Hits & Takes
It is a big day for the CME Group. They completed their acquisition of NEX Group, they won the long overdue case brought by Eurex over the CBOT/Eurex US battle, and they announced October 2018 volume was up 38% versus October of 2017. That is what is called a very good day.~JJL
Nearly $1MM was raised at the international charity A Leg To Stand On’s Hedge Fund Rocktoberfest in New York and events in Chicago and London. You can also donate to ALTSO by simply taking a picture, any picture, on the Donate a Photo app from Johnson & Johnson for iOS or Android phones.~JJL
Paul Finnegan, formerly of too many firms to list, is now vice president OIC Education at OCC.~JJL
Any readers who are big fans of motorsports? In remarks to the ASIFMA 2018 Annual Conference, CFTC Commissioner Rostin Behnam closed with a fun comparison between Singapore’s controversial Formula 1 circuit and the challenges posed by regulating new technologies.~SD
Bloomberg reported that China cut soybean imports from the U.S. by more than 80 percent in September. Meanwhile, Brazil boosted its exports by 28 percent. We recently released a video with CME Group Managing Director and Chief Economist Blu Putnam – Near and Midterm (Election) Hurdles: An Economic Outlook – that touched on the change in agricultural commodity flows due to trade tensions.~SD
What’s Up With the Next Gen of Traders?
The old way to learn the trading ropes – via open outcry pits – is nearly nonexistent. So where is the next generation of traders going to come from? What is going to attract interest and enable these newbies to enter the markets?
In this compilation video from FIA Expo, Cboe Global Markets Chairman of the Board and CEO Ed Tilly, YCharts President and CEO Sean Brown, and CQG Senior Vice President of Client Relations Pat Kenny discuss what is going to help attract fresh talent to the trading industry.
Watch the video and read the rest »
Jacob Wohl, 20, far-right conspiracy theorist, gets a moment in spotlight with Mueller plot
Brandy Zadrozny – NBC News
Jacob Wohl, a former hedge fund manager turned pro-Trump conspiracy peddler, was a small-time but persistent figure on the far-right for the past two years. Then came the revelation of his apparent involvement as a central character in a bizarre plot to smear special counsel Robert Mueller. Now the FBI has been asked to investigate the alleged scheme, and Wohl may achieve the notoriety he’s been chasing for years.
****He already had plenty of time in the spotlight. This NBC story digs into his background, not as an internet troll, but as a managed futures guru (term used sarcastically). Nicknamed the “Wohl of Wall Street,” he started moonlighting as a fund manager at the ripe old age of 17. He used a variety of, let’s call them unconventional methods, to hype his fund, including hiring bikini models. No surprise, he quickly ran into regulatory trouble. The NFA complaint against him and his fund is a really good read. The NFA exam team tried to track him down at the addresses he provided for his fund. At one residential address, nobody answered the door, but “the exam team noticed someone at the second floor window who appeared to be taking photos or a video of the exam team.” It gets weirder from there. Oh, and he once claimed he had a Sharpe ratio north of 7. Here is a comprehensive list of links tracking his “career” over the past three years.~SD
CME Group Prevails in Antitrust Case Brought by Eurex Subsidiary
CME Group today released the following statement regarding the dismissal of a 15-year old antitrust lawsuit filed by the United States Futures Exchange, the former U.S. subsidiary of Eurex:
**CME rubs it in, with extra salt, in this release. And somewhere Rudi Ferscha is swearing after reading it.~JK
**** What is interesting about the CME comments about “offering inferior liquidity on a substandard platform” is that the Eurex US platform was two generations better than the one the CBOT had been using as part of the a/c/e alliance. CBOT had not invested in the upgrades Eurex had made. Of course, CBOT moved to LIFFE Connect after leaving a/c/e and did not migrate to Globex until several years later when the CME Group bought the CBOT.~[[JJL]]
Bitcoin’s ‘First Felon’ Faces More Legal Trouble; Charlie Shrem went to prison in 2015 after he pleaded guilty to helping people buy drugs online. Now he’s being sued by the Winklevoss twins.
Nathaniel Popper – NY Times
Over the last year, Charlie Shrem, a 28-year-old Bitcoin investor, has bought two Maseratis, two powerboats — one of them 32 feet long — and a $2 million house in Florida, along with smaller pieces of real estate.
