| June 02, 2017 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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John Lothian News Takes to the Road Again, Going High and Low
By John J. Lothian
John Lothian News is sending a team to London tomorrow for the FIA Global's IDX conference, and meanwhile yours truly is setting off on another Scouting trip to Kentucky to explore Mammoth Cave.
Jim Kharouf will lead the London team, joined by the always enterprising Spencer Doar and the steady handed videographer Mike Forrester. We will again be producing a video series featuring various exchange and industry leaders following the IDX conference.
My trip has 10 Scouts and four other leaders in a trip that will see the boys zipline through a cave in Southern Illinois, explore Mammoth Cave and go horseback riding, among other adventures set in Kentucky. I will likely be out of communication for much of the week while camping.
JLN Managing Editor Sarah Rudolph and CIO Jeff Bergstrom will be managing operations from headquarters while the London team and I are away. Contact them with any news you want included in JLN.
The registration for the MarketsWiki Education World of Opportunity is up and running at www.marketswikieducation.com. We had some problems yesterday with that link, but this one is good.
We have added journalist and CME Board member Terry Savage to our list of speakers for the Chicago series. Also, the OCC has agreed to be sponsor of the Chicago series, joining CME Group, CBOE, Barchart, Trading Technologies, the Stuart School of Business at Illinois Tech and The IFM as sponsors. Nasdaq and Thomson Reuters are among the sponsors for the New York event. We can still add more sponsors. Contact me if interested.
And don't forget to check out and register for the FOW-JLN conference Trading Chicago on June 28th. Check out the agenda here.
Have a great weekend!
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G7 allies lead anger at Trump's exit from Paris climate agreement; Germany, France and Italy sign joint statement defending accord but Britain abstains
Arthur Beesley in Brussels and Jim Pickard in London - FT
International anger at Donald Trump's decision to withdraw from the Paris climate agreement has been led by the US's closest G7 allies, with Germany, France and Italy warning that they are unwilling to renegotiate the treaty.
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***** How to make friends and influence the destruction of the old world order.
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Meet My Connection: BSO Finding Ways To Connect Traders To Emerging Markets
Jim Kharouf, JLN
Archimedes is credited with saying "The shortest distance between two points is a straight line," but that's not always the fastest.
Michael Ourabah says the fastest route to and from emerging markets is through his network BSO. The firm, effectively started by Ourabah out of his college dorm room in France in 2004, has found its niche in helping connect trading firms, banks, brokers and technology firms from major financial hubs to developing markets. And with that, revenues have grown from $1 million in year one to more than $25 million.
Read the rest here.
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Trump's Big Paris Mistake; The president shamefully abandons the fight against humanity's greatest threat.
The Editors - Bloomberg
Any rational, responsible business leader, faced with an existential threat to his enterprise, would take steps to manage the risk. With his decision to leave the Paris climate accord, President Donald Trump is putting the lie to one of his central claims: that he would run the country like a business.
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***** The word of the day is "shame."
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Welcome to Twitter, Mr. Blankfein, You're Going to Love It
Liz Hoffman - WSJ
Lloyd Blankfein is fond of saying Goldman Sachs Group Inc. is a technology company at heart. Now its CEO is on Twitter.
/goo.gl/9AsWkI
***** You can follow this famous tweeter at @lloydblankfein
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| Sponsored Content |
MIAX's Brown on Number 15 and Complex Order Books
Click here to watch
In February, MIAX added MIAX PEARL to the options exchange landscape, bringing the total number of exchanges to 15. In this video from the Options Industry Conference in Scottsdale, Ariz., Shelly Brown, executive vice president, strategic planning and operations at MIAX, talks about figuring out PEARL's fee structure and the group's focus on continued development of complex order book functionality.
Sponsored
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China ready to cash in on rise of machine learning; Country's vast markets should provide raw material to fuel rise of intelligent systems
Richard Waters - FT
Some types of technology seem perfectly designed for fast followers. These competitors may not be on the leading edge of a new idea but can react fast enough to stake out a large part of the new market for themselves.
