| December 18, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
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John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Both my sons, Tim and Robby, have long hair. That is, they have grown shoulder-length hair. I have short hair and even though I had longer hair in middle school, I have had shorter hair the rest of my life. I have worked in a world where short hair is generally preferred. One would get a haircut before going on a job interview. Tim and Robby remind me that Jesus had long hair. I don't argue that point or bother them about their hair length. I leave that to my wife, Cheryl, LOL. The reason for this discussion of hair length is that in Utah, men resembling Jesus, complete with long hair and beards, are in high demand as models for family portraits and wedding announcements, The Wall Street Journal reports. This unique trend caters to individuals seeking personalized religious imagery, with models like cheesemonger Bob Sagers and actor Jai Knighton posing in robes for $100-$200 per hour. Challenges include embodying Christlike qualities beyond appearance, as clients often expect authenticity. The phenomenon is partly fueled by Utah's cultural focus on Christianity, social media trends, and a shortage of suitable models in Mormon communities, where grooming restrictions prevail. Some, like early adopter Terry Holker, even offer free portraits, making Jesus modeling both a spiritual and social phenomenon.
BGC marked 25 years as a publicly listed company on the Nasdaq exchange by ringing the opening bell yesterday, coinciding with the birthday of Wall Street pioneer Bernie G. Cantor, it shared in a post in LinkedIn.
I have been asked recently why the CME Group is going into the single stock futures business. Risk.net reported six days ago that the CME was planning on launching SSFs on the Magnificent 7 stocks, including names such as Amazon, Nvidia and Tesla. I have made the argument that zero-day-to-expiration options are a form of SSF with embedded options.
Given the tremendous success of the ODTE options, the CME adding SSFs in the Magnificent 7 stocks makes perfect sense on two fronts. On the one hand, it is another variation of the ODTE/SSF to trade, one without the embedded option. On the other hand, it is a product that can be traded against the ODTE options, though in a futures account. If one was long a ODTE call, it might be a better deal to just sell a SSF rather than buy a ODTE put. I used to love to play ping pong trading futures against my option positions when they were close to the money or in the money near expiration.
What do you think? Why is the CME launching single stock futures on the Mag 7 stocks? Let me know.
Here are the headlines from in front of FOW's paywall from some recent stories: Broadridge to upgrade ClearFi platform for MiCAR compliance, European DORA registration of third parties 'within reach' - ESMA, ANALYSIS: Non-bank financial sector needs tailored regulation - ISDA, CFTC approves rule on safeguarding and investing customer funds, ANALYSIS: Indian derivatives volumes collapse as regulation bites and ESMA publishes final guidance on crypto regulation.
Here is the obituary link for Lance Goldberg. There is no information there on his life.
Michael Forrester, Sr. called yesterday to share that Tom (Maddog) McGurn, a former wheat pit trader who cleared Gerstenberg & Company, has passed away.
Jodi Burns is starting a new position as head of business development, markets at the Long-Term Stock Exchange, she shared on LinkedIn. Burns has been a donut entrepreneur for the last six years, but was with Thomson Reuters and ISE before that.
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:
- This team replicated the secret sauce of a winning hedge-fund strategy. Now any investor can try to copy it. from MarketWatch.
- Deribit Partners With Paxos to Launch Pax Gold Futures and Options Trading from Deribit.
- 'Most clients are probably out of balance': BlackRock's stock chief says investors should consider this portfolio change in 2025 from Business Insider. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Broadridge Advances Futures Execution Platform with AI and Partnerships
JohnLothianNews.com
In a recent interview at FIA Expo in Chicago, Dan Smalley, global head of business development - derivatives at Broadridge, outlined the company's strategy for innovation in the futures execution space.
Watch the video »
David Greely - Abaxx
Watch Video »
Matthias Graulich - Eurex
Watch Video »
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Bill Pulte Pushes for Virtu Sale, Prompting CEO to Fire Back
Katherine Doherty and Patrick Clark - Bloomberg
Bill Pulte is arguing for the sale of market maker Virtu Financial, contending its chief executive officer, Doug Cifu, spends more time tweeting than focusing on his business. Cifu isn't "focused on building a materially bigger business and spends precious time tweeting on items not related to the core operations of the company," Pulte, chairman of activist investor Pulte Family Office, said Tuesday in a statement. "As such, it now makes sense to put the Company in the hands of professional owners."
/jlne.ws/49KPpRT
****** Just to prove he does not spend too much time on X/Twitter, Cifu responded on Blue Sky, Threads and Facebook.~JJL
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FCA finds two-thirds of young investors take less than 24 hours to make investment decisions
FCA
A quarter of young investors admit they make investment decisions impulsively to keep up with current trends. £550 is average spend on hyped investment products. 66% of 18-40 year-old investors spend less than 24 hours deciding on an investment, and 14% finalise their decision in under an hour. Two in five investors regret purchasing a hyped investment product. Latest research from the FCA reveals that young investors are making important investment decisions in a matter of hours, rather than taking the time to check out whether the product is right for them in the long-term. The survey, which polled 2,000 UK investors aged 18 to 40, found that two-thirds (66%) make investment decisions in less than a day, with one-in-seven (14%) deciding to purchase in under 60 minutes. Only 11% take more than a week to decide if an investment is right for them.
/jlne.ws/3ZL1xhc
***** We old investors can't remember how long we have been thinking about a particular investment. Then again, we old investors can't remember why we walked into the kitchen half the time.~JJL
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Smart Vs. Dumb Money - How Exuberant About Trump Are You? Professionals are approaching the current exuberance for stocks with a colder eye than it may seem.
John Authers - Bloomberg
The Thundering Herd
Have animal spirits gone too far? Optimism keeps the market's machine turning, but excesses are dangerous. The excitement over Donald Trump's election sparked a massive reaction in risk assets, aiding the US and damaging anything tied to the countries that stand to lose the most. It's hard to disagree that US assets will do better compared to the rest of the world under Trump 2.0 than they would have done under a Democratic alternative. The question is whether the sentiment has gone too far. As others (for example, the New York Times) point out, Wall Street wants to accentuate the positive, assuming that the administration will go through with the policies it likes (tax cuts and deregulation) but not the ones it doesn't (tariffs and ending the Fed's independence). There is also extreme excitement about investments with an obvious personal tie to Trump and his closest associates. Note how these suddenly exploded into action after Election Day:
/jlne.ws/4ghta8X
****** People can disagree about what is smart and what is dumb. On Wall Street, sometimes it seems like anything that makes money is smart. Meanwhile, I believe one's actions need to be judged against virtues underpinning the establishment of the markets.~JJL
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Tuesday's Top Three
Our top clicked item Tuesday was the GoFundMe page supporting Tony Perez's battle with ALS, organized by Friends of Tony Perez. FIA President and CEO Walt Lukken is organizing a benefit event on January 16 at Pearl Street Warehouse in Washington, DC to raise funds to pay Perez's medical bills. Second was the Security Traders Association's (STAC) member spotlight page on Paul Jiganti, managing director at IMC Financial Markets. Jiganti will be retiring from that position at the end of December. Third was Nicolas Jegou's announcement on LinkedIn that Euronext FX's ADV in 2024 increased by 20% compared to 2023, "more than double the growth of the four other anonymous platforms that publish their volumes." Jegou thanked Euronext FX's clients for their support.
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| Lead Stories | Nigeria arrests nearly 800 in crypto-romance scam that targeted Americans, Europeans
Reuters via NY Post
Nigeria's anti-graft agency said it had arrested 792 suspects in a raid on a building believed to be a hub for fraudsters who lured victims with offers of romance, then pressed them to hand over cash for phony cryptocurrency investments. The suspects, including 148 Chinese and 40 Filipino nationals, were detained on Dec. 10 at the seven-story Big Leaf Building in Lagos, Nigeria's commercial capital, Economic and Financial Crimes Commission spokesperson Wilson Uwujaren said. The luxury building housed a call center mostly targeting victims from the Americas and Europe, he added.
