Frontrunning: October 7

  • Pound struggles to recover after plunging 6% in 2 minutes (FT)
  • Flash Crash of the Pound Baffles Traders With Algorithms Being Blamed (BBG)
  • Pound Plummets Against Dollar in Chaotic Trading (WSJ)
  • Two-Minute Mystery Pound Rout Puts Spotlight on Robot Trades (BBG)
  • U.S. nonfarm payroll job growth seen pushing case for Fed hikes (Reuters)
  • Qatar won’t sell Deutsche Bank shares, might buy more (Reuters)
  • Commerzbank Disses Deutsche Bank in Blitz to Lure German Clients (BBG)
  • Snapchat Parent Working on IPO Valuing Firm at $25 Billion or More (WSJ)
  • IMF, global finance leaders fret over populist backlash (Reuters)
  • Foreigners in London ‘Horrified’ by May’s Immigration Vision (BBG)
  • Wal-Mart Expects Profit Pressures, Fewer New Stores (WSJ)
  • Hurricane Matthew batters Florida as Haiti death toll rises (Reuters)
  • Russia Becomes a Grain Superpower as Wheat Exports Explode (BBG)
  • Honeywell Cuts Sales Projections (WSJ)
  • Deutsche Bank eyes asset management unit IPO (FT)
  • Assad offers rebels amnesty if they surrender Aleppo (Reuters)
  • Special Report: In Duterte’s war on drugs, local residents help draw up hit lists (Reuters)
  • Nobel Peace Prize awarded to Colombian President Juan Manuel Santos (CNN)
  • Republican Trump says 70 percent of federal regulations ‘can go’ (Reuters)
  • Lynn Tilton Just Can’t Stop Suing the SEC (BBG)
  • Hollande demands tough Brexit negotiations (FT)


Overnight Media Digest


– Snap Inc is working on an initial public offering that could value the company at $25 billion or more.

– Samsung Electronics Co said it expects to report a slight improvement in its operating profit for the third quarter from a year earlier, even as it grapples with a global recall of its Galaxy Note 7 smartphone.

– Wal-Mart Stores Inc said it would only open about half as many supercenters next year compared with last year, and will instead direct more of its annual capital spending towards boosting e-commerce sales and customer service.

– Honeywell International Inc cut its sales projections on Thursday, citing a business slowdown and delays.

– Williams Companies Inc said three of its directors will not stand for re-election when their terms expire next month as part of the company’s board overhaul.



French President Francois Hollande said on Thursday that Britain must suffer the consequences of leaving the European Union in order to save the institution from an existential crisis.

UK finance minister Philip Hammond moved to reassure Wall Street that Britain will seek a special deal for financial services when it leaves the EU and will ensure the continued flow of international talent to the City of London.

David Richards has been reappointed to board and as chief executive officer of WANdisco Plc with immediate effect, less than a week after he kicked off his battle to return to the helm of the company.



– The CIT Group Inc, a commercial lender, agreed on Thursday to sell its aircraft leasing business to a Chinese-owned competitor for about $10 billion, signifying a big step by CIT to slim itself down in the face of pressure from investors.

– Mars Inc has finally taken full control of Wrigley, formally putting M&Ms and Altoids mints in the same division – and cashing out its partner, Warren Buffett, in the process.

– Deutsche Bank AG said on Thursday that it would eliminate 1,000 full-time positions in Germany as part of job cuts the embattled lender first announced last year.

– The six-day courtroom confrontation between Maurice Greenberg and lawyers for New York State accusing him of orchestrating sham transactions as chief executive of American International Group Inc 16 years ago ended Thursday without any knockout blows.

– In the six weeks since federal agents raided a suburban Maryland home and arrested Harold Martin III on suspicion of stealing classified information from the National Security Agency, another organization has quietly prepared to face the fallout: Booz Allen Hamilton, Martin’s employer.




** Thomson Reuters Corp is undertaking a major expansion to its Canadian operation with a plan to build a technology hub that will add 400 high-tech jobs in downtown Toronto over the next two years.

** Canada will see an upsurge in protests and other direct action from indigenous communities if governments approve pipelines and energy projects without their consent, Assembly of First Nations Grand Chief Perry Bellegarde said on Thursday.

** Quebec’s securities regulator presented a “distorted picture” of events in outlining how former Amaya Inc chief executive David Baazov was the source in a sophisticated insider-trading and kickback scheme involving a group of closely knit friends and associates, his lawyer says.

** Ladies Learning Code, a five-year old organization that has taught more than 40,000 women and girls how to program software, announced on Thursday it is spearheading the creation of Canada Learning Code. Its goal is to teach 10 million Canadians how to code over the next decade while it also expects to apply for charitable status and raise C$50 million ($38 million) to fund its goals.


** Millennials will lose up to 20 percent of their purchasing power from new mortgage rules, which will exacerbate affordability issues, says an organization that represents about 20,000 realtors in British Columbia.

** Foreign buyers dropped to 1 percent of the Vancouver resale market after being as high as 19 percent, according to a new report from Canada Mortgage and Housing Corp.

** When Rick Peterson officially enters the leadership race for the federal Conservatives in a week or so, he will do so with the support and policy advice of Mark Mullins, a former Bay Street chief economist and a former executive director of the Vancouver-based think-tank the Fraser Institute.



The Times

IMF leader Christine Lagarde has endorsed the British prime minister’s concerns about low interest rates and the need to help families left behind by globalisation, as she warned that global growth has been “too low for too long”.

Bank of England Governor Mark Carney has played down suggestions of a rift with the prime minister over the impact of loose monetary policy.

The Guardian

Heathrow is hoping an 11th-hour push pegged to Brexit will secure approval to build a third runway, with a final verdict from the government expected within a fortnight.

Mark Carney has backed the British prime minister’s call to rethink Britain’s economic policy and rejected the idea that criticism of the side-effects of unconventional measures amounted to an attack on the independence of the Bank of England.

The Telegraph

Deutsche Bank has announced that it will be cutting a further 1,000 jobs as part of its restructuring plans.

Saudi Aramco, the world’s biggest oil company, is planning to sell shares in its entire business and give investors unprecedented access to its financials ahead of its $2 trillion (1.62 trillion pounds) stock exchange listing.

Sky News

Productivity in the UK workforce is exceeding levels seen before the financial crisis for the first time – but the country is making little progress catching up with G7 rivals.

The Government has approved fracking for shale gas at one site in Lancashire but has asked for more information on another.

The Independent

Snapchat is putting together an initial public offering that would value the company at $25 billion (20.24 billion pounds)

Paul Watson, the leader of Sunderland council, said people are worried about Nissan’s threat to scrap a potential new investment in the city’s car plant, which provides work for 7,000 people.


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