| August 15, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
Today is the birthday of the modern financial markets era. It was 53 years ago today, on August 15, 1971, that President Richard Nixon announced the suspension of the U.S. dollar's convertibility into gold, effectively ending the gold standard. This event is commonly referred to as the "Nixon Shock." It marked the transition to a fiat currency system, where the value of currency is not directly tied to a physical commodity like gold. You can watch Nixon's announcement demonizing "international money speculators" in this YouTube video where he announces the end of the Bretton Woods International Monetary System.
The SEC is seeking public comments on the information collection process for Form 1-K, which is used by Tier 2 issuers under Regulation A to file annual reports. These reports include audited financial statements and details about the issuer's operations, management, and resources. The SEC estimates that 353 issuers file Form 1-K annually, with each submission taking about 600 hours to prepare, totaling 158,850 hours of annual burden.
Additionally, the SEC is seeking public comments on the information collection process for Form 1-U, which is used by Tier 2 issuers under Regulation A to report significant events or changes in their business within four business days. The SEC estimates that approximately 1,502 issuers file Form 1-U annually, with each report taking about 5 hours to prepare, resulting in a total annual burden of 6,384 hours.
The public is invited to comment on the necessity, accuracy, and ways to improve or reduce the burden of this information collection within 60 days of the notice, by October 15, 2024.
Regulation A, an SEC exemption from the full registration requirements of the Securities Act of 1933, allows companies to raise capital through two tiers: Tier 1 and Tier 2 issuers. Tier 1 issuers can raise up to $20 million within a 12-month period and are subject to basic disclosure requirements, but they do not have ongoing reporting obligations after the offering unless they become subject to the reporting requirements of the Securities Exchange Act of 1934. In contrast, Tier 2 issuers can raise up to $75 million within the same period and must comply with more stringent disclosure and reporting requirements, including providing audited financial statements and filing annual, semi-annual, and current event reports with the SEC. Additionally, Tier 2 issuers are exempt from state-level securities regulations, which facilitates offering securities across multiple states. This makes Regulation A a streamlined alternative to a traditional IPO for companies seeking to raise capital, with Tier 2 issuers benefiting from the ability to raise larger amounts while adhering to stricter oversight.
Eurex has published a report titled "Charting a new future for real estate: FTSE EPRA Nareit futures" prepared by Bruce Gunn of Susquehanna International Group, Jason Radzik of Bridge Four Capital, David Moreno of EPRA, Dominique Moerenhout of EPRA, John Worth of Nareit, Ali Zaidi of FTSE Russell, and Matthew Riley of Eurex
The report discusses the evolution and future of the listed real estate market, focusing on Eurex's launch of FTSE EPRA Nareit futures. These futures represent a significant advancement in listed real estate investment, offering enhanced access and risk management for investors. The growing maturity of the listed real estate market is evident, with its expansion into new sectors like student housing and data centers. Listed real estate has become increasingly attractive to various investors, including pension funds and individual investors, due to its potential for yield generation and portfolio diversification. The total value of commercial real estate covered by the FTSE EPRA Nareit index is approximately $36.7 trillion, with the listed sector valued at $3.2 trillion.
The listed market offers greater transparency and liquidity compared to private real estate, making it easier for investors to enter and exit positions. The FTSE EPRA Nareit indexes provide a reliable benchmark for performance, allowing for better risk management. Real Estate Investment Trusts (REITs) play a crucial role in the listed market, making up more than half of its total market capitalization. The introduction of REIT regimes in various countries has spurred growth in this sector.
The report identifies the transition to sustainability as a significant challenge and opportunity for the real estate market. Investors are increasingly seeking high-performing, sustainable real estate investments, driving the need for sophisticated investment products and strategies. The positive reception of the FTSE EPRA Nareit futures suggests further product development in the derivatives market, enhancing liquidity and trading opportunities for investors, the authors wrote.
Here are excerpts from in front of FOW's paywall from some of today's stories: US firms will face restricted access to Eurex's MSCI Information Technology Index futures due to regulatory index make-up rules from September. Intercontinental Exchange (ICE) plans to enhance its clearinghouse to support the vast US Treasury market, mirroring its previous success with credit default swap (CDS) clearing. TP ICAP focuses on consolidating its strengths in natural gas, power, and oil within the Americas energy broking market. Meanwhile, a CFTC commissioner dissented against the agency's fines on Cowen and Co, TD Bank, and Truist Bank for recordkeeping failures.
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 FIA Operations Americas Division is hosting Washington Update 2024 on October 9 from 3:30 PM - 6:30 PM CT at the Union League Club in Chicago, 65 W. Jackson Blvd. Join FIA CEO Walt Lukken, FIA VP of US Government Relations Kyle Glenn, and Washington insider Jimmy Ryan, managing partner and co-founder of Avoq, for a discussion on the upcoming Presidential election and its impact on the regulatory landscape, crypto legislation, and the derivatives markets. There will be a networking reception immediately afterward with light hors d'oeuvres and drinks provided. There are fees associated with attending, and the event is closed to the press. For more information and to register, go here.~SR
Our most read stories from our previous edition of JLN Options were:
- Why a historic surge in the VIX wasn't the signal investors thought it was from MarketWatch.
- MIAX Sapphire joins OCC from The Trade.
- When Others Are Fearful, Try This Options Strategy from Barron's. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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| Sponsored Content |
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The Bacon Apocalypse That Wasn't; After a California animal-welfare law took effect, feared pork shortages haven't materialized. But the Golden State is paying higher prices.
H. Claire Brown - The Wall Street Journal
Last July, as California businesses braced for the impact of a long-delayed animal-welfare law, some market watchers worried that the new rules would lead to bacon shortages and sky-high prices. Worse, it was feared, California voters' decision would ripple outward and increase pork prices across the rest of the country. So far, the shortage fears have proven overblown. But one thing is clear: Californians are paying more for certain cuts like bacon and pork loin at the grocery store, according to checkout scanner data analyzed by the U.S. Department of Agriculture.
/jlne.ws/46Lp5FU
****** I cooked five pounds of bacon for my family this weekend. I didn't hear a squeal about any apocalypse.~JJL
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UBS to liquidate $2 billion real estate fund as office downturn bites
Reuters
UBS is to liquidate a $2 billion real estate fund it acquired when it bought Credit Suisse, the Swiss bank said on Thursday, in the latest sign of investors selling out of troubled commercial property markets. The fund, which holds four-fifths of its assets in offices, had faced investor redemption requests but the Swiss bank said meeting those would require selling assets at an "inopportune time", impacting existing investors. UBS concluded it was better to wind down the entire fund.
/jlne.ws/3M7EF5a
***** Maybe there are better ways to invest in commercial real estate?~JJL
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Gamblers Are Dumping Stocks to Bet on Sports, New Study Says; Gaming group says sports wagering is for fun, not investment; Robinhood guides meme crowd to more sensible way of investing
Lu Wang - Bloomberg
As sports gambling takes off in the US, turning quickly into a multi-billion dollar business, a worrisome trend is starting to emerge: Americans appear to be yanking money out of their stock-brokerage accounts to fund their online betting. This is the key finding laid out in a recent working paper titled Gambling Away Stability: Sports Betting's Impact on Vulnerable Households. It claims to find evidence that for every dollar spent on the recreational activity - now legalized in most states since 2018 - net investments in stocks and other financial instruments dropped by just over $2.
/jlne.ws/4dKe7CR
****** Now here is your apocalypse, the stock bettors' apocalypse.~JJL
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Wednesday's Top Three
The Financial Times hit a triple with all of our three top stories on Wednesday. First was Japanese prime minister Fumio Kishida to step down. Second was Australian regulator sues stock exchange over botched blockchain upgrade. And third was How hedge funds are fighting back against the SEC's 'aggressive' agenda
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| Lead Stories | Dozens of financial groups to pay nearly $400mn in SEC texting probe; Companies that self-reported violations are facing smaller fines than those which did not disclose the conduct
Will Schmitt - Financial Times
Twenty-six Wall Street companies have agreed to pay $393mn to the Securities and Exchange Commission to settle the latest round of charges over employee texting and messaging on platforms such as WhatsApp about business matters. Ameriprise, Edward Jones, LPL Financial and Raymond James are among the financial groups settling with the SEC, with each of those four paying $50mn in penalties, the regulator announced on Wednesday. The fines range as high as $50mn a company and as low as $400,000, the regulator said, noting that the groups which self-reported violations will pay "significantly lower" penalties than they otherwise would have.
