New York Stock Exchange

SIX launches crypto platform; Trade war begins; Credit Suisse fined

Jul 6, 2018

Spencer Doar

Spencer Doar

Associate Editor

First Read

Hits & Takes
JLN Staff

Darin Diller, a former futures operations industry veteran (J.P. Morgan, Geneva Trading USA, Newedge and First Capitol Group), passed away from natural causes as a result of advanced diabetes on July 1, 2018. He was 50.~JJL

The latest Financial Data for FCMs report is out from the CFTC.~JJL

At 12:16 AM I tweeted this story because I could not sleep: “Sleep deprivation is part of our productivity problem“~JJL

The Boy Scouts of America closed the backcountry season for the Philmont Scout Reservation due to extreme wildfire conditions.~JJL

I am signed up for a Meetup on July 19, “https://jlne.ws/2KOYu33|A Chicago Insight to Cryptoeconomics]]” by Disruption Joe from Chicago Blockchain Project.~JJL

Bo Collins had to drop out as a speaker at our MarketsWiki Education World of Opportunity event on Wednesday due to a scheduling conflict. We are adding Gary DeWaal as a speaker at the last session to replace Collins.~JJL

There is still time to sign up for the New York MarketsWiki Education World of Opportunity events. Go to www.marketswikieducation.com to see the complete lineup of speakers.~JJL

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IFM Blockchain Class

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Why sitting down all day is bad for your brain
World Economic Forum
In many aspects of life where we need to use our brain power, we also tend to sit down: at school, at work, sitting exams or concentrating on a crossword. In a new paper, we explore how prolonged sitting may affect the brain’s fuel supply and have a negative impact on brain health.
/jlne.ws/2MSnPa3

**Hold on, I gotta sit down and think about this for a while.~JK

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FIA IDX 2018 – Making Time for Readiness
JohnLothianNews.com
According to FIS’ 2018 Readiness Report, industry leaders in fund administration, banking, broking and asset management are modernizing their operating models twice as fast as the rest of their peers.

In this video from FIA IDX, FIS’ John Omahen, SVP product management, post trade derivatives, talks about not only putting out the fires that be, but making the time to improve operations. FIS has modernized its back and middle office technology offerings and is in the somewhat unusual position of baking their cake and eating it too, as they deploy their own services internally. How ready is your company to revamp and grow?
Watch the video here »

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Nasdaq CIO Puts AI to Work; Nasdaq’s AI systems can write certain financial reports and help detect potential fraud
Sara Castellanos – WSJ
Nasdaq Inc. has developed early-stage artificial intelligence systems that can write certain financial reports and help detect fraudulent activity, and is considering other ways AI could collaborate with human analysts to enhance services for corporate clients.
/jlne.ws/2KScKrS

****Can you make an ETF out of it somehow? Oh, wait, there’s already a long/short forensic accounting fund…~SD

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Thursday’s Top Three
Our top story of the day was the FT’s Binary options trading is dead – though few will mourn it. Second was the Meanderful blog post on the latest CME patent, CME patent identifies speculative systems used by speculators. Third was the Reformed Broker’s piece on Haym Solomon in The Broker Who Saved America

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MarketsWiki Stats
129,165,166 pages viewed; 23,175 pages; 213,882 edits
MarketsWiki Statistics

Lead Stories

Swiss bourse launches cryptocurrency platform; Six digital exchange to offer deal settlement and asset custody services
Ralph Atkins and Philip Stafford – FT
Switzerland’s stock exchange is seeking a global lead in the trading of digital assets, announcing plans for new market infrastructure which will boost the country’s credentials as a “crypto nation”.
/jlne.ws/2KNXNaq

****Business Insider here

Trump’s Trade War Has Officially Started; Hostilities need to cease immediately.
Editors – Bloomberg
After months of feint, bluster and desultory attempts at compromise, the phony trade war between the U.S. and China has given way to the real thing. For the sake of both countries, these self-defeating hostilities need to cease ó and the principal responsibility for this rests with the U.S., which has fired the first shot.
/jlne.ws/2KCIMc3

