Boris Johnson is increasingly optimistic that a Brexit deal could be agreed before the end of the week as negotiators began work on a draft text in Brussels.
- Johnson Hit by Prospect of No Brexit Until 2020 – The Times
- Pound Dips as Traders Brace Themselves for Dramatic Swings – Financial Times
- What are the Final Roadblocks on the Path to an Elusive Brexit Agreement – The Times
- The Market’s Brexit Enthusiasm Is Exaggerated – Wall Street Journal
The International Monetary Fund is growing even more pessimistic about the global economy, as higher import tariffs are strangling manufacturing activity and international trade.
The US-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warns, but it says output would rebound if their duelling tariffs were removed.
The US House of Representatives on Tuesday passed four pieces of legislation taking a hard line on China, three related to pro-democracy protests in Hong Kong and one commending Canada in its dispute over the extradition of a Chinese telecom executive.
Last week’s high-level talks in Washington appear to have made progress towards ‘phase one’ of a comprehensive trade deal, but the issue of enforcement has always been one of the thorniest issues between Beijing and Washington and led to the collapse of a talks in May.
With two weeks to go until their next policy meeting, US central bankers appear unconvinced a partial US-China trade deal is enough to dispel the policy uncertainty that has weighed on economic growth for months.
- Fed’s James Bullard Cites Risk of Slowing Economy – Wall Street Journal
- Fed’s Daly Says Important to Get Inflation to Target – Reuters
China caught traders off-guard with a surprise injection into the financial system via loans to banks, ahead of data on Friday which is expected to show a further slowdown in the domestic economy.
Negative interest rates are a viable tool to provide stimulus to economies that need it, and the US might have benefited from using it during the financial crisis, a new report from the San Francisco Fed says.
Italy’s government approved a draft 2020 budget in the early hours of Wednesday that aims to cut taxes for middle-earners and crack down on tax evaders, while holding the deficit at the same level as this year, government officials said.
China threatened to retaliate if the US Congress follows through with passing legislation that would require an annual review of whether the city is sufficiently autonomous from Beijing to justify its special trading status.
Germany intends to stick to its balanced budget rules for now and boost spending without incurring new debt, Finance Minister Olaf Scholz told Reuters, adding that the government would use all fiscal options in a severe economic crisis.
The United States carried out a secret cyber operation against Iran in the wake of the Sept. 14 attacks on Saudi Arabia’s oil facilities, which Washington and Riyadh blame on Tehran, two US officials have told Reuters.
Annegret Kramp-Karrenbauer’s path to succeed Angela Merkel as Germany’s chancellor seemed clear when she replaced her as leader of the governing Christian Democrats last December.
BoE committee mulls policy action, which could include capital hikes on Libor exposures.
Moving half of derivatives to central clearing could lower sector RWA inflation the bank says.
Money market funds that are among the largest holders of US Treasury bills say they are reluctant to sell them to the Federal Reserve, presenting an obstacle to the central bank as it seeks to increase the amount of cash in short-term lending markets.
Libor’s permanent discontinuation will be one of the “most significant events in global financial history”, BOJ deputy governor Masayoshi Amamiya said.
JPMorgan Chase & Co. had the cash and willingness to calm short-term funding markets when they went haywire in mid-September, but the banking giant said regulations held it back.
The crypto market, known as one of the most rabid topics for discussion on Twitter, is getting a new tool to help gauge investor sentiment – using tweets.
The Facebook Inc. executive responsible for the embattled Libra cryptocurrency said he doesn’t fault companies that pulled out of the project, adding that he’s optimistic more organizations will sign on despite intense opposition from politicians who seem to fear financial innovation.
- Facebook’s Diminished Libra Club Officially Launches – But Still has No CEO – Financial News
- Where it all Went Wrong for Facebook’s Libra – Financial Times
Analysts at RBC Capital Markets have suggested that stifling Facebook’s Libra may leave the field open to China’s central bank digital currency to dominate in emerging economies.
Investors who trade cryptocurrency also tend to take bigger risks in the stock market, suggesting they are seeking dopamine more than diversification, according to a recent study.
CLS says the average daily traded volume submitted to the settlement service was $1.84 trillion in September, a 5.3% month-on-month increase and a 6.5% year-on-year increase.
Some of the biggest institutional investors in the foreign exchange markets are aiming to cut out Wall Street banks from their trades, saying that by linking up directly they could save hundreds of millions of dollars in charges.
In a flurry of activity, the Federal Reserve has approved several rule changes in the past few days. Yet there has been no regulatory bonfire, and such changes as there have been have mainly benefited smaller banks.
JPMorgan Chase & Co. shares touched a record high following a strong third-quarter earnings report, underscoring the continued solid performance of the largest US lenders at a time of global tensions and economic worries.
CME Group will become the first derivatives marketplace to offer real-time futures and options market data using Google Cloud Platform, from mid-November.
Franklin Templeton’s flagship Global Bond Fund lost $3 billion in the third quarter as two of its biggest investments soured.
The yen’s “stubborn weakness” has been because of Japan’s Government Pension Investment Fund buying foreign assets, which has led to downward pressure on the currency.
Trump is selling loved-up negotiations but the trade complexities are unchanged. Beijing is wary of any currency deal reminiscent of the 1985 Plaza Accord while the US has yet to decide if it wants a truly free-floating yuan.
Inflation used to be the scourge of the world economy and the bane of American presidents – today the lethal assassin has gone missing.
New Zealand’s stronger-than-expected third-quarter inflation won’t deter the Reserve Bank from cutting interest rates again with most economists expecting a 25-basis point rate cut in November.
The Bank of Korea on Wednesday cut its key policy rate by a quarter point to a record low of 1.25 per cent in a bid to shore up growth as the export-driven economy has been hit hard by global trade frictions and weaker chip prices.