China Suspends US Military Visits to Hong Kong, Sanctions US-Based NGOs – Reuters
China said US military ships and aircraft would not be allowed to visit Hong Kong, and also announced sanctions against several US non-government organisations for encouraging protesters to “engage in extremist, violent and criminal acts.”
US Proposes 100% Tariffs on French Goods Over Digital Tax – Reuters
The US government said it may slap punitive duties of up to 100% on $2.4 billion in imports of French Champagne, handbags, cheese and other products, after concluding that France’s new digital services tax would harm US tech companies.
Trump to Levy Tariffs on Brazil, Argentina – Wall Street Journal
President Trump said he would raise tariffs on steel and aluminum imports from Brazil and Argentina, surprising financial markets and opening a new front in the global trade war.
Dumb and Dumber. Trump Doesn’t Understand Currency Wars, Either – Australian Financial Review
Any implication that Argentina or Brazil are deliberately weakening its currency for competitive advantage is beyond absurdity.
US Federal Reserve Considers Letting Inflation Run Above Target – Financial Times
The Federal Reserve is considering introducing a rule that would let inflation run above its 2 per cent target, a potentially significant shift in its interest rate policy.
Lagarde Says ECB Will Be ‘Resolute’ on Inflation Mandate – Australian Financial Review
Christine Lagarde said the European Central Bank will be “resolute” in restoring euro-zone price stability under her presidency, while stressing that an upcoming strategy review will be wide-ranging, including climate change as well as inflation.
Japan Preparing $120 Billion Economic Stimulus Package – Reuters
The Japanese government is looking to finalize an economic stimulus package totalling $120 billion to support the economy and build infrastructure to cope with big natural disasters, two government officials with direct knowledge of the matter said.
Currencies in Competition – Profit & Loss
On first glance there appeared to be few significant changes of note when looking at the currency-specific data in the latest BIS survey. But scratch beneath the surface and this data asks some important questions.
Regulatory News
Risk Managers Grapple with Potential Downsides of AI – Wall Street Journal
Most risk managers in financial services say they aren’t capable of assessing the risks associated with artificial intelligence, according to a survey from Accenture.
The Trading System’s Referee is About to Leave the Field – The Economist
The world’s trading system works best when there is a referee, and for nearly 25 years a group of seven judges at the World Trade Organisation has done the job. But on December 11th this body will cease to function, something that will make cross-border commerce unrulier and, in the long run, invite an anarchy that would make the world poorer.
Former CFTC Chair Takes Fintech Role at Law Firm – Profit & Loss
New York law firm Willkie Farr & Gallagher has announced that the appointment of former chair of the US Commodity Futures Trading Commission Christopher Giancarlo as a senior counsel.
Crypto News
Digital Yuan Nears Launch as China Sweats Over Libra – Asian Nikkei Review
Sovereign virtual coin lets Beijing bolster oversight and boost currency abroad.
Bitcoin Reaches Pivoting Point – NewsBTC
After attempting to propel Bitcoin higher yesterday, the cryptocurrency’s bulls lost some of their strength, allowing bears to push the crypto back down to $7,200 – which appears to be a key support level for the cryptocurrency that buyers have continued defending.
Is Technical Analysis Prophetic or Preposterous? We Asked 7 Crypto Traders – Coin Desk
The death cross. Just say it out loud. It doesn’t sound good. And it’s not. In fact it’s quite bad.
SEC Hires In-House Attorney as New Chief of Cyber Unit – Coin Telegraph
The United States Securities and Exchange Commission has hired Kristina Littman as Chief of the Division of Enforcement’s Cyber Unit, a specialised unit that aims to protect investors and markets from cyber-related misconduct.
Company News
Platform Volumes Suggest November Slowdown – Profit & Loss
Trading activity was down last month across the first set of FX trading platforms to publicly report their volumes.
Nomura Goes Global Again After Decade of Lehman Struggles – Asian Nikkei Review
Nomura Holdings’ decision to tap Kentaro Okuda, the former head of US operations with a Wharton School business degree, as the next president and CEO suggests that Japan’s largest brokerage once again will attempt to fight on the global playing field.
Hundreds of Jobs Under Threat at GAM – Financial Times
GAM staff are braced for hefty job losses as the Swiss asset manager overhauls its operating model in a bid to cut costs under its new chief executive, according to people familiar with the matter.
24 Exchange, a new offshore OTC trading platform launched by former FastMatch founder and CEO, Dmitri Galinov, is now live and open for trading.
To Battle Passive Funds, Active Investors Shun Diversification – Wall Street Journal
Conventional investing wisdom holds that the safest portfolios are highly diversified and spread across a considerable number of assets, but that isn’t stopping plenty of investors from running in the opposite direction.
Market Savvy
Dollar Nurses Wounds as Factory Data Sparks Economy Concern – Reuters
The dollar traded near a one-week low versus the yen on Tuesday and near the lowest in almost two weeks against the euro, on concern about weak US manufacturing data and signs of new fronts in the US trade war.
Markets Think the Worst May Soon Be Over for the World Economy – South China Morning Post
Fears of a market crash are out of date. Recent business confidence numbers from the US, China and even Germany show the global economy is not down and out. The world’s governments must seize the momentum and find new ways to fund sustainable recovery.
Investors Snap Up NY Fed Loans as Cash Crunch Fears Linger – Financial Times
Investors clamoured to secure financing over the end of the year, snapping up $25bn of short-term loans offered by the US Federal Reserve in an attempt to insulate themselves from a potential spike in borrowing costs.
US Dominance in Global Services Weakens – Wall Street Journal
Some softness in demand reflects cyclical factors, such as slowing foreign economies, but other forces are weighing on exports and prompting Americans to buy more foreign services.
US Net Long Dollar Positions Rise in Latest Week – Reuters
Speculators increased their net long dollar position in the latest week, according to calculations by Reuters and US Commodity Futures Trading Commission data.