First Read
Hits & Takes
JLN Staff
The London Stock Exchange Group has appointed the American Goldman Sachs banker David Schwimmer as chief executive officer.~JJL
The World Federation of Exchanges’ IOMA Conference 2018 in Chicago is the organization’s 35th such event, with exchanges, clearinghouses and market participants from around the world attending. OCC is the event host. Yesterday’s sessions included a panel hosted by JLN’s Jim Kharouf on Brexit, which featured Judith Hardt, from the Swiss Finance Council, Stephen Fischer from Blackrock and Erik Müller of Eurex Clearing. Erik seemed the most happy about Brexit. Judith was neutral.~JK
OCC CEO and Chairman Craig Donohue opened the IOMA Conference with a thoughtful tribute to the retiring Chairman Emeritus of CME Group, Leo Melamed, tying his contributions to the industry to Chicago’s architect Daniel Burnham and his famous quote “Make no little plans, they have no magic to stir men’s blood and probably themselves will not be realized. Make big plans; aim high in hope and work, remembering that a noble, logical diagram once recorded will never die, but long after we are gone be a living thing, asserting itself with ever-growing insistency.”~JK
We had a typo on the link for the @distledger event at Navy Pier April 23. See the corrected link below and a 20% discount for JLN Readers. @distledger brings their Distributed: Markets event to Navy Pier on Monday, April 23. Speakers include Julie Winkler from the @CMEGroup, https://twitter.com/coinlist?lang=en@Coinlist‘s @Andy_Bromberg, @MatthewRoszak from @Bloqinc, and @jgarzik from @MTNToken. Visit the site http://markets.distributed.com for more information and to register. BTC Media has created a 20% discount code (JLN20) for any JLN readers.~JJL
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The Future of Exchanges Will Feature More Collaboration, WFE Report Says
Jim Kharouf, JLN
Exchanges will have to spend more, share more and collaborate more in the coming years, according to a published report from the World Federation of Exchanges (WFE) and Oliver Wyman. The report, issued on Thursday at the 35th IOMA: The WFE’s Clearing & Derivatives Conference in Chicago focused on the recent trends for the exchange, CCP and market infrastructure providers since the 2008 financial crisis.
/jlne.ws/2HwdDlQ
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Establishing a Presence – Travis Schwab, Eventus Systems
JohnLothianNews.com
Travis Schwab, CEO of Eventus Systems, thinks firms that participated in the mad rush to build out their compliance and surveillance technologies are likely entering a reevaluation phase. That presents an opportunity for Eventus, a three-year-old compliance and surveillance technology firm.
In this video from JLN’s annual series with industry leaders, Schwab talks about issues with data integration, machine learning applications and entering the multi-billion dollar compliance technology industry.
Watch the video and read the rest here »
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Meet the traders, investors, and technologists pioneering crypto on Wall Street
Frank Chaparro – Business Insider
This hasn’t been an easy year for cryptocurrency enthusiasts. Bitcoin, the largest crypto, is down more than 70% from its all-time highs set at the end of 2017, as regulators look to clamp down on exchanges and tech companies shun advertisements related to the nascent digital coin market.
/goo.gl/qiDj38
***** The movie “Meet the Traders” will star who?
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Sell all crypto and abandon all blockchain
Dan McCrum – FT
Blockchain hype is an essential part of the crypto-craze, and its fading is cause to expect the eventual crash. The reason is a relationship between a beguiling, but wrong, idea about technology, and the value it has injected back into crypto-currencies such as Bitcoin and Ethereum. Break that cycle, and you unspool the loop that’s spun itself into a boom.
/goo.gl/oqQJxg
***** Heresy or prophesy?~JJL
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Thursday’s Top Three
Our top read story of the day on Thursday was How a volatility virus infected Wall Street from the Financial Times. Second was a blog post from Tod Skarecky of Clarus, who wrote about Segregated Funds, Market Crashes & Under-Seg. Third was our JLN interview with Pat Kenny and Ryan Moroney of CQG.
