| September 04, 2018 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
JLN Staff
FinTank now has its own YouTube channel and has posted video from their numerous events.~JJL
American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American financial institutions, is looking for interns for the fall, spring and summer. They are looking for motivated undergraduate and graduate students in economics, business, finance and other related fields who wish to spend a semester working in the marketing or research departments of the exchange. The internships are based in Chicago. For further information, please contact Rafael Marques at AFX Internship Program: [email protected].~JJL
Good Morning America Co-Host Lara Spencer married MarketAxess CEO Rick McVey in Val, CO.~JJL
Former Enron executive Jeff Skilling has been released from prison.~JJL
The bad guy in the new Amazon Prime original video series "Jack Ryan," based on the Tom Clancy novel, is a Lebanese orphan who graduated from college in France wanted to get a job in banking and wrote a white paper at university on digital banking. The villain was promoting digital banking to a French bank in 2001. It is a small part of the plot, but an interesting one.~JJL
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The Spread - This Is How We Do It - 8/24
JohnLothianNews.com
It's not often that "The Spread" highlights music in the industry (the exception being the DJ activities of Goldman Sachs' incoming CEO), so today is a treat. Apparently some BNP traders responsible for trying to rig ISDAfix to benefit derivatives positions like to make song references in their messaging.
Watch the video and see the stories referenced here »
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Cinnober strengthens management team with three senior appointments
Cinnober
Cinnober Financial Technology, a global independent provider of technology solutions for the finance industry, announces the appointments of Fredrik Nihlén as Cinnober Group CFO, John Yonker as Simplitium CEO and Patrick Tessier as Minium CEO. Simplitium and Minium are wholly-owned subsidiaries of Cinnober. These appointments strengthen the Group's management team and reaffirms Cinnober's focus on organic growth, building on its proven solutions.
/jlne.ws/2Nfac8l
**** More news from Cinnober.~JJL
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CCOs; Annual Compliance Report; Bitcoin Futures ETPs; Reg SHO: Virtual Currency
Gary DeWaal - Bridging the Week
The Commodity Futures Trading Commission revised its rule related to the responsibilities of chief compliance officers of futures commission merchants, swap dealers and major swap participants, as well as the obligations of such registrants for the annual compliance reports they are mandated to prepare and file with the CFTC. The goal is to make the rule simpler and clearer. Separately, on August 22, the Securities and Exchange Commission through its staff declined to approve two exchanges' proposed rule changes to authorize the listing and trading of nine exchange-traded products based on CFTC-sanctioned bitcoin futures contracts. However, the following day, the SEC suspended its disapproval pending the full Commission's review.
/jlne.ws/2Nh2cE6
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Wild London - Wildlings Event Series: Part 2 - Overcoming Challenges In The Workplace
WILD
September 17, 2018, 06:00 PM - 08:30 PM, CME Group, 4th Floor, One New Change, London EC4M 9AF
Join us for Part 2 of the WILDlings Event Series, as we talk about overcoming challenges in the workplace, from two very different perspectives!
/jlne.ws/2Nc5wQQ
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Friday's Top Three
Friday's top read stories were led by Crain's Chicago Business's The most powerful women in Chicago Business. Second went to the Chicago Tribune's piece on Mike Welsh, In Glenview, Macushla Brewing carries on despite a broken heart. Third was a blog post from SFOX on Why Bitcoin Arbitrage Happens, and Where You Can Find It
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MarketsWiki Stats
132,014,018 pages viewed; 23,265 pages; 214,792 edits
MarketsWiki Statistics
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| Lead Stories | The Trader Who Shattered UBS Now Faces His Own Reckoning; Kweku Adoboli cost the bank $2 billion and went to jail. Deportation looms next.
Kaye Wiggins, Donal Griffin, and Suzi Ring - Bloomberg
Seven years ago this week, a cryptic post appeared on UBS Group AG trader Kweku Adoboli's Facebook page: "Need a miracle." He was on his way to racking up a $2 billion shortfall that would become the biggest unauthorized trading loss in British history.
