| July 16, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
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John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Rep. Jennifer Wexton (D-Va.), who has been battling a degenerative disease that has severely weakened her voice, recently introduced a new, AI-generated version of her speaking voice to her constituents, The Washington Post reported. This development was met with emotional reactions, as it closely resembles her original voice before the onset of her condition, progressive supranuclear palsy (PSP).
Wexton is the daughter of former IFM President Paula Tosini, who also served as the chief economist of the CFTC and led the Division of Economic Analysis for many years. Paula was also inducted in the FIA Hall of Fame in 2005.
Earlier this year, Wexton used a robotic-sounding speech application to deliver remarks on the House floor. The application was praised for its display of resilience but did not sound like her. This week, she debuted her new, more natural-sounding AI voice while addressing the House Appropriations Committee. The AI voice, which replicates her cadence, tone, and timbre, brought back a sense of familiarity to those who have known her over the years.
Wexton, who is not seeking reelection due to her health condition, continues to demonstrate her wit and intelligence despite her verbal communication challenges. Her staff and close associates were deeply moved by the reintroduction of her voice, which they had missed more than they realized.
A full B-1 membership share for a CBOT membership is bid at $420,000, which I am told is a big jump. The offer is currently $460,000 and the last sale was at $365,000 on Jun 3, 2024, according to the CME Group website.
The headline of the day comes from The Wall Street Journal and a commentary by Dan Gallagher titled "Google's Wiz Deal Won't Ease on Down the Road." The subheadline is "Big tech deals are a hard sell with regulators, but Google's huge war chest needs to be put to work."
The Wall Street Journal reports the IRS now allows Americans, particularly those with low to moderate incomes, to withdraw up to $1,000 from traditional retirement accounts without penalties or interest for any self-defined emergency. This change simplifies the process, which previously involved more restrictions and paperwork. Under a 2022 retirement law effective this year, acceptable reasons for withdrawal include medical care, funeral expenses, auto repairs, and a broad category of "any other necessary emergency personal expenses."
Try not to spend too much time or money on Amazon.com today if you are a Prime member during Amazon's annual Prime Day Sale. According to the New York Post, people are expected to spend a record $14 billion at Amazon during the Prime Day sale.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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The World Federation of Exchanges (WFE) is inviting the submission of theoretical, empirical, and policy research papers on issues related to clearing and derivatives for its 41st clearing and derivatives conference, WFEClear 2025. The conference will be hosted by the Korea Exchange in Seoul, Korea, April 1-3, 2025, and the deadline for submitting papers is Wednesday, October 2, 2024. Topics of interest include CCP resolution; clearing structures and incentives; and market resilience. View and download the full call for papers on the WFE website HERE. ~SAED
The latest episode of the SmarterMarkets podcast, hosted by Abaxx Chief Economist and Head of Research David Greely, was released Monday and features Eventus CEO Travis Schwab. It is 35 minutes long and is a good primer on what trade surveillance is and how it has evolved, among other things. You can watch it here on the SmarterMarkets site.~SR
Our most read stories from our previous edition of JLN Options were:
- CME Group Volatility Index (CVOL) from CME Group.
- NYSE Executive Hyde Sees Retail Surge and Regulatory Hurdles Shaping Options Market Future from John Lothian News.
- ICE Says Europe Diesel Contract Thrives After Russian Exclusion from Bloomberg. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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My Skepticism Persists Despite BlackRock's Larry Fink Reversing Stance, Declaring Bitcoin a Legitimate Financial Instrument
JohnLothianNews.com
The CoinDesk story that reported that BlackRock's Larry Fink has declared that bitcoin is a legitimate financial instrument struck a sour note with me. It was just seven years ago, before BlackRock's Bitcoin ETF hit $21 billion in equity since its launch in January of this year, that Fink was not a bitcoin fan. BlackRock may have $10.6 trillion in assets under management, which gives Fink headlines and gravitas, but his declaration is still just an opinion.
Read MORE »
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OCC's Tech Overhaul Poised to Reshape Options Trading
JohnLothianNews.com
In the heart of Asheville, NC, in a quiet corner of the bustling Options Industry Conference, Mike Hansen, the chief clearing and settlement services officer of the Options Clearing Corporation (OCC), sat down for an interview with John Lothian News for the JLN Industry Leader video series sponsored by the OCC. His demeanor was calm, but his words carried the weight of an industry on the cusp of significant change.
Watch the video »
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Russian cybersecurity firm Kaspersky to exit US, website shows
Reuters
Russia's Kaspersky Labs will leave the United States, according to a pop-up seen by users on the anti-virus software maker's U.S. website, nearly a month after the Biden administration announced plans to bar sales of the company in the country. Last month, U.S. Commerce Secretary Gina Raimondo announced plans to bar the sale of anti-virus software made by Kaspersky in the country, citing security risks posed by Russia's influence on the cybersecurity company.
/jlne.ws/46dxOAr
****** Why is Kaspersky being banned from the U.S.? I have a theory, but you would have to follow me down a long winding rabbit hole.~JJL
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Climate change is messing with time more than previously thought, scientists find
Laura Paddison - CNN
The impacts of human-caused climate change are so overwhelming they're actually messing with time, according to new research. Polar ice melt caused by global warming is changing the speed of Earth's rotation and increasing the length of each day, in a trend set to accelerate over this century as humans continue to pump out planet-heating pollution, according to the study published Monday in the Proceedings of the National Academy of Sciences.
