CME, Google Ally for Cloud Market Data Access; London retains global finance throne amid Brexit chaos

Oct 15, 2019

First Read

Hits & Takes
JLN Staff

Yesterday was a tough day for Jeff Bergstrom. He took the week off to complete a real estate transaction, buying a condo near our offices at the CBOT. The first thing that happened was MarketsWiki’s server was overloaded and went down. Then Constant Contact made some changes that messed up the formatting of JLN yesterday. So he had to fix a server and then deal with customer support at Constant Contact. And all the while he was not feeling well.~JJL

Jeff’s work does not get a lot of bylines or headlines, but he is the glue that keeps John Lothian News, John Lothian Productions and all the rest working. Thank you Jeff for your good work yesterday on behalf of the staff and our readers.~JJL

It is nice to have a Columbus Day holiday without a major economic shock. It was over Columbus Day in 2005 that we learned about the Refco scandal. And then there was the Volcker statement. ~JJL

The Futures Industry Association’s monthly volume report highlights include: The worldwide volume of exchange-traded derivatives was 3 billion contracts in September, down 11.7% from the previous month but up 27.2% from September 2018. Year-to-date volume in the first nine months of the year was 25.85 billion contracts, up 18% from the first nine months of 2018. Total open interest at the end of September was 915.6 million contracts, up 4.2% from a year ago.~SR

CME Group CCO Julie Winkler has been recognized as one of the Top 50 Leading Women in Hedge Funds 2019 by The Hedge Fund Journal.~JJL

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Readers Beware: AI Has Learned to Create Fake News Stories; Researchers warn about the risks of computer-generated articles—and release tools that ferret out fakes
Asa Fitch – WSJ
Real-sounding but made-up news articles have become much easier to produce thanks to a handful of new tools powered by artificial intelligence—raising concerns about potential misuse of the technology.
/on.wsj.com/31i1w40

*****Hal, is that you?~JJL

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The Rise of the Economists; New ideas about government, trade and deregulation flourished amid the postwar recovery.
Barry Ritholtz – Bloomberg
Out of the destruction of the postwar economies, came the rise of the economists. This is the tale that journalist Binyamin Appelbaum, this week’s guest on Masters in Business, chronicles in his new book, “The Economists’ Hour: False Prophets, Free Markets, and the Fracture of Society.”
/bloom.bg/2BeSQky

***** I might need a drink with this book.~JJL

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Update – Cboe Announces Release Date for Retail Order Priority on EDGX Equities Exchange
Cboe
Effective Friday, November 1, 2019, Cboe EDGX Equities Exchange (EDGX) will provide enhanced book priority for Retail Priority Orders. Immediately on the effective date, or any trading day thereafter, a Retail Member Organization (RMO) may begin designating their orders for retail priority.
bit.ly/32fT9Yh

*****The first shall be….~JJL

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Creating a fairer market for capital in South Africa; As head of the Johannesburg Stock Exchange, Nicky Newton-King has pushed companies to look beyond shareholder return and earn the trust of the community.
Jeremy Grant – strategy + business
The subject of capitalism in South Africa is one as fraught as the country’s history. Most public companies have operated through the apartheid era, so the notion of what role business should and can play in society has always had political overtones. These are clearly not lost on Nicky Newton-King, the outgoing chief executive of the 132-year-old Johannesburg Stock Exchange (JSE), who has led Africa’s largest stock exchange by market capitalization — and 19th largest stock exchange in the world — since 2009, when she became the first female CEO in its history.
bit.ly/35C1bNa

****We missed this Jeremy Grant piece from September.~JJL

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Monday’s Top Three
Our top item of the day was the CME announcement about a director of communications post. Second was Bloomberg’s Ken Fisher Apologizes for Offensive Remarks Two Days Later once again revealing things not to say in public, or anywhere. But he still hates annuities. The third most clicked item was Adena T. Friedman in Marketswiki. She delivered a new TED Talk titled “If You Dream It, We Can Build It.”

