| May 01, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Yesterday Henry Schwartz of Cboe Global Markets led off the program at the Options Industry Conference in Asheville, NC with his "State of the Markets" presentation, giving a well-attended session an update on mind-boggling statistics about the options markets.
I tweeted one of his slides showing exchange volume by exchange group and exchanges.
The Options Industry Conference published a short video on LinkedIn showing some of the highlights of day one of the conference with a music soundtrack.
JLN had interviewed Schwartz earlier in the day for our JLN Industry Leader video series. We also interviewed David Dooman (Dash), Kevin Darby (CQG), Meaghan Dugan (NYSE), Steve Sosnick (Interactive Brokers), Frank Bednarz (Chicago Trading Company), JJ Kinahan (IG North America) and Mike Dennis (ABN AMRO Clearing USA).
Another first time Option Industry Conference attendee (first time caller, long-time listener) is Alex Lamb of Scila AB. Alex was a participant in The Path to Electronic Trading video series with two parts to his interview: Part One, Part Two).
Alex attended the 9:00 session this morning featuring Steve Crutchfield, head of business development at Chicago Trading Company, leading a discussion on the rise of options volume with panelists Chris Larkin, managing director, head of trading and investing at E*TRADE from Morgan Stanley, Joe Mazzola, director, trading & education at Charles Schwab, and Greg Stevens, vice president at Fidelity Investments. Alex said he took his notes on his phone, put them into ChatGPT and it produced an excellent report on the session he could send on to his colleagues. There is another great use of this AI technology.
Right now there is a panel going on led by moderator JJ Kinahan, CEO of IG North America, with panelists Johnathan Hampton, director of new sales and partnerships at Exegy, Jessica Inskip, director of education and product at OptionsPlay, and Steve Quirk, chief brokerage officer at Robinhood. The session is titled "Engaging Today's Investor: Are We Evolving With Them?"
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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A PwC report, "2024 Climate Risks to Nine Key Commodities," found that more than 70% of copper, cobalt, and lithium production - all minerals crucial for clean energy - may confront heightened drought risk by 2050, compared to less than 10% currently. Food systems are also at risk; in a high emissions scenario, 90% of global rice production could endure severe heat stress (up from 75% today), while over 30% of maize and 50% of wheat might face significant drought risk. As a response, 47% of CEOs are now prioritizing safeguarding their workforces and assets against climate-related risks. View key findings and download the report HERE. ~[[SAED
Our most read stories from our previous edition of JLN Options were:
- SocGen Traders in Asia Exit After Options Bets Go Undetected from Bloomberg.
- Clear Street Adds Futures Clearing and Execution Services from MarketsMedia.
- Options Industry Conference to Cover Industry Growth, Innovation, and Regulation from Traders Magazine. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Deutsche Borse executive Thomas Book discusses three-year plan, megatrends, digital assets and more at FIA Conference
JohnLothianNews.com
Thomas Book, a member of Deutsche Bourse's executive board responsible for trading and clearing, spoke with JLN at the FIA Boca Futures Industry Conference in March about Deutsche Bourse's goals for 2026, how it plans to differentiate itself in the digital asset market, and more, as part of JLN's Industry Leaders series sponsored by Wedbush.
Watch the video »
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ICE Senior VP Trabue Bland Discusses Global Market Shifts and New Futures Strategies at FIA Conference
JohnLothianNews.com
There is a renewed focus on pricing carbon and hedging environmental risk, said Trabue Bland, senior vice president of futures exchanges at Intercontinental Exchange, during an interview with John Lothian News at the FIA International Futures Industry Conference in Boca Raton, Florida, in March. He was featured as part of the JLN Industry Leader video series sponsored by Wedbush.
Watch the video »
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Biden administration plans to loosen marijuana rules; New classification of drug comes as president tries to shore up vote among younger Americans
Oliver Barnes and James Politi and Stefania Palma - Financial Times
Joe Biden's administration is planning to reclassify cannabis as a less harmful drug with a smaller legal penalty, in a historic shift for US drug policy, said people familiar with the matter. The recommendation from the Department of Justice's Drug Enforcement Agency would remove cannabis from a list of the most dangerous drugs, including heroin and LSD, and recognise its medicinal use, putting it on par with substances such as ketamine.
/jlne.ws/49ZBw0H
****** He is trying to shore up votes among younger Americans? That would be nearly everyone.~JJL
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The Last Stock Photographers Await Their Fate Under Generative AI; Digital photography ravaged the business of taking and licensing commercial photos. Some fear AI will kill it off entirely.
Katie Deighton - The Wall Street Journal
Stock photographers who survived the disruptive advent of digital cameras and online sales are bracing themselves for the next great tech shock: generative AI. Some are predicting the worst. "The stock photography industry is going away," said Connecticut-based photographer Tony Northrup. "AI is ending it for the remaining photographers who figured out how to stay profitable."
/jlne.ws/4aZB97G
****** The stock photographers can get in the unemployment lines behind the trading floor arbitrage clerks, futures floor brokers and many others from the era of floor trading.~JJL
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How good is OpenAI's Sora video model - and will it transform jobs? The FT asked workers in animation, advertising and real estate to test rival AI systems that create short clips
Cristina Criddle and Rory Griffiths - Financial Times
OpenAI has been showcasing Sora, its artificial intelligence video-generation model, to media industry executives in recent weeks to drum up enthusiasm and ease concerns about the potential for the technology to disrupt specific sectors. The Financial Times wanted to put Sora to the test, alongside the systems of rival AI video generation companies Runway and Pika. We asked executives in advertising, animation and real estate to write prompts to generate videos they might use in their work. We then asked them their views on how such technology may transform their jobs in the future.
/jlne.ws/3JDJP7U
****** This might be the most dangerous tool ever created to fool some of the people some of the time.~JJL
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Dave & Buster's to allow customers to bet on arcade games; Adults age 18 and older will be able to place real money wagers on arcade games with friends.
Contessa Brewer - CNBC
Arcade giant Dave & Buster's is taking its games to a new level by offering social wagering on its app. Customers can soon make a friendly $5 wager on a Hot Shots basketball game, a bet on a Skee-Ball competition or on another arcade game. The betting function, expected to launch in the next few months, will work through the company's app.
/jlne.ws/4bjfBTn
***** We finally found out where all the old pit traders are hanging out - at Dave & Buster's making markets on arcade games.~JJL
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Tuesday's Top Three
Our most clicked story Tuesday was the Financial Times' Jane Street is big. Like, really, really big. Second was The Wall Street Journal's The Man in Charge of the World's Most Important Bond Market. Third was Unpacking the 20 most impactful financial regulations from the last 20 years, from The Trade.
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| Lead Stories | Bank of America Sounds Warning on Options-ETF Boom as Day Traders Plunge In; Yield-seeking investors push covered-call ETFs to $69 billion; Strategy is "as unprofitable as ever," according to BofA
Emily Graffeo and Denitsa Tsekova - Bloomberg
Over the last two years, Wall Street has convinced cautious equity investors to send billions of dollars into exchange-traded funds that use options to goose yields. A vocal chorus of analysts has been warning against this booming trade, to no avail. Assets in the derivatives-powered ETFs have quadrupled to $69 billion. Now Bank of America Corp. is joining the ranks of skeptics, saying such products often fare worse than simpler alternatives. After crunching performance data, the US bank finds that a vanilla bet on dividend-focused ETFs probably serves most investors better.
