High-frequency trading has reshaped Wall Street in its image; IBM launches enterprise-ready blockchain service; EU’s flawed claim to a global financial hub

Mar 20, 2017

First Read

FIA Recap: Finding Technology Solutions Everywhere
By Jim Kharouf, JLN

The FIA Boca 2017 conference was revealing in subtle ways, well beyond the big names that impressed the audience. In numerous talks with attendees, we found that technologies are continuing to drive innovation and change within the industry, and 2017 may be the year that is marked as a turning point.

One noticeable trend is the push for a more holistic approach to technology. And what does that mean? Take NEX Group’s new structure. The firm, rebooted from its ICAP roots, now is rolling out a new approach that incorporates its brokerage and trading platforms with technology firms that used to stand, more or less, alone. Additionally, they will work with clients on just about any technologies, not just those in their stable of products.

Another firm, in stealth mode, aims to put a dashboard of services in front of clients so they can test drive before they buy new technologies. Several others are looking at the fintech space, providing interesting combinations of market expertise with venture capital funding pipelines.

While much of the conference remains firmly fixed on the exchanges and regulatory environment, the technology side appears to be turning a corner. We’ve gone from mostly reactionary solutions, driven largely by the tighter regulatory structure, into one that is becoming more collaborative, flexible and functional. Much of these go hand in hand, of course. Banks and large institutions have been paring back their IT and are more open to finding outside technology solutions. Meanwhile technology is looking more like a serviceable commodity banks are more willing to lean on.

These are some of the underlying threads to watch for the remainder of the year. What are the practical technologies out there today that will be integrated into the industry? And ultimately, how will technology save client’s money and grow the pie?


Vision: What Richard Sandor Saw And Still Sees In Carbon Markets

Richard Sandor has seen just about everything in his career as the “father of financial futures.” From creating the first interest rate futures contract to founding the Chicago Climate Exchange, he tells it all in his latest book, “How I Saw It: Analysis and Commentary on Environmental Finance”. He spoke with John Lothian News about just how far carbon markets have come since 1999.

“It’s amazing to me, where we came from in the last two decades and during the period of this book, from 1997 or 1999 to 2005,” Sandor said. “What became a theoretical construct became a reality today adopted around the world.”

Watch the video »


Bridging the Week: March 13 to 17 and March 20, 2017 (Tough Love; KISS; Third-Party Deposits; Segregation Breaches)
Gary DeWaal
Last Tuesday, President Donald Trump nominated J. Christopher Giancarlo to serve as Chairman of the Commodity Futures Trading Commission. On Wednesday, the Chairman nominee addressed an industry crowd at the annual conference of FIA in Boca Raton, Florida, and promised tough love to come: freer markets but assertive and aggressive enforcement.


It’s time for the SEC to take a hard look at this stock market rule
Don Ross, PDQ Enterprises – The Hill
President Trump has repeatedly pledged to dismantle outdated or ineffective regulations during his first year in office. As it relates to financial markets, much of the talk has centered around what to do with the Dodd-Frank Wall Street Reform and Consumer Protection Act, the 2010 law that came in the wake of the financial crisis. However, there is another regulation that needs serious review: the Securities and Exchange Commission’s (SEC) Regulation National Market System (NMS).

**JK: Don Ross takes a long look at Reg NMS.


Proof Wall Street Is Still a Boys’ Club; Financial advisory firms are far more lenient with men who break the rules, a new study says.
Ben Steverman – Bloomberg
Last week a statue of a young girl was temporarily installed in New York’s Financial District to mark International Women’s Day. Called The Fearless Girl and sponsored by State Street Corp., she was depicted bravely facing off against the bronze bull that’s become a symbol of Wall Street.

***** We need more adults on Wall Street.


Only 802 People Told the IRS About BitcoinóLawsuit
Jeff John Roberts – Fortune
The Internal Revenue Service revealed new details about its investigation into tax evasion related to bitcoin, filing court documents that suggest only a tiny percentage of virtual currency owners are reporting profits or losses in their annual returns.

***** I don’t see any disclosure problem there, do you?


Money Doesn’t Buy Happiness (in America); The latest World Happiness Report’s latest country ranking has been released, and the Nordics dominate the top 10.
Polly Mosendz – Bloomberg
Chances are, if you live in the U.S., you feel worse today than you did 10 years ago. Don’t worry, it’s not you. This is a national problem: America’s rank on the happiness scale is falling.