/goo.gl/kcnfOl
***** China graduates more engineers every year than the U.S. does all college graduates in all fields.
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S&P, Moody's Downgrade Illinois to Near Junk, Lowest Ever for a U.S. State
Elizabeth Campbell - Bloomberg
No end to budget impasse sends state to brink of junk rating; State appropriations debt cut to below investment grade
Illinois had its bond rating downgraded to one step above junk by Moody's Investors Service and S&P Global Ratings, the lowest ranking on record for a U.S. state, as the long-running political stalemate over the budget shows no signs of ending.
/goo.gl/ueAzgJ
***** One man's junk is another man's bad investment.
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Girls Outdoor Exploring Club Begins In Elmhurst; It is the first group for sixth through eighth grade girls of its kind in Elmhurst.
Andrea Earnest - Patch
A new Scouting unit in Elmhurst will encourage girls to learn and practice the same outdoor and leadership skills taught in the Boy Scout program, according to a release from Elmhurst Scouts. It is the first group for sixth through eighth grade girls of its kind in Elmhurst.
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***** My newest Scouting endeavor
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Economics and the human instinct for storytelling
Robert Shiller - Booth School at University of Chicago
Twenty-five years ago, Chicago Booth's Dick Thaler and I set up a series of workshops at the National Bureau of Economic Research on what we called "behavioral economics." Behavioral economics was economics with an input from the psychology department. Every department has its own tool kit for approaching research; we were very much influenced by psychology. Maybe a little sociology, maybe a little anthropology, but nevertheless all social-science fields.
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***** Once upon a time, we used to seek market based solutions.
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Thursday's Top Three
Our top stories started with a little self-help with 10 Things Successful People Never Do. Second was FCM Rankings and Concentration: Q1 2017. Third was about security in Don't Expose Yourself: A Guide to Online Privacy
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MarketsWiki Stats
101,744,283 pages viewed; 22,526 pages; 206,204 edits
MarketsWiki Statistics
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| Lead Stories | Banks shed bond indices as regulation tightens; Exchanges such as LSE and ICE charge into lucrative business of selling market data
Eric Platt and Gregory Meyer - FT
For decades, bond investors relied on a coterie of investment banks on Wall Street to measure their performance.
/goo.gl/5VNiWw
IEX chief sticks to principles in battle for presence; US exchange trying to kindle change rather than adopting tactics used by its rivals
Nicole Bullock - FT
Brad Katsuyama, the founder and chief executive of IEX, is sticking to his guns even if his competitors have yet to feel much fire.
/goo.gl/s1AhvB
Michael Rüdiger, new Chairman of the Exchange Council of the Frankfurt Stock Exchange
Deutsche Börse
Chairman of the Board of DekaBank assumes office of Lars Hille
The Exchange Council of the Frankfurt Stock Exchange today unanimously voted Michael Rüdiger as the new Chairman. Rüdiger is Chairman of the Board of DekaBank Deutsche Girozentrale and has belonged to the Board since the last election on 1 December 2016 as a representative of the public-sector credit institutions. He took over the chairmanship of the representative of the cooperative financial group, Lars Hille, who left DZ BANK AG in October 2017, thus posting membership of the Exchange Council after around ten years. The vice chairman remains Dr. Matthias Zieschang, a member of the Management Board of Fraport AG.
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ICE Announces Record Quarter for Bond Trading Platform; Adds Streaming Evaluated Bond Prices ; Achieves 7th consecutive quarter of record growth with $5.7 billion notional traded in first quarter
ICE
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that volumes for North American corporate bonds on the ICE Credit Trade electronic trading platform increased to $5.7 billion of traded notional in the first quarter of 2017, up 52% compared to fourth quarter 2016 notional traded. Launched in late 2015, the platform has achieved seven consecutive quarters of record notional value of bonds traded. The average trade size executed on the platform now exceeds $1.1 million for U.S. Investment Grade bonds and $700,000 for U.S. High Yield bonds.
/goo.gl/EaO8Dj
JPMorgan raises indirect stake in Moscow bourse to 5 percent
Reuters
Moscow Exchange (MOEX.MM) said on Thursday one of JPMorgan Chase's (JPM.N) companies had increased its stake to 5 percent in the Micex owner.