/jlne.ws/4doMXSz
CFTC announces changes to large trading reporting for futures and options; New rules will require firms to report position information for the largest futures and options traders to the Commodity Futures Trading Commission (CFTC) with an appendix specifying the substituted applicable data elements.
Wesley Bray - The Trade
The CFTC has approved updates to its large trading reporting regulations for futures and options. The updated regulations call for future commission merchants, clearing members, foreign brokers and reporting firms to report position information for the largest futures and options traders to the Commission. The finalised rules substitute the data elements listed in the CFTC's regulations with an appendix specifying applicable data elements.
/jlne.ws/3QoLuli
CFTC Approves Final Rules on Large Trader Reporting for Futures and Options
CFTC
The Commodity Futures Trading Commission today announced approval of final rules to amend its large trading reporting regulations for futures and options. These regulations require futures commission merchants, clearing members, foreign brokers, and certain reporting markets (reporting firms) to report to the Commission position information for the largest futures and options traders. The final rules replace the data elements currently enumerated in the CFTC's regulations with an appendix specifying applicable data elements. The final rules also provide for the publication of a separate Part 17 Guidebook specifying the form and manner for reporting. In addition, the final rules remove the outdated 80-character data submission standard in the CFTC's regulations. That standard will be replaced by a FIXML standard, as set out in the Part 17 Guidebook.
/jlne.ws/3JGUWgd
CFTC Approves Final Rule Amending the Capital and Financial Reporting Requirements of Swap Dealers and Major Swap Participants
CFTC
The Commodity Futures Trading Commission today announced it has approved a final rule that amends the capital and financial reporting requirements of Swap Dealers (SDs) and Major Swap Participants (MSPs). The amendments make changes consistent with CFTC Staff Letter No. 21-15 regarding the tangible net worth capital approach for calculating capital under CFTC Regulation 23.101, as well as CFTC Staff Letter No. 21-18, as further extended by CFTC Staff Letter No. 23-11, regarding the alternate financial reporting requirements for SDs subject to the capital requirements of a prudential regulator. The amendments also revise certain Part 23 regulations regarding the financial reporting requirements of SDs, including the required timing of certain notifications, the process for approval of subordinated debt for capital, and the information requested on financial reporting forms to conform to the rules. The amendments are intended to make it easier for SDs and MSPs to comply with the CFTC's financial reporting obligations and demonstrate compliance with minimum capital requirements.
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Average daily equity trading on European main markets and MTFs up 14% from last quarter; On-venue trading accounted for the majority of total addressable liquidity in the equity space for the first quarter of 2024, as indicated in AFME's latest 'equity primary markets and trading' report.
Claudia Preece - The Trade
Despite an overall 6% decrease year-on-year, the average daily equity trading on European main markets and multilateral trading facilities (MTF) for Q1 bounced back by 14% quarter on quarter, according to the Association for Financial Markets in Europe's (AFME) latest report. Addressing the current state of play across secondary markets, AFME highlighted that data trends demonstrated a deterioration in market liquidity as measured by turnover ratio - "calculated as annualised turnover value relative to market capitalisation".
/jlne.ws/3UDiUPI
Does the industry really want to be on 24/7?
The Trade
Virginie O'Shea, founder and chief executive of Firebrand Research, explores the possibility of around-the-clock trading, analysing the potential impacts it will have on markets, potential benefits, and whether demand for it exists at all. The market infrastructure community has been debating the topic of time for the last few years. How late should our markets be open? How fast should settlement be? We've moved on, a little, from trading latency to the concept of perpetual markets, but before we head down that route, we should take stock of what it actually means to our own lives.
/jlne.ws/44pnCDT
Chicago Tribune sues OpenAI and Microsoft
Ethan Baron - The Chicago Tribune
The Chicago Tribune and seven other newspapers sued Microsoft and OpenAI on Tuesday, claiming the technology giants illegally harvested millions of copyrighted articles to create their cutting-edge "generative" artificial intelligence products including OpenAI's ChatGPT and Microsoft's Copilot. While the newspapers' publishers have spent billions of dollars to send "real people to real places to report on real events in the real world," the two tech firms are "purloining" the papers' reporting without compensation "to create products that provide news and information plagiarized and stolen," according to the lawsuit in federal court.
/jlne.ws/4diuhUF
Inside Noel Quinn's shock exit from HSBC; How chair Mark Tucker came to have a third chance to choose the chief executive of Europe's largest bank
Ortenca Aliaj, Emma Dunkley and Owen Walker, Joshua Franklin and Stephen Morris - Financial Times
At a Windsor retreat for senior HSBC employees in early December, chief executive Noel Quinn made it clear he had no intention to leave the bank, three people who attended told the Financial Times. Yet during the Christmas break just weeks later, Quinn had made a decision to retire after five years in the role. The unexpected announcement on Tuesday that the 62-year-old was stepping down has not only kick-started a search for a new leader of Europe's largest bank but also set off speculation about his decision to give up the top job. Quinn blamed the intensity of a position that has seen him criss-cross between London, Hong Kong, mainland China, New York and the Middle East over the past five years.
/jlne.ws/3w6kJLP
SocGen Hong Kong traders exit after unauthorised risky bets uncovered; Two traders left French bank after it detected unauthorised options booked last year
Sarah White - Financial Times
Two Societe Generale traders in Hong Kong left the group last year after the French bank discovered unauthorised derivatives trades that could have lost it money in a severe market downturn. SocGen confirmed on Tuesday that there had been an "incident" in 2023 that had ultimately been caught by its compliance systems. The trades had taken some time to detect, a person familiar with the details said.
/jlne.ws/3UFOeNX
Japanese government spent $35bn to prop up yen, BoJ figures suggest; Central bank data all but confirms Monday's market intervention, as currency resumes slide against US dollar
Leo Lewis - Financial Times
The Japanese government appears to have deployed roughly $35bn supporting the yen on Monday, according to money market data released by the Bank of Japan. Traders and economists said the data, released on Tuesday evening, all but confirmed that the Japanese authorities had stepped into the markets on Monday shortly after the yen hit a 34-year low of just under ¥160 against the US dollar.
/jlne.ws/3UGXvVK
Jeremy Hunt warns FCA against 'naming and shaming' businesses under investigation; Rare intervention with regulator by chancellor who says proposal could go against duty to promote growth
Michael O'Dwyer, Harriet Agnew, Suzi Ring and George Parker - Financial Times
Jeremy Hunt has warned the Financial Conduct Authority against its plan to "name and shame" companies under investigation in an unusual broadside against the UK's top financial regulator. "I hope the FCA re-look at their decision," the chancellor told the Financial Times, referring to the watchdog's plan to publicly disclose the identities of companies under investigation more frequently and at a much earlier stage.
/jlne.ws/3UjSGR3
Exclusive: Citigroup sees loan book hit in climate action ramp-up, document shows
Isla Binnie, Tatiana Bautzer and Pete Schroeder - Reuters
Citigroup (C.N) could suffer billions of dollars of losses in its loan book if the world sped up efforts to tackle climate change, according to a confidential analysis prepared by the U.S. bank that was reviewed by Reuters. The analysis was drafted by Citigroup last summer as it prepared to make a submission to the Federal Reserve on how it plans to manage the impacts of climate change. Five other major U.S. banks were also required to make confidential submissions using the same instructions from the Fed.
