| August 23, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
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John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Bank of Japan Governor Kazuo Ueda is the focus of a Financial Times story in which he warns us that the global markets are 'unstable.' If we take this advice, we might want to pay attention to a story in The Wall Street Journal titled "A Time-Honored Strategy Puts Your Retirement at Risk of Financial Ruin" with the subheadline "The tried-and-true 60/40 portfolio and 4% withdrawal rate in retirement could lead to 'catastrophic' outcomes if markets behave differently than in the past."
The traditional 60/40 portfolio strategy (60% stocks, 40% bonds) and the 4% withdrawal rule for retirement may no longer be as reliable as they once seemed, the WSJ says. Recent market behavior has shown that these approaches can lead to significant losses, particularly if stocks and bonds decline simultaneously, as they did in 2022. While the 60/40 mix has been praised for balancing returns and risk, the reduced bond yields and potential economic uncertainties may limit its effectiveness. Additionally, the 4% withdrawal rule, which assumes steady market growth, could be overly optimistic, with some experts suggesting a safer withdrawal rate of just 2.26% to minimize the risk of running out of money in retirement. With factors like potential Social Security cuts and unpredictable economic conditions, retirees may need to reconsider these traditional strategies to ensure financial stability.
If you are buying a home, the first haggling you need to do now is with your real estate agent. The Wall Street Journal has a story titled "The New Etiquette of Negotiating With Your Real-Estate Agent" with the subheadline "What buyers should look out for in agent agreements."
Home buyers now face more complex negotiations with real-estate agents due to changes following a settlement involving the National Association of Realtors (NAR), the WSJ says. Buyers are responsible for negotiating their agents' commissions, a shift from the past when sellers typically covered these fees. Buyers must often sign contracts with agents before viewing properties, making it essential to carefully review terms and consult a lawyer if unsure.
Commissions should be clearly stated as a specific percentage or flat fee, reflecting the services provided. The standard has been around 2.5% to 3% of the home's sale price, but negotiations can lead to lower rates or alternative fee structures. Buyers should be cautious of additional fees and can negotiate for credits from sellers to cover agents' fees.
The new process is creating uncertainty, with varying practices across regions and brokerages. Buyers and agents alike are adjusting to this "Wild West" of real-estate transactions, emphasizing the importance of due diligence, clear agreements, and possibly seeking legal counsel.
CNN reports that a diamond between the size of a baseball and a 12 inch softball has been discovered in Botswana. A 2,492-carat rough diamond, believed to be the second-largest ever found, was recently unearthed in Botswana by the Canadian mining company Lucara Diamond Corp. This exceptional gem, discovered at the Karowe mine, is the largest since the 3,106-carat Cullinan Diamond was found in South Africa in 1905. The diamond was detected using Lucara's advanced Mega Diamond Recovery (MDR) technology. The stone, which will undergo evaluation in the coming weeks, is set to be presented to Botswana's President Mokgweetsi Masisi. Lucara, which has discovered six of the top 10 largest diamonds ever, previously found the Lesedi La Rona, a 1,109-carat diamond, at the same mine in 2015.
Tradeweb recently published its fourth annual Corporate Sustainability Report, showcasing significant strides in its environmental, social, and governance (ESG) efforts. The report highlights increased diversity within its workforce, including representation in the executive committee and the board of directors. Tradeweb has also achieved 100% renewable energy coverage across its global operations, demonstrating a strong commitment to sustainability. Additionally, the company reported record annual global volumes of $292 billion in CBI-Screened Green Bonds, reflecting its active role in green finance. Improvements in ESG ratings agency scores further underscore the company's progress in its sustainability initiatives. Complementing these efforts, Tradeweb also released its second annual standalone Taskforce on Climate-Related Financial Disclosure report, reinforcing its dedication to transparency and climate-related risk management.
Here are excerpts from in front of FOW's paywall from some recent stories: Eurex celebrated the first anniversary of launching Monday weekly options based on the South Korean KOSPI 200 index, highlighting its unique position as the sole exchange offering KOSPI derivatives. Meanwhile, Cboe Global Markets set new records for its corporate bond index futures, with both trading volumes and open interest more than doubling in 2024. Additionally, Miami International Holdings secured a $100 million investment from Warburg Pincus to help fund various initiatives, including the construction of a physical trading floor for MIAX Sapphire
On Tuesday I mentioned the CBOT's old Kilo Gold contract and listed the size as 32.5 ounces. I missed a stroke of the keyboard. The contract was 32.15 troy ounces of gold. The math I did was right, at $2500, the kilo contract would be worth just over $80,000, or $80,375. The $2500 price of a 400 ounce bar is worth $1 million.
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:
- STA 91st Annual Market Structure Conference: Shifting the Landscape from Security Traders.
- Miami International Holdings Secures Investment for Strategic Growth from Warburg Pincus from MIAX.
- https://jlne.ws/4dv50X1New US ETFs being launched at record pace in 2024 from Reuters.|~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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 FIA Tech and Nasdaq Join Forces to Revolutionize Post-Trade Landscape JohnLothianNews.com London - (JLN) - In June, during the FIA's IDX in London, Nick Solinger, president of FIA Tech, announced a transformative partnership with Nasdaq aimed at revolutionizing the global post-trade industry. The interview, now released by John Lothian News as part of the JLN Industry Leader video series, highlights the ambitious plans to enhance data transparency and efficiency in the clearing process, responding to the industry's evolving challenges in the wake of the Covid-19 pandemic. 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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Bill Gates's farmland produces McDonald's fries - and 4 other fascinating facts from a new book on the ex-Microsoft CEO
Sarah Jackson and Jordan Hart - Business Insider
Microsoft founder Bill Gates is, of course, one of the most influential business leaders of our time. And now, a new book offers some behind-the-scenes insights into his reign at Microsoft, the Justice Department's landmark antitrust case against the company, Gates's divorce from Melinda French Gates, his long friendship with Warren Buffett, his philanthropy through the Gates Foundation, and more. In it are also some fascinating nuggets - like Gates's farmland supplying the potatoes for McDonald's fries.
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****** Who knew Bill Gates would go from Microsoft to Micro-spuds? If his potatoes are anything like his software, McDonald's French fries are about to get a serious upgrade!~JJL
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Bank of Japan governor Kazuo Ueda warns global markets are 'unstable'; Parliament told there will be no change to central bank's basic stance on monetary easing
Leo Lewis - Financial Times
The Bank of Japan's governor warned on Friday that global markets remained unstable as he reaffirmed his commitment to raising interest rates should the country's inflation and economic growth remain on track. Kazuo Ueda's remarks came after nearly six weeks of extreme market volatility during which the yen weakened to a historic low of 161 Yen to a dollar before sharply reversing course and surging more than 10 per cent. The Japanese stock market climbed to an all-time high before enduring its biggest ever one-day crash.
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****** The trader in me says, "Sounds like Mr. Ueda is short volatility.~JJL
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Haggis Anyone? The Quest to Make Scottish Food Hip; The country's cuisine, sometimes a hard sell, is treated like a delicacy hundreds of miles away; neeps, tatties
James Hookway - The Wall Street Journal
A few years ago, Scottish soccer fans serenaded their hosts at a game in Italy with a sinister threat. "Deep fry your pizzas! We're gonna deep fry your pizzas," they sang to the tune of Guantanamera, the Cuban folk song. They weren't entirely kidding. Some Scots like nothing better than a pizza or a haggis battered and fried and served with fat greasy fries after a few beers on a Saturday night. It can make Scottish cuisine a hard sell compared with French or Italian. The stodgier fare might rival what's found at state fairs in America when it comes to clogging arteries.
