Trading Technologies expands access to Chinese derivatives markets

Jun 3, 2019

First Read

MarketsWiki Education World of Opportunity Series 2019 Open for Registration
John J. Lothian

When I was trying to figure out what I wanted to be in life, there was no such thing as the internet. Today, I am an online publisher.

My son Robby just graduated from high school and is contemplating his future. He will study information technology, a building block of everything we do today. We need people who can install, manage and fix technology in all spheres of enterprise. But where will his future lead? What speciality will he have?

Today’s markets are full of jobs that did not exist when I was starting my career. And many of the jobs I aspired to are gone, or nearly gone.

This perplexion, what to be when one grows up, is best addressed by talking to a lot of people. Or better, this perplexion is best managed by listening to a lot of people, perhaps the right people.

Today, the registration for MarketsWiki Education World of Opportunity 2019 is open.

Read the rest of this announcement HERE.

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Craig Pirrong: The Streetwise Professor Waxes Poetic on Dodd-Frank, Elizabeth Warren’s Dog House and LNG Potential
Jim Kharouf, JLN

There are few academics in the derivatives space who have the depth and breadth of knowledge of Craig Pirrong, professor of finance and energy markets director of the Global Energy Management Institute, Bauer College of Business at the University of Houston. I sat down with him last week in the student cafeteria on the sprawling Houston campus, which has more than 37,000 students – making it just the third largest school in Texas. Yes, all things are bigger in the Lone Star State.

Pirrong has opined on many topics as the Streetwise Professor, some of which have triggered criticism and others that have garnered support. He was among the critics of the Dodd-Frank Act, blasting the legislation for its lack of foresight when it comes to handling market stress. He continues to be skeptical about Dodd-Frank, coining the label “Frankendodd.” And he still worries the new infrastructure will falter in the next market crisis, especially potential problems associated with variation margin.

To read the rest of this story, go here

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Options Industry Leader Series: NYSE’s Quarterly Growth Trends, Western Ambitions and Next Gen Tech

JohnLothianNews.com

In this video from the Options Exchange Leader Series, NYSE Head of Options Ivan Brown talks about a successful 2018, NYSE’s new West Coast facilities, and the roll out of NYSE Pillar, the exchange’s new trading platform.

Watch the video »

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Hits & Takes
JLN Staff

The FIA’s IDX conference opens today in London with a Monday night cocktail party. Spencer Doar and Mike Forrester are in London for JLN.~JJL

MarketsWiki Education’s World of Opportunity series in Chicago will be held at Trading Technologies‘ offices and the Stewart School of Business at Illinois Tech. Sponsors for the series in Chicago Trading Technologies, the Stewart School of Business at Illinois Tech, Barchart.com, the OCC and the IFM. We thank all of our sponsors for their continued support for this program. More sponsors are welcome.~JJL

Firms that send 10 or more interns to each day of MarketsWiki Education World of Opportunity series in Chicago get half off the fee. We want to encourage participation of as many interns, college students and newer employees as possible.~JJL

Signup for the Chicago MarketsWiki Education World of Opportunity series is available HERE

Steven Weru wrote an op ed for Bitcoin Magazine that explained how bitcoin can potentially benefit underbanked regions in Africa. He discussed how mobile payment systems have become extremely popular in many local, unbanked or underbanked regions of sub-Saharan countries (two-thirds of the sub-Saharan population uses apps like M-Pesa and Ecocash in their daily lives, according to Weru). If these services became integrated with bitcoin, he said, bitcoin could see very wide adoption among the people of various African countries.~MR

The Bank of England has issued a working paper addressing the costs and price distortions of a fragmented central counterparty system, especially in interest rate swaps cleared at CME and LCH.~JK

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“We would love to see some issuers succeed”: The SEC, digital assets and DLT
Thom Thompson – John Lothian News

In its live-streamed FinTech Forum on May 31 the staff of the U.S. Securities and Exchange Commission demonstrated high levels of both engagement and patience with cryptocurrencies, distributed ledger technologies (DLT), and digital assets. Along with the Commission’s Chairman, Jay Clayton, and Commissioner Hester “Crypto Mom” Peirce, who also spoke, the SEC staff conveyed a sincere commitment not to quash research and development, investment and business innovation while protecting the investing public. Long story short, however – in the face of demands by the digital assets industry for lighter touch and special handling, the commissioners and staff offered no indication they think cryptocurrencies and digital assets require their own special-purpose regulations.