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***** What time is it? It is time to do something about climate change.~JJL
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The Fund Managers Modeling Catastrophe Keep Winning Their Bets
Gautam Naik - Bloomberg
Last month, amid reports that Hurricane Beryl would become the earliest Category 5 hurricane in history, a group of money managers were busy trying to figure out whether their highly calibrated bets centered on natural catastrophes were about to take a major hit. Beryl ended up tearing through the Windward Islands and Mexico, before making landfall near Houston and then moving up through Texas to Canada. So far, it's caused as much as $3.3 billion in insured losses in the US, Caribbean and Mexico, according to an estimate by Karen Clark & Co., a catastrophe modeler. But holders of catastrophe bonds - from which investors are currently reaping close to a 14% annualized return - won't have to pay a cent.
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***** I had to take shelter from a tornado warning in Elmhurst last night. Luckily, no catastrophe here.~JJL
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'I couldn't get him to move': dog owners struggle through US heatwave; Blazing temperatures force people to find new ways to keep their pets safe, cool and occupied: 'They sit, pee and go home'
Alaina Demopoulos - The Guardian
Heat-resistant bootees, frozen bananas and pet sunscreen - it takes a lot to keep dogs safe during a nationwide heatwave. As pet owners across the US try to keep cool themselves, they're changing dog-walking habits to accommodate boiling sidewalks or scorching parks, relying on indoor pet games to relish air conditioning, and embracing what has become a new normal for the dog days of summer, as extreme heat becomes an increasingly common reality.
/jlne.ws/3zKE46J
***** The only thing my dog complained about was rain. She did not like that so would get her business done ASAP and go back inside. She also really liked winter (she was kinda made for it). Heat like this would be miserable for her. ~JB
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Monday's Top Three
Our top story Monday was James Sikking, 'Hill Street Blues' and 'Doogie Howser, M.D.' Star, Dies at 90, from Variety. Second was Pioneering sex expert Dr. Ruth Westheimer dies at 96, from NPR. And third was Richard Simmons, Fitness Guru, Dies at 76, from The Wall Street Journal.
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| Lead Stories | Pity Hedge Funds That Lost in Electricity Chaos - No, Really; A spike in prices cost traders money. But have some sympathy; the next losers could be you and me.
Javier Blas - Bloomberg
When European electricity markets recently went haywire for 24 hours, a group of high-flying hedge funds lost money. Given their size, the amounts involved were small, though still enough to cause howls of distress. Should we have some sympathy for their billionaire owners? Before you answer "no" - or perhaps "hell no" - let me describe what happened, and why the hedge funds are right to feel aggrieved. Early on June 25, EPEX Spot, a key exchange handling electricity trading, released what it called a "feature upgrade" to its main software. By 10:08 a.m. Paris time, the exchange could no longer communicate with its customers even after rushing to reverse the upgrade, according to a preliminary report. The failure created a cascade that, at its most extreme, pushed German short-term power prices 3,000% above typical levels, while French prices plunged to nearly zero. For the market as a whole, the total losses probably are somewhere around EUR300 million ($327 million) in a single day.
/jlne.ws/3Ln6Ug1
BlackRock's Larry Fink: Bitcoin Is 'Legitimate Financial Instrument'
Helene Braun - CoinDesk
BlackRock (BLK) CEO Larry Fink reiterated his belief that Bitcoin {{BTC}} is an asset that everybody should consider holding as part of their portfolio. "My opinion five years ago was wrong," Fink said in an interview with CNBC. "I believe bitcoin is a legitimate financial instrument," Fink's appearance Monday morning came following BlackRock's second quarter earnings results, which topped analyst estimates as assets under management increased 13% year-over-year to $10.6 trillion.
/jlne.ws/4cJ9etD
****Seven years ago, in 2017, Larry Fink, the CEO of BlackRock, held a very negative view of Bitcoin. He referred to Bitcoin as "an index of money laundering". This stance reflected his skepticism on cryptocurrencies at that time, as he viewed them primarily as tools for illicit activities rather than legitimate financial instruments.
Europe's rushed attempt to set the rules for AI; The EU says its pioneering legislation will protect humans from AI's dangers. Critics say it is undercooked and will stifle innovation
Javier Espinoza - Financial Times
Andreas Cleve has lots on his mind as chief executive of Danish healthcare start-up Corti - wooing new investors, convincing clinicians to use his company's "AI co-pilot" and keeping up with the latest breakthroughs in generative artificial intelligence. But he fears that efforts like these will be made harder by a new concern: the EU's new Artificial Intelligence Act, a first-of-its-kind law aimed at ensuring ethical use of the technology. Many tech start-ups are concerned that the well-intentioned legislation might end up smothering the emerging industry in red tape.
/jlne.ws/3W7jogB
Why Is the Oil Industry Booming? High prices and growing demand have helped U.S. oil producers take in record profits despite global efforts to spur greater use of renewable energy and electric cars.
