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.

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.

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.

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.

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.

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.