First Read

Getting Animated About Trading Chicago
JLN

If you haven’t signed up for the FOW-JLN conference Trading Chicago on June 28th, it is a solid program worth checking out. Speakers this year include the Streetwise Professor Craig Pirrong, Leslie Sutphen and Gary DeWaal debating Dodd-Frank, Fidessa’s Steve Grob, Chris Hehmeyer and Joshua Yang talking about our markets in an age of populism with Carl Gilmore. Other notables include Jay Feuerstein of Budo Group, Richard Mackey of Rosenthal Global Securities and Tim Gits of Eurex and Chris Anderson of Itiviti talking about opportunities in the red hot interest rate markets. There are more speakers to check out on the Agenda page

Tickets for CTAs, hedge funds, proprietary traders and asset managers are FREE. For a quick snapshot of the event, see our cool animation of Trading Chicago below. You can register directly HERE
But wait, there’s more.

We will open up registration today for the Marketswiki Education events in New York on July 11 and 12, and our events in Chicago on July 17, 19 and 21. Every year it gets bigger. Every year we have great speakers who tell interns and young professionals about careers, trends and opportunities in the financial marketplace. See the link lower in the box to sign up.

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You’re Invited to FOW-John Lothian News Trading Chicago on June 28th!
Register here

This one-day event at the Swissotel on June 28th is aimed largely at the end-users of the markets: commodity trading advisors, asset managers, hedge funds and proprietary traders.

The conference will cover the issues that impact those firms directly – regulation, technology and market structure, with an underlying thread of trading in an age of uncertainty. All of this will be delivered in a variety of formats, from an Oxford-style debate on the Dodd-Frank Act’s repeal to TED-style talks to panel discussions.

The event is free to attend for CTAs, asset managers, props and hedge funds. For full conference information, click HERE.

Watch the preview »

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Fighting for Futures
THANK YOU! We raised over $5,000 in support of the Pediatric Brain Tumor Foundation during Brain Tumor Awareness Month. You can still donate today here or join us tonight for a huge final push on our efforts with an industry wide gathering! Learn more about Beckett’s Battle.
Fighting for Futures Fundraising Happy Hour – This Thursday, June 1 – 4:00 – 8:00 at Poag Mahone’s – 333 S. Wells St. Chicago, IL – Please join us as we close Brain Tumor Awareness Month with an industry wide gathering.

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MarketsWiki Education World of Opportunity New York and Chicago Registration Open
Registration for this summer’s New York and Chicago sessions of MarketsWiki Education’s World of Opportunity is now open. See the link below to purchase tickets to any of the events or the whole series.

Details on the speakers are available on the www.marketswikieducation.com website.

If you have any questions, please contact us at events@johnlothian.com
Chicago MWE Sign Up

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Sponsored Content
Insight into the Bats Integration from CBOE’s Lowenthal

Kevin Kennedy
Click here to watch

CBOE is in the middle of opening a new chapter in its 40-plus year history. In this video from the Options Industry Conference in Scottsdale, Ariz., Andy Lowenthal, senior vice president, head of global derivatives with CBOE, talks about the ongoing integration of Bats technology and what the tie-up means for the exchange.

Sponsored
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https://www.optionseducation.org/en.html

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Don’t Expose Yourself: A Guide to Online Privacy; Here’s how even non-techie people can start fighting back against Facebook, Google and other internet snoops
Geoffrey A. Fowler – WSJ
You wouldn’t walk naked through Times Square. Stop being naked online.
/goo.gl/mk4nsG

***** I am very exposed.

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Small Steps Can Save Millions of Lives; More people now die from noncommunicable diseases than from causes like malaria and polio. Policy makers need to catch up.
By Michael R. Bloomberg – Bloomberg
For the first time in human history, more people around the world are dying from noncommunicable diseases, such as heart disease and cancer, than communicable ones, such as malaria and polio. This change occurred in higher-income countries at some point in the middle of the last century. In lower-income countries, the shift is just a few years old.
/goo.gl/uJlJ2N

****** Michael Bloomberg shows great leadership as a journalist.

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Inside Take on Bats’ Technology at CBOE
JohnLothianNews.com

For the past three months, Kapil Rathi, senior vice president, options business development with CBOE, has had a firsthand look at the process of integrating Bats’ technology with CBOE’s. In this video filmed at the Options Industry Conference in Scottsdale, Ariz., Rathi discusses the potential of this new combined platform moving forward.

