Breaking News

JPMorgan develops robot to execute high-speed trades; London Metal Exchange – what’s next for the new lord of the ring?; The Great Corn Clash Is Coming as U.S., Brazil Farmers Face Off

First Read

Hits & Takes
By JLN Staff

Today we share with you the remembrances of several industry colleagues of the late Magnus Bˆcker on his life and the impact it had on them and our markets. We hear from Craig Donohue of OCC, Sutat Chew and Michael Syn of SGX, Adena Friedman of Nasdaq, Walt Lukken of the FIA, Nandini Sukumar of WFE, Phupinder Gill (formerly of CME Group), Nils-Robert Persson of Cinnober and Terry Duffy of the CME Group.~JJL

Jim Kharouf is on a well-deserved vacation this week with his family. John Lothian has returned from Boy Scout summer camp with the same number of Scouts he left with.~JJL

U.S. President Trump had a tough week last week. Steve Chapman of the the Chicago Tribune, a paper once a stalwart of the Republican party, has written an opinion column titled “Donald Trump is a profoundly incompetent president.” CNN presidential historian Douglas Brinkley said in an interview that Donald Trump is unfit for command.” Lastly, the Observer from London wrote “The incompetence and infighting at the White House dismay America’s allies and encourage its enemies,” in a chilling editorial.~JJL

John Lothian News will be shooting video interviews during the Securities Traders Association 84th Annual Market Structure Conference in Washington, DC on September 13 to 15.~JJL

Early-bird tickets to Rocktoberfest NYC have been extended to August 15, 2017. Get the tickets here.~JJL

We are releasing videos of two TED-style talks from the JLN FOW Trading Chicago event. Brian Peterson, partner at DV Trading, talked about machine learning and Chris Anderson, senior product manager at Itiviti, spoke about ETFs. Check them out below. ~SD

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What Education Does: How The Financial Industry Can Shape Young Minds And Our Industry’s Future
Jim Kharouf, JLN – Trading Technologies Blog
MarketsWiki 2017 Session 4
Last week, we hosted one of the MarketsWiki Education World of Opportunity Chicago events at Trading Technologies. Our own CFO/CCO Michael Kraines spoke to the crowd about the prospects of a vibrant career in Chicago fintech. This event marks a summer highlight for TT interns as well as interns and young professionals associated with other companies in the Chicago capital markets industry.
/goo.gl/F9MmKg

**** Jim’s editorial about education with some added context from TT.~SD

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The Best Books on Financial Market History
Ben Carlson – A Wealth of Common Sense
Earlier this week I wrote (again) about the importance of understanding financial market history. This prompted a few people to ask for some of my favorite books on the topic. Here goes:
/goo.gl/FyjKH9

***** Since my son Robby has mined Etherium and converted it to Bitcoin, I have decided to give him a copy of “Extraordinary Popular Delusions and the Madness of Crowds” by Charles Mackay.

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Understanding the Evolving ETF Landscape
JohnLothianNews.com

At Trading Chicago presented by FOW and John Lothian News, Chris Anderson, senior product manager at Itiviti, gave a comprehensive TED-style talk about the booming ETF business and where it’s headed. If you have a gap in your knowledge of ETFs, this video ought to fill it.
Watch the video »

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Machine Learning in Trading
JohnLothianNews.com

At Trading Chicago presented by FOW and John Lothian News, Brian Peterson, partner at DV Trading, gave a TED-style talk about machine learning. It’s quite the buzzword of late and Peterson delineates how it is different from other related fields and what it can bring to your trading toolbox.
Watch the video »

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A People and Industry Brief: Talking Derivatives at DePaul University
Brett Ladendorf, CAIA via LinkedIn
Futures market intermediaries and service providers attended the 4th annual #NIBA / #DePaul University Symposium last week. It was a great opportunity to catch up with former colleagues and acquaintances while listening in on some invaluable discussions from compliance and allocation professionals..
/goo.gl/dvPHz7

