Oil Jumps Most on Record After Attack Cuts Saudi Arabian Supply – Bloomberg
Oil posted its biggest ever intraday jump to more than $71 a barrel after a strike on a Saudi Arabian oil facility removed about 5% of global supplies, an attack the U.S. has blamed on Iran.
- Attack on Saudi Leaves World Without Spare Oil Capacity – Reuters
- Saudi Arabia Aims to Restore a Third of Lost Oil Output Monday – Wall Street Journal
- Saudi Attack Likely Originated in Iran or Iraq, Senior US Official Says – CNN
Trump Poised to Hit EU with Billions in Tariffs After Victory in Airbus Case – Politico
The United States has gotten the green light to impose billions of euros in punitive tariffs on EU products in retaliation for illegal subsidies granted to European aerospace giant Airbus, after four EU officials said that the World Trade Organization ruled in favour of the US in the long-running transatlantic dispute and sent its confidential decision to Brussels and Washington on Friday.
Strong Dollar Prompts Speculation of Trump Intervention – Wall Street Journal
For decades, US currency policy was to, in effect, have no policy. Administrations seldom intervened in markets, advised other countries to do the same and claimed a strong dollar was in the country’s interest.
Trade War Enters the End Game – Australian Financial Review
The hard heads in Washington and Beijing have recognised that trade war is a disastrous path, but there are five steps needed to secure a deal by November.
Industrial production, which measures industrial output grew at 4.4 per cent last month, down from 4.8 per cent in July and the lowest growth since February 2002, while retail sales, a key metric of consumption in the world’s most populous nation, grew by 7.5 per cent, below analysts’ forecasts.
Lagarde Faces Call for Lower ECB Inflation Goal in Policy Review –Bloomberg
When Christine Lagarde conducts a rethink of the European Central Bank’s policies and tools during her impending presidency, her new Austrian colleague will be keen to contribute.
Brexit: UK will Reject Any Delay Offer, PM to Tell Juncker – BBC
The UK is not prepared to postpone Brexit beyond the current 31 October deadline, Boris Johnson is to tell European Commission President Jean-Claude Juncker at talks on Monday.
- Johnson Set to Defy Ban on No-Deal Brexit and Fight On in Court – Bloomberg
- Brexit Secretary Raises Possibility of Standstill Transition Deal – Financial Times
Street Fights Between Rival Groups Erupt in Hong Kong – South China Morning Post
A 49-year-old man was seriously injured after being attacked by anti-government protesters in Wan Chai, as street fights between opposing groups erupted in various parts of Hong Kong on Sunday, following violent clashes between police and protesters.
In the FICC of It (Podcast) – Profit & Loss
The Mark Johnson conviction, algo usage amongst buy side firms and what seems to be a failed bid for LSEG by HKEX are all on the agenda for this week’s podcast.
Regulatory News
The failure of former HSBC head of cash FX trading Mark Johnson to overturn his conviction in a US court has severe implications for the foreign exchange industry – including an “Armageddon” scenario.
Tullett Fined $13 Million in US for Faking Trades – Profit & Loss
The US Commodity Futures Trading Commission has issued two orders filing and settling charges against inter-dealer broker Tullett Prebon Americas requiring the firm to pay a total of $13 million for failing to supervise employees and making false or misleading statements to CFTC staff.
StanChart Couldn’t Tell Regulator How Some Rich Clients Got Rich –Bloomberg
Standard Chartered, fined billions of dollars since 2012 for regulatory violations, has discovered that it cannot explain how some of its wealthiest clients acquired their fortunes and is reviewing thousands of customer accounts at its private bank.
Esma Hits Back at FCA’s Criticism of Fund Rules – Financial Times
One of Europe’s top financial regulators has rebuffed criticism suggesting that design flaws in European regulations contributed to the meltdown at the flagship investment fund run by Neil Woodford.
Crypto News
Deutsche Bank Joins JPMorgan-Led Blockchain Network – Financial Times
Deutsche Bank has signed up to the financial services industry’s biggest blockchain project, in a move that will lower costs at the German bank and give global heft to a system created to speed up cross-border payments.
Bitcoin Mining Power Hits New High as Half a Million New ASICs Go Online – Coin Desk
The computing power dedicated to mining bitcoin has hit yet another new high, suggesting that more than 600,000 powerful new machines may have come online in the last three months.
XRP Fork Unlikely to Succeed, Ripple Continues to Face Angry Investors – Coin Telegraph
The threat of an XRP fork is looming over Ripple, the San Francisco-headquartered start-up behind the third-largest asset on the cryptocurrency market.
Central Banks to Grill Facebook Over Libra – Financial Times
Regulators will question representatives of digital currency over threat to financial stability.
Central Bank Digital Currency – Financial System Implications and Control – Research Gate
IT progress and its application to the financial industry have inspired central banks and academics to reflect about the merits of central bank digital currencies accessible to the broad public.
Company News
HKEX to Bolster Efforts to Acquire LSE with Appeal to Shareholders – Financial Times
Asian exchange to launch three-week charm offensive to persuade board to soften stance.
Have Asset Managers Put Enough Money Aside to Deal with a Crisis? – Financial Times
In the wake of liquidity issues at GAM and H20, rival groups are grappling with how they would cope.
Four in 10 City Companies Not Ready for a No-Deal Brexit: Survey –Financial News
Four in 10 City companies have not made sufficient preparation for a potential no-deal Brexit in seven weeks’ time, and say their contingency plans are still a “work in progress”, a survey of Square Mile leaders has found.
Ex-Deutsche Bank CEO Cryan to Chair Man Group from January – Reuters
British hedge fund Man Group said on Monday that the former Deutsche Bank chief executive John Cryan has been appointed chairman and will start his new role in January 2020, replacing Ian Livingston.
Market Savvy
Junk Debt Sends Early Warning Signals – Wall Street Journal
Warning signals are starting to flash in the market for junk debt, an indicator that investors are worried that companies with high debt loads could be at risk even if the US economy avoids recession.
Fed Trades ‘Remarkably Positive’ for ‘No Precedents’ After Volatile Year – Reuters
A year ago, US Federal Reserve Chair Jerome Powell held a “remarkably positive outlook” for an economy enjoying a “historically rare” combination of good news including low unemployment, steady inflation and strong growth that were all expected to continue.
UK Employers Cut Growth Forecasts as Brexit, Global Slowdown Weigh – Reuters
The British Chambers of Commerce cut its forecast for economic growth this year and 2020 on Monday, blaming a slower global economy, US-China trade tensions and the persistent drag from Brexit.
Emerging-Market Rally May Hinge on Stimulus. Just Not Too Much – Bloomberg
Emerging markets will again be looking to central banks to provide the next leg-up in a rally that’s making it the best September so far for stocks and currencies since 2013.
Ultralow Long Rates Pose Challenge for Bank of Japan Policy – Nikkei Asian Review
The Bank of Japan’s policy board meets again next Wednesday and Thursday against the backdrop of economic uncertainty that has driven long-term interest rates far below its target, worsening the side effects of its easing framework.