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Powder Keg Threatens Corporate Bond Market; New Crypto Consortium Seeks to Alleviate Liquidity Problems

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Hits & Takes
JLN Staff

John J. Conheeney has passed away. See the NFA statement below.~JJL

CQG is hosting their 7th annual charity softball game next week before the start of FIA EXPO in Chicago. Players and audience are welcome to show up at the Grant Park Softball Field #1 at 2 p.m. on October 16. Try your hand (no gloves needed) at playing beside the Most Interesting Man in the World, Pat Kenny, against the cricket players from overseas.~JJL

Speaking of the Most Interesting Man in the World, he is moderating a panel discussion for EXPO on Wednesday at 3:45 PM on “Reinventing Futures For a New Generation.” How lucky am I to be leading a discussion on “Enabling the Next Generation of Traders” at 3 PM, ending at 4 PM the same day. Head to head, sort of, with the Most Interesting Man in the World.~JJL

AARP defines bitcoin as “a bunch of computer code that a bunch of criminals, idealists and speculators agree is worth ‘real’ money. Sadly, its real-money value swings widely, making it impractical except for criminals, idealists and speculators.”~JJL

I would like to remind people it is October and the stock market does interesting things during the month. I would also remind people you can buy candy 40 percent off or more during November.~JJL

Looking for last minute tickets for ALTSO’s Rocktoberfest? You can find them http://bit.ly/2A1F0lC.~JK

Women in Listed Derivatives (WILD) announced the launch of a new website which aims to be more compatible and user friendly. You can find more information about the organization and how to join here. WILD is also seeking nominations for its 2019 board of directors. If you have someone you would like to nominate, please send an email to Leslie Sutphen (sutphen@finmarkets.com) by October 19. Self-nominations are encouraged, as well.~SR

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In Memoriam: NFA Remembers John J. Conheeney
NFA
NFA remembers John J. Conheeney who passed away earlier this week. In the late 1970s and early 1980s, he served on NFA’s Organizing Committee that developed the framework that would become National Futures Association. John also was an NFA founding Board member and served as Chairman of NFA’s Board from 1990 to 1994.
/jlne.ws/2pNszE5

***** Such a legendary participant of our markets. Condolences to his family and friends.~JJL

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When Killing the Messenger Becomes the Norm
Amy Mackinnon – Foreign Policy
Viktoria Marinova was not a war correspondent.
She was a Bulgarian TV journalist who covered an alleged corruption scandal on her show before she was murdered last week in the northern town of Ruse, near the Danube River, in the latest incident of deadly violence against journalists around the world.
bit.ly/2pMxd5f

**** Some disturbing context in light of Jamal Khashoggi’s disappearance at the Saudi embassy in Turkey – “Out of 1,322 journalists whose deaths have been linked to their work since 1992, 848 were murdered, while 298 were killed in crossfire.”~SD

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Trump and the fear of fascism in America; US president’s invective has leaned towards the authoritarian end of the spectrum
Edward Luce – FT
It was President Donald Trump who framed the question. “In one case they say, ‘He’s [Trump is] a fascist. He’s taking over government?.?.?.?we can’t stop him,'” Mr Trump recently said in mockery of his critics. “That didn’t work. The next week, they said, ‘He’s incompetent.’ I said, ‘Well, wait a minute.’ In one case, I’m taking over the world, and the other case, he’s incompetent.” Fascist or joker: which is the better description?
/jlne.ws/2IPKxi2

***** I am guessing, but right about now non-U.S. participants of FIA EXPO are being briefed to not talk about politics while in the U.S. That is the wrong answer. We need the dialogue from our foreign friends near and far.~JJL

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Building a World-Class Marketplace and Client Services Team
Cameron Winklevoss – Gemini
As we continue to scale Gemini and build the future of money, it is important that we build both a world-class marketplace and Client Services Team to help service our institutional customers and complement the efforts of our existing Customer Support Team. To that end, we are happy to welcome Jeanine Hightower-Sellitto to the Gemini team as a Managing Director of Operations. Jeanine will help us continue to build the Gemini Marketplace and our new Client Services Team so that we can continue to deliver the best platform experience possible.
/jlne.ws/2yx6HRm