/goo.gl/2OJqpi
What Did Trump Just Do? The Paris Climate Withdrawal Explained
Christopher Flavelle - Bloomberg
Announcement doesn't end the accord, and could be reversed; President says he wants to negotiate a new climate agreement
The U.S. departure from the Paris climate accord won't happen overnight, as President Donald Trump's announcement Thursday sets in motion a years-long process to withdraw from the landmark agreement -- and raises a host of questions about what comes next.
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'Climate Change Is Real': Many U.S. Companies Lament Paris Accord Exit
Daniel Victor - NY Times
Soon after President Trump announced that the United States would back out of the Paris climate accord, several large companies based in the United States that had supported the international pact said they were disappointed by the decision and would continue their environmental efforts.
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Are You Hiding Money From the IRS Overseas? Be Very Afraid; The agency has new tools to find secret accounts and penalties are harsher
Laura Saunders - WSJ
The Internal Revenue Service is getting better at finding secret stashes of overseas cash and tax evaders are receiving harsher penalties than ever, including prison.
/goo.gl/6Ep5Lc
Everyone But Donald Trump Is Standing By the Paris Climate Agreement
Alex Morales, Josh Wingrove and Bruce Douglas - Bloomberg
France's Macron tells Trump the accord can't be renegotiated; From Brazil to China, nations reaffirm pledge to cut emissions
Global leaders vowed to press ahead with the Paris climate accord after Donald Trump pulled the world's biggest economy out of the pact, and Europe's heavy hitters rebuffed the American president's suggestion that it could be renegotiated.
/goo.gl/gYzWgt
Trump's Paris Exit Leaves Him Isolated From C-Suites to Capitals
Jennifer A Dlouhy - Bloomberg
Executives once terrified of Trump's tweets are now rebelling; Republican leaders and Trump voters remain supportive
The response to President Donald Trump's announcement he was exiting the Paris climate accord and wanted to renegotiate on his terms was immediate: The leaders of France, Germany and Italy said no.
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Blankfein Tweets, Iger Quits Trump Council in CEO Climate Fury
Joe Carroll, Rick Clough and Mary Schlangenstein - Bloomberg
Goldman Sachs leader ventures into Twittersphere to object; Virgin Group's Branson writes he 'wants to cry' after decision
The business community lashed back at Donald Trump's decision to ditch the Paris climate accord, as two high-profile executives quit the president's advisory council and Goldman Sachs Group Inc.'s Lloyd Blankfein took to Twitter for the first time ever to express disapproval.
/goo.gl/XtyRaQ
FX: Noble Bank launches service to reduce post-trade costs
Paul Golden - Euromoney Magazine
By allowing clients to create their own pools of credit, Noble Bank International reckons it has developed a service that will significantly reduce counterparty settlement risk for FX trading. According to the bank, Noble FX is a response to years of decreased access to credit constraining FX trading, as increased fragmentation, expensive post-trade mechanisms and burdensome regulatory capital requirements force traditional providers to reduce their client lists and cut credit to existing clients or even exit the market.
jlne.ws/2stIhDH
The Rise and Fall of a Commodities Giant in Asia; Noble Group rode a commodities boom, but has been brought low by debt and bad bets.
Andy Hoffman - Bloomberg
The profit warning landed at 10:37 p.m. Singapore time on a Tuesday in early May. It was the night before a holiday in the city-state where shares of Noble Group Ltd. are traded. The market would be closed the next day, giving investors more than 24 hours to digest the information. On Thursday the stock fell 32 percent, its biggest-ever one-day drop. It's fallen further since.
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China's Largest Bitcoin Exchanges to Allow Withdrawals Again
Alexandria Arnold and Lulu Yilun Chen - Bloomberg
Cryptocurrency rises as much as 8.5 percent as rally resumes; Resumption of withdrawals ends almost four-month moratorium
China's three biggest bitcoin exchanges are ending a self-imposed moratorium on withdrawals, helping the cryptocurrency to resume its record-breaking rally.
/goo.gl/RQzKQD
Yuan's Forecasters Getting It Wrong as China Jolts Markets
Bloomberg News
Analysts revise predictions after currency's sudden surge; Lack of clarity makes policy hard to understand: strategist
China's yuan policy has blindsided forecasters once again. The sudden surge in the last four days -- for the onshore exchange rate, it's been the steepest gain in more than four months -- pushed the currency beyond levels predicted by even the most optimistic analysts. Market watchers were caught off guard earlier in the year as well, when the yuan confounded expectations by strengthening in the first quarter.
