| November 27, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Elon Musk is a piker compared to DRW's Don Wilson. Musk has called for eliminating the Consumer Financial Protection Bureau, Bloomberg reported. But Wilson, the newly minted FIA Futures Hall of Fame member, is calling for the elimination of the U.S. Securities and Exchange Commission, Bloomberg also reports. Wilson is also picking up the mantle of the late Jack Sandner, who once made a major push to combine the SEC and CFTC into a single unified super regulator. He presented the idea at a Senate Banking, Housing and Urban Affairs Committee's Securities Subcommittee meeting chaired by Christopher Dodd
Wilson is calling for a complete overhaul of U.S. financial regulation, advocating for the dissolution of both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in favor of a unified regulatory body. Wilson's remarks come amid ongoing legal disputes, including a recent SEC lawsuit alleging that DRW's crypto division, Cumberland, operated as an unregistered securities dealer, handling over $2 billion in digital assets. This lawsuit follows a previous legal battle with the CFTC, then led by Gary Gensler, over market manipulation charges, which DRW won in 2018.
Wilson criticized the current regulatory framework, stating that the friction between the SEC and CFTC is counterproductive and hinders effective oversight. He suggested that merging the two agencies into a single regulator would streamline processes and reduce bureaucratic inefficiencies. This perspective aligns with sentiments in the crypto industry, which has faced challenges due to regulatory ambiguity under the SEC's leadership. The debate over the optimal structure for financial regulation continues, especially in light of the evolving landscape of digital assets and the recent resignation of SEC Chair Gary Gensler.
The cryptocurrency exchange Kraken is closing its NFT marketplace nearly two years after its launch to reallocate resources toward new products and services, Bloomberg reported. The platform will enter withdrawal-only mode on November 27, 2024, disabling listing, purchasing, bidding, or selling of NFTs. Users are advised to transfer their NFTs to a Kraken Wallet or a self-custodial wallet by February 27, 2025, when the marketplace will cease all operations. This decision aligns with Kraken's recent strategic shifts, including appointing a new co-CEO and reducing its workforce by 15%. The company plans to launch its own blockchain, Ink, in early 2025 to support decentralized applications for trading, borrowing, and lending tokens without intermediaries. The NFT market has struggled to recover from the 2022 crypto downturn. Despite a 90% increase in the Bitwise Blue-Chip NFT Collections Index following the pro-crypto election of President Donald Trump, the index remains 81% below its April 2022 peak.
In the 1986 film Ferris Bueller's Day Off, Ben Stein portrays an economics teacher delivering a monotonous lecture on the Smoot-Hawley Tariff Act of 1930. This act, which raised U.S. tariffs on over 20,000 imported goods, is widely believed to have exacerbated the Great Depression by stifling international trade. Stein's character underscores the unintended consequences of such protectionist policies, noting that the tariff "did not work, and the United States sank deeper into the Great Depression."
IMDB
This scene remains pertinent today as nations grapple with the complexities of trade policies. It serves as a cautionary reminder of how well-intentioned measures, like tariffs aimed at protecting domestic industries, can inadvertently harm the broader economy by disrupting global trade relationships. It is amazing how Matthew Broderick movies can be so relevant to today. Here is that scene from a clip on YouTube.
Here are the headlines from in front of FOW's paywall from some recent stories: ANALYSIS: One Trading hails client flexibility as key to European crypto venue, ISDA backs US hedge accounting reporting overhaul, https://jlne.ws/4eOjXDw}One Trading to launch first European crypto Mifid II venue in first quarter, ANALYSIS: Experts discuss role of Dubai, retail opportunity, https://jlne.ws/3CZ1qa0}Eurex's EU bond future 'natural extension' of yield curve strategy and CME Group clearing risk head Betsill to leave in early 2025.
Something to consider before tomorrow's Thanksgiving feast. TODAY has a timely article titled "Is pumpkin pie or apple pie healthier? There's 1 major nutrition difference, dietitians say." As I am a big pumpkin pie fan, this caught my eye, though I love apple pie too. It had me at "pie."
The story says when choosing between pumpkin pie and apple pie, pumpkin pie is generally considered the healthier option. A typical slice of pumpkin pie contains approximately 316 calories, 14 grams of fat, 7 grams of protein, 41 grams of carbohydrates, and 2 grams of fiber. In contrast, a slice of apple pie has about 411 calories, 19 grams of fat, 3.7 grams of protein, 57 grams of carbohydrates, and 2 grams of fiber.
The higher calorie and fat content in apple pie is largely due to its double crust and sugary filling. Pumpkin pie, typically made with a single crust, offers more protein and fewer calories and fat. However, both pies are desserts that contain added sugars and fats. Dietitians recommend enjoying either in moderation, focusing on portion control, and savoring each slice mindfully during festive occasions.
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:
- Stock Volatility in 2024 Hasn't Been This Low in Five Years from Bloomberg.
- Bitcoin options trade shows more bets on retreat after failing to breach $100,000 from Reuters.
- Flows jump after mutual fund-to-ETF conversions, BofA study shows from the Financial Times ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Leverage Shares Wants to Help European Investors Trade U.S. ETPS and Manage Fragmentation, Says Oktay Kavrak
JohnLothianNews.com
Investors in the EU and UK are looking for exposure to U.S. companies. They are also looking for the enhancement of leveraged products. In the past, foreign institutional investors could access U.S. ETFs directly or through local US-based affiliates. But in the past five years, regulations such as PRIIPs have made it harder for EMEA traders to hold U.S. ETFs.
Read more »
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Arcesium Executive Highlights Hedge Funds' Balancing Act: Advanced Tech vs. Top Talent
JohnLothianNews.com
In a recent interview with John Lothian News, David Nable, a senior executive at Arcesium, highlighted the growing challenge hedge funds face in balancing advanced technology adoption with the demand for skilled portfolio managers. Nable emphasized that top-tier talent has high expectations for seamless technology infrastructure when moving to a new employer.
Watch »
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Former CFTC Official Launches Lean Consulting Firm to Navigate Regulatory Uncertainty
JohnLothianNews.com
In the high-stakes world of financial regulation, where billion-dollar fines and complex compliance rules are the norm, Dorothy DeWitt is taking a decidedly different tack. Her new venture, Tolt Strategies, aims to help innovative companies navigate the murky waters of regulatory uncertainty with a lean team of seasoned experts.
Watch »
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Coffee Gets Even Pricier as Arabica Jumps to Highest Since 1977
Celia Bergin - Bloomberg
Coffee futures (KC=F) extended their rampant rally to the highest in more than four decades in New York on global supply worries, threatening to further raise costs for consumers. Arabica beans - the variety favored for specialty brews - climbed as much as 3.1%, hitting the highest since 1977. They've jumped almost 70% this year.
/jlne.ws/3CIEBaO
***** If you think we are all easily irritated now, just wait until we have to pay $10 for a cup of coffee.~JJL
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Tuesday's Top Three
Our top story Tuesday was The Wall Street Journal's 17 of Our Favorite Gifts From Google's New Holiday 100 List. Second was Jeremy Grant's Global banks building tech and regulatory capabilities on Scottish foundations, in The Banker. Third was the announcement from MIAX Exchange Group on LinkedIn that MIAX Chairman and CEO Thomas Gallagher was named to the 2024 TabbFORUM 40.
