China central bank cracks down on cryptocurrency trading in Shanghai By Reuters



SHANGHAI (Reuters) – China’s central bank launched on Friday a fresh crackdown on cryptocurrency trading in the financial hub of Shanghai, after Beijing’s promotion of blockchain technology reignited interest in virtual currencies.

The move came a day after financial regulators in Shenzhen launched a similar campaign, and as the People’s Bank of China (PBOC) is preparing to launch its own digital currency.

PBOC’s Shanghai headquarters said in a statement it would crack down on a resurgence of illegal activities around virtual currencies, and cautioned investors not to confuse such instruments with blockchain technology.

“The issuance, financing and trading of virtual currencies involve multiple risks,” PBOC said, vowing to uproot such activities.

Bitcoin’s price, which had dropped roughly 20% this month, extended its slide following the PBOC statement.

China launched a nationwide crackdown on cryptocurrencies in 2017, but interest in such currencies revived after Chinese President Xi Jinping said last month China should accelerate the development of blockchain technology, a digital ledger that forms the backbone of many cryptocurrencies such as bitcoin.

Xi’s remarks also sparked a rush into the shares of companies engaged in, or believed to be engaged in, blockchain or digital currency-related businesses.

PBOC said last week it had not issued any digital currencies nor authorized any asset trading platforms to trade such currencies.

PBOC’s Shanghai headquarters said it busted 13 platforms for initial coin offerings (ICOs) and 10 platforms for virtual currency trading during the previous crackdown in 2017.

The central bank added that it is still studying and testing its own digital currency.

PBOC is stepping up efforts to roll out its own digital currency, officially called Digital Currency Electronic Payment (DCEP), partly to fend off potential threats from Facebook’s proposed digital currency Libra.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Dollar slips as Chinese comments marginally boost risk appetite By Reuters


© Reuters. FILE PHOTO: A woman counts U.S. dollar bills at her home in Buenos Aires

By Elizabeth Howcroft

LONDON (Reuters) – The dollar was marginally down on Friday and risk appetite boosted by statements from China on the need to find a solution to the tit-for-tat tariff war with the United States, raising hopes that a “phase one” deal could be reached.

Chinese President Xi Jinping said Beijing wants to work out a deal with Washington and has been trying to avoid a trade war – but is not afraid to retaliate when necessary.

A senior Chinese diplomat urged the United States to compromise in order to develop stable relations between the countries.

But after a week of mixed signals over the likelihood of a preliminary trade deal, the developments did little to move markets. Currencies continued to trade in tight ranges.

“While there are many trade headlines over the past few days, one can also argue that this is actually a ‘status quo’,” Commerzbank (DE:) FX and EM analyst Hao Zhou wrote in a note to clients.

“At the end of the day, there is little progress on trade talks, and it looks like both sides are fine with another delay of the phase 1 deal,” he wrote.

Against a basket of currencies, (), the dollar was down less than 0.1%, breaking its three-day streak of gains and heading for its smallest weekly change since the start of August this year.

The Swiss franc was down 0.2% against both the dollar and the euro (), suggesting market optimism as the Swiss franc is perceived as a safe-haven currency.

But the Japanese yen – also seen as a safe haven – was flat against the dollar .

The trade-exposed New Zealand dollar and Swedish crown were both up 0.2% against the U.S. dollar .

MUFG currency analyst Lee Hardman wrote in a note that low volatility and tight trading ranges are currently the key characteristics of the FX market.

German third quarter GDP data released earlier this morning held no surprises, showing that exports, state spending and consumers helped the German economy avoid a recession.

“Up to now, the slowdown in Germany has been concentrated in the manufacturing sector,” Daria Parkhomenko, forex strategy associate at RBC Capital Markets, wrote in a note to clients.

“Unless global uncertainties are lifted, which are weighing down on the manufacturing sector, it is only a question of when, not if, the weakness in manufacturing spreads to the rest of the economy,” she wrote.

The euro was slightly up against the weaker dollar ().

