Top Headlines

BoE to Press On With Gilt-Purchase Plan After Early QE Hiccup – Bloomberg

The Bank of England’s plan is to keep calm and carry on buying.

• U.K. Bonds Climb Before BOE Comments on QE Auction ‘Shortfall’ – Bloomberg

• BOE Can’t Part Investors From Long Bonds as QE Hits Snag – Bloomberg

• Bank of England Bond Buying Hits Early Snag – WSJ (subscription)

 

Italian Banks Reel But Monti Has No Regrets for Avoiding Bailout – Bloomberg

The future of the euro zone was hanging in the balance but there was still time for a soccer game.

• How Spain is Benefiting from Central Banks and Troubled Neighbors – WSJ (subscription)

Brexit Bites Back as Peugeot Joins Dell in Lifting Prices – Bloomberg

British consumers are starting to bear the costs of Brexit, with companies raising prices of everything from cars to carpets to counter a plunge in the pound caused by the U.K.’s vote to leave the European Union.

Big Banks Team Up to Fight Cyber Crime – WSJ (subscription)

Big banks are revving up efforts to combat cybercriminals targeting the financial-services industry.

Regulatory News

5 Things Investors Should Know About New Rules on Money-Market Funds – WSJ (subscription)

Investors in money-market funds should prepare now for extensive new rules in mid-October that promise to fundamentally change the $2.7 trillion industry, fund managers and experts say.

Money Laundering Rule on Prepaid Cards Stalled After Industry Pushback – Reuters

In 2011, amid a crackdown on international money laundering, the U.S. Treasury Department tried to close a loophole that authorities said allows drug cartels to move bulk cash across borders on gift and other prepaid cards.

Company News

Tullett Prebon, GMEX Group to Develop Hybrid FX Options Platform – Profit & Loss

Tullett Prebon has partnered with technology provider GMEX Group to develop a hybrid voice and electronic trading platform for FX options.

Daiwa Securities Joins CLS as Settlement Member – Profit & Loss

Daiwa Securities Group has joined CLS as its newest settlement member.

Market Savvy

Dollar Weakens as Muted Prospects for Fed Rate Hike Boost Gold – Bloomberg

The dollar weakened on speculation the Federal Reserve will be slow to raise interest rates amid uneven global growth, boosting precious metals and bonds. European stocks snapped a five-day winning streak and most Asian shares fell.

• Asian Shares Hit 1-Year High, Dollar Slips on Weak U.S. Data – Reuters
• Dollar Drops as Fed Rate Rise Prospects Reassessed – Reuters

Europe Stocks Slip From Seven-Week High as Energy Producers Fall – Bloomberg

European shares slipped for the first time in six days, dragged down by energy producers.

Oil markets are falling into a bear trap and it’s way overdone: RBC – CNBC

Oil markets have been prone to over-bearishness of late with fears over supply returning to the market largely “overdone,” according to the latest oil market analysis by RBC Capital Markets.

• Oil falls on oversupply; calls for producer meeting met with scepticism – Reuters

• Saudi Arabia Said to Pump Record Oil Output to Meet Summer Usage – Bloomberg

• OPEC smoke and mirrors’ may be all it needs to boost oil – CNBC

Japan’s Plunging Jobless Rate Is All About Aging, not Abenomics – Bloomberg

As Prime Minister Shinzo Abe sees it, Japan’s tight labor market is a key success of his economic strategy: the unemployment rate is the lowest in 21 years and the job-to-applicant ratio is the highest in 25 years.

• Nikkei Slips on Stronger Yen, Investors Lock in Gains Ahead of Holiday – Reuters

U.S. productivity falls for third consecutive quarter – Reuters

U.S. worker productivity fell for the third straight quarter in the spring this year, suggesting that corporate profits may continue to decline and wage growth may remain sluggish.