/jlne.ws/4fNrkgc
Energy Trader Vitol Fined by US for Bets on Live Cattle Futures
Archie Hunter - Bloomberg
The US Commodity Futures Trading Commission fined Vitol Group half a million dollars for breaching position limits on exchanges trading cattle futures and crude oil. The breaches, which involved the trading house holding a larger amount of contracts for the commodities than are allowed by US regulators, took place in 2022, the CFTC announced on Wednesday. In cattle, Vitol held 771 December 2022 CME Live Cattle Futures contracts - the equivalent to more than 30 million pounds of steers or heifers - and 171 more than the federal spot month speculative limit of 600 contracts, according to the CFTC.
/jlne.ws/3WK8Gx2
ASIC goes hard on the ASX; The notion of the corporate regulator taking on the sharemarket operator in Federal Court is a pretty momentous step. Yet there's no hesitation in Joe Longo's hard tackle.
Jennifer Hewett - AFR
Ouch. Joe Longo says that when the ASX "falls short" of expectations on it as a place to list and invest with confidence, it has wide-ranging consequences across the market. Some very specific consequences are now apparent in the decision by the Australian Securities and Investments Commission to go after the ASX in court.
/jlne.ws/46Oi9Ib
Firms Hit With More Than $475 Million in Fines for Failing to Monitor Traders' Texts; Truist, TD Bank among those fined-the latest in a wave of enforcement actions against traders' use of messaging apps such as WhatsApp
Dylan Tokar and Victor Swezey - The Wall Street Journal
Truist, TD Bank and a host of other financial firms agreed to pay a total of more than $475 million in fines to regulators, the latest in a yearslong sweep focusing on traders' use of so-called off-channel communication platforms such as WhatsApp and iMessage. In an enforcement action announced Wednesday, the U.S. Securities and Exchange Commission said it was charging 26 firms for failing to monitor and preserve certain electronic communications. The Commodity Futures and Trading Commission also imposed additional penalties against three of the firms the SEC had fined over similar violations.
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Vitol to pay $500,000 to settle CFTC charges over position limits
Reuters
Global oil trader Vitol SA has agreed to pay $500,000 to settle civil charges from the U.S. Commodity Futures Trading Commission the firm violated position limits for certain exchange-traded oil and cattle contracts, the regulator said on Wednesday. Traders face limits to the scale of the speculative positions they can hold for certain commodities contracts. Vitol's Houston affiliate and the Geneva-based firm violated those limits a handful of times during 2022, the CFTC said.
/jlne.ws/3X51Nb1
Research AI model unexpectedly modified its own code to extend runtime; Facing time constraints, Sakana's "AI Scientist" attempted to change limits placed by researchers.
Benj Edwards - Ars Technica
On Tuesday, Tokyo-based AI research firm Sakana AI announced a new AI system called "The AI Scientist" that attempts to conduct scientific research autonomously using AI language models (LLMs) similar to what powers ChatGPT. During testing, Sakana found that its system began unexpectedly attempting to modify its own experiment code to extend the time it had to work on a problem. "In one run, it edited the code to perform a system call to run itself," wrote the researchers on Sakana AI's blog post. "This led to the script endlessly calling itself. In another case, its experiments took too long to complete, hitting our timeout limit. Instead of making its code run faster, it simply tried to modify its own code to extend the timeout period."
/jlne.ws/3yJspEX
CFTC wants to transform enforcement work through AI and data 'marathon'; Ted Kaouk, the agency's chief AI and data officer, said the derivatives regulator is undergoing a "significant" overhaul of its oversight capabilities thanks to the emerging technology.
Matt Braken - Fedscoop
Few agency workers across the federal government are more closely and publicly associated with their area of expertise than Ted Kaouk is with data. A Naval Academy grad with a PhD in English from Maryland, Kaouk carved out that association during lengthy chief data officer stints with the Department of Agriculture and Office of Personnel Management, plus a three-and-a-half-year term as chair of the Federal CDO Council.
/jlne.ws/3AqbFD9
The ETF industry's shark-jumping moment; The Fed needs to jack up rates NOW
Robin Wigglesworth - Financial Times
What fresh hell is this? Defiance ETFs is proud to unveil MSTX, the first single-stock long leveraged ETF for MicroStrategy. MSTX seeks to provide 175% long daily targeted exposure to MicroStrategy. Defiance's single-stock ETFs provide leveraged exposure to disruptive companies without the need for a margin account.
/jlne.ws/3AyY5xc
Eric Schmidt Walks Back Claim Google Is Behind on AI Because of Remote Work; Ex-Google CEO had said the tech company's work-life balance was 'more important than winning'
Joseph De Avila - The Wall Street Journal
Eric Schmidt, ex-CEO and executive chairman at Google, walked back remarks in which he said his former company was losing the artificial intelligence race because of its remote-work policies. "I misspoke about Google and their work hours," Schmidt said Wednesday in an email to The Wall Street Journal. "I regret my error."
/jlne.ws/4fMM4ok
The Big Risk for the Market: Becoming an AI Echo Chamber; Though S&P 500 earnings are still on an upswing, investors must beware that AI-driven firms aren't just boosting one another's profits
Jon Sindreu - The Wall Street Journal
Whatever you think of it, generative artificial intelligence has proven adept at something: generating profits for other AI projects. That is risky. With more than 90% of companies in the S&P 500 having already reported second-quarter results, earnings are on track to rise at their fastest rate since 2021. AI-related corporations have significantly beaten analysts' expectations, yet have lost 5% of their market value since the end of June. Part of this is because of an unwinding of trades using borrowed money, from which the market is already recovering.
/jlne.ws/3YLg4ux
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Ukraine Shocks Russia in Kursk; Kyiv's gains show the Kremlin doesn't control how the war goes.
The Editorial Board - The Wall Street Journal
Vladimir Putin was confident that the war would only be fought on foreign soil, and he left Kursk without formidable defensive fortifications. Ukraine is taking advantage of this opening, and its top general, Oleksandr Syrskiy, said Monday that Ukrainian forces now control some 386 square miles of Russian territory.
/jlne.ws/3yQX4QC
Ukraine and Russia begin talks on exchange of prisoners captured in Kursk; Kyiv says it continues to advance in risky operation in western Russian region
Christopher Miller and Isobel Koshiw - Financial Times
Ukraine says it has begun talks with Russia over the exchange of prisoners captured by Kyiv as it presses on with its startling counter-incursion in the Kursk region. The negotiations follow more than a week of heavy fighting in the western Russian region and what Ukraine's domestic security service said was the "biggest capture of the enemy that has been carried out at one time". Dmytro Lubinets, the Ukrainian parliament's human rights commissioner, told local media on Wednesday evening that his Russian counterpart had contacted him to open discussions on the exchange of prisoners of war.
/jlne.ws/4fMFyO5
On Russia's Border, Fear and Defiance: 'No One Will Chase Us Out of Here'; Thousands of residents have been evacuated from Russia's Kursk and Belgorod regions after being caught off guard by Ukraine's incursion
Matthew Luxmoore and Ann M. Simmons - The Wall Street Journal
On the day Ukrainian soldiers began their encroachment into Russian territory last week, Viktor Baidak set out from his home in the frontier town of Sudzha to run some errands. He hasn't been heard from since. Baidak is among hundreds reported missing in the chaos that ensued when Ukrainian troops staged a surprise attack on a small part of Russia's extensive western edge on Aug. 6.
/jlne.ws/3yFDMxA
Ukraine targets four Russian airbases in major drone attack, Kyiv source says
Reuters
Ukraine carried out its largest long-range drone strike of the war on four Russian military airfields overnight, a Kyiv security source said, an attack hailed by President Volodymyr Zelenskiy as "timely" and "accurate". The strike, which targeted Russia's Voronezh, Kursk, Savasleyka and Borisoglebsk air bases, aimed to undermine Moscow's ability to use warplanes for gliding bomb attacks on Ukraine, the source said.
