| August 22, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Congratulations to Patty Schuler, senior vice president of business development at BOX Options, for receiving the STA Women in Finance (WIF) Mentor of the Year Award. A longtime STAC member and past STA governor, Schuler played a key role in launching the STA WIF initiative and has inspired women across the industry. She will be honored at the STA WIF Symposium on September 18th in Orlando, which marks the start of STA's Annual Market Structure Conference.
It looks like Miami International Holdings, Inc. can push off its IPO for a little longer, as today it announced it received a strategic investment of $100 million from Warburg Pincus. And subject to certain conditions, Warburg Pincus can kick in more booty. This will certainly help MIH in its aggressive growth plans, including building a diversified revenue stream across multiple asset classes and geographies. The money will also help fund the construction and fit-out of a physical trading floor in Miami, Florida for MIAX Sapphire, MIH's fourth national securities exchange for trading U.S. multi-listed options.
The U.S. Securities & Exchange Commission has mandated the clearing of certain treasuries and repos by 2026, prompting participants in the cleared derivatives markets to prepare for this change. On October 15 in New York, FIA Forum: Treasury Clearing 2024 is a half-day forum at BNP Paribas' headquarters that will explore new clearing models and the practical implications of treasury clearing. Sponsorship opportunities are available, and inquiries can be directed to Toni Vitale Chan, vice president of business development +1 312.636.2919.
FIA and FIA Japan are hosting their first forum in Tokyo on October 10, focusing on key issues in exchange-traded and centrally cleared derivatives. The half-day event includes panel discussions and networking with over 200 industry professionals. Registration is free, and there are opportunities for sponsorship and exhibits to engage with the Japanese derivatives community. Learn more and register HERE.
In the latest edition of his ongoing commentary, "That's Why We Did That: The Business of this Business", David Klotz of MetroTrade explains the rationale behind establishing their retail Introducing Broker (IB) despite widespread skepticism. He addresses concerns about competition, regulatory challenges, and industry decline, arguing that brokers still play a vital role in the futures market. Klotz emphasizes the importance of brokers in managing customer risk, compliance, and providing essential services like client acquisition and education. He also highlights the need for competition in the industry to improve transparency, liquidity, and market fairness. Despite industry consolidation and declining numbers of registered participants, Klotz believes there is still room for new players to contribute meaningfully to the market.
Do you feel rich? According to a Bloomberg story, a 2024 survey by Charles Schwab found that Americans now believe it takes a net worth of $2.5 million to be considered wealthy, a 14% increase from last year's $2.2 million. Baby boomers set the highest bar at $2.8 million, while millennials think $2.2 million suffices. The survey also found that the average net worth needed to feel "financially comfortable" dropped to $778,000, after peaking at $1 million in 2023. Gen X respondents cited the highest comfort level, needing $873,000. The survey reached 1,000 Americans aged 21-75.
The Wall Street Journal published a story yesterday titled "How Taylor Swift Fans Broke Economics" with the subtitle "Swifties have the same mental biases as the rest of us, making them reluctant to sell even at eye-watering prices." Taylor Swift fans, or "Swifties," have disrupted the economics of ticket resale due to their reluctance to sell even at extremely high prices, driven by psychological biases like the endowment effect, status-quo bias, and loss aversion. Despite tickets for her Eras tour soaring to over eight times their face value, many fans refuse to sell, valuing what they own more simply because they have it. This reluctance to sell has made the secondary market for her tickets dysfunctional. The phenomenon also ties into broader issues, such as the political and economic scrutiny of Live Nation and Ticketmaster, which faced backlash over their handling of Swift's U.S. tour ticket sales.
Here are excerpts from in front of FOW's paywall from some recent stories: ICE has achieved a significant milestone by becoming the first exchange to facilitate trades in European risk-free rate (ESTR) options, marking a new phase in the competitive market for these financial instruments. Meanwhile, LCH's SwapAgent has added SEB as its first Swedish bank member, following the recent inclusion of Mizuho Bank. Transaction Network Services (TNS) has expanded its US equity options coverage by connecting to the newly launched MIAX Sapphire Options Exchange. Despite concerns over China's economic outlook, exchanges remain optimistic about the metals sector, with activity continuing to thrive.
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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Our most read stories from our previous edition of JLN Options were:
- Navigating Regulatory Challenges: An Interview with CFTC Commissioner Summer Mersinger from John Lothian News.
- Breaking Records and Comfort Zones: Rama Pillai's Kilt Challenge Journey from John Lothian News.
- Crowded Bitcoin Derivatives Bets Spur Warning of 'Short Squeeze' from Bloomberg. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Breaking Records and Comfort Zones: Rama Pillai's Kilt Challenge Journey
JohnLothianNews.com
In a lively interview at FIA's IDX in London, John Lothian News sat down with SGX Managing Director Rama Pillai to discuss his participation in the FIA's IDX Gala Kilt Challenge, a fundraising effort that is part of the charity event supporting Futures for Kids. The conversation explored Pillai's motivations, experiences, and the impressive fundraising success he achieved.
Watch the video »
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Navigating Regulatory Challenges: An Interview with CFTC Commissioner Summer Mersinger
JohnLothianNews.com
In a recent interview at FIA's IDX, John Lothian News sat down with CFTC Commissioner Summer Mersinger for the JLN Industry Leader series. The interview covered a wide range of topics relevant to the current state and future of commodity futures trading regulation.
Watch the video »
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LaSalle Street Move Scouts Forward Fundraiser
www.tinyurl.com/LaSalle4Scouts
On September 25, the Pathway to Adventure Council of the Boy Scouts of America is hosting the LaSalle Street Move Scouts Forward event at the Chicago Board of Trade Building. This annual tradition, dating back to 1971, brings together professionals from LaSalle Street to support Scouting in our community. The highlight of the evening will be a pinewood derby race. You'll have the opportunity to build your own car or lease one at the event. It's a fantastic way to tap into your competitive spirit while enjoying cocktails and delicious food with colleagues and friends. Your participation will directly benefit Scouting programs that help develop leadership skills and character in our youth. There are various sponsorship levels available to suit your preferences. The event will be held at Ceres, with plans to move outdoors if weather permits. It's a perfect opportunity to network, have fun, and make a difference.
Click Here to Register »
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What You Can Do To Protect Your Personal Information
Dawn Bystry - Social Security Administration
With various reports of data breaches involving Social Security numbers in the media, we'd like to remind you about the importance of protecting your personal information. Someone illegally using your Social Security number (SSN) and possibly assuming your identity can cause many problems. What to do if you suspect your Social Security number has been stolen. Identity thieves can use your SSN and other personal information to apply for loans and credit cards and open cellphone and utility accounts in your name. If you believe your information has been stolen and you may be a victim of identity theft, you can:
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****** I suggest you start with this disguise.~JJL
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Online brokerage Webull targets young Asian traders ahead of Nasdaq IPO
South China Morning Post
Online trading platform Webull, set to go public through a US$7 billion special-purpose acquisition company (SPAC) deal this year, is gearing up to capture a new wave of individual investors in Asia as it intensifies its global expansion efforts. The company aims to ride its success in the US market to vault to the top ranks of trading platforms worldwide, according to Anthony Denier, Webull's group president.
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***** Building the book before your IPO is a great strategy and Asia is a target rich environment for traders.~JJL[
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Is Elon Musk the Bankers' Moby Dick? Not Yet; His $44 billion buyout of Twitter has been painful for lenders - but it's not the end of the story.
