End of a Series
Today concludes our annual Exchange Leaders Series from FIA Boca, with an interview with Matt Chamberlain, interim CEO at the LME. In all, the series included eight different exchange executives who sat down to speak with us at the conference last month. If you haven’t seen them, they are all included below. Each has their own way of summing up 2016 and what is happening at their respective markets in 2017.
The FinTech Exchange conference tickets went fast yesterday. Thanks to all who played. The conference is in Chicago on April 27. Tickets, just not free ones, are still available at the early bird rate till Friday.
Rosenthal Collins Group Appoints Cary Musser Head Of Strategic Asset Management
Rosenthal Collins Group LLC (RCG) announced today the appointment of Cary W. Musser as Head of Strategic Asset Management, a new role within the firm. Musser joined RCG this week with 30 years of investment and security lending experience, most recently at Wells Fargo Asset Management.
**JK: RCG team gets bigger, stronger, faster.
ICE bets on data to resurrect Libor’s reputation; Three years since taking over the benchmark, executive says use of data is helping
Thomas Hale – FT
Finbarr Hutcheson has had an unenviable task for the last three years: resurrecting the reputation of Libor.
**JK: Now, can Finbarr reverse the Brexit?
Trump’s War on Journalism
The LA Times Editorial Board
In Donald Trump’s America, the mere act of reporting news unflattering to the president is held up as evidence of bias. Journalists are slandered as “enemies of the people.” Facts that contradict Trump’s version of reality are dismissed as “fake news.” Reporters and their news organizations are “pathetic,” “very dishonest,” “failing,” and even, in one memorable turn of phrase, “a pile of garbage.”
**JK: Not healthy for democracy.
FinTech Exchange – April 27 in Chicago – Register Today – Early Bird Rate Expires on Friday
Join us on April 27 in Chicago for the 3rd annual FinTech Exchange hosted by Barchart. This all-day, expanded event will showcase concise and engaging on-stage presentations from financial technology leaders as they cover topics, including: Exchange Technology, Data Analytics & Visualization, Tick Data Management, Big Data & Artificial Intelligence, Cloud Security, Market Data & Trading Software, Data Storage & Infrastructure, Telecommunications, Binary Options, APIs, Alternative Data and FinTech Trends. In addition, this year’s event features an extended program with optional in-depth round tables, expanded exhibit hall and an extended networking reception, including a pre-event happy hour the night before at Trading Technologies’ TT TechTap.
Sponsors and partners include Tableau, CBOE, Consulate General of Canada in New York and Chicago, AcquireMedia, B23, CME Group, DataRobot, DDN Storage, Enova, FinTank, FinTech Week, FinTEx Chicago, John J. Lothian & Co., MarketsTech, ModernTrader, Nadex, NIBA, OneMarketData, TopstepTrader, TradeStation, Trading Technologies and Vertex Analytics.
Last year’s event sold out, so get your early-bird tickets.
To view event details or register, please visit www.fintechchicago.com.
Why Britain’s Trains Don’t Run on Time: Capitalism
Owen Jones – NY Times
If how the railways run is a guide to the state of a nation, then it tells you something that Britain is in the middle of its biggest railway strike since 1994. Not coincidentally, that was the year the national rail network was privatized by the Conservative government of Prime Minister John Major.
**JK: And if garbage doesn’t get picked up, watch out.
JLN Exchange Leader Series 2017: LME’s Chamberlain on Ambitious Deployment Schedule
The London Metal Exchange is in flux after the sudden departure of CEO Garry Jones at the beginning of the year. That leaves interim CEO Matt Chamberlain with structural problems to address and a “hugely ambitious” deployment plan for 2017. In this JLN Exchange Leader Video, Chamberlain outlines these plans and the existential issues facing the exchange.
JLN Exchange Leader Video Series
In case you have missed our Exchange Leaders series, here is the line-up to date.
–Sprecher Says ICE Ready To Roll Out Data and Analytics To Meet The Demand For More Info
–Durkin Says CME Growth Is All About Customers
–By Leveraging Bats’ Technology, CBOE’s Tilly Wants To Expand Footprint
–Nasdaq’s Friedman on New Tech and Positive Momentum
–LSEG’s Hackett on a Clear Path Forward
–SGX’s Syn Says Trade Barriers Mean Opportunities for Offshore Exchanges
–HKEx’s Lamba on Opportunities in China
Platts RigData: U.S. Rig Count Grows 77% Year Over Year in March
Platts RigData, a forecasting and analysis unit of S&P Global Platts, today announced the U.S. rig count for March 2017 was 901, up 67 (8%) from February 2017, and up 391 (77%) from March 2016. This rig count includes U.S. onshore, U.S. inland waters, and U.S. offshore Gulf of Mexico drilling rigs. March U.S. land rig count: 852, up 61 from the previous month and up 399 from March 2016.