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| Lead Stories | Howard Lutnick, King of Cantor, Gets a Boss of His Own in Donald Trump; He's run his brokerage like a personal fiefdom. Now, Wall Street is watching how Lutnick will untangle his personal interests and navigate conflicts at the Commerce Department.
Todd Gillespie - Bloomberg
The parties ended early that Saturday on Mykonos, Mediterranean playground of the ultrarich. It was 2021, and Covid-19 was breaking out on the Greek island. To slow the spread, local authorities banned music in the cafes and beach bars. Tourists were ordered off the roads by 1 a.m. Howard Lutnick had other ideas. The Wall Street billionaire, today Donald Trump's pick to run the Commerce Department, had flown in from the Hamptons for his birthday. He wanted his celebration.
/jlne.ws/41588Fw
Trading Titan Don Wilson Says It's Time to Get Rid of SEC; DRW's crypto unit was sued by the SEC for selling securities; Crypto advocates have long pushed for CFTC to lead oversight
Muyao Shen - Bloomberg
After protracted battles with the Securities and Exchange Commission and the Commodity Futures Trading Commission, the head of one of the world's biggest trading firms says its time to rethink the entire US securities industry regulatory framework. "Friction between the SEC and the CFTC is just an ongoing counterproductive force," Donald R. Wilson, founder of the Chicago-based proprietary trading powerhouse DRW Holdings LLC, said in an interview. "It's time to just start from scratch, to actually get rid of both the CFTC and the SEC and create an entirely new regulator."
/jlne.ws/3OunDzA
Oil producers warn Trump tariffs on Canada will push up US petrol prices; President-elect's threat could add 25% to the cost of crude from US's biggest foreign supplier
Myles McCormick and Jamie Smyth and Ilya Gridneff - Financial Times
Donald Trump's plan to slap punitive tariffs on Canadian imports will drive up prices for American motorists, oil producers warned, as the US president-elect's threats hit global markets. Trump late on Monday proposed a 25 per cent tariff on all imports from Mexico and Canada, accusing the US's closest neighbours of failing to tackle illegal migration and drug trafficking.
/jlne.ws/415IFf6
What Trump's New Tariff Threats Mean for the U.S. Economy; If president-elect follows through, consumers and businesses are likely to see prices rise on everything from fresh fruit to electronics
Justin Lahart, Chao Deng, and Rachel Wolfe - The Wall Street Journal
The stiff duties that President-elect Donald Trump threatened against the U.S.'s neighbors and big trading partners, along with the additional tariffs he promised against China, could raise prices for Americans on everything from fresh fruit from Mexico to lumber from Canada and Chinese electronics. Import-reliant businesses-especially automobile manufacturers-could face significantly higher costs that they would then pass on to consumers. Farmers and other exporters could face retaliatory tariffs. Trump's promise to impose 25% tariffs on Canada and Mexico and an additional 10% on Chinese imports on the first day of his presidency could lead to higher prices, just as the country appears to be turning a corner on inflation.
/jlne.ws/4g832ww
He Helped 'Break' the Bank of England. Now He May Run the U.S. Treasury. Scott Bessent's former colleagues and rivals see the prospective Treasury secretary as a thoughtful choice with a broad understanding of financial markets.
Maureen Farrell - The New York Times
Three decades before he was tapped to lead the Treasury Department, Scott Bessent was asked to help break another country's financial system. Then 29 years old, Mr. Bessent, working for the financier George Soros, helped "break" the Bank of England with crushing trades against the British pound. He was on a small team at Mr. Soros's investment firm that, in 1992, amassed a $10 billion bet that the pound was overvalued.
/jlne.ws/49e7DuT
Time running out for Hong Kong-listed firms to get women on board: HKEX's Bonnie Chan
South China Morning Post
Some 250 listed companies in Hong Kong have yet to add at least one woman to their boards even as a deadline to comply with the exchange's rules is only a month away, according to the Hong Kong Exchanges and Clearing (HKEX). "The deadline is the end of this year, so the next few weeks will be very busy for my team to call the remaining non-compliant companies to make sure that they bring women on to their boards," CEO Bonnie Chan Yiting said on Wednesday.
/jlne.ws/3CWkwO4
Musk Calls for Abolishing Consumer Finance Agency: 'Delete CFPB'; GOP has long sought to neutralize agency proposed by Warren; Musk, Ramaswamy leading DOGE effort to cut federal government
Hadriana Lowenkron - Bloomberg
Billionaire Elon Musk called for eliminating the Consumer Financial Protection Bureau, highlighting the renewed threat under President-elect Donald Trump to a regulatory agency that has long been a target of Republicans and business advocacy groups. "Delete CFPB. There are too many duplicative regulatory agencies," Musk wrote in a post on his social-media platform X early Wednesday.
/jlne.ws/3ZnEA4K
JPMorgan Sees US Equities Extending Global Dominance in 2025
Michael Msika - Bloomberg
The dominance of US equities over the rest of the world is unlikely to abate unless geopolitical and trade policy risks fade, according to JPMorgan Chase & Co. strategists. US stocks have extended their outperformance against international peers this year, powered by tech shares and the artificial intelligence frenzy, while the economy remains resilient and the Federal Reserve has embarked in an interest-rate cutting cycle amid falling inflation.
/jlne.ws/3CLSqoJ
China's market targets are 'just psychological', says former regulator; Frank remarks by onetime securities commission chief give rare insight into Beijing financial policymaking
Sun Yu and Joe Leahy - Financial Times
A former senior Chinese financial regulator has said top Beijing leaders set "psychological" targets for the nation's stock markets and currency exchange rate that are not based on fundamentals. The comments to a seminar by Xiao Gang, former head of the China Securities Regulatory Commission, offer a rare insight into the often murky world of elite policymaking at a time when the Communist party under President Xi Jinping has been tightening control of the financial system.
/jlne.ws/4fLI07l
Kezar Markets' chief executive set to retire; Following 18 years in the position, Whit Conary is set to retire by year-end; current chief strategy officer has been named successor.
Wesley Bray - The Trade
Kezar Markets' chief executive officer, Whit Conary is set to retire from his role by the end of this year following 18 years in the position. Steve Miele, who currently serves as chief strategy officer, has been appointed new chief executive officer of Kezar Marekts, effective 1 January 2025.
/jlne.ws/3ZoJsGJ
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Europe Can't Make Ukraine Enough Weapons-So It's Paying Kyiv to Do It; 'Danish Model' of funding cuts costs, delays and corruption, boosters say
Daniel Michaels, Sune Engel Rasmussen, and Jane Lytvynenko - The Wall Street Journal
Ukraine's European allies, struggling to produce enough weapons for Kyiv's war effort, are pioneering a new method: giving Ukrainians money to do it themselves. In the new approach, Europeans are financing Ukrainian government contracts with cash-strapped Ukrainian arms makers to produce equipment for the country's armed forces, including long-range missiles and drones that can strike Russian territory. Kyiv tells its allies which companies to work with and armaments to buy, and the Europeans vet the producers independently before agreeing to deals.