Read the rest and watch the video »

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10 Things Successful People Never Do
James Altucher
I have done all of these ten things and seen the results. I was very unhappy. Before I can give you the rules I must establish my credentials.
/goo.gl/2NBgTC

***** I wonder if making lists of things is one.

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Wednesday’s Top Three
Wednesday’s top three stories were led by Alain Courbebaisse moving over to Euronext in The Trade’s piece Soc Gen clearing head joins Euronext as chief tech officer. Second went to more people news, in JLN’s People Moves. Third went to RCM’s critique of the Wall Street Journal’s article on quants taking over Wall Street in Quants Run Wall St. Now?

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MarketsWiki Stats
101,657,909 pages viewed; 22,518 pages; 206,124 edits
MarketsWiki Statistics

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Lead Stories

Intercontinental Exchange Announces Agreement to Acquire Global Research Index Platform from Bank of America Merrill Lynch
ICE
Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced that it has entered into a definitive agreement to acquire the Global Research division’s index platform from Bank of America Merrill Lynch. The BofAML indices are the second most used fixed income indices by assets under management (AUM) globally, and upon closing, the AUM benchmarked against the combined fixed income index business of ICE will be nearly $1 trillion. Upon closing, the indices will be re-branded as the ICE BofAML indices.
jlne.ws/2rXmVSG

HKEX Announces Senior Appointments
HKEX
Trevor Spanner and Richard Leung appointed Group Chief Information Officer (CIO) and Deputy CIO to consolidate oversight of IT management and platform development across HKEX group; Roger Lee and Calvin Tai appointed Joint Chief Operating Officers at HKEX in addition to ongoing roles as Head of Markets and Head of Clearing respectively
/goo.gl/xKy7Vo

This Blockchain Bubble Might Be a Good Thing; Speculation in digital tokens could fund needed internet maintenance.
Elaine Ou – Bloomberg
Cryptocurrency enthusiasts have found a way to raise hundreds of millions of dollars without the hassle of registering with the Securities and Exchange Commission: selling digital tokens on a blockchain. Bubbly as this new market looks, it might actually serve a useful purpose.
/goo.gl/LhLesL

Morgan Stanley’s 16,000 Human Brokers Get Algorithmic Makeover
Hugh Son – Bloomberg
New software to prod advisers with suggestions and reminders; Man-machine fusion may help firms avoid paying signing bonuses
Call them cyborgs. Morgan Stanley is about to augment its 16,000 financial advisers with machine-learning algorithms that suggest trades, take over routine tasks and send reminders when your birthday is near.
/goo.gl/Hul8uI

IEX exchange eyes first company listing in October; Regulatory approval for move would be group’s latest effort to shake up US equity market
Nicole Bullock in New York – FT
IEX, the trading start-up that became an exchange about a year ago, plans to list its first company in October in an effort to expand into an area dominated by the New York Stock Exchange and Nasdaq.
/goo.gl/KjfZLU

How Twitter Is Being Gamed to Feed Misinformation
Farhad Manjoo – NY Times
After last year’s election, Facebook came in for a drubbing for its role in propagating misinformation ó or “fake news,” as we called it back then, before the term became a catchall designation for any news you don’t like. The criticism was well placed: Facebook is the world’s most popular social network, and millions of people look to it daily for news.
/goo.gl/Ow0DJ6

EU regulator fines Moody’s EUR1.24m for breaching credit rating rules
Nicholas Megaw – FT
The EU’s markets watchdog has fined Moody’s a total of EUR1.24m for failing to publicly explain how it made a series of ratings decisions on EU institutions, in only the third fine the regulator has issued since it took responsibility for the credit ratings industry in the aftermath of the financial crisis.
/goo.gl/kYGwtx