Rebecca F. Elliott - The New York Times
For all of the focus on an energy transition, the American oil industry is booming, extracting more crude than ever from the shale rock that runs beneath the ground in West Texas. After years of losing money on horizontal drilling and hydraulic fracturing, the companies that have helped the United States become the leading global oil producer have turned a financial corner and are generating robust profits. The stocks of some oil and gas companies, such as Exxon Mobil and Diamondback Energy, are at or near record levels.
/jlne.ws/3Wo3nEt
BlackRock's Larry Fink highlights 'barbell effect' as investors return to fixed income; World's largest money manager sees assets under management hit record high of $10.6tn
Brooke Masters - Financial Times
Investors are creating a "barbell effect" in fixed income markets by opting for low-cost exchange traded funds and alternative assets rather than traditional bond funds, BlackRock chief executive Larry Fink said on Monday. As the world's largest money manager announced a new high of $10.6tn in assets under management, Fink pointed to record inflows to BlackRock's ETF products as well as high levels of client interest in infrastructure products that invest in energy and data centres.
/jlne.ws/3zI4NRb
Rebuilding confidence in the Swiss financial system; UBS's size and complexity raises the bar for its supervision and buffers
The editorial board - Financial Times
Switzerland's reputation for financial stability has long made it a safe haven for global bankers and the well-heeled. But doubts have been creeping in. Swiss financial authorities are still grappling with the fallout from the collapse of Credit Suisse in March 2023. For the country's all-powerful "trinity" - the finance ministry, the central bank and the financial regulator, Finma - the failure of its then second-largest bank was an embarrassment. It struck a late deal for UBS, the country's largest lender, to acquire its beleaguered rival. The bailout has raised concerns over the robustness of Swiss financial regulation, heaped losses on international bondholders, and triggered lawsuits.
/jlne.ws/3Y627a5
Bitcoin cements 'legitimate' status as Wall Street struggles toward a new consensus: Morning Brief
Myles Udland - Yahoo Finance
In an interview on CNBC on Monday, BlackRock (BLK) CEO Larry Fink had strong words for the crypto market. "As you know," Fink told CNBC's Jim Cramer, "I was a skeptic [about bitcoin]." "I was a proud skeptic," Fink added. "And I studied it, learned about it, and I came away saying, 'My opinion five years ago was wrong. Here's my opinion today: I believe in the opportunity today.' I believe bitcoin is legitimate."
/jlne.ws/4f6qCKE
Spot ether ETFs likely to begin trading July 23, industry sources say
Suzanne McGee and Hannah Lang - Reuters
The U.S. Securities and Exchange Commission has given preliminary approval to at least three of the eight asset managers hoping to launch exchange-traded funds tied to the spot price of ether to begin trading next Tuesday, three industry sources said. The approval hinges on applicants submitting final offering documents to regulators before the end of this week, the sources said. One said that all eight are expected to launch simultaneously.
/jlne.ws/4bMI2cd
China's top commodity exchanges cut hedging fees to boost participation
Reuters
China's two key commodity exchanges will halve their hedging fees for listed products to lower users' costs and increase participation in the world's biggest consumer of commodities.
The Shanghai Futures Exchange (SHFE) said it will halve transaction fees for hedging activities on the products listed on the exchange and its Shanghai International Energy Exchange (INE).
/jlne.ws/3Wn1vM0
Opinion: Putin is leading Russia into a demographic catastrophe
Francis Dearnley - The Telegraph
Lies, damned lies, and statistics. If anyone knows how to falsify figures to bolster weak causes, it is the Kremlin. From Stalin's manipulation of Soviet productivity statistics during his Five Year Plans, to Khrushchev's exaggeration in the Cold War of his missile numbers, no entity has proved as effective at fabricating facts to demoralise, unsettle and outmanoeuvre opponents. Today, in a similar manner, Putin points at Russia's 144 million citizens and argues, through his propaganda mouthpieces, that it is "impossible" for Kyiv to win his war, given Ukraine's population is a paltry 37 million.
/jlne.ws/3WnRiPG
BlackRock's private market ETF ambitions draw scepticism; Preqin acquisition gives access to data but does not solve problems such as illiquidity of assets, say industry observers
Steve Johnson - Financial Times
Industry figures have expressed scepticism over plans by BlackRock to extend the scope of the fast-growing exchange traded fund industry into the world of illiquid private assets. BlackRock, the world's largest asset manager with $10.5tn of assets under management, unveiled the £2.55bn acquisition of Preqin, a UK-based private markets data group, earlier this month. In the wake of the deal chief financial officer, Martin Small, said on an investor call that "in the long range...we have a great platform in iShares [BlackRock's ETF arm] to be able to take some of this data, use it and create investable indices through...things like exchange traded products", according to Reuters.
/jlne.ws/3W6kDgb
What is ETF Connect? How does it help global investors tap China's stock market?
South China Morning Post
China is further opening up its US$8.4 trillion stock market by offering more options to global investors - 85 new exchange-traded funds (ETFs) tracking mainland equities are set to become available through the cross-border trading channel for offshore funds next week. ETFs, which are funds that pool together a basket of securities and aim to offer returns that mirror the underlying market, are becoming increasingly popular in Asia. These transparent, low-cost, and diversified investment products are especially favoured by retail investors, with mainland China being one of the fastest-growing markets in the region.