/jlne.ws/4eVhC9z
New Russian missile fired at Ukraine carried warheads without explosives, sources say
Tom Balmforth and Gerry Doyle - Reuters
A new ballistic missile fired by Russia at the Ukrainian city of Dnipro last week carried multiple warheads but no explosives, and caused limited damage, two senior Ukrainian government sources said. Their comments appeared to confirm the Kremlin's own description of the weapon's use last Thursday as a warning to the West after the United States and Britain allowed Ukraine to fire their missiles into Russia.
/jlne.ws/4fL5p8W
Russia warns US against 'spiral of escalation' but says it will keep channels open
Mark Trevelyan - Reuters
Russia warned the United States on Wednesday to halt what it called a "spiral of escalation" over Ukraine, but said it would keep informing Washington about test missile launches in order to avoid "dangerous mistakes". The comments from Deputy Foreign Minister Sergei Ryabkov sent a signal that Moscow, which last week approved a new policy that lowered its threshold for the use of nuclear weapons, wants to keep communication channels open at a time of acute tensions with the U.S.
/jlne.ws/3ARxE6K
US Sanctions Hit Ruble as Russia's FX Sources Are Drying Up
Bloomberg News
Fresh US sanctions against Russian banks have caused a further slide in the ruble, putting at risk some of the last channels of direct foreign-currency flows into the country. The ruble has slid more than 5% since November 21, when the US sanctioned some 50 Russian banks with connections to the global financial system. The currency went beyond 105 per dollar, the weakest levels since March 2022, the aftermath of the first sweeping sanctions over the invasion of Ukraine.
/jlne.ws/3B3BauL
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israeli security cabinet approves Lebanon ceasefire deal, after 11th-hour strikes on central Beirut
Jeremy Diamond, Christian Edwards, Tamara Qiblawi and Eugenia Yosef - CNN
The Israeli security cabinet on Tuesday voted to approve a ceasefire deal in Lebanon, potentially bringing an end to more than a year of cross-border skirmishes with Hezbollah and months of a full-scale war that has killed thousands. The cabinet approved the deal by a majority of 10 to one, the Israeli Prime Minister's office said, thanking the United States for its involvement.
/jlne.ws/3Zpr14Z
Israel Says Cease-Fire Takes Effect in Lebanon; Deal calls for the Israeli military and Hezbollah to withdraw from southern Lebanon
Jared Malsin in Beirut, Anat Peled in Tel Aviv and Omar Abdel-Baqui in Dubai - The Wall Street Journal
A cease-fire in Lebanon, approved by Israel's security cabinet, came into effect Wednesday in a bid to quell the fighting with Hezbollah, the Iranian-backed militant group. Photo: Marwan Naamani/Zuma Press Israel's military said the cease-fire in Lebanon had taken effect Wednesday morning, raising hopes of a period of calm after two months of intense aerial bombardments and ground operations. The deal, which was hammered out between Israel and Lebanon by the U.S. and France, calls for a two-month cease-fire to allow the Israeli military to withdraw from southern Lebanon and for Lebanese security forces to deploy in the area. The agreement also calls for Hezbollah to remove its military forces from areas near the Israeli border in keeping with a United Nations resolution that ended a previous war in 2006.
/jlne.ws/4i6l2JE
The Impossible Mission to Enforce an Israel-Hezbollah Cease-Fire; A peacekeeping mission couldn't stop the rearming of southern Lebanon that culminated in war
Sune Engel Rasmussen - The Wall Street Journal
For nearly two decades, thousands of United Nations peacekeepers have been helpless to stop the Iran-backed militant group Hezbollah from rearming along Israel's border since the two sides' previous war. Now that Israel and Hezbollah have come to a cease-fire ending a year of fighting, the United Nations Interim Force in Lebanon, or Unifil, is again at the center of efforts to keep the peace but still lacks the capability to enforce a buffer zone between the parties, analysts said.
/jlne.ws/417uSFc
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | SIX invests in OpenBrick, a digital platform of tokenized securities for real estate projects in
BME
BME today announced its investment in OpenBrick, a digital platform for the issuance, management, trading and settlement of tokenized securities linked to real estate projects. The company, founded by Grupo Lar, Renta 4 Banco and ioBuilders, welcomes BME, Garrigues and Teras Capital as strategic partners.
/jlne.ws/3ZtXYw3
Euronext strengthens its position as the leading stock exchange for European Tech companies
Back; On the occasion of the third edition of the Euronext Tech Leaders Campus, Euronext published the Euronext Tech Pulse and announced the upcoming launch of the Euronext Europe Tech Index.
Euronext
26 November 2024 - Euronext, the leading European capital market infrastructure, today held the third edition of the Euronext Tech Leaders Campus, bringing together 300 participants from the European Tech community. This flagship event aims to strengthen the European Tech sector and support European technology companies in their growth funding needs. On this occasion, Euronext released the Euronext Tech Pulse, a new report revealing the latest trends among Tech leaders across Europe, and announced the upcoming launch of the Euronext Europe Tech Index, designed to become the reference index for Europe's leading listed Tech companies.
/jlne.ws/3AYZXjE
The Global Association of Central Counterparties (CCP Global) held its Special General Meeting 2024 in Chicago, USA
CCP Global
The Global Association of Central Counterparties held its Special General Meeting and related events from the 19th to the 21st of November 2024. The Special General Meeting itself was hosted by CME Group on the 21st of November in the historic Board of Trade of Chicago Building, and saw the discussion between members about Working Committee updates, the evaluation of the 2024-2025 workplan, and the assessment of strategy and initiatives for organisation. The members also approved the minutes from our Annual General Meeting, which took place on the 30th of May 2024.
/jlne.ws/3OuUe8i
Intercontinental Exchange Chair & CEO Jeffrey C. Sprecher to Present at the Goldman Sachs Financial Services Conference on December 10
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, announced today that Jeffrey C. Sprecher, Chair and CEO, will present at the Goldman Sachs Financial Services Conference. The presentation will take place on Tuesday, December 10 at 1:00 p.m. ET. The presentation will be available live and in replay via webcast and can be accessed in the investor relations and media section of ICE's website at http://ir.theice.com.
/jlne.ws/3OppKo6
Miami International Holdings Congratulates Markets Media Women in Finance Award Recipients Barbara Comly and Kelli Annequin
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today announced that Barbara Comly, Executive Vice President, General Counsel and Corporate Secretary, and Kelli Annequin, Senior Vice President and Chief Marketing Officer, were recognized at Markets Media Group's 10th-annual U.S. Women in Finance (WIF) Awards. Ms. Comly received the Excellence in Regulation award, an acknowledgement of her deep expertise in exchange regulation and corporate finance, which have proved invaluable as MIH has expanded the number of exchanges it operates through both regulatory approvals and multiple acquisitions.
/jlne.ws/3CHkjOG
TAIFEX Raise Margins
Taiwan Futures Exchange
The Taiwan Futures Exchange (TAIFEX) has announced the temporarily
increased margin levels of OTF due to its underlying securities being subject to
disposition measures imposed by the securities market. The margins will be
effective after the close of the regular trading session on 2024/11/28 and will be
restored to the current levels after the close of the regular trading session on
2024/12/12.