***** My definition of happy keeps changing. Pain-free would make me happy, but the strength to overcome pain makes me happier.


How Cliff Asness Became A Billionaire By Building A Kind Of Vanguard Of Hedge Funds
Nathan Vardi – Forbes Staff
Clifford Asness, chief of AQR Capital Management, is the face of a trend that is sweeping Wall Street. A quantitative trading pioneer with a background that includes a doctorate, Goldman Sachs and hedge funds, Asness has experienced highs and lows over his 25-year career. He is now running one of the fastest-growing asset managers on Earth by popularizing what has become the latest investing craze.

**JK: Also, see Cliff’s video from the CME Pinnacle Awards from John Lothian Productions. Revealing.


Friday’s Top Three
Russian oil traders at the center of a money laundering scheme? Yup, that will be a first place story every time – Mystery of Russia Gang, ADM Brokers Solved in London Court. In second is a lesson about diversification from Forbes – The 34-Year-Old Hedge Fund Manager Who Bet Everything On A Stock That Tanked. Sean Smith’s addition to the FTSE Russell team meant his MarketsWiki page nabbed third. Hope everyone had a good weekend!


MarketsWiki Stats
95,898,300 pages viewed; 22,385 pages; 204,371 edits
MarketsWiki Statistics


Lead Stories

High-frequency trading has reshaped Wall Street in its image
Ryan Vlastelica – MarketWatch
“We’re all high-frequency traders now.” So wrote Credit Suisse on Wednesday, in a report that outlines the huge impact that high-frequency trading has had on Wall Street, resulting in much higher overall trading activity and a bias toward parts of the market that are easiest to trade with high-frequency strategies. In other words, high-frequency has reshaped the financial industry in its image.

IBM launches enterprise-ready blockchain service
Anna Irrera – Reuters
International Business Machines Corp has launched a service that will allow businesses to build applications on its cloud using blockchain code from the Hyperledger Project, the cross-industry group led by the Linux Foundation.

EU’s flawed claim to a global financial hub; Modern finance chafes at the sort of dirigisme Brussels prescribes
Jonathan Ford
It is a widely held belief among European officials that it’s unnatural that the eurozone does not have its own large financial centre, but is forced to trade instead with the one next door.

Why Wall Street’s decline will never end
Nicole Gelinas – NY Post
The worst thing about de Blasio’s State of the City was de Blasio
Since President Trump’s election, bank stocks have soared more than 30 percent, with investors thinking the new president will be great for the finance industry.

Record-breaking 2017 for ETFs fuels fears of stock market bubble; Exchange traded funds attracted $131bn in the first two months of the year
Chris Flood – Financial Times
Exchange traded funds have attracted the biggest inflow of money in the first two months of the year on record, heightening concerns that ETF buying is fuelling an unsustainable price bubble in the US stock market.

Hedge Fund Titan’s Surefire Bet Turns Into a $4 Billion Loss
Gretchen Morgenson and Geraldine Fabrikant – NY Times
A little over two years ago, William A. Ackman, one of Wall Street’s brashest and most self-assured hedge fund managers, was on top of the world. A billionaire before he hit 50, he was generating double-digit gains for his investors and raking in hundreds of millions in fees for his firm and himself.

The Reclusive Hedge-Fund Tycoon Behind The Trump Presidency; How Robert Mercer exploited America’s populist insurgency.
Jane Mayer – The New Yorker
Last month, when President Donald Trump toured a Boeing aircraft plant in North Charleston, South Carolina, he saw a familiar face in the crowd that greeted him: Patrick Caddell, a former Democratic political operative and pollster who, for forty-five years, has been prodding insurgent Presidential candidates to attack the Washington establishment. Caddell, who lives in Charleston, is perhaps best known for helping Jimmy Carter win the 1976 Presidential race.

G20 keeps bank regulation efforts alive with Basel commitment
Finance chiefs of the world’s top 20 economies pledged on Saturday to finalize new banking regulations, easing concerns that the new U.S. administration would pull out of a long-delayed global accord known as Basel III. Designed to avert a repeat of the financial crisis, Basel III rules have been on hold due to an impasse between the United States and Europe, with some fearing the accord might never be revived as the new U.S. administration advocates deregulation.