Credit Suisse pays U.S. $77 million to settle Asia hiring corruption probes
Jonathan Stempel – Reuters
Credit Suisse Group AG (CSGN.S) agreed to pay about $77 million to settle U.S. bribery probes into its awarding of jobs to family and friends of Chinese and other government officials in the Asia-Pacific region, to win lucrative investment banking business.
/goo.gl/oxzWwn

****Financial Times here.

Trump Twitter Risk Adds a New Wild Card to Friday’s Jobs Report
Sarah Ponczek and Jeanna Smialek – Bloomberg
Traders on heightened alert after president’s June 1 preview; June nonfarm payrolls data to be released at 8:30 a.m. Friday
Kenneth Broux, a currency and rates strategist at Societe Generale SA in London, typically arrives at work around 7 a.m., grabs a coffee and settles into his sunlit desk. And on Friday, fixating on Twitter will play an outsize role in his morning routine.
/jlne.ws/2KKtQIr

****SD: It’s looking like we will be tweet-less today – by this time on the day of the last jobs report he’d already alluded to the positive results.

Libor switch calls for modelling overhaul, quants warn; All pricing, risk and valuation models will need to be changed to reflect the new rate
Nazneen Sherif – Risk.net
Members of the financial community tasked with finding an alternative to the discredited Libor benchmark have worked long hours developing a set of replacement rates. For another constituency – the quants responsible for using these new rates to reprice and revalue thousands of derivatives trades – the work is only just beginning.
/jlne.ws/2KDOWZs

The AI arms race: the tech fear behind Donald Trump’s trade war with China; America’s anxiety about Chinese technological prowess is reflected in Washington where politicians are rethinking their attitudes to foreign investment
Shawn Donnan – FT
The ZGC Innovation Center bills itself as a one-stop incubator for the tech start-ups of the American future. Its main facility is in Santa Clara, California, just down the road from the Google and Apple campuses. Its new Boston location is squeezed between two of the world’s most prestigious educational institutions ó Harvard University and the Massachusetts Institute of Technology.
/jlne.ws/2KKplxx

A once timeless skill in commodities investing is under threat; Examining data on futures positions may no longer yield trading gold
Gregory Meyer – FT
One of commodities markets’ more time-honoured tasks involves scanning weekly data on fund managers’ futures positions. Analysts calculate the funds’ net bullish or bearishness and try to guess where prices might go next.
/jlne.ws/2KOOLKq

There Are Fears About an Oil Spike Above $150
Ben Sharples – Bloomberg
Shareholders will come to lament underinvestment: Bernstein; Prices could surge past 2008 highs if new reserves not found
Oil investors may regret urging companies to cough up cash now instead of investing in growth for later as the dearth of exploration is setting the stage for an unprecedented crude price spike, according to Sanford C. Bernstein & Co.
/jlne.ws/2KMjlnJ

****SD: See our Regions and Politics sections for more on oil and Iran’s Strait of Hormuz threat.

China market turmoil revives memories of previous carnage; Dual weakness in stocks and currency spark comparisons with 2015 rout
Gabriel Wildau – FT
Turmoil has returned to Chinese financial markets after more than two years of relative calm, reviving memories of 2015-16, when an equity market rout combined with currency depreciation captured the attention of global investors and sparked worries about systemic risk.
/jlne.ws/2KD40qx

****Related content from the WSJ – This Year’s Selloff in Chinese Markets Isn’t Like 2015. It Looks Worse

Nasdaq’s Adena Friedman on the Power of Going Public
Office Hours
Adena Friedman is president and chief executive officer of Nasdaq, which operates the second-largest stock exchange in the world by market cap. Named one of Forbes’ most powerful women, Adena built her career at Nasdaq, starting as an intern straight out of an MBA program. Outside of a three-year stint as chief financial officer at The Carlyle Group, she’s been with Nasdaq ever since. In this episode, Spencer joins Adena in New York City to discuss the power of mentorship, the future of the U.S. capital markets and why going public can spark innovation.
https://jlne.ws/2KU34tZ

