Top Headlines
Trump Becomes Presumptive Republican Nominee as Cruz Exits Race – Bloomberg
Donald Trump, the billionaire real-estate developer who has upended the rules of modern campaigning, became the presumptive Republican presidential nominee on Tuesday after driving his top challenger, Texas Senator Ted Cruz, from the race with a crushing Indiana primary win.
- How Ted Cruz Dropped the Ball in his Bid for the White House – FT Subscription)
- Exiting 2016 Race, Republican Cruz Leaves Himself a Path Forward – Reuters
- How ‘Stop Trump’ Failed to Halt the Republican Front-Runner – Reuters
Brexit Uncertainty Raises Alarm at Bank of England – FT (subscription)
Economic uncertainty has hit its highest level in Britain in at least 19 years in the lead-up to the EU referendum, according to an influential index compiled by Stanford University.
BGC Nabs Sedergreen – Profit & Loss
Profit & Loss understands that Keith Sedergreen, managing director of Tullett Prebon in Sydney, has resigned from the firm to join BGC in Sydney as co-managing director, reporting to Mark Webster, executive managing director and general manager, Asia.
Schaeuble Rules Out ‘Big Greece Crisis’ This Year – Kathimerini
German Finance Minister Wolfgang Schaeuble said on Tuesday that he did not expect a “big crisis” to erupt this year in Greece, which is in talks with lenders on concluding its bailout review to unlock new funds and debt relief.
AEP: US Dollar Plunges as World Plays Dangerous Game of Pass the Parcel – Daily Telegraph
The US dollar has plunged to a 16-month low in the latest wild move for the global financial system, tightening the currency noose on the eurozone and Japan as they struggle to break out of a debt-deflation trap.
BIS:OTC Derivatives Statistics at End-December 2015
Global OTC derivatives markets saw a broad-based decline in activity in the second half of 2015. The notional amount of outstanding contracts fell by 11% between end-June 2015 and end-December 2015, from $552 trillion to $493 trillion (view data). Trade compression to eliminate redundant contracts was a key driver.
Regulatory News
Seven Banks Settle ISDAfix Claim – Profit & Loss
Seven banks have settled a private US lawsuit accusing them of rigging the ISDAfix interest rate benchmark, and agreed to pay $324 million. The settlement comes five weeks after a US District Judge refused to dismiss the lawsuit.
US Rule Would Shield Failed Banks from Hedge Funds in Future Crisis – Reuters
Big US banks would have greater protection from hedge funds in a future financial crisis under a Federal Reserve proposal released on Tuesday to require that some investors wait 48 hours before cutting ties with failing lenders.
SEC Whistleblower Focus Has Been Busy To Date in 2016 – National Law Review
The SEC enacted a whistleblower program in 2011, similar to the Federal False Claims Act and the numerous state false claims acts. In like fashion, someone who voluntarily provides information to the SEC that leads to a successful prosecution may be awarded 10% – 30% of the enforcement funds collected in excess of $1 million. To date, the program has paid out more than $57 million to 26 whistleblowers.
Company News
BHP’s Aussie Shares Fall Most Since GFC on $43.5bn Civil Lawsuit – fastFT (subscription)
BHP Billiton’s Sydney-listed shares just had their biggest one-day drop since the financial crisis. Are investors in the London-listed stock due a second helping?
European Stocks: Sainsbury Sinks; Next Bounces; Maersk Stays Afloat – fastFT (subscription)
It’s been another bumper morning for European corporate earnings. Here’s a round up of the movers on the stock markets.
Shell Profits Tumble Following BG Merger – Daily Telegraph
Shell posted a sharp fall in profits in its first set of results since merging with global gas giant BG Group, but nevertheless beat expectations against a backdrop of low oil prices.
SocGen Eyes Fresh Cost Cuts – FT
Société Générale says it will deepen cost cuts at its investment bank after rocky trading conditions hit first-quarter results.
Apple Loses Trademark Fight over iPhone Name in China – BBC
Apple has lost a trademark fight in China, meaning a firm which sells handbags and other leather goods can continue use the name “iPhone”.
Market Savvy
PBOC Opens Taps to China Policy Banks in Bid to Sharpen Stimulus – Bloomberg
China’s central bank is turning on the credit taps to its policy banks as it seeks to support the economy by channeling credit to designated areas of the government’s choosing.
US Treasury Debates New-for-Old Bond Swap – FT (subscription)
The US Treasury has debated a sweeping overhaul of the $13tn government bond market, including a proposal to buy back old debt as officials focus on the health of trading in a core asset of many global investment portfolios.
Three Competing Theories on Blockchain “Disruption” – Profit & Loss
Fragile Currency-War Truce May Fracture – Bloomberg
The foreign exchange market is notorious for overshooting. A currency that starts moving in a particular direction as economic fundamentals change will often end up at a rate that can’t be justified by the data.
Euro-Area Economy Starts Quarter in a ‘Low Gear,’ Markit Says – Bloomberg
European Central Bank policy is helping to sustain growth in the euro area economy, though the pace is “tepid” and inflation remains too low, according to Markit Economics.
Press Releases
Fortex Inc. introduces its next-generation “xForce Prime of Prime Suite” for FX Brokers
Abu Dhabi Global Market and the China Banking Regulatory Commission