/jlne.ws/4fN8Cog
Moscow Exchange Launches Mini-Futures on Brent Oil and Micro-Futures on Henry Hub Natural Gas
Moscow Exchange
On December 2, 2024, Moscow Exchange Futures Market will start trading in cash-settled mini-futures on Brent crude oil and micro-futures on Henry Hub natural gas. Trading codes are BRM and NGM, respectively. The new instruments are distinguished by a reduced nominal value: oil contracts are reduced by 10 times compared to standard futures, natural gas contracts - by 100 times. Thus, they significantly reduce the entry threshold for traders and open up additional trading opportunities.
/jlne.ws/3VfeDSv
FTSE UK Index Series - Indicative Quarterly Review Changes December 2024
FTSE Russell, the global index provider, advises of the following indicative changes to the FTSE 100 and FTSE 250, based on data as of Friday 22nd November 2024.
/jlne.ws/3OwYrIo
List of Standardized/Loan Margin Trading Issues
JPX
Issues Disqualified for Standardized Margin Trading (76)
/jlne.ws/4fR1dog
Regular Constituents Change in KRX CSI Sub-indices.
KRX
There will be regular constituents change in KRX Bluechip 25, KRX Electric Vehicle Top 15, KRX Semiconductor Top 15, effective from December 16th, 2024.
/jlne.ws/4fXN5ZU
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | FlexTRADER EMS selected by Alecta to optimise cross-asset trading and execution
FlexTrade's flagship EMS will be utilised by Alecta to handle equities and derivatives execution.
Wesley Bray - The Trade
Occupational pension company Alecta has adopted FlexTrade Systems' FlexTRADER EMS for equities and derivatives trading. Stockholm-based Alecta - with $110 billion in assets under management - stated that it decided to replace its existing EMS solution to support the efficient growth of its equities and derivatives trading activities.
/jlne.ws/4eKJPjD
SoftBank Group Plans $1.5 Billion Investment in OpenAI; Japanese firm had invested about $500 million in OpenAI in a recent round of new funding
Kosaku Narioka - The Wall Street Journal
SoftBank Group is doubling down on its investment in OpenAI, taking a bigger bet on the potential of artificial intelligence as the technology improves and gains momentum. The Japanese tech investment company is starting a tender offer to buy $1.5 billion of OpenAI shares from employees of the startup behind ChatGPT, a person familiar with the matter said. SoftBank is making the investment through its Vision Fund 2, the person said, adding that current and former OpenAI employees will have until Dec. 24 to decide whether to sell their shares.
/jlne.ws/415r4UE
Founder of Chinese AI firm DeepGlint, an early mover, steps back amid rising losses
Ben Jiangin - South China Morning Post
The founder of Beijing-based artificial intelligence (AI)-based image recognition firm DeepGlint has stepped down as general manager, as the company grapples with widening losses this year amid fresh competition from generative AI firms. Zhao Yong is stepping back from day-to-day operations but retains his role as chairman, according to a corporate filing from the Shanghai-listed company. The 45-year-old entrepreneur holds a 17.55 per cent stake in the company. Before founding DeepGlint in 2013, he worked for Google after receiving a doctorate from Brown University in the US.
/jlne.ws/4g9WZb3
Cognitive Scientist Gary Marcus Says AI Must Be Regulated. He Has a Plan.
Steven Rosenbush - The Wall Street Journal
Cognitive scientist, author and entrepreneur Gary Marcus was an early and vocal critic of large language models, arguing their limitations were far greater than many people thought. Lately, he has been making the case that LLMs are far riskier, too-and must be regulated. In September, Marcus published "Taming Silicon Valley: How We Can Ensure That AI Works for Us." The book argues that technological risks and moral problems raised by today's AI are deeply intertwined. Marcus wrote the book in roughly two months, because he said there is an urgent need for greater skepticism to enter the public conversation about AI.
/jlne.ws/3CMLDLC
Inside Elon Musk's Quest to Beat OpenAI at Its Own Game; The Tesla CEO is racing to make xAI, which launched after its competitors, the world's most advanced AI company
Meghan Bobrowsky, Berber Jin, and Tom Dotan - The Wall Street Journal
Elon Musk spent the past year building his artificial intelligence startup xAI at breakneck speed. Now he has to turn it into a real business. Musk started xAI last summer in an effort to play catch-up with OpenAI, the ChatGPT developer he co-founded and left in 2018 after a power struggle. He poached talent from across the industry. He pushed contractors to build a massive new data center in a matter of months, a nearly unheard of timeframe for a project of that size. Now he is promising the facility in Memphis, Tenn. will help xAI deliver the world's most powerful AI "by every metric" by December.
/jlne.ws/4eNZqyO
OpenAI's text-to-video AI tool Sora leaked in protest by artists; People testing new model accuse company of 'artwashing'
Cristina Criddle and Madhumita Murgia - Financial Times
OpenAI's new video-generation artificial intelligence tool Sora was briefly leaked by artists testing the new model, which some creative industries fear could pose a disruptive threat. A project on developer platform Hugging Face on Tuesday appeared to be connected to the application programming interface for OpenAI's Sora, enabling others to access the model and generate videos using the AI.
/jlne.ws/4i9EZ2g
Software is in, chips are out as traders position for Trump era
Ryan Vlastelica - Bloomberg
There's been a sea change among tech investors during the past month: Software stocks are hot, while semiconductor makers are not. Wall Street is rotating out of the chip sector, put off by stretched valuations and trade war-related risks under Donald Trump. Already a vocal critic of the Chips Act, the President-elect vowed on Monday to impose additional tariffs on China, Canada and Mexico. Software, in contrast, has been on an upswing. Investors are positive on the group given its lower exposure to tariff risks, and as the tailwind from artificial intelligence looks set to shift from infrastructure to services.
/jlne.ws/3CFNqlt
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| Cybersecurity | | Top stories for cybersecurity | Starbucks Among Companies Affected by Ransomware Attack; Blue Yonder, which provides supply chain management software for thousands of companies, said a cyberattack had disrupted some services.
Ali Watkins - The New York Times
A ransomware attack against a supply chain manager has snarled payroll and scheduling services for prominent international companies, including Starbucks and one of Britain's largest grocery store chains. Blue Yonder is an Arizona-based company that provides software for thousands of companies to manage their supply chains from planning to fulfillment and delivery. Last week, the company "experienced disruptions to its managed services hosted environment, which was determined to be the result of a ransomware incident," Blue Yonder said in a statement. The company said it had enlisted the help of outside cybersecurity firms, but its system remains stymied.
/jlne.ws/3VaUFZa
T-Mobile Engineers Spotted Hackers Running Commands on Routers; Carrier says the unauthorized activity resembled Salt Typhoon; Companies trying to work together to avert further hacks
Kelcee Griffis - Bloomberg
Suspicious behavior on T-Mobile US Inc.'s network devices tipped off the company to a breach that was potentially part of a sprawling cyber-espionage campaign that has raised urgent questions about the exposure of a critical sector of the economy. Jeff Simon, T-Mobile's chief security officer, said in an interview with Bloomberg News that while the behavior wasn't "inherently malicious," it was unusual enough to draw the attention of the company's network engineers. In recent weeks, the engineers had spotted unauthorized users running commands on the company's network devices, seeming to probe the structure of the network, Simon said.
/jlne.ws/3Oqhggu
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| Cryptocurrencies | | Top stories for cryptocurrencies | Trump eyes handing CFTC oversight of crypto: Report Donald Trump's team is considering handing the regulation of crypto exchanges and spot markets for cryptocurrencies deemed commodities to the CFTC.