Flash eurozone PMI data were due at 0900 GMT.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Oil topples from two-month high on concern over U.S.-China trade deal By Reuters


© Reuters. FILE PHOTO: An oil pump is seen just after sunset outside Saint-Fiacre

By Florence Tan

SINGAPORE (Reuters) – Oil prices pulled back from their highest levels in nearly two months on Friday amid lingering doubts on whether the United States and China will be able to reach a partial trade deal that would lift some pressure on the global economy.

That was more than enough to offset news of a likely extension of production cuts by major producers that drove prices higher in the previous session.

Brent crude futures () dropped 34 cents, or 0.53%, to $63.63 a barrel by 0745 GMT, while West Texas Intermediate (WTI) crude futures () fell 31 cents, also down 0.53%, to $58.27 per barrel.

China has invited top U.S. trade negotiators for a new round of face-to-face talks in Beijing amid continued efforts to strike at least a limited deal, the Wall Street Journal reported on Thursday citing unidentified sources.

“The key factor for the demand outlook for oil is the (U.S.-China) trade negotiation currently going on,” said Michael McCarthy, chief market strategist at CMC Markets and Stockbroking in Sydney.

“With oil near the top of recent trading ranges it’s no surprise to see a bit of selling pressure during the session today.”

Prices had touched their highest since late September on Thursday after Reuters reported that the Organization of the Petroleum Exporting Countries (OPEC) and Russia are likely to extend existing production cuts by another three months to mid-2020 when they meet on Dec. 5.

Oil was also buoyed by comments from China’s commerce ministry on Thursday that it will strive to reach an initial agreement with the United States to end the pair’s long-running trade war, allaying fears that talks might be unraveling. However, the completion of a phase one deal could slide into next year.

News that last week saw the biggest drawdown in three months for U.S. crude stock stockpiles at Cushing, Oklahoma also underpinned prices earlier this week. Cushing is the delivery point for WTI futures. [EIA/S]

Elsewhere, traders are also keeping a keen eye on the impact on oil production at OPEC countries Iran and Iraq amid ongoing protests.

Several major economies – the United States, France and Germany – will release manufacturing data later today which could impact the market, McCarthy said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Commerzbank CEO calls for multilateralism, decries ‘Nation first’ approach By Reuters



FRANKFURT (Reuters) – Commerzbank’s (DE:) chief executive officer on Friday criticized the U.S. administration’s approach to unilateral deals and called for Germany and Europe to “stick to our principles”.

Speaking to prominent bankers at an annual conference in Frankfurt, Martin Zielke said that the U.S. and its president wanted to make deals, adding that they wanted to do that unilaterally if possible.

“We should not be tempted by the false slogan of ‘Nation first’ solutions. On the contrary, we should do all that is possible to overcome the deep divisions that we observe in some societies,” Zielke said.

“We should not allow ourselves to be reduced simply to dealmakers,” he added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



GDP revisions put China on target to double economy, but data doubts remain By Reuters


© Reuters. An electric delivery vehicle drives in the Central Business District in Beijing

BEIJING (Reuters) – China on Friday revised up its nominal 2018 gross domestic product (GDP) by 2.1% to 91.93 trillion yuan ($13.08 trillion), keeping it on track to achieving its goal of doubling the size of its economy by 2020 from 2010.

However, with the economy growing at its weakest pace in nearly three decades, the revisions could fuel scepticism about the credibility of Chinese data with some analysts suspecting authorities may be massaging the numbers to achieve Beijing’s ambitious targets.

In a statement, the National Bureau of Statistics (NBS) said the change in the size of 2018 GDP will not significantly influence the calculation for the 2019 growth rate.

Yet some analysts suggest the nominal nudge may actually not be so nominal after all.

Despite “NBS stressing that the current round of revisions is the result of the census uncovering previously unrecorded activity, it’s hard to ignore the fact that it will also help them meet official growth targets,” said Julian Evans-Pritchard, Senior China Economist at Capital Economics, in a note.

In previous revisions real growth has almost always been revised upwards, he said.

