First Read

Did you know?
Jim Kharouf & Spencer Doar – JLN

Moscow, OneChicago, MexDer, Fear Gauge and Trump Street with an Irish twist. No, they are not connected.

One of the interesting things about updating annual volume figures on our MarketsWiki site is the snapshot of how a particular exchange has been doing over a number of years. The FIA Annual Volume Survey shows a couple of unusual suspects in the top 5 in 2016 with the National Stock Exchange of India coming in second and the Moscow Exchange at number four in terms of derivatives volumes.

At the IOMA: World Federation of Exchanges conference last week in Frankfurt, I sat down with Sergei Mayorov, director of group strategy at the Moscow Exchange to see what was driving derivatives volumes. Last year, the exchange posted 1.95 billion contracts, up 17.5 percent from 1.69 billion in 2015. He said volatility in the Russian ruble, not to mention volatility in general, helped. The exchange, despite geopolitical challenges, still derives about 45 percent of its volume from outside Russia. The challenge now, he said, is to generate more trading from within the country. Less than one percent of Russians have a stock or futures account.

  • Did you know that MexDer, the Mexican Derivatives Exchange ranked fifth among global derivatives exchanges in 2006 with 274.5 million contracts traded? Ten years later, the exchange’s derivatives volumes slumped to 12.9 million in 2016, ranking the exchange 40th, according to the FIA Annual Volume Survey.
  • OneChicago LLC is quietly but steadily growing its volume. After all the hype cooled off for single stock futures following its launch in 2001, OneChicago posted volume of 12.3 million contracts last year, up a modest 5.8 percent from a year earlier. In 2010, its annual volume was just 4.9 million contracts. Some yeoman’s work by David Downey and Tom McCabe
  • Did you know that Russia Row and Trump Street in London are connected? We mean they are actually on the same street, which intersects with King Street, which intersects with Cheapside. You can’t make this up folks. (Thanks to Marc Millington-Buck from the Moscow Exchange.)
  • From CBOE‘s 44th Anniversary blog post: “In 1998 Steve Sears first referred to the VIX as “The Fear Index” in Barron’s.” And…
  • Professor Robert E. Whaley, one of the key contributors to the creation of the VIX and 2015 Joe Sullivan Award winner, travels to Ireland at least two times a year and built a fully functioning Irish-styled pub in his basement.

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JAMIE DIMON: Companies ‘have a moral obligation’ to do more for society
Jamie Dimon – Business Insider
Private enterprise has shown an unparalleled capacity to generate prosperity and produce goods and services that meet people’s needs and improve their lives. The same attributes that drive business success — innovation, ingenuity, and the ability to efficiently marshal human and financial capital — also offer tremendous promise to help solve pressing societal challenges. The private sector has not only a moral obligation but also a deeply vested interest in delivering on this potential for public good. Why? Because businesses cannot outgrow the economy of their communities.
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****** Yes we do.

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Regulators Worry Banks Are Too Big to Fail. The Markets Don’t.
Neil Unmack – NY Times
Two top bankers can’t agree on whether lenders are too big to fail. The boss of JPMorgan Chase, Jamie Dimon, reckons the problem is solved. The Fed banker Neel Kashkari disagrees, because using debt to absorb losses is flawed. Markets suggest Mr. Dimon is closer to the mark.
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****** The markets care, just less.

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Wall Street’s New Problem: When Fund Titans Invest on the Side; By putting some of their wealth in private ‘family offices,’ some billionaire managers are dividing their time, duplicating strategies and creating potential conflicts of interest
By Anupreeta Das and Juliet Chung – WSJ
In 2010, a firm called Swift River Investments LLC put money into a software company developed by private-equity giant Blackstone Group LP. Five years later, a company Blackstone co-owned acquired the software firm, at a price that gave Swift River a fat profit.
/goo.gl/L9dAk1

***** Where to invest? What you know best.

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Why some in the City of London are feeling unloved; A conference attempts to accentuate the positive aspects of leaving the EU
by: Philip Stafford – FT
For some people in the City, the debate about the UK’s departure from the EU has focused too much on the negative aspects, such as how many bank employees will be forced to relocate. Too little time, in their view, is spent accentuating the positive and setting out what a strong City has to offer to the UK economy.
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***** If you want to be loved, get a dog!

