Top Headlines

Barclays Settles Libor Claim in US – Profit & Loss

New York Attorney General Eric Schneiderman has announced a $100 million, 44-state settlement with Barclays Bank and Barclays for “fraudulent and anticompetitive conduct” involving the manipulation of USD Libor (London Interbank Offered Rate) and other benchmark interest rates.

Brexit Bulletin: What the Rest of the EU Wants – Bloomberg

What are the 27 other EU countries hoping to get out of Brexit talks? Bloomberg reporters put that question to governments across the continent and came away with a complex web of priorities and red lines.

Are Negative Rates Backfiring? Here’s Some Early Evidence – WSJ (subscription)

Two years ago, the European Central Bank cut interest rates below zero to encourage people such as Heike Hofmann, who sells fruits and vegetables in this small city, to spend more.

The Yuan’s Wild Year: Devaluation Panic Gives Way to Steady Drop – Bloomberg

One year after China roiled markets by devaluing its currency, the nation’s central bank appears to be firmly back in control.

Mobster or Central Banker? Spanish Cops Allege This Russian Both – Bloomberg

A former senator in Vladimir Putin’s United Russia party directed dirty-money flows for mobsters in Moscow before he was named a deputy head of the central bank last year, according to investigators in Spain.

Regulatory News

FINRA Hits Deutsche Over Squawk Boxes – Profit & Loss

The US Financial Industry Regulatory Authority (FINRA) has fined Deutsche Bank $12.5 million for “significant supervisory failures related to research and trading-related information it disseminated to its employees…over internal speakers commonly known as squawk boxes”.

New Bank Rules Won’t Stop Bailouts – Bloomberg

Since the 2008 financial crisis, policy makers around the world have put new rules in place to make banks less risky and more transparent. They’re confident that these changes have made the financial system safer and eliminated the need for taxpayer bailouts. But as Julius Caesar said: “Men willingly believe what they wish to be true.”

Company News

TriOptima Claims First in Latam Currency Compression – Profit & Loss

TriOptima announces that 11 CME Group IRS clearing members eliminated 12.5 trillion MXN ($664 billion) notional outstanding in the first triReduce multilateral compression cycle for cleared Mexican peso (MXN) interest rate swaps (IRS).

Startups Cash Out Before IPOs as Venture Capitalists Turn Pickier – WSJ (subscription) Inc.’s decision to scrap its ambitious plan to challenge Inc. in favor of a $3.3 billion sale to Wal-Mart Stores Inc. marks the third time in recent weeks a cash-guzzling startup has chosen to sell.

Market Savvy

Search for Yield Drives Stocks Higher, Pound Falls vs Dollar – Reuters

Shares rose in Europe and Asia on Tuesday while sterling fell to its weakest in a month against the dollar on the prospect of easier monetary policy in Britain following its June vote to leave the European Union.

Pound Sinks for Fifth Day as Kiwi, Rand Retreat With Commodities – Bloomberg

The British pound fell for a fifth day, weighed down by a loosening monetary policy, as New Zealand’s dollar retreated with commodities. Asian shares climbed to a one-year high as Chinese inflation data added to signs of stabilization in the world’s second-largest economy.

Arrivederci Treasuries as Italy Yields Lure Japan Investors – Bloomberg

For Japanese investors hunting for yield but unwilling to take on currency risk, Italy really is “the beautiful country.”

European Stocks Buoyed by Energy Gains – WSJ (subscription)

European stocks rose slightly in early morning trade Tuesday, led by buoyant energy shares.