A Trap For A Trader
David Enrich – WSJ
How did authorities zero in on Tom Hayes, the disheveled, socially awkward mastermind of the Libor scandal? An excerpt from the new book ‘The Spider Network’
On a mild, damp March afternoon in 2011, Sarah Tighe and her husband Tom Hayes arrived in the prenatal wing of London’s University College Hospital. They were there for Ms. Tighe’s 12-week pregnancy scan. The pregnancy was off to a difficult start. Ms. Tighe had suffered from severe morning sickness. Mr. Hayes, a disheveled, mildly autistic 32-year-old mathematician, hadn’t been helping matters.

Opinion: Here’s where the next financial crisis is lurking; Five places where animal spirits are running too high
Peter Morici – MarketWatch
Animal spirits are running high. President Donald Trump’s promises to repeal Obamacare, cut taxes, and roll back regulations have supercharged stock prices and business optimism. However, history teaches when expectations are most buoyant, investors and decision makers are inclined to overlook dangers in specific markets that could abscess into a systemic collapse.

Race to Build Offshore Wind Farms That Float on Sea Gathers Pace
Jess Shankleman – Bloomberg
More developers want to install turbines in deep waters; Most offshore turbines fixed to seabed with steel, concrete
Plans to install turbines on platforms that float in the sea are gathering pace as renewable energy developers seek new areas to harvest wind power.

Why Not Everyone Thinks Smart Beta’s a Smart Idea: QuickTake Q&A
Dani Burger – Bloomberg
They call them smart-beta funds, but there are plenty of critics who say they’re anything but smart. What they certainly are is popular: investors have poured more than $430 billion into them over the past decade. The hope is that they deliver the kinds of market-beating returns that pricey hedge funds have long dangled before rich investors, but at index-fund fee levels. The fear is that it’s become yet another way for investors to buy into a bubble.

Exchanges, OTC and Clearing

Euronext and Morningstar collaborate in European Indices and Derivatives launch
Euronext and Morningstar today signed a strategic collaboration to launch product creation opportunities and risk management tools, based on Morningstar Indices. This offering, which includes new European indices for blue chips, will give investors access to relevant benchmarks and related market data at lower cost.

SGX plans to use Baltic Exchange as beachhead into Europe
Financial Times
Loh Boon Chye, chief executive of the Singapore exchange, said the £87m purchase of the UK bourse ó its largest deal to date ó “gave us a good base” but planned to expand its London operations to meet local demand.

Intercontinental Exchange Requests Permission to Appeal Trayport Ruling
As announced on March 6 2017, the Competition Appeal Tribunal (CAT) has upheld the Competition and Markets Authority (CMA) decision that ICE should divest Trayport.

Db x-trackers II EUR High Yield Corporate Bond UCITS ETF (DR) started on Xetra; ETF provides access to liquid euro denominated corporate bonds
Deutsche Bˆrse
A new db x-trackers bond index ETF from the product range of Deutsche Asset Management has been tradable on Xetra and Bˆrse Frankfurt since Monday.

Exchange Publishes its Latest Listing Committee Report
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Monday) published its Listing Committee Report 2016, a review of the work of the Listing Committee in upholding market quality last year and an overview of its policy agenda for 2017 and beyond.

HKEX Enhances Shareholding Information at HKEXnews
Hong Kong Exchanges and Clearing Limited (HKEX) is offering new Stock Connect* shareholding information on the HKEXnews website.

SGX adopts Securities Industry Working Group recommendations
Singapore Exchange (SGX) today announced that it has adopted the recommendations of the Securities Industry Working Group (IWG) to improve the operational resilience of Singapore’s securities market.


Bank of England trials artificial intelligence and blockchain in bid to stay ahead of the pack
Lucy Burton – Telegraph
The Bank of England has paired up with artificial intelligence and blockchain specialists in a bid to keep up to date with the fast-growing financial technology sector.

Swiss-based SIX Securities develops blockchain prototype for bond issuing
Switzerland-based bank SIX Securities Services announced that it has developed a distributed ledger technology (DLT)-based prototype for bond issuing solution, Finextra reported.
The blockchain prototype covers bond lifecycle that enables issuing bonds as smart contracts that provide specific dates when coupon payments are made, the amount involves and how/when repayments occur.

How Chip Designers Are Breaking Moore’s Law
Christopher Mims – WSJ
Two of the biggest semiconductor companies made announcements last week that might seem unrelated, but are linked. Intel announced its acquisition of Israeli startup Mobileye, which makes chips and software for self-driving cars. Nvidia announced the latest generation of a system intended to speed up machine learning, which is necessary for artificial intelligence.