/jlne.ws/3UEU41T
EXCLUSIVE: Rapid Addition partners with Chainlink to launch FIX-native blockchain adapter
Lauren McAughtry - Global Trading
The new development aims to support institutional digital asset trading by enabling firms to deliver messages and interact with a broad spectrum of tokenized assets, GLOBAL TRADING can reveal. "Having witnessed the crucial role played by FIX in supporting the growth of electronic trading over the last 20 years, I am truly excited by this announcement," said Mike Powell, CEO of FIX connectivity solutions provider Rapid Addition, speaking exclusively to Global Trading.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Ukraine's new ATACMS could make Crimea 'militarily worthless,' war expert says
Mia Jankowicz - Business Insider
Long-range ATACMS provided by the US to Ukraine have the potential to make Crimea "militarily worthless" to Russia, according to one military analyst. Last week, The New York Times reported that the US had secretly shipped about 100 Army Tactical Missile Systems, known as ATACMS, to Ukraine, which has reportedly already put them to use. The US has previously sent ATACMS with a shorter range, which aided Ukraine's fight last fall. But the versions sent recently can travel about 190 miles - which puts higher-value targets in Ukraine's crosshairs.
/jlne.ws/3UllWXt
Ukrainian forces near besieged Chasiv Yar say they badly need ammunition
Volodymyr Pavlov - Reuters
Ukrainian forces defending the strategic eastern stronghold of Chasiv Yar say they are still waiting for fresh ammunition after the United States approved a major military aid package, amid intensifying attacks from Russian troops and drones. Moscow's army is advancing west of Avdiivka, a city it captured in February, and its troops have reached the outskirts of Chasiv Yar, another major objective that would allow them to command higher ground and target towns and cities further to the west.
/jlne.ws/3y0oAuj
Massive drone strike suggests Ukraine is going after Russia's devastating glide bombs
Jake Epstein - Business Insider
Ukraine's massive weekend drone attack on a Russian airbase deep behind enemy lines suggests Kyiv may be trying to curb the threat of Moscow's devastating glide bombs, according to new Western intelligence. Russia has increasingly relied on glide-bomb strikes to hammer Ukrainian positions in recent months. These munitions are particularly difficult to intercept because they have short flight times, small radar signatures, and non-ballistic trajectories.
/jlne.ws/3JJgFV2
Russian forces have hit on a cheap way to foil US precision weapons in Ukraine
Chris Panella - Business Insider
Another US precision-guided weapon has apparently been foiled by Russian electronic warfare, a Pentagon official said. The munition, which was rapidly developed and transported to Ukraine, is just the latest to fail in combat, highlighting the growing challenge of countering cheap Russian jamming tactics. Last week, William LaPlante, the undersecretary of defense for acquisition and sustainment, said a new version of a US precision weapon had failed to hit Russian targets partially because of Russian electronic warfare. LaPlante told a Center for Strategic and International Studies panel that the ground-launched weapon, a version of an air-to-ground system, had been quickly developed and deployed to Ukraine after relatively limited safety testing and little operational testing.
/jlne.ws/3wk20ML
What If Russia Wins in Ukraine? Ask Georgia; A billionaire leader in Tblisi echoes Moscow as he rails against "global party of war."
Marc Champion - Bloomberg
There's been a lot of debate about what the future holds for Europe and its neighborhood if Russia's invasion of Ukraine succeeds. We already know at least part of the answer, because it's happening in Georgia. This is the small Caucasus country where President Vladimir Putin first made clear he was willing to use force to re-impose a Russian sphere of control and influence. How that war began remains controversial, and I'll get to the question later. What happened since shouldn't be.
/jlne.ws/44kvN4B
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel Won't Join Truce Talks Until Hamas Responds, Kan Says; Hamas is believed to be weighing fresh proposal: state media; Israel remains committed to invasion of Rafah, Netanyahu says
Alisa Odenheimer - Bloomberg
Israel will consider joining cease-fire talks with Hamas only when the militant group responds to the latest internationally mediated proposal for a temporary truce and hostage release, state-run Kan News reported. Citing an unidentified political official, Kan said the Israeli government is expecting an answer from the Iran-backed militant group on Wednesday evening. Under the latest terms for a pause in hostilities, Israeli forces have agreed to withdraw from parts of Gaza, according to Kan.
/jlne.ws/3wcFt4z
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | FMX-owner BGC's profit jumps on rates, energy trading
Niket Nishant and Laura Matthews - Reuters
BGC Group's first-quarter profit nearly doubled, it said on Tuesday, as investors looking to navigate the uncertainty around monetary policy pushed trading volumes higher in the brokerage's rates and energy businesses. The strong report comes less than a week after the company's FMX exchange, which is looking to take on derivatives trading giant CME Group, secured a minority investment from 10 financial market giants including Bank of America, Goldman Sachs and JPMorgan Chase.
/jlne.ws/3QmvEYI
OCC Announces Director Elections at Annual Stockholder Meeting
OCC
OCC, the world's largest equity derivatives clearing organization, today announced the election of two Class II Member Directors and a Class III Public Director, as well as the appointment of five Exchange Directors, to its Board of Directors. In addition, OCC announced the election of Andrej Bolkovic, OCC Chief Executive Officer, as the Management Director. The vote took place during OCC's annual stockholder meeting on April 19, 2024. Maria Chiodi, Managing Director in the General Counsel department at Credit Suisse Securities (USA) LLC. Ms. Chiodi joined the OCC Board of Directors in 2019. Faris Matalka, Managing Director at Charles Schwab. Mr. Matalka joined the OCC Board of Directors in 2022. The following Director was unanimously elected as a Class III Public Director for the term ending in 2027: Dr. Thomas R. Cardello, Founding Member, Venice Financial Management, LLC. Dr. Cardello joined the OCC Board of Directors in 2015. Dr. Cardello will continue to Chair the Technology Committee.
/jlne.ws/4a9d3q8
LME launches CBAM consultation and broader sustainability discussion paper
London Metal Exchange
The London Metal Exchange (LME) today announced the launch of its consultation on the proposed integration of the EU Carbon Border Adjustment Mechanism (CBAM) requirements into the LME rules in order to support the aluminium market and value chain on implementing this pivotal environmental policy. In addition, the LME has issued a discussion paper, which seeks to further develop the LME's existing sustainability agenda, seeking views on proposals to drive forward initiatives that underpin the global transition to a sustainable economy.
/jlne.ws/44nDFCe
Monthly Trading Value via CONNEQTOR Surpasses 290 billion yen
Tokyo Stock Exchange
Tokyo Stock Exchange, Inc. (TSE) launched the CONNEQTOR service, a RFQ (Request For Quote) platform, in February 2021 with the aim of improving liquidity in the ETF market. We are pleased to announce that the monthly trading value via the CONNEQTOR reached a record high of 290.8 billion yen (average daily trading value of 13.8 billion yen) in April 2024. With the expansion of the number and attributes of investors using the platform, the trading value has also continued to increase, and the platform has now grown to an average daily trading volume of over 10 billion yen. TSE will continue our efforts to develop a market that is highly convenient market environment that enables to execute smoothly and better price for investors.
