Breaking News

If Faith in Democracy Ebbs, Danger Rises

First Read

Hits & Takes
JLN Staff

Today we begin the MarketsWiki Education World of Opportunity series in New York at Thomson Reuters. Thank you to our sponsors, Thomson Reuters, Nasdaq, Cboe Global Markets, CME Group and The IFM, for helping us put on this series.~JJL

Steve Ditko, the comic-book artist who helped create Spider-Man, died at the age of 90. I am big Spider-Man fan and I guess my kids are too. When my daughter called Friday to tell me she was headed to the hospital in West Virginia with a spider bite, my son Robby’s reply to his sister was “Have you turned into Spider-Man yet?”~JJL

To our tie wearing readers – if you wear your Windsor knot a bit snug, it is likely cutting off some circulation to your brain. ~SD

We are looking for a guest editor for the week of July 23-27 when I am away at Boy Scout summer camp. If you are interested or have a suggestion of someone, please let me know.~JJL

Our most read story of the year so far is “FCMs Big And Small Suffer Major Losses On Latest Black Monday.’~JJL

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LSEG launches collaboration initiatives in Japan
London Stock Exchange Group
LSEG and JPX agree to identify and collaborate on initiatives to promote global sustainable investment; LSEG launches Japan Advisory Group comprised of senior Japanese business leaders; Both initiatives designed to further promote the close ties between UK and Japan
London Stock Exchange Group (LSEG) and Japan Exchange Group (JPX) are delighted to announce that they have agreed to identify and collaborate on financial market infrastructure initiatives designed to promote global sustainable investment and on product marketing initiatives.
/jlne.ws/2m3fchp

**** The LSE has a great history, present and future.~JJL

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FIA IDX 2018 – The LIBOR Transition

JohnLothianNews.com
LIBOR, a key benchmark for short-term lending between banks, has had its reputation sullied in the wake of rigging scandals. Now, markets are struggling to find proper replacements. SONIA, a sterling interest rate replacement, is live. In this video, CurveGlobal CEO Andy Ross talks about how futures markets are adapting to the transition and what tools are available to aid with the switch.

Watch the video here »

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Why America’s cheese capital is at the center of Trump’s trade war
Dominic Rushe – The Guardian
Plymouth, Wisconsin, styles itself as “the cheese capital of the world”. The town of 8,445 people, about an hour north of Milwaukee, was once the site of the National Cheese Exchange where cheese commodity prices were set and today about 15% of all US cheese passes through the town.
Now Plymouth residents are worried they will become one of the first big victims of Donald Trump’s escalating trade war. In retaliation for his administration’s tariffs on steel and aluminium, the US’s largest trading partners, Canada, China, the EU and Mexico, have all targeted the cheese industry with regulations and extra duties and this week raised the stakes, adding more duties as the threat of an all-out trade war grows.
/jlne.ws/2KTVSBf

***Stat from the story: The US already has more cheese in cold storage than any time since records began in 1917. According to another story, that equals almost 1.4 billion pounds of surplus cheese. ~SR

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The CFTC Intervenes to Prevent Moral Hazard in the CDS Market – But Why the CFTC?
Craig Pirrong – Streetwise Professor
The WSJ reports that the CFTC engaged in extraordinary efforts to prevent manipulation of the CDS market by Blackstone Group. Blackstone had bought about $333 million in protection on homebuilder Hovnanian, and then extended a low-interest loan to the company to induce it to make a technical default on debt the company itself owned (having bought it back). The CFTC caught wind of this, and put on the full court press and eventually, uhm, persuaded (by intimating that it considered such behavior manipulative) Blackstone to negotiate an exit from the CDS with its counterparties.
/jlne.ws/2m51BWG

***** The CFTC did the right thing.~JJL

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Nikkei Index Options & Futures

The real Downton Abbeys; Even with healthy revenue from weddings or tours, big country houses devour cash, so how and why do owners do it?
Sandy Mitchell – FT
Blonde, groomed, glamorous, the woman in dark, full-length silk at a rain-battered party on a Friday evening on the endless lawns of a country house was ebullient.
/jlne.ws/2ug9QTK