***** Shrem has a twin problem. The Winklevoss twins.~JJL
Thursday’s Top Three
Our top three stories were led by The Trade’s scoop about Rick Beaman, in Nasdaq Futures Exchange confirms CEO departure. Second was CNN’s Movember story Getting hairy could save millions of men. Third was about ICE’s latest push into fixed income, ICE outlines RFQ expansion
134,649,154 pages viewed; 23,299 pages; 215,332 edits
CME completes £3.9 billion NEX Group acquisition; US futures exchange has completed its acquisition of NEX Group after receiving approvals from the necessary authorities.
Hayley McDowell – The Trade
CME Group has confirmed that it has completed its £3.9 billion acquisition of London-based NEX Group, forming a combined company for futures, cash and OTC markets.
***** Here is the CME Group press release announcing the completion of the NEX Group acquisition.~JJL
LME plans code of conduct for traders following Playboy party; London Metal Exchange wants to stamp out inappropriate behaviour and prevent further embarrassment
Samuel Agini – Financial News
The London Metal Exchange is to introduce a code of conduct for its members after one of the City’s oldest trading houses hosted a networking event at the Playboy Club during the LME’s annual gathering for commodities traders.
US regulator fears ‘homogeneity’ of large banks; New York Fed’s supervision chief says growing similarity could be a systemic risk
Patrick Jenkins, Financial Editor – FT
One of the top US financial regulators has signalled a concern that new systemic risks are being created by the growing homogeneity of the country’s big banks.
NEX Markets connects with Eurex to launch new clearing solution for BrokerTec Europe customers
Eurex Clearing has worked with BrokerTec Europe Limited, an anonymous dealer-to-dealer platform for the fixed income markets run by NEX Markets, to launch a new clearing solution for the European repo market.
SGX launches Single Stock Daily Leverage Certificates with 5x leverage
Widens investor choice with new DLCs based on individual Singapore and regional stocks; Trading value of DLC product suite has reached over S$3.5 billion since its launch
Come 7 November 2018, SGX will welcome the listing of an initial batch of 10 new Single Stock Daily Leverage Certificates (DLCs), offering 5x leverage on Singapore blue-chip companies and well-known regional stocks.
The Billionaire Who Bankrolled Brexit Is Now Under Criminal Investigation. Officials Suspect Foreign Money
Billy Perrigo – Time
The billionaire who donated over $10 million to a campaign urging the U.K. to vote to leave the European Union is now the subject of a criminal investigation into the “true source” of the funds, raising questions of whether foreign money could have swayed the Brexit referendum.
Goldman’s business culture criticised by US officials; Wall Street bank accused of putting deals ahead of proper compliance in 1MDB case
Ben McLannahan in London – FT
The first criminal charges filed by the US government in the sprawling 1MDB scandal represented bad news for the defendants, Malaysian financier Jho Low and two former investment bankers at Goldman Sachs.
Goldman Sachs Ensnarled in Vast 1MDB Fraud Scandal
Matthew Goldstein, Alexandra Stevenson and Emily Flitter – NY Times
Goldman Sachs is facing one of the most significant scandals in its history, a multibillion-dollar international fraud that investigators say was masterminded by a flamboyant financier with a taste for Hollywood and carried out with help from the Wall Street firm’s bankers.
TP ICAP says October volatility lifted rates trading, data units; Interdealer broker also confirms deal to buy Axiom Commodity Group
Philip Stafford – FT
TP ICAP, the UK interdealer broker, said full-year results would be in line with its lowered market guidance as October’s market volatility boosted turnover at its interest rates trading and data units.
What Will Banks Do With Cash Freed Up by Rule Changes? No One Knows; Fed proposal to ease short-term cash requirements for big banks heads into uncertain territory
Ryan Tracy and Lalita Clozel – WSJ
Regulators plan to pare back requirements that banks keep billions of dollars of cash on hand to pay short-term bills. No one knows for sure what will happen next.
Exchanges, OTC and Clearing
OCC Clears Record Monthly Volume in October
OCC, the world’s largest equity derivatives clearing organization, announced a record 567,833,544 total contracts cleared in October, the highest monthly total since OCC’s founding in 1973.
