Deutsche Bank Raided by Police in Money-Laundering Probe

Nov 29, 2018

First Read
Hits & Takes
JLN Staff

Deutsche Boerse says “trade and do good” – on 6 December as transaction and trading fees @BoerseFrankfurt will be donated to non-profit organisations. How do you say “nice work” in German?~JJL

Women in Listed Derivatives (WILD) announced the 2019 North American Board of Directors on Wednesday, welcoming six new members to fill open board seats. The board will oversee events, membership, mentorship programs and charitable activities as well as look for new ways to promote the advancement of women in the industry. ~SR

Of course DRW named its real estate arm Convexity Properties. You can check out its completed property portfolio here.~SD

A great data point from the WSJ story Biggest Pay Raise on Wall Street Goes to Stock Derivatives Traders in yesterday’s newsletter: “For the dozen largest investment banks globally, equity derivatives revenue in the Americas soared 84% in the first half of 2018 from the same period a year ago, to $3.8 billion.” ~SD

FIA’s MarketVoice published a story yesterday on the 15 fintech innovators showcased at FIA Expo at the Innovators Pavilion. If you missed FIA Expo or didn’t have time to check out all 15 of these innovative startup companies, check out the story here.~SR

The Bank of England released the results of its Systemic Risk Survey for H2 2018. For the fourth straight time, the proportion of respondents that referenced concerns about a cyber attack increased. ~SD

There is a story trending about a really big cow named Knickers. Knickers is actually a very large steer, but the pictures of him are skewed by putting him next to short wagyu cattle, the Danny DeVito of cattle.~JJL

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Libor interest rate benchmark replacements
Richard Sandor – Bond Buyer commentary
Times of transition are when market participants make their most important choices and biggest decisions. Now is one of those times.
We are witnessing a structural change in the world of interest rate benchmarks. Everybody in finance knows what Libor is but few financial experts know how it came to be the benchmark affecting trillions in loan obligations. It’s a most widely accepted and curious story.
bit.ly/2Qn8kfD

*****Wisdom from the good doctor. See this related story from the ABA HERE.~JJL

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Trading Charity at the Frankfurt Stock Exchange; Fees on St. Nicholas Day are donated to charitable institutions / Donations handed over on 12 December on the trading floor
Deutsche Börse
Deutsche Börse and the security trading banks located on the trading floor of the Frankfurt Stock Exchange, so-called specialists, will donate the transaction and trading fees collected on St. Nicholas Day (6 December) via the Börse Frankfurt venue (MIC: XFRA) to charitable organisations. The donation proceeds will be handed over to the associations on 12 December at 9.00 a.m. during an opening bell ceremony on the trading floor in Frankfurt.
bit.ly/2DRvJz6

****** Do well by doing good, the good doctor always says.~JJL

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Crypto-shills
Jamie Powell – FT
The Thanksgiving weekend is a welcome respite from the drudgery of daily life for most Americans. Over stringy turkey, sweet potato with marshmallow (yes, really) and pumpkin pie, families gather to discuss what really matters. Or try to anyway.
/on.ft.com/2DPLztX

***** Interesting post Thanksgiving read about the hype in the crypto world.~JJL

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The Science of the Job Search, Part VII: You Only Need 50% of Job “Requirements”
Claire Jaja – TalentWorks
“Project Manager needed. Must have 5+ years of experience, be Six Sigma certified, have advanced deep learning knowledge, and be able to perform surgery on occasion.”
Who really has all that? Turns out, basically no one. You’re as likely to get a job interview meeting 50% of job requirements as meeting 90% of them.
bit.ly/2zwGJ1H

**** I wish I had known this years ago. Still worth knowing though if you are looking for a job. ~JB

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Wednesday’s Top Three
Our top three stories from Wednesday included two pieces from John Lothian News. The top piece was Marketwatch’s Former NYSE CEO to head up crypto code of conduct group. Second went to the JLN interview with Tony Saliba in Saliba’s Execution Fight Gears Up, about mixing it up in the options brokerage space. Third went to Chuck Mackie’s JLN column, http://bit.ly/2QsLxz0Consensus: Invest recap

