TP ICAP fires chief Phizackerley as it warns on higher costs

Jul 10, 2018

Spencer Doar

Spencer Doar

Associate Editor

First Read

EU Parliament and ECB Taking a Look At Cryptocurrencies
Thom Thompson – John Lothian News

Last week, which admittedly was a slow financial markets news week, headlines in the cryptocurrency press announced that a new EU report told officials not to ban bitcoin. Blockchain News said the report “. . . blasts economists who criticize cryptocurrencies.” There was no blasting. While the report prepared by an EU policy department did provide some sound bites, it was one of five reports about central bank monetary policy toward virtual currencies that the EU Parliament had requested.

If the briefing papers do guide the discussions, there is no reason to expect shifts in today’s slowly evolving bank regulatory policy toward cryptocurrencies. The papers share a measured approach to analyzing current developments, identify several key issues and recommend prudent, non-specific measures to address them. The crypto community should be reassured that there appears to be no push to rush new policies into legislation, at least from the policy wonks.

To try to keep their policies aligned, Mario Draghi, the current president of the European Central Bank, and the European Parliament’s Economic and Monetary Affairs Committee, referred to as “ECON,” hold quarterly “Monetary Dialogues.” The July 9 regular meeting is to focus on cryptocurrencies and other virtual currencies like bitcoin, ethereum and monero.

To read the rest of this commentary, go HERE.


Hits & Takes
JLN Staff

We have lots of news about several longtime friends of JLN who are moving on to new roles, as well as RJO’s Gerry Corcoran celebrating an anniversary.

Longtime Deutsche Börse corporate communications executive Heiner Seidel has left the company and accepted an offer as head of communications at a growth company investing in infrastructure with a focus on renewables and Asia. He starts at the yet to be named firm August 1.

Marco Bianchi, formerly of ICE, NYSE Euronext and LIFFE before that, has been named head of futures business development at FlexTrade.~JJL

Former ISE executive Boris Ilyevsky has been hired by IEX to lead market development. ~JJL

Gerry Corcoran is celebrating 31 years at RJ O’Brien, according to LinkedIn.~JJL

Illinois has more commodity trading advisors than any other state in the country—about 190, according to RCM Alternatives, and they’re clustered in Chicago, Crain’s reported.~JJL

Day one of MarketsWiki Education World of Opportunity in New York was a success. The program led off with a history of the futures markets by Ken Raisler, then Vikas Shaw of Rosenblatt offered some advice about how to survive on Wall Street. John McCrank explained why Thomson Reuters promotes mindfulness, and he even led the audience in a mindfulness exercise. Allison Gott of Citadel explained equity market making and gave some career advice. The last two were Bryan Christian of Cboe Global Markets, who explained the exchange space from a career standpoint, and then Jaclyn Bouchard of S&P Global explained what ESG investing is all about. Thank you to Thomson Reuters for hosting day one and to all our sponsors.~JJL


Nikkei Index Options & Futures

Google co-founder Sergey Brin says he’s been mining ethereum with his son
Zoë Bernard – Business Insider
Brin said that while Google has been slow to explore blockchain technology, he personally found the technology to be “mind-boggling” and “extraordinary.”
Google co-founder Sergey Brin and his son have been mining ethereum.

***** So much for bonding with one’s son over a campfire.~JJL


Worthless Just Two Years Ago, West Texas Sand Now Brings in Billions
David Wethe – Bloomberg
Standing high on top of a windswept dune in the West Texas plains, Greg Edwards stares out into a vast ocean of sand. It stretches in every direction, interrupted only by an occasional strip of asphalt or clusters of silos that rise high into the sky.
Edwards runs a frack-sand mine. And those silos mark the presence of his rivals, who suddenly seem to be popping up everywhere. As he turns 360 degrees under the blistering midday sun, he calls out their names one by one: “Badger … Atlas … High Roller … Alpine … Black Mountain … Covia.”