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Thursday’s Top Three
The top read story in yesterday’s newsletter was about Leo Melamed, in the Chicago Sun-Times’ Hillary Clinton friend gives Donald Trump a nod. Second was, for its third time in the top 3, John Lothian News’ The future of futures markets: Exchanges looking to fail fast. Third up was Bloomberg’s futuristic (or not?) America’s Rich Get Richer and the Poor Get Replaced by Robots

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MarketsWiki Stats
98,959,357 pages viewed; 22,466 pages; 205,502 edits
MarketsWiki Statistics

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Lead Stories

Corporate bond trading at MarketAxess reaches record high; Open Trading platform continues to gain traction globally as average daily volume grew 56% in the first quarter.
By Hayley McDowell – The Trade
Trading on the all-to-all market for corporate bonds at MarketAxess grew to record highs in the first three months this year, with a 56% growth in average daily volume year-on-year.
/goo.gl/XYjrxL

ICE says being asked to shift operations from London to continent
Reuters
The InterContinental Exchange has been asked by several European Union countries whether it would move its clearing operations to the continent, the exchange’s chief executive Jeff Sprecher said on Wednesday.
/goo.gl/5zMRhH

SEC working ‘diligently’ on plan to test lower exchange fees
By John McCrank – Reuters
The U.S. Securities and Exchange Commission is preparing a proposal for a pilot plan to test how lowering stock exchange fees would affect market quality and the behavior of market participants, a senior official at the regulator said on Wednesday.
/goo.gl/QaeQeD

Oil Shortage Feared by 2020 as Discoveries Fall to Record Low; International Energy Agency says U.S. shale won’t fill the void which could lead to petroleum shortages
By Sarah Kent – WSJ
Global oil discoveries fell to a record low in 2016, the International Energy Agency says, raising fresh concerns about the potential for a petroleum-supply shortage as soon as 2020.
/goo.gl/cLKbis

Deutsche Bank Woos Back Clients as It Recovers From Torrid Year; German lender posts profit growth, but fixed-income revenue lags rivals
By Jenny Strasburg – WSJ
Deutsche Bank AG DB 1.89% made progress winning back clients who fled over capital concerns as it recovered from a turbulent 2016, but first-quarter profit was muted by debt-trading revenue that lagged behind peers.
/goo.gl/G0mQPw

JPMorgan beats Madoff customers’ appeal
By Jonathan Stempel – Reuters
JPMorgan Chase & Co (JPM.N) is not liable to a group of former customers of Bernard Madoff who blamed the bank for being actively involved in his Ponzi scheme and ignoring red flags of fraud, a federal appeals court ruled on Wednesday.
/goo.gl/IKqHrM

Shale revolution casts shadow over longer-dated US oil futures; Rising US shale oil production is squeezing demand for three and four-year oil futures contracts
by: Gregory Meyer in New York – FT
While the US is breaking population records, states such as Illinois and West Virginia have lost people in recent years.
/goo.gl/rcUqcB

London Stock Exchange says demand ‘strong’ for its clearing business; Rebound in activity on main London market this year
by: Philip Stafford and Zosia Wasik – FT
The London Stock Exchange Group has reported growing demand from investors around the world to use its clearing house, in spite of the unit’s uncertain future following the UK’s decision to leave the EU.
/goo.gl/F2djKf

Deutsche Börse plans EUR200m share buyback after failed LSE merger
by: Philip Stafford – FT
Deutsche Börse is to reward shareholders with a EUR200m share buyback programme following the end of its planned merger with the London Stock Exchange Group.
/goo.gl/acMbPw

Nasdaq warns of potential revenue impact following Virtu-KCG tie up; Data and connectivity at Nasdaq could take a hit following merger as the exchange assesses full impact on revenues.
By Hayley McDowell – The Trade
Nasdaq has said its data and connectivity services businesses could be negatively impacted following the merger between Virtu Financial and KCG.
/goo.gl/XdfreZ

