First Read

Bits & Pieces
They call them the dog days of summer. We used to think that means sleepy and laid back. This month, it seems, it means we are working like dogs.

Well, unless you are Jim Kharouf. Jim has been on holiday for the past two weeks, which added to the rest of our workloads. To be fair, though, Jim did put in a month of hard work before he left, finishing up three projects for John Lothian Productions, as well as a couple of editorial interviews. We will see him in the office for a few days, and then he and Patrick Lothian head to New York for a project with the International Securities Exchange (more on that in the coming days), and they will also be stopping by the DTCC/Euroclear Collateral Conference for the Americas

During that time Doug Ashburn will be speaking at CTA Expo Chicago, where he will join Sol Waksman, head of BarclayHedge, in a panel on modern investment fund databases and the tools that separate them.

John Lothian and JLN Managing Editor Sarah Rudolph will be headed to the Burgenstock conference in Geneva on September 20. They will be finishing their trip in Paris, meeting up with JLN Environmental/Energy editor Lysiane Baudu

We do not exactly put on the brakes in October, either. We are headed to London for another round of MarketsWiki Education sessions. We will hold three sessions, one on the afternoon of October 14, followed by a reception, and then two sessions on the 15th. Each session will be held at Nasdaq, Woolgate Exchange, in the heart of the City. Registration is officially open. Please click HERE for all the information on dates, speakers, directions and more. Please pass along the info to all your London friends who may have interns, college students, young professionals and anyone else who would benefit from these increasingly popular talks.

As always, many thanks to CME Group, Global Premier sponsor of MarketsWiki Education

We keep having to remind ourselves – we are not an events company. But we play one on TV.

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David Krein, MarketAxess – Career Planning in Today’s Financial Industry
MarketsWikiEducation.com

“Ultimately your career objectives fit in with your life objectives. You may not yet know what those are, but time moves extremely quickly and, before long, you will be looking to make certain changes with respect to your life. Those decisions will impact your career.”

In this MarketsWiki Education talk, David Krein dispenses wisdom both timeless and timely. Through tales and anecdotes, Krein reminds us all that the only constant is change, and today’s job market requires consistent matching of one’s skill set to the needs of the market. One must also remain introspective and be honest about what one really wants out of life.

Watch the video »
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Treasury Secretary Jacob J. Lew, left, with Lin-Manuel Miranda, creator and star of “Hamilton.” Credit Michael Paulson/The New York Times
AMONG the parade of power players flocking to see “Hamilton” on Broadway, there is a tiny subset with a special connection to the show’s protagonist: men who have held the job Alexander Hamilton pioneered, secretary of the Treasury.
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***** This is on the top of my list of musicals to see.

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Exploring ‘Hamilton’ and Hip-Hop Steeped in Heritage
By ANTHONY TOMMASINI and JON CARAMANICA, NY Times
In the hit Broadway musical “Hamilton,” Lin-Manuel Miranda tells the story of Alexander Hamilton, once the most overlooked founding father, by seamlessly weaving hip-hop into a musical theater framework. It’s a novel hybridization, but is Mr. Miranda successfully paying tribute to both traditions or somehow weakening one of them? How specific are his references? How skillful is the rapping? Anthony Tommasini, the chief classical music critic of The New York Times and an avowed musical theater enthusiast, spoke with Jon Caramanica, a pop music critic for The Times, about technical fluency, Stephen Sondheim and Biggie Smalls. These are excerpts from their conversation.
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****** Now I just need to find a way to get a ticket at a reasonable price.

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Futures Radio Welcomes Doug Ashburn
CME Group
Anthony Crudele welcomes first-time guest Doug Ashburn to Futures Radio podcast this week. Doug is the Chief Operating Officer at John Lothian & Company. Doug will talk in depth about how John Lothian & Company is building a community to educate the next generation of market participants and how the John Lothian Newsletter and MarketsWiki are valuable tools for them.
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****** Who said Doug has a face for radio? Of course, I have been told I have a face for email.

