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Boris Johnson’s Brexit deal bombs in Parliament, doubts arise over Carrie Lam’s tenure as Hong Kong chief executive, and things are looking “scary” for India’s shadow banks. Here are some of the things people in markets are talking about today.

Brexit Bombed

Boris Johnson’s mission to take the U.K. out of the European Union in nine days’ time was derailed as members of Parliament dramatically blocked his plan to rush the Brexit deal into law. European Council President Donald Tusk responded by saying he’d recommend the EU accept the U.K.’s request for an extension. While he didn’t set a date, his suggestion that this could be agreed without a summit pointed to accepting the British Parliament’s request for a new exit date of Jan. 31. The pound, which has been whipsawed by Brexit developments for weeks now, fell on the vote. Whether Johnson decides to use the time offered by the EU to pass his deal, or to go for an election, is now the question at hand. In any event, the chances of a no-deal Brexit are diminishing. Here’s how members of Parliament voted on Jonson’s deal.

Lam Cast Aside?

The Chinese government is drafting a plan to replace Hong Kong’s Carrie Lam with an “interim” chief executive, the Financial Times reports, citing unidentified people briefed on the deliberations. Lam’s successor would be installed by March, covering the remainder of Lam’s term should Chinese President Xi Jinping decides to carry out the plan, the paper cited the people as saying. Lam’s replacement would not necessarily stay on for a full five-year term afterwards. Potential succeeding candidates include Norman Chan, former head of the Hong Kong Monetary Authority, and Henry Tang, who has also served as the territory’s financial secretary and chief secretary for administration, the people added. Meanwhile, Hong Kong unveiled a range of relief measures worth about HK$2 billion ($255 million) to boost the economy, largely targeting tourism and the transportation industry.

Markets Mixed

Stocks in Asia headed for a mixed start Wednesday after developments on Brexit dragged U.S. shares lower with Treasury yields. The pound sank. Away from politics, it’s a huge week for earnings, with about 20% of S&P 500 Index members slated to report results. So far, the numbers have generally surprised positively, reassuring investors that companies are weathering slowing growth and the trade war. All the same, analysts are cutting estimates for next year as the dispute between the world’s biggest economies continues to take a toll. Elsewhere, oil jumped after a report that OPEC and allied crude producers will discuss deepening supply cuts next month.

Shadowy Dealings

A health check on India’s shadow banks shows the crisis in the industry is far from over. Indicators from liquidity to share performance show weakness, according to data compiled by Bloomberg as of Sept. 30. In recent weeks, another financier defaulted, it got harder for investors to cut losses in the sector’s debt and a mortgage lender altered financing plans due to waning appetite for shadow bank bonds. The troubles began last year, when major shadow bank IL&FS Group unexpectedly defaulted, prompting broader shock that made it hard for many companies to refinance debt. With banking system liquidity staying lower last month, the situation is looking “scary,” according to Ajay Manglunia, managing director and head of institutional fixed income at JM Financial Products Ltd. This month the Reserve Bank of India slashed its economic growth projection to 6.1% from 6.9%, the biggest cut in at least five years.

Sweet SoftBank Deal

WeWork’s value has tumbled, about 2,000 employees are being cut, and many investors are nursing losses after the firm’s bailout. But former Chief Executive Officer Adam Neumann still leaves the company as a billionaire. SoftBank is taking control of the once high-flying startup. It’s part of a rescue financing plan that will see Neuman sever most of his remaining ties with the company he co-founded, but allow him to sell slightly less than $1 billion of stock to the Japanese conglomerate, according to people familiar with the matter. The eleventh-hour deal throws a lifeline to WeWork parent We Co., which was on the verge of running out of cash after a failed public offering in September. 

What We’ve Been Reading

This is what’s caught our eye over the past 24 hours.

• FBI interrogation tricks help this fund manager see through CEO lies.
• Russia will help Turkey establish a safezone in Syria.
• This cashed-up Australian pension fund is eyeing U.S. offices and apartments.
• Trump tied Ukraine aid directly to probing Biden, an envoy said.
• UBS pulled in $16 billion from its rich Asian clients. 
• Asia’s red-hot bond funds are raising risks for retail investors.
• The flying taxis of the future look like toys come to life.

To contact the editor responsible for this story: Alyssa McDonald at amcdonald61@bloomberg.net

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