S&P 500 Touches Record High, Equals Longest-Ever Bull Run – Reuters
The benchmark S&P 500 touched a record high on Tuesday and equaled its longest-ever bull-market run, buoyed by strong earnings reports in the consumer sector and relative calm in the trade dispute between the United States and China.
NAFTA ‘Handshake’ Deal with Mexico Targeted for Thursday – Politico
The Trump administration is planning to formally announce on Thursday that it has reached a breakthrough in NAFTA talks with Mexico, clearing the way for Canada to rejoin negotiations to modernize the free trade pact, three sources close to the talks told Politico.
A People’s Bank of China senior official insists the yuan’s exchange rate is set by market forces, refuting the US president’s latest claim.
Few Thrills Ahead for Trump From a Fed on a Mission of its Own – Reuters
“Not thrilled” may become a regular state of mind for U.S. President Donald Trump in the months ahead, as the Federal Reserve is likely to press on with interest rate rises to recalibrate policy for an economy boosted by the president’s own tax cuts.
Australian Prime Minister Malcolm Turnbull has rejected the resignations of seven cabinet members despite them backing a rival for leadership, the country’s foreign minister said on Wednesday, as Turnbull seeks to quell the threat of a renewed leadership challenge.
Italian Government Bonds Rally After Moody’s Extends Ratings Review – Financial Times (subscription)
Prices on Italian government debt got a boost on Tuesday after Moody’s extended the deadline for its review into a potential downgrade of the country’s credit rating.
Angola Asks IMF for Talks on Bailout in Return for Reform –Financial Times (subscription)
Sub-Saharan Africa’s third-biggest economy plagued by forex shortages and bad loans.
Regulatory News
Risk of a No-Deal Brexit Matters for European Bank Bonds – Financial Times (subscription)
The rising threat of a no-deal Brexit is causing consternation for investors who are worried that more than €100bn of European bank debt issued under English law could no longer comply with the EU regulation.
South Korea Exchange Ups Scrutiny of Merrill Lynch Trading – Financial Times (subscription)
South Korea’s stock exchange has stepped up its monitoring of high-frequency trading by the Seoul branch of Bank of America Merrill Lynch after local investors complained about alleged unfair trades by the US brokerage.
Criminal Proceedings Open Against Alleged Futures Fraudster – Investment Week
The Financial Conduct Authority has opened a criminal prosecution against an alleged fraudster who is accused of operating an unauthorised investment scheme, which purported to carry out futures trading for the benefit of investors.
Bogucki Lawyers Seek Dismissal for Third Time – FX Week (subscription)
Defence attorneys ask court to look into instructions given to grand jury about the nature of Barclays and HP’s relationship.
Crypto News
Herding in Cryptocurrency Markets – World Scientific
Tests show that market volatility in cryptocurrencies do not have a significant impact on herding behaviour.
Bitcoin ‘Hodlers’ Await Next Cryptocurrency Growth Spurt – Deutsche Welle
A further drop in the value of Bitcoin and other cryptocurrencies has recently left investors nursing heavy losses. Many proponents are holding out for a new breakout, if their digital assets can go mainstream.
Bets Against Bitcoin’s Price Are Nearing Record Highs – Coindesk
The number of short orders placed on bitcoin is less than 3 percent – or 1,196 orders – away from setting a new all-time high, according to data from cryptocurrency exchange Bitfinex.
Blockchain Starts to Show Real Promise Amid the Hype – Financial News (subscription)
The blockchain revolution is here. The technology long associated with Bitcoin is now being used to make businesses as varied as trade finance, videogaming, travel insurance, and diamond mining more efficient and more secure.
Company News
Investment Gives US Market, Economy Fresh Legs – Reuters
Business investment is giving fresh legs to the U.S. economy and its aging bull market. Companies are pouring a big chunk of what they saved from last year’s tax cuts into new plant, equipment and software. That provides welcome momentum – and some insurance against trade troubles.
Norway Oil Fund Returns Narrowly Miss Benchmark in Second Quarter – Financial Times (subscription)
Norway’s trillion-dollar national oil fund modestly undershot its benchmark for the first time in two years in the second quarter, with equities dragged down by global tensions over trade and bond investments muted, despite a flicker of volatility stemming from Italy.
Aberdeen Standard Turns to AI in Hunt for Returns – Financial News (subscription)
Aberdeen Standard Investments, one of the UK’s biggest fund managers, has joined the ranks of those betting on artificial intelligence to improve investment returns.
Market Savvy
Pimco Veteran Says Recession Possible in as Early as Three Years – Bloomberg
Pacific Investment Management Co. sees a 70 percent chance the world economy enters a recession over the next five years as ultra-loose monetary policy from the U.S. to Europe comes to a halt.
Most Speculative Attacks Do Not Succeed: Currency Crises and Currency Crashes – World Scientific
While there has been considerable research on speculative attacks on currencies, relatively little attention has been given to whether they are successful or not.
Look Beyond Turkey for Clues to Emerging Markets Weakness – Financial Times (subscription)
Economies’ fate tied to China’s deleveraging, Fed tightening and the dollar’s strength.
Euro Backs Off Two-Week High as Markets Eye Fed Minutes, Trade Talks – Reuters
The euro on Wednesday snapped a four-day rally that had lifted it to a two-week high as markets awaited news of U.S.-China trade talks and Federal Reserve minutes.