/jlne.ws/3SKWjQ3
Ukraine gambled on an incursion deep into Russian territory. The bold move changed the battlefield
Samya Kullab - Associated Press
Ukraine's stunning incursion into Russia's Kursk border region was a bold gamble for the country's military commanders, who committed their limited resources to a risky assault on a nuclear-armed enemy with no assurance of success. After the first signs of progress, Ukrainian President Volodymyr Zelenskyy broke his silence and spelled out Kyiv's daily advances to his war-weary public. By Wednesday, Ukrainian officials said they controlled 1,000 square kilometers (386 square miles) of enemy territory, including at least 74 settlements and hundreds of Russian prisoners of war.
/jlne.ws/4fOvQLa
Russia Sentences US Dual Citizen to 12 Years for Treason; Ksenia Karelina was detained during family visit to Russia; Russia, US and Europe conducted major prisoner swap Aug. 1
Bloomberg News
A Russian court sentenced Ksenia Karelina, a dual Russian-US citizen, to 12 years in prison for treason over a donation she made to a charity that helps Ukraine. The Sverdlovsk Regional Court announced the sentence Thursday after prosecutors had asked the judge to jail Karelina for 15 years. The Federal Security Service, known as the FSB, accused her in February of collecting funds for the Ukrainian army, Russia's state-run Tass news service reported.
/jlne.ws/3yCUxJW
Germany Suspects Russian Hand in Sabotage at Military Bases; Drinking supply apparently targeted at two separate facilities; Senior lawmaker warns of Russia stepping up hybrid warfare
Michael Nienaber - Bloomberg
Germany is investigating possible Russian sabotage at two military bases where attempts were apparently made to contaminate drinking water, according to a senior lawmaker in Berlin. The two facilities allegedly targeted are a Bundeswehr base at Cologne-Wahn and a NATO airfield in nearby Geilenkirchen. Ulrich Fonrobert, a spokesman for the German military, said a hole had been cut in the fence around the Cologne base overnight though the person or people responsible had not been located.
/jlne.ws/3X60ske
No Major Disruption After Ukraine Grain Facility Hit By Missile
Celia Bergin - Bloomberg
A Louis Dreyfus Company grain facility in Odesa was hit by a missile on Wednesday, the company said. The missile hit the truck discharge bay at its Brooklyn Kyiv facility, but no employees were harmed and products stored in silos were undamaged. Repair work is not expected to "materially disrupt terminal operations" as there are alternative logistics options at the site, LDC said in an email.
/jlne.ws/3yNvfss
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Gaza death toll hits 40,000 with thousands more yet to be counted; A new committee hopes to count the true number of losses with people such as the missing or buried unaccounted for
Malak A Tantesh and Emma Graham-Harrison - The Guardian
Dalia Hawas was 24 years old when an Israeli airstrike flattened the apartment building where she lived in February, burying the young mother with her 10-month-old daughter, Mona. They are not listed among Gaza's war dead, because their bodies were trapped too deep beneath the rubble for rescue teams to reach them. Ten months into Israel's war on Gaza, the death toll has passed 40,000, according to health authorities there. A majority of the dead are civilians and the total represents nearly 2% of Gaza's prewar population, or one in every 50 residents. But even that figure does not tell the full story of Palestinian losses.
/jlne.ws/4cmKaI0
In Israel, Support Grows for Offensive Against Hezbollah; As the U.S. works to avoid a regional war, inside security circles some wonder whether now is the time to risk one
Dov Lieber - The Wall Street Journal
As Israel braces for an attack from Iran and its ally Hezbollah, there is a debate here over whether now is the right time for the country to launch an offensive attack against the Lebanese militia or try to de-escalate to avoid triggering a wider regional war. The U.S. has been working feverishly behind the scenes to avoid an escalation that could lead to a regional war. The Biden administration is expected to send a senior delegation to the region this week to work on that effort.
/jlne.ws/3SRpEIx
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | ANALYSIS: AFX sees August sell-off boosting credit sensitive rates
Radi Khasawneh - FOW
The AFX has seen yet another crisis-led boost in interest in its credit sensitive rate funding market, strengthening its case as it looks to redefine its offering after global regulators warned against widespread adoption
/jlne.ws/3yI3tOa
ASX Statement on ASIC Proceedings
ASX
ASX advises that civil proceedings were filed against ASX Limited by the Australian Securities and Investments Commission (ASIC) in the Federal Court of Australia on 13 August 2024. The proceedings concern certain statements made in February 2022 by ASX in relation to the previous CHESS replacement project.
/jlne.ws/3X0qTrp
CME Group Foundation Awards 2024 Higher Education Scholarships to Historically Underrepresented Students
CME Group
CME Group Foundation today announced that 18 historically underrepresented students majoring in finance, technology and related fields have each been awarded up to $20,000, which is renewable for three years. Since its launch in 2019, this program has awarded over $3.5 million in scholarships to nearly 100 students at 11 partner colleges and universities in the U.S.
/jlne.ws/4dI3lwZ
EBS Market on CME Globex Notice: August 15, 2024
CME Group
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CME Globex Notices: August 12, 2024
CME Group
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Coronation lists first AMETF on the JSE with more on the horizon; Coronation Fund Managers, one of South Africa's largest investment management firms, has today listed the Coronation Global Strategic USD Income Prescient Feeder Actively Managed Exchange Traded Fund (AMETF) on the Main Board of the Johannesburg Stock Exchange (JSE).
JSE
Trading under the share code, COUSDI, the AMETF will provide on-market investors with access to an international managed income fund for the first time. Their anticipated broader AMETF range will feed into Coronation's Undertaking for Collective Investment in Transferable Securities (UCITS) funds. "We are very excited to make Coronation's well-established and proven global investment strategies available to JSE investors, starting with our market-leading US dollar income fund" said Pieter Koekemoer, Head of Personal Investments at Coronation. "Our intended suite of AMETFs is set to provide an easy access point for local on-market investors to some of the best international investment opportunities, managed by experienced investment professionals. Coronation is pleased to be at the forefront of this trend as we announce the listing of six AMETF feeder funds into our well-established offshore range."
/jlne.ws/3Apdoc5
Caution for Investors
MCX
It has been brought to the notice of the Exchange that website links "https://institutional-bulls-v1.in", "https://www.uaraygh.xyz/#/pages/mine/mine" and "https://www.vnisoyui.com/" operating through mobile numbers "9953373776" and "8758742283", email ID ysan6842@gmail.com and having an Application named "Institutional Bulls", Whatsapp Groups named "Fortune Group" and "50 Fly ingred" were impersonating "Tradebulls Securities Private Limited (SEBI Registration No. INZ000171838 and Member ID: 21840)", a SEBI registered entity and misusing the Multi Commodity Exchange of India Ltd. (MCX) brand name.
/jlne.ws/46PhXs5
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Broadridge enlists Robertshaw as Chief Technology Officer
Asset Servicing Times
Broadridge Financial Solutions has appointed Simon Robertshaw as chief technology officer for front office trading capabilities. Based in London, Robertshaw will be responsible for trading capabilities across asset classes and jurisdictions for both the buy side and sell side. Robertshaw joins the company from his previous position as chief operating officer at The Bank of London.
/jlne.ws/46LqYCA
Klarna Takes on JPMorgan, BofA With Foray Into Bank Accounts; Fintech rolls out accounts paying interest, offering rewards; Additions come as Klarna prepares for a public offering
Aisha S Gani - Bloomberg
Klarna Bank AB is adding retail-banking services in the US and across much of Europe, expanding beyond its signature buy-now, pay-later offering as the fintech prepares for an initial public offering. Customers of the financial-technology company in 12 countries will newly have the option to add money from their bank account to a digital wallet, called Klarna balance, where they can get cash-back rewards for shopping in the Klarna app or receive refunds from returned items, according to a statement Thursday.
