) today announced the Nasdaq Closing Cross had a record day as it was used for the 15th consecutive year to rebalance Nasdaq-listed securities in the entire family of Russell U.S. Indexes, part of leading global index provider FTSE Russell, during their annual reconstitution.
/jlne.ws/2tI18NR
CME Group Adds Two Alt Data Providers to DataMine
WatersTechnology.com
Derivatives marketplace CME Group added Orbital Insight and TellusLabs datasets for predictive analytics alongside CME Group’s historical market data database sourced on DataMine.
/jlne.ws/2tCSKPm
Mauritian Exchange Sees $6.5 Billion Gold Trading in Five Years
Kamlesh Bhuckory – Bloomberg
Mindex expects to be trading 156 tons of bullion by 2023; Operations will include a vault, derivatives trading
A Mauritian commodity exchange that plans to start operating in the fourth quarter expects to trade $6.5 billion of gold annually within five years, part of the Indian Ocean island nation’s plan to become a financial gateway to Africa, its chairman said.
/jlne.ws/2tAeyv3
The UK Government Department For International Trade Supports GMEX In The Creation Of A New Exchange Trading Ecosystem In Mauritius – Providing Local And International Support For Project To Deliver A Mauritius Based International Derivatives And Commodities Exchange Ecosystem
Mondovisione
GMEX Group, a global provider of multi-asset exchange trading, post trade business solutions and technology is pleased to confirm that, through the GMEX Market Advancement Programme (GMEX MAP), the company has taken a leading role in the initial consortium to launch the Mauritius International Derivatives and Commodities Exchange (MINDEX), envisaged to become a multi-commodity and derivatives exchange platform with full regulatory oversight by the Mauritius Financial Services Commission.
/jlne.ws/2tCUatn
Fintech
A Plea for AI That Serves Humanity Instead of Replacing It
Tom Simonite – WIRED
Sixty-two years ago this summer, Dartmouth professor John McCarthy coined the term artificial intelligence. Joi Ito, director of MIT’s Media Lab, has come to think it’s unhelpful.
/goo.gl/emCT6j
U.S. Faces ‘Unprecedented Threat’ From China on Tech Takeover
Anthony Capaccio – Bloomberg
U.S. intelligence sees it as ‘flagship’ for U.S. tech access; National intelligence director outlines threat to lawmakers
China’s “Thousand Talents” program to tap into its citizens educated or employed in the U.S. is a key part of multi-pronged efforts to transfer, replicate and eventually overtake U.S. military and commercial technology, according to American intelligence officials.
/jlne.ws/2lyJNmy
EU Crackdown Hasn’t Made U.S. Tech Change Its Behavior; Apple and Google have found easy ways to circumvent the antitrust commissioner’s demands.
Leonid Bershidsky – Bloomberg
A pattern is emerging in the war between the European Union’s antitrust authorities and U.S. tech companies. The changes that Google and Apple made after adverse rulings and large fines appear to be little but window-dressing, and left intact the problems the penalties were intended to solve.
/jlne.ws/2lBkkZD
AT&T to buy online ad exchange firm AppNexus
Reuters Staff
AT&T Inc said on Monday it would acquire online advertisement exchange company AppNexus Inc.
/jlne.ws/2yFULQH
Cryptocurrencies
Crypto community welcomes US regulator’s stance on Ether; Director of the division of corporate finance at the SEC says sales of Ether are not securities transactions.
Hayley McDowell – The Trade
The cryptocurrency industry breathed a sigh of relief after the US financial watchdog stated it does not consider the Ether cryptocurrency to be a security.
/jlne.ws/2lys0fv
Mt. Gox Creditors Get New Avenue for Recovering Bitcoin Losses
Lily Katz – Bloomberg
Things may be looking up for creditors of Mt. Gox, once the world’s biggest Bitcoin exchange that ultimately went down in flames after saying thousands of Bitcoins had disappeared.
