Johnson Takes Tough New Line on Brexit Trade Talks – The Times

Boris Johnson will redraw his Brexit bill this week to make it illegal for parliament to extend the transition period – a move that will put him in direct conflict with Brussels.

Kudlow: US-China Deal ‘Absolutely’ Done, US Exports to China Will Double – Reuters

The so-called Phase One trade deal between Washington and Beijing has been “absolutely completed,” a top White House adviser said, adding that US exports to China will double under the agreement.

Global Economy Shows Signs of Regained Footing – Wall Street Journal

Growth steadies as prospects rise in US and China; Europe remains a weak spot.

China’s Central Bank and the Fed Look More Alike – Bloomberg 

The big economies are on the same monetary page, and independence doesn’t account for everything. 

Mexico, US Seek to Dispel Tension Over Labour Tweak to Trade Deal – Reuters

The US and Mexican governments sought to defuse a controversy over Washington’s plan to monitor Mexican labour standards under a new regional trade deal, with Mexico saying it was satisfied by US assurances it was not sending inspectors.

Japan Widens Lead on China as Top Foreign Treasuries Holder – Bloomberg

Japan widened its lead over China as the largest foreign owner of US Treasuries as its holdings rebounded to the second-highest level since 2015, while China’s stake was little changed.

Longest Hong Kong Dollar Rally in Eight Years is Burning Shorts – Bloomberg

Hong Kong dollar bears are abandoning bets the currency will weaken, squeezed by the longest streak of gains in more than eight years.

Regulatory News

Asian Financial Firms Face ‘Benchmark-aggedon’ as Tough EU Rules Near – Reuters

Banks and asset managers that use Asian benchmarks like the Hang Seng or Nikkei indices face a “perfect storm”, with two major regulatory changes slated to take effect the same day, a financial industry group said.

Fed Averts Another Bout of Repo Turmoil Despite Cash Squeeze – Financial Times

The Federal Reserve has cleared the first big hurdle in its attempts to keep a lid on short-term borrowing costs in what traders have been concerned could be a turbulent end to the year.

Banks Have Learnt Their Lesson on Risk Management – Financial Times

In October, US banking agencies loosened restrictions on large banks that had been put in place after the 2008 financial crisis.

Leaked Email Reveals New Assault on CCP Open Access Rules – Risk

The European People’s Party, a centre-right faction in the European Parliament, has requested a 24-month delay to an obligation requiring trading venues to allow listed derivatives traders the freedom of choice of where to clear their trades.

Crypto News

Bitcoin Extends Tumble, Falls Below $7,000 to Lowest Since May – Bloomberg

Bitcoin dropped below $7,000 for the first time since November, with the sell-off pushing the cryptocurrency to its lowest level since May.

When is a Blockchain Startup Not a Blockchain Startup? – Financial Times

It’s awkward when you set up a business around a technology that you reckon is going to disrupt global finance so you name your business after said technology, send your CEO on speaking tours to evangelise about said technology, but then decide that said technology isn’t going to do anything useful for you, isn’t it?

Prominent Crypto Researcher Thinks Ethereum Will Struggle in 2020 – NewsBTC

Ethereum has just slumped to a nine-month low, wiping out virtually all gains it has made this year. The move has been part of a market wide decline catalyzed by Bitcoin’s drop below $7k. Many are not convinced that ETH prices will recover at any time soon, and here is why.

Chinese Crypto Scam Unwind Suggests Bitcoin Risks Extending Drop – Bloomberg

Bitcoin may have a tough time getting out from under the fallout from one of the biggest cryptocurrency scams ever, according to researcher Chainalysis Inc.

New Players are Reshaping Crypto Market Structure, and That’s Bad News for Exchanges – The Block Crypto

The structure of the cryptocurrency market is changing in a big way – and exchanges might come out as the losers.

Company News

CLS Data Confirms November Slowdown – Profit & Loss

The average daily volume of FX trades submitted to CLS in November was $1.61 trillion, down 10% compared to October and down 4.2% year-on-year.

Deutsche Bank Lost the Head of FX Sales it Hired from Goldman Sachs in July – eFinancial Careers

That was quick. Ernesto Mercadante, the ex-Goldman Sachs executive hired by Deutsche Bank to run FX sales in Europe in July has left again.

ACI Updates Exam Suite – Profit & Loss

ACI – The Financial Markets Association has announced it will be updating its examination suite with all new syllabi.

Stricken Local Banks in Japan Buying Riskier Debt to Survive – Bloomberg 

Struggling to revive profits as low yields persist, a handful of troubled Japanese regional banks are wading deeper into riskier credits such as near-junk rated overseas bonds, according to a Bloomberg survey.

Goldman Unveils Blackstone-Like Investments Group – Financial Times

Goldman Sachs has unveiled a Blackstone-like alternative investments group, previewing a key element of the strategic plan to be presented at the company’s much-anticipated investor day next month. 

Market Savvy

BOJ’s Next Move to Dial Back Stimulus – Reuters

The Bank of Japan’s next move will be to dial back its massive stimulus, according to an increasing number of analysts polled by Reuters, reflecting receding market expectations of imminent monetary easing by the central bank.

A Tough Year for Emerging Markets Ends with Money in the Bank – Bloomberg 

Emerging markets are about to end a turbulent year in which US-China trade tensions dominated headlines and central banks around the world came to rescue the global economy from falling into a recession.

Trade War and Strong Dollar Threaten Asia’s Oil Security in 2020 – Nikkei Asian Review

Although crude oil prices were a tenth lower in 2019 than the year before, largely thanks to the U.S.-China trade war, Asian economies, with their fast growth in consumption and price-sensitive consumers, cannot afford to be complacent in 2020.

RBA to Review Outlook in February, Monitoring Earlier Cuts – Bloomberg

Australia’s central bank headed into the holiday period with a pledge to reassess the economic outlook at its first meeting next year as it monitors how three prior interest-rate cuts are impacting the economy.