Cybercrime Meets Insider Trading in Sports

Craig A. Newman – NY Times
Sport’s best-kept secrets ó confidential information about game-day strategies and player performance and critical insights into competitors ó are closely guarded for good reason. The information could help teams as well as those betting on the games gain an edge.
/jlne.ws/2KTrzY6

Exchanges, OTC and Clearing

TMX Group Consolidated Trading Statistics – June 2018
TMX
TMX Group Limited today announced June 2018 trading statistics for its marketplaces – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange (Alpha) and MontrÈal Exchange (MX).
/jlne.ws/2KUSZ3e

Ice Clear Europe had a top margin breach of $91 million in Q1
Alessandro Aimone – Risk.net
Ice Clear Europe reported nine margin breaches averaging $14.6 million for the first quarter, the biggest of them $90.8 million in size. The breaches at Ice were the largest average and top shortfalls in its futures and options business segment since public disclosure began in the third quarter of 2015.
/jlne.ws/2KAmXtQ

“It’s important to offer accessibility during the original Asian trading hours”
Eurex
MarketVoice, FIA’s Magazine of the Global Futures, Options and Cleared Swaps Markets, has looked into our plans to extend Eurex’ trading hours. Our deputy CEO Michael Peters shared the reasoning behind the project with the association.
/jlne.ws/2KU8p4r

End of Consultation on the proposed amendments to the Clearing Conditions regarding the topic “Removal of redundancies in respect to the EMIR Risk Committee”
Eurex
As announced in Eurex Clearing circular 054/18, Eurex Clearing proposed to amend the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) to implement the following:
/jlne.ws/2KTZ7Wb

ASX Monthly Activity Report – June 2018
ASX
/jlne.ws/2KX5Q1h

Exchange Publishes Guidance Letter for Internet-related Listing Applicants
HKEX
Exchange publishes Guidance Letter to further facilitate listings of companies from emerging and innovative sectors; Guidance addresses characteristics of internet-related companies
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), published today (Friday) a Guidance Letter for applicants in the internet technology sector or that have internet-based business models (collectively, Relevant Sectors).
/jlne.ws/2IZzEc9

Exchange Adds New Member to its Biotech Advisory Panel
HKEX
One new Panel member, 16 members on Panel in total;Exchange will continue to look to add Panel members as appropriate
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) announced that it has added Vanessa Huang, a General Partner at BVCF Management, to its Biotech Advisory Panel (the Panel) to further enhance its pool of expertise.
/jlne.ws/2J0bCh0

SGX reports market statistics for June 2018
SGX
Positive performance in the equity markets, with SDAV up 14% y-o-y and growth in market turnover value of ETFs, structured warrants and DLCs.
SGX USD/CNH Futures volume from January to June 2018 reached US$194 billion, surpassing 2017 full-year volume of US$190 billion. Securities – Total Securities market turnover value was at S$24.3 billion, down 14% month-on-month (m-o-m) and up 9% year-on-year (y-o-y), over 20 trading days. There were 21 trading days in May 2018 and 21 in June 2017. Derivatives – Total Derivatives volume was 17.82 million, up 7% month-on-month (m-o-m) and up 14% year-on-year (y-o-y).
/jlne.ws/2IZgVxk

Fintech

JUMP and Itiviti partner to optimize investment & trading management workflows
Bob’s Guide
JUMP, a French leading provider of investment management software solutions, has partnered with Itiviti, the leading global provider of multi-asset trading technology and financial infrastructure
/jlne.ws/2KLQwI6

First Derivatives to buy out Kx Systems shareholders for $54m
Marta Subat – Infosurhoy.com
First Derivatives is to buy the remaining shares in Kx Systems for $53.8m (EUR46m).
Kx Systems is a subsidiary of First Derivatives.
/jlne.ws/2KPiqD6

Financial crime AI firm raises $30mn+ for global expansion
MarketBrains
ThetaRay raised over $30 million from investors such as Jerusalem Venture Partners (JVP), GE, Bank Hapoalim, OurCrowd, and SVB Investments in an oversubscribed round. This latest round brings the total raised by the company to $60+ million.
/jlne.ws/2KDbEB1

