Theresa May to Become New PM After Tory Rival Leadsom Withdraws – The Guardian
Theresa May will become Britain’s second female prime minister on Wednesday, a rapid ascent to the premiership that came after her sole remaining challenger suddenly withdrew from the leadership race.
Asian Shares Rally as Wall Street Strikes New Record High – Reuters
Asian stocks rose to a 2-1/2-month peak on Tuesday, a day after Wall Street shares hit a record high thanks to a combination of upbeat U.S. data and expectations of more stimulus from global policymakers.
Japanese Exporters Hurt by Strong Yen, Threatening a Fragile Economy - Reuters
Japanese Prime Minister Shinzo Abe may have won a landslide victory in weekend elections but the strong yen is threatening to spoil the party as it undermines his economic stimulus policies by hurting the earnings of the nation’s exporters and companies who have big overseas operations.
Japan Keeps Markets Waiting on Fiscal Stimulus Package Details – Bloomberg
As the yen continued to weaken and Japanese stocks extended their gains for a second day, Prime Minister Shinzo Abe’s government kept markets guessing on the details of a much-anticipated fiscal stimulus package.
Donald Trump Said Hillary Clinton Would ‘Make a Good President’ in 2008 – Wall Street Journal (subscription)
Kind words for presumptive presidential rival came in a previously unreported clip from ‘Trumped!,’ a syndicated radio feature that aired from 2004 to 2008
Hague Tribunal Rules China’s South China Sea Claims Unfounded – Reuters
Judges at an arbitration tribunal in The Hague on Tuesday rejected China’s claims to economic rights across large swathes of the South China Sea in a ruling that will be claimed as a victory by the Philippines.
Maduro Says Citibank to Close Venzuela’s Currency Accounts – Financial Times (subscription)
Embattled Venezuela seems to be too much to take for Citibank, as Venezuela’s socialist President Nicolás Maduro said on Monday that the US-based bank will shut down his government’s foreign currency accounts within a month.
Financial Stability Should Not Become Fed’s Third Mandate: Mester – Reuters
Maintaining stability in financial markets should not be an explicit goal for the Federal Reserve, which should use interest rates to head off a crisis only if more precise and better-suited tools fail, a top Fed official said on Tuesday.
LMAX Survey Doubts Impact of Global Code: Firm Calls for UK Leadership – Profit & Loss
In a release to accompany a new survey taken by the firm, LMAX Exchange casts doubt on the ability of the FX Global Code of Conduct to deliver industry reform in a timely fashion.
Bank of America Denies Existence of Alleged ‘Bro’s Club’ – Bloomberg
Bank of America Corp. said a managing director who accused the bank of being a “bro’s club” and filed a gender-bias lawsuit only came up with the inflammatory term after meeting with her lawyers.
Sustained GBP Fall May Pressure UK Corporate Ratings – Profit & Loss
The depreciation of sterling since the Brexit vote could increase pressure on UK corporate ratings, with UK retailers and airlines particularly exposed, says ratings agency, Fitch.
Wells Fargo Joins CLS as Settlement Member – Profit & Loss
CLS Group has announced that Wells Fargo has joined as a settlement member. Wells Fargo joins 64 other settlement member banks in becoming a direct participant in CLS’s settlement and risk mitigation system – which settles approximately $5 trillion a day on behalf of its clients.
Morgan Stanley Has Some Theories for Why Hedge Funds Are Doing So Poorly – Bloomberg
Poor performance by hedge funds continues to be a hot topic, but no one wants to take the blame for low returns.
State Street to Pilot Margin Settlement Service – Profit & Loss
DTCC-Euroclear GlobalCollateral, a joint venture of Euroclear and The Depository Trust & Clearing Corporation (DTCC), says that State Street has agreed to participate in a pilot program to test their Margin Settlement Messaging Service.
UBS’s Orcel Signals Halt to Years of Investment Bank Cuts – Bloomberg
UBS Group AG’s investment bank workforce is the right size after thousands of job cuts in recent years, even as challenges emerge from the U.K.’s vote to leave the European Union, division president Andrea Orcel said.
Is China Undertaking a Stealth Devaluation Ahead of the US Election? – South China Morning Post
Devaluing the yuan well ahead of January’s inauguration of the next US president is sensible given the growing tensions over trade.
Bank of Japan Will Need to Slow Bond Purchases, Ex-Director Says – Bloomberg
The Bank of Japan will need to reduce the pace of its record purchases of government debt as it is approaching the limits of the bond market, said a former BOJ executive director.
China Second-Quarter Economic Growth Seen Cooling to 6.6 percent, Weakest in Seven Years – Reuters
China’s economic growth likely cooled to a fresh seven-year low of 6.6 percent in the second quarter as the industrial sector loses steam and a boost from financial services fades, according to a Reuters poll of 61 economists.
Yen and Dollar Highs Offer Macro Hedge Funds Some Relief – Financial Times (subscription)
Macro hedge funds get some relief, but search for yield is going to get tougher.
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