**JK: Not our typical story, but noteworthy. OPEC, you’ve got competition.
JP Morgan spent $9.5 billion on tech revamp last year
JP Morgan spent more than $9.5 billion on implementing technology across the business in 2016, according to chief executive officer, Jamie Dimon.
**JK: I call this the JP Morgan edition today. How much are you spending on fintech?
Tuesday’s Top Three
Yesterday’s top read story by a wide margin was John Lothian News’ OCC’s Moves Continue about the new president there and the old president, who is over there, at DTCC. Second went to the reverse trend of going slower in the stock markets in Reuters piece Wall Street braces for rough ride as exchanges seek more speed bumps. Third is about the sad state of affairs of some once wealthy families, in Bloomberg’s New York Banking Royalty’s Heirs Are Unloading Art to Save the Family Estate
97,022,514 pages viewed; 22,416 pages; 204,849 edits
Empty Seats at Regulators Hold Back Trump Bid to Undo Dodd-Frank
Benjamin Bain and Robert Schmidt – Bloomberg
President has yet to pick commissioners for SEC and CFTC; Democrats at agencies can single-handedly block proposals
President Donald Trump’s push to roll back Wall Street regulations is being held up by his inability to fill open seats at the two main agencies charged with overseeing the financial industry.
**JK: Just how long must commissioners Giancarlo and Bowen take separate elevators?
Clearing houses see record volume as new rules boost activity; LCH and other clearers benefit as banks and investors reduce derivative risks
Philip Stafford and Hannah Murphy – FT
Clearing houses are experiencing record activity as banks and investors comply with new derivative rules and push their over-the-counter fixed income and foreign exchange swaps towards centralised venues that bolster risk management for the industry.
ETFs Are the New Bond Kings; Exchange-traded funds are transforming debt markets as big investors use them in ways considered crazy a few short years ago.
Rachel Evans – Bloomberg
Leighton Shantz had barely begun managing part of the $26 billion pension fund for Texas state employees when he got a crazy idea.
Citadel Securities recruits second former equities regulator; Hiring may spur questions over revolving door between Wall Street and Washington
Nicole Bullock and Philip Stafford – FT
Citadel Securities has hired a second former senior equities market regulator in nine months as the Chicago electronic market-maker pushes ahead with an aggressive expansion strategy. Stephen Luparello, previously the director of the division of trading and markets at the Securities and Exchange Commission, will join Citadel Securities as general counsel in May. He follows Gregg Berman, the agency’s former head of research who examined the role of high-frequency trading on the world’s largest equity market.
Fed’s Lacker leaves central bank over leak of market sensitive news
Jason Lange and Howard Schneider – Reuters
Richmond Federal Reserve President Jeffrey Lacker abruptly left the U.S. central bank on Tuesday after admitting a conversation he had with a Wall Street analyst in 2012 may have disclosed confidential information about Fed policy options.
JPMorgan CEO calls for regulatory changes in shareholder letter
David Henry and Dan Burns – Reuters
JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon devoted one-third of his annual shareholder letter to arguments for changing regulations, particularly those on bank capital and liquidity, as well as home mortgage loan financing.
JP Morgan’s Jamie Dimon – Just Kidding, Brexit Won’t Mean Many Jobs Moving Out Of London
Tim Worstall – Forbes
Well, isn’t this a turn up for the books. Back before the referendum Jamie Dimon regaled all us British voters with blood curdling tales of how the jobs would vanish from The City and London’s financial markets as everyone scrambled to maintain European Union access. Even just last week we were being told that locations in Dublin and other points rEU were being scouted. Now we’re being told it’s all of no great matter and if there are any job movements it’ll all be a minor number.
EU watchdog seeks to clamp down on opaque trading systems
Hannah Murphy, Philip Stafford – FT
Europe’s main markets watchdog has issued series of clarifications to upcoming trading rules in an effort to head off what it fears are “potential loopholes” in the regulations that would favour less transparent trading.
