Top Headlines

Fed’s Lockhart and Williams Say June Is a ‘Live’ Meeting – WSJ (subscription)

Two regional Federal Reserve bank presidents said Tuesday that the US central bank could raise short-term interest rates at its meeting next month, despite low market expectations for such a move and uncertainty surrounding the referendum on the UK’s membership in the European Union.

Corporates Cross Fingers on Brexit – Profit & Loss

A new report from Greenwich Associates shows that a large number of UK and EU companies appear to be shockingly complacent about the risks of Brexit.

Fund Managers Shun UK stocks – FT (subscription)

Global fund managers are avoiding UK stocks in the run-up to a referendum on Britain’s membership of the EU, as the chance of a Brexit now tops investors’ worry list.

Japan GDP Growth Rate Jumps to 1.7% – FT (subscription)

Japan’s economy grew at an annualised rate of 1.7 per cent in the first quarter of 2016, easily beating expectations of a 0.3 per cent rise, in a big boost to the country’s beleaguered policymakers.

Senate Defies Saudis by Passing Bill to Let 9/11 Victims Sue – Bloomberg

The Senate passed legislation Tuesday allowing Sept 11 victims and their families to sue other countries for their role in the attacks, defying White House objections and reported threats by Saudi Arabia to sell its US debt holdings.

Heseltine savages Boris Johnson – The Times (subscription)

Boris Johnson is losing his political judgment and stooping to “obscene” depths under the strain of leading the campaign for Brexit, a Tory grandee claimed last night.

Trump Would Talk to North Korea’s Kim – Reuters

Republican presidential candidate Donald Trump said on Tuesday he is willing to talk to North Korean leader Kim Jong Un to try to stop Pyongyang’s nuclear program, proposing a major shift in U.S. policy toward the isolated nation.

Jihadist Website Profited from Google Ad Platform – FT (subscription)

An Islamist extremist accused of funding the 2009 Jakarta suicide bombings has been selling advertising space on his website to international brands including Citigroup, IBM and Microsoft using a service provided by Google.

Company News

LSE and Deutsche Börse to Hold Vote After Referendum – fastFT (subscription)

The London Stock Exchange and Deutsche Börse will put their proposed $30bn merger to create one of the world’s largest exchanges operators before shareholders only after Britain has voted on whether to leave the European Union on June 23.

SABMiller Toasts Good Results Despite Dollar Headwinds – City AM

The soon-to-be acquired SABMiller toasted its “good” results for the financial year to 31 March this morning, despite taking hits from currency headwinds and lower reported profits.

Antofagasta: Another ‘Year or Two’ of Low Copper Prices – fastFT (subscription)

Antofagasta’s chairman, Jean-Paul Luksic, is remaining cautious on copper prices.

China’s Midea Group Announces Bid for Germany’s Kuka – WSJ (subscription)

Chinese home-appliance maker Midea Group announced Wednesday it plans to launch a takeover of Germany’s Kuka AG, in a deal that values the industrial robot maker at more than $5 billion, making it one of the largest unsolicited approaches of a foreign company by a Chinese buyer.

Nike Said to Agree to $87 Million Chelsea Apparel Deal – Bloomberg

Chelsea and Nike have agreed to the second-biggest apparel deal in English soccer. The US sports manufacturer will pay as much as 60 million pounds ($87 million) per season over at least 10 years to outfit the Premier League team starting in 2017, according to people familiar with the matter.

Suzuki Shares Plunge After Flawed Fuel-Efficiency Test – Bloomberg

Suzuki Motor Corp. plunged after saying it used an improper method to test the fuel efficiency of its vehicles, widening a scandal for Japan’s auto industry that first originated with Mitsubishi Motors Corp.

Market Savvy

Yuan’s 17% Devaluation Versus Yen Turns BOJ Pain Into China Gain – Bloomberg

Haruhiko Kuroda’s pain is China’s gain. The Bank of Japan Governor’s efforts to bolster economic growth have been undermined by the yen’s surge, which outstripped all other Asian peers this year and spurred carmakers to project lower-than-estimated profits.

China Home Price Growth Fastest in Two Years – FT (subscription)

Chinese house prices rose at the fastest pace for two years in April, despite accentuated oversupply after investment poured into the construction sector in the first quarter.

A Closer Look at: Emerging Markets FX – Profit & Loss

David Wilkins, head of e-FX sales for EMEA and Asia at Goldman Sachs, discusses the growth of electronic EMFX trading on single bank platforms.

CLS Records 2016 Highs During BIS April Survey Month – Profit & Loss

The latest figures from CLS show that April was the busiest month this year for the settlement system.

German Court to Rule on ECB Bond-Buying Plan – fastFT (subscription) Germany’s powerful constitutional court will finally deliver its ruling on the European Central Bank’s programme to buy sovereign bonds of troubled member states, two days before the UK’s EU referendum.

Regulatory News

SEC Says Cyber Security Biggest Risk to Financial System – Reuters

SEC Awards Over $5 Million to Whistleblower – 24/7 Wall St