Article: Japan analysts says US Treasury unconcerned over yen manipulation

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Japan analysts says US Treasury unconcerned over yen manipulation

Eamonn Sheridana, 19 April 2021

Japan is on the ‘monitor’ list having satisfied 2 of the 3 US criteria, along with other countries. You can find more on the report here:
US drops Switzerland and Vietnam from FX manipulator designation status

But, says Mizuho, the focus is not on the yen but rather on emerging economies:

US likely to prioritize the Mexican peso or Asian currencies (excl-yen) the US report cited IMF analysts saying the yen was largely in line with fundamentals and made no mention of the yen’s weakness so far in 2021
Continue reading “Article: Japan analysts says US Treasury unconcerned over yen manipulation”

Article: Currency control is not black and white

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Currency control is not black and white

SCMP Editorial, 18 April 2021

There are myriad ways for a government to affect the direction and value of its national currency. Some are labelled currency manipulation; others not. It depends on one’s definitions. Those of the United States Treasury mean the country cannot engage in such manipulation, an alleged sin only other economies can commit. Therefore it sits in judgment of others and threatens sanctions against those who allegedly game the global “rules-based” trade system.

However, spending trillions of US dollars on bond buying – also known as quantitative easing – for more than a decade and on economic relief packages to support growth and encourage inflation have achieved the same or similar results as manipulation. They have already caused significant depreciation of the US dollar against most major currencies and the slide is expected to continue. It is doubly ironic that in the middle of a trade and ideological war between the world’s two superpowers, Washington has, in its wisdom, declined to label mainland China as a currency manipulator but added friendly Taiwan to the watch list. The political nature of the exercise was exposed when the US Treasury, under former president Donald Trump, designated China as a manipulator in mid-2019, despite not meeting its full criteria, and then abruptly lifted the label five months later as a concession in a trade deal. Continue reading “Article: Currency control is not black and white”

Article: JPMorgan Traders Fired in Spoofing Probes Sue Bank in N.Y., U.K.

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JPMorgan Traders Fired in Spoofing Probes Sue Bank in N.Y., U.K.

Jonathan Browning, 14 April 2021

Ex-JPMorgan Chase & Co. traders who were fired in connection with recent U.S. Justice Department inquiries into market manipulation have a message for their former employers: give us our jobs back.

In separate lawsuits in London and New York, two of the bank’s former traders are saying they were unfairly dismissed and are asking to be reinstated. Both men had proximity to spoofing tactics that wound up being prosecuted by U.S. authorities but neither was charged. They both maintain they did not engage in the manipulative conduct themselves.

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Article: The Reddit revolt: GameStop and the impact of social media on institutional investors

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The Reddit revolt: GameStop and the impact of social media on institutional investors

Annabel Smith, 13 April 2021

The Reddit revolution in the US has drawn attention to the potential power that a growing force of retail investors can wield in stock markets when equipped by social media.

Amateur investors have increasingly engaged with retail platforms in the last year, partly due to the pandemic leaving them idol at home, but also due to the newfound onslaught of information through social media and access to the market through retail brokerages and platforms such as Robinhood. Continue reading “Article: The Reddit revolt: GameStop and the impact of social media on institutional investors”

Article: FICO Survey Finds UK Banks Struggled With Covid-19 Financial Crime Surge

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FICO Survey Finds UK Banks Struggled With Covid-19 Financial Crime Surge

Polly Jean Harrison, 10 April 2021

As cases of fraud and money laundering rose during the pandemic last year, banks in the UK faced unforeseen challenges. In a new study by global analytics software provider FICO and independent research firm OMDIA, 79 per cent of respondents from UK banks said that working from home had a high or major impact on the effectiveness of their financial crime prevention.