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Russia Can 'Live Forever' With $40 Oil in Warning to Hedge Funds
Olga Tanas - Bloomberg
A race to the bottom in oil prices may not have many winners, but Russia is certain it can survive. It's less sure about hedge funds.
/goo.gl/5gb9Vo
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | OCC Cleared Contract Volume Up 19 Percent in May
OCC
OCC, the world's largest equity derivatives clearing organization, announced that cleared contract volume in May reached 380,010,098 contracts, a 19 percent increase from the May 2016 volume of 319,533,636 contracts. OCC's year-to-date average daily cleared contract volume is also up two percent from 2016 with 17,079,885 contracts.
jlne.ws/2rvJdKx
DTCC Appoints Matthew Stauffer to Lead New Institutional Trade Processing Business Line
DTCC
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced the appointment of Matthew Stauffer as Managing Director and head of Institutional Trade Processing, effective June 30, 2017. In this role, Mr. Stauffer will be responsible for integrating DTCC's middle office trade processing solutions, including the Omgeo suite of solutions, Trade Support Services (TSS) and the GMEI Utility, as well as leading new product development. He will report to Timothy Keady, Managing Director and Head of DTCC Solutions.
jlne.ws/2rvxlrV
Listing of Aroundtown Property Holdings plc in the Prime Standard
Deutsche Boerse
Aroundtown Property Holdings plc (ISIN: CY0105562116) has been listed in the Prime Standard at the Frankfurt Stock Exchange since today. To date, the share was tradable on the Quotation Board, and the company has now decided to move the primary listing to Frankfurt. Quirin bank AG carried out the listing. Designated sponsors in Xetra trading are Berenberg, Oddo Seydler and MM Warburg; Tradegate AG is a specialist in the Frankfurt Stock Exchange.
/goo.gl/NzbySI
ICE acquires BAML's fixed income indices platform; Exchanges are looking to expand into more profitable alternative business lines such as the index and market data business.
Joe Parsons - The Trade
Intercontinental Exchange (ICE) has acquired a major fixed income indices platform from Bank of America Merrill Lynch (BAML), the second big deal from an exchange group to expand its index capabilities.
/goo.gl/AGiukq
Eris Exchange: May Newsletter
Eris
/goo.gl/j7xG4m
MGEX Has 3rd-Best May of All-Time
MGEX
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), reports its third-highest volume during the month of May, coming in at 153,578 contracts traded.
jlne.ws/2stk68y
Introducing the CHX Women's Forum  "Chicks of CHX"
Medium
At the beginning of this year, Emily Kasparov, CHX's associate general counsel, participated in the Women's Collective Session at the Security Traders Association of Chicago's annual Mid-Winter Meeting. The panel covered a wide range of topics relating to women in finance, from the general benefits of diversity to advice on how to overcome the "confidence gap" of working in a male-dominated field. (Numbers vary depending on the study, but this BloombergView piece from last year provides a number of stats on the gender imbalance in finance.)
jlne.ws/2ssMasr
Actionable Social Signals
ICE
As you explore new ways to stay ahead of market movements, obtaining differentiated market insight is of increasing importance. The integration of Dataminr alerts into your existing ICE Instant Messaging application provides you timely and actionable news alerts directly within your existing workflow.
/goo.gl/B4edPY
Equity options: Adjustment of Market Maker obligations in GALN due to a corporate action
Eurex
/goo.gl/pPCTrR
June 3rd Connectivity Test Reminder - 2017 Regulation SCI BCP/DR Testing
NYSE
The NYSE Group SCI Entities ("NYSE") will make available the Cermak Disaster Recovery ("DR") environments for connectivity testing on June 3, 2017 and July 8, 2017 in preparation for the 2017 SIFMA coordinated Reg. SCI Disaster Recovery/Business Continuity industry test ("SIFMA Test") scheduled for October 14, 2017.