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Lead Stories

CME, Google Ally for Cloud Market Data Access; The partnership will allow existing and potential subscribers around the world to access all CME Group data via a connection to Google Cloud.
Max Bowie – Waters Technology
CME Group is making real-time market data from all its marketplaces available via Google Cloud in a bid to expand its client base and the reach of its data by using a new connectivity model to simplify data access for end users.
bit.ly/2OSwdKH

London retains global finance throne amid Brexit chaos
Andrew MacAskill, Sinead Cruise, Huw Jones – Reuters
From the pinnacle of the City of London’s largest skyscraper, Stuart Lipton is wagering a $1.2 billion bet that the British capital remains a master of the international financial universe no matter what happens with Brexit.
/reut.rs/2MH5y0O

IMF’s Peacemaker Role Tested as Tariffs Pummel the Global Economy
Sarah McGregor – Bloomberg
The International Monetary Fund’s role as a promoter of global cooperation faces its biggest test in a decade as the 189-nation organization meets in Washington this week to wrestle with how to heal a world economy fractured by trade disputes.
/bloom.bg/2oIrzUZ

UK markets watchdog says midweek Brexit a challenge
Huw Jones – Reuters
Britain’s markets watchdog will take a “pragmatic” approach to financial firms that fail to report transactions on time if there is a no-deal Brexit on Oct. 31, it said on Friday, given the challenges of adapting to big changes midweek.
bit.ly/33vEyrQ

Foreign Markets Are Caught in Dollar’s Web; Dollar’s pre-eminent status makes escaping U.S.-based uncertainty difficult
Paul Vigna – WSJ
The capital markets and global economy are caught in a feedback loop amplified by U.S. politics and the U.S. dollar. The question is how long investors will suffer.
/on.wsj.com/31iyly3

Neil Woodford’s stricken equity income fund to be shut down; UK’s best known stockpicker fired as investment manager with immediate effect
Peter Smith and Philip Georgiadis – FT
Neil Woodford has been fired from his flagship fund and its assets are to be liquidated after administrators abandoned attempts to relaunch the frozen investment vehicle.
/on.ft.com/2MM1FYk

*****Here is the Wall Street Journal’s version of this story.~JJL

Neil Woodford says “cannot accept” closure of his flagship fund
Reuters
Fund manager Neil Woodford has criticised a fund administrator decision to close his suspended flagship fund on Tuesday, after a four-month lockdown that has seen values plunge by hundreds of millions of pounds.
/reut.rs/2qg7dCY

Death threats for cryptocurrency ‘scam’ whistleblower
Andrew Picken – BBC Scotland News
A woman has received death threats after speaking out about an international cryptocurrency “scam”. Jen McAdam, from Glasgow, has been leading a band of investors who believe they have been duped by the OneCoin digital currency. OneCoin is said to have raised as much as £4bn around the world in investment.
/bbc.in/2MOFwJc

Did Nasdaq, Inc. (NASDAQ:NDAQ) Insiders Sell Shares?
Simply Wall St.
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Nasdaq, Inc. (NASDAQ:NDAQ).
/yhoo.it/2BeloLa

Third of biggest banks fail to sign up to climate initiative; Task Force on Climate-related Financial Disclosures encourages companies to put a cost on risks from global warming
David Crow – FT
Twenty-eight of the world’s largest banks have not signed up to a climate change initiative backed by Bank of England governor Mark Carney that encourages businesses to disclose the risks global warming poses to them.
/on.ft.com/35Aede3

A $3.4 Billion Hedge Fund Is Let Down by Japan on Foreign Buying Rules
Min Jeong Lee – Bloomberg
The Japanese government’s attempt at imposing stricter monitoring rules on foreign investment in local equities is a “disappointing” step, according to California-based Dalton Investments LLC.
/bloom.bg/31dKmEN

Early Blizzard Wallops Vulnerable Crops; Farmers who planted late after rainy spring face new threat from early freeze
Jacob Bunge and Kirk Maltais – WSJ
Farmers who delayed planting in waterlogged fields this spring face a new threat as they race to harvest their crops: snow.
/on.wsj.com/2pmNdhs

A landmark German tax fraud case could ripple through the finance industry
Elliot Smith – CNBC
Two British former investment bankers are on trial in Germany for their role in orchestrating an equity trading scheme known as “cum-ex” between 2006 and 2011, which pocketed hundreds of millions of dollars from taxpayers.
/cnb.cx/32e0K9E

Challenger, Schroders take ETF fight to ASX
Aleks Vickovich – AFR
Kapstream Capital will be the first investment manager to have its products quoted and traded by Chi-X Australia, in a move that could disrupt the Australian Securities Exchange’s stranglehold on the exchange-traded funds market.
bit.ly/2MJk2NK

Exchanges, OTC and Clearing

Eurex launches MSCI dividend futures; Eurex extends partnership with MSCI to launch index futures for dividend exposure.
Hayley McDowell – The Trade
Derivatives exchange operator Eurex has expanded its partnership with index provider MSCI by launching MSCI dividend futures.
bit.ly/2MENDI2

