Bits & Pieces: A Tale of Three Cities
By John J. Lothian
Two years ago after our first Summer Intern Education Series we were so pumped up by its success that we planned to hold it again next year not only in Chicago, but also New York and London. We only pulled off London and Chicago last year. But this year we are headed for the trifecta.
We are planning to tentatively hold our London series on October 14 and 15. We are still searching for a venue to hold between 100 and 200 people. If you have suggestions, or have a venue and would like to be an event sponsor in return, please contact me.
This year in Chicago we had over 220 interns signed up for the three session program. Most were signed up for all three, but we had some drop off at the last session due to limited seating.
I regularly tell my staff we are not an event company, but I could not be more proud of how the whole staff came together and executed both the New York and Chicago events. What I really like about our events aimed at interns and new employees is that we have a fresh new target audience every year. We are not trying to recruit the same C level staff to our conferences like some other media companies do.
What I also like is the response we get from the interns and how appreciative they are to hear from high level speakers we line up. It is easy to point to Mayor Rahm Emanuel as a top notch speaker (see his presentation show below), but CME Group’s Phupinder Gill also did a terrific job in his presentation.
I really like this program. I have had many long time industry professionals tell me they wish they had been at something like this when they were young. I like the stories we get to tell. I like trying something new.
My editor-in-chief, Jim Kharouf, also likes to try new things. I also think he likes to make soup from lots of ingredients because he is going to take the new Microsoft Sway tool and put together a “best of” career advice from the series. Call it the Chicken Soup of Career Advice from Jim Kharouf.
Last year we tried to take this program on the road and hold some sessions at college campuses. We were unable to pull it off. We need a new plan for how to make that happen and will be working on that this year.
Right now though, the JLN team is relaxing (with the normal daily grind) after a week of very hard work putting on the Summer Intern Education series. They deserve it. They did great work.
We will be back to full strength, minus most of our interns, after September 1.
Thank you to all our sponsors of the series, including our Global Premier Sponsor, CME Group. We could not do it without your help.
Rahm Emanuel, Mayor, City of Chicago – Chicago, Risk Capital of the World
If you want to hear why Chicago may hold its spot as one of the financial hubs in the world, Mayor Rahm Emanuel has the answers. Speaking at Trading Technologies headquarters in Chicago at the 2015 MarketsWiki World of Opportunity Summer Intern Education Series, he outlines the reasons to be optimistic about Chicago’s future. The city is rated as the second most competitive economy in the US, behind New York and is always rated in the top 10 worldwide. It’s also the number one city for college graduation with 150,000 students graduating each year from 15 colleges and universities, and it’s the top city for first jobs for graduates. See how the city is positioned as the risk management capital of the world.
Watch the video »
Stock Buybacks Draw Scrutiny From Politicians
Andrew Ross Sorkin, NY Times
Should corporate stock buybacks be regulated? Or made illegal? Those are the questions not-so-quietly being floated in Washington by a group of elected officials and others trying to get elected, including most recently, Hillary Rodham Clinton.
***** I know some investors like stock buybacks, but I am personally not a fan. It says to me that you ran out of ideas to put the money to work within the organization. Now dividends I like.
Robin Hood Polo Hits $1 Million Goal as Hamptons Squatter Found
Amanda L Gordon, Bloomberg
A Hong Kong business trip meant Alibaba President J. Michael Evans not only missed the Hamptons polo match benefiting the Robin Hood Foundation on Sunday, but also the discovery of a squatter in the house he recently bought nearby.
****** Even with my knees fixed, I can’t squat very well. So it was not me squatting there or anywhere else.
| Reduce slippage, increase productivity
Independent agency algorithms allow you to execute trades more effectively and more efficiently. To learn more watch this brief video.
U.S. Identifies Insider Trading Ring With Ukraine Hackers
Keri Geiger, Bloomberg
Exposing a new front in cybercrime, U.S. authorities broke up an alleged insider trading ring that relied on computer hackers to pilfer corporate press announcements and then profited by trading on the sensitive information before it became public, according to a person familiar with the matter.
