Top Headlines
Maduro Orders 96 Percent Devaluation in Hyperinflation-Stricken Venezuela – Reuters
Venezuela’s president Nicolas Maduro announced on Friday a single exchange rate pegged to his socialist government’s petro cryptocurrency, effectively devaluing by 96 percent in a move economists said would fan hyperinflation in the chaotic country.
Data indicates shifting trading patterns and could offer a challenge to the incumbents in the multi-dealer platform industry.
Turkish Lira Trades Steady After Rating Downgrades – Reuters
The Turkish lira traded steady against the dollar on Monday, showing no reaction to Friday night’s moves by Moody’s and Standard & Poor’s ratings agencies to cut Turkey’s sovereign credit ratings deeper into “junk” territory.
As Euro Crisis Ends, Italy Stokes Fear of a Revival – Wall Street Journal (subscription)
The end of Greece’s marathon bailout on Monday would mark the closure of the eurozone crisis—if only it weren’t for Italy, and nagging fears that the euro isn’t fixed after all.
- Greece’s Bailout Is Ending. The Pain Is Far From Over – New York Times
- Italy to Defy EU’s Grip With €80bn Infrastructure Blitz – Daily Telegraph
Renewed HK Dollar Pressure Coming from Weak Renminbi – Financial Times (subscription)
More action is expected from the HKMA to strengthen the local currency.
Modi Risks Paying Political Price After Rupee Hits All-Time Low –Financial Times (subscription)
India’s PM had vowed currency would strengthen under his strong leadership.
Japanese Investors Burnt by ‘Double-Decker’ Turkish Lira Bet – Financial Times (subscription)
Funds trying to increase returns have been caught out by the falling currency.
Regulatory News
Want to Trade an Uncleared IRS? That’ll be 8bp – Profit & Loss
A new staff working paper from the Bank of England finds that clients trading interest rate swaps in an uncleared environment are paying around eight basis points for the privilege.
Beijing Orders Banks to Boost Lending to Exporters – Financial Times (subscription)
The move comes ahead of critical week of trade talks as Chinese stocks and currency wilt.
EU May Force Banking Jobs Away from UK After Brexit, Warns City Boss – The Guardian
Standard Chartered’s Tracy Clarke says tougher demands could see more jobs than planned shift to Frankfurt, Paris and Dublin.
Company News
Goldman Subject of Whistleblower Complaint Over Mifid II – Financial Times (subscription)
A whistleblower at Goldman Sachs has gone to the UK’s financial watchdog to allege that the Wall Street bank has improperly recorded trading data.
Hudson Joins BGC – Profit & Loss
Profit & Lossunderstands that Liam Hudson is joining BGC Group to run its e-FX businesses, including Fenics FX, which was launched last year, MidFX and the electronic FX options offering.
Trump Backs CEOs, Proposes Easing Corporate Reporting Rules – Reuters
US President Donald Trump asked securities regulators to explore replacing quarterly reporting requirements with half-yearly filings at the urging of executives including PepsiCo Chief Executive Indra Nooyi, reigniting a debate about how often companies should give financial updates to investors.
RBA Chief Slams Banks Over Their Behaviour – Sydney Morning Herald
Reserve Bank Governor Philip Lowe has lashed out at Australia’s banking system, telling a Parliamentary committee he has been “appalled” by the behaviour revealed in the banking royal commission.
Crypto News
What Next for Cryptocurrencies After Bubble Bursts? – Financial Times (subscription)
The cryptocurrency bubble has burst. In January, the total market capitalisation of cryptocurrencies had climbed beyond $800bn, up from just $18bn a year earlier according to data provider CoinMarketCap. Now the market has lost three-quarters of its value to stand at $200bn.
Crypto Trading Revenue May Double, Bernstein Says – Bloomberg
The reports of the death of the cryptocurrency market may really be greatly exaggerated. That’s the view of Sanford C. Bernstein & Co. analysts, who say that revenue generated from crypto exchanges could more than double to as much as $4 billion this year even amid the collapse in the prices of digital assets.
Row Erupts After Sibos Adopts Hard Line on Crypto Firms – Financial News (subscription)
The organiser of Sibos, the world’s biggest banking technology conference, has taken a hard line on cryptocurrency firms exhibiting at its upcoming conference in Australia, sparking a row between the events company and the fintech sector.
Asian Countries Vie to Set Up Region’s ‘Crypto Valleys’ – Asian Nikkei Review
Philippines, South Korea and Thailand ease regulations to lure fintech investment
Market Savvy
Dollar Little Changed Ahead of Anticipated US-China Talks – Reuters
The dollar edged higher on Monday as confirmation was awaited that there will be talks this week between China and the United States, which markets hope will lead to an easing of their trade disputes.
Global Central Bankers Gather to Find a Solution to Market Crisis – South China Morning Post
Forgotten amid Donald Trump’s trade war insanity and diplomatic dumpster fires was Asia’s biggest fear entering into 2018: an aggressive US Federal Reserve.
Commodity Prices Suffer as Emerging Markets Tumble – Financial Times (subscription)
The sell-off in emerging markets has spilled into commodities, hitting prices of key resources from copper to oil. But there are growing fears that it’s not just a knock-on effect of weakening currencies or a short-term speculative washout in risky assets. It could be a harbinger of weaker growth in China.
Iran Says No OPEC Member Can Take Over its Share of Oil Exports – Reuters
Iran told OPEC on Sunday no member country should be allowed to take over another member’s share of oil exports, expressing Tehran’s concern about Saudi Arabia’s offer to pump more oil in the face of U.S. sanctions on Iranian oil sales.