China’s GDP Growth Sinks to New Low of 6 Per Cent – Financial Times

China’s economy expanded at its slowest pace in about 30 years at 6 per cent in the third quarter of 2019 compared with a year earlier, delivering another blow to global growth, according to figures released by the National Bureau of Statistics on Friday.

Johnson to Give MPs ‘My Deal or No Deal’ Ultimatum After EU Rules Out Extension – Daily Telegraph

Boris Johnson will give MPs a “my deal or no deal” ultimatum on Saturday after the EU ruled out another Brexit extension.

Japan’s Inflation Hits 2-1/2-Year Low, Raises Stimulus Chance This Month – Reuters

Japan’s core consumer inflation slowed to near 2-1/2-year lows in September, dragged down by sliding energy prices and raising the chance the central bank will top up its already massive monetary stimulus at its review this month.

China Confirms Two US Citizens Detained As Tensions Rise – Bloomberg

The Chinese foreign ministry said it has detained two American citizens who run an English-teaching business in China, a development that comes amid rising diplomatic tensions and a broader trade war between the two countries.

Why the Federal Reserve May Have Painted Itself into a Corner – Financial Times

The central bank’s moves to alleviate cash shortages could end up exacerbating them.

Fed’s Williams Isn’t Ready to Commit to Action at October Fed Meeting – Wall Street Journal

Federal Reserve Bank of New York President John Williams said he hasn’t decided what he’d like the central bank to do with its short-term rate target when it meets at the end of the month.

Trade Deal Aside, Sino-US Rivalry is Far From Over – South China Morning Post

The World Trade Organisation has never before dealt with an economy like China’s, where the party picks winners and compels firms to toe the line, increasingly, when called on to punish foreign entities, Chinese firms have little choice but to show their loyalty, the NBA row just the latest example.

How the Twists and Turns of the Trade War are Hurting Growth – The Economist

The IMF downgrades its forecasts for the global economy. Again.

ECB Must Be Careful About Further Interest Rate Cuts: Visco – Reuters

The European Central Bank must be careful in lowering interest rates further given the rising risk of unintended side-effects, Italian central bank chief Ignazio Visco said.

Regulatory News

Japan’s Cabinet Approves Tougher Rules on Foreigners Owning Stocks – Bloomberg

Prime Minister Shinzo Abe’s cabinet on Friday approved draft legislation to impose tougher rules on foreign investment in stocks related to national security despite opposition from market participants.

Wall Street Banks See Green Light from Fed on Reserves – Reuters

Wall Street banks believe they are getting a green light from supervisors to hold more Treasury debt and less cash after last month’s volatility in overnight lending markets, three industry sources told Reuters.

UK Watchdog FCA Snarls at EU Criticism Over Derivatives – Financial Times

UK markets regulators have bitten back at their EU counterparts in a row over the supervision of derivatives markets, after the British watchdog was assessed to be operating at the same level as Cyprus.

Hong Kong Eyes SOFR Solution for Term Fixing – Risk

New ‘proxy’ Honia could help change discount rate from Hibor to OIS for local swaps, says HKEX.

Capital Build-Up Slowing Among Top Banks – FOW

Capital build-up activities have been slowing down, ratings agency S&P finds.

Crypto News

Facebook’s Libra Cryptocurrency Faces New Hurdle from G7 Nations – Reuters

Facebook’s plans to launch its Libra cryptocurrency face a new hurdle, after the Group of Seven wealthy nations said such “stablecoins” should not be allowed to launch until the profound international risks they pose are addressed.

Ethereum Futures: The Next Big Derivative to Hit the Market? – Coin Telegraph

The United States Commodity Futures Trading Commission hasn’t come to bury Ether, it’s come to regulate it. 

Telegram Warns of Losses Unless Crypto Investors Agree to Delay – Bloomberg

Telegram Group Inc. is telling investors who helped fund the creation of its digital token that they’ll only receive 77% of their money back unless they agree to postpone the launch of the cryptocurrency for six months.

Company News

360T Hits New Volume Peak – Profit & Loss

Deutsche Boerse’s FX trading business 360T has reported its highest average daily volume to date, the exchange group saying the platform, which includes the GTX unit, handled EUR 95 billion per day in September. 

Goldman Wants Traders to be More Like Dealmakers and Coders – Reuters

Over the past decade or so, Goldman Sachs Group Inc has watched its annual trading profits fall 84%, as post-financial crisis regulations upended Wall Street. Now, bank executives are hoping they have figured out the key to a turnaround: asking traders to be more like investment bankers.

Hong Kong Hedge Funds See Biggest Quarterly Outflow Since 2009 – Bloomberg

Hong Kong’s hedge fund industry saw its biggest quarterly outflow since the global recession a decade ago, a shift that may deepen concern about investor sentiment in the protest-wracked financial hub.

Exchange Rates Deal $22.56 Billion Blow to Companies’ Earnings – Wall Street Journal

Honeywell, Johnson & Johnson and Philip Morris in recent days reported hits from currency fluctuations.

Market Savvy

Sterling Slips as Investors Await Brexit Showdown – Reuters

The pound retreated on Friday morning, as relief that a Brexit deal had been agreed was replaced by doubts the proposed deal will get through the British parliament in Saturday’s vote.

Negative Rates in Australia Extraordinarily Unlikely, Lowe Says – Bloomberg

Interest rate cuts are supporting Australia’s economy and housing market, Reserve Bank governor Philip Lowe said.

How Bonds Became Stocks and Stocks Became Bonds – Financial Times

Bonds have become the new equities, say fund managers, stirring concerns that dangers are lurking in the supposedly safest corners of financial markets.

Japan-US Trade Deal Estimated to Boost Japan’s GDP by 0.8% – Reuters

The trade deal reached between Japan and the United States is expected to boost Japan’s economy by about 0.8%, the Japanese government said on Friday.

Negative US Interest Rates? Options Traders Say Yes – Wall Street Journal

Wagers via Eurodollar options indicate investors’ belief that ‘negative rates are not just possible but reasonably probable’.