US, China Escalate Trade War, Impose More Tariffs – Reuters

The United States and China escalated their acrimonious trade war on Thursday, implementing punitive 25 percent tariffs on $16 billion worth of each other’s goods.

Concerns Over US-China Trade, Australian Politics Roil Markets – Financial Times (subscription)

Asia-Pacific equities slipped on Thursday as trade talks between the US and China were set to continue for a second day, while the Australian dollar was knocked by political turmoil.

Australian PM Digs In, Blames Liberal Forces on the Right for Political Woes – Sydney Morning Herald

Australian Prime Minister Malcolm Turnbull has blamed conservative enemies for leading an “insurgency” against his government, and has warned he will quit Parliament to trigger a by-election if a leadership vote is forced at a meeting set for noon on Friday.

The Modern FX Market’s Equivalent of a Mexican Stand Off – Profit & Loss (subscription)

Is the lack of risk takers within the banking industry confusing and possibly deterring some customers from trading?

When To Care About Foreign Exchange Issues – Seeking Alpha

The last few months investors have been witness to fairly volatile foreign exchange markets, hyperinflation in a few Latin American nations, and most of all the Turkish lira crisis.

Fed Officials Suggest Rates Likely to Rise Soon, Worry About Trade War – Reuters

Federal Reserve officials discussed raising interest rates soon to counter excessive economic strength but also examined how global trade disputes could batter businesses and households, minutes of the U.S. central bank’s last policy meeting showed.

Regulatory News

CCP12 Reiterated Reservations Over Basel III Leverage Ratio

The association of central clearing counterparties CCP12 has re-emphasised its reservations in regards to the Basel III Leverage Ratio and especially its application on CCP cleared client business.

Ten Years After Lehman Collapse Few Lessons Have Been Heeded – Financial Times (subscription)

Anniversaries call for reflections. And 10 years after the collapse of Lehman Brothers, the largest bankruptcy in American history, some inexplicable issues linger unresolved.

Ex-UBS Research Boss Goes Independent to Chase Mifid II Gains – Financial News (subscription)

The one-time head of European research at UBS has teamed up with former Exane analysts to launch an independent venture aimed at taking advantage of sweeping EU trading regulations that took effect in January.

Crypto News

SEC Rejects Nine Proposed Bitcoin Exchange-Traded Funds –Wall Street Journal (subscription)

The Securities and Exchange Commission rejected applications for nine separate bitcoin-based exchange-traded funds on Wednesday, once again thwarting an attempt to build an ETF product based upon the volatile cryptocurrency.

A Member of Congress Dipped Her Toes into Crypto – and Likely Took a Big Hit – Business Insider

Another US congressperson has disclosed cryptocurrency holdings and while it’s not clear the exact amounts purchased or the dates, its highly improbable the representative made a profit.

World’s Top Cryptocurrency Miner May Be Losing its Edge – South China Morning Post

Beijing-based Bitmain may need to write down the value of its inventory as makers of rival cryptocurrency mining equipment catch up.

Is the SEC Undermining the Future of Cryptocurrency? –

One of the greatest bodies whose position is either appreciated or disdained among cryptocurrency enthusiasts is the Security and Exchange Commission of US.

Company News

CME to Add Sonia Futures – Profit & Loss

CME Group says it will launch Sterling Overnight Index Average (Sonia) futures on October 1, 2018, pending regulatory review.

Barclays Appoints Head of Markets Innovation – Profit & Loss

Barclays has named Justin Brickwood as managing director, head of markets innovation.

ANZ Settles with Former FX Trader – Sydney Morning Herald

ANZ has settled with former senior trader Enilolobo Malika Oyo, who is seeking $8 million in lost wages and damages after she alleged she was sacked by the bank after complaining about being called a racial slur by her boss and the toxic culture within the bank’s US headquarters.

Goldman Sachs Closes Two Lacklustre Asia-Pacific Hedge Funds –  Financial Times (subscription)

Goldman Sachs is closing two Asia-Pacific focused hedge funds with $1.4bn in assets combined following lacklustre performances, in the latest sign of the sector’s recent challenges across the region.

Market Savvy

What to Expect From Federal Reserve Chair’s Jackson Hole Speech –  Financial Times (subscription)

The annual gathering of central bank leaders at the Jackson Hole symposium in Wyoming on Friday will firmly place Federal Reserve chair Jay Powell in the spotlight for investors.

Lira Steady After Turkey Says US Waging ‘Economic War’ – Reuters

The Turkish lira was little changed on Thursday after Turkey accused Washington of waging “economic war” and failing to respect its legal system over the fate of an evangelical Christian pastor whose trial in Turkey has soured ties between the NATO allies.

The Best Days of the Dollar’s Rally Are Behind It – CNBC

The greenback has been red hot, but the rally’s days are likely numbered.

Asia Should Beware of Trump’s Push for a Weak Dollar –  Asian Nikkei Review (subscription)

Crossfire from US president’s assault on the Fed will hit region’s central banks.