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Lead Stories
Deutsche Bank Raided by Police in Money-Laundering Probe
Karin Matussek, Nicholas Comfort, and Jan-Patrick Barnert
170 German officials involved in searches of bank offices; Probe stems from Panama Papers, not role in Danske laundering
German authorities descended on Deutsche Bank AG, including its downtown Frankfurt headquarters, in a coordinated raid related to a money-laundering investigation.
/bloom.bg/2QnJfkC

More Trading Will Be ‘Taken Over by Machines,’ Quant Chief Says
Krystal Chia – Bloomberg
Gresham’s Kerson says role of systematic trading set to expand; Industry now ‘teaching the machine how to make that decision’
Quantitative trading is on the march and machines are likely to handle a much greater share of dealing in assets in the years to come, diluting or replacing the role now played by human beings, according to Scott Kerson, head of systematic strategies at Gresham Investment Management LLC.
/bloom.bg/2QsEUfZ

EU sees no progress yet on recognizing Swiss stock exchanges
Francesco Guarascio – Reuters
Talks between the European Union and Switzerland have not made enough progress to extend EU recognition of Swiss stock-exchange regulations beyond this year, European Commission Vice President Valdis Dombrovskis said in a letter.
/goo.gl/nC5kas

Judge Slaps Down SEC Attempt to Label ICO Token as Security
www.ccn.com
US District Judge Gonzalo Curiel of the Southern District of California declared yesterday that the Securities and Exchange Commission (SEC) had failed to demonstrate that the Blockvest ICO met the characteristics of a security under US law. The case will go to trial, as such.
bit.ly/2QnLdl0

BaFin: An Integrated Approach to Market Supervision
BaFin Deputy Head Elisabeth Roegele discusses Brexit preparations, Germany’s financial marketplace, and relations with other regulators
By Corinna Schempp – MarketVoice (FIA)
With the U.K. set to leave the European Union in March, Germany is becoming a more important center for financial institutions doing business in the EU. This raises the profile of BaFin, Germany’s main supervisor for the financial services sector.
/goo.gl/VbfcVf

FBI Arrests AriseBank CEO Over $4 Million Crypto Fraud
Yogita Khatri – Coindesk
The FBI has arrested the CEO of cryptocurrency platform AriseBank after he was indicted over an alleged multi-million dollar scam. The new was announced Wednesday by the U.S. Attorney’s Office of the Northern District of Texas, which states that 30-year-old Jared Rice Sr. tricked hundreds of investors out of over $4 million and has now been charged with three counts of securities fraud and three counts of wire fraud.
bit.ly/2QtWNLi

Theresa May concedes any Brexit will leave UK worse off; Government forecasts 3.9% hit in 15 years, and BoE warns of sharpest postwar contraction
Chris Giles and George Parker in London – FT
Theresa May was on Wednesday forced to concede that any form of Brexit would leave Britain worse off and that her negotiated deal with Brussels would only mitigate the economic damage of leaving the EU.
/on.ft.com/2QkCiRt

For the EU, Brexit Is Over as Farage Tells Barnier He’s Won
Ian Wishart – Bloomberg
While the U.K. grapples with a Brexit deal that almost no one thinks its parliament will approve, the European Union is looking the other way.
/bloom.bg/2QlQ3PN

ECB Says Euro-Area Financial System Can Withstand No-Deal Brexit
Alessandro Speciale – Bloomberg
A chaotic U.K. exit from the European Union would have a manageable impact on continent’s financial system if banks and other financial institutions are well prepared for the risk, the European Central Bank said.
/bloom.bg/2QvSPBQ

