Top Headlines
More Pain for Mrs Watanabe – Profit & Loss
The legions of Japanese retail investors holding onto the carry trade, dubbed the Japanese housewives or Mrs Watanabes, are facing more pain today – a Japanese holiday – as USDJPY slumps to a new low for the year, indeed its lowest level since October 2014.
Japan’s Abenomics ‘Dead in the Water’ after US Currency Warnings – Daily Telegraph
The Bank of Japan has been forced to retreat from further emergency stimulus after a blizzard of criticism at home and abroad, and warnings that extreme measures may now be doing more harm than good.
Currency Trading’s 20% Drop Raises Specter of Flash-Crash Future – Bloomberg
The world’s biggest financial market has shrunk by 20% during the past year and a half.
Swiss National Bank’s Jordan Says Still Room for Policy Manoeuvres – Reuters
The Swiss National Bank has further room to manoeuvre in its monetary policy and will not shy away from using unconventional measures if that is in the country’s interests, its chairman said on Friday.
Exclusive: EU would divorce UK before any new relationship – Reuters
The European Union would insist on completing a swift divorce with Britain before starting to forge any new relationship if UK voters decide in June to leave the 28-member bloc.
Trump Attacks Clinton on Gender, Risking Backlash From Women – Reuters
Republican presidential front-runner Donald Trump waded into politically risky territory this week when he accused Democrat Hillary Clinton of exploiting her gender to win votes and said she would have little support if she were not a woman.
China’s Central Bank Raises Yuan Fixing by Most Since July 2005 – Bloomberg
China’s central bank responded to an overnight tumble in the dollar by strengthening its currency fixing the most since a peg was dismantled in July 2005.
BNP Hires Goldman Face – Profit & Loss
Regulatory News
BoE Cautions on Deposits with Small Banks – FT (subscription)
Local authorities and other uninsured depositors should be more careful about keeping their money at small financial institutions, the Bank of England has warned, as it prepares to introduce new bank windup rules.
Company News
Look Out Corporate America: After Apple Sale, Carl Icahn Is Armed And Dangerous – Forbes
Carl Icahn’s announcement on Thursday that he had sold out of his Apple position should strike a little bit of fear in the hearts of executives and directors across America.
Robert Linton, Steadfast ’80s Wall Street Banker, Dies at 90 – New York Times
Robert E Linton, a prominent Wall Street executive who led the swashbuckling investment bank Drexel Burnham Lambert in the years before it imploded in scandal but who was largely untainted himself, died on Tuesday in Manhattan.
RBS losses double to nearly £1bn – fastFT (subscription)
Royal Bank of Scotland has reported doubling of losses to nearly £1bn following a large payment to the government to restart dividends, a day after warning of a delay to offloading Williams & Glyn.
Head of Deutsche Bank Integrity Committee to Resign – FT (subscription)
Georg Thoma is to resign from Deutsche Bank’s supervisory board after coming under fire from other board members in a battle over how to deal with the German bank’s past scandals.
Danske Beats Estimates as Bank Weathers Negative Rates – Bloomberg
Danske Bank A/S reported profit that beat analyst estimates last quarter as Denmark’s biggest bank was able to navigate through negative interest rates and volatile markets.
Market Savvy
Dollar Sinks as Oil Near $46; Asian Stocks, Europe Futures Fall – Bloomberg
The dollar dropped against all of its G-10 peers after weaker-than-expected U.S. economic growth dimmed prospects for a Federal Reserve interest-rate hike. Asian stocks fell with European equity index futures and oil traded near $46 a barrel.
Why the Bank of Japan Held Fire for Another Day – WSJ (subscription)
The BOJ’s lack of action caught markets by surprise, but doesn’t mean it is done easing
Saudis to Push Oil Output Higher but Won’t Flood Market – Reuters
Saudi Arabia’s oil output will edge up close to record highs in coming weeks to meet summer demand for power but is unlikely to be pushed to the limit and flood global markets, Saudi-based industry sources said.
Silver Prices Near One-Year High; Fundamentals Take Over – News.Markets
Rather than simply adjusting to the gold price, it seems the supply dynamics for this year are now helping the metal too.
ECB’s Praet: Rate Cut Not Expected in Near Future – Reuters
The European Central Bank would need the inflation outlook to worsen significantly for another rate cut, but pushing rates deeper into negative territory remains an option, Peter Praet, the bank’s chief economist told a Spanish newspaper.
France Picks Up as Investment Boosts Growth to Fastest in a Year – Bloomberg
The French economy expanded faster than economists forecast in the first quarter, powered by increasing corporate investment and a rebound in consumer spending.
Press Releases
SEC Seeks Public Comment on Plan to Create A Consolidated Audit Trail