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MarketsWiki Stats
123,424,730 pages viewed; 23,070 pages; 212,691 edits
MarketsWiki Statistics
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Lead Stories
LSE Hires Goldman’s Schwimmer as CEO, Ending Long Search
Vira Vahhela – Bloomberg
Schwimmer to join the 217-year old London exchange in August; Defending LSE’s dominant clearing role a major task amid Brexit
London Stock Exchange Group Plc hired Goldman Sachs Group Inc.’s David Schwimmer to run the 217-year-old bourse, ending a months-long search for a CEO by appointing another investment banker.
/goo.gl/WJ9Gp2
FINRA, BOX, Cboe, IEX, NASDAQ and NYSE Fine Instinet, LLC for Market Access Rule Violations
FINRA
Instinet, LLC has been censured and fined a total of $1.575 million for violations of various provisions of Rule 15c3-5 of the Securities Exchange Act of 1934 (known as the Market Access Rule) and related exchange supervisory rules. The action was taken by the Financial Industry Regulatory Authority (FINRA), along with BOX Options Exchange LLC (BOX); the Cboe BZX Exchange, Inc.; Investors Exchange LLC (IEX); The NASDAQ Stock Market LLC; the New York Stock Exchange; and certain of their affiliated Exchanges (collectively, “Exchanges”). The fine was apportioned among FINRA and the Exchanges.
/goo.gl/JfxZzx
Bitcoin’s Hype Vanishes Just Like That: ‘We’re in the Boring Phase’; Daily trading volume is 70% lower than its most active days, and the virtual currency is fading from social-media feeds
Steven Russolillo – WSJ
While vacationing with friends in Buenos Aires last month, Alex Beene, a Tennessee government worker, said the topic of cryptocurrencies briefly came up during a dinner conversation.
/goo.gl/BXQ32N
$3 Million Bitcoin Heist Reported by India’s Coinsecure
Anto Antony, Archana Chaudhary – Bloomberg
Coinsecure pledges to compensate customers from personal funds; Recovery may be complicated by India’s crackdown on crypto
One of India’s biggest cryptocurrency trading platforms has lost about 438 Bitcoins worth some 190 million rupees ($3 million), allegedly due to a rogue employee.
/goo.gl/jf3hfy
Victims of Bernard Madoff’s Ponzi Scheme to Receive Millions More
Katie Benner – NY Times
Victims of Bernard L. Madoff, the architect of one of Wall Street’s largest frauds, will receive another $504 million, proceeds from assets that the government seized after Mr. Madoff’s financial firm collapsed a decade ago.
/goo.gl/76oEqd
Women Are Winning in Bond Funds. Why Aren’t There More of Them?
Liz McCormick – Bloomberg
Percentage of women portfolio managers has stalled since 2015; Women still see ‘Wolf of Wall Street’ culture in the industry
Fixed-income mutual funds run by women have outperformed funds run by men since 2003, so you’d think the number of female managers would be rising.
/goo.gl/9Qz9Eo
Will Wall Street Buy Into the Slow Stocks Movement?; Eric Ries’s Long-Term Stock Exchange is taking a winding road to reality.
Annie Massa – Bloomberg
Two years ago, Silicon Valley entrepreneurial guru Eric Ries hatched a plan to bring one of his boldest ideas to life. His Long-Term Stock Exchange, which he first suggested in the epilogue to his 2011 bestseller, The Lean Startup, would address the investor shortsightedness that drives startup founders crazy. Over time he sketched out rules. Companies listing on the exchange would give more voting power to shareholders who stuck around longer. They wouldn’t be allowed to link executive pay to quarterly earnings. It turns out, however, that selling Wall Street on a more patient stock market can’t be done in a hurry.
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Global Warming Is a Central Bank Issue; Monitoring the impact of climate change on financial stability is sensible, but tipping the scales is dangerous.
Ferdinando Giugliano – Bloomberg
Central bankers have been dubbed “masters of the universe” for the tools and powers they have acquired since the financial crisis. Some of them now want to play a more active role in the fight against climate change.