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****** Wait, when was haggis not hip?~JJL
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Thursday's Top Three
Our top clicked item Thursday was the page for the STA 91st Annual Market Structure Conference: Shifting the Landscape, from the Security Traders Association. Second was Miami International Holdings Secures Investment for Strategic Growth from Warburg Pincus, from MIAX. Third was That's Why We Did That: The Business of this Business, a LinkedIn post from MetroTrade.
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| Lead Stories | CME, S&P Explore Sale of Post-Trade Joint Venture OSTTRA; OSTTRA may be valued at as much as $4 billion in any deal; Unit provides post-trade services for forex, derivatives
Ryan Gould and Gillian Tan - Bloomberg
CME Group Inc. and S&P Global Inc. are weighing a sale of a joint venture offering post-trade services in the foreign exchange and derivatives markets, according to people familiar with the matter. The companies are working with financial advisers to seek buyers for the JV called OSTTRA, said the people, who asked to not be identified because the matter isn't public. The unit may be valued at $2 billion to $4 billion, including debt, depending on how a deal is structured, they said. Deliberations are ongoing and there's no certainty they'll lead to a transaction, the people said. Representatives for S&P and CME declined to comment.
/jlne.ws/3YUBc1q
LME Trading Floor Faces Fresh Blow as Societe Generale Exits; Societe Generale will remain a clearing member of the exchange; Volumes on the trading floor slumped after pandemic closure
Mark Burton - Bloomberg
Societe Generale SA will withdraw from the London Metal Exchange's open-outcry trading floor, in a move that will raise fresh questions about the future of the iconic "Ring." The bank's UK unit will continue to serve clients as a clearing member of the exchange, but will pull out of the trading floor from August 27, the LME said in a notice to members. That will leave just seven members remaining on the floor, following earlier resignations by dealers including Triland and ED&F Man in recent years.
/jlne.ws/3AzTOcZ
Hong Kong Crypto Exchanges Face Challenges to Get Full Licenses; Regulator's on-site inspections found unsatisfactory practices; City hopes web3 will help revive global financial-hub status
Kiuyan Wong - Bloomberg
Hong Kong's push for a digital-asset hub faces growing pains amid uncertainty over whether 11 crypto exchanges will all achieve full licenses after earlier receiving initial approvals. The city's Securities and Futures Commission found unsatisfactory practices at some of the "deemed-to-be-licensed" platforms during on-site inspections carried out since they won the designation in June, people familiar with the situation said, asking not to be identified because the information is private.
/jlne.ws/3XglVHg
A Time-Honored Strategy Puts Your Retirement at Risk of Financial Ruin; The tried-and-true 60/40 portfolio and 4% withdrawal rate in retirement could lead to 'catastrophic' outcomes if markets behave differently than in the past
Spencer Jakab - The Wall Street Journal
Two years ago Vanguard published a note for its clients titled "Like the phoenix, the 60/40 portfolio will rise again." And it did. The mutual-fund giant's take on the classic, "safe" mix of 60% stocks and 40% bonds, which peaked in 2021, clawed back its losses by this February. But the fact that Vanguard felt the need to talk some customers off the ledge shows how poorly understood the approach is. Even worse, investors might be worried about the wrong retirement rule of thumb.
/jlne.ws/3T22lfn
Prometheum Capital Adds Two New Digital Asset Securities to Custodial Platform
Prometheum Capital
Prometheum Ember Capital LLC ("Prometheum Capital"), a subsidiary of Prometheum Inc., announced today the addition of digital asset securities ("DAS") Uniswap (UNI) and Arbitrum (ARB) to its custodial platform. Institutional and corporate clients in the U.S. will be able to custody Ethereum's ether (ETH) token, along with the above digital assets, through Prometheum Capital, a FINRA member firm and SEC-registered special purpose broker-dealer for digital assets. Together, these three DAS have a market cap of nearly $320 billion and are all amongst the top 50 digital assets by market cap.
/jlne.ws/3MhDBM5
Citi, BMO Assist AIIB's Debut $300 Million Digital Bond Issuance; AIIB is first Asia issuer to use Euroclear blockchain platform; Digital bonds remain niche but growing part of fixed-income
Suvashree Ghosh - Bloomberg
The Asian Infrastructure Investment Bank raised $300 million in its first bond issuance underpinned by blockchain technology, aided by Citigroup Inc. and BMO Capital Markets. The AAA-rated note offers a 4% coupon and matures in January 2027, AIIB Treasurer Domenico Nardelli said in an interview, adding the AIIB will assess secondary market demand before deciding on further such sales next year.
/jlne.ws/3YRgBez
Why negative energy prices are becoming more common in Europe
Filip De Mott - Business Insider
Europe's energy prices are trading in negative territory with increasing frequency, and it's because of strong solar and wind generation in the region. In the latest example, Bloomberg reported that power prices in several markets slid below zero for Wednesday. For instance, Germany's day-ahead auction on Tuesday fell under zero for six individual hours, according to cited data from Epex Spot SE.
/jlne.ws/4fVbLmq
Big Tech Dominance Is Forcing Index Superpowers to Rethink Rules; S&P, Russell consult on changes as megacaps test fund limits; Proposals show human hand in passive strategies, critics say
Lu Wang and Isabelle Lee - Bloomberg
The Big Tech boom is causing headaches for all-powerful index providers on Wall Street, who can send billions of benchmark-tracking dollars on the move with just a stroke of the pen. Two of the world's biggest - FTSE Russell and S&P Dow Jones Indices - are presenting plans to undercut the weighting of the largest megacap companies in key indexes. The rare intervention comes as the US equity market becomes increasingly lopsided thanks to the growing dominance of the likes of Nvidia Corp. and Apple Inc.
/jlne.ws/3Au7KVR
Nestle chief executive Mark Schneider to step down; Laurent Freixe appointed top manager after period of underperformance at world's largest food manufacturer
Madeleine Speed and Harriet Agnew - Financial Times
Nestle announced that chief executive Mark Schneider was stepping down, and will be succeeded by company veteran Laurent Freixe, following a period of underperformance at the world's largest food manufacturer. Schneider, who has been chief executive for eight years, "has decided to relinquish his roles as CEO and member of the board of directors", Nestle said on Thursday.
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MIAX receives $100 million capital injection from Warburg Pincus; One of the key initiatives the capital injection is set to contribute to is the construction and fit-out of MIAX's new physical trading floor in Miami, Florida for MIAX Sapphire.
Claudia Preece - The Trade
Warburg Pincus has invested $100 million in Miami International Holdings (MIAX) to support the continued global expansion, subject to certain conditions. MIAX's stated strategy is to build a diversified revenue stream across multiple asset classes and geographies. Thomas Gallagher, chair and chief executive of MIH, said: "The investment will provide MIH with additional funding to expand strategic partnerships in financial futures and proprietary products and will also provide capital to pursue acquisitions in the US and internationally to accelerate our continued growth."
