Top Headlines

China Stocks Jump Over 3% on MSCI Speculation – fastFT (subscription)

Chinese stocks carved out their biggest gain in two months amid speculation that A-shares could be included in MSCI’s global benchmarks.

Chaos Awaits Besieged Cameron No Matter What the Brexit Result – Bloomberg

Think everything in British politics will calm down once the European Union referendum is over? Think again.

Hedge Funds and Banks Commission Brexit Exit Polls – FT

Hedge funds and investment banks have commissioned private exit polls in an attempt to make profits from the result of the UK’s referendum on EU membership next month.

Brazil Minister Resigns After Leaked Recording in Graft Case – WSJ (subscription)

Interim President Michel Temer’s government, in office less than three weeks, is being rocked by leaked recordings that appear to show newly appointed cabinet members working to subvert a probe into government graft.

And Finally – Profit & Loss (subscription)

So we have the first stage of the global Code of Conduct in the public domain but as I witnessed on Thursday in New York, there is still a dangerous degree of complacency in the industry – and that represents a challenge for those creating and implementing the Code.

Regulatory News

FCA Warns Over-55s Against Investment Scams – The Actuary

The Financial Conduct Authority (FCA) has warned older people to take care when chasing higher rates of return on their savings through dubious investments.

Megan Butler Agrees to Stay at FCA as Head of Supervision – FT (subscription)

The new head of the UK’s City watchdog will have his trusted lieutenant by his side after she agreed to stay at the Financial Conduct Authority following a secondment from the Bank of England.

Company News

VW Gets Currency Boost in First Quarter – fastFT (subscription)

Volkswagen’s first quarter results were far higher than expected despite the carmaker revealing weaker than forecast operating margins in core passenger brand.

Former Zurich Insurance Boss Commits Suicide – Daily Telegraph

The former chief executive of Zurich Insurance has taken his own life; the second time the Swiss business has been shaken by suicide in less than three years.

Ireland-Registered Jazz Pharma Buys Celator for $1.5bn – fastFT (subscription)

Consolidation in the global drugs industry continues apace as Jazz Pharmaceuticals, a company that is registered in Ireland but has offices in California and Philadelphia, has agreed to buy US rival Celator for $1.5bn.

IG Group expects to glide past forecasts – fastFT (subscription)

IG Group says it is on track to top full year expectations thanks to “continued robust performance” and “ongoing strength in trading revenue”.

Market Savvy

US-China Economic Poker Game Looms With Market Calm at Stake – Bloomberg

As top American and Chinese officials prepare for their annual powwow against the backdrop of a looming Federal Reserve interest-rate increase, the policy actions of the world’s two-biggest economies have never been so closely bound.

European Shares Swing After China Surges; Dollar Holds Advance – Bloomberg

European and Asian stocks gained amid optimism the global economy is strong enough to withstand a boost to U.S. borrowing costs that may come as early as June. The dollar was poised for its best monthly rally since 2014.

FX Conduct and Disappearing Bonds – Bloomberg

The job of a financial market intermediary is to acquire and manage information. If you are a broker or dealer or trader or M&A adviser, you have to know who’s buying so you can help sellers sell, and you have to know who’s selling so you can help buyers buy. So you will always have conflicts of interest.

Questions About New Saudi Energy Minister Likely to Dominate OPEC Meeting – WSJ (subscription)

As the Organization of the Petroleum Exporting Countries prepares to meet this week, representatives say there is little mystery about the outcome of the gathering: Any coordinated action on cuts is unlikely.

Boys’ Club Image Overturned by Rise of Women Currency Traders – Bloomberg

Peg Reed knew she was called “Miss Bitch” on the desk when she was trading currencies on 1980s Wall Street. While running foreign-exchange desks in New York at the same time, Charlotte DeBenedictis was paid less than the men working for her.

S&P Says Japan Sales Tax Hike Delay Makes ‘Some Sense’ – Reuters

Delaying a sales tax increase in Japan scheduled for April next year makes “some sense” as it could push the economy into several quarters of anemic growth, making it hard to raise revenue, a senior Standard & Poor’s executive said on Tuesday.

Fed’s Bullard Says Global Markets Seem Well-Prepared for Summer Rate Hike – Reuters

St. Louis Federal Reserve President James Bullard said on Monday global markets appear to be “well-prepared” for a summer interest rate hike from the Fed, although he did not specify a date for the policy move.

Glitch in Bailout Talks Fuels Fears of Delay in Loan Disbursement – Kathimerini

There was fresh concern on Monday that there could be further delays in the disbursement of much-need bailout money to Greece owing to a disagreement between Athens and its creditors, who have demanded changes to prior actions passed in Parliament earlier this month.