Switzerland’s SNB Still Ready for Forex Intervention as U.S. Drops Manipulator Tag
John Revill, 16 April 2021
ZURICH (Reuters) – The Swiss National Bank (SNB) said on Friday it remained ready to intervene in foreign exchange markets, after the U.S. Treasury Department dropped its currency manipulator label for the country even though it met criteria for the designation.
The Swiss central bank noted the U.S. Treasury Department did not use the term currency manipulator in a new report, adding its foreign exchange purchases were not intended to alter Swiss balance of payments or unfairly help the Swiss economy.
“The SNB’s position is therefore clear: Switzerland does not engage in any currency manipulation,” the SNB said. Continue reading “Article: Switzerland’s SNB Still Ready for Forex Intervention as U.S. Drops Manipulator Tag”
Japan ensures G20 pledge vs ‘disorderly’ moves as FX language tweaked, sources say
Tetsushi Kajimoto, 09 April 2021
TOKYO (Reuters) – Japan made sure that language warning against excess currency market volatility remained in place when G20 finance leaders made a rare tweak to their message on exchange-rate moves, said officials with knowledge of the deliberations.
In the first communique compiled since U.S. President Joe Biden took office, finance leaders of the Group of 20 major economies called for the need for currency moves to reflect “underlying” economic fundamentals. Continue reading “Article: Japan ensures G20 pledge vs ‘disorderly’ moves as FX language tweaked, sources say”
Credit Suisse overhauls management as it takes $4.7 billion hit on Archegos
Brenna Hughes Neghaiwi, Matt Scuffham, 06 April 2021
ZURICH (Reuters) -Credit Suisse said on Tuesday it will take a 4.4 billion Swiss franc ($4.7 billion) hit from dealings with Archegos Capital Management, prompting it to overhaul the leadership of its investment bank and risk division.
The scandal-hit bank now expects to post a loss for the first quarter of around 900 million Swiss francs. It is also suspending its share buyback plans and cutting its dividend by two thirds. Continue reading “Article: Credit Suisse overhauls management as it takes $4.7 billion hit on Archegos”
U.S. trade chief voices concern to Vietnam over currency practices
Eric Beech, 01 April 2021
WASHINGTON (Reuters) -U.S. Trade Representative Katherine Tai, in a call on Thursday with Vietnam’s minister of industry and trade, highlighted U.S. concerns about Vietnam’s currency practices, a USTR statement said.
Tai and the Vietnamese minister Tran Tuan Anh also “discussed U.S. concerns on illegal timber practices, digital trade and agriculture,” the statement said.
Vietnam’s Ministry of Industry and Trade in a statement on Friday said Vietnam and the United States “will continue to actively cooperate to comprehensively address the concerns to maintain a stable trade relation.” Continue reading “Article: U.S. trade chief voices concern to Vietnam over currency practices”
Turkey fines firms over short selling irregularities
Reuters, 01 April 2021
Turkey fined 10 securities firms for up to 7.8 million lira ($1 million) in relation to irregularities in short-selling transactions, the country’s Capital Markets Board said in its weekly bulletin on Thursday.
Fines of various amounts were imposed on firms including Merrill Lynch International, JP Morgan Securities, Goldman Sachs International, Credit Suisse Securities Europe and Barclays Capital Securities, the statement said.
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In Archegos fire sale, Credit Suisse, Nomura burned by slow exit
Matt Scuffham, Elizabeth Dilts Marshall, Brenna Hughes Neghaiwi, 31 March 2021
NEW YORK/ZURICH (Reuters) -While banks including Goldman Sachs, Morgan Stanley and Deutsche Bank were able to exit their trades with Archegos Capital relatively unscathed, Credit Suisse and Nomura have been burned in the fire sale.
The blowup of the Archegos fund, a family office run by former Tiger Asia manager Bill Hwang, is still reverberating across the financial system, with global banks so far standing to lose more than $6 billion.
Switzerland’s Credit Suisse and Japan’s Nomura are expected to bear the brunt of that. Continue reading “Article: In Archegos fire sale, Credit Suisse, Nomura burned by slow exit”
Big banks win dismissal of U.S. Treasury rigging litigation
Jonathan Stempel, 31 March 2021
NEW YORK (Reuters) – A U.S. judge on Wednesday dismissed long-running litigation accusing 10 large banks of conspiring to suppress competition in the now $21.2 trillion market for U.S. Treasury securities.
U.S. District Judge Paul Gardephe in Manhattan ruled against 21 pension, retirement and benefit funds, as well as unions, banks, individuals, and companies that traded in Treasuries, in the proposed antitrust class action.
The defendants included Bank of America, Barclays, BNP Paribas, Citigroup, Credit Suisse, Goldman Sachs, JPMorgan Chase, Morgan Stanley, NatWest Group and UBS, as well as trading platform operator Tradeweb Markets. Continue reading “Article: Big banks win dismissal of U.S. Treasury rigging litigation”
Taiwan allows Cargill to repatriate $2 billion frozen in currency speculation case: sources
Ben Blanchard, 29 March 2021
TAIPEI (Reuters) – Taiwan’s central bank has allowed U.S.-based commodities house Cargill Ltd to repatriate around $2 billion that had been frozen as part of an investigation into currency manipulation, four people with direct knowledge told Reuters.