/goo.gl/Rr4ZJt
SIX named most valuable exchange brand in Europe; In a recent report on the world’s most valuable stock exchange brands, SIX Swiss Exchange AG ranks first in Europe.
SIX
SIX Swiss Exchange AG is the highest-ranking stock exchange brand in Europe, according to a report on the top 10 most valuable brands in the world. It reached this position by increasing its brand value by 23% compared to the previous year, climbing one spot. With a brand value of USD 537 million, it ranks sixth overall, with CME Group in first place.
/goo.gl/ue3XT8
Exchanges, OTC and Clearing
TMX Group Sells its 24.2% Stake in Fixed Income Index Business
TMX
TMX Group today announced it has completed the sale of its entire 24.2% shareholding in FTSE TMX Global Debt Capital Markets Limited to FTSE International Limited.
/goo.gl/rA8XBF
Equity Index Highlights – April 2018 edition
Eurex
The market briefing, given by Markus-Alexander Flesch, Global Head Sales Equity & Index Derivatives, is packed with news and highlights ranging from Q1 trends and volumes to global macro-economic effects on volatility and what it all means for the Eurex product suite. Besides, he gives in-depth insights into Eurex core products.
/goo.gl/jVBFY8
Admission withdrawal of twelve Single Stock Futures and two equity options
Eurex
Due to previous corporate actions, the Management Board of Eurex Deutschland decided the admission withdrawal of twelve Single Stock Futures and two equity options, as outlined in the attachment.
/goo.gl/884z5H
Goldman Sachs banker appointed LSEG chief; David Schwimmer named as new chief of London Stock Exchange Group after controversial departure of Xavier Rolet.
Hayley McDowell – The Trade
A twenty-year Goldman Sachs veteran banker has been appointed chief executive officer at London Stock Exchange Group (LSEG) following the controversial departure of Xavier Rolet earlier this year.
/goo.gl/96SNQ8
London Stock Exchange hires Goldman’s David Schwimmer as new chief; American investment banker takes over from Xavier Rolet following governance crisis
Philip Stafford in London – FT
The London Stock Exchange Group has appointed David Schwimmer, an investment banker with a 20-year career at Goldman Sachs, as its new chief executive to succeed Xavier Rolet.
/goo.gl/jdNYz5
LME sees jump in requests to withdraw aluminium; Rise is latest sign of reverberations of US sanctions against Russia’s Rusal
Neil Hume – FT
Requests to withdraw aluminium from the London Metal Exchanges jumped sharply on Friday amid talk that non-Russian metal was leaving the bourse to fill a supply gap triggered by the crisis at Rusal.
/goo.gl/cdWSpq
Mysterious Swiss Franc Slide Shows Reach of Russia Sanctions
Anooja Debnath – Bloomberg
Swiss currency drops on days turmoil supports other havens; Investors nervous as sanctions dent Swiss safety: Swissquote
Nervous Russian tycoons may be driving a selloff in the Swiss franc.
/goo.gl/YcvFpC
The Aramco Accounts: Inside the World’s Most Profitable Company
Bloomberg News
Saudi energy giant made $33.8 billion in first half of 2017; Tougher royalty regime imposes higher taxes as oil prices rise
It’s a cornerstone of the global economy, producing and selling 10 million barrels of oil every day. Yet for four decades the financial performance of Saudi Aramco has been one of the biggest secrets in global business, limited to a tiny circle of executives, government officials and princes.
/goo.gl/ZNEaCW
Exchange Updates Guidance Letter on IPO Vetting and Suitability for Listing
HKEX
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) published an updated Guidance Letter on IPO* Vetting and Suitability for Listing – HKEX-GL68-13A (GL68-13A).
/goo.gl/aWHxmQ
ICEX launches 30 cents diamond futures contracts to attract small investors; The exchange currently offers 1 carat (100 cents) and 50 cents polished diamond contracts on its platform
Dilip Kumar Jha – Business Standard
Reliance ADAG anchored Indian Commodity Exchange Limited (ICEX) has launched 30 cents polished diamond futures contracts on its platform to attract small investors and make natural precious stone popular amongst average middle class.