CME Group Averaged 20.6 Million Contracts Per Day in October 2018, Up 38% from October 2017
CME Group, the world’s leading and most diverse derivatives marketplace, reached average daily volume (ADV) of 20.6 million contracts per day during October 2018, up 38 percent from October 2017. Open interest at the end of October was 128 million contracts, up 6 percent from October 2017 and up 19 percent from year-end 2017.
Cboe Global Markets Reports Record Trading Activity
Cboe VIX futures set new monthly total volume record; Cboe SPX options
set new monthly total volume record
Cboe Global Markets, Inc., one of the world’s largest exchange holding companies, today reported several new trading records.
NEX allows repo clearing in Europe ahead of Brexit
London-based NEX Markets said on Thursday users of its BrokerTec Europe platform would be able to clear repo trades on Deutsche Boerse as it prepares for Britain’s exit from the European Union.
CME Group’s First Multi-Lateral Equity Options Compression Cycle Successfully Reduces Nearly 590,000 Contract Sides
CME Group, the world’s leading and most diverse derivatives marketplace, today announced four firms participated in its first-ever multi-lateral compression cycle for equity options on futures, which successfully reduced 587,000 contract sides and compressed portfolios submitted for this cycle by 22 percent.
Shanghai Futures Exchange approves first foreign warehouse
Henry Sanderson – Financial Times
The Shanghai Futures Exchange, China’s leading commodity trading venue, has approved its first foreign warehouse company in a further sign of opening to international traders.
Rotterdam-based Steinweg said it had been approved to store metal for the exchange in its newly built warehouse in the Yangshan Free Trade Port in Shanghai.
SIX Swiss Stock Exchange
In October, trading turnover on the Swiss stock exchange was up by 30.3% on the prior month to reach CHF 128.2 billion, equating to an average turnover of CHF 5.5 billion per trading day. There was also a rise in the number of transactions by 50.2% to 6,210,713, compared to September.
MIAX International Holdings Reports October 2018 Trading Activity; MIAX Exchange Group Sets New Daily and Monthly Records
Miami International Holdings Inc today reported the October 2018 trading activity for its two fully electronic options exchanges – MIAX Options and MIAX Pearl. The MIAX Exchange Group collectively executed over 47.3 million contracts in October 2018 for a combined averaged daily volume of 2,057,973 contracts, representing a total of U.S. equity options market share of 9.62%.
MGEX Achieves an Increase in Total Monthly Exchange Volume
MGEX, a Designated Contract Market (DCM) and Derivatives
Clearing Organization (DCO), reports that the total exchange volume for October came
in at 160,100 contracts, which is an increase of 33% compared to October 2017.
DGCX On Track To Break Annual Volumes Record
DGCX press release
The Dubai Gold and Commodities Exchange (DGCX) has traded 18.8 million contracts year-to-date (Y-T-D), up 35% year-on-year (Y-O-Y), and is on track to break its annual volumes record of 19.67 million contracts. Y-T-D Average Daily Volumes (ADV) are at an all time high, reaching 87,253 lots.
Focus on Italy: investors utilize robust liquidity in Eurex BTP markets
When it comes to investments in Italian government bonds, the recent volume figures clearly speak for themselves: options on Euro BTP Futures nearly tripled with an average daily volume of 20,449 contracts for the month of October compared to the 2018 average of 6,435 contracts per day. The Open Interest peaked at levels beyond 200,000 contracts. What are the facts behind the figures?
Cash markets convert 171.6 billion euros in October; Trading volume 48 percent higher than last year
Deutsche Börse’s cash markets posted sales of EUR 171.6 billion in October (previous year: EUR 115.9 billion). This corresponds to an increase of 48 percent compared to October sales in 2017 of EUR 115.9 billion.
Boerse Stuttgart generates turnover of more than EUR 6.9 billion in October; Significant increase in turnover across all asset classes
According to its order book statistics, Boerse Stuttgart generated turnover of more than EUR 6.9 billion in October 2018.
Nasdaq October 2018 Volumes
Nasdaq (Nasdaq:NDAQ) today reported monthly volumes for October 2018, on its investor relations website.
