London Stock Exchange Poised to Reject £32bn Hong Kong Bid – Financial Times

The Hong Kong bourse’s audacious £32bn bid for the London Stock Exchange faces rejection amid doubts about political risk and deal structure, according to people briefed on the offer.

Trump Delays China Tariff Increase as Trade Talks Approach – Bloomberg

President Donald Trump said he was postponing the imposition of 5% extra tariffs on Chinese goods by two weeks, a move that delays the next escalation of the trade war and brightens the backdrop for upcoming negotiations.

UK’s Worst-Case No-Deal Brexit Plan Warns of Food Shortages, Public Disorder – Reuters

The British government’s plans for a no-deal Brexit warn of severe disruption to cross-Channel routes, affecting the supply of medicines and certain types of fresh foods, and say that protests and counter-protests will take place across the country, accompanied by a possible rise in public disorder.

Trump Says Fed Should Cut Rates to ‘Zero, or Less,’ Attacks Jerome Powell Again – Wall Street Journal

President Trump renewed his call for lower interest rates and his criticism of the Federal Reserve on Wednesday, by pressing for the central bank to cut short-term rates to “ZERO, or less,” negative rates that the U.S. avoided even after the 2008 financial crisis.

ECB Braced for Debate Over New Stimulus Measures – Financial Times

What to watch for at Thursday’s governing council meeting as Draghi pushes for action.

The Blame Game Over Argentina Starts All Over Again – Australian Financial Review

Argentina has fallen back into crisis for the simple reason that not enough has changed since the last debacle.

RBA Eyes Six QE Options – Australian Financial Review

The Reserve Bank of Australia says not all types of unconventional monetary stimulus tools used overseas – such as extending cheap funding to commercial banks – would be called on in Australia because there is no “severe financial market dislocation”.

Italy’s Conte Asks Brussels for ‘Bit of Time’ on Debt – Financial Times

Italy’s prime minister has called on Brussels to allow Rome “a little bit of time” to cut its debt by investing in economic growth, in his first meeting with the incoming president of the European Commission.

Regulatory News

How Well Are Your Algos and Liquidity Used by Clients? (opinion) – Profit & Loss
As an industry, we have to face up to the reality that some clients abuse liquidity and algo services and actually do something about it. 

Chile Sees Peso Joining Heavyweight CLS FX System in 2021 – Central Bank Chief – Reuters

Chile’s central bank expects the country’s peso currency to be added to the heavyweight global CLS foreign exchange settlement system by 2021, its governor Mario Marcel said on Wednesday.

Female Banker Wins Gender Bias Case Against BNP Paribas – The Guardian

Stacey Macken, who worked in the bank’s prime brokerage unit, sued the London office of BNP Paribas for £4m on the basis of unequal pay, claiming she was discriminated against due to her gender and paid significantly less than a male co-worker with the same job title. She also claimed she faced harassment.

Japanese Banks OK’d to Announce $71M Libor Settlements – Law360

A Manhattan Federal judge has granted preliminary approval to a $71 million settlement involving eight Japanese banks over Libor manipulation.

What Was Behind the Hong Kong Market Rise Ahead of Withdrawal of the Extradition Bill? – South China Morning Post

Many hours before Carrie Lam appeared on TV, and well before reports that the bill’s withdrawal was imminent, the Hang Seng Index had begun to rise. Did anyone trade on the information before the mainstream press reported it?

Libor Takes a Back Seat as Insurers Await Regulatory Clarity – Risk

The looming, not-quite-certain death of Libor exposes investors to multiple risks, but UK insurers face a unique challenge.

Crypto News

Swiss Welcome Scrutiny in Handling Libra Cryptocurrency: Watchdog – Reuters

Switzerland welcomes international scrutiny of the way it oversees the Facebook-led Libra cryptocurrency project and is ready to work with other countries to ensure seamless supervision, the top Swiss financial watchdog said.

Don’t Bet on Decentralised Exchanges Becoming the New Crypto Frontier – Financial Times

After much self denial, the hypocrisies of the crypto world are finally dawning on even the sector’s greatest delusionists. They’re that obvious.

Facebook’s Crypto Plan Called ‘Delusional’ as Senate Digs In – Bloomberg

Republican and Democratic Senators sharply questioned Facebook’s plan to create its own digital money, adding to a chorus of scepticism across Washington and underscoring the challenges the company faces in getting its cryptocurrency off the ground.

New Study Reveals Countries with Most Registered Crypto Exchanges – Coin Telegraph

The United Kingdom, the United States, Hong Kong and Singapore have the largest number of registered digital currency exchanges, according to data from Bitfury’s blockchain analytics platform Crystal.

PwC Report Shows Major Growth in Crypto M&A in Asia and Europe – Coin Desk

A majority of fundraising and M&A deals in the cryptocurrency industry are now happening in Asia and Europe, surpassing the previously dominant role of the Americas, according to a new report from PwC.

Company News

HKEX Bids £31.6bn for LSEG – Profit & Loss

Hong Kong Exchanges and Clearing has made a proposal to the board of the London Stock Exchange Group to combine the two companies in a deal worth £31.6 billion.

BNP Paribas Unveil Digital Trading Assistant ALiX – Profit & Loss

BNP Paribas has formally unveiled ALiX, a digital trading assistant, as part of its upgraded Cortex Live single dealer platform.

Global Drop in Currencies Bruises Investors – Wall Street Journal

Currencies around the world are tumbling to multiyear lows, bruising investors’ portfolios and fanning the flames of a global trade war.

Market Savvy

More Easing Will Make the World Weaker Rather than Stronger – Financial Times

Cutting interest rates from already very low levels is likely to suppress demand.

Not So Fast – Central Banks Push Back Against Markets Greedy for Stimulus – Reuters

High on hopes of never-ending central bank stimulus and desperate for clarity on the size and timing of their next fix, financial markets look like they are being walked back from the more aggressive bets by officials wary of excessive exuberance.

Yen’s Near-Record Period of Calm Masks Pent-Up Pressures – Financial Times

The yen’s long slumber continues. At about ¥107.3 against the dollar on Tuesday, little changed on the day, the currency was as placid as it has been for much of the past year. Volatility in the yen, judged by swings over the past 260 trading days, touched its lowest level in more than 40 years at the end of May, and has risen just a little since then. But still waters run deep.

Higher Risk of Recession in Germany: IMK Institute – Reuters

There is an almost 60% chance that the German economy could fall into recession, according to a monthly index gauging the health of Europe’s largest economy published on Thursday by the Macroeconomic Policy Institute.

Swiss Bank Group Lambasts Negative Rates for Damaging the Economy – Bloomberg

The Swiss Bankers Association criticized the central bank’s policy of negative rates, saying it was causing “massive structural damage” to the economy.