Top Headlines

UK Set for December 12 General Election – Daily Telegraph

Britain will go to the polls on Thursday, Dec 12 after MPs finally answered Boris Johnson’s call to end Parliament’s “stasis” at the fourth time of asking.

US Economy Likely Lost Further Ground in Third Quarter – Reuters

The US economy likely slowed further in the third quarter, held back by a moderation in consumer spending and declining business investment, which could spur the Federal Reserve to cut interest rates again to keep the expansion on course.

Citi Plans to Withdraw from Two-Thirds of Foreign Exchange Platforms – Financial Times

One of the biggest banks in the currencies market is learning to say no to customers.

US-China Trade Deal Might Not Be Ready for Signing in Chile: US Official – Reuters

An interim trade agreement between the United States and China might not be completed in time for signing in Chile next month as expected but that does not mean the accord is falling apart, a U.S. administration official said.

Last-Minute India Demands Jeopardise 16-Nation Asian Trade Pact – Bloomberg

India keeps making last minute requests after it agreed to terms for the world’s largest regional trade agreement, potentially preventing Asian leaders from announcing a breakthrough on the 16-nation pact.

US Federal Reserve Rate Decision: 4 Things to Watch – Financial Times

The US economy is “in a good place,” Fed officials say: Unemployment remains at a half-century low, with little pressure on inflation. And yet after the Fed slashed its benchmark policy rate in July and in September, investors expect another cut this week.

Why ECB’s Resumption of Quantitative Easing Could Spur Eurozone Outflows – Financial Times

Cash has flowed out of the eurozone at an unprecedented pace for most of the past five years, thanks in large part to the European Central Bank’s bond-buying programme. 

Top ETF Buyer Bank of Japan Turns Lender as Liquidity Dries Up – Nikkei Asian Review

At $266bn and counting, BOJ’s holdings will help brokers fill orders.

Investors Anxious Over New Argentine President’s Next Move – Financial Times

Investors breathed a sigh of relief at Alberto Fernández’s narrower-than-expected victory in Argentina’s presidential elections, but were anxious for more clarity over the leftist leader’s first moves when he takes power on December 10.

Regulatory News

UK Banks Urge Government to Ease Tax Burden as Brexit Beckons – Reuters

Banking in Britain paid 40 billion pounds in taxes in the last financial year with half from foreign lenders, underscoring the need for a government rethink on taxes to keep London competitive after Brexit, UK Finance said on Wednesday.

Futures Exchange Reins In Runaway Trading Algorithms – Wall Street Journal

The Chicago Mercantile Exchange is cracking down on runaway algorithms in one of the world’s biggest futures markets.

LCH to Cut Jump-to-Default Margin for Cleared CDS – Risk

Move could bring margin for cleared CDS closer to bilateral trades, but mismatch remains.

Crypto News

Bitmain’s Exiled Founder Returns in Coup – Financial Times

A coup at Bitmain, the Chinese company that claims to have three-quarters of the world market for machines that mint bitcoin, has seen one of its founders return from exile to oust the other.

Bitcoin Faces Resistance at $10,000 as Mammoth Rally Loses Steam – Bloomberg

As Bitcoin’s monster rally over the past few days loses steam, technical indicators show it could face further resistance at the $10,000 level.

Russia: Government Official Expects to Mine 20% of the World’s Bitcoin – Coin Telegraph

A Bitcoin mining company owned by Russia’s internet ombudsman is planning to open a new facility and corner 20% of the international market.

Libra Threat Has Central Banks Eyeing Faster Payments – Financial Times

A former colleague once described the payments departments of central banks as the sort of place staff were sent when they had done something really bad. Facebook probably didn’t foresee when it was dreaming up Libra that it would change all that. 

China Announces New Regulatory Authority to Certify Digital Payments, Blockchain Products – Coin Desk

The People’s Bank of China will certify 11 types of financial technology hardware and software that are widely used for digital payment and blockchain services with its new verification system called the Certification of Fintech Products.

Company News

Alan Howard to Step Down as Brevan Howard CEO – Financial Times

Billionaire trader Alan Howard is to step down as chief executive of Brevan Howard, handing day to day leadership of the hedge fund firm to a lieutenant as he concentrates on investing and overseeing a widening group of businesses.

CMC Markets Adds FX Index – Profit & Loss

Brokerage firm CMC Markets has expanded its range of bespoke indices with the launch of a sterling index. This brings the total of baskets offered by the firm to 12.

Confluence Acquires StatPro – Profit & Loss

Confluence Technologies has acquired StatPro Group, a global provider of cloud-based portfolio analytics, asset data services and data management tools for the global asset management industry and asset management service providers.

South Korean Hedge Funds Fear Public Distrust After Lime Crisis – Financial Times

YB Choi, a 72-year-old retiree from Seoul, is finding it hard to sleep. The cause of his anxiety: an investment in South Korea’s biggest hedge fund, Lime Asset Management, which suspended withdrawals earlier this month.

Deutsche Bank Revenue Falls Again on Fixed Income Trading Slump – Bloomberg

Deutsche Bank AG can’t stop the shrinking even after it shed its unwanted businesses. 

Market Savvy

Resilient French Growth Offers Hope to Struggling Euro Area – Bloomberg

France’s economy grew more than expected in the third quarter, a sign it’s avoiding some of the global manufacturing malaise that’s probably pushed Germany into a recession.

In a World Where the Dollar Dominates, China Must Strike Back by Enhancing the Yuan’s International Appeal – South China Morning Post

Washington has the dollar and powerful legislation at its disposal, and can make life difficult for countries just by denying them access to the US financial system, so Beijing needs to step up the pace of RMB internationalisation, to mitigate the risks to the Chinese economy.

Yuan, Lira Cheapest in EM FX Screen That Has Preceded Past Gains – Bloomberg

For a currency investor looking for value in emerging markets, it might be best to avoid some of the top performers, and seek out the more neglected names.

How the Euro Helped Germany Avoid Becoming Japan – Financial Times

Berlin should be thankful for what the single currency, and Mario Draghi, have given it.

In-Line Inflation Eases Rate Cut Pressure – Australian Financial Review

The headline inflation rate rose 0.5 per cent during the September quarter pushing the annual rate up to 1.7 per cent from 1.6 per cent in seasonally adjusted terms.