U.K.’s Boris Johnson Seeks Suspension of Parliament Ahead of Brexit – Bloomberg

Prime Minister Boris Johnson asked Queen Elizabeth II to suspend the UK Parliament from mid-September to mid-October – a move that could hamper lawmakers efforts to block a no-deal Brexit and even trigger a constitutional crisis.

US Yield Curve Sends Most Dire Signal Since 2007 – Financial Times

A widely watched US bond market indicator of recession sent its most dire signal since the early days of the financial crisis on Tuesday, reflecting increasing gloom about the economic consequences of the US-China trade war.

Fed Rejects Call to Deny Trump Rate Cuts; Trump Keeps Up Pressure – Reuters

The US central bank on Tuesday rejected a call from a former Federal Reserve policymaker to counter President Donald Trump’s trade agenda by refusing to “play along” and denying the president the interest rate cuts he has demanded.

China Prepares for the Worst on Trade War After Trump’s Flip-Flops – Bloomberg

Perhaps nobody was more surprised to hear that China had called President Donald Trump’s administration to restart trade talks than the government in Beijing itself.

South Korea Summons Japan Ambassador as Export Trade Curbs Take Effect – Reuters

South Korea summoned Japan’s ambassador to protest a decision to remove Seoul’s fast-track export status, which took effect on Wednesday amid a deepening political and economic feud.

Italian Coalition Talks Resume as Parties Agree on PM – BBC

Talks to form a new government in Italy have resumed after populist and centre-left leaders agreed that Giuseppe Conte should stay on as prime minister.

Johnson Tells Juncker No Brexit Deal if Backstop Remains – Reuters

British Prime Minister Boris Johnson told European Commission President Jean-Claude Juncker by phone that there was no prospect of a Brexit deal unless the Irish border backstop was abolished, his office said.

Trump-Backed US-British Trade Deal Faces Hurdles – Wall Street Journal

Resistance rises on both sides of the Atlantic to a pact, and no deal can be made if the U.K. remains in the EU customs zone.

The Currency Soros Couldn’t Break is Tempting Hedge Funds Again – Bloomberg

Crispin Odey has some advice for the traders ramping up wagers against Hong Kong’s currency: try something else.

Regulatory News

Mifid Redux? Esma Insists on LEIs for Repo Collateral – Risk

European regulators are turning to an old trick to boost the adoption of legal entity identifiers (LEIs) – a ‘barcode for finance’, designed to improve trade reporting.

This is a Dangerous Time to Deregulate Banks – Financial Times

These days, examiners are much less inclined to put lenders in a ‘penalty box’ to prevent them from growing.

The Next BOE Governor Could Be the Insider with the Outside Perspective – Bloomberg

Andy Haldane has spent 30 years working at the Bank of England, yet he may boast the greatest outside perspective of anybody running to become its next governor.

ASIC Teases More Actions and Criminal Referrals – Australian Financial Review

Australia’s corporate cop has flagged a number of referrals for criminal prosecution following an investigation into major financial institutions and their representatives, in its five year plan published on Wednesday.

Crypto News

Investors Downplay Self-Proclaimed Bitcoin Inventor’s Liquidation Warning – Bloomberg

Craig Wright is warning that billions of dollars in Bitcoin could soon flood the cryptocurrency market after an unfavourable court hearing.

Four Agencies are Investigating Crypto Exchange QuadrigaCX – Coin Desk

At least four different law enforcement and regulatory agencies are investigating defunct Canadian crypto exchange QuadrigaCX, a new report by bankruptcy trustee Ernst & Young said.

Carney’s Dollar Question Has an Obvious Answer to Bitcoin Fans – Bloomberg

Bank of England Governor Mark Carney’s radical pitch to put a digital currency at the heart of the global monetary system instead of the dollar may still be behind the curve.

Libra Association’s Crypto Members Remain Unfazed by Regulatory Backlash – Coin Desk

Since first being announced in June, Facebook’s proposed Libra cryptocurrency has drawn the ire of lawmakers and regulators worldwide.

Company News

NAB Superannuation Survey Highlights Currency’s “Coming of Age” – Profit & Loss

NAB’s ninth biennial Superannuation FX hedging survey highlights what Ray Attrill, head of FX strategy at the bank, terms “seismic shifts” in how managers of the fourth biggest pension pool in the world, think and handle their currency exposures.

Deutsche Picks Ex-Barclays Compliance Head to Manage Cash Reserves – Financial News

Deutsche Bank has recruited the former chief compliance officer for Barclays’ investment bank to manage its surplus cash, as part of an overhaul at the German lender’s treasury department.

Six US Banks Grow Systemic Footprints – Risk

Bank of America Merrill Lynch, BNY Mellon, Citi, Goldman Sachs, Morgan Stanley and Wells Fargo all increased their Federal Reserve-set systemic risk scores in Q2, two by enough to merit a higher capital surcharge if they stay at their current levels through the rest of the year. 

Norway’s $1tn Wealth Fund Advised to Cut Back on European Stocks –Financial News

Norway’s $1tn sovereign wealth fund, the world’s largest state investment vehicle, has been advised to prioritise North American equities and reduce its exposure to Europe’s developed markets.

Market Savvy

A Dollar Rising into a Possible US Recession Could Be a Bad Omen –Bloomberg

The dollar has been ascendant in 2019 and forecasts for a US recession are growing louder. If the greenback’s strength keeps up and the economy does shrink, some experts are worried this combination will make it harder for the economy to claw back out.

Behind the Trade War and Trump’s Offer to Buy Greenland Lies Growing US Discomfort with China’s Overseas Expansion – South China Morning Post

China has made no secret of its interest in Arctic resources and has expanded its influence into US spheres of influence. The US president’s anger at Denmark over Greenland wasn’t the first sign that such ambitions trouble Washington.

Investors Betting Against the British Pound Fear a Reversal – Wall Street Journal

Some investors are betting that the biggest risk to the British pound isn’t that the turmoil around Brexit causes it to plunge further against the dollar, but that it stages an unexpected rally.

It’s Not About When the Next Economic Crisis Hits, It’s About How – Financial News

Contrary to what has happened in some past crises, no one will be able to claim they didn’t see the next one coming.