Brayden Lindrea - CoinTelegraph
Donald Trump's incoming administration reportedly wants the US Commodity Futures Trading Commission to oversee the crypto industry - a move that could drastically roll back some of the regulatory power from the Securities and Exchange Commission. The role could see the CFTC take on the regulation of spot markets for digital assets deemed commodities and crypto exchanges, Fox Business reported on Nov. 26, citing sources familiar with the matter. United States President-elect Trump's team says the SEC's enforcement actions against industry players have slowed crypto innovation in the US and that a less stringent approach is needed to facilitate growth, Fox reported.
/jlne.ws/3AWCNKJ
It's bananas to regard art as an investment; Enjoy your paintings and sculptures. Just don't expect a return on what you paid for them
Jonathan Guthrie - Financial Times
Who is the butt of the joke here? Sotheby's just sold a banana stuck to the wall with duct tape entitled "Comedian". Cryptocurrency entrepreneur Justin Sun bought the artwork by Maurizio Cattelan for $6.2mn including fees. Sun said he would eat the banana. If you have conventional tastes in art, the joke is on Sun for wasting his money. But that would also mean the joke is on you, from Sun and Cattelan's likely viewpoint. Enraging the hidebound bourgeoisie is a traditional pursuit of artists. Crypto bros now participate.
/jlne.ws/3Z7zoR9
Bitcoin options trade shows more bets on retreat after failing to breach $100,000
Gertrude Chavez-Dreyfuss - Reuters
Investors in the world's largest cryptocurrency are anticipating a significant downward move after bitcoin failed to hit an all-time peak of $100,000, according to a crypto trading platform citing recent options activity. Bitcoin (BTC-USD) hit a record high of $99,830 on Nov. 22, but it has since fallen more than 8% to a one-week low of 91,377.32 on Tuesday.
/jlne.ws/416L4Xc
Why is bitcoin's $100,000 push stalling? These long-term holders can't resist selling. Spot bitcoin ETFs saw $438 million outflow on Monday
Frances Yue - MarketWatch
Bitcoin's push for the $100,000 threshold remained stalled Tuesday, with some investors appearing to book profits following the crypto's rally to a record high. The largest cryptocurrency BTCUSD 3.43% was trading at around $91,867 Tuesday afternoon, according to Dow Jones Market Data. It is down 8% from bitcoin's record high at $99,768 reached on Nov. 22, while still up 119% year to date.
/jlne.ws/3CFVnaj
Crypto Exchange Kraken Shuts Down NFT Marketplace; Holders will have help from support moving NFTs from platform; NFTs struggle to rebound from the crypto bear market of 2022
Teresa Xie - Bloomberg
The crypto exchange Kraken is shutting down its NFT marketplace almost two years after the platform was launched, saying it's shifting more resources into new products and services. "Clients have been informed of the changes and our team will support them as they move their NFTs to their Kraken Wallet or a self-custodial wallet of choice," according to a statement from a Kraken spokesperson.
/jlne.ws/3CMbhjD
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| Politics | | An overview of politics as it relates to the financial markets | The IRS is at risk of losing $20 billion in funding without legislative intervention
Fatima Hussein - Associated Press Finance
Already bracing for funding cuts under a new Trump administration, U.S. Treasury officials are calling on Congress to unlock $20 billion in IRS enforcement money that is tied up in legislative language that has effectively rendered the money frozen. Hoping to unlock the funds in upcoming budget negotiations, Treasury officials are rushing for action before President Joe Biden's term ends.
/jlne.ws/4eMM8Ti
The Art of the Tariff: Trump's latest threat is right out of his negotiating playbook
Alice Tecotzky - Business Insider
During his first term, Trump threatened tariffs while renegotiating trade with Mexico and Canada. Now, his promise to slap a 25% tariff on all imports from the countries strikes a similar chord. Scott Bessent, Trump's pick for treasury secretary, has called tariffs a "negotiating tool." President-elect Donald Trump helped pen business advice in his 1987 book "The Art of the Deal" that's been reflected in his posture on tariffs, from his first term to today: "Leverage: don't make deals without it." Trump announced on Monday that he planned to use an executive order on his first day in office to impose a 25% tariff on all goods from Mexico and Canada. He said in a post on Truth Social that the tariffs "will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!"
/jlne.ws/3OwLD4M
Trump Treasury Nominee's Oil Math Doesn't Add Up; Boosting energy production is easier said than done, and the effect on the government deficit isn't clear either
Jinjoo Lee - The Wall Street Journal
Donald Trump's Treasury Secretary pick, Scott Bessent, has a government deficit-reduction plan, neatly packaged as 3-3-3, which includes the U.S. producing an additional 3 million barrels of oil-equivalent a day. Not only does that energy plan seem impossible to implement, it makes little sense. First of all, convincing oil-and-gas companies to produce more-the equivalent of over a fifth of total U.S. oil production today-will be a near-impossible task. The industry was scarred by years of overproduction during the shale boom, and investors no longer tolerate wildcatter behavior: They would rather see cash returns over excessive fracking. Trump's major oil and gas donors have already signaled that they don't want to "drill, baby, drill."
/jlne.ws/4fJxu09
The U.S. Is Losing the Ability to Deter War With China; A war game simulation shows we will run out of long-range missiles in a week.
Seth G. Jones - The Wall Street Journal
America is rapidly losing the ability to deter China in the Taiwan Strait and elsewhere due to a weak defense industrial base. The Trump administration can revitalize this base by increasing procurement funds, making defense systems critical for warfighting and deterrence in Asia a priority, and cutting excessive contracting regulations. This month, my colleagues and I led members of the House Select Committee on Strategic Competition between the United States and the Chinese Communist Party in a simulation of a Chinese invasion of Taiwan. The goal was to understand how the U.S. defense industrial base would perform in a protracted war with China and to assess the implications for deterrence. The results weren't reassuring.
/jlne.ws/4g77g7D
Trump Wields a Tariff Bludgeon; The threat of a tax on imports will be his all-purpose lever in foreign and even domestic policy.
The Editorial Board - The Wall Street Journal
Well, here we go. Donald Trump is still two months from returning to the White House, but he's already wielding tariffs as an all-purpose bludgeon to achieve his political and foreign-policy goals. Markets will have to get used to it because this is going to be Mr. Trump's second-term method, no matter the economic and strategic ructions. The President-elect issued a broadside Monday on Truth Social vowing 25% tariffs against all goods from Mexico and Canada, and a new 10% tariff on imports from China. "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!" he wrote about the Canada and Mexico levies.
/jlne.ws/3VdgKWV
Goldman sees 'significant' hit to US from Trump's Canada tariffs
Yongchang Chin and Weilun Soon - Bloomberg
/jlne.ws/3V7U6PK
French markets hit by threat of government collapse; Paris's cost of borrowing relative to Germany reaches highest level since Eurozone crisis in 2012
Ian Smith and Leila Abboud - Financial Times
/jlne.ws/3ONDcCF
What Is Russia's Oreshnik Ballistic Missile?; The weapon used for the first time against Ukraine last week is capable of carrying nuclear weapons.