/jlne.ws/46PkCSB
AI companies can't generate defense against copyright claims; Apparently, even machines have to follow copyright law
Matt Schimkowitz - AV Club
It's the damnedest thing. Here, you have a groundbreaking new technology, Artificial Intelligence, the wave of the future. No more art because the computer can do it. That sort of thing. All it needs is a little push from artists-say 5 billion images scrapped from at least 4,700 artists-and it can make it so we won't need to paint anymore. Unfortunately, for some reason, they refuse to allow their brilliant, infallible supercomputer to write an argument that can get around pesky copyright law. Yesterday, a judge ruled that AI companies Stability AI, Midjourney, Runway AI, and, for some humiliating reason, DeviantArt could be required to follow copyright law. Per The Hollywood Reporter, U.S. District Judge William Orrick advanced the copyright infringement and trademark claims against the companies-yes, even ones that are mostly innocent hosts of Pregnant Luigi jpegs. The judge believes there's good reason to think that Stable Diffusion, the AI tool at the center of all this, "creates copyright infringement" because it "was created to facilitate that infringement by design." What's next? Do we need a license to generate images of Pope Francis certifiably dripping in Balenciaga or a rat with a monster hog?
/jlne.ws/4csdSLL
Early Nvidia Backer Maverick Is Launching an AI-Focused Fund; Maverick Silicon will be the firm's first sector-specific fund; Ainslie says investors too cautious on technology's potential
Hema Parmar - Bloomberg
Lee Ainslie's Maverick Capital, an early backer of Nvidia Corp., is starting a fund focused on artificial intelligence to capitalize on "insatiable demand" he's predicting for the next decade. The Maverick Silicon fund, the first sector-specific vehicle in the firm's 30-year history, will invest in mid- and late-stage private companies that focus on computing infrastructure to support the AI ecosystem, Ainslie wrote in a letter to investors.
/jlne.ws/3WNAHDD
Japan's AI unicorn Preferred Networks to court first overseas investors; Company, partners working to beat Nvidia with next-generation AI accelerator by 2027
Ryohtaroh Satoh - Nikkei Asia
One of Japan's highest-valued AI unicorns, Preferred Networks (PFN), is looking to court overseas investors for the first time as it accelerates chip development, Nikkei Asia has learned. CEO Toru Nishikawa said in an interview that Preferred Networks aims to raise tens of billions of yen in the next year or two and will seek funding from overseas investors.
/jlne.ws/46PCjBn
SoftBank scraps AI chips tie-up plan with Intel, FT reports
Reuters
Japanese technology investor SoftBank dropped plans of producing an artificial intelligence chip with Intel to compete with Nvidia, the Financial Times reported on Thursday. The partnership did not materialize after the U.S. chipmaker struggled to meet SoftBank's requirements, according to the report, citing people familiar with the matter. SoftBank has blamed Intel for the collapse of the talks, claiming Intel was incapable of meeting its demands for volume and speed, the report said, adding that SoftBank is now focusing on discussions with Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker.
/jlne.ws/4dKEnx2
Tokenized US Treasurys expected to surpass $3B by end of 2024; Increased crypto adoption and high treasury yields could push tokenized US Treasurys toward a $3 billion market cap by the end of 2024.
CoinTelegraph
The rapid growth in global crypto adoption (up 34% based on the number of holders since 2023) has increased the demand for stable, low-risk digital assets. Tokenized United States Treasurys give users access to government bonds within the crypto ecosystem. The figure below illustrates the rapid growth of tokenized products since January 2023, with their total market capitalization increasing by over 150% year-to-date.
/jlne.ws/4cy1UQG
Google's Search Dominance Leaves Sites Little Choice on AI Scraping; Publishers say blocking Google's AI could also prevent their sites from showing up in search
Julia Love and Davey Alba - Bloomberg
/jlne.ws/46LQFTs
Blockchain Developer Offchain's New Business Unit to Focus on Wider Adoption; Offchain Labs has committed $10 million to new business unit; Tandem will allocate resources to projects outside Arbitrum
Muyao Shen - Bloomberg
/jlne.ws/46Iw8zb
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| Cybersecurity | | Top stories for cybersecurity | MAS and Banks to Explore Quantum Security Solutions to Combat Cyber Threats
Fintech News Singapore
The Monetary Authority of Singapore (MAS) has joined forces with DBS, HSBC, OCBC, UOB, SPTel, and SpeQtral to explore quantum security solutions for the financial sector. The collaboration, formalised through a Memorandum of Understanding (MoU) signed on 14 August 2024, aims to study the application of Quantum Key Distribution (QKD) in financial services.
/jlne.ws/3AlHkpc
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| Cryptocurrencies | | Top stories for cryptocurrencies | Binance restarts services in India after seven-month regulatory halt
Manish Singh - TechCrunch
Binance, the world's largest cryptocurrency exchange, has resumed operations for users in India after a seven-month hiatus imposed by a local authority for operating "illegally" in the country. The exchange said Thursday it has registered as a reporting entity with India's Financial Intelligence Unit (FIU), a government agency tasked with scrutinizing financial transactions.
/jlne.ws/3YK75tu
SEC approves fund that levers up MicroStrategy, which bets on bitcoin; Analyst says the fund may be the most volatile ETF available in the U.S.
Steve Goldstein - MarketWatch
Investors will now have the opportunity to buy a fund leveraged to a company that is leveraged to an asset that often is bought on leverage. Got that? The Securities and Exchange Commission has approved the Defiance Daily Target 1.75X Long MSTR ET , which seeks daily leveraged investment returns of 1.75 times the daily percentage change in MicroStrategy.
/jlne.ws/4fLDshp
A Coinbase user thought he called customer support. Instead he lost $100,000 in 20 minutes to scammers
Jeff John Roberts - Fortune Crypto
The crypto market was heating up and Fred, who is in his 60s and lives in Connecticut, figured it was a good time to shift some of the positions he held in his Coinbase account. After encountering some difficulties with the website, Fred decided to call the company. He searched for Coinbase on Google and, at top of the page, he saw an ad that prominently displayed a customer service phone number. Upon calling it, a representative informed Fred that he had "one of the older accounts" but required updating. That's when the trouble began.
/jlne.ws/4dGp7kE
Coinbase teases upcoming launch of apparent tokenized bitcoin named cbBTC
Vishal Chawla - The Block
Crypto exchange giant Coinbase teased on X a potential launch of a tokenized bitcoin product under the ticker name cbBTC. This product appears to be named similarly to Coinbase's Ethereum staking derivative product, cbETH. While further details were not provided, a subsequent post from the exchange stated, "coming soon," suggesting the launch may take place soon. These tokenized bitcoin products are backed 1:1 with actual bitcoin held in custody.
/jlne.ws/4dpWA33
Crypto Is a 'Purple Issue': Circle's Jeremy Allaire; The CEO of the stablecoin issuer cited prior bi-partisan work on stablecoin legislation and FIT21 as proof crypto doesn't belong to a particular political party
Sam Reynolds - CoinDesk
Circle CEO Jeremy Allaire said during an interview on CNBC that crypto is already a "purple," or bipartisan issue, but more needs to be done to solidify this status, or the U.S. will miss the opportunity to lead in this space. "What's interesting is that if you look at what happened over the past year, you actually saw a lot of bipartisan work getting done. Crypto, in many ways, has been treated as a bipartisan issue for quite some time," he said. "You saw major bills in stablecoin, major bills in market structure advancing, and so it looked like this was a purple issue."
/jlne.ws/4fILd83
Morgan Stanley reveals $187 million position in BlackRock's spot Bitcoin ETF, nearly sells out of GBTC in Q2
Jason Shubnell - The Block
Morgan Stanley, the multinational investment bank and financial services company, reported Wednesday its form 13F filing with the U.S. Securities and Exchange Commission and showed a significant position in BlackRock's spot Bitcoin exchange-traded fund. As of June 30, Morgan Stanley disclosed it owned more than 5.5 million shares, or $187.79 million worth of the iShares Bitcoin Trust (ticker: IBIT). That would make the investment bank a top-five shareholder of the ETF. The bank also disclosed it owned 26,222 shares of the ARK 21Shares Bitcoin ETF (ticker: ARKB) worth about $1.57 million, down slightly from the $2.3 million allocation it showed at the end of the first quarter.
