First Read
Rumi Morales Announces Joining Outlier Ventures at “Launch, Lunch & Learn”
Sarah Rudolph – JLN
Rumi Morales, the former head of CME Ventures, is now a partner at the London-based blockchain investment company Outlier Ventures. She and Jamie Burke, the CEO of Outlier, announced the news and spoke about the company’s plans Wednesday to a packed room at the Connectory in Chicago’s Merchandise Mart. Morales will head up Outlier Ventures’ Chicago branch, which the company expects to be a launch pad for expansion into the rest of the U.S.
She and Burke said they are looking 3-5 years ahead of what’s going on in crypto and other technology right now, and are focused on the idea of a “convergence” of blockchain (or “distributed ledger technology”) with technologies such as AI, robotics and the Internet Of Things.
“It doesn’t make sense to silo these,” Morales said. “No technology exists in isolation.”
The firm is looking at providing “venture capital for the decentralized internet,” Burke said.
OV’s approach is as an early stage investor in open, tokenized digital economies, which are still a very nascent market, he added.
To read the rest of this story, go here
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Hits & Takes
JLN Staff
Yesterday we officially launched CryptoMarketsWiki.com.~JJL
Congratulations to Rumi Morales on her announcement yesterday of becoming a partner in Outlier Ventures.~JJL
Frank Tirado, head of the Options Industry Council, announced he is leaving the organization on July 31, after three years there.~JK
It’s not your imagination – Slack was down yesterday.~SD
If you haven’t been following our video series from FIA IDX in London, here is a rundown of the content thus far:
–Coalescing Liquidity, Periodically with Cboe’s Mark Hemsley
–Untangling the Execution Landscape with Fidessa’s Russell Thornton
–Brexit’s Influence on Global Markets with FIA’s Simon Puleston Jones
–Montréal Exchange’s Luc Fortin Says It’s All About The Time
–Born Tech’s Haworth on MiFID II’s Real-Time Problems
–TT’s Biondo Says AI Can Tackle Spoofing And More
–Stuart Williams Says ICE Interest Rates Heating Up ~SD
Eurex has named Jeffrey Tessler as Eurex Frankfurt and Eurex Clearing Chairman. From the board of Eurex Frankfurt, the number of board directors has shrunk from nine to three. Tessler and Pottmeyer will be joined by Hauke Stars. Previous members Richard Berliand, Serge Demolière, Martin Klaus, Susanne Klöss, Petra Roth and Jürg Spillmann have left the supervisory board.
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Two Studies on Options Use – Institutional Users and European Demand
Spencer Doar – JLN
Over the past two months, two studies commissioned by the Options Industry Council were released. The studies about the varying uses of options by different market participants were conducted Greenwich Associates and Burton-Taylor International Consulting, respectively.
/goo.gl/zHeVvf
****SD: This piece contains two videos featuring two speakers each – OIC’s Joe Cusick and Gary Delaney, Burton-Taylor’s Andy Nybo and Greenwich’s Richard Johnson. Is two-fer Thursday a thing?
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Former CME Ventures Head Joins Blockchain VC Firm
Sarah Hansen – Forbes
Venture capitalist Rumi Morales, the former head of CME Ventures and founder of the Goldman Sachs Global Markets Institute, has joined blockchain investment firm Outlier Ventures as a partner.
/jlne.ws/2Keotlc
***** Rumi is also the chair of the advisory committee we are setting up for CryptoMarketsWiki.com.~JJL
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Families earning $117,000 now qualify as “low income” in California’s Bay Area
Mark Strassmann – CBS News
A report out this week from the Department of Housing and Urban Development finds the median price for a single-family home in the Bay Area is now $935,000. A family earning $117,000 now qualifies as “low income” in the region.
/cbsn.ws/2KswBhb
**** So if you are a millionaire and feel a little guilty about it (for some reason), move to San Francisco and relive what it was like to be middle class.~JB
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Germany are out, sorry Goldman, UBS, football robots
Jamie Powell and Dan McCrum – Financial Times
Germany are out of the World Cup after losing 2-0 to South Korea. Cue general English bedlam and schadenfreud jokes.
