Markets on Tenterhooks as US Recession Signs Build – Reuters

A wake-up call from the US heartland has spooked Wall Street by raising fears of a recession that will push markets into a correction.

PM Johnson Makes Final Brexit Offer, Draws Guarded Welcome from EU – Reuters

British Prime Minister Boris Johnson made a final Brexit offer to the European Union, pitching a possible compromise for a last-minute exit deal that was cautiously welcomed by the EU though the two sides still remain far apart.

US Widens Trade War with Tariffs on European Planes, Cheese, Whisky to Punish Subsidies – Reuters

The United States said it would slap 10% tariffs on European-made Airbus planes and 25% duties on French wine, Scotch and Irish whiskies, and cheese from across the continent as punishment for illegal EU aircraft subsidies.

Calls Grow for Hong Kong Curfew, Face Mask Ban as Tensions Rise – Bloomberg

Hong Kong police groups are urging the city to impose curfews and invoke other powers under a controversial colonial era-emergency law, as Chief Executive Carrie Lam struggles to control escalating unrest.

Slowing US Private Hiring Adds to Gloom Over Economy – Reuters

Hiring by US private employers slowed further in September, suggesting that trade tensions, which have pressured manufacturing, could be spilling over to the labour market.

BOJ’s Funo Warns on Overseas Risks, Signals Readiness to Respond – Reuters

Bank of Japan board member Yukitoshi Funo on Thursday warned against heightening downside risks from a persistent slowdown in the global economy, signalling the bank’s readiness to respond to prevent risks from materialising.

Saudi Arabia says it has Fully Restored Oil Output After Attacks – Reuters

Saudi Arabia has fully restored oil output after attacks on its facilities last month and is now focusing on the listing of its energy giant Saudi Aramco, energy minister Prince Abdulaziz bin Salman said.

Europe’s Biggest Insurer Lambasts ECB Over Rates – Financial Times

Europe’s top insurance boss has launched a blistering attack on Mario Draghi and the European Central Bank over the “politicisation” of monetary policy in the region.

Is the FX Market Pushing Back on Fragmentation? – Profit & Loss

There is a sense that FX market participants have had enough regarding fragmentation of liquidity, LPs have long had an issue with it, but now it seems the buy side is joining in.

Regulatory News

CFTC Fines BGC, GFI $25m for e-FX Options Fraud – Profit & Loss

The US Commodity Futures Trading Commission has fined BGC Financial and GFI Securities a combined total of $25 million for making false representations regarding the execution of FX options contracts.

New IMF Leader Must Smash the System that Gave Her the Job if She Wants to Truly Help the World – South China Morning Post

Kristalina Georgieva has all the qualifications in both finance and politics to be an excellent IMF managing director. Nonetheless, her defining task will be reforming the opaque, inadequate system through which she was appointed.

ECB Launches New Lending Benchmark Based on Overnight Deals – Financial Times

Global authorities’ efforts to move capital markets on to a sounder base took a step forward after European authorities launched a new benchmark based on overnight deals.

Libor Transition: Surge Pricing – Euromoney
It was just what the regulators didn’t want: another surge in Sofr just as the timetable for transition away from US dollar Libor enters its critical phase.

A Behavioural Lens Could Help Manage Human Risk – Risk

Human decision-making needs careful watching. For that, behavioural science can help.

Crypto News

Trading Volume for Bakkt’s Bitcoin Futures Hit Just $5 Million in First Week – Coin Desk

The Intercontinental Exchange’s highly anticipated bitcoin futures contract mustered just $5 million of total trading – and its daily product traded fewer than five contracts across its first week.

US Congressmen Ask Fed to Consider Developing ‘National Digital Currency’ – Coin Desk

Two US lawmakers want the Federal Reserve to consider creating a digital dollar.

Leading Japanese Firms Form Security Token Offering Association – Coin Telegraph

Leading Japanese companies are forming a regulatory association for security token offerings.

Global Currency Organization Launching Revenue-Sharing Stablecoin USDD – Crypto Globe

A team of former employees from JPMorgan, Intel and TrustToken have announced the launch of USD Digital (USDD), a new dollar-backed stablecoin that will offer revenue sharing for institutions. 

Analysis of Trading Fees Across Cryptocurrency Exchanges – The Block

The majority of cryptocurrency exchanges’ revenues comes from trading fees. As the market continues to be quite saturated, exchanges fiercely compete to capture the largest market share.

Company News

Ramchandani Files $112m Lawsuit Against Citi for Malicious Prosecution – Profit & Loss

Rohan Ramchandani, who was acquitted of FX market manipulation by a jury in New York last year, has filed a lawsuit against his former employer, Citi, alleging “malicious prosecution” by the bank against him and seeking $112 million in damages.

Credit Suisse Chief Faces Spy Scandal Aftermath Without Trusted Adviser – Wall Street Journal

Tidjane Thiam leans heavily on a close inner circle to enforce and execute strategy at Switzerland’s second-biggest bank, now two are gone.

E*Trade Joins Rivals by Ending Commissions in Race to the Bottom – Bloomberg

E*Trade Financial Corp. cut trading commissions to zero, joining major rivals in the race to the bottom and setting the stage for mergers among discount brokerages.

How Virtu Trained its Intelligent Algos – Risk

Firm has sought to meld traders’ instincts with insights from ‘massive scale’ data.

Market Savvy

Brace for a Sequel to Last Year’s Rocky Final Quarter – Financial Times

History may not repeat itself, but it often rhymes. As we enter the final quarter of 2019, it might be time for investors to steel themselves for the risk of a sequel to the market chaos witnessed late last year.

Why China’s Outbound Investments are Still the Face of Globalisation – South China Morning Post

At first glance, China’s declining outbound investment appears to confirm the seeming retreat from globalisation. Yet, while M&A has declined in Europe and the US, look to its activity closer to home for a glimpse of the future.

Actually, the Stock Market Has Barely Moved the Last Two Years Under Trump – Bloomberg

It’s like a gravitational field the S&P 500 can’t get free from, the place to which all rallies must return. And it was back in force Wednesday, eliciting angry notice from President Donald Trump as waves of selling dragged the benchmark within points of where it stood 21 months ago.

How the Federal Reserve Could Fix the Repo Market – Financial Times

The Federal Reserve is facing urgent calls to find a permanent fix to short-term funding strains that unsettled markets last month, and avoid another bout of volatility at the end of the year when the demand for cash is expected to rise again.

Australia’s Trade Surplus Misses Expectations on Lower Iron Ore Price – Australian Financial Review

Australia’s monthly trade surplus has dipped back to $5.9 billion in August after hitting a record $8 billion in June, mainly due to a reduction in iron ore, coal and rural exports.