Read more HERE.

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iPhone Privacy Is Broken…and Apps Are to Blame
Don’t be too confident in those privacy controls. Our test of 80 apps in Apple’s App Store reveals most apps are tracking you in ways you cannot avoid
Joanna Stern – The Wall Street Journal
Uhhh, Curious George? You got a little too curious this time. There’s a kids’ iOS app called Curious World that, not surprisingly, stars the cute little pants-less monkey. Turns out, the app was collecting my son’s age, name and every book he tapped, and sending that data to Facebook Inc. The company’s response? Whoopsies!
/on.wsj.com/2WhtNu8

***** Expect no privacy and you will be fine.~JJL

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Finance is risking a youth brain drain; Sector must back sustainable development if it wants to keep the best workers
Zahra Husain – FT
In 2007, fresh out of university as an economics graduate, I joined Merrill Lynch. I was full of optimism and excitement, but soon thereafter Lehman Brothers collapsed leading to consequences that still plague the financial sector.
/jlne.ws/2EPiTRn

***** Get with the youth or lose them.~JJL

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Friday’s Top Three
Our top read story of the day on Friday was The Trade’s CME shakes up leadership of former NEX business lines. Second was Wired’s Cryptocurrency Firms Renew Push to Break Free From SEC Rules. Third was Reuters’ https://jlne.ws/2IdNol9|Cboe wins dismissal of Wall Street ‘fear gauge’ manipulation lawsuit

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MarketsWiki Stats
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CryptoMarketsWiki Website»
CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.

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Lead Stories

Trading Technologies expands access to Chinese derivatives markets; CN First’s clients based outside of China will gain access to Chinese derivatives markets via Trading Technologies’ software.
Hayley McDowell – The Trade
Trading Technologies (TT) has teamed up with a futures broker based in Hong Kong to expand access to major Chinese derivatives markets to investors based outside of China through its trading platform.
/jlne.ws/2ENXpnW

UBS-Led Group to Launch Blockchain-Based Trade-Settlement Platform; Companies have invested $63.2 million in Fnality International
Paul Vigna – WSJ
A group of financial firms led by UBS Group AG plans to start using a bitcoin-like token to settle cross-border trades, one of the biggest developments yet in the effort to make use of nascent blockchain technology.
/jlne.ws/2ENUXhu

Facebook in talks with US regulator over digital currency; Derivatives watchdog CFTC in ‘early stages of conversations’ with social media group
Laura Noonan and Hannah Murphy – FT
Facebook has begun talks with the top US derivatives regulator over its plans for a digital currency, in a sign of how the world’s largest social media platform is laying the groundwork for an ambitious push in to payments.
/jlne.ws/2EPJCNQ

CN First International Futures Limited and Trading Technologies Contract to Expand the TT Platform into China and Provide Connectivity to Chinese Derivatives Markets
BusinessWire
CN First International Futures Limited (CN First), a Hong Kong-based broker, and Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, infrastructure and data solutions, today announced they have entered into an agreement to provide traders based outside of China with access to the major Chinese derivatives markets through the TT trading platform. CN First will be the first broker to offer Chinese market access via TT software, opening the doors for the global trading community to leverage the capabilities of the TT platform to access and trade a new set of marketplaces.
/jlne.ws/2QHJMvg

London Stock Exchange buys data provider Beyond Ratings
Reuters
London Stock Exchange Group Plc said on Monday that it had acquired data provider Beyond Ratings, as the exchange operator bulked up its Information Services business.
/jlne.ws/2Mtxt7w

Utility Settlement Coin (USC) continues to evolve
Fnality
Delivering a ‘peer-to-peer’ digital settlement asset for wholesale banking London, 3rd June 2019. The Utility Settlement Coin (USC) is moving in to its next phase of maturity with the creation of Fnality International and completion of an associated ‘Series A’ equity round of £50m. The founding shareholders of Fnality comprise: Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, Credit Suisse, ING, KBC Group, Lloyds Banking Group, MUFG Bank, Nasdaq, Sumitomo Mitsui Banking Corporation, State Street Corporation, and UBS. Clearmatics continues in its role as the technology partner to Fnality.
/jlne.ws/2KjIV2Q