SocGen chief resorts to ‘digital speed-dating’ to win over investors; Frédéric Oudéa steps up effort to prove the French bank has a coherent tech strategy
David Keohane in Paris – FT
In his latest attempt to convince investors that Société Générale has a coherent technology strategy, the French bank’s chief executive has taken investors on what he describes as a kind of “digital speed-dating” process.
/on.ft.com/2Qn7LT3

UK financial regulator backs short Brexit transition period
Caroline Binham in London- FT
The UK’s financial regulator has thrown its weight behind securing a short but defined Brexit transition period, warning that the UK crashing out of the bloc with no time to adjust could “create significant challenges.”
/on.ft.com/2QxFQjr

Bloomberg joins Bond Connect as second approved trading platform; Bloomberg follows Tradeweb as the second approved trading platform provider on Bond Connect, the cross-border trading link in Asia.
Hayley McDowell – The Trade
Bloomberg has been named as the second approved trading platform to operate within Bond Connect, the cross-border bond trading and settlement scheme that links the Mainland China and Hong Kong markets.
bit.ly/2QnNUD8

Exchanges, OTC and Clearing
Tradeweb connects to Eurex for direct clearing
Eurex
As part of their efforts to enhance clients’ trading and clearing workflows, Eurex Clearing and Tradeweb Markets, a leading global provider of fixed income, derivatives and ETF marketplaces, announced they have established a direct connection for the clearing of over-the-counter (OTC) interest rate products. The connection will create significant workflow and execution efficiencies for buy- and sell-side firms using the services of both Tradeweb and Eurex Clearing, thus achieving straight-through processing (STP) benefits and ultimately improving market infrastructure.
bit.ly/2QoADu8

Analysis: Front-month liquidity in China crude futures flags shift towards global norms
Sebastian Lewis, Cindy Liang and Sambit Mohanty – S&P Global Platts
China’s crude futures are witnessing a buildup of liquidity in front-month contracts, signaling a shift away from the typical trading patterns and highlighting that efforts to align the futures markets in the country with international exchanges may be starting to yield results.
/goo.gl/zdXvPe

Exclusive: Traders in talks to form first LME ring member in decade
Eric Onstad – Reuters
A group of traders are in talks with Sigma Broking Ltd to create the first new open-outcry member of the London Metal Exchange (LME) in more than a decade, three industry sources said.
/reut.rs/2E4lQyW

Eurex’s Partnership Program Awarded “Clearing House Innovation Of The Year”
Eurex
At this year’s ‘Risk Awards 2019’ gala, hosted at the Brewery in London, Eurex Clearing’s Partnership Program was awarded “Clearing house innovation of the year”. Matthias Graulich, Member of the Eurex Clearing Executive Board accepted the award for Eurex. The Risk Awards recognize the work of firms and individuals in the derivatives markets and risk management across the globe.
bit.ly/2QtvT6c

ICE Endex Announces Results of European Gas Storage Auction for GasTerra
ICE
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced the results of the ICE Endex gas storage auction held on November 28 2018 on behalf of GasTerra.
bit.ly/2QpV0ah

Katrin Otto: “That’s all thanks to my grandma”
Eurex
How Katrin Otto, member of the Executive Board of CEINEX, became involved in China, strategy and, ultimately CEINEX
bit.ly/2Qw0hgE

Amendments to the Clearing Conditions of Eurex Clearing AG
Eurex
This circular contains information with respect to Eurex Clearing’s service offering and corresponding amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) regarding the following topics:
bit.ly/2QpvAJH

Annual prolongation of the Product Specific Supplements to the Liquidity Provider Agreement
Eurex
A majority of Product Specific Supplements (PSS) to the Liquidity Provider Agreement will expire at the end of 2018 and therefore need to be prolonged, some of them with changed parameters.
bit.ly/2QoP6pO

SGX RegCo proposes changes to listings review process and regulation of issue manaXers
SGX
Singapore Exchange Regulation (SGX RegCo) is seeking market feedback on proposed changes to the order of the listings review process as well as the regulation of issue managers.
bit.ly/2QvUAPs

