Global Debt Surges Above $250 Trillion as U.S., China Lead Way – Bloomberg
Global debt hit a fresh record above $250 trillion in the first half of 2019, with China and the U.S. accounting for more than 60% of new borrowing, the Institute of International Finance said.
U.S. House Speaker Seeks to Pass Mexico, Canada Trade Pact This Year – Reuters
U.S. House Speaker Nancy Pelosi on Thursday said a breakthrough in talks with the Trump administration on the trade pact with Mexico and Canada could be imminent and that she wanted to pass the deal by the end of the year.
Pelosi Says Trump has Admitted to Bribery as Impeachment Probe Intensifies – Reuters
House of Representatives Speaker Nancy Pelosi said on Thursday President Donald Trump already has admitted to bribery in the Ukraine scandal at the heart of a Democratic-led inquiry, accusing him of an impeachable offense under the U.S. Constitution.
Fed’s Powell: No ‘Booming’ in U.S. Economy that Threatens to Go Bust – Reuters
Federal Reserve Chair Jerome Powell on Thursday said the risk of the U.S. economy facing a dramatic bust is remote, partly because the record-long expansion is notable for not having pockets of overheating activity.
In Swaps We Trust? Disappearing Dollars Drive Currency Trading Dependence – Reuters
As dollars dry up, global finance is growing increasingly dependent on opaque currency trading to keep cash flowing.
China Will Further Prioritize Stabilizing Growth: Premier Li – Reuters
China’s Premier Li Keqiang said the country will further prioritize stabilizing growth, according to state media on Thursday citing a meeting he had with local officials.
EU Launches Case Against UK for Failing to Name New Commissioner – Reuters
he European Union’s executive launched a legal case on Thursday against Britain for failing to name a representative for the new European Commission that is due to take over from Dec. 1.
Germany Narrowly Avoids Recession as Trade Tensions Ease – The New York Times
The German economy unexpectedly rebounded in the third quarter as the trade war between America and China lost some of its intensity, assuaging fears of a recession that could drag down the rest of the eurozone.
No More Surrender for Brexit Party’s Farage in British Election – Reuters
Brexit Party leader Nigel Farage on Thursday rejected demands to further help British Prime Minister Boris Johnson by pulling out of contests with the opposition Labour Party, saying his aim was to win enough parliamentary seats to hold Johnson to account.
Riksbank Dumps Canadian and Australian Debt in Green Push – Financial Times
Sweden’s central bank has ditched bonds issued by Australian and Canadian regions on the grounds that their carbon emissions are too high, as part of its push to use monetary policy in the battle against climate change.
Regulatory News
Industry Bodies Urge EU to Extend Temporary Equivalence of UK CCPs – The Trade
Fourteen trade associations have banded together to urge the European Commission to extend the temporary equivalence and recognition of UK central counterparties (CCPs).
U.S. Commodity Futures Trading Commission Commissioner Rostin Behnam today announced the members of the new Climate-Related Market Risk Subcommittee (Climate Subcommittee) of the CFTC’s Market Risk Advisory Committee (MRAC). Commissioner Behnam is the sponsor of the MRAC.
Fed Not Focused on Daily Ups, Downs of Trade Deal: Williams – Reuters
The U.S. Federal Reserve will not make policy based on day to day developments in U.S.-China trade policy or on Britain’s exit from the European Union, a U.S. central banker said on Thursday, in part because businesses do not make their decisions that way either.
Sweden to Abandon Negative Rates but Currency Can’t Catch a Break – Wall Street Journal
Sweden, unlike most of the rest of the slow-growth world, has had enough of negative interest rates.
Mexico Cuts Key Interest Rate for Third Straight Time – Bloomberg
Mexico’s central bank cut the benchmark interest rate for a third straight meeting after inflation slowed to target and growth stumbled.
Washington should suspend the special economic status granted to Hong Kong if China deploys its military forces in the city, a congressional body warned on Thursday.
Swaps Data: CCPs – A Systemically Important Market Infrastructure – Risk
With more than $1 trillion of financial resources backing cleared trades, and billions of dollars of cash flowing daily between members and clients, clearing houses today are systemically important market infrastructures.
Crypto News
AFME Calls for Regulatory Convergence on Crypto-Assets – Markets Media
The Association for Financial Markets in Europe (AFME) has published a new paper setting out five recommendations to deliver supervisory convergence on the regulation of crypto-assets in Europe.
A US Recession Could Fuel a New Cryptocurrency Boom and Bust – Financial Times
If the global economic slowdown and uncertainty about the future of US-China trade send the US into recession, it could spur a bull run in cryptocurrencies. But while this shift may provide investors with a temporary safe haven, it is likely to lead many to financial ruin.
SEC’s Settlements with Some Cryptocurrency Firms Showing Cracks – Wall Street Journal
Regulators’ efforts to push cryptocurrency startups to comply with laws governing fundraising may be faltering, as several firms that agreed to fix past misdeeds missed deadlines to repay investors or provide more transparency.
In stealth, over the past several months, Peter Smith, CEO of Blockchain.com, has been building a lending business to go head-to-head with firms like Genesis Global Trading and BlockFi.
Switzerland’s primary stock exchange SIX has listed an income-generating exchange-traded product (ETP) based on tezos (XTZ) token.
Northern Trust Testing Fractionlized Bonds on Blockchain – CoinDesk
Custody bank Northern Trust is testing the trading of fractionalized bonds on a blockchain.
Company News
Virtu Financial Adds FX Benchmarks to TCA – The Trade
High-speed trading firm Virtu Financial has expanded its transaction cost analysis (TCA) tool with the addition of low latency foreign exchange benchmarks.
CLS Now Offering FX Forward Data – Profit & Loss
CLS is releasing an FX forward volume data set as part of its suite of executed trade data products.
Baton, JP Morgan Form Margin Payments Solution – Profit & Loss
Baton Systems, a provider of distributed ledger technology (DLT)–based post-trade solutions for capital markets, and JP Morgan have developed a solution that enables near real-time cash and collateral transfers to multiple clearing houses.
Market Savvy
The Yield Curve Has Un-Inverted: Now What? – Forbes
Recently, interest rates and the yield curve have gotten a lot of headlines. Specifically, there has been much discussion around the yield curve un-inverting and what that could mean in terms of a recession. As such, it’s worth taking a closer look at the yield curve and whether it is a reliable indicator of trouble ahead.
Argentina’s Peso-Hedging Market Crushed by Exchange Rate Dispute – Financial Times
The market for hedging currency risk in Argentina has in effect closed just three years since its inception, after the reinstatement of capital controls in September led to a severe disruption in derivatives contracts used by foreign investors.
Market Participants Question South African Rate Reform – Risk
South Africa is trying to reform its key interbank rate – potentially moving to a risk-free rate some tentatively dub Zaribor – but banks and buy-side participants question the necessity.
Banks Navigate Latin America’s Turmoil, Protect Lending Relationships – Reuters
Political crises, weak economic growth and social unrest have heightened investor anxiety in Latin America in recent months, but banks, keen on maintaining a strong presence in the region, are staying put.