Top Headlines

EBS Cracks China – Profit & Loss

Icap looks to have secured a deal full of (Far) Eastern promise. The company has extended its association with the China Foreign Exchange Trade System (CFETS) by announcing the latter has chosen its EBS BrokerTec technology for electronic execution services in mainland China.

Trump Risks US Nuclear War, Claims Clinton – FT (subscription)

Hillary Clinton has launched a fierce attack on Donald Trump, accusing her White House rival of pushing a “dangerously incoherent” foreign policy and having a temperament that risked involving the US in a nuclear war.

Swift Threat to Suspend Vulnerable Members – FT (subscription)

Banks with the weakest cyber defences could be kicked off the Swift global bank payments system, its chief executive has warned as the organisation scrambles to restore faith in its security after several raids by hackers.

JP Morgan Publishes Last Look Practices – Profit & Loss

JP Morgan has published a document on its website explaining its trade matching and last look practices in its principal FX business.

Brexit Would Be a ‘Terrible Deal’ for UK, Warns Bank Chief Dimon – FT (subscription)

The chief executive of JPMorgan will call a British exit from the EU a “terrible deal for the British economy” as he becomes the latest international business leader to emphasise the risks facing service industries.

Regulatory News

SEC: Forex Trader Misrepresented Track Record and Hid Massive Losses

The Securities and Exchange Commission today charged a New York City-based trader with defrauding investors out of millions of dollars by misrepresenting her investment track record, the profitability of her investments, and her use of investor funds.

The Latest Wall Street Mishap (Scam). SEC Complaint Against the ‘Supertrader’ Seems Like Mini-Madoff – Forbes

After watching an hour long interview with Karen Bruton the “Supertrader” on it is apparent that even seasoned professionals can find it very difficult to determine the legitimacy of a fellow trader.

BIS: Statement on Capital Arbitrage Transactions

Fed Governors Signal Bigger Bank Capital Requirements Looming – WSJ (subscription)

The biggest American banks will likely have to bulk up their balance sheets further to protect against possible financial shocks, Federal Reserve officials said Thursday.

Company News

Bayer Said to Secure $63 Billion in Financing for Monsanto Bid – Bloomberg

Bayer AG has secured about $63 billion in financing from five banks for its proposed acquisition of Monsanto Co., according to people familiar with the matter, a deal that would make it the world’s biggest supplier of farm chemicals and seeds.

BP Set to Shell Out $175m to Shareholders – City AM

BP agreed to settle with shareholders for $175m (£121.4m) last night over a class action lawsuit sparked by the Deepwater Horizon incident.

Market Savvy

World Stocks Edge Toward One-Month High; US Jobs Data Eyed for Fed Clues – Reuters

World shares advanced toward their highest level in a month on Friday, although investor wariness over rising prospects of a near-term Federal Reserve rate hike subdued activity as traders awaited U.S. jobs data later in the day.

Fed’s Evans Sees Case for Deferring US Rate Hikes for Years – Reuters

In a dovish shot across the bow of a Federal Reserve widely expected to raise U.S. interest rates this summer, Chicago Fed President Charles Evans said Friday he thinks a “reasonable case” can be made for deferring rate hikes until core inflation reaches the Fed’s goal of 2 percent.

Things to Watch in the May Jobs Report – WSJ

Friday’s jobs report from the Labor Department is expected to show a slight deterioration from April’s reading.

Bundesbank Cuts German GDP Forecasts on Weaker Export Demand – Reuters

The Bundesbank cut its German inflation and growth forecasts on Friday citing weaker demand for exports, even as it predicted that robust consumer demand and a tightening labor market would keep the domestic economy buoyant.

ECB Corporate QE Fuels Fear and Loathing – fastFT (subscription)

The European Central Bank will finally launch its landmark corporate bond buying programme next week, but rather than buzzing with euphoria, many credit strategists and investors are wary or even downright fearful of its potential impact, warning that it may be sewing the seeds of a “a systemic financial crisis”.

Players vs Commentators. Is Any of it Worth it? – Polemics Pains

Boring isn’t it. I’ve stopped playing in the markets for a while and am instead making my shilling by doing things that people pay me for rather than being part of the zero sum game of pass the money parcel that is financial trading.

Iceland Takes Step Toward Reserve Requirement for Some Currency Inflows – Reuters

Iceland’s parliament has passed a bill authorizing the central bank to introduce a reserve requirement for certain new inflows of currency.

Weak Yuan Poses Rising Global Risks: Goldman – News.Markets

A weaker yuan heightens the risk of capital flight from China and a rerun of the market falls we saw at the start of this year.

Prime-of-Primes: Here to Stay – Profit & Loss

The recent growth in prime-of-prime (PoP) offerings is unlikely to abate any time soon, said panelists at Profit & Loss Forex Network London, although they added that this might also benefit the traditional FX prime brokers.