Indeed, growth of about 6.2% is seen needed for the whole of this year and the next to meet the Communist Party’s longstanding goal of doubling GDP and incomes in the decade to 2020.

Such a rate of expansion would be a stiff ask given the 6.0% GDP growth logged in the third quarter – the slowest pace since 1992 – and with many analysts tipping the pace to slip below 6% in 2020.

A slowdown in demand at home and abroad has weakened the world’s second-biggest economy, in part with business investment and factory activity hit by a trade war with the United States.

China routinely revises its annual GDP data. Days before GDP data for 2018 was released in January, the statistics bureau cut its final 2017 growth figure to 6.8% from 6.9%.

China’s fourth National Economic Census, released on Wednesday, included “richer” data points that showed more business entities and a bigger total asset base in 2018 than assumed under earlier GDP estimates, Li Xiaochao, deputy head of the statistics bureau, told Reuters earlier this week.

Revisions to historical GDP figures will also be made, Li told reporters.

The services sector contributed more to GDP in 2018 than the original data had indicated, the statistic bureau said. Nominal GDP includes changes in prices due to inflation, so it is usually higher than adjusted, or real GDP.

MASSAGING NUMBERS TO HIT TARGETS?

Analysts say that without further information from the NBS, it’s hard to calculate the impact of the latest adjustments on the 2018’s real GDP or the GDP growth rate for that year.

But a rough estimate of an adjusted real GDP growth in 2018 might be 8.9%, compared to an original reading of 6.6%, said Chaoping Zhu, Global Market Strategist at J.P. Morgan Asset Management, in a note.

The government’s target range for 2019 growth is 6%-6.5%. The economy expanded 6.4% in the first quarter, 6.2% in the second and 6.0% in the third – the weakest pace since 1992.

If the 2018 figure is revised up, the government might be more tolerant of an economic slowdown next year and set a lower growth goal in 2020, said Zhu.

As the deadline for doubling the size of the economy draws nearer, it’s become increasingly clear that the target was “too ambitious,” said Evans-Pritchard.

“Our research suggests that political pressure to meet growth targets has encouraged the National Bureau of Statistics (NBS) to massage the GDP deflator in recent years.”

The GDP deflator is the ratio of nominal to real GDP.

In an email to Reuters, Louis Kuijs, head of Asia economics at Oxford Economics, said he would not discount the possibility of the NBS massaging the data. However, an upward revision by the NBS is neither surprising nor unreasonable, he said, noting that newly included sectors in statistical coverage tend to grow quickly.

“Also, outside of China, revisions of the size of economies are almost always upwards,” he said.

A paper published by the U.S.-based Brookings Institution earlier this year said China had overestimated nominal and real growth rates by about 2 percentage points between 2008 and 2016.



Euro zone needs to strengthen domestic demand: ECB’s Lagarde By Reuters



FRANKFURT (Reuters) – The euro zone needs to strengthen domestic demand, including via greater public investment, if it is to withstand weakness abroad, the European Central Bank’s new President Christine Lagarde said on Friday.

“The answer lies in converting the world’s second largest economy into one that is open to the world but confident in itself – an economy that makes full use of Europe’s potential to unleash higher rates of domestic demand and long-term growth,” Lagarde said.

She reaffirmed the ECB would do its part by continuing “to support the economy and respond to future risks” while monitoring “the side effects” of its easy money policy.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Bacon’s Moore Capital to return client capital after 30 years


(Reuters) – Louis Moore Bacon, the billionaire hedge fund manager whose macroeconomic bets on currencies, interest rates and other securities earned his Moore Capital Management LP double-digit returns over 30 years, will stop investing for outside clients, according to a letter sent to investors on Thursday.

“Although this has not been an easy decision,” Bacon wrote in the letter seen by Reuters, “it will allow me the space to step away for significant periods of time when my other interests abound without the ongoing weight and responsibility of looking after public investors’ capital.”

A spokesman for Moore verified that the letter was authentic but declined further comment.

The Financial Times had previously reported the development, citing unnamed sources familiar with the matter.