/jlne.ws/3PmUZ3T
Insider trading can be legal, FCA says; ...and private-market bagholders only have themselves to blame
Bryce Elder - Financial Times
According to Ganesha, the Indian Express's resident astrologist, here's today's horoscope for Pisces: While your earnings may not see a significant boost today, you'll also avoid unnecessary expenses. Ganesha predicts a balanced day where you manage to maintain your financial equilibrium without any losses. Only some of that applies to Pisces, the FCA's proposed platform for trading shares in private companies. Expenses are being avoided, though financial equilibrium won't be easy to maintain. Here's the FT story on Pisces, the press release, the consultation paper and the draft statutory instrument.
/jlne.ws/3VGDY8f
Bill Pulte Pushes for Virtu Sale, Prompting CEO to Fire Back
Katherine Doherty and Patrick Clark - Bloomberg
Bill Pulte is arguing for the sale of market maker Virtu Financial, contending its chief executive officer, Doug Cifu, spends more time tweeting than focusing on his business. Cifu isn't "focused on building a materially bigger business and spends precious time tweeting on items not related to the core operations of the company," Pulte, chairman of activist investor Pulte Family Office, said Tuesday in a statement. "As such, it now makes sense to put the Company in the hands of professional owners."
/jlne.ws/49KPpRT
Brazil Traders 'Sell First, Ask Later' as Panic Sweeps Markets; Currency selloff spreads to stocks, bonds and default swaps; Sentiment sours as deficit concerns outweighs economic growth
Giovanna Bellotti Azevedo, Vinicius Andrade, and Ezra Fieser - Bloomberg
First it was a collapse in the currency. Now the rest of Brazil's financial markets are in the cross-hairs as investors lose faith in the government's ability to contain a deepening fiscal crisis. The selloff that sent the real plunging to a record low is engulfing everything from stocks to local-currency debt to dollar bonds, with traders even piling into hedges against a sovereign default. Market watchers say extraordinary measures on Tuesday by the central bank to stem the currency's slide are little more than a temporary fix, and warn that signs the nation's congress may water down a high-profile austerity package are likely to only add to the turmoil.
/jlne.ws/3BBd4aY
Billionaire Paul Singer's Succession Plan Is Under a Spotlight; The hedge fund's increasing heft is making it harder to pitch smaller deals. That raises questions about the role of its London office - and the contest to ultimately succeed Paul Singer.
Swetha Gopinath, Nishant Kumar, Katherine Burton, Dinesh Nair, and Eyk Henning - Bloomberg
At Elliott Investment Management's yearly shindig in London this month, Gordon Singer's speech went big on the beauty of teamwork. Amid the National Gallery's historic artwork, the football-mad son of the firm's billionaire founder praised the virtues of people playing together. His own team, however, has suffered an exodus of talent lately. Singer runs the $70 billion activist investor's London office, and its second-most senior staffer has just jumped ship for another hedge fund behemoth, Citadel. It was only early this year that Nabeel Bhanji was handed the rare honor of becoming a full equity partner in Elliott.
/jlne.ws/3P1bfY4
Credit Agricole Picks Olivier Gavalda to Replace CEO Brassac; Brassac stepping down after 10 years at the French lender; Firm considered internal candidates given complex structure
Claudia Cohen - Bloomberg
Credit Agricole SA appointed Olivier Gavalda to replace Chief Executive Officer Philippe Brassac. Gavalda will start after a general shareholders' meeting on May 14, the French lender said in a statement Tuesday. "The transition within the general management of Credit Agricole SA will be organized in the coming months," the firm said in the statement.
/jlne.ws/49PVm0c
Japan Brokerage Lobby Says Scandals Show Sector May Be Too Lax
Takashi Nakamichi and Nao Sano - Bloomberg
The head of a body representing Japanese brokerages warned Nomura Holdings Inc. and other member companies against complacency, saying a slew of scandals this year could shake public confidence in the industry. "Those acts have raised questions whether there was a sense of arrogance or laxness or naive thinking among some people," said Toshio Morita, chairman of Japan Securities Dealers Association. "They can undermine trust in our business."
/jlne.ws/4iISare
Is Elon Musk a National Security Risk? Federal agencies are reviewing whether the tech mogul and ally of Donald Trump complied with disclosure rules meant to protect states secrets.
Andrew Ross Sorkin, Ravi Mattu, Bernhard Warner, Sarah Kessler, Michael J. de la Merced, Lauren Hirsch, Cade Metz, Theodore Schleifer and Benjamin Weiser - The New York Times Dealbook
Even before becoming "first buddy" to President-elect Donald Trump, Elon Musk wielded significant influence in government, thanks to SpaceX. But The Times reports that the tech mogul is facing scrutiny over his activities at the rocket company - all of which may dissipate once Trump takes office. Federal agencies are reviewing Musk's failure to comply with security clearance rules, The Times reports. Holders of top national security credentials must submit information about foreign travel and aspects of their personal lives, including drug use, to ensure they aren't at risk of disclosing state secrets.
/jlne.ws/4fmMQqv
Sam Altman-led nuclear start-up signs major AI power supply deal; Contract is the latest between energy developers and technology industry amid soaring demand
Jamie Smyth - Financial Times
Oklo, a nuclear energy start-up chaired by Open AI's Sam Altman, has struck a major corporate power supply deal as the industry rushes to meet the surging needs of artificial intelligence. The 20-year agreement with Switch Inc, a large privately held data centre operator, is to build reactors with a total capacity of up to 12 gigawatts - enough in total to power all 7.6mn households in New York state. Oklo claimed the agreement was among the largest clean power deals in history, even though it is non-binding and the company's technology is years from production.
/jlne.ws/3BAl2RC
Never ever make predictions; Especially about interest rates
Robin Wigglesworth - Financial Times
Judging by his latest "diary of a quant", Man AHL's Russell Korgaonkar is as exhausted by the end-of-year investment outlook blizzard as we are. And as he points out, strategists aren't, umm, great at predicting the future. Man AHL has long been very hot for the idea that volatility is actually the best way to predict the near future and dial up and down your exposure accordingly. It's the main (self-serving) point of Korgaonkar's post.
/jlne.ws/49LpJVh
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Moscow arrests suspect in general's killing; FSB says Uzbek suspect was offered $100,000 and safe passage to an EU country
Max Seddon in Berlin - Financial Times
A suspect has been arrested on suspicion of assassinating top Russian general Igor Kirillov, who died alongside his assistant when a bomb planted on a scooter exploded outside his house in Moscow on Tuesday. The FSB, Russia's main security agency, said on Wednesday it had arrested an Uzbek man who had placed the bomb on the scooter, then detonated it remotely. It added that the suspect had placed a camera in a rented car to film the bombing.
/jlne.ws/3DkfRpw
The vast spy agency behind Russian general's death; Latest strike in shadow war with Moscow led by SBU, which emerged from Soviet Union's KGB
Christopher Miller in Kyiv and Max Seddon in Berlin - Financial Times
The scooter would not have seemed out of place parked outside an apartment block in Moscow, where the electronic two-wheelers are a regular mode of transport for many of the Russian capital's 13mn residents. But this one - a key element of an elaborate and lethal operation - carried something other than a rider: an explosive device fixed with between 100 and 300 grammes of TNT, according to Russian investigators.