***** I am going to have to agree with Cameron, hiring Jeanine Hightower-Selito was a world class move.~JJL

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Wednesday’s Top Three
Our top read stories of the day were led by Business Insider’s Nasdaq CEO explains difference between being C-suite exec and CEO. Second was Bloomberg’s Blythe Masters Says Blockchain Tech Is Coming to Commodities. And third went to a top 3 finisher from Tuesday, Bloomberg’s The Next Financial Crisis Is Staring Us in the Face

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Lead Stories

A $1 Trillion Powder Keg Threatens the Corporate Bond Market
Molly Smith and Christopher Cannon – Bloomberg
They were once models of financial strengthócorporate giants like AT&T Inc., Bayer AG and British American Tobacco Plc.
/jlne.ws/2IO27CZ

New Crypto Consortium Seeks to Alleviate Liquidity Problems
Vildana Hajric – Bloomberg
Platform promises speedier settlements, more efficient trading; Volume on crypto exchanges is down about 80% this year
Cryptocurrency trades are notoriously difficult to settle. Could a new platform help fix that? San Francisco-based startup Blockstream Corp. launched the Liquid Network today, a trading platform that promises faster and more secure settlements of digital tokens. The platform connects cryptocurrency exchanges, brokers and financial institutions around the world. So far, more than 20 companies have signed up, including Bitfinex, Bitmex and OKCoin.
/jlne.ws/2IQxpJo

Accused UK traders were only kidding, US jury told; Prosecutors allege executives in London fixed prices in global foreign exchange market
Robert Armstrong – FT
Three UK-based bank traders accused of fixing foreign exchange markets through a private chatroom were engaging in a comic back-and-forth to blow off steam and broke no laws, their attorneys said in opening arguments at their trial in New York.
/jlne.ws/2pUXbUx

Trump says the Federal Reserve has ‘gone crazy’ by continuing to raise interest rates
Thomas Franck – CNBC
President Donald Trump knocked the Federal Reserve for continuing to raise interest rates despite some recent market turbulence.
“I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy,” the president said after walking off Air Force One in Erie, Pennsylvania for a rally.
/goo.gl/pGRhHa

GAM Is Said to Be in Early Stage Talks With Potential Buyers
Bloomberg via Pensions & Investments
GAM Holding AG has held informal talks with potential buyers for all or part of the business as it explores options to stabilize the firm after the suspension of a star fund manager, according to people familiar with the discussions.
/goo.gl/wEqrhK

ESTER Gets Some Competition in the IBOR Replacement Race
George Bollenbacher – TABB Forum
As we pointed out in some earlier work on the IBOR replacements, the leading candidate for replacing Euribor, as decreed by the working Group on euro risk-free rates, was ESTER, the European Short-Term Rate. Because this rate, like SONIA, is an unsecured bank borrowing rate, it is not technically risk free and not a money-market rate. In addition, the European Central Bank indicated that ESTER “will complement existing benchmark rates produced by the private sector and will serve as a backstop reference rate.”
bit.ly/2yyjF1c

Cryptocurrency enthusiasts aren’t going to like how AARP defines bitcoin; ‘Imagine if keeping your car idling 24/7 produced solved Sudokus you could trade for heroin’
Shawn Langlois- MarketWatch
Think of it as the crypto equivalent of the “get off my lawn” meme.
/jlne.ws/2IQsoke

Automating the Wall Street Rainmaker; Investment banking skills like negotiation and relationship building aren’t easily replicated, but banks are finding ways technology can help.
Sonali Basak – Bloomberg
Wall Street pours billions of dollars into technology every year, looking for ways to replace many of its money managers, research analysts, and traders with machines. But there’s one job that few believe can be automatedóthat of the investment banker. Investment bankers weave together complicated mergers and acquisitions, pitch initial public offerings to investors, and serve as confidants and counselors to chief executives. They’re also rainmakers, cultivating relationships that bring in business.
/jlne.ws/2pOUu6Q

Exchanges, OTC and Clearing

ICE Benchmark Administration Launches the ICE Term RFR Portal and Publishes a Paper on Potential Term Structures for Alternative Risk Free Rates
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that ICE Benchmark Administration Limited (IBA) has launched the ICE Term RFR Portal and published a paper on potential term structures for alternative Risk Free Rates (RFRs).
/jlne.ws/2Oj9OqI