Active Management Underperformance in 2016 Generally Higher Than in Previous Years
Daniel Ung – S&P Dow Jones Indices
European equity markets, as measured by the S&P Europe 350, went up 3.44% in 2016, yet the average performance of active managers invested in Europe was negative, whether measured on an asset-weighted or equal-weighted basis. Over the one-year period, more than 80% of active managers invested in European equities underperformed their respective S&P DJI benchmark. This level of underperformance continued into the long run, and more than 88% of managers underperformed over the 10-year period.
The World’s Top Coffee Exporter Considers Importing Coffee
Fabiana Batista and Rachel Gamarski – Bloomberg
Drought hurt harvests of beans used to mill instant-coffee; ‘They want to kill us,’ farmer says of government plan
Brazilians have had to endure a lot of late, between the recession, the impeachment and the never-ending stream of national scandals.
Sluggish US IPO activity needs more than a new Jobs Act; Politicians eye reboot of 2012 law but cheap debt and M&As are also limiting listings
Nicole Bullock, Robin Wigglesworth and Barney Jopson – FT
Some anniversaries give cause for introspection and that is certainly the case when Wall Street and Washington look at the half decade spent trying to boost US public share listings.
Banks deploy cloud technology to flush out rogue traders; Major banks are opting for cloud technology to monitor behaviour of traders in light of scandals over recent few years.
Hayley McDowell – The Trade
Major global banks are increasing their adoption of cloud technology in an effort to monitor the actions of traders and avoid future scandals, according to new research.
Exchanges, OTC and Clearing
CME Group Announces First Trades of Monday Weekly Equity Index Options
CME Group, the world’s leading and most diverse derivatives marketplace, today announced the successful launch of S&P 500 and E-mini S&P 500 Monday Weekly options on futures. The total volume through the first trading day was 5,490 contracts with participation from 10 firms. Open interest reached 5,319 as of April
London Stock Exchange launches private placement platform; Capital to come from institutional investors such as BlackRock, Fidelity and Carlyle
Javier Espinoza – FT
The London Stock Exchange Group has launched its first-ever private placement platform as it looks to help fast-growing businesses access financing more easily.
Euronext announces volumes for March 2017
Euronext, the leading pan-European exchange in the Eurozone, today announced trading volumes for March 2017.
MSCI index futures contracts: Tradability for U.S. Participants
As of 10 April 2017, Eurex Participants and investors domiciled in the U.S. will have 19 additional MSCI index futures contracts available for trading.
KfW clears interest rate swaps at Eurex Clearing
KfW is expanding its business relationship with Eurex Clearing AG and is taking over the central settlement of interest rate swaps denominated in euro via Eurex Clearing AG in Frankfurt.
Toronto Stock Exchange and TSX Venture Exchange Launch U.S. Public Venture Capital Roadshow in California; Canada’s premier exchanges team up to promote public VC as a complementary growth path
Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) are kicking off a five-city U.S. Public Venture Capital (VC) Roadshow today in Santa Monica, California. Hosted today by Expert DOJO, one of Southern California’s largest accelerators, and by GSVlabs in Redwood City on Thursday, April 6, these events are designed to bring together a community of entrepreneurs to explore the value and merits of public venture capital as a viable source of funding for early-stage companies.
Intercontinental Exchange Reports March Statistics; ICE ADV up 30% y/y Driven by Financials up 53% y/y and Commodities up 11% y/y; ICE 1Q17 ADV up 4% y/y
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today reported March and first quarter 2017 trading volume and related revenue statistics, which can be viewed on the company’s investor relations website at http://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet.
SGX welcomes the listing of One STOXX ASEAN Select Dividend ETF
Singapore Exchange (SGX) today welcomed the listing of One Asset Management’s (“OneAM”) One STOXX ASEAN Select Dividend Exchange Traded Fund (“ETF”).
MCX market has fallen in global ranking
Business Standard News
Multi Commodity Exchange (MCX), the country’s largest in commodities, has fallen in global ranking despite growth in the number of contracts traded. Russia’s Moscow Exchange has surpassed Eurex, which used to be the largest in Europe so far.
CME Group Announces First Trades of Monday Weekly Equity Index Options
CME Group, the world’s leading and most diverse derivatives marketplace, today announced the successful launch of S&P 500 and E-mini S&P 500 Monday Weekly options on futures. The total volume through the first trading day was 5,490 contracts with participation from 10 firms. Open interest reached 5,319 as of April 4.
Performance Bond Requirements: Crude Oil Margins – Effective April 5, 2017
New Product Summary: Initial listing of Ethanol T2 FOB Rdam Including Duty (Platts) BALMO Futures Contract
Traders go all-in on interest rate derivatives in Q1; Eurex and CME Group recorded record trading volumes in listed interest rate derivatives, while LCH saw record cleared swaps volumes.