Fintech
Refinitiv cuts 2,000 jobs after Blackstone takeover
Paul Clarke and Samuel Agini – Financial News London
Refinitiv, the financial data and trading company, is in the process of cutting around 2,000 jobs after its takeover by Blackstone, the large private equity group.
The group is looking to strip out $650m of costs in a bid to reshape and compete better with rival Bloomberg amid a growing demand for data from banks and fund managers.
/goo.gl/wsS3qe

Avelacom Expands Its Network Into Equinix Data Centers To Deliver The Lowest Latency Capabilities Between London And Tokyo
Avelacom
Avelacom, the high-performance global connectivity and IT solutions provider for the financial services industry, today announced the launch of a new point of presence (PoP) in Equinix’s Tokyo (TY3) International Business Exchange™ (IBX®) data center.
bit.ly/2QkDhRF

Amazon launches machine learning chip, taking on Nvidia, Intel
Stephen Nellis – Reuters
Amazon.com on Wednesday launched a microchip aimed at so-called machine learning, entering a market that both Intel Corp and Nvidia Corp are counting on to boost their earnings in the coming years.
/goo.gl/zpVjAE

Amazon gets into the blockchain with Quantum Ledger Database & Managed Blockchain
Sarah Perez – Yahoo
Amazon last year dismissed the idea of getting into the blockchain with AWS, but today that’s changed. The company announced a new service called Amazon Quantum Ledger Database or QLDB, which is a fully managed ledger database with a central trusted authority. The service, which is launching into preview today, offers an append-only, immutable journal that tracks the history of all changes, Amazon said.
/yhoo.it/2QtrTTe

BlackRock buys a minority stake in Envestnet
Meghan Morris – Business Insider
BlackRock, already the world’s largest asset manager, wants to distribute its retail products even more broadly.
To get in front of more financial advisors, the New York-based firm is buying a 4.9% stake in financial technology firm Envestnet for $123 million, according to a Tuesday announcement.
/read.bi/2E3eQ5c

Europe’s fintechs head east to challenge Asia’s traditional banks; Nutmeg and Tandem to launch in HK while Revolut moves into Singapore and Japan
Emma Dunkley in Hong Kong – FT
A clutch of Europe’s leading financial technology companies are expanding into Asia in an attempt to shake up the established retail banking market with new digital payment and wealth management services.
/on.ft.com/2DOvBQR

Fintech seeks untapped riches in b2b; Tom Blomfield is not the first fintech entrepreneur to target the b2b space because of personal dissatisfaction with established banks
David Crow – FT
When Tom Blomfield was setting up UK digital bank Monzo, he opened a business current account with a high street lender and deposited £2m. Yet when he asked for a debit card to access his money, the bank declined because his new company lacked a credit history.
/on.ft.com/2DNUWKy

Dell.com resets all customer passwords after cyber attack: statement
Jim Finkle – Reuters
Dell Inc said on Wednesday that it reset passwords for all accounts on its Dell.com online electronics store on Nov. 14, five days after it discovered and stopped hackers who were attempting to steal customer data.
/reut.rs/2QxCJIh

Cryptocurrencies
Bitcoin Is ‘Here To Stay’ Says Wall Street Boss Amid Crypto Rout
Billy Bambrough – Forbes
Bitcoin has been struggling recently, losing 40% of its value in just two weeks, as a civil war in rival cryptocurrency bitcoin cash and fears much-anticipated institutional investment will fail to materialize weigh on bitcoin and cryptocurrency investors.
bit.ly/2zqGHbN

Judge Slaps Down SEC Attempt to Label ICO Token as Security
CCN
US District Judge Gonzalo Curiel of the Southern District of California declared yesterday that the Securities and Exchange Commission (SEC) had failed to demonstrate that the Blockvest ICO met the characteristics of a security under US law. The case will go to trial, as such.
bit.ly/2QnLdl0

