Johnson Seeks to Avert Defeat by Accelerating Brexit Talks – Financial Times

Boris Johnson is to “step up the tempo” of talks in Brussels to secure a new Brexit deal, as he attempts to avert a defeat at the hands of Labour and pro-European Conservative rebel MPs at Westminster next week.

Signs of New US-China Trade Discussions Emerge as Increased Tariffs Loom – Reuters

The United States and China gave signs on Thursday that they will resume trade talks as the two economic superpowers discussed the next round of in-person negotiations in September ahead of a looming deadline for additional US tariffs.

Renminbi Set for Biggest Monthly Fall in More Than 25 Years – Financial Times

China’s currency has dropped 3.7 per cent against the dollar in August, putting it on track for the biggest monthly fall in more than a quarter of a century as Beijing hunkers down for a protracted trade war with the US.

Italy’s President Gives Conte Green Light to Form New Government –Reuters

Italy’s president has asked Giuseppe Conte to head up a coalition of the 5-Star Movement and opposition Democratic Party (PD), a move could that could improve Italy’s fractious relations with the European Union.

Trump’s on a Path to a One-Term Presidency – Bloomberg

President Trump will never be mistaken for President George H. W. Bush, but Trump may yet have one big thing in common with Bush the Elder: He too may end up being a one-term president.

Chicago Faces $838 Million Budget Shortfall Next Year: ‘It’s the Largest in our Recent History’ – Chicago Tribune

Mayor Lori Lightfoot laid out a dismal financial forecast for Chicago during her citywide address Thursday night — a projected $838 million budget shortfall in the 2020 fiscal year — and called for a variety of help from state government while not ruling out any options to close the gargantuan shortfall.

Hungary’s Forint Slips to Record Low Against the Euro – Financial Times

Hungary’s currency dropped to a record low against the euro, continuing a downward trend amid global trade tensions, fears of a no-deal Brexit and expectations for slower economic growth across Europe.

BofAML Says Even the Options Market ‘Too Tired’ to Price Risks – Australian Financial Review

Many investors have been fatigued by the ups and downs across markets — and derivatives may be no different.

Argentine Funds Block Redemptions as Locals Rush for Exit – Bloomberg

S&P declares ‘selective default’ on plan to postpone payments as government takes desperate measures to shore up finances.

Regulatory News

ASIC Vows to Bring OTC Markets Supervision in Line with Listed – Profit & Loss

In its latest five-year Corporate Plan, the Australian Securities and Investment Commission has confirmed previous hints that the regulator’s wholesale OTC market oversight will be brought into line with those in listed markets

A First for Derivatives Markets – ISDA

Anyone familiar with the history of the derivatives market will be able to tell you when the first swap was negotiated – in 1981, between IBM and World Bank. Thirty-eight years on, the market has seen the latest important landmark: completion of the first fully electronic negotiation of relationship-level swaps documentation between two counterparties.

Fake Bars Slip Dirty Gold into World Markets – Australian Financial Review

A forgery crisis is quietly roiling the world’s gold industry. 

China Clamps Down on Capital Flight Risk as Yuan Weakens – Asian Nikkei Review

New rules include stricter oversight of banks in times of capital flight and restrictions on real estate developers’ access to foreign currency bonds. 

Crypto News

India’s Efforts to Stifle Cryptocurrencies Could Be Doomed to Fail – Financial Times

Government’s stance seems at odds with policy to embrace tech that can digitise the economy.

Peak Price Bitcoin Hodlers Have Cashed Out – Decrypt

Those who bought during the bitcoin boom have left the party, says Coin Metrics.

How Facebook Can Win the Global Currency Battle – Euromoney 

Regulators, politicians, competition authorities and central bankers have all been outlining objections to the Libra project from the first day Facebook announced plans to let its 2.4 billion users exchange payments in a new virtual currency. Don’t be taken in. 

The Bitcoin Price can Finally be Understood – Financial Times

We thought we’d seen the best chart that would ever be made in cryptoland when Imperial College London professor Andrei Kirilenko gave us his crypto periodic table last year, but as it turns out, we were wrong.

Alan Howard-Backed Firm Plots $1bn Crypto Venture – Financial Times

New vehicle aims to lure investors attracted by returns but put off by poor governance.

Company News

Rise of MarketAxess Mirrors Demise of Traders on Wall Street – Financial Times

Electronic bond-trading platform has delivered better returns than Netflix or Amazon.

Banks Well-Placed to Win Back Business from Fintechs – Financial News

Traditional banks can still rely on high levels of trust to win back customers from innovative fintech challengers, according to a report from consultancy Oliver Wyman.

Treasurers Need to Move Out of Risk-Management Comfort Zone – Euromoney
Cash flow at risk and earnings at risk can help ensure FX risks are reported correctly, but treasurers need to do more to convince senior management to move away from tried and trusted methods that are no longer fit for purpose.

StanChart Targets Hedge Funds with Fixed Income Prime Unit – FOW

The bank is now able to offer fixed income prime brokerage connecting to its own custody and repo financing capabilities.

Market Savvy

Australia Is About to Run a Surplus at Precisely the Wrong Time – Bloomberg

Australia is on track to close twin deficits that were once seen as the Achilles heel of its small and open economy. Yet the dramatic turnaround is probably not what the Reserve Bank is after.

Africa Poised ‘to Play a Major Role in the World’ – Financial Times

Despite massive problems, vast continent is faring better than many people imagine.

Fortune No Longer Favours the Bold In Markets – Bloomberg

The theory that higher risk leads to higher returns is false.

The Almighty Dollar Needs a Rival – Bloomberg

America’s currency has become the lingua franca of commerce. That’s “putting the global economy under increasing strain.”

Central Banks Can No Longer Afford to Act in Isolation – Financial Times

International spillovers from monetary policy have been amplified by increased globalisation.