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Record 1 Billion People Used Facebook In A Single Day
Damon Beres, Huffington Post
It’s Facebook’s world, we’re just living in it. Mark Zuckerberg, the iconic founder of the massive social network, announced in a status update Thursday that 1 billion people used Facebook on Monday. As he put it, one in seven people across the entire planet interacted with the platform in some form on that day.
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***** OK, yes, I was one of them, I admit it.

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MarketsWiki Education London 2015
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Lead Stories

Client Margin Protections Should Be Recognized
Scott O’Malia, ISDA derivatiViews
Big strides have been taken in increasing the share of derivatives cleared through central counterparties in recent years, meeting one of the key objectives set by the Group of 20 (G-20) nations in 2009. Today, roughly 75% of the interest rate derivatives market is cleared, according to US swap repository data compiled by ISDA. But the leverage ratio in its current form could threaten continued progress.
jlne.ws/pZFQ0O

CFTC Approves National Futures Association Rules Enhancing Protections for Retail Forex Customers
CFTC
The U.S. Commodity Futures Trading Commission approved rule amendments and a new interpretive notice filed by the National Futures Association (NFA). NFA is a registered futures association under section 17 of the Commodity Exchange Act (Act), and is a self-regulatory organization for the U.S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency transactions, and swap transactions. NFA submitted the proposed rule amendments and interpretive notice to the Commission for review and approval pursuant to section 17(j) of the Act.
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***DA: For a full summary and links, visit the rule page in MarketsReformWiki. Also, click to read statements from Commissioner Bowen and Chairman Massad

Welcome to a wild world of robot investing
Gillian Tett, FT
This week’s turbulence in the markets was not just a reminder of the ever -growing importance of China’s economy; it was also testimony to how computers dominate the workings of the west’s stock exchanges. Never mind that the Dow Jones index plunged by 1,000 points in just a few minutes on Monday morning (before later rallying). What was more startling was that the share price of stalwart American companies such as Apple, Home Depot or General Electric gyrated even more dramatically in minutes. * Meanwhile, the value of some exchange traded funds tumbled more than 30 per cent. So much for the idea that such funds are boring.
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U.S. leaning against regulatory relief for 3 banks in Libor scandal
BY SARAH N. LYNCH
The U.S. Labor Department is leaning toward denying requests for regulatory relief by three big foreign banks that pleaded guilty to manipulating Libor interest rates but want to keep managing retirement accounts for clients.
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NYSE Draws Users’ Ire With Fee Increases, Patent Charge Proposal
Sam Mamudi Matthew Leising, Bloomberg
NYSE owner ICE seeks income away from traditional sources
ICE previously spurred anger over Libor licensing fees
Intercontinental Exchange Inc., owner of the New York Stock Exchange and some of the world’s biggest derivatives markets, is setting up a clash with customers with its plan to generate income by licensing patents and boosting market-data fees.
jlne.ws/1NEcY0E

Stiffer Capital Rules for Retail Currency Dealers Backed by CFTC
Silla Brush, Bloomberg
U.S. regulators moved to crack down on retail currency markets by endorsing rules that will boost capital requirements after Swiss franc losses left a leading brokerage needing a $300 million rescue earlier this year.
jlne.ws/1U8ULMU

