Top Headlines

Fed Cuts Rate for Third Time This Year, Signals Pause – Wall Street Journal

The Federal Reserve cut interest rates for the third time this year but signalled it wouldn’t reduce them further unless the economy slowed sharply.

China Officials Optimistic for Trade Deal with US Despite APEC Setback – Reuters

Chinese officials voiced optimism that Beijing and Washington can find a way to clinch the so-called Phase One trade deal next month, despite the abrupt cancellation of the summit where the heads of state were to meet to formally sign the deal.

China’s Factory Activity Shrinks at Sharper Pace, Services Weaken as Risks Grow – Reuters

Factory activity in China shrank for the sixth straight month in October and by more than expected, while service sector growth eased as firms grapple with the weakest economic growth in nearly 30 years.

US Treasury Considers Selling 50-Year Bonds – Financial Times

The US government is considering selling 50-year bonds, joining other countries around the world that have seized on investors’ hunger for long-dated debt to lock in record-low borrowing costs.

BOJ Sends Clearer Signal of Rate Cut Chance; Keeps Policy Steady – Reuters

The Bank of Japan kept monetary policy steady on Thursday as expected but offered a stronger signal it may cut interest rates in future, underscoring its concern that overseas risks could derail the country’s fragile economic recovery.

Central Bankers Need Political Savvy More Than Ever – Financial Times

Christine Lagarde assumes the presidency of the European Central Bank on Friday at a controversial time for the institution. But for central bankers, controversy is often a byproduct of necessary intervention. That is certainly true today.

Brazil Cuts Rates to New Low 5.00%, Signals Pace of Future Easing May Slow – Reuters

Brazil’s central bank cut its benchmark interest rate to a new all-time low of 5.00% on Wednesday as expected, but signaled that further easing may be less aggressive than it has been in recent months, despite inflation running well below target.

US Expects Argentina to Uphold Commitment to IMF: Mnuchin – Reuters

The United States expects Argentina’s incoming Peronist government to uphold the country’s commitment to the terms of its $57 billion International Monetary Fund loan program, U.S. Treasury Secretary Steven Mnuchin said.

Blow for Johnson as Morgan Quits Ahead of UK Election Battle – Bloomberg

Boris Johnson suffered a surprise blow to his election campaign on day one of the contest when senior Cabinet minister Nicky Morgan announced she was quitting politics.

HSBC Cuts Hong Kong Prime Rate for First Time in 11 Years – Bloomberg

HSBC Holdings Plc lowered its Hong Kong prime lending rate for the first time in 11 years, underscoring the economic challenges facing the financial hub.

Regulatory News

Kulkin Re-Joins Steptoe – Profit & Loss

Matthew Kulkin, the former director of the US Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight, has re-joined the law firm Steptoe & Johnson as a partner and co-chair of its Financial Services Group.

Can America’s Capital Markets Reinvent Themselves? – Financial Times

In calling off the IPO and turning back to its private market investors, WeWork symbolised the powerful forces that are reshaping America’s capital markets as the number of new listings shrinks while the power of the private equity industry continues to surge.

Cleaning Up India’s Financial System Is Like Playing Whack-a-Mole – Bloomberg Businessweek

Even after billions in government aid, India’s banks have the highest percentage of stressed loans of all major economies.

EU Coordination on Post-Brexit Planning Lacking: FCA – FOW

The FCA’s international director has called for more action from EU regulators on clearing and trading obligations.

CFTC Nabs $2.5M Victory Over Currency Trading Scheme – Law360

A Florida company must pay nearly $2.5 million for lying to investors about its foreign currency trading activities and for misusing funds.

Crypto News

Explaining Blockchain to Xi Jinping Brings $1.7 Billion Windfall – Bloomberg

As the blockchain frenzy fades in China, one stock continues to rally as investors bank on its connection with President Xi Jinping.

Bitcoin Whitepaper: Eleven Years On And Still Going Strong – NewsBTC

Halloween is not just a festival for warding off spirits. Anyone with an interest in crypto assets and blockchain technology will also know that October 31 marks the day that the visionary Satoshi Nakamoto released the Bitcoin whitepaper. BTC has come a long way over the past 11 years.

‘Magic Internet Money’ May Be Too Volatile to Attain Gold Status – Bloomberg

Back in early 2013, the website asked users to select a slogan for the embryonic cryptocurrency. The winner was “Magic Internet Money,” with runners-up “In Crypto We Trust” and “You Asked for Change, We Gave You Coins.” But it’s the tagline that came in eighth, “Digital Gold,” that has become synonymous with the dominate cryptocurrency.

Bitcoin Thermocap Approaches $15B as Miners Hit $1B in Fee Revenue – Coin Telegraph

Bitcoin miners had made almost $15 billion securing the network as of the middle of this month.

Bitcoin And Crypto Is Heading For An Epic Social Media Showdown – Forbes

In one corner: Twitter’s cofounder and chief executive Jack Dorsey. In the other corner: Facebook’s cofounder and chief executive Mark Zuckerberg. The fight’s prize is the future of money and their respective weapons are bitcoin and libra.

Company News

What to Make of Citi’s Cull of FX Platforms? – Profit & Loss

Citi’s intention to cut the number of FX platforms it connects to is the latest – and highest profile – example of the FX industry’s growing antipathy towards fragmentation.

Rise of Machine Trading Forces Data Providers to Pivot – Financial Times

Financial information suppliers are on the hunt for new markets such as wealth management and corporate audiences, according to the chief executive of Factset, as the decline of the traditional dealing floor makes it harder to sell data to traders.

Bank of China Says Will Re-issue Euro-Denominated Sovereign Bonds After 15-Year Hiatus – Reuters

Bank of China Ltd said on Thursday it will assist the country’s finance ministry with the re-issue of euro-denominated sovereign bonds after a 15-year hiatus.

CEO of Europe’s Largest Sovereign Wealth Fund to Step Down – Financial News

Norges Bank Investment Management, which runs the $1.1tn Norwegian Government Pension Fund Global, is on the hunt for a new chief executive after announcing that Yngve Slyngstad will step down.

Market Savvy

Don’t bet on the Pound Either Way as a December Election Looms – Financial Times

A no-deal Brexit is still possible and remains the most significant threat to sterling.

Indonesia Finmin: US Rate Cut to Pave Way for Emerging Markets to Lift Growth – Reuters

The US Federal Reserve’s third rate cut this year should create space for many emerging markets to boost their economic growth and increase investment, Indonesia’s Finance Minister Sri Mulyani Indrawati said on Thursday.

Negative Interest Rate Skepticism Grows at the European Central Bank – Bloomberg

One of Christine Lagarde’s most important tools for stimulating inflation might be falling out of favour even before she gets to wield it as European Central Bank president.