/jlne.ws/2Nh9pDS
Businesses Shuttered as Historic Typhoon Jebi Lands in Japan
Sophie Jackman and Gearoid Reidy - Bloomberg
Close to 1 million homes without power after Typhoon Jebi hits; Kansai airport shut down, connecting bridge struck by tanker. Typhoon Jebi swept through western Japan on Tuesday as the strongest tropical cyclone to come ashore in 25 years, causing widespread power outages and flooding the region's main airport. One person was reported killed.
/jlne.ws/2NeGCjC
When Machines (and Humans) Decide to Sell at Once; As algorithmic traders grow in influence, automatic sell orders may be behind some dramatic market swings
Stephanie Yang - WSJ
On Feb. 5, the Dow Jones Industrial Average suffered its worst one-day point-decline in history amid a tumultuous week for global markets. Although the blue-chip index has since erased that loss, some investors are still trying to puzzle out what caused such a drop.
/jlne.ws/2Nhlh8Y
Tougher rule book improves currency market behaviour; Systems make it easier for clients to spot which banks impose delays on trades
Katie Martin - FT
Nine months after the currency-trading industry signed up to a beefed-up rule book by the Bank for International Settlements, data from the core of the $5tn-a-day market suggest that behaviour has improved.
/jlne.ws/2N8NU8z
The ticking time bomb that could blow up into a financial crisis
Tom Rees - Telegraph
When hedge fund managers from FrontPoint Partners drove through a Florida suburb in the run-up to the financial crisis, they quickly realised the US housing market was built on sand. Anyone could grab a 2,000 sq ft slice of the American dream in the Sunshine State.
/jlne.ws/2NgEVlF
The Next Financial Crisis Lurks Underground; Fueled by debt and years of easy credit, America's energy boom is on shaky footing.
Bethany McLean - NY Times
About 20 years ago, an entrepreneur named George Mitchell proved that it was possible to get lots of oil and gas out of parts of the earth long thought to be sucked dry, by injecting liquid at high pressure into a horizontal well below the surface. About 10 years ago, fracking  the common term for this process  began in earnest.
/jlne.ws/2Nh0J0y
These Fake Islands Could Spell Real Economic Trouble; Glitzy property projects and financial crises tend to go hand-in-hand.
David Fickling - Bloomberg
Where is it that we've seen glittering archipelagos like Malaysia's Forest City and Melaka Gateway developments before? Those stretches of newly packed white sand, dotted with palm trees, villas, marinas, high-end retail malls and office towers?
/jlne.ws/2NhiZqk
Have we learnt the lessons of the financial crisis?; Gillian Tett looks at why the warning signs were missed and where the next crash may strike
Gillian Tett - FT
One day in the early summer of 2007, I received an email out of the blue from an erudite Japanese central banker called Hiroshi Nakaso. "I am somewhat concerned," he began in typically understated manner, before warning that a financial crisis was about to explode because of problems in the American mortgage and credit market.
/jlne.ws/2NgdDM9
Wall Street's 30 Days of Hell: No Sleep, No Meals, No Family
Annie Massa and Ivan Levingston - Bloomberg
The mad rush of earnings season kicks in four times a year; Now the system is being re-examined after surprise Trump tweet
For more than a quarter century, Wall Street analyst Mike Mayo has danced to the steady beat of corporate America.
/jlne.ws/2NeQE4g
New 'Speed Bump' Planned for U.S. Stock Market
Alexander Osipovich - WSJ
Cboe Global Markets Inc. is seeking to introduce a brief delay on one of its markets, becoming the latest U.S. stock-exchange group to attempt to hit the brakes on high-frequency traders, people familiar with the situation said.
/on.wsj.com/2LFT72M
Shanghai crude futures eat into Western benchmarks as China pushes yuan
Henning Gloystein - Reuters
The launch of China's first crude futures contract in Shanghai has added a long-awaited Asian benchmark to the global oil sector, challenging the dominance of Western price-markers and threatening ramifications far beyond the energy industry.
/reut.rs/2LFZPWw
DWS chief says quarterly reporting has a decisive role in investing; Nicolas Moreau speaks out to defend system that helps value and track businesses
Attracta Mooney - FT
The chief executive of DWS, one of Europe's biggest asset managers, has launched a staunch defence of quarterly reporting, just weeks after US president Donald Trump proposed scrapping the requirement for US companies to file their earnings every three months.
