Refinitiv Shareholders Approve Acquisition by LSEG – Profit & Loss

Refinitiv, one of the world’s largest providers of financial markets data and infrastructure, today announces that its shareholders have agreed definitive terms with the London Stock Exchange Group plc (LSEG) under which LSEG will acquire Refinitiv in an all share transaction for a total enterprise value of approximately US$27 billion. 

Fed Cuts Interest Rates, Signals it May not Need to do More – Reuters

The Federal Reserve cut interest rates on Wednesday, but the head of the U.S. central bank said the move might not be the start of a lengthy campaign to shore up the economy against risks including global weakness.

BOJ’s Amamiya says Fed Rate Cut Positive for Japan’s Economy – Reuters

Bank of Japan Deputy Governor Masayoshi Amamiya said on Thursday the US Federal Reserve’s decision to cut interest rates would likely have a positive effect on the global and Japanese economies by keeping U.S. growth on a solid footing.

Boris Johnson is in a Battle with Currency Traders – Bloomberg

The foreign exchange market has a history of humiliating British prime ministers, even the greatest of them.

US, China to Keep Talking on Trade After Little Progress in Shanghai – Reuters

US and Chinese negotiators ended a brief round of trade talks on Wednesday with little sign of progress and agreed to meet again in September, prolonging an uneasy truce in a year-long trade war between the world’s two largest economies.

China May be Ready for a Strong Yuan, and the US Could Follow Up with a Weak Dollar Policy – South China Morning Post

The yuan could emerge as a rival to the greenback, as Beijing looks ready to adopt a de facto ‘strong yuan’ policy, and there will be room for the yuan to extend its global footprint if Washington chooses to weaken the dollar’s dominance

Thailand’s Currency Keeps Getting Stronger and That’s Sparking Concerns – CNBC

The Thai baht has soared against the U.S. dollar this year, significantly more than many other emerging market currencies.

Brazil Central Bank Cuts Rate to New Low, Sees Room for More – Reuters

Brazil’s central bank cut its benchmark interest rate to a new low of 6.00%, an aggressive first move in a widely anticipated easing cycle to inject life into a moribund economy and prevent inflation from slipping too far below target.

Regulatory News

The Banks are Being Sued for FX Manipulation – So What? – Profit & Loss

The latest legal action in the UK is just a re-hash of what occurred in the US and nothing more. There is nothing new to see here.

Investors Get OK For $10.9M Forex Deal with Citigroup, MUFG – Law360

A New York federal judge gave investors the go-ahead for their $10 million settlement with Citigroup and a smaller deal with MUFG Bank.

Bloomberg Selected as Benchmark Fallback Vendor – Profit & Loss

The International Swaps and Derivatives Association has announced that Bloomberg Index Services Limited has been selected to calculate and publish adjustments related to fallbacks that ISDA intends to implement for certain interest rate benchmarks in its 2006 ISDA Definitions.

CFTC Charges Trader with Spoofing in Financial Futures Markets – CFTC

The US Commodity Futures Trading Commission has issued an order filing and settling charges against Benjamin Cox, a trader and CFTC-registered floor broker based in Chicago, for engaging in spoofing on the Chicago Mercantile Exchange.

Crypto News

Kraken Acquires Digital Asset Reconciliation Platform – Profit & Loss

The digital asset trading platform Kraken has acquired Interchange, an accounting, reconciliation and reporting service provider for cryptocurrency hedge funds, asset managers and fund administrators.

Facebook’s Currency Plan Makes Fintech a Tough Sell in Congress – Roll Call

Members of Congress who support the development of new financial technologies say their job might have gotten tougher after Facebook announced its plan to issue a cryptocurrency.

Financial Conduct Authority Sets Final Rules for Crypto Assets – Financial News

The UK’s financial regulator has confirmed that cryptocurrencies such as bitcoin and ethereum will fall outside its remit, but attempts to create less-volatile digital cash through so-called stablecoins may be regulated.

Crypto Market Risk Rises as Tether Migrates to More Blockchains – Bloomberg

One of the murkier corners of the cryptocurrency market is becoming even less transparent.

Company News

French Given Expanded Role at Traiana – Profit & Loss

Steve French has been promoted to senior director, head of product for Traiana.

Turkish Banks Strengthen Their Foreign Currency Defenses – Bloomberg

As far as its ability to withstand a depreciation in the lira goes, the Turkish banking system is in the best shape it’s been in months. 

Battye Retires from Russell – Profit & Loss

Ian Battye has retired from Russell Investments, after 16 years with the global asset management firm.

Hedge Funds Grasp Opportunities from Stocks Rally – Financial Times

After a miserable 2018, hedge funds are starting to enjoy trading again.

Market Savvy

Japan’s Retail Investors Cut Emerging Market Currency Longs – Yahoo Finance

Japan’s contrarian retail investors have cut long positions in emerging-market currencies – right at the time monetary easing in developed economies suggests they do the opposite.

75 Years Ago the US Dollar Became the World’s Currency. Will that Last? – KWIT

In 1944, almost exactly 75 years ago, more than 700 representatives from 44 nations traveled to the Mount Washington Hotel, a secluded resort in the mountains of Bretton Woods, N.H. With World War II coming to an end, they arrived to hammer out a new financial system for the global economy.

China Factory Activity Shrinks Again in July, Pressure Eases Slightly – Reuters

Pressure on China’s factories eased a little in July thanks to growth-boosting steps from the government, but overall manufacturing activity remained in contraction as a trade war with the United States dented export orders, a private survey showed on Thursday.

Why Weaker Pound has Failed to Turbocharge the Economy – Financial Times

Without an increase in exports, the expected benefit from the currency depreciation is lost.