***** Brett Ladendorf wrote about the symposium I gave the keynote speech at two weeks ago.~JJL

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The Observer view on Donald Trump’s unfitness for office; The incompetence and infighting at the White House dismay America’s allies and encourage its enemies
Observer editorial – The Guardian
The sense of things falling apart in Washington is palpable – and a matter of growing, serious international concern. Donald Trump’s latest asinine act of gesture politics, the forced resignation of his chief of staff, Reince Priebus, has shone a spotlight on the extraordinary chaos inside the White House. Even normally sober, experienced Washington observers now refer to the West Wing as a viper’s nest of seething rivalry, bitter feuds, gross incompetence and an unparalleled leadership vacuum.
/goo.gl/7rPdN6

***** The ending sentences are chilling. “This uncertainty, like the chaos in the White House and the extraordinary disarray of the American body politic, stems from Trump’s glaring unfitness for the highest office. As is now becoming ever plainer, this threatens us all.”~JJL

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Bridging the Week by Gary DeWaal: July 24 to 28 and July 31, 2017 (Bitcoin Derivatives Clearinghouse; Digital Tokens for Fund-Raising; Bitcoin Alleged Criminal Activity; Spoofing; Reg MAR)
Katten Muchin Rosenman LLP
Developments concerning digital tokens highlighted news in financial services this week. For the first time, a derivatives clearing organization – LedgerX – was licensed by the Commodity Futures Trading Commission to clear fully collateralized swaps contracts that could settle in digital currencies including Bitcoin. Separately, the Securities and Exchange Commission ruled that digital tokens issued to raise funds for projects might be securities under US law. Finally, BTC-e, a digital currency exchange, and Alexander Vinnik, who purportedly directed its operations and finances, were indicted for allegedly operating an unlicensed money services business and engaging in money laundering. Additionally, the CFTC brought a me-too enforcement action against a defendant for alleged spoofing trading activity more than two years after two CME Group exchanges resolved disciplinary actions for the same conduct – is this the most meaningful and cost-effective way of prosecuting purported wrongful behavior? As a result, the following matters are covered in this week’s edition of Bridging the Week:
/goo.gl/TetRjz

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Friday’s Top Three
You don’t have to look very hard these days to find a cryptocurrency related headline, but Friday’s was an important one – U.S. Targets Bitcoin Exchange, Alleging It Facilitated Crime. Then there was a list because everybody loves lists – The 2017 Tech 40. In third was Boy Scouts Apologize Over President Trump’s Remarks at Jamboree.

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MarketsWiki Stats
105,299,552 pages viewed; 22,632 pages; 207,310 edits
MarketsWiki Statistics

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Lead Stories

JPMorgan develops robot to execute high-speed trades; Trial shows AI is more efficient than traditional methods of buying and selling
Laura Noonan – FT
JPMorgan will soon be using a first-of-its-kind robot to execute trades across its global equities algorithms business, after a European trial of the bank’s new artificial intelligence (AI) programme showed it was much more efficient than traditional methods of buying and selling.
/goo.gl/GFtKRo

London Metal Exchange: what’s next for the new lord of the ring?
Lucy Burton – Telegraph
When investment banker Matthew Chamberlain was advising on the historic sale of the London Metal Exchange five years ago, he had no idea that by the age of 34 he’d become its boss.
/goo.gl/q15igV

The Great Corn Clash Is Coming as U.S., Brazil Farmers Face Off
Tatiana Freitas and Megan Durisin – Bloomberg
Growers collecting bumper harvests will compete for buyers; Funds added to bullish bets before prices reached 1-month low
The world’s biggest corn exporters are preparing for a showdown. Brazilian farmers are in the midst of collecting their biggest corn harvest ever and American supplies are also plentiful — setting the stage for a stiff battle to win world buyers in the second half of the year.
/goo.gl/tnecjR

Intercontinental Exchange to Launch New London Silver Daily Futures Contract; Facilitates Central Clearing for the LBMA Silver Price Auction
ICE
Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced that ICE Futures U.S. plans to launch a new London Silver Daily Futures contract on September 5, 2017, pending regulatory review. The contract offers physical delivery of unallocated silver held in a London Precious Metals Clearing Limited vault.
/goo.gl/c7AkZU