Demand Derivatives Partners with GMEX Group to Launch a Revolutionary Futures
Exchange and Reduced-Risk Blockchain Clearing House
Press Release
Demand Derivatives Corp., a creator of novel derivative instruments, and GMEX Group (GMEX), a leading provider of exchange and post-trade business technology solutions, will combine forces to launch a U.S.-regulated futures exchange, RealDemand Board of Trade (“RealBOT”), and clearing house, RealDemand Clearing (“RealClear”).
To further align interests and share in the success of the project, GMEX will take a minority equity stake in Demand Derivatives.
/goo.gl/5gVvpZ

SGX to launch new high-grade iron ore derivative
SGX
SGX today announced plans to launch a new high-grade iron ore derivative to meet the needs of the industry as the physical market evolves along different grade specifications.
/jlne.ws/2IPqYpX

LSE Falls to Six-Month Low on Brexit Fears Amid Broader Slump
Viren Vaghela – Bloomberg
London Stock Exchange Group Plc fell to its lowest level in over six months on concerns that the company will lose revenue from banks moving business to the European Union after Brexit.
/jlne.ws/2pLI4wm

Deutsche Bˆrse Photography Foundation shows “To be continued”; Exhibition on the phenomenon of seriality in photography from October 12, 2018 to January 11, 2019 in The Cube, Eschborn
Deutsche Bˆrse
From October 12, 2018 to January 11, 2019, the Deutsche Bˆrse Photography Foundation will be showing the exhibition “To be continued”. With more than 120 works by 20 international artists from the Art Collection Deutsche Bˆrse, it is dedicated to the phenomenon of seriality and its different applications in photography. The exhibition can be seen in the headquarters of Deutsche Bˆrse, The Cube, in Eschborn.
/jlne.ws/2pPwkZT

Deutsche Bˆrse welcomes HANetf as new ETF issuer
Deutsche Bˆrse
Since Thursday, three ETFs of the new issuer HANetf have been tradable for the first time via Xetra and the Frankfurt Stock Exchange. HANetf has had Europe’s first ETF listed on its white label platform and two additional own products.
/jlne.ws/2pMmeJ9

LCH SA EquityClear to further extend its clearing services to include Euronext stocks traded on Turquoise
LCH
LCH SA, a leading global clearing house, today announced that it is to extend its clearing services offering for Turquoise, the pan-European MTF. As a result of the agreement, Euronext stocks traded on the Turquoise platform will be available for clearing through LCH SA. The clearing arrangements will be based on a “Preferred CCP” or “User Choice” model, whereby each trading firm is able to specify LCH SA as its preferred CCP. If a trade is executed between two trading members that have both elected LCH SA as their preferred CCP, then the trade will be sent to LCH SA for clearing. As a result of the move, members opting for LCH SA as their preferred CCP for Euronext stocks will be able to consolidate their clearing activity through one clearing house, enabling them to benefit from operational and cost efficiencies. The service, which is expected to begin in Q1 2019, is part of LCH SA’s broader strategy to connect with trading venues on a Preferred Clearing basis.
/jlne.ws/2pPcJJ8

ICE BENCHMARK ADMINISTRATION LAUNCHES THE ICE TERM RFR PORTAL AND PUBLISHES A PAPER ON POTENTIAL TERM STRUCTURES FOR ALTERNATIVE RISK FREE RATES
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that ICE Benchmark Administration Limited (IBA) has launched the ICE Term RFR Portal and published a paper on potential term structures for alternative Risk Free Rates (RFRs).
/jlne.ws/2Oj9OqI

ICR and Nasdaq Present an Event for Advancing Women Leaders in the Boardroom
By Business Wire
ICR, a leading strategic communications and advisory firm, hosted an event in partnership with Nasdaq titled “Advancing Women Leaders in the Boardroom” on Tuesday, October 9, at the Nasdaq MarketSite in New York City. The event featured important discussions on the topic of gender diversity in the boardroom from many highly accomplished women leaders who have made huge contributions in this area as well as to the business community overall.
/jlne.ws/2pLjmw8

Directorate Change | London Stock Exchange Group
London Stock Exchange Group
Following the announcement of her appointment at Bloomberg L.P., Mary Schapiro has resigned from the Board of London Stock Exchange Group plc with immediate effect.
/jlne.ws/2pOgaA4

