Monthly Archives: September 2019

Draghi Backs Calls for Fiscal Union to Bolster Eurozone – Financial Times

European Central Bank president Mario Draghi has thrown his weight behind French president Emmanuel Macron’s call for fiscal transfers between eurozone member states to bolster the long-term future of the single currency.

Can the FX Industry Still Innovate Like it Did 20 Years Ago? – Profit & Loss

“The banks were a hotbed of innovation and the biggest change I’ve seen in FX is how, over time, this has all been locked down.”

Brexit’s $74 Trillion Battle Over Derivatives is Heating Up – Bloomberg

London’s dominance of the derivatives market is under threat, with European firms at risk of being blocked from using clearinghouses in the British capital within six months.

Nancy Pelosi Announces Formal Impeachment Inquiry of Trump – New York Times

Speaker Nancy Pelosi said the House would begin formal impeachment proceedings against President Trump, ending months of caution by Democrats.

• Pelosi Impeachment Gambit Brings Peril for Trump – and Democrats – Bloomberg
• The Mother of all Trumpian Battles – Financial Times
• White House to Release Transcript of Trump’s Ukraine Call as Impeachment Efforts Begin – Wall Street Journal
• Trump Impeachment? History Suggests Wall Street Ought Not Worry – Reuters

TPound Rallies, Stocks Slip on Supreme Court Ruling – Reuters

Sterling extended gains on Tuesday while eurozone stocks tumbled after Britain’s Supreme Court ruled that British Prime Minister Boris Johnson had acted unlawfully when he advised Queen Elizabeth to suspend Parliament this month.

• Supreme Court Rules Boris Johnson’s Suspension of Parliament was ‘Unlawful’ – Financial Times

Fed Announces New Effort to Soothe Money Markets – Financial TimesThe Federal Reserve stepped up its efforts to reduce volatility in short-term lending markets, announcing on Friday that it would inject up to $90bn in two-week loans into the financial system starting next week.

• New York Fed Rejects Wall St Criticism of Response to Repo Turmoil – Financial Times

European Commission Raises Hopes of a Brexit Deal – Financial Times
Jean-Claude Juncker, European Commission president, has opened the door to a possible Brexit deal, saying he was ready to scrap the controversial Irish “backstop” if Boris Johnson came up with a viable alternative.

• What Happens if Johnson’s Plan is Unlawful, Supreme Court Asks – Bloomberg
• EU Wary of Brexit Crash Landing at High-Stakes October Summit – Reuters
• Pound Could Slump to Parity on a Hard Brexit, BNY Mellon Says – Bloomberg
• Pound Rally Slows as Ireland Puts Damper on Brexit-Deal Hopes – Bloomberg

Fed Cuts Interest Rates, Signals Holding Pattern for Now – Reuters

The US Federal Reserve cut interest rates again on Wednesday to help sustain a record-long economic expansion but signalled a higher bar to further reductions in borrowing costs, eliciting a fast and sharp rebuke from President Donald Trump.

• Federal Reserve Cuts Rates as Policymaker Splits Deepen – Financial Times
• Powell Stresses Solid US Outlook After Fed Cuts Rates Again – Bloomberg
• Why the Market Crunch will Force Powell into QE – Australian Financial Review

UK Supreme Court to Hear More Arguments on Suspension of Parliament – Reuters

Britain’s Supreme Court will continue hearing legal arguments on Wednesday from the government and its opponents on whether Prime Minister Boris Johnson acted unlawfully when he decided to suspend parliament in the run-up to Brexit.

• Stay Neutral, Boris Johnson Tells Supreme Court – The Times

The FX Market’s New Benchmark – $6.6 Trillion – Profit & Loss

The number used globally to measure the size of the FX market will be set at $6.6 trillion per day after the Bank for International Settlements released the results of its Triennial Survey for Foreign Exchange Turnover.

• London Strengthens Grip on Currencies Market, BIS Survey Shows – Financial Times
• The Inexorable Rise of the “Others” – Profit & Loss