Chicago could get new open-outcry trading floor, even as frenzied trading declines
Gail MarksJarvis – Chicago Tribune
Over the last decade, the frenzied screaming and hand-waving on exchange trading floors has started to go the way of the horse and buggy.
/goo.gl/YQe6ho

Trump Eyes Columbia Professor for SEC Seat; White House is preparing to tap Robert Jackson for Democratic slot, though selection process could still change
Andrew Ackerman – WSJ
The White House is preparing to nominate Columbia University law professor Robert Jackson to a Democratic slot on the Securities and Exchange Commission, according to people familiar with the matter.
/goo.gl/LpSmUh

This Chicago investment shop is winning the talent war
Lynne Marek – Crain’s Chicago Business
After raising nearly $10 billion from investors, Byron Trott is on a hiring spree. His Chicago private-equity firm, BDT, has recruited more than 100 employees in recent years to raise its hea…
/goo.gl/w1bbEv

If everyone is robo-advisor then no one is a robo-advisor
Joshua Brown – The Reformed Broker
Meanwhile, as standalone robos have matured, they have turned to humans for help. In January, Betterment began offering human advice for a higher fee. And last week, the firm turned on a messaging service in which all of its customers can reach out to real advisors for any investing or financial-planning questions, with a response in one business day.
/goo.gl/7JtgXR

When So Much Is Owed to So Few in an Aging Equity Bull Market
Lu Wang – Bloomberg
The risk of concentrated gains in a handful of high P/E stocks; How an imbalance of power is status quo every year in S&P 500
The U.S. equity market in 2017 has often seemed like the world’s most expensive Jenga tower. Pull out the wrong piece, and the whole thing might crash to the ground.
/goo.gl/RvuYug

From refugee to one of asset management’s ‘smartest men’; Insight Investment’s chief executive talks survival strategies for small fund houses
Attracta Mooney – FT
Abdallah Nauphal was a teenager when he fled Lebanon in 1978 to escape the country’s brutal civil war, a route hundreds of thousands of his fellow citizens would take over the 15-year conflict.
/goo.gl/wxcdLN

Exclusive: MSCI warns Chinese companies about suspending trading of shares
Samuel Shen and John Ruwitch – Reuters
Barely a month after approving the inclusion of Chinese shares in its benchmark emerging market index, MSCI is warning that companies in China that suspend trading in their shares for too long risk being dropped.
/goo.gl/cRWD3U

The Biggest Worry for British Bankers Isn’t Brexit; The financial sector would like to ignore the Labour Party leader. But if he one day takes power, they’ll wish they had been better neighbors.
Therese Raphael – Bloomberg
Can bankers make their peace with him? Photographer: Chris J. Ratcliffe/Getty Images
It’s no wonder they never talk: One wears neatly tailored suits of superfine Italian wool; the other is so anti-fashion that his uniform of choice — flat caps, mismatched suits and anything beige — prompted hand-wringing from British Vogue. U.K. Labour leader Jeremy Corbyn’s Islington constituency is on the doorstep of the City of London, Britain’s financial heart, but these neighbors have little in common. That will have to change.
/goo.gl/qWGkEC

‘Big Short’ fund manager says financial system is safe; Steve Eisman believes post-crisis regulation should avert future systemic problems
Attracta Mooney – FT
Steve Eisman, the US investor who successfully predicted the subprime crisis and was portrayed on screen in The Big Short, the Oscar-winning film, says the world’s financial system is safer than it has been for decades.
/goo.gl/QyU42u

Libor’s US owners to fight UK plan to scrap the interest benchmark
Tim Wallace – Telegraph
The US financial giant behind Libor intends to keep the interest rate benchmark open for good despite UK regulators’ plans to bring the system to an end.
/goo.gl/hGeSUr

