Climate change could cost US billions, report finds

Nov 26, 2018

First Read

Hits & Takes
JLN Staff

Snow day! It is a snow day in Chicago. The JLN staff is working from home and many schools across the area are closed due to the winter storm that dumped 4 to 12 inches of snow.~JJL

We hope those who celebrated the Thanksgiving holiday are safely home, or staying put until the roads are safe to travel upon. And the skies too!~JJL

Be careful what you click on this Cyber Monday.~JJL

The latest column from The Streetwise Professor, Craig Pirrong, is titled “This Is What Happens When You Slip Picking Up Nickels In Front of a Steamroller.”~JJL

Citi has a column titled “Feeding The Future; How Innovation and Shifting Consumer Preferences Can Help Feed a Growing Planet.”~JJL

I hope to be in the office on Wednesday for the first time since my surgery. Thursday I will have the staples from my incision from the surgery removed, though I am thinking of asking them to put in a zipper since they seem to keep going back into the same place over and over.~JJL

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U.S. Border Patrol Uses Tear Gas to Disperse Migrant Caravan; Traffic at the border crossing between San Diego and Tijuana has been suspended
Juan Montes, Santiago Pérez and Robbie Whelan – WSJ
U.S. Border Patrol agents used tear gas to disperse hundreds of Central American migrants in the Mexican city of Tijuana who made a rush for the border fence, as tension builds over the diminishing prospects for asylum seekers trying to enter the country.
/on.wsj.com/2KwksWh

***** This story did not make my acid reflux any better.~JJL

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Too big to fail: FT editor Lionel Barber on the future of financial journalism; Transcript of a speech given for the James Cameron Memorial Lecture
Lionel Barber – FT
This is the transcript of a speech given by Lionel Barber, editor of the Financial Times, for the annual James Cameron Memorial Lecture on November 22 2018 at City University, London. The lecture is given in memory of the prominent British journalist.
/on.ft.com/2KAECy6

***** Well worth the read.~JJL

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Friday’s Top Three
Our top stories from Friday were not about shopping, but two of them were about digital currencies. Bloomberg led the way with How Bitcoin’s Crash Compares to History’s Biggest Bubbles. Second went to the FT’s Bitcoin’s crash is not the end of cyber currencies; Banks and governments face a push to make money more digital. And third went to the Wall Street Journal’s Exchange Shuts Louis Dreyfus Coffee Trading Warehouses. Is Louis Dreyfus trying to mix and match Robusta with Arabica?

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Lead Stories

Climate change could cost US billions, report finds; Federal government report contrasts sharply with Trump administration views
Ed Crooks in New York – FT
Climate change could cost the US hundreds of billions of dollars and cause thousands of deaths every year by the end of the century unless there is a global shift to curb greenhouse gas emissions, a federal government report has warned.
/on.ft.com/2Ky3mY1

600K Bitcoin Miners Shut Down in Last 2 Weeks, F2Pool Founder Estimates
Wolfie Zhao – Coindesk
Between 600,000 and 800,000 bitcoin miners have shut down since mid-November amid declines in price and hashrate across the network, according to the third-largest mining pool.
bit.ly/2KAAoGT

UK antitrust watchdog set to probe Nasdaq’s $190m bid for Cinnober
Philip Stafford – FT
UK antitrust authorities are set to open a preliminary investigation into Nasdaq’s planned $190m purchase of Cinnober Financial Technology, a smaller Swedish rival.
/on.ft.com/2BzR1jf

****The Trade also has the story here.

Competition Is Dying, and Taking Capitalism With It; We need a revolution to cast off monopolies and restore entrepreneurial freedom. First of two excerpts from “The Myth of Capitalism.”
Jonathan Tepper – Bloomberg
On April 9, 2017, police officers from Chicago’s O’Hare Airport removed Dr. David Dao from United Express Flight 3411. The flight was overbooked, but he refused to give up his seat. He had patients to treat the next day.
/bloom.bg/2KySRnp

Markets Can No Longer Rely on the Fed ‘Put’; Policy makers are more worried by the risk of not raising rates enough than pausing because stocks are down. Also, the Brexit plot thickens.
John Authers – Bloomberg
A Powell “put” or tighten until it breaks? Or neither? Not unlike the typical U.S. family trying to survive the Thanksgiving break altogether and under one roof, the Federal Reserve and the stock market have a tense relationship. Both sides like to believe that they are in charge. And as Thanksgiving approached, there was a growing sense the Fed might accede the stock market’s wishes and signal that it’s poised to maybe stop raising interest rates.
/bloom.bg/2KAEtuH