Payments processor Square Inc. withdraws banking license application – statement
Michelle Price – Reuters
San Francisco-based payments processor Square Inc. (SQ.N) said on Thursday it had withdrawn its regulatory application to open a deposit-taking bank, but that the company plans to refile its paperwork at a later date.
/goo.gl/NX3sgG

JP Morgan Data Scientist Eyes Insights from Internal Data
Faye Kilburn – Waterstechnology.com
The firm’s three flagship real estate fundsówhich buy individual properties rather than portfoliosómanage roughly $50 billion in assets globally. Over the years, the funds have naturally amassed research on the US real estate market that could now bear fruit for the rest of the business, says Ravit Mandell, chief data scientist for JPMAM’s intelligent digital solutions division.
/jlne.ws/2KOVWlO

Want a job in data science? You might have to take a standardized test when applying
Ally Marotti – Chicago Tribune
Data analytics is becoming more vital for businesses, and data scientists are in high demand. But the emerging field is broad, and some companies say they have struggled to find job candidates whose skills fit their needs.
/jlne.ws/2KBueK3

Cryptocurrencies

World’s Largest Crypto Exchange Eyes $1 Billion Profit Amid Rout
Cindy Wang – Bloomberg
This year’s cryptocurrency crash has saddled bulls with billions of dollars in losses, but the world’s largest virtual currency exchange is still making money hand over fist.
/jlne.ws/2KyHoqW

Crypto Thefts Triple, Driving Growth in Coin Money-Laundering
Olga Kharif – Bloomberg
‘Whole new generation of cyber criminals’ is emerging; Regulators are likely to crack down, CipherTrace CEO says
Criminals are stealing more cryptocurrency from exchanges, and that’s driving growth in a cottage industry of services that allows for money laundering of coins, according to a new report.

Bitcoin’s Lightning Network Could Play Havoc With The Bitcoin Price
Billy Bambrough – Forbes
Bitcoin’s Lightning Network has been hailed as the saviour of bitcoin transactions ó the thing that will allow the clunky and encumbered original blockchain-based cryptocurrency to compete with the likes of more nimble bitcoin cash, dash coin, lite coin and ripple.
/jlne.ws/2KEMdyU

Bitcoin billionaire’s foul-mouthed tirade puts spotlight on China’s cryptocurrency scene; Recording leaked to social media exposes rifts within China’s crypto space
Zheping Huang – South China Morning Post
China’s most high profile bitcoin tycoon called out many big names in the country’s cryptocurrency space as “cheaters” in a foul-mouthed tirade that has reignited a debate in the country over whether digital money is the future of finance or just speculative hype.
/jlne.ws/2KEvmMU

How Indian cryptocurrency exchanges are trying to survive
Nupur Anand – Quartz India
In April, the Reserve Bank of India (RBI) cracked the whip on cryptocurrency exchanges in the country. It sent a missive to all Indian lenders, asking them to terminate all banking relationships with these bourses by July 05.
/jlne.ws/2KBtKnd

BIS Chief to Crypto Coders: ‘Stop Trying to Create Money’
Wolfie Zhao – Coindesk
The head of the Bank of International Settlements has predicted a bad ending for cryptocurrencies, calling for an end to their production in a recent interview.
/jlne.ws/2KM14qB

Speed Trader Jumps Into Crypto Bets Opposed by Watchdog
Will Hadfield and Edward Robinson – Bloomberg
Flow Traders is first to say it’s trading ETNs, not futures; Dutch market regulator ‘discourages’ anyone from using crypto
Europe’s largest trader of exchange-traded funds is moving into crypto, even though its regulator urges consumers and institutions not to buy and sell digital currencies.
/jlne.ws/2KOdIpe

A Fifth of All Bitcoin Is Missing. These Crypto Hunters Can Help; A new crop of digital sleuths is working with investors and law enforcement to find misplaced or inaccessible cryptocurrency
Elliott Krause – WSJ
Think of them as the metal detectors of the digital age. Instead of combing beaches for gold, these experts use everything from supercomputers to hypnotherapy to reunite people with their lost cryptocurrency.
/jlne.ws/2KLYXmF

