Top Headlines

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.



Regulatory News

Will Dark Pools Survive in Light of Regulatory Crackdowns? – eFinancial News (subscription) Senior figures from the trading and investor services community give their thoughts on the survival prospects for dark pool trading venues, which have come under increasing regulatory scrutiny.

FIA PTG: Hold Fire on Treasury Market Structural Change – Profit & Loss The Principal Traders’ Group (PTG) of the Futures Industry Association has supported the conclusions of the joint staff report into the events of October 15, 2104 in the US Treasury market.

Bank Business Models Changing Due to Basel III, says EY – Risk.Net (subscription) Basel III bank capital rules are having an impact on banks’ business models – for instance, by pushing them out of more complex, less liquid products and forcing them to limit the number of geographies in which they are active.



Company News

Deutsche Borse Closes 360T Deal – Profit & Loss Deutsche Börse has completed the acquisition of 360T after receiving approval from antitrust authorities and the German Federal Financial Supervisory Authority.

Trading Hits Goldman Sachs Hardest – Wall Street Journal (subscription) Clients headed to sidelines as markets swooned, exposing firm’s vulnerability.

LSE’s Groundhog Day-Inspired Futures Market Leaves the Shadows – Bloomberg London Stock Exchange Group Plc for the first time confirmed that it will start a futures exchange to compete with the entrenched derivatives markets owned by its rivals Deutsche Boerse AG and Intercontinental Exchange Inc.



Market Savvy  

Ghana’s Cedi Seen Weakening, Kenya’s Shilling Steady – Reuters Ghana’s cedi is expected to continue weakening next week, pending the impact of expected inflows from a dollar loan and Eurobond, while high government debt yields attracting dollar inflows will likely see Kenya’s shilling steady.

World’s Worst Currency Prompts Call for Divine Intervention – Bloomberg God save the kwacha. That’s what Zambian President Edgar Lungu wants his people to pray for on a national day of devotion and fasting on Sunday to reverse a decline in the world’s worst currency.

Russian FX Reserves, US CPI in Focus – Action Forex Latest news from the US confirmed that the economy is expanding at a (very) moderate pace as the industrial sector is being badly hit by the strong dollar.

Asia FX Sentiment Improves on Changed US Rate Hike Views; Yuan, Rupee Bullish: Poll – Reuters Sentiment towards emerging Asian currencies improved in the last two weeks with views on China’s yuan and India’s rupee bullish, a Reuters poll showed, as expectations of a US interest rate hike soon lost steam.



Press Releases

Not all Doom and Gloom – Bank of England External MPC member Professor Kristin Forbes says “the next move in UK interest rates will be up and that it will occur sooner rather than later.”



Industry Events