EU and UK Reach Brexit Deal After Lengthy Negotiations – Financial Times

UK and EU negotiators have struck a long-awaited Brexit pact. However numerous stumbling blocks remains, particularly in London where Boris Johnson faces opposition from key corners.

US, Chinese Teams Working on Phase 1 Trade Deal Text: Mnuchin – Reuters

US and Chinese trade negotiators are working on nailing down a Phase 1 trade deal text for their presidents to sign next month, US Treasury Secretary Steven Mnuchin said, adding he was prepared to travel to Beijing for more meetings if necessary.

US Diplomats, Congress Take Aim at China; Trump Expects Trade Deal Signing – Reuters

The US State Department and Congress took aim at China, even as President Donald Trump hailed “goodwill” between Washington and Beijing and said he expected to sign the first phase of a trade deal with President Xi Jinping next month.

Trump Upbeat on Trade Talks with EU, Hints at Reprieve for Some Duties on Italian Products – Reuters

US President Donald Trump said Washington was in talks with “some new people” in Europe about trade issues and he hoped the discussions would be successful, as Italy’s president urged Trump to avoid counterproductive tariffs.

World Bank Likely to Cut Global Growth Forecasts Again: Malpass – Reuters

World Bank President David Malpass said the development lender will likely again downgrade its global growth outlook amid uncertainty over falling trade and investment flows, but he stopped short of calling on the United States and China to resolve their trade war.

Fed’s Brainard Views Cost-Benefit of Negative Rates Unattractive – Bloomberg

Federal Reserve Governor Lael Brainard said she views “the cost-benefit assessment of negative rates as unattractive for the current US context” despite arguments that digital currencies could help address the problems of the zero lower bound on interest rates.

BoE Can Fight a New Slowdown, But Fiscal Policy Has Role Too: Carney – Reuters

The Bank of England would probably take measures to stimulate bank lending in the event of a fresh downturn in the economy, and government fiscal policy could also play a role, BoE Governor Mark Carney said.

Global Markets Waking Up to Consequences of Hong Kong Protests – Bloomberg

For traders in some of the world’s biggest and most liquid markets, the pro-democracy protests in Hong Kong just took on a new significance.

Turkey Seeks to Limit Market Fallout After Knock to Lira and Banks – Financial Times

Regulator clamps down on bets against currency, while selling in bank stocks also faces curbs

Regulatory News     

Tough Market Abuse Rules Should Cover Currency Markets: BoE’s Carney – Reuters

Bank of England Governor Mark Carney said on Tuesday that currency dealers should face the same tough market-abuse rules that govern share and bond trading, adding to scrutiny of London’s $5 trillion-a-day foreign-exchange market.

Why the FX Industry Needs to Deal with the Issue of Last Look Now – Profit & Loss

The technology is the same, and so is the process – so why does it take longer for some participants to reject trades than accept them and, more importantly, how can some LPs justify different hold times for different clients?

Mexican Bond Rigging Ruling Would be Negative for Banks Credit Rating – Reuters

The credit ratings of seven large banks could be at risk if a probe by Mexico’s antitrust watchdog found them guilty of market manipulation and collusion in the government bond market, ratings agency Moody’s said.

China Renews Pledge to Open Markets, Level Playing Field for Foreign Firms – South China Morning Post

China’s State Council has reaffirmed its commitment to opening up its markets further and improving the domestic business environment for foreign companies amid the latest trade war truce with the United States.

Why Japan Could be on the Brink of a Historic Mistake – Financial Times

Investors fear a backlash against corporate governance changes is behind proposed foreign investment rule change.

Bundesbank Doesn’t See Financial Stability Risk from Hard Brexit – Bloomberg

Germany’s Bundesbank doesn’t see risks to the country’s financial system from the U.K. leaving the European Union, even if politicians fail to strike an exit deal.

Crypto News

Bitcoin’s Latest Swoon Raises the Risk of Key Technical Breach – Bloomberg

The outlook for Bitcoin isn’t looking good. The cryptocurrency slumped Wednesday to below $8,000 – back to its lowest level since June – amid an influx of bad news that’s also weighing on the rest of the digital-asset sector. Technical indicators suggest the milestone is significant, and could lead to further pain.

Federal Reserve Sets Out Regulatory Challenges Facing Facebook’s Libra – Financial Times

Facebook will need to make a series of promises on money laundering, consumer protection and privacy before it can launch its digital currency, a top US official has warned — the first time a regulator has gone into detail about what they want from Project Libra.

CFTC Files Lawsuit Against $11M Ponzi-Like Cryptocurrency Scam – Coin Telegraph

The United States Commodity Futures Trading Commission has announced the filing of a civil enforcement action against Nevada-based Circle Society.

French Central Banker: The World Needs to Standardize Crypto Regulations – Coin Desk

A French central banker is calling for a global regulatory framework on crypto assets.

Company News

Citi Launches Cross Currency Sweeps for Liquidity Management – Profit & Loss

Citi has launched Cross-Currency Sweepsa liquidity management solution that aggregates foreign currency balances into a currency and account of choice. By combining the capabilities of a cash concentration sweep with an automated currency conversion, clients are able to fund accounts and reduce FX risk exposure, across their global banking structure.

LCH Adds Deliverable FX to Clearing Offering – Profit & Loss

Clearinghouse LCH has announced that it has expanded its deliverable FX offering to include FX forwards, meaning members of it ForexClear service are now able to clear this product in eight currency pairs with physical delivery.

‘Trade for Free’ Offer Aims to Lure Rupee Trading Home to India – Bloomberg

As India works to bring some of the burgeoning offshore rupee trading back home, the exchange that will likely spearhead the move says it’s prepared to cut trading fees to zero to take on overseas rivals.

Why Hedge Fund Managers are Happy to Let the Machines Take Over – Financial Times

A month ago many computer-driven investors watched astonished as markets were wracked by a financial tempest, with once-hot stocks tumbling and previously shunned sectors enjoying a revival.

Virtu Launches Outsourced Trading Service – Profit & Loss

Virtu Financial has announced the US launch of its outsourced trading business, Execution Concierge Service. 

Market Savvy

Australia Unemployment Rate Dips, Still Long Way to Go – Reuters

Australian employment boasted another solid gain in September while the jobless rate dipped for the first time in seven months as fewer people went looking for work, a tentative hint of a much-needed tightening in the labour market.

We’re One Mistake Away From a Global Recession – Bloomberg

Over the past decade, central banks have worked together to boost growth. Too bad China and the US aren’t feeling very cooperative anymore.

Why You Shouldn’t Always Listen to Economists – Australian Financial Review

A little more than a generation ago, a stealthy revolution swept America. It was a dual changing of the guard: Two tribes, two attitudes, two approaches to a good society were simultaneously displaced by upstart rivals.

Fed Kicks Off Balance Sheet Expansion Effort – Wall Street Journal

The New York Fed embarked on its first round of Treasury bill buying Wednesday aimed at expanding its overall holdings, and found no dearth of interest from banks wanting to sell securities to the central bank.