Eurex expands its benchmark dividend derivatives with new MSCI dividend futures; Access to global markets via MSCI’s new Dividend Point Indexes
Eurex
The derivatives exchange Eurex has expanded its cooperation with index provider MSCI Inc. by launching a new dividend product suite on 14 October.
bit.ly/2IOZKB1

LSEG completes first trade on new Global Equity Segment with Huatai Securities; The LSEG cross-border initiative, known as the Global Equity Segment, aims to use London as a global trading bridge between Asia and the Americas.
Hayley McDowell – The Trade
China’s Huatai Securities was among the first brokers to execute a trade on the London Stock Exchange Group’s (LSEG) recently launched Global Equity Segment (GES).
bit.ly/2ORjQyn

London Stock Exchange launches Global Equity Segment for trading in international securities
London Stock Exchange Group
London Stock Exchange Group (LSEG) today announced the launch of the Global Equity Segment (GES) on London Stock Exchange plc, following the completion of its first trade.
bit.ly/2OQmyEG

CME Group teams up with Google Cloud to launch real-time market data; CME Group market data will be accessible to clients next month via the Google Cloud Platform.
Hayley McDowell – The Trade
US derivatives exchange operator CME Group has said it will offer real-time future and options market data on the Google Cloud Platform.
bit.ly/33HNZVp

CME Group to Offer Real-Time Market Data via Google Cloud Platform
CME Group
CME Group, one of the world’s leading and most diverse derivatives marketplaces, today announced it will become the first derivatives marketplace to offer real-time futures and options market data on Google Cloud Platform (GCP), starting Nov. 17, 2019. The collaboration will allow market participants to access CME Group’s valuable market data through the cloud from anywhere in the world with an internet connection through Google Cloud’s global network.
bit.ly/2OKMP7f

Tadashi Tago joins LSEG as Head of Information Services Division for Japan
London Stock Exchange Group
London Stock Exchange Group (LSEG) today announces that Tadashi Tago has joined the Group as Head of Information Services for Japan, effective 7th October. In this newly created position, he will lead the growth and development of LSEG’s information services businesses in Japan, including global index provider, FTSE Russell, as well as analytics and data solutions.
bit.ly/2IS7KRP

BME’S PreMarket Environment Adds Three New Partners
Mondovisione
The EpM Pre Market Environment (EpM) is a programme for high growth potential businesses which introduces them to the stock market as a financing alternative; Already 10 partners accompany EpM companies by showing them their experience and are part of their training
The Management and Monitoring Committee of BME’s Pre Market Environment has agreed to incorporate the following three new partners, which will collaborate in its development: PMS Advisory, Fellow Funders and Foro Pymes Capital.
bit.ly/2qgcTwO

Moscow Exchange’s Supervisory Board adopts new dividend policy
MOEX
Moscow Exchange’s Supervisory Board on 14 October 2019 approved a new dividend policy. Under the policy, Moscow Exchange will seek to pay the company’s entire free cash flow out in the form of dividends. The dividend payout floor has been raised from 55% to 60% of the company’s consolidated net profit under IFRS. The company will continue to pay dividends on an annual basis.

Moscow Exchange approves Strategy 2024
MOEX
On 14 October 2019, the Supervisory Board of Moscow Exchange (MOEX) approved a new Group Strategy that covers the five-year period through 2024.
bit.ly/33Dxb1L

Nadex Temporarily Refrains From Listing 5-Minute Contracts On Trade Date October 14, 2019
Mondovision
On trade date October 14, 2019, North American Derivatives Exchange, Inc. (“Nadex”, the “Exchange”) temporarily refrained from listing its Intraday 5-Minute Currency Binary contracts beginning with the 6:05pm ET expiration time. All 5-Minute Currency Binary contracts were relisted three hours later, with the first listing to expire at 9:05pm ET. This action was taken pursuant to Nadex Rules 12.27(iv)(5), 12.29(iv)(5), 12.31(iv)(5), and 12.33(iv)(5).
bit.ly/2MGoZXG

Fintech

Investors Pour Record $735 Million Into Singapore Fintech Deals
Yoolim Lee – Bloomberg
Investors poured a record $735 million into financial-technology ventures in Singapore in the first nine months of this year, according to research from Accenture Plc, which analyzed data from CB Insights, Pitchbook and Tracxn.
/bloom.bg/32o6HkE

How open banking and bank APIs are boosting fintech growth
Alicia Phaneuf – Business Insider
Fintechs are making waves in the finance services and banking industries, and open banking will be a key factor propelling them to the forefront. Instead of competing directly against fintech and third-party institutions, incumbents can leverage open banking to partner with them instead, and thereby remain competitive in the rapidly evolving industry. Open banking will transform how incumbents interact with third-party providers.
bit.ly/31mk5V7