Lara Jakes
/jlne.ws/3B1XkgU
China has placed defence minister Dong Jun under investigation as part of a broader probe into graft in its military, US officials said
Demetri Sevastopulo - Financial Times
/jlne.ws/3VzuYlp
India suspends parliament again in row over U.S. action on Adani
Reuters
/jlne.ws/3CNyT7z
Poland Signals Breakthrough in Feud With Ukraine That Put EU Ambitions at Risk
Piotr Skolimowski - Bloomberg
/jlne.ws/3VaUc9w
Mexico warns Trump's tariff would kill 400,000 US jobs
Reuters
/jlne.ws/4g49nsW
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| Regulation & Enforcement | | Stories about regulation and the law. | BlackRock, Vanguard Accused of Antitrust Violations by Texas; Texas leads states suing money managers including State Street; Case cites coal prices, alleged collusion against producers
Bloomberg News
BlackRock Inc., Vanguard Group Inc. and State Street Corp. were sued by a group of states led by Texas for allegedly breaking antitrust law by boosting electricity prices through their investments, in the highest-profile lawsuit yet against the beleaguered ESG industry. Texas Attorney General Ken Paxton and 10 other states claim the money managers combined their market clout and membership in climate groups to pressure coal producers to cut output. Shortages have caused Texans and residents of the other states to pay higher power bills, according to the lawsuit, filed Wednesday in federal court in Texas.
/jlne.ws/3Zr9LfN
Credit Suisse Laundering Case Overturned With UBS Acquittal; Credit Suisse convicted for failing to stop money laundering; UBS took over responsibility of the case and others last year
Hugo Miller and Levin Stamm - Bloomberg
Credit Suisse's 2022 conviction for failing to prevent the money laundering of a cocaine dealer's profits was overturned by a Swiss appeals court following the death of one of its former employees who was found guilty in the case. A., as the former banker can only be named, died in April 2023 following a long-running illness, complicating the appeals process. The Swiss Criminal Appeals Court ruled on Wednesday that it "in view of A.'s death, it was not possible to examine the bank's" alleged breach "without violating the presumption of innocence of the deceased."
/jlne.ws/4fJOjIB
FCA reworks internal whistleblowing policies after criticism; Changes follow backlash against UK financial watchdog's chair for revealing whistleblowers' identities internally without their consent
Martin Arnold - Financial Times
The UK financial watchdog has reworked its internal whistleblowing policy after it was criticised for mishandling complaints from current and former employees. The Financial Conduct Authority said the changes would clarify the different channels available for staff to raise concerns, how the policy applies to former employees, and what to expect when raising a grievance.
/jlne.ws/49bRdTP
Commissioner Johnson Announces CFTC Market Risk Advisory Committee Meeting on Dec. 10
November 26, 2024
CFTC
CFTC Commissioner Kristin N. Johnson, sponsor of the Market Risk Advisory Committee, announced today the MRAC will hold a public meeting on Tuesday, Dec. 10, from 9:30 a.m. to 12:30 p.m. (EDT) at the CFTC's Washington, D.C., headquarters. At the meeting, the MRAC will discuss current topics and developments in the areas of central counterparty risk and governance, market structure, climate-related risk, and innovative and emerging technologies affecting the derivatives and related financial markets, including discussions led by the Central Counterparty Risk & Governance and Market Structure subcommittees with recommendations related to CCP cyber resilience and critical third-party service providers and the cash futures basis trade, respectively.
/jlne.ws/3ANPyaw
Director of Sydney gym charged with authorising the making of false statements to ASIC
ASIC
Jye Dilin Menzies-Clifton of Minchinbury, NSW, today appeared at the Mt Druitt Local Court charged with two counts of authorising the making of a false statement in a document lodged with ASIC contrary to section 1308(1) of the Corporations Act 2001 (Cth). At the time of the alleged offences, Mr Menzies-Clifton was the director of Strong and Co Australia Pty Ltd, a company which operated a Sydney gym.
/jlne.ws/3ZtFlJS
ASIC and APRA release observations from the banking industry's implementation of the Financial Accountability Regime
ASIC
The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have published a letter containing observations on registration and notification lodgements made since the Financial Accountability Regime (FAR) commenced for the banking industry. The letter identifies areas that require further consideration by banking entities and reiterates specific aspects, consistent with previously released FAR guidance, to entities across the banking, insurance and superannuation industries.
/jlne.ws/3V62qzl
ASIC disqualifies security industry director for five years
ASIC
ASIC has disqualified director Mary Asha Makeny of Liverpool, NSW, from managing corporations for five years following her involvement in the failure of three companies in the security industry.
/jlne.ws/4g7clwN
FCA fines former airline executive for trading during closed periods and for trade disclosure failures
FCA
The FCA has fined András SebÅ'k, former chief supply chain officer at Wizz Air Holdings plc (Wizz Air), £123,500 for trading company shares when he wasn't permitted to, and failing to disclose his trades. Mr SebÅ'k carried out the trades in his capacity as a person discharging managerial responsibility (PDMR) at Wizz Air.
/jlne.ws/4ib0mjQ
The FCA launches consultation to streamline rulebook
FCA
The MiFID Organisational Regulation (MiFID Org Reg) is EU law we have adopted which contains key conduct, systems and controls obligations for firms, in particular investment firms. Following the Treasury's announcement to lift requirements from legislation into the FCA's rulebook, this consultation sets out our proposals for transferring the rules without policy changes.
/jlne.ws/4ib6uZ5
MAS and NFRA Reaffirm Commitment to Strengthen Supervisory Cooperation
MAS
The Monetary Authority of Singapore (MAS) and the Chinese National Financial Regulatory Administration (NFRA) reaffirmed their commitment to strengthen supervisory cooperation at the annual MAS-NFRA Supervisory Roundtable today.[1] Held at the sidelines of the 30th anniversary commemoration of the Suzhou Industrial Park[2], the Roundtable was co-chaired by Deputy Managing Director (Financial Supervision) of MAS, Ms Ho Hern Shin, and Vice Minister of NFRA, Mr Zhou Liang.
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Option Traders Bet on Deep Treasury-Market Selloff Within Weeks; Bets include 10-year rate possibly eclipsing YTD high of 4.74%; JPMorgan Treasury client short positions rise to most in month
Edward Bolingbroke - Bloomberg
A bearish tone is taking hold in the market for interest-rate options, suggesting that bond traders are bracing for Treasury yields to surge anew in the coming weeks. There has been steady demand for bearish hedges using Treasury-option put structures in January contracts on 10-year notes, which expire Dec. 27. Positioning has also been building over the past couple of days in the February options, which expire Jan. 24, the week of President-elect Donald Trump's inauguration.
/jlne.ws/4fMYQCC
Billionaire Salinas' Stock Is Trapped in Bizarre Trading Halt; Elektra trading remains halted as bids trigger circuit breaker; Salinas' stake represents three-quarters of his net worth
Michael O'Boyle and Carolina Wilson - Bloomberg
Ricardo Salinas Pliego is no stranger to controversy and crisis. Over decades, the entrepreneur has feuded with business partners, investors and regulators as he built an empire that's made him Mexico's third-richest person. But even for Salinas, the current financial predicament is dire - and also a little odd. That's because the bulk of his $10.5 billion wealth is tied up in a company, Grupo Elektra, that is poised to plunge in value as soon as it begins trading again on the Mexican stock exchange. This is where things get weird. Officials have been trying for days to lift the halt on the stock that was imposed in July, only to give up once buy orders hit trading screens in the pre-market auction.