/jlne.ws/3YGT53R
Fidelity Head of Digital Asset Management suggests stablecoins, tokenized Treasurys and onchain credit may be in the offing
Daniel Kuhn - The Block
Cynthia Lo Bessette, the head of Fidelity's digital asset management division, is not convinced there is sufficient demand for alternative crypto ETFs. Ethereum staking ETFs may be a question of when, not if, she added. The firm's digital asset management division is also studying tokenization, including stablecoins in addition to onchain Treasurys and credit. While Cynthia Lo Bessette, the head of Fidelity's digital asset management division, has been overall pleased with how the market has taken to exchange-traded funds tracking bitcoin and ether, she is not yet convinced there is sufficient demand for alternative cryptocurrency ETFs.
/jlne.ws/3X50xVa
The Coming Financialization of Hashrate Markets; Bitcoin hashrate, the computational power securing the Bitcoin network, is emerging as a unique commodity with intriguing investment potential, say Sadiq Jaffer, Senior Manager, Financial Services, KPMG UK, and Kunal Bhasin, partner for Digital Assets Center of Excellence, KPMG Canada.
Kunal Bhasin - CoinDesk (opinion)
Bitcoin's economic design compels miners to minimize costs due to a halving stress-test every four years. Miners seek cheap energy, leading to two strategies: being in front of the meter (I.e., grid-tied) and being behind the meter (i.e., direct co-location with power generators). The grid-tied model allows for economies of scale, as large-scale miners may obtain cheaper energy rates based on the load size they bring onto the grid, and participation in "Demand Response" and ancillary services, enabled by the interruptible nature of this type of compute.
/jlne.ws/4doEkqW
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| Politics | | An overview of politics as it relates to the financial markets | Harris Will Back Federal Ban on Price Gouging, Campaign Says; The vice president is leaning into an effort to partly blame big companies for inflation, as progressives have pushed her to embrace that argument.
Jim Tankersley - The New York Times
Vice President Kamala Harris will call for a federal ban on corporate price gouging on groceries in a speech laying out her economic agenda on Friday, campaign officials said late Wednesday, in an effort to blame big companies for persistently high costs of American consumer staples. The plan includes large overlaps with efforts that the Biden administration has pursued for several years to target corporate consolidation and price gouging, including attempts to stoke more competition in the meat industry and the Federal Trade Commission's lawsuit this year that seeks to block the merger of two large grocery retailers, Kroger and Albertsons.
/jlne.ws/3X5HMRq
Kamala Harris should not cave to overtures from the crypto crowd; Industry lobby groups are seeking the lighter touch of the CFTC regulation rather than SEC oversight
Dennis Kelleher - Financial Times (opinion)
After years of crypto kingpins being handcuffed and sent to prison, numerous spectacular bankruptcies, rampant fraud and manipulation, breathtaking volatility and a long list of lost court cases, the crypto industry is nonetheless riding high in the US. That's partly because it has a huge cash pile that it is willing to spend on campaigns to buy the support of politicians who will back its special interest agenda. The crypto industry's big goal is to pick its own regulator and get a veneer of legitimacy, but not be regulated much at all.
/jlne.ws/3yFnipe
Musk's Free Speech Mantra Collides With Crackdowns on Hate Speech and Disinformation; Governments worldwide weigh steps to curb incendiary content; Officials intensify efforts after UK riots blamed on fake news
Kurt Wagner and Michael Shepard - Bloomberg
Elon Musk's absolutist version of free speech has thrown the world's richest man and his X social-media platform into the crosshairs of governments worldwide. In the UK, officials are weighing tougher rules for sites like X after a surge of online disinformation fueled an outbreak of riots. In India, X was ordered this year to remove posts and block certain accounts in response to farmer protests. And in Brazil, Musk is in a running battle with the nation's highest court over its orders to suspend users who had circulated fake news.
/jlne.ws/3WMGglR
California Democrats fear US tech firm 'death spiral' with more China curbs
Reuters
California Democrats are calling on the Biden administration to freeze reported plans to impose fresh restrictions on U.S. technology exports to China, arguing unilateral curbs benefit foreign rivals at the expense of U.S. businesses. Washington has imposed a raft of restrictions on exports of chips and chipmaking equipment to China in recent years, fearing Beijing could use the technology to bolster its military. The Netherlands and Japan, home to chipmaking equipment producers ASML and Tokyo Electron respectively, have also restricted equipment exports to China but stopped short of matching some of the toughest U.S. measures.
/jlne.ws/3X3kM5r
Thaksin's 37-Year-Old Daughter Set to Become New Thai Premier; Paetongtarn will be the youngest ever Thai prime minister; Parliament set to hold vote on Paetongtarn nomination Friday
Patpicha Tanakasempipat and Pathom Sangwongwanich - Bloomberg
Former Thai leader Thaksin Shinawatra's daughter is set to become the Southeast Asian nation's next prime minister, signaling policy continuity after another party member was ousted from the top job on Wednesday. Paetongtarn Shinawatra, 37, will contest a parliamentary vote on Friday as the nominee of a multi-party group led by Pheu Thai Party. Her nomination was endorsed by the 11-member coalition that has more than 300 members in the 500-member House of Representatives, Pheu Thai Secretary-General Sorawong Thienthong told reporters.
/jlne.ws/3WKpNyx
US farmers fear prospect of Trump tariffs will add to sector's burdens; An intensification of the trade war with China would come on top of price pressures and high interest rates
Martha Muir - Financial Times
US farmers have warned that tariffs pledged by presidential candidate Donald Trump could undermine an agricultural sector already battered by high interest rates and falling commodity prices. Rural areas have been a consistent source of support for Trump and Republicans, with 56 per cent of rural voters telling a recent Rural Democracy Initiative poll that they would vote for the former president.
/jlne.ws/3X12DFv
Democrats Make Pitch For Crypto Voters. Will Crypto Listen? A Crypto4Harris town hall tonight aims to show the strength of Democrat commitment on digital assets.
Ben Schiller - CoinDesk
When Donald Trump gave his landmark speech at the recent Bitcoin Conference in Nashville, it seemed like the Republican presidential nominee might have a lock on the crypto vote going into November's election. But, with President Biden deciding not to run and Kamala Harris taking his place at the top of the ticket, parts of the crypto community seem inclined to give Democrats another chance on crypto policymaking.
/jlne.ws/3ApS3PD
The Protocol: Memecoin Trading Is Suddenly Trump.fun; Blockchain has gone even more ridiculous than usual over the past week, with headlines focused on Trump-themed memecoins and the Solana-based launchpad Pump.fun. PLUS: Ethereum developers tee up revamp of the EVM programming environment.
Bradley Keoun - CoinDesk
Memecoin trading is supposed to be lucrative, but also fun. In a strange way, this week's fee cuts at Solana-based memecoin launchpad Pump.fun has, for many traders, made it neither. For observers of the spectacle, however, It's entertaining enough to gawk at the memecoins surrounding former President Donald Trump.
/jlne.ws/3M9pBE4
Trump Organization to Launch a Cryptocurrency Initiative, Eric Trump Says: Report; The son of former President Trump tweeted earlier this month that he had "truly fallen in love with Crypto/DeFi."
Cheyenne Ligon - CoinDesk
The Trump Organization, the holding company for former U.S. President Donald Trump's business ventures, will soon unveil its new cryptocurrency initiative, according to a Wednesday report from the New York Post.
/jlne.ws/3SPuNkv
U.S. Crypto Bill Can Happen This Year, Senate's Schumer Tells Crypto Backers of Harris; At the opening Crypto4Harris event, industry supporters of the Democratic presidential candidate suggested Harris will lead a crypto surge, though she hasn't yet shared her view.
Jesse Hamilton, Nikhilesh De - CoinDesk
U.S. crypto legislation can happen this year, Senate Majority Leader Chuck Schumer (D-N,Y,) said Wednesday at the first major event in which crypto insiders have come out for Vice President Kamala Harris as their favored presidential contender.
/jlne.ws/3X3iTG8
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| Regulation & Enforcement | | Stories about regulation and the law. | Top broker-dealers charged with millions in recordkeeping failures; The US Securities and Exchange Commission has charged 26 firms a combined total of almost $400 million; three firms will pay reduced penalties following self-reporting.