City veteran Spencer warns EU against plot to seize euro-clearing
Lucy Burton – Telegraph
Shifting euro-clearing away from Britain and into the eurozone would be a “deeply, deeply bad event” that could cripple European firms, City veteran Michael Spencer has warned.
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ICE Calls for Pause in New EU Rules During Brexit Talks
Reuters
New European Union securities rules due to be implemented next year should be postponed while Britain and the bloc work out new trading terms in financial services, InterContinental Exchange Chief Executive Jeff Sprecher said on Wednesday.
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Federal Reserve Restructuring Part of Its Large Bank Supervision Program; Changes aim to streamline subgroups to reduce overlap and clarify roles
By Katy Burne – WSJ
The Federal Reserve is restructuring a panel it set up in 2010 to improve its supervision of the largest and most complex banks, according to people familiar with the initiative, in its latest effort to implement lessons learned from the financial crisis.
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Republican bill overhauls Obama financial regulations; Democrats criticise Hensarling plan as return to predatory Wall Street practices
by: Ben McLannahan and Barney Jopson – FT
A top Republican lawmaker has presented an alternative to the Dodd-Frank Act, the landmark piece of post-financial crisis rulemaking that President Donald Trump says he is determined to tear apart.
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BlackRock to pay $1.5 million to settle SEC charges over Russian ETF
By Sarah N. Lynch – Reuters
A unit of asset manager BlackRock Inc (BLK.N) will pay $1.5 million to settle a complaint that it launched a Russian exchange-traded fund without proper regulatory approval, according to U.S. regulators.
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Concerns raised around preferential matching within dark pools; ‘Internal preferencing’ cited as biggest concern with bank-run dark pools, according to poll at TradeTech.
By Hayley McDowell – The Trade
A survey of delegates at TradeTech this week found the biggest concern surrounding bank-run dark pools is the potential for preferential matching.
/goo.gl/OjtbNP

Exclusive: ADM names new global trade desk chief as part of wider shakeup – memo
Hugh Bronstein – Reuters
Archer Daniels Midland Co has replaced the leader of its global trading desk, according to an internal memo seen by Reuters on Wednesday, as the company sheds traders around the world while grappling with huge grain supplies that have weakened margins. Gary McGuigan, most recently managing director of global trade at ADM will succeed Gary Towne as president of the global trade desk, according to the memo. The move is in keeping with a time frame set when Towne, who is retiring from the company, took the job last year, it said.
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Exchanges, OTC and Clearing

MarketAxess Reports First Quarter 2017 Record Revenues of $103.9 Million, Record Pre-Tax Income of $55.6 Million and Record Diluted EPS of $1.11
MarketAxess
MarketAxess Holdings Inc. (Nasdaq:MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced results for the quarter ended March 31, 2017.
/goo.gl/AkcCrk

LME Swaps Bazooka for Ear Trumpet to Woo Back Traders
by Jack Farchy and Mark Burton – Bloomberg
LME has lost business to rival exchanges, private OTC venues
New CEO wants to reverse the slide, starting with market talks
When the London Metal Exchange faced a crisis over its warehousing system five years ago, the head o v\f the company’s parent promised to aim a “bazooka” at the problem.
/goo.gl/Z6vurt

Restoration of Budapest’s old bourse promises a fairer exchange; Belle Époque building is reborn as prestige offices
by: Andrew Byrne in Budapest
Budapest’s Liberty Square is, metaphorically, a historical minefield. Scattered among its Belle Époque buildings are contentious memorials of the country’s role in the Holocaust, a monument to the Red Army and even a bronze Ronald Reagan.
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London Stock Exchange boss Xavier Rolet won’t count anything out when it comes to growing the business
Oliver Gill – City AM
The London Stock Exchange’s love affair with Deutsche Boerse may finally be over, but it hasn’t been scarred by the experience and is still on the lookout for a new mate.
/goo.gl/l1Ycj5