Ex-BlueBay pair trigger quant race with raids on rivals; Hugh Willis and Alex Khein snatch staff from BlackRock, Citadel and Robeco for new venture
Owen Walker – FT
Hugh Willis, co-founder of BlueBay Asset Management, has raided the quant investment teams at BlackRock, Citadel and Robeco for the launch of his fixed income venture.
/on.ft.com/2KAxFwY

Fixed-income hedging set to climb as rates rise; Volumes of derivatives traded on exchanges have soared this year
Philip Stafford – FT
Open interest in fixed-income contracts at Europe’s two largest futures exchanges has soared in the final quarter of the year.
/on.ft.com/2KxZSEQ

Why Global Finance Stopped Shouting About Brexit; Cross-border banking faces similar fate whatever happens next, local lenders not so much
Paul J. Davies – WSJ
Brexit has entered its endgame, yet the once-noisy finance industry is quiet. Truth is, most banks are ready for whatever happens next. The big problems are more likely to hit local lenders with little stake in cross-border finance.
/on.wsj.com/2Kyw4rK

NY Fed told Goldman to improve risk reporting shortly after 1MDB; Notorious 1MDB deal was approved after meetings where recused bankers stayed in room
John Gapper in London and Laura Noonan in New York – FT
US bank supervisors told Goldman Sachs to tighten its oversight of risk and report more of its internal debates about deals just after the Wall Street bank completed $6.5bn of controversial bond financing for 1MDB, the Malaysian fund.
/on.ft.com/2KEJItz

The $200 Trillion Gold Rush That Has Reshaped Private Banking; From Hong Kong to Miami, private bankers are finding new ways to serve the growing ranks of the world’s wealthy.
Bloomberg News
Ten years ago, stock markets plunged, major banks faltered, and the global economy teetered on a precipice. Few would have predicted that the ensuing decade would produce an explosion in wealth.
/bloom.bg/2KwKx7r

That Giant Sucking Sound is Post-Brexit London Losing Out; The U.K. capital’s rivals are slowly carving chunks out of its business.
Mark Gilbert – Bloomberg
Lingchi is the Chinese word for a form of torture in which flesh was systematically sliced from the body of the condemned, resulting in death by a thousand cuts. It was banned there in 1905; but, with Brexit looming, the practice is set for a revival in the City of London.
/bloom.bg/2BxLZUo

UK equity market descends into ‘uninvestable’ zone; Investors spooked by Brexit uncertainty and Corbyn government fears
Chris Flood – FT
Fears that the Conservative government’s pursuit of Brexit will cause lasting damage to the UK economy have battered the confidence of many investors who also view the alternative of Jeremy Corbyn as prime minister as a deeply unappealing prospect. The toxic mixture of extreme uncertainty around Brexit and the risk that a hard left tax-raising Labour party could win a general election has prompted a massive retreat from UK equity funds.
/on.ft.com/2Byr6YU

Exchanges, OTC and Clearing

Clearing, settlement and cash clearing on 24 December and 31 December 2018
Eurex
With this circular, we would like to remind you that since 2009, 24 December and 31 December have been regular settlement days (elimination of Giovannini Barrier 7). Thus, 24 December and 31 December 2018 have been included in the regular clearing and settlement calendar of Eurex Clearing.
bit.ly/2Byxsru

Nasdaq Dubai Celebrates Integrated Securities Being The Most Active Broker On Its Equity Futures Market – Company’s Market Share Has Increased To 63% Of Traded Value In Last Three Months
MondoVisione
Integrated Securities, SHUAA Capital psc.’s securities brokerage arm, and one of the UAE’s most prominent institutions, has today been recognised by Nasdaq Dubai as its most active equity futures broker in 2018.
bit.ly/2BwV6V6

Fintech

British fintech firms just want to move on from Brexit uncertainty
Elizabeth Schulze – CNBC
London has been called the financial technology (fintech) capital of the world.
Consultancy KPMG found $16 billion was invested in the United Kingdom’s fintech market in the first six months of the year, outpacing China and the United States. London alone is home to 80 percent of the country’s estimated 1,600 fintech companies, according to audit firm EY.
/cnb.cx/2zsNemi