/jlne.ws/3zJU7S8
Goldman Joins Rivals in Setting Up New Mideast-Focused Fund; JPMorgan's Saikaly joining Goldman to lead development of fund
Matthew Martin, Nicolas Parasie, and Dinesh Nair - Bloomberg
Goldman Sachs Group Inc. is working on raising a Middle East-focused fund and hired a longtime JPMorgan Chase & Co. banker to run it, according to people familiar with the matter. The Wall Street bank has held talks with investors in the region about raising money for the open-ended fund, the people said, asking not to be named as the information isn't public. Talks are ongoing and the fund's final size hasn't been decided yet, they said.
/jlne.ws/3W6bXWX
Goldman Sachs Overhaul Takes Two Steps Forward, One Step Back; The Wall Street firm is transforming its business, but perhaps not fast enough
Telis Demos - The Wall Street Journal
During the second quarter, Goldman Sachs turned 25 years old as a public company. Like anyone at quarter-life, it has a stronger sense of what it wants to be, but isn't quite there yet. Two vital parts of Goldman's strategy under Chief Executive David Solomon remained well on track in the second quarter, which the bank reported on Monday. One is to do more lending to Wall Street clients. The other is to shift assets from the bank's own balance sheet to funds managed for fee-paying outside investors.
/jlne.ws/4d3qny8
How Wall Street Keeps Absorbing America's Borrowing Binge; Demand for safe returns has supported Treasurys despite a huge supply increase
Sam Goldfarb - Financial Times
The U.S. fiscal outlook is deteriorating. Wall Street doesn't seem bothered. U.S. government bonds rallied this past month on the same day that the Congressional Budget Office said that it expects the fiscal 2024 budget deficit to reach $1.9 trillion-up from $1.7 trillion last year and its previous estimate of $1.5 trillion. A broader rally has pulled Treasury yields well off their highs from 2023, despite a series of jumbo-sized debt sales needed to fill the gap between the government's spending and revenue.
/jlne.ws/4cHtkV5
Growth of US electronic equities trading sees interest in expanding team headcounts increase; Algo sales and desk coverage headcounts expected to be expanded the most in the next 12-18 months, according to a report from Coalition Greenwich.
Wesley Bray - The Trade
With electronic equities trading continuing to rise, a notable proportion of US low-touch desk expect to expand their teams over the next 12-18 months, a new report from Coalition Greenwich has found. Roughly a third of respondents plan to bolster their algo sales and desk coverage, while a quarter are looking to boost their execution and analytics consulting, on-desk trading assistant, and trade operations or algo support headcounts.
/jlne.ws/4bQB71E
ESMA consultation on establishment of order execution policies opened as Mifid II review continues; The watchdog has confirmed that it will consider all input by 16 October 2024 before submitting a final report of technical standards on order execution policies to the European Commission.
Claudia Preece - The Trade
The European Securities and Markets Authority (ESMA) has today released a consultation, seeking industry input on draft technical standards which will guide investment firms as regards their order execution policies. The consultation, part of the watchdog's Mifid II/Mifir review, is aimed at creating technical standards to enhance the establishment and assessment of investment firms' order execution and consequently "foster investor protection".
/jlne.ws/3xZpPdw
ESMA launches consultation on CSDR refit to consider scope of penalties; Europe's markets regulator is looking at the scope of settlement discipline among other areas as it seeks to fine-tune and further clarify the CSDR framework.
Jonathan Watkins - The Trade
The European Securities and Markets Authority (ESMA) has launched three new consultations on different aspects of the Central Securities Depositories Regulation (CSDR) Refit. Perhaps most notably, one of the three separate consultation papers focuses on the scope of settlement discipline, looking at the underlying cause of settlement fails that are considered as not attributable to the participants in the transaction, and the circumstances in which operations are not considered as trading.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russia has lost at least 100 of the T-90M tanks Putin praised as the 'world's best' in Ukraine, tracker data shows
Chris Panella - Business Insider
A top Russian tank touted by Russian President Vladimir Putin as the "world's best" has suffered at least 100 losses in the war in Ukraine, according to open-source information. The losses were recorded by Oryx, an open-source intelligence site that relies on visual evidence to confirm and track war losses on both sides. More T-90Ms may have also been lost in combat but not recorded. Business Insider was unable to independently verify the information. Losses, per the site's analysis, include destroyed, damaged, and captured vehicles.
Ukraine's Zelenskiy eyes second summit in November, says Russia should attend
Max Hunder - Reuters
President Volodymyr Zelenskiy said on Monday he aimed to have a plan ready in November to enable Kyiv to hold a second international summit on his vision of peace in Ukraine, and that representatives of Russia should attend. Ukraine hosted delegations from 92 countries at a first summit in Switzerland last month to advance its blueprint for peace. Russia, which invaded Ukraine in February 2022, was not invited to the event and dismissed it as a non-starter.
/jlne.ws/4f6lkOY
Opinion: Putin is leading Russia into a demographic catastrophe
Francis Dearnley - The Telegraph
Lies, damned lies, and statistics. If anyone knows how to falsify figures to bolster weak causes, it is the Kremlin. From Stalin's manipulation of Soviet productivity statistics during his Five Year Plans, to Khrushchev's exaggeration in the Cold War of his missile numbers, no entity has proved as effective at fabricating facts to demoralise, unsettle and outmanoeuvre opponents. Today, in a similar manner, Putin points at Russia's 144 million citizens and argues, through his propaganda mouthpieces, that it is "impossible" for Kyiv to win his war, given Ukraine's population is a paltry 37 million.
