The legions of Japanese retail investors holding onto the carry trade, dubbed the Japanese housewives or Mrs Watanabes, are facing more pain today – a Japanese holiday – as USDJPY slumps to a new low for the year, indeed its lowest level since October 2014.
The Bank of Japan has been forced to retreat from further emergency stimulus after a blizzard of criticism at home and abroad, and warnings that extreme measures may now be doing more harm than good.
The world’s biggest financial market has shrunk by 20% during the past year and a half.
The Swiss National Bank has further room to manoeuvre in its monetary policy and will not shy away from using unconventional measures if that is in the country’s interests, its chairman said on Friday.
The European Union would insist on completing a swift divorce with Britain before starting to forge any new relationship if UK voters decide in June to leave the 28-member bloc.
Republican presidential front-runner Donald Trump waded into politically risky territory this week when he accused Democrat Hillary Clinton of exploiting her gender to win votes and said she would have little support if she were not a woman.
China’s central bank responded to an overnight tumble in the dollar by strengthening its currency fixing the most since a peg was dismantled in July 2005.
Local authorities and other uninsured depositors should be more careful about keeping their money at small financial institutions, the Bank of England has warned, as it prepares to introduce new bank windup rules.
Carl Icahn’s announcement on Thursday that he had sold out of his Apple position should strike a little bit of fear in the hearts of executives and directors across America.
Robert E Linton, a prominent Wall Street executive who led the swashbuckling investment bank Drexel Burnham Lambert in the years before it imploded in scandal but who was largely untainted himself, died on Tuesday in Manhattan.
Royal Bank of Scotland has reported doubling of losses to nearly £1bn following a large payment to the government to restart dividends, a day after warning of a delay to offloading Williams & Glyn.
Georg Thoma is to resign from Deutsche Bank’s supervisory board after coming under fire from other board members in a battle over how to deal with the German bank’s past scandals.
Danske Bank A/S reported profit that beat analyst estimates last quarter as Denmark’s biggest bank was able to navigate through negative interest rates and volatile markets.
The dollar dropped against all of its G-10 peers after weaker-than-expected U.S. economic growth dimmed prospects for a Federal Reserve interest-rate hike. Asian stocks fell with European equity index futures and oil traded near $46 a barrel.
The BOJ’s lack of action caught markets by surprise, but doesn’t mean it is done easing
Saudi Arabia’s oil output will edge up close to record highs in coming weeks to meet summer demand for power but is unlikely to be pushed to the limit and flood global markets, Saudi-based industry sources said.
Rather than simply adjusting to the gold price, it seems the supply dynamics for this year are now helping the metal too.
The European Central Bank would need the inflation outlook to worsen significantly for another rate cut, but pushing rates deeper into negative territory remains an option, Peter Praet, the bank’s chief economist told a Spanish newspaper.
The French economy expanded faster than economists forecast in the first quarter, powered by increasing corporate investment and a rebound in consumer spending.
The Bank of Japan held off on expanding monetary stimulus, as Governor Haruhiko Kuroda and his colleagues opted to take more time to assess the impact of negative interest rates.
- Nikkei Plunges After BOJ Inaction Stuns Investors – Reuters
- Yen Surges and Japan Stocks Plunge after BoJ Keeps Policy on Hold – FT (subscription)
If losing a series of cases to former FX traders wasn’t enough, the banking industry faces increased pressure from a growing number of traders seeking whistle blower status as part of a claim for unfair dismissal.
The Federal Reserve left interest rates unchanged — no surprise there — moving the focus to the next Federal Open Market Committee meeting on June 14-15.
The Kiwi dollar jumped on Thursday after the Reserve Bank of New Zealand kept interest rates unchanged – although the central bank made it clear that further easing could yet be on the cards.
The UK unseated Southeast Asian financial hub Singapore as the largest clearing centre for the renminbi outside of greater China in March, according to Swift’s RMB tracker.
The European Union always was a CIA project, as Brexiteers discover – Daily Telegraph
Brexiteers should have been prepared for the shattering intervention of the US. The European Union always was an American project.
A group of economists has struck back against what they see as the one-sided tone of the EU referendum debate today, with a new report that outlines the potential benefits of leaving the EU.
A British exit from the EU would trigger a “major negative shock” that would act as a “tax” on growth and could even spark the disintegration of the whole bloc, a top think-tank has warned.
Prime Minister Alexis Tsipras is due to speak to European Council President Donald Tusk again on Thursday after the latter rejected his call on Wednesday for a leaders’ summit to discuss Greece’s bailout talks…
Average daily input value of trades submitted to CLS was $4.69 trillion in March, down 3.5% compared to February.
Fund groups, platforms and intermediaries are collaborating to reduce the burden of new Mifid II product rules announced earlier this month.
Schroders’ assets under management grew to a record level of £324.9bn, despite its net incoming business halving to £2.7bn in the first quarter as volatile markets weighed on client demand.
Lloyds Banking Group has almost halved profit after the lender bought back more than £3bn of expensive bonds from investors in the first quarter.
