G20 Leaders Find Common Ground on Currency as Curtain Comes Down on Hangzhou Summit
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The world’s 20 major economies will talk to each other on exchange rates and refrain from a currency race to the bottom as part of a joint policy package to soothe financial markets and revive global growth. Read More
Theresa May to Become New PM After Tory Rival Leadsom Withdraws
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Top Headlines Theresa May to Become New PM After Tory Rival Leadsom Withdraws – The Guardian Theresa May will become Britain’s second female prime minister on Wednesday, a rapid ascent to the premiership that came after her sole remaining challenger suddenly withdrew from the leadership race. |
BoE Expects Monetary Policy Easing in Summer: Carney
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BoE Expects Monetary Policy Easing in Summer: Carney – Profit & Loss [subscription]
The Bank of England (BoE) is expecting that some “monetary policy easing will likely be required over the summer” as the “economic outlook has deteriorated” on the back of the UK voting to leave the EU, the BoE governor Mark Carney said in a speech today at the Bank.
RBA Deputy Governor Philip Lowe to Replace Glenn Stevens
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RBA Deputy Governor Philip Lowe to Replace Glenn Stevens – Bloomberg
Philip Lowe will replace Glenn Stevens as governor of the Reserve Bank of Australia for a seven-year term on Sept 18, Treasurer Scott Morrison said in a statement.
Trump Becomes Presumptive Republican Nominee
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Trump Becomes Presumptive Republican Nominee as Cruz Exits Race – Bloomberg
Donald Trump, the billionaire real-estate developer who has upended the rules of modern campaigning, became the presumptive Republican presidential nominee on Tuesday after driving his top challenger, Texas Senator Ted Cruz, from the race with a crushing Indiana primary win.
- How Ted Cruz Dropped the Ball in his Bid for the White House – FT Subscription)
- Exiting 2016 Race, Republican Cruz Leaves Himself a Path Forward – Reuters
- How ‘Stop Trump’ Failed to Halt the Republican Front-Runner – Reuters
FXPA Meets with UK Regulators, Central Bank
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FXPA Meets with UK Regulators, Central Bank
The Foreign Exchange Professionals Association (FXPA) extended its round of introductory meetings with regulators, central banks and legislators around the world with a set of meetings earlier this month in the UK.
FXPA Meets with UK Regulators, Central Bank
The Foreign Exchange Professionals Association (FXPA) extended its round of introductory meetings with regulators, central banks and legislators around the world with a set of meetings earlier this month in the UK.
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US Places Five Countries on FX Monitoring List
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US Places Five Countries on FX Monitoring List – Profit & Loss
The US Treasury has named five nations on a “monitoring list” for exchange rate manipulation in a new semi-annual report, including, a little bizarrely, Germany.
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More Pain for Mrs Watanabe
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More Pain for Mrs Watanabe – Profit & Loss
The legions of Japanese retail investors holding onto the carry trade, dubbed the Japanese housewives or Mrs Watanabes, are facing more pain today – a Japanese holiday – as USDJPY slumps to a new low for the year, indeed its lowest level since October 2014.
Japan’s Abenomics ‘Dead in the Water’ after US Currency Warnings – Daily Telegraph
The Bank of Japan has been forced to retreat from further emergency stimulus after a blizzard of criticism at home and abroad, and warnings that extreme measures may now be doing more harm than good.
Currency Trading’s 20% Drop Raises Specter of Flash-Crash Future – Bloomberg
The world’s biggest financial market has shrunk by 20% during the past year and a half.
Swiss National Bank’s Jordan Says Still Room for Policy Manoeuvres – Reuters
The Swiss National Bank has further room to manoeuvre in its monetary policy and will not shy away from using unconventional measures if that is in the country’s interests, its chairman said on Friday.
Exclusive: EU would divorce UK before any new relationship – Reuters
The European Union would insist on completing a swift divorce with Britain before starting to forge any new relationship if UK voters decide in June to leave the 28-member bloc.
Trump Attacks Clinton on Gender, Risking Backlash From Women – Reuters
Republican presidential front-runner Donald Trump waded into politically risky territory this week when he accused Democrat Hillary Clinton of exploiting her gender to win votes and said she would have little support if she were not a woman.
China’s Central Bank Raises Yuan Fixing by Most Since July 2005 – Bloomberg
China’s central bank responded to an overnight tumble in the dollar by strengthening its currency fixing the most since a peg was dismantled in July 2005.