MTS enhances BondVision platform with new automation tools
London Stock Exchange Group
MTS Markets, part of London Stock Exchange Group (LSEG), has launched new automation tools for its enhanced MTS BondVision dealer-to-client electronic bond trading platform.
/jlne.ws/2pPtzaY

Handling of Tick Sizes from October 31 onward
JPX
As previously announced, TSE have applied a separate set of narrower tick sizes to TOPIX100 constituents from January 14, 2014 onward (as prescribed in Rule 14, Paragraph 3, Item 1-b of the Business Regulations; hereinafter referred to as “narrow tick sizes”). The handling of the application from October 31 onward shall be as follows.
/jlne.ws/2pOAtNq

Fintech

FINCAD Launches Pioneering Python Toolkit for Valuation and Risk Analytics
FINCAD
FINCAD today announced innovative enhancements to FINCAD F3, an advanced valuation and risk analytics solution. A comprehensive Python toolkit has been added to F3, enabling traders, quants, portfolio managers and risk managers to rapidly generate custom analytics, applications and reports to drive better investment and risk decisions.
/goo.gl/d1kvq7

International Monetary Fund, World Bank launch Bali Fintech Agenda
Yen Nee Lee – CNBC
The International Monetary Fund and the World Bank jointly released a paper that will guide policymakers around the world in their handling of the rise of financial technology ó commonly known as fintech.
The paper, called the Bali Fintech Agenda, was launched on Thursday on the Indonesian island where the IMF and the World Bank are holding their annual meetings.
/cnb.cx/2ygbEyH

IMF-World Bank annual meetings: Regulators at Bali Fintech Agenda
Yen Nee Lee – CNBC
The rise of financial technology ó more commonly known as fintech ó won’t threaten the existence of banks and it’s the responsibility of authorities to make sure that traditional lenders are prepared for changes in their industry, policymakers and regulators said in a CNBC-moderated panel Thursday.
/cnb.cx/2ydwQ8o

IHS Markit Creates First One-Stop Data Solution for Syndicated Loan Market; New portal consolidates data from 150 agent banks and other sources to provide unified view of positions, servicing events and reference data
IHS Markit
IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions today announced the launch of a portal that consolidates critical data for participants in the $1 trillion syndicated loan market.
/goo.gl/YPgE5G

Hackers Are Using Stolen Apple IDs to Swipe Cash in China
Bloomberg News
China’s top digital wallet didn’t say how much was stolen; Ant Financial and Tencent are working with Apple on the case
Ant Financial’s Alipay and Tencent Holdings Ltd. warned that cyber-attackers employed stolen Apple IDs to break into customers’ accounts and made off with an unknown amount of cash, in a rare security breach for China’s top digital payments providers.
/jlne.ws/2pLfXgQ

Cryptocurrencies

European bitcoin exchange in “final stages”
Luke Jeffs – FOW
A former Merrill Lynch quant has said his crypto-currency start-up is close to receiving regulatory approval to launch a Europe-based bitcoin future and options, a possible breakthrough for the nascent European market.
bit.ly/2C82Qh9

Plan to Fix Journalism With Cryptocurrency Draws Skepticism
Benjamin Mullin – Wall Street Journal
The Civil Media Co. bills itself as a solution to some pressing problems in modern journalism, pitching a new cryptocurrency that would help news consumers support quality information and weed out bad actors.
/on.wsj.com/2CD3G6z

****CNN – Civil Media’s token sale is not going well

Bitcoin needs a blessing from the SEC, says analyst
Aaron Hankin – MarketWatch
Seasonal patterns had many crypto proponents geared up for a fruitful final quarter, but to-date gains have been lacking and analyst Naeem Aslam said it may take an endorsement from lawmakers to get a year-end rally under way. “Bitcoin needs some sort of a blessing and only that can revitalize the rally for the currency,” wrote Aslam, chief market analyst at Think Markets U.K.
/on.mktw.net/2ORS0Th

FSB Concludes that Cryptocurrency is a Developing Threat
Simon Golstein – Finance Magnates
The Financial Stability Board, an advisory body to the G20 organisation, has published a report on the implications of cryptocurrency. The report is considerably more pessimistic than the one that it published a few months ago.
bit.ly/2EflE0K

