Johnson Plans General Election for October 14 if MPs Seize Control of Brexit – Daily Telegraph
Boris Johnson will hold a snap general election on Monday, Oct 14, if Parliament votes to seize control of Brexit from him on Tuesday.
- Rebels Reveal Plan for New Brexit Delay if Johnson Fails to Secure Deal – The Times
- Johnson Faces Electoral Gamble Despite Poll Lead – Financial Times
- Euro. Sterling on Backfoot as Political Turmoil Dogs Brexit Process – Reuters
Argentina’s Beleaguered Government Imposes Capital Controls – The Economist
Fear of a populist government provokes a market crash, forcing the president’s hand.
- Argentine Peso, Bonds Whiplashed After Capital Controls Imposed – Reuters
- Argentina: How IMF’s Biggest Ever Bailout Crumbled Under Macri – Financial Times
China, US Struggle to Set Meeting as Tariffs Erode Trust – Bloomberg
Chinese and US officials are struggling to agree on the schedule for a planned meeting this month to continue trade talks after Washington rejected Beijing’s request to delay tariffs that took effect over the weekend, according to people familiar with the discussions.
- China Concessions to US Would be ‘Grave Error’ in any Trade Deal –South China Morning Post
- US-China Trade War’s Global Impact Grows – Wall Street Journal
Hong Kong Leader Says She Would ‘Quit’ if She Could – Reuters
Embattled Hong Kong leader Carrie Lam said she has caused “unforgivable havoc” by igniting the political crisis engulfing the city and would quit if she had a choice.
China Lodges Tariff Case at WTO Against the US – Reuters
China has lodged a complaint against the United States at the World Trade Organization over US import duties, the Chinese Commerce Ministry said.
Australia Holds Rate, Watches and Waits as Sydney Property Jumps –Bloomberg
Australia’s central bank left policy unchanged as it waits to see how a combination of interest-rate cuts and tax relief impact the economy, with Sydney property prices already showing renewed strength.
Italian Parties Agree Agenda to Form New Government; 5-Star Votes on Deal – Reuters
Italy’s anti-establishment 5-Star Movement and Democratic Party unveiled a shared policy program on Tuesday to serve as the basis of a new coalition government, putting an expansionary 2020 budget at the top of their agenda.
Regulatory News
Himino New Head of FSB Regs Committee – Profit & Loss
The Financial Stability Board has appointed Ryozo Himino, vice minister for international affairs at the Japanese Financial Services Agency, as chair of the its standing committee on supervisory and regulatory cooperation.
RBC, TD, Settle FX-Related Fines – Profit & Loss
Royal Bank of Canada and TD Bank have succeeded their bid to settle a regulatory action brought by the Ontario Securities Commission over compliance failures in their FX businesses by paying a combined CAD 24.45 million.
FRTB Impact Three Times Higher Than Expected – Risk
Undisclosed ISDA study finds capital hike outweighs previous Basel Committee estimate.
Banks Warned on Foreign Exchange Fees – Australian Financial Review
Australia’s major banks have come under renewed pressure to slice foreign exchange fees, after the competition regulator found customers could have saved $150 million in fees last year if money was transferred overseas via lower-cost competitors to the big four.
Investors Can Ask to Depose UK Traders in Forex Suit – Law360
Investors claiming that several big banks fixed the foreign exchange market will be allowed to ask British courts for help in deposing three London-based traders as the investors go after Credit Suisse, the only bank yet to settle, a New York federal judge ruled.
Crypto News
Europe Should Ignore ‘Treacherous Promises’ of Facebook’s Libra Currency: ECB’s Mersch – Reuters
Facebook’s proposed Libra currency could undermine the European Central Bank’s ability to set monetary policy and Europe should ignore its siren call of “treacherous promises” ECB board member Yves Mersch said.
US Congress Urged to Regulate Crypto Sector Under Bank Secrecy Act – Coin Telegraph
The Financial Integrity Network – a Washington DC-based advisory firm – has urged the United States Congress to regulate firms in the cryptocurrency sector under the Bank Secrecy Act.
Binance is breaking into the futures market following the acquisition of a little-known derivatives platform.
A Crypto Fix for a Broken International Monetary System – Coin Desk
The international monetary system is broken. Helping to fix it poses a huge opportunity for the cryptographers behind cryptocurrency and blockchain technology.
Company News
Iorio Joins ExodusPoint – Profit & Loss
Former NEX Group and CME senior staffer Jim Iorio has joined ExodusPoint Capital Management in London as CEO for Europe.
Insurers Advised to Diversify Foreign Exchange Hedging Strategies – Business Korea
Korean insurers are advised to diversify their foreign exchange hedging strategies as their hedging costs are snowballing due to the reversal of interest rates between the United States and Korea.
EuronextFX Hits New High for the Year as FX Volumes Rebound in August – Profit & Loss
The rising heat around the trade war and general volatility in exchange rates saw CboeFX and Euronext FX volumes rebound strongly from a poor July.
Trade War Dents Chinese Company Profits, Portfolio Inflows – Reuters
Some Chinese business sectors reported solid first half earnings, though a substantial fall in industrial profits and in tepid overseas investment inflows into China’s stock markets show fallout from the protracted trade war with the United States.
Market Savvy
Value Investors to Ride Yield Curve Doom – Australian Financial Review
Value investing has taken a beating as money has flowed into market darling growth stocks and low-fee exchange traded funds, but it could recover its swagger from the very thing freaking out investors around the world – an inverted yield curve.
On Trade War Trump Should Pick a Stance and Stick to it – South China Morning Post
Instead of a Jekyll and Hyde act on China trade, the US president should just go all out, in any one direction.
Brexit Weighs on Germany’s Export-Dependent Manufacturers – Financial Times
Germany’s export-dependent economy is suffering from a Brexit shock which, along with the rise in global trade tensions and structural changes in the car industry, threatens to push Europe’s economic powerhouse into recession.
Why Central Bankers May Be Hurting Rather than Helping – Financial Times
Cutting rates below zero distorts the market for banks and for investors.