As INTL FCStone Expands Globally, Company Selects Eventus Systems for Key Market Surveillance; Technology Cloud Version of Validus Platform Deployed for Global Futures Activity
Eventus
Eventus Systems, Inc., a leading global trade surveillance and market risk platform provider, announced today that INTL FCStone Inc., a Fortune 500 company, has signed with the firm to provide its futures market surveillance technology. INTL FCStone recently announced several expansion initiatives and deployed the cloud implementation of the Validus platform, replacing its current outsourced system and bringing new capabilities and cost efficiencies to its business.
/jlne.ws/2IdQjtX

SEC’s ‘CryptoMom’ fights for controversial ETF innovation; Hester Peirce says the regulator could allow experimentation while still protecting investors
A US financial regulator dubbed “CryptoMom” has called on fellow supervisors to abandon their cautious approach to approving controversial new exchange traded funds and allow innovation to flourish.
/jlne.ws/2EPjaE6

Citigroup ‘Source’ Communicated With Wealthy Trader, FCA Says
Franz Wild – Bloomberg
U.K. FCA makes revelation during trial of ex-UBS official; Alshair Fiyaz had Citi source via intermediary, FCA says
The U.K. financial regulator said it received information that an employee at Citigroup Inc. with access to “price-sensitive information” communicated with a wealthy trader on the periphery of a London insider-trading trial.
/jlne.ws/2EO1Nn0

Trump’s trade war has cost investors up to US$7 trillion
Bloomberg Opinion
IF YOU thought President Donald Trump’s golf outings were expensive, wait until you see how much his trade war could cost investors and most likely already has.
/jlne.ws/2MpC8Hv

Exchanges, OTC and Clearing

London Stock Exchange Group acquires Beyond Ratings
London Stock Exchange Group
London Stock Exchange Group (LSEG) today announces that it has acquired Beyond Ratings as part of its continued investment in its Information Services business, including FTSE Russell. Beyond Ratings is a highly regarded provider of Environmental, Social and Governance (ESG) data for fixed income. The acquisition will be funded from existing facilities. The terms of the transaction have not been disclosed.
/jlne.ws/2Mrlbwz

LSEG acquires ESG fixed income data provider; Paris-based Beyond Ratings helps fixed income investors incorporate ESG criteria into investment strategies.
Hayley McDowell – The Trade
The London Stock Exchange Group (LSEG) has acquired a provider of environmental, social and governance (ESG) fixed income data to support clients engaging with sustainable investment.
/jlne.ws/2EMVujO

Euronext declares its offer for Oslo Børs VPS unconditional and launches unconditional offer on the same terms
Euronext
Euronext, the leading pan-European exchange, announces today that it has completed its confirmatory due diligence on Oslo Børs VPS and declares its offer unconditional. Consequently, the Offer will now be completed and Oslo Børs VPS shareholders who have tendered their shares in the Offer will receive an Offer Price of NOK 158 per share plus applicable interest payments.
/jlne.ws/2MpfI9t

Cash markets will realize EUR 146.0 billion in May
Deutsche Börse
Deutsche Börse’s cash markets generated sales of EUR 146.0 billion in May (previous year: EUR 145.8 billion). Of this, EUR 131.4bn was attributable to Xetra (previous year: EUR 134.1bn), bringing the average Xetra daily turnover to EUR 6.0bn. At the Frankfurt Stock Exchange, 3.2 billion euros were realized (previous year: 3.3 billion euros) and at the Tradegate Exchange 11.4 billion euros (previous year: 8.3 billion euros).
/jlne.ws/2MscsKn

Trading Overview in May 2019; Japan Exchange Group released Trading Overview in May 2019.
JPX
Cash Equity Market – In May 2019, the daily average trading value for the TSE 1st Section (domestic common stocks) was JPY 2.7589 trillion.
Derivatives Market – In May 2019, total derivatives trading volume was 31,695,292 contracts,the second highest on record as May.
/jlne.ws/2MrPjrv

