‘Phase One’ US-China Trade Deal May Not Be Completed This Year: Trade Sources – Reuters

Completion of a “phase one” US-China trade deal could slide into next year, trade experts and people close to the White House said, as Beijing presses for more extensive tariff rollbacks, and the Trump administration counters with heightened demands of its own.

How Trump’s Trade War Went from Method to Madness – Bloomberg Businessweek

Inside the president’s shift from a grand bargain with China to a small deal.

Fed Minutes Show Rates on Hold, Little Hurry to Change Course – Reuters

A divided Federal Reserve that decided to hit pause in its easing cycle following a rate cut in October signaled in minutes of last month’s meeting it was in no hurry to reassess the path of interest rates.

White House Handling of US-Japan Trade Deal Angers Democrats – Reuters

House Democrats on Wednesday blasted the Trump administration for not consulting sufficiently with Congress while negotiating a mini trade deal with Japan, failing to provide details about it and refusing to testify at a congressional hearing.

The End of the United Kingdom May Be Nearing – Bloomberg Businessweek

Elections were supposed to settle existential questions over Brexit – instead, they’re raising bigger ones over the nature of the union.

EU’s Tusk to Lead Struggling European Centre-Right Umbrella Group – Reuters

Outgoing European Council President Donald Tusk on Wednesday was elected president of the centre-right European People’s Party, a pan-European umbrella group that has been riven by infighting in recent years.

Lane Says ECB Will Decide to Launch Policy Review Fairly Soon – Bloomberg

The European Central Bank is nearing a decision to launch a review of its policy strategy, chief economist Philip Lane said Wednesday, as officials struggle to boost inflation despite years of massive stimulus.

Japan’s Ruling Bloc Calls for $92 Billion Fiscal Package to Support Growth – Reuters

Japan’s ruling coalition lawmakers have called for an additional budget that would include $92 billion in spending to support slowing growth, party officials said on Thursday, raising worries about straining public finances.

Regulatory News

JPM FX Trader Guilty in Price Fixing Case – Profit & Loss

Former JP Morgan FX trader Akshay Aiyer has been found guilty by a New York jury of price fixing relating to his activities in various Bloomberg chatrooms in which he colluded with other traders to manipulate markets, prices and spreads to clients.

Stablecoins as a Euphemism for Full-Reserve Banking – Financial Times

Everyone has a personal theory of money. And by and large everyone’s theory differs to everyone else’s. Because money is in part philosophical as well as technical, and hence hugely subjective.

Sonia-Libor Basis Narrows After Fallback Verdict – Risk

Isda picks five-year median for spread adjustment, causing benchmark gap to tighten.

MUFG’s New Top Lawyer Seeks to Bolster Ranks as Rules Bite Banks – Bloomberg

The new legal chief at Japan’s biggest bank wants to hire more experienced lawyers as it strives to meet tougher regulatory scrutiny and a changing industry landscape.

Fed Loosens Supplementary Leverage Ratio Rules – FOW

Custodian banks should now exclude qualifying deposits from their supplementary leverage ratio calculations.

Should Algos Be Allowed to Spoof? – Profit & Loss

Best execution means different things to different people, but if the end goal is a fully transparent process that allows a child order to go against the parent, should we be concerned?

Crypto News

As Crypto Rout Deepens, One Technical Gauge Shows Rally Ahead – Bloomberg

Amid a protracted sell-off in cryptocurrencies, at least one technical indicator is painting a brighter picture.

Fidelity Crypto: Busting Some Moves – Financial Times

Fidelity could use its offshoot to get ahead with blockchain technology.

Zero-Commission Trading is Coming to Crypto – Bloomberg

Zero-fee trading first came to exchanged-traded funds and then to online stock and option transactions. Now the strategy is spreading into the cryptocurrency sphere.

Singapore Poised to Allow Crypto Derivatives on Approved Venues – Bloomberg

Singapore’s financial regulator has proposed green-lighting crypto-token derivatives to list and trade on approved domestic exchanges.

Company News

Tradition Brokers First AUD/USD Swap Trade on LCH SwapAgent – Profit & Loss

Tradition has facilitated the first brokered AUD/USD cross-currency swap trade using LCH SwapAgent, a service designed to simplify the processing, margining and settlement of non-cleared derivatives.

Hedge Funds Struggle as Stocks Keep Behaving Like Bonds – Financial Times

Shalin Madan is nervous. After his investment firm Bodhi Tree Asset Management had a tough October, he pored over the market runes. What he saw scared him enough to switch off his automated trading models.

Citi Launches B2B Cross-Border Payments Platform – Profit & Loss

Citi has launched a new cross-border, business-to-business payments platform that aims to “digitise” the transaction process and includes FX capabilities.

Capitolis Secures $40m Investment – Profit & Loss

Capitolis has raised $40 million as it completes its Series B round of funding, which was led by Spark Capital and SVB Capital.

Market Savvy

Fed Shows Little Appetite for Bold Policy Change Sought by Trump – Reuters

As US Federal Reserve officials hone their monetary policy playbook in preparation for the next economic downturn, it appears they will eschew more controversial approaches tried by other global central banks, including one that President Donald Trump has called on the Fed to try.

Fed Throws the Kitchen Sink at Short Rates and Still Struggles – Bloomberg

Two months after the repo meltdown, the central bank is trying to reassert control by pulling all sorts of levers. It has had limited success.

Yen Gains, Yuan Down as Trade Woes, Hong Kong Strife Sap Risk Appetite – Reuters

The yen rose against the dollar on Thursday after sources close to the White House told Reuters that a US-China trade deal is unlikely this year, shattering investor hopes a partial agreement was imminent and spurring demand for safe havens.

China is Out of Economic Ammo Against the US – Bloomberg

It has maxed out tariffs and other trade barriers, and selling Treasuries is ineffective.