The central bank last month punished four foreign banks, including Deutsche Bank for helping grains firms speculate in the deliverable forwards foreign exchange market, as it moved to slow the Taiwan dollar’s rise.
Speaking on condition of anonymity, as they were not authorised to speak to journalists, sources told Reuters that Cargill was one of the main grains companies involved. The central bank has not named Cargill in its communications on the matter. Continue reading “Article: Taiwan allows Cargill to repatriate $2 billion frozen in currency speculation case: sources”
CFTC hits former fuel-oil trader with $100,000 penalty for market manipulation
Reuters, 25 March 2021
WASHINGTON — The U.S. Commodity Futures Trading Commission (CFTC) has settled charges against a former fuel oil trader for market manipulation, the regulator said in a statement on Thursday.
Emilio José Heredia Collado admitted to manipulating, and attempting to manipulate, a U.S. fuel oil benchmark. The CFTC hit Heredia with a $100,000 civil penalty and permanently banned him from trading commodity interests, the statement said.
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Report: Robinhood Is Building A Platform To Democratize IPOs
Sarah Hansen, 25 March 2021
Robinhood is working on a platform that will allow its users to buy into initial public offerings, Reuters exclusively reported Thursday, citing people familiar with the process, marking another push by the popular investment app to democratize investment opportunities that are traditionally only available to big banks and Wall Street firms.
The allocation of IPO shares is a complex process—it doesn’t happen the same way for every listing and can depend on the type of industry and market conditions at the time. In general, the majority of available shares go to institutional investors. Some shares can also be reserved for retail investors, who are then able to buy them through their brokerage firms. More established and wealthier retail investors often have a better chance of receiving IPO shares than lay people, especially in popular listings. Continue reading “Article: Report: Robinhood Is Building A Platform To Democratize IPOs”
Amazon calls on India not to alter e-commerce investment rules – sources
Aditya Kalra, 25 March 2021
NEW DELHI (Reuters) – Amazon asked the Indian government on Thursday not to change e-commerce foreign investment rules until investigations into its business practices had been concluded, two sources familiar with the discussions told Reuters.
The commerce ministry met e-commerce players after allegations by retailers, which are a crucial part of Prime Minister Narendra Modi’s support base, that Amazon and Walmart’s Flipkart create complex structures to bypass federal foreign investment rules and damage small traders.
Both companies deny any wrongdoing and say they are helping small businesses in India. Continue reading “Article: Amazon calls on India not to alter e-commerce investment rules – sources”
UPDATE 3-Less vocal Swiss central bank still set for loose policy
John Revill, Silke Koltrowitz, 25 March 2021
ZURICH, March 25 (Reuters) – The Swiss National Bank toned down its verbal commitment to foreign currency interventions and raised its inflation outlook on Thursday, but chairman Thomas Jordan said this did not mean the bank would quit its ultra-expansive policy.
The central bank kept its benchmark interest rate locked at minus 0.75% as forecast by all economists in a Reuters poll, reiterating its commitment to a policy in place since 2015, spearheaded by the world’s deepest negative rate. Continue reading “Article: UPDATE 3-Less vocal Swiss central bank still set for loose policy”
France’s Covea files complaint against CEO of reinsurer Scor
Matthieu Protard, 24 March 2021
PARIS, March 24 (Reuters) – French insurer Covea has filed a complaint against the CEO of reinsurer Scor SCOR.PA, Denis Kessler, alleging market manipulation and misuse of corporate assets, it said on Wednesday.
Covea, which is Scor’s biggest shareholder with a 8.45% stake, based on Refinitiv data, said in a statement the complaint filed with financial prosecutors followed a 195 million euro ($230.63 million) share buyback that Covea alleged had “artificially” inflated Scor’s share price. Continue reading “Article: France’s Covea files complaint against CEO of reinsurer Scor”
Hong Kong activist charged with foreign collusion under national security law
Jessie Pang and James Pomfret, 24 March 2021
HONG KONG (Reuters) – Hong Kong pro-democracy activist Andy Li was charged on Wednesday with “conspiracy to commit collusion” with a foreign country to endanger national security, two days after he was released from a Chinese prison.
At the city’s West Kowloon Court, the prosecutor told the judge that Li, who had been detained by Chinese authorities after trying to flee Hong Kong for Taiwan by boat with 11 others last August, would also be charged with two other offences including possession of ammunition without a licence.
The ammunition in question included used tear gas canisters.
Under the city’s China-imposed national security law, defendants could face up to life in prison if convicted. Continue reading “Article: Hong Kong activist charged with foreign collusion under national security law”
Fintech startup Feedzai valued at $1 billion in KKR-led funding round
Anna Irrera, 24 March 2021
LONDON (Reuters) – Financial technology group Feedzai said on Wednesday it had raised $200 million in a round led by investment company KKR valuing the startup at more than $1 billion.
Existing investors, including Sapphire Ventures and Citi Ventures, also participated in the round, the San Mateo, California-headquartered company said.
Feedzai develops artificial intelligence and machine learning technology that helps banks and other financial firms to spot and prevent payments fraud, money laundering and other types of illicit activities. Continue reading “Article: Fintech startup Feedzai valued at $1 billion in KKR-led funding round”