BoE Staff: Bond Dealers Aren’t The Shock Absorbers They Used To Be
By SARAH KROUSE, WSJ
Bond trading has enjoyed a more stable week than equities, but questions still remain about how liquid the market will be in the event of a fixed-income selloff.
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We should worry about China’s politics not the economics
Bill Emmott, FT
In all the noise and debate, the stock market crash raises three big questions
Wreckage of containers are seen at the site of the explosions in Tianjin on August 15, 2015. Residents near the site of two giant explosions in the northern Chinese port city of Tianjin were being evacuated on August over fears of toxic contamination, state media said. CHINA OUT
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SunGard apologizes for fund pricing glitch at BNY Mellon
Reuters
Financial services software provider SunGard apologized on Thursday for the collapse of an accounting system that disrupted the orderly flow of pricing on billions of dollars of assets at a number of U.S. mutual funds and exchange-traded funds.
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Computers are the new Dumb Money
by Joshua M Brown
You want the box score on this latest weekly battle in the stock market?
No problem: Humans 1, Machines o
Because if you think it was human beings executing sales of Starbucks (SBUX) down 22% on Monday’s open, you’re dreaming. And if you believe that it was thinking, sentient people blowing out of Vanguard’s Dividend Appreciation ETF (VIG) at a one-day loss of 26% at 9:30 am, you’ve got another thing coming.
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Deutsche Bank: It’s Chinese ‘Quantitative Tightening’ That’s Been Slamming Markets Around the World; Forget QE. Now it’s all about QT.
Julie Verhage, Bloomberg
The recent selloff in global markets has been largely associated with what’s going on in China (the yuan devaluation, the Shanghai Composite plunge, the slowing growth). But Deutsche Bank’s FX Strategist George Saravelos pinpoints Chinese “Quantitative Tightening” as the key factor to watch.
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China official blames Fed for global market rout, not yuan
BY KEVIN YAO, Reuters
The global stock market rout of the past week was sparked by concerns over a possible interest rate rise by the U.S. Federal Reserve and not by the devaluation of China’s yuan currency, a senior Chinese central bank official told Reuters on Thursday.
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Joint FIA letter to the Financial Times on ‘Leverage ratio threat to the cleared derivatives ecosystem’
FIA
A broad coalition of industry groups called on regulators to exclude client collateral when calculating the total assets of banks, arguing that it actually reduces exposure for clearing member banks. If left unchanged, the leverage ratio would reduce access to clearing and undermine one of the main goals of financial reform, the industry leaders warned in a letter to the Financial Times.
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Regulatory

EMIR Review: ESMA’s recommendations published
FTSE Global Markets
The European Securities and Markets Authority (ESMA) has published four reports focused on how the European Markets Infrastructure Regulation (EMIR) framework has been functioning and providing input and recommendations to the European Commission’s (EC) EMIR Review.
jlne.ws/1JnPVkH

?Global banks flag derivative-trades ID problems in survey
Neil Roland, MLex
A regulatory survey found that global banks encounter widespread problems in generating identification tags for their derivatives trades under the current patchwork of national standards.The finding by Europe-based authorities suggests why they appear to have firm industry backing to try to develop international guidance for a unique transaction identifier (UTI).
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U.S. Puts Deutsche Bank, UBS Pension Businesses on Notice
Keri Geiger Greg Farrell, Bloomberg
Three global banks are in danger of losing their ability to manage pension funds in the U.S., as the Department of Labor wrestles with how to hold financial institutions accountable for criminal misconduct.
jlne.ws/1i71Hce

Statement of Commissioner Sharon Y. Bowen on Enhancing Protections for Retail Forex Customers
CFTC
I concur with the Commission’s approval of the National Futures Association’s (“NFA”) proposed amendments to NFA Compliance Rule 2-36, proposed amendments to NFA Financial Requirements Sections 11 and 12, and proposed Interpretive Notice to NFA Compliance Rule 2-36. Consumers deserve full protection when investing their money in commodities. I am pleased that the NFA is working to address the fact that retail foreign exchange trading is the least regulated retail derivatives market that exists in the United States and, in fact, is subject to less regulation than most derivatives traded by sophisticated, wealthy investors. Having less protection for retail investors than that for financial firms turns consumer protection on its head.
jlne.ws/1MXR5cI

Statement of Chairman Timothy Massad on Enhancing Protections for Retail Forex Customers
CFTC
I support the approval of these National Futures Association rules pertaining to off-exchange retail foreign currency transactions. These rule amendments and new interpretive notice will provide important additional protections for the customers of retail foreign exchange dealers and will require greater risk management on the part of the dealers themselves
jlne.ws/1hIAHjr

Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
SEC
Phlx: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding NASDAQ Last Sale Plus (Release No. 34-75763; File No. SR-Phlx-2015-72; August 26, 2015); see also Exhibit 5
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Exchanges & Trading Facilities

COLUMN-Fasten seat belts as LME spreads tighten: Andy Home
CNBC
For every action there is an equal and opposite reaction. Or translating Sir Isaac Newton’s third law of motion into financial language, markets don’t move in straight lines. Although you’d be forgiven for thinking so after the pummelling base metals have taken over the last couple of weeks. There are, however, the first tentative signs of stabilisation as the selling momentum starts to fade.
jlne.ws/1JnTes0