EU Sets Guidelines for Members Luring London Finance Firms After Brexit; EU watchdog recommends consistent rules across the bloc so countries don’t gain an unfair advantage
Julia-Ambra Verlaine – WSJ
The European Union’s securities watchdog is moving to prevent national governments using differences in regulations across the bloc to lure business forced to relocate from London because of Brexit.
/goo.gl/z9ALTi

Here’s How to Go Public Without Wall Street; The question is whether the IPO path chosen by medical-robotics maker Myomo Inc. can work for other small firms
Corrie Driebusch – WSJ
Medical-robotics maker Myomo Inc. is taking a shortcut to go public. If it is successful, other small businesses could follow, perking up a dormant corner of the U.S. IPO market.
/goo.gl/GoRcpR

FCM Rankings & Concentration: Q1 2017
Tod Skarecky – Clarus Financial Technology
Clearing broker data is out for Q1 2017, so I wanted to run the numbers and see if anything has changed. Lets start with a view onto the number of registered FCMs. This shows 64 firms registered (down 1 from Q4 2016), and 55 firms with any Client Requirements (down 2). On the bright side, there is a new entrant listed, Apex Clearing. Not yet showing activity, but good to see a new name pop up!
/goo.gl/bv89Qt

Liquidnet appoints former Citi risk chief for strategies role; Takis Christias will join Liquidnet as head of trading strategies for the EMEA region.
Paul Walsh – The Trade
Liquidnet has appointed Takis Christias as head of trading strategies for EMEA with responsibility of building out its electronic execution offering.
/goo.gl/RohbeY

Exxon investors defy board on climate reporting; BlackRock backs shareholder vote for assessment of global risks
Ed Crooks in New York – FT
Shareholders in ExxonMobil have backed a call for the company to publish an annual assessment of the impact of climate policies on its business despite board opposition, in a sign of large investors’ growing focus on the issue.
/goo.gl/n5KaST

Wells Fargo barred from business with New York City; Move is additional blow to the bank’s market share in muni bond underwriting
Alistair Gray and Eric Platt – FT
New York City is to suspend dealings with Wells Fargo, in a move likely to exacerbate the bank’s loss of market share in the $3.8tn US municipal bond market.
/goo.gl/JwuWA9

Wall Street Traders Crave Action. April and May Didn’t Deliver
Hugh Son, Laura J Keller and Dakin Campbell – Bloomberg
Banks earn less as big geopolitical events like Brexit subside; For many traders, lower volatility means ‘a very tough slog’
Many crises could’ve erupted in the world during the second quarter, and then didn’t. That’s not necessarily good for Wall Street banks.
/goo.gl/qKUXjj

Ackerman’s Take: No Furloughs Envisioned at CFTC; In late 2013, after going without a significant funding increase for several years, the CFTC furloughed staff
Andrew Ackerman
/goo.gl/5OPx5r

***** WSJ Pro subscription required.

Why Size Matters Again for Banks; The current rate environment strongly favors the biggest lenders
Aaron Back – WSJ
Bank investors are fretting over the recent decline in long-term interest rates, but not all banks are equally exposed. The current rate environment strongly favors the biggest lenders.
/goo.gl/lpCSDQ

Exchanges, OTC and Clearing

Deutsche Bˆrse’s cash market turnover reaches EUR 131.5 billion in May
Deutsche Bˆrse
Trading sales in the cash market of Deutsche Bˆrse rose significantly in May compared to the previous year. Order book turnover at the Xetra, Frankfurt Stock Exchange and Tradegate Exchange trading centers totaled EUR 131.5 billion. In May 2016, EUR 103.8 billion was implemented.
/goo.gl/w6Tnai

Price data from Xetra and Bˆrse Frankfurt will be significantly lower for private investors
Deutsche Bˆrse
Deutsche Bˆrse lowers the prices for real-time prices of the trading venues Xetra and Bˆrse Frankfurt for private investors. Service providers such as brokers, data vendors or financial portals will receive up-to-date price data from Bˆrse Frankfurt free of charge from 1 September 2017; Xetra prices will be available from January 1, 2018 for EUR 4.90 instead of EUR 15 per month. The prerequisite for this is that the data are offered in a closed user group.
/goo.gl/U2LPaV

