Brexit: Boris Johnson Defeated as MPs Take Control – BBC
Tory rebels and opposition MPs have defeated the government in the first stage of their attempt to pass a law designed to prevent a no-deal Brexit.
- What Next After Crushing Tory Defeat on No-Deal Brexit? – Financial Times
- UK PM Johnson’s Statement After Brexit Defeat in Parliament – Reuters
- Conservatives Who Voted Against Government Will be Expelled from Party: Spokesman – Reuters
- Sterling Steadies After Crucial Brexit Vote – Financial Times
UK Watchdog Warns Polling Firms Ahead of Possible Brexit Election – Reuters
Trading government bonds or currencies using information gleaned from unpublished polls could breach market abuse rules, Britain’s Financial Conduct Authority (FCA) said on Tuesday.
The US Federal Reserve should cut interest rates by half a percentage point at its meeting in two weeks to get ahead of both financial market expectations for a rate cut and a global trade war that has become a broader “reckoning” over how the world economy is organized, St. Louis Federal Reserve President James Bullard said.
- US Economy is ‘Relatively Strong’, Doesn’t Need Lower Interest Rates: Key Fed Leader – Washington Post
- To Cut or Not? Dueling Fed Views Boost Pressure on Powell – Reuters
- US Manufacturing Contracts for First Time Since 2016 Amid Tension – Financial Times
Italian Vote Backs Five Star-PD Government Under Conte – BBC
Grassroots members of the populist Five Star Movement have voted to support the formation of a government with the centre-left, bringing to an end Italy’s political crisis.
ECB’s Muller Joins Skeptics Seeing No Need to Resume Bond-Buying –Bloomberg
European Central Bank policy maker Madis Muller joined the swelling ranks of officials skeptical over the need for a large stimulus package by saying a resumption of bond purchases now would be disproportionate to economic conditions.
China pushes ahead with deleveraging and tightening standards to avoid systemic risks, while the US seeks stimulus, these approaches appear opposite, but both are about girding up to maintain an advantage in the trade war.
Hong Kong Leader to Kill Bill, but Some See Move as Too Little, Too Late – Reuters
Hong Kong leader Carrie Lam will announce the withdrawal of an extradition bill that triggered months of unrest and has thrown the Chinese-ruled city into its worst crisis in decades, Cable TV and other media said, but the street reaction was skeptical.
- China Softens Tone on Hong Kong, But Doesn’t Yield on Demands – Bloomberg
- Worsening Hong Kong Crisis Darkens Clouds Over US-China Talks – Straits Times
Chile Central Bank Slashes Benchmark Rate to 2.0%, Lowest in 9 Years – Reuters
Chile’s central bank slashed the benchmark interest rate by 50 basis points to 2.0%, the lowest in 9 years, citing a sputtering economy hurt by global trade tensions.
Australia GDP Up 0.5% in Second Quarter, Meeting Expectations – Bloomberg
Australia’s economy expanded at the slowest pace since the worldwide recession as a weak housing sector dragged on growth, highlighting the need for additional stimulus.
Regulatory News
TP Icap Hires Zaidi to Head Compliance – Profit & Loss
Inter-dealer broker TP Icap has appointed Amir Zaidi as global head of compliance, based in New York.
Korean Regulator Likely to Probe Issuers of Rate-Linked Products –Risk
Mis-selling enquiry may extend to structuring banks as global rates plunge threatens retail notes.
AI is Like Encryption: It Can’t be Regulated Out of Existence – Forbes
As the public becomes increasingly aware of the dangers of AI algorithmic bias and concerned over surveillance and militaristic applications of deep learning, there have been a growing number of calls for AI regulation.
Crypto News
Van Eck and SolidX to Offer Version of Bitcoin ETF – Financial News
Crypto enthusiasts have been trying with little success to get regulatory approval for bitcoin funds.
Indian Exchanges Innovate as Calls for Positive Crypto Regulation Escalate – Bitcoin News
Indian crypto exchanges are innovating, launching new products and improving services for their users, despite the country’s regulatory uncertainty and unresolved banking restrictions.
Bitcoin’s Total Share of Crypto Market Now Highest Since March 2017 – Coin Desk
Bitcoin is flashing green at press time, while its share of the cryptocurrency market has reached at 30-month highs above 70 percent.
Dutch Central Bank: Crypto Firms to be Regulated as of January 2020 – Coin Telegraph
The Dutch central bank has revealed it will begin regulating firms that offer cryptocurrency-related services as of Jan. 10, 2020.
Telegram Secretly Plans ‘Gram’ Cryptocurrency – Agence France-Presse
Working in secrecy for a year, the Telegram messaging service has a plan: to beat Facebook in the race to launch a cryptocurrency with its new project “Gram”.
Company News
Refinitiv Picks Chief Information Officer Ahead of LSE Takeover – Financial News
Refinitiv, the data company that agreed to a $27bn acquisition by the London Stock Exchange in August, has picked a new head of the internal group that develops its products, infrastructure and technology.
CLS Group Adds SG FX Exec John Bock to Americas Sales Team – Finance Magnates
FX market infrastructure specialist CLS has onboarded banker and FX veteran John Bock to join its sales unit at Americas, according to information made public on his Linkedin profile.
HKEX to Launch INR Futures – Profit & Loss
Hong Kong Exchanges and Clearing has announced it will launch Indian rupee (INR) currency futures in the fourth quarter of this year.
US Companies Raise $28bn of Cheap Debt in a Single Day – Financial Times
US companies sold close to $28bn of bonds on Tuesday, taking advantage of a sharp decline in borrowing costs over the past month to load up on cheap debt.
A Look Under the Hood of Span 2, CME’s New Margin Engine – Risk
The devil’s in the details. The CME Group is putting the finishing touches on its new value-at-risk margin framework Span 2, an abrupt break from the Span 1 vernacular, now in its fourth decade. As the fine print of Span 2 starts to seep out, risk managers are looking at where it departs from current orthodoxy.
Five Years On, the First Fintech Innovators are Thriving – Euromoney
To date, the transformation of financial services through new technology has been a success story, but regulators are becoming more nervous.
Market Savvy
Thinning Liquidity Adds to Headaches for Traders – Wall Street Journal
Investors already preoccupied with the trade battle between the U.S. and China and the prospect of a recession have another frustration: thinning liquidity.
A Strong Dollar Worries Trump, but it’s No Use Blaming the Fed or China – South China Morning Post
It is Donald Trump’s own policies that have helped to create the right conditions for continued greenback strength. With intervention a risky idea, unless those policies change, there is little to be gained from the blame game.
Will the US Follow Germany and Japan Below Zero? – Financial Times
Some US investors are girding themselves for the once-inconceivable prospect that the 10-year Treasury yield could be headed towards zero, as this year’s giant rally in bonds shows few signs of easing.
Dissenting Voice on BOJ Board Calls for Pre-Emptive Monetary Easing – Market Screener
Bank of Japan board member Goushi Kataoka advocated a pre-emptive further easing in monetary policy, warning of risks to the inflation outlook and the pain spreading through the economy from the bitter U.S.-China trade war.
Bank of Canada Likely to Join Easing Club by October – Financial Times
Investors have ratcheted higher their bets that the Bank of Canada will soon join a growing chorus of central banks easing monetary policy.