/jlne.ws/4bkr5WC
Hearing Before The Disciplinary Committee: Citigroup Global Markets Inc.
Bourse de Montreal
There will be a Disciplinary Committee hearing on May 31, 2024 at 9:30 a.m. by videoconference, in order to decide on the acceptance of a settlement agreement negotiated between the staff of the Regulatory Division of Bourse de Montreal Inc. (the "Bourse") and Citigroup Global Markets Inc. (the "Respondent"), in connection with a disciplinary complaint filed against the Respondent.
/jlne.ws/3y7WwVM
ICE Aligns Midland WTI (HOU) Crude Quality Specifications to Match U.S. Physical Gulf Coast Crude Cargoes
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced that its ICE Midland WTI (ICE:HOU) futures contract is now further aligned with Midland WTI crude oil deliverable into Dated Brent and the rest of the Brent complex after ICE updated the quality specifications of the crude deliverable into the contract. The underlying crude oil quality of HOU futures now fully aligns with the globally accepted quality standard for Midland WTI crude after ICE added a maximum Iron content of 10 milligrams per kilogram (mg/kg) and replaced the combined Nickel and Vanadium maximum content with individual maximum contents of 2.0 mg/kg each. In addition, the Reid Vapor Pressure (RVP) maximum increased to 9.5 pounds per square inch (Psi).
/jlne.ws/3WleYo0
Trading Overview in April 2024
Japan Exchange Group
Japan Exchange Group released Trading Overview in April 2024. Cash Equity Market. April 2024, the daily average trading value for the Prime Market (domestic common stocks) was JPY 5.0598 trillion. The daily average trading value for the ETF market was JPY 355.9 billion.
/jlne.ws/4a0dT8k
LME Annual Dinner - Tuesday 1 October 2024
London Metal Exchange
Summary 1. This notice provides details of the LME Annual Dinner 2024 and guidance on how to book tables. Details 2. The LME Annual Dinner will take place on Tuesday 1 October 2024 at the Grosvenor House Hotel. The price per ticket is £223 + VAT, and tables seat 10 people.1 Maximum ticket allocation per member firm: Category.
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Microsoft Concern About Google's Lead Drove Investment in OpenAI
Leah Nylen and Shirin Ghaffary - Bloomberg
Microsoft Corp.'s motivation for investing heavily and partnering with OpenAI came from a sense of falling badly behind Google, according to an internal email released Tuesday as part of the Justice Department's antitrust case against the search giant. The Windows software maker's chief technology officer, Kevin Scott, was "very, very worried" when he looked at the AI model-training capability gap between Alphabet Inc.'s efforts and Microsoft's, he wrote in a 2019 message to Chief Executive Officer Satya Nadella and co-founder Bill Gates. The exchange shows how the company's top executives privately acknowledged they lacked the infrastructure and development speed to catch up to the likes of OpenAI and Google's DeepMind.
/jlne.ws/3w7mAA2
AccessFintech and BNY Mellon collaborate to tackle expected FX workflow challenges linked to T+1; The two firms aim to provide clarity on the 'predicted to settle' status of securities trades, helping enable the necessary liquidity for international clients trading US securities.
Wesley Bray - The Trade
AccessFintech is working with BNY Mellon to bring a joint solution addressing foreign exchange (FX) workflow challenges ahead of T+1 settlement scheduled to go live in North America this month. The shift to T+1 is expected to pose significant challenges for participants, with ample coverage surrounding project increases in fails rates and pressures for international participants linked to misalignment.
/jlne.ws/44rQUBV
I Tricked ChatGPT Into Being My Boyfriend. He Got Spicy Real Fast; Interactions with generative AI started out sweet but quickly moved into 'Fifty Shades' territory, despite the tools' policies; 'How about I fulfill that fantasy of yours'
Julia Munslow - Bloomberg
I was scrolling TikTok when I saw a video of a woman talking on the phone to her boyfriend, Dan. "Hey sweetheart, I'm sorry to hear you're feeling down," he said. A few swipes later, I saw another woman talking to her boyfriend-also Dan, with the exact same voice. "I like your style, darling," he told her. Dan isn't a serial cheater, "he" is a bot. Users, often young women, have been persuading OpenAI's ChatGPT and other generative-artificial-intelligence tools to act like loving, human boyfriends. Subscribers to the $20-a-month ChatGPT Plus can get responses in a humanlike voice. It is eerily like in the Spike Jonze film "Her," about a man who falls in love with an AI.
/jlne.ws/44psWXV
Amazon Gets More Fuel for AI Race; Capital spending will go up 'meaningfully,' but record operating margins driven by retail, cloud and advertising ease the pain
Dan Gallagher - The Wall Street Journal
Big tech is having a spending party this year, and the biggest tech of all won't be sitting it out. It helps that Amazon.com's investors have been there before. The sector's sales leader posted strong first-quarter results on Tuesday afternoon. Revenue growth beat Wall Street's targets across nearly all of the company's segments, while operating income more than tripled year over year to a new high of $15.3 billion, beating analyst estimates by 36%. That put Amazon's operating margin above 10% for the first time in the company's history, according to data from S&P Global Market Intelligence.
/jlne.ws/3y1G1Lb
Amazon cloud sales growth accelerates as it prepares for more AI spending; Ecommerce company's operating income more than triples as Amazon Web Services and adverts provide a boost
Camilla Hodgson - Financial Times
Demand for artificial intelligence bolstered sales growth in Amazon's cloud computing division at the start of the year, the company said on Tuesday, as executives laid out plans to spend huge sums to support the fast-growing technology. The acceleration in sales at Amazon Web Services, a critical profit driver for the ecommerce giant, came as businesses spent more on cloud computing services, including new generative AI tools. Overall, AWS is "now at a $100bn annual revenue run rate", said chief executive Andy Jassy.
/jlne.ws/4aYEF27
Amazon Reports Strong Cloud Unit Sales on Rising AI Demand; Generative AI on pace for 'multi-billion dollar' annual sales; Company gives a revenue forecast that falls short of estimates
Matt Day and Spencer Soper - Bloomberg
Amazon.com Inc.'s cloud unit posted the strongest sales growth in a year, a sign that the retailer's most profitable unit is recovering from a slump as businesses resume spending on technology projects, including artificial intelligence services. Despite the strong cloud performance, the company's sales forecast for the current quarter fell short of estimates, reflecting concern about the main e-commerce business as consumers continue to spend cautiously. Chief Executive Officer Andy Jassy in recent years has cut costs and focused on profitability in Amazon's online shopping business, laying off thousands of people and touting a more efficient warehouse network. At the same time, he's backed big investments in artificial intelligence services that Amazon expects to generate tens of billions in revenue in the coming years. Those sales are starting to materialize.
/jlne.ws/3UGWhJh
Microsoft Strikes Major Renewable Power Deal With Brookfield
Simon Casey - Bloomberg
Microsoft Corp. agreed a major long-term deal with the green energy arm of Brookfield Asset Management to supply power to the software giant as it ramps up investment in artificial intelligence. The agreement will see Microsoft support the development by Brookfield Renewable Partners of more than 10.5 gigawatts of renewable energy capacity - roughly equivalent to the output of 10 nuclear power plants - in the US and Europe.