/goo.gl/4yhc4u
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Quantitative Brokers Names Cirillo Head of Partnership Sales As Algo Demand Grows
FINalternatives
Algorithm and analytics specialist Quantitative Brokers has named former Credit Suisse executive Guy Cirillo as the company's new head of partnership sales amidst substantial growth in demand for the company's algorithmic solutions.
jlne.ws/2suerPr
Colt adds Equiduct to Colt PrizmNet
RealWire
Colt announced today that it now provides connectivity to the pan-European exchange Equiduct through its financial extranet Colt PrizmNet, making it easier for firms to meet their best execution requirements under MiFID II - the Markets in Financial Instruments Directive II. Colt PrizmNet connects to key equity trading venues as well as other asset classes, simplifying access to multiple venues through a single platform and supporting firms to fulfil their regulatory obligations.
jlne.ws/2stVsVs
Fintech should be big in Chicago. Here's why it isn't.
Lynne Marek - Crain's Chicago Business
Chicago has all the building blocks to become a hotbed of financial technology startupsÂso why isn't it happening? The latest sign that this years-long dream may never be realized: a plan to create a hub for fintech entrepreneurs and networking at the Chicago Board of Trade building has fallen apart due to lack of capital.
jlne.ws/2ssXMMl
Why Bitcoin Needs Washington to Go Mainstream
Jerry Brito - Fortune
Digital currencies like Bitcoin are back in the news in a big way. Major influxes of investment, increased usage, and public votes confidence from influential financial industry players seem to be validating a technology once thought to be solely the realm of hobbyists and tinkerers.
/goo.gl/meX7JX
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| Politics | | An overview of politics as it relates to the financial markets | How Trump's Chaotic Presidency Threatens the Economy; Few have adequately priced in the possibility of 5 large, unusual downside risks.
By Jonathan Bernstein - Bloomberg
Sure, you might think: Donald Trump isn't exactly a competent president. But it's a long-standing truism of U.S. politics that, at the end of the day, presidents really don't have immediate and severe effects, for better or worse, on economic performance or jobs. Instead, what really matters are larger-scale forces -- say, the growth or stall of productivity, something that politicians have very little effect on in the short term. We can all play games with economic statistics and where presidencies begin and end, but most of the claims involved are partisan fictions. 1
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Paris or Not, Economics Cutting Carbon From U.S. Power Mix
Mark Chediak - Bloomberg
Even though President Donald Trump is taking the U.S. out of the Paris climate agreement, economics will continue to squeeze carbon out of the country's power mix. Power plants burning cheap natural gas from shale formations are increasingly being favored over those burning coal, saving 0.6 metric tons per megawatt-hour of carbon dioxide, according to a report by William Nelson, an analyst at Bloomberg New Energy Finance. The carbon savings are greater than those achieved by renewables in California, where solar displaces gas, according to Nelson.
jlne.ws/2stUlVB
Tactical trading: Here's what traders will do during the General Election
Helen Cahill - City AM
When Prime Minister Theresa May announced a snap General Election, everyone was pretty sure how things would go.
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Take care that ethical not evil algorithms help win elections; Are politicians and legislators prepared for the escalating digital revolution?
Alexander Stubb - FT
Disclaimer: I just spent 10 days in San Francisco, Silicon Valley and Los Angeles, where I met visionary entrepreneurs and visited Facebook, Google, Apple and Tesla. I am also a wanna-be-tech-savy-middle-aged-man who reads up on this stuff on a regular basis.
/goo.gl/7IbWJn
Why Britain's Election Is All About Brexit; The U.K. election is looking tighter. How the northeast votes will be crucial.
Rodney Jefferson and Thomas Penny - Bloomberg
On a boarded-up window of a dilapidated former pub near the shuttered steelworks is a royal-blue poster with one word: Conservatives.
/goo.gl/EHS8if
Why Paris Matters Less Than It Seems; President Trump's decision to pull out of the Paris climate agreement will have less impact than expected
Spencer Jakab - WSJ
Investors will feel the impact of the U.S.'s pullout from the Paris climate agreement in surprising and, in some cases, counterintuitive ways.
/goo.gl/mfHtsK
Trump Isn't Really Doing So Much on Regulation; The administration is issuing few new rules. But the numbers show no actual rollback.