Friend Or Foe: Railsbank Questions Whether European Banks Do Indeed Support Fintech
Joe Wallen – Forbes
In Europe in 2018 there is a widely held belief that banks are increasingly working with, and investing in, fintech. Spanish-based Banco Santander, for example, has added eight new fintech investments to its portfolio since mid-2017, the most out of any major European bank.
bit.ly/2zrHh91

Fintech Is Reinventing the Installment Loan
Ben Walsh – Barron’s
If you’ve shopped online recently, you may have seen Affirm on the checkout page, next to the familiar options to pay with a credit or a debit card. If not, you will probably notice it over the holiday shopping season. Affirm combines the ease of paying online with the repayment schedule of an installment loan.
bit.ly/2zsc4T7

Fintech Is ‘Multi-Year Thematic,’ Jupiter Asset Says – Bloomberg
Bloomberg (VIDEO)
Guy de Blonay, global equities fund manager at Jupiter Asset Management, talks about the market implications of the U.S.-China trade spat. He also discusses the opportunities fintech creates for the financial industry as he speaks with Sophie Kamaruddin and Haidi Stroud-Watts on “Bloomberg Daybreak: Asia.”
/bloom.bg/2zoBGAs

Cryptocurrencies

Capitulation is the wrong word for the bitcoin market
Dan McCrum – FT
The word capitulation has been used a lot in the context of the bitcoin market in recent days — understandably, as the price collapsed by more than a third in the space of a week, briefly to below $3,600 on Sunday.
/on.ft.com/2Byiku8

Bernie Madoff Move Over: ‘Stablecoins’ Have You Beat
Jason Bloomberg – Forbes
Everybody is familiar with the Ponzi scheme: the scammer dupes investors into giving him their money, paying out early investors with incoming investments, thus presenting a veneer of respectability. The great thing about Ponzi schemes? They really work. Investors are all happy with their returns, whether they stay in or get out.
bit.ly/2DZnUIx

You might not actually own your bitcoin – here’s why that could be dangerous for you; Cryptocurrencies aren’t technically recognised as property in English and Welsh courts – the same could be true of other courts around the world too, which could have devastating results for your assets
Dave Michels – Independent
The price of bitcoin has dropped by 75 per cent in the past year, so anyone who invested heavily at the peak will have lost a lot of money. And now there’s more bad news for cryptocurrency investors to worry about: they may not legally own the digital assets they have purchased.
/ind.pn/2KydwYB

Battered Bitcoin Miners May Start Shutting Down
Eric Lam – Bloomberg
Bitcoin miners hit hard by the cryptocurrency’s crash may be throwing in the towel.
The Bitcoin network’s hash rate, one way of gauging the computing power dedicated to mining the digital currency, dropped about 24 percent from an all-time high at the end of August through Nov. 24, according to Blockchain.com. While the decline may have partially resulted from miners switching to other cryptocurrencies, JPMorgan Chase & Co. says some in the industry are losing money after Bitcoin’s price tumbled.
/bloom.bg/2KwHtIt

Bitcoin’s Deepening Crash Now Approaches Its Worst Bear Markets
Eric Lam and Matt Turner – Bloomberg
Bitcoin extended its tumble on Monday after breaking below the $4,000 level over the weekend, putting the 2018 crash within striking distance of the cryptocurrency’s worst bear markets.
/bloom.bg/2KwjmK9

Bitcoin extends falls as selloff in crypto currencies resumes
Dhara Ranasinghe – Reuters
Bitcoin extended its falls on Monday to $3,843, down more than five percent from the day’s highs on renewed selling in cryptocurrencies.
/reut.rs/2KwdHn8

Taiwan is Tightening Regulations on Crypto Exchanges, Possible Pressure From China?
Joseph Young – Cointelegraph
On November 2, Taiwan officially tightened anti-money laundering (AML) policies targeted at crypto exchanges, requesting exchanges to monitor and prevent any illegal transaction processed using digital assets.
According to the newly drafted Money Laundering Control Act and Terrorism Financing Prevention Act approved by the Legislative Yuan, one of the five branches of the Taiwanese government, the country’s Financial Supervisory Commission (FSC) now has authority over crypto exchanges to ban transactions suspected of being tied to fraudulent operations.
bit.ly/2zrcCZq