/jlne.ws/3WnRiPG
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | CIA director says Hamas leader is facing growing pressure from his own commanders to end Gaza war
Alex Marquardt - CNN
The CIA has assessed that the leader of Hamas in Gaza, Yahya Sinwar, is coming under increased pressure from his own military commanders to accept a ceasefire deal and end the war with Israel, CIA Director Bill Burns told a closed-door conference on Saturday, according to a source who attended. Sinwar, the key architect of the October 7 massacre in Israel, is not "concerned with his mortality" but is facing pressure about being blamed for the enormity of the suffering in Gaza, Burns said at the conference, the source said.
/jlne.ws/465asNc
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Abaxx Commodity Futures Exchange and Clearinghouse Selects Baymarkets Clara Clearing System to Support New Commodities Exchange; New Singapore-based commodities exchange and clearinghouse powered by award-winning clearing technology
Morningstar
Baymarkets AS ("Baymarkets"), and Abaxx Technologies Inc. (NEO:ABXX)(OTCQX:ABXXF) ("Abaxx"), today announced that Abaxx's indirectly held, majority-owned Singapore-based exchange ("Abaxx Exchange") and clearinghouse ("Abaxx Clearing"), has chosen the award-winning Baymarkets clearing technology and platform, Clara, to power their newly-launched, Singapore-based Abaxx Commodity Futures Exchange and Clearinghouse, licensed as a Recognised Market Operator ("RMO") and Approved Clearing House ("ACH") with the Monetary Authority of Singapore ("MAS").
/jlne.ws/4cYU1Ez
First Initial Access Document on BME Scaleup from ORES ALEMANIA
BME-X
The Market Coordination and Listing Committee considers that ORES ALEMANIA will meet the requirements for listing on BME Scaleup. It is the twelfth company to register an Initial Accesss Document on this BME market so far this year. The company's Board of Directors has taken a reference price of 1,000 euro per share as the starting point for trading in the shares, which represents an initial capitalisation of the companies of 107.5 million euros. The Registered Advisor to the companies is VGM Advisory Partners.
/jlne.ws/4cEHmH9
Industry Survey Regarding Live Cattle Futures Contract
CME Group
/jlne.ws/3zJx5ee
Availability of Additional Treasury Invoice Swaps and Spreads - Effective Trade Date Monday, August 26, 2024
CME Group
/jlne.ws/3W79f3v
Approved Application for Spot Call Dry Whey and Spot Call Nonfat Dry Milk Regularity
CME Group
/jlne.ws/4cNsVAM
DTCC Survey Identifies Significant Improvements in Industry Understanding and Preparedness Around Expanded U.S. Treasury Clearing
DTCC
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today issued a white paper, "The U.S. Treasury Clearing Mandate: An Industry Pulse Check," to further enhance the industry's knowledge of the U.S. Securities & Exchange Commission's (SEC) expanded clearing rules. The paper, which reports on findings from a recent industry survey conducted by DTCC's Fixed Income Clearing Corporation (FICC) subsidiary, provides updated estimates on the volume of transactions required to be submitted for central clearing, the planned usage of FICC's various access models, and how margin and liquidity risk management resources may be impacted. "FICC stands at the center of a momentous transformation of market structure," said Brian Steele, DTCC Managing Director, President, Clearing & Securities Services.
/jlne.ws/3zKvtRv
EEX Group continues growth trend with volume increases and new products in the first half of 2024
EEX Group
EEX Group has achieved significant volume growth in the first half of 2024 across major asset classes. The group's global power market volume increased by almost 50%. While natural gas volumes in the US almost doubled in size, European natural gas trading remained stable on the high level seen in the past two years. Environmental markets both in Europe as well as in North America reported a high double-digit growth in the first half of the year. Furthermore, EEX Group has extended its product portfolio in line with market needs.
/jlne.ws/4bQnaki
ESG Index Derivatives Development Update Q2/2024
Eurex
The Eurex ESG Index Derivatives segment continued its strong development in Q2/2024, with a record high in June for the whole segment.
/jlne.ws/468SxVS
New Index Options Strike Series
HKEx
Hong Kong Futures Exchange announces the addition of the following strike series effective 17 July 2024.
/jlne.ws/3WyV4G5
Final Settlement Prices of London Metal Mini Futures Contracts
HKEx
Please be advised that the Final Settlement Prices of the following futures contracts for the month of July 2024
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Matching Mechanism for the First Day of Listing: SUPPORT Co., Ltd.
JPX
The matching mechanism to be applied to SUPPORT Co.,Ltd. until the initial price is determined is shown below. This special matching mechanism is applied to first-time listed issues until its initial price is determined.
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | CQG Offers Clients Access to Newly Launched Abaxx Exchange
CQG
CQG, a leading global provider of high-performance technology solutions for market makers, traders, brokers, commercial hedgers and exchanges, announced that it has partnered with Abaxx Exchange to provide its clients with access to trade new benchmark futures on energy, metals and other energy transition-focused commodities. Abaxx, the new global commodity futures exchange and clearinghouse based in Singapore, launched on June 28 with five physically deliverable futures contracts in liquified natural gas (LNG) and carbon markets, soon to be followed by solutions for battery metals. The exchange's offering is designed to help market participants execute their energy transition strategies, with improved price discovery and enhanced risk management tools.