Cass R Sunstein - Bloomberg
In an early executive order, President Donald Trump told government agencies that if they issue one regulation, they must take two away. Four months later, we are seeing how the "one in, two out" rule will play out in his administration.
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | Nomura Jury to Resolve When Lies on Bonds Cross Fraud Line
Chris Dolmetsch - Bloomberg
Lying to customers may be morally wrong, but when the misrepresentations alter the price that an investor will accept or pay for a bond the behavior crosses the line to become criminal fraud, a U.S. prosecutor said Thursday.
jlne.ws/2suc27n
FINRA Bars Former Morgan Stanley Registered Representative for Using Nominee Accounts to Conceal $190 Million in Venezuelan Bond Trades
FINRA
The Financial Industry Regulatory Authority (FINRA) announced today that it has barred former Morgan Stanley Smith Barney registered representative John Batista Bocchino for concealing approximately $190 million in Venezuelan bond trades from the firm, which had restricted such trading due to the regulatory, anti-money laundering and reputational risks it posed.
/goo.gl/m8EWur
What's New on the SEC Website; June 1, 2017
SEC
/goo.gl/h0yuDn
FINRA suspends ex-Morgan Stanley trader for Venezuelan bond deals
Reuters
The Financial Industry Regulatory Authority (FINRA) said on Thursday it barred John Batista Bocchino, a former Morgan Stanley (MS.N) representative, for concealing around $190 million in Venezuelan bond trades from the firm, which had restricted such trading.
jlne.ws/2su4YHS
Rich people dodge far more tax than previously thought, economists find
Ben Chapman - The Independent
Wealthy people are dodging even more tax than previously thought, according to new research
jlne.ws/2subcrs
ESMA updates its CSDR Q&As
ESMA
The European Securities and Markets Authority (ESMA) has updated today its Q&As on practical questions regarding the implementation of Central Securities Depositories Regulation (CSDR).
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AFME welcomes agreement on STS legislation
AFME
Following the outcome of the securitisation trilogues today, Simon Lewis, Chief Executive at the Association for Financial Markets in Europe (AFME) said:
jlne.ws/2su9ZQY
Dexia official acquitted of alleged swaps fraud in Italy; City of Prato likely to appeal despite perjury claims
Chris Davis - Risk.net
A Dexia salesperson in Italy who was accused of aggravated fraud in relation to swaps struck with the City of Prato has been acquitted by an Italian criminal court, while the judge recommended t
/goo.gl/4xh7zc
Caught in the branches: Japan rebuffs EU ring-fencing plan; Proposed rules for foreign banking group supervision will disrupt business and resolution plans, says JFSA
Catherine Contiguglia - Risk.net
When the European Commission (EC) unveiled its proposal for foreign banks in European Union countries to establish an intermediate parent undertaking (IPU) in November 2016, its denials did litt
/goo.gl/IrVzOw
SEC Wades Into 'Fiduciary Rule' Debate; Agency seeks input on writing own version of Labor Department rule; fiduciary rule's backers worry SEC would water it down
Dave Michaels - WSJ
The Securities and Exchange Commission will consider strengthening rules on how brokers advise retail customers, a step likely to be cheered by businesses that opposed a similar measure passed under the Obama administration that imposed stricter guidelines.
/goo.gl/XElzX0
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Dow Limps Back to Record, This Time Without Goldman or JPMorgan
Oliver Renick - Bloomberg
Carried by industrial, consumer and tech companies, the Dow Jones Industrial Average circled back to record territory. It did it this time without the stocks that fueled the strongest stretches of the Trump trade.
jlne.ws/2stXdSm
A New Eden, Or Fewer Excuses
Tim Edwards - S&P Dow Jones Indices
In our May dispersion dashboard, we note that "If there is ever such thing as a "stock-pickers' market", then the month of May 2017 - at least in some regions - might be the closest approximation we have seen for a decade." The subject of what, exactly a "stock-pickers' market" might look like, and how we would know when we are in one, has been a topic of extensive study and regular commentary. First, we should explain what we mean by a "stock pickers' market".
jlne.ws/2suodkB
Commodity Rebound Evaporates as Slowing Demand Spells More Gluts
Mark Burton - Bloomberg
Longest price slump in more than a year erases optimism of '16; Macquarie see more raw-material weakness ahead as China slows
So much for the commodity recovery.