Google Ad Reveals Search Giant’s Feelings On Bitcoin And Crypto
Billy Bambrough – Forbes
Google’s past relationship with bitcoin and cryptocurrency has been fraught, to say the least ó last month the search giant partially rolled back its ban on advertisements for cryptocurrencies, allowing regulated cryptocurrency exchanges to buy ads in the U.S. and Japan.
bit.ly/2pPN7M9

Here’s how blockchain will fit into your life in 10 years
Darla Mercado – CNBC
You may not likely become a blockchain billionaire anytime soon, but this technology will probably be part of how you invest in the next decade.
/cnb.cx/2ycwWx0

GMO Internet Plans to Launch Price-Stable, Yen-Pegged Cryptocurrency
Aziz Abdel-Qader – Finance Magnates
Japanese internet conglomerate GMO Internet has announced plans to launch a yen-pegged ‘stablecoin,’ whose value will not be fully affected by crypto market volatility. The Tokyo-based company will, most likely, collaborate with a bank from Japan to develop the price-stable cryptocurrency, which should be issued in early 2019.
bit.ly/2ITeA8N

‘Bitcoin and Guns, That’s the Only Way to Save This Country’; Cryptocurrency looks like the way forward in a Ukraine battered by revolution and corruption.
Linda Kinstler – Bloomberg
The spot where a statue of Lenin once presided over Kyiv’s downtown is now in a state of mild decrepitude. The plinth remains, but it’s covered with graffiti, its steps painted the blue and gold of the Ukrainian flag. After protesters triumphantly toppled the statue in December 2013, the vacant pedestal served as a memorial to Ukraine’s violent rejection of its Soviet past.
/jlne.ws/2IQsEQe

Politics

Opinion: Trump’s tariffs take direct aim at Chinese stocks; Yardeni: U.S. market is prepared for a trade fight with China
Ed Yardeni – MarketWatch
President Donald Trump is implementing policies aimed at either slowing or halting China’s drive to become a superpower. He wants to reduce America’s huge trade deficit with China by forcing U.S. and other manufacturers to move out of that country. In the process, the U.S. would no longer be financing China’s ascent with our trade deficit and providing technological knowhow that has been either stolen or extorted.
/jlne.ws/2IN5V7z

JPMorgan Earnings Could Put the Cost of Trump’s Trade War in Focus
Ben Walsh – Barron’s
After JPMorgan Chase (JPM) reported a strong second quarter, America’s largest bank by assets has a big question hanging over its third-quarter results: Will JPMorgan’s money-spinning ability be dented by rising interest rates, and a trade war between the world’s two largest economies?
/jlne.ws/2INItXJ

Central Bankers Defend Fed After Trump Accuses It of ‘Going Loco’
Yuko Takeo – Bloomberg
Central bankers from around the world jumped to the U.S. Federal Reserve’s defense after President Donald Trump accused the central bank of going “loco.”
/jlne.ws/2IOsIA2

U.S. Needs a Global Alliance Against Russia’s Cyberattacks; Washington can coordinate with Europe, the UN, Interpol and nongovernmental groups.
James Stavridis – Bloomberg
While Russian hacking has been a persistent threat for several years now, the past few days shed new light on the vast scale of Moscow’s cybercrimes directed against the U.S., NATO and nongovernmental organizations around the world.
/jlne.ws/2IOboLx

Inside Trump’s Market Blame Game
Kathleen Hunter – Bloomberg
Want to receive this post in your inbox every day? Sign up for the Balance of Power newsletter, and follow Bloomberg Politics on Twitter and Facebook for more. Donald Trump knows who’s to blame for the worst U.S. stock market selloff since February, and it’s definitely not Donald Trump.
/jlne.ws/2IObd2P

Michael Bloomberg weighs odds for run against Donald Trump; Billionaire eyes last chance to lead Democratic bid for White House in 2020
Joshua Chaffin in New York – FT
Americans opposed to the New York billionaire occupying the White House may soon have the choice of another one: Michael Bloomberg.
/jlne.ws/2pOYhkC

Regulation

Spanish foreign minister sanctioned by securities regulator
Michael Stothard – FT
Spain’s foreign minister Josep Borrell has been sanctioned by the country’s securities regulator over a share sale in 2015, in another blow to the Socialist government of Pedro Sanchez.
/jlne.ws/2IT9IjW