Financial year 2016: EEX Group sales exceed EUR 200 million for the first time; Earnings before tax increase by 76%
PresseBox
(Leipzig, 26.04.2017) In 2016, EEX Group successfully continued to grow its business by strengthening its core markets, increasing its geographic reach and expanding into new business fields. “As a result of our group-wide strategy, we were able to significantly increase our trading volumes in all markets and achieve new records in sales revenue and earnings before tax (EBT)”, confirms Peter Reitz, Chief Executive Officer of EEX.
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New Appointments
HKEX
Following the Government’s appointment of Stephen Yiu, and re-appointment of Anita Fung, Rafael Gil-Tienda and Margaret Leung, and shareholders’ election of Cheah Cheng Hye and Hugo Leung as Directors of Hong Kong Exchanges and Clearing Limited (HKEX), the HKEX Board today (Thursday) appointed new members to certain committees and consultative panels with immediate effect as follows. The composition of the Risk Management Committee (Statutory) and Clearing Consultative Panel remains unchanged.
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17 new UK companies join ELITE today
London Stock Exchange Group
Brings total number of UK ELITE businesses to over 100; ELITE UK CEOs & Iain Wright MP open London trading; More than 750 international companies, advisers and investors make up growing ELITE community
London Stock Exchange Group (LSEG) today announces that its successful international business support and capital raising ecosystem, ELITE, is welcoming a further 17 UK companies, bringing the total number of UK businesses in the ELITE community to over 100.
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Co-location issue could delay NSE equity offer; Nod for Rs 10,000-cr IPO after Sebi addresses issue, says Tyagi
Shrimi Choudhary & Samie Modak – Business Standard
The much-awaited initial public offering of equity (IPO) of the National Stock Exchange (NSE) could take time. The Securities and Exchange Board of India (Sebi) said on Wednesday said that approval for it might have to wait till the co-location issue was addressed. “That (IPO) will take time. NSE itself wants the other issue of co-location to (first) get sorted,” said Ajay Tyagi, chairman of Sebi, while addressing the media after the market regulator’s board meeting.
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More Chinese firms are saying goodbye to Singapore’s stock market
CNBC
More Chinese companies listed in Singapore, or S-chips, are exiting the SGX.
/goo.gl/JagjxZ

Saudi Stock Exchange Officially Transitions to T+2 Settlement Cycle
PR Newswire
Shift strengthens the Saudi equity market and provides global investors with greater asset security; Tadawul also introduces securities borrowing and lending and covered short selling
Saudi Stock Exchange (Tadawul) announced today the successful completion of its transition to a T+2 settlement cycle for all listed securities, which went into effect on Sunday, 23 April 2017. The announcement comes just one year after the Capital Markets Authority (CMA) granted Tadawul regulatory approval to amend the settlement cycle to two subsequent business days from the trade execution date.
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Fintech

Colt launches managed FPGA market data solution
Colt
Colt announced today that participants can now receive TSE’s Flex Full market data feed normalised with an FPGA solution1 as part of its market data portfolio for Capital Markets customers. The normalised market data feed is available for consumption in colocation at the exchange and wrapped in Colt’s MarketPrizm API. The fully integrated solution enables customers to benefit from the ultra-low latency and deterministic performance of FPGA technology combined with the flexibility and ease of use of Colt’s API.
/goo.gl/T8QDV5

Venture capital enthusiasm for fintech startups is shifting to Europe
Heather Somerville, Reuters
SAN FRANCISCO (Reuters) – Venture capital investments in financial services startups are showing a geographical split, with funding for so-called “fintech” companies in the United States cooling but soaring in Europe, according to a new report out Wednesday.
/goo.gl/tywGCv

Colt launches managed FPGA market data solution
by Paula Muezerie – Colt
Capital Markets firms to benefit from NovaSparks’ ultra-low latency FPGA normalisation integrated with Colt’s MarketPrizm API
/goo.gl/T8QDV5

Politics

Stop Bashing Obama Over Paid Wall Street Speeches
Mihir Sharma – Bloomberg
OK, so Barack Obama, less than 100 days out of the White House, has agreed – according to Fox Business, quoting sources within Cantor Fitzgerald LP – to give a speech at the firm’s health-care conference later this year. For this, Obama is apparently going to be paid $400,000. The former president hasn’t confirmed this himself, and even if it turns out to be true, he may still withdraw. But talking heads everywhere are already attacking his decision. The newest Fox News superstar, Tucker Carlson, insisted it was “indefensible.”
/bloom.bg/2q6VSQV