SGX-ST Disciplinary Committee Imposes Fine and Education Programme against Seow Jin Yuan, Reymond
These are the 25 most innovative FinTech startups in the world
Chisato Goya – Business Insider
KPMG, a global network of professional firms providing audit, tax and advisory services, has just published its ranking of the 100 most innovative fintech start-ups.
Several factors were taken into account to establish this ranking, including the amount raised on average over a year or the degree of innovation of their products or services.
State Regulators Sue to Stop OCC Fintech Charter
On October 25, 2018, the Conference of State Bank Supervisors (CSBS) renewed its lawsuit against the Office of the Comptroller of the Currency (OCC) seeking to prevent the OCC from issuing its long awaited special-purpose bank charters to fintech companies. The OCC recently announced that it would begin accepting applications for the special-purpose charter, a move that would allow the OCC to regulate fintech companies similar to their supervision of national banks.
Refinitiv Launches Quantitative Analytics Platform QA Direct In The Cloud With Microsoft Azure
Building on its commitment towards consumption of its financial data in the Cloud, Refinitiv, formerly the Financial and Risk business of Thomson Reuters, has launched its quantitative analytics platform QA Direct in the Cloud through Microsoft Azure.
Continued strength across major customer segments results in 2.4% increase in
Integral’s October 2018 volumes compared to September 2018; Average daily volumes (ADV) totaled $34.6 billion
Integral (www.integral.com), the technology partner trusted by leading banks, brokers, and asset managers to help them outperform their competition in the foreign exchange market, reported today average daily volumes (ADV) across Integral platforms totaled $34.6 billion in October 2018. This represents an increase of 2.4% compared to September 2018, and reflects single count trading volumes originating from BankFXTM, MarginFXTM , InvestorFXTM, and Integral MTFTM in all transaction types, including spot, forwards,
Nutmeg goes from robo to human; Wealth manager introduces financial advisers to give clients phone support
Kate Beioley – FT
Online wealth manager Nutmeg has introduced human financial advisers to its digital-only investment app, in a sign that customers want a more personal approach to investing than online services can offer.
Your Smartphone’s Location Data Is Worth Big Money to Wall Street; The phone in your pocket is dishing info on where you spend your time and, likely, money
Ryan Dezember – WSJ
When Tesla Inc. TSLA 2.06% Chief Executive Elon Musk said the car maker would work around the clock to boost production of its Model 3 sedan, the number crunchers at Thasos Group decided to watch.
Crypto Firm Tether Says It Has $1.8 Billion in Bahamian Bank
Lily Katz – Bloomberg
Tether, the company behind the controversial namesake cryptocurrency, said it has a bank account with Bahamas-based Deltec Bank & Trust Ltd.
New York regulator grants virtual license to bitcoin ATM operator
Gertrude Chavez-Dreyfuss – Reuters
New Yorkers will be able to use their mobile phones to obtain bitcoin or sell it for cash at kiosks similar to ATMs in and around New York City after the state Department of Financial Services said on Thursday it has approved the virtual currency license of Coinsource Inc
One of the hottest things in cryptocurrency right now: Stablecoins
Brian Fung – The Washington Post
There’s a new form of cryptocurrency gaining traction among fans of digital cash. Unlike bitcoin, which has seen its price swing wildly from as high as $19,000 last year to its current level hovering around $6,200, this emerging class of cryptocurrency aims to maintain a stable price — one, single U.S. dollar — at all times.
BlackRock won’t offer a cryptocurrency ETF until the industry is ‘legitimate,’ CEO Larry Fink says
Kate Rooney – CNBC
The world’s largest asset manager is not launching an exchange traded fund for cryptocurrency — at least not until the industry grows up a bit. “I wouldn’t say never, when it’s legitimate, yes,” BlackRock CEO Larry Fink said at the New York Times Dealbook Conference in Manhattan Thursday.
Cryptocurrency rules unveiled by SFC as Hong Kong aims to become major trading hub
Enoch Yiu and Georgina Lee – South China Morning Post
Hong Kong’s financial watchdog unveiled on Thursday a comprehensive set of regulations governing cryptocurrencies in a move to enhance investor protection which analysts believe could help make the city a major trading centre for virtual assets, analysts said.