Is Your Tech Holding You Back? Why Customer Service In Fintech Prevails
Joe Camberato – Forbes
Since 2010, investors have put more than $24 billion into fintech companies across the world — and about $11 billion of that funding was invested in 2015. This burgeoning industry, which makes traditional financing products and services accessible to wide-ranging audiences through tech-driven platforms, rapidly grew from the need to simultaneously cut costs and boost sales. But in the process of shaving their bottom lines, many fintech companies have jumped out of the frying pan and into the fire, creating new hurdles to jump.
bit.ly/32ixyym

***”Fintech should strengthen real human connections, not replace them.” There’s really no substitute for the human element.~MR

New fintech envoy joins working group at Glasgow symposium
Andrew Jenkins – The Irish Times
The north’s newly appointed fintech envoy Andrew Jenkins was among a delegation from the Fintech NI Working Group which attended the inaugural meeting of the Fintech National Network Symposium in Glasgow.
bit.ly/35zHR33

Options Announces Platinum Partner Status With Equinix
Options
Options, the leading provider of cloud-enabled managed services to the global capital markets, today announced its Platinum Partner status with global interconnection and data center company, Equinix.
/bwnews.pr/2MEkBs6

Cryptocurrencies

Facebook admits digital currency doubts as regulatory hurdles loom; Libra set to miss 2020 launch as Booking.com is latest partner to pull out
Kiran Stacey and Hannah Murphy – FT
Facebook will struggle to secure regulatory approval to meet Libra’s planned 2020 launch date, in the latest blow for the ailing social network’s digital currency project.
/on.ft.com/2OQrZmM

Where it all went wrong for Facebook’s Libra; After 7 backers pull out, the future of the digital currency hangs in the balance
Hannah Murphy and Kiran Stacey – FT
When Facebook unveiled ambitious plans in June to spearhead the creation of a global digital currency, co-founder David Marcus promised unprecedented co-operation between some of the biggest names in technology and payments.
/on.ft.com/33ywPsY

BOE’s Carney Defends Libra Concept as He Warns on Regulation
Lucy Meakin – Bloomberg
Bank of England Governor Mark Carney has defended the concept behind new crypto currencies like the Facebook Inc.-led Libra.
/bloom.bg/2MN7CnQ

CME Says Bitcoin Futures Gaining Interest From Big Investors
Brad Keoun – Coindesk
CME Group, the Chicago-based exchange operator, said its bitcoin futures contracts grew in popularity last quarter, with the number of open contracts up 61 percent from a year earlier because of growing demand from institutional investors. Open interest, or the number of outstanding positions, rose to 4,629 contracts, up from 2,873 in the third quarter of 2018, CME said Monday in a statement.
bit.ly/2VFpEwy

Grayscale Wins Approval for First Public Digital Currency Index Fund
Nathan DiCamillo – Coindesk
Grayscale Investments has received regulatory approval to list what it calls the first publicly-traded digital currency index fund. Following assent from the Financial Industry Regulatory Authority (FINRA), the Digital Large Cap Fund (DLC) will be listed on over-the-counter markets and trade under the initials GDLCF.
bit.ly/31aOgOQ

Hard to Kill: Research Finds Even ‘JokeCoins’ Have a 1.4 Year Lifespan
Marie Huillet – Cointelegraph
Blockchain education platform Longhash has analyzed data from crowd-sourced sites to assess why certain cryptocurrency projects have wound up in the industry’s graveyard. Examining 700 crowd-sourced entries spanning 8 years from the website Cointopsy, Longhash’s Oct. 12 article found that the most common cause of demise was “death by abandonment,” accounting for 63.1% of failed cryptocurrencies.
bit.ly/2ISkw34

Oxford English Dictionary Adds ‘Satoshi’ — Bitcoin’s Smallest Unit
Adrian Zmudzinski – Cointelegraph
The Oxford English Dictionary (OED) announced on Oct. 9 that it added the word “Satoshi,” Bitcoin’s (BTC) smallest unit. In the update published on the firm’s blog, OED notes that the word is the most recent addition to its dictionary, claiming the word was first used seven years ago. The announcement notes: “A satoshi is the smallest monetary unit in the Bitcoin cryptocurrency, and is named after Satoshi Nakamoto, the—probably pseudonymous—developer(s) of Bitcoin.”
bit.ly/2IOY0I8