Politics

Chinese Tariffs Hit Trump Counties Harder; Beijing’s retaliation would be felt by U.S. soybean farmers, auto makers and oil producers
Maureen Linke and Josh Zumbrun – WSJ
The fallout from President Donald Trump’s tariffs and China’s countertariffsówhich formally went into effect on Fridayówill have the greatest impact on the U.S. counties that voted Mr. Trump into office.
/goo.gl/74aCaj

Oil’s Twitter War May End Badly for Trump; President’s use of Twitter to jawbone the price of oil is in danger of backfiring
Spencer Jakab – WSJ
Too bad cars don’t run on light tweet crude. Since the 1970s oil prices have, in at least the short run, been susceptible to jawboning from producers and, to a lesser extent, the White House. The Organization of the Petroleum Exporting Countries controls a third of production while the world’s biggest consumer can, at the order of the president, release part of the 660 million barrels of crude held as a strategic reserve.
/jlne.ws/2KOb8iZ

Saudis Lower Most Oil Pricing as Iran Taunts Trump on Tweets
Anthony Dipaola – Bloomberg
Aramco cuts Asia light pricing for 1st time in four months; ‘REDUCE PRICING NOW!,’ U.S. President Trump tweeted this week
Saudi Arabia cut pricing for most of its oil grades as the world’s biggest crude exporter is increasing production to assure buyers there is sufficient supply following U.S. President Donald Trump’s demands that OPEC do more to stabilize oil markets.
/jlne.ws/2KV7pAp

Trump to blame for higher oil prices – Iran official; Opec governor blames US decision to withdraw from nuclear deal for crude higher
Anjli Raval – FT
Donald Trump is to blame for rising oil prices and any attempt at urging big producer countries to ramp up output to thwart a spike in crude will be futile, Iran’s Opec governor told the Financial Times.
/jlne.ws/2KA63vf

Trump says U.S. tariffs could be applied to Chinese goods worth $500 billion
David Lawder, Elias Glenn – Reuters
President Donald Trump said on Thursday the United States may ultimately impose tariffs on more than a half-trillion dollars’ worth of Chinese goods as the world’s two largest economies hurtled toward the start of a trade war.
/jlne.ws/2KD6Uvh

How to Make Trump’s Tax Returns Public
David Cay Johnston – NY Times
On June 14, the New York State attorney general, Barbara Underwood, filed a civil complaint against President Trump and his three oldest children, accusing them of “persistently illegal conduct” in using the Donald J. Trump Foundation as “little more than a checkbook for payments from Mr. Trump or his businesses to nonprofits, regardless of their purpose or legality.”
/jlne.ws/2KFdj9d

Regulation

Steven Cohen blocked by UK regulator from reopening fund; US hedge fund manager whose ban has expired was hoping to move back into Europe
Martin Arnold, John Gapper and Lindsay Fortado – FT
US hedge fund manager Steven Cohen has been blocked by the UK regulator from reopening his multibillion-dollar fund to investors in Britain, after a two-year ban over insider trading at his previous firm expired at the start of this year.
/jlne.ws/2KSUte7

Regulators order banks to raise game on IT issues
Katherine Griffiths, Banking Editor – The Times
British banks have been given three months to come up with details of how they plan to tackle internal IT glitches and cyber attacks.
/jlne.ws/2KLxrG7

Bank outages should be limited to two days, say regulators; Guidance comes after IT glitches at TSB and Visa caused chaos for millions of customers
Patrick Collinson – The Guardian
City regulators have told banks and financial firms they may have to set an acceptable “maximum outage time” after an IT meltdown, after the TSB failure that led to some customers losing access to accounts for more than a month.
/jlne.ws/2KRNjH8

Ontario Securities Commission Publishes 2018-2019 Statement Of Priorities
Mondovisione
The Ontario Securities Commission (OSC) today published its 2018-2019 Statement of Priorities, which sets out the 15 priority areas where the OSC intends to focus resources and actions over the coming fiscal year, as well as the expected outcomes.
/jlne.ws/2KLHLhn

