10 things you need to know before European markets open

Good morning! Here’s what you need to know on Monday.

Goldman Sachs is preparing plans to move around 2,000 British jobs overseas if the UK loses its financial passporting rights after Brexit, according to the Sunday Times. The newspaper cited an unnamed City sources as saying that the investment bank is looking at moving a third of its 6,000 strong UK workforce to mainland Europe in the event of a “Hard Brexit.”

A Deutsche Bank exec says its €46 trillion derivatives book isn’t as risky as it sounds. Deutsche Bank is continuing to cut back the size of its derivatives book, which is not as risky as investors may believe, Chief Risk Officer Stuart Lewis told German weekly paper Welt am Sonntag. “The risks in our derivatives book are massively overestimated,” Lewis told the paper.

Hillary Clinton and Donald Trump faced off Sunday night in the second of three presidential debates before Election Day on November 8. The debate was a town hall-style affair. Half of the questions were posed by pre-selected, uncommitted voters and the other half by the debate’s moderators, CNN anchor Anderson Cooper and ABC’s chief global affairs correspondent, Martha Raddatz. Clinton and Trump each had two minutes to respond, but both frequently went over time.

Clinton had a decisive victory over Trump in the second presidential debate on Sunday, according to a CNN/ORC instant poll. Fifty-seven per cent of 537 registered voters surveyed in the immediate aftermath of the political showdown said the Democratic nominee won the contest.

Britain will have to borrow an extra £40 billion a year after abandoning Osborne’s deficit plan, according to Deutsche Bank. One of Philip Hammond’s first moves on becoming Chancellor was to abandon predecessor George Osborne to reach a budget surplus by 2020 (collecting more in taxes than the government spends.) Even without the fiscal stimulus, abandoning the deficit reduction plan will force Britain to borrow a lot more.

Top Wall Street banks are more likely to move operations to New York than elsewhere in Europe if they move out of London post-Brexit, bosses have suggested. Jamie Dimon, chief executive of JPMorgan Chase, and James Gorman, chief executive of Morgan Stanley, told the annual meeting of the International Institute of Finance in Washington that they feared Brexit could trigger a wider crisis, adding that the UK’s exit from the EU could trigger a break-up of EU as a whole, the Financial Times reports.

Frankfurt is upping its game to attract banks that want to leave the UK post-Brexit. Germany is considering changing its labour laws to make Frankfurt a more attractive hub for banks looking to move staff out of London after Brexit, according to a report from the Financial Times, which cites people briefed on the plan.

Credit Suisse has placed five employees on leave while it carries out an internal investigation related to tax matters, the Swiss bank said on Sunday. Swiss newspaper SonntagsZeitung reported earlier the bank’s action was in connection with a U.S. investigation into Credit Suisse’s Israeli unit over possible tax evasion.

The Chinese yuan is reeling upon the resumption of trade following Golden Week holidays. The USD/CNY, onshore traded yuan, hit a session high of 6.7040 just moments ago, marking the weakest level for the yuan against the US dollar since September.

Currency traders continued to flock to the US dollar last week. According to ANZ, citing the latest Commitment of Traders (COT) report released by the US Commodity Futures Trading Commission (CFTC), net US dollar long positioning against a basket of major currencies continued to swell last week, leaving it at the highest level seen since late August.

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