Bitmain Faces $5 Million Lawsuit Over Alleged Unauthorized Crypto Mining
Yogita Khatri – Coindesk
Cryptocurrency mining giant Bitmain is facing a class action lawsuit for over $5 million that alleges unauthorized crypto mining by the firm. On Nov. 19, lead plaintiff Los Angeles County resident Gor Gevorkyan filed the case against both Bitmain’s China- and U.S.-based entities in the federal court of the Northern District of California, alleging that the firm’s devices use customers’ resources to mine cryptos for its own benefit prior to full setup.
bit.ly/2r4TvQp

Washington bitcoin pioneer seeks Chapter 11 protection
Paul Roberts – Seattle Times
Mired under heavy debts, GigaWatt, one of the earliest players in Central Washington’s bitcoin boom, has filed for bankruptcy protection, the latest casualty in an industry hammered by falling prices.
bit.ly/2ByoRoQ

Ethereum Developers Are Quietly Planning an Accelerated Tech Roadmap
Rachel Rose O’Leary – Coindesk
Ethereum developers are quietly discussing a previously undisclosed upgrade that could boost the capabilities of the technology more aggressively in the short-term.
bit.ly/2Bypxum

Politics

Breakthrough or breakdown: G20 sets trade war turning point
Leigh Thomas – Reuters
The United States and China have in the coming week what may be their last chance to broker a ceasefire in an increasingly dangerous trade war when their presidents meet in Buenos Aires.
/goo.gl/kXPnLE

Swiss voters reject ‘self-determination’ initiative; Nationalists’ proposal that would have complicated EU relations soundly defeated
Ralph Atkins in Zurich – FT
Switzerland’s voters have decisively rejected a referendum proposal from nationalists that would have complicated relations with the EU by throwing into doubt the country’s commitment to international pacts.
/on.ft.com/2KzCmHn

The US, China and Wall Street’s new man in the middle; Trump’s tough trade approach undermines role of executives such as Blackstone’s
Tom Mitchell in Beijing and James Politi in Washington – FT
In his offices a short walk from Zhongnanhai, the Chinese Communist party’s leadership compound in central Beijing, vice-premier Liu He maintains a large collection of photos taken with foreign VIPs.
/on.ft.com/2Kz0wCa

Ominous U.S. Climate Report Offers Few Policy Solutions; More storms, more drought and at least $100 billion in added annual spending await. Can anything be done?
Eric Roston – Bloomberg
A landmark U.S. climate change study by 13 federal agencies brings greater urgency to the question of what Americans can do to avoid an unprecedented shift in how they live in coming decades. What it doesn’t do is provide any answers.
/bloom.bg/2KxYsKB

Oil Gets Caught in a Perfect Storm; Prices are being pushed lower by uncertainty about demand, increased production and skepticism about OPEC’s determination to curb output.
Mohamed A. El-Erian – Bloomberg
Demand uncertainty, high production and skepticism about the Organization of Petroleum Exporting Countries’ resolve to curb output have come together to drive oil prices sharply lower. This perfect storm is raising questions about both short- and long-term price stability, placing even greater pressure on many of the top non-U.S. producers that are set to meet in Vienna on Dec. 3.
/bloom.bg/2Kz2Jxl

Is Trump Compromised by Saudi Money?; The incoming chairman of the House Intelligence Committee wants to know, saying the president hasn’t been honest in accepting Saudi denials in the Khashoggi murder.
Andrew Kragie – The Atlantic
On Thanksgiving Day, President Donald Trump once again touted the Saudi royal family’s denial of any role in the murder of the journalist Jamal Khashoggi. That didn’t sit well with Representative Adam Schiff, the California Democrat poised to take over the House Intelligence Committee.
bit.ly/2KADL0v

House Panel to Probe Trump’s Financial Ties to Saudi Arabia
Rich Miller – Bloomberg
Incoming intelligence chief said president is being dishonest; Republican senator says he disagrees with Trump’s assessment
Democrats will probe whether President Donald Trump has financial ties with Saudi Arabia that colored his response to the murder of a U.S.-based journalist, said the top Democrat on the House Intelligence Committee.
/bloom.bg/2Kz3XbV

In the United States, right-wing violence is on the rise
Wesley Lowery, Kimberly Kindy, Andrew Ba Tran – Washington Post
As a Republican, Mitchell Adkins complained of feeling like an outcast at Transylvania University in Lexington, Ky. “Hardcore liberals” made fun of him, he wrote, and he faced “discrimination on a daily basis.” He soon dropped out and enrolled in trade school.
/wapo.st/2KwjBF3