Trump Administration Launches Probe of Aluminum Imports; Aluminum case to use same legal provision as steel inquiry launched by Commerce Department
By William Mauldin and Scott Patterson – WSJ
The Trump administration launched a wide-ranging probe of aluminum imports that could end in broad tariffs or other trade restrictions on the metal.
/goo.gl/EeMmFX

Trump Tax Cut: Pro-Business Or Pro-Scams?; Critics said measure creates an incentive to minimize compensation as a way of avoiding higher income and payroll taxes
By Laura Saunders – WSJ
President Donald Trump’s plan to cut the tax rate to 15% for so-called pass-through businesses could create many opportunities—and leave plenty of room for abuse.
/goo.gl/YZBYvK

ECB faces division on Macron effect; What to watch for in Thursday’s governing council meeting
by: Claire Jones, Frankfurt – FT
The European Central Bank risks opening up old divisions on Thursday governing council meeting, as its top officials ponder the consequences of Emmanuel Macron’s performance in France’s presidential election and the increasing health of the eurozone economy.
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Trump decides not to withdraw from Nafta; US will instead start talks to bring trade deal with Mexico and Canada ‘up to date’
by: Shawn Donnan and Demetri Sevastopulo in Washington, Jonathan Wheatley in London and Jude Webber in Mexico City – FT
Donald Trump has decided not to pull the US out of the North American Free Trade Agreement, agreeing instead with his Canadian and Mexican counterparts to “proceed swiftly” with negotiations to update the deal, according to the White House.
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Regulation

Former Jefferies Group trader sentenced to two years for fraud
Reuters
A federal judge in Connecticut on Wednesday sentenced a former Jefferies Group bond trader to two years in prison and to pay a $2 million fine after he was found guilty earlier this year of defrauding customers on bond prices.
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Settlement rules on commodity options soon; No cash settlement here, expired options devolve into futures; Sebi still working out details
Rajesh Bhayani – Business Standard
The Securities and Exchange Board of India (Sebi) on Wednesday approved trading in commodity options.
/goo.gl/amMzov

Sebi allows options trading in commodities; Also announces measures in IPOs, MFs and corporate bond markets
Shrimi Choudhary & Samie Modak – Business Standard
Capital market regulator the Securities and Exchange Board of India (Sebi) on Wednesday announced the much-awaited commodity market reform of permitting exchanges to launch options contracts.
/goo.gl/jFlKrh

TRACE For Treasuries Specification Updates
FINRA
FINRA has updated the TRACE for Treasuries FIX, CTCI and Web API technical specifications.
/goo.gl/oJ3TaE

Proposed Rule Change to Amend the Customer And Industry Codes to Expedite List Selection in Arbitration
FINRA
Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend FINRA Rules 12402 and 12403 of the Code of Arbitration Procedure for Customer Disputes (“Customer Code”) and FINRA Rule 13403 of the Code of Arbitration Procedure for Industry Disputes (“Industry Code,” and together with the Customer Code, the “Codes”), to provide that the Director of FINRA’s Office of Dispute Resolution (“ODR Director”) will send the list or lists generated by the Neutral List Selection System (“NLSS”) to all parties at the same time, within approximately 30 days after the last answer is due, regardless of the parties’ agreement to extend any answer due date.
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SIFMA Executive Vice President Randy Snook Remarks as Prepared for the Equity Market Structure Conference
SIFMA
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Ex-Jefferies Trader Gets 2 Years for Lying on Prices, Again
by Chris Dolmetsch – Bloomberg
Jesse Litvak was convicted for his mortgage-securities tactics; Judge rejects claim that methods didn’t lead to any real harm
Jesse Litvak sought any edge he could find on Wall Street. The former Jefferies LLC managing director was an aggressive negotiator when trading mortgage-backed bonds, bending the truth or even falsifying chat transcripts in order to maximize his earnings.
/goo.gl/HIlDEZ