/jlne.ws/49NDW47
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Far-right Israeli minister attacks Gaza ceasefire proposal as 'surrender deal'; Bezalel Smotrich and ultranationalists in cabinet criticise renewed push for an agreement
Neri Zilber in Tel Aviv - Financial Times
Israel's far-right finance minister has publicly rejected granting any concessions to Hamas in a ceasefire deal as officials expressed optimism that the warring parties were edging closer to an agreement that would pause fighting and secure the release of hostages from Gaza. Israeli negotiators held talks with mediators in Doha this week, with US National Security Council spokesperson John Kirby saying on Monday that the pair were "getting closer" to a deal before US president-elect Donald Trump takes office in January.
/jlne.ws/3DmV1Ww
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | LSEG announces launch of Historical Analytics available through Snowflake
Maria Nikolova - FX News Group
London Stock Exchange Group (LSEG) today announced the launch of Historical Analytics available through Snowflake. The Historical Analytics offering combines LSEG's Pricing Services with Yield Book Analytics to provide pricing information for over 2.9 million bonds with over 20 years lookback. LSEG customers will be able to access the Historical Analytics offering via Snowflake which as a delivery channel offers LSEG customers flexibility in accessing the solution. This allows customers to move away from multiple services to one fully integrated powerful analytics service.
/jlne.ws/3OZmyQz
Cox registers a new 50 million Green Commercial Paper Programme in MARF
BME-X
Cox, through its parent company Cox ABG Group, has registered a new Green Commercial Paper Programme on the Spanish fixed income market of BME, MARF, for an amount of EUR50 million. The issues to be made under the programme will have unit denominations of EUR 100,000 and maturities of up to 2 years. The notes to be issued under this programme will qualify as a green instruments under the "Cox ABG Group Green Funding Framework 2024", under which the company may issue bonds and CPs in accordance with the International Capital Markets Association's (ICMA) Green Bond Principles (GBPs). To this end, on 30 July, it obtained an expert opinion, Second Party Opinion, issued by SERFIEX, confirming that the Green Funding Framework is aligned with the four core principles that make up the GBPs.
/jlne.ws/4gGK4xn
BME successfully completes its participation in the ECB's experimentation program for the settlement of payment transactions using digital tokens
BME-X
BME has successfully completed the initiative it is leading in relation to the Eurosystem's experimentation program for the settlement of payment transactions using digital tokens issued by the European Central Bank (ECB). BME's proposal was admitted last June 21 within the set of additional initiatives that the ECB's Governing Council added in a second wave, for the settlement of transactions in central bank money, as part of the experimentation program that it maintains during 2024. The proposal made by BME made it possible to evaluate the integration of digital tokens (wholesale central bank digital currencies or wCDBC) during the different phases of the life cycle of a digital bond. This initiative was supported by 10 large custodians, including CaixaBank, Cecabank, CACEIS Bank Spain, Kutxabank Investment, Banco Sabadell, Renta 4 Banco, BNP Paribas, Société Générale, Unicaja and Banco Cooperativo Espanol.
/jlne.ws/3BBuq7w
Test Environment Upgrade
FEX
FEX Global (FGL) will be upgrading its external test environment over the Christmas/New Year period of 2024/2025. The test environment will be unavailable whilst this upgrade is implemented and fully tested. FGL has determined that this upgrade will commence implementation on Monday 23rd December 2024. At this time it is expected that the test environment may be unavailable for a period of up to 3-6 weeks. The availability of the upgraded test environment will be published after testing has commenced.
/jlne.ws/3ZFTT84
HKEX's Core Climate Provides Carbon Credits Settlement Services for Cathay Pacific Airways
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Wednesday) that Cathay Pacific Airways Limited (Cathay Pacific), a leading Hong Kong-based carrier, has successfully settled a total of 50,000 tonnes of carbon credits as part of their voluntary carbon offset programme on HKEX's Core Climate carbon marketplace. The transaction underscores Core Climate's ongoing commitment to supporting corporates on their climate transition journey.
/jlne.ws/3DxzxGn
HKEX Offers Enhanced Data Products Experience With Launch of HKEX Data Marketplace
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Wednesday) the launch of the HKEX Data Marketplace, a web-based platform that offers data users a more intuitive experience in accessing HKEX's historical and reference data. The new platform will feature a modern user interface with multiple data delivery channels including cloud transfer, providing data directly from HKEX to offer optimal user experience and convenience. In its initial stage, the HKEX Data Marketplace will offer shareholding data from the Central Clearing and Settlement System (CCASS) for commercial use, as well as historical full book data from HKEX's securities and derivatives markets, and securities market daily non-trading reference data.
/jlne.ws/3VN8iOn
LSEG announces the launch of Historical Analytics available through Snowflake
LSEG
LSEG customers will have additional flexibility in generating analytics for over 2.9 million fixed income securities with over 20 years lookback. London Stock Exchange Group (LSEG) announces the launch of Historical Analytics available through Snowflake. The Historical Analytics offering combines LSEG's Pricing Services with Yield Book Analytics to provide pricing information for over 2.9 million bonds with over 20 years lookback. LSEG customers will be able to access the Historical Analytics offering via Snowflake which as a delivery channel offers LSEG customers flexibility in accessing the solution. This allows customers to move away from multiple services to one fully integrated powerful analytics service. By enabling our customers to access this via the Snowflake cloud infrastructure we are ensuring customers can access the analytics they need, in a way that suits them best.
/jlne.ws/4iISKFh
The Lion Electric Company (LEV)
TMX
Bourse de Montreal (the ''Bourse'') and CDCC wish to inform you that the Toronto Stock Exchange announced on December 17, 2024, that the common shares of The Lion Electric Company ("Lion Electric") are suspended. The trading of Lion Electric options at the Bourse is suspended at the present time. The Auto-Exercise function will not be available for Lion Electric. Manual exercises only are permitted and must be processed manually by the member firm. If a decision to exercise is taken, holders of the Put options will need to make provisions to be able to deliver the stock.
/jlne.ws/4gDARpA
NGX-ASI crosses 100,000 points as Santa rally continues
NGX
As stock buyers continue their activities on the Nigerian Exchange Limited (NGX) ahead of Christmas, the market rose further on Tuesday by 0.13 percent, pushing the benchmark performance index above 100,000 points. With investor interest skewed towards select key names in the market, Vetiva research analysts had anticipated a mixed session in Tuesday's market "as investor pursuit of value persists".
/jlne.ws/3W8xtvh
OCC Stories: Rita Varghese on the Anatomy of a High-Performing Team
OCC
Rita Varghese is part of the Market Operations team supporting OCC's participant exchanges. In her OCC story, she describes how our transparent and collaborative culture enables her high-performing team to deliver world-class customer service. Read it below!
/jlne.ws/3DnPnn9
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | U.S. Weighs Ban on Chinese-Made Router in Millions of American Homes; TP-Link is the bestselling router on Amazon-and has been linked to Chinese cyberattacks
Heather Somerville, Dustin Volz and Aruna Viswanatha - The Wall Street Journal
U.S. authorities are investigating whether a Chinese company whose popular home-internet routers have been linked to cyberattacks poses a national-security risk and are considering banning the devices. The router-manufacturer TP-Link, established in China, has roughly 65% of the U.S. market for routers for homes and small businesses. It is also the top choice on Amazon.com, and powers internet communications for the Defense Department and other federal government agencies.
/jlne.ws/4fmpAJb
Liquidnet Announces Record Growth In Asia Pacific And Expansion Into New Markets - 2024 Milestones Include Record $40 Million Block Trade In Hong Kong And Successful Rollout Of Its VWAP Cross Solution In Three Additional Markets
Liquidnet via Mondovisione
Liquidnet, a leading technology-driven agency execution specialist, today announced a record-breaking year for its VWAP Cross solution, achieving a 75% year-over-year increase in daily principal traded, and strategic expansion into the Philippines, reinforcing its commitment to innovation and market leadership across Asia Pacific. Launched in 2022 in Hong Kong, Japan, and Australia, and in Indonesia in 2023, VWAP Cross is designed to facilitate block size orders at the full day VWAP price prior to market open, allowing traders to reduce market impact and improve VWAP performance. Since its introduction, the solution has steadily gained traction with year-over-year growth, underscoring its robust performance and strong market adoption.