**** If you want to know where to trade it, PanXchange is the place.~JK


Chart of Century Gives Powell Gloomy Glimpse of Trade-War World
Rich Miller and Vince Golle – Bloomberg
A multi-colored graphic that’s made the rounds at the Federal Reserve hints at what Chairman Jerome Powell could face if President Donald Trump succeeds in throwing globalization into reverse: Higher prices for many goods and potentially faster inflation.
Plugged as possibly the chart of the century by economist and originator Mark Perry, it shows that prices of goods subject to foreign competition — think toys and television sets — have tumbled over the past two decades as trade barriers have come down around the world. Prices of so-called non-tradeables — hospital stays and college tuition, to name two — have surged.

**** Is it ok to name your own chart the “chart of the century”? ~JB


HfG Photo Prize awarded by the Deutsche Börse Photography Foundation to Jana Bissdorf
Deutsche Börse Photography Foundation
The Deutsche Börse Photography Foundation together with the Hochschule für Gestaltung (HfG) Offenbach on July 6 awarded the HfG Photo Prize 2018 to Jana Bissdorf for her work “Wege zur Glück”. Since 2010, the prize has been awarded to students of the Hochschule für Gestaltung who are involved in the training of the medium of photography. He is endowed with 2,500 EUR. The ceremony was part of the annual HfG tour in Offenbach.


Monday’s Top Three
Our top read item yesterday was the announcement R.J. O’Brien Appoints Joseph Raia Managing Director, Global Commodity Futures in New York. Second went to an oldie but a goodie FCMs Big And Small Suffer Major Losses On Latest Black Monday, which ranks as our top read story of the year so far. Third was the
Streetwise Professor’s The CFTC Intervenes to Prevent Moral Hazard in the CDS Market – But Why the CFTC?


MarketsWiki Stats
129,341,918 pages viewed; 23,177 pages; 213,930 edits
MarketsWiki Statistics


Lead Stories

TP ICAP fires chief Phizackerley as it warns on higher costs; Shares in interdealer broker plummet 32 per cent in early trading
Philip Stafford in London – FT
TP ICAP, the world’s largest interdealer broker, has fired chief executive John Phizackerley after warning it would need to lower its targets for integrating its ICAP purchase and raise spending in coming years.

TP ICAP sinks 31% as promised deal savings fail to materialise
Cat Rutter Pooley – FT
Shares in TP ICAP plummeted 31 per cent on Tuesday morning after the broker dealer parted ways with its chief executive and issued a profit warning.

IEX hires former ISE executive Ilyevsky to lead market development
Reuters Staff
U.S. stock exchange operator IEX Group said on Monday it has hired Boris Ilyevsky, a former long-time executive of the options-focused International Securities Exchange (ISE), to lead market development, including a potential expansion into options.

****SD: They have “no plans to enter” the options market. But they hired Mr. Ilyevsky.

Cboe submits application for Bitcoin ETF license under more favourable circumstances; SEC seeking input from market participants on Cboe’s application to launch Bitcoin ETF.
Jonathan Watkins – The Trade Crypto
Cboe has filed an application to launch a Bitcoin exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC) despite the regulator dampening prospects of similar products at the start of the year.

Commodity investors eye a new category: Cryptocurrencies
Lynne Marek – Crain’s Chicago Business
Chicago has long been a hotbed for investment funds targeting commodities like grains and metals, but lately they’ve cooled even as cryptocurrencies have heated up.

Commodity trading enters the age of digitisation; Search is on for data experts who are able to employ algorithms to boost margins
Emiko Terazono – FT
Commodity houses are on the hunt for data experts to help them gain an edge after seeing their margins squeezed by rivals. Currencies, equities and interest-rates investors have for years used algorithms, machine learning and artificial intelligence to turn data into successful trades. Now, commodity traders are seeking ways of exploiting their information to help them profit from price swings.

Half of ICOs Die Within Four Months After Token Sales Finalized
Olga Kharif – Bloomberg
Boston College study found that ICO returns are declining; Best strategy may be selling the tokens within six months
About 56 percent of crypto startups that raise money through token sales die within four months of their initial coin offerings.

Germany Blames the Locusts Again; The country needs to broaden its notion of stakeholder capitalism. Cevian and Elliott have a point about ThyssenKrupp.
Chris Bryant
Within hours of Heinrich Hiesinger stepping down as ThyssenKrupp AG chief executive last week amid pressure from activist investors, the talk turned to “locusts,” Germany’s catch-all term for the evils of Anglo-Saxon capitalism.