Exchanges, OTC and Clearing

Deutsche Boerse’s Kengeter in close contact with LSE in run-up to merger talks: Der Spiegel
Reuters
Deutsche Boerse’s (DB1Gn.DE) Chief Executive Carsten Kengeter, who is under investigation for insider trading, frequently met and spoke by telephone with his London Stock Exchange counterpart in the months before they announced official merger talks, Der Spiegel magazine reported on Friday.
reut.rs/2tQbMVo

CBOE Holdings Declares Increased Third-Quarter 2017 Dividend
CBOE
Quarterly Cash Dividend Increased to $0.27; 7th Consecutive Year CBOE Holdings Increased Dividend
CBOE Holdings, Inc. (BATS: CBOE | NASDAQ: CBOE) today announced its Board of Directors declared an increased quarterly cash dividend of $0.27 per share of common stock for the third quarter of 2017, representing an 8 percent increase compared with the prior quarter’s dividend of $0.25 per share. The third-quarter dividend is payable on September 15, 2017, to common stockholders of record as of September 1, 2017.
/goo.gl/qWWFXd

Nasdaq Futures Elects Board Directors
GlobeNewswire
Nasdaq, Inc. (Nasdaq:NDAQ) announces the appointment of nine directors to Nasdaq Futures, Inc. Board. Directors will serve a one-year term.
/goo.gl/vN49rd

Japan Exchange Group, Inc. And Consolidated Subsidiaries Consolidated financial Results For The Three Months Ended June 30, 2017 (Based On IFRS), Unaudited
JPX
/goo.gl/APyG1b

Report on Initial Public Offering Applications, Delisting and Suspensions (As at 31 July 2017)
HKEX
/goo.gl/2nncFA

Integral Introduces New Upgrades to Open Currency Exchange (OCX); A new selling point of the OCX is integration with Integral’s BankFX, MarginFX, and InvestorFX offerings.
Aziz Abdel-Qader
Silicon Valley-based Integral Development Corp., a provider of end-to-end electronic trading platforms, has introduced a new set of features to the company’s Open Currency Exchange (OCX).
/goo.gl/GKbpPT

Fintech

Bitcoin Just Avoided a Massive Breakup, But It’s Getting a Little One Instead
David Z. Morris – Fortune
The Bitcoin community has finally done what for years seemed impossible, pulling together to approve a software upgrade, known as Segwit2x, intended to increase network capacity. That has forestalled the looming threat of a potentially damaging “fork” that could have split the network.
/goo.gl/vr2x3J

Blockchain: Will it ever be as big as the buzz?; We need to see clear value before we begin overhauling the financial sector’s well established infrastructure, writes Mark Buitenhek
Mark Buitenhek, Global Head of Transaction Services, ING Bank via London School of Economics and Political Science
If we look at the Gartner’s “Hype Cycle for Emerging Technologies”, the rapid ascent to peak expectation, before the equally swift fall into the trough of disillusionment, for a lot of hot new technologies is hard and fast. But for blockchain, we are still teetering at the tipping point, as we have been for a while now, as the industry awaits the confirmation that distributed ledger technology is really going to revolutionise financial services.
/goo.gl/zQzQdq

Bitcoin investors: Things may get very ugly soon, if this chart overlay is right
Shawn Langlois – MarketWatch
Bitcoin’s going through the “return to normal” stage
Bitcoin took another hit last week, making it back-to-back losses for a digital currency that soared above $3,000 just last month before dipping below $2,500. Despite the recent weakness, bitcoin is still up almost fourfold from a year ago as the crypto market continues to emerge from the shadows.
/goo.gl/NvYZah

Wind farms and factory robots at risk from hackers, experts say; Cyber security researchers expose new vulnerabilities that ransom-seekers may exploit
Hannah Kuchler – FT
Robots that work alongside humans on factory floors and whizzing turbines that power wind farms are at risk of attack from ransom-seeking hackers, according to cyber security researchers exposing new vulnerabilities.
/goo.gl/ZodK62