Paul J. Davies - Bloomberg
Call me Ishmael. The biggest question about an investment banking client like Elon Musk is whether he turns out to be a Moby Dick. They're rare beasts, the giant whales of finance. Multi-billionaires with a plethora of entrepreneurial and investment interests that have the potential to be a gushing spout of repeatable fees aren't easy to find. So when bankers spot one, they obviously keep pursuing it as long as they can - even if they take a few hits along the way.
/jlne.ws/3YSKVW4
*****Just as Captain Ahab was consumed with Moby Dick, banks can't resist pursuing Musk, despite the risks.~JJL
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Wednesday's Top Three
Our top story on Wednesday was the corrected link to the FIA's statement "FIA responds to SEBI consultation on strengthening the index derivatives market" from August 19, 2024. Second was A Lincoln Park mansion was once listed at $50 million. Here's what it sold for 8 years later, from Crain's Chicago Business. Third was the notice from the Circuit Court of Cook County, Illinois, Chancery Division, canceling the status date previously set for August 22 for the member class action lawsuit against the CME.
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| Lead Stories | Chinese Stock Markets Head for Third Year of Record Delistings; Forty firms have already lost listed status so far in 2024; Forced delistings could harm investors: Shanghai Prospect
Bloomberg News
China's stock markets are set for a third straight year of record delistings driven by the jump in IPOs over the past decade and tighter rules introduced to weed out weaker members. A total of 40 firms have already been removed from the Shanghai and Shenzhen bourses this year through Wednesday, and another nine have said they are also likely to be ejected, data compiled by Bloomberg show. That puts the total on course to beat the previous all-time high of 45 set in 2023.
/jlne.ws/3AtyXrK
US Probes How Western Asset Allocated Trades for Client Accounts; Criminal investigation said to look at 'cherry-picking' scheme; Firm's veteran investor takes leave of absence amid probes
Ava Benny-Morrison and Silla Brush - Bloomberg
Federal prosecutors in New York are investigating whether a Western Asset Management executive allocated winning trades to favored accounts, as part of a criminal probe into a practice known as "cherry-picking." The probe is being led by the US Attorney's Office in Manhattan, which is investigating a trading practice that involves allocating lucrative trades to favored clients and less profitable trades to others, according to people familiar with the matter. The US Securities and Exchange Commission is also conducting a separate probe.
/jlne.ws/4fYKMGT
Selling financial freedom: a brash breed of influencers appeal to Gen Z investors; Private jets, Lambos and selling trading courses for £150 a month - something doesn't add up in the world of the 'hustle bros'
Siddharth Venkataramakrishnan - Financial Times
The Blockchain Boy freely admits that his world of financial influencers is a murky one. The 23-year-old Floridian, whose real name is Lucas Dimos, has a TikTok following of more than half a million where he discusses cryptocurrencies and which tokens he thinks will rise and fall. "Obviously [financial influencers] have a bad reputation, which is somewhat well-earned most of the time," he says. "You kind of get to see what someone's moral character is like." The videos posted by financial influencers online are often cringeworthy at best. "If Pablo Escobar can make billions without computers and AI, how are you still struggling in this day and age to make a poxy 10K per month," boasts 29-year old Luke Desmaris, in a video in which he walks stiffly to the balcony of a Dubai flat, set to a remix of the theme from The Godfather.
/jlne.ws/4duT47y
Deutsche Bank settles with 60% of claimants in more than decade-long Postbank case; German lender expects EUR430mn boost to profits after deal in one of its longest-running legal disputes
Patricia Nilsson - Financial Times
Deutsche Bank has reached settlements with 60 per cent of claimants in a more than decade-long dispute over its acquisition of Postbank, paving the way to an expected EUR430mn boost to its pre-tax profits in the third quarter. Germany's biggest lender announced late on Wednesday that it had reached a deal with more than 80 plaintiffs in one of its longest-running legal disputes, including the largest individual plaintiff representing "about a third of all claims".
/jlne.ws/3WZHIBB
Copper Is Flooding Into US as Flash-Squeeze Chaos Reverberates
Mark Burton - Bloomberg
When copper surged toward a record high in New York in May, a ship was in the Pacific Ocean carrying a raw form of the metal from Chile to top buyer China. By the time the Ricarda arrived in Shanghai in June, the global copper market had been upended by a short squeeze. It then received an unusual request: Reload with more copper in China - a country that typically needs to import vast volumes to meet its needs - and take it back to the US, where the metal was fetching unprecedented premiums as the market reeled from the squeeze.
/jlne.ws/46YNmZb
Wamco's Longtime Bond King Thrust Into Spotlight He Shunned; Ken Leech takes leave of absence amid SEC, DOJ investigations; A key fund that he helped manage has struggled in recent years
Silla Brush and Michael Mackenzie - Bloomberg
For three decades, Ken Leech was the other Bond King, the quiet one. While investors hung on every word of other California bond bigwigs such as Bill Gross, Leech shunned the limelight to help build Western Asset Management Co. into one of the world's most formidable fixed-income shops, rivaling the likes of Pacific Investment Management Co. and BlackRock Inc. On Wednesday, the very foundations of the $381 billion firm were shaking.
/jlne.ws/4dwGjt3
MSCI axes dozens more Chinese stocks from global indices; Move will increase weighting of other emerging market countries, such as India
Julienne Raven Lingat - Financial Times
MSCI has removed dozens of Chinese securities from its global benchmarks for the third consecutive quarter, in a move that will increase the weighting of India and other Asian markets in emerging markets indices. The US index giant will remove 60 constituents from the flagship MSCI China index, which covers about 85 per cent of the entire global equities universe, including H shares, red chips and American depositary receipts, according to its latest quarterly review published this week.
/jlne.ws/4dxSYfw
TD takes $2.6 billion hit on US probe, sells Schwab shares
Christine Dobby and Amy Or - Bloomberg
Toronto-Dominion Bank (TD.TO, TD) is setting aside $2.6 billion to cover fines it expects to pay for failures in its money-laundering controls, and the company sold part of its stake in Charles Schwab Corp. to fund it. Including a $450 million provision announced in April, the lender now estimates it will pay $3 billion related to its US compliance lapses.
/jlne.ws/3YPxNRD
China's money laundering crackdown heightens risk for crypto investors, USDT traders
South China Morning Post
China is closely monitoring the use of virtual assets in money laundering activities, according to the country's highest court, in a move that legal experts say could increase the risk of prosecution for trading cryptocurrency on the mainland. Using virtual assets to transfer or convert criminal proceeds is among a range of money laundering methods that violate China's criminal law, according to a judicial interpretation published on Monday by the Supreme People's Court and the main agency responsible for legal prosecution, the Supreme People's Procuratorate. The top court's judicial interpretation increases the legal risks faced by mainland Chinese cryptocurrency investors when making trades, Shao Shiwei, a lawyer at Shanghai-based Mankun Law Firm, wrote in a post on WeChat.
/jlne.ws/4cHomXE
Ex-FTX Insider Salame Says US Broke Deal on Girlfriend Probe; Salame has asked judge to vacate conviction, plea agreement; Prosecutors label Salame claims as self-serving and inaccurate
Ava Benny-Morrison and Chris Dolmetsch - Bloomberg
Former FTX executive Ryan Salame has asked a US judge to either vacate his conviction or block any indictment of his girlfriend, alleging prosecutors reneged on a deal to stop investigating her if he entered into a plea agreement. But the government lawyers who brought the criminal cases against FTX insiders say there was no such deal and labeled Salame's allegations false and incomplete. The one-time boss of FTX's Bahamas subsidiary made his sensational claims in a federal court filing Wednesday in New York, almost three months after he was sentenced to 7 1/2 years in prison for his role in illegal activities at the cryptocurrency platform before it collapsed.