Equinix expands Hong Kong footprint
Networks Asia
Equinix, Inc. is expanding its Hong Kong footprint by adding over 1,400 new cabinets to accommodate local interconnection needs and increasing numbers of inbound cloud service providers (CSPs).


New York Attorney General Steps Up Scrutiny of White House; Eric Schneiderman hires a public-corruption prosecutor to target the Trump administration
Erica Orden – WSJ
New York state’s attorney general, to date one of the most vocal antagonists of President Donald Trump, is preparing to escalate his office’s litigation against the president’s administration.

Buffett Opposes Proposal to Disclose Political Donations
Katherine Chiglinsky – Bloomberg
Berkshire shareholder proposals target fossil fuels, methane; Proponents to get ‘reasonable’ time at annual meeting
Berkshire Hathaway Inc. investors will have a chance to vote on three shareholder resolutions opposed by Chairman Warren Buffett and his board, including a call for the firm to disclose any political contributions.

Treasury’s Mnuchin Fends Off Push to Reject Protectionism; G-20 finance chiefs fail to reach agreement on language rejecting protectionism, signaling rift on trade
Ian Talley, Tom Fairless and Andrea Thomas – WSJ
U.S. Treasury Secretary Steven Mnuchin rebuffed a concerted push by world finance chiefs on Saturday to disavow protectionism, fanning fears that the Trump administration’s pursuit of an “America First” policy could ignite global trade conflicts.

Trump’s unprecedented war on ethics: Eisen and Painter
Norman L. Eisen and Richard W. Painter – USA Today
The president and his Cabinet are heading for a train wreck of a magnitude unseen since Watergate. The government watchdog organization we help lead called upon the White House last week to investigate whether one of its senior officials, Christopher Liddell, violated ethics laws through acting in his official capacity to benefit his personal investments. We wish this were an isolated incident. But on the contrary, it is only the latest element in an emerging pattern: President Trump and his administration are flagrantly violating ethics laws. Unless they correct course, the consequences will be disastrous ó for the president, his team and the country.


What to expect when senators question SEC chairman nominee Clayton
Francine McKenna – MarketWatch
When President Donald Trump’s pick for chairman of the Securities and Exchange Commission shows up for his confirmation hearing Thursday, Jay Clayton will likely enjoy lavish praise from Republicans for being a “job creator” but harsh criticism from Democrats about his conflicts.

Report: Fired U.S. Attorney Bharara Was Investigating Health Secretary Tom Price
Eric Levitz – New York Magazine
Shortly after winning the presidency, Donald Trump met with U.S. Attorney for the Southern District of New York Preet Bharara at Trump Tower. When Bharara left the meeting, he informed reporters that the president-elect had asked if he were willing to remain in his post, and that he had answered in the affirmative.

Intercontinental Exchange Requests Permission To Appeal Trayport Ruling
As announced on March 6 2017, the Competition Appeal Tribunal (CAT) has upheld the Competition and Markets Authority (CMA) decision that ICE should divest Trayport.

UBS ‘Very Pessimistic’ About Settling Tax Fraud Case in France
Gaspard Sebag – Bloomberg
UBS Group AG is “very pessimistic” about reaching an agreement with French authorities to settle a case of alleged tax fraud that forced the bank to post a 1.1 billion-euro ($1.2 billion) bond to cover any potential penalties three years ago, Journal du Dimanche reported.

FBI warns investors about binary options scams
Financial Regulation News
The Federal Bureau of Investigation (FBI) is warning investors about binary options fraud, which resulted in hundreds of complaints and millions of dollars in losses in 2016.

ASIC wants transparency in fintech sector
ASIC chairman Greg Medcraft says financial services providers will need to be totally transparent about the way their systems operate as technology takes an increasingly central role.

Former director fined for failing to notify market of share trading
Mr Angus Matthew Holt, of Sunshine Beach, Queensland, has been convicted and fined in the Maroochydore Magistrates Court for failing to lodge notices regarding his share trading during the period 13 January 2015 to 3 July 2015.

Evaluating distributed ledger technology
ASIC has today released an information sheet on distributed ledger technology (DLT), also known as blockchain technology.

Investing and Trading

Weak Physical Oil Market Hits $50 Billion Hedge Funds’ Bet
Alex Longley, Javier Blas and Rupert Rowling – Bloomberg
The real world of oil trading — where actual cargoes are bought and sold — is doing little to help the hedge funds and other speculators who placed record bets that OPEC and its allies would drive up prices.