Federal Reserve Restructuring Part of Its Large Bank Supervision Program
Katy Burne – WSJ
The Federal Reserve is restructuring a panel it set up in 2010 to improve its supervision of the largest and most complex banks, according to people familiar with the initiative, in its latest effort to implement lessons learned from the financial crisis. The panel, called the Large Institution Supervision Coordinating Committee, or LISCC, was created after the crisis to centralize Fed bank supervision under its Board of Governors in Washington, shifting certain powers away from the Fed’s regional reserve banks.
on.wsj.com/2q78jfB

First Sebi board meet under Ajay Tyagi sees sweeping changes in trading norms; Sebi norms relating to mutual funds, IPOs, equity and commodity derivatives trading were changed in the first board meeting under new chairman Ajay Tyagi
Anirudh LaskarJayshree, P. Upadhyay – Livemint
The Securities and Exchange Board of India (Sebi) on Wednesday announced sweeping changes in norms relating to mutual funds, public issues, capital raising and commodity derivatives after its board met for the first time under new chairman Ajay Tyagi.
/goo.gl/a2EJSj

Investing and Trading

Kushner venture fund helps turn Robinhood into a unicorn; Latest funding round values the commission-free US stock-trading app at $1.3bn
by: Ben McLannahan in New York – FT
A venture fund run by Josh Kushner, brother of the son-in-law of US President Donald Trump, has joined a new funding round for Robinhood, a free stock-trading app that has forced a fierce price war in America’s online brokerage industry.
/goo.gl/FimaZz

Trading startup Robinhood raises $110 million in new funding round
By Anna Irrera – Reuters
Commission-free trading startup Robinhood has raised $110 million in a round led by Russian billionaire Yuri Milner’s investment group DST Global, valuing the company at $1.3 billion.
/goo.gl/yq9yk8

A Wall Street boutique is crushing it, and now it’s ready to go out and make some big hires
Raul Hernandez – Business Insider
Moelis & Company, a boutique investment bank, just announced its second record quarter in a row, and is now looking for top-tier talent to add to its roster.
/goo.gl/mmP2IG

Wall Street to Millennials: Don’t fear the stock market; SURVEYS SHOW THIS YOUNG GENERATION FEARS STOCKS AND HAS LITTLE SAVED FOR RETIREMENT, BUT THERE ARE SIGNS OF A SHIFT.
Adam Shell , USA TODAY
Millennials, the children of the stock-loving Baby Boomers who helped fuel the best-ever bull market in the 1990s, haven’t yet developed a good working relationship with the market like mom and dad did.
/goo.gl/y1yjUC

Institutions

Lloyds Bank profits double in first three months of the year
Ben Martin – Telegraph
Lloyds Banking Group revealed that profits doubled during the first quarter of the year as the lender brushed aside concerns it could be hit by a bubble in consumer credit.
/goo.gl/OMEmV2

Trading lags in first quarter at Deutsche Bank; Deutsche Bank’s trading trails US counterparts in the first quarter this year.
By Hayley McDowell – The Trade
The global markets business at Deutsche Bank suffered an 8% decline in revenues in the first quarter this year with equities trading hit the hardest.
/goo.gl/4lq8LW

Deutsche Bank weighs moving thousands of jobs from London after Brexit
Reuters
Deutsche Bank is considering whether it needs to move thousands of staff from London to Frankfurt following Britain’s decision to leave the European Union, one of its top executives said.
/goo.gl/BX0QLK

RBC Hires All-Female Adviser Team; Ex-UBS brokers managed $375 million
By Michael Wursthorn – WSJ
Royal Bank of Canada ‘s RY -1.94% U.S. wealth-management arm said it recruited an all-female team of financial advisers who managed $375 million as brokerages put more emphasis on expanding their ranks of women.
/goo.gl/jG3EDK

Deutsche Bank outpaced by US rivals in investment banking; Cryan says lender must set its sights higher despite profits beating expectations
by: James Shotter in Frankfurt – FT
Deutsche Bank must set its sights higher, its chief executive said on Thursday, after its core investment banking businesses were outpaced by US rivals in the first quarter of the year.
/goo.gl/g2i8JF