/jlne.ws/2MLvStt
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Deutsche Börse establishes dedicated crypto and blockchain team; The 'DLT, Crypto Assets and New Market Structures' team will look to develop Deutsche Börse's group-wide response to blockchain and crypto assets.
Hayley McDowell - The Trade
Deutsche Börse Group has announced plans to establish an initiative fully dedicated to exploring blockchain technology and cryptocurrencies.
/jlne.ws/2NbqaAF
Aquis Exchange wins record market share; Aquis Exchange saw its market share surge to 3.17% in August following its initial public offering in June.
Hayley McDowell - The Trade
Aquis Exchange has achieved a record 3.17% market share in continuous trading in August, just months after its initial public offering (IPO).
/jlne.ws/2NcBU5P
ASX forced to delay implementation of blockchain settlement system; ASX is now looking to launch its new post-trade blockchain system in March or April 2021, rather than the end of 2020 as initially planned.
Hayley McDowell - The Trade
The Australian Securities Exchange (ASX) is to delay the expected go-live date for its blockchain-based post-trade equities platform.
/jlne.ws/2NkAjes
Global FX Code making an impact as 'last look' executions diminish; New study from NEX Markets finds a reduction in hold times, reject rates and a tightening of spreads on its EBS Direct trading platform.
Hayley McDowell - The Trade
The level of foreign exchange (FX) counterparties using the widely controversial 'last look' method of execution has fallen since the introduction of the Global FX Code of Coduct, new research suggests.
/jlne.ws/2NaBrRJ
Our ear to the ground: Eurex sales staff in interview; Part II: Client satisfaction - Eurex products and services most in demand
Eurex
The best product development in the world is of little use if customers do not get to hear about new products and services. Clients need a contact at Eurex who listens to them and takes their interests to heart. We speak to two Eurex Sales colleagues, Simona Simon and Andreas Stadelmaier, who are both in constant touch with their clients. Simona is Senior Vice-President in Global Equity & Index Sales and Andreas Senior Vice-President in our Fixed Income EU Sales unit. In the second part of this series, we focus on which Eurex products and services clients are most interested in. The first part of the series looked at client's needs.
/jlne.ws/2NgRWLZ
Strong month for European equity derivatives; 56% increase year-on-year with 21.9 million traded contracts in August
Eurex
In August, Eurex, Europe's largest derivatives exchange and part of Deutsche Börse Group, has seen strong demand for its products. Traded European interest rate contracts increased by 27 percent to 46.6 million, from 36.7 million in August 2017. Demand was particularly high for European equity derivatives (+56 percent) with 21.9 million traded contracts (14 million in August 2017).
/jlne.ws/2Nhn0Lq
The transformational potential of the blockchain technology; A conversation with Jens Hachmeister, Head of DLT, Crypto Assets and New Market Structures at Deutsche Börse
Eurex
Blockchain and the distributed ledger technology (DLT) are certainly among the most innovative transformational technologies for financial markets. Deutsche Börse Group has already invested in various Blockchain initiatives and is tapping into the potentials of this new technology. The newly established area "DLT, Crypto Assets and New Market Structures" will focus on the further development of a Group-wide approach. We spoke with Jens Hachmeister, who is heading the initiative, about the importance of blockchain, his new team and his own motivation to drive this growth area to the next level for the Group.
/jlne.ws/2NeTq9G
Cash markets convert 130 billion euros in August; Trading volume 11.8 percent higher than in the previous year
Deutsche Börse
Deutsche Börse's cash markets generated sales of 130 billion euros in August (previous year: 116.2 billion euros). Compared to the previous year, this corresponds to an increase of 11.8 percent.
/jlne.ws/2NgNiO7
Trading Overview in August 2018; Japan Exchange Group released Trading Overview in August 2018.
JPX
Cash Equity Market - In August 2018, the daily average trading value for the TSE 1st Section (domestic common stocks) was JPY 2.5560 trillion.
Derivatives Market - In August 2018, total derivatives trading volume was 27,114,479 contracts.
