News 

Dollar holds gains as investors cling to trade hopes

“The dollar hit a month-high against the euro overnight and steadied near that level at $1.012 on Wednesday” writes Midwest Communications Inc for 95kqds.com. It slipped a little lower to 98.309, though moves were modest as investors waited for more concrete trade news.SINGAPORE (Reuters) – The dollar clung to most of its recent gains on Wednesday after U.S. President Donald Trump said a trade deal with China was “close” but offered no new details on negotiations to send the greenback higher. Source: 95kqds.com

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‘Insta-billionaire’: A 24-year-old pharma heir who parties with celebrities became richer than Donald Trump overnight

“A 24-year-old who parties with celebrities became richer than Donald Trump overnight after his parents gifted him a stake in their pharmaceuticals company worth about $3.8 billion, according to Bloomberg” writes Theron Mohamed for businessinsider.my. Eric Tse became an “insta-billionaire” after Sino Biopharmaceutical‘s billionaire founder Tse Ping and his wife, Cheng Cheung Ling, gave him a fifth of the business, Bloomberg reported.He’s not only passed Trump ($3.1 billion) but also Starbucks’ founder Howard Schultz ($3.5 billion), and he’s worth far more than Snapchat’s co-founder and CEO Evan Spiegel ($2.1 billion). Source:…

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Markets News 

Funding market strains resurface as repo rates stay elevated

“The overnight repo rate spiked as high as 2.26%, according to one estimate” writes Sunny Oh for marketwatch.com. The repo rate usually closely tracks the central bank’s benchmark interest rate as they both are considered sources of short-term borrowing.This compared with the effective fed funds rate, which stood at 1.90% on Oct. 15.Strains in short-term lending markets popped up again on Wednesday as the cost of borrowing funds overnight in return for high-quality collateral, or the repo rate, shot up on Wednesday.Hedge funds and banks use the repo market to…

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News Regulators 

Powell sees cooler US hiring in possible hint of rate cuts

“In his speech, Powell also said the Fed plans to renew its Treasury security purchases to pump more cash into overnight money markets” reports thebusinessjournal.com. That step is intended to help keep short-term rates at their target level and isn’t needed to support the economy, the Fed chairman added.Corporate tax payments due at the end of the quarter and bond sales by the federal government had soaked up enough cash to send the overnight rates sharply higher. Source: thebusinessjournal.com

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Markets News Regulators 

The Fed says it will continue overnight repos of at least $75 billion through November 4

“There’s even been discussions that the Fed is considering a permanent solution to calm the storm in money markets” writes Finanzen Net Gmbh for businessinsider.com. The New York Fed said Friday that it will continue to offer daily overnight repurchase agreement operations between October 7 and November 4 with a maximum limit of at least $75 billion.The announcement comes after a number of efforts to stabilize money markets and contain interest rates that began in September. Source: businessinsider.com

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News Regulators 

New York Fed extends schedule for repo operations to Nov. 4

“The New York Fed said it wouldextend its schedule of overnight and more longer-term repurchasing agreement operations” writes Sunny Oh for marketwatch.com. It would continue to offer overnight repos of at least $75 million every day through Nov. 4. The central bank was forced to step in to contain the stresses in funding markets, and has since lent funds to cash-starved corners of the financial system through regular repo operations. Source: marketwatch.com

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