***** Great examples of entrepreneurship in this story.~JJL

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Cryptocurrencies; Fiat Currencies; Trust; Fraud; Jurisdiction; Administrative Law Judges
Gary DeWaal – Bridging the Week
Last week, the Bank for International Settlements strongly criticized cryptocurrencies, claiming that trust in digital tokens could disappear at any time because of the “fragility of the decentralized consensus through which transactions are recorded.” Moreover, BIS said that if cryptocurrencies are successful, their use could crash the Internet. BIS contrasted the instability of cryptocurrencies with the general stability and global acceptance of fiat currencies and current payment mechanisms. Venezuelan bolivars anyone? Separately, the Commodity Futures Trading Commission requested a federal appeals court to review and reverse a recent adverse decision against it potentially undercutting its authority to bring fraud cases against persons transacting in commodities where no derivatives are involved and even where leveraged commodity transactions involving retail persons are at play.
/jlne.ws/2KUMP2J

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Friday’s Top Three
Our top read stories on Friday were led by Bloomberg’s World’s Largest Crypto Exchange Eyes $1 Billion Profit Amid Rout. Second went to the obituary of Darin Diller. Third went to the FT’s Swiss bourse launches cryptocurrency platform; Six digital exchange to offer deal settlement and asset custody services

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MarketsWiki Stats
129,268,918 pages viewed; 23,175 pages; 213,909 edits
MarketsWiki Statistics

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Lead Stories

If Faith in Democracy Ebbs, Danger Rises; In today’s divisive political climate, signs of a decline in confidence in democracy itself are starting to appear
Gerald F. Seib – WSJ
Important as civility in public life is, something even more important appears to be imperiled in today’s charged political climate: faith in democracy itself. During his 2016 presidential campaign, President Donald Trump repeatedly told his followers the electoral system was rigged. He declared that the Republican primary system was rigged against him, that the Democratic primary system was rigged, and that polling places would be rigged in the general election.
/jlne.ws/2ug7NPy

R.J. O’Brien Appoints Joseph Raia Managing Director, Global Commodity Futures in New York
Markets Insider
Chicago-based R.J. O’Brien & Associates (RJO) announced today that Joseph B. Raia has joined its New York office as Managing Director, Global Commodity Futures.
/jlne.ws/2L17um9

How Regulators Averted a Debacle in Credit-Default Swaps; The CFTC waged an unusual campaign to get Blackstone to unwind its bet on the default of home builder Hovnanian
Gabriel T. Rubin and Andrew Scurria – WSJ
When Blackstone Group BX 1.14% LP made a bet that shook confidence in the credit derivatives market, U.S. regulators waged an unusual campaign to pressure the investment firm to back down.
/jlne.ws/2ueomeB

U.S. Exporters Will Be a Surprise Loser From Tariff Fight; Economics and trade history show that as a country shuts out its partners’ products, it also deprives those partners of money to buy its exports
Greg Ip – WSJ
Who’s the biggest loser when tariffs are imposed on imports? The surprising answer: exporters. Though completely counterintuitive, theory and evidence show that taxes on imports act just like a tax on exports.
/jlne.ws/2zmArEt

Another Option (Literally) for Trading with TT: Introducing Options on TT
Bernie Schwartz – TT
Last month, buried far beneath headlines on widely covered legislative battles, a relatively minor bill quietly made its way out of the U.S. House Financial Services Committee and onto the House floor. The Options Markets Stability Act, if passed, will allow financial institutions to use more sophisticated methods of risk calculation when assessing exposure on positions in derivatives, and particularly in options. While that’s certainly not the most thrilling introduction, the effect of measures like this will be to essentially allow for greater liquidity and more market making across options markets. Now that could be exciting.
/goo.gl/BVzPUd