/jlne.ws/3XhiWNB
U.S. Crude Oil Stockpiles Fall More Than Expected; U.S. crude oil stockpiles were down by 4.6 million barrels in week ended Aug. 16
Anthony Harrup - The Wall Street Journal
U.S. crude oil inventories dropped more than expected last week as refineries increased their capacity use, according to data released Wednesday by the U.S. Energy Information Administration. Commercial crude oil stocks excluding the Strategic Petroleum Reserve were down by 4.6 million barrels at 426 million barrels in the week ended Aug. 16, and were about 5% below the five-year average for the time of year, the EIA said. Analysts surveyed by The Wall Street Journal had expected crude stockpiles to fall by 1.5 million barrels.
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Asset managers split on approach to FCA's unbundling rules; Following the UK's Financial Conduct Authority (FCA) confirming final rules, the likelihood is for less of a regulatory clash between the US, the EU and the UK going forward, according to Substantive Research.
Claudia Preece - The Trade
When it comes to the FCA's unbundling rules, the buy-side are falling into one of three categories - a core of potential early adopters, a large 'wait and see' group and an entrenched group of sceptics, according to findings from Substantive Research. In light of the final rules, the potential early-adopter group has doubled to 18.2%, up from 9.1% while the group of managers which are neutral and 'waiting to see' has grown slightly from 42% to 45%.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russia appears to be using wired, unjammable fiber-optic drones that could fix a big problem its operators have faced in this war
Chris Panella - Business Insider
Some of Russia's newer drones appear to feature a modification that could help solve a pressing problem for operators in this war. The drones look to be guided by fiber-optic cables that make the unmanned systems immune to jamming. The introduction of these drones into combat would mark the next stage in the drone arms race, which has both sides rushing to adapt to new challenges.
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Ukraine Needs More Than Missiles From the West; Frustration with sanctions is growing. The US and Europe must offer third countries more carrots to ensure continued compliance.
Mihir Sharma - Bloomberg
When Prime Minister Narendra Modi makes his first visit to war-torn Ukraine this week, he will likely argue for a swift end to the conflict. Modi's India has positioned itself as "the voice of the Global South" - he held another developing-world summit last week - and he will pass on the message the country believes it hears from its fellow emerging economies. It's one the West should heed. The longer the war drags on, the harder it is to keep the rest of the world in line. Last week, Kazakhstan's foreign minister told Bloomberg that his country, which borders both Russia and China, can no longer "blindly follow" sanctions requirements that are crippling its economy. Kazakhstan is no enemy of the West, and it is not alone. If the world is to stay onside long enough for Ukraine to last out Russian aggression, the US and Europe will have to offer countries more carrots, not just sticks.
/jlne.ws/4cASp3a
A Warning From Onboard the 'Old Piles of Junk' Ferrying Russia's Oil Across the Baltic Sea
Sanne Wass, Hayley Warren, Tom Fevrier, Julian Lee, Niclas Rolander - Bloomberg
Mikael Pedersen gets a front-row view of Moscow's floating oil economy nearly every time he goes to work. The Danish transit pilot boards tankers and container ships traveling through the Scandinavian country's waters - many of them on their way from Russian ports to world markets - to help them navigate the narrow and difficult straits.
/jlne.ws/4cCVDmI
Nuclear Watchdog Sees Chernobyl-Style Risk at Kursk Reactor; Kursk operating same reactor model that melted down in 1986; IAEA's Grossi says he's enormously concerned, plans to visit
Jonathan Tirone - Bloomberg
The United Nations' nuclear watchdog said it's enormously concerned by fighting near a Russian nuclear power plant because the old Soviet reactors in operation are particularly exposed. The Kursk Nuclear Power Plant has been thrust onto the front line of the war between Russia and Ukraine after an incursion by Kyiv's forces placed them within artillery range, according to International Atomic Energy Agency Director General Rafael Mariano Grossi.
/jlne.ws/3SYRWRm
Russian Army Presses On in Ukraine Despite Kursk Incursion; No plan to switch significant forces from Ukraine, person said; Ukraine's Zelenskiy meets with his top general near border
Bloomberg News
Russia is pressing ahead with an offensive in eastern Ukraine even as it struggles to repel a cross-border incursion into its territory by Kyiv's army. Russian military commanders have decided not to redeploy significant forces from the front lines in Ukraine's eastern Donbas region to help dislodge the Ukrainian assault in the Kursk region, said a person close to the Kremlin with knowledge of the discussions.
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Eleven killed in Israeli strike on Gaza's Beit Lahiya, Palestinian news agency says
Reuters
At least 11 people were killed in an Israeli strike on a residential building in the northern Gaza town of Beit Lahiya in the early hours of Thursday, official Palestinian news agency Wafa said.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | SIX Launches New Flag to Help Identify Paris Agreement Aligned Equities
SIX
SIX has introduced the new 'SIX 1.5 °C Climate Equity' flag to help investors identify companies whose existing business models and future plans are aligned with limiting global warming to 1.5°C above pre-industrial levels, as outlined in the Paris Agreement. Whether a company meets the relevant requirements must be confirmed by an approved reviewer. Companies listed on SIX Swiss Exchange can apply for the voluntary flag from today. To earn the flag, a company must provide SIX with a confirmation from an approved reviewer that it meets all flag requirements. Currently, two approved reviewers are available: S&P and SGS. The flag is valid for one year and must be renewed annually with an updated confirmation.
/jlne.ws/3XhoA2f
ICE First Look at Mortgage Performance: Delinquencies improved in July despite Hurricane Beryl's impact on Houston homeowners
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, reports the following "first look" at July 2024 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.
/jlne.ws/3AIybqS
TNS Expands Access to all US Equity Options Exchanges with MIAX Sapphire Connectivity
TNS press release
Transaction Network Services (TNS) is expanding access to US equity options with connectivity and market data support for the newly launched MIAX Sapphire Options Exchange. This addition to TNS' existing service offering signifies its unwavering commitment to comprehensive coverage of the US listed options marketplace. TNS will provide market data and order routing access to customers in an ultra-low-latency trading environment. With the addition of MIAX Sapphire, traders using TNS can now gain access to all 18 US equity options exchanges. This provides several key benefits including enhanced market data services, resilient connectivity and streamlined operations.
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EBS Market on CME Globex Notice: August 22, 2024
CME Group
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Initial Listing of the HVO FOB ARA Range (Class II) (Argus) Futures and HVO FOB ARA Range (Class II) (Argus) vs. Low Sulphur Gasoil Futures Contracts
CME Group
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Initial Listing of the UCO FOB ARA (Argus) Futures and UCO FOB ARA (Argus) vs. Low Sulphur Gasoil Futures Contracts
CME Group
/jlne.ws/3XcBCPC
NYSE Bonds - Addition to the List of Traded Bonds
NYSE
The following bonds will be added at the opening of trading on Friday, August 23, 2024. These bonds have been added as "NYSE traded bonds" pursuant to an SEC exemption that allows the NYSE to trade certain non-convertible debt of NYSE listed companies and their wholly owned subsidiaries, without the issuer having listed those securities on the NYSE.
/jlne.ws/4dvQmyB
Shanghai International Energy Exchange has released its Circular on the Adjustment of Transaction Fee for Containerized Freight Index (Europe Service) Futures Contracts
Shanghai Futures Exchange
Starting from the trading session on August 27, 2024, for newly listed containerized freight index (Europe service) futures contracts, the transaction fee is 0.06% of the turnover, the hedging transaction fee is 0.03% of the turnover, the transaction fee for the close-out of intraday positions is 0.12% of the turnover, and the hedging transaction fee for the close-out of intraday positions is 0.06% of the turnover. In the event of any inconsistency between the Chinese version and English translation, the Chinese version shall prevail.