/jlne.ws/2lBFgA5
Japan Increases Vigil on Cryptocurrency Sector, Using Credit Evaluation to Prevent Criminal Activities
Deepan Datta – Crypto News
With increasing concerns on money laundering and cyber frauds using cryptocurrencies, Japan is taking steps to tighten its regulation of the cryptocurrency sector. After initially dropped plans to crack down on privacy coins like Zcash, Dash and Monero, the Japanese government said that major credit agencies will evaluate cryptocurrency users to prevent utilization of digital assets in laundering money generated from illegal operations.
bit.ly/2KoGfSc
Galaxy, the crypto-bank founded by Mike Novogratz, is investing hundreds of millions of dollars in projects that’ll lure Wall Street to bitcoin
Frank Chaparro – Business Insider
Famed hedge funder-turned-crypto enthusiast Mike Novogratz launched merchant bank Galaxy Digital earlier this year and its venture capital arm is already hard at work.
/jlne.ws/2yFYRZ8
Chief Strategy Officer of Bitfinex and Tether Is Departing
Matthew Leising – Bloomberg
Bitfinex and Tether have faced questions over past year; Potter made decision as Bitfinex steps away from the U.S.
The chief strategy officer of cryptocurrency exchange Bitfinex is leaving the company. “As Bitfinex pivots away from the U.S., I felt that, as a U.S. person, it was time for me to rethink my position as a member of the executive team,” Phil Potter said in an emailed statement. He’s also stepping down from the same role at Bitfinex affiliate Tether Ltd., which issues a digital token.
/jlne.ws/2lyAmU4
Inside a bitcoin billionaire’s master plan for his futuristic office and $21 million penthouse : Miniature luxury cars, holographic receptionists, and secret tunnels
Zoë Bernard – Business Insider
Anthony Di Iorio made his fortune as an early adopter of hot cryptocurrencies bitcoin and ethereum. Now, the cryptocurrency billionaire is spending some of his cash on two video game-inspired real estate projects in Toronto.
/jlne.ws/2lwlvJV
Jack Ma Slams Bitcoin Speculation While Launching Remittance Service Built on Blockchain
Stella Yifan Xie – WSJ
Chinese billionaire Jack Ma criticized people who have been speculating on bitcoin, pledging to avoid the asset class and saying the blockchain technology underpinning it should be instead used to solve social problems.
/jlne.ws/2tCv3qm
Politics
Trump Associates Facing Mounting Legal Bills Turn to Financial Backers for Help; Michael Caputo’s GoFundMe.com page and the Patriot Legal Expense Fund Trust are just two pools of money easing the burden as probes continue
Julie Bykowicz – WSJ
Michael Caputo was facing $130,000 in legal bills with no clear way to pay on the May morning that special counsel Robert Mueller’s investigators interviewed him about Russian interference in the U.S. presidential election.
/jlne.ws/2lvoBOp
Mnuchin Suffers Setback in U.S. Plan to Limit China Investments
Saleha Mohsin and Jenny Leonard – Bloomberg
Mnuchin has pressed for more conciliatory stance on trade; Treasury said to target ‘Made in China 2025’ technologies
The Trump administration’s plan to deploy some of the most restrictive investment limits in its economic arsenal against China marks a setback for Treasury Secretary Steven Mnuchin’s effort to take a less confrontational approach toward Beijing.
/jlne.ws/2lvXaUB
Inside The Trump-Backed Campaign To Push Angela Merkel Out Of Power; The president, his allies and U.S. government officials are offering public and private support to anti-immigrant politicians hoping to topple Merkel by July 1.
Akbar Shahid Ahmed – Huffington Post
It’s not new to hear U.S. officials rooting for regime change. It’s just been a while since they’ve talked about it with regard to Berlin.
/jlne.ws/2lvVlad
The U.S. Was Just Downgraded from a ‘Full’ to ‘Flawed Democracy’
Lucinda Shen – Fortune
While U.S. citizens could once claim to be part of the 9% of people in the world governed by a “full democracy,” they are now part of the near 45% who live in a “flawed democracy.”