Donald Trump Can’t Live Without OPEC; The U.S. president is fond of Twitter rants against the oil producer countries. But if they don’t manage the oil price, who will?
Julian Lee – Bloomberg
The U.S. Department of Justice is formally reviewing antitrust laws aimed at curbing OPEC’s power over oil markets, raising the prospect of anti-OPEC legislation landing on President Donald Trump’s desk for signature. Tempting as it might be, the long-term cost of ending the group’s influence over prices would far outweigh any quick gains.
/bloom.bg/2KzDZot

Regulation

Cleared British traders put US justice on trial; Staff in London and elsewhere are vulnerable to legal forays, lawyers for trio warn
Katie Martin and Caroline Binham – FT
When they returned to the New York courtroom on October 26, the three British former currencies traders were not expecting a verdict.
/on.ft.com/2KABaUj

Don’t Fall For “All or Nothing” Investment Schemes
Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy
Do you like making high-stakes decisions? Are you tempted by “all or nothing” investments? If you have been researching investments in search of high yield, low-risk investments, you may have come across something called, “binary options.” You may have even been sent an email or a message on social media asking you to look at a sales pitch.
bit.ly/2BxvVC7

Citigroup, JPMorgan to pay $182.5 million to settle rate-rigging lawsuit
Jonathan Stempel – Reuters
Citigroup Inc and JPMorgan Chase & Co will pay $182.5 million to settle U.S. investor litigation claiming they violated antitrust law by conspiring with other banks to rig a key European interest rate benchmark.
/reut.rs/2BxCnZz

ESMA welcomes no-deal Brexit central clearing equivalence plans; The European Commission has said it will adopt temporary equivalence to ensure no disruption to central clearing in the case of no-deal Brexit.
Hayley McDowell – The Trade
The European Securities and Markets Authority (ESMA) has welcomed a recent communication from the European Commission which outlines plans for central clearing in the case of a no-deal Brexit scenario.
bit.ly/2AhflVa

City watchdog steps up its inquiries into ‘crypto’ firms
Sam Brodbeck- Telegraph
As the price of the controversial “cryptocurrency” Bitcoin plunges, new figures show that the City watchdog is stepping up its investigations into the murky sector.
bit.ly/2BwQrCK

Investing and Trading

Fidelity’s zero-fee campaign spurs $6.6bn of inflows; Boston manager outsells Vanguard by more than 40% in October after aggressive price cuts
Owen Walker – FT
Fidelity Investments is winning the latest battle in the global asset management fee war after its aggressive summer price cuts fuelled a dramatic increase in sales.
/on.ft.com/2Ky59fv

Learning the lessons of GE’s steepening decline; The once-mighty conglomerate relied too much on financial engineering
The editorial board – FT
General Electric has always been a bellwether. The 126-year-old innovator that built a global empire off the back of the lightbulb has gone in two decades from being the most valuable US company to being in some ways one of the riskiest. Rating agencies have cut its credit rating, thanks to chronic mismanagement and debt issues. Its share price is back at the level of late 1994. But GE’s decline is not a story of this conglomerate alone. It tells a great deal about business, markets, and the economy today.
/on.ft.com/2KyefsN

When the Going Gets Tough, Markets Cast Blame Everywhere; Stock buyers fault credit concerns. Bond traders point to equities. Isn’t volatility fun?
Brian Chappatta – Bloomberg
Last week showed you all you need to know about how traders and investors instinctively react when markets get choppy. They’re dazed, confused and quick to cast blame.
/bloom.bg/2KxYGBr

Grim Stock Signals Piling Up as Wall Street Mulls Recession Odds
Elena Popina and Vildana Hajric – Bloomberg
Market internals are breaking down among companies, industries; Most still see slowing growth but few signs of a downturn
U.S. Markets Are Very, Very Nervous, Says Berenberg’s Pickering
Nine turbulent weeks and a correction in U.S. stocks have left analysts with a thorny question. What’s the market saying about the economy?
/bloom.bg/2Ky9tLL

A Brutal Global Market in 2018 Has Just One Champion
Samuel Potter and Sid Verma – Bloomberg
Of more than 20 assets, few can escape 11 months of carnage; Risk-adjusted returns show T-bills triumphant, EM bonds beaten
Gather a basket of the world’s biggest assets. Strip out the volatility. Calculate the returns. Then find a nice corner where you can weep, and wish you’d put everything in T-bills.
/bloom.bg/2KCLRpy

