| September 03, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Eric Gilliland, a longtime comedy writer you may have never heard of, but you certainly saw his work if you have watched U.S. television the last 30 years, has died of cancer. He was known for his work on Roseanne, The Wonder Years, Who's the Boss?, Doogie Howser, M.D., That '70s Show and My Boys. He was also my neighbor in Glenview, IL, a friend, a classmate of my younger brother's, and an incredible human being.
He died of cancer on September 1. In high school he was part of The Singing Stones, the church choir of the Glenview Community Church. My two brothers and I, my wife, and my sister-in-law were also members of the choir. In fact, the two marriages are the only two to come from the choir. Eric's sister Lisa was in my brother Scott's wedding. There are too many connections to list them all. He will be greatly missed. The outpouring of love for him on Facebook, where he was a prolific poster, is impressive in its depth, the examples of his work, and the number of lives he touched. I will leave you with an example of one of Eric's talent's: whistling. Here he is whistling with Martha Plimpton as she sings "Thunder Road" by Bruce Springsteen. He also whistled in Carnegie Hall.
Thank you to Robert Otter and Leif Strid for their contributions to the JLN MarketsWiki Education GoFundMe campaign to support our efforts to preserve industry history and the work of John Lothian News. It appears both contributed in honor of the 25th anniversary of the birth of the John Lothian Newsletter. Otter is a former broker in the soybean pit at the CBOT and is currently a co-founder and principal of Third Street AG Investments. Strid is a director of client experience at FIS
The European Energy Exchange (EEX) announced its first trades in the new Guarantees of Origin (GO) Futures market, it shared on LinkedIn. The inaugural trade was between Uniper and ENGIE for 50,000 GOs, brokered by ICAP. Another trade on the exchange involved CNR (Compagnie Nationale du Rhone) and a different counterparty for 1,000 GOs. EEX looks forward to expanding this developing cleared market.
Ukraine's central bank plans to rename the smallest unit of its currency from "kopiyka" to "shah" to eliminate ties with Russia, as the current name resembles Russia's "kopek," Bloomberg reported. This change, driven by the ongoing conflict with Russia, is symbolic, emphasizing Ukraine's break from historical associations with its eastern neighbor. The change won't impact inflation, as small coins are rarely used due to the hryvnia's devaluation. The term "shah" has historical significance, dating back to before Russian rule, and was used during Ukraine's brief independence post-World War I. The initiative requires parliamentary approval, after which new coins will be minted, circulating alongside existing ones.
Romania's stock market has become a standout performer, with the BET index showing a nearly 40% return in dollar terms over the past year, ranking it among the top five out of more than 90 global equity indexes, Bloomberg reported. Key factors driving this rally include increased interest from foreign investors, spurred by last year's $1.8 billion IPO of Hidroelectrica SA, a renewable power utility, which revived local market interest and boosted valuations. Despite Romania's slowing economy, positive factors such as interest rate cuts, controlled inflation, and expectations of an upgrade to emerging market status by MSCI are supporting continued market optimism. Further IPOs are anticipated to sustain the momentum. However, the market still needs to meet MSCI's liquidity requirements for the upgrade.
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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The Editor's Pick for the September edition of Focus, the publication of the World Federation of Exchanges, is "Empowering Investors Through Expanded Global Access to Derivatives" by Catherine Clay, executive vice president and global head of derivatives at Cboe Global Markets. In the article, Clay discusses the evolving landscape of volatility trading and Cboe's 2024 strategic initiatives. Also featured in September's Focus are articles written by Jorge Alegria, CEO of Bolsa Mexicana de Valores; Kopano Bolokwe, acting CEO of the Botswana Stock Exchange; Tony Sio, head of regulatory strategy and innovation at Nasdaq; and Kelly Feili and Tausif Khan, director of risk policy and advocacy and director of third-party risk and reporting, respectively, at DTCC. View the full edition at this link to read these and other contributions from exchange executives worldwide. ~SAED
Our most read stories from our previous edition of JLN Options were:
- CME Is Bringing Levered Bitcoin Bets to the Masses from Bloomberg.
- 0DTE options: should you bet on America's favourite? from MoneyWeek.
- VIX at 65, MOVE Above 100: All Options Considered from Bloomberg. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Eurex Expands Crypto Derivatives Offerings With FTSE Russell Indices, Targeting Institutional Investors.
JohnLothianNews.com
Eurex and FTSE Russell are expanding their cryptocurrency derivatives offerings by targeting institutional investors with new Ethereum-based products. Eurex expanded its crypto derivatives portfolio with the launch of FTSE Ethereum Index Futures and Options on August 12, 2024. These products complement Eurex's existing Bitcoin derivatives, which were launched in April 2023.
Listen to the podcast »
Gary DeWaal - Katten Muchin Rosenman LLP
Watch Video »
Shun Takato - JPX Market Innovation & Research
Watch 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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Celebrating 25 Years of the John Lothian Newsletter - A Leap of Faith in 1999
JohnLothianNews.com
Twenty-five years ago, in August 1999, I began producing this daily newsletter as a marketing and networking tool to promote my electronic trading brokerage services, Commodity Trading Advisor offerings, and my personal brand.
I was competing with large discount commodity firms that were transitioning to electronic trading, and I needed to market myself and my firm and find a way to stand out, but I didn't have many monetary resources to do so. Therefore, I had to think outside the box.
My specific goals at the time were to increase the number of my brokerage clients at The Price Futures Group, to raise funds for Defender Capital Management and Hargrave Financial Group, two CTAs I represented, and to elevate my profile amid industry changes that I felt could undermine my career path.
Read more »
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Is AI quietly killing itself - and the Internet?
Tor Constantino - Forbes
Interest in artificial intelligence continues to surge, as Google searches over the past 12 months are at 92% of their all-time peak, but recent research suggests AI's success could be its downfall. Amid the growth of AI content online, a group of researchers at Cambridge and Oxford universities set out to see what happens when generative AI tools query content produced by AI. What they found was alarming.
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***** I get confused when I ask myself questions.~JJL
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Are Large Language Models More Liberal?; A new study shows that today's AI models lean left of center.
John Nosta - Psychology Today
Technology and Artificial Intelligence are everywhere. The recent observation that large language models (LLMs) might harbor political biases adds a new level of complexity to the powerful role AI plays in society. A recent analysis took a look at this issue, revealing that many LLMs, including popular models like ChatGPT, tend to exhibit a left-of-center political orientation. This finding raises important questions about the impact of AI on public discourse, the ethical responsibilities of developers, and the future of unbiased technology.
/jlne.ws/4gctbvd
****** Don't worry, the ChatGOP is coming soon.~JJL
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China moves to 'eliminate' money worship, undesirable trends in financial sector
South China Morning Post
China's financial regulators have ordered the securities, funds and futures industries to "eliminate" undesirable trends such as money worship, extravagance and excessive speculation in the latest sign of the financial sector's ongoing painful transformation. Short-termism and the flaunting of wealth would also be curbed, Chen Huaping, vice-chairman of the China Securities Regulatory Commission (CSRC), said during the launch ceremony of the financial education promotion month on Sunday.
/jlne.ws/3X8Kh4d
****** I have never met excessive speculation, though I have heard it bandied about many times over the years. ~JJL
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Friday's Top Three
Our top clicked item on Friday was John Lothian's Celebrating 25 Years of the John Lothian Newsletter - A Leap of Faith in 1999. Second was the Statement of Commissioner Caroline D. Pham on Innovation and Market Structure, from the CFTC. Third was Japannext announces transfer of its shares between SBI Holdings and Cboe Global Markets, a press release from Cboe and Japannext.
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| Lead Stories | Citadel Securities, Jane Street on Track for Record Revenue Haul; Market makers disclose second-quarter results to their lenders; Competition heats up between the firms and biggest US banks
Paula Seligson and Katherine Doherty - Bloomberg
Citadel Securities and Jane Street Group LLC, two of the largest market-making firms in the US, are on track for record annual revenue hauls as they further encroach on the big banks' trading territory. First-half net trading revenue rose 81% to $4.9 billion from the same period a year earlier at Citadel Securities, and gained 78% to $8.4 billion at Jane Street, according to people familiar with the matter, both well ahead of the pace needed for an all-time high annual total.