While sad for a Teutonic nation with a proud footballing history, it’s also sad for Goldman Sachs’ Soccerbot 3000, which predicted the German nation to carry itself to the World Cup final over 2 weeks ago:
/on.ft.com/2IvwUD3
****Germany’s loss to South Korea allowed Mexico to advance. Mexican football fans gathered at the South Korean embassy and the South Korean ambassador came out to share some tequila with them.~JB
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Corporates raise $600,000 at SGX Bull Charge’s Charity Golf event
SGX
Proceeds from tournament almost double from last year; SGX Bull Charge raising funds for six adopted beneficiaries in 2018
SGX Bull Charge, Singapore Exchange’s (SGX) flagship charity initiative, today brought together 38 companies for its annual Charity Golf event, raising $600,000 for a good cause – almost doubling the proceeds from last year.
/jlne.ws/2Ivuq7D
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Wednesday’s Top Three
Our top stories of the day on Wednesday were all about markets – markets crashing, commodity markets and too many markets. Bloomberg’s Hedge Fund Managers See Echo of Past Crashes in Markets led the way. Next was PanXchange’s Julie Lerner‘s interesting editorial on why blockchain isn’t so easy for commodities markets in the FIA Marketvoice’s http://bit.ly/2tugaHGBlockchain for Physical Commodity Markets – A Realist’s Perspective. Third went to Seeking Alpha’s look at the growth of trading venues and the harm it has caused in Too Many Trading Platforms; Nothing New To Trade
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MarketsWiki Stats
128,695,168 pages viewed; 23,166 pages; 213,724 edits
MarketsWiki Statistics
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Lead Stories
Jeffrey Tessler elected as Eurex Frankfurt and Eurex Clearing Chairman
Eurex
Jeffrey Tessler has been appointed as Chairman at both Eurex Frankfurt and Eurex Clearing. He replaces Hugo Bänziger, who had held both mandates since 2002. He resigns at his own request. Gregor Pottmeyer was elected as vice chair.
/jlne.ws/2MuG9Wo
Euronext’s Irish exchange chief resigns; Deirdre Somers has resigned as CEO of Euronext Dublin and will be replaced by the Irish Stock Exchange’s regulatory chief, Daryl Byrne.
Hayley McDowell – The Trade
The chief executive of the Irish Stock Exchange (ISE) has resigned from her position just months after the exchange operator was acquired by Euronext.
/jlne.ws/2IA45VX
FBI Has 130 Cryptocurrency-Related Investigations, Agent Says
Lily Katz and Annie Massa – Bloomberg
The Federal Bureau of Investigation has 130 cases tied to cryptocurrencies, according to an agent speaking at a digital-asset industry conference in New York. The cases “threat tagged” to virtual currencies encompass crimes such as human trafficking, illicit drug sales, kidnapping and ransomware attacks, according to Kyle Armstrong, a supervisory special agent.
/bloom.bg/2KfWYru
Millennial money changes the game for US advisers; Growing demand for ethical exposure and ESG products presents challenges and opportunity
Alex Cardno – FT
Advisers are facing higher workloads and more exacting client expectations when creating bespoke products, as appetite for environmental, social and governance (ESG) investments grows.
/jlne.ws/2MuCUhG
The Amex ruling cements the domination of big companies; This decision will make it harder to bring even basic antitrust complaints
Barry Lynn – FT
In 1776, Adam Smith published The Wealth of Nations, in which he attacked monopolies and argued that markets governed by the decisions of individual buyers and sellers make people and societies richer and freer. When Americans declared their independence from the UK that same year, a main grievance was that they had been exploited and manipulated by the British East India Company trading monopoly.