/jlne.ws/2NdeQDT
Caitong Securities goes live with Horizon platform for Options trading on Shanghai Stock Exchange
Horizon Software
Horizon Software (Horizon), the leading global technology provider for electronic trading and investment management, announced today that the China-based securities firm Caitong Securities has gone live with its Options Trading platform to trade SSE 50 ETF options on the Shanghai Stock Exchange.
/jlne.ws/2NaHUMv
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors |
NEX hires London executive to chase hedge fund business
Rosalie Stafford-Langan - Financial News
Michael Spencer's NEX Group has made a key hire in its post-trade division as it seeks to win more business from hedge fund clients.
bit.ly/2LLnwN7
Kotak Institutional Equities strengthens relationship with Itiviti; Firm extends the use of Itiviti's execution technology to support growth in India.
Itiviti
Itiviti, the leading global provider of multi-asset trading technology and financial infrastructure, today announced that Kotak Institutional Equities (KIE), one of India's leading brokerages, has extended the use of Itiviti's connectivity platform and deployed Enhanced Direct Market Access (EDMA) to support the firm's growing equities and derivatives trading business, and to enhance services to its global clients.
/jlne.ws/2Nhz27C
Facebook Launches International Video Product to Rival Google
Sarah Frier and Lucas Shaw - Bloomberg
Company says video makers can get cut of advertising revenue; Facebook says tools will protect ads from controversial video
Facebook Inc. is launching Watch, its video rival to YouTube, internationally and expanding the financial incentives that encourage people to share their content there.
/jlne.ws/2NcYSd4
The Risk of a Vicious Funding Circle in Fintech; High hopes and valuations have a habit of bumping into reality.
Lionel Laurent - Bloomberg
There are fintechs, and then there are fintechs. Cheerleaders point to payments startups like Jack Dorsey's Square Inc., whose stock has soared 242 percent in a year, as evidence of a Silicon-Valley-style revolution in the making. But there are sob stories, too: loan platforms LendingClub Corp. and On Deck Capital Inc. are still trading well below their IPO prices. Promises of break-neck expansion often crash into the reality of regulated finance.
/jlne.ws/2NeIDMI
Quantum computing: the power to think outside the box; With potential uses in healthcare and finance, the technology promises to revolutionise computing
Richard Waters in San Francisco and John Thornhill in London - FT
As a keen player of the board game Go, Mark Griswold was enthralled by the 2016 contest between the world's top player and a computer  a milestone in the history of artificial intelligence. He still recalls move 102 in the opening game with awe. The computer, developed by the Alphabet subsidiary DeepMind, placed a white piece in a position that surprised even the experts.
/jlne.ws/2Nksh5i
Buy-side AI FinTech raises $14 million in funding; Pagaya, which uses artificial intelligence technology to manage institutional money, has raised $14 million in a series B funding round.
Hayley McDowell - The Trade
A machine learning, big data analytics and artificial intelligence (AI) technology specialist FinTech for managing institutional money has raised $14 million in a series B funding round.
/jlne.ws/2NktqK8
Thomson Reuters provides MiFID II SI reporting with analytics platform; The RTS 27 Now tool for MiFID II will help banks considered to be SIs meet the December reporting deadline.
Hayley McDowell - The Trade
Thomson Reuters has launched a reporting service for banks that have registered as systematic internalisers (SI) under MiFID II, based on technology used for its analytics platform.
/jlne.ws/2NjJVWu
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| Cryptocurrencies | | Top stories for cryptocurrencies | The Bitcoin Boom Reaches a Canadian Ghost Town; With fewer than 100 residents, Ocean Falls is looking for a revival after almost four decades of industrial false starts.
Joshua Brustein - Bloomberg
In 1971, an 11th grader named Greg Strebel wrote the introduction to a book about Ocean Falls, the tiny town in the British Columbian hinterlands where he lived. Strebel mentioned the odd fact that many of the town's roads were made of wood, said the weather wasn't as bad as some people made it out to be and noted that it had just gotten a new school building. But the one thing that mattered above all, according to Strebel, was the paper mill. "To most, 'the mill' imparts a sense of security by its presence," he wrote. "A low throb of power is audible throughout most of the town as long as the mill runs, accompanied by voluminous exhalations of steam."