/goo.gl/MuR4nJ
The Incredible Shrinking Junk-Bond Market
Lisa Abramowicz - Bloomberg
It's hard to get excited by the U.S. junk-bond market. The debt isn't yielding much on a historical basis. The companies that sell it have become less creditworthy, adding debt faster pace than they've increased profits. And the U.S. economy, while relatively healthy, has shown signs of vulnerability.
jlne.ws/2su5Pby
Grantham says higher valuations here to stay
Robin Wigglesworth - Financial Times
The US stock market has entered an era of permanently higher valuations and probably has further room to rise, according to Jeremy Grantham, the founder of asset manager GMO and a known bearish spotter of financial bubbles.
jlne.ws/2stRFak
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Barclays Helped by the Curse of Low Volatility
Lionel Laurent - Bloomberg
Wall Street executives aren't usually a gloomy bunch. Recently, though, they have taken to bemoaning the lack of action on financial markets that's depriving their traders of healthy profits.
jlne.ws/2suh0B3
Pimco: Time for Lower Risk (and Lower Returns); Giant fund has cut overall exposure to credit risk over past year, particularly in Europe
Christopher Whittall - WSJ
Pacific Investment Management Co. has dialed down the risk in its portfolios in recent months as rallying financial markets have reduced returns on assets with a riskier profile, according to a senior investor at the giant fund.
/goo.gl/bEYVI2
Nomura Jury to Resolve When Lies on Bonds Cross Fraud Line
by Chris Dolmetsch - Bloomberg
Traders stand accused of lying to customers to boost profit; Case is part of government crackdown in opaque markets
Lying to customers may be morally wrong, but when the misrepresentations alter the price that an investor will accept or pay for a bond the behavior crosses the line to become criminal fraud, a U.S. prosecutor said Thursday.
/goo.gl/0x8M4E
Morgan Stanley predicts fees for mutual funds, ETFs falling a further 10-15%
Ryan Vlastelica - MarketWatch
The "race to zero" is heating up.
/goo.gl/pnR6QY
GFF Brokers Announces the Acquisition of Global Futures, Launches New Website
PR Web
Global Futures & Forex, Inc. (GFF Brokers), a newly formed registered introducing broker and Member of National Futures Association serving futures and options traders, announced that it has acquired Global Futures (registered as Global Futures Exchange & Trading Co., Inc.), an online independent introducing brokerage firm doing business since 1998.
jlne.ws/2stUE2S
Bailout for Italy's Oldest Bank Tests Too-Big-to-Fail Rules
Jack Ewing, Gaia Pianigiani and Chad Bray - NY Times
Some banks go to the international markets when they need money for a big deal. Monte dei Paschi di Siena, one of Italy's biggest lenders, tapped its own loyal customers.
/goo.gl/UtbT0f
UBS to Temporarily Adjust Broker Pay to Comply With Fiduciary Rule; Bank makes changes to pay for U.S. brokers as new retirement rules take effect next week
Michael Wursthorn - WSJ
UBS Group AG is temporarily revamping how it pays its U.S. brokers to comply with new retirement rules taking effect next week, a stopgap that minimizes the impact on clients as a review of the regulation plays out.
/goo.gl/S25BZy
UBS to change how advisers get paid ahead of fiduciary rule deadline
Elizabeth Dilts - Reuters
UBS Group AG (UBSG.S) is changing the way it pays U.S. financial advisers on retirement accounts before a U.S. Labor Department rule goes into effect next week, and halting the sale of a small number of noncompliant products, a senior UBS wealth executive said in an interview.
jlne.ws/2stJlre
RBC freezes US bank acquisition plans on Trump doubts; Canada bank chief reluctant to make deals given the political climate
Ben McLannahan in Toronto - FT
Canada's second-largest banking group has put a freeze on acquisitions in the US, saying the political climate under Donald Trump is making deals south of the border a "struggle".