/jlne.ws/3UHquZU
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| Cybersecurity | | Top stories for cybersecurity | Hacker Found Guilty of Leaking Finnish Therapy Records; Aleksanteri Kivimaki was convicted of the largest crime in Finland's history and sentenced to six years in prison.
Drake Bennett - Bloomberg
Today, the Finnish hacker Aleksanteri Kivimäki was found guilty in the hacking and attempted extortion of a company called Vastaamo and its clients. As detailed in depth in a feature for Bloomberg Businessweek's annual Tech Issue, the Vastaamo hack was the largest crime in Finland's history by number of victims, and Kivimäki's trial had riveted the country. At the time of the extortion attempt, Vastaamo was Finland's leading provider of psychotherapy services. The breach resulted in the release onto the internet of the private data of tens of thousands of people, including public officials and celebrities.
/jlne.ws/3UFNE2z
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| Cryptocurrencies | | Top stories for cryptocurrencies | Bitcoin Plunges. Here's Why and How Far Prices Could Fall.
Jack Denton - Barron's
Bitcoin and other cryptocurrencies were sharply lower Wednesday, falling alongside stocks amid wider market worries. Digital asset prices were below key technical levels, suggesting that further declines could be coming.
/jlne.ws/3w6KStX
What is Bitcoin mining and how does it work?
Brian Baker, CFA - Bankrate
Bitcoin mining is the process of creating new bitcoins by solving extremely complicated math problems that verify transactions in the currency. When a bitcoin is successfully mined, the miner receives a predetermined amount of bitcoin. Bitcoin is a cryptocurrency that's gained a wide following due to its wild price swings and surging value since it was first created in 2009. As prices of cryptocurrencies and Bitcoin in particular have skyrocketed in recent years, it's understandable that interest in mining has picked up as well. But for most people, the prospects for Bitcoin mining are not good due to its complex nature and high costs. Here are the basics on how Bitcoin mining works and some key risks to be aware of.
/jlne.ws/3weJYeU
Hong Kong Spot Bitcoin and Ether ETFs Garner Over $200 Million in Debut
Hope C - CoinMarketCap
On April 30, Hong Kong's spot Bitcoin and Ether exchange-traded funds (ETFs) made a successful debut, attracting more than $200 million in total assets. The Bosera HashKey spot Bitcoin and Ether ETFs have accumulated 964 Bitcoin (BTC) and 4,290 Ether (ETH), amounting to $71.94 million in assets under management. Additionally, ChinaAMC's spot Bitcoin and Ether ETFs have gathered $123.61 million in combined assets, according to Eric Balchunas, senior ETF analyst at Bloomberg.
/jlne.ws/4bjvIR2
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| Politics | | An overview of politics as it relates to the financial markets | Truth Social Grants Donald Trump a New $1.8 Billion Stock Bonus
Charley Grant - The Wall Street Journal
Donald Trump has received a new stock-grant windfall to the tune of $1.8 billion. Trump Media & Technology Group, the parent company of the Truth Social network, said in a securities filing that it had issued 36 million new shares and given them to the former president. The stock closed Tuesday at $49.93 per share, meaning the bonus has a value of just under $1.8 billion before trading opens on Wednesday.
/jlne.ws/3Qqd2Xv
Biden Paves Way for US Corn to Profit From Green Jet Fuel; Treasury Department gives guidance on tax credit for producers; Biofuel producers are counting on jet fuel to offset EV impact
Kim Chipman - Bloomberg
President Joe Biden's administration issued long-awaited guidance on the production of green jet fuel, paving the way for US corn ethanol producers to profit from the new market. The Treasury Department on Tuesday released guidance on the tax credit available for producers of sustainable aviation fuel, or SAF, a measure established as part of Biden's landmark climate law.
/jlne.ws/3JEf2aW
Beijing Braces for a Rematch of Trump vs. China; Officials are preparing for the potential of more turbulent U.S. relations and another trade war should Trump get re-elected
Lingling Wei - The Wall Street Journal
Last year, as Mike Pompeo's memoir, "Never Give an Inch," made the rounds among China's leaders, one passage in particular enraged Xi Jinping. The secretary of state under former President Donald Trump wrote that the U.S. should "grant full diplomatic recognition" to Taiwan. Xi's anger at the remark foreshadowed a broader worry coursing through Beijing: What awaits China should Trump and his inner circle regain power?
/jlne.ws/3Qt1PWh
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| Regulation & Enforcement | | Stories about regulation and the law. | Binance Founder Changpeng Zhao Gets Four Months in Prison; Sentence is far below three years requested by US prosecutors; Zhao pleaded guilty in November to violating US banking laws
Ava Benny-Morrison - Bloomberg
Binance founder Changpeng Zhao was ordered to spend four months in prison for failures that allowed cybercriminals and terrorist groups to freely trade on the world's largest cryptocurrency exchange. Zhao, 47, was sentenced Tuesday by US District Judge Richard Jones in Seattle. Dressed in a dark suit with a light blue tie, the billionaire arrived in court flanked by half a dozen lawyers. His mother and sister watched his sentencing from the front row of the courtroom.
/jlne.ws/44uH1n5
***** Here is the Financial Times version of this story.~JJL
Feds charge 'Bitcoin Jesus' with $50 million tax fraud
Jeff John Roberts - Fortune
The Justice Department announced on Tuesday it has charged Roger Ver, a well-known figure from the early days of Bitcoin, with mail fraud and filing false tax returns. In a press release announcing the charges, the agency said "Bitcoin Jesus" had evaded nearly $50 million in taxes-invoking a nickname that Ver acquired around 2010 due to his habit of gifting Bitcoins to those he met.
/jlne.ws/3JGdzAP
Dissenting Statement of Commissioner Caroline D. Pham on Large Trader Reporting Rule
CFTC
I respectfully dissent from the Large Trader Reporting Rule primarily because it raises fair notice and due process issues for future regulatory changes. The Commission is also delegating its authority to a non-existent office, which I believe is not only impermissible, but makes no sense.
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Statement of Commissioner Summer K. Mersinger in Support of Final Rulemaking Amending Part 17 Large Trader Position Reporting Rules
CFTC
I believe that it is incumbent upon the CFTC, like any regulatory agency, to continually review its rule set to evaluate whether rules are achieving their objectives, or can be improved based on experience over time, or need to be updated because they have simply failed to keep up with the times. It is that last category that applies to the large trader position reporting rules for futures and options in Part 17 of the CFTC's regulations.[1]
/jlne.ws/3JFgSZ0
Statement of Commissioner Kristin N. Johnson In Support of Final Rule Adopting Amendments to Large Trader Position Reporting Requirements
CFTC
Today, the Commodity Futures Trading Commission (Commission or CFTC) adopts amendments to large trader reports. Ensuring the integrity and transparency of these reports fosters sound derivatives markets by providing the Commission with critical information concerning the largest positional exposures in futures and options markets. I support adopting the final rule, which amends certain provisions of the Large Trader Reporting Requirements for futures and options under Commission Regulation 17.00 (a) and (g) (Final Rule).