/jlne.ws/4fYtE44
Fireside Friday with... Broadridge Financial Solutions' Chris Perry; The TRADE sits down with Chris Perry, president of Broadridge Financial Solutions, to discuss key pain points the buy- and sell-side are facing with respect to technology, the growing usage of artificial intelligence and digital transformation trends set to shape the year ahead.
Wesley Bray - The Trade
What are the top challenges facing the buy- and sell-side when it comes to technology?
One of the underlying challenges is an over reliance on legacy technology and inadequate IT infrastructure. The shortening of settlement cycles across markets and asset classes, combined with increasing trade volatility, is creating new pressures on manual operational processes for both buy- and sell-side participants across multiple trade lifecycle functions. This includes clearing, settlements, trade execution, margins, and fails processing.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Putin launches propaganda campaign calling Ukraine troops in Kursk 'new normal'
Liz Cookman - The Telegraph
Vladimir Putin's regime has launched a propaganda campaign describing the presence of Ukrainian troops on Russian soil as the "new normal". The Kremlin's messaging is directed at the local Russian population and suggests that Moscow expects the surprise occupation of its territory to last for months.
/jlne.ws/3YWK9r9
Russian ambassador to U.S. says Putin has plan of action for Kursk incursion
Reuters
Russian President Vladimir Putin has formulated a response to the ongoing Ukrainian incursion in the Kursk region and those responsible for attacking Russia will be punished, Russian ambassador to the U.S. Anatoly Antonov said. "I tell you sincerely that the president has made a decision," the TASS state news agency quoted Antonov as saying late on Thursday. "I am firmly convinced that everyone will be severely punished for what has happened in Kursk region."
/jlne.ws/4fWyu1y
Russia keeps trying to replace the bridges that Ukraine destroys. Ukraine is taking out those, too.
Mia Jankowicz - Business Insider
Ukraine says it is destroying Russian pontoon bridges in Kursk before they can even be constructed. On Wednesday, Ukrainian special forces released a video compilation that appeared to show attacks on several Russian efforts to build pontoons, or temporary floating bridges. "Where do Russian pontoon bridges 'disappear' in the Kursk region?" wrote Ukraine's Special Operations Forces Telegram account, adding that its soldiers "accurately destroy them," according to Reuters' translation.
/jlne.ws/4du4b0y
German Nato base on high alert over Russian sabotage threat; Similar incident occurred earlier this month, as Moscow seems to ramp up efforts to destabilise European support for Ukraine
Sam Jones - Financial Times
One of Nato's most sensitive military bases has been put on a state of high alert over intelligence warnings of a potential sabotage attack by Russian agents. Geilenkirchen in north-west Germany, the home of Nato's Awacs aerial reconnaissance fleet, sent all non-essential personnel home on Thursday evening as part of a security lockdown of the base. It was the second such incident at a military site on German territory in less than two weeks. A spokesperson for the facility, close to the Dutch border, said core military operations would not be affected and Nato would continue to operate Awacs flights - which provide the alliance with vital long-range early warning information and intelligence on hostile military activity.
/jlne.ws/3YXPX3E
Mapping Ukraine's Surprise Invasion of Russia
Josh Holder - The New York Times
After two and a half years of fighting a war on their own soil, Ukrainian forces are continuing to advance within Russia, as their surprise invasion of the Kursk region enters its third week. Beginning early on Aug. 6, Ukraine quickly broke through thinly manned border defenses and has now captured dozens of Russian towns and villages, adding a new twist to a war that had largely settled into grueling, block-by-block fighting in towns in eastern Ukraine.
/jlne.ws/3YRIWRW
Russian Attitudes About Putin Might Be Shifting; Negative remarks on social media have increased since Ukrainian troops launched an incursion, according to a firm that tracks Russian attitudes.
Julian E. Barnes - The New York Times
Negative feelings about President Vladimir V. Putin have appeared to increase across Russia since Ukrainian troops pushed into Russian territory two weeks ago, according to a firm that tracks attitudes in the country by analyzing social media and other internet postings. While news outlets in Russia have tried to put a more positive spin on the developments in the war, focusing on the Russian government's humanitarian response, some Russian social media users have expressed discontent.
/jlne.ws/4g7XOBY
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Two Million Gazans Are Now Confined to 15 Square Miles; Israel's widening hunt for Hamas is squeezing Palestinians into ever-smaller areas in the Gaza Strip
Abeer Ayyoub and Rory Jones - The Wall Street Journal
Palestinians in Gaza have long lived in one of the most crowded places on the planet. Since the war broke out there over 10 months ago, the designated space in which they can hope to exist safely has dramatically diminished. Israel has in recent weeks widened its offensive against Hamas in Gaza to areas its military previously marked as safe zones, but where it now says militants are hiding, hemming Palestinians into smaller and smaller portions of the strip.
/jlne.ws/3yE6vTK
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Equities in SPAN 2 Framework Testing and Production Advisory - Effective September 22, 2024
CME Group
In conjunction with CME Clearing's migration of the SPAN 2 framework for calculating performance bond requirements for equities products, daily testing is now available. CME Clearing plans to go-live with equities products in the SPAN 2 framework with the end of day cycle on October 18, 2024, pending regulatory review. This advisory summarizes testing enhancements to support equites products through CME CORE user interface, CORE API, deployable margin software risk parameter files ("RPF") and in MARGIN reports published to clearing members.
/jlne.ws/3YVA7GT
Performance Bond Requirements: Energy, Equity, Interest Rate and Metal Margins - Effective August 23, 2024
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below. The rates will be effective after the close of business on August 23, 2024.
/jlne.ws/3yGBOgG
European retail traders turn to futures as sophistication increases
Eurex
Retail traders across Europe increasingly trade in listed futures and options markets as regulatory curbs hit traditional retail instruments and educational efforts boost sophistication. Eurex spoke with Dominic Schorle, Business Development Manager at WH SelfInvest and Vincenzo Zinna , Equity and Index Sales EMEA at Eurex, about what is driving the growth of retail investment and what it means for strategies and approaches to the market. Retail trading in Europe has traditionally been focused on OTC products such as CFDs, turbos and certificates. However, recent regulatory moves in numerous European countries to reduce the risk of losses incurred by retail traders, have resulted in curbs on marketing of certain products. In response, retail traders are increasingly turning to listed derivatives.
/jlne.ws/3T0hUUP
ICE First Look at Mortgage Performance: Delinquencies improved in July despite Hurricane Beryl's impact on Houston homeowners
ICE
/jlne.ws/3AIybqS
24 232 Change of Membership Category Societe Generale International Limited
LME
The London Metal Exchange (the LME or the Exchange) hereby notifies the market that, with effect from 27 August 2024 and pursuant to Regulation 6.1 of Part 2 of the Rules and Regulations of the LME (the Rules), Societe Generale International Limited (SNC) shall cease to be a Category 1 Member of the LME and shall become a Category 2 Member.
/jlne.ws/3XhdgUE
Caution for Investors
MCX
It has been brought to the notice of the Exchange that website link https://mcxlive.org/ is providing illegal dabba trading platform and misusing the Multi Commodity Exchange of India Ltd. (MCX) brand name. It may be noted that MCX is in no way connected to such dabba trading platform. A police complaint is lodged in this regard. It may be further noted that https://mcxlive.org/ is neither associated with a Member nor an Authorized Person of any of the Members of the Exchange.