/jlne.ws/3yUCTl8
Japanese trading house chief calls for government help to counter China's Asian surge; Mitsubishi boss says traditional trade stronghold of south-east Asia is under siege from Chinese companies
Kana Inagaki and David Keohane - Financial Times
The chief executive of Mitsubishi has called for a more active strategy from the government to help Japanese companies counter increasing Chinese competition in their traditional stronghold of south-east Asia. Katsuya Nakanishi said the Warren Buffett-backed trading house is on alert for decoupling risks as rising import tariffs in the US and Europe force China to expand its influence in Asean markets.
/jlne.ws/3Xsl468
The Black Hole of Private Credit That's Swallowing the Economy; What happens when credit markets "go dark"?
Tracy Alloway and Joe Weisenthal - Bloomberg
There's been a lot of talk about private credit in recent years. The market has exploded in size, and there are worries that it could be a bubble that eventually bursts and sparks disaster. But there are other negative effects from private credit that might already be happening. In a new paper called "The Credit Markets Go Dark," co-authors Harvard Law School professor Jared Ellias and Duke University School of Law professor Elisabeth de Fontenay argue that the $1.5 trillion market for private credit is already having a big impact on the economy - and not in a good way. They say that the rise of private credit marks a seismic change for corporate governance and dynamism.
/jlne.ws/3Tevvrr
The New Rules of Debt Are Totally Cutthroat; Fierce battles in what could be called the "covenant wars" are roiling the bond market as companies pit creditors against each other.
Eliza Ronalds-Hannon - Bloomberg
At the foundation of credit markets is one very basic idea: If I lend you money and you can't pay me back, I'll seize your assets and pay myself. That bargain is written into debt terms known as covenants that have long been regarded as iron-clad. But two things have happened over the past decade: Covenants grew weaker, as investors frustrated by the low interest rates prevailing in most of the market competed more fiercely than ever to lend to riskier companies that paid more in interest. And companies facing credit squeezes came up with a bag of tricks to get around some covenants, often by pitting one set of creditors against another.
/jlne.ws/4e5EXWg
The Regulatory State Is In Flux Like Never Before, and Businesses Are Hating It; With legal challenges mounting, some of Biden's most ambitious regulations face an uncertain future ahead of November's elections
Dylan Tokar - The Wall Street Journal
The fight over President Biden's regulatory agenda is in full pitch, but it could be months or even years before a winner is declared. Although some uncertainty is par for the course with elections, this year's race is dishing up an extra helping of unease for companies. As of late May, the Biden administration had issued 273 economically significant rules-more than any of the past six administrations managed to accomplish in the entire four years of their first term. Regulators have made it clear that additional rules are in the works.
/jlne.ws/3z7XIth
EU plan for buying key commodities centrally is over-reach, warn tech groups; Trading software companies fear project will make Brussels a competitor and believe tender is misconceived
Harry Dempsey in London and Alice Hancock in Brussels - Financial Times
Commodity trading platforms have lashed out at EU proposals to centralise the purchase of natural gas, hydrogen and critical minerals for being bureaucratic over-reach that will make the bloc a commercial competitor. Leading industry software suppliers have warned that the EU's plans, which would require the companies to build a new trading system and then transfer ownership to Brussels, would also undermine European efforts to foster local tech champions. They also warned that the plans were not fit for purpose for how the target commodities were traded.
/jlne.ws/3Xse9Kc
New Argentine Currency Launched to Offset Milei's Shock Therapy; The remote province of La Rioja has created its own currency, the chacho, to try to revive its moribund economy.
Ignacio Olivera Doll - Bloomberg
There are few places in all of Argentina as poor as La Rioja, a sleepy, desolate province carved out of the red-clay highlands that form the country's northwestern border with Chile. And it is here, in La Rioja, that the financial toll of President Javier Milei's shock economic therapy - a high-stakes bid to tame chronic inflation - can best be observed. When Milei slashed the monthly cash transfers from the federal government to the provinces, La Rioja went broke. In February, it fell into default. And soon the local economy had sunk into a deep recession.
/jlne.ws/3XeuyRl
T. Rowe Manager Who Predicted Yen Shock Sees Another One Coming; 'Scapegoating' of yen carry trade ignores bigger, deeper trend; BOJ hikes and impact on global capital far from simple: Husain
Ruth Carson - Bloomberg
Arif Husain says he was early in sounding the alarm on Japan's rising interest rates last year, which he described as the "San Andreas fault of finance." The head of fixed-income at T. Rowe Price is now warning that investors have "just seen the first shift in that fault, and there is more" market volatility ahead after the nation's rate hike in July helped trigger a sharp reversal of the yen carry trade.
/jlne.ws/3Z8MTSc
How to Lose Money on the World's Most Popular Investment Theme; Pity the investors in the three artificial-intelligence-themed ETFs that managed to lose money this year
James Mackintosh - The Wall Street Journal
There are lots of embarrassing ways to lose money, but it is particularly galling to lose when you correctly identify the theme that will dominate the market and manage to buy into it at a good moment. bPity the investors in the three artificial-intelligence-themed exchange-traded funds that managed to lose money this year. Every other AI-flavored ETF I can find has trailed both the S&P 500 and MSCI World. That is before the AI theme itself was seriously questioned last week, when investor doubts about the price of leading AI stocks Nvidia and Super Micro Computer e became obvious.
/jlne.ws/4cKXNRq
Appital expands European equity coverage through addition of Virtu Financial's POSIT MTF; The move will provide buy-side firms with execution capabilities for more than 21,000 equities across 24 European countries.
Wesley Bray - The Trade
Appital has expanded its European equity coverage to more than 21,000 equities across 24 European countries with the addition of Virtu Financial's POSIT MTF as a European execution venue. The firm has also added Virtu Financial as an executing broker for client flows negotiated on Appital's BookBuilder platform, offering buy-side participants improved options for executing large orders.
/jlne.ws/3XqFUCW
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Europe's ESG funds more than double defence holdings amid Ukraine war; Sector's shares have soared and asset managers in debate on whether investing in it can be seen as sustainable
Lee Harris and Sylvia Pfeifer - Financial Times
The value of European sustainable investment funds' exposure to defence stocks has more than doubled since Russia's invasion of Ukraine, as policymakers push the need for a strong defence industrial base. About a third of funds in Europe and the UK focused on environmental, social and governance issues now have EUR7.7bn invested in the sector, compared with EUR3.2bn in the first quarter of 2022, according to an analysis for the Financial Times by Morningstar Direct.
/jlne.ws/3XudV5A
US close to agreeing on long-range missiles for Ukraine; delivery to take months
Mike Stone, Patricia Zengerle and Gerry Doyle - Reuters
The U.S. is close to an agreement to give Ukraine long-range cruise missiles that could reach deep into Russia, but Kyiv would need to wait several months as the U.S. works through technical issues ahead of any shipment, U.S. officials said. The inclusion of Joint Air-to-Surface Standoff Missiles (JASSM) in a weapons package is expected to be announced this autumn, three sources said, though a final decision has not been made. The sources declined to be named because they are not authorized to discuss the topic.
/jlne.ws/4dE4MNj
Ukraine carries out one of its biggest-ever drone attacks on Russia
Brad Lendon and Isaac Yee - CNN
Ukraine launched one of its biggest-ever drone attacks on Russia over the weekend, hitting a refinery and power station deep inside the country, according to videos posted on social media and geolocated by CNN. The short videos show plumes of smoke rising from targets in Moscow and the neighboring Tver region.
/jlne.ws/478AAaF
Ukraine Allies Expect Iran to Ship Missiles to Russia Imminently
Alex Wickham and Alberto Nardelli - Bloomberg
European officials expect Iran to deliver ballistic missiles to Russia imminently, a move that could prompt a swift response from Ukraine's allies, people familiar with the matter said. Iran has provided Russia with hundreds of drones during Russia's 2 1/2-year war against Ukraine, but the potential transfer of ballistic missiles would mark a worrying development in the conflict, according to the people, who spoke on condition of anonymity to discuss confidential assessments.