/jlne.ws/2Nc2GLG
CryptoKitties, CryptoPunks and the birth of a cottage industry; Blockchain technology hosts virtual art collections that cannot be replicated
Chloe Cornish - FT
Seth Spalding, a portfolio manager at investment firm Passport Capital and a former vice-president of investment bank Goldman Sachs, is amassing an art collection. But you will not find paintings at his home in San Francisco, or sculptures in storage. The art Mr Spalding owns does not exist anywhere, as such. His carefully curated collection is digital  works that exist on the cryptographically secured technology known as blockchain.
/jlne.ws/2NcYzyU
The baroness, the ICO fiasco, and enter Steve Wozniak
Jemima Kelly - FT
Earlier this year, we brought you news that Scottish lingerie entrepreneur-turned Conservative peer Michelle Mone and her businessman boyfriend Doug Barrowman were launching an initial coin offering (ICO). The plan was to raise money for a token-based crowdfunding venture, EQUI Capital.
/jlne.ws/2NdhwSe
World Bank Bond Blockchain Offers Key Insights
Michael J Casey - Coindesk
Cryptocurrency purists often dismiss private blockchains as overly expensive undertakings for projects that are better served with a traditional database.
/jlne.ws/2NkwA0s
Japanese messaging app operator Line to launch cryptocurrency
Reuters
Japan's Line Corp said on Friday it will launch a cryptocurrency in September, as the company tries to build up a wide range of businesses using its popular messaging app as a platform.
/jlne.ws/2Nf1vuJ
'I Fought The Law' & Blockchain Won: Smart Contracts For Businesses Handling Legal Have Conviction
Roger Aitken - Forbes
The digital revolution might be changing just about every aspect of society. But for some aspects, the changes can come slowly. Take for instance the legal and justice systems. Most of the work done in legal departments, law offices and courts still relies on paper-based processes, which can prove hugely costly.
/jlne.ws/2Nf2IlL
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| Politics | | An overview of politics as it relates to the financial markets | Twitter chief heads into free speech storm; Jack Dorsey has been less willing to ban users than other social media platforms
Hannah Kuchler in San Francisco - FT
When Jack Dorsey, Twitter's chief executive, is quizzed by Congress this week, he will have to wrestle with variations on an impossible question: did the founding fathers want online platforms to pursue free speech no matter what?
/jlne.ws/2NksF3K
Capitol Hill tech hearings must focus on algorithms; US senators should probe on how the platforms manipulate users
The editorial board - FT
The role of the world's largest technology platforms in the spread of political propaganda, extremism and disinformation is extremely complex. That fact will be on display once again on Wednesday, as executives from Facebook, Twitter and possibly Google undergo another grilling by the US Senate intelligence committee over Russian meddling in the 2016 presidential election.
/jlne.ws/2NkzN00
Bombshell leak to Toronto Star upends NAFTA talks: In secret 'so insulting' remarks, Trump says he isn't compromising at all with Canada
The Star
High-stakes trade negotiations between Canada and the U.S. were dramatically upended on Friday morning by inflammatory secret remarks from President Donald Trump, after the remarks were obtained by the Toronto Star.
/goo.gl/MGzUfj
****Reuters - Trump confirms off-record comments on U.S.-Canada trade talks
Republicans Consider Dropping Second Phase of Tax Cuts After SALT Backlash
Laura Davison and Kaustuv Basu - Bloomberg
House GOP members in high-tax states could face tough vote; GOP leaders planned on legislation serving as political tool
House Republicans had planned to use a second phase of tax cuts to force Democrats into a difficult vote ahead of mid-term elections. Now, party leaders may drop the effort, fearing it could backfire by antagonizing voters in some hotly-contested Congressional districts.
/jlne.ws/2Nd6goF
Bitcoin Suspect Could Shed Light on Russians Targeted by U.S.
