Top Headlines

Pound Rallies from Worst 2-Week since 2009 on Stimulus Hint – Bloomberg

The pound rose, rallying from its biggest two-week drop in more than seven years after U.K. authorities flagged measures to mitigate the impact on the economy of the vote to leave the European Union.

What. Just. Happened? – ABC

Australia is starting the week without a winner after Saturday’s federal election delivered no result. How did we get here?

Brexit: Winners and Losers – Profit & Loss [subscription]

With the dust having settled somewhat following the UK’s historical referendum decision to leave the European Union, there are some clear winners and – unfortunately – some losers emerging in the aftermath.

China Sentences Ex-Presidential Aide to Life for Corruption- Bloomberg

A Chinese court sentenced a former top aide to retired President Hu Jintao to life imprisonment in a closed-door trial, capping a series of prosecutions against a Communist Party faction dubbed the “New Gang of Four.”

Death Toll Rises to 142 From Baghdad Blast – WSJ

A massive car bomb exploded overnight in the heart of one of Baghdad’s busiest commercial areas, killing at least 142 people and wounding many others.

Regulatory News

Brexit to Have Negligible Impact on ISDA Agreements – Profit & Loss [subscription]

Britain’s decision to leave the European Union (EU) will have little or no impact on ISDA agreements, legal experts said on a webinar last week.

NFA Creates Dedicated FX Compliance Rule – Profit & Loss [subscription]

 Company News

 CICC, China Investment Securities Said to Be in Merger Talks – Bloomberg

Investment bank China International Capital Corp. and brokerage China Investment Securities Co., firms with 186 billion yuan ($28 billion) of assets last year, are in talks on a possible merger, people familiar with the matter said.

Japan Inc. Pairs Inflation Forecasts, Adding Concerns for Kuroda – Bloomberg

Japanese companies cut their forecasts for inflation for five years’ time, dimming the prospects for Bank of Japan Governor Haruhiko Kuroda meeting the 2 percent inflation target during the next fiscal year as he has projected.

VW Rejects Cash Offer For European Car Owners – WSJ

The day Volkswagen AG ’s lawyers were in court sealing a historic $15 billion settlement to resolve its emissions scandal in the U.S., Chief Executive Matthias Müller went to Brussels to try to defuse a potential flare up with the European Commission over demands that the German car maker also offer generous compensation for nearly nine million European customers.

Market Savvy

Banks Face More Legal Action – This Time Over Sibor – Profit & Loss [subscription]

Three years after the Monetary Authority of Singapore (MAS) sanctioned 20 banks and 133 traders over breaches in good conduct regarding the local interest rate fixing (Sibor), two US investment funds filed a class action lawsuit in New York on Friday (July 1) alleging “a massive conspiracy” to rig interest rates.

Gold Prices Will Hit Record High in Next 18 months as Global Bond Yields Crash: Pro – CBNC

Gold prices may hit all-time highs in the next 18 months amid low to negative global bond yields, said a fund manager on Monday, joining a chorus of bullish calls on the safe haven commodity.

Renzi Ready to Defy EU Over Banks Rescue – FT [subscription]

In Race to be Asia’s Fintech Hub, Singapore Leads Hong Kong – Reuters

Singapore is rushing to reinvent itself as Asia’s financial technology, or fintech, hub to fend off a regulatory threat to its wealth management industry and revive a sluggish economy.

Mining Stocks Climb With Commodities on Stimulus Bets; Yen Drops – Bloomberg

Mining stocks gained as commodities advanced and the yen weakened amid optimism central banks in some of the world’s leading economies will step up monetary stimulus.