Top Headlines

We Need to Admit the Euro was a Mistake – Financial Times

Hungary’s central bank governor says “the time has come to seek a way out of the euro trap.” 

Big Central Banks Move to Wait-and-See Mode – Reuters

Easing come. Easing go. A concentrated burst of interest rate cutting and other measures to loosen global financial conditions by the world’s central bankers looks to have largely run its course.

Calls Persist for Negative US Yields Even as Fed Signals Pause – Bloomberg

The Federal Reserve may be hinting at a pause in its policy easing, but Bruno Braizinha at Bank of America Corp. sees a risk that yields on some Treasuries will go negative by 2021 as the U.S. central bank cuts rates all the way to zero.

Ross Optimistic on China Deal, Trump Wants It Signed in US – Bloomberg

Commerce Secretary Wilbur Ross expressed optimism the US would reach a “Phase One” trade deal with China this month and said licenses would be coming “very shortly” for American companies to sell components to Huawei Technologies Co.

Moody’s Leaves South Africa Teetering on Brink of ‘Junk’ – Reuters

Moody’s left South Africa on the brink of “junk” status after it revised the outlook on the country’s last investment-grade credit rating to “negative,” piling pressure on President Cyril Ramaphosa to quicken the pace of reform.

City Backs Boris Johnson but not his Brexit Deal, Finds FN Poll – Financial News

An exclusive poll of over 100 Square Mile executives finds overwhelming support for the Conservatives.

Why It’s So Hard to Overthrow the Mighty US Dollar – Bloomberg Businessweek

Russian President Vladimir Putin is acting on a pledge to shrink the role of the US dollar in international trade. Jean-Claude Juncker, outgoing president of the European Commission, says it’s “absurd” that Europe uses the greenback for 80% of energy imports. Chinese President Xi Jinping has railed against economic “hegemonism.” Can the mighty dollar retain its global dominance when attacked from so many sides? 

In the FICC Of It – Profit & Loss

The future of FX multi-dealer platforms and legal obstacles facing the FX industry feature in this week’s podcast, as well as the question, how can an FX hedging contract be environmentally friendly?

Regulatory News

Regulator Takes Aim at Market Abuse of Personal Dealing – Financial Times

FCA looks into disclosure breaches and insider trading.

RBNZ says Westpac Unit Has Retained Accreditation Following Compliance Review – Reuters

The Reserve Bank of New Zealand said on Monday that lender Westpac’s local unit has retained its accreditation as an internal models bank following completion of an extensive remediation process.

Don’t Just Expose Shadow Banks, Regulate Them – Bloomberg

We know much more now about the operations of such financial institutions. We’re no closer to reining in the risks they pose. 

JPMorgan Pours $130bn of Excess Cash into Bonds in Major Shift – Financial Times

Capital rules push US bank to sell off loans from its balance sheet.

How Slower Growth in China Could Threaten Financial Reforms – Risk

The unthinkable has happened: China’s official GDP rate has slipped to 6%, its lowest level in nearly three decades. This must not be allowed to detract from much-needed reforms of the banking sector.

Crypto News

Malaysia Completes First Blockchain Test – FOW

Bursa Malaysia looks to “increase efficiency, speed and capacity” with its securities lending blockchain solution.

After Painful 2018, Chinese Blockchain VCs Are Getting Back Into the Market – Coin Desk

Chinese venture capital firms are taking another look at blockchain. After the 2018 crypto crash, up to 90 percent of blockchain-focused VCs left the market. Now, as China’s central government pushes for greater blockchain adoption, some are returning. 

Cryptocurrency Not Money: UK Tax Authority – Coin Telegraph

The United Kingdom’s tax, payments and customs authority, Her Majesty’s Revenue and Customs (HMRC), has updated its cryptocurrency taxation guidelines for businesses and individuals.

Six Ways the Crypto World is Preparing for Quantum Computing – Decrypt

With Google having achieved quantum supremacy, cryptographers are racing to save blockchain – and cryptocurrencies.

Company News

FX Platforms Report Mixed Results for October – Profit & Loss

The first group of FX trading platform providers to report results for October indicate it was a mixed month for providers with CboeFX seeing a slight rise in activity and three other venues small declines.

HKEX Eyes FX Clearing Growth – Profit & Loss

Hong Kong Exchanges & Clearing has become the latest major exchange group to identify FX clearing as a growth area, after announcing last week that its OTC Clear service handled its first deliverable FX swaps and forward contracts.

Deutsche Bank Has Cut Nearly 6,000 Jobs – Financial News

Nearly 6,000 roles at Deutsche Bank have been axed or earmarked for cuts since the German lender announced a radical plan in July to reshape the business. 

China Life Pension on Track to Join Ranks of World’s Largest Funds – Financial Times

China Life Pension has doubled its assets under management in the past 12 months to more than Rmb1tn ($142bn) and is expected to join the ranks of the world’s largest pension funds over the next two years.

Market Savvy

The Pitfalls Awaiting the FX market and the Pollsters in the UK Election – Profit & Loss

That notoriously fickle bunch, the British electorate, are about to have their say in the first December UK General Election since 1923, which means the pollsters – and the FX market – potentially have a stern test awaiting them.

Turkish Central Bank Stirs Concerns with Opaque Funding Tool – Financial Times

Turkey’s central bank has sparked a fresh wave of concern among investors and analysts after saying it is supplying billions of liras to the financial system through an opaque market.

Australia’s Low Interest Rates Could Be Doing More Harm Than Good – Bloomberg

Australia’s monetary policy easing has driven interest rates down to levels where they could be doing more harm to the economy than good.

Look to Credit, Not Stocks, For Signs of Nerves – Financial Times

Equity markets party on central bank support, but worries fester in debt.