UK Supreme Court to Hear More Arguments on Suspension of Parliament – Reuters

Britain’s Supreme Court will continue hearing legal arguments on Wednesday from the government and its opponents on whether Prime Minister Boris Johnson acted unlawfully when he decided to suspend parliament in the run-up to Brexit.

EU Fears Brexit Reality Has Dawned Too Late for Boris Johnson – Financial Times

Officials have become increasingly pessimistic about the prospects of a deal with the UK’s prime minister.

ECB’s Villeroy Urges More International Role for the Euro – Reuters

Euro zone businesses would benefit if efforts were made to encourage the international use of the shared currency, ECB policymaker Francois Villeroy de Galhau said on Tuesday.

From Oil Shocks to Funding Strains, Fed Confronts New Complexities – Reuters

The Federal Reserve will conclude its latest policy meeting on Wednesday buffeted by conflicting economic data, under steady pressure from the White House for steep interest rate cuts, and confronted as well with an unexpected jump in overnight borrowing costs that may require action on its own.

‘This Is Crazy!”: Wall Street Scurries to Protect Itself in Repo Surge – Bloomberg

The word went out even before the opening bell: the Fed had to step in. Up and down Wall Street, phones lit up Tuesday morning as a crucial market for billions in overnight borrowing suddenly started to dry up. What had begun on Friday, with tremors inside US short-term funding markets, was escalating rapidly.

Saudi Arabia to Restore Oil Output Fully by End of September: Energy Minister – Reuters

Saudi Arabia will restore its lost oil production by the end of September and has managed to recover supplies to customers to the levels they were at prior to weekend attacks on its facilities by drawing from its huge oil inventories.

China Faces 1% Growth in 2030s if Reform Lags: World Bank – Nikkei Asian Review

China’s economic growth rate could drop to 1.7% by the 2030s without reforms to address the country’s misallocation of resources, warns a report released by the World Bank and a government think tank.

Spain to Hold Fourth Election in Four Years on November 10 – Reuters

Spain will hold its fourth election in four years on Nov. 10 after rival parties failed to break a months-long impasse in a deeply fragmented parliament, with no guarantee the repeat vote will make it any easier for them to form a government.

Don’t Bank on a Global Recession Just Yet, BIS Chief Says – Bloomberg

The world economy isn’t yet on the cusp of a global recession, according to the head of the Bank for International Settlements, often referred to as the central bankers’ central bank.

Regulatory News

CFTC Names DeWitt as Head of Market Oversight Division – Profit & Loss

Dorothy DeWitt has been appointed as director of the Division of Market Oversight at the US Commodity Futures Trading Commission.

Big Banks Score Win as US Regulator Proposes Easing Post-Crisis Derivatives Rules – Reuters

A US banking regulator has proposed easing a rule requiring banks to set aside cash to safeguard derivatives trades between affiliates, marking one of the biggest wins for Wall Street lenders under the business-friendly Trump administration.

Feds’ Spoofing Case Against JPMorgan Traders Turns Heads – Law360

Federal prosecutors have raised the stakes in their anti-spoofing campaign by bringing racketeering conspiracy charges in a case against JPMorgan Chase & Co. traders who allegedly manipulated precious metals futures prices, a development that is raising eyebrows among the white-collar defense bar.

Behnam Slams “Watered Down” Volcker Rule – FOW

CFTC commissioner Rostin Behnam has dissented against amendments to the controversial Volcker Rule, calling the rule “watered down”.

EBA Leader Appointed as CEO of Banking Body Afme – Financial News

Adam Farkas has been picked to succeed Simon Lewis at the body lobbying on behalf of financial services.

Crypto News

Blockchain Firms Partner for FX Swaps Settlement – Profit & Loss

Fnality and Finteum are partnering to deliver a blockchain-based solution for settling FX swaps transactions.

VanEck, SolidX Withdraw Bitcoin ETF Proposal From SEC Review – Coin Desk

Cboe BZX Exchange has withdrawn its VanEck/SolidX bitcoin exchange-traded fund proposal.

Japanese Messaging Giant Line Rolls Out Crypto Trading Platform Bitmax – Coin Telegraph

Following regulatory approval to operate a crypto exchange in early September, Line’s blockchain arm LVC Corporation officially introduced its newly launched crypto platform.

Ex-CFTC Chair Giancarlo Joins Digital Chamber Trade Group – Coin Desk

Former Commodity Futures Trading Commission chairman J. Christopher Giancarlo has joined the advisory board to the Chamber of Digital Commerce, a trade group focused on blockchain and crypto policy in the U.S.

ING: 32% of Europeans Believe Crypto Is the Future of E-Payments –Coin Telegraph

Most Europeans believe cryptocurrencies can be spent in most stores, according to the results of a survey conducted by ING Bank.

Company News

JPM, SocGen, Invest in Wematch – Profit & Loss

JP Morgan and Societe Generale have invested in fintech firm, Wematch, a company that provides technology to augment how traders at banks match, negotiate and manage trades that are currently predominantly voice-traded, thus bringing, according to the firm, the audit and control benefits of electronic tools to voice trading, delivered as web-based software-as-a-service technology.

The Hedge Funds Split Over Following Market Trends – Financial Times

Industry divided over the future of trend-tracking vehicles that manage $300bn of assets.

Who Will Be the Next Bank of England Governor? – Financial Times

A shortlist of candidates includes a financial regulator and a former minister.

UK Companies Would Incur Tariff Costs After No-Deal Brexit: Survey – Reuters

Almost 40% of British businesses with suppliers in the European Union have signed “Brexit clauses” to allow prices or other terms to be renegotiated if trade tariffs return after a no-deal departure from the bloc, a survey showed on Wednesday.

Market Savvy

Emerging Markets in Grip of China’s Yuan More Than Ever – Bloomberg

The fate of emerging-market stocks and currencies has never been so closely tied to the Chinese yuan. And it’s in large part because of the trade war.

More Rate Cuts Won’t Save the Economy – In Fact They’re Making it Worse – Financial News

Extremely low rates may lead to slower growth by increasing market concentration and thus weakening firms’ incentive to boost productivity.

UK Inflation Rate Falls to Lowest Since 2016 – Bloomberg

UK inflation fell to its lowest rate since the end of 2016, driven down by the price of computer games and clothing.

Trump is Waking Up to the Fact That Ending the Trade War with China Will Help Him Win in 2020 – South China Morning Post

The US president has figured he needs a deal with China to soften the economic impact the trade war is having on his voter base, particularly in the key swing states that helped propel him to power in 2016

Singapore Woos Banks in Battle of Asia’s Biggest Currency Hubs as It Loses Ground to Hong Kong – South China Morning Post

Singapore saw its lead over Hong Kong shrink to just a whisker in the battle to be Asia’s biggest foreign-exchange currency hub. To keep its advantage, the island state wants to attract more companies to set up electronic trading platforms.