/jlne.ws/4dBgJDA
Circular of Shanghai International Energy Exchange on Adjusting the Trading Limit of Containerized Freight Index (Europe Service) Futures Contracts
Shanghai Futures Exchange
In accordance with the Risk Management Rules of the Shanghai International Energy Exchange, Shanghai International Energy Exchange hereby notifies the trading adjustments as follows: As from August 27, 2024, the maximum intraday position opening volume of a Non-Futures Firm Member (Non-FF Member), Overseas Special Non-Brokerage Participant (OSNBP), or client in newly listed Containerized Freight Index (Europe Service) Futures Contracts is 100 lots.
/jlne.ws/46YCkmX
Circular of Shanghai International Energy Exchange on the Trading Margin Rates and Price Limits of Containerized Freight Index (Europe Service) Futures Contract
Shanghai Futures Exchange
As from August 27, 2024, the trading margin rate of newly listed Containerized Freight Index (Europe Service) futures contract will be 18% of the contract value and the price limit will be ±16% from the settlement price of that day. On the first trading day, the price limit will be twice of that.
/jlne.ws/3Xhdavp
TMX Group CEO John McKenzie to Present at the 2024 Scotiabank Financials Summit
TMX Group
TMX Group (TSX: X) CEO John McKenzie will present at the 25th annual Scotiabank Financials Summit. DATE: Thursday, September 5, 2024 TIME: 10:35 a.m. - 11:00 a.m. ET, A link to the webcast will be available and archived in TMX's shareholder events section.
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Andreessen Horowitz leads $80 million bet on startup seeking to tame AI with copyright
Jeff John Roberts - Fortune
The arrival of the internet unleashed a wave of creativity as users found new ways to make and mix culture, but it also delivered an economic blow to authors, musicians, and news outlets. Much of the revenue that had once flowed to content producers got gobbled by tech platforms like Facebook and Google. Now, at the dawn of the AI age, many fear the same type of economic disruption is poised to happen again.
/jlne.ws/46Wmrx3
Microsoft rejigs reporting on business units, offers clarity on AI benefits
Reuters
Microsoft on Wednesday restructured how it reports results for its business units, moving some search and news advertising revenue under the Azure cloud-computing unit as the tech giant looks to offer investors a clearer picture on AI contributions. The company said revenue from the AI and speech technology services that its Nuance unit offers would now come under its productivity business - home to the Office suite of apps - instead of the intelligent cloud division.
/jlne.ws/3XfaEGY
The Year of the A.I. Election That Wasn't; More than 30 tech companies have pitched A.I. tools to political campaigns for November's election. The campaigns have been wary.
Sheera Frenkel - The New York Times
Matthew Diemer, a Democrat running for election in Ohio's Seventh Congressional District, was approached by the artificial intelligence company Civox in January with a pitch: A.I.-backed voice technology that could make tens of thousands of personalized phone calls to voters using Mr. Diemer's talking points and sense of humor. His campaign agreed to try out the technology. But it turned out that the only thing voters hated more than a robocall was an A.I.-backed one.
/jlne.ws/3ABR2Eg
OpenAI Says California's Controversial AI Bill Will Hurt Innovation; The startup wrote a letter to California State Senator Scott Wiener opposing the legislation.
Shirin Ghaffary - Bloomberg
OpenAI is opposing a bill in California that would place new safety requirements on artificial intelligence companies, joining a chorus of tech leaders and politicians who have recently come out against the controversial legislation. The San Francisco-based startup said the bill would hurt innovation in the AI industry and argued that regulation on this issue should come from the federal government instead of the states, according to a letter sent to California State Senator Scott Wiener's office on Wednesday and obtained by Bloomberg News. The letter also raised concerns that the bill, if passed, could have "broad and significant" implications for US competitiveness on AI and national security.
/jlne.ws/3Mi8lge
Tech industry taps old power stations to expand AI infrastructure; Companies need vast tracts of land and resources that industrial sites can provide
Camilla Hodgson - Financial Times
Booming demand for artificial intelligence is encouraging big tech companies and their suppliers to explore converting old power stations and industrial sites into data centres. Microsoft, Google and Amazon are pouring billions of dollars into building data centres to power cloud computing and AI services, but it has become increasingly challenging to find suitable locations with sufficient power for the energy-hungry facilities.
/jlne.ws/3yFGmE2
TNS extends access to all US equity options exchanges; The addition of the recently launched MIAX Sapphire Options Exchange builds on the firm's commitment to comprehensive coverage of the US listed options marketplace.
Wesley Bray - The Trade
Transaction Network Services (TNS) is set to expand access to US equity options with connectivity and market data support for the recently launched MIAX Sapphire Options Exchange. The move comes as part of TNS' commitment to comprehensive coverage of the US listed options marketplace.
/jlne.ws/3Axc32X
China Minsheng Bank enhances market-making capabilities through adoption of Bloomberg sell-side solutions; The move will support the bank's RMB cash bond market-making under Bond Connect and its USD interest rate swap (IRS) market-making in Hong Kong.
Wesley Bray - The Trade
China Minsheng Bank has adopted Bloomberg's sell-side execution management solution, ETOMS, alongside expanding its use of Trade Order Management Solutions (TOMS). The development will be used to support the commercial bank's RMB cash bond market-making under Bond Connect and its USD interest rate swap (IRS) market-making in Hong Kong.
/jlne.ws/3XdflRF
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| Cybersecurity | | Top stories for cybersecurity | Top US oilfield firm Halliburton hit by cyberattack, source says
Liz Hampton - Reuters
U.S. oilfield services firm Halliburton on Wednesday was hit by a cyberattack, according to a person familiar with the matter. Halliburton said it was aware of an issue affecting certain systems at the company and was working to determine the cause and impact of the problem. The company was also working with "leading external experts" to fix the issue, a spokesperson said in an emailed statement. The attack appeared to impact business operations at the company's north Houston campus, as well as some global connectivity networks, the person said, who declined to be identified because they were not authorized to speak on the record.
/jlne.ws/46VzM94
Google to help build cyber protection for Australian infrastructure
Byron Kaye - Reuters
Google and Australia's national science agency will join hands to develop digital tools that automatically detect and fix software vulnerabilities for operators of critical infrastructure, seeking to combat a surge in cyberattacks. The software for organisations such as hospitals, defence bodies and energy suppliers will be customised to be in line with Australia's regulatory environment. "Software supply chain vulnerabilities are a global issue, and Australia has led the way in legislative measures to control and combat the risks," said Stefan Avgoustakis, head of security practice for Google Cloud in Australia and New Zealand.
/jlne.ws/4dWWXSN
The trouble with deepfakes: Liar's dividend
FT Podcast
A new breed of AI generated fake pictures, videos and audio clips is spreading across the internet - content anyone with an internet connection can generate. And some of these deepfakes are now so convincing that even experts struggle to tell the difference between what's real and what has been created using artificial intelligence. In a new series, Hannah Murphy, the FT's tech reporter in San Francisco, examines the potential of deepfakes to cause chaos and asks how worried we should be and what's being done to combat their proliferation.
/jlne.ws/4cEeXQL
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| Cryptocurrencies | | Top stories for cryptocurrencies | Cryptocurrency 'pig butchering' scam wrecks Kansas bank, sends ex-CEO to prison for 24 years
Dan Mangan - CNBC
The former CEO of a small Kansas bank was sentenced to more than 24 years in prison for looting the bank of $47 million - which he sent to cryptocurrency wallets controlled by scammers who had duped him in a "pig butchering" scheme that appealed to his greed, federal prosecutors said. The massive embezzlement by ex-CEO Shan Hanes in a series of wire transfers over just eight weeks last year led to the collapse and FDIC takeover of Heartland Tri-State Bank in Elkhart, one of only five U.S. banks that failed in 2023.