Claudia Preece - The Trade
The SEC has charged 26 broker-dealers, investment advisers, and dually-registered broker-dealers a combined $392.75 million for widespread recordkeeping failures. The firms were found to have longstanding failures related to maintaining and preserving electronic communications by their personnel. The charge specifically relates to "violating certain recordkeeping provisions of the Securities Exchange Act, the Investment Advisers Act, or both [and] the firms were also each charged with failing to reasonably supervise their personnel with a view to preventing and detecting those violations," said the watchdog.
/jlne.ws/3yQQklP
Historic $12.7 Billion Penalty Highlights CFTC's Crackdown on Crypto Fraud
Brooke Burkhart - Whistleblowersblog.org
On August 8, the Commodity Futures Trading Commission (CFTC) announced that it ordered FTX Trading Ltd. and Alameda Research LLC (together, FTX) to pay $12.7 billion in monetary relief to FTX customers and victims of FTX's fraud. This is one of the largest CFTC enforcement actions to date. The order charged FTX with violating the Commodities Exchange Act (CEA) and CFTC regulations. This order stems from the complaint filed against Bankman-Fried and FTX and two former executives of FTX in December of 2022. The CFTC complaint charged Bankman-Fried, CEO of FTX and co-founder of Alameda Research, with organizing a plan to commit fraud. Bankman-Fried was later sentenced to 25 years for the fraud, which consisted of misappropriating funds and defrauding investors of both FTX and Alameda. On August 14, the CFTC Whistleblower Program posted a Notice of Covered Action (NCA) for the action, signaling that the agency is now accepting whistleblower awards for the case. Through the CFTC Whistleblower Program, qualified whistleblowers are eligible to receive between 10-30% of the funds collected in the enforcement action connected with their whistleblowing.
/jlne.ws/4fLgNSn
Florida man accused of running big Ponzi scheme, buying big boat; 'Traditional lenders like banks usually won't offer this kind of loan... But we're different'
George Steer - Financial Times
Russell Todd Burkhalter's alleged $300mn real estate Ponzi scheme has the potential to go down as a classic of the genre. Per the Securities and Exchange Commission (which has had a busy few days): The SEC's complaint alleges that, from 2020 through at least June 2024, Drive Planning and Burkhalter raised more than $300 million for purported real estate investments, telling investors their money would be used to fund land development projects. The defendants promised 10% interest every 3 months and encouraged investors to tap their savings, retirement accounts, and even open lines of credit to invest. In reality, the defendants did not have a business capable of generating the promised returns, and they instead used investor funds to make Ponzi-like payments, according to the complaint.
/jlne.ws/3SRBqm7
Singapore Charges Ex-Citi, Julius Baer Bankers in Money Laundering Case; Accused were relationship managers at Citi and Julius Baer; Authorities say ex-bankers helped to submit forged documents
Low De Wei and Chanyaporn Chanjaroen - Bloomberg
Singapore charged two former bank relationship managers for their alleged involvement in the country's biggest money-laundering case, marking its first criminal actions against finance professionals in the S$3 billion ($2.3 billion) scandal. Wang Qiming, a 26-year-old Chinese national, was charged with 10 counts including forging documents for the purpose of cheating the bank, according to charge sheets read out in a local state court on Thursday. He used to work at Citibank Singapore Ltd., according to records with the Monetary Authority of Singapore.
/jlne.ws/3yG8h6y
CFTC Orders TD Bank to Pay $4 Million for Supervision Failures Impacting its Electronic Communications Surveillance System
CFTC
The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against The Toronto Dominion Bank (TD Bank), a registered swap dealer, for failing to diligently supervise activities related to its business as a CFTC registrant, specifically, its electronic communications surveillance system. This resulted in TD Bank failing to surveil certain communications for hundreds of its swap dealer personnel over a five-year period. The order requires TD Bank to pay a $4 million civil monetary penalty, cease and desist from further violations of the CFTC's supervision requirements, and comply with conditions and undertakings specified in the order. TD Bank admits the facts in the order and acknowledges its conduct violated the Commodity Exchange Act and CFTC regulations.
/jlne.ws/3X1BF0z
CFTC Orders TD Bank and Cowen to Pay Civil Monetary Penalties for Recordkeeping and Supervision Failures for Firm-Wide Use of Unapproved Communication Methods
CFTC
The Commodity Futures Trading Commission today issued two orders simultaneously filing and settling charges against The Toronto Dominion Bank (TD Bank), a swap dealer, and against Cowen and Company (Cowen), previously registered with the CFTC as an introducing broker, for failing to maintain and preserve records that were required to be kept under CFTC recordkeeping requirements and failing to diligently supervise matters related to their businesses as CFTC registrants. The orders require TD Bank to pay a $75 million civil monetary penalty, and Cowen to pay a $3 million civil monetary penalty. Both admit the facts detailed in the orders, are ordered to cease and desist from further violations of recordkeeping and supervision requirements, and are ordered to engage in specified remedial undertakings.
/jlne.ws/4dty9BR
Dissenting Statement of Commissioner Caroline D. Pham on Off-Channel Communications Matter
CFTC
I respectfully dissent on In re Cowen and Co. because the administrative record does not include evidence that any CFTC registered Associated Persons (APs)[1] engaged in activity that was in violation of the CFTC's recordkeeping requirements for introducing brokers (IBs), such as maintaining records of transactions, orders, and other business "relating to dealing in commodity interests," or communications "concerning quotes, solicitations, bids, offers, instructions, trading, and prices that lead to the execution of a transaction in a commodity interest." These are specific types of records. Based on the information in the administrative record, however, the CFTC only reviewed the sample provided by Respondent to the SEC regarding Respondent's FINRA-registered representatives. None of the persons in the SEC sample was a CFTC AP. Consequently, there was no evidence in the administrative record involving CFTC APs and the specific types of records that IBs are required to maintain. I am unable to support an enforcement action that does not have any evidence that the alleged violations actually occurred. Therefore, I must dissent.
/jlne.ws/4fO6YDi
CFTC Orders Truist Bank to Pay $3 Million Penalty and Remediate Recordkeeping and Supervision Failures Relating to Widespread Use of Unapproved Communications Methods; Truist Receives Substantially Reduced Penalty for Self-Reporting to the Division of Enforcement
CFTC
The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against North Carolina swap dealer Truist Bank. The order finds Truist failed to maintain, preserve, or produce records required to be kept under CFTC recordkeeping requirements. Truist also failed to diligently supervise matters related to its business as a CFTC swap dealer. Truist admits the facts detailed in the order, is ordered to cease and desist from further violations of recordkeeping and supervision requirements, is ordered to pay a $3 million civil monetary penalty, and is ordered to engage in specific remedial undertakings.
/jlne.ws/4cqN6Dh
Twenty-Six Firms to Pay More Than $390 Million Combined to Settle SEC's Charges for Widespread Recordkeeping Failures; Three firms received credit for self-reporting and will pay reduced civil penalties
SEC
The Securities and Exchange Commission today announced charges against 26 broker-dealers, investment advisers, and dually-registered broker-dealers and investment advisers for widespread and longstanding failures by the firms and their personnel to maintain and preserve electronic communications.
/jlne.ws/4dlmPrm
SEC Charges Russell Todd Burkhalter and His Atlanta-Based Firm With $300 Million Ponzi Scheme and Obtains Emergency Relief; Burkhalter allegedly stole investor funds to buy a $3.1 million yacht and fund lavish lifestyle
SEC
The Securities and Exchange Commission today announced that it obtained a preliminary injunction, asset freeze, and other emergency relief against Atlanta-based Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter, to halt a $300 million real estate Ponzi scheme impacting more than 2,000 investors. Additionally, a receiver was appointed over Drive Planning. The SEC alleges the defendants misappropriated millions of dollars of investor funds to fund Burkhalter's lavish lifestyle and to make Ponzi-like payments.
/jlne.ws/3YKqTwM
SEC Obtains Final Judgment Against Florida Resident and the Business He Operated Charged with Acting as Unregistered Broker-Dealers
SEC
On August 13, 2024, the Securities and Exchange Commission obtained a final judgment against defendants Wilson J. Rondini, III and Falcon Capital Partners Limited, whom the SEC previously charged with acting as unregistered broker-dealers. The judgment orders, among other things, that Rondini and Falcon Capital Partners Limited pay $5,750,000 in disgorgement, prejudgment interest, and civil penalties.