UK Real Estate Firm Accepts Bitcoin for Sale of 150-Year-Old Church
Helen Partz – Cointelegraph
A 150-year-old English church is being sold for $1.5 million with the vendor accepting payment in Bitcoin (BTC). According to a listing on Rightmove, a major British online real estate portal and property website, a vendor put an 18th-century church converted into a seven-bedroom character property up for sale and is willing to accept Bitcoin as payment.
bit.ly/2BcoTBB

Facebook’s Currency Already Was Devalued
Laura Forman and Dan Gallagher – The Wall Street Journal
Cryptocurrency was always going to be a hard sell—especially when the seller was Facebook. Granted, the social network took great pains to avoid an ownership role. When Facebook formally announced its libra project in June, the plans included a subsidiary called Calibra that would run the venture with help from diverse partners, promising “separation between social and financial data.” That was a requisite move as Facebook has spent the past two years entangled in scandals involving the reams of data it collects on the 2.7 billion people who use one of its platforms every month.
/on.wsj.com/2VJvcG9

Controversial Crypto Coin’s Rise Fueled by China Trading Ban
Olga Kharif – Bloomberg
Cryptocurrency investors better not take their eyes off China, even after regulators there started to crack down on digital assets. In recent months, over-the-counter crypto trading in China has exploded, just as Chinese spot traders began buying nearly all of their Bitcoin with the stablecoin Tether, according to a study by researcher Chainalysis Inc. Tether was used in 99% of Bitcoin spot trades in China this year, almost completely displacing the yuan, while Bitcoin trading in markets like Japan and Korea is still mainly conducted through fiat, the researcher found.
/bloom.bg/2OOHlZa

CoinShares jointly rolls out a gold token ‘DGLD’, built on the bitcoin network
Yogita Khatri – The Block
Imagine a gold product – with characteristics of physical gold and gold exchange-traded funds (ETFs), as well as the 24/7 nature and security of the bitcoin network. That was the aim of three firms behind the DGLD token. Cryptocurrency assets manager CoinShares, wallet provider Blockchain and Swiss gold trading firm MKS have jointly launched a gold token called DGLD, which is built on the bitcoin blockchain network.
bit.ly/2Miz0eu

Politics

An Austrian bank’s brush with hot Russian money; Bank Winter’s alleged role in a $175m laundering scandal has shone a light on Moscow’s reach into Europe’s banking sector
Sam Jones – FT
Representatives of Italy’s far-right League party travelled to Moscow last October for a clandestine meeting with Russian agents. The Kremlin was ready to secretly fund the populist, anti-EU party. But when a recording of the talks was leaked, the political row that followed set in motion the slow disintegration of the League’s foothold on power, culminating with the collapse of Italy’s government in August.
/on.ft.com/33wNxZN

China Ties Agriculture Binge to Trump Reducing U.S. Tariffs
Bloomberg News
Beijing considering buying soybeans, cotton, ethanol and more; China could open market to DDGS, poultry imports, people say
China will struggle to buy $50 billion of U.S. farm goods annually unless it removes retaliatory tariffs on American products, and doing so would require reciprocal action by President Donald Trump, people familiar with the matter said.
/bloom.bg/33yOSPP

Trump Hasn’t Learned From Watergate; Trying to operate outside the executive branch never works out well for presidents. There’s a reason for that.
Jonathan Bernstein – Bloomberg
As more details emerge about President Donald Trump’s plot to pressure the Ukrainian government to investigate his political opponent, it’s becoming clear that this scandal has something very much in common with both Watergate and Iran-Contra. All three episodes involved a president attempting to bypass the regular executive-branch bureaucracy to get something done. And all three episodes resulted in a fiasco of ineptitude.
/bloom.bg/33v5FmQ

McKinley to testify Wednesday; Democrats mull whether to question Bolton
Felicia Sonmez, John Wagner and Brittany Shammas – The Washington Post
Michael McKinley, the former senior adviser to Secretary of State Mike Pompeo, is expected to testify behind closed doors on Wednesday, according to two officials working on the impeachment inquiry. The testimony of McKinley, who resigned his position last week, could shed light on Pompeo’s actions and how they have affected the State Department. Democrats are also mulling whether to question John Bolton, Trump’s former national security adviser.
/wapo.st/2OSsuNd