/jlne.ws/4dQJVWK
Binance Hiring 1,000 as Compliance Spending Tops $200 Million; CEO Richard Teng outlined the employment goals in an interview
Olga Kharif - Bloomberg
Binance Holdings Ltd. is hiring 1,000 people this year with many earmarked for compliance roles as the crypto exchange's annual spending to meet regulatory requirements, including US oversight under a plea deal, tops $200 million. Chief Executive Officer Richard Teng, who is visiting the US to talk to monitors and officials, outlined the employment goals for the world's largest crypto trading platform in an interview with Bloomberg News in New York on Wednesday.
/jlne.ws/4fYM1px
Controversial Crypto Firm Prometheum to Treat Uniswap and Arbitrum's Tokens as Securities; The SEC-registered crypto platform is expanding its custody operation beyond Ethereum's ETH, and that means it would be holding UNI and ARB as securities.
Jesse Hamilton - CoinDesk
Prometheum is forging ahead with its strategy to comply with the U.S. Securities and Exchange Commission's view on cryptocurrency transactions by letting two more tokens into its custody operation for crypto securities, whether the rest of the industry agrees or not. The U.S. firm's custodial business will accept tokens issued by Uniswap (UNI) and Arbitrum (ARB) in addition to its earlier announcement it would custody Etherium's ether (ETH), company officials told CoinDesk. Treating these tokens as securities is meant to put Prometheum in line with what the SEC insists is the law for U.S. digital assets transactions: that the vast majority of tokens should be treated as securities under the agency's jurisdiction.
/jlne.ws/46TK3CB
Tether plans to launch a UAE dirham-pegged stablecoin
Adam James - The Block
Tether plans to launch a new stablecoin pegged to the United Arab Emirates dirham in collaboration with Phoenix Group and Green Acorn Investments. According to a press release, the token will "lead the way in seeking licensing under the UAE Central Bank's recently announced Payment Token Services Regulation." According to Tether, the dirham-pegged stablecoin will provide users with a more cost-effective and transparent way of accessing the currency and a hedge against currency fluctuations.
/jlne.ws/3Mfb49Z
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| Politics | | An overview of politics as it relates to the financial markets | How Democrats are pitching Harris as good for business (despite some unpopular ideas)
Ben Werschkul - Yahoo Finance
A series of Democratic emissaries to the business world are making a case this week that a President Kamala Harris will be good for business - in spite of unanswered questions about her economic agenda and the unpopularity of some of her ideas in C-suites. "She'll fight for you, she'll fight for all of us," Tony West, a senior vice president and chief legal officer at Uber (UBER), said of his sister in law Wednesday night at the Democratic National Convention in Chicago.
/jlne.ws/46YCGdh
The global power of Big Agriculture's lobbying; Behind the public image of farming lies a vast industry adept at securing subsidies and exemptions from environmental measures
Susannah Savage, Alice Hancock and Michael Pooler - Financial Times
In March this year, vegetable grower Florent Sebban put down his spade and headed to Paris to join mass protests by farmers. Consumers want higher-quality, more environmentally friendly food, he says, but farmers are not earning enough to keep up. "Farmers are at the centre of a potential transition, but you need to finance a stable income for them if you want them to change their practices," adds Sebban.
/jlne.ws/3Mh8X5y
Nearly Half of All Corporate Election Spending in 2024 Cycle Comes from Crypto Companies, Study Finds; Think-tank Public Citizen found that crypto companies have contributed $119 million to crypto-friendly super PACs this election cycle.
Cheyenne Ligon - CoinDesk
Nearly half of all corporate political contributions in the 2024 election cycle came from cryptocurrency companies, according to a Wednesday report from corporate influence watchdog Public Citizen. Public Citizen's report, which was based on data provided by government transparency group OpenSecrets, found that, so far, 48% of corporate election spending has come from crypto companies like Ripple and Coinbase. That's $119 million out of a total of $248 million.
/jlne.ws/3XcyhA4
VP Kamala Harris to 'support policies' to help digital assets grow, senior campaign adviser says: Bloomberg
Sarah Wynn - The Block
Vice President Kamala Harris plans to support measures to help the digital asset industry grow, said Brian Nelson, the presidential candidate's senior campaign adviser. Nelson, who serves as under secretary for terrorism and financial intelligence at the U.S. Treasury Department, said Harris would "support policies that ensure that emerging technologies and that sort of industry can continue to grow," in an interview on Wednesday with the Bloomberg News roundtable at the Democratic National Convention.
/jlne.ws/3ACOd5N
On Harris's Price-Gouging Ban, Allies and Foes May Have the Wrong Idea; The plan does not appear to amount to government price controls. It also might not bring down grocery bills anytime soon.
Jim Tankersley - The New York Times
Vice President Kamala Harris threw her support behind a federal ban on price-gouging in the food and grocery industries last week. It was the first official economic policy proposal of her presidential campaign, and it was pitched as a direct response to the high price of putting food on the table in America today. "To combat high grocery costs, VP Harris to call for first-ever federal ban on corporate price-gouging," the Harris campaign proclaimed in the subject line of a news release last week, ahead of a speech laying out the first planks of her economic agenda.
/jlne.ws/3Az77ul
OpenAI joins opposition to California AI safety bill; ChatGPT maker says legislation would harm innovation and stifle start-ups in the state
George Hammond and Hannah Murphy - Financial Times
OpenAI has hit out at a California bill aiming to ensure powerful artificial intelligence is deployed safely and suggested that new controls would threaten its growth in the state, joining a last-minute lobbying frenzy by investors and AI groups to block the legislation. The bill, SB 1047, threatens "California's unique status as the global leader in AI", the company's chief strategy officer Jason Kwon wrote in a letter to Scott Wiener, the California state senator spearheading the bill.
/jlne.ws/3T0i26D
Trump May Claim Credit for Stock Surges, but the Reality Is Far More Complicated; On Wall Street, claims that a president is responsible for the fate of the stock market are largely dismissed as bluster.
Joe Rennison and Jeanna Smialek - The New York Times
As president, Donald J. Trump continually took credit for a rising stock market, citing it as evidence that his economic policies were enriching Americans. Now, Mr. Trump is again using the stock market as a barometer - attributing its rise earlier this year to excitement about his candidacy and blaming his rival, Vice President Kamala Harris, when stocks recently wobbled.
/jlne.ws/3yOjBO9
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| Regulation & Enforcement | | Stories about regulation and the law. | Ex-Vitol Trader Pleads Guilty to Additional Bribery Charges After Conviction; Javier Aguilar, who was involved in a scheme to bribe Mexican and Ecuadorean officials, avoids
Richard Vanderford - The Wall Street Journal
A former Vitol commodities trader has pleaded guilty to additional charges following his conviction earlier this year over schemes to bribe officials at state oil companies in Ecuador and Mexico. Javier Aguilar on Wednesday pleaded guilty to conspiracy to violate the Foreign Corrupt Practices Act and commercial bribery at a hearing in federal court in Brooklyn, N.Y.