/jlne.ws/4fr3TrA
Meta's Irish Arm Fined EUR251 Million by Watchdog Over Data Breach
Olivia Fletcher - Bloomberg
Ireland's data protection commission fined Meta Platforms Inc.'s Irish arm EUR251 million ($264 million) following two inquiries into a personal data breach that it said impacted 29 million users worldwide. The breach was reported by Meta Platforms Ireland Limited in September 2018. It impacted data including full names, email addresses, phone numbers, posts on time lines and groups of which the user was a member, according to a statement by the watchdog Tuesday. Approximately three million of the users impacted were based in the European Union and European Economic Area, the statement added.
/jlne.ws/4gDIzjy
Microsoft acquires twice as many Nvidia AI chips as tech rivals; OpenAI's biggest backer buys nearly half a million GPUs this year in race to build artificial intelligence systems
Tim Bradshaw and Stephen Morris in London - Financial Times
Microsoft bought twice as many of Nvidia's flagship chips as any of its largest rivals in the US and China this year, as OpenAI's biggest investor accelerated its investment in artificial intelligence infrastructure. Analysts at Omdia, a technology consultancy, estimate that Microsoft bought 485,000 of Nvidia's "Hopper" chips this year. That put Microsoft far ahead of Nvidia's next biggest US customer Meta, which bought 224,000 Hopper chips, as well as its cloud computing rivals Amazon and Google.
/jlne.ws/3VN7lWj
Nvidia's Blackwell chip could push the company into a new stratosphere as the AI revolution continues
Julie Hyman - Yahoo Finance
Nvidia stock (NVDA) is on pace for a comfortable triple-digit percentage gain again in 2024, after a nearly 240% surge in 2023. This year's rise is due in no small part to a product that wasn't even shipped until the last quarter of the year - Blackwell. It's the largest GPU (graphics processing unit) ever built, created by connecting two dies via a high bandwidth interface (HBI). In layperson's terms, that translates to a lot of power at high efficiency, which is why it's been in such demand from the so-called hyperscalers - companies like Alphabet (GOOG) and Microsoft (MSFT) that are building out huge data centers to power large language models (LLMs).
/jlne.ws/4iG6tfY
AI startup Basis raises $34 million for accounting automation 'agent'
Anna Tong - Reuters
Artificial intelligence startup Basis has raised $34 million in a Series A funding round for its AI-powered accounting automation product, the company said on Tuesday. The round was led by Khosla Ventures. Other investors included NFDG, the AI-focused fund run by former GitHub CEO Nat Friedman and former Apple executive Daniel Gross, OpenAI board members Larry Summers and Adam D'Angelo, and Google's chief scientist Jeff Dean.
/jlne.ws/3By0Gsm
AI Startup SandboxAQ Raises Funds at Over $5.6 Billion Valuation; Former Alphabet division focuses on quantum and AI tech; CEO Jack Hidary staffing up with more Ph.D.s and engineers
Gillian Tan and Jane Lanhee Lee - Bloomberg
SandboxAQ has raised over $300 million at a valuation of more than $5.6 billion, which will help the startup recruit more engineers for an effort to apply quantum technology and techniques to AI development.
/jlne.ws/4fpdpLy
Chinese AI Unicorn Zhipu Raises $412 Million for More Firepower
Bloomberg News
Beijing-based Zhipu raised a further 3 billion yuan ($412 million) to power its artificial intelligence development efforts. The company, which last year drew the backing of Chinese internet leaders Alibaba Group Holding Ltd. and Tencent Holdings Ltd., announced the completion of its latest fundraising in a statement on Tuesday. It comes as Zhipu has more than doubled its commercial revenue this year, according to the statement.
/jlne.ws/3P0Hqqn
Microsoft's Sarah Bird: Core pieces are still missing from artificial general intelligence; Chief product officer of 'responsible AI' says the focus needs to be on augmenting - not replicating - human capabilities
Cristina Criddle - Financial Times
/jlne.ws/4gk5PDu
India's Yotta Data Seeks $500 Million Private Credit to Expand; The firm in talks with global funds including Oaktree Capital Proceeds to fund expansion into artificial intelligence space
Saikat Das - Bloomberg
/jlne.ws/3BMCZMO
Tradeweb appoints global markets co-heads amid 'substantial' recent growth; Enrico Bruni and Troy Dixon will jointly lead the division in the newly created roles as of next month.
Claudia Preece - The Trade
/jlne.ws/3DiQPXZ
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| Cybersecurity | | Top stories for cybersecurity | How To Bridge The Gap Between IT And Business Leaders In Cybersecurity
Steve Gickling - Forbes
Cybersecurity management isn't a responsibility retained in the IT department. Cybersecurity is every team member's responsibility as it impacts the entire organization. While team members aren't yearning for yet another training module to complete, aligning cybersecurity priorities with the business is critical. IT colleagues may focus on technical aspects of cybersecurity, but leaders must understand how cybersecurity impacts their departments.
/jlne.ws/49IzxiR
Top 10 Cybersecurity Predictions for 2025
Kristian McCann - Cyber Magazine
Knowing where cyber trends are heading can give enterprises the edge in understanding where to focus their attention. As we approach the dawn of 2025, the cybersecurity landscape stands at a critical inflection point, where technological innovation and digital threats converge with unprecedented complexity.
/jlne.ws/3P50Kmx
Cybersecurity vendors enter their AI brain era
Sam Sabin - Axios
Trend Micro, a major cybersecurity vendor, has been quietly rolling out a new "AI brain" that gives customers the ability to automate their threat defenses. Why it matters: For years, cybersecurity vendors have promised that AI-enabled tools would one day help companies predict attacks and automatically patch new security flaws.
/jlne.ws/4gqbOa0
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| Cryptocurrencies | | Top stories for cryptocurrencies | Bitcoin Sets Another All-Time High in Climb Toward $110,000; Original cryptocurrency has surged more than 150% this year; US 'election dividend' is driving demand, Butterfill says
Monique Mulima and Muyao Shen - Bloomberg
Bitcoin reached an all-time high for a second consecutive day, with traders eyeing the $110,000 price level. The original cryptocurrency rose as much as 2.1% to $108,315 on Tuesday, before retreating back to its price at the start of the day around $106,000. It has surged more than 150% this year, and traders are increasing bets for further gains in the options market.
/jlne.ws/41E6pau
Bitcoin Rally Leaves the World's Original Crypto ETFs Behind; Canadian Bitcoin ETFs have seen net outflows so far this year
Monique Mulima - Bloomberg
In what's been a record-breaking year for Bitcoin, the originators of the world's first exchange-traded funds to hold the cryptocurrency appear to be at risk of being left behind. Bitcoin ETFs were launched in Canada in February 2021, making them the first in the world. This led to billions of dollars of inflows from Canadian and foreign investors who wanted exposure to the original digital currency. But when US Bitcoin ETFs were approved earlier this year, some investors began to reconsider their Canadian crypto investments.
/jlne.ws/4gxcWrU
MicroStrategy's Nasdaq Entry Kicks Off New Era of Momentum Risk; Much-coveted inclusion adds new fuel to the crypto mania; Price-agnostic index flows can be damaging when momentum turns
Lu Wang and Isabelle Lee - Bloomberg
MicroStrategy Inc.'s entry into the Nasdaq 100 opens up the largest corporate holder of Bitcoin to a new - and untapped - investor: the index-tracking juggernauts. Yet Wall Street pros warn the oncoming march of these price-insensitive investors threatens a new source of vulnerability in a stock that has soared more than 500% this year on booming demand from retail investors, as well as hedge funds capitalizing on its volatility.