Law Firm’s Fee Settlement Could Shake Up Securities Class Actions
By Matthew Goldstein – NY Times
A deal that was reached this week in a long-running fee dispute has the potential to reshape the way law firms that represent plaintiffs bill for their work and pay other lawyers for referring clients to them.
/jlne.ws/2pMCfij

FINRA-Bloomberg Indices to be Discontinued
FINRA
Beginning Thursday, November 1, 2018, FINRA will discontinue processing the FINRA-Bloomberg Active U.S. Corporate Bond Indices.
/jlne.ws/2pOAyAI

SEC Monitoring Impact of Hurricane Michael on Capital Markets
SEC
The Securities and Exchange Commission is closely monitoring the impact of Hurricane Michael on investors and capital markets.
/jlne.ws/2pP2KUq

Investing and Trading

How FOMO Plays Into Millennial Investing
Benjamin Stupples – Bloomberg
Millennials’ use of social media is helping to drive their investment decisions, according to Fabrizio Campelli, Deutsche Bank AG’s global head of wealth management.
/jlne.ws/2IPlb42

A Frenzy of New Market Bets Is Fading
Justin Baer and Dawn Lim – WSJ
One sign that investors’ doubts are growing despite a buoyant market for U.S. stocks: the slowdown of new money into the investment world’s most popular products.
Net inflows into U.S. mutual funds and exchange-traded funds are down 46% through the first three quarters of the year, according to new data tracked by Morningstar. They totaled $281.7 billion this year through September, compared with $517.2 billion during the same period in 2017, Morningstar said.
/on.wsj.com/2yvlTP6

Markets’ Scary Divergence Is Worrisome; The bond market is failing its haven role and that could spell trouble for the long bull market in stocks
Spencer Jakab – WSJ
Is this the big one? Not even close, but there is something unusual and unsettling afoot in financial markets.
/jlne.ws/2IOlJah

ETFs begin to reshape bond trading; Asset managers are using exchange traded funds to gain or cut exposure to corporate bonds
Robin Wigglesworth and Joe Rennison – FT
Around midday on October 25 2017, bond traders noticed a vast deal suddenly hitting their screens. Someone had just executed a $500m trade in nearly 50 different corporate bonds at the same time ó a huge amount of debt to change hands in one go.
/jlne.ws/2pP9ly2

Institutions

BGC Partners to Relocate UK based Headquarters to 5 Churchill Place, Canary Wharf, E14
BGC Partners, Inc.
BGC Partners, Inc. (NASDAQ: BGCP) (“BGC Partners,” “BGC” or “the Company”), a leading global brokerage and financial technology company, signed leases on approximately 130,000 sq ft at 5 Churchill Place, London, E14. This will see the leading brokerage firm relocate its UK based headquarters in 2019.
/jlne.ws/2yq1CKG

Wells Fargo touts good deeds to get back in lawmakers’ good graces
Imani Moise, Pete Schroeder – Reuters
Tired of being cast as the poster child for big banks behaving badly, Wells Fargo & Co has been expanding its presence in the nation’s capital to convince lawmakers it has changed and talking up its charitable work in their districts.
/jlne.ws/2IOtkWm

Chairman and CEO together or separate? Citigroup has to decide
David Henry – Reuters
JPMorgan Chase & Co (JPM.N) and Bank of America Corp (BAC.N) have placed the jobs of chairman and chief executive in the hands of one person, and now No. 3 Citigroup Inc (C.N) must decide whether to follow suit.
/jlne.ws/2IRHVA4

Bad timing as Vanguard service glitches start before market drop
Ross Kerber – Reuters
If plunging markets during Wednesday’s U.S. trading session proved unlucky for investors, the timing was especially bad for Vanguard Group Inc.
/jlne.ws/2IQiKhy

Billionaire Lau Plans Redevelopment of Goldman London HQ
Jack Sidders – Bloomberg
Chinese Estates has invited developers to pitch, people say; Project could be among London’s biggest office developments
Joseph Lau’s Chinese Estates Holdings Ltd. has invited companies to pitch to redevelop Goldman Sachs Group Inc.’s London headquarters after the bank vacates the building next year, people with knowledge of the plan said.
/jlne.ws/2pPqLus

BGC Partners to relocate London HQ; Interdealer broker will bring its two existing offices in London under one roof at new Canary Wharf location.
By Hayley McDowell – The Trade
BGC Partners has announced plans to relocate its UK-based headquarters in London which will bring together two of its current offices in the city.
/jlne.ws/2pNEmm5