After returning outside capital, the New York-based firm will continue to invest on behalf of Bacon, whose net worth was valued at $1.5 billion by Forbes, and other Moore principals, according to the letter.

Bacon, 63, acknowledged “disappointing results” for his main funds in recent years amid “challenging trading conditions” for his core strategy based on “macro” movements of currencies, interest rates and other securities globally.

He also noted that competition for talent and pressure to lower fees had “led to a challenging business model” for funds like Moore.

Moore is not alone. Raising and keeping capital and finding lucrative investment opportunities has become increasingly difficult for hedge funds this decade, amid fierce competition and central bank-fueled stock market gains. That environment have prompted a number of prominent fund managers, including Highfields Capital to Hoplite Capital, to shut.

Moore’s main funds have returned low single-digits so far this year, according to the letter. Other global macro hedge funds have gained 5.33% in 2019, according to Hedge Fund Research, after low single-digit returns in 2016 and 2017 and a 4% loss in 2018.

Despite recent setbacks, Bacon said he was proud of his long-term record of annualized returns of 17.6% and 15%, net of fees, for his main Remington and Moore Global Investors funds.

Bacon wrote that the funds from which he was returning capital will have cumulatively paid out around $19 billion to investors, a massive sum that few hedge fund firms can match.

Moore managed $8.9 billion as of Dec. 31, according to a regulatory filing, down from about $14 billion in 2010. The current percentage of outside capital was unclear.

‘ONE OF THE GIANTS’

Bacon, who founded Moore in 1989, has long been considered a legend among macro traders, along with billionaires Paul Tudor Jones, Stanley Druckenmiller and George Soros. Soros and Druckenmiller also returned outside capital earlier this decade.

“Louis Bacon will go down as one of the giants of our industry. He was one of the earlier innovators in the genre of Global Macro,” Druckenmiller said in a statement to Reuters on Thursday. “To not only survive, but thrive in our industry for 30 years is an outstanding achievement.”

Added hedge fund pioneer Julian Robertson: “The hedge fund industry is losing one of its brightest stars.”

On Wall Street, Bacon is known to value order and efficiency. He has a reputation for quickly getting out of losing trades and keeping mum about his strategies.

Bacon, originally from Raleigh, North Carolina, got his start in the 1980s as a clerk on the New York coffee, cocoa and sugar exchanges. He later moved to Shearson Lehman Hutton as a futures broker, where he got business from big names including Soros, whose global-macro investing style he adopted for Moore.

More recently, Bacon has helped a number of his investment staff manage their own funds. He plans to continue to launch in-house funds by Moore’s best performing portfolio managers, the letter said.

Bacon is known as an environmental conservationist. He helped found clean water group Waterkeeper Alliance and has protected more than 210,000 acres (84,984 hectares) of land, according to his charitable foundation.

“This privatization,” Bacon wrote, “will allow me more personal time for a large family, philanthropic pursuits and to continue to develop a number of sports oriented properties – all with the flexibility to ‘stay in the picture’ or not as things develop.”

Reporting by Lawrence Delevingne and Svea Herbst; Editing by David Gregorio, Bill Berkrot and Marguerita Choy



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China’s Xi says he wants to work out initial trade deal with U.S.


BEIJING (Reuters) – China wants to work out an initial trade agreement with the United States and has been trying to avoid a trade war, President Xi Jinping said on Friday, but is also not afraid to retaliate when necessary.

FILE PHOTO: China’s President Xi Jinping looks on during a joint statement with Brazil’s President Jair Bolsonaro after a bilateral meeting during the BRICS summit in Brasilia, Brazil November 13, 2019. REUTERS/Ueslei Marcelino

Economists warn that a prolonged trade dispute between the world’s two largest economies is elevating risks to the global economy by disrupting supply chains, curtailing investment and curbing business confidence.

Completion of a phase one deal could slide into next year, trade experts and people close to the White House have told Reuters, with Beijing asking for more extensive tariff rollbacks and Washington countering with increased demands of its own.

“We want to work for a ‘phase one’ agreement on the basis of mutual respect and equality,” Xi told representatives of an international forum, according to a pool report.