/jlne.ws/3YT9Sk7
Miami International Holdings Secures Investment for Strategic Growth from Warburg Pincus
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today announced a $100 million investment from Warburg Pincus, a leading global growth investor. Subject to certain conditions, Warburg Pincus may expand its investment in MIH to support additional growth. The growth investment will accelerate the next phase of MIAX's global expansion as it executes on its strategy of building a diversified revenue stream across multiple asset classes and geographies. Among other uses, the investment will 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. MIAX Sapphire will operate both an electronic exchange and physical trading floor. The electronic exchange successfully launched on August 12, 2024, with the trading floor in Miami scheduled to go live in 2025.
/jlne.ws/3WORPsE
Joint Press Release on Caution to Investors
NSE
23rd August, 2024, Mumbai: It has been brought to the notice of the Exchanges that some unscrupulous persons/ entities operating through Indian and International mobile numbers, through social media platforms like WhatsApp Groups, Telegram Channels, Facebook, Instagram Channels, etc. are falsely claiming to offer trading opportunities through Foreign Portfolio Investment (FPI) or Foreign Institutional Investor (FII) Sub-accounts or Institutional Accounts with special privileges impersonating reputed financial institutions, showcasing fake certificates purportedly issued by SEBI/ Exchanges.These operations often use mobile numbers registered under false names to orchestrate their schemes.
/jlne.ws/3XqHCEF
NYSE Bonds - Addition to the List of Traded Bonds
NYSE
The following bonds will be added at the opening of trading on Monday, August 26, 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/4g0m1dp
Announcement on the Release of Lead Futures Option Contract Specifications, Nickel Futures Option Contract Specifications, Tin Futures Option Contract Specifications and Aluminum Oxide Futures Option Contract Specifications
SFE
Lead Futures Option Contract Specifications, Nickel Futures Option Contract Specifications, Tin Futures Option Contract Specifications and Aluminum Oxide Futures Option Contract Specifications of the Shanghai Futures Exchange, which have been approved by the Shanghai Futures Exchange Board of Directors and reported to the China Securities Regulatory Commission, are hereby released and will come into force as of the date of release.
/jlne.ws/3Xf0PbX
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Bain Is Said to Plan $500 Million IPO for Chipmaker Kioxia; Buyout firm reviving plans to sell shares in Kioxia this year; Bain is working with banks on fresh attempt to list chipmaker
Julia Fioretti - Bloomberg
Bain Capital is pressing ahead with its revived plans for an initial public offering of chipmaker Kioxia Holdings Corp. that could raise about $500 million, according to people familiar with the matter. Bain is working with investment banks on the renewed attempt to list the Japanese NAND flash memory business, the people said, asking not to be identified as the information is private. Kioxia could kick off the IPO as soon as the coming weeks, the people said. Considerations are ongoing and details of the IPO could change depending on market conditions, the people said.
/jlne.ws/3YVlVxi
Japanese chipmaker Kioxia files for Tokyo's biggest IPO of the year; Memory products maker could achieve $10bn valuation as investors pile into AI and chip stocks
Leo Lewis - Financial Times
Kioxia, the Japanese chipmaker taken private by Bain Capital in 2018 in an $18bn buyout, has applied to list on the Tokyo Stock Exchange in what brokers said was likely to be Japan's biggest initial public offering this year. A person close to Kioxia - the former Nand flash memory business of Toshiba - said a listing would seek to raise at least $500mn and exploit the market buzz around semiconductor and artificial intelligence-related stocks.
/jlne.ws/3yPNr4R
Mitsubishi Electric Fights to Keep Up With AI Data Center Demand; Planned production capacity hikes inadequate: executive; MELCO makes optical components needed for high-speed computing
Takashi Mochizuki and Yuki Furukawa - Bloomberg
Mitsubishi Electric Corp. is struggling to meet sustained global demand for optical components used in data centers powering artificial intelligence. The Tokyo-based maker of factory automation is a key supplier of optic fiber communication devices that link servers to one another. AI's appetite for high-speed and high-volume calculations is propelling sales of Mitsubishi Electric's devices, which boast low power consumption and heat emission, according to Masayoshi Takemi, an executive officer in charge of the company's semiconductor and devices business.
/jlne.ws/4du1ZWS
AI-powered coding pulls in almost $1bn of funding to claim 'killer app' status; Software engineering attracts investors but making money from generative artificial intelligence still eludes many
Madhumita Murgia - Financial Times
AI-driven coding assistants have amassed nearly $1bn of funding since the start of last year, a signal that software engineering is becoming the first "killer app" for generative artificial intelligence. Companies such as Replit, Anysphere, Magic, Augment, Supermaven and Poolside AI raised $433mn so far this year alone, bringing the total since January 2023 to $906mn, according to Dealroom. The rush to pour money into AI coding assistants is an indication that computer programming is the first job function to be transformed by the latest wave of AI technology.
/jlne.ws/4fYfPm8
We are a long way from truly open-source AI; If users cannot see the underlying data on models they are not free to reproduce it
Richard Waters - Financial Times
Open-source artificial intelligence has been one of the most surprising tech stories of the past year. As companies such as OpenAI and Google have poured billions of dollars into building ever more powerful AI, "open" models that are freely available for developers to use and adapt have closed the performance gap. There is just one drawback: most of these open-source systems are not very open. Critics accuse their backers of "open washing" - trying to benefit from the halo effect of open source, with its freedom from the constraints of normal commercial software products, but not living up to the name.
/jlne.ws/3T00rM8
Nvidia Is Up 2,000% Since 2019. These WSJ Readers Invested Early; Eight investors share why they bought the chip maker's stock-and how much they have made
Hannah Miao
Nvidia is the market's hottest stock. For some of the amateur investors who got in early, the stock's meteoric rise has minted life-changing money. The stock has more than doubled so far this year, making Nvidia the best performing member of the S&P 500 in 2024, despite recent wobbles. Nvidia's chips power the artificial-intelligence systems that have exploded in popularity in the past couple of years. Investors have rushed to own a piece of a company that they hope is at the vanguard of widespread AI adoption.
/jlne.ws/3YRUa95
Sony, Startale Unveil Blockchain Project in Latest Web3 Foray
Suvashree Ghosh - Bloomberg
/jlne.ws/3X10fxg
How Lidl accidentally took on the big guns of cloud computing; A unit of Europe's largest retailer is offering IT services to companies wary of big providers such as Amazon and Google
Olaf Storbeck - Financial Times
/jlne.ws/4dzpwpg
Data-Center Owners Get an Edge Over Big Tech Tenants, Finally; An AI land grab is lifting shares of the centers' landlords, like Equinix, after years of mediocre rent growth
Carol Ryan - The Wall Street Journal
/jlne.ws/4dTZSvn
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| Cybersecurity | | Top stories for cybersecurity | Regulators May Not Like 'Deepfakes,' But Businesses Are Using Them Anyway; With AI regulation at an embryonic stage, companies are charting their own course in creating audio and video avatars, cognizant of the legal hazards. 'It's a minefield right now,' says one executive
Isabelle Bousquette - The Wall Street Journal
Companies are drawing up their own best practices for the use of AI-generated imagery and video, also known as deepfakes, for a range of business situations, from research to employee training. Amid a dearth of U.S. regulatory guidance on artificial intelligence, it's a delicate dance. Synthetic audio and video in the hands of bad actors has been linked to a swath of ills, from misinformation campaigns to revenge porn. More recently the 2024 election has put the spotlight on the potential for AI-powered falsehoods that risk confusing voters.