/jlne.ws/2MxG7Nh
A New York Broker Dealer Is Getting Bought by a Crypto Exchange
Lily Katz – Bloomberg
Digital asset exchanges are seeking to comply with regulations; Uphold wants to serve as an alternative trading system
Uphold, an exchange for digital coins and currencies, agreed to acquire New York-based broker-dealer JNK Securities Corp., the latest push by a crypto platform to position itself in more regulated markets.
/jlne.ws/2IA2wr3
Nasdaq Stockholm Says MiFID II Creates New Conflicts of Interest
Hanna Hoikkala – Bloomberg
Europe’s revision of market rules was supposed to address a key conflict of interest in financial research. But in doing so, it may well have caused a “more controversial” conflict, according to Nasdaq Stockholm AB.
/jlne.ws/2Mv1RK1
U.K. Banks Warned Not to Get Caught With Pants Down on Crypto
John Glover and Edward Robinson – Bloomberg
The Bank of England warned U.K. lenders to do their homework before diving into the business of crypto currencies.
/jlne.ws/2IAaGj9
Binance suspends withdrawals and trading for second time in two days; Cryptocurrencies exchange cites ‘system upgrade’
Adam Samson in London – FT
One of the world’s biggest digital currencies exchanges suspended trading and withdrawals during North American and European trading hours due an abrupt “system upgrade”, a day after a lengthy outage.
/jlne.ws/2IyRaUf
Exchanges, OTC and Clearing
New CEO at Euronext Dublin
Euronext
Euronext announced today that Deirdre Somers has resigned from her position as CEO of Euronext Dublin. The Supervisory Board of Euronext N.V. has nominated Daryl Byrne as CEO of Euronext Dublin, Head of Debt & Funds Listings and ETFs and member of the Managing Board of Euronext N.V., subject to formal appointment by an Extraordinary Shareholders’ Meeting of Euronext N.V. and the usual regulatory non-objections. Deirdre and Daryl will transition over the summer.
/jlne.ws/2ID2wGY
Appointment of HKEX Risk Management Committee (Statutory) Member
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) welcomes Clement Lau, the new Executive Director (Monetary Management) of the Hong Kong Monetary Authority (HKMA), to its Risk Management Committee (Statutory) (RMC). His appointment was in accordance with the Securities and Futures Ordinance. Mr Lau replaced Henry Cheng, the HKMA’s former Executive Director (Monetary Management), on the RMC.
/jlne.ws/2ID9mfC
IEX updates
Matt Hurd – Meanderful
It’s been at least fifteen minutes since I complained about IEX. It must be time for another meander. Mr Brad Katsuyama’s misleading of investors would be amusing if it wasn’t so dangerous. His false and misleading statements have undermined confidence in the US National Market System over the last few years.
/goo.gl/naMcCn
FX Options: Extension of trading hours
Eurex
FX trading takes place around the clock all over the world, starting on Monday morning New Zealand time and closing Friday afternoon New York time. Following the introduction of extended trading and clearing hours (23 hours) for FX Futures in February 2017, the Management Board of Eurex Deutschland decided to extend also trading of FX Options to 23 hours with effect from 2 July 2018.
/jlne.ws/2Ivu013
We welcome our new supervisory board members
Eurex
Jeffrey Tessler has been appointed as chairman at both Eurex Frankfurt and Eurex Clearing. He replaces Hugo Bänziger, who had held both mandates since 2002.
/jlne.ws/2MwTCgu
Global Investor names Eurex “Exchange of the Year”
Eurex
Good news: for the second time in a row, we received the Global Investor Award in the category “Exchange of the Year”. The award measures excellence in the exchange world across asset classes and geographies.
/jlne.ws/2IAeRvl
EuroCCP to clear trades for Borsa Italiana; EuroCCP will become an additional CCP for Borsa Italiana’s cash equity and ETF markets.
By Hayley McDowell – The Trade
Borsa Italiana has granted permission for EuroCCP to act as a central clearing counterparty (CCP). EuroCCP will gain access to Borsa Italiana’s trade feed for the clearing of shares and depository receipts for markets including Mercato Telematico Azionario (MTA), BIt Global Equity Market (BIt GEM), as well as ETFs traded on the ETF+ market.