****** The tip-off for the brokerage firm should be the high level of profitability in the account and the sound of Russian artillery in the background of the phone calls.
Bürgenstock Annual Meeting
22-23 September 2015, Geneva, Switzerland
The Swiss Futures and Options Association (‘SFOA’) is once again hosting its international forum for commodities and derivatives markets in Geneva on September 22 – 24, 2015. Now in its fourth decade, the Bürgenstock Meeting will continue its tradition of attracting high-level speakers from the commodities, emerging markets and derivatives industry at its annual flagship meeting.
****** If you ever wanted to go to the SFOA’s Bürgenstock Annual Meeting, this is the year. And that is all I am going to say about that.
Why This Is the Year of the No. 2 Hitter in Baseball; Teams are increasingly placing their better hitters in the second spot in the batting order
By CAMDEN HU, WSJ
In baseball, the second hitter in the lineup has typically been viewed as a table-setter—a contact hitter with speed and the ability to bunt—responsible for moving runners over and allowing batters in the middle of the lineup to drive in the runs.
***** We originally had Phupinder Gill in the number 2 slot Friday, but then our leadoff hitter was 15 minutes late, so Gill moved up to number 1 and did great.
Fat Lady Sings for Columbia House; Former giant in mail-order music files for bankruptcy protection
By TOM CORRIGAN, WSJ
The owner of one-time mail-order music giant Columbia House filed for chapter 11 bankruptcy protection Monday, seeking to sell what remains of its business after almost two decades of declining revenue.
****** This is the trading floor closing equivalent of the record business.
Google becomes part of a new company, Alphabet
Google, one of the best-known brands on the planet, on Monday radically restructured itself under the corporate name Alphabet, an almost unprecedented shift that reflects the company’s far-reaching ambitions and the vast Web it helped evolve.
***** ABC, yada, yada, yada, and XYZ.
BATS gets regulatory nod for second U.S. options exchange
BY JOHN MCCRANK, Reuters
Aug 10 BATS Global Markets said on Monday it has received regulatory approval to open its second U.S. options exchange, set to be launched on Nov. 2, as the exchange operator tries to win a bigger share of the U.S. market.
China Rattles Markets With Yuan Devaluation
China devalued the yuan by the most in two decades, a move that rippled through global markets as policy makers stepped up efforts to support exporters and boost the role of market pricing in Asia’s largest economy.
China Moves to Devalue Yuan
PBOC calls currency action a one-time fix
By Lingling Wei, The Wall Street Journal
BEIJING—China’s central bank devalued its tightly controlled currency, causing its biggest one-day loss in two decades, as the world’s second-largest economy continues to sputter.
Yuan Cut Blunts Commodity Rebound as China Faces Pricier Imports
Sharon Cho Martin Ritchie, Bloomberg
Commodity investors betting on a sustained recovery in prices probably didn’t count on China devaluing its currency by the most in two decades. The world’s biggest user of energy, metals and grains surprised markets by cutting the daily reference rate for the yuan on Tuesday by a record in an attempt to bolster its economy. Prices of oil and industrial metals fell amid speculation the weaker currency will make dollar-denominated imports more expensive and slow demand.
Man Charged in Bitcoin Scheme Appears in New York Court
By MATTHEW GOLDSTEIN, NY Times
Anthony Murgio, a Florida man who was charged last month by federal prosecutors in Manhattan with running an illegal bitcoin money exchange firm and is thought to have information about last summer’s hacking attack against JPMorgan Chase, seemed to be taking the unfolding criminal case against him in stride during a court appearance on Monday morning.
Greece Secures Bailout Deal After All-Night Talks in Athens
Eleni Chrepa, Marcus Bensasson, Bloomberg
Greece reached an accord with creditors on the terms of a third bailout, paving the way for national parliaments to vote on the deal before an Aug. 20 payment falls due to the European Central Bank.