/goo.gl/ekKrZX
Boerse Stuttgart Subsidiary Brings Cryptocurrency Trading To The Mass Market – Sowa Labs Presents Prototype Of BISON App – Available Free Of Charge From Autumn
Mondovisione
Free, uncomplicated and secure trading in cryptocurrencies from your own smartphone: this is what BISON promises to make available to traders. The new app from fintech Sowa Labs – a subsidiary of Boerse Stuttgart Digital Ventures – gives traders an easy entry into the world of cryptocurrencies. Dr Ulli Spankowski, Managing Director at Sowa Labs, commented: ‘BISON makes trading in digital currencies easy. It is the first crypto app in the world to have a traditional stock exchange behind it.’ The startup will today present the prototype of the app at the finance and investment trade fair Invest in Stuttgart. BISON will be available free of charge from the autumn of this year.
/goo.gl/gFFbzW
Fintech
AI in banking: the reality behind the hype; The industry is taking a cautious approach in spite of excitement about new technology
Laura Noonan in London – FT
Deutsche Bank chief executive John Cryan once mooted replacing as many as half his 98,000 staff with robots. His dramatic ousting last weekend means he will not be held to that promise, but investors need not look far for other bankers talking up the potential of artificial intelligence to revolutionise an industry that has struggled with profitability in the decade since the financial crisis.
/goo.gl/hzkrKa
Does the World Really Need an AI-Powered Dark Pool?; OneChronos, a proposed trading venue, wants to use artificial intelligence to match orders.
By Will Hadfield, Annie Mass – Bloomberg
Mathematical formulas, scrawled in red and black, cover a glass wall. The office is small, but the three men who work there, dressed in jeans and sneakers, hovering around an array of computers, have big plans. They want to run a stock market, and they say they and their algorithms can do what even their leanest competitors would need 80 human beings to achieve.
/goo.gl/sbBHT3
Calypso taps Bouillard as chief executive
Iris Yeung – FX Week
Calypso Technology has appointed Didier Bouillard as chief executive officer and a member of the board of directors.
/goo.gl/jWcVbg
IHS Markit Named Independent Benchmark Administrator for Danish Bond Indices from Nordea Bank
Business Wire
IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions, today announced that it has been appointed as the independent benchmark administrator for Danish bond indices from Nordea Bank, the largest financial services group in the Nordic region.
/goo.gl/ZwcSH6
Cryptocurrencies
Prominent Crypto Hedge Fund Says Worst Is Over for Bitcoin; Pantera Capital Management calls $6,500 currency’s probable low in current market
By Steven Russolillo – WSJ
A prominent cryptocurrency hedge fund said bitcoin prices have bottomed out. San Francisco-based Pantera Capital Management called $6,500 the probable low for bitcoin in the current bear market. The investment firm also said it was “highly likely” that bitcoin will hit new highs and exceed $20,000 within a year. Pantera, a leading voice in the crypto market, makes rare—but significant—short-term calls.
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Opinion: This is all it would take for bitcoin to become a worthless cryptocurrency
Atulya Sarin – MarketWatch
The blockchain economy is imminent, in one form or another. Little doubt remains that we will eventually move toward a world in which most of our transactions will be processed on the blockchain, and we will, over time, use cryptocurrency for our daily transactions.
/goo.gl/zW1QPg
Biggest Theft Of Cryptocurrency In India: Bitcoin Exchange Coinsecure Says 438 Bitcoins Have Been “Lost”
Siamak Masnavi – CryptoGlobe
Late yesterday, Indian cryptocurrency exchange Coinsecure (which now seems like an ironic name) announced that the exchange had lost of some of its bitcoins during an exercize to distribute BTG to its customers. In a letter posted on the homepage of its website, Coinsecure says that its system has never been hacked and instead laid the blame solely on its chief security officer (CSO), Dr. Amitabh Saxena.
/jlne.ws/2vgRRQu
Chip Makers Are Better off Without Crypto Miners; Losing cryptocurrency mining sales allows Nvidia, AMD to focus on more solid opportunities
Dan Gallagher – WSJ
Miners of cryptocurrencies may soon stop buying chips from Nvidia Corp. NVDA 3.70% and Advanced Micro Devices Inc.. But businesses are more trouble than they are worth.