/jlne.ws/2Mv40W5
Boerse Stuttgart offers bond settlement in foreign currencies; 7,000 debt securities (bonds) in 20 different foreign currencies already tradeable without need for conversion into euros // New FXplus technical platform
Boerse Stuttgart
Since April, Boerse Stuttgart has been offering trading participants the possibility to choose to settle foreign currency bond transactions not only in Euro but also in the currency of nominal value. The facility rests on the new developed technical trading platform FXplus (MIC: XSTF). To participate in trading of foreign currency securities, the already existing connection to the Boerse Stuttgart trading system Xitaro can be used. Additionally required is an application for activation as well as corresponding accounts which are enabled for the settlement of securities in the foreign currency. There is no need to adjust anything for existing trading and the settlement in EUR.
/jlne.ws/2IxAUTx
Inaugural Green Bond lists on NZX Debt Market today
NZX
NZX welcomes the first Green Bond to be listed on the NZX Debt Market today by Auckland Council (AKC110).
/jlne.ws/2tPXqll
The World Federation Of Exchanges Publishes Revised ESG Guidance & Metrics
Mondovisione
The World Federation of Exchanges (“WFE”), the global industry group for exchanges and CCPs, has today published a revised edition of its Environmental, Social & Governance (ESG) Guidance & Metrics.
/jlne.ws/2lFh6Ve
Fintech
Hang Seng Bank to relax loans rules, using big data and fintech to replace old-fashioned banking
Enoch Yiu – South China Morning Post
Hang Seng Bank, the 85-year-old Hong Kong lender owned by HSBC, said it will allow existing customers with good credit histories to apply for personal loans, as it uses big data analysis and financial technology to replace old-fashioned banking practises.
/jlne.ws/2Kg1HJP
In fintech bet, Line to launch overseas cryptocurrency exchange
Kazuaki Nagata – The Japan Times
Line Corp. said Thursday it will launch an overseas cryptocurrency exchange next month, saying the financial field will play a key role in its growth strategy from now on.
During its annual conference in Chiba Prefecture to unveil new services for its messaging app, the company emphasized the potential for growth offered by so-called financial technologies, or fintech.
bit.ly/2MsOIkE
UK Fintech ipushpull Appoints Former Goldman Sachs EMEA CIO Damian Sutcliffe As Advisor Samantha Hurst – Crowdfund Insider
UK-based fintech firm ipushpull announced on Wednesday it has appointed Damian Sutcliffe as its new advisor. Sutcliffe served for more than 20 years at Goldman Sachs and was the EMEA CIO, Head of Regulatory Architecture and Global Head of Enterprise Data before retiring. ipushpull reported that Sutcliffe also has a range of senior management roles in London, Tokyo, and New York.
bit.ly/2MxR6pZ
How Blockchain Technology is Spurring the Fintech Industry
Melissa Thompson – Axcess News
The Fintech industry is built around providing technological solutions to advance the financial services sectors. Having grown the worlds of online banking and more recently mobile banking, fintech is booming more than ever before.
In a report released this week, the Fintech Blockchain sector is predicted to soar from 2018’s expected $370.3 Million to $6,228.2 Million by the end of 2023. The 75.9% Compound Annual Growth Rate over five years comes about because of the advancement of blockchain technology and the willingness of financial institutions to embrace it.
bit.ly/2MvZkz4
How the FXCM API Spurs the Growth of Automated Trading
Jason Rogers – FXCM
Algorithmic trading has permeated the financial world and continues to gain popularity as alternative data becomes more accessible and new markets are developing. Traders can now register with a brokerage and create a program to trade according to predetermined parameters from their living room—no expensive cables, data subscription or traditional trading floor required. Algorithmic trading is quickly outpacing traditional discretionary investing in financial markets from equities to futures to FX.