BNP Hires Goldman Face – Profit & Loss
Regulatory News
BoE Cautions on Deposits with Small Banks – FT (subscription)
Local authorities and other uninsured depositors should be more careful about keeping their money at small financial institutions, the Bank of England has warned, as it prepares to introduce new bank windup rules.
Company News
Look Out Corporate America: After Apple Sale, Carl Icahn Is Armed And Dangerous – Forbes
Carl Icahn’s announcement on Thursday that he had sold out of his Apple position should strike a little bit of fear in the hearts of executives and directors across America.
Robert Linton, Steadfast ’80s Wall Street Banker, Dies at 90 – New York Times
Robert E Linton, a prominent Wall Street executive who led the swashbuckling investment bank Drexel Burnham Lambert in the years before it imploded in scandal but who was largely untainted himself, died on Tuesday in Manhattan.
RBS losses double to nearly £1bn – fastFT (subscription)
Royal Bank of Scotland has reported doubling of losses to nearly £1bn following a large payment to the government to restart dividends, a day after warning of a delay to offloading Williams & Glyn.
Head of Deutsche Bank Integrity Committee to Resign – FT (subscription)
Georg Thoma is to resign from Deutsche Bank’s supervisory board after coming under fire from other board members in a battle over how to deal with the German bank’s past scandals.
Danske Beats Estimates as Bank Weathers Negative Rates – Bloomberg
Danske Bank A/S reported profit that beat analyst estimates last quarter as Denmark’s biggest bank was able to navigate through negative interest rates and volatile markets.
Market Savvy
Dollar Sinks as Oil Near $46; Asian Stocks, Europe Futures Fall – Bloomberg
The dollar dropped against all of its G-10 peers after weaker-than-expected U.S. economic growth dimmed prospects for a Federal Reserve interest-rate hike. Asian stocks fell with European equity index futures and oil traded near $46 a barrel.
Why the Bank of Japan Held Fire for Another Day – WSJ (subscription)
The BOJ’s lack of action caught markets by surprise, but doesn’t mean it is done easing
Saudis to Push Oil Output Higher but Won’t Flood Market – Reuters
Saudi Arabia’s oil output will edge up close to record highs in coming weeks to meet summer demand for power but is unlikely to be pushed to the limit and flood global markets, Saudi-based industry sources said.
Silver Prices Near One-Year High; Fundamentals Take Over – News.Markets
Rather than simply adjusting to the gold price, it seems the supply dynamics for this year are now helping the metal too.
ECB’s Praet: Rate Cut Not Expected in Near Future – Reuters
The European Central Bank would need the inflation outlook to worsen significantly for another rate cut, but pushing rates deeper into negative territory remains an option, Peter Praet, the bank’s chief economist told a Spanish newspaper.
France Picks Up as Investment Boosts Growth to Fastest in a Year – Bloomberg
The French economy expanded faster than economists forecast in the first quarter, powered by increasing corporate investment and a rebound in consumer spending.
Press Releases
SEC Seeks Public Comment on Plan to Create A Consolidated Audit Trail
Bank of Japan Stuns Market by Holding Off on More Stimulus
Top Headlines
Bank of Japan Stuns Market by Holding Off on More Stimulus – Bloomberg
The Bank of Japan held off on expanding monetary stimulus, as Governor Haruhiko Kuroda and his colleagues opted to take more time to assess the impact of negative interest rates.
- Nikkei Plunges After BOJ Inaction Stuns Investors – Reuters
- Yen Surges and Japan Stocks Plunge after BoJ Keeps Policy on Hold – FT (subscription)
Forget Unfair Dismissal…Whistle Blowing is the New Black – Profit & Loss
If losing a series of cases to former FX traders wasn’t enough, the banking industry faces increased pressure from a growing number of traders seeking whistle blower status as part of a claim for unfair dismissal.
Forget June. The Fed isn’t likely to hike interest rates until December – CNBC
The Federal Reserve left interest rates unchanged — no surprise there — moving the focus to the next Federal Open Market Committee meeting on June 14-15.
Kiwi rises after RBNZ stands pat – fastFT (subscription)8 hours ago
The Kiwi dollar jumped on Thursday after the Reserve Bank of New Zealand kept interest rates unchanged – although the central bank made it clear that further easing could yet be on the cards.
UK Becomes Second-Largest Offshore Renminbi Clearing Centre – FT (subscription)
The UK unseated Southeast Asian financial hub Singapore as the largest clearing centre for the renminbi outside of greater China in March, according to Swift’s RMB tracker.