How bitcoin has failed to achieve Satoshi Nakamoto’s original intent, in one chart
Aaron Hankin – MarketWatch
Bitcoin was created as an alternative payment system, one that operated anonymously and peer-to-peer, eliminating the so-called trusted third party. But a decade later and the solution proposed by Satoshi Nakamoto, the pseudonym affiliated with the person or persons who created bitcoin is anything but a solution, according to Morgan Stanley researchers.
After Becoming The Blockchain Island, Malta Announces It’s Formulating National AI Strategy
Rachel Wolfson – Forbes
Four months ago, the Maltese Parliament passed three laws establishing the regulatory framework for blockchain, cryptocurrency and distributed ledger technology (DLT). Since then, Malta has become known as the “World’s Blockchain Island,” quickly attracting interest from thousands in the crypto community to set up shop on the tiny island that is part of the European Union (EU).
HTC has made a blockchain phone that cryptocurrency fans will hate
Gian Volpicelli – WIRED UK
What’s a blockchain smartphone, and do you need one? The release of HTC Exodus 1, the Taiwanese manufacturer’s much-hyped, much-anticipated blockchain-focused handset, has perhaps answered the first of those questions; the jury is still out on the second.
Alas, the Blockchain Won’t Save Journalism After All
Jonah Engel Bromwich – The New York Times
Civil Media Company was introduced earlier this year as both a media platform and a network, to be owned and operated by journalists and concerned citizens in tandem. It was an exciting proposal. Its technology (powered by the blockchain!) would churn under dozens of independent newsrooms, its machinery creating a new, utopian model, free from the clutches of miserly businessmen or politically-compromised publishers threatening to gum up the works.
A Cryptocurrency Millionaire Wants to Build a Utopia in Nevada
Nathaniel Popper – NY Times
An enormous plot of land in the Nevada desert – bigger than nearby Reno – has been the subject of local intrigue since a company with no history, Blockchains L.L.C., bought it for $170 million in cash this year.
Fed’s Powell Says Reduced Immigration Could Slow U.S. Economy
Craig Torres – Bloomberg
Federal Reserve Chairman Jerome Powell, in written responses to a Democratic senator, said reducing immigration could slow the economy over the longer run by limiting growth in the U.S. labor force.
The comments came in a written response to Senator Catherine Cortez Masto, a Nevada Democrat who asked Powell if he agreed with pro-immigration comments by Minneapolis Fed President Neel Kashkari. Kashkari, whose parents came from India and wife is from the Philippines, called immigration “as close to a free lunch as there is” for the American economy, according to a Wall Street Journal opinion column in January.
U.S. House finance chair still hopeful for vote on capital formation bill
Michelle Price – Reuters
The chair of the House Financial Services Committee says he is still hopeful the Senate will vote on a bill that would make it easier for companies to raise capital and go public, despite a growing likelihood the legislation has stalled in the upper chamber.
What If Maxine Waters Takes the Gavel and Wall Street Loves It?
Felice Maranz – Bloomberg
There are signs banks might gain with Democrats in the House; Investor fears about Waters are now being downplayed by some
For months, bank stock watchers have warned Representative Maxine Waters might call for tougher regulations and hold harsh hearings, target penalty-box bank Wells Fargo & Co. and security-breaching Equifax Inc., and go after President Donald Trump’s lenders, if she were to take control of the House Financial Services Committee.
U.S. charges financier, former Goldman bankers for 1MDB
Brendan Pierson, A. Ananthalakshmi – Reuters
U.S. prosecutors unveiled criminal charges on Thursday against two former Goldman Sachs bankers and Malaysian financier Low Taek Jho tied to the alleged theft of billions from Malaysian sovereign wealth fund 1MDB.
Goldman Ex-Managers Charged Over 1MDB; U.S. Says Others Knew
Greg Farrell , Patricia Hurtado , and Sridhar Natarajan – Bloomberg
Ex-Banker Leissner pleads guilty to bribery, money laundering; Ng, arrested in Malaysia, charged with laundering conspiracy
A former senior Goldman Sachs banker in Asia pleaded guilty to U.S. bribery and money laundering charges and his deputy was arrested in Malaysia, as federal prosecutors in Brooklyn laid out conspiracy allegations related to Goldman Sachs’s lucrative fundraising for Malaysian wealth fund 1MDB.