/jlne.ws/3W76eQJ
The Derivatives Service Bureau Publishes the Industry Consultation Final Report for OTC Derivatives; Ongoing development of the service in the months ahead
Derivatives Service Bureau via Mondovisione
The Derivatives Service Bureau (DSB), the golden global source of reference data for Over-the-Counter (OTC) derivatives, has published the Industry Consultation Final Report today relating to the OTC International Securities Identification Number (ISIN), the Classification Financial Instrument code (CFI) and the UPI service provision. The industry consultation process complements the ongoing work of the DSB's industry representation groups (IRG) and enables stakeholders and market participants to contribute towards the evolution of the DSB service by providing feedback on specific topics. For the first time, this year's consultation includes the new UPI Service, which is particularly pertinent as G20 regulatory reporting mandates take effect throughout 2024 and 2025.
/jlne.ws/3WmnfI6
Financial institutions leverage blockchain for efficiency
Rob Nelson - The Street
As blockchain technology continues to advance, the conversation around its adoption is shifting from a focus on the underlying technology to the practical utility it offers. In a recent discussion, Roundtable anchor Rob Nelson and Brendan Berry, Head of Payments Product at Ripple, delved into this transformation and the broader implications for mainstream adoption.
/jlne.ws/3WnRiPG
Warburg-Backed PDG Eyes Asia Data Center Expansion Fueled by AI
Gao Yuan - Bloomberg
Singapore's Princeton Digital Group plans to double the capacity of its data centers in three years to meet surging demand from global artificial intelligence developers, highlighting tech firms' rising interest in Asia. The Warburg Pincus-backed company is adding more than 300 employees in markets including Japan, Malaysia, Singapore and India by the end of 2025 as AI propels its growth, Rangu Salgame, PDG's chairman and chief executive officer, said in an interview.
/jlne.ws/3WrTxBC
Yandex founder to build AI business in Europe after Russia exit; Arkady Volozh tells the FT he will launch artificial intelligence venture Nebius mostly staffed by former Yandex employees
Max Seddon and Madhumita Murgia - Financial Times
The co-founder of Russian tech group Yandex is launching an artificial intelligence venture in Europe mostly staffed with the company's former employees after its parent this week concluded a deal to exit the country. Arkady Volozh, one of only two prominent Russian businessmen to condemn Moscow's invasion of Ukraine, will head up Nebius Group, an AI infrastructure company and formerly Yandex's Nasdaq-listed, Netherlands-based parent company.
/jlne.ws/3S49RFJ
Liquidnet enhances bond deal speed through incorporation of Boltzbit's AI solution; Through the collaboration with Boltzbit, Liquidnet is now able to receive, process, and display newly announced bond deals at a significantly faster rate.
Claudia Preece - The Trade
Liquidnet has implemented Boltzbit's offering to enhance its operations through Gen-AI with the aim of making bonds more readily available through its dashboard. This technological enhancement to Liquidnet's fixed income primary markets workflow specifically allows Liquidnet to receive, process, and display newly announced bond deals at a significantly faster rate.
/jlne.ws/3zTNeh1
Europe's rushed attempt to set the rules for AI; The EU says its pioneering legislation will protect humans from AI's dangers. Critics say it is undercooked and will stifle innovation
Javier Espinoza - Financial Times
Andreas Cleve has lots on his mind as chief executive of Danish healthcare start-up Corti - wooing new investors, convincing clinicians to use his company's "AI co-pilot" and keeping up with the latest breakthroughs in generative artificial intelligence. But he fears that efforts like these will be made harder by a new concern: the EU's new Artificial Intelligence Act, a first-of-its-kind law aimed at ensuring ethical use of the technology. Many tech start-ups are concerned that the well-intentioned legislation might end up smothering the emerging industry in red tape.
/jlne.ws/465wgZk
AI's 'Oppenheimer moment': autonomous weapons enter the battlefield
Nick Robins - The Guardian via Yahoo
A squad of soldiers is under attack and pinned down by rockets in the close quarters of urban combat. One of them makes a call over his radio, and within moments a fleet of small autonomous drones equipped with explosives fly through the town square, entering buildings and scanning for enemies before detonating on command. One by one the suicide drones seek out and kill their targets. A voiceover on the video, a fictional ad for multibillion-dollar Israeli weapons company Elbit Systems, touts the AI-enabled drones' ability to "maximize lethality and combat tempo".
/jlne.ws/4cXIkOg
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| Cybersecurity | | Top stories for cybersecurity | Bipartisan Senate Bill Seeks to Create Framework to Harmonize Federal Cybersecurity Regulations
Jane Edwards - GovCon Wire
Sens. Gary Peters, D-Mich., and James Lankford, R-Okla., have proposed a bipartisan bill that would establish an interagency committee within the Office of the National Cyber Director to develop a framework to harmonize cybersecurity and information security regulations and compliance requirements across the federal government. The Streamlining Federal Cybersecurity Regulations Act would create a pilot program to test the framework on similar regulations, the Senate Homeland Security and Governmental Affairs Committee said.
