EU Mulls New Emergency Summit to ‘Get Brexit Deal Done’ – BBC
EU internal talk is focussing now on a possible “holding pattern statement” at this week’s EU leaders summit, along the lines of “we’ve made great progress in negotiations but still need more time”. There are also renewed mutterings about a new Brexit summit maybe towards the end of the month.
- Johnson’s Brexit Deal on Knife Edge as EU Needs More Time – Bloomberg
- Pound Shaken Up by Positioning in Fear of Swift and Brutal Move – Bloomberg
China Wants More Talks Before Signing Trade Deal with Trump – Bloomberg
China wants to hold more talks this month to hammer out the details of the “phase one” trade deal touted by Donald Trump before Xi Jinping agrees to sign it, according to people familiar with the matter.
Mario Draghi Leaves a Divided Central Bank in his Wake – Financial Times
President’s tenure marked by boldness and calm but with some mis-steps and backlashes.
Scrambling to Limit Damage, Trump Tells Turkey to Stop its Syria Invasion – Reuters
US President Donald Trump demanded Turkey stop its military incursion in Syria and imposed new sanctions on the NATO ally as Trump scrambled to limit the damage from his much-criticized decision to clear US troops from Turkey’s path.
France Calls for ‘Firm and United’ European Response to US Tariffs – Reuters
France wants a “firm and united” European response to tariffs imposed by the United States that notably target the French wine sector, the French farm ministry said.
Regulatory News
FMSB Publishes Conflict of Interest Statement – Profit & Loss
The FICC Markets Standards Board has published the final version of a Statement of Good Practice on the issue of conflicts of interest. The Board says the Statement aims to provide practical, working level guidance and examples for market participants to draw on, as they consider ways to prevent, manage and mitigate conflicts of interest that arise within their firms.
FSB Reports on Implementation of OTC Derivative Reforms
The Financial Stability Board (FSB) today published its annual progress report on the implementation of the agreed G20 reforms to over-the-counter (OTC) derivatives markets. Overall there has been limited additional implementation of the reforms between end-November 2018 and end-September 2019. The report notes the following progress:
Mexico Probes Suspected Rigging of Government Bond Trading – Reuters
Some participants in Mexico’s financial market are under investigation on suspicion of engaging in “absolute monopolistic practices” in the brokerage market for Mexican government debt, the country’s antitrust watchdog said.
Fed Awaits Answers on Liquidity Strains – Financial Times
The Federal Reserve is turning aggressive in its efforts to resolve the disruption in money markets.
Australian Regulator Proposes Higher Capital Requirements for Big Bank Investments – Reuters
Australia’s prudential regulator on Tuesday outlined proposals to increase the amount of equity banks need to support investments in large subsidiaries, and to reduce that for smaller units.
Crypto News
Facebook’s Libra Cryptocurrency Gets Remaining Partners’ Nod – Bloomberg
Facebook Inc.’s remaining partners in its digital currency project signed paperwork Monday to officially join the Libra Association, a new governing body that will oversee the social media giant’s proposed global cryptocurrency, Libra.
- Facebook Admits Digital Currency Doubts as Regulatory Hurdles Loom – Financial Times
- Facebook’s Currency Already Was Devalued – Wall Street Journal
China Trading Ban is Fuelling Rise of Controversial Crypto Coin – Bloomberg
Cryptocurrency investors better not take their eyes off China, even after regulators there started to crack down on digital assets.
Ripple, Coinbase Invest in Mexico’s Biggest Crypto Exchange Bitso – Coin Telegraph
Ripple, the firm behind the third biggest cryptocurrency, has led an investment round in Bitso, one of the biggest crypto exchanges in the Spanish-speaking world.
CME Says Bitcoin Futures Gaining Interest from Big Investors – Coin Desk
CME Group, the Chicago-based exchange operator, said its bitcoin futures contracts grew in popularity last quarter, with the number of open contracts up 61 percent from a year earlier because of growing demand from institutional investors.
FXCM Group Adds Cryptocurrency Baskets to its Retail Offering – Yahoo Finance
FXCM Group, a leading international provider of online foreign exchange trading, CFD trading, cryptocurrencies and related services, today announced the introduction of cryptocurrency baskets to its retail customers.
Company News
Citigroup to Set Up Wholly Owned Securities Business in China – Bloomberg
Citigroup, which is dissolving its investment-banking joint venture in China, is now planning to set up a wholly owned securities business in the world’s second-largest capital market, according to people with knowledge of the matter.
Dimon Will Go First in ‘Fire Hose’ Deluge of US Bank Earnings – Bloomberg
There will be a lot to watch when bank earnings kick off on Tuesday morning, with reports from JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc., Wells Fargo & Co. and money manager BlackRock Inc. all set to hit at or before 8 a.m.
Hedge Funds Look for Opportunities in Beaten-Up Argentine Assets – Financial Times
Hedge funds hit by a fierce summer sell-off in Argentine assets are putting more money to work in the country, betting that today’s knock-down prices are bound to rise.
LCH Leads Top CCPs on Operational Failures – Risk
The London-based clearing house disclosed that core systems used for clearing failed 15 times over 12 months. These failings caused the systems to be offline for seven hours and 35 minutes in total.
New Change FX Joins IOWA.rocks Community – Hedge Week
New Change FX, has joined IOWA.rocks, a new financial data marketplace.
Kace to Offer Electronic Distribution of FX Options in China – FX Week
Fenics Software’s Kace has partnered with Chinese technology company Erayt to offer electronic distribution of FX options in China, as volumes of the instrument are expected to grow in the local market.
Citi’s Head of Euro Swaps Trading Quit Amidst Claims of Paris Move for Team – eFinancial Careers
Jason Cohen, the head of euro swaps trading at Citi, is understood to have left the bank amidst rumours that half his team is being moved to Paris.
Market Savvy
Gold to Extend Rally in 2020 as Retail Investors Climb on Board – Bloomberg
The next push in gold prices will come from retail investors as risks remain skewed to the upside, according to Standard Chartered Bank.
RBA Aware Low Rates May Backfire – Australian Financial Review
The Reserve Bank said it was possible that low interest rates might be starting to have a “negative effect on the income and confidence of savers”.
Foreign Markets are Caught in Dollar’s Web – Wall Street Journal
The capital markets and global economy are caught in a feedback loop amplified by U.S. politics and the U.S. dollar. The question is how long investors will suffer.
China’s Factory Prices Post Steepest Fall in Three Years – Reuters
China’s factory gate prices declined at the fastest pace in more than three years in September, reinforcing the case for Beijing to unveil further stimulus as manufacturing cools on weak demand and US trade pressures.
Kuroda is on Course to Shrink the Bank of Japan’s Bond Holdings – Bloomberg
The Bank of Japan is on course for a historic turning point that would see its bond holdings shrink next year for the first time in a decade, according to a Bloomberg News analysis.