/jlne.ws/49KgFAb
Crime's Plunge and Bitcoin's Boom Still Leave El Salvador Chasing Economic Miracle; El Salvador's Bitcoin holdings soared with Donald Trump's election victory. The President-elect's migration stance may be more problematic for his ally Bukele's economic plans.
Matthew Bristow - Bloomberg
The gang members who used to prey on the coffee growers of the Balsamo mountain range are all gone - jailed, shot dead, or on the run under the security crackdown that made El Salvador's Nayib Bukele among the world's most popular leaders. With the gangs dismantled and their extortion rackets no more, a huge obstacle to development has been lifted, and the farmers of the region's rich volcanic soil should be cashing in on a 75% rise in the world coffee price this year. But it's not working out like that.
/jlne.ws/4gfkfVk
The TRADE predictions series 2025: The future of cryptocurrency; Market commentators from R3, 4OTC, and Devexperts give their insights into how the cryptocurrency situation is set to play out, touching on regulatory decisions still to come, where the key challenges are, and of course the relevance of the recent US election result.
Editors - The Trade
Kate Karimson, chief commercial officer, R3: Next year is set to be the year of public and private collaboration for the blockchain industry, with US elections bringing greater confidence in some areas and uncertainty in others. Turning tides means the US crypto landscape is likely to look significantly different by the end of 2025. Republican control of the White House and Congress should enable much anticipated legislation, clarifying the role of regulating agencies and providing confidence, with industry innovation being supported. While DLT is still gaining traction in US financial markets, having been constrained by regulatory uncertainty, an established regulatory framework will drive tailwinds.
/jlne.ws/4gCsDxZ
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| Politics | | An overview of politics as it relates to the financial markets | Trump Will Nominate Herschel Walker as Ambassador to Bahamas
John Harney - Bloomberg
President-elect Donald Trump said he would nominate former football star Herschel Walker as his ambassador to the Bahamas. Trump, who made the announcement Tuesday night on his Truth Social platform, praised Walker for "being a tireless advocate" for youth sports and for his travels to military bases in efforts to remove "the stigma surrounding mental health." In a 2008 memoir, Walker, who rose to fame in the early 1980s as a running back with the University of Georgia Bulldogs, discussed his mental health struggles.
/jlne.ws/41F6Mlb
Trump Pledged to Cut Taxes for Expats. This Republican Wants to Make It a Reality; New plan would let Americans abroad choose to join residence-based tax system
Richard Rubin - The Wall Street Journal
A new proposal in Congress attempts to put meat on one of President-elect Donald Trump's campaign-trail tax promises, detailing how the U.S. could remove income taxes on Americans living abroad. Rep. Darin LaHood (R., Ill.) would let expatriates pay income taxes only where they live, removing a requirement that U.S. citizens living anywhere owe U.S. taxes on their worldwide income. LaHood, who is introducing the proposal Wednesday, hopes it could be included in broader tax legislation that Congress is likely to pass in 2025.
/jlne.ws/3ZGJgBN
'What choice do they have?': America's CEOs bend the knee to Donald Trump; Even the president-elect's corporate opponents are rushing to embrace him at Mar-a-Lago
James Politi in Washington and James Fontanella-Khan in New York - Financial Times
Ted Sarandos, the 60-year-old chief executive of Netflix, has been a prominent Democratic donor for years. But on Tuesday, he became the latest senior figure in corporate America to step into Donald Trump's Mar-a-Lago resort to pay tribute to the Republican president-elect and build relations with his incoming administration. From Hollywood to Silicon Valley and Wall Street, senior executives have been bending over backwards to meet Trump since he won the presidential election against Kamala Harris in early November.
/jlne.ws/4iJK6Gs
Economics can't explain all the anger of voters; If it did, the US should have much healthier politics than Europe
Janan Ganesh - Financial Times
Except for the most tiresome pedants, who celebrated the millennium on January 1 2001 rather than 2000, we are nearing the quarter-point of our century. What are the surprises so far? What would people have found hard to believe 25 years ago? That Russia, which struggled to pay its pensioners back then, would become a revanchist war machine. That Islamist terrorism would announce itself one September morning as a force that would dog the rest of our lives, and then largely fail to do so.
/jlne.ws/4fnA8rG
China's 'magic weapon' helping Beijing wield influence in the UK; United Front Work Department has payroll of thousands aiming to win support for Communist party's agenda
James Kynge and Joe Leahy - Financial Times
Tengbo Yang, a Chinese man who became a confidant of the UK's Prince Andrew, allegedly worked for a senior part of China's hierarchy that Beijing calls "its magic weapon". But this week in London, that weapon spectacularly backfired. While the United Front Work Department, where UK intelligence agency MI5 alleges Yang worked, is regarded by Beijing as officially distinct from its espionage agencies, its overseas operations aim to win influence for China by using various methods - some open, some shadowy - to befriend and inveigle senior figures to serve its cause, analysts say. Yang, a 50-year-old Chinese national banned from entering the UK on security grounds, was publicly named on Tuesday after a British judge lifted an anonymity order.
/jlne.ws/3ZIT3qZ
Why Europe Can't Seem to Kick Its Russian Energy Habit
Elena Mazneva and Anna Shiryaevskaya - Bloomberg
Three years ago, Russia was the world's biggest exporter of natural gas and Europe was its top customer. For the continent's leaders, access to all that cheap Russian energy outweighed any misgivings over doing business with President Vladimir Putin. Then Russia launched its full-scale invasion of Ukraine, and this overwhelming reliance on a single supplier suddenly looked like a threat to the region's economic and political security.
/jlne.ws/41GHH9M
Denmark Warns Russia May Send Warships to Escort Oil Tankers; Threats against Denmark have become more serious, agency says; Group of European nations plans checks of Russian tankers
Sanne Wass - Bloomberg
Denmark warned that Russia's navy may start escorting the so-called shadow fleet tankers through Danish straits to escalate provocations against NATO countries. Threats against Denmark have become "more serious," and Russia now has more options to challenge North Atlantic Treaty Organization's members with "a more threatening military behavior," the Danish Defense Intelligence Service said in its annual security outlook on Wednesday.
/jlne.ws/41EHH9W
Milei Says Trump Backs Argentina's Free-Market Makeover; Argentine leader is coming off strong first year in office after implementing painful spending cuts to reduce world's highest inflation rate
Ryan Dube - The Wall Street Journal
/jlne.ws/4gHWrJs
Domino Theory of Norms Spells Doom for US Politics; The shocking public reaction to the murder of a health care CEO is the latest sign of how fragile norms in America have become. Break one, and others start to crack.
Clive Crook - Bloomberg Opinion
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| Regulation & Enforcement | | Stories about regulation and the law. | Korea Fines Barclays, Citi for Naked Short Selling: Chosun
John Cheng and Youkyung Lee - Bloomberg
South Korea has fined Barclays Plc and Citigroup Inc. for naked short selling, Chosun Ilbo newspaper reported, as the nation ramps up its fight against such illegal trading practices. Barclays and Citi were fined 13.7 billion won ($9.5 million) and 4.7 billion won, respectively, by the Securities and Futures Commission, according to the report which didn't say where it obtained the information.
/jlne.ws/4gFdv2V
Australia takes Binance unit to court over consumer protection failures
Reuters
Australia's corporate watchdog said on Wednesday that it has sued the local derivatives business of cryptocurrency exchange Binance, alleging that its retail customers were denied consumer protections after being misclassified as wholesale clients. The Australian Securities and Investment Commission (ASIC) alleged that the unit offered crypto derivative products to 505 retail investors, about 83% of its local clientele, who were misclassified as wholesale clients between July 2022 and April 2023.