By Joe Parsons – The Trade
Volumes in interest rate futures and swaps reached new records during the first quarter, with expectations of a rate hike in the US, the end of quantitative easing, and regulation driving trading.
CME’s Menacho Joins ChartIQ Advisory Board; Officials say Menacho’s experience will be “invaluable” as the vendor seeks to broaden its client base.
Max Bowie – Waters Technology
Menacho joined CME in 2011 as executive director of co-location business development, prior to which she spent eight and a half years at trading technology vendor RealTick as vice president and head of Chicago sales and US implementations, where she was responsible for selling to buy-side and sell-side clients and for managing the team that performed technical configuration for users. “Julie… has a deep understanding of both the buy side and sell side from a relationship, technical, and oper
SIX Exchange Regulation Appoints New Heads Of Trading Supervision And Issuer Regulation
The Board of Directors of SIX has selected Sabir Sheikh to head up issuer regulation and Jared Bibler to be in charge of trading supervision at SIX Exchange Regulation. The Swiss Financial Market Supervisory Authority (FINMA) has approved the selection. This means that the Management Committee of SIX Exchange Regulation, led by Corinne Riguzzi, is now fully staffed.
Moscow Exchange Forum 2017 begins
The Exchange Forum 2017 hosted by Moscow Exchange has been opened today at the Ritz-Carlton Moscow.
Sinolink Securities Goes Live With Fidessa
Fidessa group plc (LSE: FDSA) today announced that Sinolink Securities (Hong Kong) Co Ltd., a wholly-owned subsidiary of Sinolink Securities Co Ltd., has implemented Fidessa’s trading platform for its international equities business.
JP Morgan’s Pinto: ‘We’ll tackle disruption on our own terms’
In the bank’s $20 billion markets business, which houses fixed income and equities sales and trading, Pinto said that “global scale and a complete platform have never been more critical”. He added: “We have many competitive advantages in markets, but it is essential we continue to invest and proactively think about disruption on our own terms.”
Barchart.com Releases Interactive Chart Sharing For Twitter, Facebook, and LinkedIn
Barchart, a leading provider of financial market data and technology, announces a new feature allowing Barchart.com users to publish and share customized charts on Twitter, Facebook, and LinkedIn. This innovative new feature enables the robust Barchart community to research and share their trading ideas at anytime and from any place.
The Technology Impacts of Mifid II (Part 3)
Ullink’s Richard Bentley focuses on the changes likely to occur in the relatively mundane yet hugely important post-trade environment in the wake of the introduction of Mifid II.
Verizon eyeing resale of Equinix colocation, interconnection services
Verizon has agreed to resell Equinix colocation and interconnection services, the two companies announced. The reseller agreement enables Verizon to pair colocation and interconnection services in Equinix International Business Exchange (IBX) data centers around the globe with Verizon’s security, network and advanced communications services to enable enterprises to build hybrid cloud solutions and gain quick access to a multi-cloud environment.
Baymarkets Adds To Clarity And Clara Development Teams – Increasing Client Demand Fuels Company Growth
Baymarkets Technology AB (Baymarkets), a leading Nordic provider of FinTech and RegTech solutions to the global financial services industry, announced today the further strengthening of its delivery capability with the promotion of Enno Runne to Lead Developer for the Clarity platform and the appointment of 3 new members to the Clara development team.
Trump promises to help bankers ‘petrified’ of regulators
Trump promised on Tuesday to “do a very major haircut on Dodd Frank.” He complained that regulators, not CEOs, are the ones “running the banks” these days.
Trump Administration Considers Far-Reaching Steps for ‘Extreme Vetting’; Foreigners entering U.S. could be forced to hand over phones, answer questions on ideology; changes could apply to allies like France and Germany
Laura Meckler – WSJ
Visitors to the U.S. could be forced to provide cellphone contacts and social-media passwords and answer questions about their ideology, according to Trump administration officials, measures that could intrude into the lives of millions of foreigners.
Window closing for Republican stealth assault on U.S. regulations
Lisa Lambert and Sarah N. Lynch – Reuters
The clock began running out this week on a strategy that has provided U.S. Republicans in Congress with their only notable legislative successes this year: aggressive use of an obscure U.S. law known as the Congressional Review Act (CRA).
