China’s Former Central Bankers Warn of Lasting Currency War with US – Straits Times
Former China central bankers have warned of currency-war risks with the US after an abrupt escalation of trade tensions between the world’s two biggest economies this week.
- IMF Says China Should Keep Yuan Flexible as Trade War Widens – Bloomberg
- If China is a ‘Currency Manipulator’, Then Every Country Is – Forbes
Weaker Yuan Tests China’s Ability to Prevent Capital Flight – Wall Street Journal
China’s biggest experiment with its currency since a botched devaluation four years ago suggests its leaders believe they can stem a serious flood of money fleeing its borders.
Threats to European Integration are Mounting – Financial Times
The EU is facing an economic downturn, a currency war and a political crisis in Italy.
Investors Ponder Negative Bond Yields in the US – Wall Street Journal
A steep slide in US government-bond yields last week wrong-footed investors and left some pondering what was once unthinkable: whether interest rates in America could one day turn negative.
Salvini’s Quest for Snap Italian Election Faces Hurdles – Reuters
League chief Matteo Salvini’s call for snap Italian elections after he turned on his own coalition partner faced mounting resistance on Sunday, with both his former 5-Star ally and the center-left opposition seeking to put the brakes on.
Argentina Opposition Scores Big Primary Win – Reuters
Argentine voters soundly rejected President Mauricio Macri’s austere economic policies in primary elections on Sunday, raising serious questions about his chances of re-election in October, early official results showed.
Top Bankers Shift Tone Over Horror of No-Deal Brexit – Financial Times
Some in London are privately saying that an abrupt departure from the bloc would be bearable.
Regulatory News
Why More Regulators Should Adopt the FX Global Code (opinion) – Profit & Loss
Putting the allegations against Wells Fargo for its conduct in handling a large customer order up against the FX Global Code highlights how useful a document this should be for regulators everywhere.
Investors Want UK Traders to Testify in Last Leg of Forex Suit – Law360
Investors that have secured $2.3 billion in settlements over claims that big banks plotted to rig the foreign exchange markets are seeking testimony from three United Kingdom traders.
Timelines for EAC Single Currency to be Revised – The East African
EAC member states are set to start discussions on revising the timelines for the start of the single currency regime, after realising that it would be difficult to set up the necessary institutions and achieve the set macroeconomic benchmarks with only five years to the 2024 deadline.
Funds Win Retrial of Forex Trading Fraud Suit On Appeal – Law360
An appellate court revived a fraud suit brought by two investment funds accusing foreign exchange firm Ikon Finance of participating in a fictitious currency-trading scheme.
Crypto News
China’s Official Digital Currency is Nearly Ready – Engadget
As much as China frowns on cryptocurrency, it’s happy to introduce its own form of virtual cash.
When Bitcoin Bros Talk Cryptography – Financial Times
You might remember that last month, chief bitcoin bro Anthony Pompliano — better known as “Pomp” — had a go at talking global finance (it didn’t go terribly well).
Ethereum Price is Suffering – Ethereum World News
The cryptocurrency, alongside a majority of altcoins, have been dramatically underperforming Bitcoin.
What Are Crypto Banks and How Do They Work? – Coin Telegraph
Bitcoin once promised that it would help realize the lofty goal of making individuals “their own bank.”
Company News
Virtu Financial Reveals Plans to Launch Outsourced Trading Desk – The Trade
Virtu Financial has said it will launch an outsourced trading service and bring the Triton execution management system (EMS) to FX markets, as part of a major strategy revamp following its $1 billion acquisition of agency broker ITG.
JP Morgan Doubles Down on Machine Learning for FX Algorithms – The Trade
JP Morgan is backing the use of machine learning for the future of foreign exchange algorithmic trading, after applying the technology to its FX algos earlier this year.
Wells Fargo Pays Fine to Close FX Investigation – Profit & Loss
The US National Futures Association has announced that Wells Fargo has agreed to pay $2.5 million to settle charges against it relating to an FX transaction that is still the subject of legal actions elsewhere.
Trading Floor Culture Remains a Barrier for Senior Female Staff – Financial Times
Drive to recruit more women in foreign exchange stymied by intimidating atmosphere.
Citi’s Swaps Clearing Unit Boosts Client Margin by $2bn – Risk
Required client margin held by Citi’s swaps clearing unit surged 8% to $28.3 billion in Q2 – making it the fastest-growing futures commission merchant over the three months to end-June.
Job Cuts at Investment Banks Near 30,000 as Outlook Deteriorates –Financial Times
Deutsche Bank accounts for more than half the total as trading desks are hit hardest.
Market Savvy
Yen Buoyed by China Jitters; Sterling Under Water – Reuters
The dollar remained on the defensive against the safe-haven yen on Monday as the Sino-US trade dispute looked set to drag on with no settlement in sight, while holidays in Japan and Singapore made for very thin trading.
Swiss Franc’s Rally is Seen Refueled by Italian Political Chaos – Bloomberg
The Swiss franc’s longest rally in more than a year may just have been recharged by the Italian political tumult.
Lack of G7, IMF Support Seen Dimming Impact of US Move on China’s Yuan – Reuters
China is unlikely to face serious consequences from the Trump administration’s decision to label it a currency manipulator given the apparent lack of G7 and IMF support for the move, former and current US and G7 officials said.
The Dollar Looks Like a Wrecking Ball to Some Investors – Bloomberg
Donald Trump gets the headlines, but he’s not the only one worried that the dollar’s remarkable ascent is causing economic harm. Some even worry it could trigger a recession.