Trump’s China Handshake Fails to Lift Economic Gloom – Bloomberg

The pledges China and the US made to keep prospects alive for a comprehensive trade deal did little to alter the deteriorating growth outlooks for both countries because they were sealed with something economists don’t trust: a handshake.

Britain and EU Say Work Remains to be Done to Reach Brexit Deal – Reuters

Britain and the European Union said on Sunday a lot more work would be needed to secure an agreement on Britain’s departure from the bloc.

What Brexit? London Tightens Grip in Forex Trading – Reuters

Financial analytics firm Mosaic Smart Data has doubled the number of developers and quantitative analysts it employs since 2018 at its London base, where nearly 40 now crunch numbers to help banks trade foreign exchange and bonds.

ECB’s Holzmann Calls Current Monetary Policy ‘Wrong’, Hopes for New Course Under Lagarde – Reuters

New Austrian National Bank Governor Robert Holzmann sharply criticised the European Central Bank’s ultra-easy monetary policy in an interview and said he hoped for a new course under incoming chief Christine Lagarde.

The Dark Corner Where the Next Global Financial Crisis may be Brewing – South China Morning Post

After weeks of trying to hose down these dark arcane markets with liquidity, the US Fed’s announcement that it would resume buying Treasury bills was a bland acknowledgement that US short-term money markets are the new flashpoint. Brace yourselves.

Russia Looks at Alternatives to Dollar for Energy Transactions – Financial Times

Russia is exploring currency settlements in euros and roubles for its vast energy exports in an attempt to avoid the dollar and insulate Moscow from the US-led global financial system.

Europe Doesn’t Need Another Currency Crisis – Bloomberg

Leaders shouldn’t wait for the next disaster before addressing the euro’s flaws.

Abe May Dissolve Japan’s Lower House in November for Snap Election – Japan Times

Speculation is rising among ruling and opposition parties that Prime Minister Shinzo Abe may dissolve the House of Representatives as early as November for a snap general election.

FX: A Trading or Data Business? – Profit & Loss

At the recent Forex Network Chicago conference David Mercer, CEO of LMAX Exchange Group, was interviewed by Colin Lambert about the foreign exchange and crypto market landscapes.

For a Few Dollars More: Global Funds Take on FX Risk – Reuters

Some European and Japanese bond investors are taking on more currency risk by buying dollar debt without protecting themselves against potentially devastating exchange rate swings as they seek ways to compensate for sub-zero yields at home.

Regulatory News

FSB Reports to G20…and it’s a Familiar Message – Profit & Loss

The Financial Stability Board has published a letter from its chair Randal Quarles to G20 finance ministers and central bank governors ahead of their meetings in Washington this week and the message from the letter is largely the same as it has been for some time – work is progressing but more needs to be done to complete the financial reform process kicked off in 2009.

FCA Fines Tullett Prebon for “Ineffective Controls” of Brokers – Profit & Loss

The UK’s Financial Conduct Authority has fined Tullett Prebon, now part of TP Icap, GBP 15.4 million for “failing to conduct its business with due skill, care and diligence, failing to have adequate risk management systems and for failing to be open and cooperative with the FCA”. 

FCA Meets Junior Bankers in a Bid to Improve Conduct – Financial News

The FCA has held roundtable sessions with junior staff at its offices in Stratford, with more set to follow.

How RTGS Killed Liquidity – Financial Times

The pressures placed upon intraday liquidity by real-time gross settlement systems led to the creation of the tri-party repo market, which itself proved a central point of failure during the global financial crisis.

FCA Promises ‘Pragmatic’ Approach to Regulation on Brexit Day – Financial News

The UK’s financial regulator has told European companies to ensure they can still do business in the City in the event of a no-deal Brexit, but pledged a pragmatic approach to market oversight on October 31.

Crypto News

Global Regulators Put Pressure on Libra with Enhanced Scrutiny – Financial Times

Facebook’s plans for a digital currency are coming under further pressure as global regulators step up their scrutiny of the struggling Libra project.

US Authorities Issue Digital Assets Reminder – Profit & Loss

The leaders of the US Commodity Futures Trading Commission, the Financial Crimes Enforcement Network, and the Securities and Exchange Commission have issued a joint statement to remind persons engaged in activities involving digital assets of their anti-money laundering and countering the financing of terrorism obligations under the Bank Secrecy Act. 

SEC Sues Telegram to Halt $1.7bn Digital Token Offering – Financial Times

The US Securities and Exchange Commission has sued Telegram, the encrypted instant messaging and voice app, alleging its $1.7bn token offering had broken federal securities laws.

CFTC Chair Hints at Ether Derivatives – FOW

Fintech-friendly chair Heath P. Tarbert foresees trading of “ether-related futures contracts and other derivatives”.

Bitcoin No Longer Seen as the Driving Force in Crypto Market – Bloomberg

Bitcoin has plunged more than 30% since hitting a year-to-date high. That fact is clear, but explaining why the world’s largest digital currency has lost momentum in the second half of the year is anything but.

Company News

If the Primary FX Venues Go Brokerage Free – What Happens? – Profit & Loss

There is little support for the argument that FX platforms could follow the US equity brokers in going brokerage free, but that doesn’t mean it shouldn’t, or couldn’t happen. If it does, what does it mean for the secondary venues?

This Quarter, Bank Earnings Are All About Rates – Wall Street Journal

Investors will get an early readout on the impact of the Federal Reserve’s recent interest-rate cuts when big US banks report third-quarter earnings this week.

AI Isn’t as Good as Humans When it Comes to Funds Management – Australian Financial Review

How good is artificial intelligence at managing money? To judge by the recent performance of some AI-driven strategies, it doesn’t look like the robots are going to take over from the humans any time soon.

State Street Chief Cyrus Taraporevala: My 5 Predictions for Asset Management in 2029 – Financial Times

The current pressures on the asset management industry remind me of the old line about reaching a historic crossroads, where one path leads to despair and the other to total extinction.

Symphony Will Not Go Public Until it is Profitable, Says Chief – Financial Times

The Goldman Sachs-led messaging platform Symphony, created to wean traders off Bloomberg’s chat function, will not go public until it is profitable, chief executive David Gurle told the Financial Times, outlining a timetable that rules out a listing until late 2021.

Market Savvy

In Planning for Next US Recession, Economists Say, Don’t Fret About Debt – Reuters

Economists are divided about when the next US recession will arrive, but they largely agree on this: the country will need to fight it with a massive fiscal program, and be ready to swallow deficits that may eclipse the trillion-dollar shortfall run by the Trump administration this year.

MAS Reduces Singdollar Appreciation Rate ‘Slightly’; First Easing in Over 3 Years – Straits Times

A widely expected move for the Monetary Authority of Singapore to ease Singdollar policy slightly has come to pass, on the back of slower economic growth this year.

Is Fed’s Bill-Buying Spree QE? Does It Matter? – Bloomberg

It’s probably QE Lite, but what it’s called matters less than the challenges facing central banks.

Foreign Investors Have ‘Kept the Faith’ in UK Government Debt – Financial Times

Overseas investors are piling in to UK government debt at the fastest pace in more than two years.