Top Headlines

ICE Confirms It May Bid for LSE Group, Sending Shares to Record – Bloomberg

Intercontinental Exchange Inc. said it is considering making an offer for London Stock Exchange Group Plc, a week after Deutsche Boerse AG said it was in merger talks with the U.K. company.

China Frees Banks to Boost Lending, in Shift on Yuan Stance – Wall Street Journal (subscription)

Central bank, caught in a bind, cuts reserve requirements for lenders, a move that threatens downward pressure on currency.


Emerging-Market Currencies Show Wear and Tear – Wall Street Journal (subscription)

Finance ministers have vowed not to engage in currency wars to boost exports, but the scars from the financial crisis are still apparent.

Abe Adviser says Japan May Need FX Intervention to Limit Yen’s Gains – Reuters

Japan’s finance ministry may need to undertake “sporadic intervention” in the currency market to limit the yen’s gains, a senior economic adviser to Prime Minister Shinzo Abe said on Tuesday.

Norway to Sell NOK 900 mln of FX per Day in March – Reuters

Norway’s central bank will sell foreign exchange equivalent of 900 million Norwegian crowns per day in March, the same amount it sold in February, the bank said on Monday.

Ruble Gains with Oil as Hedge Funds Increase Currency Bets – Bloomberg

The ruble rose as oil headed for the first monthly gain since October and hedge funds increased bets the Russian currency will strengthen.

East EU’s Currency Dilemma Resurfaces as Orban Sees Crossroads – Bloomberg

The European Union is facing a potential crossroads, with countries that use the euro targeting deeper integration, while others face the dilemma of whether to give up national powers or be left out, Hungarian Prime Minister Viktor Orban said.

Fed’s Dudley Sees Risks to U.S. Economic Outlook Tilting to Downside – Reuters

An influential Federal Reserve official on Tuesday said he sees downside risks to his U.S. economic outlook, an assessment that could flag a longer pause before the Fed’s next interest-rate hike than he and his colleagues had earlier signaled.

The Mystery of Japan’s Shrinking US Treasury Holdings – Nikkei News

Sizable declines in the Japanese government’s U.S. Treasury holdings over the past year or so have caught the attention of financial market professionals, leaving them scratching their heads over the possible motive.

Regulatory News

The Next Dodd-Frank Headache for Banks: Living Wills – Wall Street Journal (subscription)

The 2010 Dodd-Frank Act contained more than 365,000 words, but the next big headache for Wall Street banks may turn on just one: ‘credible’.

Company News

 This Hedge Fund Topped Rivals with Mix of Algorithms and 16th-Century Theory – Bloomberg

The market turbulence leading investors to flee hedge funds around the world is providing a measure of vindication for one asset manager.

Morgan Stanley Duo to Launch FX Analytics Startup – Financial News (subscription)

Two former leading lights of Morgan Stanley’s foreign exchange business are setting up a service to give clients independent analysis of the quality and cost of their FX transactions.

CME and Bloomberg Team up for USD Index Product – Profit & Loss

CME Group has announced the launch of CME Bloomberg Dollar Spot Index futures.

Market Savvy

Dollar Drops Versus Yen as Weak Data Fuel Recession Fears – Dow Jones Newswires

The dollar declined further against the yen Monday after U.S. manufacturing activity deteriorated in February, stoking fears about a recession.

Canada FX Debt-C$ Weakens as G20 Underwhelms but Oil Rally Limits Drop – Reuters

The Canadian dollar weakened against its U.S. counterpart on Monday after a Group of 20 meeting underwhelmed, but losses were pared as crude oil prices rose and giant commodity consumer China eased monetary policy in an attempt to spur growth.

China Feb Factory Activity Shrinks More than Expected, Layoffs on the Rise – Reuters

Activity in China’s manufacturing sector shrank more sharply than expected in February, surveys showed on Tuesday, prompting smaller companies to shed workers at the fastest pace in seven years and suggesting Beijing will have to ramp up stimulus to avoid a deeper economic slowdown.

China Jan Services Trade Deficit Widens to $20.7 bln – FX Regulator – Reuters

China’s trade deficit in services widened to $20.7 billion in January compared with $18.6 billion in December, the foreign exchange regulator said.

Philippine Peso Goes from Best to Worst Performer in Asia – Bloomberg

As Benigno Aquino closes out a presidency that delivered the Philippines four Standard & Poor’s rating upgrades, investors are turning to the country’s dollar debt to shelter from peso losses.

Press Releases

RMB Stands Fast as the Second Most Active Currency in Malaysia for Payments with China and Hong Kong – Swift

SWIFT’s RMB Tracker shows the Renminbi holds a steady second place for payments between Malaysia and China/Hong Kong, while the US dollar continues to dominate the corridor.