Top Headlines
FX Trader Seeking to Beat Your Peers? Set Your Alarm For 3 AM – Bloomberg
As currency markets get upended by high frequency firms in search of a nano-second’s edge, it’s an established notion in the industry that timing is everything. Now Deutsche Bank AG has found a low-tech way to put that principle into practice: Get up at three in the morning.
Sterling Still Stumbling; Negative Bets Build Up – fastFT (subscription)
The Queen’s pound took a beating on Friday after new opinion polls showed a lead for the ‘Leave’ campaign in the impending referendum on EU membership. It’s not picking itself back up now, and bets against the currency are piling up fast.
- Remain Camp Hands Baton to Brown and Labour Big Hitters – FT (subscription)
- Brexit Risk Rattles Markets as Stocks Sink With Pound; Yen Jumps – Bloomberg
- UK Markets Set to Tumble as Brexit Jitters Send Pound Plummeting – Daily Telegraph
- Carney Plans for Worst as Britons Agonize Over European Destiny – Bloomberg
Week Ahead: US Fed, Bank of Japan to Dominate Market Moves this Week – CNBC
Two key central bank decisions sit at the top of investors’ radar this week, after renewed global growth concerns saw U.S. stocks sell off on Friday while benchmark yields fell to record lows.
Euro 2016 – Updates and Build-up to Monday’s Games – BBC
Iran to Cut Gasoline Imports With $14 Billion Refinery Expansion – Bloomberg
Iran plans to increase its refining capacity for crude and condensate by more than 70 percent within the next four years as it works to improve the quality of fuel sold on the domestic market and wean itself off imported gasoline.
And Finally…Profit & Loss (subscription)
The sharp Sterling move we reported last week, and I discussed in the midweek column, seems to have adequately spooked people, for liquidity in the market has apparently dropped off a cliff.
Regulatory News
Regulators to Banks: We’ll Size Up Your Risks – WSJ (subscription)
International regulators want to limit banks’ leeway in assessing the riskiness of their assets, a step that critics say could crimp lending, dent profits and worsen risk rather than reduce it.
Company News
Lotte Scraps $4.5 Billion Hotel IPO – Bloomberg
Lotte Group shelved what may have been a $4.5 billion initial public offering, the world’s biggest so far this year, for its hotel unit after widening investigations pushed the South Korean conglomerate deeper into crisis.
VW Set to Unveil New Strategy – FT (subscription)
Two years ago the chief executive of Volkswagen stood before 20,000 employees and said radical action was needed to achieve €5bn in annual savings by 2017. “We must now take action that is clear, effective and sometimes painful,” said Martin Winterkorn.
Chinese State-Owned Companies Face Greater Scrutiny of EU deals After Ruling – Reuters
Chinese state-owned companies seeking to buy European assets are going to face greater regulatory scrutiny following a landmark European Commission decision on a recent deal.
Symantec to Buy Blue Coat for $4.65bn – FT (subscription)
Symantec is acquiring threat-blocking service Blue Coat Systems from its private-equity owners Bain Capital for $4.65bn, in the struggling antivirus company’s largest deal for more than a decade.
Market Savvy
China’s Yuan Trade System to Open Branches in London, New York – Reuters
China’s state-owned currency marketplace said on Sunday it was preparing to open branches in London and New York as part of efforts to promote the yuan’s global status.
Fitch affirms Japan at ‘A’ outlook revised to ‘Negative’ – Reuters
* Fitch affirms japan at ‘A’; outlook revised to negative
* Japan’s credit profile benefits from sovereign’s exceptionally strong debt tolerance and funding capacity
Who’s That Girl Hanging Around Near You? – The Times (subscription)
Most City traders working flat out to close deals worth millions would barely notice a friendly techie arriving at the next desk to upgrade a computer. After he or she left, few might ever realise that they had not been an IT guy at all but an outsider hired by their employer to spy on them.
Gilts Flying High; UBS Ponders a QE Comeback – fastFT (subscription)
UK government bonds are still flying high, building on Friday’s record-breaking rally. At the open today, yields on 10-year Gilts sank to just 1.2086 per cent, a nose below Friday’s already punchy nadir. (Yields fall when prices rise.)
Shanghai Market Tumbles 3.2% Even As Odds Of An MSCI Inclusion Rise – Barron’s Asia
The Shanghai Composite Index tumbled 3.2% – the largest one-day fall in over 3 months – as the China markets re-opened after a long weekend and only two days ahead of MSCI’s decision on whether it will include China A-shares. MSCI will announce on June 15 in Asia hours.
Bitcoin Price Smashes $600 Barrier – City AM
The recent bitcoin price rally continued in full force this weekend, as prices smashed through the $600 (£421) mark and rose to trade above $650 in a single day on Sunday.