Trump Accuses China of ‘Currency Manipulation’

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Trump Accuses China of ‘Currency Manipulation’ – CNBC

President Donald Trump accused China of manipulating its currency as the trade war between the world’s largest economies keeps escalating.

No-deal Brexit Now Expected as UK Sets ’48 hour’ Whitehall Exit Plans Deadline – Daily Telegraph

Brussels believes that Britain will leave the EU without a deal after accepting that Boris Johnson “isn’t bluffing”, the Telegraphunderstands.

Swiss Franc Hits Highest Level Against Euro in More Than 2 Years –Financial Times

Speculation grows that central bank will intervene to cap currency’s appreciation.

With China a ‘Manipulator,’ Heightened Pressure on Fed to Ease – Reuters

Federal Reserve Chair Jerome Powell, who last week cut US interest rates as an insurance policy against the effects of “simmering” trade tensions, may need to buy more coverage after the United States designated China a currency manipulator.

Negative-Yielding Debt Hits Record $15 Trillion – Bloomberg

The latest escalation in the US-China trade war has sent investors rushing once more to haven assets, pushing the world’s stockpile of negative-yielding bonds to another record.

Soaring Japanese Yen Spurs Speculation of Stealth Intervention – Financial Times

The yen’s surge beyond a key threshold against the US dollar has sparked speculation among traders in Tokyo that Japan’s $1.6tn government pension fund could engage in “stealth intervention” to soften the currency over coming weeks.

Australia’s Central Bank Sees Low for Longer Rates as Trade War Rages – Reuters

Australia’s central bank held rates at an all-time low of 1% on Tuesday as it weighed the impact of past easing, though markets are wagering the tide of policy stimulus sweeping the world will compel it to cut again before year-end.

ECB Issues Weak Outlook for Global Trade – Reuters

The European Central Bank expects global trade to remain sluggish as ongoing tensions and the prospect of further tariffs weigh on activity. “Despite some signs of recovery, global trade is likely to remain more subdued than activity in coming quarters,” according to the ECB.

Regulatory News

Industry Risks “Benchmark-ageddon” in 2022 – Legal Expert – FOW

A legal expert is advising firms to prepare for EU Benchmark Regulation and Ibor reform simultaneously.

Former Fed Chairs Say US Central Bank Must be Free of ‘Political Pressures’ – Reuters

The four living former chairs of the Federal Reserve on Monday called for the US central bank to remain free to work independently and without fear of political reprisals in a rare joint public statement.

Basel III to Boost Capital Requirements by 25% – FOW

A European Banking Association assessment on the impact of final Basel III package of rules finds the largest banks will need 24.4% more capital.

Banks Seeking Softer Capital Rules Rebuffed by EU Regulator – Bloomberg

European banks lobbying for special treatment on new capital rules are in for a disappointment.

Crypto News

’Not Satisfied’: Facebook on Notice Over Libra – Australian Financial Review

Privacy regulators have demanded Facebook explain how it will protect users’ data with its new cryptocurrency network after expressing concerns over the social media company’s limited assurances to date.

Crypto is Replacing Fiat Currency in Troubled Countries – Forbes

Gresham’s law is that “bad money drives out good.” This can seem contradictory when you think about bitcoin, because is it good or bad money?

Facebook Unfriended: the Start-Ups Who Rebuffed its Crypto Offer –Financial News

Sources say the Silicon Valley icon approached more than 10 start-ups but could not overcome ideological differences.

Crypto Rally Sparked by Investors Seeking Hedge Against Rising Global Risks – CNBC

Bitcoin bull Tom Lee told CNBC that cryptocurrency is a hedge against global risks, amid the US-China trade conflict and currency war.

Japanese Crypto Exchange Bitpoint Restarting Trade Services – Coin Desk

Japanese crypto exchange Bitpoint is resuming some trading services following a $28 million hack in mid-July.

Company News

Survey Highlights Barriers to Treasurers Implementing New Hedging Policies – Profit & Loss

Internal and technological challenges were cited as one of the main barriers to corporate treasurers adopting cash flow at risk (CFaR) hedging policies, according to a new survey from Bloomberg.

Asset Managers Farm Out Trading as Costs and Complexity Climb – Reuters

It’s 10 o’clock at night, and Benjamin Arnold’s day is just beginning. The former Goldman Sachs trader is gearing up to trade in Asia from his small office thousands of miles away in Park City, Utah.

USD/CNH Volumes Surge on SGX Amidst Trade War – Profit & Loss

Having recorded a new record high trading volume of $7.5 billion notional in its USD/CNH futures on Friday, August 2, SGX saw a 38% increase in volumes as trading resumed on Monday, August 5.

HSBC Pushes Ahead with Thousands of Job Cuts in Wake of Surprise CEO Exit – Financial News

Redundancies have become a theme across the sector this year, amid low interest rates and contracting revenues at costly trading divisions.

CLS Adds First Chinese Third Party Bank – Profit & Loss

China CITIC Bank International Limited has become the first Chinese bank to access CLS Settlement as a third-party client

Market Savvy

Yuan Pulls Off Lows as Beijing Seen Curbing Fresh Losses – Australian Financial Review

The offshore yuan pulled back from an all-time low on Tuesday after Beijing appeared to take steps to prevent the currency from weakening further.

Australia’s Trade Surplus Swells to Record in Rare Bright Spot – Reuters

Australia’s trade surplus swelled to historic highs in June and likely gifted the country its first current account surplus since the 1970s, a timely buffer as the world descends ever closer to an all-out trade war.

RBNZ Poised to Cut Rates Again, May Signal More to Come – Bloomberg

New Zealand’s central bank is poised to cut interest rates to a fresh record low and may hint it’s not done yet.