Top Headlines

Johnson Will Ditch Brexit Bill in Last Bid for Early General Election – The Times

Boris Johnson will make one last effort today to send Britain to the polls before Christmas but could be thwarted by a squabble over the exact election date.

Trump: ‘Ahead of Schedule’ on China Trade Deal – Reuters

US President Donald Trump said he expected to sign a significant part of the trade deal with China ahead of schedule but did not elaborate on the timing.

Draghi Leaves Lagarde to Heal Rift at European Central Bank – Reuters

Mario Draghi will leave a more united euro zone when he steps down as president of the European Central Bank this week, but he hands over a body more publicly divided than ever on how best to resurrect an ailing regional economy.

China Is Considering Replacing Hong Kong’s Lam, Pro-Beijing Lawmaker Says – Bloomberg

The Chinese government is considering a plan to replace Hong Kong’s Carrie Lam as chief executive, pro-establishment lawmaker Michael Tien said, in a potential strategy shift by Beijing as pro-democracy demonstrations continue to rock the Asian financial centre.

Global Investment Plunges as Trade Disputes Take Toll – Financial Times

Global foreign direct investment contracted sharply in the first half of this year as trade tensions between the US, Europe and China weighed on the world economy.

RBA Prepared to Ease Further, Negative Rates Unlikely, Lowe Says – Bloomberg

Australian central bank chief Philip Lowe reiterated that he’s prepared to ease policy further if needed, but again pushed back against the idea of interest rates turning negative in his economy.

The Always Exhilarating, Sometimes Lucrative Lives of Brexit Currency Traders – Bloomberg

Riding along with two FX traders as they bet on a slow-motion car wreck.

Taming Argentina’s Economy: The Team with Daunting Task – Financial Times

Argentina’s president-elect Alberto Fernández has named a transition team of economic advisers charged with turning around the country’s dire economic problems as it teeters on the brink of its ninth sovereign debt default.

Regulatory News

CFTC Announces New GMAC Subcommittee on Margin Requirements for Non-Cleared Swaps – CFTC

US Commodity Futures Trading Commission Commissioner Dawn Stump today announced the Commission has voted to establish a Subcommittee on Margin Requirements for Non-Cleared Swaps under the Global Markets Advisory Committee. Commissioner Stump, sponsor of the GMAC, is seeking nominations for membership on the new subcommittee through a request in the Federal Register.

Federal Reserve Proposes Easing Post-Crisis Derivatives Rules for Banks – Reuters

The US Federal Reserve announced it had proposed easier rules for when banks must set aside cash to safeguard derivatives trades between affiliates.

Rubio Vows to Introduce Bill to Stop US Pensions Investing in China – Reuters

Republican senator Marco Rubio said on Monday he plans to introduce legislation to block US government pension funds from investing in Chinese stocks after a fund delayed a decision about tracking an index provided by MSCI Inc. 

FIA Opposes Cboe Speedbumps – FOW

In a letter to the SEC, the trade association warned that ETF hedging and options liquidity providers could be caught in proposed changes.

A Liquid Global Swaps Market Relies on Deference: CFTC’s Quintenz – Regulation Asia

Market fragmentation poses serious risks to the liquidity and health of the derivatives markets, said CFTC commissioner Brian Quintenz at the ISDA Annual Japan Conference.

Crypto News

Blockchain Frenzy That Xi Started Gets Warning from China Media – Bloomberg

China’s state media said investors should avoid speculative behavior after comments by President Xi Jinping sent blockchain-related stocks surging.

Chinese Bitcoin Mining Machine Maker Canaan Files for US IPO – Bloomberg

Canaan Inc., the world’s second-largest maker of Bitcoin mining machines, filed for a U.S. initial public offering.

Ice Plans First Regulated Bitcoin Options – FOW

Ice doubles down on exchange-traded bitcoin derivatives despite subdued trading volumes on Bitcoin futures.

Chinese Official Warns Libra Could Abet Illegal Cross-Border Transfers – Coin Desk

Libra must abide by international foreign exchange regulations or “it should be banned,” a senior Chinese regulator said.

How Bakkt Bitcoin Options Could Change the Crypto Market – Decrypt

Bakkt’s Bitcoin options product has the potential to take crypto maintainsteam, pumping volumes and liquidity in the market. Will it work?

Company News

Nippon Life: Plan to Raise Foreign Bonds Without FX Hedge in Oct-Mar – Reuters

Nippon Life Insurance Co plans to increase its holdings of foreign bonds without currency hedge in the six months through March 2020, senior company officials said on Tuesday.

Hedge Funds Fight for Asia Talent With Bonuses, Training – Bloomberg

In a glass-walled room at Point72 Asset Management LP’s outpost in Hong Kong, five fresh-faced graduates pore over spreadsheets and give tentative answers to questions about cash flow and the cost of capital.

TP ICAP Turns to Refinitiv for Data – Profit & Loss

Refinitiv has signed a multi-year strategic agreement with TP ICAP to support its data needs for both its brokers and technology platforms.

China’s Fund Industry Suffers Slowing Growth – Financial Times

The rapid growth of the Chinese asset management industry has faltered in the past two years as the country’s slowing economy and choppy equity markets cause investors to spurn funds.

Buy Side Builds Bots to Cut Trade Costs – Risk

With margins under pressure, investment firms are looking to accelerate automation push.

Market Savvy

Three-Peat? Fed Copies 1990s Playbook in Bid to Avert a Downturn – Reuters

In the midst of what became a golden decade for the US Federal Reserve, central bankers twice in the 1990s cut interest rates in short bursts that managed to help the US economy continue growing despite slowing investment and weak growth overseas.

China’s Monetary Policy Is Being Hamstrung By Inflation Surge – Bloomberg

China’s room to ease monetary policy to aid the slowing economy is being limited further by price rises due to the ongoing swine fever epidemic.

Will the Fed Signal a Rate Cut Pause and Will the BoJ Ease? – Financial Times

When the Federal Reserve convenes in Washington this week, chairman Jay Powell is widely expected to announce another quarter-point reduction to the central bank’s benchmark rate, the third such move in as many meetings.

China Lifts Yuan Midpoint to Strongest Level in Over 2 Months – Reuters

China’s central bank lifted its official yuan midpoint to the highest level in over two months on Tuesday, reflecting strong gains for the spot yuan a day earlier as Beijing and Washington edged closer to finalizing a first-stage trade agreement.

RBA Could Embark on Unorthodox Policies in February, Citi Says – Bloomberg

The Reserve Bank of Australia could turn to unconventional monetary policy as soon as February following the decision by lenders to only pass on part of the latest interest rate cut, according to Citigroup.