Eleni Chrepa, Olga Kharif, and Kartikay Mehrotra - Bloomberg
Greek Supreme Court to rule on extradition for Russia's Vinnik; U.S., France and Russia vie for BTC-e supervisor's extradition
A cryptocurrency expert languishing in a Greek jail may have a vantage point on a tantalizing issue -- how Russians in U.S. Special Counsel Robert Mueller's crosshairs used Bitcoin to obscure their money trail.
/jlne.ws/2NboRlf
Companies Say Trump Is Hurting Business by Limiting Legal Immigration
Nelson D. Schwartz and Steve Lohr - NY Times
The Trump administration is using the country's vast and nearly opaque immigration bureaucracy to constrict the flow of foreign workers into the United States by throwing up new roadblocks to limit legal arrivals.
/jlne.ws/2NeZOxn
Why Milk Matters in U.S.-Canada Trade Feud; On both sides of the border, government involvement in the industry has been long entrenched
Heather Haddon and Paul Vieira - WSJ
Sometimes it's hard to say what is fair in trade and war. Few spats demonstrate that more amply than U.S. disagreements with Canada over the international dairy market.
/jlne.ws/2NjQiJo
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | Top Banker at U.K. Unit of Foreign Bank Arrested, But Who?
Franz Wild - Bloomberg
NCA official comments on arrest in U.K. bribery probe Monday; Around 200 foreign banks have offices for operations in London
A top official from a U.K. crime agency dropped a potential bombshell during a speech Monday, telling a crowd of lawyers that the head of the London unit of a foreign bank had been arrested on suspicion of bribery.
/jlne.ws/2NgNcWH
SEC Shouldn't Open Up Unicorn Hunting to Mom and Pop; The private market's ability to limit hype and investment is a feature, not a bug.
Stephen Gandel - Bloomberg
Securities and Exchange Commission Chairman Jay Clayton says he's looking at ways to open up the private market to mom-and-pop investors, allowing them the chance to get in on fast-growing companies like Uber Technologies Inc. and Airbnb Inc. Instead, he should be looking for a quicker way for companies to move from private to public markets, and back.
/jlne.ws/2NlPRP7
ASIC updates guidance for trustees of wholesale equity schemes
ASIC
ASIC has released Regulatory Guide 192 Licensing: Wholesale equity schemes (RG 192) following public consultation.
/jlne.ws/2N8Q87V
Immediate Effectiveness of a Proposed Rule Change to Amend Rule 2360 (Options) to Increase Position Limits on Options on Certain Exchange-Traded Funds
FINRA
Financial Industry Regulatory Authority, Inc. ("FINRA") is filing with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to amend FINRA Rule 2360 (Options) to increase the position limit for conventional options on the following exchange-traded funds ("ETF"): Standard and Poor's Depositary Receipts Trust ("SPY"), iShares Russell 2000 ETF ("IWM"), PowerShares QQQ Trust ("QQQ"), iShares MSCI Emerging Markets ETF ("EEM"), iShares China Large-Cap ETF ("FXI"), iShares MSCI EAFE ETF ("EFA"), iShares MSCI Brazil Capped ETF ("EWZ"), iShares 20+ Year Treasury Bond Fund ETF ("TLT"), and iShares MSCI Japan ETF ("EWJ").
/jlne.ws/2NdqnmH
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Attractive US leveraged loans to hold investors' attention this fall
Jonathan Schwarzberg, Yun Li - Reuters
The US leveraged loan market is expected to take the lion's share of the jumbo debt financings that are lining up for a post Labor Day launch, as investors continue to favor higher-yielding loans over junk bonds.
/reut.rs/2N43cey
Robert Reich: We Might Be Heading For A Crash As Bad As 1929 | Opinion
Newsweek
September 15 will mark the tenth anniversary of the collapse of Lehman Brothers and near meltdown of Wall Street, followed by the Great Recession.
/jlne.ws/2Nd6Um5
If You Love Capitalism, Worry About Small Business; Giant companies are killing entrepreneurialism, souring the young on free markets.