‘Wolf’ suspect behind $300 million Cynk fraud pleads not guilty
BY NATE RAYMOND, Reuters
Aug 10 A man accused by U.S. prosecutors of running a $300 million penny-stock manipulation fraud that drove the market value of little-known Cynk Technology Corp past $6 billion pleaded not guilty on Monday.
Senate’s Warren Seeks Review of Bank Message System After Fines
Cheyenne Hopkins – Bloomberg
U.S. Senator Elizabeth Warren wants financial regulators to examine whether a group of banks’ new messaging system can be used to circumvent compliance.
The Positive Feedback Loop is Broken
by Joshua M Brown, The Reformed Broker
The rat runs left and reaches the cheese. He is rewarded by the maze. Guess which direction he runs the next time through. And the next. And the next.
Guggenheim, the SEC and Milken’s Shadow
By Matt Levine, Bloomberg
Today Guggenheim Partners agreed to pay a $20 million penalty to the Securities and Exchange Commission for what looks like some pretty minor stuff. The SEC says that Guggenheim overcharged one client by $6.5 million over several years, but then it figured out the mistake on its own and gave the money back. (Guggenheim didn’t admit or deny wrongdoing.) It had a compliance policy that seems to have forbidden flying on clients’ private jets, but sometimes its employees flew on clients’ private jets. And it “breached its fiduciary duty by failing to disclose a $50 million loan that one of its senior executives received from an advisory client”:
Germany’s Financial Watchdog Worried Over Scale of Forex Manipulation; BaFin says it expects to conclude investigation next year
By Eyk Henning & Madeleine Nissen, The Wall Street Journal
Germany’s banking watchdog is concerned about the magnitude of attempted foreign-exchange manipulation at large domestic banks including Deutsche Bank and expects to conclude its investigation into possible misconduct by 2016.
Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
- MSRB: Notice of Filing of a Proposed Rule Change Consisting of Revisions to the Content Outlines for the Municipal Fund Securities Limited Principal Qualification Examination, Municipal Securities Representative Qualification Examination and Municipal Securities Principal Qualification Examination and Revisions to the Selection Specifications for the Municipal Securities Principal Qualification Examination (Release No. 34-75646; File No. SR-MSRB-2015-07; August 7, 2015)
- NASDAQ: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Chapter XV, Section 2 entitled NASDAQ Options Market Fees and Rebates (Release No. 34-75647; File No. SR-NASDAQ-2015-090; August 7, 2015)
- NYSE Arca: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 6.15 to Establish Exchange Rules Governing the Give Up of a Clearing Member by Options Trading Permit Holders and OTP Firms and Conforming Changes to Rules 6.66 and 6.79 (Release No. 34-75641; File No. SR-NYSEArca-2015-65; August 7, 2015); see also Exhibit 5
SIFMA’s Bentsen Raises Concerns with Proposed Retirement Regulation at DOL Hearing
SIFMA president and CEO Kenneth E. Bentsen, Jr., today testified at the U.S. Department of Labor Hearing on Fiduciary Rule Proposal outlining SIFMA’s concerns with the proposed rule and its potentially harmful impact on investors
Exchanges & Trading Facilities
There Will Be Changes in the London Metal Exchange
The London Metal Exchange, the largest global financial market for base metals trading, is the only remaining trading pit in Europe that uses the open-outcry method. This is considered a bit outdated by experts today, as most trading centers for other commodities and markets have already gone digital and electronic.
SGX comments on Noble Group Limited’s 10 August announcements
Noble Group Limited today released several announcements including the PricewaterhouseCoopers LLP (PWC) review of mark-to-market (MTM) valuation of commodity derivatives and recommendations for further improvements.
NYSE WELCOMES TWO NEW TRANSFERS: THE MADISON SQUARE GARDEN COMPANY AND VEREIT JOIN NYSE’S NETWORK OF LEADING GLOBAL
The New York Stock Exchange, part of the Intercontinental Exchange (NYSE: ICE) global network of exchanges, is pleased to welcome The Madison Square Garden Company (NYSE: MSG) and VEREIT, Inc. (NYSE: VER) to our community of leading companies following the transfer of their stock listings from Nasdaq.
