Top Headlines
EU State-Aid Rules for Banks in Crisis Backed by Top Court – Bloomberg
The European Union’s top court backed EU guidelines designed to prevent taxpayers from footing the bill for bailing out stricken lenders, strengthening the hand of Brussels regulators as Italy fights to shield some bondholders caught up in the nation’s banking crisis.
Old Lady “Not a Nurse to Markets”, Says BoE Economist – Profit & Loss
The Bank of England (BoE) will not ease interest rates just to appease the expectations of the market or to reassure consumers and businesses following the Brexit vote, warned Martin Wheale, an external member of the Monetary Policy Committee (MPC) at the central bank.
- BoE’s Woods says no ‘sweeping solution’ for banks after Brexit – Reuters
- Brexit Bargains Scented by Asia’s Rich After Pound’s Plunge –Bloomberg
- German ZEW Investor Sentiment Deteriorates in Brexit Aftermath –Bloomberg
- Does Brexit mean more UK firms being strong-ARMed into M&A? –CNBC
Turkey’s Coup Chaos Seen Slowing Pace of Interest Rate Cuts – Bloomberg
Turkey’s central bank will likely slow the pace of interest rate cuts when it meets on Tuesday after the failed coup attempt triggered a sell-off in the currency and sovereign debt.
Australian, New Zealand dollars slide on rate cut bets – Reuters
The Australian dollar fell 1 percent to a 11-day low on Tuesday while the New Zealand dollar hit a three-week trough, as investors ramped up bets that both central banks could ease monetary policy as early as next month.
Hedge Funds Bet Battered Sterling Could Plunge Further – WSJ (subscription)
Hedge funds are betting that the battered British pound could fall further in the wake of the U.K.’s decision to leave the European Union.
Regulatory News
FSB publishes progress report on implementation of recommendations to reform major interest rate benchmarks – FSB
The Financial Stability Board (FSB) today published Reforming Major Interest Rate Benchmarks which provides a progress report on implementation of its July 2014 recommendations to reform major interest rate benchmarks.
No Summer Break for Mifid II – Finextra
You may have noticed that the MiFID II Regulatory Technical Standards (RTS) continue to roll off the press at a steady pace signalling finalisation of the Level 2 detail.
Russia to Treat Bitcoin as Foreign Currency – News BTC
Depending on how soon all involved parties can come to an agreement, the law proposal will be submitted to the Duma by the end of 2016.
Company News
XTX Markets Hires New Head of Sales for Asia – Profit & Loss
Electronic market-maker XTX Markets has appointed Chan Wai Kin as its new head of sales for Asia.
CLS and Quandl to Distribute Aggregated FX Trade Data – Profit & Loss
CLS and Quandl, a data platform for economic and financial data, have made standardised and aggregated FX trade reports available via subscription.
ADS Announces Management Re-Shuffle – Profit & Loss
ADS Securities has announced three executive appointments at its headquarters and London offices.
Bank of America Plans More Cost Cuts, as Earnings Slide – WSJ(subscription)
Bank of America Corp. said it would deliver another $5 billion in annual cost cuts by 2018 as part of its strategy to deal with persistently low interest rates that are eating away at lenders’ profitability.
MTN Sinks as Nigeria Fine, Currency to Cause First-Half Loss – Bloomberg
MTN Group Ltd. fell in Johannesburg trading as Africa’s largest mobile-phone company said it expects to report a first-half loss after agreeing to pay a record fine in Nigeria.
Market Savvy
Asian Currencies Slip for Second Day in a Row – WSJ (subscription)
The yen and the yuan, two heavyweights in the Asian currency arena, have hit fresh lows recently, leading other currencies in the region down with them.
Yuan’s Best Forecaster Says This Currency Slump Is Close to Over –Bloomberg
After its worst quarter on record, the yuan may finally be headed for a break.
The People’s Bank of China will hit the brakes on depreciation to avoid sparking global volatility and exacerbating capital outflows, according to Svenska Handelsbanken, the currency’s top forecaster.
Bias Still Against Sterling After Muted Data Reaction – Reuters
Higher than forecast inflation failed to prevent sterling dropping back below $1.32 on Tuesday, more evidence that investors will tend to sell any rise in the pound in expectation of a grim economic aftermath to last month’s Brexit vote.
C$ Flat Vs US Dollar as Turkey Jitters Fade, Oil Dips – Reuters
The Canadian dollar ended unchanged against its U.S. counterpart on Monday as the market brushed off the news of a purge after a failed coup in Turkey and oil prices fell.
Global stocks slip as rally fatigue sets in – Reuters
World shares dipped for only the second time in nine days on Tuesday, sapped by a drop in oil prices and data that showed Britain’s vote to quit the European Union dented German business confidence.
Industry Events
Profit & Loss Scandinavia, 13 September, Copenhagen
Profit & Loss Forex Network Chicago, 28-29 September, Chicago, IL
Sibos 2016, 26-29 September in Geneva, Switzerland
FIA: Expo, 18-20 October in Chicago, IL