Top Headlines

Pound Volatility Intensifies for Sixth Week as Brexit Vote Nears – Bloomberg

Trader expectations for price swings in the pound climbed for a sixth week to a fresh seven-year high as anxiety about a potential British exit from the European Union gripped investors.

Euro 2016: France Kick Off Tournament Amid Security, Strike and Weather Fears – BBC

Euro 2016 kicks off on Friday when hosts France face Group A opponents Romania at the Stade de France amid an unprecedented security operation.


Elizabeth Warren Endorses Hillary Clinton – CNN

Elizabeth Warren endorsed presumptive Democratic presidential nominee Hillary Clinton Thursday and called on Democrats to unite behind her.


Peru’s Kuczynski Beats Fujimori in Near-Final Vote Count – Reuters

Former investment banker Pedro Pablo Kuczynski was on track to become Peru’s next president after a near-final vote tally gave him a slim lead in the tightest election in decades, although his populist rival Keiko Fujimori had yet to accept defeat.

German Lawmakers Vote in Favor of Paying Out Next Aid Tranche for Greece – Reuters

The German parliament’s budget committee on Friday voted in favor of releasing the next tranche of aid to Greece from the European Stability Mechanism (ESM) rescue fund, lawmakers said.

Regulatory News

Whistle-Blower Said to Aid SEC in Deutsche Bank Bond Probe – Bloomberg

The US Securities and Exchange Commission is being helped by a whistle-blower in an investigation of Deutsche Bank AG’s post-crisis mortgage-trading business, according to people with knowledge of the situation.

SEC Issues $17 Million Whistleblower Award

The Securities and Exchange Commission today announced a whistleblower award of more than $17 million to a former company employee whose detailed tip substantially advanced the agency’s investigation and ultimate enforcement action.

CFTC Proposes Additional Interest Rate Swaps For Clearing Requirement

The US Commodity Futures Trading Commission (CFTC) today proposed amending CFTC regulation 50.4(a) to require certain additional interest rate swaps to be cleared by market participants through a registered derivatives clearing organization (DCO) or a DCO that has been exempted from registration under the CEA (Exempt DCO).

BBA to Merge with Three Other Finance Industry Groups – fastFT (subscription)

The British Bankers’ Association’s members have voted to merge with three other trade bodies to form a new consolidated trade association for the UK’s finance sector.

Company News

Loo Roll Maker Accrol Goes Public With £93m Float – Daily Telegraph

A tissue manufacturer that supplies supermarket giants such as Aldi, Tesco and Morrisons has joined the stock market with a market capitalisation of £93m.

Top Goldman Banker Called to Testify in BHS Inquiry – FT (subscription)

Michael Sherwood, a senior Goldman Sachs executive and confidant of retail tycoon Sir Philip Green, is to be called before a broadening parliamentary investigation into the failure of the UK retail chain BHS.

BP Teams up with Det Norkse to Form Norwegian ‘Super-Independent’ Oil Producer – Daily Telegraph

BP is merging its Norwegian business with Scandinavian explorer Det Norske in deal that will form Norway’s largest independent oil company.

Market Savvy

Dollar Enjoys Reprieve as Euro, Sterling Feel the Heat – Reuters

The dollar index was on track for a modest weekly gain on Friday, having bounced off this week’s one-month lows as the euro took a heavy spill while sterling stayed under a cloud on jitters over the upcoming Brexit vote.

China’s Bond Fund Assets Down 11% in April – Ignites Asia (subscription)China’s public mutual fund assets stabilised overall in April after falling sharply in the first quarter of the year; however, assets in bond funds in China shrank, as investors exited the asset class amid declining returns for the funds.

ECB Doesn’t Need New Stimulus to Hit Goal, Policy Maker Says – Bloomberg

The European Central Bank has pledged enough stimulus to return euro-area inflation to its goal, policy maker Bostjan Jazbec said, in a sign that officials may sit tight over the summer months.

Foreign Demand Soars for US Treasurys, the ‘One-Eyed King’ – WSJ (subscription)

Investors across the globe are seeking better returns from the negative yields and record-low rates found in Japan and Europe

Markets at Risk of Abrupt Reversal – Bundesbank Chief – fastFT (subscription)

A small change in central bank interest rates risks triggering an abrupt reversal in global markets, in echoes of the last financial crisis, the head of the German Bundesbank has warned.

Gross: $10trn Negative Debt a ‘Supernova Which Will Explode’ – CityWire

Janus’ Bill Gross has described the world’s $10 trillion stock of negative-yielding sovereigns as a ‘a supernova that will explode one day’.

Singapore’s GIC to Buy Stake in Irish Telecoms Group Eir – FT (subscription)

GIC, the sovereign wealth fund of Singapore, plans to buy a large minority stake in Irish telecoms group Eir, in a deal that is expected to value the former state monopoly provider at more than €3.3bn.

Rewriting history: understanding revisions to UK GDP – Bank Underground

Seeing into the future is always difficult. But in the world of macroeconomics, just trying to look at the past can be a challenge.