Traders find a receptive ear among regulators for relaxing rules; Tough regulations introduced after 2009 seen as fuelling swings in asset prices
Joe Rennison in New York and Philip Stafford in London – FT
Banks and trading firms are finally gaining the ear of global regulators in their efforts to refine post-crisis capital rules that in recent years have been blamed for exacerbating market shocks.
/jlne.ws/2ueqdQH

Investors must allow companies to focus on the long term; Acting on the now affects activities where the payback is over years, not months
Simon Samuels – FT
Talk about baby steps. Last month the American Business Roundtable — an organisation engaged in encouraging chief executives to focus on long-term value — suggested US companies should stop giving quarterly earnings guidance. Note they didn’t go as far as suggesting companies actually stop reporting their performance every 12 weeks, just that they stop predicting in advance how they think they will do for that period. At this rate, the drive to become more long-term will be, ahem, very long-term.
/jlne.ws/2zmncDL

No ‘reluctant conscript’, Brexit minister quits in blow to Britain’s May
Elizabeth Piper, William James – Reuters
Brexit Secretary David Davis has resigned because he was not willing to be “a reluctant conscript” to Prime Minister Theresa May’s plans to leave the European Union, delivering a blow to a British leader struggling to end divisions among her ministers.
/goo.gl/b4aKnM

Central Banks Try to Bolster Their Currencies. It’s Not Always Working; Some emerging-market central banks started dipping into roughly $6 trillion reserve stash in June reversal
Chelsey Dulaney – WSJ
Emerging-market central banks are tapping a roughly $6 trillion stash of foreign reserves as they struggle to contain deepening currency declines.
/jlne.ws/2uhCvYh

BlackRock and Citi plan Paris expansion in Macron coup; US fund manager chooses French capital as new base for alternative investment services
Martin Arnold and Owen Walker in London and David Keohane in Paris – FT
French president Emmanuel Macron’s charm offensive to win business from the City of London is starting to pay off as BlackRock and Citigroup join other Wall Street groups in expanding their Paris operations ahead of Brexit.
/jlne.ws/2zlUKBF

Exchanges, OTC and Clearing

Tradeweb bond volumes exceed $107 billion since Bond Connect launch; Tradeweb became the main trading interface for offshore investors accessing Bond Connect last year.
Hayley McDowell – The Trade
Tradeweb has revealed that its Chinese onshore bond trading activity has exceeded $107 billion since the launch of Bond Connect in Asia.
/jlne.ws/2udLSbC

IHS Markit approved to operate as benchmark administrator; IHS Markit is the latest to gain approval to act as a benchmark administrator under the European Benchmark Regulation.
Hayley McDowell – The Trade
IHS Markit has been granted approval by the UK’s financial watchdog to operate as an authorised benchmark administrator under the European Benchmark Regulation (BMR).
/jlne.ws/2uhFVKz

The Big Interview: Diana Chan; As the long-standing chief executive of EuroCCP, Diana Chan, steps down from her role, The TRADE discusses her legacy with the company and what she believes the next decade holds for clearing.
Hayley McDowell – The Trade
Hayley McDowell: Having announced your plans to step down as CEO at EuroCCP, describe your journey with the company over the past ten years.
/jlne.ws/2ugrwyp

New month-end options support the buy side
Eurex
As of 9 July, Eurex offers EURO STOXX 50 options with month-end expirations. The new product is another part of our buy-side initiative as it meets the needs of insurers and other market participants that offer pension schemes linked to the performance of the EURO STOXX 50 index.
/jlne.ws/2m8Q9JX

When a Stock Exchange Becomes Just Another Pundit
Jacky Wong – WSJ
Managing one of the world’s largest stock exchanges is hard enough. It’s even worse if the job includes cheerleading your own market, too.
That task of geeing up Chinese stocks has now fallen to the Shanghai Stock Exchange itself. On the weekend it posted a statement saying stocks listed there offer excellent “investment value.”
/jlne.ws/2m5QYDg

