Pound Slides as U.K. Vote Springs Hung Parliament Before Brexit (BBG)
The pound slumped 2 percent to $1.2702 as of 8:45 a.m. London time on Friday, after touching $1.2636, the lowest level since April 18, the day May called the snap election. It slid as much as 2.5 percent, set for the biggest drop since the days after the Brexit vote. The decline in sterling has already taken it below analysts’ median forecast of $1.28 by year-end. Against the euro, the pound tumbled as much as 2.3 percent to 0.8860, its weakest level since November.
NOMURA: Theresa May’s election failure raises the likelihood of a softer Brexit (BI)
"These election results call the Brexit result into question – at the least, this could be seen as a rejection of Mrs May’s hard stance on the upcoming negotiations," Bilal Hafeez, a European rates analyst at Nomura wrote in a note to clients on Friday. "Whatever the case, her party’s position in parliament will be a roadblock to getting her own way on what is set to be the most defining event in many years," he said.
Matt Zames departure shines spotlight on JPMorgan succession (FT)
In resigning, Mr Zames joins a long line of senior executives considered chief executive material to have left the bank over the past decade or so. Mr Dimon is among the longest-serving CEOs on Wall Street, which has strained the patience of some of those working under him... “[Mr Zames] was playing a long game,” said one former colleague. “It’s not about money; it’s about power and influence. He didn’t want to wait any longer.”
Deutsche Bank Won’t Disclose Trump Dealings Citing Privacy (BBG)
“Deutsche Bank, like other financial institutions, is not permitted to disclose details related to its customers,” lawyers Steven R. Ross and Leslie B. Kiernan of Akin Gump, said in a letter published on the bank’s website Friday. “This is true even if the individual is a government official or well-known person, and even in circumstances where the individual has made some disclosure regarding their relationship with their banking institution.”
Trump nominates hedge fund impresario Scaramucci for ambassador position (Fox Business)
Hedge fund impresario Anthony Scaramucci is finally getting his job in the Trump administration. FOX Business can confirm that Scaramucci has been nominated by President Trump to be the ambassador to the Organization for Economic Cooperation and Development, which has a mission statement to “promote policies that will improve the economic and social well-being of people around the world.”
Hannibal Spirits: S&P 500 Climbing Mountains (Yardeni)
So far, the current bull market has marched impressively forward despite 56 anxiety attacks, by my count. They were false alarms. I remain bullish. My long-held concern is that the bull market might end with a melt-up that sets the stage for a meltdown. The latest valuation and flow-of-funds data certainly suggest that the melt-up scenario may be imminent, or underway.
House votes to kill Dodd-Frank. Now what? (CNNMoney)
Unlike the House, Republicans will need to sway at least eight Democrats to pass a regulatory reform bill to cross the 60-vote threshold. GOP senators currently hold 52 seats in the Senate. Those who closely follow the debate believe there's no chance Hensarling's bill would pass the Senate as is. Rather, they expect the upper chamber to advance a separate regulatory relief bill of their own.
Americans are suddenly defaulting on their credit cards (BI)
The American economy has looked pretty robust of late — unemployment just hit a 16-year low and stocks recently reached an all-time high. This makes it all the more curious that Americans have suddenly stopped paying off their credit card bills at a rapid rate. In the last two fiscal quarters, banks reported a steep rise in credit card charge-offs, according to a report from Moody's.
Uber CEO Kalanick advised employees on sex rules for a company celebration in 2013 ‘Miami letter’ (Recode)
Wrote Kalanick: “Do not have sex with another employee UNLESS a) you have asked that person for that privilege and they have responded with an emphatic ‘YES! I will have sex with you’ AND b) the two (or more) of you do not work in the same chain of command. Yes, that means that Travis will be celibate on this trip. #CEOLife #FML.”