/jlne.ws/47daP9d
Putin says Russia advancing fast in eastern Ukraine
Reuters
Russian forces are advancing faster in eastern Ukraine than they have done for a long time, taking several square kilometres per day, President Vladimir Putin said on Monday as Moscow's forces tried to smash through a Ukrainian defensive line. Ukrainian President Volodymyr Zelenskiy acknowledged the difficulties in the east, particularly near the city of Pokrovsk, but said Russia's military had made no further advances in the past two days.
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Zelenskiy Says Russian Strike Kills 41 in Central Ukraine; Ukrainian leader says more than 180 also wounded in attack; Two Russian ballistic missiles hit military education facility
Aliaksandr Kudrytski - Bloomberg
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Hamas says hostage guards in Gaza have been operating under new instructions
Nidal al-Mughrabi and Jaidaa Taha - Reuters
Hamas' armed wing said on Monday that since June the group has been operating under new instructions on how to handle hostages should Israeli forces approach their locations in Gaza. The announcement comes days after the Israeli military recovered the bodies of six hostages from a tunnel in the southern Gaza city of Rafah, saying they had been shot dead by their captors as Israeli forces got close.
/jlne.ws/4cPvtNY
Hersh Goldberg-Polin's Funeral Brings Pleas for Forgiveness and Hopes for Change; The U.S.-Israeli citizen was laid to rest on Monday in a hilltop cemetery in Jerusalem amid thousands of mourners
Anat Peled and Shayndi Raice - The Wall Street Journal
Rachel Goldberg-Polin said a final goodbye to her son, Hersh, on Monday before thousands of mourners gathered in a hilltop cemetery in this holy city to share the grief of parents whose long and public fight to win their child's freedom ended in tragedy in a tunnel in Gaza.= "OK, sweet boy, go now on your journey. I hope it is as good as the trips you dreamed about because finally, my sweet boy, finally, finally, finally, finally you are free," Goldberg-Polin said.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Cboe's BIDS VWAP-X receives sell-side support ahead of October launch; New offering will allow participants to source and match liquidity at a forward benchmark price.
Wesley Bray - The Trade
Cboe Europe has announced the support of a range of participants for its new trading service Cboe BIDS VWAP-X. The new offering will allow users to source and match liquidity at a forward benchmark price and is scheduled to launch on 21 October, subject to regulatory approvals.
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Update - Dividend/Distribution
ASX
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Companies, banks and the public sector raise their stakes in the Spanish stock market, of which international investors own 49%
BME-X
Non-financial companies, banks and the public sector increased their share ownership in the Spanish stock market at the end of 2023, with international investors continuing to control nearly half of its capitalization. This is reflected in the Report on the Ownership of Listed Spanish Shares published today by BME's Research Department. As the report points out, public sector participation in the stock market reached its highest level (16.6%) in 1992, when the privatisation process of a large number of public companies began, which reduced it to residual levels (0.6%). However, this dynamic has been reversing in the last decade following public aid to some banks and the maintenance and revaluation of significant stakes in listed companies, to reach the current figures, which place its weight at 3.3%, valued at around 23,000 million euros. The data in the report refer to the end of 2023, so they do not yet include the successive acquisitions of Telefónica shares up to at least 10% of the capital made as early as 2024.
/jlne.ws/4dK1Uyv
SIX Exchanges Figures: August 2024
BME-X
SIX publishes the monthly key figures for SIX Swiss Exchange and BME Exchange about the trading and listing activity in Switzerland and Spain
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Boerse Stuttgart Records August Turnover Of Around EUR 8,3 Billion - Increases In Structured Securities, Equities And Exchange-Traded Products Compared To The Same Month Of The Previous Year
Mondovisione
Boerse Stuttgart is the German exchange of Boerse Stuttgart Group. The European group also operates exchanges in Sweden and Switzerland. Based on the order book statistics, Boerse Stuttgart generated turnover of around EUR 8,3 billion in August, around 6 percent more than in the same month of the previous year. Structured securities made up the largest share of the turnover. The trading volume in this asset class was around EUR 3,3 billion - an increase of 0,35 percent compared to the same month of the previous year. Leverage products generated turnover of around EUR 2,4 billion. Investment products contributed around EUR 902 million to the total turnover.
/jlne.ws/3XujPnd
Cboe Europe Secures Support of Key Participants for Launch of Cboe BIDS VWAP-X Service
Cboe
Cboe Europe, the largest pan-European stock exchange1 and a division of Cboe Global Markets, Inc. (Cboe: CBOE), today announces that it has secured the support of a broad range of participants for Cboe BIDS VWAP-X, its new trading service allowing participants to source and match liquidity at a forward benchmark price. This service is scheduled to launch on October 21, subject to regulatory approvals. Early adopters of the Cboe BIDS VWAP-X service include Bernstein, BNP Paribas, BMO Capital Markets, Instinet Europe, Jefferies, KCx and Virtu Financial.
/jlne.ws/3TdyEba
Cash market trading volumes in August 2024
Deutsche Borse
Deutsche Borse's cash markets generated a turnover of EUR98.76 billion in August (previous year: EUR92.50 billion / previous month: EUR101.80 billion). EUR95.59 billion were attributable to Xetra (previous year: EUR89.56 billion / previous month: EUR98.60 billion), bringing the average daily Xetra trading volume to EUR4.35 billion (previous year: EUR3.89 billion / previous month: EUR4.29 billion). Trading volumes on Börse Frankfurt were EUR3.17 billion (previous year: EUR2.94 billion / previous month: EUR3.21 billion).
ICE Launches New Suite of Indices for Australian Residential Mortgage-Backed Securities Market
Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE), a leading global provider of technology and data, today announced the launch of a suite of indices for the Australian residential mortgage-backed securities (RMBS) market. These indices, which are administered by ICE Data Indices, LLC, are accessible in ICE's Custom Index Tool, which provides a variety of ways to prototype and back test strategies for multiple use cases, including research, benchmark construction, designing new financial products such as ETFs or enabling services such as direct indexing. This new suite of indices is designed to provide comprehensive and transparent benchmarks for tracking the performance of AUD-denominated residential mortgage-backed securities (RMBS).
/jlne.ws/4e6IGCZ
FSCA approves JSE Listing Requirements Dealing with Market Segmentation
JSE
The Market Segmentation Project repositions the JSE's Main Board into two segments, the Prime and the General Segment. This new structure aims to offer a suitable and efficient level of regulation tailored to the size and liquidity of issuers on the Main Board, while continuing to uphold investor confidence in the market. The General Segment affords issuers on the Main Board listing with different application of certain provisions of the Listings Requirements. Issuers seeking to apply for the General Segment can submit an application to the JSE from 23 September 2024, with the effective launch date of the General Segment to be communicated.
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LuxSE publishes latest version of its Rules and Regulations
LuxSE
Changes in the R&R to accommodate the migration of clearing service provider
LuxSE is currently undergoing a migration of selected financial instruments admitted to trading on the markets of LuxSE from Banque Centrale de Compensation S.A. (LCH) to another clearing organisation. As part of this process, LuxSE identified the need to adjust the existing wording of the Rules of the R&R pertaining to the appointment of the provider of clearing services for LuxSE, to ensure that such processes occur with more efficiency, while maintaining all due transparency and safety of LuxSE's Members and markets.
/jlne.ws/4cQ88eQ
Notice: Appointed Clearing Organisation of LuxSE
LuxSE
The Luxembourg Stock Exchange (LuxSE) would like to communicate that, according to Rule 2401.A.1 of its Rules and Regulations, the current appointed Clearing Organisation is Banque Centrale de Compensation S.A. (LCH). A migration from LCH's clearing services to Euronext Clearing, the Euronext Group's Central Counterparty (CCP), is currently undergoing. The migration is expected to be completed in Q4 2024.
/jlne.ws/47jzA3x
NYSE - Fee Changes Effective September 3, 2024
NYSE
On September 3, 2024, pending effectiveness of a regulatory filing, the NYSE will be making the following revisions to its Equities Price List for securities priced at $1.00 or more.