Blockchain: Saved by the Enterprise
Terry Roche, TABB Group
Blockchain, aka Distributed Ledger Technology (DLT), has the power to transform the most fundamental foundation of capital markets: the transaction. But for DLT to transform the capital markets ecosystem, it will need to operate within that ecosystem. For the capital markets to fully embrace the technology, DLT providers need to embrace enterprise technology, creating an ecosystem of functionality, according to TABB’s Terry Roche. Download a complimentary copy of his latest research report, below, to learn more.
/goo.gl/6mubyr

Metamako accelerates growth in first half of 2017
Metamako
Metamako has announced today that the first half of 2017 has seen continued rapid growth, driven by significant new product launches and the adoption of its platforms by a number of partners in areas such as regulation and compliance. The leading provider of FPGA-enabled high-performance networking devices has significantly increased its client base in 2017, with growth driven by an expanding set of use-cases, for example the increased need for highly-accurate data capture and timestamping, FPGA technology and RegTech/compliance.
/goo.gl/dcdxv4

Fidessa group announces interim results
Fidessa
/goo.gl/FNXUDn

Cloud9 Technologies Reaches for Perfection in Trader Voice Transcription; Cloud9 develops solution with quantify and Google Voice that will help to transcribe traders’ voices within milliseconds.
Colin Firth
Cloud9 Technologies, a cloud communications service provider that delivers voice and collaboration services for institutional traders, has announced the development of a voice trading transcription solution which deciphers trader talk.
/goo.gl/TQJ76z

Politics

Column: Donald Trump is a profoundly incompetent president
Steve Chapman – Chicago Tribune
What do the directors of the Transportation Security Administration, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI have in common? Easy question, you may think: They are all important law enforcement officials with roles in combating terrorism. But at the moment, they have nothing in common. Why? Because they don’t exist.
/goo.gl/CgxYFk

Brinkley: Trump is ‘unfit for command’
Reliable Sources – CNN
Author and CNN presidential historian Douglas Brinkley says the Trump White House is in “utter disarray” and concludes that the president is “unfit for command.” His message: “He thinks you can govern by chaos, and it’s not working.”
/goo.gl/QwRE9e

Regulation

SEC: Opening Remarks At The National Compliance Outreach Program For Broker-Dealers
SEC
Thank you, Pete [Driscoll], for that kind introduction. Good morning and welcome to this year’s National Compliance Outreach Program for Broker-Dealers.
/goo.gl/9cUaUX

Alleged bitcoin fraud ‘mastermind’ sought by U.S. held in Greek prison
Angeliki Koutantou – Reuters
A Russian national suspected of masterminding a money-laundering operation using bitcoin was transferred to prison in Greece on Friday, while the United States prepares documentation to back an extradition request for him.
/goo.gl/Gb7LTa

Banks settle currency manipulation claims for $111m
Tim Wallace – Telegraph
Five more banks have agreed to pay a total of $111m to settle claims that they manipulated currency markets, as the foreign exchange scandal continues to haunt the finance industry.
/goo.gl/4kfWTD

Hong Kong’s regulator should set a standard for qualifying valuers, brokers and accountants say
Enoch Yiu – South China Morning Post
Hong Kong’s Securities & Futures Commission should issue standards for qualifying the valuers of non-property assets such as brand names in mergers and acquisitions, following a similar move by US regulators, said the city’s brokers and financial industry experts.
/goo.gl/H5DgeZ

Firm ran Ponzi scheme by claiming Jay-Z connections
Kaja Whitehouse – NY Post
A Long Island firm lied about having ties to Jay-Z’s entertainment company Roc Nation to bilk investors out of $70 million in a Bernie Madoff-style scheme, according to court papers and alleged victims.
/goo.gl/LbguiN

Investing and Trading

Russell’s ‘line in the sand’ against Snap could give investors more control
Caitlin Huston – MarketWatch
FTSE Russell is trying to make sure investors have their say in how companies are run.
/goo.gl/r4YLsK

A Plan to Fill the Massive Gender Gap in Asset Management; Nonprofit group Girls Who Invest looks to fill industry job pipeline with more women candidates
Geoffrey Rogow – WSJ
State Street Global Advisors has a plan to improve gender diversity on corporate boards. A New York City group is focusing on getting women in the pipeline first.
/goo.gl/ktmNrY