/jlne.ws/4eSkKDj
Warhammer Owner Games Workshop Set to Join FTSE 100 Index
Ian Walker - The Wall Street Journal
Warhammer owner Games Workshop is set to join the FTSE 100 index in next week's regular quarterly reshuffle, according to indicative data from FTSE Russell, after a 28% rise in its shares over the past three months. The U.K. miniature-wargaming company is expected to join Alliance Witan and St. James's Place in the top flight, replacing retailers B&M European Value Retail, Mike Ashley's Frasers Group and housebuilder Vistry Group. The indicative data is based on the companies closing share prices on Friday. Vistry Group joined the top flight for the first time in June, while B&M has been in the index since September 2020 and Frasers since September 2022.
/jlne.ws/3COMfjW
Some Wamco Trades Were Better Than Others; Cherry-picking, quant contests, hairy private wealth clients, in-seat promotions, a DJT business model and the head of mar
Matt Levine - Bloomberg
Cherry-picking
It is nice, in investing, to have a one-day lookback. If you could buy a stock first thing in the morning, see how it does over the course of the day, and then at 4 p.m. decide either to keep it (because it went up ) or to cancel the trade (because it went down) - that would be nice, for you. If you plan to hold the stock for a year, it wouldn't be that nice - one day of returns probably won't affect your overall performance that much - but it helps.1
/jlne.ws/4g740co
GM, Ford Fall on Trump Tariffs Seen Adding $3,000 to Car Prices
David Welch, Gabrielle Coppola and Keith Laing - Bloomberg
Shares of US automakers tumbled on worries that a new round of tariffs imposed by President-elect Donald Trump will cause sticker prices to soar even further. Trump said that he would impose additional 10% levies on goods from China and 25% on all products from Mexico and Canada - critical trade routes for the auto industry's global supply chain. It's unclear how new tariffs would be implemented under an existing trade agreement between the US, Canada and Mexico, but the threat underscores the incoming president's intention to shake up global trade ties.
/jlne.ws/3CY7Ztt
Just Eat Plans to Delist From London Exchange Over Low Volumes
Sarah Jacob - Bloomberg
/jlne.ws/3ZtKsty
Leaving Russia Was the Right Decision, Unilever CEO Says
Bloomberg video
/jlne.ws/3V76aks
Zinc Rises as Orders to Withdraw Metal From LME Warehouses Surge; Requests to take zinc out of storage jumped for a second day; Single entity has bought up more than half of available stock
Jack Ryan and Mark Burton - Bloomberg
/jlne.ws/3CIILiW
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Climate change is a global problem - it requires a global solution; The deal on financing agreed at COP29 is too little, too late
Martin Wolf - Financial Times (opinion)
Was the outcome of COP29 a failure or a disaster? To argue that it was instead a success would be reasonable only if we were contrasting the agreement with an irrecoverable collapse (which would, alas, have been plausible, given the return of Donald Trump). But if one ignores this faint comfort, the assessment has to lie between failure and disaster - failure, because progress is still possible, or disaster, because a good agreement will now be too late.
/jlne.ws/49ef9G7
Polish bank chief warns capital shortage will affect green transition; Szymon Midera says mortgage mis-selling costs have depleted funds available to finance switch towards renewables
Raphael Minder - Financial Times
The boss of Poland's largest bank said a capital shortage created by the high cost of compensating those caught up in a mortgage mis-selling dispute had left the sector ill-equipped to fund the country's green energy transition. Szymon Midera, chief executive of state-controlled PKO BP, also warned of fresh uncertainty from a new and separate wave of lawsuits from customers that threatened to prolong the problem, while also slowing the pace of banking sector consolidation. Banks need to co-finance green projects to help Prime Minister Donald Tusk meet his pledge to reduce Poland's reliance on polluting coal, which still generates about 60 per cent of its electricity. This switch is also at the heart of Warsaw's plans to use billions of recently unfrozen EU funds.
/jlne.ws/3OwTVtq
Trump and the AI Power Boom Are Putting Utility Climate Goals at Risk; Some US utilities say rising demand from data centers means fossil fuels will be needed for longer
Josh Saul - Bloomberg
Big US utilities' climate goals are in peril as artificial intelligence turbocharges electricity demand and Donald Trump's reelection signals policy shifts that would favor fossil fuels. These companies all have ambitious targets to cut their carbon emissions, most often to reach "net-zero" by 2050. But the surprising growth in power consumption led by data centers, combined with Republican electoral victories, has some utilities delaying the retirement of coal-burning plants and planning a massive buildout of natural gas generation.
/jlne.ws/4eL6yMd
US farmers protest against climate law loophole subverting green fuel crops; American imports of used Chinese cooking oil as a biofuel feedstock have surged since passage of Inflation Reduction Act
Amanda Chu - Financial Times
US farmers are urging the White House to crack down on Chinese imports of used cooking oil in the waning weeks of Joe Biden's administration, warning the shipments are undermining rural America's big bet on crops for low-carbon fuels. Used cooking oil is a key ingredient in green diesel and sustainable aviation fuel, and imports from China have reached record highs, nearing 1mn metric tonnes in September, according to US Department of Agriculture trade data. Other countries have blocked the imports, contributing to their surge into the US.
/jlne.ws/3ZmolVD
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | EU Judges Uphold HSBC Cartel Fine
Edith Hancock - The Wall Street Journal
The European Union's General Court upheld a 31.74 million-euro ($33.3 million) fine handed to HSBC in 2021 for its role in a euro interest rate derivatives cartel. The court's decision on Wednesday is in line with a 2021 ruling from the European Commission, a revision that recalculated an earlier fine. The commission originally fined HSBC roughly 33.6 million euros for its role in the cartel, which it said distorted competition for euro interest rate derivatives. Judges then canceled the fine in 2019, saying the commission's statement of reasons was inadequate. That led the commission to reopen its probe and recalculate the penalty.
/jlne.ws/3Z7rCqC
Leaked Morgan Stanley documents reveal 1 in 4 ultrawealthy clients raise a red flag
Chloe Berger - Fortune
Many of Morgan Stanley's high-net-worth clients' assets were flagged as being at high risk for money laundering. A recent investigation by the Wall Street Journal uncovered the wealth management branch of investment bank Morgan Stanley's alleged failure to properly vet its rich clients' assets. Interviews with employees and internal messages paint a picture of dubious business ventures under the bank's management.
/jlne.ws/411mGWQ
Societe Generale connects to CLS's cross currency swaps service; Use of the service will enable participants to benefit from multilateral netting against all FX transactions.
Wesley Bray - The Trade
Societe Generale has gone live on market infrastructure group CLS' cross currency swaps (CCS) service. CCS trades have notable settlement risk exposure linked to the high value of the initial and final principal exchanges. Settling these trades on a gross bilateral basis also results in operational inefficiencies and liquidity constraints. The CCS service can be used in conjunction with post-trade processing platform MarkitWire to integrate CCS flows into CLSSettlement, providing the ability for participants to benefit from multilateral netting against all FX transactions.