BME: The Spanish Exchange Traded EUR40.13 Billion In May
MondoVisione
The Spanish Exchange traded 40.13 billion euros in Equities in May, down 18.2% from April and 22.3% * less than in the same month the previous year. The number of trades in May was 3.04 million, up 4.5% from April and down 22.7% from May last year.
/jlne.ws/2MrnNun

Fintech

CloudMargin Appoints Stuart Connolly as New CEO, Replacing Steve Husk After Successful Tenure
PRNewswire
CloudMargin, creator of the world’s first and only collateral and margin management solution native to the cloud, announced today that its Board of Directors has appointed Stuart Connolly as CEO. Connolly, most recently Group CEO of TriOptima and a former Managing Director at Goldman Sachs, replaces Steve Husk, who played an active part in the Board selection of the new chief executive. Connolly begins his new role today.
/jlne.ws/2MpSkIK

Using AI to spot potential rogue traders
FT Video
Rogue traders can cost banks billions. Now some are using artificial intelligence programmes to flag suspicious behaviour, looking at everything from how traders phrase their emails to the times they use their computers. AI is also getting better at avoiding time-consuming false alarms, meaning banks’ compliance teams don’t become bogged down with vast amounts of data.
/jlne.ws/2EPiQFo

EU regulators to decide on FIS’ $35 billion Worldpay deal by July 5
Reuters
EU antitrust regulators will rule by July 5 whether to approve Fidelity National Information Services Inc’s (FIS) $35 billion bid for Worldpay, a filing on the European Commission website showed.
/jlne.ws/2MqOrDp

Cryptocurrencies

The Challenges of Surveilling Crypto Futures and OTC Markets
ErisX Insights – Medium
Last week ErisX addressed recent research related to market manipulation in crypto markets and shared how our operational model seeks to avoid and actively combat the kinds of ‘malfeasance’ that has been reported on other centralized exchanges. This week we are working with our market surveillance partner, Eventus Systems, to provide more insight on how we are surveilling our own market center, taking into consideration the unique characteristics of this new asset class while applying proven regulatory guidelines.
bit.ly/2KhV9Ja

Could Bitcoin Hit $50,000? In Wild World of Crypto Options, Some Say Yes; Ultrabullish trades in bitcoin options follow recent rebound in the digital currency
Alexander Osipovich – WSJ
As bitcoin has rebounded from wintertime lows, some traders in an obscure corner of the cryptocurrency markets are betting it could jump as high as $50,000—more than double its record during the bitcoin mania of 2017.
/jlne.ws/2EQm2k3

Utility Settlement Coin gains £50m backing and moves forward with backing of banks;= State Street, BNY Mellon and MUFG among those backing the tokenisation project aimed at transforming clearing and settlement.
Jonathan Watkins – The Trade
The (USC) project drawn up in 2015 has secured £50 million in funding and backing from a number of major banks as it steps out of the shadows after years of quiet.
/jlne.ws/2EPL9DA

Another Satoshi is in the building and Craig Wright is… thrilled
Jemima Kelly
On May 21, Craig Wright and his team announced to the world that he had been officially endorsed as bitcoin creator Satoshi Nakamoto. This was because Wright had been “granted” a copyright registration for the bitcoin white paper and the bitcoin source code by the US Copyright Office. According to them, this was the “first government agency recognition” of Wright as Satoshi.
/jlne.ws/2EQ1GaJ

Coinbase Says Chief Operating Officer Has Left Crypto Exchange
Julie Verhage – Bloomberg
Former TD Ameritrade executive Asiff Hirji joined in 2017; Emilie Choi named as Hirji’s successor at San Francisco firm
Coinbase Inc. is losing its president and chief operating officer, former TD Ameritrade Holdings Corp. executive Asiff Hirji, the latest in a series of departures by senior executives at the San Francisco-based cryptocurrency exchange.
/jlne.ws/2EQ2mg4