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Statement of Commissioner Caroline D. Pham in Support of Swap Dealer Financial Reporting Rule
CFTC
I support the Capital and Financial Reporting Requirements for Swap Dealers (SD) and Major Swap Participants (MSP) Final Rule (SD Financial Reporting Rule Amendments) because it aligns the timing of financial reporting for entities that have a bank regulator or are registered with the Securities and Exchange Commission (SEC). This simplifies the filing process for these reports to minimize unnecessary costs and administrative burdens. I would like to thank Jennifer Bauer, Andrew Pai, Maria Aguilar-Rocha, Christine McKeveny, Josh Beale, Tom Smith, and Amanda Olear in the Market Participants Division for their work on the SD Financial Reporting Rule Amendments. I truly appreciate the time staff took to discuss my questions and concerns.
/jlne.ws/4bkhS0u
Statement of Commissioner Kristin N. Johnson: Ensuring Effective Capital and Financial Reporting Requirements for Bank Swap Dealers and Major Swap Participants
CFTC
Today, the Commodity Futures Trading Commission (Commission or CFTC) adopts a final rule to amend certain of the Commission's Part 23 regulations. The Commission introduces updates that underscore the critical importance of capital and reporting rules in maintaining the integrity and stability of swaps markets and broader domestic and global derivatives markets. These regulations aim to mitigate known systemic risk concerns.
/jlne.ws/4bj99vD
Fighting Financial Exploitation: FINRA's Vulnerable Adults and Seniors Team
FINRA
Senior investor protection has long been a priority for FINRA, and the Vulnerable Adults and Seniors Team (VAST) is at the forefront of FINRA's efforts in this space. On this episode, we hear from Brooke Hickman, Director of the Vulnerable Adults and Seniors Investigative Team, Michael Paskin, a manager with VAST Investigations, and Elizabeth Yoka, a manager of the VAST Intake team, to hear how the groups work with individual investors, firms, states and other regulators to prevent and detect financial exploitation of senior and other vulnerable investors.
/jlne.ws/3wcPxul
SEC Charges Former CEO of Dallas Area Cybersecurity Company with Fraud
SEC
SEC Charges Former CEO of Dallas Area Cybersecurity Company with Fraud
The Securities and Exchange Commission today filed a complaint against Jack B. Blount, the former CEO of Intrusion Inc. ("Intrusion"), for making false and misleading statements in 2020 and 2021 regarding the company's purported success in marketing a cybersecurity product, the terms of multiple contracts, and Blount's background and experience. Blount has agreed to settle the SEC's charges. The settlement with Blount follows the SEC's settled action against Intrusion in September 2023.
/jlne.ws/4bdo3Eh
Sanjay Bhandari, Vinod Singhi, Rakesh Jain; SEC Charges Virginia Resident and Two Friends with Insider Trading
U.S. Securities and Exchange Commission
Securities and Exchange Commission v. Sanjay Bhandari et al., No. 1:24-cv-00710 (E.D. Va. filed Apr. 30, 2024)
The Securities and Exchange Commission filed insider trading charges today against Sanjay Bhandari, Vinod Singhi, and Rakesh Jain, who collectively made about $70,000 in profits from trading in advance of the January 19, 2022 announcement that Zogenix Inc. would be acquired by another company. They each offered to settle the SEC's action, including by agreeing to pay disgorgement, interest, and penalties totaling over $170,000.
/jlne.ws/3WomHBY
Martin Sumichrast; Court Enters Final Judgment Against a Former North Carolina Fund Manager in Case Involving Undisclosed Conflicts of Interest
U.S. Securities and Exchange Commission
Securities and Exchange Commission v. Sumichrast, No. 3:22-cv-00246 (W.D.N.C. filed May 31, 2022)
On April 29, 2024, the U.S. District Court for the Western District of
The SEC's complaint in this litigation alleged that Sumichrast became the sole manager of Stone Street Partners, LLC, a private fund, following the death of the fund's co-manager in December 2016. Beginning in 2017, the complaint alleges, Sumichrast caused Stone Street to enter into various transactions with himself and a publicly-traded company of which he was the CEO and Chairman of the Board of Directors ("the Company"). These transactions included: (a) Sumichrast doubling his salary from Stone Street, from $100,000 to $200,000, in each of 2017, 2018 and 2019; (b) Stone Street purchasing restricted shares of the Company from Sumichrast; (c) Stone Street purchasing shares of a privately-held vaping company from Sumichrast; and (d) Stone Street purchasing from the Company shares in a microcap company shortly before the Company's initial public offering ("IPO"). According to the complaint, the microcap company was heavily in debt and at risk of failing at the time Stone Street acquired the shares, and Sumichrast arranged this transaction to remove those shares from the Company's financial statements, thereby improving the Company's chances for a successful IPO.
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Financial Services Licensee sentenced for failing to lodge annual financial reports
ASIC
Australian Financial Services Licensee Odyssey Equity Finance Pty Ltd (Odyssey) of Keilor East, Victoria, was sentenced on 24 April 2024 in the Dandenong Magistrates' Court for failing to lodge financial reports with ASIC for each of the financial years ending 30 June 2020, 2021 and 2022.
/jlne.ws/4dmPtZO
ASIC protects small business by disqualifying four directors for failures relating to the management of small proprietary companies
ASIC
During the period 1 January to 31 March 2024, ASIC has banned four directors from managing corporations following their role in the collapse of multiple small proprietary companies leaving many creditors unpaid including the Australian Taxation Office (ATO), employees and other small business creditors. Some of the directors had also engaged in illegal phoenix activity and used company funds to make payments to related parties for no commercial reason.
/jlne.ws/3Wsbu3n
Improving superannuation member services - Dealing with death benefit claims
ASIC
The way in which superannuation trustees approach their interactions with Australians can have a significant impact on people's lives, especially in times of emotional and/or financial stress. As the conduct regulator of superannuation trustees, ASIC is focused on improving interactions that Australians have with their super funds. We have commenced a dedicated multi-year project continuing over 2024 and beyond, which will look at industry practices and compliance with laws in relation to trustee administration and contact centres.
/jlne.ws/3Ulmdd2
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Archer Daniels Midland profits beat expectations; Higher processing volumes help global agricultural commodities merchant offset lower pricing
Susannah Savage - Financial Times
Archer Daniels Midland's profits fell less than expected in the first quarter, the global agricultural commodities merchant's latest update since it set out the details of a probe into its accounting practices last month. ADM reported adjusted earnings of $1.46 per share for the first quarter of 2024, down 30 per cent year on year but higher than analysts' expectations by about $0.10 per share. The Chicago-based company said lower energy prices helped reduce manufacturing costs, while its processing business also recorded higher volumes.
/jlne.ws/3UGYBRI
Why the US dollar is the world's problem (podcast)
Financial Times Unhedged Podcast - FT Trading Room
The American economy is strong - and the dollar is extremely expensive. Today on the show, we talk about how the strong dollar affects the rest of the world, pressuring importers, benefitting manufacturers, and causing capital to flow into the United States. Also we go long McDonald's and long the British pub.
/jlne.ws/3UloZPx
Reasons why the AI stock correction may be overdone; Recent sharp moves highlight the hypersensitivity of the sector to relatively benign cyclical moves
June Yoon - Financial Times
You know stocks are getting pricey when investors get jumpy about even the slightest change in earnings expectations. This can be seen in the sharp moves in AI-related stocks in recent weeks, especially the sector's top picks such as Nvidia, ASML, Arm and US and Asian chipmakers. But these need not move in step with each other Take for example, ASML. The Dutch chip equipment maker's weaker-than-expected orders sparked extreme volatility in AI-related stocks around the world. The logic seemed to be: since new orders for machines made by the world's largest advanced chip equipment maker fell short of market expectations, the outlook for artificial intelligence chip growth must also be deteriorating.