“Just as the pandemic put huge stresses on the health care system, it put huge stresses on fraud and financial crime management teams,” explained Toby Carlin, senior director for fraud consulting at FICO. “Teams that collaborate in person and work with large software systems that have restricted access found that working from home hurt their productivity. This was compounded as the volume of fraud attacks rose.” Continue reading “Article: FICO Survey Finds UK Banks Struggled With Covid-19 Financial Crime Surge”

Article: US cautions China-backed Port City could turn into money-laundering haven

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US cautions China-backed Port City could turn into money-laundering haven

The Island Online, 12 April 2021

(ANI) US Ambassador to Sri Lanka and Maldives, Alaina Teplitz on Saturday warned Sri Lanka of unintended consequences of ‘nefarious actors’ who may try to misuse a China-backed Colombo Port City’s easy business rules as a permissive money laundering haven amid concerns of tax leaks.

Sri Lanka has unveiled draft legislation for a Colombo Port City Commission which allows for sweeping tax breaks, tax-free salaries and to be an offshore financial centre. Continue reading “Article: US cautions China-backed Port City could turn into money-laundering haven”

Article: Being ‘tough on China’ can’t mean harming our own interests

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Being ‘tough on China’ can’t mean harming our own interests

DANIEL L DAVIS, 11 April 2021

Being “tough on China” is politically popular in Washington these days, and Biden has come out of the gate swinging against Beijing. But “being tough” isn’t a policy and reflexively applying it to China doesn’t serve U.S. interests. A logical and realistic approach to Beijing, however, can.

Obama’s “pivot to Asia” in 2011 opened a new chapter in Sino-American relations and turned an always challenging relationship even more tense. From the beginning of his administration, Trump characterized China in starkly adversarial terms, calculating domestic political advantage in starting a trade war. In the early months of the Biden term, it appears the new president has chosen to accelerate this deterioration in relations. Continue reading “Article: Being ‘tough on China’ can’t mean harming our own interests”

Article: U.S. Spy Agencies Warn of Threats From Digital Currency to AI

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U.S. Spy Agencies Warn of Threats From Digital Currency to AI

Joen Coronel, 10 April 2021

The U.S. intelligence community predicts an increasingly leaderless and unstable world in the coming decades as trends such as artificial intelligence, digital currencies and climate change reshape the global arena, according to the National Intelligence Council.

The coming decades will be characterized by a mismatch between global challenges and “the ability of institutions and system to respond,” according to “Global Trends 2040: A More Contested World.” The result will be “greater contestation at every level” — especially between the U.S. and China. Continue reading “Article: U.S. Spy Agencies Warn of Threats From Digital Currency to AI”

Article: Can the US compete?

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Can the US compete?

Rod Kapunan, 10 April 2021

Many are speculating whether the US has the budget to sustain the cost for the long-delayed rehabilitation of America’s infrastructure. It was announced it will cost the Biden administration a whopping $2 trillion to undertake the repairs of the country’s mostly aging infrastructure.

As observed, the US economy is saddled with great contradictions. It is deeply mired in debt that it cannot just do all things at the same time. Some say the problem is for the US economy to undergo some kind of economic metamorphoses, similar to what China did to overcome the obstacle inherent in the US system.

One must remember that the greatest enemy of the US is the contradiction from within its own system. The US is hampered in what Marx says “internal contradictions” – that the interest of the various pressure groups could stymie most of its objectives. Continue reading “Article: Can the US compete?”

Article: Financial Tyranny: Footing The Tax Bill For The Government’s Fiscal Insanity

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Financial Tyranny: Footing The Tax Bill For The Government’s Fiscal Insanity

TYLER DURDEN, 09 April 2021

“We are now speeding down the road of wasteful spending and debt, and unless we can escape we will be smashed in inflation.”- Herbert Hoover

We’re not living the American dream. We’re living a financial nightmare.. Continue reading “Article: Financial Tyranny: Footing The Tax Bill For The Government’s Fiscal Insanity”

Article: Half of S&P 500 report more money for foreign taxes than U.S. taxes

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Half of S&P 500 report more money for foreign taxes than U.S. taxes

STEPHEN GANDEL, 09 April 2021

Nearly half of the large U.S. companies that make up the S&P 500-stock index set aside more money to pay foreign taxes in 2020 than they did for payments to the U.S. government — a lot more money.

