Top Headlines

World’s Biggest Commodity User Pares Imports on Sluggish Growth – Bloomberg

China’s imports of energy, including crude oil, coal and natural gas, slipped in July amid sluggish signs of growth in the world’s largest commodity consumer. Copper purchases also slowed.

 There’s a Big Dollar Crunch Brewing in Markets – Bloomberg

“I need a dollar dollar, a dollar is what I need,” Aloe Blacc sang back in 2010. Japanese banks might now be humming a similar refrain as efforts to insulate big investors known as money market funds from a repeat of the 2008 financial crisis have resulted in a sharp rise in the cost of interbank lending and U.S. dollar funding.

Draghi Jumps Brexit Hurdle to Find Oil Damping Price Outlook – Bloomberg

Whenever Mario Draghi clears a hurdle on his path to higher inflation, a new one appears.

Austria Will Veto Turkey’s Bid to Join European Union: Kurier – Bloomberg

Austrian Foreign Minister Sebastian Kurz will block any effort to advance negotiations necessary for Turkey to join the European Union, he told Austrian newspaper Kurier in an interview over the weekend.

Japanese Emperor Akihito Indicates He Is Ready to Abdicate – WSJ (subscription)

Japanese Emperor Akihito said Monday that age and ill health could make it difficult for him to carry out his official duties, hinting that he wanted to abdicate in what would be the most significant change to the imperial system in the postwar era.

Regulatory News

Bitcoin Exchange to Spread Losses of Hack – WSJ (subscription)

Bitfinex, the digital-currency exchange that lost $65 million to hackers last week, plans to spread the losses among all its users, including those not directly affected by the hack.

Airbus Says U.K. Fraud Office Starts Criminal Bribery Probe – Bloomberg

Airbus Group SE said the U.K. Serious Fraud Office has opened a criminal investigation into allegations of fraud, bribery and corruption relating to some of its third-party consultants.

Company News

Waters Departs HSBC – Profit & Loss

Betsy Waters is leaving her role as head of transactional FX for the Americas at HSBC to join global financial settlement solutions provider, Ripple, as US sales director. She starts at Ripple on September 6.

Former Barclays’ CEO Links Up with Currencies Direct – Profit & Loss

Former Barclays’ CEO Antony Jenkins has joined non-bank FX and international payment services provider Currencies Direct as non-executive chairman.

Market Savvy

Bond Market’s Big Illusion Revealed as U.S. Yields Turn Negative – Bloomberg

For Kaoru Sekiai, getting steady returns for his pension clients in Japan used to be simple: buy U.S. Treasuries.

BOJ Board Divided on Whether Monetary Easing Has Limits: July Meeting Summary – Reuters

Stark divisions in the views of Bank of Japan board members were highlighted on Monday, with some defending unlimited easing of monetary policy and others arguing the BOJ had done enough – to the point of driving big market swings and sapping bond market liquidity.

Stocks, Commodities Buoyed by U.S. Optimism as Baht, Won Advance – Bloomberg

Global equities advanced with commodities after U.S. jobs data burnished sentiment toward the world’s largest economy. Thailand’s shares and currency gained after voters backed a new constitution, while South Korean assets were buoyed by a debt-rating upgrade.

The Insurance Industry Has Been Turned Upside Down by Catastrophe Bonds – WSJ (subscription)

Catastrophe bonds were invented in the early 1990s to help insurance companies mitigate the risk of disasters such as hurricanes and earthquakes. Today, like the very storms they protect against, catastrophe bonds are upending the insurance business.