Barclays CEO Faces Shareholder Opposition Over Whistleblower Scandal
by Stephen Morris – Bloomberg
Investors told to abstain from vote at AGM by proxy adviser; CEO under investigation for trying to identify whistleblower
Barclays Plc’s shareholders shouldn’t vote to re-elect Jes Staley to the board after the chief executive officer embroiled the bank in scandal by trying to identify a whistle-blower in violation of the firm’s code of conduct, a proxy adviser said.
/goo.gl/ieBJmo

Tax Cut Would Cost BofA, Citi Billions. Here’s Why They Still Win.; Gain to banks’ bottom lines from lower taxes means they could potentially recoup value of deferred tax asset write-downs in a year or two
By Michael Rapoport and Telis Demos – WSJ
A cut in the corporate tax rate would involve immediate pain for some big banks, namely Citigroup Inc. C -0.18% and Bank of America Corp. BAC -0.38% , but an eventual earnings boost should more than make up for that.
/goo.gl/yvPvbd

Deutsche Bank’s Return to Growth Delayed as Trading Trails
by Steven Arons and Nicholas Comfort – Bloomberg
Debt trading, equity trading miss estimates in first quarter; CEO Cryan has vowed ‘controlled growth’ after raising capital
Deutsche Bank AG’s muted gains in a particularly strong period for Wall Street trading is raising doubts about how quickly Chief Executive Officer John Cryan can recover ground lost to competitors.
/goo.gl/LQ466B

Regions

Chinese money market fund becomes world’s biggest; Alibaba-owned Yu’e Bao, meaning leftover treasure, has $165bn under management
by: Louise Lucas in Hong Kong – FT
A money market fund set up by a Chinese tech company as a repository for leftover cash from online spending has emerged as the world’s biggest, with $165.6bn under management.
/goo.gl/7agjTo

Putin Turns Up Heat on Ruble Before Central Bank Has Its Say
by Ilya Arkhipov , Anna Andrianova , and Maria Kolesnikova – Bloomberg
Not content to wait for the central bank to deliver another dose of monetary easing this week, President Vladimir Putin is making clear Russia still has tools to shape the exchange rate to its liking.
/goo.gl/YvJaU8

Brexit

Frankfurt As Cheap As It Is Boring
Jon Shazar – Dealbreaker
“Brexit means Brexit,” British Prime Minister Theresa May was once fond of saying, even though neither she nor anyone else knew at the time what, exactly, Brexit meant. And neither she nor anyone else knows yet, exactly, what it will mean, although—weeks from her presumed electoral coronation—her erstwhile European partners are making clear it’s not going to mean anything good for the U.K.
/goo.gl/hgG0E1

Banks Get Serious About Moving Jobs to Frankfurt on Brexit
by Stephan Kahl – Bloomberg
Realtor says some lenders have already reserved space in city; Frankfurt has lower cost-of-living than other European cities
International banks are getting serious about moving staff to Frankfurt after last year’s Brexit vote spurred competition among European cities to lure jobs away from London.
/goo.gl/fZ16DQ

Nomura Eyes Munich, Frankfurt as Post-Brexit Options for EU Base
by Takahiko Hyuga – Bloomberg
Japanese brokerage joining growing band looking at Germany; Nomura to make final decision in May or June, CFO says
Japan’s biggest brokerage is joining the growing band of financial institutions looking at Germany as a potential base for European operations after Brexit.
/goo.gl/f9SQCT

Merkel Warns Against U.K. ‘Illusions’ in Hard-Line Brexit Speech
by Patrick Donahue and Arne Delfs – Bloomberg
German chancellor says exaggerated hopes would waste time; Speech to parliament ahead of EU’s Brexit summit on Saturday
German Chancellor Angela Merkel laid down a tough line for Brexit talks with the U.K., reminding Britain it can’t expect preferential treatment as she warned that some officials in London were harboring “illusions.”
/goo.gl/hYJX6X

U.K. Regrets Brexit for First Time Since Referendum, Poll Says
by Tim Ross – Bloomberg
YouGov/Times survey shows 45% say country wrong to leave EU; May seeking new mandate from voters for her Brexit vision
More British voters think the decision to leave the European Union is a mistake than support the split, a poll showed for the first time since last June’s referendum.
/goo.gl/lEQYZ8

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