Hedge Funds & Managed Futures
U.S. ETFs Are Adding Assets At Breakneck Speed
China and Greece, among other factors, challenged investors desire to be long equities in July, but problems in international markets and lingering fears that U.S. interest rates are set to rise did not keep cash from piling into exchange traded funds.
In fact, the asset-gathering pace being set by U.S.-listed ETFs through the first seven months of 2015 is well ahead of prior years. U.S.-listed exchange traded products (ETPs), including ETFs and exchange traded notes (ETNs), are adding net new assets (NNA) at clip that is 8 percent ahead of previous years, according to ETFGI, a London-based ETF research firm.
Monetize This: Bond Strategists Pressed to Earn Their Keep
Susanne Walker Barton, Bloomberg
The grand gurus of bonds can kiss the sweet life goodbye. Fixed-income strategists, those big-thinkers of global bond markets, are under growing pressure to do something they’ve never really had to do before: bring in money.
German Investor Confidence Unexpectedly Drops Amid Risks
Carolynn Look, Bloomberg
German investor confidence unexpectedly fell, signaling concern that a global slowdown could weigh on Europe’s powerhouse economy.
Roach Sees Currency Wars Just Getting Worse After Yuan Decision
China’s shock move to devalue the yuan risks opening a new front in a currency war that stretches from the euro zone to Japan as nations look to energize their economies.
Wealth Adviser Daily Briefing: Oil Futures Signal Continued Pressure on Energy
By MICHAEL WURSTHORN, WSJ
The oil market is signaling that prices could stay lower for longer than expected, giving a fresh blow to energy exploration-and-production companies already reeling from the depressed prices, writes The Wall Street Journal. Benchmark U.S. oil futures for September delivery are nearing the six-year low hit in March. But contracts for delivery in later years have taken an even bigger hit, with prices for 2016 and 2017 already trading below their March lows. That indicates that investors, traders and oil companies see the global glut of crude oil persisting beyond this year. For many producers, later-dated contracts are now too cheap to justify locking in prices. That means producers are likely to enter 2016 with fewer price hedges on the books than usual, if they have any at all. “I think it’s a fair assessment that just about nobody is putting on hedges at this point,” said Jason Wangler, an analyst at Wunderlich Securities.
Roubini: Ratings agencies are no longer fit for purpose
Natalie Kenway, InvestmentWeek
Global economist Nouriel Roubini argues that rating agencies are no longer fit for purpose as they are ‘backward looking’ and have managed to escape any real scrutiny following the financial crisis.
Banks & Brokers
Citi and JP Morgan embrace new Markit service
The Trade News
Markit has launched a new trade confirmation service for foreign exchange trades
Nomura cuts around 60 from London markets unit
ByTim Burke, Financial News
Nomura is making a swathe of cuts across its global markets business in London, according to a person familiar with the situation.
Clearing & Settlement
Mandatory clearing on the way for EU interest rate derivatives trades
The rules fulfil an international agreement to improve transparency and minimise the risks involved when trading over the counter (OTC), or privately traded, derivatives, which dates back to 2009. Similar clearing requirements are already in place in the US and Japan.
EU financial services commissioner Jonathan Hill said that the Commission had taken “a significant step to implement our G20 commitments, strengthen financial stability and boost market confidence” with the new rules. “This is also part of our move towards markets that are fair, open and transparent,” he said.
AcadiaSoft Announces Launches New OTC Derivatives Messaging System
Traders Magazine Online News
Traders who execute orders in Over The Counter (OTC) derivatives contracts are getting a new e-messaging service with more connectivity.
AcadiaSoft, a fintech firm that focuses on collateral management solutions, announced that it completed the successful launch of its MarginSphere Xpress platform. Xpress is an email messaging service which allows clients to leverage their investment in the firm’s MarginSphere electronic messaging service for OTC derivatives by extending communications to counterparties who are currently not connected to the service.