Euronext Introduces Weekly Options Classes On French And Belgian Single Stocks
Press Release
Following the success of weekly options on Dutch stocks and upon request from market participants, Euronext is now extending the offering to Brussels and Paris. From the launch in July 2010, weekly options on Dutch shares have shown increasing average daily volumes. In 2015 so far, almost 230,000 contracts have been traded, representing an increase of 60% compared with 2014, and 215% compared with 2013. This trend is in line with the overall interest for weekly options on the US and European markets. Currently, Euronext offers weekly options on 14 individual shares listed in Amsterdam.
jlne.ws/1JnNNcv

SIFMA Market Close Recommendations For The US Labor Day
SIFMA
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SIFMA Market Close Recommendations for the UK Summer Bank Holiday
SIFMA
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NZX Purchase Of Apteryx Completed
Mondovisione
On 26 June 2015, NZX announced that it had entered into a non-binding heads of agreement to acquire 100% of Apteryx, a business that delivers rich online functionality to enable New Zealand investment advisers and providers to efficiently manage, trade and administer their clients’ portfolios.
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ITG suspends trading due to issue at data center -Bloomberg
Reuters
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It’s Not Easy Being an Equities Execution Venue, But That’s Not Stopping New Entrants From Trying
Valerie Bogard, TABB Group
Despite intensifying regulatory and technical challenges, five new equities venues are expected to launch before the end of the year. And while some of these new venues plan specifically to target block liquidity or small- and mid-cap trading, others have gone down the same road before and failed.
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Hedge Funds & Managed Futures

Summer Heats Up For Commodities
Bloomberg L.P.
The commodity markets are not on summer holiday. Declining oil prices, China’s currency devaluation and changing weather means that there has been plenty of attention on these markets. Although big price swings might generate headlines, every day, commodity traders and professionals have to sift through thousands of data points to try to piece together a narrative for the market and eventually, a trading strategy.
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Hedge funds that crowded into same names likely to nurse losses
BY SVEA HERBST-BAYLISS
Hedge fund managers often promise to find stock ideas off the beaten path but this month many prominent players have been bloodied by doing exactly the opposite; betting on a small handful of popular names that sold off sharply in August.
jlne.ws/1EoUQVX

U.S.-based stock funds post $17.8 bln outflows in latest week – Lipper
Reuters
Investors in U.S.-based funds pulled $17.8 billion out of stock funds in the week ended Aug. 26, marking the biggest weekly outflows since mid-December of last year, data from Thomson Reuters’ Lipper service showed on Thursday.
jlne.ws/1LzRYoL

Ackman’s hedge fund down 13.1 percent for August
Reuters
Hedge fund mogul William Ackman’s Pershing Square Holdings portfolio fell 13.1 percent this month, leaving the fund down 4.3 percent for the year, the firm said on Thursday.
jlne.ws/1MSCxtb

Carlyle Finds Hedge Funds Hazardous
By ALEXANDRA STEVENSON, NY Times
If nothing else, the last week has proved it can be very difficult to run a hedge fund. The Carlyle Group, the private equity giant, has known that for much longer.
jlne.ws/1PWLCBb

US funds compare notes on torrid August
Stephen Foley and Robin Wigglesworth, FT
The US mutual fund industry’s most famous emerging markets specialists have suffered an August Horribilis, as wild currency swings wiped billions of dollars off the value of their funds.
jlne.ws/1fKmh0i

Money Pours Out of Emerging Markets at Rate Unseen Since Lehman
Elena Popina, Bloomberg
This week, investors relived a nightmare.
As markets from China to South Africa tumbled, they pulled $2.7 billion out of developing economies on Aug. 24. That matches a Sept. 17, 2008 exodus during the week Lehman Brothers went under. The collapse of the U.S. investment bank was a seminal moment in the timeline of the global financial crisis.
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Money Managers Look for Stock Bargains in Turmoil
By JAMES B. STEWART, NY Times
The steep market sell-off has spared hardly anyone. Even some of the country’s top-performing portfolio managers have been hit. A fund run by William Miller, the Legg Mason Opportunity Trust, gave back all of this year’s gains of 14 percent. Bill Smead, who manages the Smead Value Fund, lost about 10 percent over the last month. Both funds are now roughly flat over the last year.
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Soured Wagers Hurt Highflying Fund; Popular ‘liquid alternative fund’ MainStay Marketfield made bad China bet
By KIRSTEN GRIND, WSJ
Market turmoil in China has further derailed the money-management industry’s flagship effort to bring more-sophisticated—and riskier—investment strategies to small investors.
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Banks & Brokers