/goo.gl/Mpkqjp
Indian crypto exchange loses $3.5m in customers’ bitcoin; Group suspects employee involvement in possible heist
Adam Samson in London – FT
India’s Coinsecure has told authorities it has lost $3.5m worth of its customers’ bitcoin, the latest example of the risks to investors in the sector.
/goo.gl/huAjgk
Epidemiology tells you not to write bitcoin off; Although sceptics believe it is a bubble, people are still buying the digital currency
Chloe Cornish – FT
Thought bitcoin was dead and buried? Think again. While many dismissed it as a bubble, bitcoin continues to act like a virus — very hard to kill off.
/goo.gl/2UCuqs
Bitcoin Buyers Have to Take a Wild Guess on Their Taxes
Lily Katz, Lynnley Browning – Bloomberg
Even accountants unclear on how to treat complex transactions; Many investors are declaring their holdings for the first time
If you thought trading Bitcoin was wild, try figuring out how to pay taxes on it. Cryptocurrency investors are wrestling with spotty records, tangled blockchain addresses and rudimentary guidelines issued back in the ancient days of 2014. After last year’s boom in values, many people are likely disclosing transactions for the first time, adding to confusion.
/goo.gl/CMquJN
Cryptojacking is the new ransomware. Is that a good thing?
Jon Martindale – Digital Trenes
Making money from mining cryptocurrencies isn’t just something that people do with their own hardware, malware authors have also been creating malicious software to have other people do the hard work them – and we don’t mean cloud mining. While this represents a new fad in the realm of malware authorship though, it may not be around in this guise for long.
/goo.gl/SMBv2i
Bitcoin trading volume hits record high
Aaron Hankin – MarketWatch
Volume records were taken out on Thursday, when the No. 1 digital currency rose more than 15%, trading to $8,000 for the first time in two weeks.
/goo.gl/khr9sv
Politics
Trade Tensions Have Hit Stocks Hard—Why Is the Rest of the Market So Calm?; Stability in other markets suggest there is more to the decline in equities than uncertainty over trade
By Riva Gold and Mike Bird – WSJ
Stock markets have been on a roller coaster since trade tensions between the U.S. and China began to escalate in early March. But export-facing currencies, trade-sensitive emerging markets and government bonds have barely moved, suggesting there is more to the recent stock gyrations than trade bluster.
/goo.gl/mgqZSH
James Comey Has a Story to Tell. It’s Very Persuasive.
Michiko Kakutani – NY Times
In his absorbing new book, “A Higher Loyalty,” the former F.B.I. director James B. Comey calls the Trump presidency a “forest fire” that is doing serious damage to the country’s norms and traditions.
/goo.gl/ek3xzk
Comey book escalates attacks on Trump; US president is ‘unethical and untethered to truth’, says sacked FBI director
Kadhim Shubber in Washington – FT
Former FBI director James Comey calls Donald Trump’s leadership “transactional, ego driven and about personal loyalty” in a new book that contains a string of attacks likely to infuriate the president.
/goo.gl/tJ59JB
Regulation
ESMA study shows impact of short-selling disclosure on investor behaviour
ESMA
The public disclosure of net short positions in EU shares influences investors’ behaviour, a recent study by the European Securities and Markets Authority (ESMA) finds
/goo.gl/jwLmTZ
SeaWorld flops as it reveals SEC notice
Jessica Dye in New York – FT
SeaWorld shares took a dip in after-hours trading on Thursday after the aquatic theme park operator said it had been notified that it may be the target of an enforcement action by the US Securities and Exchange Commission.
/goo.gl/7GEaSa
There’s still a lesson Jay Powell could learn from Greenspan; Central banks would do well to introduce some ‘constructive ambiguity’ as they raise rates
Robin Wigglesworth – FT
Alan Greenspan once remarked that “if I seem unduly clear to you, you must have misunderstood what I said”. Although the former Federal Reserve chairman’s reputation has faded in recent years, central banks should consider adopting some of his famous inscrutability.