/jlne.ws/3X4V14U
SEC Charges Russell Todd Burkhalter and his Atlanta Firm Drive Planning with $300 Million Ponzi Scheme and Obtains Emergency Relief
SEC
The Securities and Exchange Commission today announced that it obtained a preliminary injunction, asset freeze, and other emergency relief against Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter, to halt a $300 million real estate Ponzi scheme impacting more than 2,000 investors. Additionally, a receiver was appointed over Drive Planning. The SEC alleges the defendants misappropriated millions of dollars of investor funds to fund Burkhalter's lavish lifestyle and to make Ponzi-like payments.
/jlne.ws/4cxRfp8
Sydney labour hire services director disqualified for five years
ASIC
ASIC has disqualified Gregory Romano Lavopa, of Beverley Hills NSW, from managing corporations for the maximum period of 5 years, after his involvement in three failed companies. Between 2018 and 2021, Mr Lavopa was a director of Sydney based labour hire service companies: Premier Holdings Group Pty Ltd (de-registered), Byron Resourcing Pty Ltd and Project Service Holdings Pty Ltd (de-registered).
/jlne.ws/3yI5Q3w
ASIC disqualifies VIC director for maximum five years
ASIC
ASIC has disqualified Richard Andrew Sparreboom of Chirnside Park, Victoria, from managing corporations for the maximum period of five years due to serious misconduct.
/jlne.ws/3WPnavD
FCA censures auditor for failings in client asset reports
FCA
The FCA has censured the auditor Macintyre Hudson LLP (MHA) for failing to prepare client assets reports to the required standard. MHA failed to notify the FCA of rule breaches by firms it had audited, which could have put customers' money at risk.
/jlne.ws/3X63lBB
Notices from the Securities and Exchange Commission in the Federal Register for August 15, 2024
Govinfo.gov
SEC Form 1-Z; SEC Rules 17g-8 and 17g-9; SEC Form 4; MIAX PEARL, LLC; MIAX Sapphire LLC; Nasdaq Stock Market LLC; Miami International Securities Exchange, LLC; Cboe EDGA Exchange, Inc.; Cboe BYX Exchange, Inc.; Cboe BZX Exchange, Inc.; MIAX Emerald, LLC.
/jlne.ws/4cxTBnP
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Nikkei 225 to alter price-adjustment factor for Takashimaya; Change to take effect on Aug. 29, reflecting company's planned stock split
Nikkei Asia
Nikkei said on Thursday that it will change the price-adjustment factor applied to the shares of Takashimaya in calculating the Nikkei Stock Average, or Nikkei 225, due to the stock split planned by the company. The price-adjustment factor for Takashimaya will be changed on Aug. 29 from the current 0.5 to one, as the company plans to split its shares into two. Since the price level of the Nikkei 225's constituent issues will remain the same, the divisor will not be affected. For more details, please visit the Nikkei indexes website.
/jlne.ws/3M5xtGH
Is $1 Million and $30K in Social Security Enough for a $70K Yearly Budget at 65?
Eric Reed - SmartAsset
Suppose you and your spouse are both 65 years old, have $1 million in savings and collect $30,000 per year in Social Security. Is that enough to fund a $70,000 per year retirement? It will depend on your personal circumstances, especially where you live, but $70,000 may be enough for some households. Whether your assets can generate $70,000 per year is a bit more difficult to answer, though. Here are a few important things to consider. And if you need more help planning for retirement, consider working with a financial advisor.
/jlne.ws/46Rz10O
Investors Timing the Market See Biggest Hit on Sector Funds; Moving money around in times of volatility has reduced average returns by double digits over the past 10 years, according to a new report.
Suzanne Woolley - Bloomberg
For investors, it's important to remember there's power in patience, even as markets churn. An average investor loses out on as much as 2.6% in annual gains by straying from a buy-and-hold strategy with certain US mutual funds and ETFs, according to a new Morningstar report.
/jlne.ws/3AnNXHI
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Deutsche Bank Executive Says ESG Backlash Is Losing Its Bite; Transition finance lets investors engage more firms: Mueller; Outflows from ESG funds in the US slowed in the second quarter
Ishika Mookerjee - Bloomberg
The wave of anti-ESG sentiment that fueled a global retreat from the investing strategy is now showing signs of losing steam, according to an executive at the wealth management arm of Deutsche Bank AG. "We have seen the trough in ESG fund flows," Markus Mueller, the private bank's chief investment officer for ESG, said in an interview. There's less "backlash globally." Mueller says the development follows adjustments to regulations, with investors increasingly able to target a wider array of sectors. Specifically, fossil-fuel assets once deemed off-bounds for climate investors are now finding a home in so-called transition strategies as regulators in Europe, the world's biggest ESG market, rework existing rules.
/jlne.ws/4dmPbBL
China to limit antimony exports in latest critical mineral curbs
Reuters
China will impose export limits on antimony and related elements in the name of national security, its commerce ministry said on Thursday, Beijing's latest move to restrict shipments of critical minerals in which it is the dominant supplier. China accounted last year for 48% of global mined output of antimony, a strategic metal used in military applications such as ammunition, infrared missiles, nuclear weapons and night vision goggles, as well as in batteries and photovoltaic equipment.
/jlne.ws/4crw2Nx
Survivors of climate disasters demand US inquiry into big oil's 'climate crimes'; More than 10,000 people sign letter to justice department for federal investigation into industry's misinformation
Dharna Noor - The Guardian
Allen Myers grew up in Paradise, California, which for him is "sacred land". At age 11, he sat beside his mother's bedside as she passed away in his beloved family home. Years later, that house, along with 90% of the town, burned to the ground in the devastating 2018 Camp fire. Today, he is demanding the fossil fuel industry be held accountable for its role in that deadly blaze and other climate disasters. Myers and 1,000 survivors of climate disasters signed a letter delivered in person to the US Department of Justice on Thursday, demanding federal investigation into the fossil fuel industry's "climate crimes".
/jlne.ws/3SLMKQT
Record Heat Is Testing Kraft Heinz's Efforts to Climate-Proof Its Ketchup; California just experienced its hottest July on record. What that means for this year's tomato yield is still an open question.
Deena Shanker - Bloomberg
For Heinz ketchup, nothing is more important than tomatoes. Sure, by calories, a tablespoon of the flagship condiment is 80% added sugar. But by weight - and frankly, by reputation - it's Heinz Tomato Ketchup for a reason. Now some of those tomatoes are in peril from climate change. The $5 billion-plus Heinz brand is critical to Kraft Heinz, the $42 billion packaged food giant that owns it. It produces 660 million bottles of ketchup each year, 300 million of them in the US. In a recent interview, Pedro Navio, the company's North America president, referred to Heinz as its "powerhouse." Kraft Heinz has also invested in organic and no-added-sugar versions - and charges more for them - which then Chief Executive Officer Miguel Patricio said on a 2019 earnings call was paying off.
/jlne.ws/4du9zkw
Survey: Large UK firms buying carbon credits to support two-thirds of their green goals
BusinessGreen
Research by risk management firm Gallagher finds strong corporate appetite for carbon credits, despite risks associated with offsetting market. Large UK businesses could be relying on the purchase of carbon credits to achieve almost two-thirds of their sustainability targets, according to research published today by global risk management and insurance broker Gallagher.
/jlne.ws/3M8z9PY
Europe's Rising Gas-Hedging Costs Show Supply Fears Persist; October contracts cost more to insure than those for midwinter; Ukraine and Middle East wars are underpinning supply jitters
Priscila Azevedo Rocha - Bloomberg
European natural gas contracts for October became more costly to insure than those for midwinter, signaling traders are bracing for possible supply disruptions at the start of the heating season. The shift follows an incursion by Ukraine into Russia's Kursk region, near a key gas-transit point that sends fuel toward several countries in Europe. Earlier this month, fears of an interruption to deliveries drove benchmark gas prices to the highest this year.