Press Secretary Of The Shenzhen Stock Exchange: Backing Lawful Share Repurchase By Qualified Listed Companies And Shareholding Increase By Their Major Shareholders
MondoVisione
Ever since this year, numerous SZSE-listed companies have disclosed announcement regarding their share repurchase or shareholding increase by their major shareholders. According to preliminary statistics, since June, 41 SZSE-listed companies have disclosed share repurchase preplan, which involved with a total of RMB 14.1 billion repurchasing fund. For the previous week, 61 SZSE-listed companies have implemented share repurchase with a total of RMB 4.1 billion repurchasing fund and RMB 67 million average repurchasing fund per company.
/jlne.ws/2m2mjqj

Shenzhen Stock Exchange: Remain True To Our Original Aspiration And Keep Our Mission Firmly In Mind – Encourage All SZSE Party Members And Cadres To Make New Commitments And Accomplishments In The New Era
MondoVisione
On July 4, 2018, SZSE held a series of activities to commemorate the 97th anniversary of the founding of CPC. SZSE organized newly developed Party members to take an admission oath and commended outstanding Party members, outstanding Party workers, and advanced grassroot Party organizations that had made outstanding contributions over the past year. Comrade Wu Lijun, Secretary of the Party Committee and Chairman of SZSE, gave a Party lecture on the theme of making new commitments and accomplishments in the new era to all SZSE Party members. Nearly 500 SZSE Party members and representatives of SZSE’s subordinate companies participated in these activities.
/jlne.ws/2m3gOaX

Some thoughts on Nasdaq’s USD futures challenge
Andy Ross – Via LinkedIn
A good story by the FT team, with the ever-reliable Joe Rennison doing the reporting
I was delighted to see Nasdaq looking to add competition to the USD futures market – indeed Ted Bragg himself said “For our clients, competition is good thing.” I couldn’t agree more as I fundamentally believe in the benefits of competition. Competition helps by controlling prices, in developing new products, reducing tick width and increasing liquidity — things I think we’d agree these are for the universal good.
/jlne.ws/2m5RMIi

‘I definitely personally hope centralized exchanges burn in hell:’ Ethereum founder blasts the most powerful players in crypto
Frank Chaparro – Business Insider
Vitalik Buterin had some choice words for centralized exchanges, according to TechCrunch. His remarks come as so-called decentralized exchanges gain popularity in the crypto world.
Vitalik Buterin, the 24-year-old founder of the cryptocurrency Ethereum, had some choice words for centralized crypto exchanges. “I definitely personally hope centralized exchanges burn in hell as much as possible,” Buterin said speaking to TechCrunch.
/jlne.ws/2ueMqxX

Fintech

List Of Top Cryptocurrency, Blockchain & FinTech Events In 2018 To Attend
Bitcoin Exchange Guide
Cryptocurrency and Fintech events have been on the rise, as many novice and advanced crypto investors are continuously seeking for more insights and knowledge on the relatively new market, the technology behind it and of course, the associated legal matters. To get a complete experience covering all facets possible, here is a list of upcoming events one should consider.
/jlne.ws/2KU3NhW

Visible Alpha Recognized as ‘FinTech Innovation of the Year’ at Global Investor Awards 2018
Markets Insider
Visible Alpha today announced that it was awarded “Fintech Innovation of the Year” at the Global Investor Awards event on June 27, 2018 in London. The awards celebrate outstanding performance and contributions to the financial industry.Visible Alpha was recognized for its unique offering that provides a comprehensive end-to-end solution for clients to discover, consume, track, budget, value and pay for all the research content they consume – analysts meetings and models, corporate access and bespoke work included.
/jlne.ws/2KX33IE

The top 3 disruptive FinTech technologies to watch in 2018
Lucas Mearian – Computerworld
FinTech will benefit from three technologies that are expected to expand the usefulness of big data, offer more secure and responsive applications and exponentially grow computational performance.
/jlne.ws/2KSthft