In all, 241 S&P 500 companies last year earmarked a combined $73 billion for taxes to foreign governments and just $6.7 billion to cover U.S. taxes, according to a CBS MoneyWatch analysis of the companies’ regulatory filings and data from financial information firm FactSet. That’s a foreign-to-domestic tax ratio of more than 10-to-1.

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Article: Hong Kong stock exchange to extend circuit breakers to futures products to temper wild gyrations in equities and derivatives

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HKEX incoming CEO Nicolas Aguzin

Hong Kong stock exchange to extend circuit breakers to futures products to temper wild gyrations in equities and derivatives

Yahoo Finance, 09 April 2021

The move will add to similar controls put in place since August 2016, first on extreme gyrations in equities and a year later on derivative products. They followed a series of events that provoked regulatory probes into market misconduct such as price manipulation and pump-and-dump scandals.

“The volatility control mechanism (VCM) has worked as intended without any negative feedback from the market,” said Tom Chan Pak-lam, chairman of Hong Kong Institute of Securities Dealers, the local brokerage industry body. “In many cases, sharp and sudden price movements were smoothed out as the cooling-off periods allowed participants to react while trading continued.”

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Article: ‘Pro-Crypto’ Peter Thiel Warns Bitcoin “Could Be A Chinese Financial Weapon Against The US”

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‘Pro-Crypto’ Peter Thiel Warns Bitcoin “Could Be A Chinese Financial Weapon Against The US”

TYLER DURDEN, 08 April 2021

Cryptocurrencies are typically open-source, meaning that anyone with technical ability can contribute. On top of that, anyone disgruntled with a given cryptocurrency’s trajectory can “fork” it, creating a new coin (as we have seen in both bitcoin and ethereum). Cryptocurrencies are also famously designed to be extralegal – beyond the reach of the government – although of course the SEC and the IRS hope to quash that notion.

Meanwhile, artificial intelligence relies on the trend that came before it, big data, and big data is gathered by big entities. Historically, communist regimes like the Soviet Union and Maoist China sought to create highly centralized command economies, noted Thiel. A sufficiently powerful AI could realize the bureaucrat’s dream of accurately predicting peasant farmers’ potato yields months in advance from thousands of miles away.

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Article: THE POTENTIAL DOMINO EFFECT OF GAMESTOP

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THE POTENTIAL DOMINO EFFECT OF GAMESTOP

Lawyer Monthly, 07 April 2021

The GameStop saga stopped the stock market in its tracks earlier this year, with wealthy hedge funds losing millions of pounds. The move was orchestrated on a subreddit thread, with vast numbers of average investors joining forces to push up the share price.

No one can deny the effect was tumultuous. However, what isn’t so clear is what will happen in the longer term. The legalities of the subreddit crowd are still in question, yet there’s no guarantee that it won’t happen again. Continue reading “Article: THE POTENTIAL DOMINO EFFECT OF GAMESTOP”

Article: People moves: facing the funds fallout music, CS changes chairs, and more

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People moves: facing the funds fallout music, CS changes chairs, and more

Natasha Rega-Jones, 07 April 2021

Credit Suisse faces some tough choices as it absorbs the extraordinary losses inflicted by the Greensill and Archegos fund fiascos and subsequent ratings hit. On April 6, the firm announced an estimated pre-tax loss of approximately Sfr900 million ($963 million) for the first quarter, including a charge of Sfr4.4 billion ($4.7 billion) in respect of Archegos. At the same time, the firm announced that investment bank CEO Brian Chin and chief risk and compliance officer Lara Warner were stepping down from their roles with immediate effect.

Christian Meissner, co-head of wealth management banking advisory and vice-chair of investment banking, will replace Chin in May. Meissner was previously head of global corporate and investment banking at Bank of America Merrill Lynch, and earlier co-CEO for EMEA at Lehman Brothers. Continue reading “Article: People moves: facing the funds fallout music, CS changes chairs, and more”