Jamie Dimon stands behind Donald Trump on relaxed bank rules; JPMorgan chief says problem of too-big-to-fail banks has been ‘solved’
Ben McLannahan – FT
Jamie Dimon has thrown his weight behind Donald Trump’s move to relax financial regulations, saying that the slew of new rules put in place since the crisis has essentially “solved” the problem of banks being “too big to fail”
EU negotiator says Brexit is ‘a Tory catfight that got out of hand’ and predicts next generation will return to bloc – as MEPs approve ‘red lines’
James Rothwell – Telegraph
Britain’s decision to leave the EU was the result of a “catfight in the Conservative party that got out of hand”, a senior Brexit negotiator claimed on Wednesday, as he predicted the next generation of Britons would take us back into the bloc.
The Truth About NAFTA
Laura Tyson – Project Syndicate
As US President Donald Trump receives bids to build his supposed “beautiful wall” along the border with Mexico, his administration is also poised to build some figurative walls with America’s southern neighbor, by renegotiating the North American Free Trade Agreement. Before US officials move forward, they would do well to recognize some basic facts.
ESMA clarifies market structure issues under MiFID II
The European Securities and Markets Authority (ESMA) has issued today detailed guidance regarding the implementation of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).
Fed’s Tarullo says Volcker rule may be hurting trading
Greg Robb – MarketWatch
Federal Reserve Gov. Daniel Tarullo, in his farewell speech Tuesday, warned against scrapping the tough bank regulations in the Dodd-Frank law but said certain elements, like the controversial Volcker rule, could be tweaked.
Swiss Still Unhappy About Omission from Bank Raid Process
Hugo Miller and Jan-Henrik Foerster – Bloomberg
Investigation into alleged tax evasion spans five countries; Swiss prosecutor ‘astonished’ not to be pre-informed of raids
Swiss authorities should be involved as early as possible in “huge” cases such as the investigation into alleged tax evasion by clients of Credit Suisse Group AG, the country’s attorney general said, elaborating on comments last week expressing frustration that he did not know in advance about raids on the bank’s offices.
Court says gay employees can sue under 1964 Civil Rights Act
Joe Palazzolo – MarketWatch
A federal appeals court ruled late Tuesday that a landmark civil rights law allows gay employees to sue their employers for discrimination on the basis of their sexual orientation.
U.S. regulator fines Credit Suisse unit, adviser over improper investments
Credit Suisse Securities (USA), a unit of Credit Suisse AG (CSGN.S), and a former investment adviser have agreed to pay about $8 million in fines to settle charges relating to improper investments, the U.S. Securities and Exchange Commission said.
Investing and Trading
Pimco regains title of managing biggest active bond fund
Trevor Hunnicutt – Reuters
Pacific Investment Management Co regained its perch as the manager behind the world’s largest actively managed bond fund, data from the asset manager showed on Tuesday. The Pimco Income Fund grew to $79.1 billion in March, the fund manager said, a figure that tops the TCW Group Inc’s once-largest $78.9 billion MetWest Total Return Bond Fund.
BlackRock’s Largest Funds Slash Commissions Tied To Sell-Side Research
Trevor Hunnicutt and Olivia Oran – Reuters
BlackRock, the world’s biggest asset manager, slashed the amount it paid out in commissions to Wall Street firms for research by more than half for its largest mutual fund over the last two years, according to filings.
Walters Portrayed as a Savvy Investor Who Didn’t Need to Cheat
Patricia Hurtado – Bloomberg
Gambler accused of insider trading calls brokers as witnesses; Vegas pro accused of making about $43 million on illegal tips
Professional gambler Billy Walters is trying to show a jury he mastered the stock market by doing his homework — and didn’t need illegal tips to make a windfall.
Ford Foundation to Put $1 Billion of Endowment in Impact Funds
Emily Chasan – Bloomberg
Nonprofit to shift capital over 10 years for housing, services; Seeks market-rate profit and to support social goals
The Ford Foundation is committing $1 billion of its endowment over the next 10 years to money managers who invest in affordable housing and financial services for people in developing countries.
Steven Cohen invests in start-up aiming to shake up bank research; Hedge fund magnate invests in company aiming to chart a future for analysts’ research
Robin Wigglesworth – FT
Hedge fund magnate Steven Cohen and the venture capital firm led by former Palantir co-founder Joe Lonsdale have invested in a start-up hoping to overhaul the investment banking research model, which has come under intense pressure in recent years.
German EUR26 billion asset manager ditches Barclays analytics system; Quoniam has replaced its Barclays POINT risk platform with Axioma’s technology.