A Penny Pot Stock That Soared and Fell
Ciara Linanne, Francine McKenna, and Tomi Kilgore – Barron’s
India Globalization Capital’s chief executive boasted in February that his was the only cannabis company that was using blockchain technology—combining two of the hottest investment trends.
bit.ly/2BxCvIx

Institutions

Ex-Goldman Banker Channels the Hulk for Deals With Billionaires; Gerry Cardinale’s RedBird Capital cultivates wealthy families.
Simone Foxman – Bloomberg
The first thing visitors see after stepping off the elevator at Gerry Cardinale’s RedBird Capital Partners is a 10-foot-tall statue of the Incredible Hulk.
/bloom.bg/2Kz16Qm

Top banks’ commodities revenue up 32 percent in first three quarters: report
Reuters
Commodities-related revenue at the 12 biggest investment banks was 32 percent higher in the first nine months of this year than in the same period in 2017, pulled up by volatile power, gas and base metals prices, consultancy Coalition said on Monday.
/reut.rs/2Kwg2hU

Discontent with Danske Bank high, but poll shows sentiment improving
Teis Jensen – Reuters
Discontent among Danske Bank (DANSKE.CO) customers remains high, although sentiment improved slightly in the last month as the Danish bank moved to address a 200 billion euro ($227 billion) money laundering scandal, figures from Voxmeter show.
/reut.rs/2BzRHoN

Regions

The World’s Priciest Property Market Is Getting (a Bit) Cheaper; Slower spending by rich Chinese home buyers is among the negative factors for Hong Kong’s housing market.
Jacky Wong – Bloomberg
Is the world’s most expensive property heading for a bear market? Probably. Hong Kong apartments have been an excellent investment: Prices have tripled in the past decade. A tiny flat, slightly bigger than a parking space, can go for as much as $1 million in the city’s most expensive areas.
/on.wsj.com/2KACFSr

Brazil’s XP Investimentos mulling Nasdaq IPO
Carolina Mandl – Reuters
Brazil’s XP Investimentos SA is considering an initial public offering (IPO) on the U.S.-based Nasdaq stock exchange, the financial services firm said on Monday.
/reut.rs/2KySwkD

Exclusive: Russia plans stiffer fines for tech firms that break rules – sources
Maria Kolomychenko – Reuters
Russia plans to impose stiffer fines on technology firms that fail to comply with Russian laws, sources familiar with the plans said, raising the stakes in the Kremlin’s fight with global tech giants such as Facebook (FB.O) and Google.
/reut.rs/2KyjDfp

China c.bank may have revived repos to drain liquidity in Oct – CSJ
Reuters
China’s central bank may have drained short-term funds from the banking system in late October by quietly reviving a tool to mop up excess liquidity, a state-run newspaper reported on Monday, citing analysts.
/reut.rs/2Kx79Vx

To avoid sanctions, Kremlin goes off the grid; How a breakaway region near the Black Sea is helping Russia support rebels in eastern Ukraine.
Story by Anton Troianovski – Washington Post
An isolated, war-scarred enclave in the Caucasus Mountains has become a hidden financial crossroads for Russia’s shadow empire around the Black Sea.
/wapo.st/2KABUbU

China grants market access to two more foreign financial institutions – regulator
Reuters
China has given the go-ahead for two more foreign financial institutions to set up local subsidiaries, the country’s banking and insurance regulator said in a notice on Sunday, bringing the total number of approvals to 12.
/reut.rs/2KyU4Lt

Italy’s investors adjust to bond market’s new normal; Debt demand stutters as Brussels and Rome face drawn-out dispute over budget
Kate Allen in London – FT
After six months of turbulence, investors in Italy’s bond market are acclimatising to the new normal as Brussels and Rome prepare for a prolonged stalemate over the country’s budget.
/on.ft.com/2KxfNTJ

‘Beanless’ Coffee Phenomenon Spells Trouble for Vietnam’s Output
Mai Ngoc Chau and Andrew Hobbs – Bloomberg
Harvesters found coffee fruits with no beans in several areas; Production may not meet 30 million bag target, exporter says
Farmers in Vietnam are coming across a worrying phenomenon: Coffee fruits empty of beans.
/bloom.bg/2Bygmde