Fintech Europe Selects Nine Startups for its Inaugural Batch
Press Release
Fintech Europe, Plug and Play’s newest innovation platform, based out of Frankfurt, Germany, announced today the nine startups selected for its first batch. With Deutsche Bank and TechQuartier as the founding partners, this platform aims to create a multi-corporate Fintech program, running two 12-week accelerator batches a year.
/jlne.ws/2KStS0H

TCA providers turn to derivatives for growth – report
Louisa Chender – Global Investor Group
Information vendors could offer new over-the-counter data services to reflect regulatory changes that make these opaque markets trade more like instruments executed on exchanges, according to a report.
The latest Aite Group report on Mifid II best execution suggests that, while equity Transaction Cost Analysis (TCA) has been available since the 1990s, the largely over-the-counter (OTC) fixed income, currency and commodity markets “represent a source of frustration given a lack of unusable market data”.
/goo.gl/HkFmC4

Cryptocurrencies

China’s The Blockchainer Bags Millions in Fresh Investment
Komfie Manalo – Cryptovest.com
The Blockchainer has raised “tens of millions” of yuan from blockchain-focused fund management firms, with the money intended to support the global expansion the Shanghai-based blockchain services provider plans to undertake this year, the China Money Network reported.
/jlne.ws/2KUUVZu

World’s Largest Bank Eyes Faster Asset Exchange With Blockchain
Wolfie Zhao – Coindesk
The Industrial and Commercial Bank of China (ICBC), one of China’s “Big Four” state-owned commercial banks and one of the world’s largest by total assets, is seeking to patent a blockchain system for the exchange of financial assets.
According to a patent application filed by the bank in January and revealed on Friday, the system envisions a platform whereby participating institutions can function as nodes to form a distributed network.
/jlne.ws/2KWavnp

Sichuan floods blamed as cryptocurrency mining ‘hashrate’ dips; Observers split over impact on Chinese production and sector’s vulnerability
Louise Lucas in Hong Kong and Emily Feng in Beijing – FT
Extreme weather conditions have claimed a new victim — cryptocurrency miners.
/jlne.ws/2ztgBrc

Winklevoss Crypto Exchange Hires NYSE Technology Executive
Nick Baker – Bloomberg
The Gemini cryptocurrency exchange hired Robert Cornish from the New York Stock Exchange to serve as its first chief technology officer, making it the latest digital-asset business to bring in an executive with expertise serving professional investors and traders.
/jlne.ws/2zkEm4D

5 Countries Team up to Combat Tax Fraud From Cryptocurrencies
Eoghan Gannon – Blokt
A new taskforce involving five countries’ taxation regulators was announced on Monday, July 5. The announcement by the Inland Revenue Service (USA) will aim to increase cooperation between the United States of America, the Netherlands, Australia, Canada, and the United Kingdom in order to combat crimes committed using cryptocurrencies, specifically tax evasion.
/jlne.ws/2L16MoZ

‘A new era for capital markets’: The Swiss stock exchange is launching its own cryptocurrency exchange
Oscar Williams-Grut – Business Insider
SIX, the company that owns and operates the Swiss stock exchange, on Friday announced plans to launch a fully regulated cryptocurrency exchange, showing continued institutional interest in the space despite declining prices.
/jlne.ws/2uevOGB

Aadhaarcoin: India’s Own Crypotocurrency To Make Aadhaar Secure; India Can Leverage Its Rich Aadhaar Data To Launch Its Own Government-Backed Digital Currency
Alekh Sanghera – INc42.com
Aadhaar is the world’s largest biometric ID system. World Bank Chief Economist Paul Romer described Aadhaar as “the most sophisticated ID program in the world”. Aadhaar initiative has helped India leapfrog into the digital age, at a pace much faster than most of the developed economics around the world.
/jlne.ws/2zjD4H6