Why Goldman Sachs Still Can’t Hold Crypto on Behalf of Clients
CCN
Nearly three months have passed since Goldman Sachs, a $73 billion investment bank based in the US, said that it is not ready to facilitate the delivery of “physical Bitcoin” to its clients. The banking giant is still not able to hold cryptocurrencies on behalf of its clients, despite growing demand from clients.
bit.ly/2zv5ZVY

Bitcoin Futures: Checking in on the Leveraged Money After the Big Drop
Russell Rhoads – TABB Forum
Bitcoin continues to look for support as it trades below $4,000. TABB Group head of derivatives Russell Rhoads checks the most recent CFTC Commitment of Traders report to see how institutional traders are positioned after the big drop. He also notes that leveraged money traders are positioned differently in the Cboe contracts than in the larger CME contracts.
/goo.gl/5sZdFW

Lamborghinis at Crypto Confab Give Way to Talks on Shorting
Amanda L Gordon – Bloomberg
Digital gathering in N.Y. is more sedate after Bitcoin crash; Pantera’s Morehead says ‘fundamentals’ still very positive
The guy in the llama costume identified himself as LamboLlama, also his Twitter handle, a reference to a time when Lamborghinis were a joking meme about the cryptocurrency industry, representing some of the material aspirations of investors and the speed with which it all seemed to be happening.
/bloom.bg/2QkAYOv

U.S. Exposes Bitcoin Addresses of Sanctioned Iranians
Alastair Marsh – Bloomberg
SamSam ransomware attacks targeted over 200 known victims; Over 7,000 transactions were processed through two addresses
The U.S. government just weakened one of Bitcoin’s key selling points: its ability to keep users’ identities private.
/bloom.bg/2QsKsaq

Steemit Lays Off 70% of Its Staff, Citing Crypto Bear Market
Christine Kim – Coindesk
Blockchain startup Steemit has laid off close to 70 percent of its staff, citing the prolonged bear market for cryptocurrency.
bit.ly/2QtvHUE

Energy groups and traders launch new blockchain platform
Emiko Terazono – FT
A group of the world’s leading energy traders and banks is set to shake up the centuries-old commodity trading sector by launching a new digital platform for crude oil trading based on blockchain on Thursday.
/on.ft.com/2Qn9cAV

Politics
Trump might have renominated Yellen for Fed if she wasn’t so … short
Jeff Cox – CNBC
President Donald Trump might have reappointed Janet Yellen to head the Federal Reserve if only she was a few inches taller.
A Washington Post report that quoted current and former officials said Trump on multiple occasions discussed giving Yellen another term at the central bank but was concerned over her height. He feared that at 5 feet and 3 inches she just wasn’t tall enough to get the job done.
/cnb.cx/2RjFTwf

The American Casualties of Trump’s Trade War
Tariffs on Chinese imports have endangered small business around the United States — a growing nightmare that critics say the president could have avoided.
Guy Lawson – The New York Times
Sam Cobb was surprised to see so many people lined up for a hearing at the International Trade Commission in Washington on the morning of Monday, Aug. 20. The chief executive of Real Wood Floors, Cobb was a veteran of such proceedings, which were usually sleepy affairs, populated by white-shoe attorneys fighting over arcane legal definitions. For this hearing, though, the line stretched out the door and onto the sidewalk along E Street, where the people waiting to get in were surrounded by a scrum of television cameramen. In the preceding weeks, the Trump administration had floated a proposal to place punitive import tariffs on $200 billion of Chinese goods, and the politics of global trade had suddenly burst into the headlines.
/goo.gl/gV5ehy

Farm Bill deal ‘very close,’ senators say
Humeyra Pamuk – Reuters
U.S. lawmakers are very close to reaching a consensus in days on the Farm Bill, two senior senators said on Wednesday, after months of bitter partisan debate over the legislation to fund $867 billion in food and agriculture programs.