/jlne.ws/4cEOF1x
Google Near $23 Billion Deal For Cybersecurity Startup Wiz
Ed Carson and Reinhardt Krause - Investor's Business Daily
Google-parent Alphabet (GOOGL) is near a deal to buy cybersecurity startup Wiz for about $23 billion, according to multiple reports. A deal would mark Google's biggest acquisition ever and boost its cloud computing business while shaking up the competitive landscape in cybersecurity.
/jlne.ws/3XYZOps
Guarding the games: Cybersecurity challenges ahead of 2024 Paris Olympics
Dave Stapleton - SC Media
The Olympics are more than just a showcase of excellence and athleticism; they embody the spirit of unity, competition, national pride and human achievement on a global scale. But as the world eagerly anticipates the arrival of athletes, celebrities, media figures and spectators in Paris for the 2024 Summer Games, threats are emerging that may disrupt the fanfare and spectacle of this global event.
/jlne.ws/4bQCqxr
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| Cryptocurrencies | | Top stories for cryptocurrencies | Wealthy industry donors fuel Trump's conversion on cryptocurrency; The former president called cryptocurrency "a scam" and a "disaster waiting to happen" during his term in office.
Josh Dawsey - The Washington Post
Donald Trump deemed cryptocurrency "a scam" and a "disaster waiting to happen" during his term in office. In the official Republican Party platform that Trump edited last week, he struck a different tone.
/jlne.ws/3Wnl2fg
Computer scientist who claimed to invent bitcoin referred to prosecutors for perjury; A London judge who found that an Australian computer scientist falsely claimed to be the mysterious creator of the bitcoin cryptocurrency says he will refer the case to British prosecutors for possible perjury charges
Brian Melley - Associated Press via ABC News
An Australian computer scientist found to have falsely claimed to be the mysterious creator of the bitcoin cryptocurrency will be referred to British prosecutors for "wholescale perjury and forgery of documents," a London judge said Tuesday. Judge James Mellor, who ruled after a civil trial in March that Craig Wright was not the man behind "Satoshi Nakamoto," the pseudonym that has masked the creator of bitcoin's identity, said he will refer evidence from the case to the Crown Prosecution Service to consider whether to bring charges.
/jlne.ws/4cHpPxV
Plaintiffs File New, Slimmed Down Complaint in Class Action Lawsuit Against Tether; The second amended complaint accuses Tether of manipulating the price of bitcoin and violating antitrust laws.
Cheyenne Ligon - CoinDesk
Plaintiffs in an ongoing class action lawsuit against Tether and Bitfinex have filed a new, slimmed-down complaint accusing the crypto companies of manipulating the crypto markets and violating antitrust laws.
/jlne.ws/4f4jdv4
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| Politics | | An overview of politics as it relates to the financial markets | Timing 'Trump Trades' With an Eye on GOP Platform; The Fed and rate cuts have more impact on investor decisions than the prospect of Trump 2.0. And markets have changed since 2016.
John Authers - Bloomberg
What's Brewing in Milwaukee?
Republicans have started their national convention in Milwaukee, four days of political theater that traditionally signal the point when presidential campaigns begin in earnest and more Americans begin to pay attention. Of course, this is nothing like a traditional election cycle. Joe Biden's embarrassingly poor debate performance and the assassination attempt on Donald Trump have taken what was already a strange electoral year into hyperspace.
/jlne.ws/3VY8QAo
Ken Griffin gives over $20mn to US Republican fundraising committees; Citadel hedge fund founder has increased his donations to the party but has yet to back Donald Trump
Alex Rogers - Financial Times
Ken Griffin has again become a top donor to the Republican effort to control the US Congress after giving $10mn to one of the party's crucial fundraising groups in the second quarter of the year, according to sources familiar with the matter. The donation by the billionaire founder of hedge fund Citadel to the Congressional Leadership Fund came on top of $5mn given earlier in the current election cycle, and $10mn donated to the Senate Leadership Fund, bringing the total he has given to the two super Pacs since January 2023 to $25mn. "I have long been dedicated to supporting problem-solving candidates who drive real results for the country. CLF has done a tremendous job in recruiting qualified individuals to serve our nation," Griffin said on Monday.
/jlne.ws/3xORttT
Silicon Valley's tech titans line up to donate to Donald Trump; America Pac has raised more than $8.7mn from backers including Palantir's Joe Lonsdale and Sequoia's Doug Leone
Alex Rogers and Tabby Kinder and Hannah Murphy - Financial Times
US technology and business leaders including Palantir Technologies co-founder Joe Lonsdale, venture capital pioneer Doug Leone and the Winklevoss twins have donated to a new super-political action committee supporting Donald Trump's presidential bid. America Pac has raised more than $8.7mn since its launch in June, according to a public filing, including several $1mn donations from Silicon Valley investors who have publicly backed Trump in recent weeks.