Politics

Russian Bots Linked To Viral Twitter Attacks On ‘Hateful’ Dems; Is this a preview of stepped-up activity before the midterm elections?
Mary Papenfuss -Bloomberg
In what may be an early onslaught of Kremlin-linked Twitter attacks ahead of the U.S. midterm elections, Russia bots appear to be fueling a wave of criticism targeting Democrats over alleged intimidation in political confrontations and a lack of “civility,” according to bot trackers.
/jlne.ws/2uhyXVX

What Trump’s Trade War Is Really About; China has never accepted the liberal order — or its values.
Christopher Balding – Bloomberg
As the trade war between the U.S. and China escalates, with President Donald Trump imposing tariffs on $34 billion of Chinese imports, both sides are trying to portray themselves as victims of an unconstrained unilateralist rival. They’re both wrong: This dispute is about something much bigger.
/jlne.ws/2zmj6vj

Trump is a threat to EU security and prosperity; Boosting resilience means higher defence outlay and cutting the current account surplus
Wolfgang Münchau – FT
Important as the future of the eurozone and a solution to the migration crisis may be, neither are at the top of my to-do list for the EU right now. In the very short term, the single most important problem the EU needs to confront is Donald Trump.
/jlne.ws/2ugYPBA

Baseless attacks on Robert Mueller must end to protect our democracy
Joyce Vance And Barbara Mcquade – The Hill
The argument du jour in partisan circles today goes like this: Special counsel Robert Mueller’s investigation should end because of the alleged bias of FBI agents who resented candidate Donald Trump. Some conservative lawyers have expanded this argument by claiming that the Russia investigation is the “fruit of the poisonous tree.” They are wrong on the law, wrong on the facts, and they should know better.
/jlne.ws/2znJO6x

For Whom the Trump Trolls
Maureen Dowd – NY Times
Donald Trump was profoundly affected by watching his older brother, Freddy, die from alcoholism at 43. He proselytized against drinking and smoking, warning his kids away from those vices. Even with his casinos, Trump wasn’t a gambler, either, saying he’d rather own slot machines than play them. And yet, in a strange twist, Trump has ended up an addict.
/jlne.ws/2zn7TKW

California dairy farmers, part of Trump’s base, stand to get creamed by his trade war
Stuart Leavenworth – McClatchy
They voted for Donald Trump after he promised to protect American agriculture and reduce regulations. But many U.S. dairy farmers are now stinging from the trade war he’s launched, particularly those in California’s Central Valley, who have built their livelihoods on exports to Mexico, China and other markets.
/jlne.ws/2uf3oMM

Here’s How a Trade War Between the U.S. and China Could Get Ugly
Andrew Mayeda and Jenny Leonard – Bloomberg
First round of tit-for-tat moves to have relatively low impact; The longer the spat drags on, the harder it is to wind down
The first shot of the U.S.-China trade war went off without much of a reaction from investors. The calm may be short lived.
/jlne.ws/2uenAOJ

Regulation

New York jury convicts two men for trading on hacked press releases
Jonathan Stempel – Reuters
federal jury in Brooklyn, New York on Friday convicted two men for their roles in an international scheme to make millions of dollars by illegally trading on corporate press releases that were stolen by computer hackers before they became public.
/goo.gl/9ATQpk

FCA gets it right by banning Steven Cohen; UK regulator’s move to block the disgraced hedge fund manager is bang on the money
Peter Smith – FT
Hat tip to the Financial Conduct Authority for stopping Steven Cohen in his tracks. The UK regulator has made a gutsy move by ruling that the legendary hedge fund manager is not “fit and proper”, refusing to allow the billionaire trader to reopen his fund to investors in Britain.
/jlne.ws/2ueBIHR

Bank of England refuses to name donors who paid for Carney time; Presidents Club scandal highlighted that individuals could pay to have tea with governor
Caroline Binham in London – FT
The Bank of England has refused to disclose the identities of individuals who have paid to secure time with governor Mark Carney via charity auctions.
/jlne.ws/2zteGmu