Bitfinex Plans to Launch Lightning Network Support for Stablecoin Tether: Report
Adrian Zmudzinski – Cointelegraph
Major cryptocurrency exchange Bitfinex is looking to launch the USDT stablecoin operated by sister firm Tether on the Lightning Network (LN), crypto news outlet The Block reported on May 31. Per the report, Bitfinex’s chief technology officer Paolo Ardoino told the outlet that the company plans to launch USDT on LN later this year. To pursue this objective, the firm reportedly joined the RGB open source development project.
/jlne.ws/2WgEywC

FT: US Regulator CFTC in Talks With Facebook Over Rumored Crypto Plans
William Suberg – Cointelegraph
United States regulator the Commodity Futures Trading Commission (CFTC) is in talks with Facebook about its upcoming stablecoin launch, the Financial Times (FT) reported on June 2. Citing chairman J. Christopher Giancarlo, the publication revealed that Facebook is attempting to smooth out the regulatory landscape ahead of the asset, currently dubbed GlobalCoin, allegedly going live next year.
/jlne.ws/2wFq9L7

North Korean Hackers Attack Upbit Users in South Korea
Landon Manning – Bitcoin Magazine
North Korean hackers have made a phishing attempt on users of the South Korean crypto exchange Upbit. News correspondents in Korea broke this development on May 29, 2019, detailing the ploy to steal Upbit users’ information. The hackers sent out an email claiming that Upbit users needed to submit more information to become eligible for a prize drawing.
/jlne.ws/2Z4B3qc

Man Sentenced for Illegal Money Transmission Services on LocalBitcoins
Landon Manning – Bitcoin Magazine
U.S. citizen Morgan Rockcoons has been sentenced to fines and prison time for running unlicensed money exchange services on LocalBitcoins. Advertising himself on the peer-to-peer bitcoin trading network, Rockcoons made more than 1,000 transactions with hundreds of different users. The U.S. Department of Justice (DoJ) pursued him on charges of not registering his business with the Financial Crimes Enforcement Network (FinCEN).
/jlne.ws/2Z4t78a

Can Bitcoin’s Lightning Network Power Payments in a Japanese Bar?
Alyssa Hertig – Coindesk
A bar in Japan is teaming up with a locally-based lightning startup to let customers pay for sparkling wine and soft drinks using the experimental payments network. For the month of June, the Japan-based lightning startup Nayuta will be partnering with Awabar Fukouka to trial the payment system in what they’re calling a “field test.”
/jlne.ws/2Ifxy9C

Why Bitcoin’s ‘Culture War’ Matters
Michael J Casey – Coindesk
Let’s talk about bitcoin, toxicity and inclusiveness. (Boy, my Twitter feed is going to have fun over the next few days.) To start with, let me take a position: I stand with those people, especially women, who’ve lately been calling out maltreatment from members of the bitcoin community and citing rude and abusive behavior as proof of that community’s lack of inclusiveness. These are people who believe in cryptocurrency technology’s potential but feel discouraged to believe that they belong to the community’s dominant white-male subculture. If this technology is to fulfill its global potential, the community associated with it must confront this problem.
/jlne.ws/2KocEri

*** The problem Casey discusses in this article is pervasive across the Internet’s culture as well as that of bitcoin. It is a serious problem that needs to be solved.~MR

Politics

Trump’s Top Trade Adviser Opposed Mexican Tariffs
U.S. Trade Representative Robert Lighthizer argued plan could jeopardize North American trade accord
Vivian Salama and William Mauldin – WSJ.com
President Trump’s top trade adviser opposed the White House’s threat to impose escalating tariffs on Mexico, arguing that the plan could jeopardize a pending North American trade accord, people familiar with the situation said.
U.S. Trade Representative Robert Lighthizer has argued that tariffs on Mexico further cloud prospects for ratification of the U.S.-Mexico-Canada Agreement, the proposed successor to Nafta that is already facing significant hurdles in the Democrat-controlled House, these people said.
/on.wsj.com/2WC5Qgu

Trump to award Medal of Freedom to economist Arthur Laffer
Victor Reklaitis – MarketWatch
The White House announced Friday that President Donald Trump plans to award the Presidential Medal of Freedom, the country’s highest civilian honor, to economist Arthur Laffer on June 19. Laffer is the “father of supply-side economics” and “one of the most influential economists in American history,” the White House said in a statement.
/on.mktw.net/310Dk7m