/jlne.ws/3AZGrD1
B1G Numbers August 2024: Key Figures from SIX Swiss Exchange
SIX
After a difficult start into the month, the Swiss blue-chip index SMI closed at an annual high of 12,436.6 points, an increase of 1% for the month of August and 11.7% since the beginning of the year. Trading volumes on SIX Swiss Exchange in August remained below the levels of the very volatile month of July, at CHF 83.7 billion, while the number of transactions amounted to just under 4 million.
/jlne.ws/3AOjjaJ
SET Partners With Alliances To Empower Thais Of All Ages With Financial Literacy
Mondovisione
The Stock Exchange of Thailand (SET) has renewed a Memorandum of Understanding with the National Savings Fund (NSF) and the Student Loan Fund (SLF), marking the 7th consecutive year of collaboration to promote financial planning knowledge. This initiative aims to enhance learning in the digital era, helping Thais achieve financial well-being across various target groups. The financial literacy content, available both online and offline, is expected to reach over 2.5 million members of NSF and SLF nationwide annually.
/jlne.ws/4cSWJuW
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Brazilians flock to Bluesky after court bans Elon Musk's X; Platform registered almost 2mn new users after Supreme Court suspended bigger rival
Bryan Harris - Financial Times
Social media site Bluesky registered almost 2mn new users in just four days as Brazilians flocked to the platform following the suspension of Elon Musk's X by the country's Supreme Court. The platform launched in 2019 by Jack Dorsey, one of X's co-founders, also topped the rankings of most popular apps on both the Google and Apple stores in Brazil. The surge in Bluesky's fortunes reflect the importance of social media in Brazil. More than 144mn people use at least one kind of platform and the nation frequently tops lists of countries that spend the most time online.
/jlne.ws/4dNvh31
Ex-Quant's AI Chip Startup Eyes 2025 IPO as Nvidia Fuels Demand; Rebellions plans to hire global banks in March for a listing; CEO shares product roadmap as firm works with Samsung foundry
Yoolim Lee and Joanne Wong - Bloomberg
South Korean startup Rebellions Inc. is planning to go public as early as the end of 2025, seeking to capitalize on booming demand for the chips used to power generative AI. It plans to select global banks for a domestic listing around March after completing a merger with SK Telecom Co.'s Sapeon Korea in November, Chief Executive Officer Park Sunghyun told Bloomberg Television. Depending on its ramp-up and market conditions, the company could debut by late 2025 or early 2026, he estimated. It's selected domestic broker Samsung Securities Co. to lead its IPO.
/jlne.ws/3Z4jNUd
Google's James Manyika: 'The productivity gains from AI are not guaranteed'; Executive wants employers to use technology to increase their top line, not just cut costs
Henry Mance - Financial Times
On a panel last November, OpenAI co-founder Sam Altman predicted there would be an artificial intelligence breakthrough in 2024 that no one saw coming. Google executive James Manyika agreed: "Plus one to that." Has the past year lived up to expectations? The summer sell-off in tech stocks reflected a sense that the adoption of AI would take longer than anticipated.
/jlne.ws/3XeaYV8
AI hit by copyright claims as companies approach 'data frontier'; Anthropic faces legal action by publishers as tech groups reach limit on material to train artificial intelligence models
George Hammond - Financial Times
Top artificial intelligence companies are facing a wave of copyright litigation and accusations that they are aggressively scraping data from the web, a problem exacerbated as start-ups hit a "data frontier" hindering new advances in the technology. This month, a trio of authors sued Anthropic for "stealing hundreds of thousands of copyrighted books", claiming the San Francisco AI start-up "never sought - let alone paid for - a licence to copy and exploit the protected expression contained in the copyrighted works fed into its models".
/jlne.ws/3z44rEw
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| Cybersecurity | | Top stories for cybersecurity | Citadel Securities leads fight over payments for market surveillance system; Market maker attacks 'brazen' efforts by exchanges to recoup costs of 'Consolidated Audit Trail' that tracks securities trading
Jennifer Hughes - Financial Times
Citadel Securities is leading industry pushback against an effort by exchanges including the New York Stock Exchange and Nasdaq to ask traders to help foot the bill for a new market surveillance system that has already racked up almost $1bn in costs. Brokers are calling for the regulator to suspend proposed new billing schedules that would force them to contribute to the costs of the CAT system, or Consolidated Audit Trail, a real-time record of all activity across US equities and options markets, which has been likened to a "Hubble Telescope" for securities markets.
/jlne.ws/4dP4seA
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| Cryptocurrencies | | Top stories for cryptocurrencies | Hacker Behind $234 Million India Crypto Theft Starts Washing Funds; WazirX digital-asset exchange suffered a hack in July; Attacker taps a sanctioned service to launder assets
Sidhartha Shukla - Bloomberg
The attacker behind India's worst crypto hack has begun laundering some of the $234 million stolen in the incident from the WazirX exchange, acting the same day the platform briefed on efforts to recover funds. The perpetrator on Monday moved 2,500 Ether tokens worth about $6.3 million to Tornado Cash - a sanctioned service that blurs the origin of cryptoassets - soon after the briefing led by WazirX's Dubai-based founder Nischal Shetty.
/jlne.ws/4dJKQIQ
Crypto Firm OKX Hires Former Grab Exec to Be Singapore CEO; OKX receives license from MAS for digital token services; CEO Lin to focus on products, seeks MAS nod for adding tokens
Ryan Weeks and Suvashree Ghosh - Bloomberg
Crypto exchange OKX named former regulator Gracie Lin as CEO of its Singapore business in a statement on Monday. Lin previously held positions at Monetary Authority of Singapore as well as at Grab and GIC. The digital-asset firm's Singapore unit OKX SG also received a Major Payment Institution license from MAS that allows the entity to offer digital payment token services including spot trading, according to the statement.
/jlne.ws/3AOdiuF
Trump Circle Makes Another Move in Its Ardent Embrace of Crypto; Trumps are releasing NFTs, own Ether and plan other ventures; Bannon, Kushner, associates have long histories with crypto
Olga Kharif - Bloomberg
With Donald Trump now championing a decentralized finance platform while pledging to make America the "crypto capital" of the world, all eyes are focused on the growing digital-asset efforts of the former president's family and associates. In recent weeks, the Republican presidential nominee and two of his sons have been promoting World Liberty Financial, a DeFi project that aims to eliminate intermediaries such as banks through the use of software-driven applications. Trump just put our his fourth collection of nonfungible tokens, which represent unique ownership of assets like images depicting him riding a motorcycle or as a boxer. Melania Trump's upcoming memoir can be purchased with a digital collectible, according to her website.
/jlne.ws/3Z9uhll
Cryptoverse: Bitcoin ETFs take $50 billion baby steps toward big time
Suzanne McGee - Reuters
Last October, Matthew Hougan told an industry panel that he expected spot bitcoin exchange-traded funds (ETFs) to attract $55 billion of assets in their first five years. As of late August this year, about eight months after their debut, the 10 new funds approved by U.S. regulators collectively boasted more than $52 billion, according to data from TrackInsight.
/jlne.ws/4cP3tdi
Rhodium Gets Approval for Rare Bitcoin-Based Bankruptcy Loan; Galaxy Digital offered a loan to the bankrupt Bitcoin miner; Rhodium and affiliates filed for Chapter 11 in Texas in August
Dorothy Ma - Bloomberg
Bankrupt crypto miner Rhodium Encore LLC received court approval for an unusual debtor-in-possession financing plan on Friday that offers options to borrow in either US dollars or Bitcoin. Galaxy Digital, the blockchain firm run by Mike Novogratz, has offered to provide either $30 million or 500 Bitcoin to fund Rhodium's Chapter 11 bankruptcy, according to . The dollar loan has a 14.5% annual interest rate, while the Bitcoin loan bears a 9.5% interest rate.
