Top Headlines

US Close to Passing Test for June Rate Rise, Fed Official Says – FT (subscription)

The US is on the verge of meeting most of the economic conditions the Federal Reserve has set to increase interest rates next month, according to a member of the rate-setting Federal Open Market Committee.

EU Referendum: Brexit ‘Would Spark Year-Long recession’ – BBC

Leaving the European Union would tip the UK into a year-long recession and lower Britain’s economic growth by 3.6%, according to Treasury analysis.

G7 Debates BOJ Easing, Brexit Risk and Fiscal Pro-Growth Measures – Yahoo News

The G7 finance ministers and central bank governors concluded their 2-day meeting in Sendai, Japan on Sunday.

Greek Bonds Jump Bailout Hopes – fastFT (subscription)

Bring on the debt relief. Yields on 10-year Greek government debt have fallen 21 basis points (0.21 percentage points) this morning to 7.19 per cent – the lowest level since mid-November last year.

Exclusive: Brazil Organizes Investor Meetings for State Asset Sales – Reuters

The Brazilian government plans to host a round of investor meetings to market a broad plan of asset sales, a key initiative to help raise cash and reduce a record budget deficit, a senior official and people familiar with the matter told Reuters.

Austrian Presidential Run-Off too Close to Call – FT (subscription)

A neck-and-neck race to become Austria’s president will be decided later on Monday after a heated campaign during which support for Norbert Hofer, the far-right nationalist candidate, surged.

Company News

Bayer Announces $62 Billion Cash Offer for Monsanto – Reuters

German drugs and chemicals group Bayer AG said it had made an offer to buy US seeds company Monsanto Co for $122 per share in cash, or a total value of $62 billion including debt, to create the world’s biggest agricultural supplier.

Man Utd Shares Waver in Frankfurt as Mourinho Hire Expected – Reuters

Falling Pound Prompts UK Dividend Slump – FT (subscription)

Sterling’s fall against the dollar has sparked a nosedive in company dividends as the Brexit vote takes its toll on UK investment portfolios.

Axa Stubs Out Tobacco Investments – Daily Telegraph

Axa is giving up cigarettes, saying it “makes no sense” for the insurer to keep its €1.8bn portfolio of tobacco investments.

FXecosystem Live with Metamako – Profit & Loss

Connectivity provider FXecosystem has enhanced its network monitoring capabilities through a new partnership with deterministic network device specialist Metamako.

Market Savvy

Last Look: Time to End the Debate? – Profit & Loss

There are few topics in the FX industry that have stirred up as much controversy over the past year as the practice of last look.

A Different Point of View – Profit & Loss

At a time when new regulations, divergent central bank policies and changing technology are threatening to fundamentally change how the global FX market operates, a unique perspective on the world’s largest asset class is always welcome.

Slumping Japan Exports, Factory Orders Add to Headaches for PM Abe, BOJ – Reuters

Japan’s exports fell sharply in April and manufacturing activity suffered the fastest contraction since Prime Minister Shinzo Abe swept to power in late 2012, providing further evidence that the premier’s Abenomics stimulus policy is struggling for traction.

AEP: Saudi financial Crisis ‘Could Leave Oil at $25’ – Daily Telegraph

Saudi Arabia faces a vicious liquidity squeeze as capital continues to leak out the country, with a sharp contraction of the money supply and mounting stress in the banking system.

Regulatory News

FXPA Supports Buy Side View of FX Derivatives

The Foreign Exchange Professionals Association (FXPA) submitted written comments in response to the Commodity Futures Trading Commission’s (CFTC) Market Risk Advisory Committee (MRAC) meeting held to look at how well the derivatives markets are functioning.