UK borrowing hit £17.4 billion in October, far above forecasts, while retail sales fell 1.1% and flash PMI data showed near-stagnant activity ahead of UK Chancellor Rachel Reeves' Autumn Budget. Economists warned the weak figures underscore a fragile economy and heighten risks that upcoming tax hikes could further depress consumer spending.

The US economy added 119,000 jobs in September, surpassing expectations, according to a delayed US Bureau of Labor Statistics report. However, the unemployment rate rose to 4.4%. The mixed results could perpetuate the uncertainty surrounding the US Federal Reserve's upcoming December policy meeting. "This isn't going to change anybody's mind," said David Seif of Nomura.

Japanese Finance Minister Satsuki Katayama has indicated possible government and Bank of Japan intervention to address the yen's sharp decline, which recently hit a 10-month low against the US dollar and an all-time low against the euro. The yen's depreciation follows the government's approval of a $112 billion economic package, raising concerns about fiscal health.

The European Commission is set to issue a formal warning to Italy over its "golden power" rules, which allow the government to block foreign acquisitions of Italian assets. The rules, originally intended to protect national security, have been expanded to include sectors such as banking and health.

US banks have reportedly shelved plans for a $20 billion bailout package for Argentina. Originally intended as a major private-sector debt facility to stabilize Argentina's finances, the plan was abandoned due to uncertainty over acceptable collateral and guarantees, as well as improved market sentiment following Argentine President Javier Milei's party's electoral victory. The banks are now considering a $5 billion short-term loan through a repo facility to help the government meet a $4 billion debt payment in January, sources say.

European Union banks could face unfair competition under new trading book capital rules as the European Commission considers a multiplier to ease market risk requirements. The proposal has divided banks, with larger banks preferring a delay and smaller ones favoring immediate implementation with adjustments.

The Financial Stability Board has urged Group of 20 members to closely monitor the rise of private credit markets and stablecoins, highlighting potential risks to financial stability. In a letter ahead of the G20 summit in South Africa, FSB Chair Andrew Bailey emphasized the need for global efforts to modernize financial regulations without compromising stability. Bailey also highlighted major economies' failure to implement global banking standards.

US Federal Reserve Governor Stephen Miran is urging the central bank to overhaul existing Wall Street regulations before addressing broader economic and balance sheet issues. Miran says that years of restrictive oversight have impacted the banking sector, calling for a review of how regulations interact with financial markets and policy implementation. Miran suggests regulatory incentives cause banks to hold excessive reserves, necessitating a larger Fed balance sheet, and advocates for banks to hold more Treasurys instead of reserves to improve earnings and reduce the perception of Fed subsidies.

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