/jlne.ws/4ea6dmm
Ethereum Co-Founder Vitalik Buterin's $10M ETH Sale Sparks Speculation
Hope C - CoinMarketCap
Ethereum (ETH) co-founder Vitalik Buterin has transferred approximately $10 million worth of ETH to wallets linked with crypto exchanges. This move occurred in August and has led to widespread speculation about Buterin's intentions. Further data from Arkham Intelligence reveals a more extensive pattern of outflows from Buterin's Ether address. Since 2015, the address has seen transfers of around 422,000 ETH, valued at $1.04 billion as of September 1, 2024. Notably, over 840,000 ETH have moved out of the address in the past two years alone.
/jlne.ws/3X7mWjz
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| Politics | | An overview of politics as it relates to the financial markets | How Coinbase Went From DC 'Kids Table' to Political Power Seat; Crypto firm's donations are shaking up Congressional races; Critics say crypto influence is akin to corporate 'Death Star'
Olga Kharif and Stephanie Lai - Bloomberg
As Donald Trump embraces cryptocurrency aficionados in search of votes and campaign contributions, the deepest pockets in the industry are conspicuously absent from the list of his donors. The crypto-world heavyweight Brian Armstrong, his exchange Coinbase Global Inc. and the super PACs they fund haven't given anything to Trump's campaign yet. Nor have they donated to his opponent, Vice President Kamala Harris.
/jlne.ws/3XiuWOS
Elon Musk is an unguided geopolitical missile; While his influence is showing up from Ukraine to China, he still lacks the ability to make the law
Gideon Rachman - Financial Times (opinion)
Big businesses and billionaires usually steer clear of political controversy. If they exercise power, they prefer to do it in the shadows. Elon Musk is different. In recent weeks, he has endorsed Donald Trump and conducted a softball interview with him on X, the social media platform that he owns. Musk is also engaged in a bitter public feud with the Supreme Court of Brazil, which banned X last week. He has recently claimed that civil war is inevitable in Britain and responded to the arrest in France of Pavel Durov, the founder of Telegram, by posting: "POV: It's 2030 in Europe and you're being executed for liking a meme."
/jlne.ws/3Z3J7tw
A Trump loss could stabilise US politics for a generation; The lesson of 2024 so far is that American populists have no replacement for the former president's star power
Janan Ganesh - Financial Times (opinion)
There is such a thing as an unimportant US presidential election. Had Bill Clinton lost to Bob Dole in 1996, or George W Bush to John Kerry the other side of the millennium, there is no reason to believe we would now inhabit a greatly different world. So when I suggest that November 5 2024 is a hinge moment in history, don't murmur: "Journalists say this every damn time."
/jlne.ws/3X8igdb
Democrat Woos Dairy Farmers to Keep Crucial Senate Seat; Sen. Tammy Baldwin of Wisconsin hits country roads and agricultural fairs, seeking to win over rural Trump supporters once more
Katy Stech Ferek - The Wall Street Journal
Sen. Tammy Baldwin had an unusual talent during her last election: convincing rural supporters of Republican Donald Trump that they should vote for her, too. This November, Senate Democrats need Baldwin to do it again.
/jlne.ws/47emswo
Harris Says US Steel Should Remain American Owned and Run; Democratic nominee comments on $14.1 billion Nippon Steel deal; Harris position aligns with Biden as union, Trump also opposed
Josh Wingrove - Bloomberg
Vice President Kamala Harris joined President Joe Biden in declaring that United States Steel Corp. should remain domestically owned and operated, the latest headwind to the proposed sale of the company to Japan-based Nippon Steel Corp.
/jlne.ws/3ALYHjj
If China wants Taiwan it should also take back land from Russia, president says
Reuters
/jlne.ws/4dZ3o7M
Hong Kong Convicts Two Editors; Beijing's puppets charged the pair with sedition for criticizing the government.
The Editorial Board - The Wall Street Journal
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| Regulation & Enforcement | | Stories about regulation and the law. | South Africa Asks Banks, Insurers for Consumer Education Plans; FSCA says South Africans have 'particular problem' with scams; Wants financial services companies to sign education charter
Adelaide Changole - Bloomberg
A top South Africa regulator is planning to require financial institutions to unveil their plans for boosting spending on customer education as it seeks to improve the lives of consumers in a nation where a majority of people live paycheck to paycheck. The Financial Sector Conduct Authority's new Financial Education Commitment Charter will also require institutions to commit in writing to adhere to international standards for consumer education and prioritize customer protection, Unathi Kamlana, the commissioner of the FSCA, said in an interview.
/jlne.ws/3XrXpTk
Chinese Suspects in $37 Billion Loan Fraud Face UK Investigation; Couple's British property portfolio is under UK probe; Investigation is politically motivated, their lawyers said
Upmanyu Trivedi - Bloomberg
A couple accused in China of leading a fraud worth 262.5 billion yuan ($37.7 billion) are facing a British investigation into how they built up a multi-million pound property portfolio in the UK, according to a court ruling. The UK's National Crime Agency is scrutinizing whether the collection of student rental properties acquired by Wenjun Tian and his wife were bought using money from criminal activities, the ruling showed. They're suspected in China of bagging some £1.2 billion ($1.6 billion) stemming from a 14 year fraud that used a string of shell companies to apply for fraudulent loans as well as stock market manipulation.
/jlne.ws/3AXIYO4
SEC Obtains Final Judgment Imposing a $39.5 Million Penalty Against Chinese National Charged with Insider Trading
SEC
On August 16, 2024, the Securities and Exchange Commission obtained a final judgment against defendant Shaohua (Michael) Yin, including a penalty of $39.5 million paid out of funds frozen in the brokerage accounts that Yin allegedly used to engage in insider trading. The SEC previously charged Yin with reaping massive profits from insider trading in the shares of Lattice Semiconductor Corporation and DreamWorks Animation SKG, Inc.
/jlne.ws/3MrpvIi
SEC Obtains Final Judgment Against Defendant in a Microcap Fraud Scheme
SEC
The Securities and Exchange Commission announced that the U.S. District Court for the District of Massachusetts entered a final judgment against defendant Drew Ciccarelli on August 21, 2024, in a previously filed action charging him for his role in a pump-and-dump scheme in the stock of Rarus Technologies Inc, a former New York-based microcap company.
/jlne.ws/3z1MNkW
SEC Obtains Final Judgment Against Florida Microcap Issuer
SEC
On August 28, 2024, the U.S. District Court for the Eastern District of New York entered a final consent judgment against microcap issuer Nutra Pharma Corporation, enjoining it from violating certain provisions of the federal securities laws and ordering disgorgement and civil monetary penalties.
/jlne.ws/4g9l42e
SEC Charges Investment Adviser with Making Misrepresentations in Form Filed with the Agency
SEC
The Securities and Exchange Commission today announced charges against purported investment adviser Wisdom Capital Management Group Ltd. ("Wisdom") for making material misrepresentations and unsubstantiated statements in a form filed with the SEC regarding Wisdom's organization, office location, assets under management, and clients.
/jlne.ws/3AKqFfc
SEC Charges Brothers Jonathan and Tanner Adam with $60 Million Ponzi Scheme and Obtains Emergency Relief
SEC
The Securities and Exchange Commission announced that it obtained an emergency asset freeze against Jonathan Adam and Tanner Adam, and their two respective entities GCZ Global LLC and Triten Financial Group LLC, to halt a $60 million Ponzi scheme impacting more than 80 investors across the country. The SEC alleges the defendants misappropriated millions of dollars of investor funds to fund the Adam brothers' lifestyle and to make Ponzi-like payments.
/jlne.ws/3Tfw8RM
SEC Charges Former Healthcare Company Executives with Fraud
SEC
The Securities and Exchange Commission today charged Justin D. Smith and Joshua Constantin with defrauding investors of at least $2.7 million, making materially false and misleading statements in SEC filings, and aiding and abetting the making of such misstatements. The SEC previously charged Constantin with securities fraud in 2011 in connection with a separate investment scheme, for which the court found him liable on all claims.
/jlne.ws/47ddW0T
SEC Obtains Final Judgments Against Unregistered Brokers That Facilitated More Than $1.2 Billion In Primarily Penny Stock Trades
SEC
On August 27, 2024, the U.S. District Court for the Southern District of New York entered final judgments against GEL Direct LLC, GEL Direct Trust, Jeffrey K. Galvani, and Stuart A. Jeffery, whom the SEC previously charged for operating as unregistered brokers.
