Deutsche Bank to Quit Equities Trading and Cut 18,000 Jobs in Major Overhaul

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Deutsche Bank to Quit Equities Trading and Cut 18,000 Jobs in Major Overhaul – Financial News (subscription)

Deutsche Bank will exit global equities trading, cut 18,000 jobs and transfer €75bn of risk-weighted assets into a so-called bad bank as part of a major overhaul of the German lender’s business. The bank has also entered into preliminary talks over the sale of its electronic trading and prime finance divisions with French rival BNP Paribas.

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Switzerland-EU Row Shows Equivalence Will Not Work for UK

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Switzerland-EU Row Shows Equivalence Will Not Work for UK – GlobalCapital

The EU’s decision not to extend equivalence to Swiss exchanges and Switzerland’s subsequent retaliation is a perfect example of why the measure is an insufficient framework for future EU-UK financial services relations after Brexit.

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EU Plans to Tighten Derivatives Rules Rankles in the US

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EU Plans to Tighten Derivatives Rules Rankles in the US – Financial Times (subscription)

At a meeting held by the House agriculture committee on Wednesday US lawmakers lined up to tear into plans by the European Union to tighten supervision of its derivatives markets after Brexit. Brussels wants more direct oversight of clearing houses, which safeguard the financial system by acting as counterparties between sellers and buyers of shares or derivatives.

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Trump Drags Dollar to Center Stage at G-20 as Trade War Heats Up

Trump Drags Dollar to Center Stage at G-20 as Trade War Heats Up – Bloomberg (subscription)

President Donald Trump believes the dollar is too strong, a senior administration official said Tuesday. Last week, Trump accused Europe and China of weakening their currencies to gain a competitive advantage. Wall Street banks are even starting to ponder the risk that the US could seek to drive the dollar lower.

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Tweets, Trade and the Fed Now Have Markets Moving in Packs

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Tweets, Trade and the Fed Now Have Markets Moving in Packs – The Wall Street Journal (subscription)

Bonds, stocks and currencies are moving in tandem more often, as central-bank surprises and trade uncertainty assert their grip over markets. Known by investors as “risk-on, risk-off,” the phenomenon happens when markets essentially split into two broad buckets that move together.

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