There could be a $3 trillion shift in investing, and it poses a huge problem for mutual funds
Frank Chaparro – Business Insider
A dramatic shift is underway in the investment world. Passive investment products like exchange-traded funds have hoovered up assets at a fast clip in recent years. US-listed ETFs saw $283 billion in net inflows during 2016, taking aggregate assets under management to $2.5 trillion, according to Citigroup.

Index IDEA: Will higher rates slow down an already slowing US small cap equity market?
FTSE Russell Blog
US small cap stocks have lost steam in 2017 after a sharp increase to close out 2016 following the US presidential election, as reflected by the US small cap Russell 2000 Index. After an index return of 6.5% in 2016 leading into the November 8 presidential election, the index rose sharply, increasing its return by 14.2% from the election through the end of the year. In 2017, however, the index return has been just 0.6% and has actually declined 1.7% month-to-date as of March 14.

Drawdown Analysis of Low Volatility Indices
Phillip Brzenk Director, Global Research & Design – Indexology Blog
One of the objectives of low volatility strategies is to provide higher risk-adjusted returns than their respective benchmarks over the long run, primarily by reducing drawdowns during market downturns. In the U.S. market, both the S&P 500 Low Volatility Index and the S&P 500 Minimum Volatility Index have shown outperformance over the S&P 500, not just on a risk-adjusted basis, but also in absolute terms.

Man Group Joins Pivot to Local-Currency Emerging Market Debt
Lianting Tu , Carrie Hong , and Narae Kim – Bloomberg
Trump risk priced in to developing-nation debt: Man Group; BNP Paribas Investment likes Indonesian and Indian notes
When it comes to emerging-market sovereign debt, Man Group Plc is going local.

Yellen Surprises Hedge Funds Who Cut Gold Bets Before Rally
Luzi-Ann Javier – Bloomberg
Money managers cut bullish bullion bets by most since 2015; Fed outlook sparks biggest two-day gold gain since November
Janet Yellen’s soothing words on the pace of U.S. interest rate hikes were a day late for hedge funds losing faith in the metal.


Wall Street has been ‘turned upside down’
Matt Turner – Business Insider
It was supposed to be the age of the asset owner. Post-financial crisis, the investment banks that had once ruled finance were brought to their knees, and the asset managers suddenly had all the power. Banks started retreating from certain business lines, with hedge funds and private equity firms stepping in. Big bank traders and research analysts jumped to the buy side. Well, according to Morgan Stanley and Oliver Wyman, the world might be beginning to shift back towards banks.

J.P. Morgan hires bearded hipster to growing data science team
Sarah Butcher – eFinancialCareers
Banks are hiring for data science and they don’t mind if the data scientists they hire don’t have a finance background – just so long as they have an excellent quantitative pedigree. The latest addition to J.P. Morgan’s London data science team personifies the description of a desirable data scientist.

UBS ‘Very Pessimistic’ About Settling Tax Fraud Case in France
Gaspard Sebag – Bloomberg
French prosecutors seek $1.2 billion fine from UBS, JDD says; Such an amount is ‘unthinkable,’ UBS general counsel says
UBS Group AG is “very pessimistic” about reaching an agreement with French authorities to settle a case of alleged tax fraud that forced the bank to post a 1.1 billion-euro ($1.2 billion) bond to cover any potential penalties three years ago, Journal du Dimanche reported.

Deutsche Bank Slashes Bonuses After Hefty Loss; The German has been hurt by legal costs and worries about its financial strength
William Wilkes – WSJ
Deutsche Bank AG slashed bonuses paid to staff by 80% last year after the German lender suffered its second consecutive full-year loss.

Deutsche Bank Says Revenue to Stay ‘Broadly Flat’ This Year
Steven Arons and Nicholas Comfort – Bloomberg
Economic recovery, rising rates to offset impact of disposals; Bank to return to normal compensation after slashing bonuses
Deutsche Bank AG, seeking a return to growth after two years of losses, said revenue will be little changed this year after the lender cut back businesses and equities trading remained weak.

Odd Lots: How a Hedge Fund Manager Teaches His Kids About Money and Banking; Five-year-olds don’t like negative interest rates.
Joe Weisenthal and Tracy Alloway – Bloomberg
Plenty of people pay their kids an allowance to teach them the value of hard work and earning money. But our guest on this week’s Odd Lots podcast takes it to the next level. Toby Nangle is a fund manager at Columbia Threadneedle Investments, who also happens to be fascinated with the question of how money and banking really work.