BlackRock Buys FutureAdvisor, Believes Technology could Reshape Financial Advisory Market Franchise News, Franchise Herald
BlackRock, Inc. has announced that it will be acquiring FutureAdvisor, a leading digital wealth management company, according to a press release issued by BlackRock. The company believes that the technology that FutureAdvisor offers could reshape the future of the financial advisory market.
jlne.ws/1JnSyCQ

Bankers Relish Big-Fish Roles in Smaller Ponds; Regional lenders are raiding Wall Street for experienced execs
Elizabeth Dexheimer, Bloomberg
Wall Street banks have been losing talent to hedge funds, buyout firms, and technology companies. Now they have new competition for recruits: smaller lenders in Ohio, Rhode Island, and other states outside the financial establishment.
jlne.ws/1KdZAjv

JPMorgan Analyst Sees Quantitative Traders Lashing U.S. Equities
Bloomberg Business
Volatility in the U.S. equity market is being whipped up by traders who don’t care what stocks are worth, according to an analyst at JPMorgan Chase & Co. Selling by “price insensitive” investors employing strategies that take their cue from recent trends in stocks is worsening this week’s swings, according to Marko Kolanovic, a derivatives strategist at the New York-based bank. In particular, he cited forced selling by traders who hold positions known on Wall Street as “short gamma,” a bet that prices won’t move much.
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Clearing & Settlement

Global identifiers: how easy is the route to full market transparency?
FTSE Global Markets
In July, US Commodity Futures Trading Commission (CFTC) issued an order to continue the transition to a global system of legal entity identification (LEI) and that it had extended the designation of the utility operated by DTCC-SWIFT as the provider of legal entity identifiers under the regulator’s swap data recordkeeping and reporting rules. DTCC-SWIFT’s initial designation was made by a Commission order back in July 2012 for a two-year term. At the time the order was issued, the Commission was already participating in an international process to establish a global LEI system, into which the legal entity identifier to be used to comply with Commission requirements was expected to transition.
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O’Malia hits out at leverage ratio rules
Futures & Options World
Scott O’Malia, chief executive of the International Swaps and Derivatives Association (Isda), has urged global regulators to review the leverage ratio rules to take into account the exposure reducing effects of segregated client margin.
jlne.ws/1JnQESJ

“IoV”: Internet of Value
Banking Exchange
First there was the internet. Then came the internet of things. Now, watch out for something called the “internet of value.” This new thing really is something to pay attention to as it develops. It has the potential of ushering in global real-time payments through existing banks—while leapfrogging over the existing correspondent banking system.
jlne.ws/1JnQQBq

Eurex Clearing adds HSBC for IRS trading
Futures & Options World
Eurex Clearing has signed up its clearing member for EurexOTC Clear, with HSBC Paris signing with the service for interest rate swaps (IRS). Eurex Clearing, a subsidiary of Deutsche Boerse AG, said Thursday that the firm has been connected as a direct clearing member and has already cleared its first transactions via EurexOTC Clear.
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Indexes & Products

The Dow Jones Industrial Average did something it’s never done before
MarketWatch
The Dow Jones Industrial Average just made history, highlighting the new level of turbulence stock investors face in whipsawing trading sessions. On Thursday, the blue-chip index ended with a gain or loss of at least 200 points for a sixth consecutive session–something the Dow has never done, according to Dow Jones data.
jlne.ws/1JnRrmX