IEX to begin listing U.S. company shares in October
John McCrank – Reuters
IEX Group, operator of the newest U.S. stock exchange, plans to list its first company in October as it tries to break into a business dominated by the New York Stock Exchange and Nasdaq Inc (NDAQ.O), according to a trading alert sent out on Wednesday.
reut.rs/2sotqdG

BREXIT: Moving Euro clearing conflicts with G20 Market Reforms
Chris Barnes – Clarus Financial Technology
Moving clearing of EUR-denominated contracts to the Eurozone is a complicated proposition. Bifurcating cleared portfolios will make bilateral markets more attractive than cleared markets. This raises questions over existing clearing mandates. It also conflicts with the G20 OTC market reforms intended to reduce systemic risk through the promotion of clearing.
Enforcing a location policy for a given currency can cause the Initial Margin at a CCP to be 25% higher than bilateral markets.
/goo.gl/3NgrM2

NSE’s new multicast trading system gets EY thumbs up; For sending data feeds to trading members and brokers
Samie Modak – Business Standard
The National Stock Exchange (NSE)’s new multicast trading system, used for sending data feeds to trading members and brokers, has received a thumbs-up from EY.
/goo.gl/M7sgBx

Straits Times Index (STI) quarterly review; No changes to the STI constituents
SGX
FTSE Russell announces that there will be no changes to the constituents of the Straits Times Index (STI), following the June quarterly review.
/goo.gl/HHIClg

MTS launches Global Collateral Management segment for D2C Repo trading
London Stock Exchange Group
MTS, one of Europe’s premier fixed income trading venues, has launched its new dealer-to-client (D2C) Global Collateral Management (GCM) segment for the repo market on MTS BondVision UK, and is pleased to announce the signing of LCH Ltd, a leading global clearing house as its first buy-side client.
/goo.gl/LATBwU

TMX Group CEO Lou Eccleston to present at the 2017 Sandler O’Neill Global Exchange and Brokerage Conference
TMX
TMX Group CEO Lou Eccleston will present at the 2017 Sandler O’Neill Global Exchange and Brokerage Conference on June 8, 2017 in New York.
/goo.gl/vYnTzU

Chinese bitcoin exchanges resume withdrawals after freeze
John Ruwitch and Brenda Goh – Reuters
Major Chinese bitcoin exchanges have started to resume allowing withdrawals of the cryptocurrency after nearly a four-month freeze that followed increased scrutiny from the central bank.
/goo.gl/EXVGHV

Fintech

Morgan Stanley’s 16,000 Human Brokers Get Algorithmic Makeover
Hugh Son – Bloomberg
New software to prod advisers with suggestions and reminders; Man-machine fusion may help firms avoid paying signing bonuses
Call them cyborgs. Morgan Stanley is about to augment its 16,000 financial advisers with machine-learning algorithms that suggest trades, take over routine tasks and send reminders when your birthday is near.
/bloom.bg/2so8hjN

Numerix Named Analytics Vendor of the Year in the 2017 Global Capital Americas Derivatives Awards
Numerix
Numerix, the leader in risk technology today is proud to announce it’s been recognized with two prestigious honors in this year’s Global Capital Americas Derivatives awards. Jim Jockle, CMO of Numerix accepted the awards for Analytics Vendor of the Year and Best Risk Management, Pricing and Valuation solution on behalf of the company at the gala dinner hosted by Global Capital on May 25th in New York City.
bit.ly/2so04Mz

China Just Became The Games Industry Capital of The World; Global revenue passes $100 billion for the first time fueled by smartphone use
Nate Lanxon – Bloomberg
Revenue from computer games exceeded $100 billion globally in a single year for the first time, while China has overtaken the U.S. as the “gamer capital of the world” in terms of market size, according to a report published by London-based venture capital firm Atomico.
/goo.gl/RQKzX1

Politics

Rich Americans Hasten a Trump Headache: Raising the Debt Limit
Saleha Mohsin and Christopher Condon – Bloomberg
Wealthy Americans have put off some of their tax bills this year, causing such a pinch to government revenue that the U.S. could face a default on its debt months sooner than the White House expected.
/bloom.bg/2sowbvJ