IEX CEO Says SEC Pilot Program Will Show Rebates Underpin Market Conditions
Bloomberg Markets
The Securities and Exchange Commission unanimously voted back in March on a pilot program that would examine how transaction fees and rebates that stock exchanges use to attract trades impact the market and if they present conflicts of interest between brokers and their customers. IEX Group Inc. CEO Brad Katsuyama discusses the pilot program with Bloomberg’s Erik Schatzker in New York.

Deutsche Bank to pay activist shareholder for advice; Shareholder Cerberus will aid restructuring efforts at German bank
Olaf Storbeck – FT
Deutsche Bank will pay one of its largest shareholders, the activist investor Cerberus, for advice on restructuring its operations.

Universities of Britain: cosying up to crypto is a bad look
Jemima Kelly – FT
Universities of Britain: you matter to us. We value your contribution to society and we want to take you seriously. So please, stop publishing cryptopuff masquerading as academic research or learning material.

The Nine Essential Conditions to Commit Massive Fraud
Joshua M Brown – The Reformed Broker
On October 28th, the day before Black Tuesday, the crescendo moment of the Crash of 1929, Time Magazine had a financier on its cover. At that time, virtually everyone in the international community had known his name all too well, although investors today probably wouldn’t recognize it. He was a confidant of kings and princes, dictators and captains of industry, a noted companion to the international movie star Greta Garbo and the close personal friend of President Herbert Hoover.

The Tax Dodge That Cost the German Treasury Billions; Prosecutors say dozens of banks and brokerage houses helped investors create massive returns for nearly a decade.
Karin Matussek – Bloomberg
The maneuver was brilliant, a virtually risk-free transaction that guaranteed hefty returns after only a few days. Then the taxman caught on. For the better part of a decade, German authorities say, dozens of banks and brokerages helped investors snatch billions of euros from the national treasury by exploiting an interpretation of the tax code that appeared to let multiple people claim ownership of the same shares of stock and—crucially—the right to a refund of taxes withheld from dividends. “They seemed to be creating money from nothing,” says Tobias Rudolph, a criminal defense lawyer in Nuremberg. “Common sense should have told anyone that this couldn’t be right.”

Exchanges, OTC and Clearing

Marijuana Stocks: Tilray Begins IPO After Nasdaq Application
Canadian medical marijuana producer Tilray on Monday said it had launched an initial public offering after its application to list on the Nasdaq. That would make it the latest pure-play pot company to join marijuana stocks Cronos Group (CRON) and Canopy Growth Corp. (CGC) on a major U.S. exchange.

Hong Kong fines Citi Asia unit $509,710 for ‘dark pool’ breaches
Reuters Staff
Hong Kong’s securities commission has fined a unit of Citigroup (C.N) HK$4 million ($509,710) for breaching “dark pool” regulations, the regulator said on Tuesday.

Initial margin – Preparing for the buy-side ‘big bang’
Video Q&A: David White, triResolve –
David White, head of sales at triResolve – part of the NEX Group – discusses the challenges of initial margin (IM) compliance for buy-side firms and how automation can help in the drive for more efficient collateral management processes.

Euronext Introduces Optiq, The New Technology Platform Powering Cash Markets
Euronext, the leading pan-European exchange in the Eurozone, announces that Optiq®, its new cutting-edge trading platform, is now live on cash markets, including equities, structured products, ETFs and fixed income. Optiq® is an agile and high-performing platform that gives investors access to trading across all asset classes available on Euronext’s pan-European exchanges.

Tokyo Commodity Exchange: Good Delivery Material Price Differential For July 2018 Rubber Contract
The price differential of the Good Delivery material for the July 2018 contract month in the Rubber market has be determined as follows,

Tokyo Commodity Exchange June 2018 Market Summary – TOCOM June 2018 Daily Volume Averaged 100,841 Contracts, Up 4.8% YoY
The Tokyo Commodity Exchange reported today that average daily volume for June 2018 was 100,841 contracts, up 4.8% year-over-year. Gold Standard volume rose 27.2% to 33,298 contracts, Gold Mini by 12.6% to 3,440 contracts and Gold Rolling Spot was up 15.2% to 13,900 contracts. Dubai Crude Oil decreased 4.7% to 19,995 contracts.

