QE and US rate expectations, Greek talks and the problem with polygraphs

The daily briefing “FirstFT” from the Financial Times.

The ECB’s quantitative easing programme and expected US interest rate increase are rippling through financial markets, pushing the euro to a near 12-year low against the dollar, edging closer to parity. (FT)

A strengthened US dollar rocked US stocks overnight, taking the biggest dent out of the S&P 500 in two months. Asian markets were in turn weaker this morning. (FT)

In the news

Clinton defends personal email Hillary Clinton said she chose to carry one device for “convenience” and that she had gone “above and beyond” what was required by law in terms of disclosure. Of the 60,000 emails she sent from her personal account during her time at the state department, she had chosen to delete about half of them, or those she deemed to be actually personal. (FT)

Google finance chief to quit Patrick Pichette’s big-spending reign has left investors wary and now he’s going to spend more time with his family. “Yeah, I know you’ve heard that line before,” he added. Google will appoint a replacement within the next six months. (FT)

JPMorgan exec moves to cryptocurrency start-up Blythe Masters, who helped pioneer credit derivatives in the 90s is now going to work her magic on transactions using bitcoin . She has re-emerged as chief executive at Digital Asset Holdings, which aims to be a venue for buyers and sellers of financial assets to meet and transact in the cryptocurrency. (FT)

Goldman Sachs on cryptocurrency technology It reckons it could wipe out a fifth of the money transfer industry’s consumer-to-consumer revenues. It also calculates that 80 per cent of Bitcoin trades are now renminbi linked, up from around half a year ago. (FT)

Russia distanced itself further from Nato It pulled out of a forum for discussing conventional arms control in Europe. By closing another channel of communication with the west on security issues, Moscow has confirmed its conviction that it no longer feels bound to longstanding security architecture on the continent. (FT)

Myanmar protests Student protesters clash with riot police during a march in Letpadan, 130km north of Yangon. Student demonstrators have been marching from Mandalay to Yangon, arguing that an education bill would restrict academic freedom. Video footage showedpolice beating protesters. (Vice)

It’s a big day for

Narendra Modi The Indian prime minister is on a five-day trip, visiting Indian Ocean island nations as part of a charm offensive aimed at repairing regional alliances and pushing back atChina’s growing clout in the area. (FT)

Greek negotiations Talks between Greece and its bailout creditors will begin in both Brussels and Athens after a two-week stand-off. The Greek government is trying to persuade the country’s social security funds to hand over hundreds of millions of euros immediately to ensure that pensions and civil servants’ salaries are paid this month. (FT)

Ukraine’s bailout The IMF board meets to decide on a $17.5bn bailout. Ukrainian bonds rallied yesterday in expectation of an approval. (FT)

American banks The Federal Reserve announces the results of its second round of stress tests for 31 banks. All banks passed the first round but Citibank will be closely watched after it failed last year. (FT)

Food for thought

Trading places A little-known proprietary trading firm has clawed its way into the big leagues using an army of relatively low-paid recruits in India, Kenya and China. Its success shows how the offshoring that began with manufacturing and services is now encroaching on the diehard capitalists of the western trading industry. (FT)

Engineering perfect babies Germ line engineering, the editing of DNA in embryos, is further along than anyone imagined. This has raised an ethical dilemma for scientists on how to proceed with the technology. (MIT Technology Review)

The problem with polygraphs Psychopaths literally do not sweat the test and anxiety-prone innocents fare badly. If a polygraph machine can be tricked it should not be used, argues Anjana Ahuja. (FT)

Video of the day

Federal UK Janan Ganesh talks to Lionel Barber about why the Scottish National Party could end up deciding what legislation gets passed and creating English frustration with the union. (FT)

This article is published in collaboration with The Financial Times. Publication does not imply endorsement of views by the World Economic Forum.

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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: A huge euro logo is pictured next to the headquarters of the European Central Bank REUTERS/Ralph Orlowski.