/jlne.ws/4eSoHYL
In Hot Credit Market, Simple Fixed-Maturity Funds Are Booming; Assets in funds run by firms like BlackRock have surged; Yields are in focus as spreads over government debt shrink
Tasos Vossos - Bloomberg
Credit investors squeezed by the tightest spreads in almost 20 years are opting for bare-bones strategies, creating a boom for Europe's fixed-maturity funds. These previously-niche funds invest mostly in investment-grade corporate bonds, offering investors a fixed annual yield and the return of their money at a set date. This straightforward pitch has become irresistible at a time when other sources of income, including risk premiums over government debt and more complicated bets on subordinated or higher-risk corporate bonds, are vanishing.
/jlne.ws/3COUU5W
Scott Bessent's fund made biggest returns with bet against Fed; Donald Trump's Treasury secretary pick shorted vulnerable assets in 2022 to capitalise on post-pandemic inflation
Amelia Pollard and James Fontanella-Khan and Harriet Agnew - Financial Times
Scott Bessent's hedge fund notched its best returns with a contrarian bet against the Federal Reserve that the burst of US inflation in 2022 would prove more lasting than the central bank predicted. The wager made by the man Donald Trump picked last week to be his Treasury secretary saw Bessent's Key Square Capital flagship fund score returns of 29 per cent in 2022 as the wider market fell.
/jlne.ws/4g7eMiR
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Government workers on the prospect of DOGE-fueled layoffs: 'It kind of feels like we're being villainized'
Ana Altchek, Ayelet Sheffey, Juliana Kaplan, and Geoff Weiss - Business Insider
Donald Trump's new DOGE commission, tasked with cutting spending, has floated laying off federal workers. Government employees said they were preparing by networking and freshening their résumés. Amid the concerns with DOGE, some employees said there could be benefits to its aims. Federal employees are reporting mixed feelings about President-elect Donald Trump's new Department of Government Efficiency and its ideas to cut costs by laying off workers and enforcing return-to-office mandates. Some are worried, some are optimistic, and most are considering their other career options, 10 people who spoke with Business Insider said. Most asked for anonymity for fear of professional repercussions.
/jlne.ws/412DzAx
From White House to Mouse House, Successions Are a Killer Problem; The botched Biden-Harris handover offers sharp reminders for how not to handle one of the corporate world's biggest challenges.
Adrian Wooldridge - Bloomberg (opinion)
The Democratic Party's defeat in November was the result of, among other things, failed succession planning. An ageing Joe Biden refused to retire after one term; he appointed a vice president who presented a limited threat, having failed to shine in the 2020 primaries; and, when the party elders forced him to withdraw after his catastrophic debate performance, he effectively scuppered the idea of holding a mini-primary by immediately endorsing Kamala Harris. Botched succession is a pervasive problem in human affairs: in autocracies as well as democracies (Vladimir Putin's eventual departure will doubtless lead to a bloody power struggle) but also in the private sector as well as the political world. The one "known known" in the business world is that CEOs will eventually have to hand over to a successor. Yet companies repeatedly make a hash of it.
/jlne.ws/4fHSN2c
Starbucks Workers to Get Only 60% Bonus on Worst Year Since 2020; The company's results are dragging down many workers' payouts; New CEO Brian Niccol has issued a plan to reverse sales slump
Daniela Sirtori - Bloomberg
Many Starbucks Corp. corporate workers are only getting 60% of their overall bonuses for the company's most recent fiscal year due to the chain's poor financial performance, according to a person familiar with the matter. The company's weaker-than-expected financial results for the fiscal year that ended Sept. 29 are dragging down the overall payout for many workers who met their personal goals, this person said, who was unauthorized to speak publicly on the matter.
/jlne.ws/3ZrceXx
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| Wellness Exchange | | An Exchange of Health and Wellness Information | A Scientist's Final Quest Is to Find New Schizophrenia Drugs. Will He Live to See Them?; Edward Scolnick led the development of dozens of medicines while at Merck; his current mission pits him against time and the mental illness of millions, including his son
Amy Dockser - The Wall Street Journal
Dr. Edward Scolnick figures he needs five, maybe 10 more years to solve one of the brain's greatest mysteries. Scolnick, 84 years old, has spent most of the past two decades working to understand and find better ways to treat schizophrenia and bipolar disorder, mental illnesses suffered by tens of millions of people, including his son. "I know I can crack it," said Scolnick, a noted drug developer who spent his career plumbing the building blocks of DNA for new treatments. Long before his latest quest, Scolnick spent 22 years at Merck, mostly as head of the drug giant's laboratory research. He led development of more than two dozen medicines, including the first approved statin to lower cholesterol, an osteoporosis treatment and an anti-HIV therapy.
/jlne.ws/3Zpqz6A
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | China's move to centralise oversight of financial sector shouldn't be feared; Stronger party control over the financial sector will allow the building of a more cohesive framework for further orderly decentralisation
Shanshan Li - South China Morning Post (opinion)
In 2017, at its highest-level financial work conference, China stressed the need for the country's financial affairs to be under centralised and unified party leadership. This was reaffirmed at the five-yearly conference last year, which spoke of strengthening party leadership over the financial sector. Since last year, China's evolving financial regulatory reform has sparked widespread debate in the international media. Critics warn that heightened centralisation and political oversight could, through interventions in capital and credit allocation, exacerbate financial instability.
/jlne.ws/3Z5SirD
China's Stock Rally Faces Risk as Retail Enthusiasm Seen Cooling
Bloomberg News
Retail investors are cashing out from China's exchange-traded funds, risking further market volatility if Beijing fails to boost sentiment, according to analysts. ETFs have seen net outflows since late October, according to an analysis by Haitong Securities. ETFs have been a popular choice for local retail investors to invest in stocks, as it is a hassle-free and less expensive tool that allows them to pursue themes such as dividend stocks that dovetail with Beijing's priorities.
/jlne.ws/4eR4dQb
Singapore's MAS Warns of Rising Trade and Geopolitical Tensions
Marcus Wong and Philip Heijmans - Bloomberg
Singapore's central bank warned of global monetary policy uncertainty in the face of increased trade friction and geopolitical wrangling. "The global economy confronts heightened uncertainty, trade tensions and geopolitical conflicts that could raise the probability of adverse shocks," the Monetary Authority of Singapore said in its annual Financial Stability Review on Wednesday. The build-up of financial imbalances, stretched valuations and leveraged positions may amplify these risks, the MAS said. Potential triggers for market volatility include more hawkish-than-expected Bank of Japan rate decisions, US data which challenge the soft-landing narrative and fiscal sustainability concerns, the central bank added.
/jlne.ws/3AQ4DIF
Singapore Prosecutors Say Trader Took $360 Million in Metal Scam; Nickel trader Ng Yu Zhi has pleaded not guilty to 42 charges
Yihui Xie - Bloomberg
A Singapore businessman who convinced investors to put a total of S$1.5 billion ($1.1 billion) into a nickel trading scheme channeled a third of that into his own accounts, prosecutors said at the start of his trial. Ng Yu Zhi, a former accountant, faces 42 charges including fraud, forgery and money laundering. He's accused of leading investors in his Envy Group to believe they could profit from physical nickel trades, thanks to his purchases of discounted metal from an Australian mine. In reality, the scheme was "pure fiction," the prosecution said in an opening statement.
/jlne.ws/4fRmJJl
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