Deutsche Bank weighing rights issue, FT reports – Some of Deutsche Bank’s shareholders are pushing the bank to conduct another rights issue, and its executive say that such a move is being considered, according to The Financial Times. Reference
GM car owners not in accidents say they deserve compensation, Bloomberg says – People who owned cars that GM recalled but who were not involved in accidents said the company has to compensate them, according to Bloomberg. The auto maker cannot legally compensate accident victims but not other owners of recalled cars, the news service quoted the owners as saying in a court filing. Reference
ISS supports two of Third Point’s nominees for Sotheby’s board – ISS recommends shareholders vote for two of Third Point’s nominees for Sotheby’s board of directors, Olivier Reza and Daniel Loeb, according to multiple reports.
Lockheed says overseas F-35 orders offset Pentagon cuts, WSJ reports – Lockheed Martin’s VP for F-35 development, Steve O’Bryan, said the company has secured enough F-35 fighter jet commitments from buyers outside the U.S. to counter Pentagon cuts and sustain a planned production increase needed to lower the cost of the over-budget jet, reported The Wall Street Journal. Reference
Teamsters override local bargaining units for UPS contract, WSJ reports – The Teamsters union, the national union representing UPS employees, has voted to override three local bargaining units that were holding out on approving parts of a five-year national contract with the company, the Wall Street Journal reports. Reference
Tesla looks to hire workers for ex-Chrysler California plant, Bloomberg says – Tesla (TSLA) has been granted building permits to modify a 431,000-square-foot industrial facility in Lathrop, California and the car-maker’s website shows openings for 32 positions at the plant as it looks to hire engineers and technicians, according to Bloomberg, citing comments from Steve Salvatore, the city?s manager. The Lathrop location was previously a parts-distribution center used by Fiat’s (FIATY) Chrysler Mopar unit. Reference
Moody’s, S&P seen posting record profits on bond bounceback, WSJ says – The two biggest U.S. ratings firms, McGraw Hill Financial’s (MHFI) S&P Ratings and Moody’s (MCO), are expected to post record Q1 profits amid a global resurgence in bond issuance, said The Wall Street Journal. Reference
Samsung’s India rival aims to double market share to 30%, Bloomberg says – Micromax is looking to close the gap between Samsung by producing less expensive devices with larger screens, according to Bloomberg, citing comments from Micromax’s co-founder Rahul Sharma. The Indian phone maker hopes to nearly double market share this fiscal year to 30%. Reference
SINA licenses revoked over pornography, Marbridge Daily says – China’s National Anti-Pornography Office announced that SINA has had its internet publishing license and online audio-visual broadcasting license revoked after pornographic and obscene content was found on its literature and video platforms, reported Marbridge Daily, citing New Express. Sina, which holds the right to appeal the decision, will face a fine valued at 5 to 10 times the value of revenues taken in from illicit content, the report said. Reference
Volatility
As we already mentioned, currency trading remained very quiet over the observed period, as many dealing centres were just coming back from Easter holidays, while economic calendars across the major economies were almost barren. Therefore, it was not a surprise that elevated market volatility was observed only in 10% of the time, with the volatility index hitting a high only of 1.4, and averaging 0.7. One of the least volatile currency pairs, EUR/CHF, were 40% even less volatile than the market itself. In contrast, unemployment rate, business confidence and leading index from Australia, as well as reports form the world’s largest economy were pushing AUD/USD, with the elevated volatility observed in 21% of the time.
The USD/JPY was most volatile on April 16 and 17, with volatility climbing to the turbulent zone more often. These spikes were caused by Chinese GDP, industrial production from Japan and Kuroda’s speeches. On Friday, April 18, both the market and USD/JPY were almost unchanged, due to bank holidays in major countries. The USD/JPY’s volatility reached a low of 0.17 on Friday, however, later in the anticipation of Japan’s trade figures, volatility increased slightly. A fact the trade balance almost quadrupled in March caused stronger interest in the Yen, with USD/JPY volatility rising to 1.12. On Tuesday, the pair performed another spike in volatility, which was provoked by a release of the existing home sales from the United States that came stronger-than-expected.
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