Sebi revamps panel on alternative investment and startup ecosystem; The regulator had constituted the committee in March 2015 with the mandate to prepare a new regulatory framework for alternative investments
Press Trust of India
Markets regulator Sebi has reorganised the committee that advises it on matters pertaining to further development of the alternative investment and startup ecosystem in the country.
/jlne.ws/2ujgM2c

Former CEO and CFO of ITT Barred and Ordered to Pay Penalties
SEC
The Securities and Exchange Commission today announced settlements with two former senior executives of ITT Educational Services Inc., which the SEC charged hid its true financial condition from investors. This resolution successfully concludes the SEC’s case, which was scheduled to begin trial on July 9.
/jlne.ws/2m50czo

Investing and Trading

KKR shares surge after ditching partnership structure; Private equity group’s conversion to a corporation is being closely watched by rivals
Mark Vandevelde in New York – FT
KKR’s gamble in ditching its tax-advantaged partnership structure in the hope of attracting new investors is showing signs of paying off, with its shares hitting an all-time high late last week.
/jlne.ws/2znfMjw

Battery-Skeptic Funds Wait Out Cobalt Rally Seen as Fleeting
Luzi-Ann Javier – Bloomberg
‘Severe oversupplies’ seen driving lithium lower, BofA says; Tiberius’s Eibl cites uncertainty over future technologies
Call them battery skeptics. Bets on surging demand for electric vehicles have made cobalt and lithium hot commodities, but some investors say the outlook is leaving them cold.
/goo.gl/po1FJX

Activist investors pose rare challenge to UK directors; Mears and Premier Foods challenged to rethink roles of longstanding directors
Kate Burgess – FT
This summer has been marked by barnyard brawls at several small UK companies.
/jlne.ws/2ztahzY

Newman: why commodities will stay OTC; As he retires, Icap Energy founder on his acid test for picking emerging markets, and the promise of LNG derivatives
Stella Farrington – Risk.net
Post-crisis derivatives regulation has failed to shift commodity trading from over-the-counter markets to exchanges and is unlikely to achieve this key aim any time soon, if ever, says recently retired Icap Energy founder Paul Newman.
/jlne.ws/2ui0C9p

Institutions

Index Ventures Has Been on a Run. Now It’s Raising Funds to Keep It Up
Michael J. de la Merced – NY Times
When Adyen, a Dutch financial payments processor, began trading publicly last month — and nearly doubled its stock price on its first day — partners at Index Ventures had reason to cheer.
/jlne.ws/2zp2B1y

Vanguard Isn’t Taking in as Much Money; Neither Is Anyone Else
Charles Stein – Bloomberg
Fund flows to money managers slowed across industry in 2018; Declines may be tied to so-so performance of stock market
Vanguard Group is attracting a lot less money from investors this year compared with 2017. Turns out, the mutual fund giant’s not alone.
/jlne.ws/2ug9RXK

Barclays EMEA Banking Chairman Leaves Lender
Dinesh Nair and Archana Narayanan – Bloomberg
Azar to return as a senior adviser in January next year; Azar joined Barclays in 2010 after stints at KKR, Lehman
Makram Azar, chairman for Barclays Plc’s Europe, Middle East and Africa banking operations, retired from his role at the British lender, according to a memo to obtained by Bloomberg News.
/jlne.ws/2zj3Mzv

Bankers Quit Goldman, Citigroup for Biotech Riches in Hong Kong
Vinicy Chan and Crystal Tse – Bloomberg
Goldman’s Yeh is the latest to leave a bank for a biotech firm; Lazard, BofA, Deutsche Bank have seen similar departures
Investment bankers in Hong Kong are catching biotech fever.
/jlne.ws/2zoR0zm

JPMorgan Maps Out Currencies to Buy If Recession Is Coming
Gregor Stuart Hunter – Bloomberg
Yen, Swiss franc, Singapore dollar and the greenback top picks; Emerging market FX seen struggling; Kiwi worst G10 performer
If a U.S. or global recession is looming, it’s time to own the Swiss franc, Singapore dollar, U.S. dollar and Japanese yen — and ditch emerging market currencies, according to analysts from JPMorgan Chase & Co.
/jlne.ws/2zm3NCD