The bank, which is 9 per cent owned by the government, posted a pre-tax profit of £654m in the first three months, down from £1.2bn a year ago.
Deutsche Bank AG said Thursday that first-quarter net income beat analysts’ expectations despite being pressured by difficult market conditions and the impact of the bank’s decision to exit certain areas.
Fewer companies have listed globally during the first three months of 2016 than during any first quarter since 2009, according to a report compiled by Ernst & Young.
Sorrell Defends £60m Bonus as WPP Remains on Track – The Times (subscription)WPP appears on track to meet its full-year target of 3 per cent sales growth across its international marketing operation with an increase in like-for-like net sales of 3.2%.
Facebook has proposed an arrangement that will allow Mark Zuckerberg to maintain long-term control while pursuing his charitable giveaway, by creating a new class of stock with no voting rights.
The next edition of Profit & Loss magazine will be featuring a fintech special report looking at how these firms are changing the landscape of financial services and why they are increasingly targeting the FX market.
Crude futures pulled back from 2016 highs on Thursday as traders locked in profits after April’s sharp rally, but analysts said falling U.S. production, strong investor appetite and a weakening dollar could push prices higher soon.
The equivalent of 41 million bales of cotton traded in a single day on the Zhengzhou Commodity Exchange last week, the most in more than five years and enough to make almost 9 billion pairs of jeans, or at least one for every person on the planet.
South Korean President Park Geun-hye said on Thursday there is a need to consider “selective” quantitative easing to provide liquidity where it is needed in light of ongoing structural reforms, media reported.
California politics got a bit more racy on Wednesday, as producers and actors in the adult film business said they had formed a political action committee, or PAC, to fight a ballot initiative to require the use of condoms when shooting explicit sex scenes.
Today’s Australian inflation data surprised to the downside, rousing a sleepy Asia FX market from its pre-FOMC slumber.
Donald Trump has won presidential primaries in all five US states that voted on Tuesday, while Hillary Clinton triumphed in four out of five.
Malaysia named central bank deputy governor Muhammad Ibrahim as successor to Governor Zeti Akhtar Aziz when she steps down at the end of the month after 16 years at the helm. The ringgit gained and stocks pared losses.
Greece and its lenders were unable on Tuesday to reach an agreement on how to line up 3.6 billion euros in contingent austerity measures, leading to plans for an extra meeting of eurozone finance ministers on Thursday being dropped.
Spain is set for fresh elections after King Felipe VI announced the failure of the latest round of coalition talks.
The US Federal Reserve is expected to keep interest rates unchanged on Wednesday as it continues to monitor the impact from weakening global growth but may seek to signal to markets it is determined to resume policy tightening this year.
US regulations have failed to improve the FX market in the short-term, according to the buy side representative at a discussion hosted by the Commodity Futures Trading Commission (CFTC) today.
Barclays is speeding up the sale of some of its French businesses after missing earnings forecasts for the first quarter of the year.
Apple Suffers First Quarterly Revenue Fall in 13 years – FT (subscription)
A growing preference among consumers for lower-priced iPhones contributed to a significant shortfall for Apple in its latest quarterly earnings compared with Wall Street expectations, according to figures released on Tuesday.
Citigroup shareholders had their say on Tuesday, and not surprisingly the attempts by a few insurrectionists to shake things up failed.
Nomura Holdings Inc. unexpectedly posted a loss for the first time in more than four years last quarter, as trading income and brokerage commissions dropped and it lost money abroad.
Banco Santander SA, Spain’s biggest bank, reported lower first-quarter profit as revenue slumped in its home market and operations aboard were hit by currency effects.
For much of this year, the market commentary about Sterling (GBP) has been a good reflection of the debate about whether or not the UK would vote to leave the European Union. In other words, it has been very ‘shouty’ and not particularly that well informed.
Crude oil futures rose around half a dollar on Wednesday and remained near 2016 highs on the back of strong investor sentiment and a weak dollar, although analysts warned this month’s bull-run could soon run out of steam.
Corporate America is swimming in cash. There is no great news about this, and no great mystery about where it came from. Seven years of historically low interest rates will prompt companies to borrow.
Japan’s former deputy economy minister said the yen was too strong at current levels of around 110 to the dollar, indicating dissatisfaction with the currency’s 8% rise this year amid global economic anxiety.
The president of Japan’s Government Pension Investment Fund (GPIF) has said that the fund will use currency hedges to “smooth out” the fund’s exposure to a rising yen.
Implied pound volatility falls most since 2015 U.K. election; Speculators’ bets on sterling weakness are highest in 3 years
Clearing house LCH.Clearnet has unveiled two senior executive appointments to its FX business.
Republican Donald Trump, on the eve of primary elections in five states that he is expected to sweep, launched blistering attacks on Monday on rivals Ted Cruz and John Kasich for their 11th-hour joint effort aimed at denying him the party’s presidential nomination.
The German parliament wants to invite European Central Bank President Mario Draghi to explain the bank’s ultra-low interest rates and expansionary monetary policy, sources in the coalition government told Reuters on Tuesday.
Mohamed El-Erian, the chief economic adviser at Allianz SE, said on Monday he expects this week’s Federal Reserve policy-setting meeting to set the stage for a June interest rate hike.