/jlne.ws/2Kv4hKY
Cryptocurrencies
New crypto platform with ex London Stock Exchange strategy chief on board aims for institutional investors
Jasper Jolly – City AM
A new trading platform for cryptocurrencies targeted at institutional investors will launch today in London with a former top executive at the London Stock Exchange (LSE) on its board.
/jlne.ws/2MtvXxi
The People Leading the Blockchain Revolution
Nathaniel Popper – WSJ
The blockchain is a technology that is supposed to be all about distributing power and information away from central authorities. But many individuals have been crucial in pushing the technology forward. Here is a look at some of the most influential people in the industry today.
/jlne.ws/2IA3ALz
Industries, Looking for Efficiency, Turn to Blockchains
Laura Shin – NY Times
If some financial institutions had used blockchains before the last recession, we may not have had one. After all, banks sometimes didn’t know which company’s books held bad mortgages, and a blockchain is essentially a single time-stamped ledger transparent to all its users.
/jlne.ws/2MrjCK3
South Korea Reveals New [Positive] Crypto Regulatory Guidelines
Joseph Young – CCN
Financial Services Commission (FSC), the main financial agency of South Korea, has revealed a new crypto regulatory framework and guidelines pertaining to anti-money laundering (AML) and Know Your Customer (KYC) requirements for crypto exchanges.
bit.ly/2tMdS5Z
Confused About Blockchains? Here’s What You Need to Know.
Nathaniel Popper – NY Times
A blockchain is a relatively new kind of database that has become the trendy solution for storing digital information more securely. The International Data Corporation recently forecast that companies and governments will spend $2.1 billion on blockchains in 2018, more than double what was spent last year.
/jlne.ws/2Iymhzk
Demystifying the Blockchain
Andrew Ross Sorkin – NY Times
This is bonkers. A new so-called blockchain company is selling virtual real estate online with prices as high as $120,000 for a 10-meter by 10-meter piece of virtual land. You can buy a plot of virtual land in a virtual city, with certain neighborhoods costing more than others, like in a real city. Except that it isn’t a real city. It is all virtual. Follow? Me neither.
/jlne.ws/2MunY2V
Line to launch cryptocurrency exchange in Singapore; Japanese messaging app takes on Chinese and US rivals
Kana Inagaki in Tokyo – FT
Line will launch its cryptocurrency exchange in Singapore next month as the Japanese messaging app makes a big push into blockchain and financial services to compete against WhatsApp and WeChat.
/jlne.ws/2IyCzIm
Cryptocurrency Universe Expands Far Beyond Bitcoin; The code base is increasing and improving every day as computer science graduates from top schools jump on board.
Aaron Brown – Bloomberg
A sort of “cryptobrawl” broke out last month at the Milken Institute Global Conference between economist Nouriel Roubini and panel participants more optimistic about the future of cryptocurrency technologies. I had the opportunity to participate in a partial rematch at Battle of the Quants, where Roubini was just as negative and DMS Governance’s John D’Agostino presented a moderate defense.
/jlne.ws/2My5BdJ
Crypto Is Booming. But Where Are The Women?
Katie Elizabeth – Forbes
I’m fascinated by everything about crypto because cryptocurrencies have the potential to totally transform the world as we know it. An example – my company Stella Digital recently built a website for a stealth mode startup that is aiming to use the blockchain to level the political playing field globally. That is cool. What is even cooler to me, as a female founder and woman in tech, is that the industry offers women a new way to engage, play and win like never before. At the baseline, participation can be anonymous. One can contribute to the technology, mine bitcoin and ether, create a digital wallet and invest without anyone knowing who you are. But more than this, women have a chance to play at the forefront of shaping this industry, and to lead in unprecedented ways.
/jlne.ws/2MwKpEN
Bithumb Claims to Have Retrieved $14 Million in Hacked Cryptos
Wolfie Zhao – Coindesk
South Korean cryptocurrency exchange Bithumb says it has almost halved the losses arising from a recent hack. As previously reported by CoinDesk, Bithumb, one of the largest crypto exchanges in South Korea and the world by trading volume, was hacked on June 20 – an event that saw 35 billion Korean won ($31 million) in various cryptocurrencies stolen.