U.S. Tariffs Spark Flood of Steel Exports to Europe; Trump duties aimed initially at China upend global steel trade, creating winners and losers
Alistair MacDonald – WSJ
U.S. tariffs have scrambled the global steel trade, with countries that can no longer sell into the U.S. sending their products into Europe at a record rate.
/on.wsj.com/2QtpNT

Penny for your corn? Stingy trade-war aid irks U.S. farmers
P.J. Huffstutter, Mark Weinraub – Reuters
Iowa corn farmer Bob Hemesath jokes that the government check he expects as compensation for his trade-war losses will soon allow him to splurge on upscale coffee in town instead of his usual burnt gas-station brew.
/goo.gl/i2BLVP

Trump Keeps Making the Case for Impeachment; Removing the president would be harmful. But Trump seems determined to force the issue.
Jonathan Bernstein – Bloomberg
I was planning to avoid writing about impeachment for a while because my Bloomberg Opinion colleague Francis Wilkinson nailed it recently when he explained that even though House Democrats (or at least their leadership) really don’t want to go down that road, the facts may not give them much of a choice.
/bloom.bg/2QvVo7i

Regulation
U.S. banking regulator to consider easing ‘living will’ requirements
Pete Schroeder – Reuters
A leading U.S. bank regulator said on Wednesday the government is considering easing requirements around the “living wills” large banks must submit detailing how they could be safely dissolved in a crisis.
/goo.gl/GaxaEn

SEC Charges Self-Described Promoter With Microcap Market Manipulation Scheme
SEC
The Securities and Exchange Commission today charged a self-described penny stock promoter and an entity he controlled with orchestrating a scheme to manipulate trading in at least 97 microcap stocks.
bit.ly/2QlNRrx

Danske Bank charged over $200bn money laundering scandal
Richard Milne – FT
Danske Bank is facing its first criminal charges for a EUR200bn money laundering scandal after Danish prosecutors accused it of inadequate controls, insufficient checks on customers, and a failure by both management and the board to report suspicious transactions and start an investigation at the proper time.
/on.ft.com/2QlNw8f

ASIC announces new members of the Markets Disciplinary Panel and consults on proposed changes
ASIC
ASIC is pleased to announce the appointment of four new members of the Markets Disciplinary Panel (MDP).
bit.ly/2QvR9s2

WATCH: SEC Chairman Jay Clayton’s Full Consensus: Invest Interview
Zack Seward – Coindesk
What do you get when you put the chairman of the U.S. Securities and Exchange Commission (SEC) in front of an audience of crypto insiders? An applause line, a word of warning and an analogy about theater tickets.
bit.ly/2DQSfrI

Insider trading case hears of link to St Tropez polo club owner; Prosecutors ask if Alshair Fiyaz engaged in market manipulation with defendant
Caroline Binham in London – FT
The multimillionaire owner of St Tropez polo club has been named in connection with allegations of market manipulation during a jury trial in London.
/on.ft.com/2QpCOxh

FCA says reported technology outages at firms has more than doubled; Technology outages reported to the FCA has surged 138%, with 18% of those incidents being cyber-related.
Hayley McDowell – The Trade
Technology outages at financial institutions reported to the UK’s regulator has more than doubled over the past year, according to its executive director of supervision.
bit.ly/2QlTXrV

ESAs propose to amend bilateral margin requirements to assist Brexit preparations for OTC derivative contracts
ESMA
The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA), together the European Supervisory Authorities (ESA), have today published a final report with draft regulatory technical standards (RTS) proposing to amend the Commission Delegated Regulation on the risk mitigation techniques for OTC derivatives not cleared by a CCP (bilateral margin requirements) under the European Market Infrastructure Regulation (EMIR).
bit.ly/2QsOnUG

Proposed Rule Change Relating to FINRA Rule 4512 (Customer Account Information)
FINRA
Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend paragraph (a)(3) of FINRA Rule 4512 (Customer Account Information) to permit the use of electronic signatures and to clarify the scope of the rule.
bit.ly/2QnhkBm

