Mexico’s Central Bank Cuts Rates for First Time in 5 Years as Economy Sputters – Reuters

Mexico’s central bank cut its key lending rate for the first time since June 2014, citing slowing inflation and increasing slack in the economy, and fueling expectations that further monetary policy easing could be on the way.

Trump Frets Over a Possible Downturn – Australian Financial Review

Mounting signs of global economic distress this week have alarmed President Donald Trump, who is worried that a downturn could imperil his re-election, even as administration officials acknowledge that they have not planned for a possible recession.

Powell Expected to Seek Another Cut Despite Strong Spending – Bloomberg

The US data pouring in supports Federal Reserve Chairman Jerome Powell’s forecast of solid economic growth and higher inflation. Still, economists remain confident that Powell will cut interest rates again next month as insurance against a global slowdown.

Japan Yields Slide to Three-Year Low, Shrug BOJ’s Control Bid – Bloomberg

Japan’s 10-year bond yield slipped to the lowest since July 2016, shrugging off an attempt by the central bank to stem its decline amid a global debt rally. New Zealand’s benchmark rate also fell to a new low.

Japan Overtakes China as the Biggest Creditor to the US – South China Morning Post

Japan surpassed China in June as the top holder of US Treasuries as the trade war between the world’s two largest economies intensified.

ECB Has Big Bazooka Primed for September, Top Official Says – Wall Street Journal

The central bank is preparing a ‘very strong package’ of stimulus measures to support the flagging eurozone economy.

Negative Yields Force Investors to Plunge into Riskier Debt – Financial Times

Feeble returns from safer bonds steer funds into longer, shakier instruments.

Regulatory News

State Street, UBS and TD Group Incur VAR Breaches – Risk

State Street and the US units of TD Group and UBS all reported value-at-risk backtesting exceptions in Q2, as a result of larger-than-expected trading losses.

Esma Proposal May Limit Short-Selling – Risk

Reporting requirement would bar securities without LEIs from being used in financing transactions.

CFTC Commissioners Call for Voice in Settlement Cases – FOW

Berkovitz, Behnam highlight “unusual features” about $16 million penalty imposed on Kraft Food without “evidence”.

APRA Loses its Head of Policy – Australian Financial Review

The Australian Prudential Regulation Authority is looking for a new head of policy and advice, following the resignation this week of Pat Brennan, who had responsibility for developing the regulator’s policies on banks, insurers and super funds.

Crypto News

Bitcoin Drop Not Likely Triggered by Scam Dump, Researcher Says – Bloomberg

The liquidation of cryptocurrencies tied to an alleged ponzi scheme has been among the assorted reasons cited by market pundits for this week’s slide in digital assets. A closer looks suggests that may not be the case.

Crypto Exchange Coinbase Acquires Xapo’s Institutional Custody Business – Coin Desk

Cryptocurrency exchange Coinbase has acquired the institutional business of cryptocurrency wallet and custody service provider Xapo.

Crypto Exchange Poloniex to Delist 23 Trading Pairs Due to Low Volume – Coin Telegraph

San Francisco-based cryptocurrency exchange Poloniex is going to remove 23 trading pairs ostensibly due to low volume.

IRS Sends Second Round Tax Warnings to Cryptocurrency Investors – Bloomberg

Some cryptocurrency investors are receiving a new round of letters from the Internal Revenue Service telling them that their federal tax returns don’t match the information received from virtual currency exchanges, a new front in the agency’s burgeoning scrutiny of the industry.

Company News

Banks ‘Will Have Just Hours’ to Carry Out Brexit Changeover – The Times

Britain’s banks have warned the government that they will have just hours to turn around their systems if the UK crashes out of the European Union without a deal on October 31, potentially creating chaos.

US Bond Funds Swell as Investors Seek Safety – Financial Times

Investors have flocked to US bond funds at the fastest clip in two months as volatile trading and a deteriorating growth outlook nudge investors into safer assets.

Data Errors Plague Wall Street Traders in a Volatile Week – Financial News

Volatile markets, recession fears and the US-China trade fight have traders on edge. Now, they are grappling with another problem: garbled data.

Samantha Roady Set to Leave GAIN Capital – Finance Magnates

A founding partner at the broker, Roady has been president of retail business for the past three years.

Market Savvy

The Bond Market is Flashing a Recession Warning, But That’s No Cause for Alarm Yet – South China Morning Post

Historically, a yield curve inversion precedes a recession. However, following an era of easy money, an inversion might simply signal that markets are expecting loose monetary policy again.

Norway’s Central Bank Set to Decide on Policy Path Amid Oil Drop – Financial Times

As oil prices and the krone slide, traders watch rate decision of outlier Norges Bank.

‘Crazy Inverted Yield Curve’ Vexes Fed, with No Clear Resolution –Reuters

Do US central bankers care about what Trump called the “crazy inverted yield curve” or not?

How AI Will Change the Way You Manage Your Money – Financial Times

Data science is increasingly being used to compare products, find deals and give tailored guidance.

FXPA globalFXsource will be taking a hiatus August 19-23.