Pound Soars as Johnson Scores Landslide British Election Win – Reuters

The pound surged more than 2% on Thursday as Prime Minister Boris Johnson’s Conservative Party won a resounding election victory that markets believe makes an orderly British exit from the European Union all but certain.

Trump Approves US-China Trade Deal to Halt Dec. 15 Tariffs – Bloomberg

President Donald Trump has signed off on a phase-one trade deal with China, averting a Dec 15 introduction of a new wave of US tariffs.

Lagarde Follows Draghi’s Policy Lead but Sounds Upbeat Tone – Financial Times

Christine Lagarde set out her vision for the European Central Bank after her first rate-setting meeting as president, committing to maintain her predecessor Mario Draghi’s ultra-loose policy while sounding a more upbeat economic tone.

‘Boneheads’ No More? Fed’s Rate Cuts Appear to Defuse Trump’s Twitter Rage – Reuters

After three interest rate cuts and a fresh round of record highs for US stock markets, has President Donald Trump lost interest in the Federal Reserve?

Why are Policymakers Hobbling Central Banks? – Financial News

Policymakers should not lose sight of the fact that a central bank’s main job is to maintain financial stability, as lender of last resort

Regulatory News

New York Fed Names New Markets Head – Profit & Loss

The Federal Reserve Bank of New York has announced new senior leaders for its Markets and Financial Services Groups. 

Minouche Shafik: Emerging as Favourite to Succeed Carney – Financial Times

Following the UK election, opinion is firming that ex-BoE Deputy Governor is in line to succeed Mark Carney.

EU Confirms One-Year Brexit Reprieve for Derivatives Industry – Financial Times

The EU has confirmed it will grant the derivatives industry more time to prepare for a potential no-deal Brexit, saying that emergency access to crucial UK market infrastructure would last for one year after Britain drops out of the bloc.

Ex-BoE Deputy Tucker Warns of Clearing Default – FOW

The former deputy governor of the Bank of England has issued a warning to CCPs on the possibility of failure.

CFTC Chair to Remove Barriers to Libor Transition – FOW

The US derivatives regulator will remove barriers to Libor transition as the chairman warns of risk of inaction.

Crypto News

Remember How Technology Changed FX? Now It’s Doing the Same for Crypto – Profit & Loss

The dynamism of the digital asset space looks very much like the FX industry of yesteryear and as institutional-grade technology is changing markets.

Basel Committee Consults on Crypto Regulation – Profit & Loss

The Basel Committee on Banking Supervision has started a consultation process on the regulatory treatment of crypto assets by publishing a discussion paper on the design of a prudential treatment of these assets.

Bitcoin Whales Consolidation May Mean More Turbulence Ahead – Bloomberg 

A closer look at Bitcoin holdings data shows a potentially troubling trend among the anonymous accounts — increased consolidation among large owners.

Countries Vie for Cryptocurrency Supremacy as Libra Tips Scales – Financial Times

Announced with a fanfare in June, Libra has rapidly become the benchmark for governments’ attitudes to crypto assets.

Crypto Exchange BitMex Hit With $300 Million Investor Suit – Bloomberg

BitMex, one of the world’s most popular cryptocurrency exchanges, and founder Arthur Hayes are being sued for $300 million for allegedly stiffing an early investor.

ECB President: ‘We Better Be Ahead of Curve’ on Stablecoins – Coin Telegraph

The president of the European Central Bank, Christine Lagarde, said that the financial institution should be ahead of the curve regarding the demand for stablecoins.

Company News

360T Goes Live with FX Swaps Platform – Profit & Loss

360T has launched a fully automated FX swaps limit orderbook with mid-rate matching capability, called 360TGTX MidMatch.

Banks Step Up Stress-Testing of Hong Kong Dollar Peg Risk – Risk

Banks are stress testing the possibility that Hong Kong’s currency could decouple from the US dollar following a surge in options bets against the peg.

Forty Barclays Options Traders Move to GTS After Sale – Financial News

Around 40 Barclays employees are moving to GTS after the electronic market maker agreed to buy the UK lender’s options trading business.

China Suffers Biggest Dollar Bond Default By State-Owned Company in Two Decades – Bloomberg 

A major Chinese commodities trader became the biggest dollar bond defaulter among the nation’s state-owned companies in two decades, in a moment of reckoning for Beijing as it struggles to contain credit risk in a weakening economy.

Market Savvy

Christmas Comes Early for Markets as Key Risks Get Taken Out – Bloomberg

It started last Friday, with a blowout US jobs report that beat all expectations. Then in quick succession late Thursday investors got news that guns will be holstered in the US-China trade war, and that Britain is lifting itself out of the quagmire of a hung parliament.

Japan Manufacturers’ Business Mood Gloomiest in Nearly 7 Years – Reuters

Japanese big manufacturers’ business mood was at its bleakest in nearly seven years in the fourth quarter, a closely watched central bank survey showed, as the U.S.-China trade war and soft global demand weighed on the export-reliant economy.

New York Fed Again Upsizes Liquidity Plans for Turn of the Year – Wall Street Journal

The Federal Reserve Bank of New York said it is again increasing the scope of liquidity operations it is willing to offer financial markets to ensure money-market rates remain relatively calm over an uncertain year-end.

Why Fears About a Global Recession Have Disappeared Far Too Quickly – South China Morning Post

In a matter of months, markets have swung from pessimism about the global economy to optimism, but Europe’s economy remains weak and, with an impending presidential election, it is too soon to say if the US economy is out of the woods.

RBA Admits Lower Rates Were to Offset $A Appreciation – Australian Financial Review

The Reserve Bank of Australia admits part of its move in reducing interest rates to a record low 0.75 per cent has been to offset any appreciation in the Australian dollar driven by reductions in cash rates by other central banks.

JPMorgan Top 2020 Trades Say Short Gold, Buy Raft of Stocks – Bloomberg

JPMorgan Chase & Co. is recommending a risk-on investment allocation for 2020 as the global economy gathers momentum in the wake of the slowdown of recent months.