Noah Smith - Bloomberg
Capitalism has lost some of its luster in the U.S. The percent of Americans aged 18 to 29 who say they support capitalism checks in at only 39 percent:
/jlne.ws/2NdhyJB
After $40 Billion Exit, Morgan Stanley Says Give Europe a Chance
Ksenia Galouchko - Bloomberg
'Unloved' European stocks looking 'increasingly attractive'; Underperformance, undervaluation of banks becoming 'extreme'
No other region has suffered Europe's massive outflows this year, and that's exactly why Morgan Stanley says it's time for investors to take a fresh look at these stocks.
/jlne.ws/2NdhmKC
Busting the myths of investment; Adding small-caps to a global equity portfolio adds value without heightening the risk
Terry Smith - FT
If you are an investor you may have encountered these two adages. First, that in order to earn a higher return you must take greater risk. Second, that asset allocation is the most important contributor to performance
/jlne.ws/2Ng3GhF
Flood of Sand Points to Shakeout for Shale Suppliers; Investors rushed to provide Permian producers with sand for fracking, but some fear not all the startups can survive
Christopher M. Matthews - WSJ
Two years ago, many investors had the same idea: tapping the dunes of the West Texas desert to supply shale drillers with the sand they use in fracking.
/jlne.ws/2NddDwl
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Deutsche Bank to exit Eurostoxx 50 in blow to lender: documents
Reuters
Deutsche Bank (DBKGn.DE) will be booted from the Eurostoxx 50 index of leading European stocks, documents seen by Reuters on Tuesday showed, the latest blow to Germany's largest lender.
/jlne.ws/2Ng6YS9
Wealth Managers Are Getting 30% Pay Hikes to Defect in Asia
Chanyaporn Chanjaroen and Alfred Liu - Bloomberg
Typical increases of 30% or more as banks battle for talent; Employees bringing in China clients are driving up rates
With great wealth comes great remuneration. Competition to manage the money of Asia's burgeoning army of millionaires has pushed pay hikes for wealth managers to the highest in more than a decade. Those willing to jump to a rival are getting increases of 30 percent or more in Hong Kong and Singapore, according to private bankers and recruiters.
/jlne.ws/2Nbm0Zz
SocGen Edges Closer to Settling U.S. Sanctions Investigation
Fabio Benedetti-Valentini and Geoffrey Smith -Bloomberg
Societe Generale SA said that it expects to settle U.S. investigations into alleged sanctions violations "within the coming weeks," and that the final penalty will probably be broadly in line with its estimates.
/jlne.ws/2N8FCxt
SocGen expects around $1.27 billion in U.S. sanctions penalties
Inti Landauro - Reuters
France's Societe Generale (SOGN.PA) expects penalties relating to its dispute with U.S. authorities over international sanctions violations to be close to 1.1 billion euros ($1.27 billion) which would almost entirely be covered by provisions.
/jlne.ws/2NgYOsS
I'm a female banker. My male colleagues are making me infertile
Laura McDonald - eFinancialCareers.com
I'm a woman in banking. I'm a vice president and am nearly a decade into my career in the investment banking division (IBD) of a European bank in London. I am at an age when you might expect to have a child. - I would certainly like to have a child, but I believe that my banking career is making it difficult for me to conceive.
/jlne.ws/2NkuUnG
Berlin falls in love with big banks; Merkel government's froideur towards global lenders warms up
Olaf Storbeck in Frankfurt - FT
A subtle yet substantial shift in political priorities is taking place in Berlin: Angela Merkel's government is starting to love banks.
/jlne.ws/2Nc8lkU
Taking the helm: why asset management bosses are getting the top jobs; Ideal qualities mean leaders leap from investment divisions to running the entire company
Owen Walker - FT
The journey to the top of a global finance company is straightforward if recent hires are anything to go by: simply take over the asset management division, launch profitable products, open up new markets and wait for the chief executive role to become available.
/jlne.ws/2N8LR4n
Credit Suisse sackings offer hopeful example on sexual misconduct; Financial services groups need to change their approach to dealing with complaints
Patrick Jenkins - FT
Back in the spring, Credit Suisse boss Tidjane Thiam wrote an emollient letter to a former employee who had complained of a sexual assault by a manager. He pledged to investigate CS's handling of the 2010 incident, and put the bank's most senior woman in charge of the probe.