/goo.gl/alhuhc
JPMorgan settles conflict of interest case for $35m; Bank allegedly gave compromised advice in sale of Good Technology to BlackBerry
Sujeet Indap in New York - FT
JPMorgan Chase has reached a $35m deal with shareholders of the former software "unicorn" Good Technology, to settle conflict of interest claims over Good's $425m sale to BlackBerry in late 2015.
/goo.gl/aP1I2i
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | After Goldman storm, Venezuela congress blasts Nomura bond buy
Corina Pons and Alexandra Ulmer - Reuters
The head of Venezuela's opposition-led congress on Thursday slammed Japanese investment bank Nomura Securities for buying about $100 million worth of state oil company bonds, accusing it of helping finance President Nicolas Maduro's "dictatorship."
jlne.ws/2stEMgz
U.S. Climate Pivot Puts a Reluctant China in Driver's Seat; Trump's withdrawal from Paris accord gives China a new opening to exert sway on a big global issue
Brian Spegele and Te-Ping Chen - WSJ
The U.S. decision to withdraw from the Paris accord thrusts China into an unfamiliar role as a leader on climate change, boosting its global sway even as it remains wary of new international responsibilities.
/goo.gl/L4ZzMa
China Steps Up Support for Its Currency; Investors say Beijing seeks to build confidence in economy amid concerns about a debt buildup and crackdown on loose lending
Carolyn Cui and Saumya Vaishampayan - WSJ
The decision by the People's Bank of China to sharply increase the value of the yuan against the dollar at its daily fixing Thursday surprised many investors, particularly those in the West who have long valued state-directed currency movements less for their immediate direction than for signs of the underlying policy that the central bank appears to be pursuing.
/goo.gl/BMlUhw
S&P, Moody's Downgrade Illinois to Near Junk, Lowest Ever for a U.S. State
Elizabeth Campbell - Bloomberg
No end to budget impasse sends state to brink of junk rating; State appropriations debt cut to below investment grade
Illinois had its bond rating downgraded to one step above junk by Moody's Investors Service and S&P Global Ratings, the lowest ranking on record for a U.S. state, as the long-running political stalemate over the budget shows no signs of ending.
jlne.ws/2stOuiU
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| Brexit | | Financials stories regarding the decision of the United Kingdom to leave the European Union | Exclusive interview: Theresa May says she'll defend the City as she warns EU that nowhere else can do what it does
Christian May - City AM
Theresa May's brand of conservatism doesn't include a natural affection for global financial institutions. In almost every sense, she's more Maidenhead than Moorgate.
/goo.gl/iKio42
There's only one type of Brexit investors are braced for; Rally in government bonds and a pound that can't break higher underline market fears
Michael Mackenzie - FT
Until this week, markets were not expecting the UK election to offer any twists, let alone a shock redolent of last summer's Brexit vote.
/goo.gl/XGstSh
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| Miscellaneous | | Stories that don't quite fit under the other sections | Larsen C ice shelf: Massive crack grows 11 miles in only 6 days
Doyle Rice - USA Today
A massive crack in an Antarctic ice shelf grew by 11 miles in the past six days as one of the world's biggest icebergs ever is poised to break off. Only eight miles remain until the crack in the Larsen C ice shelf cuts all the way across, producing an iceberg about the size of the state of Delaware
jlne.ws/2stXpky
Taking Action to Protect the Planet
Michael Bloomer
The Environment program brings together a wide range of partners, including mayors, scientists, activists, and business leaders, to address the most serious threats to global sustainability. By fighting to reduce coal pollution, supporting clean energy options, encouraging sustainable fishing practices, and spurring cities to find innovative solutions to fight climate change, Bloomberg Philanthropies is working for a healthier, cleaner, and safer environment. Additionally, Mike Bloomberg serves as the UN Secretary-General's first Special Envoy for Cities and Climate Change, mobilizing mayors in cities around the world to fight against climate change.
/goo.gl/c7RgHy
Statement of Henry M. Paulson, Jr., on U.S. Withdrawal from the Paris Accord
Henry Paulson
I am dismayed and disappointed by the decision for the United States to withdraw from the Paris Agreement on climate change. American leadership was essential in putting this landmark agreement together, and now, by moving ourselves to the sidelines of an evolving global conversation, we have left a void for others to fill.
/goo.gl/aY305f
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