Humor, the most effective weapon in politics
Richard W. Rahn – The Washington Times
Last week, the Chinese restricted the National Basketball Association (NBA) because a team official praised the Hong Kong fight for liberty, and then they censored an episode of “South Park” because it spoofed the Chinese communist government. After some back and forth, the NBA announced that its official position was to support freedom of speech, and then it told players and officials that they were to say nothing when they were in China. So, the NBA position is that it is in favor of freedom of speech provided that no one speaks.
bit.ly/31d6MWF

Donald Trump has ‘dangerous mental illness’, say psychiatry experts at Yale conference; Mental health experts say President is ‘paranoid and delusional’
May Bulman – The Independent
Donald Trump has a “dangerous mental illness” and is not fit to lead the US, a group of psychiatrists has warned during a conference at Yale University.
bit.ly/2VJ7GJq

Regulation

She Fined Tech Giants Billions of Dollars. Now She Wants Sharper Tools; Margrethe Vestager is pivoting away from blockbuster fines against Silicon Valley titans toward preventing market abuses in the first place
Valentina Pop – WSJ
Margrethe Vestager made a name for herself as Europe’s top antitrust enforcer by slapping record fines on U.S. tech companies. Now she says those fines don’t work.
/on.wsj.com/2MGpAIN

Ex-Morgan Stanley Banker Convicted Over Greek Money-Laundering
Hugo Miller – Bloomberg
Banker sentenced to 15 months in prison for role in scheme; Former Greek defense minister convicted in 2013 over kickbacks
A former Morgan Stanley banker in Switzerland was convicted of money laundering related to a kick back of about 50 million Swiss francs ($50.1 million) from arms sales negotiated by ex-Greek defense minister Akis Tsohatzopoulos.
/bloom.bg/2pmCdka

National Insurance Brokers Association Convention – ASIC Update
ASIC
A speech by ASIC Commissioner Danielle Press at the National Insurance Brokers Association (NIBA) Convention, Gold Coast, 15 October 2019.
bit.ly/35EBECT

ASIC to provide relief from financial adviser compliance scheme obligations
ASIC
ASIC has today announced that it will make a legislative instrument to provide relief to Australian financial services (AFS) licensees from financial adviser compliance scheme obligations, following a Government announcement last week.
bit.ly/2OPMujK

Update on the LF Woodford Equity Income Fund
UK FCA
On 15 October 2019, Link Fund Solutions Ltd (LFS), the Authorised Corporate Director (ACD) of the LF Woodford Equity Income Fund (WEIF) announced that it will not seek to re-open the WEIF and instead, it will look to wind-up the fund as soon as practicable. LFS considers the winding-up of the WEIF to be in the best interests of all investors and will enable the return of cash to investors at the earliest opportunity. LFS expects the winding-up to begin in mid-January, subject to regulatory approvals. LFS will now request formal approval from the FCA to wind-up the fund.
bit.ly/2qg5nSA

Investing and Trading

How Mario Draghi brought determination to calm market turmoil; How investors view the tenure of the ECB president as he prepares to hand over to Christine Lagarde
Martin Arnold and Tommy Stubbington and Laurence Fletcher – FT
When Mario Draghi became the top candidate to run the European Central Bank eight years ago, Germany’s best-selling tabloid pictured him wearing a spiked Prussian helmet and declared the Italian economist to be “rather German, indeed, a proper Prussian”.
/on.ft.com/33By5vI

Sub-zero interest rates could be problematic in U.S. – Fed’s Bullard
Reuters
St. Louis Federal Reserve bank president James Bullard said on Tuesday that negative interest rates could be problematic in the United States.
/reut.rs/33v440n

More money is being pulled out of stock funds than at any point in the last 10 years
Ben Winck – Business Insider
Investors pulled roughly $60 billion from stock funds in the third quarter, marking the largest equity outflow since 2009, according to Morningstar data cited by the Wall Street Journal. The trend follows summer volatility in equity markets as global economic slowdown and trade tensions. Bonds took in more than $118 billion in the third quarter, and money markets added $225 billion in investor capital.
bit.ly/2OKRcPE

JPMorgan Posts Trading Surge, Surprise Jump in Banking Fees
Michelle Davis – Bloomberg
JPMorgan Chase & Co.’s traders and investment bankers emerged from a messy third quarter with a few surprise wins. Fixed-income trading revenue jumped 25% and investment-banking fees posted an unexpected increase, the company said Tuesday in a statement. That led the corporate and investment bank division to its best third quarter in three years. JPMorgan seized on some late-quarter volatility in fixed-income markets, pushing trading revenue higher than what Chief Executive Officer Jamie Dimon had forecast just a few weeks earlier.
/bloom.bg/2MgVXyD