/jlne.ws/3P1DA0o
U.S. Treasury warns Hong Kong banks on Russia ahead of Trump's return; Visit follows bipartisan call to address city's alleged role in sanctions evasion
Echo Wong, Pak Yiu - Nikkei
A senior U.S. Treasury official this month met with Hong Kong financial institutions to warn them against doing business with Russia, acting on a recent letter from Congress and coming just weeks ahead of Washington's presidential transition. Jesse Baker, the Treasury's deputy assistant secretary for Asia and the Middle East in the Office of Terrorist Financing and Financial Crimes, held a meeting last week in Hong Kong with several banks, according to three sources who declined to be named due to the sensitivity of the talks. The meeting was on Dec. 11 and included HSBC, Standard Chartered and Bank of China (Hong Kong), one person said. Baker asked the banks not to facilitate any Russian deals, as the U.S. seeks to tighten up enforcement of sanctions on Moscow over its invasion of Ukraine. Representatives from the Hong Kong Monetary Authority were present, added the source.
/jlne.ws/3DmlKCJ
Giving Pledge Group, Led by Gates and Buffett, Removes Billionaire Accused of Fraud; Arif Naqvi, founder of the Abraaj Group, a Dubai-based private equity firm that collapsed in 2018, was indicted by U.S. prosecutors in 2019.
Theodore Schleifer - The New York Times Dealbook
A former private-equity tycoon in the Middle East has been ousted from the high-profile philanthropy group made up of some of the world's wealthiest people. The group, the Giving Pledge, a network of charitable donors tied to the Bill and Melinda Gates Foundation, quietly cut ties with Arif Naqvi, the founder of the Abraaj Group, a private equity firm that has been accused of widespread fraud, said a spokesperson for the Giving Pledge. Mr. Naqvi, 64, is only the third person to be forcibly removed from the group of philanthropists, which has been one of the most venerated collections of wealth holders across the globe.
/jlne.ws/3Dyqipm
Elon Musk and SpaceX Face Federal Reviews After Violations of Security Reporting Rules; Federal agencies have opened at least three reviews into whether the company and its leader complied with disclosure protocols intended to protect state secrets, people with knowledge of the matter said.
Kirsten Grind, Eric Lipton and Sheera Frenkel - The New York Times
Elon Musk and his rocket company, SpaceX, have repeatedly failed to comply with federal reporting protocols aimed at protecting state secrets, including by not providing some details of his meetings with foreign leaders, according to people with knowledge of the company and internal documents.
/jlne.ws/4iLomKD
CFTC Approves Final Rule Regarding Safeguarding and Investment of Customer Funds
CFTC
The Commodity Futures Trading Commission today announced it approved a final rule amending the CFTC's regulations that govern how futures commission merchants and derivatives clearing organizations safeguard and invest customer funds held for the benefit of customers engaging in futures, foreign futures, and cleared swaps transactions.
/jlne.ws/4gGG8wB
Cancelled - December 18 Commission Open Meeting
CFTC
The Commodity Futures Trading Commission Open Meeting scheduled for Wednesday, Dec. 18 has been cancelled. The matters under consideration will be completed through the Commission's seriatim process.
/jlne.ws/49KTllL
CFTC Grants QC Clearing LLC DCO Registration
CFTC
The Commodity Futures Trading Commission today announced it has issued QC Clearing LLC an Order of Registration as a derivatives clearing organization under the Commodity Exchange Act.
/jlne.ws/4gIxKfV
SEC Charges Express, Inc. with Failing to Disclose Nearly $1 Million in Perks Provided to Former CEO; Commission declines to impose a penalty based on company's self-report, cooperation, and remediation
SEC
The Securities and Exchange Commission today announced settled charges against Ohio-based Express, Inc., a multi-brand American fashion retailer, for failing to disclose executive compensation it paid to its now former CEO.
/jlne.ws/3ZWUDHc
Fraud Based on Non-Existent Process for Redeeming Bonds Issued by the German Weimar Republic and Pre-Revolutionary China and Russia
SEC
The Securities and Exchange Commission on December 13, 2024 filed charges against eight defendants for their roles in connection with the fraudulent offer and resale of historical bonds issued by the German Weimar Republic and pre-revolutionary China and Russia and the fraudulent and unregistered offer and sale of securities whose value was tied to such bonds. The defendants are Historic Asset Placement Services Global, LLC (HAPS) and its day-to-day operations manager, Billy Abshier, both of Temple, Texas; HAPS' former managing member, Christoper W. Abshier, of Troy, Texas; Frederic (Fred) A. Gladle of Lakeway, Texas; Ronald Josh Pendley of Toluca Lake, California; Kevin E. Scannell of Santa Monica, California; and two entities Pendley and Scannell controlled, Sovereign Debt Solutions LP and its general partner, Ocean Park Partners, both located in Los Angeles, California. The complaint names as a relief defendant Barbara Gladle, the spouse of Fred Gladle.
/jlne.ws/3ZF2tDP
ASIC successfully defends Receivers' application for indemnity
ASIC
ASIC obtained orders on 21 October 2021 appointing receivers to, and an injunction against, A One Multi Services Pty Ltd (AOMS) which was suspected to be engaging in unlawful activity. The Court appointed receivers John Ross Lindholm and Timothy James Michael (who was subsequently replaced by William Colwell) (Receivers) to manage AOMS and to preserve any assets for the benefit of creditors, which included investors in AOMS.
/jlne.ws/3ZL4kXM
ASIC sues crypto company Binance Australia Derivatives for consumer protection failures
ASIC
More than 500 retail clients of Oztures Trading Pty Ltd, trading as Binance Australia Derivatives (Binance), were denied important consumer protections after being misclassified as wholesale clients, ASIC alleges in documents filed in the Federal Court. ASIC alleges from 7 July 2022 to 21 April 2023, Binance offered crypto derivative products to 505 Australian retail investors who were misclassified as wholesale clients, representing 83% of its Australian client base.
/jlne.ws/3P0hwmz
FMA censures Pathfinder for misleading representations
FMA
The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko - has censured Pathfinder Asset Management (Pathfinder) under the Financial Markets Conduct Act 2013 (FMCA). The FMA is satisfied that between October 2021 and May 2024, Pathfinder made misleading statements about the nature of its KiwiSaver Funds' ethical investments in two advertisements on social media and its website relating to animal testing and fossil fuels.
/jlne.ws/3ZXUd34
Publication of the "Monitoring Report for Improving Internal Audits of Financial Institutions (2024)"
FSA
Even after the publication of the "Current Situation and Issues for Improving Internal Audits of Financial Institutions" (hereinafter referred to as the "Current Situation and Issues") in June 2019, the Financial Services Agency (FSA) has continued to monitor financial institutions to improve their internal audits. In October last year, the FSA organized status of initiative and recognition of issues of internal audits in large banking groups, and published it as a progress report.
/jlne.ws/3PmMVQF
IOSCO's Growth and Emerging Markets Committee launches a dedicated Network to support its members in the adoption or other use of ISSB Standards in their local jurisdictions
IOSCO
IOSCO announced today the launch of a dedicated network to support the adoption and other use of IFRS Sustainability Disclosure Standards (ISSB Standards), with the support of the International Sustainability Standards Board (ISSB). The Network will start with a group of 32 IOSCO members of its Growth and Emerging Markets Committee (GEMC), representing 31 jurisdictions.