Asset Managers: Spending Money to Make Money; Investment giants need to spend money now to stay on top of trends that threaten their future
Aaron Back – WSJ
Prominent asset managers fell back to earth last week as the fundamental challenges they face resurfaced.
/goo.gl/CzcsHC

Private Equity Takes Fire as Some Retailers Struggle; Vendors, landlords argue investors spurred companies to borrow heavily, accelerating their decline
Lillian Rizzo – WSJ
A wave of retail bankruptcies washing through court has revived an old debate about the role of private-equity firms in accelerating the problems of companies in distress.
/goo.gl/sXSMqJ

Pimco pulls in $50bn active cash as investors drawn to new star; ‘Remarkable’ turnround since departure of founder Bill Gross in 2014
Attracta Mooney – FT
Pimco has staged a “remarkable turnround” to become the world’s best-selling active mutual fund manager, after investors pulled hundreds of billions of dollars from the investment house following the departure of bond king Bill Gross in 2014.
/goo.gl/3hwPwR

The Bond Market’s Cruel Summer; Mario Draghi and greedy borrowers should keep investors well away.
By Marcus Ashworth – Bloomberg
The corporate bond market in Europe has been a whirl of activity this year, as low rates attract a range of borrowers. The fun’s about to wind down, and it’s not just the typical summer lull.
/goo.gl/J2ZdPf

Please Stop Talking About the VIX So Much
AQR
If anyone reading this has always meant “recent realized return volatility” when commenting on the VIX, and has never attached much importance to it beyond that, please stop reading as the below has little point for you. But if you think the VIX is much deeper than that, read on!
/goo.gl/ecLv5m

Institutions

The Bust Never Ended for Wall Street’s Most Crisis-Scarred Banks
Yalman Onaran – Bloomberg
Shares of Citigroup, BofA still below pre-crisis levels; Largest U.S. banks doubled capital levels over past 10 years
Ten years ago today a pair of Bear Stearns Cos. hedge funds that had gorged on subprime mortgage securities filed for bankruptcy, becoming the canaries in the coal mine for the global financial system that collapsed 15 months later.
/goo.gl/i94UuY

Banks must face interest rate swap class action: U.S. judge
Jonathan Stempel – Reuters
A U.S. judge on Friday said investors may pursue part of their nationwide antitrust lawsuit accusing 12 of the world’s biggest banks of conspiring to rig the $275 trillion market for interest rate swaps
/goo.gl/LxGuQZ

Europe’s Banks Are Getting Killed by Calmness
Lionel Laurent – Bloomberg
The election of Emmanuel Macron in France vindicated euro optimists, boosted stock markets and paved the way for lenders like Deutsche Bank AG and Credit Suisse Group AG to raise extra capital.
/goo.gl/KMDuJg

Your Banker Is Always In: Sweden Rolls Out the Robots
Hanna Hoikkala and Niklas Magnusson – Bloomberg
Sweden’s biggest banks are pioneering new AI technology; Chatbots are starting with less complex customer services
Aida is the perfect employee: always courteous, always learning and, as she says, “always at work, 24/7, 365 days a year.”
/goo.gl/9eiUnF

HSBC’s fresh $2bn buyback pledge affirms turnround story; Rising rates in HK position bank for another substantial lift, says Gulliver
Martin Arnold and Don Weinland – FT
HSBC has announced a $2bn share buyback in 2017, raising the amount of total stock it has pledged to buy during the past year to $5.5bn and underlining a recent rebound in its performance.
/goo.gl/dq4Hrr

Regions

Businessman Paints A Terrifying And Complex Picture Of Vladimir Putin’s Russia
Miles Parks – NPR
William Browder knows Vladimir Putin’s Russia all too well.
Browder made a fortune in Russia, in the process uncovering, he says, incredible amounts of fraud and corruption. When he tried to report it to authorities, the government kicked him out of the country and, he alleges, tortured and killed the lawyer he was working with.
In what one senator called one of the Senate Judiciary Committee’s “most important” hearings, Browder, a wealthy businessman-turned-activist-turned Putin-adversary shed a chilling new light on a Russian system of government that operates ruthlessly in the shadows ó as Browder described it for lawmakers: a “kleptocracy” sustained by corruption, blackmail, torture and murder with Putin at its center.
n.pr/2tR9IIG