TMX Group Equity Financing Statistics – June 2018
Toronto Stock Exchange, TSX Venture Exchange
TMX Group today announced its financing activity on Toronto Stock Exchange and TSX Venture Exchange for June 2018.

ICE single-name clearing surge defies market trend
Louie Woodall, Alessandro Aimone –
The amount of single-name credit default swaps cleared through Ice Clear Credit as a proportion of total outstanding notional more than doubled between 2015 and 2017, from 5% to 11% – the combined result of a hike in the volume of trades shuttled through the central counterparty and a decline in the overall size of the market.

Turquoise heralds multilateral activity on periodic auction; In-depth analysis of Turquoise Lit Auctions suggests broker priority allocations on LSEG’s periodic auction could be as low as 0.06%.
Hayley McDowell – The Trade
The London Stock Exchange Group’s (LSEG) European trading venue Turquoise has found that broker priority allocations on its periodic auction service could be as low as 0.06%.

EuroCCP appointed sole CCP for Euronext Dublin; EuroCCP will act as sole CCP for Euronext Dublin following its migration to the exchange group’s new cash markets trading platform Optiq.
Hayley McDowell – The Trade
Euronext has appointed EuroCCP as the sole central clearing counterparty (CCP) for its recently-acquired exchange business in Dublin, according to a memo seen by The TRADE.

Getting started: first deals of Swiss equity derivatives on EnLight
We are happy to announce that the first deals of Swiss equity derivatives have been arranged on Eurex EnLight.

New High Precision Timestamp file service for Eurex
Deutsche Börse Group has recently introduced the new High Precision Timestamp daily file service that allows latency-sensitive market partici­pants to isolate the latency introduced by the network and optimise and backtest their investment strategies.

Nasdaq June 2018 Volumes, 2Q18 Estimated Revenue Capture and Listings Statistics
Nasdaq (Nasdaq:NDAQ) today reported monthly volumes for June 2018, as well as quarterly volumes, number of listings and estimated revenue capture for the quarter ending June 30, 2018 on its investor relations website.


FlexTrade Integrates The SmartStream Reference Data Utility for MiFID II Compliance; Initial rollout covers use of Systematic Internaliser Registry for buy-side pre-trade compliance workflow
Business Wire
FlexTrade (@FlexTrade) and The SmartStream Reference Data Utility (RDU) today announced the integration of the SmartStream RDU with the FlexTRADER EMS (execution management system). The integration offers mutual clients the ability to embed SmartStream RDU’s Systematic Internaliser (SI) Registry information directly into the send order ticket, providing much needed clarity on counterparty SI status, prior to key 2018 MiFID II milestone dates.

Automated Trading Market to 2025 – Citadel LLC, KCG Holdings, Virtu Financial, InfoReach, Tethys Technology, Lime Brokerage LLC, FlexTrade Systems
Global Automated Trading Market Report 2018 contains historic data that spans 2015 to 2017, and then continues to forecast to 2025. That makes this report so invaluable, resources, for the leaders as well as the new entrants in the Industry.

SoftBank tightens grip on Yahoo Japan via $2 billion deal with Altaba
Sam Nussey – Reuters
SoftBank Group (9984.T) is increasing its stake in Yahoo Japan (4689.T) through a $2 billion, three-way deal with U.S. firm Altaba (AABA.O) to deepen ties with the internet heavyweight ahead of an IPO of its telecoms unit.

We need a publicly funded rival to Facebook and Google; The BBC stands as a model for how we can fight abuses and improve online services
Diane Coyle – FT
Why is the policy debate about the tech titans so agonised? Governments regulate all kinds of activities, so it is surprising they have been unable to tackle the impenetrable terms and conditions, pervasive online monitoring, abuses of personal data and poisoning of the public sphere.


What’s Next for Bitcoin?
Sam Mamudi, Olga Kharif, and Matthew Leising – Bloomberg
Last year, Bitcoin led a motley pack of so-called cryptocurrencies in one of the great booms in market history, soaring over 2,000 percent to its peak. Since then, it’s led an epic bust that rivals the dot-com era stock market collapse. But there are still plenty of true believers. Here’s a guide for those feeling at sea in these turbulent digital waters.