Product Modification: Summary for Clearing Firms, Bookkeeping Software Providers, ISVs – August 23, 2015
Effective Sunday, August 23, 2015, for trade date Monday, August 24, 2015, and pending all relevant CFTC regulatory review periods, please be advised that the New York Mercantile Exchange, Inc. (NYMEX or EXCHANGE) will amend the last trading day for the below monthly products currently listed on CME Globex, Open Outcry and available for submission for clearing on CME ClearPort.
Indexes & Products
FTSE Russell launches new factor indexes
Futures & Options World – Let’s Talk Derivatives
FTSE Russell, the London Stock Exchange owned index provider, has added two indexes, dividend yield and momentum, to its Global Factor Index Series.
The new indexes complement the existing single factor suite launched in August last year, covering factors including illiquidity: residual momentum, quality, size, value and volatility. The indexes are based on the FTSE Developed and FTSE Emerging indexes. …
S&P U.S. Indices Methodology Update and Constituent Additions — NEW YORK, Aug. 10, 2015 /PRNewswire/ —
S&P Dow Jones Indices today announces changes to the S&P U.S. Indices methodology and additions to the S&P 100, S&P 500, S&P MidCap 400 and S&P SmallCap 600:
As previously announced in a press release dated January 21, 2015, S&P Dow Jones Indices will include all publicly listed multiple share class lines separately in its float market cap (FMC) weighted indices subject to liquidity and float criteria currently in place for each index.
MSCI Increases Offering Size and Prices $800 Million 5.750% Senior Notes due 2025
MSCI Inc. MSCI, announced today that it priced a private offering of $800 million aggregate amount of 5.750% senior notes due 2025 at an issue price of 100% to yield 5.750% (the “Offering”). The size of the Offering reflects an increase of $300 million from the previously announced Offering size. The Offering is expected to settle on August 13, 2015, subject to customary closing conditions.
Acadian Quants Managing $75 Billion Exploit Investor ‘Mistakes’
Tapping into market inefficiencies, the Boston asset manager runs strategies that have outperformed benchmarks over two decades.
New SPDR ETF launched on Xetra; ETF provides access to European real estate sector ex UK
Xetra/Börse Frankfurt: A new exchange-listed sector index fund issued by SPDR (State Street Global Advisors) has been tradable on Xetra and Börse Frankfurt since Tuesday.
Silicon Valley goes after Wall Street in financial services technology
Silicon Valley is taking on Wall Street right where it lives: in financial services that big banks either have ditched or haven’t latched onto yet.
Tech-focused venture capital firms poured some $12.2 billion into financial services start-ups in 2014, more than triple the amount in 2013, according to numbers from Accenture and CB Insights that Wall Street brokerage Convergex cited in a note Monday.
Markit’s FX confirmation service live
Asset Servicing news | assetservicingtimes.com
Markit has launched its new centralised foreign exchange trade confirmation service, part of its MarkitSERV trade processing platform.
The service matches trade terms to generate confirmations, which are recorded on a central system. It includes confirmation and lifecycle management and straight-through-processing services for 90 venues, as well as clearing and trade reporting tools.
Asset managers choose Markit to support fund launches
AB live on legal onboarding platform
Markit (Nasdaq: MRKT), a leading global diversified provider of financial information services, today announced the launch of its Request for Amendment (RFA) service, available through Counterparty Manager and kyc.com. Working with three of the largest asset management firms including AB (formerly AllianceBernstein), RFA centralises and automates legal onboarding when adding accounts to existing master trading and custody account agreements.
Yodlee, a Hub for Financial Apps, Sells Itself to Envestnet
By MICHAEL J. de la MERCED, NY Times
Last fall, Yodlee, an online hub for consumer financial apps, went public after 15 years as a private company.
FinTech – Tip of the iceberg
Ina Bansal | LinkedIn
Are you waiting for the FinTech bubble to burst?
Do you think FinTech is a myth?
No my dear friend. The wait for you is going to be a long one, in case you keep mounting your expectations on baseless theories.
