Top Headlines

Barclays Trader Bogucki Cleared – Profit & Loss

Robert Bogucki, who was facing six counts of wire fraud and one count of conspiracy, was acquitted by a federal judge in Northern California today. Bogucki, the former head of Barclays’ New York FX operation was charged last year in an indictment for his alleged role in a scheme to front run client orders.

China to Slash Taxes, Boost Lending to Shore Up Slowing Economy – Reuters

China will cut billions of dollars in taxes and fees, increase infrastructure investment, and step up lending to small firms as the government boosts stimulus to shore up an economy growing at its slowest pace in almost 30 years.

Italy is Side-Lining Itself from the EU – CNBC

Italy’s relationship with the EU has deteriorated since an anti-establishment government took the reins in Rome last year. And for Deputy Prime Minister Matteo Salvini, that breakdown has coincided with a surge in popularity.

Trump’s Trade War Cost Americans $1.4 Billion a Month Last Year – Business Insider

A spate of protectionist policies with trading partners reduced real US income by $1.4 billion a month at the end of 2018, according to a new study by economists at the New York Federal Reserve, Princeton, and Columbia.

Don’t Try to Ambush us With a Late Deal, Brexiteers Warn May – The Times (subscription)

Tory Brexiteers told Theresa May last night not to ambush them with a last-minute legal deal with Brussels on the Irish backstop and expect them to vote in favour of it next week.

Trump to Drop Preferential Trade Treatment for India; Delhi Plays Down Impact – Reuters

US President Donald Trump looked set to open a new front in his trade wars on Monday with a plan to end preferential trade treatment for India that allows duty-free entry for up to $5.6 billion worth of its exports to the United States.

RBA Keeps Interest Rates on Hold – Australian Financial Review (subscription)

Economists cut their growth forecasts following weaker than expected net exports numbers, as the Reserve Bank’s held the official interest rate a record low of 1.5 per cent for the 28th time in a row.

Regulatory News

Bloomberg: Handling a Sea of Change – Profit & Loss

“The biggest driver for the industry last year was regulation. It created a sea of change in the way that markets actually behave,” says Tod Van Name, global head of FX electronic trading at Bloomberg.

London Hedge Funds Told to Prepare for FCA Spot Checks – Financial News (subscription)

The Financial Conduct Authority has ordered London’s hedge funds to prepare for stringent tests of their financial-crime controls later this month, as part of a wider clampdown on fraudulent activity in the City.

Why Self-Regulation Can Pay Off – Forbes

There are many famous examples of industries and companies voluntarily going above and beyond government regulations.

Facing Cuts, Data Departments Find ‘Best Friend’ in Regulation – Waters Technology (subscription)

While regulation may not be at the top of everyone’s wish list this year, embattled data departments may have actually found a friend in post-crisis reform, experts say, as the industry continues to refine its focus on cost-cutting measures.

Crypto News

Analysts: Bitcoin Price (BTC) To Revisit $20,000 in March 2021 – NewsBTC

At the moment, the cryptocurrency market is primarily concerned about when Bitcoin might bottom, and not when Bitcoin price will return to its previous all-time high of $20,000. 

Ethereum Fork Could Help Restore Parity’s Frozen Cryptocurrency – Fortune

Tens of millions of dollars worth of Ethereum frozen in 2017 may finally be recovered, thanks to a new upgrade in the cryptocurrency technology.

PayPal And Visa Warned Bitcoin Presents A ‘Ludicrous’ Existential Challenge – Forbes

Bitcoin and cryptocurrencies are often derided for their inadequacies compared to the giant traditional payment systems Visa, Mastercard, and PayPal, but an eventual challenge from bitcoin and crypto to the incumbents is not impossible, according to one tech analyst.

Company News

BNP, Millennium Launch AI FX Index – Profit & Loss

BNP Paribas today announces the launch of the BNP Paribas MGI Systematic Currency Alpha Index using artificial intelligence through machine learning. The index, created by BNP Paribas in partnership with Millennium Global Investments (MGI), went live in Q1 2019.

SG Cuts FX Staff in London – Profit & Loss

Following recent news of planned staff cuts at Societe Generale Corporate & Investment Banking (SG CIB), Profit & Lossunderstands that at least three senior FX staff have left the French bank. 

City of London Police Launch Fraud Investigation into Revolut – Financial Times (subscription)

Police have launched a fraud investigation over a complaint on a money transfer by British digital bank Revolut, adding further pressure to a fintech company that is already facing probes on other issues from regulators.

Capitolis Adds Firms to FX Novation Service – Profit & Loss

Capitolis, a technology provider for the capital markets, announces today that the number of participants on Capitolis Novation has grown to more than 20 bank and non-bank customers. 

Nasdaq Raises Oslo Bourse Bid to Match that from Euronext – Financial Times – (subscription)

US operator seeks to break deadlock over Norway’s exchange, which is valued at €700 million.

Nomura Asset Management to Name First Female Chief – Asian Nikkei Review

Nomura Asset Management decided Monday to appoint Executive Managing Director Junko Nakagawa as its next CEO, making her the first woman to lead the core Nomura Holdings unit.

Market Savvy

Europe’s Slowdown is Worse Than Investors Imagined: El-Erian – Reuters

The European economy is cooling more than many investors believe, Mohamed El-Erian, chief economic adviser for Allianz SE, said on Monday, warning that the slowdown poses the biggest risk to the market.

Japan’s Foreign Bond Binge Suggests Yen Weakness Will Linger – Financial Times (subscription)

The unsettling thing about the yen, say traders in Tokyo pretending not to be unsettled, is that for the past eight weeks it has been doing exactly what you would expect it to do. That sort of sanity, they add nervously, rarely lasts.

How a Likely Trade War Resolution and the MSCI China Weighting Boost Point to a Rise in the Yuan – South China Morning Post

Beijing may well accept a trade deal that specifically calls for a stronger yuan, while investors will look to buy more of the currency to fund increased holdings of A-shares.