The SEC takes executive compensation seriously
Dan McCrum – FT
In case it slipped past, the Securities and Exchange Commission took Dow Chemical to task this week, fining the company $1.75m after alleging “Dow did not ensure that approximately $3 million in executive perquisites were adequately evaluated and disclosed” between 2011 and 2015
/jlne.ws/2KATose

FCA backs new cost disclosure rules for fund managers
Owen Walker – FT
The UK’s financial services watchdog has backed a series of measures to standardise how costs and charges are disclosed to institutional investors.
/jlne.ws/2KErPyb

FCA challenged to do more to support professionalism in UK financial services
VAalentina Kirilova – Leaprate
A financial services Alliance with a combined global membership of 200,000 has announced that it is challenging UK’s Financial Conduct Authority (FCA) to do more to support professionalism in UK financial services.
/jlne.ws/2KBo7VU

SEC Charges Credit Suisse With FCPA Violations
SEC
The Securities and Exchange Commission today announced that Credit Suisse Group AG will pay approximately $30 million to resolve SEC charges that it obtained investment banking business in the Asia-Pacific region by corruptly influencing foreign officials in violation of Foreign Corrupt Practices Act (FCPA). Credit Suisse also agreed to pay a $47 million criminal penalty to the U.S. Department of Justice.
/jlne.ws/2KV59sV

FINRA Launches Enhanced Public Records Review; New FINRA360 Initiative Improves Data Quality for Regulators and Investors, and Lowers Firm Compliance Risks and Costs
FINRA
FINRA is launching an enhanced disclosure review process for public financial records of individuals seeking registration with a brokerage firm. Beginning on July 9, FINRA will perform a public records review within 15 calendar days after a firm applies to register an individual with FINRA. The review will enhance the quality of information about individual brokers available to investors and reduce costs for the industry, particularly small firms. It is the latest in a series of actions under FINRA360, FINRA’s comprehensive organizational improvement initiative.
/jlne.ws/2KASoEu

New prices for ASIC regulatory services
ASIC
The fees ASIC charges for specific regulatory activities have changed to reflect the actual cost to ASIC associated with the work. In most cases this has resulted in a fee increase.
/jlne.ws/2IZtys0

Podcast: CFTC Talks EP050: Benn Steil, Council on Foreign Relations
CFTC
This week on CFTC Talks, we speak with Benn Steil, senior fellow and director of international economics for the Council on Foreign Relations (CFR). We cover the risks to the global financial system, interest rates, emerging markets and his new book, “The Marshall Plan: Dawn of the Cold War”.
/jlne.ws/2KU1vMD

Investing and Trading

Investors shun Europe and emerging market funds; Latest withdrawals mark longest losing streak since 2016
Alexandra Scaggs – FT
Investors pulled cash from funds investing in European and emerging market equities for another consecutive week, the longest streak of withdrawals from both markets since 2016.
/jlne.ws/2KOadix

Mega IPOs Are Spawning Asian Billionaires at a Torrid Pace
Venus Feng – Bloomberg
Meituan Dianping, the Yelp of China, burns cash to fuel growth; Company co-founder Wang Xing worth an estimated $6.2 billion
Another day. Another IPO. Another Chinese billionaire magically appears.
/jlne.ws/2KBphAK

Replace Yield Curve as a Recession Predictor? The Fed Considers an Alternative
Peter Eavis – NY Times
Get the DealBook newsletter to make sense of major business and policy headlines ó and the power-brokers who shape them.
/jlne.ws/2KSeLEs

Summer bond markets low on liquidity could trigger volatility; Debt funds have loaded up on risky assets and could struggle to meet crisis demands
Gillian Tett – FT
In times of summer, the thoughts of young (and oldish) financiers often turn to liquidity; and not just because they are dreaming about sangria or beer on a sunny beach. Instead the big issue in summer is that the ability to buy and sell assets ó or the level of “liquidity” ó typically declines during the holiday lull. That can cause asset prices to go haywire if a nasty surprise hits. Just think of what happened in August 2007 or August 1997.
/jlne.ws/2KCKDOk