/jlne.ws/3Tfmui9
Former Courtenay House director sentenced to 11 years imprisonment
ASIC
Former Courtenay House director Tony Iervasi has been sentenced in the Supreme Court of NSW to 11 years imprisonment with a non-parole period of seven years for criminal charges relating to the operation of the Courtenay House ponzi scheme. The sentence included a significant discount considering Mr Iervasi's guilty plea and other factors.
/jlne.ws/3AMlIme
ASIC's Moneysmart calls on super funds to better engage millennials following findings from industry roundtable
ASIC
ASIC's Moneysmart convened a roundtable of leading influential voices for millennials and their finances that is sounding the alarm for superannuation funds to lift their game and increase services, transparency, and improved access to information to better engage millennial members.
/jlne.ws/4e9Z45w
ASIC and APRA host Superannuation CEO Roundtables
ASIC
ASIC and APRA have released public notes from the latest Superannuation CEO Roundtables, held on Tuesday, 18 June and Tuesday, 16 July 2024. The Roundtables were hosted by ASIC and APRA and attended by 12 superannuation trustee CEOs and executives, representing a broad cross-section of the industry. The theme of the Roundtables was superannuation funds as investors of members' money.
/jlne.ws/4cPgQdo
FMA files criminal charges against former financial adviser
FMA
The Financial Markets Authority - Te Mana Tātai Hokohoko - has filed criminal charges against a former financial adviser. The defendant, who has interim name suppression, has pleaded not guilty to two representative charges of theft by a person in a special relationship. The FMA alleges that the defendant procured approximately $1.7 million from two sets of clients on the basis that he would invest the funds procured on their behalf. It is alleged the defendant instead used the funds obtained for personal purposes. The alleged offending occurred between 2016 and 2022.
/jlne.ws/3MwLddM
MAS Issues Prohibition Order Against Mr Chong Yew Mun Alan for Market Misconduct Offences
MAS
The Monetary Authority of Singapore (MAS) today issued a 5-year prohibition order (PO) against Mr Chong Yew Mun Alan, a former representative of RHB Securities (Singapore) Pte. Ltd. The PO was issued following Mr Chong's conviction in the State Courts for offences under the Securities and Futures Act (SFA) relating to false trading in the shares of Catalist-listed Koyo International Limited (Koyo) [1] . Mr Chong's offences have given MAS reason to believe that he will not perform financial advisory and capital markets services honestly.
/jlne.ws/3X3uio8
New speech by Christopher Wilson: Keynote speech at GIR Live: Asia-Pacific Investigations Summit 2024
SFC
A keynote speech titled "Crafting an Effective Investigation Strategy" delivered by Mr Christopher Wilson at GIR Live: Asia-Pacific Investigations Summit 2024 was posted on the SFC website today.
/jlne.ws/4cTchP4
SFC issues new guides for visiting and returning professionals to highlight pragmatic licensing options
SFC
The Securities and Futures Commission (SFC) today published two new quick reference guides to assist visiting and returning professionals in understanding the SFC's pragmatic licensing regime, complementing the five popular quick reference guides published in 2023 (Note 1). Illustrating with case studies, the two new guides offer useful information about licensing options and processes as well as various conditions for examination exemptions, in order to facilitate a smooth and compliant transition to the Hong Kong financial markets for these professionals.
/jlne.ws/3XrWaUd
SFC bans Charles Lam Chung Yiu for life
SFC
The Securities and Futures Commission (SFC) has banned Mr Charles Lam Chung Yiu, a former associate director of UBS AG (UBS), from re-entering the industry for life because his criminal convictions led the SFC to consider him not a fit and proper person to be licensed or registered to carry on regulated activities (Note 1). Lam was sentenced by the Court of First Instance on 7 November 2023 to imprisonment of seven years after his convictions of two counts of theft and two counts of dealing with property known or believed to represent proceeds of an indictable offence (Note 2).
/jlne.ws/3AXyC0C
SEBI study shows 54% of IPO Shares allotted to Investors (excluding anchor investors) are sold within a week
SEBI
In light of the increasing participation of retail investors and the heightened oversubscription in recent IPOs, SEBI conducted an in-depth study to analyze investor behavior in Main Board IPOs. The study encompasses data from 144 IPOs listed between April2021 and December 2023.
/jlne.ws/3Z3L3Ci
Disclose the primary examination findings of financial institutions
FSC
The Financial Examination Bureau (FEB) summarizes the primary examination findings of 11 financial industries in the first half of 2024, including the "Virtual Asset Service Provider ". Except the examination findings for "Virtual Asset Service Provider ," "insurance agent companies and insurance broker companies ," and "specialized electronic payment institutions" are disclosed on an irregular basis, the others are disclosed the significant or common ones on the website semiannually. From the disclosed major examination findings, financial institutions can perceive the FSC's supervisory concerns and common lapses in the financial industries. Financial institutions should conduct the self-assessment to review the operating procedures or to establish the control mechanism, to achieve the self-corrective purpose.
/jlne.ws/3z6Adkm
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Shorts are circling some of the AI boom's biggest question marks
Bailey Lipschultz - Bloomberg
It's the story of so many stock market manias: A transformative technology juices a few companies, a bunch of more questionable outfits follow in their wake, and Wall Street buys it all. Then time sorts out what's real from fake. Artificial intelligence, which has fueled the latest bounce in the S&P 500 Index as everything remotely attached to the technology sees its stock price soar, is the latest example. And it's reached the point where some investors are betting against a few of those AI darlings, like Super Micro Computer Inc. and Lumen Technologies Inc., whose shares were up more than 250% at various points this year.
/jlne.ws/3XrbZL4
Fantastical goings-on in Nasdaq-listed Chinese micro-caps
George Steer - Financial Times
The IPO window is (maybe, hopefully, please?) open again - particularly for companies based in Singapore or China. Per Renaissance Capital's list of US market debuts last week: YHN Acquisition I (YHNAU) - China Deal Size: $60mn Exchange: Nasdaq Lead Underwriter: Lucid Capital Markets Blank check company led by executives from boutique SPAC firm Norwich Capital.
/jlne.ws/3X8ZYbS
Intel's Dow status under threat as struggling chipmaker's shares plunge
Arsheeya Bajwa - Reuters
Intel was one of the first two tech companies to join the Dow Jones Industrial Average during 1999's dot-com era, along with Microsoft. Now, a slump in its share price could cost the American chipmaker its place in the blue-chip index. Analysts and investors said Intel was likely to be removed from the Dow, pointing to a near 60% decline in the company's shares this year that has made it the worst performer on the index and left it with the lowest stock price on the price-weighted Dow.
/jlne.ws/4gdh1Cm
Turkey Bids to Join BRICS in Push to Build Alliances Beyond West
Selcan Hacaoglu and Firat Kozok - Bloomberg
Turkey has formally asked to join the BRICS group of emerging-market nations as it seeks to bolster its global influence and forge new ties beyond its traditional Western allies, according to people familiar with the matter. The view of President Recep Tayyip Erdogan's administration is that the geopolitical center of gravity is shifting away from developed economies, according to the people, who spoke on condition of anonymity because they aren't authorized to comment.
/jlne.ws/4cV1UKG
Active ETFs set to hit $1tn in assets; Asset managers turn to once-forgotten backwater to drive industry growth
Steve Johnson - Financial Times
Actively managed exchange traded funds are poised to hit $1tn in assets, cementing a dramatic transformation from a forgotten backwater to a key driver of global industry growth. The vehicles, which offer a cheaper rival to mutual funds that try to outperform indices, reached $974bn in assets as of the end of July, data from consultancy ETFGI showed. The gains mark a sharp increase in recent years for active ETFs, which have been around since at least 2006 but took until 2018 to reach $100bn in assets, according to ETFGI data.
/jlne.ws/3Zbf2IC
Wall Street Strategists Face Their Own Short Squeeze; It's the time of year, when stock market prognosticators rush to boost their S&P 500 forecasts - and 2024 will be no different.