For all there is, financial technology or ‘FinTech’ is now even more pronounced than it was in the beginning of the year.
Guggenheim Partners Investment Management LLC Settles Charges it Failed to Disclose Conflict to Clients
According to the SEC’s order instituting a settled administrative proceeding, a senior Guggenheim executive obtained the loan in July 2010 so he could fund his personal investment in a corporate acquisition led by Guggenheim’s parent company. In August 2010, Guggenheim invested certain of its advisory clients in two transactions in which the client who made the loan also had invested, but on different terms. The Guggenheim executive and the client who made the loan discussed the two transactions and the Guggenheim executive played a role in structuring them.
Citigroup in $13.5 million settlement over defunct CSO hedge fund
Citigroup Inc (C.N) agreed to pay $13.5 million to settle a lawsuit accusing the bank of deceiving investors into remaining in its Corporate Special Opportunities hedge fund, only to suffer big losses when the fund was liquidated in November 2008, court papers filed on Monday show
ASIC Suspends Retail OTC Derivative Licence After Change Of Control
ASIC has suspended the Australian financial services (AFS) Licence of retail OTC derivative provider Australian Capital Markets Advisory Services Pty Ltd (ACMAS).
The Financial Conduct Authority censures the Co-operative Bank for listing rules breaches and failing to be open with the regulator
The Financial Conduct Authority (FCA) has issued a public censure against The Co-operative Bank plc (Co-op Bank) for breaching its Listing Rules. The Listing Rules require issuers to ensure that information published is not misleading so that investors can make fully informed decisions.
U.S. to Charge That Hackers Tapped Early Deal News; Prosecutors plan to charge several people with securities fraud in connection with alleged scheme
By CHRISTOPHER M. MATTHEWS, JEAN EAGLESHAM AND DANNY YADRON, WSJ
U.S. authorities are preparing to unseal sweeping charges as early as Tuesday against a group of traders and computer hackers who allegedly schemed to get early access to press releases about mergers and acquisitions and trade on them before the deals were made public, people familiar with the matter.
U.S. Charges Nine in Big Insider Trading Scheme; Defendants generated more than $30 million in illegal profits, prosecutors say
By CHELSEY DULANEY, WSJ
U.S. authorities on Tuesday brought charges against nine people who were allegedly part of a group of traders who schemed to get early access to corporate press releases and trade on the developments before they were made public.
Environmental & Energy
Australia outlines low end emission cut targets
Jamie Smyth in Sydney, FT
Australia has outlined plans to cut carbon emissions by at least 26 per cent by 2030 from 2005 levels — towards the lower end of pledges made by developed nations ahead of a United Nations climate change conference in December.
The Trick That’s Going to Keep America’s Coal Alive
Mario Parker, Bloomberg
A 30-year-old mining technique is becoming all that’s keeping a group of U.S. coal producers from joining their competitors in bankruptcy.
China Pollution Crosses Sea to Hamper Air Cleanup Effort in U.S.
By Alex Morales – Bloomberg News
Chinese air pollution is blowing across the Pacific Ocean and partly offsetting clean air measures taken in California, according to Dutch and U.S. researchers.
Canadians pull the plug on renewable energy scheme
By Alex Kirby – The Climate News Network (part of the Guardian Environment Network)
The Canadian province of Nova Scotia, on the country’s Atlantic seaboard, has ended a programme which gave citizens an incentive to produce renewable energy.
Keystone builder quietly making plans for Obama rejection
By Timothy Cama – The Hill
The company hoping to build the Keystone XL Pipeline is quietly planning for President Obama to deny the permit it needs.
Exclusive: China considers replacing head of markets regulator – sources
BY BENJAMIN KANG LIM AND PETE SWEENEY, Reuters
China’s ruling Communist Party has begun looking for an eventual replacement for the top securities regulator, who faces internal criticism over his handling of this year’s boom and bust in Chinese stock prices, sources with ties to the leadership said.