Asia’s Liquidity Squeeze Is the Worst Since 2008; Previous episodes either preceded or coincided with global slowdowns. And it’s only going to get worse.
Andy Mukherjee – Bloomberg
Liquidity is getting tight in Asia. Leave aside Japan, where the printing presses are still pumping out yen. In rest of the region, central banks’ supply of currency plus bank reserves has shrunk 7 percent in real terms since the dollar began surging in April. This is the steepest contraction in base money since the 11 percent fall between January and October of 2008.
/bloom.bg/2BywfAs

Brexit

Passing Brexit Deal Seen as ‘Difficult Beast’ by Stock Investors
Ksenia Galouchko and Justina Lee – Bloomberg
The U.K. stock market starts the week with one word on its mind: Brexit. While Sunday’s European Union agreement to Theresa May’s plan provided a mild positive for British equities, the much tougher hurdle remains getting it through the U.K. Parliament.
/bloom.bg/2KA0Joy

GOLDMAN SACHS: Feuding UK politicians aren’t united enough to torpedo Theresa May’s Brexit deal
Will Martin – Business Insider
For the two or so weeks since British Prime Minister Theresa May first announced that she had secured an initial Brexit deal with the European Union, that deal has almost constantly appeared to be close to collapse, as politicians from all sides roundly criticize the agreement.
/read.bi/2KCJLWI

Macron Issues Veiled Threat on Post-Brexit Talks: Brexit Update
Lyubov Pronina , Jonathan Stearns , Viktoria Dendrinou , and Tim Ross – Bloomberg
European Union leaders endorsed the Brexit deal. Now the question is what they will do if the U.K. Parliament rejects it.
/bloom.bg/2KzEYVH

Confused About Brexit? Here’s What You Need to Know
Emma Ross-Thomas – Bloomberg
The Brexit deal is agreed, and European leaders signed off on it on Sunday. But it’s far from over yet. U.K. Prime Minister Theresa May needs to get it through Parliament, where she doesn’t have a majority and faces opposition on all sides. Her plan is to woo voters directly with a nationwide campaign to win public support. Then a make-or-break vote by lawmakers before Christmas that risks ushering in a period of unprecedented political chaos. Here’s a guide to the next few weeks — the most perilous part of Brexit.
/bloom.bg/2KyqkOK

In Bad Post-Brexit Omen, Britain Slides in Global Talent Ranking
Zoe Schneeweiss – Bloomberg
Britain slid in a global survey on fostering and attracting talent, falling to 23rd place out of 63 in IMD Business School’s annual World Talent Ranking report. That’s ominous for the U.K., which already risks losing highly skilled scientists, soccer players and bankers after Brexit.
/bloom.bg/2KwgZqu

The EU Is More Worried About Italy Than Brexit; Brussels can handle losing London, but it really wants to keep Rome.
Rodney Jefferson, Alan Crawford, John Follain – Bloomberg
One of the mantras in the campaign to take Britain out of the European Union was that the country needed to escape a continent in disarray. Leading Brexit backer Michael Gove pointed to Europe’s sluggish economy and the burden of the Greek financial crisis. He even suggested that the EU had jeopardized security by letting in terrorists. By wresting back control of its borders and trade, Britain could “show the rest of Europe the way to flourish,” he said.
/bloom.bg/2Kz76Zh

A Thelma and Louise Brexit? You Know the Ending; A “managed no-deal” Brexit risks driving Britain off a cliff.
Therese Raphael – Bloomberg
Committed Brexiters, including former Brexit secretary Dominic Raab, have arrived at the conclusion that the deal Prime Minister Theresa May has negotiated is not just bad; it’s worse than remaining in the European Union. That’s axiomatic. But what’s their plan? It’s not to cancel Brexit. And it’s not to hold a new public vote.
/bloom.bg/2BxMqhu

Pound strengthens on EU Brexit deal approval; UK vote in focus
Reuters via Nasdaq
The pound rose on Monday after the European Union sealed a Brexit deal but the currency’s gains were curbed by doubts about Prime Minister Theresa May getting the agreement through a divided British parliament.
bit.ly/2FEaJ11

Miscellaneous

China is buying good press across the world, one paid journalist at a time
Anaanth Krishnan – The Print
It coincides with launch of Belt and Road initiative and president Xi Jinping’s call to “tell China’s story better” to the world.
bit.ly/2KC8SZO

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