Jonathan Levin - Bloomberg
Since the pandemic, Wall Street strategists have repeatedly underestimated the performance of the US stock market in their annual projections, leading to a mad dash to boost their outlooks in the back end of the year. The flurry of upward revisions can look something like a "short squeeze," which is a situation where traders are forced to cover bearish bets in quick succession, often reinforcing a security's upward momentum. In that sense, this year has already seen the biggest short squeeze among strategists in a decade, and seasonal trends suggest it's poised to continue in coming months.
/jlne.ws/4dSVdKI
Clearlake Agrees to Buy Private Credit Manager MV from Natixis; Tie-up would increase Clearlake's assets to $90 billion; US-based Clearlake will expand MV's European activity
Francesca Veronesi and Kat Hidalgo - Bloomberg
/jlne.ws/3XuvwdF
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Huge cut in overseas fossil fuel funding even as US fails to comply; Coalition reduces financing by $15bn but does not deliver equivalent rise in funding for clean energy projects
Malcolm Moore - Financial Times
A group of more than 30 countries cut public funding for fossil fuel projects overseas by up to $15bn last year, a report has found, although the US has continued to pour billions into oil and gas finance. At the COP26 UN climate change conference at Glasgow in 2021 countries including the US, Canada, the UK and France all pledged to switch as much as $28bn of annual trade and development money from fossil fuels to clean energy.
/jlne.ws/3AKq5Oy
UK secures 131 clean energy projects in latest state auction; Minister says new investment a 'step forward' for industry after no bids in last year's round
Rachel Millard - Financial Times
The UK's aim to develop cleaner energy has taken a step forward after a record 131 clean energy projects won state subsidy contracts in this year's auction round. The projects, announced on Tuesday, could provide electricity to the equivalent of 11mn homes, supporting the sector after a botched auction round last year in which no offshore wind developers bid. The government said it was the "biggest round ever" with a total 9.6 gigawatts of projects winning state guarantees on their electricity price. That includes more than 5GW of offshore wind projects.
/jlne.ws/3Xts9n4
Jean Pisani-Ferry: 'It's a war between two strands of capitalism - green and brown'; The French economist sees promise in technology but worries about the heterogeneity of global climate policies
Sam Fleming - Financial Times
This is part of a series, "Economists Exchange", featuring conversations between top FT commentators and leading economists. For decades, macroeconomists tended to tread warily around the topic of climate change, taking the same view that too many of us did - namely that it's a relatively far-off concern - and focusing instead on the comfortable terrain of GDP growth, neutral interest rates and trade balances. In recent years the mood has shifted, as macroeconomists attempt to quantify the enormous economic impact stemming from the dash to drive down emissions.
/jlne.ws/3Tc8d5u
Restart Closed US Nuclear Plants? Only a Few Would Work
Will Wade - Bloomberg
With electricity demand surging across the US, nuclear power advocates want to restart some of the 13 reactors that closed in the last decade, saying their carbon-free energy is needed more than ever. But only a handful of retired nuclear plants have a realistic chance of being revived, analysts say - perhaps as few as three. All the others are either damaged or being dismantled, piece by piece.
/jlne.ws/3X92f6U
China's Troubled Solar Sector May Be Nearing a Turning Point
Bloomberg
China's solar manufacturers have just been through a bloodbath of an earnings season, but there are tentative signs the massive glut that's plaguing the industry could be starting to ease. Longi Green Energy Technology Co. and five other leading solar firms racked up a combined $2 billion of losses in the first half after a frenzy of factory building over the last few years created excess capacity that's driven prices to record lows. Some smaller companies have already been forced into restructuring, while rising trade tensions with the US and Europe may put exports at risk.
/jlne.ws/4e56XJy
Libya Declares Force Majeure on Key Oil Field as Rift Widens; The El-Feel site was pumping about 70,000 barrels a day; Rival governments are wrestling over control of central bank
Salma El Wardany and Hatem Mohareb - Bloomberg
/jlne.ws/3TacYwD
A Lab-Grown Cotton Startup Can Make Clothes Greener, More Ethical; Boston-based Galy, which uses technology similar to cell-based meat, is aiming to drastically reduce cotton's environmental impact.
Akshat Rathi - Bloomberg
/jlne.ws/3XrWrGP
Investors Pressure Banks Over Client Exposures to Deforestation
Natasha White - Bloomberg
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Historic Drought Cuts Zambia's Power Supply to Three Hours a Day; Hydroelectric dams that supply 85% of power are low on water; Copper mines are making up for power deficit with imports
Taonga Mitimingi - Bloomberg
/jlne.ws/3Mt8b5J
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Asset Management: Lunch with economist Eugene Fama; Plus, H20's cover up, ESG funds double down on defence, and Hôtel de Gallifet in Aix-en-Provence
Harriet Agnew - Financial Times
One thing to start: Welcome back to FT Asset Management. I hope you had a great summer and are raring to go for the autumn term. 'Efficient markets is a hypothesis. It's not reality'
Eugene Fama is arguably the world's most famous and influential finance professor. This is owing to his revolutionary efficient market hypothesis - that stock market prices at any time incorporate all available information, thanks to the cumulative and unending efforts of millions of investors constantly trying to outfox it. The paradox is that as a result of their efforts, the stock market is in practice almost impossible to beat.
/jlne.ws/4dMf3Hn
Banks Launch $2.05 Billion of Loans for Instructure Buyout
Jessica Nix - Bloomberg
A combined $2.05 billion of leveraged loans have been launched to finance the buyout of educational software company Instructure Holdings Co., kicking off an expected fall flurry of such funding deals. The financing includes a $1.685 billion first-lien term loan B and a $365 million second-lien term loan, with respective tenors of seven and eight years, according to a person familiar with the matter who isn't authorized to speak publicly and asked not to be identified. Morgan Stanley and KKR Capital Markets are respectively leading the tranches, the person added. A lender call is scheduled for Wednesday.
/jlne.ws/3ZbGmGI
Morgan Stanley renews efforts to regain stock trading crown; Bank has stepped up attempts to win back hedge fund business after Archegos-induced caution
Joshua Franklin in New York and Costas Mourselas in London - Financial Times
Morgan Stanley has stepped up efforts to regain its traditional dominance in stock trading, a position it ceded to longtime rival Goldman Sachs in the wake of the 2021 implosion of Archegos Capital Management. Under new chief executive Ted Pick, who previously headed the bank's equities trading business, Morgan Stanley has narrowed the gap with Goldman to its smallest since 2022.
/jlne.ws/3Tiu5wb
Ex-Nomura China Head Loses $4 Million Unfair Dismissal Case
Cathy Chan - Bloomberg
Nomura Holdings Inc.'s former China head lost a Hong Kong court battle against the Japanese brokerage in which he sought about $4 million in damages for wrongful dismissal. Yang Zhizhong, who was also the former chairman of investment banking for Asia ex-Japan, claimed that the bank violated his contract by issuing a warning letter and forfeiting his bonus before terminating his employment in 2017. The Tokyo-based firm had disciplined him for arranging meetings between its research analysts and potential clients without obtaining compliance approval, according to the court judgment.
/jlne.ws/3XccxmB
HSBC's Elhedery mingles with Hong Kong staff, customers to get first-hand experience
South China Morning Post
/jlne.ws/3MvhW3m
HSBC's New CEO Tells Staff to Keep an Eye on Costs in Town Hall; New CEO Elhedery says the focus is on spending wisely not less; HSBC, like its peers, is facing a lower rate environment
Denise Wee - Bloomberg
/jlne.ws/47ga8Mu
Mizuho's Asset Manager Seeks $3.4 Billion for Japan Big-Cap Fund; Asset Management One's fund to invest in about 50 shares; President says few funds specialize in Japan's large-caps
Nao Sano and Hideyuki Sano - Bloomberg
/jlne.ws/3Z6ygij
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Fund bets happier workers produce healthier returns; Staff wellbeing is a bigger priority for employers but has been hard to link to company performance
Will Schmitt - Financial Times
For many employers the wellbeing and contentment of their staff has become a far greater priority since the pandemic. One asset manager is betting those initiatives will produce financial gains. US research firm Irrational Capital has created a novel approach to stock picking that largely abandons traditional financial metrics in favour of a system designed to select companies based on how happy their workers are. It is tapping into a growing - but still unproven - belief that staff satisfaction is not just good for employee retention and morale but can also help boost a company's share price.