/jlne.ws/3QsBO9v
Huge supply shortages put cocoa market under strain; Traders desert futures contracts amid fears over delivery of beans next year
Susannah Savage - Financial Times
The cocoa market is coming under strain as traders grapple with a massive shortage of beans and the soaring cost of securing long-term supply contracts in the market. Prices in the most active futures contracts in New York and London for delivery later this month plunged more than 25 per cent in the past two days, before rebounding sharply, as the world's growers and buyers of cocoa struggle to manage a supply shortfall.
/jlne.ws/3UHqbNx
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | How climate policies can drive voters to the far right; Studies show that as energy prices rise, so do right-wing movements against green policies
Shannon Osaka - The Washington Post
More than a decade ago, the Netherlands embarked on a straightforward plan to cut carbon emissions. Its legislature raised taxes on natural gas, using the money earned to help Dutch households install solar panels. By most measures, the program worked: By 2022, 20 percent of homes in the Netherlands had solar panels, up from about 2 percent in 2013. Natural gas prices, meanwhile, rose by almost 50 percent. But something else happened, according to a new study. The Dutch families who were most vulnerable to the increase in gas prices - renters who paid their own utility bills - drifted to the right. Families facing increased home energy costs became 5 to 6 percent more likely to vote for one of the Netherlands' far-right parties.
/jlne.ws/4diWjiR
Gas Prices Are Putting Washington's Boldest Climate Policy at Risk; A ballot initiative would nix a program that compels big emitters to pay for their pollution, as opponents blame it for driving up fuel costs.
Anna Edgerton and Zahra Hirji - Bloomberg
When regular gas prices in Seattle blew past $5 last month, it appeared to play into the hands of conservative activists and politicians who say the surefire way to bring down fuel prices is repealing Washington state's most ambitious climate policy: a cap-and-trade program. Created under Washington's 2021 Climate Commitment Act, "cap and invest," as it's known in the state, requires companies with high emissions to pay for their pollution in a carbon market that began operating last year. It's raised roughly $2 billion to help fund state programs. November's ballot initiative I-2117, bankrolled by a wealthy Seattle-area investor, would repeal that law and prevent anything similar from taking its place.
/jlne.ws/4diUHFP
Biden Poised to Finalize New Electric Vehicle Tax Credit Rules; Full $7,500 credit won't apply to EVs with some Chinese parts; Biden administration racing to finalize rules before election
Ari Natter - Bloomberg
The US Treasury Department will unveil the final version of new rules limiting a popular tax credit for electric car buyers as soon as Friday as the Biden administration races to complete regulations ahead of the November election, according to people familiar with the matter. The rules, proposed by the administration in December, put new limits on a credit worth up to $7,500 per vehicle, a powerful incentive for drivers interested in electric cars but put off by their high prices. The requirements don't allow tax breaks for vehicles containing battery components or critical minerals from "foreign entities of concern" - government-speak for businesses controlled by US geopolitical foes such as China.
/jlne.ws/3JGcZ6b
Ireland Now Has Zero Female Listed CEOs; Lack of female leadership representation issue across Europe; Ireland's startups attract more women than listed companies
Olivia Fletcher and Jonas Ekblom - Bloomberg
Ireland has become one of only two European Union states to have no women leading any of its listed companies, in a setback for a country that has become known for achieving rapid social change in recent decades. Since Margaret Sweeney retired Tuesday as chief executive officer of Ireland's biggest private residential landlord Irish Residential Properties REIT Plc, all 31 companies listed on Euronext Dublin's website are to be headed by a man.
/jlne.ws/4aXokeh
Extreme heat shuts schools for millions, widening learning gaps worldwide
Gloria Dickie and Ruma Paul - Reuters
Hena Khan, a grade nine student in Dhaka, has struggled to focus on her studies this week as temperatures surpassed 43 degrees Celsius (109 degrees Fahrenheit) in the Bangladesh capital. "There is no real education in schools in this punishing heat," she said. "Teachers can't teach, students can't concentrate. Rather, our lives are at risk." Khan is one of more than 40 million students who have been shut out of classrooms in recent weeks as heatwaves have forced school closures in parts of Asia and North Africa.
/jlne.ws/3yaxyFe
EU investigates 'greenwashing' at 20 airlines; Environmental claims come under scrutiny, including the benefits of offsetting emissions from flying
Philip Georgiadis and Kenza Bryan - Financial Times
EU regulators have opened an investigation of 20 airlines over their potentially "misleading greenwashing practices", including the claimed benefits of offsetting emissions from flying. The European Commission said on Tuesday that it had written to the airlines and to national consumer protection authorities "identifying several types of potentially misleading green claims".
/jlne.ws/4b0stya
G7 pact to stop using coal by 2035 sets up next battle over gas supplies; Agreement marks first time rich countries have set deadline on ending reliance on the fossil fuel
Attracta Mooney - Financial Times
/jlne.ws/3UGK34k
Big oil privately acknowledged efforts to downplay climate crisis, joint committee investigation finds; Internal documents revealed by committee show companies lobbied against climate laws they publicly claimed to support
Dharna Noor - The Guardian
/jlne.ws/3UuY586
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Barclays moves to cut 'a few hundred' investment bank underperformers
Reuters
Barclays (BARC.L) has kicked off a fresh round of redundancies, cutting "a few hundred roles" at its investment bank as it ramps up efforts to tackle underperformers and reinvest in new talent, sources with direct knowledge of the matter told Reuters. The British lender, which is already engaged in a group-wide cost-cutting programme aimed at reducing costs by around 2 billion pounds ($2.50 billion), began informing employees of the intended cuts on Wednesday, one of the sources said.
/jlne.ws/4aXNsRZ
TD Bank Sets Aside $450 Million for Possible U.S. Anti-Money Laundering Penalties; Canada's second-largest bank by market capitalization says the provision is related to talks with one U.S. regulator
Paul Vieira - The Wall Street Journal
TD Bank said it would set aside $450 million for fines it is likely to face from U.S. regulators because of weaknesses with its anti-money laundering practices. Canada's second-largest bank by market capitalization said Tuesday the provision is related to talks with one U.S. regulator. Bank officials are in talks with two other regulators, and TD said the initial provision doesn't reflect other financial or non-monetary penalties that the lender could face.
/jlne.ws/4aTYl7m
Apollo Had Some Death Bets; STOLI, Delta One, CZ's sentencing and Chumbawumba at McKinsey.
Matt Levine - Bloomberg
Life insurance is, financially, a bet on your early death. If you buy a 20-year term life insurance policy with a $5 million death benefit and premiums of $25,000 a year,1 and you live for 21 more years, then you pay a total of $500,000 in premiums and get back $0 in benefits. If you buy that same policy and die the day after you buy it, you pay roughly $0 of premiums and get back $5 million of benefits. The earlier you die, the better you do. Financially. Only financially. Otherwise you'd prefer to die later.