Hong Kong’s Securities And Futures Commission: Court Ordered Insider Dealer Sun Min To Pay $15.6 Million To Investors
Mondovisione
The Court of First Instance has ordered Ms Sun Min to pay the restoration amount of $15,629,341 to 51 investors affected by her insider dealing in China Huiyuan Juice Group Limited (Huiyuan) shares (Notes 1, 2 and 3).
/goo.gl/qbofvB

Hong Kong tycoons seeking UK investments must go with eyes wide open
Peter Guy – South China Morning Post
Hong Kong families seeking diversification need to understand that they may be entering a hazardous economic, social and property cycle in Britain.
/goo.gl/oR1111

Share Buybacks Return to 2008 Levels for Hong Kong; Latest stock repurcahse may come from HSBC Monday
Justina Lee – Bloomberg
Hong Kong-listed companies are repurchasing more of their own shares. Estimated buybacks reached HK$25 billion ($3.2 billion) this year through July 25, the highest for the period since 2008. Analysts expect HSBC Holdings Plc to unveil a new buyback program when it announces results Monday.
/goo.gl/gTXMHF

Canada’s Loonie Takes Flight; Currency gains momentum, rising about 10% against U.S. dollar since early May
David George-Cosh – WSJ
The Canadian dollar is on a tear, and traders and investors are betting it will remain strong.
/goo.gl/5t4PrQ

South Africa’s stock market defies recession, scales record highs
Ed Stoddard and TJ Strydom – Reuters
South Africa’s main stock index scaled a record high on Monday, underscoring the market’s disconnect from an economy mired in recession, hobbled by damaging ratings downgrades, and still largely defined by apartheid’s income inequalities.
/goo.gl/3cErYt

How China’s biggest bank became ensnared in a sprawling money laundering probe
Angus Berwick and David Lague – Reuters Investigates
Part 1: When Chinese residents of Spain needed to get piles of illicit cash back home, police allege, they found an accomplice in the Industrial and Commercial Bank of China. Confidential court filings, including wiretap transcripts, detail how the bank allegedly helped launder hundreds of millions of euros.
/goo.gl/dkxGBC

China Bond Buyers Quiz Taxi Drivers to See If Credit Good
Bloomberg News
Poor disclosure practices in China leave need for field trips; Without doing legwork, investors ‘may step on a land mine’
/goo.gl/h6o1p4

Global Banks Are Said to Shift Qatar Business From Dubai Hub
Archana Narayanan and Zainab Fattah – Bloomberg
Bankers in London, New York are now servicing Qatari clients; Dubai’s DIFC is the Gulf region’s main financial center
Some international banks are serving Qatar from London and New York instead of Dubai’s financial center as a regional dispute makes it harder to do business with clients in the gas-rich Gulf state, according to people familiar with the matter.
/goo.gl/dU6wZY

Brexit

Japan’s Mizuho chooses Frankfurt for post-Brexit EU hub
Reuters
Japan’s Mizuho Financial Group said it would set up a subsidiary in Frankfurt, the latest Japanese bank to choose the German city as its new base in the European Union as Britain prepares to leave the bloc, termed Brexit.
/goo.gl/8KZVt1

Neil Kinnock urges Jeremy Corbyn to retain membership of the single market for Brexit transition period; Last week the Labour leader said: ‘The single market is dependent on membership of the EU’
Ashley Cowburn – Independent
‘The only way to mitigate the dreadful instability … is to try to ensure that, at least for a transitional period, we retain participation in the single market or the customs union, or both’ Getty
Former Labour leader Neil Kinnock has urged Jeremy Corbyn to retain membership of the single market at least for any transitional period, amid a lack of unity within the party over its position on Brexit.
/goo.gl/bRq9Ed