/jlne.ws/3AHzJ4v
London Workers Are in the Office Just Half the Week, Study Finds; UK capital lags behind major peers, Centre for Cities Says; Slow return threatens productivity, London's global standing
Irina Anghel - Bloomberg
London lags behind other major global cities when it comes to working in the office, raising concerns about both productivity and the British capital's appeal as an international investment destination. Full-time workers in London spend little more than half their working week in the office, the Centre for Cities think tank said in a report published Tuesday. While that's up compared with last year, only Toronto puts in as little office time among the six international cities analysed which included Paris, New York, Sydney and Singapore.
/jlne.ws/47aoSfE
London slower to return to office than New York and Paris; Employers in UK capital should subsidise transport to entice staff back, report on global cities suggests
Delphine Strauss - Financial Times
Londoners have been slower to return to the office than workers in other global cities, according to new research that suggests employers in the UK capital should subsidise commutes rather than paying for perks. The Centre for Cities think-tank said that out of six cities where it had surveyed employees and employers, central London had the second-lowest office attendance, with full-time staff spending an average of just 2.7 days a week on site in spring 2024 - though that was up from 2.2 days a year earlier.
/jlne.ws/3MvnRW8
Operation sexy bean counter; Inside the desperate campaign to get Gen Z to become accountants
Jimmy Simpson - Business Insider
For most of his youth, Bryan wanted to be an astrophysicist. He was obsessed with the Hubble telescope, and his bedroom ceiling was dotted with plastic glow-in-the-dark stars. When the Scholastic Book Fair came to his library, he'd beg his parents for cash to buy NASA photo books. To him, space science seemed the pinnacle of innovation, excitement, and existentialism. So when, as a sophomore in college, he told his parents he was going to major in accounting, they gave him what Bryan (which isn't his real name) could describe only as "a look."
/jlne.ws/3XuwGWz
Americans are losing faith in four-year college degrees; Education experts say the decline in enrolment is spurred by a falling birth rate and student debt crisis
Patti Waldmeir - Financial Times
US secondary school students are increasingly voting with their pocketbooks and rejecting the idea that going to college is an essential stepping stone to the American dream. Even former president Barack Obama - Columbia University and Harvard Law School graduate - proclaimed recently that "college shouldn't be the only ticket to the middle class".
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Investors step up calls to cut use of antibiotics in food chain; Groups managing more than $13tn cite 'economic imperative' of finding ways to reduce superbugs' spread
Sarah Neville - Financial Times
Investors representing more than $13tn in combined assets have urged policymakers to help curb the spread of drug-resistant "superbugs" by cutting the excessive use of antibiotics in the food supply chain. Ahead of the UN General Assembly's second high-level meeting on anti-microbial resistance (AMR) this month, about 80 investors or investor representatives, including Legal & General Investment Management and Australian pension fund Hesta, have called for the use of antibiotics in humans, animals and agriculture to be reduced. They say this is "not just a health necessity but also an economic imperative". Resistance to existing anti-microbials is forecast to claim up to 10mn lives annually by 2050, according to the World Health Organization, matching the toll caused by cancer.
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Sydney's Mpox Surge Offers Cautionary Tale as World Braces for New Strain; Doctors urge men to get vaccinated as cases surge in Australia; Infections in August surpassed 2022 and 2023 totals combined
Jason Gale - Bloomberg
Australia's success in virtually eliminating mpox within six months of an outbreak in 2022 is now being overshadowed by a sudden and alarming resurgence, highlighting the challenges ahead as the world braces for a potentially more dangerous strain. The country went months at a time with no reported cases from the end of 2022 through early this year, following free vaccinations for at-risk groups, aggressive safe-sex messaging and heightened public awareness - even in March of 2023, when Sydney hosted over 20,000 international visitors for the WorldPride festival. That entire year, only 26 cases were reported.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | China's Bulging Commodity Stockpiles Show Depth of Economic Woes
Bloomberg
Inventories of key raw materials are piling up in China, evidence that economic activity remains too feeble to clear a surplus that's crushing prices from steel to soybeans. The government's growth target for the year looks increasingly out of reach, an unwelcome development for the drillers, miners and farmers that supply the world's biggest importer of commodities. The blowout in stockpiles might suggest that some traders were caught out by the economy's poor performance since the end of the pandemic. Others may have underestimated the extent of China's pivot from the old economy to the new.
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Chinese tycoons are using stock to borrow from private lenders as bank liquidity dries up
South China Morning Post
Facing liquidity challenges, affluent people in Hong Kong and mainland China are increasingly turning to private lenders and using stocks as collateral for borrowing. As public capital markets have yet to fully recover, traditional banks remain cautious about lending. Meanwhile, property market woes continue, leaving stocks as the best collateral option for some ultra-high-net-worth individuals (UHNWIs) to generate liquidity.
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Japan's Dysfunctional Bond Market Shows More Signs of Recovery; Index recovers after BOJ unveils plan to slow bond purchases; BOJ bond plan reduces market operation uncertainty: MUFJ Asset
Masaki Kondo - Bloomberg
More signs of sustained improvement are appearing in Japan's bond market, even though it remains dysfunctional after over a decade of radical monetary easing reduced the incentive for investors to trade actively, according to a Bank of Japan survey. The poll of market participants showed that 26% of respondents said functioning of the nation's debt market was low, compared with 3% who said it was high. As a result, the diffusion index was at minus 23, the best showing in more than two years and compared with minus 24 in the previous survey taken in May.
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North Sea oil and gas producers are not bluffing over tax; Neo Energy has warned it will slow UK investments, blaming 'fiscal and regulatory uncertainty'
LEX opinion - Financial Times
Business lobbyists cry wolf all the time - especially if governments threaten to push up their costs or taxes. The oil and gas industry has been guilty of frequent hyperbole and exaggeration. But when it comes to the UK North Sea, for once their warnings aren't all bluff. The normally tight-lipped North Sea oil producer Neo Energy warned this week that it would slow UK investments, blaming "fiscal and regulatory uncertainty". The development of its Buchan Horst oil project, 115km north-east of the Aberdeenshire coast, will be delayed while it awaits "clarity" on the UK's tax position in October's Budget. Neo, owned by Norwegian private equity group HitecVision, had targeted first oil in late 2027 from the £1bn scheme.
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Investors Can't Get Enough of South African Local Currency Bonds; Foreigners on track for biggest net yearly inflows since 2019; Nation's debt is world-beating with double-digit returns
Colleen Goko-Petzer - Bloomberg
South African bonds have already outpaced global peers, delivering double-digit returns and outperforming every other emerging market this year. But the real gains may just be starting. Investors are flocking to the nation's local-currency bonds as the domestic outlook improves and with US interest rate cuts on the horizon, setting the stage for even greater returns.
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Canary Wharf in Talks to Refinance Up to £603 Million in Debt; The company has upcoming high-yield maturities in 2025, 2026; It offered retail assets as collateral for debt refinancing
Eleanor Duncan and Jack Sidders - Bloomberg
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| Miscellaneous | | Stories that don't quite fit under the other sections | America's Cup: The Billionaire's Trophy Where $135 Million Disappears in Days; Switzerland's richest man decries a lack of interest after spending millions to compete in sailing's America's Cup
Jonathan Browning and Joao Lima - Bloomberg
Ernesto Bertarelli might be Switzerland's wealthiest man, but a $135 million bet on a sailing race is a lot when it risks disappearing in days. The America's Cup is a brutal, winner-takes-all event. Every three to four years, teams attempt to build the world's fastest sailing yacht. Then after just a few weeks of racing, they pack up until the next time. But few people know that the competition for the world's oldest international sporting trophy is even taking place, let alone that it involves some of the world's richest people betting hundreds of millions of dollars on turning sailboats into something akin to Formula One racing cars, Bertarelli said in an interview.
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