FX Traders Facing Extinction as Computers Replace Humans (Bloomberg)
Electronic dealing, which accounted for 66 percent of all currency transactions in 2013 and 20 percent in 2001, will increase to 76 percent within five years, according to Aite Group LLC, a Boston-based consulting firm that reviewed Bank for International Settlements data. About 81 percent of spot trading — the buying and selling of currency for immediate delivery — will be electronic by 2018, Aite said. “Foreign-exchange traders are much like stock floor traders: a rapidly dying breed,” said Charles Geisst, author of “Wall Street: A History” and a finance professor at Manhattan College in Riverdale, New York. “Once the banks realize they are costing them money, the positions will dwindle quickly.”
Bankers Reap Benefits of 2013 Rally (WSJ)
All benefited from a steep rise in bank stocks over the past year—shares of the top six U.S. banks on average rose 41% last year, compared with a 30% gain for the Standard & Poor’s 500 stock index.
Former Barclays Employees Charged by U.K. Over Libor Rigging (Bloomberg)
Three former Barclays Plc employees were charged by U.K. prosecutors with conspiring to manipulate Libor, bringing the number of people accused in global probes to more than a dozen. Peter Charles Johnson, 59, Jonathan James Mathew, 32, and Stylianos Contogoulas, 42, were charged with conspiring to defraud between June 2005 and August 2007, the Serious Fraud Office said in an e-mailed statement today. The charges are the first related to manipulation of U.S. dollar Libor, the agency said, while previous cases were linked to interest-rate benchmarks tied to the Japanese yen.
Summers: US faces a ‘Downton Abbey’ economy (CNBC)
The U.S. is at risk of becoming a “Downton Abbey” economy, as the gap between the top 1 percent and the poor widens, former US treasury secretary Larry Summers has warned. In a comment piece for the Financial Times, Summers highlighted that the share of income going to the top earners in the U.S. has increased sharply, while real wages and family incomes remain stagnant. These conditions will last beyond the normalisation of the economic cycle and budget deficits, Summers added. “The cumulative effect of all these developments is that the U.S. may well be on the way to becoming a Downton Abbey economy. President Barack Obama is right to be concerned. Those who condemn him for ‘tearing down the wealthy’ and engaging in un-American populism are, to put it politely, lacking in historical perspective,” Summers wrote.
How a Big Bet on Racing Suits Left U.S. Skaters in the Cold at Sochi (WSJ)
To be sure, no one knows what role, if any, the Mach 39 played in the team’s performance. Some insiders say that once doubts about the suit were planted in the team’s psyche, the skaters’ collective mental focus was broken. Team U.S.A. itself has pored over a multitude of other factors that could have contributed to their poor showing: race tactics, skate blades and the decision to hold their pre-Olympic camp at high altitude…The dramatic turnabout, meanwhile, has created a crisis for Under Armour. With revenues of $2.3 billion, the Baltimore-based company has skyrocketed to prominence in recent years with sleek skin-gripping sports apparel that made it a darling of athletes and investors alike. Long term effects are yet to be known, but on Friday, the stock fell 2.38%. In an interview, Matt Mirchin, the company’s director of marketing, said Monday the company still believes the skinsuit gave the skaters “the strongest chance of winning.” But the controversy hit the company where it hurt most—its credibility in high quality athletic apparel—exactly when it needed to shine on the world stage. With more than 90% of its revenues coming from North America, its partnership with the U.S. speedskating squad was supposed to help the company vault into new international markets.
Nike is actually making Marty McFly’s self-lacing shoes (NYP)
When Marty and Doc set a course for 2015 to blend in they needed to dress like futurites. Marty slipped on a self-adjusting jacket and put on a pair of awesome runners that automatically laced themselves up. Before our very eyes they fastened to his feet. “Power laces!” Marty cried. Now you could be doing the same next year after Nike designer Tinker Hatfield confirmed at an event in New Orleans that power laces were coming for 2015. “Are we gonna see power laces in 2015? To that, I say YES!” Hatfield said. Further information such as what models will get the special lacing system was not disclosed. Read more »