/jlne.ws/2lzxTJi
Trump’s Trade War Sets Bigger Booby Trap for U.S. Economy
Rich Miller – Bloomberg
Mounting tensions could undermine business confidence in U.S.; Tariffs may offset the positive economic impact of tax cuts
The escalating trade battle between the U.S. and the rest of the world is raising the risk of a meaningful slowing in an otherwise vibrant American economy.
/jlne.ws/2lvRnyn
Are Trump’s Asian bankers about to call in their loans?
William Pesek – South China Morning Post
As Donald Trump throws grenades at the global trading system, investors are caught in the crossfire of tit-for-tat retaliatory steps. China is hitting back. So are Canada, the European Union and even India. But recent moves by Russia may be most ominous of all.
/jlne.ws/2lymPMB
Donald Trump is a racist leading our country toward disaster
Neil Steinberg – Chicago Suntimes
Let’s consider the lives of a few average Chicagoans, chosen at random. There’s … John Wayne Gacy. He was … let’s see … a pedophile who murdered 33 boys and buried them in his crawl space. There’s …Richard Speck, who raped and killed eight student nurses in a single night of terror. A third? Umm, Jeffrey Dahmer was a Chicagoan — well, he actually lived in Milwaukee but once cruised down to Chicago to find a victim, which qualifies him. Not to forget typical Chicagoan H.H. Holmes, whose grisly killings during the World’s Columbian Exposition are chronicled in “The Devil in the White City.”
/jlne.ws/2lzeU1y
Jeremy Corbyn Has a Terrible Economic Idea; Central bankers can’t be stewards of productivity, that’s a politician’s job.
Ferdinando Giugliano – Bloomberg
The U.K. Labour Party’s plan to set the Bank of England a productivity target must rank among the worst ideas ever conceived for a central bank.
/jlne.ws/2lxdsMT
Europe’s Monetary Union Is Still Unfinished Work; The euro was a bold creation, but it won’t succeed without further reform.
The Editors – Bloomberg
Leaders of the European Union meet in Brussels this week to discuss the future of the euro zone. In recent years, governments have strengthened the system a lot, making it less likely that a crisis in one member state would jeopardize the currency area as a whole. Even so, they haven’t done enough.
/jlne.ws/2lwjqxB
Trump’s latest threat to U.S. trade partners: Drop tariffs or face consequences
Mike Murphy – MarketWatch
President Donald Trump on Sunday issued new threats against America’s trade partners, calling for them to remove trade barriers and tariffs, or face the consequences.
/jlne.ws/2lx7Kur
Trump gets ready to slap China with investment restrictions, export controls
Doug Palmer and Adam Behsud – Politico
Round two of President Donald Trump’s trade assault on Beijing is expected by the end of this week, when the Treasury Department rolls out new restrictions on Chinese investment in the United States and on the technologies that can be sold to China.
/jlne.ws/2lyfAEp
Regulation
Betterment slapped with $400,000 fine from Finra
Investment News
The Financial Industry Regulatory Authority Inc. has fined the digital advice company Betterment $400,000 for violating the customer protection rule and not properly maintaining its books and records.
bit.ly/2K2aAGM
Obama-Era Investor Protection Rule Is Dead
Tara Siegel Bernard – NY Times
Retirement investors, you’re back on your own. Just a year after it took partial effect, the so-called fiduciary rule — a requirement that financial professionals put their customers’ interests ahead of their own with retirement accounts — has effectively died.
/jlne.ws/2lvkP7w
French regulator rules out campaign to restrict UK fund managers; Financial watchdog denies pursuit of highly contentious changes to ‘delegation’ rules
Chris Flood – FT
The French financial regulator has said it will not seek changes to “delegation” rules — a move that could have restricted UK fund managers serving overseas clients after Brexit.
/jlne.ws/2luHP6S
ASIC accepts court enforceable undertaking from Vantage Global Prime to address systems and controls inadequacies within its CFD business
ASIC
ASIC has accepted a court enforceable undertaking from Vantage Global Prime Pty Limited (Vantage).
