China Should Invest in Assets Other Than Treasuries – Reuters
China should make better use of the country’s funds by looking to invest its large capital reserves in real assets, not United States Treasury bonds, an adviser to China’s central bank said on Monday.
- Japanese Investors Dump Record Amount of US Bonds in February – Reuters
- Bond Traders Are About to Grasp the Magnitude of the Treasuries Deluge – Bloomberg
China’s Forex Reserves Are Up – And So Are Fears of a US Trade War Hit – South China Morning Post
China’s trade surplus has been the biggest contributor to its foreign exchange stockpile but that could change amid tensions with the United States
Feds Want 7-Year Prison Term For Ex-HSBC Forex Banker – Law360 (subscription)
Prosecutors on Thursday asked a New York federal judge to sentence former HSBC foreign currency exchange executive Mark Johnson to seven years in prison, saying he was the ringleader of a con that defrauded Cairn Energy PLC by front-running a $3.5 billion currency swap in order
Ex-JPMorgan FX Salesman Loses Retrial on Unfair Dismissal – Bloomberg
A former JPMorgan Chase & Co. currency salesman fired for short-filling a client order lost his claim of unfair dismissal, reversing a previous decision in his favour in the latest twist stemming from the global foreign exchange scandal.
Cryptocurrency Traders Use Old Gold in Drive to Draw Islamic Investors – Reuters
In Dubai’s decades-old Gold Souk, customers from around the world haggle over bangles and necklaces. Elsewhere in the emirate, the region’s top center for gold trade, bullion is playing a new role in financial engineering.
Korea Still Can Intervene in Forex Market, Minister Says – Chosunilbo Business
Finance Minister Kim Dong-yeon on Thursday says Korea retains the right to intervene in the exchange rate despite U.S. claims of a deal to limit government intervention.
Will We See Thought-Activated FX Trading? – Profit & Loss (subscription)
The time of voice-activated trading may be nearing, but what about after that?
US-China Trade Row Spells Pain and Gains for ASEAN – Nikkei Asian Review
The tit-for-tat trade dispute between the U.S. and China is generating a mix of fear and hope across Southeast Asia and Oceania, which export large volumes to the two countries.
- Xi Jinping to Outline Economic Reforms Amid Trade Tension – Financial Times (subscription)
- Trump Officials Soften Tone on Trade Dispute With China – Wall Street Journal (subscription)
BOE May Have a Silent Dissenter to Interest-Rate Hike Path – Bloomberg
The Bank of England may have a quiet dissenter among its ranks when it comes to the need for higher interest rates this year.
Slumping US Dollar No Longer a One-Way Bet – South China Morning Post
While the bears have reason to be confident, a confluence of factors points to a revival of the US dollar’s fortunes.
Regulatory News
FCA Tells Crypto Derivative Dealers to Seek its Approval – Financial News (subscription)
Cryptocurrencies are still not regulated, but products launched of the back of them are.
Central Bank Chiefs Sound Warning on Climate Change – Financial Times (subscription)
Central bank governors from the UK, France and the Netherlands are considering increasing regulatory oversight to address climate-related risks to the financial system, including carbon stress tests for banks.
First Euribor-Rigging Trial Opens in London – Financial Times (subscription)
The latest instalment of the long-running investigation into the manipulation of interbank interest rates begins this week, when five people go on trial for allegedly rigging Euribor.
Company News
FX Salesman Let Go Twice in a Year Wins $200,000 From BofA – Bloomberg
A former sales director at Bank of America Corp. won a French employment lawsuit against the lender in a dispute over whether he lied about the fact he was dismissed by his previous employer.
O’Flaherty Exits Deutsche – Profit & Loss
Ian O’Flaherty has left Deutsche Bank after a 35-year career at the institution, most of it in FX.
Barclays Plans to Split Euro Trading Hub over Brexit – Financial Times (subscription)
Barclays is preparing to split its euro rates trading team because of Brexit and plans to move part of the unit that trades eurozone government bonds and interest rate swaps away from its main trading floor in London.
Market Savvy
Dollar Steadies but US-China Trade Tensions Cloud Outlook – Reuters
The dollar steadied on Monday, having retreated late last week due to concerns over U.S.-China trade tensions and following data that showed the U.S. economy created the fewest jobs in six months in March.
Bad Omen for Markets From First Signs of Yield Curve Inversion – Bloomberg
The forward curve of a closely watched proxy for the Federal Reserve’s policy rate has slightly inverted, signaling investors are either pricing in a mistake from central bankers or end-of-cycle dynamics, according to JPMorgan Chase & Co.
Fed’s Evans Optimistic on Inflation, Wants Rate Hikes – Reuters
Chicago Federal Reserve Bank President Charles Evans, one of the Fed’s most dovish policymakers, said Saturday that he is optimistic inflation will reach the Fed’s 2 percent goal and that slow, gradual rate increases will be appropriate.
Thai Baht’s Downturn Could Be Worse Than Usual This Year – Bloomberg
A seasonal downturn in Thailand’s baht driven by dividend outflows and a lack of tourists could be worse than usual this year amid rising global bond yields and less liquidity, according to Kasikornbank Pcl.