/goo.gl/QZ3Cbj
The Challenge of Conforming Crypto to the Language of Regulation
Samuel Haig – Bitcoin.com
A recent article authored by Jonathan Chester, the chief executive officer of Bitwage, featured commentary discussing the hurdles posed by attempting to conform cryptocurrency to existing regulatory language and classifications from individuals experienced with cryptocurrency law.
Juan Llanos, the fintech and regtech lead at Consensys, alluded to the gap in the perceptual understanding of key terms between members of cryptocurrency community and the regulators tasked with overseeing the virtual currency markets.
/jlne.ws/2vbsAan
JPMorgan sued over fees for cryptocurrency purchases
Shivpriya Sumbha – Cryptonyooz.com
JPMorgan Chase & Co has been hit with a lawsuit in Manhattan federal court. So, accusing it of charging surprise fees when it stopped letting customers buy cryptocurrency. Especially, with credit cards in late January and began treating the purchases as cash advances.
The lawsuit mentioned that Chase (JPM.N) charged both extra fees and substantially higher interest rates. Especially, on the cash advances than on the credit cards. It also refused to refund the charges when customers complained.
/jlne.ws/2vaVU0T
Podcast: CFTC Talks EP038 George Saravelos Deutsche Bank, Global Co-head FX Research
CFTC
/goo.gl/ACCGMD
CFTC Charges The Kane Capital Investment Group, LLC and Amrit Chahal of Virginia with Operating a Commodity Pool Ponzi Scheme
CFTC
The Commodity Futures Trading Commission (CFTC) yesterday filed a civil enforcement action in the U.S. District Court for the Eastern District of Virginia against Defendants The Kane Capital Investment Group, LLC (Kane Capital), a commodity pool organized in Virginia, and its principal, Amrit Jaswant Singh Chahal (Chahal) of Fairfax, Virginia. The CFTC Complaint charges Defendants with commodity futures fraud, commodity pool fraud, and illegally commingling Kane Capital’s funds with Chahal’s personal funds. The Complaint also charges Chahal with failing to register with the CFTC as a Commodity Pool Operator, as required.
/goo.gl/TF2NPT
ASIC bans client adviser for trading in ‘MINI’ warrants
ASiC
ASIC has banned Mark Menzies, the sole director and officer of Menzies Securities Pty Limited (Menzies Securities), from providing financial services for four years.
/goo.gl/sQGjQ3
CFTC Obtains Default Judgment and Permanent Injunction against Arizona Resident Cory Williams and His Company, Williams Advisory Group, LLC, for Commodity Pool Fraud; Federal Court Orders Gilbert Resident Cory Williams and Williams Advisory Group, LLC to Pay More than $19.4 Million in Restitution and a Civil Monetary Penalty
CFTC
The Commodity Futures Trading Commission (CFTC) announced that Judge John J. Tuchi of the U.S. District Court for the District of Arizona entered an Order of Default Judgment and Permanent Injunction against Defendants Cory Williams of Gilbert, Arizona, and his company, Williams Advisory Group, LLC (WAG), in connection with a commodity pool fraud that victimized 40 pool participants, including Williams’ family, friends, neighbors, and members of his church and other related churches in and around Phoenix, Arizona.
/goo.gl/NNfFNq
What Lessons Can Washington Learn From Europe About Regulation of Tech Firms?; The EU has advanced dozens of initiatives, including privacy rules that take hold next month
By Natalia Drozdiak – WSJ
U.S. lawmakers this week set the stage for a possible new era of regulation for big tech companies as they questioned Facebook Inc. Chief Executive Mark Zuckerberg about the company’s handling of user privacy.
/goo.gl/aj4Sd7
Investing and Trading
Proof That Multi-Billion Tech IPOs Aren’t Just for the U.S.; Antivirus software group Avast plans to bring listing trend to London
Paul J. Davies – WSJ
Every company that gives away its product free is getting something in return. This is true of Avast, a consumer cybersecurity company that plans to sell shares in London in May, joining the healthy wave of mainly U.S.-based technology initial public offerings, such as cloud-storage outfit Dropbox in March.