/jlne.ws/4gmpNxe
SFC licenses virtual asset trading platforms under swift licensing process
SFC
The Securities and Futures Commission (SFC) today granted licences to four virtual asset trading platform (VATP) applicants under its swift licensing process for handling deemed-to-be-licensed VATP applicants (deemed applicants) (Note 1). This came after the SFC completed risk-based on-site inspections on all deemed applicants following the introduction of its inspection programme in June this year (Note 2). As a licensing condition, they can operate on a restricted scope of business after completing their rectification actions in response to the SFC's on-site inspection feedback (Note 3). They are also required to perform a vulnerability assessment and a penetration test through an independent third party with satisfactory results.
/jlne.ws/4giwX5S
Clarification
SEBI
An article has been carried in a section of media suggesting that SEBI has prohibited FPIs from issuing Overseas Derivative Instruments (ODIs). This is incorrect. It is clarified that FPIs have only been barred from issuing ODIs with derivative instruments as the underlying. As on date, there are no ODIs with derivative instruments as the underlying. It is further clarified that ODIs referencing cash market securities can continue to be issued.
/jlne.ws/41EG8J6
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Liquidity risks in markets are not intractable; With today's big data tools, conditions can be anticipated and actively managed
Vincent Mortier - Financial Times (opinion)
The writer is group chief investment officer at Amundi
Financial markets promise to be one thing but often end up delivering something quite different. When an asset is listed on a stock market it should be tradable without a discount. Prices of securities appear in real time on terminals but they are only valid if you can trade at them. Increasingly, you often cannot. The villain of the piece? Liquidity. Or rather the lack of it when you need it most. We are seeing liquidity "shocks" that are more powerful than before, and sharper. Amundi research has found the impact of trading $50mn of an equity, where that trade is within 10 per cent of the daily volume, has been doubling during episodes of stress since 2021 and quadrupled on certain days during the Covid pandemic.
/jlne.ws/4iIPaLl
Michael Saylor Responds to Critics Who Call Microstrategy A Ponzi Scheme: 'Every time Manhattan Real Estate Goes Up..'
Mehab Qureshi - The Street
MicroStrategy's co-founder and executive chairman, Michael Saylor, pushed back against critics who label the company a "Ponzi scheme" for its strategy of issuing equity and debt to buy more Bitcoin as its price rises. "Every time Manhattan real estate goes up in value, they issue more debt to develop more real estate," Saylor said in an interview with CNBC on Dec. 16. "That's why your buildings are so tall in New York City. It's been going on for 350 years. I would call it an economy."
/jlne.ws/3Bwfd7V
US Exuberance Is Reaching Critical Levels; I've seen some glaringly obvious sentiment indicators in my time, but this is getting ridiculous.
John Stepek - Bloomberg
Inflation, American euphoria, and activism
It's getting very close to Christmas, and yet there's an awful lot still going on in the investment world and I think we need to cover it all. So think of today's Money Distilled as the equivalent of opening a massive festive tin of Quality Street, just to get you into practice for the big day. First, there's today's UK inflation figures. After the jolt that yesterday's stronger-than-expected wages data gave markets, today's broadly "as expected" figures were probably a bit of a relief.
/jlne.ws/4fj0sDa
Oil Traders Toasting Trump Are Split on What He Means for the Market; The US president-elect's support for tariffs raises concerns about a trade war eroding demand, while others welcome an injection of volatility.
Mia Gindis and Christopher Charleston - Bloomberg
The oil traders swarming Miami's South Beach for three days of holiday drinking, dining and schmoozing were mostly male, mostly White and mostly united in the belief that Donald Trump will champion the industry when he returns to the White House.
/jlne.ws/3BpAnVf
Will IPOs ever come back? Or are we entering a new era of privately-owned companies?
FT Podcast
The road to riches used to be paved with juicy IPOs. But that does not seem to be the case anymore. Today on the show, Katie Martin is joined by Craig Coben, a former global head of equity capital markets at Bank of America, and now a contributing writer for FT Alphaville. They discuss regulation and demand, and the growing role of private equity in corporate ownership. Also, they go short France and long melodic house music.
/jlne.ws/3BAp2BC
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Broadridge Collaboration with CCRI Expands ClearFi Platform, Adding Crypto Sustainability Data; Comprehensive solution for clients required to disclose sustainability metrics and generate whitepapers as per EU MiCA regulation
Broadridge
A new, pioneering collaboration between the Crypto Carbon Ratings Institute (CCRI), a leader in sustainability data on digital assets, and Broadridge Financial Solutions, Inc. (NYSE: BR) a global Fintech leader, will deliver an integrated communications, data, and disclosure generation platform to help companies operating in Europe, including exchanges, brokers and asset managers to meet new sustainability reporting requirements. This integration combines CCRI's trusted sustainability data with Broadridge's ClearFI digital asset information and disclosure platform, enabling financial services firms to demonstrate compliance with the European Union's (EU) Markets in Crypto-Assets (MiCA) regulations.
/jlne.ws/3P3ACIO
Can the US Power Industry Meet AI's Steep Energy Demands? Thanks to AI, data centers are popping up across the country. But the climate price for all this energy use is steep.
Will Wade and Josh Saul - Bloomberg
Delivering power to homes and companies is supposed to be a boring and predictable business. While it's true that the US population has been increasing and electrifying more things as it does, that growth in power use has been offset by energy savings as buildings, factories and appliances become more efficient. Indeed, electricity consumption in the US has changed little since the start of the 21st century. Until now.
/jlne.ws/3BARGT9
Thought ESG was hard to define? Try its antithesis; Investors who want to bet against progressive values have a few options, none straightforward
Lex - Financial Times
The ESG movement has always faced a definition problem. Investors, providers and regulators differ widely on what makes the "environmental, social and governance" grade. But if that debate seemed complex, the anti-ESG movement gives it a run for its money. Stock-pickers eager to bet against liberal or left-wing values have a few options. Exchange traded funds such as the God Bless America ETF and the America First ETF have sprung up to provide a counterweight to what their sponsors see as a blurring of the line between progressive politics and finance.
/jlne.ws/3DvUJwp
Altman-Backed Oklo Inks Deal for 12 Gigawatts of Nuclear Power; Oklo to supply nuclear power to Switch's data centers; Data centers are 'actually kind of perfect for new nuclear'
Will Wade - Bloomberg
Oklo Inc., a developer of advanced nuclear technology backed by billionaire Sam Altman, has agreed to supply as much as 12 gigawatts of electricity to data center operator Switch Inc. to help satisfy technology companies' booming demand for power.
/jlne.ws/3DpHnlG
AI poses threat to North American electricity grid, watchdog warns; Surging demand from tech sector could overwhelm generation capacity, report says
Myles McCormick - Financial Times
North America's electricity grid faces "critical reliability challenges" as power generation fails to keep pace with surging demand from artificial intelligence, the industry watchdog has warned. Soaring electricity consumption in the next decade, coupled with the closure of coal-fired plants, will place huge strain on US and Canadian grids, the North American Electric Reliability Corporation has found.
/jlne.ws/3DvJyE0
Biden administration casts fresh doubt on new US LNG expansion; Energy secretary says more gas projects would push up domestic prices and threaten climate goals
Myles McCormick in Austin and Jamie Smyth in New York - Financial Times
The future of America's natural gas export boom has been thrown into doubt after a federal government report found that unbridled expansion would hurt American consumers and global climate goals. A long-awaited Department of Energy study released on Tuesday said that the industry's continued rapid growth risked driving up domestic fuel prices, increasing greenhouse gas emissions and supporting China.