The European Union always was a CIA project, as Brexiteers discover – Daily Telegraph
Brexiteers should have been prepared for the shattering intervention of the US. The European Union always was an American project.
A group of economists has struck back against what they see as the one-sided tone of the EU referendum debate today, with a new report that outlines the potential benefits of leaving the EU.
Brexit shock would cost Britons a month’s salary by 2020, OECD warns – Daily Telegraph
A British exit from the EU would trigger a “major negative shock” that would act as a “tax” on growth and could even spark the disintegration of the whole bloc, a top think-tank has warned.
Tusk rejects Tsipras’s summit request but Dijsselbloem says Eurogroup may be held soon – Kathimerini
Prime Minister Alexis Tsipras is due to speak to European Council President Donald Tusk again on Thursday after the latter rejected his call on Wednesday for a leaders’ summit to discuss Greece’s bailout talks…
CLS Volumes Down 3.5% in March – Profit & Loss
Average daily input value of trades submitted to CLS was $4.69 trillion in March, down 3.5% compared to February.
Regulatory News
Industry to Work Together Over New MiFID Product Rules – FT Adviser
Fund groups, platforms and intermediaries are collaborating to reduce the burden of new Mifid II product rules announced earlier this month.
Company News
Schroders Assets Rise to Record Level Despite New Business Halving – Daily Telegraph
Schroders’ assets under management grew to a record level of £324.9bn, despite its net incoming business halving to £2.7bn in the first quarter as volatile markets weighed on client demand.
Lloyds First-Quarter Profit Almost Halves After Bond Buyback – FT (subscription)
Lloyds Banking Group has almost halved profit after the lender bought back more than £3bn of expensive bonds from investors in the first quarter.
The bank, which is 9 per cent owned by the government, posted a pre-tax profit of £654m in the first three months, down from £1.2bn a year ago.
Deutsche Bank Profit Beats Expectations – WSJ
Deutsche Bank AG said Thursday that first-quarter net income beat analysts’ expectations despite being pressured by difficult market conditions and the impact of the bank’s decision to exit certain areas.
IPO Market Torpid Worldwide: Ernst & Young – News.Markets
Fewer companies have listed globally during the first three months of 2016 than during any first quarter since 2009, according to a report compiled by Ernst & Young.
Sorrell Defends £60m Bonus as WPP Remains on Track – The Times (subscription)WPP appears on track to meet its full-year target of 3 per cent sales growth across its international marketing operation with an increase in like-for-like net sales of 3.2%.
Zuckerberg Seeks to Tighten Grip as Facebook Results Surge – FT
Facebook has proposed an arrangement that will allow Mark Zuckerberg to maintain long-term control while pursuing his charitable giveaway, by creating a new class of stock with no voting rights.
Market Savvy
Special Report: Is FX The Next Industry to be Disrupted by FinTechs? – Profit & Loss
The next edition of Profit & Loss magazine will be featuring a fintech special report looking at how these firms are changing the landscape of financial services and why they are increasingly targeting the FX market.
Crude Oil Prices Take a Breather After Hitting 2016 Highs – Reuters
Crude futures pulled back from 2016 highs on Thursday as traders locked in profits after April’s sharp rally, but analysts said falling U.S. production, strong investor appetite and a weakening dollar could push prices higher soon.
China Trades Enough Cotton in One Day to Make Jeans for Everyone – Bloomberg
The equivalent of 41 million bales of cotton traded in a single day on the Zhengzhou Commodity Exchange last week, the most in more than five years and enough to make almost 9 billion pairs of jeans, or at least one for every person on the planet.
South Korea’s President Says Needs to Look at Possible ‘Selective’ QE – Reuters
South Korean President Park Geun-hye said on Thursday there is a need to consider “selective” quantitative easing to provide liquidity where it is needed in light of ongoing structural reforms, media reported.
Elections Get Dirty as Adult Filmmakers Set up Political Action Committee – Reuters
California politics got a bit more racy on Wednesday, as producers and actors in the adult film business said they had formed a political action committee, or PAC, to fight a ballot initiative to require the use of condoms when shooting explicit sex scenes.
Press Releases
Mario Draghi: Interview with Bild
Deutsche Börse AG Posts Further Revenue and Profit Growth in Q1/2016
Monex Group Reports Monthly Consolidated Financial Results (IFRS)