Statement on EU Withdrawal Impact Assessment
UK FCA
The Financial Conduct Authority (FCA) today publishes its EU Withdrawal Impact Assessment. The assessment was requested by the Treasury Select Committee and sets out the impact of the Withdrawal Agreement and future framework on the FCA’s objectives. Andrew Bailey, FCA Chief Executive, has also written to Rt Hon Nicky Morgan MP, Chair of the Treasury Select Committee.
bit.ly/2QnyMWu

Investing and Trading
When central banks go green
Thomas Hale
Here’s a rarely discussed fact about green bonds: the European Central Bank owns a lot of them.
/on.ft.com/2QsrIYt

U.S. women earn half the income of men, new study finds
Alex Dobuzinskis – Reuters
Women earned roughly half the income of men in the United States over a 15-year period, taking into account time off for family or child care, according to a report released on Wednesday, which found the pay gap is far greater than has commonly been assumed.
/reut.rs/2Qpa5Zr

Fed’s Powell: Financial risks ‘moderate’ despite vulnerabilities
Howard Schneider – Reuters
The U.S. faces only moderate financial risks despite elevated asset prices and concern over the possible impact of rising corporate debt, U.S. Fed chairman Jerome Powell said on Wednesday as the central bank released a broad overview of the health of credit markets and the financial system.
/reut.rs/2QkASq7

There’s More Than One Way to Be a Value Investor
Evie Liu – Barron’s
During the market’s recent tumble, the outperformance of value stocks—the market’s cheapest—has led to talks about a revival of the out-of-favor group. But there’s more than one right way to be a value investor
bit.ly/2Qp9Jlz

Future U.S. seniors to face housing crunch as wealth declines
Mark Miller – Reuters
American homes are showing their age – not the houses, but the people living in them.
/reut.rs/2QlN4XB

Don’t Count on the Fed Saving Stocks Again
Luke Kawa – Bloomberg
Calendar 2019 rate hike expectations were priced much lower; More easing would reflect ‘a much weaker economic environment’
Federal Reserve Chair Jerome Powell’s stint as stock-market savior might prove to be a one-act play.
/bloom.bg/2QtskNu

Institutions
Gruss Capital Is Said to Wind Down Hedge Funds After 18 Years
Saijel Kishan – Bloomberg
Hedge fund traces its roots to pioneers of risk arbitrage; Event-driven strategies trail S&P 500 Index this year
Gruss Capital Management, a hedge fund that traces its roots to pioneers of corporate merger bets, is closing after almost two decades as it struggles to make money, according to people familiar with the matter.
/bloom.bg/2E2Frj4

Australian banks lick their wounds as misconduct inquiry concludes
Byron Kaye – Reuters
An inquiry that has exposed rampant greed and wrongdoing in Australia’s major banks and wealth managers wraps up this week ahead of a final report which could trigger sweeping reform of the financial sector of the world’s 12-largest economy.
/reut.rs/2QxCugl

Toronto-Dominion’s U.S. Lender Outshines Domestic Banking Gains
Doug Alexander – Bloomberg
Toronto-Dominion Bank’s U.S. consumer-banking business is outshining its Canadian operations.
/bloom.bg/2QsqDQp

Eight Ex-Berenberg Bankers Build $1.7 Billion Asset Manager
Stephan Kahl – Bloomberg
Insurers, endowments and family offices are among customers; Strategic investors like Assenagon acquire stakes in company
More German bankers are finding success by venturing into self-employment.
/bloom.bg/2QtXXXa

Regions
Argentina’s advice ahead of G20 summit: get out of Buenos Aires
Hugh Bronstein – Reuters
Argentina will launch a massive security operation in coming days to try to ensure a calm meeting of the leaders of the G20 bloc of nations in Buenos Aires, calling a national bank holiday on Friday and shutting down the city’s main business district.
/goo.gl/jYatdv