/jlne.ws/2yF4A1f
ESMA publishes responses to its Consultation on amendments to the EMIR Clearing Obligation under the Securitisation Regulation
ESMA
The European Securities and Markets Authority (ESMA) has published the responses received to its Consultation on amendments to the EMIR Clearing Obligation under the Securitisation Regulation.
/jlne.ws/2yCv8jy
Investing and Trading
What’s the Yield Curve? ‘A Powerful Signal of Recessions’ Has Wall Street’s Attention
Matt Phillips – WSJ
You can try and play down a trade war with China. You can brush off the impact of rising oil prices on corporate earnings. But if you’re in the business of making economic predictions, it has become very difficult to disregard an important signal from the bond market.
/jlne.ws/2lxwi6P
Future of Big Oil Increasingly Shaped by Fate of Global Gas
Kevin Crowley and Kelly Gilblom – Bloomberg
LNG demand is expected to grow fastest of all fossil fuels; Shell’s 2016 purchase of BG Group helped major catch Exxon
Big Oil’s fortunes are becoming tied more closely to natural gas than ever before.
/jlne.ws/2lwo2DV
Morgan Stanley Thinks the Turkish Lira Is Headed for Record Lows
Constantine Courcoulas – Bloomberg
Buying the Turkish lira may have been an easy punt after Sunday’s election, but it may be better to sell a rally in the currency.
/jlne.ws/2lAkII2
Trump’s Dow Jones rally no longer the best in history
Carleton English – NY Post
The Trump rally has some competition. The gains in the Dow Jones industrial average since President Trump was elected, which had been by far the best in the past 50 years for any first term president at the six-, 12- and 18-month marks, are now just the second-best.
/jlne.ws/2tyTWU7
Institutions
Neil Joseph: Optimising equity execution; Neil Joseph, European head of equity trading at JP Morgan Asset Management, talks to John Brazier about his 16 years at the business, the underlying importance of new trading technology and how the desk is handling ever-increasing volumes.
John Brazier – The Trade
In many ways Neil Joseph is a perfect advert for career mobility at JP Morgan Asset Management. The firm’s European head of equity trading first joined the business around the turn of the millennium on a placement year during his university studies, about the same time that JP Morgan was being acquired by Chase Manhattan in a $30 billion deal.
/jlne.ws/2lw14Nf
Commerzbank sets AI to work writing analyst reports; German finance group’s experiment is latest attempt to cut costs by automation
Laura Noonan, Investment Banking Correspondent – FT
Commerzbank is experimenting with artificial intelligence technology that automatically generates sports reports to see if it can write basic analyst notes, as Mifid II forces banks across the world to trim research costs.
/jlne.ws/2lxuGtN
Why Deutsche Bank Can’t Just Shake Off Its Problems
Steven Arons – Bloomberg
It would be an understatement to say Deutsche Bank AG is going through a difficult period. It chalked up its third straight annual loss in 2017. The new chief executive officer, Christian Sewing, has unveiled the bank’s fourth turnaround plan in as many years, yet its shares have fallen to a record low. Almost daily, senior executives are being pushed out or are jumping ship. The U.S. Federal Reserve has placed the lender on its list of troubled banks. And next week, the Fed will say whether Deutsche Bank passed a stress test that measures the adequacy of its capital and risk controls.
/jlne.ws/2lu8EIe
Commonwealth Bank Cleans House; It’s crucial distractions be kept to a minimum.
David Fickling – Bloomberg
Someone at Commonwealth Bank of Australia seems to have been reading the Sermon on the Mount.
/jlne.ws/2lvnpug
Regions
China to Unleash $108 Billion in Reserve Cut for Some Banks
Bloomberg News
Of the total, 500 billion yuan is for debt-equity swaps; 200 billion yuan is for smaller banks to lend to small firms
China’s central bank will cut the amount of cash some lenders must hold as reserves, unlocking about 700 billion yuan ($108 billion) of liquidity, as it seeks to control leverage and support smaller companies.
