Can John Cryan Save Deutsche Bank From Itself? (BBG)
In his interview with Bloomberg Markets, Cryan dismisses points he disagrees with as “nonsense,” but he also displays a wry sense of humor. “We can’t prove it yet, but we genuinely do think German banking can be profitable,” Cryan says during a discussion on Postbank, sporting a thin smile. “You’ve got to be really efficient, and guess what Deutsche Bank has never really been? But we think we can do it.”
Goldman Sachs retreats from ETF lead market making (Reuters)
Goldman has told fund providers it is scaling back its role as a top lead market maker for ETFs and has already slashed the number of funds it supports in that capacity, according to disclosures, fund managers and other trading firms this month. Relatively high regulatory and other costs of operating as an LMM prompted the pullback by Goldman, one of the few large banks remaining in that role, some people said.
Investor Makes Mammoth VIX Bet That Could Pay Out $265 Million (WSJ)
About 1 million options contracts changed hands on a bet that the CBOE volatility gauge, called VIX, will rise to 25 by October. That’s a level the VIX hasn’t reached since June 2016, when the U.K. surprised global markets by voting to exit from the European Union.
Bitcoin Options Exchange Wins Approval From CFTC (WSJ)
On Monday, a bitcoin options exchange called LedgerX won approval from the CFTC to clear bitcoin options, making it the first U.S. federally regulated platform of its kind. The venue will allow traders to place options bets on virtual currencies, which have recently posted some of the wildest swings across global markets.
Welcome to Xi's Net: Where Politics, Porn and Pooh Are Forbidden (Businessweek)
The Cyberspace Administration of China called a meeting with representatives from leading internet companies, including Tencent, Baidu Inc., and Sohu.com Inc., to instruct about the need for “immediate cleaning and rectification” of online content, or increased self-censorship. In June, regulators shut down a dozen livestreaming apps, part of an apparent campaign to tame vulgar or overly sexualized influences. Female livestreamers have been banned from provocatively eating bananas.
Wisconsin company to install rice-sized microchips in employees (USAToday)
A Wisconsin technology company is offering its employees microchip implants that can be used to scan into the building and purchase food at work. Whether or not to get a chip is up to the employee to decide.
Credit default swaps: a $10tn market that leaves few happy (FT)
If your house were burgled, you would expect your insurance to pay out for the stolen items in full. Imagine your dismay if the company providing the cover said you could — in theory — sue the burglar, so it was not sure whether you deserved full compensation. If you had no intention of launching a lawsuit, the insurer might assess how much your right to take legal action was worth, and deduct this from your payment. The scenario may seem far fetched, but this is precisely the predicament Banco Popular credit-default swap holders find themselves in.
This Is Why It’s So Hard To Be A Contrarian Investor (Stefan Cheplick)
If you think of Wall Street, it’s a giant positive reinforcement machine. Basically, I come in every morning, flip on my Blackberry and check Bloomberg at five in the morning. And of the hundred short ideas that we have in our global fund, I can pretty much predict there’s going to be about twenty to twenty five percent everyday where there is some sort of commentary, research report, analyst buy recommendation, estimates raised, or CEO’s on Bloomberg or CNBC. And generally, it’s noise. Generally there’s not much information or content in that, but it’s nonetheless positive noise. It is why you should be investing in company “A” “B” or “C”.
The Chipotle Corporate Sabotage Theory Returns (BBG)
"We're not saying this as a definitive," he said. "But if you were a short seller and you were looking for where there would be the most financial gain in the restaurant industry, the best way is a food safety scare, and the best stock would be Chipotle."
This Is Not the Mooch I Know (William Cohan, NYT)
I share Mr. Ricks’s concern for my friend Anthony Scaramucci, a good man who is rapidly being tarnished by his proximity to Mr. Trump. I get that an important part of Anthony’s new job is to be loyal to the president and to his agenda. But in the name of decency and self-preservation, he should really curb his enthusiasm. And he’d do well to keep in mind what one of his heroes, Warren Buffett, likes to say: “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
The Mooch did his homework(Daily Show [video])