/jlne.ws/3WlsnMO
NYCB CEO predicts a 'clear path to profitability' after disclosing first-quarter loss
David Hollerith - Yahoo Finance
Troubled regional lender New York Community Bancorp (NYCB) lost $327 million in the first quarter, but its stock soared in premarket trading as a new CEO outlined a "clear path to profitability over the following two years." The net loss was due in part to an increase in provisions set aside for future loan losses. Those increased to $315 million, compared with $170 million in the same year-ago period.
/jlne.ws/4bdKZm4
Wanted: Megabank Chief Willing to Work for Half Pay; HSBC is looking for a new CEO to run its sprawling operations at a fraction of the pay of a U.S. bank boss
Josh Mitchell - The Wall Street Journal
Help wanted: Someone to oversee $3 trillion in assets and 221,000 workers. Must be worldly, willing to travel constantly, knowledgeable about Chinese politics and able to deal with a demanding boss. Salary: Half of what you would make in the U.S. HSBC, one of the world's largest banks, is looking for a new chief executive. Its current CEO, Noel Quinn, surprised markets Tuesday when he said he would retire soon, once a successor is named.
/jlne.ws/3JGb4OX
BlackRock to launch Saudi investment firm after $5bn deal with Riyadh; Latest move by world's biggest money manager to build ties and win mandates in Middle East
Brooke Masters and Ahmed Al Omran - Financial Times
/jlne.ws/3JIqNgu
Actively Managed Funds Hemorrhage Client Cash in ESG Upheaval; Morningstar analysis shows passive strategies gain ground fast; ESG has tended to be seen as best-suited to active investing
Frances Schwartzkopff - Bloomberg
/jlne.ws/4bd2jZb
BlackRock's Plan for Your Retirement: A 401(k) With a Monthly Check; New target-date funds turn a portion of savings into payments for life
Jack Pitcher - The Wall Street Journal
/jlne.ws/4dmzjiN
Asset managers looking to shake up strategy in next two years, Northern Trust survey finds; Report reveals a pivot away from a focus on cost control to more of an emphasis on enhancing quality and accuracy.
Chris Lemmon - The Trade
/jlne.ws/4diz20v
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Hedge fund Graham Capital wants New York office as others cut space; Founder Kenneth Tropin seeks to attract 'talented people' in the city as firm marks 30th year
Sun Yu - Financial Times
Graham Capital Management is planning to expand to New York after decades as a Connecticut-based hedge fund, in a vote on the future of America's financial capital following an exodus of investment firms since the Covid-19 pandemic. "We are looking at spaces literally as we speak," Kenneth Tropin, founder and chair of the $20bn investment firm, said in an interview with the Financial Times.
/jlne.ws/3UHfprN
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Pfizer plans direct-to-consumer platform for Covid and migraine treatments; US pharma group follows Eli Lilly with website for patients to obtain medication online
Oliver Barnes - Financial Times
Pfizer is developing an online platform for patients to order medicine including anti-Covid drug Paxlovid and a migraine nasal spray, according to people familiar with the matter, in the latest push by drugmakers to cut out industry middlemen and sell straight to consumers. The website, which is expected to launch later this year, would connect customers in the US with independent telehealth consultants to prescribe the medications, while a drug-dispensing partner would fill and ship the prescriptions, the people said.
/jlne.ws/3wrtJuS
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Ukraine hopes to boost winter gas storage for Europe by 60%
Pavel Polityuk and Olena Harmash - Reuters
Ukraine hopes to store around 4 billion cubic metres (bcm) of gas for foreign companies and traders this winter, up 60% from last year, despite Russian airstrikes on the country's energy infrastructure, the head of Ukraine's state energy firm said. Storing gas helps Ukraine to collect revenues while providing Europe with additional supply flexibility after the continent cut Russian gas imports because of Moscow's invasion of Ukraine.
/jlne.ws/3WgyQZA
Greeks demand pay rises, condemn Gaza war in May Day protest
Reuters
Hundreds of Greek workers marched through central Athens on Wednesday to demand pay rises that would bring their salaries close to the European average and to protest over the war in Gaza. Ships remained docked at Greek ports and buses and metro services in the capital were disrupted as transport workers joined a 24-hour strike called by Greece's largest trade unions in the private and public sector for Labour Day.
/jlne.ws/3wgktK9
Nigerian gasoline prices soar as shortages worsen cost of living crisis
Isaac Anyaogu - Reuters
Gasoline shortages persisted in Nigeria's major cities on Tuesday, causing a sharp increase in prices and exacerbating the country's cost-of-living crisis. Prices in some retail outlets in Lagos and Abuja rose above 850 naira, while those outside major cities, such as Kano, soared above 1000 naira, though the government-owned oil firm, NNPC Ltd, which imports the products sells at an average price of 617 naira.
/jlne.ws/44uMHh2
Gulf markets drop on lower oil prices; Egypt gains
Md Manzer Hussain - Reuters
Most stock markets in the Gulf ended lower on Wednesday as oil prices fell, with investors also awaiting the U.S. Federal Reserve's policy decision later in the day for hints on its interest rate path. Oil prices declined for a third day amid increasing hopes of a ceasefire agreement in the Gaza conflict, and on rising crude inventories and production in the U.S.
/jlne.ws/3JKNeln
Argentina president's scaled-down economic package wins approval in lower house
Ryan Dube - MarketWatch
Argentina President Javier Milei's scaled-back package of reform measures designed to turn around an economy with the highest rate of inflation in the world won approval from in the lower-house of congress. The reforms will allow some state-owned companies to be privatized and make it easier for businesses to hire workers. The approval was a rare legislative victory for Milei, a libertarian economist who took office in December.
/jlne.ws/4biBWAx
Why Xi Jinping is afraid to unleash China's consumers; The pressure on Beijing to find a new growth model is acute but the president seems resistant to deeper economic reform
Joe Leahy - Financial Times
Visiting Beijing late last year, the EU's chief diplomat Josep Borrell complained that China's trade deficit with Europe was soaring even as its market became tougher for European companies to enter. "Either the Chinese economy opens more, or you may have a reaction from our side," Borrell warned.
/jlne.ws/44lJTCy
Japanese government spent $35bn to prop up yen, BoJ figures suggest; Central bank data all but confirms Monday's market intervention, as currency resumes slide against US dollar
Leo Lewis - Financial Times
The Japanese government appears to have deployed roughly $35bn supporting the yen on Monday, according to money market data released by the Bank of Japan. Traders and economists said the data, released on Tuesday evening, all but confirmed that the Japanese authorities had stepped into the markets on Monday shortly after the yen hit a 34-year low of just under ¥160 against the US dollar.
/jlne.ws/3UGXvVK
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| Miscellaneous | | Stories that don't quite fit under the other sections | 'Incredible' news for bears and wild horses as US shifts preservation plans; National Park Service will reintroduce bears to Washington's North Cascades and won't remove horses from North Dakota park
Richard Luscombe - The Guardian
Wildlife advocates are celebrating "incredible" news for the preservation of threatened bears, and a herd of historically significant wild horses, in separate north-western and upper midwestern national parks. In North Dakota, the National Parks Service (NPS) has dropped a plan that would have seen about 200 wild horses, descended from those belonging to Native American tribes who fought the 1876 Great Sioux war, rounded up and removed from Theodore Roosevelt national park.
/jlne.ws/3y0A0hK
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