The state’s cash reserves are running low once again. “The more the days go by, the more the pressure grows,” according to one Finance Ministry official, as the absence of funding from the bailout mechanism is starting to have an impact.
The MRAC will describe and discuss how well the derivatives markets are currently functioning, including the impact and implications of the evolving structure of these markets on the movement of risk across market participants.
BP Plc reported a surprise first-quarter profit as a stronger-than-expected refining and trading performance helped mitigate the impact of sliding crude prices.
This column should begin with a financial disclosure — of the writer’s own ineptitude. For around 20 years, every August I have bet 20 pounds on Leicester City to win England’s Premier League.
Standard Chartered has reported a 58 per cent fall in first-quarter profits, leaving investors wondering how long it will take to turn round the emerging markets bank.
Goldman Sachs Group Inc., adviser to billionaires and the world’s largest companies, will now accept your couch-cushion money.
Investor sentiment toward China may have eased following recent releases of more positive economic data, but returns at state-owned firms aren’t among them.
UK banks are lagging behind their European rivals in their recovery since the financial crisis, and are not expected to close the gap for years — if at all — despite their efforts to cut costs and restructure.
Shares in Mitsubishi Motors tanked on Tuesday afternoon in Japan following reports the automaker may have used shoddy fuel economy tests since the 1990s.
China moved to clamp down on excessive speculation in commodities on Monday after weeks of frenzied trading boosted prices and ignited fears of another bubble in its domestic markets.
Global stocks were little changed Tuesday as investors looked ahead to key company earnings reports and central bank meetings later in the week.
A suite of euro-area data on Friday will provide Mario Draghi with his first simultaneous dispatches from both fronts in his struggle to boost inflation — showing how he still has a fight on his hands.
Goldman Sachs Group Inc. has expressed its concern about the surge in speculative trading in iron ore futures in China, saying that daily volumes are now so large that they sometimes exceed annual imports.
The past 10 days has seen two FX traders successfully win their cases for unfair dismissal against their former employers. As reported exclusively by Profit & Loss…
They may not realize it yet, but Japan Inc’s executives are increasingly working for a shareholder unlike any other: the nation’s money-printing central bank.
Although the UK’s Serious Fraud Office has declined to lay formal charges against members of the “Cartel” Bloomberg chat room, reports suggest the US Department of Justice has raised the stakes.
China’s total debt rose to a record 237% of gross domestic product in the first quarter, far above emerging-market counterparts, raising the risk of a financial crisis or a prolonged slowdown in growth, economists warn.
Mario Draghi has opened a door. Janet Yellen has to decide whether she wants to walk through.
Speculators turned negative on the US dollar this week, with more investors in the global currency market taking short positions against the dollar than long positions, for the first time in nearly a year.
The far-Right moved a step closer to seizing the Austrian presidency on Sunday night, in an election result that will send shockwaves through Europe.
The Financial Conduct Authority has issued a number of warnings about firms it believes are providing financial services without authorisation. RBS Bourse, Capital Trust Ventures, Andersen Consulting (UK) and Beckett & Cromwell are all firms named by the FCA
Technology provider Reval has reached an agreement with payments system provider Swift to allow corporate treasury teams using the Reval Cloud Platform for automated cash and liquidity management, to join the Swift messaging network.
Citigroup has hired Piers Davison, an experienced financial institutions banker based in London, from JPMorgan Chase as part of push to capture more business in the UK and across Europe.
BHS Group Ltd. expects to enter administration Monday, a company representative said, putting 11,000 jobs at risk in what would be the biggest U.K. retail collapse since Woolworths Group Plc in 2008.
US Federal Reserve policymakers are expected to hold interest rates steady when they meet this week, but may tweak their description of the economic outlook to reflect more benign conditions, leaving the path open for future rate rises.
Ahead of what could be an interesting few days for the yen, it might be worth reflecting on just how big a week the Japanese currency has just had.
Sterling has been hovering near a six-week high today after an intervention by US president Barack Obama in the Brexit debate on the weekend caused betting markets to swing towards the UK voting to remain within the European Union.
Last week we were treated to a fine exhibition of the economist’s art.
Profit & Loss understands that former Citi FX trader Carly McWilliams has won her unfair dismissal claim against the bank.
It’s rates day for the European Central Bank. ECB watchers don’t expect action, as such, (rates: 1245 London time) but they do expect president Mario Draghi to face a grilling on negative rates (from 1330).
Bank of Japan Governor Haruhiko Kuroda said on Wednesday the central bank’s presence in the exchange-traded fund (ETF) market is “not too big,” signaling that topping up purchases of ETFs could be a real, near-term option.
Fading expectations that the Reserve Bank of Australia will cut interest rates this year have pushed the Australian dollar above $0.78 for the first time in 10 months.
Brazilian president Dilma Rousseff was on the brink of impeachment tonight after congress dramatically voted in favour of ousting her from office. After a chaotic weekend in Brasília, the lower house backed a motion to remove Ms Rousseff on charges of manipulating government accounts.