China’s Economy May Be Even Bigger Than You Think – Bloomberg Scepticism around Chinese economic data may be overdone.
UK Treasury Official Sees Sound Case for Yuan to Join IMF’s SDR Basket – Reuters A UK Treasury official said on Friday she saw a sound case for China’s yuan currency to be admitted to the International Monetary Fund’s SDR basket.
Mexico, Malaysia Lead FX Reserve Falls in Emerging Markets ex-China – Reuters Mexico, Indonesia and Malaysia saw some of the sharpest falls in central bank reserves over the past quarter as investor flight from emerging markets forced policymakers to defend their currencies.
Link Between Jobs Report and Fed Action Weakens – Wall Street Journal (subscription) The jobs report doesn’t carry as much weight for Fed officials as it used to, says BlackRock.
Deutsche Bank Libor Probe Said to Rise to Former Trading Manager – Bloomberg The US Justice Department’s investigation into individuals who allegedly manipulated benchmark interest rates has risen to a former senior trading manager at Deutsche Bank AG, according to two people familiar with the investigation.
Trial Opens for ex-Rabobank Traders Accused of Rigging Libor – eFinancial News (subscription) Prosecutors accused two former Rabobank traders on October 14 of repeatedly manipulating a key benchmark interest rate for their own benefit, launching a criminal trial testing the US Justice Department’s ability to prosecute employees of big financial institutions.
Fashion for Forward Guidance Leaves Central Bankers in a Muddle – FT.Com (subscription) As central banks edge closer to raising rates, failure to provide clear advice over what happens next is agitating investors — with the split at the top of the US Federal Reserve proving particularly enervating.
Rise of Non-Bank Market Makers Increases Competitive Threat to Banks – Euromoney ‘Probably no more than a dozen’ likely to become principal market makers.