/jlne.ws/47f9D5n
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| Cryptocurrencies | | Top stories for cryptocurrencies | Avalanche Becomes Latest Blockchain to Support Franklin Templeton's Tokenized Money Market Fund; The fund, which launched in 2021, currently stands at a $420 million market cap.
Helene Braun - CoinDesk
Avalanche will support Franklin Templeton's tokenized money market fund.(Unsplash) Franklin Templeton's OnChain U.S. Government Money Market Fund (FOBXX) has expanded its availability to the Avalanche network in a bid to expand the fund's base. "I think the Avalanche ecosystem represents a super robust network that allows us to deliver high quality attributes and characteristics to our customers," Roger Bayston, head of digital assets at Franklin Templeton told CoinDesk.
/jlne.ws/3z2piYK
Sony Group teases launch of Ethereum Layer 2 blockchain with Startale Labs
Danny Park - The Block
Global conglomerate Sony Group's joint blockchain venture with Startale announced the development of Soneium, its first Ethereum Layer 2 blockchain that focuses on scalability and user-friendliness with an aim for mainstream adoption. Soneium, upon launch, plans to deliver Web3 apps across a multitude of fields including entertainment, gaming and finance, leveraging Sony's global Web2 presence, Sony Block Solutions Labs said in a statement.
/jlne.ws/3MhRIkD
Why the U.S. might start holding bitcoin in its federal reserve
Rob Nelson - The Street
As bitcoin continues to gain global recognition, the idea of governments holding a strategic reserve of the cryptocurrency is sparking intense debate. Roundtable anchor, Ron Nelson, dives into this concept with Sam Price, host of Crypto Lifer, and Nick Hansen, CEO of Luxor. The discussion centers on whether the U.S. government's potential move to hold 5% of all bitcoin is a smart strategy or a cause for concern
/jlne.ws/3X07bec
BlackRock's Ethereum ETF Surpasses $1 Billion in Net Inflows
Hope C - CoinMarketCap
BlackRock's spot Ethereum (ETH) ETF, the iShares Ethereum Trust ETF (ETHA), has exceeded $1 billion in net inflows. Launched in late July alongside offerings from seven other asset managers, ETHA has outpaced its competition significantly. Fidelity's Ethereum Fund trails behind with $367 million in net inflows, followed by Bitwise's Ethereum ETF at $310 million, and Grayscale's Ethereum Mini Trust at $227 million. However, these three ETFs still fall short of the inflows to ETHA.
/jlne.ws/4fWIOXd
NFT Marketplace Magic Eden Expands Push Outside of NFTs; Platform will now allow token swapping from a mobile app; App will enable swapping of assets across five blockchains
Olga Kharif - Bloomberg
Magic Eden, one of the largest marketplaces for nonfungible tokens, is diversifying into categories such as trading, as demand for the digital collectibles remains below the peak levels of two years ago. On Thursday, the project launched its first mobile wallet app, allowing for trading NFTs as well as swapping cryptocurrencies such as Bitcoin, Ether and Solana. The platform will also begin using a token to be issued by a foundation that supports the ME ecosystem.
/jlne.ws/3XfwrhM
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| Politics | | An overview of politics as it relates to the financial markets | Robert F. Kennedy Jr.'s Expected Exit Could Help Trump, Hurt Harris; Independent presidential candidate is discussing possible endorsement of Republican nominee
Natalie Andrews, Aaron Zitner and Alex Leary - The Wall Street Journal
Independent candidate Robert F. Kennedy Jr.'s anticipated exit from the presidential race could benefit Donald Trump, giving the Republican a small but potentially significant boost in the tight election fight with resurgent Democrats led by newly minted nominee Kamala Harris. Kennedy filed to remove himself from the ballot in Arizona on Thursday, a spokesman for the secretary of state confirmed. He has scheduled an event Friday near where Trump will also be holding a rally.
/jlne.ws/4dYzKzD
Democrats Call for the Elimination of Billions in Oil and Gas Subsidies; In a reversal from 2020, the party now supports clawing back tax breaks for fossil fuels
H. Claire Brown - The Wall Street Journal
Democrats are calling for the elimination of tens of billions of dollars in "unfair oil and gas subsidies," in a reversal from the party's 2020 energy policy likely to be strongly opposed by fossil fuel companies. The official policy platform for the Democratic party, released ahead of this week's convention, touts the Biden administration's climate progress and marks a departure from the party's position four years ago, when a final draft omitted language from an earlier amendment that called for "eliminating tax breaks and subsidies for fossil fuels."
/jlne.ws/3yFyEtD
Harris and Trump Shouldn't Pander to the Crypto Crowd; Digital-currency advocates have raised a huge campaign finance war chest. Candidates should ignore them even so.
The editorial board - Bloomberg
The good news is that business interests are getting support during an election year. The bad news is that the business is crypto. Less than two years after the industry's highest-profile political donor was exposed as a criminal, the lure of campaign donations from the digital-money crowd is once again proving irresistible. Last time, Sam Bankman-Fried lavished cash on candidates in hopes of laxer regulations (before he ended up in federal prison on fraud charges). This time, crypto advocates are raising some millions to oppose unfriendly politicians. That's led some candidates to abandon common sense in pursuit of cash.
/jlne.ws/4dQvNN8
Germany Plans to Make It Easier to Fire Finance High Earners; Government aims to encourage hiring in places like Frankfurt; European rivals have been vying for talent since Brexit vote
Kamil Kowalcze - Bloomberg
The German government has drawn up plans to make it easier to dismiss high earners in the finance industry as the country competes with France and the UK to attract top bankers. Under the plans, existing, less-protective rules for risk takers at systemically important banks will be extended to insurance companies, securities institutions and investment firms, according to a finance ministry document seen by Bloomberg.
/jlne.ws/3SZOOVy
Ukraine is the victim in Germany's botched budget debate; Olaf Scholz's decision to scale back military aid to Kyiv only encourages Russia
Ben Hall - Financial Times
Construction work began this week for a new German army barracks in Lithuania, close to the border with Belarus, which will house some 4,000 Bundeswehr troops by 2027. It is Germany's first permanent overseas military base since the second world war. The beginning of the project should have been a celebration of Berlin's leadership role in bolstering European security more than two years after Russia's full-scale invasion of Ukraine. Instead, the occasion was eclipsed by a furore over shrinking military support for Ukraine that has displayed Berlin's weakness not its strength.
/jlne.ws/4dQz27g
Ambassador Warns of Drug Cartel Risks to Mexican Judiciary from AMLO Bill; Ambassador Ken Salazar publishes statement on reform; Election of judges is 'major risk' to democracy, Salazar says
Alex Vasquez - Bloomberg
Drug cartels will find it easier to infiltrate Mexico's judiciary if a plan to have judges elected by popular vote is approved, according to a senior US official. The proposal, the core objective of President Andres Manuel Lopez Obrador's judicial reform, is a "major risk" to the functioning of the nation's democracy, according to US Ambassador to Mexico Ken Salazar.