/jlne.ws/3YTYrso
Joint press release: ICAC, SFC and Macao Judiciary Police conduct joint operation against suspected cross-boundary fraud and misconduct in listed company
ICAC
The Independent Commission Against Corruption (ICAC), the Securities and Futures Commission (SFC) and the Macao Judiciary Police jointly mounted an operation codenamed "Demarcation" on August 19 and 20 in relation to suspected cross-boundary fraud and misconduct. Senior executives of a listed company in Hong Kong were allegedly involved in fictitious transactions and false accounting totalling around HK$120 million. Six premises were jointly searched by the ICAC and the SFC. During the joint operation, the ICAC also arrested seven persons, including the chairman and an executive director of the listed company. The arrestees had allegedly committed the offence of agent using documents with intent to deceive his principal under the Prevention of Bribery Ordinance.
/jlne.ws/3AwIjTH
CFTC Files Actions to Revoke Registrations of Introducing Broker, Commodity Pool Operator, and Associated Person for Violating CEA Antifraud Provisions
CFTC
The Commodity Futures Trading Commission today announced it commenced actions to revoke the registrations of Purvesh Mankad, and his affiliated entities CTAX Partners, LLC and CTAX Series, LLC. The CFTC's actions are based on the injunctions entered and findings made by the U.S. District Court for the District of Arizona in CFTC v. Mankad. [Case No. CV-21-01719-PHX-DJH.] The court found that each violated antifraud provisions of the Commodity Exchange Act (CEA).
/jlne.ws/3SYq5Ro
SEC Adopts Rule to Update Definition of Qualifying Venture Capital Funds; Rule inflation adjusts the dollar threshold to be considered a qualifying venture capital fund
SEC
The Securities and Exchange Commission today adopted a rule that updates the dollar threshold for a fund to qualify as a "qualifying venture capital fund" for purposes of the Investment Company Act of 1940. The rule updates the dollar threshold to $12 million in aggregate capital contributions and uncalled committed capital, up from the original threshold of $10 million.
/jlne.ws/4cxnhS5
SEC Obtains Final Judgments Against Two Individuals Who Helped Facilitate Multi-Million Dollar Offering Fraud
SEC
On August 21, 2024, the U.S. District Court for the Southern District of New York entered final judgments against Wayne H. McLean and Joan E. Powell for facilitating a fraudulent scheme to sell purported shares of Eastern Metal Securities (EMS). The SEC previously charged Roger Nils-Karlsson in connection with the EMS scheme that victimized thousands of retail investors worldwide.
/jlne.ws/4ec0ZH5
SEC Charges Investment Adviser and Principal with Making Misleading Statements to Investors and Breaching Fiduciary Duties to Private Funds
SEC
The Securities and Exchange Commission today announced charges against FlowPoint Partners, LLC, and its principal, Peter J. DeCaprio, for allegedly making materially misleading statements to investors about an important safeguard for four private funds that they managed and advised (the "Funds"). FlowPoint is currently headquartered in Fort Lauderdale, Florida, and was previously headquartered in Boston, Massachusetts. The parties have agreed to settle the action by, among other things, paying a total of $290,000 in penalties.
/jlne.ws/3Mn9faZ
Professional judgement at the insolvency frontline; Address by ASIC Commissioner Kate O'Rourke at the Association of Independent Insolvency Practitioners Conference, 22 August 2024.
ASIC
Good afternoon, everyone. Thank you to the Association of Independent Insolvency Practitioners (AIIP) for the invitation to speak today and I would like to acknowledge that we are meeting on Gadigal country. The key focus of my speech today is on insolvency professionals exercising their professional judgement at the insolvency frontline. Which you do, every day through the performance of your duties - where you are called on to make decisions that impact outcomes for business owners, creditors, employees and others.
/jlne.ws/471dMcL
ASIC expands strategic priorities for coming 12 months
ASIC
Australia's public and private markets and emerging financial products will form a new pillar of ASIC's expanded strategic priorities. ASIC Chair Joe Longo said the agency's latest Corporate Plan included a new pillar in its strategic priorities that underscored a commitment to strengthening integrity across Australia's markets.
/jlne.ws/3WQo6jc
CBL managing director Peter Harris ordered to pay $1.4m penalty for fair dealing and continuous disclosure breaches
FMA
The High Court has ordered Peter Harris, the former CBL Corporation Limited (In Liquidation) (CBLC) managing director, to pay a penalty of $1.4 million for continuous disclosure and misleading conduct breaches following proceedings brought by the Financial Markets Authority (FMA) - Te Mana TÄtai Hokohoko - under the Financial Markets Conduct Act 2013 (FMCA) (the Continuous Disclosure Proceeding).
/jlne.ws/4cAR9Nu
FSA Weekly Review No.599
FSA
/jlne.ws/4dp2Acp
Hong Kong sees a quarter of broad market growth, firmer ties and regulatory progress: SFC's Quarterly Report
SFC
The Hong Kong capital markets made encouraging, broad-based progress in the second quarter of 2024 as reflected by an array of data on asset management, listing, licensing and virtual assets, according to the Quarterly Report of the Securities and Futures Commission (SFC) published today. Among the notable developments for the quarter covering April-June, Hong Kong-domiciled funds showed continued momentum with assets under management (AUM) up 7% quarter-on-quarter (QoQ) as of end-June and net fund inflows up 80% QoQ for the quarter (Note 1).
/jlne.ws/3Aymt25
PwC Expects Six-Month Ban in China for Evergrande Audit; The business ban is expected to come with a large fine; PwC has been under scrutiny for its role with China Evergrande
Bloomberg News
PricewaterhouseCoopers LLP's China unit expects the Chinese government to hand down a six-month ban as part of punishment over its audit of failed property giant China Evergrande Group, according to a person familiar with the matter. The announcement is expected to be made within weeks, the person added, requesting not to be named because the matter is private.
/jlne.ws/3SZbfu6
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Mexico Becomes Traders' Nightmare as Peso Slide Deepens
Zijia Song, Maria Elena Vizcaino and VinÃcius Andrade - Bloomberg
Traders trying to buy the dip on Mexico's peso can't catch a break. Local politics, the dismantling in so-called carry trades and concerns about the US economic and political outlook are disrupting bullish calls on what was until May the best performing emerging-market currency this year. The peso is down more than 3% against the dollar this week and almost 14% in the past three months, by far the worst among peers. Its six-month implied volatility has jumped to near the highest in three years.
/jlne.ws/4dNF9db
Global investors pile into Chinese bank bonds; Overseas buyers defy Beijing authorities' unease over fear of debt market bubble; The People's Bank of China has said it is prepared to intervene in the government bond market for the first time in decades to prevent a sharp fall in long-term yields
Joseph Cotterill in London and Arjun Neil Alim and Cheng Leng in Hong Kong - Financial Times
Emerging market investors are betting that a bull run in China's bond markets has further to go, even as Beijing signals increasing discomfort with a soaring rally in government debt. China's central bank has been trying to cool a frenzy for long-term government bonds this year driven by local investors who have pushed yields down to about 2 per cent, a response to faltering consumer demand in the world's second-biggest economy. While foreign investors have cut their direct holdings of Chinese government bonds in recent months, they have instead ploughed into short-term debt issued by Chinese banks and used currency trades to boost overall yields to rates above US Treasuries, in US dollar terms.
/jlne.ws/3XgF7oh
Chicago Fed president warns falling inflation and high interest rates could make things worse
Eleanor Pringle - Fortune
It would be convenient if every member of the Federal Open Market Committee was always in agreement about what to do with the base interest rate-for Wall Street at least.
/jlne.ws/3WXh501
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | The global power of Big Agriculture's lobbying; Behind the public image of farming lies a vast industry adept at securing subsidies and exemptions from environmental measures
Susannah Savage, Alice Hancock and Michael Pooler - Financial Times
In March this year, vegetable grower Florent Sebban put down his spade and headed to Paris to join mass protests by farmers. Consumers want higher-quality, more environmentally friendly food, he says, but farmers are not earning enough to keep up. "Farmers are at the centre of a potential transition, but you need to finance a stable income for them if you want them to change their practices," adds Sebban.