/jlne.ws/2KdIoAA
India’s female investors show that bitcoin isn’t just for boys
Nupur Anand – Quartz India
In India, it’s women who are betting big on cryptocurrencies. BuyUcoin, an Indian cryptocurrency exchange, has found that female Indian investors, on average, invested over Rs1.4 lakh (around $2,000) on digital currencies—twice the amount that men typically spent. The survey, conducted between March and June, had over 60,000 respondents.
/jlne.ws/2KgnXDm
Security or Not, Ethereum’s Soul Searching Isn’t Over
Camila Russo – Bloomberg
Governance debate raised after wallet hack leaves funds frozen; Ether has tumbled about 70 percent from all-time high
There’s an existential debate raging among Ether advocates even after regulators stated that the second-biggest cryptocurrency shouldn’t be considered a security.
/jlne.ws/2KdJT1G
Politics
Industry backlash to Trump tariffs grows with legal challenge; Steel users and carmakers increase opposition to US trade policies
Shawn Donnan in Washington and Patti Waldmeir in Chicago – FT
The backlash against Donald Trump’s trade fight grew on Wednesday as steel users challenged the tariffs in court and carmakers warned of a surge in prices if the US president delivered on threats to extend them to more valuable auto imports.
/jlne.ws/2IAavV1
Mnuchin Wins a Round in the White House Battle Over China
Saleha Mohsin , Jennifer Jacobs , Jenny Leonard , and Nick Wadhams – Bloomberg
Treasury chief has vied for less aggressive strategy on trade; Trump advisers said to abandoned emergency trade measure
Treasury Secretary Steven Mnuchin won a battle inside the Trump administration over trade policy this week after a series of setbacks as he tries to ease economic tensions with China.
/jlne.ws/2MpCYz2
Manafort had $10 million loan from Russian oligarch: court filing
Reuters Staff
A search warrant application unsealed on Wednesday revealed closer links than previously known between President Donald Trump’s former campaign manager Paul Manafort and a Russian oligarch with close ties to the Kremlin.
/jlne.ws/2IzOEgh
That Noise You Hear Is the Sound of Globalization Going Into Reverse; As trade barriers break up world-wide supply chains, the real costs are higher prices and fewer choices for consumers
Greg Ip – WSJ
Around the world the gears of globalization are shifting into reverse. Companies spent decades farming out every step of production according to where inputs—labor, infrastructure, know-how—were optimally located. Now, as trade barriers rise, they are grappling with how to localize production again.
/jlne.ws/2MsFTaw
Michael Bloomberg Considering 2020 Presidential Run, Sources Say « CBS New York
CBS
Maybe the fourth time is the charm.
Michael Bloomberg is revving up to run for president in 2020, making him both the oldest and richest person to seek the job.
/cbsloc.al/2N3YAlV
Regulation
CFTC Commissioner Behnam Announces Members of the Market Risk Advisory Committee and an Upcoming Public Meeting
CFTC
Commodity Futures Trading Commission (CFTC or Commission) Commissioner Rostin Behnam today announced the members of the CFTC’s Market Risk Advisory Committee (MRAC or Committee). The newly-appointed MRAC will hold its first public meeting on July 12, 2018 at the CFTC’s Washington, DC, headquarters from 10:00 am to 4:00 p.m. Commissioner Behnam is the sponsor of this advisory committee.
/jlne.ws/2lChLqo
ASIC accepts variation to NAB enforceable undertaking to address inadequacies in its wholesale spot FX business
ASIC
ASIC has accepted a variation to an enforceable undertaking provided by National Australia Bank Limited (NAB) relating to its wholesale spot foreign exchange (FX) business.
/jlne.ws/2IvujZL
ASIC calls on retail OTC derivatives sector to improve practices
ASIC
ASIC has called on participants in the retail over-the-counter (OTC) derivatives sector to improve their practices after recent ASIC activities showed their conduct fell short of expectations.
