Top Headlines

Trump Demands Fed Help on Economy, Complains About Interest Rate Rises – Reuters

US President Donald Trump said on Monday he was “not thrilled” with the Federal Reserve under his own appointee, Chairman Jerome Powell, for raising interest rates and said the U.S. central bank should do more to help him to boost the economy.

US Moves Toward New Tariffs on China Despite Fresh Round of Trade Talks – Wall Street Journal (subscription)

The Trump administration is moving closer this week to levying tariffs on nearly half of Chinese imports despite broad opposition from U.S. business and the start of a fresh round of talks between the US and China to settle the trade dispute.

At Heart of New Fed Debate: Bonds or Bills? – Wall Street Journal (subscription)

The Federal Reserve must decide how to manage the mix of long-term versus short-term in its Treasury portfolio.

Trump Accuses China, EU of Currency Manipulation – Bloomberg

President Donald Trump accused China and the European Union of manipulating their currencies as he tries to wrestle concessions from two of the U.S.’s largest trade partners.

EM Turmoil Pushes US Yield Curve to its Lowest in a Decade – Financial Times (subscription)

A widely-watched indicator regarded by some as a recession predictor moved further toward its inflection point on Monday.

RBA Governor Philip Lowe Tells Borrowers to Prepare for Rate Hikes – Australian Financial Review(subscription)

Reserve Bank of Australia governor Philip Lowe has underscored that interest rates in Australia will rise, “at some point”, and urged borrowers to get their house in order to prepare for higher interest expenses.

China, Malaysia Sign MOU on Bilateral Currency Swap Agreement – Channel NewsAsia
China and Malaysia signed a memorandum of understanding on a bilateral currency swap agreement as part of Malaysian Prime Minister Mahathir Mohamad’s visit to China.

Australian Prime Minister Wins Leadership Challenge – Reuters

Australian Prime Minister Malcolm Turnbull survived a leadership challenge by Home Affairs Minister Peter Dutton on Tuesday, a government official said, which came after weeks of speculation and falling opinion poll ratings.

Regulatory News

Top Banks Want Court to Accept Their Definition of “Foreign Currency Retail Transactions” – Finance Feeds

Major banks, like JPMorgan and Citi, argue that foreign exchange transactions involving credit, debit, and ATM card transactions should be excluded from a Forex benchmark rate fixing case.

CPMI/IOSCO Makes Push for Streamlined OTC Derivs Data – FOW (subscription)

Participants should signal any new market development affecting the harmonisation of critical data elements, CPMI/IOSCO wrote.

Brevan Howard is First Non-Bank Caught by Margin Rules – Risk  (subscription)

Brevan Howard will become the first non-bank to be subject to initial margin rules in their next stage beginning September 1, industry sources say. The threshold for admission? A whopping $1.5 trillion in non-cleared derivatives.

Crypto News

CFTC Welcomes Formation of Crypto Association – Profit & Loss

CFTC Commissioner Brian Quintenz has welcomed the formation of an industry trade association for cryptocurrency traders.

‘Bitcoin Jesus’ Is Having a Hard Time Winning Over True Believers – Bloomberg

Roger Ver, the virtual currency advocate often referred to as Bitcoin Jesus, is finding it tough to win converts to the supposed second coming of the world’s biggest cryptocurrency.

Former Soviet Fertiliser Laboratory Reopens as Russia’s Largest Cryptocurrency Farm – South China Morning Post

A Russian company on Monday opened what it said was the country’s largest cryptocurrency mining unit, in a former Soviet fertiliser laboratory.

Bitcoin Buster? The Search For a More Stable Cryptocurrency – BBC News

Cryptocurrencies have investors in the grip of a gold rush fever, with billions being traded every day. Prices fluctuate wildly, making them high-risk investments. But could a more stable, less volatile crypto persuade us to think of digital money less as a speculative investment and more as a mainstream “smart” currency?

After the Bitcoin Boom: Hard Lessons for Cryptocurrency Investors – Australian Financial Review (subscription)

Pete Roberts of Nottingham, England, was one of the many risk-takers who threw their savings into cryptocurrencies when prices were going through the roof last winter. Now, eight months later, the $US23,000 he invested in several digital tokens is worth about $US4,000 and he is clear-headed about what happened.

Company News

TransFICC Secures Citi Investment – Profit & Loss

TransFICC, a provider of low-latency connectivity for fixed income and derivatives markets, has secured a strategic investment from Citi

Hedge Fund Redemptions at 20 Month High – Profit & Loss

Redemptions from hedge funds hit a 20-month high in June, according to the Barclay Fund Flow Indicator, as the financial markets weighed the risks of trade disputes and rising interest rates.

CME Pulls Ahead in Race to Control Bitcoin Futures – Financial Times (subscription)

The world’s largest exchange group is pulling ahead in the nascent bitcoin derivatives market and its rival has retooled its product to stay in the race.

Market Savvy

Emerging-Market Stand Out—in a Bad Way – Wall Street Journal (subscription)

This year’s performance gap boils down partly to the US and China.

Germany On Course for World’s Largest Current Account Surplus – Financial Times (subscription)

International pressure mounts on Berlin to do more to stimulate domestic demand.

The Relationship Between Monetary and Macroprudential Policies

European Central Bank’s Jens Weidmann discusses the role of macroprudential policy in financial stability.

Global Liquidity Squeeze Looks Set to Continue – Financial Times (subscription)

Against a background of heightened geopolitical risk, intensifying trade war and a squall in emerging market currencies, the recent weakness in the gold price may seem counter-intuitive.