Kevin Hassett, Chairman of Council of Economic Advisers, to Leave Post; The White House chief economist said his departure from the role had ‘been in the works for a good long time’
Nick Timiraos and Alex Leary – WSJ
President Trump said the chairman of the Council of Economic Advisers is leaving the job and a replacement would be named soon.
/jlne.ws/2ERJZrb

Trump Criticizes London’s Mayor as He Arrives in U.K.; President opens a four-day swing through Britain and France; his visit is likely to feature mostly festivities and commemorations, and little deal-making
Michael C. Bender – WSJ
President Trump opened a four-day swing through the U.K. and France, arriving in London on Monday morning where he courted controversy by criticizing the city’s mayor.
/jlne.ws/2EM4G7J

Goldman Sachs sees U.S. trade war with China and Mexico escalating
Reuters
Goldman Sachs economists said there was a 60% chance that the United States would slap tariffs on the final $300 billion of Chinese imports, up from their previous estimate of 40%.
/jlne.ws/2MqFj1y

Vince Cable: There is no justification for the Trump state visit; The US president will not be the last nasty piece of work to enjoy such pomp, but he is among the most dangerous
Vince Cable – FT
On Monday, Donald Trump’s state visit to the UK will begin. I will not be the only British political figure who has declined an invitation to attend the royal banquet and other bits of pageantry around the visit. I have been clear that I see no justification for conferring such honours on this particular president.
/jlne.ws/2MB1fYe

Regulation

U.K. Financial Regulator Investigates Citigroup Leak Claims; Prosecutors allege stock trader Walid Choucair received inside information from a UBS compliance officer
Bradley Hope – WSJ
The U.K.’s Financial Conduct Authority is investigating allegations that a Citigroup Inc. C -2.30% employee leaked insider information about major deals to a stock trader before they became public.
/jlne.ws/2EPlqv9

Macquarie Securities pays $300,000 infringement notice |
Australian Securities and Investments Commission
/jlne.ws/2WfRmDs

ESMA publishes a supervisory briefing on pre-trade transparency requirements in commodity derivatives
ESMA
The European Securities and Markets Authority (ESMA) has today published a Supervisory Briefing to ensure compliance with the MiFIR pre-trade transparency requirements in commodity derivatives.
/jlne.ws/2MqHYZo

CFTC Names Charles Cutshall as Chief Privacy Officer
CFTC
Charles Cutshall has been named Chief Privacy Officer of the Commodity Futures Trading Commission (CFTC). As Chief Privacy Officer, Cutshall is responsible for providing policy and programmatic oversight of the CFTC’s privacy compliance activities and for managing privacy risks associated with the collection, maintenance, and use of personally identifiable information.
/jlne.ws/2MpaE4U

FCA publishes Decision Notices concerning Cathay International Holdings Limited, its CEO and Finance Director
UK FCA
The Financial Conduct Authority (FCA) has today published Decision Notices concerning Cathay International Holdings Limited and 2 of its directors, Mr Jin-Yi Lee and Mr Eric Siu.
/jlne.ws/2Mpjz6r

Sebi mulls buffer to shield investors in liquid funds; In case of redemption pressure, these sovereign instruments could be sold quickly.
Partha Sinha, TNN
To ring-fence small investors from incurring sudden and huge losses during volatile bond market situations, markets regulator Sebi is contemplating a ‘liquidity buffer’ for all liquid funds. Such schemes will have to maintain the buffer so that they have something to fall back on in case of a sudden spike in redemptions. A working committee set up by the regulator, which included market participants, is proposing this mechanism to Sebi’s mutual fund advisory committee.
/jlne.ws/2MFsoJB

Investing and Trading

Glencore oil chief Alex Beard to retire; Long-serving executive’s departure marks a further changing of the guard
Neil Hume and David Sheppard – FT
The changing of the guard at Glencore gathered pace on Monday after the company announced the retirement of Alex Beard, the long-serving head of its oil business.
/jlne.ws/2EPyX5A

Glencore’s Executive Departures Hasten as Oil Chief Leaves
Javier Blas and Lynn Thomasson – Bloomberg
Alex Beard will retire as oil chief at the end of June; He’s held that job since 2007 and led Glencore through its IPO
The generational change at the top of Glencore Plc gained speed on Monday, after the company announced the retirement of its long standing head of oil Alex Beard.
/jlne.ws/2EPlDhH