Institutions

Goldman Profit Drops 26% as Market Wobbles; Swoon in tech stocks hit banks’s earnings in latest quarter
Liz Hoffman – WSJ
Goldman Sachs Group Inc.’s third-quarter profit fell 26% from a year ago, hit by a slowdown in deal-making and losses on the bank’s stakes in companies.
/on.wsj.com/33yjhO6

Hedge funds look for opportunities in beaten-up Argentine assets; Firms seek to raise new money just weeks after being hit by brutal sell-off
Ortenca Aliaj, Colby Smith and Lindsay Fortado – FT
Hedge funds hit by a fierce summer sell-off in Argentine assets are putting more money to work in the country, betting that today’s knock-down prices are bound to rise.
/on.ft.com/33ByrT4

JPMorgan posts record third quarter for investment banking fees; Biggest US bank’s unit revenue rise takes sting out of recent listings such as WeWork
Laura Noonan – FT
JPMorgan Chase has recorded its best ever third quarter for investment banking fees, helping the bank to beat its earnings forecasts for the three months and taking the sting out of the division’s recent troubled listings including WeWork and Peloton.
/on.ft.com/35GaCeH

Neil Woodford’s Flagship Fund to Be Wound Up
Lucca De Paoli and Suzy Waite – Bloomberg
BlackRock hired to supervise winding-down of the portfolio; Process concludes former star manager’s fall from grace
Neil Woodford’s flagship fund will be liquidated and the former star manager ousted, concluding a fall from grace that counts as one of the most dramatic in London’s recent financial history.
/bloom.bg/2MeQpVn

Soros-Backed Helios Trades Flat in London in Subdued Debut
Swetha Gopinath and Loni Prinsloo – Bloomberg
Shares of African mobile tower firm price at bottom of range; European IPOs have struggled to draw investor interest
Helios Towers Ltd. shares traded about flat in London after the company raised 288 million pounds ($364 million) in a long-delayed initial public offering that gives investors a foothold in Africa’s fast-growing wireless tower industry.
/bloom.bg/2IMUYUT

AXA Investment Managers chief to step down after six years; Andrea Rossi will step down as CEO of AXA IM in December and become strategic advisor to his replacement Ge´rald Harlin.
Hayley McDowell – The Trade
AXA Investment Managers (AXA IM) has confirmed that its chief executive officer, Andrea Rossi, will step down from his role in December after six years leading the asset manager.
bit.ly/33vcCEs

Citigroup Third-Quarter Profit Tops Expectations
David Benoit and Ben Eisen – WSJ
Citigroup Inc. C 0.20% on Tuesday said its third-quarter profit rose 6% and beat expectations.
/on.wsj.com/35zGS2R

Wells Fargo Reports Falling Profit; The bank’s third-quarter revenue was up slightly to $22 billion
Rachel Louise Ensign – WSJ
Wells Fargo & Co. said Tuesday that third-quarter profit fell. Quarterly profit at the San Francisco-based bank was $4.61 billion, compared with $6.01 billion a year ago. Per share, earnings were 92 cents. Analysts polled by FactSet had expected $1.24 per share.
/on.wsj.com/2MJ34in

BlackRock Profit Slips; Money-management firm’s net income falls 8% on year to $1.12 billion in third quarter
Patrick Thomas – WSJ
Investors increased the flood of cash flowing into money-management giant BlackRock Inc. BLK 0.05% in the last quarter. But the firm saw profits fall 8% from the comparable quarter a year earlier to $1.12 billion.
/on.wsj.com/2qhXrjN

Citi plans to take full ownership of Chinese securities business; US bank seeks to take advantage of new rules in China to expand its business there
George Hammond – FT
Citigroup is pushing to be the first foreign bank to take full ownership of its securities business in China, as the US lender tries to leapfrog rivals and take advantage of an easing of rules from Beijing.
/on.ft.com/2MM5VXO

BNP Paribas Asset Management Appoints Arnaud Schwebel As Global Head Of New ‘Retirement Solutions’ Department
MondoVisione
Demographic and macroeconomic changes in recent years are leading to a major reorganisation in retirement system financing, fostering the development of more relevant saving solutions.
bit.ly/2oxgOox

Regions

Chinese Inflation Surges as Pig Prices Fly High; Beijing has new impetus to buy American farm goods after consumer-price index rose 3% in September
WSJ
Surging pork prices pushed China’s consumer inflation to a near six-year high in September, complicating Beijing’s effort to stimulate growth but also giving it an incentive to buy more agricultural goods from the U.S.
/on.wsj.com/2ITfdjJ