Luxembourg’s Prime Minister warns of a £54bn Brexit ‘divorce bill’; Xavier Bettel added: ‘It is now time for the European Union to make an analogy with the famous quote of Mrs Thatcher, ‘We want our money back”
Ashley Cowburn – Independent
Xavier Bettel, the Prime Minister of Luxembourg, has warned Britain could face a Brexit “divorce bill” of more than £50bn.
/goo.gl/4BF3kp

City economist and ex-Boris Johnson advisor Gerard Lyons wants a two-year Brexit transition period
Lynsey Barber – City AM
Tick tock: Two years is the ideal transition time period for Gerard Lyons (Source: Getty)
A top City economist who backed Brexit and is an ex-advisor to Boris Johnson has called for a Brexit transition period lasting two years
/goo.gl/fs9sTQ

European Brexit battle heats up: London set to continue outpacing biggest rivals despite efforts to claw away City jobs
William Turvill and Catherine Neilan – City AM
London will continue to outpace its biggest financial rivals in Europe despite increased EU efforts to claw at the City’s supremacy.
/goo.gl/bk4g3M

MUFG eyes Amsterdam as post-Brexit EU base; European capitals vying to snap up lost London business
Martin Arnold, Banking Editor – FT
MUFG, Japan’s biggest bank, plans to choose Amsterdam as the new EU base for its investment banking operations to cope with the disruption of Brexit, according to two people briefed on the situation.
/goo.gl/CQZqdA

U.K. Customs Checks Could Cost $1.3 Billion a Year Post-Brexit
Lucy Meakin – Bloomberg
Estimate ‘extremely conservative,’ costs likely higher: Oxera; Says policy cannot be a last-minute deal on eve of Brexit
Customs checks at the border after the U.K. leaves the European Union could cost 1 billion pounds ($1.3 billion) a year and cause delays for goods being shipped in both directions, according to a report by Oxera, an economic consultancy.
/goo.gl/Ezo7ng

HSBC Sees Brexit Costing $300 Million in Legal and Relocation Fees
Stephen Morris – Bloomberg
Amount is estimated cost of moving 1,000 staff to Paris; Bank took $4 million charge for legal fees in second quarter
HSBC Holdings Plc faces as much as $300 million in legal and relocation fees as it prepares to move 1,000 staff to Paris, in one of the first indications of the cost of Brexit to the U.K.’s financial industry.
/goo.gl/f4vFE2

Miscellaneous

Facebook’s Sandberg calls for new policies to boost women’s pay
Reuters
Facebook Inc Chief Operating Officer Sheryl Sandberg called on governments and companies to do more to close the gender pay gap on Sunday and said both girls and boys should be encouraged to become leaders from an early age.
/goo.gl/4gtHJQ

Journalists at the Financial Times ‘preparing to strike’ over gender pay gap; ‘It’s time for the Financial Times to put its money where its mouth is’
Rachel Roberts – Independent
Journalists at the Financial Times are reportedly preparing to go on strike over the newsroom’s gender pay gap following the huge row at the BBC.
/goo.gl/crZJtL

Hacker Cracks Voting Machine in Less Than 2 Hours; At demonstration to test security of election technology, a computer specialist exploits an old Windows XP flaw
Robert McMillan and Byron Tau – WSJ
A touch-screen voting machine used in a 2014 election in Virginia was hacked in about 100 minutes by exploiting a Windows XP flaw that was more than a decade old as part of a demonstration on security vulnerabilities in election technology.
/goo.gl/9EPu3X

Crisp dry weather leaves hop buyers fearing bitter harvest; Craft beer boom and a dry summer in Germany leave merchants on tenterhooks
Emiko Terazono – FT
Drought in Germany, the world’s top producer and exporter of bittering hops, has left brewers and hops merchants on tenterhooks ahead of this year’s harvest of the ingredient that gives beer its refreshing bite.
/goo.gl/EBDo2C

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Graduate of University of Minnesota School of Journalism and Mass Communication