/jlne.ws/2IwLZ77
City watchdog reviewing allegations of insider trading at Carillion
Rhiannon Curry – Telegraph
The Financial Conduct Authority (FCA) is looking into allegations of insider trading at failed support services and construction company Carillion as the fallout from the business’s collapse continues.
/jlne.ws/2IwLquj
FCA to overhaul ‘opaque’ charges on popular drawdown pensions; Providers will have to display fees in a single figure under new proposal
Josephine Cumbo in London – FT
Providers offering popular pension products will be required to display charges in a single pounds and pence figure under new measures designed to better protect investors from retirement rip-offs.
/jlne.ws/2MpEvVO
Deutsche Bank’s U.S. brokerage fined $1.4 million for reporting problems
Reuters
Deutsche Bank AG’s U.S. securities division agreed to pay a $1.4 million fine to the Financial Industry Regulatory Authority on Wednesday to settle charges that it violated reporting and supervisory rules related to equity and municipal bond trades.
/jlne.ws/2KhJYSf
Investing and Trading
Move Over FANG: Energy Topples Tech as Top Sector; Energy companies have rallied 12%—poised for the biggest quarterly gain since 2016
By Danielle Chemtob – WSJ
Energy stocks are on pace to be the best-performing group in the S&P 500 this quarter, after oil prices broke through $70 a barrel, a level they’ve struggled to reach and stay above for almost four years.
/jlne.ws/2My7Qh9
Oil futures trader GEM shuts down, citing ‘regulatory environment’
Gregory Meyer in New York – FT
One of the biggest traders on oil derivatives exchanges has suspended operations after being directed by its clearing firm to sharply reduce its holdings.
/jlne.ws/2MxP35F
Boards with many female directors take as many risks as more male-dominated ones;Fairness, not economics, justifies gender diversity, argue Vathunyoo Sila, Angelica Gonzalez and Jens Hagendorff
London School of Economics and Political Science
Although companies are increasingly under social and legislative pressures to increase female representation in their boardrooms, research is far from conclusive with regards to the economic consequence of the increase in boardroom gender diversity.
/jlne.ws/2Ktcfo4
Institutions
The Goldman Lunch That Set the Scene for 1MDB’s Money Probe
Andrea Tan – Bloomberg
Investigators turn attention to role of banker Roger Ng; $577 million from a 2012 bond sale ended up in Swiss account
In a private dining room at Singapore’s Taste Paradise restaurant, over a meal of abalone and suckling pig, two Goldman Sachs Group Inc. bankers were explaining a $1.75 billion bond offering to six executives of a Swiss bank.
/jlne.ws/2MuAFuM
Our Guide to What the World’s Top Central Banks Will Do Next
Bloomberg News
Bloomberg Economics’ look at 22 interest-rate setting bodies; What they’ve done so far and what might be happening in future
Slowly, but surely, central banks around the world are unwinding the easy money they spent a decade injecting into the global economy to fight the fallout from financial crises and recession.
/jlne.ws/2IyHFEw
Credit Suisse Is Probing Banker’s Behavior With an Intern
Jan-Henrik Foerster and Sridhar Natarajan – Bloomberg
Credit Suisse Group AG is investigating allegations that a senior banker inappropriately touched an intern at a company social event last week, according to a person with knowledge of the matter.
/jlne.ws/2Mrhulx
From Goldman to Deutsche Bank, What to Watch in Stress Tests
Yalman Onaran – Bloomberg
Analysts see Goldman, Morgan Stanley tempering payout requests; Deutsche Bank must overcome Fed concerns about firm’s controls
Can large U.S. banks hand $170 billion to their shareholders in the next 12 months? Will a top European investment bank botch the first public stress test of its U.S. business?
/jlne.ws/2Kszcb6
Regions
Default risk casts shadow over foreign demand for China bonds; Higher yields seen attracting investors into renminbi-denominated paper
James Kynge – FT
China’s domestic bonds, denominated in renminbi, have been popular with international investors this year. But changes in key market conditions — including an upsurge in corporate defaults and the renminbi’s slide against the US dollar — raises questions over the sustainability of inflows.