/jlne.ws/3Aj99OX
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | UBS to put Credit Suisse Real Estate Fund International into liquidation
Adria Calatayud - MarketWatch
UBS Group said its Swiss fund-management business decided to put Credit Suisse Real Estate Fund International into liquidation amid limited liquidity in real-estate markets in the bank's latest step to unwind parts of the portfolio of former rival Credit Suisse. The Swiss banking group said Thursday that it would have to sell most liquid assets within the fund's portfolio to meet outstanding 2023 redemption requests at an inopportune time in the real-estate market. This would hurt remaining investors, diminish the attractiveness of the rest of the portfolio and likely trigger further redemptions, the bank said.
/jlne.ws/3yv9MEN
JPMorgan Is Selling a New Type of Mortgage Credit Risk Transfer; Bank is offering $53 million of bonds tied to ARM mortgages; Deal will remove assets from JPMorgan's balance sheet
Scott Carpenter - Bloomberg
JPMorgan Chase & Co. plans to sell credit risk on a $531 million portfolio of adjustable-rate mortgages, a new kind of offering by the bank and the latest example of the industry's efforts to de-risk balance sheets. Its offer includes more than $53 million worth of bonds to be sold through an auction, with pricing for the deal expected sometime this week, according to people familiar with the matter.
/jlne.ws/4fIDxm9
UBS to Close Legacy Real Estate Fund on Office Market Woes
Laura Malsch - Bloomberg
UBS Group AG will liquidate a flagship real estate fund in the latest sign of the turmoil caused by investors pulling money out of slumping commercial real estate markets. The fund, which was inherited in the takeover of Credit Suisse, was highly exposed to some of the weakest sectors. It had over 80% of its 1.9 billion Swiss francs ($2.2 billion) in assets in office properties, and the US and Germany were its biggest markets, according to UBS.
/jlne.ws/3YMH2lw
Citi, UBS Leave Behind $50 Billion Muni Opportunity for Rivals
Shruti Date Singh - Bloomberg
From San Antonio to Chicago, US municipalities are inviting in new rosters of banks to manage borrowings after two big players' exits opened up a roughly $50 billion opportunity for firms that are still in the business. Market heavyweight Citigroup Inc. and UBS Group AG began pulling away from munis over the last year, marking the biggest retreat in the sector since the financial crisis. While shrinking profit margins in the muni industry contributed to their decisions, other bulge-bracket firms and up-and-coming regional underwriters remain committed.
/jlne.ws/3yt1CNe
BlackRock, Vanguard big purchasers of Trump Media shares in Q2, filings show
David Randall - Reuters
A handful of institutional investors bought large positions in former President Donald Trump's media company in the second quarter ahead of the company's inclusion in two Russell indexes, regulatory filings released on Wednesday showed. Among the biggest purchasers of shares of Trump Media & Technology Group, the parent company of the Truth Social platform, were asset managers Vanguard, State Street and BlackRock, which are known for their passive investing businesses. Those include exchange traded funds that buy shares of companies included in a wide range of indexes that they track.
/jlne.ws/4crwJGD
Billionaire Family-Backed Firm Raises $100 Million Venture Fund; HighPost Capital founders are Mark Bezos and David Moross; Their HIPstr venture arm owns stakes in half-a-dozen startups
Benjamin Stupples - Bloomberg
An investment firm founded by Jeff Bezos' younger brother and a US private equity veteran that focuses on consumer bets has raised its first venture fund. HIPstr, the venture arm of Mark Bezos and David Moross' HighPost Capital, raised $100 million from investors including rich individuals and institutional firms for early-stage deals outside its traditional buyout focus, the West Palm Beach, Florida-based firm said Thursday in a statement.
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Morgan Stanley Has Record Year in Japan as It Sees More Growth; Local unit booked highest net revenue since 2010 formation; Some foreign banks have gained from equity rally, bond shifts
Takashi Nakamichi - Bloomberg
Morgan Stanley posted record revenue in Japan driven by gains in share and bond trading as it pledged to help boost investment in the country. Net revenue at Morgan Stanley MUFG Securities Co., the US firm's majority-owned brokerage venture with Japan's largest banking group, rose 13% in the year ended March 2024 to 135.8 billion yen ($923 million), according to filings. That was the highest since the unit was established in 2010 and its second straight year of record revenue performance.
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DWS bucks trend with launch of Chinese mid-cap ETF; Fund debut comes despite closure of similar products by rival managers
Sandra Heistruvers - Financial Times
DWS has rolled out a synthetic exchange traded fund investing in Chinese mid-cap stocks. The Xtrackers CSI500 Swap Ucits ETF uses indirect replication to track the CSI 500 Net Total Return index, which consists of the 500 predominantly medium and small-cap companies trading on the Shanghai Stock Exchange or Shenzhen Stock Exchange.
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | In South Korea, Documenting a Divide Over Work-Life Balance; The reporter Jin Yu Young wrote about companies that have pushed their managers to work longer hours, a move that has not gone over well with some young people in the country.
Jin Yu Young - The New York Times
I spent much of my childhood in the United States and Canada but have lived in South Korea for all of my adult life. I have noticed one stark contrast between the places I grew up in and South Korea: people's attitude toward work. In North America, it seems to me that people look for jobs that they are interested in or passionate about. In South Korea, people often prioritize jobs that offer prestige and better reputations.
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The American Dream is collapsing, and it's knocking billionaires off their pedestals
Chloe Berger - Fortune
Whether it be Bill Gates or Elon Musk, Americans are starting to fall out of love with their billionaires. Though, as fellow high-net-worth individual Mark Zuckerberg's Facebook once wrote, it's complicated.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Why does it feel like everyone is getting Covid? Covid's summer surge, explained
Ellen Ioanes - Vox
We're presently in what appears to be the worst Covid-19 summer surge in several years, especially in the southern US. According to data from the Centers for Disease Control (CDC), all of the metrics related to Covid-19 that we should be worried about are going up - not just cases, but hospitalizations and deaths, too. Even if we're no longer in the depths of the pandemic, and we have treatments to lessen its severity and vaccines for protection, contracting Covid-19 carries risks. That's particularly true for people over 65, people with comorbidities like heart or lung disease, or those who are immunocompromised. And the lingering health challenges of long Covid remain a risk.
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CDC says COVID is at 'very high' activity levels in some US states: See latest data
Ahjane Forbes - USA TODAY
Recent data from the Centers for Disease Control and Prevention (CDC) shows that over half of the United States have reported "very high" levels of COVID-19 activity. Using wastewater or sewage, the CDC tests the water to see if there are any traces of an infectious disease within a community, the government agency says. Data collected on Aug. 9 by the CDC showed that 27 states have reported "very high" levels of wastewater viral activity nationwide.
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Vaccine bottlenecks threaten to hamper response to Mpox emergency; Leading producer says it needs orders to ramp up supply as cases surge in central and east Africa
Ian Johnston and Michael Peel - Financial Times
Urgent efforts to roll out vaccines to tackle the Mpox international public health emergency in central and east Africa risk being hobbled by a lack of orders and logistical challenges, a leading vaccine manufacturer has said. Cases of the outbreak have been detected in 13 African countries, with the majority in the Democratic Republic of Congo. The African Centres for Disease Control and Prevention said they need 2mn vaccine doses by the end of the year to help control the outbreak.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Shanghai unveils plan to transform suburbs through unmanned farms with drone-grown crops
South China Morning Post
China's largest city and its financial capital - has unveiled an ambitious plan to leverage new technologies to transform large swathes of its suburbs into unmanned grain-producing farms, a local experiment in line with the country's push to modernise agriculture as it pursues greater food security. The metropolis will attempt to establish 20,000 mu (1,333 hectares) of fully automated farmland - roughly four times the size of New York City's Central Park - by the end of next year, according to a plan released on Monday by the government of the city's Pudong district.
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China Slashes Steel Output as Industry Rings Alarm on Demand
Bloomberg News
Chinese steelmakers slashed output last month as woeful demand forced steep cuts on an industry contending with a collapse in margins. Steel production in July plunged about 9% on both the month and the year to 82.94 million tons, the lowest figure reported in 2024, according to the statistics bureau on Thursday. That leaves the total over the first seven months at 613.72 million tons, 2.2% off last year's pace.
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