It’s Better to Be Rich Than Right; Also robot economists, M&A fees, jobs leaks and heat delays.
Matt Levine – Bloomberg
How’s David Einhorn doing? One apparently out-of-consensus view that I have is that, while most people seem to think that the essential skill of a hedge fund manager is identifying investments that will have high returns, I think that the essential skill of a hedge fund manager is continuing to run a large hedge fund that pays you a lot of money. Obviously those skills overlap, and the most straightforward way to keep your clients is to keep making money for them. But they are conceptually distinct. For instance here is a sequence that you sometimes see hedge fund managers go through:
/jlne.ws/2KD6bKz

Institutions

Exclusive: JPMorgan triggers EU talent transfer as ‘dozens’ prepare for Brexit move
Sinead Cruise – Reuters
JPMorgan (JPM.N) has asked “several dozen” employees to lead a first wave of relocations from Britain to continental Europe by early 2019, kicking off plans to protect its business post-Brexit, a memo to staff shows.
/goo.gl/1tKcnp

JPMorgan denies report of interest in Deutsche Bank
Reuters Staff
U.S. investment bank JPMorgan (JPM.N) denied a report on Friday in Germany’s WirtschaftsWoche business weekly that it was interested in acquiring a stake in Deutsche Bank (DBKGn.DE).
/jlne.ws/2KBttRd

Exclusive: Credit Suisse creates new anti-sexual harassment role
Brenna Hughes Neghaiwi – Reuters
Credit Suisse has carved out a new role to lead its handling of sexual harassment claims and examine group-wide policies, as Switzerland’s second-biggest bank seeks to boost equal opportunities and create a fair treatment environment.
/jlne.ws/2KM1M7f

Regions

Iran is threatening to close the world’s most important transit lane for crude oil
Tom DiChristopher – CNBC
Iranian officials are threatening to shut down the Strait of Hormuz, the world’s most important sea lane for crude oil shipments. The strait handles about two-thirds of the world’s seaborne cargoes of crude oil and other petroleum liquids. The Iranian threats are in response to President Donald Trump’s attempts to swiftly wipe out much of Iran’s crude oil exports through sanctions.
/goo.gl/fjTmXD

Doubts Grow Aramco IPO Will Ever Happen
Summer Said, Maureen Farrell and Sarah McFarlane – WSJ
Preparations for the public listing of Saudi Arabia’s state oil company, a centerpiece of the government’s plan to open its economy, have stalled, leaving government officials and people close to the process doubting that it will go forward at all.
The initial public offering of Saudi Arabian Oil Co., better known as Aramco, was meant to be the cornerstone of the kingdom’s plan to be less reliant on oil. It would create the largest public company in the history of capital markets, an opportunity coveted by Wall Street’s biggest names.
/jlne.ws/2KQSOT2

As inflation soars, Facebook drives trading in Argentina’s barter clubs
Nicol·s Misculin – Reuters
At an abandoned train station in Buenos Aires’ working-class suburb of San Miguel, hundreds of Argentines gather with bags of clothes, rice, flour and sugar to trade.
/goo.gl/Pt65TH

Mexico imposes retaliatory tariffs on dozens of U.S. goods
Sabrina Rodriguez – Politico
Mexico on Thursday began imposing its second stage of retaliatory tariffs on dozens of U.S. goods in response to President Donald Trump’s duties on Mexican steel and aluminum exports to the United States.
/jlne.ws/2KO6kdv

Senior Chinese financial regulator warns against shorting the renminbi
Lucy Hornby – FT
A senior Chinese financial regulator has waded in to calm forex markets, after a week in which the renminbi hit its lowest level in nearly eleven months.
/jlne.ws/2KSfNQQ

Xiaomi IPO a cautionary tale for other Chinese companies; Smartphone maker hit by bad timing and a pitch that failed to gel with investors
Louise Lucas and Henny Sender – FT
It started with great fanfare but when Xiaomi strikes the gong on the Hong Kong stock exchange on Monday, it will begin trading with a valuation of $54bn, barely half the $100bn target just six months ago.
/jlne.ws/2KBoqQy