Global recession fears grow as factory activity shrinks
Jonathan Cable, Marius Zaharia – Reuters
Factory activity contracted across Asia and Europe last month as an escalating trade war between Washington and Beijing raised fears of a global economic downturn and heaped pressure on policymakers to roll out more stimulus.
/jlne.ws/2Mq762s

Institutions

Why Jamie Dimon was wrong about the chief executive of Wells Fargo; Tim Sloan had to go, for Wells to reset regulatory relations and to move on from scandal
Robert Armstrong – FT
Jamie Dimon has some friendly advice for his shell-shocked rivals on the Wells Fargo leadership team: don’t do that thing you just did.
/jlne.ws/2EQSnXV

Morgan Stanley warns on growing risk of US market ‘downturn’; Wall Street bank’s market cycle gauge shifts from ‘expansion’ for first time since 2007
Adam Samson – FT
The US market cycle has shifted from an expansionary phase to a “downturn” for the first time since 2007, according to a new report from Morgan Stanley that underscores deepening investor concern over the world economic and political landscape.
/jlne.ws/2EQmPkT

Deutsche Bank Hits Low as JPMorgan Urges End to `Tinkering’
Steven Arons – Bloomberg
Shares of largest German bank below 6 euros for first time; Slump in stock adds to pressure on CEO to present new strategy
Deutsche Bank AG fell to a fresh record low Monday amid a broad-based slump in European bank stocks, adding to pressure on Chief Executive Officer Christian Sewing to come up with a more decisive solution for his ailing investment bank.
/jlne.ws/2EPlF9j

HSBC severs broking tie with Goldman as CFO stamps his mark; HSBC Holdings is replacing Goldman Sachs as its broker a decade after its £12.5bn rights issue, Sky News can reveal.
By Mark Kleinman, Sky News
Europe’s biggest lender is calling time on its corporate broking relationship with Goldman Sachs a decade after the Wall Street bank orchestrated one of the biggest capital-raisings undertaken by a financial institution during the financial crisis.
/jlne.ws/2MAHtM6

Regions

SoftBank Faces Challenges Raising Latest $100 Billion Fund; Japanese tech giant gets chilly reception from some of the world’s biggest money managers
Miriam Gottfried and Jenny Strasburg – WSJ
SoftBank Group Corp.’s 9984 -6.22% bid to raise a second mega fund has met a chilly reception from some of the world’s biggest money managers, signaling that a crucial initiative for the firm faces significant hurdles.
/jlne.ws/2EPkDdn

Britain aims high with launch of Impact Investing Institute; Government-backed organisation to be steered by Elizabeth Corley and Harvey McGrath
Jennifer Thompson – FT
The UK is aiming to be a global champion in impact investing with the launch of an organisation to guide one of the fastest growing fields in asset management.
/jlne.ws/2EPj67k

India Wealth Managers Buck Asia With Rise in Managed Assets
Suvashree Dey Choudhury – Bloomberg
Kotak’s wealth management arm retains its top AUM spot; India has average assets per wealth manager of $54 million
India’s wealth managers saw a rise in assets under management in 2018, bucking a slowing trend in most of Asia, according to a survey by Asian Private Banker.
/jlne.ws/2EPIzxo

China Warns Students on Growing Risks of Seeking U.S. Education
Bloomberg News
China warned its students studying in the U.S. to be vigilant as the Trump administration steps up restrictions on academic visas amid growing trade tensions between the two countries.
/jlne.ws/2EMSJPu

Bond Traders May Soon Fret More About Italian Debt Than Greece’s
John Ainger – Bloomberg
Capital Economics says yield differentials likely to invert; Greek yields touched the lowest level on record last week
For European investors, it may now be more risky to hold Italian bonds than Greek ones.
/jlne.ws/2ENTFmo

Norway Greenhouse Gas Emissions Rise Despite Renewable Push
Sveinung Sleire – Bloomberg
Norway, one of the top adopters of electric cars, pumped out more greenhouse gases in 2018 due to higher emissions from the transport sector, according to preliminary figures released by Statistics Norway.
/jlne.ws/2EPy4tM