If Trump Dumps the Climate Accord, the U.S. Is the Loser; An exit would undermine America’s economic competitiveness, technological innovation, and global leadership. Not to mention the, um, planet.
Eric Roston – Bloomberg
Take a deep breath. Donald Trump’s mercurial nature may mean that the U.S. president will shift his position on climate policy once again. Orótake another deep breathómaybe not.
/goo.gl/2Ejf2G

Facebook and Apple urge Donald Trump not to pull out of Paris Agreement; Twenty-five US companies including Apple, Facebook and Google have signed a letter imploring Mr Trump not to exit the 2015 Paris climate accord
Miles Dilworth – Independent
Twenty-five of the world’s biggest corporations have made a last-minute pitch to President Donald Trump urging him not to reconsider plans to withdraw the United States from a landmark international agreement on climate change.
/goo.gl/h7Vb3w

Investors Wake Up to U.K. Election Risks; Sterling whipsaws amid mixed polls on the ruling Conservative Party’s chances of winning a majority
Christopher Whittall and Mike Bird – WSJ
The pound whipsawed Wednesday, as opinion polls gave mixed messages on next week’s U.K. general election, heralding the return of politics as the key driver of British markets.
/goo.gl/PC76sl

Regulation

MiFID II just got political
Ollie Cadman – Vela Trading Technologies
In March 2017, Vela hosted an executive roundtable in London on the cross-asset challenges of MiFID II. In the second of three event reports, we discuss how buy-side, sell-side, and market operator attendees were all keenly aware that large political and secular decisions could have a considerable effect on the impact that MiFID II will have upon their businesses. Consequently, investment firms need to consider these dynamics when assessing the impact of MiFID II upon their firms.
/goo.gl/EhtDoF

ESMA issues standards on regulatory cooperation regarding market abuse
ESMA
The European Securities and Markets Authority (ESMA) has issued today final Implementing Technical Standards (ITS) regarding the application of the Market Abuse Regulation (MAR).

ESMA consults on measures for CCPs to manage conflicts of interest
ESMA
The European Securities and Markets Authority (ESMA) opened today a public consultation on future guidelines, which further clarify provisions stemming from the European Market Infrastructure Regulation (EMIR).
/goo.gl/oHpkcl

ESMA fines Moody’s EUR1.24 million for credit ratings breaches
ESMA
The European Securities and Markets Authority (ESMA) has fined Moody’s Deutschland GmbH (Moody’s Germany) EUR750,000 and Moody’s Investors Service Limited (Moody’s UK) EUR490,000, and issued a public notice, for two negligent breaches of the Credit Rating Agencies Regulation (CRAR).
/goo.gl/b4Hs5C

Sebi proposes to regulate index providers of Sensex, Nifty; These suggestions are in line with International Organisation of Securities Commissions principles
Business Standard
The Securities and Exchange Board of India (Sebi) on Wednesday proposed new norms to regulate index providers, entities who design and develop benchmark indices such as the Sensex and Nifty. The index operators, which include subsidiaries of stock exchanges and independent entities such as S&P, currently do not come under Sebi’s direct regulatory purview.
/goo.gl/ZRE9rW

Securitisation market to be “revived” after EU agrees on “safe, transparent and standardised” rules
Lucy White – City AM
The European Parliament, Council and Commission agreed last night on a long-awaited package of reforms to “revive” the EU’s securitisation market.
/goo.gl/xUJMaH

Bloomberg approved as latest EMIR trade repository; Bloomberg will begin trade repository services in Europe for OTC and exchange traded derivatives from 7 June.
Joe Parsons- The Trade
Bloomberg Trade Repository (BTRL) has become approved by the European Securities and Markets Authority (ESMA) as a reporting house for derivatives trades.
/goo.gl/Wuz3wS

Investing and Trading

Bitcoin Exuberance Is Even More Dramatic in Its Lone Investment Trust
Camila Russo – Bloomberg
Grayscale Investments’ trust trades at double net asset value; ARK Investment’s Wood says her fund reduced bitcoin holdings
If you need evidence that bitcoin mania is getting extreme, look at the lone investment vehicle available to institutional investors.
/bloom.bg/2sogc0r