/jlne.ws/2NdoTJ9
Big-name investors experiment with marijuana stocks
Carleton English - NY Post
Leon Cooperman Reuters
Pot stocks aren't just for suckers anymore. Five years ago, when California and a few other US states started legalizing marijuana, the internet lit up with weed-driven penny-stock scams. Now, shares of marijuana companies are beginning to attract a few big-name investors.
/jlne.ws/2NbxYCt
BTIG promotes former Goldman Sachs veteran to CEO in London; Christopher Rollins joined BTIG last year but previously spent more than 15 years with Goldman Sachs.
Hayley McDowell - The Trade
Broker-dealer BITG has promoted its head of US execution services and former Goldman Sachs veteran to chief executive of its European business.
/jlne.ws/2NjORdY
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Japan Tells More Than a Million to Evacuate as the Strongest Typhoon in 25 Years Makes Landfall
Eli Meixler - Time
Japan announced evacuation warnings affecting more than 1 million people and canceled hundreds of flights Tuesday as Typhoon Jebi, the strongest storm to hit the nation in 25 years, battered the country's west coast.
/jlne.ws/2NcUSJA
Argentina turmoil batters big names in bond market; Franklin Templeton funds have lost $1.2bn on biggest Argentine positions
Robin Wigglesworth and Colby Smith in New York - FT
One of the bond market's biggest investors has seen its flagship funds battered by the turmoil in emerging markets unleashed by Argentina's spiralling financial crisis.
/jlne.ws/2NbtCeB
Scandal-hit Danske branch handled $30bn of Russian money; Amounts flowing through Estonia each year raise questions for bank's executives
Caroline Binham in London and Richard Milne in Copenhagen - FT
An independent investigation into the money-laundering scandal at Danske Bank found that as much as $30bn of Russian and ex-Soviet money flowed through its Estonian branch in a single year.
/jlne.ws/2NcXSWk
Argentina unveils austerity programme to stem crisis; Macri admits 'emergency' after collapse of investor confidence following IMF plea
Benedict Mander in Buenos Aires and Robin Wigglesworth in New York - FT
Argentina's president unveiled a sweeping new austerity programme to win over international investors and bailout lenders, admitting the country faced an "emergency" in the wake of market panic after the peso's collapse.
/jlne.ws/2N8Jizh
Australia House Prices Fall for 11th Month as Downturn Deepens
Hans Lee - Bloomberg
National dwelling values drop 0.3%, led by Sydney, Melbourne; Westpac rate rise, household debt set challenges for spring
Australian housing prices fell for an 11th straight month in August, and further declines are likely as the peak selling season starts.
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| Brexit | | Financials stories regarding the decision of the United Kingdom to leave the European Union | How a $1.4 Million Contract Loss Shows No-Deal Brexit Cost
Dara Doyle - Bloomberg
Forklift maker switched seat contract from U.K. to Germany; Lack of clarity is affecting investment, growth in economy
Want to know how no-deal Brexit fears are already hurting the U.K.? Just ask Martin McVicar, who runs Combilift, which produces about 6,000 forklift trucks annually in Ireland for export. Up until this year, he imported seats costing about 200 euros ($232) apiece from a Welsh factory. Now, he's switched the 1.2 million-euro contract to a German manufacturer, fearing a hard Brexit will hit his existing supply chain.
/jlne.ws/2NgU2vs
No-deal Brexit odds hold at one in four, economists say - Reuters poll
Jonathan Cable - Reuters
The chances Britain will leave the European Union in March without a deal are one in four, a Reuters poll found, and the Bank of England is likely to wait until after Brexit before raising borrowing costs again.
/jlne.ws/2NcEd8W
Brexit could sway Scottish voters toward independence from UK: poll
Reuters
Britain's exit from the European Union could tip public opinion in Scotland in favor of seeking independence, an opinion poll showed on Sund
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| Miscellaneous | | Stories that don't quite fit under the other sections | Special Report: How Myanmar punished two reporters for uncovering an atrocity
John Chalmers - Reuters
Time and again, Myanmar's government appeared at risk of blowing its prosecution of two young journalists who had exposed a massacre of 10 Muslim men and implicated security forces in the killings.
/jlne.ws/2wFaDzl
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