Regions

Apple Watch, hired jet, mystery vehicle figure in search for missing Saudi dissident
Orhan Coskun, Sarah Dadouch, Stephen Kalin – Reuters
Jamal Khashoggi believed he was safe in Turkey.
Khashoggi, a veteran Saudi journalist and newspaper editor, had lived in exile in Washington for more than a year, writing a column for the Washington Post in which he regularly criticized his country’s crackdown on dissent, its war in Yemen and sanctions imposed on Qatar.
/reut.rs/2yqiQHG

Singapore’s UOB Reviewing Insurance Deal With Prudential
Manuel Baigorri and Joyce Koh – Bloomberg
Lender has been soliciting ideas from potential advisers; UOB seeking ways to get more value out of insurance operations
Singapore lender United Overseas Bank Ltd. is reviewing its insurance business, including an existing partnership with Prudential Plc, after Southeast Asia witnessed a wave of lucrative distribution deals, people familiar with the matter said.
/jlne.ws/2IUbpxD

China finance: why ‘accidental banks’ face a crackdown; Asset managers were big lenders to Chinese buyers of overseas assets but capital is drying up
Don Weinland in Hong Kong – FT
When Huarong Asset Management employees arrived at their Hong Kong headquarters on April 18, they found it had undergone a radical transformation. The walls of the company’s offices, which had been covered with images of the chairman Lai Xiaomin , now stood bare. Stacks of glossy books authored by Mr Lai had vanished. It was as if he had never existed, says one employee present that day.
/jlne.ws/2pOUNP2

Brazil’s big soyabean win turns painful; China demand sends price up more than 30% but leaves domestic supplies perilously low
Emiko Terazono – FT
Brazil is discovering that winning big in trade wars comes at a cost. Since Beijing imposed a 25 percentage point tariff increase from 3 per cent on imports of US soyabeans in June, Brazilian farmers have reaped a windfall as China has turned to the South American country for the crop that is turned into animal feed and oil.
/jlne.ws/2pN6dmd

The EU should heed plea for sanity on derivatives; Hedging is too systemic an issue to be caught up in political brinkmanship
The Editorial Board – FT
One of the biggest risks to financial stability if the UK crashes out of the EU next year without a deal is what happens to trillions of dollars of derivatives contracts. The Bank of England turned up the volume on an already rowdy debate on the issue this week when it warned that £41tn of outstanding contracts ó used to hedge oil prices, interest rates and other financial risks at companies across the EU27 ó could be forcibly voided next March.
/jlne.ws/2pLJtD8

Oligarchs Beware: U.K. Demands to Know How Jailed Banker Can Afford Mansion; Orders mark a warning shot toward Russian oligarchs and other ‘politically exposed persons’ who hold U.K. assets
By Margot Patrick – WSJ
The wife of a jailed Azerbaijani banker has been ordered to explain how she and her husband could afford their multimillion-pound London mansion or face having it seized, in the first case using new U.K. investigative powers.
/jlne.ws/2pLkiR0

Brexit

London Housing Is Taking a Beating From Brexit Uncertainty
Lucy Meakin – Bloomberg
Market is also feeling weight of rate increases, affordability; U.K. capital posted biggest slide as southeast deteriorated
London’s house price slump left U.K. values stagnating for a fifth month in September as Brexit concerns and interest rate rises discouraged buyers.
/jlne.ws/2IORFv2

What May’s Brexit Fudge Means for Business: More Uncertainty
Emma Ross-Thomas , Suzi Ring , and Alex Morales – Bloomberg
Plan would see whole U.K. stay in EU customs regime for now; Proposal undermines May’s pledge business will only adapt once
As Brexit talks edge toward a compromise, the fudged deal that’s taking shape risks bringing years of uncertainty to business.
/jlne.ws/2IOOPGt

Tony Blair says there is a 50-50 chance of another Brexit referendum
Reuters
Former British Prime Minister Tony Blair said there was a 50-50 chance of getting another Brexit referendum as Prime Minister Theresa May will be unlikely to secure a majority for any divorce deal in parliament.
/jlne.ws/2ISBCg0

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Graduate of University of Minnesota School of Journalism and Mass Communication