A new breed of sovereign wealth fund – without the wealth
Claire Milhench – Reuters
Once the preserve of rich oil exporters or nations with trade surpluses, like Norway, Kuwait and Singapore, an unlikely new breed of sovereign wealth fund is emerging – in countries with large deficits and deep debt.

Are Canadian banks headed toward a Wells Fargo – style scandal over sales tactics?
Ciara Linnane – MarketWatch
Is there a Wells Fargo – type banking scandal breaking in Canada? An investigative news segment of CBC-TV, radio and the web called “Go Public” said that it received more than 1,000 emails from employees at the five big Canadian banks complaining of extreme pressure to cross-sell products to their customers to meet aggressive sales targets. The emails came after a “Go Public” report last week that staff at TD Bank were being pressured to sell customers products they do not need.

Indian stock markets can raise $100 billion anually: BSE CEO Ashish Chauhan; In an interview, Chauhan said this target is ‘completely doable’
Business Standard
Indian stock market can raise $100 billion of capital annually going ahead to help meet the country’s funding needs, top bourse Bombay Stock Exchange’s (BSE’s) CEO Ashish Chauhan has said while pegging the amount estimated to be raised through his exchange alone at $30 billion this fiscal.

G20 review of banking rules no rollback of regulation: Weidmann
Gernot Heller – Reuters
Finance leaders of the world’s top economies have agreed to review banking rules, but this does not automatically mean hard-fought financial market regulation will be rolled back, Bundesbank President Jens Weidmann told Reuters on Sunday.

Hedge Funds, Goldman Rush Into Iceland as Krona Controls End
by Omar Valdimarsson and David Scheer – Bloomberg
Arion Bank was formed from Iceland’s Kaupthing Bank in 2008; Investors privately buy stakes ahead of potential public sale
Less than a week after capital controls were lifted a bevy of hedge funds and Goldman Sachs Group Inc. piled back into Iceland by snapping up a 48.8 billion-kronur ($450 million) stake in one of its reconstituted banks.

Accused Spy in Yahoo Hack Worked for Russian Billionaire’s Bank
by Yuliya Fedorinova , Stepan Kravchenko , and Anna Baraulina – Bloomberg
RenCap says Igor Sushchin left bank after indictment unsealed; U.S. says suspects had access to half-billion email accounts
One of two alleged Russian intelligence officers charged by the U.S. with hacking a half-billion Yahoo! Inc. email accounts worked for billionaire Mikhail Prokhorov’s investment bank until last week.


Moody’s warns Scotland exit could leave country facing junk rating
Nicola Sturgeon seeking second referendum
Laura Dew – Investmentweek
Scotland could see its credit status downgraded to ‘junk’ if it votes to leave the UK, according to Moody’s, as a result of the pressures falling oil prices have placed on its public finances.
Last week, Scottish First Minister Nicola Sturgeon called for a second independence referendum to take place before Britain leaves the European Union, saying the country must be offered a choice between a ‘hard’ Brexit and becoming an independent country.

U.K. to Trigger Brexit March 29, Starting Two Years of Talks
Tim Ross and Ian Wishart – Bloomberg
Envoy informed Tusk of May’s plan to start talks next week; Britain is hoping to leave European Union by March 2019
Prime Minister Theresa May will file divorce papers to leave the European Union on March 29, launching two years of complex negotiations that will pit the U.K.’s need for a trade deal against the bloc’s view that Britain shouldn’t benefit from Brexit.

U.K. Investors Have Too Much Faith in Their Government
George Magnus – Bloomberg
The U.K. government will soon invoke Article 50 of the Lisbon Treaty to begin divorce proceedings from the European Union. The Scottish government is seeking to hold a second independence referendum before Brexit talks wind up. An otherwise uneventful Bank of England meeting had one interest-rate dissenter with others potentially sympathetic as inflation stirs.


What commute? How once-fusty financial districts have become hot new residential areas
Arabella Youens – The Telegraph
Londoners take an average of 79 minutes to get to work and New Yorkers spend at least six hours travelling each week. It’s no surprise the daily commute is taking its toll on workers across the world.

It’s Good to Be a CEO, Again: Stocks Rise, and So Does Pay; Twice as many top American companies increased their chiefs’ pay in fiscal 2016 as cut it
Theo Francis and Joann S. Lublin – WSJ
Pay raises are back in style in the corner office, wiping out cuts from a year earlier and pushing CEO compensation to new highs amid a surging stock market.

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