Are Hedge Funds Worth As Much As They Say They Are?
By Pierre-Axel Gide – The CLS Blue Sky Blog
In 2001, hedge fund manager Cliff Asness co-wrote a famous paper, Do Hedge Funds Hedge?1 Sixteen years later, amid significant changes in the industry, it’s worth asking, Are hedge funds worth as much as they say they are? And what explains the expectation, as reported by Preqin,2 that outflows from hedge funds will continue in 2017 (I suspect either performance-related or cost-related issues, or both)?
/goo.gl/1jH8FA

Bitcoin Is at Risk of No Longer Being the Biggest Digital Currency
Lily Katz – Bloomberg
Step aside, bitcoin. There’s another digital token in town that’s winning over the hearts and wallets of cryptocurrency enthusiasts across the globe. The value of ether, the digital currency linked to the ethereum blockchain, could surpass that of bitcoin by the end of 2018, according to Olaf Carlson-Wee, chief executive officer of cryptocurrency hedge fund Polychain Capital.
/bloom.bg/2soord0

Is there still life in the low-vol bet?; Quant analysts disagree on rate sensitivity of $150 billion strategy
Rob Mannix – Risk.net
Low-volatility funds look set to be big losers during the reflation trade, with $11.5 billion leaching from the sector in the second half of 2016, according to research house Bernstein.
/goo.gl/G81qlH

Pimco hit by price plunge in teetering Spanish bank’s bonds; Banco Popular’s riskiest debt currently trading at distressed levels
Thomas Hale in London – FT
Pimco, one of the world’s largest asset managers, has been caught out by the plunge in the price of Banco Popular’s riskiest bonds after it was left holding hundreds of millions of euros in exposure to the distressed Spanish bank.
/goo.gl/LEK160

My Smart Beta ETF Premised on Cats Rang Up an 849,751% Return
Dani Burger – Bloomberg
I was rich. Right? I mean, that’s what my Bloomberg said. I’d just entered in an index built from companies with “cat” in their names — yes, the furry felines — hit a button and watched it back-test to an 849,751 percent return. Forget the internet, I thought. Cats are about to take over smart beta.
/goo.gl/qIvJxr

Opinion: How to win at investing by not losing your cool
Meir Statman – MarketWatch
We often speak about emotions in finance as if they are shorthand for emotional errors. We are advised to set emotions aside when making financial choices, and use reason alone.
/goo.gl/CJRdGF

Institutions

BNY Mellon creates tri-party repo subsidiary; BNY Mellon is targeting enhanced capabilities in the US government securities clearance and tri-party markets with a new subsidiary.
Paul Walsh – The Trade
BNY Mellon has formed a wholly owned subsidiary in a bid to increase efficiency of the US government securities clearance and tri-party repo markets.
/goo.gl/rdUkmf

Barclays cuts stake in African operations further than expected; Sale of shares in Johannesburg-listed offshoot to boost capital but trigger £1.2bn loss
Martin Arnold – FT
Barclays has sold a bigger chunk of its African operations than expected, cutting its stake to its target of 15 per cent, which the British bank said would boost capital but generate a £1.2bn loss.
/goo.gl/EhkBLR

US bank stocks head towards bear market territory
Ben McLannahan and Nicole Bullock – Financial Times
Shares in some of the biggest US banks are heading towards bear-market territory, beaten down from their post-election peaks by talk of weak second-quarter trading revenues and fading hopes of a Trump-fuelled stimulus.
on.ft.com/2sok2af

Why Goldman’s Venezuela bond trade sparked controversy; South American country’s debt remains appealing to investors despite political risks
Robin Wigglesworth and Gideon Long – FT
Goldman Sachs stirred controversy this week, when Venezuelan opposition leaders accused the US bank of handing the country’s autocratic government a financial lifeline even as many of its people go hungry.
/goo.gl/6CYbzQ

