China’s Top Negotiator ‘Cautiously Optimistic’ About Reaching Trade Deal – Bloomberg

China’s chief trade negotiator indicated he was “cautiously optimistic” about reaching a phase one deal with the US, as two titans of American diplomacy in Asia warned of the dangers of escalating the tariff war.

Trump Weighs New Trade Investigation to Justify Tariffs on EU – Politico

Trump administration officials are considering whether to start a new trade investigation against the European Union as the window closes for hitting Brussels with automobile tariffs, according to multiple people briefed on the issue.

US Charges Chinese National with Stealing Trade Secrets – Reuters

A Chinese national who worked for Monsanto before it was purchased by Bayer AG was charged in St. Louis, Missouri, with stealing trade secrets for China, the US Justice Department said.

China Watching Trump’s Response to Hong Kong Bill as it Threatens New Barrier to Trade Deal – South China Morning Post

One source says Beijing may decide to ‘fight and talk alternatively’ and is now closely monitoring the US president’s next move following the vote by Congress.

Michael Bloomberg Files Federal Paperwork for US Presidential Run – Financial Times

Michael Bloomberg, the billionaire former mayor of New York City, has taken another step towards declaring his official candidacy for president by filing paperwork with the Federal Election Commission to run as a Democrat.

China Revises Up Nominal 2018 GDP, Moves Step Closer to Doubling Size of Economy – Reuters

China on Friday revised up its nominal 2018 gross domestic product by 2.1% to 91.93 trillion yuan ($13.08 trillion), keeping it on track to achieving its goal of doubling the size of its economy by 2020 from 2010.

ECB’s Battle on Fiscal Front May Need Lagarde to Change Tack – Bloomberg

European Central Bank President Christine Lagarde is facing calls to refocus her lobbying for looser fiscal policy on a euro-zone budget, rather than seeking national stimulus.

A Tory Election Win Is All the Markets Can See – Bloomberg

This week’s pre-election debate may have been too close to call, but for U.K. investors positioning for the December vote there’s not much doubt: Incumbent Boris Johnson remains on course for victory.

Yellen ‘There is Good Reason to Worry’ about the US Economy Sliding into Recession – CNBC

Pronounced wealth inequality that has built up for decades poses a major threat to a U.S. economy that is in otherwise “excellent” shape, former Federal Reserve Chair Janet Yellen said.

Regulatory News

Zig-Zagging Pound Sharpens Concerns Over Mis-Sold Forex Hedges – Financial Times

Currency deals have left some small businesses nursing big losses.

Trump’s Fed Pick Shelton Cast Doubt on Central Bank Independence – Bloomberg

Judy Shelton, one of President Donald Trump’s most recent picks for the Federal Reserve board, challenged an article of faith regarding the US central bank in private comments to a bank executive last month: that it should operate free of political influence.

Fed’s Discount Window has Become a Pain in the Repo Market – Financial News

The stigma attached to borrowing from the Fed’s emergency lending window has contributed to recent turmoil in overnight lending markets.

FSB Urges ISDA to Embed Libor Pre-Cessation Trigger in Definitions – Regulation Asia

The FSB says a pre-cessation trigger should be added alongside a cessation trigger as standard language in definitions for both new and outstanding derivatives contracts. 

Helena Morrissey ‘Out of Race’ for Bank of England Governor – The Times

Dame Helena Morrissey appeared to rule herself out as a candidate to be the first ever female governor of the Bank of England when she agreed to go on to the board of St James’s Place yesterday.

Crypto News

Crypto Bourse Binance Says No China Office Amid Raid Rumours – Bloomberg

Binance Holdings Ltd., operator of one of the world’s largest cryptocurrency exchanges, said it doesn’t have any “fixed offices in Shanghai or China” amid rumors that police raided the facilities in the nation’s biggest city.

Global Protests Reveal Bitcoin’s Limitations – Coin Desk

In the face of censorship and isolation from their countries’ financial and communication systems, protesters across the globe are testing out bitcoin and other decentralised technologies – then promptly discovering their limitations. 

Bitcoin’s Slide Accelerates – Bloomberg

Bitcoin broke below $8,000 for the first time in nearly a month as its recent sell-off dragged on for the seventh straight day.

New Bill Would Put Facebook’s Libra Under US Securities Law – Coin Telegraph

American lawmakers have reportedly introduced a bill aiming to put Facebook’s Libra under the jurisdiction of the Securities and Exchange Commission.

How Does the Ethereum Dump Affect DeFi Markets? – News BTC

It has been a grim end to the week for Ethereum. The world’s number two crypto asset has held up resiliently for most of this month while Bitcoin has been eroded. That resilience ended a few hours ago when ETH prices collapsed by 9 percent.

CME Plans Bitcoin Options Testing on December 9 – FOW

CME has picked December 9 to start testing its Bitcoin options contract with launch set for January 13.

Company News

Louis Bacon to Shut Moore Capital Hedge Funds – Financial Times

Louis Bacon, the veteran hedge fund manager, is closing his flagship hedge funds to external money and stepping back from day-to-day trading at his 30-year-old Moore Capital Management, according to a letter sent to investors on Thursday. 

TickTrade Gets Investment from SVB Financial Group – Profit & Loss

TickTrade Systems, which provides FX trading and payments solutions for financial institutions, has announced a new investment by, and relationship with, SVB Financial Group, the parent company of Silicon Valley Bank.

Tokyo Woos Hedge Funds in Crisis-Hit Hong Kong – Financial Times

The Tokyo government has embarked on a discreet bid to woo hedge funds away from crisis-hit Hong Kong, dispatching a delegation to the city this week on a 48-hour mission to persuade money managers to relocate to the Japanese capital.

Charles Schwab in Advanced Talks to Buy TD Ameritrade – Reuters

Charles Schwab Corp is in advanced talks to acquire TD Ameritrade Holding Corp a person familiar with the matter said, in a deal that could exceed $26 billion and combine the two largest US discount brokerages.

Bidders Circling Spanish Exchange Show Growing Hunger for Data – Bloomberg

For Javier Hernani and the Spanish stock exchange he runs, the overtures couldn’t have come at a better time. With revenue and profits sinking, the Madrid’s bourse’s share price was down the past five years – until this week, when his Bolsas y Mercados Espanoles SA suddenly emerged as the target of a bidding war. 

Market Savvy

China Still Has Policy Space Amid Trade Spat, PBOC Adviser Says – Bloomberg

China still has room to adjust its fiscal, monetary and real-estate policies if uncertainty over trade with the US generates further downward pressure on the economy, central bank adviser Ma Jun said Friday.

US Labour Market, Manufacturing Data Point to Slowing Economy – Reuters

The number of Americans filing applications for unemployment benefits was unexpectedly unchanged at a five-month high last week, suggesting some softening in the labour market.

Deutsche Bank Makes the Case for an Economic Rebound – Financial News

Global economic growth could improve from here, if Deutsche Bank economists are reading the tea leaves correctly.

Investors Betting on Germany are Waiting for Economy to Catch Up – Bloomberg

Investors are giving Germany the benefit of the doubt after a year of economic turmoil that put the economy on recession watch.

BoJ’s Stock-Buying Programme Starts to Sputter – Financial Times

Scheme has sparked criticism that heavy central bank purchases are warping the market.

The World May Have a Bigger Problem Than a Potential Recession – Bloomberg

The global economy is stuck in a rut that it won’t exit unless governments revolutionize policies and how they invest, rather than just hoping for a cyclical upswing, the OECD said.