/jlne.ws/3Mh8X5y
BlackRock's support for ESG resolutions plummets
edie
BlackRock supported just 4% of the shareholder proposals on environmental and social issues it voted on in 2024, down from 47% in 2021.
/jlne.ws/3AAldM0
Germany's Power-Grid Impasse Is Stalling Billions in Deals
Arno Schutze, Petra Sorge and Priscila Azevedo Rocha - Bloomberg
Two of Germany's biggest utilities are putting deals worth billions of euros on hold after the government failed to buy part of Tennet Holding BV, operator of the country's biggest power-grid network. EnBW Baden-Württemberg AG and RWE AG have delayed plans to sell their stakes in German transmission grids while they await clarity on Berlin's next steps, according to people familiar with the matter.
/jlne.ws/3MhPWjo
China and Russia drive global nuclear power capacity to record high; With as many reactors as France, China is building more while pursuing new tech
Natsuki Yamamoto - Nikkei Asia
Global nuclear power generating capacity has reached an all-time high, with China and Russia accounting for most of the world's new reactors. There were 436 operational nuclear reactors worldwide as of June, according to the nonprofit Japan Atomic Industrial Forum and other data sources. Combined capacity was roughly 416 gigawatts, surpassing the previous record of 414 GW logged in 2018.
/jlne.ws/3YQUJQx
India surpasses China to become Russia's top oil buyer in July
Nidhi Verma - Reuters
India overtook China as the world's biggest importer of Russian oil in July as Chinese refiners bought less because of lower profit margins from producing fuels, a comparison of import data showed. Russian crude made up a record 44% of India's overall imports last month, rising to a record 2.07 million barrels per day (bpd), 4.2% higher than in June and 12% more than a year ago, data on Indian shipments from trade and industry sources showed.
/jlne.ws/3yLb92d
China Cuts Back on New Permits For Coal Power as Renewables Boom
Bloomberg
China has hit the brakes on new coal-fired power projects, as the rapid take-up of clean energy proves sufficient to meet consumption growth in electricity. Just 9 gigawatts of coal power was permitted in the first half of this year, 83% less than the same period in 2023, according to a joint study released on Thursday by the Centre for Research on Energy and Clean Air, and Global Energy Monitor.
/jlne.ws/3XdUs8P
Enbridge Cuts Tolls on Oil Pipeline System Amid New Competition; Cuts come after start of expanded Trans Mountain pipeline; Oil is exported mostly to the US West Coast and Asia
Robert Tuttle - Bloomberg
/jlne.ws/4701VvO
Saudi Arabia's Sales From Oil Exports Drop to Three-Year Low; The kingdom's sales from oil fell to $17.7 billion in June; Petrodollar slump has caused the government to delay projects
Paul Wallace - Bloomberg
/jlne.ws/4dA9ziE
UK faces legal action over new North Sea oil and gas licences
Reuters
/jlne.ws/3T1jllL
California lawmaker warns of 'financial catastrophe' if oil well rules aren't enforced
Tony Briscoe - LA Times
/jlne.ws/4dR5NBp
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Guosen Securities plans to buy 53% of Vanho, heeding China's call for brokers to combine
South China Morning Post
Guosen Securities plans to buy control of a smaller rival in China's technology hub of Shenzhen, answering the government's call to consolidate the nation's 12 trillion yuan (US$1.68 trillion) brokerage industry. Shenzhen-based Guosen signed an agreement on Wednesday to buy 53 per cent of Vanho Securities in shares, according to a statement to the city's stock exchange. The financial terms of the purchase will be announced within 10 days, said Guosen.
/jlne.ws/3WW9q1Z
Citi added new section on reorganization in quarterly report following US SEC query
Reuters
Citigroup's addition of a new section concerning its multi-year reorganization to its quarterly report filed with the U.S. Securities and Exchange Commission in August, followed queries from the markets regulator. The SEC's letter to Citi, which was sent in June and disclosed on Wednesday, had asked the bank to revise future filings.
/jlne.ws/3yEMSed
Citi, Deutsche Issue Financing to Help Pemex Cover Unpaid Bills
David Wethe, Scott Squires and Todd Gillespie - Bloomberg
Citigroup Inc. and Deutsche Bank AG have provided financing to Pemex to help Mexico's state oil company pay outstanding bills to oilfield services giant SLB, according to people familiar with the matter. In return, SLB has effectively guaranteed against a Pemex default on the loan by issuing more than $1 billion of credit-default swaps to the two banks, said the people who asked not to be named discussing non-public information.
/jlne.ws/3T1i6TD
Bank of East Asia touts commitment to SMEs as it reports 20% first-half profit slump
South China Morning Post
Bank of East Asia (BEA), Hong Kong's largest family-owned lender, has pledged continuing dedication to the city's small and medium-sized enterprises (SMEs) amid concerns that many such companies are struggling with cash-flow issues. The bank, which focuses primarily on Hong Kong and mainland China, said it approved HK$2.6 billion (US$333.6 million) in SME loans via around 80 transactions in the first six months of this year.
/jlne.ws/3SYpQWu
TD Bank Sets Aside $2.6 Billion for Possible U.S. Anti-Money Laundering Penalties
Connor Hart - The Wall Street Journal
TD Bank has set aside $2.6 billion 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 Wednesday the fiscal third-quarter provision reflects its current estimate of the total fines related to these matters. The bank plans to offset part of the provision through the sale of 40.5 million shares of common stock in Charles Schwab, which would reduce TD's ownership interest in the wealth-management company to about 10% from more than 12%. The divestiture is worth $2.62 billion, based on Charles Schwab's closing price of $64.57 on Wednesday. TD said it has no current intention to sell additional shares.
/jlne.ws/3YWiGG2
Star fund manager takes leave amid accusations of cherry picking
Silla Brush and Bloomberg - Fortune
Ken Leech, the longtime Western Asset Management chief investment officer, left that role amid probes from the Justice Department and Securities and Exchange Commission into whether some clients were favored over others in allocating gains and losses from derivatives trades.
/jlne.ws/3MhzwHW
Hedge Fund Tribeca Says Weak Bank Research Fueled Its 19% Gain; Tribeca's Jun Bei Liu sees lucrative window during earnings; Liu says lack of in-depth analyst reports gives fund an edge
Harry Brumpton and Georgina McKay - Bloomberg
Australia's second-best performing hedge fund is profiting from greater market swings during earnings seasons, saying investment bank research has failed to track the ups and downs of faster-evolving industries. Jun Bei Liu, a portfolio manager at Sydney-based Tribeca Alpha Plus Fund, said the gradual retreat of equity research coverage by banks and brokerages combined with increased automated trading has created ever greater difference between the market pricing and her own views, said Liu, whose Tribeca Alpha Plus Fund generated nearly 19% returns in a year.
