Johnson Issues Ultimatum to EU Over Brexit Talks – Bloomberg
Prime Minister Boris Johnson will not start talks with European Union leaders over Brexit unless they first agree to his demand to reopen the divorce deal they struck with his predecessor, Theresa May.
- Pound Falls Against Dollar Amid Brexit Fears – Wall Street Journal
- Sterling Tumbles to Two-Year Low as Market Fears Grow Over No-Deal Brexit – Financial Times
EU ‘Protected’ from No-Deal Brexit, Brussels Insists – Financial Times
Brussels has hit back at claims the EU is unprepared to cope with the fallout of a no-deal Brexit, rejecting a report from Britain’s largest employer organisation that suggested the bloc was even less ready than the UK to withstand a chaotic departure.
Federal Reserve Policymakers to Meet as Scheduled on Wednesday – Reuters
The Federal Open Market Committee will meet as scheduled on Wednesday despite U.S. government offices opening late in Washington due to inclement weather, the Federal Reserve Board said in a statement on Tuesday.
Swiss Central Bank Fires Warning Shot on Currency – Wall Street Journal
The Swiss central bank appears to have taken its most significant steps to weaken the Swiss franc in two years, after looming rate cuts from US and European central banks put upward pressure on the currency.
Next IMF Chief Must be ‘Ready to Go to War’ – CNBC
The next head of the International Monetary Fund will have to deal with trade wars, currency manipulation and new digital currencies, a strategist says.
Headwinds at Home Push Xi to Show Progress in US Trade Talks – Asian Nikkei Review
Xi is believed to be under extra scrutiny amid the ongoing protests in Hong Kong, and he needs something to show in order to appease his critics.
China Gives Up Two of its Best-Kept Forex Reserve Secrets – South China Morning Post
China has for the first time disclosed its return on investment of its foreign exchange reserves and the share of US dollar-denominated assets in the stockpile.
Mexican President Says Would Like Cenbank to Consider Growth, Not Just Inflation – Reuters
Mexican President Andres Manuel Lopez Obrador said on Monday he would like the Mexican central bank to not only focus on controlling inflation but also think about growth in Latin America’s second-largest economy.
Regulatory News
Barclays, JPMorgan Face UK Forex-Rigging Class Action – Law360
Barclays and JP Morgan Chase are among five banks being sued in a U.K. antitrust court by investors over allegations that they manipulated the global foreign exchange market in a U.S.-style class action seeking more than £1 billion ($1.2 billion).
More Exchanges Add ‘Speed Bumps,’ Defying High-Frequency Traders –Wall Street Journal
High-frequency trading firms are hitting a growing number of “speed bumps” around the world – the latest blow to a business that has struggled in recent years.
Why the CFTC is the Most Important Regulator You’ve Never Heard Of – Fox Business
CFTC chairman Tarbert lays out priorities as he assumes the helm at the US regulator.
CFTC Fines Binary Options Firm – CFTC
The US Commodity Futures Trading Commission today issued an order filing and settling charges against Curtis Dalton of Middleton, Massachusetts, requiring him to pay $200,000 for offering illegal off-exchange retail commodity transactions to U.S. and overseas customers while failing to be registered by the CFTC as required.
German Court Clears ECB’s Supervision of Top Banks – Reuters
Germany’s Constitutional Court on Tuesday rejected a challenge to the European Central Bank’s authority to supervise the euro zone’s biggest banks, dismissing yet another German objection to the central bank’s powers.
Crypto News
Iran’s Government Gives the Official Nod to Crypto Mining – Coin Desk
Cryptocurrency mining is now an official industrial activity in Iran after winning approval from the country’s cabinet.
Circle CEO Allaire to Congress: Treat Crypto as a New Asset Class – Coin Desk
Crypto will take center stage on Capitol Hill for the second time in as many weeks when the US Senate Banking Committee convenes Tuesday to discuss current and potential regulations.
Facebook and Libra are Looming Large Over Tomorrow’s Crypto Hearing in Congress – Forbes
A key moment from Facebook’s blockchain lead David Marcus’ testimony in front of Congress was an exchange he had with House Financial Services Committee Chair Maxine Waters.
Company News
Vitale Named Global Head of FX at BNY – Profit & Loss
New York-based Jason Vitale has been promoted to global head of FX at BNY Mellon, a spokesperson confirms.
London Stock Exchange’s Big Bet is Profitable but Risky – Wall Street Journal
For now, investors are more focused on the profit potential of the LSE’s $15 billion acquisition of Refinitiv than on the financial and operational hurdles.
Trade Jitters Running High at US Companies Ahead of New US-China Talks – Reuters
Worries about the US-China trade war are running high during the current US quarterly reporting season, with companies as diverse as Juniper Networks and O’Reilly Automotive bemoaning the consequences but saying they are finding ways to weather the storm.
Broadway Celebrates 42% YoY Growth Period – Profit & Loss
Broadway Technology, which provides fixed income and FX front office solutions, today announced record results for 2018 and continued momentum in 2019.
Citi to Cut Hundreds of Trading Jobs – Bloomberg
The bank plans to slash jobs across its fixed-income and stock-trading operations over the course of 2019, according to people familiar with the matter.
Market Savvy
Yen Little Changed as BOJ Holds, Spotlight Shifts to Fed Meeting – Reuters
The yen was little changed versus the dollar on Tuesday, trading near a three-week low after the Bank of Japan left monetary policy on hold as expected, and as investors pared expectations for aggressive rate cuts from the US Federal Reserve.
Japan Factory Output Tumbles Most in Nearly 1-1/2 years as Trade War Bites – Reuters
Japan’s factory output tumbled the most in nearly 1-1/2-years in June, data showed on Tuesday, adding to a slew of indicators suggesting slowing global growth and the bruising U.S.-China trade war were taking a toll on the export-reliant economy.
A Post-Brexit ‘Boris Boom’? It May Happen – South China Morning Post
Much has been conjectured about Britain’s Brexit blues and the risk of a fatal crash out of Europe on bitter no-deal terms in three months’ time, but with new UK Prime Minister Boris Johnson now installed and leading the charge out of the European Union, this might be the occasion to ponder the unthinkable.