/jlne.ws/De3xaB
China Won’t Target U.S. Companies in Trade Dispute, SCMP Says
Tian Chen – Bloomberg
China has no plan to target U.S. companies operating in the nation amid escalating trade tensions, as that would run counter to Beijing’s goal of attracting foreign investments, South China Morning Post reported on Sunday, citing unidentified people.
/jlne.ws/EPr8SL
For Australian Banks, a Tough Year Gets Harder
Robb M. Stewart – WSJ
For Australian banks, a bad year is getting worse thanks to the Federal Reserve.
/jlne.ws/2luIPrE
Russian Lenders Need Western Money, Top Banker Says; Success depends on how Moscow build relations with the outside world
Anatoly Kurmanaev – WSJ
To fix Russia’s broken banks, the Kremlin needs improved relations with the West and to regain access to foreign capital.
/jlne.ws/2lyEOCg
Iraq Wheat Farmers May Slash Plantings as Turks Fill New Dam
Khalid Al Ansary – Bloomberg
Wheat imports ‘of course’ need to rise: Iraq ministry official; USDA has forecast a drop in Iraq’s wheat imports for 2018-19
Wheat farmers in Iraq, the Middle East’s second-biggest buyer of the grain, may have to sharply reduce plantings for next season’s crop as neighboring Turkey diverts water from the Tigris River for its largest hydroelectric project.
/jlne.ws/2lw95lf
Solar Records Set to Be Broken in Europe’s Heatwave
Rachel Morison – Bloomberg
A heat-wave hitting Britain and France will extend to the rest of northwest Europe by next week, breaking solar power records.
/jlne.ws/2lvZefp
As Tide Goes Out, This Polish Fund Manager Looks for Easy In, Easy Out Trades
Adrian Krajewski and Konrad Krasuski – Bloomberg
Trades that ‘aren’t explosive’ are priority in 2018: PZU TFI; EM rally has hit a wall as stimulus roll-back gets serious
With global stimulus on the ebb, divining for the diminishing pools of emerging-market liquidity has become a top priority for Poland’s second-biggest investment fund.
/jlne.ws/2lBGDPf
Cash-Rich Japan Offers a Haven From U.S. Zombies; Its companies have remained immune to the lure of easy credit.
By Shuli Ren – Bloomberg
There are few places for investors to hide when a global trade war is about to erupt and the U.S. Treasury yield curve threatens to invert. Japan may be one.
/jlne.ws/2lvh5Tw
China Takes an Edge in Stocks to a Trade War; Its market appears better situated to withstand an assault.
Nir Kaissar – Bloomberg
The saber-rattling for a U.S.-China trade war is becoming louder, and many observers are speculating about which country will blink first. One important variable will be the resilience of each country’s stock market, given the potential for mayhem from a melting market. So it’s worth asking which one is more likely to stand its ground.
/jlne.ws/2luFOrk
More Chinese unicorns prefer to raise capital in Hong Kong than any other market, survey shows; Four of every 10 so-called unicorns picked Hong Kong as the preferred market for an IPO, according to a PwC survey of 101 of these companies, each with at least US$1 billion in valuation
Maggie Zhang – South China Morning Post
Hong Kong stands out as the preferred market for raising capital among China’s most valuable companies, according to a survey that vindicates last year’s overhaul in the city’s stock listing rules.
/jlne.ws/2tA48eV
China’s app for everything files for huge Hong Kong IPO
Sherisse Pham – CNN
Meituan-Dianping, a massive online services platform in China, has filed to go public in Hong Kong in a move that’s expected to raise billions of dollars from investors.
/jlne.ws/2tAmbS7
China is unleashing more than $100 billion into its economy
Daniel Shane – CNN
China is freeing up more than $100 billion to help its economy, which is facing fears of a slowdown and an escalating trade war.
/jlne.ws/2tCizzd
After MSCI’s questionable upgrade for Argentina and Saudi Arabia, do its powers need to be downgraded?