Hayley McDowell – The Trade
Frankfurt-based buy-side firm, Quoniam, has replaced its Barclays POINT risk and analytics platform with Axioma’s technology.
LNG producers turn to trading, risk taking to maintain market share
Osamu Tsukimori and Aaron Sheldrick – Reuters
Producers of liquefied natural gas (LNG) have shot themselves in the foot with oversupply, and face calls for flexibility and greater competition from other fuels that may force them to take more risks and start trading just like other commodity dealers.
Paying for financial advice gets complicated
By Michael Pollock – MarketWatch
Deciding what kind of financial advice to pay for, and which fee structure is right for you, can be daunting. The advice market is evolving rapidly, and investors today have more choices than ever before ó from expensive, highly tailored advice to more impersonal services that cost next to nothing.
Morgan Stanley corrected Snapchat research to lower earnings forecast
Matt Turner and Rachael Levy – Business Insider
On March 27, Morgan Stanley published an equity research note on Snap, the social media company it helped take public, putting a $28 price target on the stock.
Almost a day later, the bank issued a correction, changing a range of important metrics in its financial model but not the $28 price target.
That has some on Wall Street raising doubts about the research and equity research more broadly.
Why Lacker’s resignation matters
Roger Yu – USA Today
Richmond Federal Reserve President Jeffrey Lacker resigned Tuesday after acknowledging that he may have provided sensitive information to a research firm in October 2012.
BlackRock’s big funds cut commission rates for Wall Street research
Trevor Hunnicutt and Olivia Oran – Reuters
BlackRock Inc, the world’s biggest asset manager, slashed the amount it paid out in commissions to Wall Street firms for research by more than half for its largest mutual fund over the last two years, according to filings.
Dimon Warns ‘Something Is Wrong’ With the U.S.
Laura J Keller – Bloomberg
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon has two big pronouncements as the Trump administration starts reshaping the government: “The United States of America is truly an exceptional country,” and “it is clear that something is wrong.”
Jamie Dimon admits ‘not many’ JP Morgan jobs will leave UK in major Brexit U-turn
Jamie Dimon – Telegraph
The head of JP Morgan has admitted he will not move many jobs out of Britain in the next two years as a result of Brexit, in a U-turn on his pre-referendum warning that a vote to leave the European Union could mean as many as 4,000 jobs moving across the Channel.
What happens to a Chinese backwater when it becomes centre of president’s futuristic dream city?
Meng Jing – South China Morning Post
For residents of the sleepy county of Xiong in smoggy Hebei province, Saturday’s announcement by China’s state news agency that it would become the centre of a new special economic zone, handpicked by President Xi Jinping, was a bolt out of the blue.
Tech Overthrows Financials as King of Emerging Markets
Adam Haigh and Eric Lam
Proportion of tech stocks in MSCI EM index climbs to 24%; Financials lose top ranking among sectors on developing gauge
The rally in technology stocks may have more room to run after the industry overthrew financials as the main driver of emerging market shares last quarter.
Chinese finance is storing up trouble for the rest of the world; Given its macroeconomic imbalances, China could unleash global mayhem
Martin Wolf – FT
Donald Trump, US president, is to meet Xi Jinping, his Chinese counterpart, at Mar-a-Lago in Florida this week. Discussions of economics seem likely to focus on China’s trade and exchange rate policies. This would be a mistake even if the US president’s views of trade were not mistakenly fixated on bilateral imbalances. Far more challenging and important is integrating China into the financial system. US policymakers should worry about China’s capital account, not its current account. That is where danger now lies.
Russian brokerages freely trade sanctioned shares; Otkritie and BCS have New York offices but say US ban does not apply
Max Seddon in Moscow – FT
Russia’s largest brokerages widely trade stocks and bonds under western sanctions because of the Ukraine conflict, highlighting the difficulties of enforcing the measures amid widespread speculation that the US may roll them back.
Sick of Brexit Limbo, Foreign Bankers Are Asking to Be Sent Home
Gavin Finch, Marco Bertacche and Stephen Morris – Bloomberg
Tired from months of wondering whether their jobs will be moved or cut, foreign employees at some of London’s biggest banks are taking the initiative and asking to be moved back home, according to people with knowledge of the requests.
May suggests unrestricted EU migration will continue post-Brexit; PM indicates free movement of EU citizens to UK would carry on in transition period
George Parker – FT
Theresa May has indicated that free movement of EU citizens to the UK could continue for a period after Brexit, as she eyes an “implementation phase” after 2019, while new border systems and a trade deal are put in place.