The Undeclared Currency War: How the ECB Is Forcing the Fed’s Hand – Wall Street Journal

If losing demand to Europe weakens U.S. growth and threatens to push inflation too low, US rates must also drop.

China, US Officials Meet for Trade Talks in Shanghai – Reuters

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin shook hands with Chinese Vice Premier Liu He before beginning trade talks in Shanghai on Wednesday in a bid to end a year-long trade war.

No-Deal Brexit: How Prepared are the EU and the UK? – Financial Times

As Boris Johnson takes the reins as PM, the FT considers the five areas most exposed to a crash exit.

Pound Pushed Toward Historic Low as Investors Worry Over Brexit – Wall Street Journal

The new UK government’s tough line on Brexit negotiations is pummeling the pound, reflecting increased investor fears the country could crash out of the European Union without an exit agreement.

With Fed Sure to Cut Rates, Powell on Hook to Flag Next Steps – Reuters

The US Federal Reserve is almost certain to cut interest rates for the first time in more than a decade on Wednesday, delivering a mild jolt to an economy that is facing headwinds from trade disputes and a global slowdown.

China Has ‘Price to Pay’ for Cutting Dollar Share of Forex Reserves – South China Morning Post

China’s sharp reduction in US dollar asset holdings has increased the risk of its investment portfolio, analysts have said in response to a disclosure of historical data by the agency charged with managing its foreign exchange reserves.

Leaving Behind Lira Volatility Boosts Economic Optimism – Turkish Cenbank Governor – Reuters

The Turkish Central Bank’s outlook for the economy is more optimistic for 2020 as the country leaves behind the impacts of lira volatility, governor Murat Uysal said on Wednesday.

China Data Suggest Economy is Still Weak, Boosting Case for Beijing Support – Wall Street Journal

An official gauge of China’s manufacturing activity picked up in July, though it remained anemic, building the case for fresh policy support from Beijing to counter economic headwinds.

Regulatory News

ISDA Publishes Preliminary Results of Benchmark Fallback Consultation – Profit & Loss

The International Swaps and Derivatives Association has published a statement summarising the preliminary results of its supplemental consultation on adjustments that would apply to fallback rates in the event certain interbank offered rates are permanently discontinued.

CFTC Names Clearing and Risk Head – Profit & Loss

US Commodity Futures Trading Commission chair Heath Tarbert has announced the appointment of Malcolm “Clark” Hutchison to serve as director of the Division of Clearing and Risk. 

CLS Launches Same Day Settlement Service – Profit & Loss

CLS has unveiled CLSNow, a same day settlement service that was first mooted in September 2017. The bilateral, same-day FX gross payment-versus-payment settlement service has been launched with JP Morgan and Goldman Sachs as the first banks to go live.

Binary Options Boss Defends Lying to Clients in $145m Fraud – Law360

An Israeli binary options executive on trial for her alleged role in a $145 million investment scam took the stand Tuesday.

Crypto News

Facebook Warns Investors Libra May Never See the Light of Day – CNBC

Facebook reminded investors in its latest quarterly report that while it expects to launch its Libra digital currency in 2020, a number of factors could keep that from happening.

Bermuda Grants XBTO a Digital Asset License – Profit & Loss

XBTO, an active global crypto investor, has been granted a license by the Bermuda Monetary Authority under the Digital Asset Business Act.

First Crypto Derivs Exchange Regulated in Gibraltar – FOW

Crypto futures and options exchange Quedex has been granted a licence to operate in Gibraltar.

Ripple Sides with US Regulators on Crypto Controversy and Facebook Libra – NewsBTC

Crypto was designed to eventually serve as a complete replacement for fiat currencies like the US dollar as the entire world moves into a fully digital age, so money itself can more easily and quickly be managed without the requirement of a third-party intermediary. Enters Crypto Trading with New London-Based Exchange – Bloomberg, which has created more than 40 million digital-asset wallets, is moving into the trading side of cryptocurrencies with a new exchange.

Company News

Choussy Joins Baton as President & COO – Profit & Loss

Baton Systems, a provider of blockchain-inspired, bank-to-bank payments infrastructure, has appointed Andrés Choussy as president and chief operating officer. 

Savvy CFO Strategies for Hedging Foreign Exchange Risk – Global Atlanta

To some, the word “hedging” has a negative connotation, maybe because it brings to mind high-risk or complicated hedge fund strategies.

London Stock Exchange Deal is Signpost for City – Financial Times

The London Stock Exchange may be days away from doubling in size via the acquisition of Refinitiv, the data spin-off from Thomson Reuters.

Market Savvy

Asian Shares at Six-Week Low on Trade Worry, Pound Under Pressure – Reuters

Asian shares fell on Wednesday to a six-week trough, rattled by fresh trade war concerns following threats from President Donald Trump to Beijing, while increasing worries about a no-deal Brexit kept the pound under pressure.

A Squeezed Bank of Japan is Delivering Diminishing Returns – Financial Times

Only brokerages will benefit if the central bank steps up buying of ETFs and J-Reits.

We are Nowhere Near a Sterling Crisis Yet, but Foreign Funding is Fickle – Daily Telegraph

If it is any comfort, sterling is not trading remotely like an emerging market currency in bad times.

UK Poised for Interest Rate Cut Despite Inflation Threat – Financial Times

The prospect of a further dose of inflation will not stop the Bank of England from cutting interest rates this year, investors are betting.