/goo.gl/RSJGPH
World’s Longest Trial of Negative Rates Shows Lots of Positives; Doomsday predictions are turned on their head as Denmark prospers
Peter Levring – Bloomberg
There was a time when people wondered what horrors might follow if central banks resorted to negative interest rates. But the country that’s tested the policy longer than any other has lately been enjoying one economic triumph after another.
/goo.gl/fuQjYT
Lackluster U.S. Bond Auctions Add to Worries of Foreign Pullback
Brian Chappatta, Liz McCormick – Bloomberg
Indirect bids signal overseas buyers ‘sat this round out’: BMO; Lowest yields since January didn’t help draw demand, either
For the U.S. to borrow cheaply as it boosts borrowing, it’s going to need overseas investors to step up at its debt auctions. The early indication from this week’s $64 billion slate is that those buyers may be turning skittish.
/goo.gl/uD1f3B
Lackluster U.S. Bond Auctions Add to Worries of Foreign Pullback
Brian Chappatta, Liz McCormick – Bloomberg
Indirect bids signal overseas buyers ‘sat this round out’: BMO; Lowest yields since January didn’t help draw demand, either
For the U.S. to borrow cheaply as it boosts borrowing, it’s going to need overseas investors to step up at its debt auctions. The early indication from this week’s $64 billion slate is that those buyers may be turning skittish.
/goo.gl/uD1f3B
Institutions
Investors back away from US-focused equity funds; Shift comes amid volatile swings in share prices that have led to equity outflows
Joe Rennison – FT
Is the Tina trade under threat? The appeal of stocks since the US market hit its March 2009 low has been so powerful, it has generated a mantra: “There is no alternative.”
/goo.gl/zVdGvL
Investment Bankers Line Up to Dismantle Anbang’s Global Empire
Bloomberg News
Once-acquisitive insurer prepares to unravel buying binge; Advisers pitched Anbang in Beijing earlier this month
Investment banks are lining up to manage potential divestments by Anbang Insurance Group Co., the once-acquisitive Chinese insurer that snapped up assets around the world before being seized by the government.
/goo.gl/eiDtC5
JPMorgan First-Quarter Revenue, Profit Rise to All-Time Highs
Zeke Faux – Bloomberg
Record stock-trading revenue lifts investment bank division; Quarterly profit jumps 35% as corporate tax cuts take hold
For JPMorgan Chase & Co., last quarter’s volatility appears to have been just right.
/goo.gl/4GxT6Z
Deutsche Bank May Be Cut by S&P on New CEO’s Strategy
Steven Arons – Bloomberg
Benefits of restructuring may not be seen until 2020: S&P; Promotion of Sewing may also be ‘springboard’ for progress
Deutsche Bank AG may be downgraded by S&P Global Ratings, which said the German bank’s leadership change may signal a “prolonged, deepened or more costly restructuring” that could weigh on the bank’s credit rating.
/goo.gl/knvRBE
Citigroup profit rises 13 percent on consumer banking, lower taxes
Reuters Staff
Citigroup Inc (C.N) reported a 13 percent increase in quarterly profit on Friday, driven by lower taxes and higher consumer banking revenue.
/goo.gl/w7FAWA
JPMorgan Russian investment trust working to comply with US sanctions
Reuters Staff
JPMorgan’s Russian-focused investment trust said on Friday it was working with the U.S. Treasury’s Office of Foreign Assets Control to implement actions to ensure it is compliant with U.S. sanctions against Russia.
/goo.gl/8MqHes
John Cryan and the beauty of the boutique; What next for the Brit ejected this week as Deutsche Bank boss
Patrick Jenkins – FT
Friends say John Cryan, 57, the Brit who was ejected this week as Deutsche Bank boss, is retreating to his riverside family home in Maryland, in a state of “deep exhaustion”. The banker was parachuted in to Deutsche less than three years ago but ran into a mire of legacy problems, political infighting and conflicting investor views. So what next?