US regulator fears ‘homogeneity’ of large banks
Patrick Jenkins – Financial Times
One of the top US financial regulators has signalled a concern that new systemic risks are being created by the growing homogeneity of the country’s big banks.
Kevin Stiroh, head of supervision at the New York Federal Reserve, said: “If firms expand, diversify and become more similar, each might become safer individually [but] if all firms are effectively the same they could become systemic as a herd and susceptible to the same shocks in a way that leaves the aggregate provision of financial services more volatile.”
U.S. indicts Chinese, Taiwan firms for targeting Micron trade secrets
Sarah N. Lynch – Reuters
The U.S. Justice Department unveiled an indictment against two companies based in China and Taiwan and three individuals on Thursday, saying they conspired to steal trade secrets from U.S. semiconductor company Micron relating to its research and development of memory storage device products.
Ethics and professionalism post Royal Commission—A regulator’s view
Keynote address by Cathie Armour, Commissioner, Australian Securities and Investments Commission at the CIMA Society of Australia Annual Conference (Melbourne, Australia), 30 October 2018 and John Price, Commissioner, Australian Securities and Investments Commission (Sydney, Australia), 1 November 2018
Investing and Trading
What You Need to Know About Values Investing
Nellie S. Huang – Kiplinger
Socially conscious investing has gone mainstream. Many people now factor environmental, social and corporate governance criteria—the triumvirate that define so-called sustainable investing—into their portfolio decisions. And they’re not all millennial tree huggers.
Stock market investing during earnings: What’s working, what to avoid
Akin Oyedele – Business Insider
Even the good companies are getting punished by Wall Street.
This earnings season, many companies that are beating analyst expectations for profit growth are not being rewarded with gains in their stock price.
Stocks typically rally during earnings season because traders see proof of profit growth and the potential for future earnings. Also, companies resume repurchases of their own stock, which helps boost their earnings.
Itochu books $1.3 billion CITIC charge as Japan’s trade houses warn about Sino-U.S. trade spat
Japan’s Itochu Corp on Friday booked a $1.3 billion loss on its investment in China’s CITIC Ltd, blaming trade tensions between China and the United States for the writedown on its biggest corporate transaction.
The announcement came while releasing earnings as Japanese trading houses sounded a warning about the Chinese economy and the impact of Sino-U.S. trade friction.
S&P Global Platts & Intercontinental Exchange Launch New National and Regional Natural Gas Indices
S&P Global Platts (“Platts”), the leading independent provider of information, benchmark prices and analytics for the commodities and energy markets, and Intercontinental Exchange, Inc. (ICE) a leading operator of global exchanges and clearing houses and provider of data and listings services, today jointly announced the launch of a new suite of North American natural gas indices to better capture dramatically altered supply and demand flows, regional price differentials and increased spot market volatility in the US and Canada.
JP Morgan CEO says has no interest in buying Deutsche Bank: Handelsblatt
JP Morgan has no interest in buying Deutsche Bank (DBKGn.DE) the U.S. bank’s chief executive told German daily Handelsblatt.
UBS to ramp up training, set up sexual misconduct hotline
Sinead Cruise – Reuters
Swiss bank UBS (UBSG.S) will expand training for staff investigating sexual misconduct claims, and introduce a confidential hotline to handle such allegations, an internal memo sent to staff seen by Reuters shows.
UBS Starts Hotline for Misconduct Reports After Rape Allegation
Ambereen Choudhury and Stefania Spezzati – Bloomberg
UBS Group AG will set up a confidential hotline for employees to report sexual misconduct and harassment after an allegation that a London-based trainee was raped by a more senior employee.
Danske Is ‘Truly Sorry’ But Some Investors Still Won’t Touch It
Frances Schwartzkopff, Love Liman, and Peter Levring – Bloomberg
For the first time in months, a statement published by Danske Bank A/S didn’t contain an awful surprise.
The bank’s pledge to fight financial crime and absorb potential fines for money laundering resulted in its best share performance in more than two years. Analysts cheered management’s words and the interim chief executive officer said Danske is “truly sorry” for its role in one of the worst dirty money scandals in Europe’s history. The stock jumped as much as 6.6 percent.
JPMorgan Alumni Will Be Key Voices in Deutsche Bank Turnaround
Sonali Basak – Bloomberg
Two of Deutsche Bank AG’s most influential shareholders at least know what it’s like to run a nation’s biggest lender.