RBI favouring currency futures market to prop up rupee from record low
Subhadip Sircar – Bloomberg via Business Standard
India’s central bank may increasingly be turning to the currency futures market to stem a slide that sent the rupee to a record low last month, according to analysts and traders.
/jlne.ws/2KC71Y0

Germany denies Merkel discussed health of Deutsche with UBS boss
Reuters Staff
The German government denied on Friday that Chancellor Angela Merkel had asked a top banking executive about his views on troubled lender Deutsche Bank.
/jlne.ws/2KLNm7c

No one gains in a trade war, China’s premier says
Reuters Staff
No one will gain from a trade war, Chinese Premier Li Keqiang said on Friday, speaking hours after the United States and China slapped tit-for-tat duties on $34 billion worth of the other’s imports.
/jlne.ws/2KSQiPt

Why Soybeans Are at the Heart of the U.S.-China Trade War
Megan Durisin and Sam Dodge – Bloomberg
China’s newly imposed tariffs against U.S. soybeans herald a major trade shift for a crop that’s soared to prominence in recent decades.
/jlne.ws/2KzMoeU

China’s Tariff Response Takes Effect After Trump Ignites Trade War
Bloomberg News
U.S. government imposes levies on $34 billion of imports; China to levy stiff duties on U.S. cars, soybeans, other items
U.S. President Donald Trump fired the biggest shot yet in the global trade war by imposing tariffs on $34 billion of Chinese imports. China retaliated.
/jlne.ws/2KFcDRd

Beijing hits back as Trump imposes tariffs on $34bn of imports; US president threatens to target all $500bn of Chinese goods as trade war escalates
Shawn Donnan and Lucy Hornby – FT
Beijing began levying retaliatory tariffs after Donald Trump’s administration on Friday imposed new tariffs on $34bn of annual imports from China, as a trade war between the world’s two largest economies kicked off in earnest.
/jlne.ws/2KO3a9z

Brexit

EU rigidity on Brexit putting lives at risk, says German minister; CSU’s Seehofer delivers boost for May with call for security co-operation
Guy Chazan in Berlin and Alex Barker – FT
Germany’s interior minister has warned Brussels it risks putting lives at risk with a dogmatic approach to Brexit that would hamper reaching an “unlimited” security deal with Britain.
/jlne.ws/2KC4qgI

Miscellaneous

Global temperature rises could be double those predicted by climate modelling; Researchers say sea levels could also rise by six metres or more even if 2 degree target of Paris accord met
Lisa Cox – The Guardian
Temperature rises as a result of global warming could eventually be double what has been projected by climate models, according to an international team of researchers from 17 countries. Sea levels could also rise by six metres or more even if the world does meet the 2 degree target of the Paris accord.
/jlne.ws/2KE1pMX

Measuring Financial Literacy Outreach Efforts and Why It Matters
Gene Natali, Greg Filbeck and Jason Pettner – CFA Institute Blog
Efforts to improve financial literacy are critical. But how do we know if these efforts work? How can we gauge their effectiveness?
/jlne.ws/2IXCG0a

What the Most Hyped Financial Thriller of the Summer Gets Right; The Banker’s Wife, a new novel from Cristina Alger, tracks a group of globe-trotting financial criminals and the women who love them.
Amanda Gordon – Bloomberg
Money is haircuts whenever you want. Money, also, is the ability to have people killed. In Cristina Alger’s new novel, The Banker’s Wife (G.P. Putnam’s Sons, $27), a world of wealth is one of both heady excess and rotting corruption.
/jlne.ws/2KQJyS9

Tech Giants Win a Battle Over Copyright Rules in Europe
Adam Satariano – NY Times
It’s a fight nearly as old as the internet. On one side are news organizations, broadcasters and music companies that want to control how their content spreads across the web, and to be paid more for it. On the other are tech companies such as Facebook and Google, which argue that they funnel viewers and advertising revenue to media outlets, and free-speech advocates, who say that regulating the internet would set a dangerous precedent and limit access to information.
/jlne.ws/2KO2jFU

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