Kremlin Says It Wants to See Arrested U.S. Investor Calvey at Forum
Henry Meyer and Scott Rose – Bloomberg
Peskov calls fund manager ‘a very trustworthy businessman’; Arrest of Baring Vostok partners shocked investment community
The Kremlin would like to see U.S. investor Michael Calvey, now under house arrest in Moscow on fraud charges, attend the St. Petersburg International Economic Forum this week, and hopes that he and his partner are ultimately released, spokesman Dmitry Peskov said Monday.
/jlne.ws/2EQNZZb

China steel groups merger set to exceed US output; Planned Baowu-Magang tie-up could overtake ArcelorMittal as world’s top producer
Tom Hancock – FT
A planned merger of China’s largest steelmaker and a domestic rival is set to create a group whose combined production exceeded that of the entire US steel industry last year, as Beijing pushes forward with efforts to consolidate its vast steel sector.
/jlne.ws/2MADsHw

Brexit

France Signals Next U.K. Leader Can’t Count on Brexit Extension
Gregory Viscusi and William Horobin – Bloomberg
The next British prime minister shouldn’t assume they’ll get another Brexit extension from the European Union in order to sort out their plans, a member of the French government indicated.
/jlne.ws/2EQlgU3

The Brexit Party Arrives in the European Parliament
Isaac Chotiner – The New Yorker
Nearly three years after the United Kingdom voted in a referendum to leave the European Union, Brexit continues to wreak havoc on British politics, and the country remains a member state of the bloc. Last week, Prime Minister Theresa May announced that she will resign, on June 7th, after failing to secure a deal with Europe around the terms of British departure. A leadership contest is already under way, with Boris Johnson—the clownish former mayor of London and former Foreign Minister—the most likely candidate.
/jlne.ws/2HS1k55

Trump to UK: No-deal Brexit is better than paying EU $50bn
Aljazeera
US President Donald Trump has waded once again into UK’s Brexit debate, urging Theresa May’s successor to leave the EU with no deal. Trump said Britain should refuse to pay its 39 billion pound ($49bn) EU divorce bill and “walk away” from Brexit talks if Brussels does not give the UK what it wants, he told the UK’s Sunday Times newspaper.
/jlne.ws/3149LBU

Manufacturing shrinks as Brexit stockpiling halts
BBC News
The UK manufacturing sector contracted in May for the first time since July 2016 as stockpiling eased ahead of Brexit, an influential survey shows. The research, by IHS Markit/CIPS, said firms found difficulty convincing clients to commit to new contracts. The manufacturing Purchasing Managers’ Index (PMI) was 49.4, down from 53.1 in April when it was lifted by stockpiling ahead of the UK’s expected EU exit.
/jlne.ws/2Wd1hF0

Phillip Lee, Bracknell Tory MP, loses no confidence vote
BBC News
A former government minister has lost a vote of no confidence in him by his local Conservative association. Phillip Lee, MP for Bracknell, said the move had been “inspired” by the single issue of Brexit. Bracknell Conservative Association called the vote after 53 members signed a petition. The ex-justice minister, who supported Remain in the 2016 EU referendum, said the government’s approach would damage businesses in his constituency. Dr Lee then became the first government minister to resign over Brexit.
/jlne.ws/2JS02JL

Trump: Prepare for no deal and send in Farage
BBC News
Nigel Farage should be involved in the government’s Brexit negotiations and the UK should be prepared to leave the EU with no deal, Donald Trump has said. In a Sunday Times interview, the US president was critical of government’s Brexit negotiations, saying it left the EU “with all the cards.” The interview comes before his state visit to the UK begins on Monday. On Saturday Mr Trump also said Boris Johnson would be an “excellent” Conservative Party leader.
/jlne.ws/2Z58mcq

Donald Trump welcomed to Buckingham Palace by Queen Elizabeth
Steve Holland, Toby Melville – Reuters
Britain rolled out the royal red carpet for Donald Trump on Monday but the pomp, pageantry and banquet with Queen Elizabeth looked set to be overshadowed by the U.S. President’s views on Brexit, the UK’s next leader and a row over China’s Huawei.
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