/goo.gl/ebG8Q1
Regions
Surging Demand for Lithium Spurs Interest in European Mines; Prices for the metal, used in batteries for everything from mobile phones to electric cars, more than doubled in past two years
William Wilkes – WSJ
Rocketing demand and prices for lithium, coupled with China’s stranglehold on supply, are reviving interest in mining Europe’s reserves of the coveted metal some call white petroleum.
/goo.gl/WbmxSJ
China to open up iron trading to foreigners
Neil Hume in London- FT
China will allow overseas investors to trade the steel-making ingredient iron ore on the Dalian Commodity Exchange, the latest move by Beijing to exert influence over the global pricing of raw materials.
/goo.gl/XJc4Zi
Hong Kong and Singapore step into currency markets; Rare interventions come as mounting US-China trade tensions muddy forex outlook
Emma Dunkley in Hong Kong – FT
Hong Kong has begun buying its currency in a rare move that will increase interest rates and add to pressure on its property market, while Singapore has also tightened its monetary policy for the first time in six years.
/goo.gl/YciUqC
Yahoo Confirms Purchase of Stake in Cryptocurrency Exchange
Charlie Osborne – Cryptocurrency Guide
Yahoo intends to purchase a minority stake in a cryptocurrency exchange with the hopes of entering the market later this year.
On Friday, the tech giant said in a statement that a 40 percent stake in BitARG Exchange Tokyo will be purchased through a Yahoo Japan subsidiary.
/jlne.ws/2quenA4
Rusal sanctions lead to panic buying of alumina; Price of key aluminium ingredient jumps 30%
Henry Sanderson – FT
While the impact of US sanctions on Russian metals company Rusal has focused attention on the aluminium market, the fallout has been even larger and more immediate in one raw material used to make the metal.
/goo.gl/7dD6eo
Moscow Court Blocks Telegram Chat App After $1.7 Billion ICO
Ilya Khrennikov – Bloomberg
Messaging app didn’t provide encryption keys to authorities; Almost 10 million Russians may soon lose access to Telegram
A Moscow court ordered telecommunications companies to block Telegram in Russia after the chat app refused to grant intelligence authorities access to users’ encrypted messages, in a blow to the company just weeks after it raised $1.7 billion from investors.
/goo.gl/MZnBrM
OPEC Near ‘Mission Accomplished’ as Oil Glut Vanishes, IEA Says
Grant Smith -Bloomberg
Inventories could drop below 5-year average in ‘month or two’;Unplanned losses swell intended supply cuts by OPEC and Russia
OPEC is on the verge of “mission accomplished” in its quest to clear the global oil glut that caused the worst industry downturn in a generation, the International Energy Agency said.
/goo.gl/SJuy9H
Brexit
Brexit Gives Hedge Funds a Kafkaesque Nightmare; Funds can’t prepare for life after Brexit until after it happens.
Mark Gilbert – Bloomberg
With less than a year to go before Britain exits the European Union, the country’s hedge funds find themselves facing a surreal scenario worthy of the novels of Franz Kafka.
/goo.gl/T2at7U
Brexit Hits Bankers Where it Hurts: Their Wallets; European pay data show falling pound meant fewer million-euro paypackets
By Paul J. Davies – WSJ
If there is one group of people likely to be upset about Brexit, it is European bankers and fund managers who earned more than EUR1 million ($1.2 million) a year. There were about 10% fewer of them in 2016, the year when the U.K. voted to leave the European Union—not because of mass layoffs, but rather as a direct result of the falling value of the British pound, which lowered the value of their still lucrative payouts.
/goo.gl/BxUEpD
Miscellaneous
Wall Street Era of Deducting $65 Dry-Aged Steaks Could Be Over
Lynnley Browning – Bloomberg
Trump tax law seems to end 50% write-off for business meals; Accountants urge IRS to provide guidance to clear up confusion
For Wall Street banks, treating clients to the 45-day dry-aged bone-in rib eye at Delmonico’s in Manhattan may now cost the full $65, thanks to President Donald Trump’s tax law.
/goo.gl/5Z2MTr
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