Fake Signals and Illegal Flags: How North Korea Uses Clandestine Shipping to Fund Regime
Niharika Mandhana – WSJ
Over the past two years, the U.S. and United Nations have unveiled the tightest sanctions ever applied to North Korea, aiming to cripple Pyongyang’s trade with the outside world.
/on.wsj.com/2E3p5GP

US oil refiners export record volume of petroleum products
Gregory Meyer in New York – Ft
US exports of petroleum products have surged to a new record, reflecting how the country’s refining industry is taking advantage of relatively cheap supplies of crude in the world’s largest oil producer.
/on.ft.com/2DODdTs

China warning spurs banks over bail-in debt plans; Competing for attention in global TLAC markets could drive up costs for Chinese lenders
Blake Evans-Pritchard, Aileen Chuang – Risk.net
China’s central bank is forecasting that its top four lenders – which are among the world’s largest – will need to start issuing bail-in debt sooner than originally expected, and is warning that capital markets may not be ready to absorb the volumes involved, which may now coincide with large supply from western peers.
bit.ly/2DOD0j8

ECB Singles Out Italy as Financial Stability Challenges Rise
Jana Randow and Alessandro Speciale – Bloomberg
Spillovers from Italian bond yields are limited “so far”; Risks include debt sustainability, emerging markets, trade
The European Central Bank singled out Italy as an example of how quickly investors lose confidence in a government if they’re confronted with policy uncertainty, as it said the risks to financial stability in the bloc have become “more challenging.”
/bloom.bg/2QkAmZd

New Financial Rules Could Allow China’s Smaller Banks to Fail. That’s a Good Thing.
By Christopher Beddor – NY Times
China’s too-big-to-fail banking rules are heading in the right direction.
/nyti.ms/2QpXoOh

Brexit
British banks withstand disorderly Brexit in Bank of England test
Huw Jones, David Milliken – Reuters
All seven British banks and building societies in this year’s Bank of England stress test passed, indicating they could withstand a disorderly Brexit without having to curb lending
/goo.gl/wN1vWK

May Says People’s Vote Would Mean Reopening Talks: Brexit Update
Robert Hutton , Charlotte Ryan , and Kitty Donaldson – Bloomberg
Prime Minister Theresa May faced questions from the chairs of parliament’s committees.
/bloom.bg/2QvQUgC

No-Deal Brexit to Be ‘Total Catastrophe,’ Trichet Says
Bloomberg Surveillance
Former European Central Bank President Jean-Claude Trichet talks about the risks for the U.K. and European Union from Brexit as he sees it as “very bad for all” without exception. He speaks with Bloomberg’s Francine Lacqua on “Bloomberg Surveillance.”
/bloom.bg/2QnsTIS

It’s Official: May’s Government Admits Brexit Is Economic Suicide
The Euroskeptic crowd vows to keep calm and carry on as Britain sinks into the sea.
Isolbel Thompson – Vanity Fair
In attempting to drum up parliamentary support for her unloved Brexit deal, Theresa May has at times taken on the tone of a world-weary parent whose child is mid-tantrum in a grocery-store aisle.
bit.ly/2Qnw8jw

British banks withstand disorderly Brexit in Bank of England test
Huw Jones, David Milliken – Reuters
All seven British banks and building societies in this year’s Bank of England stress test passed, indicating they could withstand a disorderly Brexit without having to curb lending.
/reut.rs/2Qoyb6U

Miscellaneous
Three Factors That Could Undercut U.S. Farmland Values
Erik Norland – CME Group
Over the past century, U.S. farmers lived through two major crises, in the 1920s & 1930s and the 1980s. The latter occurred during a period of depressed prices for corn, soybean and wheat and a dramatic tightening of monetary policy. Inflation-adjusted farmland prices fell by over 40% during the 1980s and the Farm Credit System experienced large losses, which contributed to the stress of Savings and Loans (S&L) institutions as well as some medium and larger-sized banks.
/goo.gl/3ET8dx

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