Top Headlines
When the Going Gets Tough, the Tough Go Electronic – Profit & Loss
For several years now, it has only taken the most cursory of looks at any broking or trading firm’s results to understand which way the market is going. The release of Icap’s full year results to the end of March 2016 has reiterated the point further. The markets are going electronic.
Pound Jumps Most in 2 Weeks as Remain Vote Rises in Brexit Poll – Bloomberg
The pound rallied the most in two weeks after a poll of UK voters released Monday showed people who support a campaign to remain in the European Union exceeded those saying they will vote to leave by a wider margin than last month.
Sterling Dips after Weak Inflation Data – fastFT (subscription)
The pound has dropped 0.2 per cent intraday against the dollar, and is now up just 0.5 per cent against the greenback on the day at $1.4475.
Dollar Edges Down, Aussie Soars on Less Dovish RBA Minutes – Reuters
The dollar edged down slightly in Asian trading on Tuesday, while the Australian dollar soared after central bank minutes reduced expectations of an interest rate cut.
Oil Near Six-Month High as Outages Support – Reuters
Oil traded at around $49 a barrel on Tuesday within sight of a six-month high, supported by supply outages in Nigeria, Canada and other producers that are eroding a persistent glut.
China to Restrict Trading Halts, Report Says, Boosting MSCI Odds – Bloomberg
Shanghai and Shenzhen stock exchanges will publish new rules on trading halts as early as next week, the China Securities Journal reported, a move that would raise the odds of the country’s stocks being included in MSCI Indexes.
Japan to Struggle to Overcome G7 Rift on Yen, Fiscal Policy – Reuters
A weekend gathering of G7 finance leaders may expose a rift on issues ranging from currency and fiscal policies within the close-knit group of advanced economies, dashing Japan’s hopes of mustering a coordinated policy response to spur global growth.
IMF Wants Eurozone Debt Relief for Greece Until 2040 – WSJ
The International Monetary Fund is pressing the eurozone to let Greece skip paying interest or principal on bailout loans until 2040, say officials familiar with the talks.
Regulatory News
SEC: Statement on Trade Reporting in the US Treasury Market
CMA Wants (UK) Banks to Work Harder For Their Customers
ECB Working Paper Series: The collateral channel of open market operations
Company News
Warren Buffett’s Berkshire Takes $1 billion Bite of Apple – Reuters
Warren Buffett’s Berkshire Hathaway Inc revealed a more than $1 billion stake in Apple Inc in a rare foray into the technology sector, which Buffett has largely shunned apart from a poorly performing investment in IBM.
Elysium Joins Forces with TradAir – Profit & Loss
Elysium Technology and TradAir have formed an alliance to offer what the companies say is a fully integrated, next generation front to back solution for the FX industry.
Citadel Securities in Automated Trading Desk Deal – FT (subscription)
Citadel Securities, one of the largest market makers in US stocks and options, has bought assets of Automated Trading Desk, an automated market making pioneer owned by Citigroup, as it continues to expand its trading business.
Vodafone Beats Views With 2.5% Quarterly Network Sales Gain – Bloomberg
Wireless carrier Vodafone Group Plc reported quarterly sales growth on its network that beat estimates, helped by improved results in several key European markets.
Market Savvy
Banks Hold Daily Talks on Brexit Chaos Plans – The Times (subscription)
The Bank of England is having “daily conversations” with banks to ensure they could cope with any market turmoil in the event of a vote in favour of Britain leaving the European Union.
After 86 Months, All the Signals Are Telling Us to Plan a (UK) Rate Rise – Daily Telegraph
The Monetary Policy Committee’s May monthly meeting last week was the 86th since interest rates were cut to 0.5pc in March 2009. For once in a long time, I agree with the committee’s decision to hold.
AEP: Bond Shortage Deepens as US Treasury Stops Issuing Debt – The Daily Telegraph
The US government paid off more debt than it issued last month in a stunning turn-around for America’s public finances, causing an acute shortage of bonds and a further downward slide in borrowing costs.
ECB Criticism Stems from Blurred Lines – Weidmann – fastFT (subscription)
The European Central Bank’s extraordinary stimulus measures have drawn criticism because they risk overstepping the realm of monetary policy, Bundesbank chief Jens Weidmann has said.
CME Bins FX Futures with No Open Interest – Profit & Loss
CME Group has delisted three FX futures contracts and the previously listed contract months of two other FX futures contracts.