US Unemployment Rate Hits 50-Year Low – Financial Times
Evidence of stronger hiring over the summer and the lowest unemployment rate in 50 years were offset by signs of a slowdown in wage growth during September.
Johnson in Last-Ditch Bid to Save Brexit Plan – The Times
Boris Johnson was in talks last night to save his Brexit plan after being warned by European leaders that the deal would not be approved at next week’s crunch summit unless he backed down.
- Johnson Urges Brussels to Compromise on Brexit – Financial Times
- Johnson to Seek Supreme Court Ruling on No-Deal Brexit – Daily Telegraph
- BOE to Dust Off War Games If No-Deal Brexit Becomes Reality – Bloomberg
ECB’s Zero Interest-Rate Policy Leads to Slower Growth: Holzmann – Bloomberg
European Central Bank Governing Council member Robert Holzmann said he has a “critical stance” toward the institution’s current zero interest-rate policy.
China Narrows Scope for Trade Deal with US Ahead of Talks – Bloomberg
Chinese officials are signalling they’re increasingly reluctant to agree to a broad trade deal pursued by President Donald Trump, ahead of negotiations this week that have raised hopes of a potential truce.
- Will US-China Trade Talks Provide Comfort to Investors? – Financial Times
- Why the 13th Round of US-China Trade War Talks May Well Be Unlucky For Some – South China Morning Post
Violence Flares in Hong Kong as Emergency Rule Spurs Backlash – Bloomberg
Hong Kong suffered one of its most violent weekends since anti-China protests began in June, with demonstrators paralyzing large swaths of the financial hub after leader Carrie Lam imposed emergency rule for the first time in more than half a century to ban face masks.
- HKSAR Official Reiterates No Forex Control in Hong Kong – Xinhua
- Attack on JPMorgan Banker in Hong Kong Sparks Outrage in Mainland China – South China Morning Post
- Beijing Will Have its Revenge on Hong Kong – Australian Financial Review
The Euro’s Guardians Face a Roar of the Dinosaurs – Financial Times
The attack on the European Central Bank’s renewed stimulus by six former central bankers is extraordinary. Only one thing can match the stature of the complainants and that is the hollowness of their complaint.
Second Whistleblower in Trump-Ukraine Scandal Comes Forward: Lawyer – Reuters
A second whistleblower has come forward with first-hand knowledge of President Donald Trump’s attempts to get the Ukrainian president to investigate a political rival, lawyers for the official said on Sunday.
Key Japan Economic Index Falls, Government Changes View to ‘Worsening’ – Reuters
A key Japanese economic index fell in August and the government on Monday downgraded its view to “worsening”, indicating the export-reliant economy might face slipping into recession.
Regulatory News
Bringing Rupee Trading Home, India Takes Steps to Deepen Markets – Bloomberg
India plans to allow foreign-exchange settled rupee derivatives trading in specially designated centres as it tries to deepen the local market.
Repo Glitches Expose Flaws in Fed’s Approach – Financial Times
The Federal Reserve Bank of New York’s response to the recent volatility in short-term lending markets hinted at a deeper problem.
Euro OIS Recovery “Fitful”: ECB – FOW
An ECB study finds overnight index swaps volumes remain low and highly concentrated, with liquidity linked to monetary events.
Should the Foreign Exchange Market Be Worried By ESMA’s Latest Consultation? – Profit & Loss
The European regulator is consulting over whether to include spot FX in its Market Abuse Regulation, but surely there’s a better way than imposing an onerous framework on both market participants and regulator?
Crypto News
US Central Bank Digital Currency is “Inevitable”, Says Federal Reserve Official – Krypto Money
The United States is yet to join the slowly growing list of countries who have announced a decision to begin the development of a digital currency, however, it’s possible that such a time is no longer far off any more.
PayPal Drops Out of Facebook’s Libra Digital Currency Project – CBS News
PayPal is pulling out of Facebook’s digital currency project, known as Libra, a blow to the social media company amid mounting scrutiny of its plan to build an alternative payments system.
- Facebook Questioned by Brussels Over Libra Risks – Financial Times
- Why (Almost) Everybody Hates Facebook’s Digital Coin – Bloomberg Businessweek
- Facebook Sceptics Now Have Derivatives to Bet on Libra Delays – Bloomberg
Apple Will Not Create Its Own Digital Currency: CEO – Coin Telegraph
Apple has no intention to follow Facebook in creating its own digital currency, the company’s CEO Tim Cook has said.
Sharp Rise in Watchdog Scrutiny of UK Cryptocurrency Groups – Financial Times
The number of cryptocurrency businesses in the crosshairs of the UK’s financial watchdog leapt by 74 per cent in the past year, as the Financial Conduct Authority estimates that consumers have lost at least £27m in crypto and foreign-exchange scams.
The Second Coming of Crypto will be Huge, it’s Simple Maths – Australian Financial Review
There has never been a greater need for a stateless currency and store of value held outside the financial system.
Company News
Hong Kong to Sweeten London Stock Exchange Deal – The Times
The Hong Kong stock exchange is expected to improve the terms of its £32 billion takeover bid for the London Stock Exchange next week after receiving encouragement from some shareholders.
- Why Hong Kong Wanted the London Stock Exchange So Badly – South China Morning Post
- HKEX Races to Win Support as LSE Bid Deadline Looms – Financial Times
HSBC to Axe Up to 10,000 Jobs in Cost-Cutting Drive – Financial Times
HSBC has embarked on a cost-cutting drive that threatens up to 10,000 jobs, as its new interim chief executive Noel Quinn seeks to make his mark on the bank.
The Race to Zero Commissions – Wall Street Journal
After decades of discounts, the price of trading is suddenly zero with online brokers finding new ways to make money from clients.
Airbus to Launch Exchange to Hedge Multi-Billion Pound Airline Revenues – Financial News
Airbus, one of the world’s biggest manufacturers of planes, plans to launch an exchange so that airline companies can trade financial instruments to protect their multi-billion-pound revenues.
Market Savvy
Scant Evidence that Hedge Funds are Betting on No-Deal Brexit – Financial Times
You probably know Occam’s razor, a line of reasoning that says the simplest explanation tends to be the correct one. You might not know its less famous counterpoint, Hickam’s dictum, which advises against oversimplification.
A $440 Billion Pension Market Sounds Alarm as Liabilities Swell – Bloomberg
Back in 2012, the world’s best-managed pension market was thrown a lifeline by the Danish government to help contain liabilities. That was when interest rates were still positive.
As Fed Policymakers Comb Data, Few Decisive Signals on Outlook – Reuters
Federal Reserve policymakers on Friday signalled they are on high alert for signs that uncertainty over trade policy and slowing global growth are beginning to hold back the broader US economy, but so far they have flagged little in the data that is pointing one way or the other.
Emerging-Market Calm Set to Fray as Trade and Fed Angst Deepen – Bloomberg
Emerging markets have rarely been so torn between trade-war tensions and optimism central banks will keep up their stimulus efforts, suggesting a week of greater-than-normal price swings is in prospect.