/jlne.ws/3Axh9fs
Fund Beats 99% of Peers With Outsized Ukraine Bond Returns; Arkaim prepares to launch a distressed EM credit hedge fund; Naftogaz, Ukraine Railways, Metinvest among top picks: Griko
Maria Elena Vizcaino and Vinicius Andrade - Bloomberg
/jlne.ws/3XhVZeo
Franklin Templeton shares sink after top bond investor takes leave amid probes; SEC is investigating co-chief investment officer of firm's Western Asset unit
Will Schmitt and Madison Darbyshire - Financial Times
/jlne.ws/3YTHD4Q
Banks Obtained Crucial Jobs Data While Report Was Delayed; Amid delay at least three banks just called and got figures; Wall Street was waiting on data to confirm rate-cut bets
Elena Popina, Matt Turner, and Natalia Kniazhevich - Bloomberg
/jlne.ws/46Yo25F
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Recruiters, beware: Narcissistic applicants are drawn to this kind of 'seductive' language in job postings
Lindsey Leake - Fortune
Every company wants to hire someone "ambitious" who "thinks outside the box," right? Who "thinks strategically" and "communicates persuasively"? While recruiters may be tempted to pepper job postings with these keywords, which seemingly describe the ideal employee, a new study suggests such "rule-bender" language is apt to attract narcissistic applicants. What's more, this type of wording entices narcissists who are more likely to engage in fraudulent or unethical behavior-particularly where accounting positions are concerned-according to researchers at the universities of Maryland, Mississippi, and South Carolina. Their findings have been accepted for publication by the journal Management Science.
/jlne.ws/3SXbV2M
Europe Office Demand Rises on Boost From Banks and Insurers; Industry benefited from large financial centers such as London; Savills warns European office investment deals are in decline
Damian Shepherd - Bloomberg
European office space take-up rose 9% in the second quarter from a year earlier, partly driven by the finance and insurance sector and the enforcement of return-to-work mandates. Firms linked to finance took the highest share of leasing activity in the first half of 2024, accounting for 25% of take-up compared with 17% in the same period a year ago, according to a report from broker Savills Plc. The City of London saw its share of leasing activity jumping to 34% from 26%.
/jlne.ws/4fYpicX
US law firms offer staff $50,000 for referrals as talent wars rage; Uptick in dealmaking triggers renewed competition for junior talent
Suzi Ring and James Fontanella-Khan - Financial Times
Top law firms in the US are offering their junior lawyers as much as $50,000 to refer acquaintances for jobs, as a renewed war for talent in the industry shows no sign of abating. A&O Shearman introduced a $50,000 bonus for US associate referrals in May, the same time its merger - between the UK "magic circle" firm Allen & Overy and New York's Shearman & Sterling - went live, the firm said.
/jlne.ws/3WYVyUE
How's Your Mental Fitness as a Boss? Be Ready for AI to Weigh In; Artificial intelligence could soon be used to suggest executives are in cognitive decline-and help them ward off scrutiny
Callum Borchers - Financial Times
Bosses already live in fear that a verbal misstep will be recorded and go viral. Now they can look forward to a new nightmare in which artificial intelligence analyzes their rhetorical stumbles and suggests they're no longer sharp enough to lead. If that sounds like the premise of a new dystopian workplace drama, consider this: The same week a halting debate performance shattered public confidence in President Biden's acuity, the journal Alzheimer's & Dementia published a study showing AI can use a person's speech patterns to forecast Alzheimer's disease with roughly 80% accuracy, six years before the condition becomes diagnosable.
/jlne.ws/3Ml8UWg
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Thailand Confirms Asia's First Case of New Mpox Virus Strain; Travelers from 42 countries to undergo screening: ministry; Tourism-reliant Thailand takes steps to prevent mpox spread
Thomas Kutty Abraham and Pathom Sangwongwanich - Bloomberg
Thailand became the first country in Asia to detect the new mutated strain of the mpox virus, as the pathogen spreads to more geographies after the World Health Organization declared the outbreak in Africa a new global health emergency. The patient who tested positive for clade Ib was a European male who arrived in Bangkok last week from Africa, according to the Department of Disease Control of Thailand's health ministry. Authorities have identified 43 close contacts of the 66-year-old patient and put them under surveillance.
/jlne.ws/3XcWGVY
Mpox Risks Heighten With Mosaic of Infection Patterns
Jason Gale and Janice Kew - Bloomberg
As disease detectives rush to central Africa to quell a mushrooming mpox contagion, they're finding a complex mosaic of infection patterns involving different viral strains and vastly different routes of infection. In the Democratic Republic of Congo's gold-rich eastern region, a newly mutated virus is spreading mostly among adults through sexual contact. In other areas of the country, an older strain is spilling from infected wildlife to humans who hunt and handle the animals, leading to a deadly explosion of cases among children. Linked to both viral pathways are infections among patients' household members and health workers caring for them.
/jlne.ws/3MiOrBu
Deaths Are Up Post-Covid, and So Are Funeral Stocks: Prognosis
Jason Gale - Bloomberg
The Business of Death: Aussies, Americans, and Brits - and no doubt people in many other nations - are dying faster than before the pandemic. Even though Covid waves are becoming less deadly, thanks mostly to increased immune protection from vaccinations and prior infections, the coronavirus remains a significant killer. And stubbornly high all-cause mortality rates indicate that its direct and indirect effects are helping drive a sustained increase in death and disease around the globe.
/jlne.ws/46VyNFE
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Thai central bank should help retail borrowers, caretaker finmin says
Reuters
Thailand's central bank should assist retail borrowers after it held its benchmark interest rate steady this week, the caretaker finance minister said on Thursday. Retail lending interest rates are too high and needed to be addressed, Pichai Chunhavajira told reporters. Minimum retail lending rates at banks are as high as 8%.
/jlne.ws/3XcqIcG
PwC braced for 6-month ban in China over Evergrande audit; Expected punishment for work on failed property developer's accounts would be toughest by Beijing against a Big Four firm
Stephen Foley, Cheng Leng, Eleanor Olcott and Wenjie Ding - Financial Times
PwC China has told clients it expects Chinese authorities to hit it with a six-month business ban that will start as early as September, as part of punishment over its audit of collapsed property developer Evergrande.
/jlne.ws/4fWbsYD
Euro zone negotiated wage growth slows, boosting ECB rate cut hopes
Reuters
Euro zone negotiated wage growth slowed last quarter, bolstering the case for another interest rate cut in September and assuaging policymakers' fears that runaway labour costs would continue to put upward pressure on inflation. Growth in negotiated wages slowed to 3.55% in the second quarter from 4.74% three months earlier, primarily because of a major slowdown in Germany, the bloc's biggest economy, data from the European Central Bank showed on Thursday.
/jlne.ws/3yOfrpv
Canada rail strike locks out 9,000 workers after labor talks failed
Abhinav Parmar and Jahnavi Nidumolu - Reuters
Canada's top two railroads locked out more than 9,000 unionized workers, triggering an unprecedented rail stoppage that could cause billions of dollars worth of economic damage and roil North American supply chains. The companies - Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) - and the Teamsters union blamed each other for the work stoppage after multiple rounds of contract talks failed to yield a new agreement.
/jlne.ws/3WQqDtI
Cash-loving Swiss reluctantly move toward a cashless future as instant payments launch
AFP via Fortune
The much-loved vertical Swiss banknotes are still used for one in every three transactions. Switzerland's new instant payment system will bolster the future of cashless payments in the country, the Swiss central bank said Wednesday after the scheme went live.
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| Miscellaneous | | Stories that don't quite fit under the other sections | Google Joins $250 Million Deal to Support Newsrooms in California; The agreement includes $70 million from the state, which needs legislative approval. Some lawmakers objected, calling for a more comprehensive solution with tech companies.
Karen Weise and Shawn Hubler - The New York Times
Google, a news industry trade group and key California lawmakers announced a first-in-the-nation agreement on Wednesday aimed at shoring up newsrooms in the state with as much as $250 million. Through a mix of funding from Google, taxpayers and potentially other private sources, the five-year deal would let Google avert a proposed state bill that could force tech companies to pay news organizations when advertising appeared alongside articles on the tech company's platform.
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