/jlne.ws/4dVqjAU
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| Regulation & Enforcement | | Stories about regulation and the law. | Crypto Fund Settles With NFA Over $2.5M Bitcoin Loan
Bitcoin.com
Cryptocurrency fund Ikigai Strategic Partners has agreed to pay a $150,000 fine to the National Futures Association (NFA) following allegations of an illicit bitcoin loan, according to an Aug. 20 decision by an NFA hearing panel. The fine addresses the fallout from the industry-wide liquidity crisis triggered by the collapse of crypto exchange FTX in 2022. The NFA, which regulates the U.S. derivatives market, has been increasingly active in overseeing spot cryptocurrency markets. The NFA's complaint asserted that Ikigai Strategic improperly allowed one of its pools to advance pool assets to an affiliated entity owned by its principals, including Anthony Robert Emtman. In 2022, Ikigai allegedly loaned $2.5 million worth of bitcoin to a crypto exchange to benefit another fund they controlled. This action, which violated regulatory obligations, left Ikigai unable to meet investor redemption demands. Without admitting or denying the allegations, Ikigai Strategic and its principal agreed to the settlement.
/jlne.ws/4dtxznE
Wamco Investigation Examining 17,000 Trades Over Three Years Scrutiny falls on Ken Leech's allocation of transactions; The SEC and Department of Justice also have probes underway
Silla Brush and Sabrina Willmer - Bloomberg
Western Asset Management Co. is examining a subset of about 17,000 trades conducted by Ken Leech as the firm seeks to unravel how the veteran fixed-income investor's allocations among various accounts triggered US enforcement investigations. Trades made between spring 2021 and autumn 2023 are the subject of an internal investigation begun in October after a company insider flagged abnormalities in the allocations, according to Max Curtin, an analyst at Morningstar Inc. who has talked with the firm since it put Leech on immediate leave this week.
/jlne.ws/3Mj5J1y
Anil Ambani banned from Indian securities market for 5 years
Jayshree P Upadhyay - Reuters
India's markets regulator late on Thursday banned Anil Ambani, one of India's best-known businessmen, and 24 others from the securities market for five years on charges of diversion of funds. The Securities and Exchange Board of India (SEBI) also imposed a fine of 250 million rupees (about $3 million) on Ambani, saying he orchestrated a scheme to "siphon off" funds from Reliance Home Finance Ltd , a listed subsidiary of conglomerate Reliance Group of which he is chairman.
/jlne.ws/3ABTgDy
FCA chair accused of breaching whistleblower's confidentiality; UK financial watchdog has own stringent rules around treatment of employees who reveal wrongdoing
Ellesheva Kissin - Financial Times
The chair of the UK's financial watchdog has been accused of breaching the confidentiality of an internal whistleblower who wrote to him asking for help, violating the code of conduct he presides over. Ashley Alder, chair of the Financial Conduct Authority, forwarded on correspondence in December and March with the complainant's name, address and concerns unredacted, according to emails. The FCA's whistleblowing policy states: "Your identity will not be revealed without your consent."
/jlne.ws/4cxoede
ASIC continues action on misleading claims to deter greenwashing misconduct
ASIC
ASIC has made 47 regulatory interventions to address greenwashing misconduct during the 15-month period up to 30 June 2024, including the commencement of two Federal Court proceedings and over $123,000 in infringement notice payments. The range of interventions, outlined in Report 791 ASIC's interventions on greenwashing misconduct: 2023-2024 (REP 791), are aimed at stamping out misleading and deceptive conduct in relation to sustainable finance-related products and services.
/jlne.ws/4dxF7pj
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | China Bond Trading Collapses Amid PBOC Crackdown on Record Rally; Trading volumes over last two weeks have slumped about 90%; Regulators have been ramping up a crackdown on speculation
Bloomberg News
China's attempts to cool a record bond rally have stalled a drop in yields, but at the cost of a collapse in trading activity to an extent that may create more headaches for policymakers. Trading in the most active 10-year government bond has steadily decreased over the last two weeks, with the average daily volume on Wednesday and Thursday some 90% below the average of August 7th and 8th, according to data from the official trading system CFETS. The volume slump comes as Beijing ramps up measures to crack down on speculation in longer-dated bonds, including a warning this week against "illegal" trading.
/jlne.ws/472KH0z
Nestle's Struggling Shares Cast Shadow Over Schneider's Tenure; Shares lag behind Europe's benchmark index under Schneider; Analyst says investors were unhappy with stock performance
Lisa Pham - Bloomberg
Nestle SA's weak share-price performance in recent years has cast a shadow over Mark Schneider's time as chief executive officer of the consumer-goods giant. The Swiss firm's shares have slid more than 30% since reaching a record in early 2022 to hover near a five-year low on Friday, after the company's surprise announcement to replace Schneider with its Latin America chief Laurent Freixe.
/jlne.ws/475JtSs
Currency Market's Biggest Short Bet Tested as Loonie Rallies
Carter Johnson - Bloomberg
Traders have piled into record wagers against the loonie, betting that a rapidly slowing Canadian economy and a dovish central bank will deepen the currency's 2024 decline. Hedge funds and asset managers amassed a roughly $14 billion short position in the Canadian dollar in early August, Commodity Futures Trading Commission data show. It was the largest for the loonie in data going back to the 1990s and nearly double the prior peak bet on losses in Canada's currency. The stance has since shrunk a bit as the loonie has strengthened the past few weeks, but it's still quadruple the size of the next biggest currency short: against the Swiss franc.
/jlne.ws/4cAvqVX
The new gold rush reflects the world's deep worries; The price of gold reached a record high this week, driven by concerns over inflation and instability
John Gapper - Financial Times
When the Dutch navy sailed up the Thames estuary in 1667 and launched a surprise attack on British ships, the naval administrator and diarist Samuel Pepys panicked that "the whole kingdom is undone". He sent his wife and father out of London with the gold pieces in which he kept his wealth to bury them in a garden. Today's Chinese and Indian buyers of jewellery and bars are not the first people to trust in gold for financial protection. It does not pay any dividends and it is very heavy, but in periods of war, crisis, inflation and turmoil, it is comforting to have around. "When bad things happen, gold comes into its own," says John Reade, market strategist for the World Gold Council.
/jlne.ws/3yPMmKl
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | China's Top Solar Firm Reports Profit Jump on Clean Energy Boom
Bloomberg News
Sungrow Power Supply Co., China's largest solar equipment manufacturer by market capitalization, reported a surge in its profit in the first half of the year as the country's stellar renewable power expansion continues to fuel demand. Net income increased 13.9% from a year earlier to 4.96 billion yuan ($695 million) during the January-June period, the company said in a stock exchange filing Friday. China is set to see another year of record solar installation as the nation pushes for a massive renewable buildout mainly in its interior. It's set to expand the solar capacity by as much as 220 gigawatts this year, which would boost market demand for key equipment.
/jlne.ws/4fTSbal
Can UK industry make carbon capture work? The technology offers huge benefits for polluters struggling to reduce emissions and meet climate goals, but it is untested at scale
Rachel Millard - Financial Times
In a control room surrounded by the Welsh countryside, Simon Willis watches as engineers fire up the kiln, ratcheting it up to 1,400C to break down limestone to make cement for Britain's planned construction boom. Bone meal, wood, cardboard and other waste have helped replace coal in the fuel mix. But the Padeswood cement plant still belches about 650,000 tonnes of carbon dioxide each year, mostly from the limestone as it breaks down, putting it on the wrong side of the nation's push to limit climate change.