Stacking Up Coin and Equity Offerings
An overwhelming majority of projects selling tokens are not selling cryptocurrencies, but rather cryptoassets. That is, few are exchanging raised funds in return for a coin or token whose primary function is acting as a currency for day-to-day use.

New Paper Reveals Massive Bitcoin Backing
Billy Bambrough – Forbes
Bitcoin and cryptocurrency have been handed huge support this morning from researchers at Imperial College London, who have said digital currencies are primed for mass adoption.

Google’s Co-Founder Talks Blockchain While Google Meets With Cardano
Internet-giant Google is beginning to make a tangible entrance into the world of blockchain. This week, the company’s co-founder, Sergey Brin, spoke on Google’s late arrival on the blockchain space at Richard Branson’s blockchain summit in Morocco. Meanwhile, Cardano’s Founder (and former CEO of Ethereum) Charles Hoskinsin has revealed the details of his latest meeting with Google, sparking speculation within the crypto-community.

French Crypto Wallet Ledger Is Solving Bitcoin’s Biggest Flaw For Financial Giants
Oliver Smith – Forbes
“One million dollars straight in crypto, in cold storage,” said hedge fund chief Bobby Axelrod on HBO’s Billions in May, handing a mysterious-looking USB stick to his loyal lieutenant.

Insiders say they think ethereum is a better investment than bitcoin; According to new data from New York-based law firm Foley and Lardner, a group of insiders say that among cryptocurrencies like bitcoin, Dash, and Monero, they believe ethereum to be the best bet.
Zoë Bernard – Business Insider
When it comes to cryptocurrency investments, there’s plenty of room for debate over which digital currency is the best bet.

Maybe This Trend Really Is Your Friend When It Comes to Bitcoin
Olivia Schaber – Bloomberg
Buying and Selling Pressure Indicator sends positive signals; Biggest cryptocurrency has lost half its value this year
This technical indicator may show the world’s largest cryptocurrency is bucking a selling trend and gearing up for a price increase.

Crypto-Trading Startup Bancor Says $13.5 Million Lost in Breach
Olga Kharif – Bloomberg
Bancor, an Israeli startup that facilitates trading in digital tokens, said a criminal made off with a $13.5 million cache, mostly comprised of Ether.

Blockchain Is Coming for the Charitable-Industrial Complex; Charity Navigator’s COO predicts a ‘revolution’ in poor relief. But will non-profits embrace the change?
Julie Verhage – Bloomberg
In recent years, a number of startups have tried to latch onto a social good angle. Robo advisors have added socially responsible investing options, insurance startup Lemonade will donate money not paid out in claims to charity, and Uber has a community impact initiative. And now, CryptoKitties are being auctioned off for charity.


Hedge Funds Caught in Trump’s Trade War Crossfire Feel the Pain
Nishant Kumar and Suzy Waite – Bloomberg
Volatility, political risks cause losses in merger arbitrage; Strategy faces accelerated outflows as investors shift money
In a booming year for mergers and acquisitions, hedge funds that seek to make money from corporate marriages are struggling.

Boris Johnson’s Lesson For Populists Everywhere; Promising to get the EU to change is easy, delivering that change is almost impossible.
Ferdinando Giugliano – Bloomberg
Boris Johnson and David Davis, Britain’s freshly departed Brexiteer ministers, are a cautionary tale for anti-establishment politicians across Europe.

ECB Is Said to Spar With Governors on Far-Reaching Conduct Plan
Jana Randow and Alessandro Speciale – Bloomberg
Reforms cover personal finances, conflicts of interest; Governing Council is set to discuss new rules this week
The European Central Bank has a battle on its hands over new conduct rules for Governing Council members, some of which are seen as too intrusive.

Supreme Court nominee has been a foe of emissions rules
Lawrence Hurley – Reuters
Brett Kavanaugh, nominated on Monday to be a Supreme Court justice by U.S. President Donald Trump, is a long-time skeptic of business regulations, especially on rules limiting harmful emissions, although he has called global warming an “urgent” issue.