Why the renminbi’s challenge to the dollar has faded; Trade conflicts have made it hard for China to let its currency trade more flexibly
Hudson Lockett and Eva Szalay – FT
A decade ago, China launched a high-profile challenge to the dominance of the US dollar, projecting a greater role for the renminbi in the global financial system. But the would-be challenger is struggling.
/on.ft.com/2MHjRm6

Natural gas lending faces boot from European Investment Bank; Vote to stop funding projects would extend clampdown on fossil fuel use
Leslie Hook – FT
The European Investment Bank faces a knife-edge vote on Tuesday on a proposal that would ban it from channelling billions of euros towards natural gas projects, extending a clampdown on fossil fuels by multilateral lenders.
/on.ft.com/33urqDp

Just 500 People Own 36% of All the Equity in Thailand’s Firms
Randy Thanthong-Knight – Bloomberg
About 36% of Thailand’s corporate equity is concentrated in the hands of just 500 people, highlighting wealth inequality in the country, a study released by the Bank of Thailand’s research institute shows.
/bloom.bg/2qg5LR3

Traders Brush Off Turkey Sanctions, But Warn Worse Could Come
Constantine Courcoulas – Bloomberg
The lira is poised for first its advance in three days; Rally comes amid relief U.S. sanctions didn’t target banks. Investors in Turkish markets brushed off Monday night’s U.S. sanctions, though some warned that harsher penalties could still come.
/bloom.bg/31cXbz7

A Swiss Bank Keeps Cropping Up in Venezuelan Corruption Cases; CBH “is the go-to bank for Venezuelans to hide money,” a former prosecutor says.
Charlie Devereux, Michael Smith – Bloomberg
As Venezuela’s chronic food shortages began intensifying, Naman Wakil, a former street peddler who made millions of dollars supplying meat to the socialist government’s food programs, decided to share the wealth.
/bloom.bg/2Mi3oWz

Brexit

Barnier says new Brexit withdrawal deal ‘possible’ but ‘difficult’; Brussels’ chief negotiator downbeat on latest UK proposals, diplomats say
Michael Peel and Jim Brunsden- FT
Brussels’ chief Brexit negotiator has revived hopes of a new withdrawal deal between the EU27 and the UK being struck this week but warned it has become “more and more difficult” as the clock ticks towards a crucial summit of the bloc’s leaders starting on Thursday.
/on.ft.com/2qglj7l

EU, U.K. Seek Brexit Deal by Midnight Tuesday: Brexit Update
Jonathan Stearns and Ian Wishart – Bloomberg
Accord this week is seen as difficult, but not impossible; ‘Today is a key day,’ according to Irish foreign minister
British negotiators submitted a revised set of Brexit plans to Brussels amid growing optimism that a deal could be struck this week.
/bloom.bg/33BjCQn

Brexit: Narrow path to deal at EU summit, says Barnier
BBC News
There is a “narrow path” to a Brexit deal this week, but the two sides have to agree the details by the end of Tuesday, the EU’s negotiator has said. Michel Barnier said it was “time to turn good intentions into legal text” if EU leaders were to back the terms of the UK’s exit at a summit on Thursday. As talks intensify, Boris Johnson has spoken to France’s Emmanuel Macron. The BBC understands the two men agreed there was “positive momentum” but there were “many hurdles” left to overcome.
/bbc.in/35BKYaN

EU mulls new emergency summit to ‘get Brexit deal done’
Katya Adler – BBC News
It’s extremely hard to see how a new Brexit deal can still be agreed by this Thursday. Negotiations continue – but time is tight, and, to use the words of even the most upbeat of those involved, “there’s still much work to do”. EU internal talk is focussing now on a possible “holding pattern statement” at this week’s EU leaders summit, along the lines of “we’ve made great progress in negotiations but still need more time”.
/bbc.in/2VKcYVh

Miscellaneous

Google share of search ad market high but shrinking: eMarketer
Reuters
Alphabet Inc’s (GOOGL.O) Google dominates the growing U.S. search ad market but Amazon.com Inc (AMZN.O) is growing fast, according to data from the market research company eMarketer released on Tuesday.
/reut.rs/35D8lAQ

Elite M.B.A. Programs Report Steep Drop in Applications; Harvard, Stanford, MIT see declines; international students find more options in Europe, Canada and Asia
Chip Cutter – WSJ
Applications to some of America’s most elite business schools fell at a steeper rate this year, as universities struggled to attract international students amid changes to immigration policies and political tensions between the U.S. and China.
/on.wsj.com/2oIu1uE

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