Bank of Japan Has an 8.7 Trillion Yen Gap in Balance Sheet – Bloomberg
There’s an 8.7 trillion yen ($84 billion) gap between the value of government bond holdings on the Bank of Japan’s balance sheet and their face value.
Dollar Loses Steam and Wavers Ahead of U.S. Jobs Data – Reuters
The dollar wavered against the yen and euro on Thursday, its advance stalling ahead of a closely-watched U.S. non-farm jobs report on Friday which is expected to shape the market’s near-term interest rate expectations.
August Reporting Off to a Gloomy Start for Platforms – Profit & Loss
Three FX platform providers have reported lower volumes for the second consecutive month, highlighting the difficult nature of the market in August.
Brazil’s Rousseff Ousted by Senate, Temer Sworn In – Reuters
Brazil’s Senate ousted President Dilma Rousseff on Wednesday, ending an impeachment process that polarized Latin America’s biggest country amid a massive corruption scandal and brutal economic crisis.
World Bank Backs China’s Push to Challenge US dollar Dominance by Selling SDR Bonds Ahead of G20 Summit – South China Morning Post
China and the World Bank drew inspiration from a legendary woman warrior in the latest push for diversification as the yuan challenges the US dollar as the globe’s dominant currency.
Bill Gross: Janet Yellen has ‘Mastered the Art of Market Manipulation’ – Wall Street Journal (subscription)
Bill Gross is arguing anew that the world’s central banks are reaching the limits of their effectiveness.
Finance Ministry vs. the Currency Speculators – Japan Times
With Japan’s economy struggling to escape its deflationary torpor, the economic-revitalization plan that Prime Minister Shinzo Abe launched in 2012 has come under growing scrutiny. But Japan’s current travails, which have brought a concomitant decline in Japan’s stock market, stem from the yen’s appreciation — 24 percent over the last year — against major currencies.
LCH Gets the Nod for Hong Kong – Profit & Loss
LCH.Clearnet has been authorised by the Hong Kong Securities and Futures Commission to provide automated trading services in Hong Kong via its SwapClear and ForexClear services.
Giancarlo Slams Regulators as US Implements Margin Rules – Profit & Loss
A senior US regulator has slammed global regulators’ “failure” to deliver a unified reform programme and expressed his astonishment at US authorities’ “blindness to commercial reality” in going it alone in enforcing new margin rules for swap products from today (September 1).
Governments Have ‘Limited Firepower’ to Deal with Future Financial Shocks – Sydney Morning Herald
Future Fund chairman Peter Costello says governments are “running out of shots” to protect against any future financial shocks. The head of Australia’s $123 billion sovereign wealth fund said monetary policy alone was no longer enough to stimulate growth in the global economy.
FSB: G20 Reform Progress “Steady But Uneven” – Profit & Loss
The Financial Stability Board’s (FSB) second report on the Implementation and Effects of the G20 Financial Regulatory Reforms, concludes that implementation progress “remains steady but uneven”.
Asian Factories Hobble as Soft Global Demand Hits Sales – Reuters
Asia’s factories showed few signs of returning to health in August, as torpid activity in the region’s biggest economies, China and Japan, suggested world demand remained fitful at best even as global policymakers scrambled to restore momentum.
Cryan Calls for Bank Mergers After Exploring Commerzbank Deal – Bloomberg
Deutsche Bank AG Chief Executive Officer John Cryan urged more consolidation among European banks struggling to shore up profitability, after his own firm held talks with its biggest German rival earlier in August about a possible deal.
Negative Rates Force Nomura to End Short-Term Investment Fund – Nikkei Asian Review
Nomura Asset Management stopped managing its money management fund Wednesday – a product hit particularly hard by the Bank of Japan’s negative interest rate policy.
Quant Fund Gives Robots 364 Days Off to Best Currency Rivals – Bloomberg
Like a lot of hedge funds, Principal Global Investors’ Macro Currency Group uses computer-driven models to devise trading strategies. What sets it apart is that its machines only make calls once a year.
Sterling Soars After Stunning UK PMI Survey, Dollar Firmer – Reuters
Sterling jumped one percent against the dollar and hit a one-month high against the euro on Thursday after data showing the British manufacturing sector staged one of its sharpest rebounds on record in August.
Why September Could be Huge for Markets All Around the World – Bloomberg
The first debate of the U.S. presidential campaign. A Group of 20 (G20) central bank interest rate announcement nearly every other trading day. And a key meeting among commodity nations around the world. With a jam-packed calendar in September, no asset class is immune from potential event risk.
Traders Love Big Round Numbers – Financial Times (subscription)
Traders love big round numbers. They provide a talking point, and just by dint of their huge fat simplicity can sometimes seem to display a gravitational pull on the market.