VIX: A Correction Fireside Chat
Jared Dillian, Mauldin Economics, via ValueWalk
They all kind of feel the same after a while. Nobody wins from corrections except for the traders, which today mostly means computers. I forget who said this: “In bear markets, bulls lose money and bears lose money. Everyone loses money. The purpose of a bear market is to destroy capital.” And that’s what is going on today.
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Implementing Carbon-free Investment Mandates using Index Futures
S&P Dow Jones Indices
Socially responsible investment mandates have gradually worked their way into the investment world. The most prominent example might be the divestiture of companies that are involved in the expansion of mankind’s carbon footprint, i.e. the Energy Sector. At the same time, there is often a need to use listed derivatives to achieve the investment outcome. Luckily, this can be accomplished with index futures such as those listed for trading at CME Group. For example, one can easily replicate the S&P 500 ex-Energy with just the E-mini S&P 500 futures and the E-mini S&P Energy Select Sector Futures.
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Technology

OptionsCity adds tech for commodity platform
Futures & Options World
Chicago-based OptionsCity Software has inked a deal with independent inter-dealer broker OTC Global Holdings to supply a new trading widget to its platform, EOXLive, which will allow the tech firms’ clients to have trading access to the broker. The new tech allows the display of listed and over-the-counter (OTC) markets on one screen, available from OptionsCity’s platform, Metro NOW, which includes pricing and risk management analytics.
jlne.ws/1JnQATa

Legal threats for budding fintech companies
EconoTimes
Financial technology or Fintech companies are taking the financial services sector by storm and are expect to revolutionize the traditional banking system. They have simplified the payment processes and promote financial planning. The growth of fintech companies in recent times has been really remarkable.
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How to Jump From Cloud to Cloud; Today there’s no easy way to escape your cloud provider. Some big Web names are trying to fix that
Olga Kharif
In 2010, when Netflix was still early into its shift from DVD rentals to online movies and shows, it started using Amazon.com’s data centers. Video streaming’s popularity was growing fast, and Amazon Web Services, the retailer’s cloud computing division, had the capacity to handle the load. Now that Netflix streams 100 million-plus hours of video every day, it’s sticking with Amazon partly because of Amazon’s scale and features, and partly because switching vendors “would be a significant multiyear effort,” says Yury Izrailevsky, Netflix’s vice president for cloud and platform engineering.
jlne.ws/1EmBkJc

Moving From Dot-Com to Not-Com; Businesses begin trying to migrate customers to private Web domains
Rachel Adams-Heard, Bloomberg
There’s a downside to the relative freedom and lack of gatekeepers on the Internet, including that most anyone can buy a Web address that ends in “.com.” Online, scammers can pay $10 for an address that looks like that of your bank, your favorite clothier, or your auto dealer and create a site that looks enough like the original to trick you into buying phony merchandise or revealing your login and password. Every day, almost 1,000 Americans file some kind of identity-theft complaint with the U.S. Federal Trade Commission, and about 750 report being scammed by an impostor, as in a phishing scheme.
jlne.ws/1JBzHYG

European Publishers Play Lobbying Role Against Google
By MARK SCOTT and NICOLA CLARK, NY Times
In private sessions this summer, giant publishers and media companies from Germany, France and elsewhere have met with European officials about proposals to regulate Europe’s digital economy. The discussions have covered a broad range of contentious issues, according to public disclosures and several people who attended or were briefed on the meetings. Central to almost all of them has been limiting the reach of a single American company: Google.
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Enforcement

Accused U.S. ‘flash crash’ trader fails to have UK extradition case postponed
Reuters
A London-based day-trader accused by the United States of market manipulation that contributed to the Wall Street “flash crash” in 2010, failed to persuade a court on Friday to postpone his extradition hearing.
jlne.ws/1LzRDSU

As Markets Flail, China Investigates Large Brokerage Firms
By NEIL GOUGH, NY Times
The authorities in China have opened two investigations into the country’s biggest brokerage firms amid market turmoil.
jlne.ws/1JAXvYk

‘Flash Crash Trader’ Sarao Fails to Delay Extradition Case
Suzi Ring, Bloomberg
Navinder Singh Sarao, the trader charged over his role in the 2010 U.S. flash crash, lost a bid to delay extradition proceedings next month.
jlne.ws/1KS8duy