Do not blame OPEC, oil producer group says of Trump criticism
Marcy Nicholson – Reuters
The president of OPEC defended the oil producer group on Monday against U.S. President Donald Trump’s recent demands for higher oil output, saying OPEC does not shoulder the blame.

Big banks, feeling unloved in Trump’s Washington, shake up lobbying; Megabanks tarred by the financial crisis and a series of scandals are seeking to rejuvenate their image — sometimes through jarring efforts.
Zachary Warmbrodt – Pollitico
The nation’s biggest banks, struggling to win over policymakers even in the business-friendly Trump era, are poised for a major makeover of their Washington lobbying efforts.


Former Goldman Sachs banker in 1MDB plea talks with U.S.: WSJ
Reuters Staff
A former Goldman Sachs Group Inc. (GS.N) banker is in talks with U.S. prosecutors to potentially plead guilty to criminal charges stemming from an alleged scheme to steal billions of dollars from a Malaysian state investment fund, the Wall Street Journal reported, citing people familiar with the matter.

Alleged PlexCoin fraudster forced by a Quebec Judge to hand over $3.7 million in Bitcoin from within the courtroom or face jail. [French article with translation in comments]
A case involving a businessman suspected of fraud gave rise to a situation for the least unusual Friday at the courthouse in Quebec. Judge Raymond W. Pronovost ordered Dominic Lacroix to transfer the equivalent of $ 3.724 million in bitcoins, in the middle of the courtroom, otherwise he would be sent to jail.

Money Laundering Probe Names Ex-Pakistani President Zardari
Kamran Haider and Ismail Dilawar – Bloomberg
Court statement alleges scam running into ‘billions of rupees’; Imran Khan’s party seen benefiting from recent legal events
Pakistan’s ex-president and leader of one of the country’s main political parties, Asif Ali Zardari, was named in a money-laundering investigation weeks before national elections.

Japan Financial Services Agency’s Organizational Reform
The FSA will reorganize itself on July 17, 2018 to better address its new challenges and tasks. In addition to the existing Supervision Bureau, the Strategy Development and Management Bureau and the Policy and Markets Bureau will be newly established (although the Planning and Coordination Bureau and the Inspection Bureau will be abolished).

Switzerland probes six for suspected bribery of foreign officials in 1MDB probe
The Star
Switzerland is investigating six people on suspicion of bribing foreign officials and other offences, as part of a money laundering investigation into Malaysian state fund 1MDB, the Swiss attorney general’s office said on Tuesday.

FINRA Requests That Firms Report Digital Asset Holdings
Tim Prentiss –
The Financial Industry Regulatory Authority has released a notice requesting that investment firms disclose their involvement in cryptocurrencies. On Friday, the Financial Industry Regulatory Authority (FINRA) released a regulatory notice advising that all member firms are to report all cryptocurrency dealings. FINRA is a self-regulatory US organization that oversees securities brokers and has the power to fine or ban securities law violators.

Sebi mulls compulsory delivery for metal derivatives contracts; It is unclear if there will be separate contracts for delivery-based settlement or compulsory delivery settlement in existing metals contracts
Rajesh Bhayani – Business Standard
The markets regulator is considering a proposal for delivery-based settlement of metal derivatives contracts.

Access to API Reference Data
Some firms are currently experiencing difficulties accessing the FINRA secure API reference data, which includes the security master files. FINRA is investigating the issue and will send updates as soon as possible. Contact FINRA Operations or call (866) 776-0800 if there are questions.

Investing and Trading

Where should you invest in this environment? This firm says: everywhere
Ryan Vlastelica – MarketWatch
Global markets might seem unusually risky at the moment, with stocks vulnerable to the threat of a trade war and bonds facing a rise in interest rates, but one investment firm is fairly optimistic about pretty much everything.

Morgan Stanley: The Case for Sustainable Investing
Steve Garmhausen – Barron’s
Sustainable investing is the future. So insists Audrey Choi, Morgan Stanley’s chief sustainability officer, who presented at Barron’s inaugural Impact Investing Summit last month.
Environmental-, social- and governance- factor investing strategies — or ESG — already covers trillions worth of assets in the U.S. and globally.

