Johnson Gets Last Chance to Keep Brexit Deal Alive – The Times

Boris Johnson is fighting to salvage his Brexit deal after an explosive row with Angela Merkel put talks on the brink of collapse.

Stars Fail to Align to Bring LSE into Hong Kong Orbit – Financial Times

Decision to abandon London bid leaves HKEX looking elsewhere for growth.

China Urges US to Remove Sanctions on Chinese Firms – Reuters

China strongly urges the US to remove sanctions on Chinese firms and will take any necessary measures to firmly protect its own interests, China’s commerce ministry said in a statement late on Tuesday.

Fed’s Powell says US Expansion is ‘Sustainable’ – Reuters

Federal Reserve chairman Jerome Powell flagged openness to further rate cuts to fend off global economic risks, repeating that the central bank will act “as appropriate” amid an economy that he said is likely to continue to expand.

Central Bank Easing Soars to a Decade High – Financial Times

More than half of central banks are now in easing mode, the biggest proportion since the aftermath of the financial crisis.

Euro-Area Finance Chiefs Brace for Fresh Fight Over Budget – Bloomberg

Euro-area finance ministers will debate the final key elements of a small budget for their currency bloc, as the region seeks to cap two years of difficult negotiations over a tool that falls far short of the original sweeping vision of French President Emmanuel Macron.

How Singapore Stands to Gain from Hong Kong’s Troubles – The Economist

Whatever view is taken on the mayhem in Hong Kong – righteous rebellion or obscene rioting – it is a disaster for the territory’s economy. And if one place stands to benefit from Hong Kong’s troubles, it is that other east Asian, self-governing, Chinese-majority, financial, commercial and shipping hub: Singapore.

Productivity Stagnant Despite Global Stimulus: WEF – Reuters

Economies around the world have failed to boost productivity levels despite $10 trillion of central bank stimulus unleashed since the global financial crisis of a decade ago, according to the Geneva-based World Economic Forum think tank.

Regulatory News

Federal Reserve Approves Simpler ‘Volcker Rule’ Ban on Proprietary Trading – Reuters

The Federal Reserve has approved a final rule simplifying the ‘Volcker Rule’ ban on proprietary trading, cementing a significant win for banks under the Trump administration.

US Clearing Houses Need Not Take Collateral Damage from Brexit – Risk

There are signs the US and EU will pull back from the brink in dispute over CCPs.

Federal Reserve to Resume Treasury Purchases to Prevent a Cash Crunch – Financial Times

The Federal Reserve will soon resume purchases of short-term US Treasury bonds to expand its balance sheet in hopes of preventing a repeat of the recent disruption in overnight “repo” markets.

Fund Fears Linger Over Guidelines Set to Avert Fire Sales – Risk

When an investment fund starts to have liquidity issues, the problem can magnify rapidly. What starts as a dry patch can soon become a forest fire, as this summer’s run on Woodford illustrated.

Germany Wants a Woman to Succeed Lautenschlaeger at ECB: Scholz – Reuters

Germany’s Finance Minister Olaf Scholz on Wednesday indicated that he was in favour of a woman succeeding German board member Sabine Lautenschlaeger at the European Central Bank.

Former Draghi Lieutenant Appeals for Calm in ECB Stimulus Row – Bloomberg

Former European Central Bank Chief Economist Peter Praet appealed for calm in an increasingly bitter row over monetary policy that threatens to mar President Mario Draghi’s final weeks in office.

Crypto News

Are FX Swaps Ready for Blockchain Settlement? – Profit & Loss

Profit & Loss recently reported on a new venture designed to settle FX swaps via blockchain-based technology. Galen Stops takes a closer look at the genesis and the mechanics of this solution.

Quadriga Founder’s Finances Add to Mystery of Missing Millions – Bloomberg

QuadrigaCX founder Gerald Cotten and his wife Jennifer Robertson had a “significant” fortune that included real estate, vehicles, a sailboat and an airplane. Yet, the duo apparently earned less than the typical Canadian couple.

New Exchange Launches Targeting Institutional Crypto Trading – Profit & Loss

A new exchange for trading cryptoassets that is targeting the institutional and professional market segments has launched in London.

PayPal’s Exit from Libra May Trigger Fresh Hearings, Cowen Says – Bloomberg

PayPal Holdings Inc.’s decision to pull out of the Libra Association may lead to more congressional hearings from critics seeking to press the payments company for more details on why it walked away, according to Cowen.

SNB and Swiss Stock Exchange Team Up on Digital Currency – Bloomberg

The Swiss National Bank and stock exchange SIX will jointly explore how to make central bank digital money available for the trading and settlement among financial market players.

Company News

Primary FX Venues See Volume Drop – Profit & Loss

The primary FX venues have reported a year-on-year decline in spot FX volume, however the news was slightly more positive on a month-on-month basis.

JPMorgan Private Bank Hires Former New York Fed Trader – Bloomberg

JP Morgan Private Bank has appointed former Federal Reserve Bank of New York trader and analyst Samuel Zief as head of foreign exchange strategy for Europe, the Middle East and Africa.

HSBC’s Cuts Are an Early Warning Signal to Banks – Financial Times

Plans to cut up to 10,000 jobs suggest group is ahead of the curve.

German Banks Start Merger Talks to Create €260bn Giant – Financial Times

Germany’s state-backed banking system is pushing ahead with merger talks that could create a financial powerhouse with €260bn in assets and 11,000 staff.

Market Savvy

The US Unemployment Rate is Enviable. It’s Consumer Confidence America Needs to Worry About – South China Morning Post

The latest figures suggest tensions over the trade war with China are starting to hit home. With more tariff trouble brewing on the European front, amid an already slowing economy, Fed officials may be forced to consider more forceful monetary easing.

Thailand Looks to Rein in Baht as It Hits 6-Year High – Bloomberg

The Bank of Thailand is considering imposing additional measures to rein in the currency amid further gains in the baht to a six-year high and worries about economic growth.

Trump Election Rhetoric Could Send Mexican Peso Down Almost 9%: Banorte – Reuters  

The Mexican peso could fall almost 9% to 21.30 per dollar next year if U.S. President Donald Trump again threatens the country during his re-election campaign, Mexican financial group Banorte said.

Free Trade Is Expanding, Just Not with the US – Bloomberg

Deals forged by countries accounting for more than one-third of global output leave America on the outside.