/jlne.ws/3ZHUw0T
ECB Pitches Plan to Boost Insurance Coverage for Climate Losses; Central bank and insurance authority warn of 'protection gap'; New proposal is linked to increasing flood losses in Europe
Gautam Naik - Bloomberg
The European Central Bank and the region's insurance authority proposed a two-pronged approach to increase insurance coverage for floods, storms and other weather disasters that are increasingly being fueled by climate change. One part of the plan is a voluntary public-private reinsurance mechanism that would pool private risks across the EU to help backstop weather-related losses. The second pillar would be to create a mandatory European Union fund to pay reconstruction costs when high-loss natural disasters occur.
/jlne.ws/41EIyra
Bill Gates-Backed Fund Bets $40 Million on Carbon Removal Firm Deep Sky; Startup is building a facility to test carbon-sucking machines; Grant brings funds raised by Deep Sky to C$130 million so far
Mathieu Dion - Bloomberg
/jlne.ws/4gkZ30j
Germany Asks EU to Ease Green Reporting Rules Amid Downturn; Changes needed to reduce burden on businesses, letter says; Greens' economy minister Habeck is among signatories
Michael Nienaber and Kamil Kowalcze - Bloomberg
/jlne.ws/400orTa
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | UniCredit lifts Commerzbank exposure to 28%; Italian bank escalates effort to take over German lender
Olaf Storbeck in Frankfurt, Simon Foy in London and Silvia Sciorilli Borrelli in Milan - Financial Times
UniCredit has raised its exposure to Commerzbank to 28 per cent, as the Italian lender escalated its pursuit of the German bank at the same time as going after domestic rival Banco BPM. The Italian bank said on Wednesday it had entered into new financial instruments relating to Commerzbank shares, after rapidly building a 21 per cent interest in the German lender in September.
/jlne.ws/3DkjqMB
BofA's Moynihan Hints That He's Just Getting Started; 15 Years In Longtime CEO is on track to become industry's senior statesman; That means tempered risk-taking to continue: 'Why change it?'
Katherine Doherty - Bloomberg
As he turned 65, Bank of America Corp.'s Brian Moynihan took the stage at a town hall meeting and sent a jolt through the crowd, saying he wants to still be CEO when the stock eclipses $100. The comment, delivered with a wry smile, turned heads not only because the share price is currently $45. It underscores how long the man on track to become the industry's senior statesman plans to savor his status.
/jlne.ws/3ZBR7R4
Boaz Weinstein Starts Campaign to Take Over Ailing UK Trusts
Leonard Kehnscherper - Bloomberg
Boaz Weinstein wants to control and run seven UK investment trusts after his Saba Capital Management amassed a total £1.5 billion ($1.9 billion) stake in the closed-end vehicles. In a letter to shareholders of the trusts on Wednesday, Saba urged them to replace the boards, with Weinstein offering himself as a candidate for a board seat. His firm has called for general meetings at funds run by Baillie Gifford, Janus Henderson Group Plc and Manulife Investment Management.
/jlne.ws/4gjOFWr
Lawrence named head of European equities trading at UBS AM; Move comes four and a half years after he joined the firm.
Claudia Preece - The Trade
Stuart Lawrence has been appointed head of European equities trading at UBS Asset Management four and a half years after he joined the firm in June 2019. He was most recently head of UK equity trading at UBS Asset Management, having previously served as a high touch equity sales trader at Kepler Cheuvreux. London-based Lawrence has extensive experience working across both the sell- and buy-side, working across asset classes.
/jlne.ws/4iIOGop
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Seven ways to be a successful remote-working manager
Yahoo Finance
Remote work has become the norm for many organisations, but its impact on work outcomes has been mixed. On the one hand, the increased flexibility and reduced commuting time it offers have been linked to improved employee wellbeing. On the other, remote work can lead to stress, fatigue, isolation and a heavier workload. Employees often report feelings of social isolation, as digital communication cannot fully replicate the depth of face-to-face interaction. And while flexible schedules can be a benefit, they come with the downside of blurred boundaries between work and personal time, resulting in longer workdays and potential digital overload.
/jlne.ws/4gB2cIQ
Silicon Valley's Secondary Markets Are Bigger Than Ever; Who needs an IPO? OpenAI, Stripe, Databricks and SpaceX have found a different way to get employees paid.
Sarah McBride - Bloomberg
Secondary transactions involving venture-backed startups are on track to hit a new high this year, as companies like OpenAI, SpaceX and Stripe Inc. organize tender offers to get employees paid, and investors look for ways to offload stakes outside of initial public offerings. Tender offers give staffers, former employees and certain investors a way to sell their shares directly to other investors. It's a break from past years, when major startups looking for a payday for staff would go public - the traditional route to fame and fortune in the tech world.
/jlne.ws/41J80Mj
What is an AI assistant?
Thomson Reuters (Infographic)
AI assistants have emerged as pivotal tools in the professional landscape. These tools are not just software but professional-grade partners capable of managing workflows, analyzing data, and drafting documents with precision. With the potential to radically transform how organizations operate and achieve, AI assistants are quickly becoming indispensable in enhancing productivity by understanding natural language and advanced task management. This infographic serves as a beginner's guide to AI assistants, uncovering common skills, what to look for in an AI assistant for your work, and more.
/jlne.ws/49NJbRl
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| Wellness Exchange | | An Exchange of Health and Wellness Information | The new tech treatments that could improve mental health; From video games to personal avatars, researchers are looking to develop a new generation of digital tools that do not involve taking a drug or therapy
Michael Peel - Financial Times
Irene Jimenez Padilla used to suffer persistent traumatic flashbacks from her time as a nurse during the Covid-19 pandemic. Then a cult computer puzzle game changed everything. Padilla was plagued by memories centred on patients who had died painful deaths in front of her at Guy's and St Thomas' hospitals in London. The images kept on returning like an "annoying fly that continuously comes, again and again, buzzing, buzzing, buzzing", she recalls.
/jlne.ws/4gJw0TX
A Rift in Trump World Over How to Make America Healthier; Statements by Robert F. Kennedy Jr. and Elon Musk tap into a dispute over whether lifestyle changes or drugs are a better way to treat obesity.
Gina Kolata - The New York Times
For Robert F. Kennedy Jr., the activist whom President-elect Donald J. Trump will nominate to serve as the secretary of health and human services, the solution to obesity in America - now at 40 percent of adults - is straightforward: "The first line of response should be lifestyle," he told Jim Cramer in a Dec. 12 interview on CNBC. Elon Musk, the technology billionaire who advises the president-elect, sees things differently: "Nothing would do more to improve the health, lifespan and quality of life for Americans than making GLP inhibitors super low cost to the public," he wrote on X, referring to the new class of drugs that cause weight loss, including Ozempic. "Nothing else is even close."
/jlne.ws/400o1MA
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Brazil currency rout risks worsening unless Lula delivers fiscal reforms; Central bank has burnt through billions of dollars and lifted rates in bid to prop up real
Harriet Clarfelt in New York and Michael Pooler in Sao Paulo - Financial Times
Brazil's currency rout will continue to escalate unless the country's central bank steps up its emergency measures and Luiz Inacio Lula da Silva's government delivers fiscal reforms, investors and analysts have warned. The Brazilian real has fallen by about 1 per cent this week alone, touching a record low of 6.21 against the dollar on Tuesday despite a barrage of foreign exchange interventions by the country's central bank.
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| Miscellaneous | | Stories that don't quite fit under the other sections | The Micropolitics of Family Gift Giving; The real holiday drama is the family gift-giving quagmire
Elizabeth Bernstein - The Wall Street Journal
Michelle Shahbazyan was excited to give her beloved older relatives the scrapbook she'd made for Christmas last year, with family photos and pictures drawn by her kids. That was until she watched the couple unwrap her cousin Stella's gift at the family's holiday gathering: a three-week European cruise, first-class airline tickets and matching luggage. "I was embarrassed," says Shahbazyan, 42 years old, a life coach in Scottsdale, Ariz. "No matter what you do, she will always trump it."
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