Two public pension funds ‘wasted $5.5bn on Wall St fees’; State treasurer Joseph Torsella says passive strategy would have brought better return
Chris Flood – FT
Pennsylvania’s two largest public pension funds “have wasted” $5.5bn in fees paid to poorly performing Wall Street investment managers over 10 years, according to a senior elected state official.
/jlne.ws/2uoMOdt

JPMorgan promotes to Carsten Woehrn to new role of head of EMEA Infrastructure M&A
Reuters Staff
JPMorgan has promoted mergers and acquisitions (M&A) banker Carsten Woehrn to take the newly-created role of head of Europe, Middle East and Africa Infrastructure M&A, according to an internal memo.
/jlne.ws/2m3acJu

Citigroup, with limited options, hopes to lure deposits digitally
David Henry – Reuters
Citigroup Inc (C.N) is facing a unique dilemma among the four largest U.S. banks: it is light on deposits from individuals, an important funding source that costs little and tends to stick around.
/jlne.ws/2m2d4WZ

Regions

China may delay new rules for wealth management products: Caixin
Reuters Staff
China may delay the release of new regulations for banks’ wealth management products (WMPs) because of recent market turmoil, financial publication Caixin reported on Sunday citing unidentified sources.
/goo.gl/TYKird

Fraud risk, bad governance make investors skeptical about India: Kroll; Foreign portfolio investors have pulled out more than USD 6.6 billion from the Indian equity markets so far this year
Press Trust of India
Global investors are slowly adopting a “wait and watch” approach on India as they are scaling down on their aggression ahead of general elections next year amid global uncertainties, according to US-based risk management firm Kroll.
/jlne.ws/2zj05K9

Danske Bank’s money laundering scandal spooks investors; Allegations of suspicious transactions at Estonian branch are damaging lender’s image
Richard Milne, Nordic and Baltic Correspondent – FT
David Helgason, the Icelandic entrepreneur behind one of Denmark’s biggest recent start-ups, had had enough. The co-founder of Unity Technologies, a video games group reportedly valued at $2.6bn, last week decided to move his bank account from Danske Bank.
/jlne.ws/2ugc0Ta

Japanese pension funds embrace alternative investments; Annual JPMorgan survey shows less interest in fixed income among institutions
Chris Flood and Attracta Mooney – FT
Appetite among Japanese pension funds for alternative investments has hit a new peak at the same time as bond allocations have sunk to a record low, according to a survey by JPMorgan Asset Management.
/jlne.ws/2ug5lsg

Brexit

Brexit Delivers Blow to British Finance as Investments Slide
Gavin Finch – Bloomberg
FDI in U.K. financial firms dropped by 26%, EY report says; London remains most attractive EU city for foreign investment
Britain’s financial-services industry is suffering a drop in foreign investment while some of its European counterparts enjoy big gains, according to a new study that shows the starkest indication yet of Brexit’s impact on the sector.
/jlne.ws/2zmL6ig

Theresa May Faces Crisis Over Brexit After Key Ministers Quit
Tim Ross , Thomas Penny , Alex Morales , and Kitty Donaldson – Bloomberg
Opponents call for change of policy, not change of leader; May’s effort to stamp authority on Cabinet lasted 48 hours
U.K. Prime Minister Theresa May was plunged into crisis after key members of the government quit over Brexit. She faced growing calls to rip up her two-day old blueprint, even as opponents stopped short of calling for her to go.
/jlne.ws/2ujclV6

Citi bolsters Paris hub ahead of Brexit
Reuters Staff
Citigroup (C.N) is boosting its operations in France ahead of Brexit with a series of senior appointments, according to an internal memo reviewed by Reuters on Monday.
/jlne.ws/2m5JNLi

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Bergstrom is chief information officer of John J. Lothian & Co. He edits MarketsWiki and JLN Options.