Top Headlines

ECB Ready to Support Markets In Event of Brexit – WSJ

The European Central Bank stands ready to work with the Bank of England to provide additional liquidity to financial markets if the U.K. votes to leave the European Union next week, a person familiar with the matter said.

BOJ Could be Bracing for Brexit with Delayed Bond Buying – Nikkei Asian Review

Risk-averse investors are surging into Japan’s bond market as the U.K. prepares for a referendum on European Union membership, pushing yields to record lows and possibly forcing the Bank of Japan to delay bond-buying operations as a way to tamp down turbulence later on.

Libya Accuses Goldman Sachs of Paying for Prostitute – NY Post

Lloyd Blankfein may have a hooker problem. Goldman Sachs stands accused by Libya’s sovereign wealth fund of having one of its bankers pay for a prostitute and other gifts in order to win the business of the country’s $67 billion investment fund in 2006.

Clinton Has 12-Point Edge Over Trump in Bloomberg National Poll

Democrat Hillary Clinton has opened up a double-digit lead nationally over Republican Donald Trump, whose negatives remain unusually high for a presidential candidate amid early indications that the Orlando terrorist attack has had little direct impact on the 2016 race.

Rising Brexit Angst Drives Weaker-Pound Wagers to $35 Billion – Bloomberg

The amount wagered on the pound falling to 1980s levels has more than doubled during the past three months.,,, Investors are…bolstering their protection against sterling declines, and have bet 25 billion pounds ($35 billion) this year on options that would profit if the currency tumbled to $1.35 or lower after the June 23 vote.

Iceland’s Fightback Leaves Ronaldo in a Rage – The Times (subscription)

Was it really only 8 per cent of the Icelandic population that had travelled to Saint-Étienne to be part of the nation’s first match at a leading tournament?

Jimmy Page and Robert Plant in Court as Band Goes on Trial for ‘Stairway to Heaven’ – Daily Telegraph

Jimmy Page and Robert Plant, two of Led Zeppelin’s founder members, arrived in court in Los Angeles on Tuesday to defend themselves against accusations that Stairway to Heaven, the band’s most famous song, was plagiarised.

Kerviel Clashes With SocGen Over Liability for $5.5 Billion Loss – Bloomberg

Just days after winning an unfair-dismissal claim against Societe Generale SA, convicted rogue trader Jerome Kerviel is back in court in a clash over his liability for the lender’s record 4.9 billion-euro ($5.5 billion) loss eight years ago.

Regulatory News

SEC Staff Voice Backing for IEX to Become Formal Stock Exchange – FT (subscription)

Employees at the Securities and Exchange Commission have recommended full approval of a controversial application by trading upstart IEX to become a formal stock exchange, according to a person with knowledge of the situation.

CFTC Approves Final Rule to Amend Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps

The U.S. Commodity Futures Trading Commission (CFTC) today approved a final rule (the Final Rule) that amends existing swaps reporting regulations in order to provide additional clarity to swap counterparties and registered entities regarding their reporting obligations for cleared swap transactions; and to improve the efficiency of data collection and maintenance associated with the reporting of the swaps involved in a cleared swap transaction.

Schroders Takes Hong Kong Fine over Disclosures – fastFT (subscription)

The Hong Kong regulator has fined Schroders, the UK’s largest listed asset manager, $1.7m for failing to adequately disclose the stocks held by the company that were listed on the local stock exchange.

Company News

Jimmy Choo Shares on Front Foot after Upbeat Trading – fastFT (subscription)

Jimmy Choo shares are kicking higher this morning after the UK shoemaker said it had made a good start to the year, despite a challenging environment for many luxury retailers.

VW Said to Plan Merging Components Units, Weigh Asset Sale – Bloomberg

Volkswagen AG plans to bundle the components businesses of its different brands to save costs and will review disposing of peripheral assets, according to people familiar with the matter, part of a sweeping strategy review by Chief Executive Officer Matthias Mueller as he seeks to navigate Europe’s largest carmaker out of the emissions scandal.

Uber Is Said to Seek Up to $2 Billion in High-Yield Debt – Bloomberg

Uber Technologies Inc.’s insatiable appetite for capital is driving it toward the market for high-yield debt.

Aveva Shares Nosedive as Schneider Deal is Called off… Again – Daily Telegraph

Shares in Cambride-based technology firm Aveva plunged more than 17pc after its potential merger with Schneider Electric’s software division collapsed once again, just days after the companies revealed they had revived talks.

Market Savvy

RFX Network Connect to Charles River – Profit & Loss

Russell Investments’ RFX Network has expanded its reach by establishing itself as a certified end point on the Charles River Network Service, thus continuing its drive to offer an alternative to the WMR Benchmark Fix.

At $50/Barrel, Oil Risks ‘Reverse Goldilocks’ Syndrome – Reuters

Oil’s battle to reclaim $50 a barrel may have left it in a sticky situation, where the price is too low to lure fresh investor bulls and too high to force more production offline.

Oil Price Recovery is Over – Goldman Sachs – fastFT (subscription)

Goldman Sachs, one of the most influential banks in commodity markets, has called time on the recent recovery in oil prices, which has seen crude rise almost 80 per cent cent from its January lows.

China RMB Lending Bounces Back in May – fastFT (subscription)

China’s new renminbi denominated loan growth came in faster than expected for May, continuing a whipsaw pattern of unexpectedly large rises followed by falls that has characterised domestic lending conditions during the year to date.

FX Collusion Scandal Behind Rise in Algo Adoption in 2015 – Profit & Loss

An overall increase in the number of firms using algorithmic-based trading to execute FX orders was seen in both Europe and the US in 2015, says a new report from consultancy firm Greenwich Associates

MSCI Delays Adding China’s Local Currency Shares to EM Index – WSJ

MSCI Inc., a widely-followed global index provider, said on Tuesday it wasn’t adding China’s local-currency shares to its benchmark emerging markets index, a fresh setback for China’s efforts to join international markets.

Fed Expected to Hold Rates Steady as Brexit Vote Clouds Outlook – Reuters

The Federal Reserve is expected to keep interest rates unchanged on Wednesday and signal if it still plans to raise rates twice in 2016 amid concerns about a U.S. hiring slowdown and Britain’s possible exit from the European Union.