Johnson Goes for Broke to Thwart No-Deal Brexit Rebels – The Times

Boris Johnson has pushed Britain to the brink of a constitutional crisis as internal discord rises.

China’s Yuan Languishes in Longest Losing Streak on Record – Bloomberg

China’s yuan is poised for its longest losing streak on record. It’s on track for 11 straight sessions of decline, which would be its most prolonged slump according to China Foreign Exchange Trade System data that goes back as far as 2007.

China Discussing September Trade Talks with US: Commerce Ministry – Reuters

China and the United States are discussing face-to-face trade talks that were scheduled to be held in the United States in September, China’s Commerce Ministry said on Thursday.

Mnuchin Says US Doesn’t Intend to Intervene on Dollar for Now – Bloomberg

Treasury Secretary Steven Mnuchin said that the Trump administration doesn’t intend to intervene in the dollar market right now, but signaled he’d prefer any future move be coordinated with the Federal Reserve and global allies.

Italian President Summons Conte, Expected to Give New Government Mandate – Reuters

Italian President Sergio Mattarella has summoned outgoing Prime Minister Giuseppe Conte for a meeting on Thursday morning, a presidential official said.

An Old Grudge Between South Korea and Japan is Getting Out of Hand – The Economist

America is doing too little to bring its allies back to their senses.

Regulatory News

Japan Considers Tighter Ownership Reporting Rules to Better Monitor China – Reuters

Japan is considering lowering the 10% ownership threshold at which foreigners are required to report stakes in domestic companies, two officials said, as Tokyo looks to better monitor Chinese investment in areas related to security.

APRA Warns of ‘Systemic’ Risks – Australian Financial Review

The prudential regulator has highlighted the weaknesses of our biggest financial institutions as issues that need to be closely monitored as it sketched out its priorities in an update of its five-year plan.

WFE Flags Concerns About Emir 2.2 Proposal – FOW

World Federation of Exchanges highlights concerns about EU proposals for the supervision of third country CCPs.

Treasury’s Financial Crimes Unit Opens Foreign Investigations Office – Wall Street Journal

The US Treasury Department’s financial crimes unit has created a division that will be responsible for identifying foreign money-laundering threats.

Crypto News

Alibaba, Tencent, Five Others to Receive First Chinese Government Cryptocurrency – Forbes

China’s central bank will launch a state-backed cryptocurrency and issue it to seven institutions in the coming months, according to a former employee of one of the institutions who is now an independent researcher. 

Crypto Crash Prompts Guessing Game – Bloomberg

Cryptocurrencies plunged suddenly in afternoon trading on Wednesday, spurring a guessing game of potential catalyst among enthusiasts and investors.

TrueDigital Partners with Crux – Profit & Loss

TrueDigital, a provider of institutional-grade products to the crypto space, has announced a partnership with Crux Informatics, a cloud-based platform and managed service that provides data delivery and operations at scale.

Switzerland’s First Licenced Cryptocurrency Bank, to Foray into Singapore – South China Morning Post

Crypto firm Sygnum plans to apply for a banking licence in the island nation and also will offer custody, brokerage and tokenisation services for digital assets to qualified investors.

A Crypto Miner Cuts Costs and Rides Bitcoin’s Price Rise – Wall Street Journal

Toronto-based Hut 8 Mining laid off staff and renegotiated contracts before cryptocurrency’s rally.

Company News

RBC, TD in the FX Regulatory Firing Line – Profit & Loss

The Ontario Securities Commission is to hold a hearing at which it will be decided whether to accept settlement offers from the Royal Bank of Canada and TD Bank over the banks’ alleged failure of adequately supervise their FX businesses, as well as insufficient controls. 

NAB Survey Highlights Growing FX Internalisation at Fund Managers – Profit & Loss

As well as highlighting a greater focus on currency amongst managers, the NAB 2019 Superannuation FX Survey also highlights changing FX business structures at funds with a growing number taking more care over their execution policies.

US Company Dividends Now Outstrip Treasury Yields – Financial Times

The dramatic decline in yields on US Treasury bonds means that investors can now get more income from dividends on S&P 500 shares than on even the longest-dated government debt, upending the traditional relationship between stocks and bonds and potentially driving more savers towards the stock market.

Koch Industries Seeds New Quantitative Trading Firm – Wall Street Journal

Koch Industries Inc. has helped launch a new quantitative-trading firm aimed at boosting investment returns at a time of market volatility.

Market Savvy

Fed’s Daly Says Her ‘Bias’ is to Run Hot US Economy – Reuters

San Francisco Federal Reserve President Mary Daly on Thursday signalled support for continued US monetary policy accommodation, saying she believes the benefits of running a “hot” economy currently outweigh the potential costs.

SNB’s Maechler Says Franc Level Means Expansionary Policy Needed –Bloomberg

Swiss National Bank Governing Board Member Andrea Maechler said the franc’s value means the central bank’s ultra-loose monetary policy is vital.

BOJ Policymaker Warns of Dangers of More Easing, Widening Rift in Board – Reuters

A Bank of Japan board member warned of potential dangers if the central bank’s already massive stimulus is ramped up, a view suggesting there is no consensus on how quickly it should ease policy again to head off the risk of recession.

Europe Needs a Stronger Anchor for Fiscal Policy – Financial Times

An EU-wide spending rule would be simpler and clearer than the focus on deficits.