South China Morning Post
Nicholas Spiro says that following MSCI’s delayed inclusion of China, granting emerging market status to Saudi Arabia and Argentina may leave many wondering whether it, and other providers, are the best guides to investment opportunity
/jlne.ws/2tFt1WO
Malaysia arrests Najib ex-aide in 1MDB probe: media
Reuters Staff
Malaysian authorities have made the first arrest in a renewed probe into the multi-billion dollar scandal at state fund 1MDB, remanding a former aide of ousted prime minister Najib Razak to assist in investigations, Bernama news reported on Monday.
/jlne.ws/2tCwTHI
A bond-trading secret that helped one Indian bank beat its peers; The answer, according to the head of treasury and global markets at Bank of Baroda, goes back to a contrarian bet taken two years ago
Anto Antony & Kartik Goyal – Business Standard
Kamal Mahajan says he’s being asked just one question: how did he make money as peers lost $4.4 billion during India’s worst bond-market rout in two decades?
/jlne.ws/2txt32A
Brexit
Banks’ plans for hard Brexit are ‘inadequate’; EU regulator’s warning contrasts with statements from Bank of England
Caroline Binham in London – FT
The EU’s top banking regulator has sounded the alarm over lenders’ “inadequate” level of planning for a hard Brexit, in a move likely to put it at odds with British supervisors.
/jlne.ws/2lypCW5
WWII Veteran Could Rescue Remainers as Brexit Likened to Dunkirk
Stephanie Bodoni – Bloomberg
Hearing in challenge over expat voter rights set for July 5; Uncertainty over U.K. departure set to trigger more lawsuits
One of Britain’s judges at the Court of Justice of the European Union described Brexit as a crisis for his home nation of Dunkirk proportions.
/jlne.ws/2lwmR7t
EU Businesses Cut U.K. Ties on Brexit and Want Britain Punished
Suzi Ring – Bloomberg
Survey finds 46 percent of firms have reduced U.K. investment; More than a third want Britain penalized in future trade deal
British businesses aren’t the only ones unhappy with the state of Brexit negotiations. Companies in the rest of the European Union aren’t thrilled either.
/jlne.ws/2lvY2bV
Brexit’s Big Short: How Pollsters Helped Hedge Funds Beat the Crash;mPrivate polls—and a timely ‘concession’ from the face of Leave—allowed the funds to make millions off the pound’s collapse.
Cam Simpson, Gavin Finch, Kit Chellel – Bloomberg
At 10 p.m. on June 23, 2016, Sky News projected the words “IN OR OUT” across the top of a London building as an orchestral score ratcheted up the tension. “In or out—it is too late to change your mind,” declared Adam Boulton, the veteran anchor, seated in a makeshift studio across from Big Ben. “The polls have closed in the U.K.’s historic referendum on EU membership.” Election nights are major productions for British broadcasters, but Brexit was bigger, with Sky viewers watching worldwide.
/jlne.ws/2lAjWL8
UK ministers take aim at business over Brexit warnings
Andrew MacAskill – Reuters
The British government and business leaders clashed in a deepening row over Brexit on Sunday after a senior minister accused companies of issuing “completely inappropriate” threats and undermining the prime minister.
/jlne.ws/2lvkgL7
Miscellaneous
A Decade on, the Fate of Madoff’s Mansions; The fallen financier’s real estate in New York, Palm Beach and the French Riviera were sold for restitution, but now the properties have a new life—and far bigger price tags.
By Katherine Clarke – WSJ
When real-estate agent Jason Haber first viewed Bernard Madoff’s penthouse on Manhattan’s Upper East Side in 2009, he saw Mr. Madoff’s personal belongings still in the apartment—as if the disgraced financier had just stepped out of the room. White polo shirts were stacked in a drawer. An electric shaver sat on the bathroom vanity.
/jlne.ws/2lubuwS
Goldman Alumni Network Gets Creative to Boost Nature Conservancy
Amanda L Gordon – Bloomberg
Conservation group raises $3.2 million, says cities next focus; At Battery gala, Bisignano, Ouderkirk dine under the stars
The vast network of Goldman Sachs alumni creating innovative financial instruments at the Nature Conservancy didn’t manage to innovate on where to hold their gala.
/jlne.ws/2lvi4TI
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