Europe First: Taking on the Dominance of the US Dollar – Financial Times

EU leaders believe the euro needs to play a larger role in order to compete against the US and China.

Small, But Important, Changes Required to the FX Global Code – Profit & Loss

The workstreams unveiled by the Global Foreign Exchange Committee contained few surprises, but one area in particular, while deemed unimportant by survey respondents, needs tweaking. After all, few saw a problem with FX traders talking to each other in chatrooms.

Unlocking the Value of FX Data – Profit & Loss

With more data available to FX market participants than ever before, the real value is in being able to interpret this data, says Maria Prata, managing director, global FX, at Deutsche Bank in a new video interview.

UK Conservatives Plan January Brexit, February Budget if They Win Election – Reuters

Prime Minister Boris Johnson’s Conservatives said they would complete Britain’s exit from the European Union by the end of January and hold a budget in February if they win the national election.

China Official Media Blasts US Uighur Bill, Calls for Reprisals – Reuters

Chinese official media excoriated the United States and called for harsh reprisals in editorials on Thursday after the US House of Representatives passed legislation requiring a stronger response to Beijing’s treatment of its Uighur Muslim minority.

Trump is Losing His Trade War with China, and Running Out of Economic Time – Daily Telegraph

Donald Trump has got away with his many trade wars over the last eighteen months because the US economy has been on steroids, a form of macroeconomic cheating that briefly steals growth from the future but catches up with you. 

Abe Launches $121bn Stimulus Package for Japan – Financial Times

Prime minister Shinzo Abe has launched Japan’s first fiscal stimulus since 2016 with a larger-than-expected ¥13.2tn ($121bn) package to repair typhoon damage, upgrade infrastructure and invest in new technologies.

Brussels on Collision Course with Germany as Budget Row Ramps Up – Financial Times

The EU’s new leadership has put itself on a collision course with Germany and other countries that want to cut hundreds of billions of euros from the bloc’s long-term budget, warning that it would imperil a host of strategic goals.

Regulatory News

How Soon Will Instant FX Settlement Be Possible? – Profit & Loss

The introduction of instant FX settlement and international payments has some serious obstacles to overcome; both internal and market infrastructure and vitally, how the two intersect.

US Regulators Signal Openness to Rethinking Practices that Caused Repo Market Woes – Reuters

In a potential win for the banking industry, two top US regulators signalled they may be open to changing supervisory practices that may have contributed towards disruption in the overnight lending markets.

New Zealand’s Central Bank to Increase Banks’ Capital Requirements – Reuters

New Zealand’s central bank on Thursday announced it would go ahead with plans to increase capital requirements for banks, but offered more time for the lenders to make the changes than originally proposed.

Isda to Poll Libor Users on Pre-Cessation Triggers, Again – Risk

Trade body seeks clarity on zombie lifespan and CCP response as it bows to regulatory pressure.

Crypto News

Central Bank Talk of Launching Cryptocurrencies is All Bluff – Financial Times

To the untrained eye, several of the world’s top central banks appear to be rushing towards launching their own cryptocurrencies any day now.

By Jove! Crypto has Discovered Netting – Financial Times

Bitcoin is moving firmly away from real time gross settlements and push payments and into the world of deferred net settlement and pull payments.

Circle Co-Founder Steps Down as Co-CEO – Coin Desk

Sean Neville, Circle’s co-CEO, will be stepping down from his role at the end of the month.

Ex-Morgan Stanley Execs Launch Crypto Derivatives Exchange – The Block Crypto

Eight former core developers from one of Wall Street’s top investment banks, Morgan Stanley, have launched a cryptocurrency derivatives exchange with big claims.

Bitcoin No Longer Looks Like ‘Digital Gold’ by One Measure – CoinDesk

If “digital gold” means “a safe-haven asset where investors park their money during financial market turmoil,” then bitcoin doesn’t fit the bill as well as it used to.

Thailand and Hong Kong in Crypto Collaboration – NewsBTC

Thailand and Hong Kong have just announced a joint agreement to utilize digital currencies to facilitate quicker payment in bilateral trade.

Crypto Exchange Gemini Burnt One-Third of its Stablecoin Supply – Coin Telegraph

Cryptocurrency exchange Gemini burnt about one-fifth of its Gemini Dollar stablecoin total supply on Dec. 3.

Company News

CME to Hike Market Data Fees by a Third – FOW

CME Group said in a client notification that it plans to increase market data fees by a third on April 1, 2020.

Adrian Lee & Partners Launches New Fund – Profit & Loss

Adrian Lee & Partners has launched a new fund, the Global Macro Alpha Fund.

M&G Suspends £2.5bn Fund on Brexit and Retail Woes – Financial Times

Fund manager M&G has halted trading in its £2.5bn property fund after fears over Brexit and a retail downturn prompted investors to rush to withdraw their money, echoing the crisis in the sector following the EU referendum.

Instinet Launches FX Platform – Profit & Loss

Instinet has signalled a push into the FX industry with the launch of Newport FX, an agency model spot e-FX platform. The new platform is a web-based desktop application that can be accessed through the firm’s Newport EMS, direct FIX API, or on a stand-alone basis.

Market Savvy

Dollar Wavers as Traders Tire of ‘Headline Ping-Pong’ – Reuters

The dollar wobbled as an earlier boost from upbeat trade comments by U.S. President Donald Trump ran out of steam and investors remained on edge over Sino-US tensions.

How the Euro has Become ‘The World’s New Carry Trade’ – Financial Times

The euro has entered a new phase, according to Deutsche Bank, rivalling Japan’s yen as the currency everyone wants to borrow – but no one wants to own.

Brazil Posts $4.5 Bln FX Outflow in Last Week of Nov: Central Bank – Reuters

Brazil posted a net foreign exchange outflow of $4.5 billion in the last week of November, the central bank said, a week that saw the dollar’s surge to a record high against the real prompt central bank intervention. 

Why it is Time to Question the Role of Economists – Financial News

Conventional economics has not done well in helping society cope with the digital revolution and the retreat of democracy.