Environmental & Energy

Where’s That Cheap Oil Windfall?; Lower petroleum prices have yet to provide the expected boost
Matthew Philips, Bloomberg
During a July 24 earnings call, Visa Chief Financial Officer Vasant Prabhu said gasoline prices have had a “significant negative impact” on business. MasterCard says cheaper gas took 2 percentage points off the growth in the value of its overall second-quarter transactions.
jlne.ws/1KS42ij

Forget Oil Glut and War. Water is Real Threat for Mideast; Bahrain, Kuwait, Qatar and the United Arab Emirates rank high in water-stress index
Sangwon Yoon, Bloomberg
Thirst. It’s not talked about nearly as much as oil or Islamic State, yet lack of water is driving conflict and strife in the Middle East and North Africa.
jlne.ws/1EncJV2

Oil Surges Most in Six Years on Faster U.S. Economic Growth
Mark Shenk, Bloomberg
Oil jumped the most in more than six years, caught up in a relief rally that swept the globe as the U.S. economy grew more than predicted.
jlne.ws/1NE8Fm0

Why Big Corporations Like Gap And eBay Are Mobilizing Against Climate Change
By Shane Ferro, Huffington Post
They’re calling climate change “one of America’s greatest economic opportunities of the 21st century.”
jlne.ws/1hIxtN0

Asia-Pacific

China’s yuan rises sharply on PBOC intervention but derivatives stabilise
By Reuters
China’s yuan rose sharply against the dollar on Friday, with traders citing large transactions by state-owned banks on behalf of the central bank to support the currency.
jlne.ws/1EoViUd

China’s ongoing FX trilemma and its possible consequences
David Keohane, FT
From UBS’s Tao Wang on what, post China’s surprise revaluation, is now an oft used phrase, the impossible trinity — AKA the corner China finds itself in:
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China local pension funds to start investing $313 billion soon
Reuters
China’s local pensions funds will start investing 2 trillion yuan ($313.05 billion) as soon as possible in stocks and other assets, Vice Minister of Human Resources and Social Security You Jun said on Friday.
jlne.ws/1NY7Am9

Singapore, HK tipped to carve out a fintech niche
AsianInvestor
The two cities’ fintech future has been cast into doubt recently, with regional neighbours offering looser laws and rules, but now others have leapt to their defense.
jlne.ws/1JnSaEA

China’s Banks Face Worst Year in Over a Decade; Lenders push to clear rising bad credits from their books
By CHUIN-WEI YAP, WSj
BEIJING—China’s biggest lenders are scrambling to clear rising bad loans from their books, as a faltering economy weighs on loan repayments and sets banks on pace for their worst year since they began listing shares 13 years ago.
jlne.ws/1Ep1dsm

How Do You Short China?; Some traders pile into insurance-like credit-default swaps
By CHRISTOPHER WHITTALL in London, CAROLYN CUI in New York and ANJANI TRIVEDI in Hong Kong, WSJ
Suddenly everyone wants to bet against China. But with limited access to the country’s hard-hit stock markets and thin trading in overseas markets for its currency, it can take a little creativity.
jlne.ws/1MZJRFh

While Many Panicked, Japanese Day Trader Made $34 Million
Jason Clenfield Yuji, Nakamura, Bloomberg
While a lot of investors were hitting the panic button Monday, a Japanese day trader who’d made a big bet against the market timed the bottom almost perfectly and narrated a play-by-play of the trade to his 40,000 Twitter followers. He claims to have walked away with $34 million.
jlne.ws/1LzVSxI

Frontier Markets

Citi looks at India to build banking applications for global market
Business Standard
Launches accelerator programme with IBM, Google, Amazon, Wipro
jlne.ws/1UaENSo

How Brazil’s China-Driven Commodities Boom Went Bust; Developing nation’s big bet on China turns sour as China’s appetite for exports dims; ‘looking at a lost decade’
By JOHN LYONS and PAUL KIERNAN, WSJ
Not long ago, Brazil stood as the leading example of how a developing nation could rise toward global prominence on the force of a China-driven commodity boom.
jlne.ws/1EmE1L2

Miscellaneous

Bunge says to acquire Brazilian wheat processor Moinho Pacifico
Reuters
Bunge Brasil, a wholly owned subsidiary of Bunge Limited, announced on Thursday it has agreed to acquire Brazilian wheat processor Moinho Pacifico.
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