“When necessary we will fight back, but we have been working actively to try not to have a trade war. We did not initiate this trade war and this is not something we want,” he said.

Xi was responding to questions from representatives of the New Economy Forum organized by Bloomberg LP at the Great Hall of the People in Beijing.

China has invited top U.S. trade negotiators for a new round of face-to-face talks in Beijing, the Wall Street Journal reported on Thursday, citing unidentified sources. It also said Beijing hoped the talks could take place before next Thursday’s Thanksgiving holiday in the United States.

U.S. officials have indicated they would be willing to meet in person but have not committed to a date, the report said, and they would be reluctant to travel for the discussions unless China made it clear it would make commitments on intellectual property protection, forced technology transfers and agricultural purchases.

Officials from Beijing had suggested Xi and his U.S. counterpart Donald Trump might sign a deal in early December.

Some experts said the next date to watch was Dec. 15, when U.S. tariffs on about $156 billion in Chinese goods are set to take effect, including holiday gift items such as electronics and Christmas decorations.

“As we always said we don’t want to start the trade war but we are not afraid,” Xi said.

Reporting by Ryan Woo; Editing by Kim Coghill and Paul Tait



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Chainalysis Reportedly Cuts 39 Jobs Aiming to Boost Profit Margins By Cointelegraph


Chainalysis Reportedly Cuts 39 Jobs Aiming to Boost Profit Margins

Blockchain analytics firm Chainalysis is reportedly letting go of 39 of its employees in order to become more profitable.

On Nov. 21, Coindesk reported that Chainalysis is cutting its workforce by nearly 20%, eliminating positions across the board to the tune of 39 employees laid off. According to Maddie Kennedy, Chainalysis’ director of communications, the research and development team had to bear the brunt of it.

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Dollar keeps safe-haven bid amid trade ‘headline fatigue’ By Reuters



By Tom Westbrook

SINGAPORE (Reuters) – The dollar held overnight gains on Friday, as investors clung to the safe-haven pending developments in Sino-U.S. trade negotiations and amid a growing skepticism about reports of progress in the talks.

Movements were slight as investors also looked to a slew of global manufacturing surveys published later in the day for clues on how deeply the U.S.-China trade dispute is hurting the world’s economy.

The greenback crept higher against the Japanese yen to 108.58 yen and was steady against the euro () at $1.1064. Antipodean currencies were flat on the dollar, with the buying $0.6789 and the $0.6404.

Against a basket of currencies () the dollar last treaded at 97.993.

“Trade is the elephant in the room,” said Ray Attrill, National Australia Bank’s head of FX strategy, though he added that “headline fatigue has set in,” limiting volatility in the market’s reaction to new information.

Investors had earlier factored in the prospect that a partial truce could be agreed at a mid-November summit in Santiago. But that summit was canceled and the path forward is now unclear.

China will try hard to resolve the dispute, Commerce ministry spokesman Gao Feng told reporters on Thursday.

The Wall Street Journal also reported that top U.S. negotiators had been invited to Beijing for a new round of face-to-face talks, further raising hopes and risk appetite.

However trade experts and people close to the White House told Reuters that negotiations could slide into next year.

“With the constant barrage of seemingly contradictory stuff, the market’s given up trying to second-guess the next headline,” said Attrill. “We’ll trade it once we know what’s happening.”

China’s yuan, which is highly sensitive to trade news, was stable at 7.0303 per dollar in offshore trade .

Elsewhere, the rising dollar kept the British pound below $1.30, while a manifesto from the British Labour Party setting out radical plans to raise tax and nationalize infrastructure also weighed. Sterling last traded at $1.2916.

Purchasing managers indexes are due for Germany, the Eurozone, Britain and the United States later on Friday, offering a reading on the globe’s battered manufacturing sector.

“The current narrative has global growth slowing to year end,” said Michael McCarthy, chief markets analyst at brokerage CMC Markets in Sydney. “So the real potential is if we see surprises on the upside…it could have direct impact on Euro-U.S. dollar.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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