When it comes to investing, following the leader is a losing strategy
Mark Hulbert – MarketWatch
FOMO is a no-no.
To be sure, fear of missing out is an unhelpful emotion for all investors, not just retirees. But it is especially so for them, since they are predisposed anyway to thinking that the world is passing them by. This belief manifests in the investment arena in the suspicion that most other investors are making a killing, which in turn leads to the sometimes irresistible temptation to follow those who are seemingly making the most money.
That belief is not just wrong, its associated temptation is downright dangerous. And in this column I show just how dangerous it is.

Copper hit by sell-off after mystery Chinese investor unwinds $1bn bet; Liquidation of a large position triggers violent sell-off in Shanghai
Henry Sanderson and Neil Hume – FT
The liquidation of a $1bn bet placed by a Chinese investor has roiled the copper market, triggering a violent sell-off that has seen the metal plunge to a 12-month low.

The World Is Dealing With a Massive Sugar Glut
Marvin G Perez – Bloomberg
Demand is slowing as consumers grow wary of health impact; ‘The price is doomed to stay low for a while,’ strategist says
Sugar stockpiles are poised for a record as slowing demand growth and surging production creates the worst-performing commodity of 2018.


Goldman Leans on Dealmakers to Feed Wealth-Management Ambitions
Devon Pendleton and Sridhar Natarajan – Bloomberg
Bank seeks $5 billion in new revenue over the next three years; The firm now has a mere 2% of the ultra-high net worth market
The best time to get hired to manage a billionaire’s money is while your firm is helping to create that fortune.

Dreams of Goldman Doing Big Takeover Meet Stress Test’s Reality; By Sonali Basak , Sridhar Natarajan , and Yalman Onaran
Chatter about Goldman, Morgan Stanley began mounting this year; Yet stress test shows little ‘dry powder’ for major deals
Almost 10 years after the financial crisis, Wall Street was starting to wonder aloud: Might Goldman Sachs Group Inc. or Morgan Stanley make a big acquisition?

The CEO Who’s Leveling the Playing Field Between Credit Unions and Big Banks; Cathie Mahon, who runs the National Federation of Community Development Credit Unions, emerges as a champion for grass-roots financial institutions.
Arianne Cohen – Bloomberg
For millions of working Americans, the 6,000-plus credit unions across the nation can serve as a paycheck-to-paycheck life preserver. Credit union tellers can refer customers with low balances to in-house financial literacy counselors, and their loan desks frequently offer the best rates, and lowest fees, in the country. A third of these institutions—almost 2,200—cater to low-income customers as standalone businesses or small chains.


Foreign Funds Keep Pouring Into China Despite Yuan’s Jitters
Bloomberg News
Exchange rate is still seen advancing over the longer term; Depreciation could prove ‘buying opportunity,’ BNP says
The sharpest decline of China’s yuan since a turbulent devaluation in 2015 hasn’t fazed international bond funds, suggesting their diversification flows will be a useful stabilizing force for the nation’s policy makers.

MUFG Considers Job Cuts at Its Brokerage Business Overseas
Takahiko Hyuga – Bloomberg
May trim headcount in U.K. and U.S., securities unit CEO says; A lack of volatility has put pressure on some operations
Mitsubishi UFJ Financial Group Inc. is considering job cuts at its securities operations overseas to keep them profitable.

Xiaomi blames lacklustre debut in part on US-China trade war; Tech group’s founder cites relations as shares fall 1.2% below opening price
Yuan Yang in Beijing and Edward White in Taipei – FT
Chinese technology group Xiaomi has blamed the US-China trade war in part for its lacklustre debut after its shares fell 1.2 per cent below their opening price by the end of its first day of trading in Hong Kong.

Erdogan names son-in-law to lead Turkey’s finance ministry; Berat Albayrak role unlikely to be welcomed by investors anxious over economy
Laura Pitel in Istanbul – FT
Recep Tayyip Erdogan appointed his own son-in-law to head Turkey’s powerful new treasury and finance ministry as he unveiled a cabinet composed of a mix of loyalists, technocrats and business figures drawn from the private sector.

Big Four paid millions to advise Brussels on tax policy; European Commission contracts fuel concerns over accounting firms’ conflicts of interest
Madison Marriage in London – FT
The Big Four accounting firms secured contracts worth millions of euros from the European Commission over the past five years to advise on tax policy, fuelling concerns about conflicts of interest given their involvement in several tax avoidance scandals.