/jlne.ws/2ICAqvc
Why Investors Aren’t Worried China Will Weaponize Its Treasurys Hoard; China holds $1.18 trillion in U.S. government bonds, but it’s unlikely to dump them in response to rising trade tensions
Daniel Kruger – WSJ
Intensifying trade tensions have U.S. investors parsing China’s possible responses to the latest Trump administration salvos, concerned about everything from escalating tariffs to currency devaluation.
/jlne.ws/2MwCYxg
China Considers Banning Short -Term Dollar Bond Sales
Bloomberg News
NDRC to limit builders’ bond proceeds to only refinancing; Tighter policy comes amid flurry of real-estate curbs
China is slowing approvals for offshore bonds and considering whether to ban short-dated issuance in dollars, according to people familiar with the matter, moves that would reduce financing options for the debt-laden developers that sit at the center of the nation’s economy.
/jlne.ws/2MxMh0e
China says carefully monitoring U.S. policies on inbound investments
Reuters Staff
China’s commerce ministry said on Thursday it would carefully monitor U.S. policies on inbound investments, stressing that the country opposes using national security as grounds to restrict foreign investments.
/jlne.ws/2Ksmw3W
Trump drops new restrictions on China investments; White House decides against moves to block Beijing’s acquisition of US technology
Shawn Donnan in Washington – FT
Donald Trump has dropped plans to impose new restrictions on Chinese investment in the US, bowing to pro-business advisers within his own administration who warned it would damage the economy by chasing away foreign businesses.
/jlne.ws/2KvMjrV
Brexit
HFT firm Jump prepares to move London traders to Amsterdam
Lucy McNulty – Financial News
US-headquartered Jump Trading has picked Amsterdam for its post-Brexit base in Europe and told a group of London-based traders that they could soon be relocated to the Dutch capital.
/jlne.ws/2MxLuMP
The compelling Tory case for a second Brexit vote; Some say another referendum would be divisive, but Britain is already deeply split
Philip Stephens – FT
Theresa May’s government has perfected the art of negotiation by capitulation. Two years after the Brexit referendum the sequence — bold demands, blunt rejection, and humiliating retreat — is dismally familiar. There is nothing to suppose the dynamics of the end-game will be any different. The prime minister wants a deal — and Britain desperately needs one — so it will be on others’ terms.
/jlne.ws/2Msr9Iu
London fears it will be EU’s next capital markets target; Diplomatic stand-off with Switzerland fans concerns of similar UK fate
Philip Stafford in London and Ralph Atkins in Zurich – FT
A diplomatic stand-off between Switzerland and the EU that may leave Swiss capital markets as potential collateral damage has fanned concerns in London that a similar fate awaits the UK.
/jlne.ws/2MxC0AP
BoE’s Brexit derivatives markets warning not as dire as it sounds; Notional numbers in this area are among financial markets’ most abused statistics
Philip Stafford – FT
The Bank of England warning about the impact of Brexit on derivatives markets on Wednesday was heady stuff, but predictions of chaos with trillions of pounds worth of swaps deals are off the mark.
/jlne.ws/2MvOxVA
Brussels steps up emergency planning for no-deal Brexit; Measures include keeping Channel tunnel open and sustaining financial services
Alex Barker in Brussels, Arthur Beesley in Dublin and Anne-Sylvaine Chassany in Paris – FT
The EU is quietly stepping up work on emergency plans to cope with the first days of a hard Brexit, including transitional measures to mitigate damage should the UK crash out of the bloc without an exit deal.
/jlne.ws/2IzfV2K
Theresa May denies government is ignoring business concerns on Brexit; Labour leader cites recent public warnings from BMW and Airbus
Jim Pickard, Chief Political Correspondent – FT
Jeremy Corbyn accused the Tory government of failing to listen to the concerns of business about a hard Brexit in a stormy session of prime minister’s questions on Wednesday.
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