JPMorgan faces trial over sale of fallen unicorn to BlackBerry; Bank protests against settlement that venture capital firms reached with shareholders
Sujeet Indap – FT
JPMorgan Chase is to face trial alone over alleged wrongdoing in the 2015 fire sale of Good Technology to BlackBerry, after the bank failed to block a settlement by other defendants including the software company’s venture capital backers.
/goo.gl/0ICsS5

Deutsche Bank to add more than 50 people to wealth management in Asia
Don Weinland – FT
Deutsche Bank plans to add more than 50 people to its wealth management team in Asia, including relationship managers, in the second half of the year, a spokesperson at the bank said.
/goo.gl/tawx9x

JPMorgan Trading Revenue on Pace to Drop 15% This Quarter
Hugh Son – Bloomberg
JPMorgan Chase & Co. said revenue from its trading businesses has dropped 15 percent so far in the second quarter from the same period a year ago because of low market volatility.
/bloom.bg/2sov3Ip

Bank of America CEO talks down second-quarter expectations
Dan Freed – Reuters
Bank of America Corp (BAC.N) second-quarter earnings will be hurt by a drop in trading revenue, lower-than-expected interest rates and the sale or shuttering of certain assets, according to comments from Chief Executive Brian Moynihan on Wednesday.
reut.rs/2son9if

New York City to cut Wells Fargo from future business
CNN Money
New York City has a message for scandal-ridden Wells Fargo: clean up your act, now.
Mayor Bill de Blasio and Comptroller Scott Stringer announced plans on Wednesday to vote in favor of punishing Wells Fargo by blocking the bank from getting new contracts for the city’s deposits.
cnnmon.ie/2sodVCA

Citadel Has a Big Short Against a Company Buffett Invested In
Brandon Kochkodin – Bloomberg
Hedge fund increased its short wager on Lanxess by 26%; Berkshire unit took 3% stake in German company this month
Warren Buffett and Ken Griffin’s firms have taken opposing bets on a German chemical company.
/bloom.bg/2sowmHp

Britain’s largest broker offers bitcoin investment
Laura Suter – Telegraph
Britain’s largest online trading platform, Hargreaves Lansdown, is to allow its customers to invest in bitcoin, the alternative digital currency.
/goo.gl/CIkoRJ

HSBC partners with AI startup to combat money laundering
Anna Irrera – Reuters
HSBC Holdings Plc has partnered with Silicon Valley-based artificial intelligence startup Ayasdi Inc to automate some of its compliance processes in a bid to become more efficient.
/goo.gl/rUDbvT

Regions

China’s financial clampdown will continue ó for now
George Magnus – Financial Times
The financial crackdown in China in the past three months flies in the face of the conventional wisdom that nothing would be allowed to happen to rock the boat ahead of the important 19th Communist party congress later this year. There is no doubting the serious intent of the regulatory squeeze, but it may nevertheless not persist.
on.ft.com/2sooc1t

Returns Soar as Emerging Markets Turn Less Volatile; Emerging markets are the calmest they have been in nearly three years, helping to draw a surge of funds from abroad and boosting returns in a sector that many investors once viewed as notoriously turbulent
Ira Iosebashvili – WSJ
Emerging markets are the calmest they have been in nearly three years, helping to draw a surge of funds from abroad and boosting returns in a sector that many investors once viewed as notoriously turbulent.
/goo.gl/Qbnqah

Here Are the Theories Why China May Be Supercharging the Yuan
Bloomberg News
Much speculation as to why Beijing has shifted its FX stance; Moody’s cut, Fed, Trump: analysts cite a range of reasons
China’s yuan has emerged from hibernation surprise with an improbable surge that’s left strategists asking — why?
/goo.gl/sf41sz

Japan’s Second-Largest Bank Has to Run Just to Stand Still
Gareth Allan and Shingo Kawamoto – Bloomberg
In the era of negative interest rates, Japan’s second-largest bank finds itself having to run just to stand still. Takeshi Kunibe, who took over as chief executive officer at Sumitomo Mitsui Financial Group Inc. in April, has set a new net-income target of about 700 billion yen ($6.3 billion) in the year ending March 2020. That’s roughly the same as in the latest 12-month period.
/bloom.bg/2sorEta