Turkey scraps minimum term for central bank chief; Decision comes as Erdogan sworn into office after election victory
Laura Pitel and Burhan Yuksekkas in Istanbul – FT
Turkey removed a legal clause requiring the central bank governor to serve a minimum five-year term as Recep Tayyip Erdogan was sworn in at the helm of a powerful new presidential system on Monday.

Liechtenstein Bank Eyes Asia After Stemming Tax-Related Outflows
Chanyaporn Chanjaroen and Kintan Andanari – Bloomberg
Seeks partnerships with a view to gaining rich Chinese clients; CEO says issue of non-compliant clients is behind it
VP Bank AG, the Liechtenstein-based private bank, is expanding its wealth management operations in Asia as it draws a line under four years of losing clients in Europe due to tax compliance issues.

How the US-China trade war and Hong Kong’s currency peg could combine to create the perfect storm; Neal Kimberley says the Hong Kong dollar’s peg to the greenback means the monetary authority might have to raise interest rates just when the city needs safe harbour from the US-China trade war
Neal Kimberley – South China Morning Post
The Hong Kong economy may be sailing into choppy waters. It stands exposed to the deterioration in China-US trade relations but also, through the currency board mechanism, to further tightening of US monetary policy. And that tightening is still coming. China-US trade tensions do not currently seem to be a material concern for the Federal Reserve.

ECB Under Fire as Critics of Bond-Buying Program Reach EU Court
Stephanie Bodoni – Bloomberg
EU judges told bank overstepped its powers in breach of Treaty; QE tool breaches ECB’s monetary policy mandate, court told
Critics of the European Central Bank’s quantitative-easing program accused the Frankfurt-based institution of overstepping its powers with “opaque and omnipotent activities” as their fight against the controversial policy reached the European Union’s highest court.


Theresa May now faces the second Battle of Brexit; The resignations of Johnson and Davis leave government fighting for an exit plan
Robert Shrimsley – FT
Boris Johnson, who resigned on Monday as UK foreign secretary, is known to enjoy a Churchillian reference, absurdly seeing himself as the great man’s heir. It remains to be seen whether his gambit is the beginning of the end for Theresa May or merely the end of the beginning. What is certain is that the second battle of Brexit has begun.

Theresa May fends off immediate leadership challenge; Conservative Eurosceptics back away from launching bid to oust UK prime minister
Laura Hughes in London – FT
UK prime minister Theresa May appears to have fended off an immediate leadership challenge, with Conservative Eurosceptics backing away from launching a bid to oust her from office.

Boris Johnson tells PM she is suffocating Brexit ‘dream’
Media captionTheresa May pays tribute to the two ministers who resigned
Boris Johnson has launched a scathing attack on Theresa May’s Brexit strategy, saying the “dream is dying, suffocated by needless self-doubt”.


Plastic Straws Aren’t the Problem; Skipping straws may be hip. But there are much better ways to fight pollution.
Adam Minter – Bloomberg
New York’s top cocktail bars are facing something of a crisis. A fashionable global protest movement has nightlife venues scrambling to replace their plastic straws with more sustainable alternatives, such as paper ones, on the theory that doing so will reduce plastic waste in the oceans. It all sound virtuous — but in reality, it’s likely to make matters worse. Straws make up a trifling percentage of the world’s plastic products, and campaigns to eliminate them will not only be ineffective, but could distract from far more useful efforts.

What to Expect From Sun Valley’s ‘Summer Camp for Billionaires’
Nabila Ahmed and Alex Barinka – Bloomberg
For a select group of business moguls, summer camp is about to begin. Starting Tuesday, Idaho’s Sun Valley Resort will be home to Allen & Co.’s annual conference, with notable invitees from Comcast Corp. Chairman Brian Roberts to Walmart Inc. CEO Doug McMillon and Berkshire Hathaway Inc.’s Warren Buffett expected to attend.

How do I explain whistleblowing on my CV?; Your questions on working life to our expert — and readers’ advice
Jonathan Black – FT
Every fortnight, our expert answers your questions on career development and working life. Jonathan Black is director of the careers service at the University of Oxford.

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