Yuan in biggest fall since 1994 after surprise devaluation
The yuan suffered its biggest fall in over two decades on Tuesday, hitting a three-year low after the Chinese central bank surprised markets by devaluing it by almost 2 per cent, firing a broadside in what many analysts saw as a looming currency war.
Beijing’s Regime Change Stokes Currency War
That’s the sound of China’s long guns firing the first of what is likely to be a flurry of salvos after Beijing declared entry Tuesday into the global currency war. On who’s side? Like everyone else in this war, its own.
Goldman Says These 20 Stocks Are Most Exposed to China
By KRISTEN SCHOLER, WSJ
That describes 85% of the 20 stocks most exposed to China, according to Goldman Sachs Group Inc.GS +1.24%
An App for Reviving China’s Stock Market
Adam Minter, Bloomver
A Chinese social media company is trying to succeed, where government policy has so far failed, at reviving the country’s stock market. Last week, WeChat, China’s most popular social networking app, announced it would soon unveil a stock trading platform, giving its 549 million active users the chance to easily toggle between sending emojis and sell orders.
China’s Credit Slumps as Funds Used to Prop Up Stock Market
China’s efforts to halt a stock market rout spurred a surge in new lending to financial institutions last month, while credit to the real economy weakened.
Singapore’s Shrinking Economy Worsens Bank Risk as Loans Slump
Slumping property and oil prices have dragged a gauge of Singaporean banks’ loan quality to the worst in six years, inflating their borrowing costs.
Lenders have placed 2.3 percent of their loan books in a “special mention” category that signals potential weakness, the highest since 2009. The extra yield investors demand to hold DBS Group Holdings Ltd. 2019 dollar notes over Treasuries surged to a record 87 basis points last month. Similar measures for United Overseas Bank Ltd. and Oversea-Chinese Banking Corp. are the highest in at least six months.
Japan Should Plan for Fresh Stimulus, Says Abe Adviser
An adviser to Prime Minister Shinzo Abe called Tuesday for fresh stimulus of more than $20 billion if data next week show the economy is shrinking, highlighting concern that Mr. Abe’s revival plan is stalling.
Japan’s gross domestic product likely shrank an annualized 1.9% in the April-June quarter, dragged down by weaker exports and consumer spending, in a reversal from solid growth in the first quarter of 2015, according to a poll of 20 economists by The Wall Street Journal. The government will release the GDP figure on Monday.
IIs hit government securities limit, switch to corporate bonds
By Saikat Das, ET Bureau
Absence of room in the government bonds market is seeing overseas investors picking up quasi-sovereign securities such as state-owned Rural Electrification Corp, Power Finance Corp and Power Grid Corp, narrowing the credit spread between these papers and government notes.
Latam currencies gain on hopes Fed may delay rate hike
Latin American currencies rose on Monday as comments from the U.S. Federal Reserve’s vice chairman raised hopes that U.S. interest rates may not go up in September as many expected, boosting investors’ appetite for risk.
Ravaged by Oil’s Collapse, Venezuela Now Has a Big Gold Problem
Nathan Crooks Eduardo Thomson, Bloomberg
The South American country, which is trying to stave off a bond default in the wake of oil’s swoon, had 68 percent of its international reserves in bullion as of August, according to the World Gold Council. That’s a big worry because the price of the precious metal has tumbled 15 percent from this year’s high in January as the global slump in commodities deepened.
British farmers seek emergency help amid falling prices
Mark Odell, FT
British farmers held an emergency summit on Monday amid warnings that many are facing financial ruin due to plunging milk and meat prices.
Cargill Limited donates $150,000 to charities
Local giving is at the heart of Cargill Limited’s commitment to the communities where we live and work. We are thrilled to announce the winners of our “Together We Thrive” contest, recognizing the efforts of charitable organizations across Canada.
Cargill to expand its global pectin business and acquire FMC’s pectin operations
Acquisition strengthens Cargill’s texturizing portfolio to meet growing demand for label-friendly food ingredients
Cargill has signed an agreement with FMC (FMC: NYSE) to acquire its pectin operations, including a production site in Milazzo, Sicily (Italy)