Moody’s Says Tide of Populism is Putting World’s Credit at Risk – Bloomberg

A wave of social unrest — from Chile and Ecuador to Lebanon – has Moody’s Investors Service worried. The rating company said its 2020 outlook for global sovereign credit is negative, given unpredictable domestic and geopolitical risks and a push for populist policies that weaken institutions, help slow growth and boost the risk of economic and financial shocks. 

Morales’ Exit Leaves Bolivia Power Vacuum, Splits Region – Reuters

Looting and roadblocks convulsed Bolivia on Monday after President Evo Morales’ resignation after a disputed election ended 14 years of socialist rule and left a power vacuum his opponents scrambled to fill.

U.S. Condemns Latest Hong Kong Violence, Urges Both Sides to De-Escalate – Reuters

The United States on Monday condemned “unjustified use of deadly force” in the latest Hong Kong violence and urged police and civilians alike to de-escalate the situation, a senior Trump administration official said.

China’s Futures Trade Up About 37 pct in First 10 Months – Xinhua News Agency

China’s trading of futures climbed 37.38 percent in the first 10 months from a year earlier to 235.43 trillion yuan (33.66 trillion U.S. dollars), according to the China Futures Association.

Is the Future Digital? – Profit & Loss

Analysing whether or not the future will be digital seems obvious – the world is increasingly, and quickly, turning to digital forms of money and new forms of technology to address a wide range of areas in traditional finance. But how far will this transformation go, and which types of firms will take us along the path?

Have Exchange Acquisitions in FX Actually Worked? – Profit & Loss

Thus far, some of the acquisitions of OTC FX platforms by exchange groups have not proven to be as fruitful as previously imagined, argues David Mercer, CEO of LMAX Exchange Group. 

World’s Rich Readying for Major Stock Sell-Off, UBS Wealth Says – Bloomberg

Wealthy people around the globe are hunkering down for a potentially turbulent 2020, according to UBS Global Wealth Management. A majority of rich investors expect a significant drop in markets before the end of next year, and 25% of their average assets are currently in cash, according to a survey of more than 3,400 global respondents. 

Regulatory News

ESMA Advises EC on the Supervisory Regime for Third-Country CCPs

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published three sets of technical advice to the European Commission (EC) regarding third-country central counterparties (TC-CCPs) under the revised European Market Infrastructure Regulation (EMIR 2.2). 

Germany Calls on EU to Tighten Grip on Big Tech – Financial Times

Germany has urged the EU to toughen its approach to Big Tech, as part of a wider push by Berlin to boost Europe’s “digital sovereignty”.

Boston Fed President Warns Central Banks Have Limited Tool Kits – Wall Street Journal

Boston Fed leader Eric Rosengren warned on Monday many top central banks have a limited tool kit to deal with the next downturn, and added efforts to rollback regulations on banks may be exacerbating risks to the financial sector.

Ageing Infrastructure Creating Derivatives Market Inefficiencies: ISDA Chief – Regulation Asia

Technology has not yet made a real, fundamental difference to how derivatives transactions are managed, according to ISDA chief Scott O’Malia.

Crypto News

Central Bank Group BIS Taps Benoit Cœuré to Lead Digital Currency Push – Financial Times

Benoît Cœuré has been picked to head a new unit of the Bank for International Settlements (BIS) charged with producing public alternatives to private digital currency initiatives such as Facebook’s Libra coin.

MAS, JPMorgan Build Payments System with Inter-Blockchain Connectivity – CoinDesk

The Monetary Authority of Singapore (MAS), the city-state’s central bank, has completed development of a blockchain-based cross border payments system that can support a range of currencies.

Bakkt Officially Dives into Crowded Crypto Custody Market After NYDFS Blessing – The Block

Bakkt, the cryptocurrency venture backed by Intercontinental Exchange, announced Monday the launch of its institutional custody business. 

Binance Adds Support for Euro, Bringing the Total to 5 Currencies for its Direct Fiat-to-Crypto Trading Facility – The Block

Cryptocurrency exchange Binance has added support for euro (EUR) for its direct fiat-to-crypto trading facility, according to an announcement Friday.

Swiss Crypto Bank SEBA Goes Live After FINMA Greenlight – The Block

Switzerland-based cryptocurrency bank SEBA is now fully operational.

Canada’s Biggest Bank Exploring to Launch Cryptocurrency Trading Platform – The Block

The Royal Bank of Canada (RBC), the country’s largest bank with over $965 billion in total assets, could launch a cryptocurrency trading platform.

Company News

Credit Suisse Names David Miller Head of Investment Banking – Financial Times

Credit Suisse has named David Miller the new head of its investment banking and capital markets business, replacing James Amine after four years in charge, as the lender looks to improve performance at the division.

Deutsche Bank Tech Failings Hit Thousands of Payments – Financial Times

Deutsche Bank has been forced to admit to regulators its role in the UK payment system still suffers serious problems, years after it was first placed in remediation, which has led to tens of thousands of transactions for clients such as Amazon being held up.

Market Savvy

Pound Jumps After Brexit Party Pledges Not to Contest Tory Seats – Financial TimesThe pound sprang higher on Monday, after the Brexit party said it would not contest Conservative seats in the upcoming election, but analysts said the lingering chance of a hung parliament and indecision over the terms of divorce from the EU would limit the currency’s rally.

London Races Farther Ahead as Renminbi Trading Hub – Financial TimesLondon is stretching away from its rivals as the world’s biggest centre for trading the renminbi outside China, easing fears that the impact of Brexit could threaten its status as the world’s dominant foreign-exchange hub.

Trade Uncertainty Pushes Down S&P 500, Nasdaq – Reuters

The S&P 500 and Nasdaq stock indexes fell from record highs on Monday as uncertainty about progress in the U.S.-China trade talks again rose to the fore following comments by President Donald Trump, while a jump in Boeing Co shares helped keep the Dow Jones Industrial Average little changed.