This Adviser to Hedge Funds Told IRS He Was Financially Disabled
Robert Schmidt – Bloomberg
Joshua Rosner sues U.S. over rejected requests for tax refunds; Wall Street analyst says 9/11 caused post-traumatic stress
Wall Street analyst Joshua Rosner made a name for himself with prophetic warnings that Fannie Mae and Freddie Mac were ticking time bombs and that the U.S. housing market was heading for a collapse.
Vanguard chairman Bill McNabb to step down, replaced by chief exec
Owen Walker – FT
Vanguard, the world’s second biggest money manager, has announced its chairman, Bill McNabb, will step down at the end of the year.
ECB ranks Italy’s Carige as ‘fragile’ in adversity test: report
Francesca Landini – Reuters
Italy’s Banca Carige (CRGI.MI) has been categorized as “fragile” in a European Central Bank test of European lenders, with its capital ratio falling below a level set by regulators in an “adverse” scenario, Il Sole 24 Ore reported on Friday.
Carige’s problems are widely known and the ECB has already taken them into account in asking the Genoa-based bank to come up with a capital conservation plan by the end of this month, the Italian newspaper said.
Brussels Edition: Banks Under Stress
Nikos Chrysoloras and Patrick Henry – Bloomberg
Results will be published today of the EU’s latest stress test to show how resilient the bloc’s large banks would be in a severe economic downturn. While Deutsche Bank and other German lenders face intense competition at home, and their Italian counterparts are caught up in a standoff between the country’s populist government and EU authorities, we hear all banks are poised to get a more or less clean bill of health and be seen to have requisite capital even in the most adverse scenario.
Foreigners Splash Out Record $2.5 Billion on China Stocks
Foreigners didn’t wait long to set a new record for China stock buying.
Overseas investors heartened by optimism China and the U.S. can overcome their trade dispute bought 17.4 billion yuan ($2.5 billion) of China stocks via trading links with Hong Kong on Friday. That was more than double the record set a day earlier and erased all of October’s net selling, according to data compiled by Bloomberg.
Europe Stocks Head for Best Week Since 2016
Justina Lee – Bloomberg
With European shares headed for their best week since late 2016, the Red October is becoming easier to forget.
At first, much of it looked like just a standard rebound after a period of excessive selling. Then on Thursday, markets got some actual good news, with U.S. President Donald Trump tweeting about talks with China and reportedly preparing a trade agreement with the country. Even the long-suffering auto and mining sectors edged higher. Luxury and chemicals got a boost, as did technology shares that might otherwise be fretting more over Apple Inc.’s disappointing sales forecast.
Brexit deal could accelerate interest rate increases
Ben Morris – BBC
Although the Bank kept rates unchanged at 0.75% this month, its latest forecasts suggest that rates could rise to 1.5% over the next three years.
It said that Brexit uncertainty was preventing some firms from investing.
However, Bank governor Mark Carney said a smooth Brexit could see a rebound in that investment.
Carney Says No-Deal Brexit Threat to Markets Requires EU Action
Linly Lin and Stuart Biggs -Bloomberg
Bank of England Governor Mark Carney said it’s time for the European Union to put its money where its mouth is when it comes to averting market turmoil in a no-deal Brexit.
The Great Brexit Banker Exodus That Wasn’t
Gavin Finch, Hayley Warren and Tim Coulter – Bloomberg
As the time nears for Britain’s departure from the European Union, the world’s biggest banks are moving far fewer employees abroad than first planned at least for now.
Taxman faces ‘daunting workload’ as Brexit approaches, MPs say
From preparing for Brexit to tackling an increase in fraud, HMRC faces mounting pressures, according to a Public Accounts Committee (PAC) report.
Staff and resources have been diverted to deal with customs and border demands which has left HMRC facing choices about its other work, the MPs said.
The department has a “daunting task” as it prepares for Brexit, they added.
Guardian named UK’s most trusted newspaper; Survey suggests Britons under 30 seek out reliable news websites associated with traditional outlets
Jim Waterson Media editor – The Guardian
The Guardian is the most trusted newspaper brand in the UK, a study by a non-partisan media research organisation has found.