OPEC and Russia Outline Vision for Permanent Oil Alliance
Olga Tanas – Bloomberg
OPEC and Russia added more detail to their vision for a permanent alliance between oil producers currently working to clear a global surplus.
/bloom.bg/2so9xne

IMF warns of ‘significant’ risks from Canada’s housing market
Bill Curry – The Globe and Mail
The International Monetary Fund is urging Canada to take further action in order to address rising household debt levels and the risks of a sharp correction in the housing market.
/tgam.ca/2solIjR

EU and China strengthen climate ties to counter US retreat
Pilita Clark – Financial Times
China and the EU have forged a green alliance to combat climate change and counteract any retreat from international action by Donald Trump. In a stark realignment of forces, documents seen by the Financial Times show that Beijing and Brussels have agreed to measures to accelerate what they call the “irreversible” shift away from fossil fuels and the “historic achievement” of the Paris climate accord.
on.ft.com/2soe0X8

China’s New Cybersecurity Law Leaves Foreign Firms Guessing
Sui-Lee Weemay – NY Times
As China moves to start enforcing a new cybersecurity law, foreign companies face a major problem: They know very little about it.
/goo.gl/XzXvUm

‘Ghost collateral’ haunts loans across China’s debt-laden banking system
Engen Tham – Reuters
Lax lending practices and overvalued collateral spurred the U.S. financial crisis in 2008. Now, banks in China face risks of their own as fraudulent borrowers and corrupt bankers burden the financial system with loans lacking genuine collateral.
/goo.gl/B984Ia

Russia is looking to regulate bitcoin but still doesn’t see it as a currency
Arjun Kharpal, Geoff Cutmore – CNBC
Russia is exploring ways to regulate bitcoin, the country’s central bank governor has told CNBC, but sees “doubts” over the benefits of the cryptocurrency and even questions whether it should be considered a virtual currency at all.
/goo.gl/hCKhIE

Brexit

A no deal Brexit would be “an economic disaster”, Labour leader Jeremy Corbyn will today warn
Mark Sands – City AM
Labour leader Jeremy Corbyn will today raise questions about his party’s approach to Brexit, repeating attacks on Prime Minister Theresa May’s “reckless” attitude and warning that quitting Europe without a trade deal would risk a “jobs meltdown”.
/goo.gl/tQ1cun

Soros Says Brexit May Last 5 Years and Cause ‘Immense Damage’
Zoltan Simon – Bloomberg
EU should adopt ‘constructive spirit’ in divorce talks; Biggest threat facing EU is banking, migration crisis in Italy
It may take the U.K. as long as five years to leave the European Union, with the process set to do major harm to both parties, billionaire investor George Soros said, urging the world’s biggest trading bloc to avoid penalizing Britain and instead focus on reforming itself.
/goo.gl/IorpJ3

London’s Brexit Apocalypse Is Nowhere in Sight; A year after the Leave vote, Britain’s capital is scheming to dominate global finance, Europe be damned.
Matthew Campbell – Bloomberg
Thirty years ago, London’s Isle of Dogs was a barren expanse of abandoned wharves and crumbling warehouses, never recovered from the wartime attentions of the Luftwaffe. Even the names of nearby boat basins were reminders of Britain’s lost empire and postwar decline: the West and East India docks.
/goo.gl/U4iPaQ

Miscellaneous

Disgraced Ex-Math Teacher Accused of $70 Million N.Y. Fraud
Erik Larson and Christian Berthelsen – Bloomberg
Nissen allegely lied about buying bulk Hamilton tickets; Victims include private equity firm, diamond buyer, U.S. Says
A former New York math teacher allegedly graduated from ripping off his students of a few hundred dollars 14 years ago to scamming investors of more than $70 million today.
/bloom.bg/2soauvO

Maple Syrup’s OPEC Hits Back Against the U.S. With Record Harvest
by Jen Skerritt – Bloomberg
Quebec aims to reclaim market share, fight black-market sales; ‘Weather has been on our side’ for output boost: federation
Quebec, the world’s largest maple-syrup producer, said this season’s harvest rose 2.7 percent to a record amount large enough to fill 24 Olympic-sized swimming pools.
/goo.gl/E6b9yR

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