Top Headlines

Lawsuit Accusing 16 Big Banks of Libor Manipulation Reinstated – The Guardian

A US appeals court on Monday reinstated a civil lawsuit accusing 16 major banks of conspiring to manipulate the Libor benchmark interest rate. The ruling, which overturns a 2013 decision, could bankrupt the institutions, the judges warned.

Sterling Surges after Brexit Poll – fastFT (subscription)

Sterling has racked up a hefty morning rise, climbing 0.5 per cent against the dollar after a poll in the Telegraph showed the ‘remain’ camp building a decisive lead in the EU referendum campaign.

Austria’s Move to the Right is Worrying Bankers – CNBC

The near victory of the far-right in Sunday’s Austrian elections is a symptom of the rise of populism in Europe, experts said on Tuesday, warning that the move towards the right held risks for investors and the broader euro zone economy.

Aussie Tumbles on Talk of More Interest Rate Cuts – Reuters

The Australian dollar fell to a 2-1/2-month low on Tuesday on talk that the Reserve Bank of Australia (RBA) might cut interest rates again this year, after its governor said the central bank was committed to inflation-targeting policy.

IMF Proposes Measures to Reduce Debt – Kathimerini

A day before Tuesday’s crucial Eurogroup, the International Monetary Fund issued its own Debt Sustainability Analysis (DSA), proposing measures that could reduce the Greek national debt by up to 50 percent of gross domestic product up to 2060, while making it clear that the existing targets of the Greek program cannot be implemented

Regulatory News

Roth to Step Down as NFA Head – Profit & Loss

The National Futures Association (NFA) has announced that its president and CEO, Daniel Roth, will retire in the coming year.

The Real Story Behind Phil Mickelson’s SEC Settlement – Wealth Management

At first glance, the SEC’s insider trading settlement with professional golfer Phil Mickelson is noteworthy if only because of Mickelson’s celebrity status and the press coverage it has generated.

HKEX Gets Green Light for RMB Futures – Profit & Loss

Hong Kong Exchanges and Clearing Limited (HKEX) has received regulatory approval to introduce its planned cash-settled EUR/RMB, JPY/RMB, AUD/RMB and RMB/USD futures on Monday, May 30.

Singapore Orders BSI bank Unit Shut as 1MDB Probe Widens – Reuters

Singapore ordered BSI’s operations in the city-state to close, as Switzerland started criminal proceedings against the private bank, in the biggest international crackdown on financial entities dealing with a troubled Malaysian state fund.

Company News

Tudor Cuts Fees on Biggest Fund to Keep Investors on Board – Bloomberg

Tudor Investment Corp., one of the oldest and most expensive hedge funds, is trimming fees as the finance industry’s highest-paid money managers face a growing backlash over their lackluster performance.

Moody’s Downgrades Deutsche Bank’s Credit Rating – FT (subscription)

The credit rating agency Moody’s has cut Deutsche Bank’s debt rating for the second time this year, arguing that the German bank faces “increased challenges” in pulling off its turnround plan.

Old Mutual Nears Deal to Sell US Business – FT (subscription)

Old Mutual is close to a deal to sell its US asset management business to New York-listed Affiliated Managers Group as part of its radical restructuring plan.

Investment Banks Endure Worst First Quarter Since Financial Crisis – City AM

The world’s 12 largest investment banks endured their slowest start since the financial crisis, in what’s typically their most lucrative period.

CBOE Takes Stake in Rival Eris Exchange – FT (subscription)

CBOE Holdings, the US derivatives exchange, is to take a minority stake in Eris Exchange, providing a capital injection for its fledging rival to develop a series of new contracts for trading interest rates.

Swift CEO to Say More Banks May Have Been Breached by Hackers – Bloomberg

Hackers may have targeted more banks than have been previously reported, according to prepared remarks by the chief executive officer of Swift, the global interbank messaging system is set to give on Tuesday.

Market Savvy

Oil’s Rebound Has Citigroup Seeing Worst Over for Commodities – Bloomberg

The commodities market has turned a corner and prices are unlikely to return to lows hit in the first quarter, according to Citigroup Inc., which boosted forecasts from metals to grains amid the oil-led recovery.

‘Massive Bailout’ Needed in China, Banking Analyst Chu Says – Bloomberg

Charlene Chu, a banking analyst who made her name warning of the risks from China’s credit binge, said a bailout in the trillions of dollars is needed to tackle the bad-debt burden dragging down the nation’s economy.

Japan’s Abe Seeks Foreign Support for More Government Stimulus – WSJ (subscription)

Prime Minister Shinzo Abe is hoping to get some help from his Group of Seven friends this.

Dollar Rally Gathers Pace on Fed Speculation as Commodities Drop – Bloomberg

The dollar rallied and crude oil fell with gold and most industrial metals as speculation mounted that the Federal Reserve will raise interest rates as early as next month. European stocks rose.