Trade Finance

According to the latest report, the US crude futures advanced for a third consecutive day on Wednesday, reaching new 2016 highs. The US benchmark posting a nearly 11-month closing record. On the New York Mercantile Exchange, West Texas Intermediate crude for July delivery added +0.62% and rose 87 cents, or 1.7%, to settle at $51.23-showing the highest close for a nearby contract since July 15. Meanwhile, August Brent crude, increased 0.42% the global oil benchmark, reaching $1.07, or 2.1%, to finish at $52.51 a barrel on London’s ICE Futures exchange, its highest close since October. According to the analysts, futures were affected in a positive way boosted by reports of another attack on oil facilities in Nigeria. They were also buoyed by data from an industry trade group, the American Petroleum Institute, which on Tuesday said that US crude inventories had fallen by 3.6 million barrels. Also, crude found support from continued supply disruptions, as well as China import data and a decline in crude inventories.

The SNB foreign currency reserves came out this morning. They were significantly higher than the previous month (602.1bn vs 587.6bn CHF). This is the highest number ever for the SNB, which keeps increasing its reserves since early 2009 and dramatically accelerated since 2012. This shows what, intuitively, we thought: the SNB is still intervening massively to stabilize the EURCHF exchange rate, which is trapped in the 1.10-1.11 range since late April, and almost always above 1.09 since January. And this is not going to stop.

Saudi Arabia has announced to European customers a discount on crude oil by strengthening the signal of growing competition between the two producers of the OPEC cartel, Saudi Arabia and Iran.

The price cut comes after the new bankruptcy during the meeting in Vienna despite the efforts of the Arab country to converge towards a membership freeze of the production ceiling. The Vienna Summit would have to approve a bid rationing of the cartel, but are still conflicting views. In particular, Iran remains opposed, and has recently restored its production, after the long stall caused by contention on nuclear power.

Credit Suisse requires its employees too busy at work to take a breather over the weekend. An internal directive recommends employees to leave the office Friday to the maximum at 7 pm and returning at the earliest at 12 on Sunday.

The document entitled "Protecting Friday Night" was sent on May 23 by e-mail to all staff of the investment banking sector in Europe, Middle East and Asia. Exceptions are possible only if there is at stake a big deal.

The legislation, which in other sectors of the private or the public could probably generate surprise, is apparently regarded as necessary in a world where there are plenty of so-called "workaholic", people who are too devoted to work. These include in particular many young people, who remain in the bank behind their screens until the wee hours.

The American Federal authorities guarantee of bank deposits has announced today that it has concluded an agreement with eight financial institutions, including UBS and Credit Suisse, which concerns a total of $ 190 million (188 million francs).

The agreement puts an end to a series of disputes about the sale of securities related to real estate loans of the former Countrywide Financial. In a statement the Federal Deposit Insurance Corp (FDIC) states that the agreement was signed with UBS, Credit Suisse, Barclays, BNP Paribas, Deutsche Bank, Edward D. Jones & Co., Goldman Sachs and Royal Bank of Scotland.

Pair’s Outlook
USD/JPY decided not to pull back after breaking out of the channel and prolonged the decline down to the weekly S2 level. If there is a rally today, as suggested by the daily technical indicators, it is likely to stay limited by the monthly PP and weekly S1 at 109.50/20. The current target is a critical support area between 107 and 106.65 yen, which is formed by the monthly S1, but even more importantly-by the 38.2% retracement of the four-year up-move started back in 2012. Accordingly, the risks are to the upside.

The merger between the London Stock Exchange and Deutsche Boerse could involve cutting 1,250 jobs in what would become the largest European square.

The predictions announced the two companies even if the London Stock Exchange states that will create 200 new jobs to create new initiatives, waiting for July 4, the London Stock Exchange shareholders approve the transaction. LSE shareholders will receive 0.4421 new shares for each LSE share they own, those of Deutsche Boerse will receive one new share for every Deutsche Boerse in the portfolio.

Credit Suisse retired from private banking activities in Panama: the local advisory units, which includes about twenty employees, will be closed, indicated a spokesman for the bank, confirming a news released by the Swiss portal Finews financial news.

According the press officer, withdrawal from the Central American country had long planned and therefore is not a decision following the Panama scandal Papers, confidential documents on popular offshore company last April.