/jlne.ws/3T00rf4
Most Climate Policies Don't Work. Here's What Science Says Does Reduce Emissions; Relying on green subsidies alone has failed, but combining various economic tools has helped limit climate-warming emissions
Eric Niiler - The Wall Street Journal
An evaluation of more than 1,500 climate policies in 41 countries found that only 63 actually worked to reduce greenhouse gas emissions. Subsidies and regulations-policy types often favored by governments-rarely worked to reduce emissions, the study found, unless they were combined with price-based strategies aimed at changing consumer and corporate behavior.
/jlne.ws/4cAAiud
China Hits Xi Jinping's Renewable Power Target Six Years Early
Bloomberg
China's world-leading clean energy boom has passed another benchmark, with its wind and solar capacity surpassing a target set by President Xi Jinping almost six years earlier than planned. The nation added 25 gigawatts of turbines and panels in July, expanding total capacity to 1,206 gigawatts, according to a statement from the National Energy Administration on Friday. Xi set a goal in December 2020 for at least 1,200 gigawatts from the clean energy sources by 2030.
/jlne.ws/3Tp2idN
Analysis-Brazil's grid caps power from wind and solar, threatening renewable projects
Leticia Fucuchima - Reuters
Wind and solar energy producers in Brazil have warned they are reconsidering future investments there after the national grid operator repeatedly capped how much energy they could deliver in the past year, which squeezed their profits. Brazil has made big strides encouraging companies to invest in wind, solar and other renewable power generation sources, offering generous financing and subsidies. But all the electricity they generate has taxed the grid.
/jlne.ws/3T0jS7F
World's largest uranium producer slashes production target; Move by Kazakh mining company Kazatomprom threatens to squeeze supplies of the radioactive fuel
Harry Dempsey - Financial Times
Kazatomprom, the world's largest uranium producer, has slashed its production target for 2025 due to project delays and sulphuric acid shortages, threatening to squeeze supplies of the radioactive fuel vital for nuclear power. The Kazakh company, which generates a fifth of global uranium supply, cut its target for next year by 17 per cent to a range of 25,000 to 26,500 tonnes of yellowcake.
/jlne.ws/475Ngza
Financing Push Aims to Unlock Billions to Curb Methane Leaks; CBI and IEA among organizations working on new guidelines; Some countries face funding constraints for methane projects
Aaron Clark - Bloomberg
/jlne.ws/4fWbq2P
Iceland Volcano Erupts as Lava Surges Mark New Fiery Era; Eruption is the sixth within a year in Reykjanes peninsula; Flights disruptions are not expected at main airport nearby
Ragnhildur Sigurdardottir - Bloomberg
/jlne.ws/4fUzZgO
German Shell whistleblower says Chinese emission reduction oilfield was actually a chicken farm
Ryan Hogg - Fortune
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Unilever's sustainability rethink cheers investors but unsettles staff; New chief executive Hein Schumacher is reshaping the business and cutting jobs
Madeleine Speed - Financial Times
/jlne.ws/4fUzd3k
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Swiss Minister Rebuffs UBS Lobbying Against More Capital; Karin Keller-Sutter speaks in interview with L'Agefi; UBS, Swiss government have sparred over new capital rules
Myriam Balezou
Swiss Finance Minister Karin Keller-Sutter made clear that the current lobbying campaign by UBS Group AG against new capital requirements isn't going to sway her. "It's normal that UBS defends its interests, because upcoming legislation will cost them more," Keller-Sutter told L'Agefi in an interview Friday, referring to rules proposed by the government that would substantially increase how much capital the bank needs to hold. She still supports the change as "it's only natural that larger banks should be better capitalized."
/jlne.ws/4dVcm5T
Jefferies-Led Bank Group Loses $15 Million Underwriting M2S Loan; Loan priced at 93 cents on the dollar with four banks involved; Jefferies absorbing about half the loss, said person familiar
Gillian Tan - Bloomberg
A bank group led by Jefferies Financial Group Inc. has lost about $15 million after being forced to sweeten terms on a leveraged loan for M2S Group Intermediate Holdings Inc., according a person with knowledge of the matter. Jefferies is absorbing about half the loss, said the person, who requested anonymity to discuss confidential information.
/jlne.ws/3YUAQI8
The Hottest Way for Banks to Get Risk Off Their Balance Sheets; Tracing the development of synthetic risk transfers.
Tracy Alloway and Joe Weisenthal - Bloomberg
Synthetic risk transfers, in which banks purchase insurance-like protection on some of their loans, is a growing market on Wall Street, with billions worth of deals made in the US last year. But of course, anything with the words "synthetic" and "risk transfer" is probably going to remind people of the 2008 financial crisis, when securitizations of loans blew up and infected the banking system. So what exactly are these new trades? Why do banks want to do them and what are investors getting in return for taking on this risk? In this episode, we speak with Michael Shemi, North America structured credit leader at Guy Carpenter, about what these deals are, how they're structured, and what they say about bank capital and the wider financial system.
/jlne.ws/3XhdNpC
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | 'It's Just Atrocious': Jobs Data Snafu Stirs Fury on Wall Street; Traders vent over latest mishap with Labor Department data; Confusion reigned during trading frenzy as number trickled out
Liz Capo McCormick, Natalia Kniazhevich, Ye Xie, and Elena Popina - Bloomberg
There's no shortage of market-moving events on the docket to keep Wall Street busy right now. But as traders and analysts game plan for Federal Reserve Chair Jerome Powell's Jackson Hole speech and then Nvidia's earnings and economic-growth data next week, many of them are stuck on Wednesday's botched government release of jobs data and the way it sowed chaos across stock and bond markets. And they didn't mince words. "It's just atrocious," said Glen Capelo, a managing director at Mischler Financial Group. "There's a big problem," said Claudia Sahm, chief economist at New Century Advisors. "It's crazy," said Andrew Brenner, head of international fixed income at NatAlliance Securities.
/jlne.ws/3YQqfhw
A Nation of Workaholics Has a New Fixation: Working Less; Fresh statistics are blowing a hole in Germany's reputation for hard work as a new generation discovers the joys of taking it easy
Bertrand Benoit - The Wall Street Journal
Germany invented the Protestant work ethic. Now it is falling out of love with the grind. Germans worked 1,343 hours on average last year, less than anyone else in the OECD, a club of 38 rich nations. Germans also took 19.4 sick days last year, according to the Techniker Krankenkasse, the country's largest health insurer, the highest number ever recorded. Ending a decadeslong hiatus, trade unions have begun pushing for shorter working hours-not just higher pay. Coaches, sociologists, and organization consultants are extolling the virtues of putting one's feet up as a cure for burnouts, broken families, low productivity and even climate change.
/jlne.ws/3WWPPyL
As Generation X Approaches Retirement, Reality Still Bites; The 'forgotten generation,' born between 1965 and 1980, launched their careers at the start of a massive shift in how Americans work.
Hannah Miao - The Wall Street Journal
The oldest members of Gen X are turning 60 next year. Many can't afford to stop working any time soon. Born between 1965 and 1980, Gen Xers launched their careers at the start of a massive shift in how Americans work. Companies moved from pensions that promise steady income after years of service, to plans such as 401(k)s that place employees' retirement destiny in their own hands. Some Gen Xers were hit hard in their prime working years during the 2008 financial crisis. Others are still paying off student debt. Their children are increasingly living at home well into adulthood, while their own aging parents often require care. Few believe they can rely on Social Security to make ends meet later in life.
/jlne.ws/4dB49E9
The myth of deglobalisation hides the real shifts; Despite distortions by the pandemic and the rise of China, cross-border trade looks healthy
Klaus Baader - Financial Times
The trade war of former US president Donald Trump and the supply chain snarl-ups caused by Covid turned deglobalisation into a mainstream topic. And two developments in the past two years suggest that the process might indeed have begun. The first of these is the fact that global trade in goods in 2023 declined by a little over 1 per cent even though global GDP expanded by a trend-consistent 3.2 per cent, according to the IMF. This is unusual. However, we see this pullback in part as a normalisation after the extraordinary rebound in 2021-22 of the world economy following the pandemic. As a result, by the third quarter of 2022, global trade was almost 9 per cent above the pre-Covid level, and ahead of trend.
/jlne.ws/3XgHhEc
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| Wellness Exchange | | An Exchange of Health and Wellness Information | FDA authorizes updated COVID vaccines. Who should get the shot and when, according to experts.
Natalie Rahhal - Yahoo Life
Updated COVID-19 vaccines have now been authorized by the U.S. Food and Drug Administration. New versions of the shots made by Pfizer and Moderna are set to hit doctors' offices, pharmacies and health centers in the coming days and weeks, experts tell Yahoo Life. In previous years, the FDA has made its decision on the shots during the first week of September. But amid this summer's surge in COVID cases, experts say the FDA rushed to greenlight the immunizations early.
/jlne.ws/4cGY2wK
The FDA Approved New Covid Vaccines. Should You Get One? Public health officials say everyone, but especially older people, should get them
Liz Essley Whyte and Peter Loftus - The Wall Street Journal
New Covid-19 shots are on their way, leaving plenty of time to get them before respiratory illness season this fall. The Food and Drug Administration on Thursday gave Moderna-as well as Pfizer and its partner BioNTech-the green light to roll out their new shots in the coming days, both of which target an offshoot of Omicron known as the KP. 2 strain. The two shots will be available to anyone over 6 months of age, a move that comes as Covid hospitalizations continue to climb and remain higher than they were at this time last year, according to data from the Centers for Disease Control and Prevention.
/jlne.ws/3T03P9O
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | The Japanese Yen's New Era of Volatility; In this Bloomberg Originals mini-documentary, we explore how the currency and the "carry trade" managed to trigger a global market panic.
Ruth Carson - Bloomberg
Japan's currency was at the center of a global market meltdown in early August when a decision by the nation's central bank sparked a panic from Tokyo to Europe and New York. Fueling the wild market gyrations was the surging yen, which was suddenly super-charged following a hawkish move by the Bank of Japan. In the Bloomberg Originals mini-documentary Why the Japanese Yen Is So Volatile, we explain how the yen had been used to fund purchases of everything from emerging-market currencies to tech stocks-so-called carry trades. We also show why investors across the globe had to cover losses when-thanks in part to a rise in Japanese interest rates-their bets backfired in spectacular fashion.
/jlne.ws/3T1yqUu
Singapore, Malaysia Want to Build Their Own Shenzhen-Style Mega-Hub; A renewed effort to weave together the economies of Singapore and southern Malaysia could benefit both nations, if political challenges can finally be overcome.
Ram Anand and Chanyaporn Chanjaroen - Bloomberg
A bid to turn one of the world's busiest border regions into a trading and transportation mega-hub could bolster the economies of Singapore and Malaysia and help cement Malaysia Prime Minister Anwar Ibrahim's grip on power - if a long history of political roadblocks and delays don't stand in the way. Negotiators from both nations are finalizing an accord to designate part of Malaysia's southern Johor state as a cross-border special economic zone (SEZ) before the end of the year. Tech firms including Nvidia Corp. and GDS Holdings Ltd. are already investing in data-center parks that are expected to benefit - and expand - under the agreement.
/jlne.ws/3ZfrRSj
FOMO Frenzy Fuels Taiwan Home Prices Despite Threat of China Invasion; Sure, Beijing is increasingly belligerent, but real estate is soaring as desperate buyers pile into the market.
Hailey Wang - Bloomberg
Over two days in June, dozens of Chinese warplanes flew close to Taiwan, part of an increasingly routine effort to amp up pressure on an "instigator of war," as Beijing leadership labels the island's new president. Even as the jets were buzzing the skies offshore, in the leafy, lakeside Taipei district of Neihu, 30 prospective buyers were queuing up to view a NT$32 million ($1 million) house.
/jlne.ws/3X57GUq
Alibaba to Upgrade Hong Kong Listing to Tap Chinese Traders; The Hong Kong listing will become primary on Aug. 28; Its shares significantly underperformed Tencent's this year
Bloomberg News
Alibaba Group Holding Ltd. shareholders have approved a plan to upgrade its Hong Kong listing to primary status on Aug. 28, a maneuver expected to attract billions of dollars in investment from mainland China. Shareholders ratified the decision as expected to convert the Hong Kong listing, a plan first broached two years ago amid heightened tensions with the US. That allows Alibaba to join a program that connects the Shanghai and Shenzhen bourses to Hong Kong's exchange. The stock opened largely unchanged in Hong Kong on Friday.
/jlne.ws/3Xfr1mP
Dutch Prosecutors Probe Trader Vitol's Activity in Kazakhstan
Archie Hunter, Cagan Koc, and Jack Farchy - Bloomberg
Commodity trading giant Vitol Group is being investigated by the Dutch Public Prosecution Service for its activities in Kazakhstan, the latest legal worry for the world's largest independent oil trader. "Vitol has been contacted by a Dutch authority regarding certain historic activities in Kazakhstan. We will of course cooperate with any inquiry," a spokesperson for the company said.
/jlne.ws/3MkgrVm
Zambia Rejects 156% Power-Price Rise as Drought Deepens Cuts
Taonga Mitimingi and Matthew Hill - Bloomberg
Zambia's energy regulator refused the state power utility's proposal to increase electricity tariffs by as much as 156% to cover the cost of emergency supplies, citing the negative impact it would have on inflation and jobs. The application from Zesco Ltd. presented an "impossible" way of raising its required revenues, Energy Regulation Board Chairman James Banda said Friday, adding his organization would work with the utility to find an alternatives to fund pricey power imports.
/jlne.ws/3WZyJQD
Grenada triggers 'hurricane clause' to suspend bond payments; First-ever debt pause linked to natural disaster could spur wider adoption
Joseph Cotterill and Lee Harris - Financial Times
/jlne.ws/3YV47lY
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| Miscellaneous | | Stories that don't quite fit under the other sections | 'Never Enough' Review: The Burden of Billions; After becoming fabulously wealthy, an entrepreneur learns that flashy purchases are not the key to happiness.
Daniel Freedman - The Wall Street Journal
Entrepreneurs who push their way through the grueling process of building companies can usually be divided into those who dream of bettering the world and those who dream of becoming billionaires. The latter invariably end up being disappointed-even, or especially, if they hit their financial goals. Andrew Wilkinson is in that camp. He went from being a barista and college dropout to being a billionaire. He and Chris Sparling co-founded Tiny, a Canadian technology conglomerate modeled on Berkshire Hathaway. Tiny holds majority shares in numerous small companies, including AeroPress, a cult coffee-equipment manufacturer; Letterboxd, a popular social-media/microblogging hybrid focused on movies; and many online design and development companies.
/jlne.ws/46X6jvc
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