/jlne.ws/3W44Jmw
Trump's Rise Poses Threat to Tax Break That Underpins Muni Bonds
Skylar Woodhouse - Bloomberg
The momentum behind Donald Trump's campaign for a second term as president is rekindling concerns that the long-cherished municipal bond tax-break may be scrapped to help pay for permanent tax cuts. The Tax Cuts and Jobs Act - which lowered levies for corporations and individuals - marked a major Trump policy achievement during his first stint in the White House. Those breaks for individuals are set to expire in 2025. If elected this November, he's promised across-the-board tax cuts, likely raising deficits and pushing lawmakers to hunt for additional revenue. The muni tax-exemption - estimated to cost the US government roughly $40 billion each year - has been mentioned as a target.
/jlne.ws/3YbpZcm
China Poses Deadly Threat to UK, Starmer Defense Adviser Warns
Alex Wickham - Bloomberg
China poses a "deadly" threat to the UK, the former NATO secretary-general appointed by Prime Minister Keir Starmer to lead a strategic review of Britain's defense posture said. "We're confronted by a deadly quartet of nations increasingly working together," George Robertson told journalists as he launched the review, remarks confirmed by the Ministry of Defence. He named Russia, China, Iran and North Korea as posing lethal threats to the UK.
/jlne.ws/4f8ibyr
Prabowo Spooks Bond Investors, Raising Stakes for Finance Chief
Matthew Burgess and Grace Sihombing - Bloomberg
The fate of Indonesia's jittery bond market may well hinge on who President-elect Prabowo Subianto chooses as his finance minister. A technocrat like incumbent Sri Mulyani Indrawati, a former World Bank managing director credited with tackling the debt load, will be crucial for avoiding another costly run-up in yields, according to investors. That happened last month, with the cost of insuring the country's debt against default also surging, on news that Prabowo was mulling an increase in spending that would push the debt load to a two-decade high.
/jlne.ws/4bFndQ1
Iraq in Talks With US Treasury Over Banks, Dollar Restrictions
Khalid Al-Ansary - Bloomberg
Iraq has engaged in discussions in Washington with representatives from the US Treasury to address dollar restriction issues, Iraqi Foreign Minister Fuad Hussein said during a press conference aired on state-run media al-Iraqiya. Describing the meetings as "very useful," Hussein indicated that they would continue. Topics slated for upcoming discussions include further talks on the list of Iraqi banks under US sanctions and the status of accumulated Iranian funds in Iraq. "There are serious steps to resolve these issues," Hussein said.
/jlne.ws/3Y69s9I
US Tariffs at 60% Would Halve China's Growth Rate, UBS Says
Bloomberg News
New tariffs of 60% on all Chinese exports to the US would more than halve China's annual growth rate, according to new research from UBS Group AG, underscoring the risks for Beijing if former President Donald Trump returns to the White House. Trump was reported earlier this year to be considering a flat 60% tariff on Chinese imports. If that happened, it would cut 2.5 percentage points from China's gross domestic product in the year that follows, according to a report from UBS economists published Monday. Beijing is seeking to reach about 5% growth this year after the economy expanded 5.2% in 2023.
/jlne.ws/4bKhNDa
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| Regulation & Enforcement | | Stories about regulation and the law. | Deutsche Bank flouted international accounting rules, says watchdog; BaFin accuses lender of 2019 failure to disclose key details about losses at US operations
Olaf Storbeck - Financial Times
Deutsche Bank's 2019 financial report did not meet international accounting standards because it lacked key details about the lender's historic US losses, Germany's financial watchdog BaFin said on Tuesday. BaFin said the bank failed to disclose in 2019 that EUR2.1bn of deferred tax assets were linked to multiyear losses at the US operations, which were unprofitable at the time. Deutsche also failed to explain in its annual report how it expected to generate future profits in the region - a legally required disclosure under IFRS rules as the bank was hoping to offset the historic losses against future profits in the region, the watchdog said.
/jlne.ws/468OYiG
Microsoft's hiring of Inflection AI staff probed by UK regulator; CMA had invited comments over tie-up as part of broader concerns about dealmaking in AI industry
Madhumita Murgia and Camilla Hodgson - Financial Times
The UK competition watchdog has officially launched an inquiry into Microsoft's hiring of staff from start-up Inflection AI, as global regulatory scrutiny of investments by technology groups deepens. The Competition and Markets Authority said on Tuesday that it had "sufficient information" in relation to Microsoft's hiring of "certain former employees of Inflection AI and its entry into associated arrangements with Inflection, to enable it to begin an investigation".
/jlne.ws/3WnoJBE
SEC Charges Additional Defendant in Connection with $38 Million Ponzi-Like Scheme to Defraud Investors
SEC
The Securities and Exchange Commission filed an Amended Complaint adding Shlomo Erez, a citizen of Israel, as a defendant in its previously filed action alleging a multi-million-dollar Ponzi-like fraud scheme, which involves raising money from investors to fund purported deals to purchase, distribute, and sell in-demand healthcare products.
/jlne.ws/3Lqp6VP
Private equity lawyers wince after bankruptcy court ruling; Federal judge points to conflict in relationships with financial sponsor and debtor in Chapter 11 case
Sujeet Indap - Financial Times
It is the assignment Vinson & Elkins never hoped would arise but the one where its client needed the powerhouse law firm the most. For a federal judge, however, just figuring out who the "client" is has proved no simple task. Enviva, a once highly touted clean energy company, filed for bankruptcy in March citing nearly $2bn of debts to be restructured. Enviva selected V&E as its debtor counsel to take it through the court case. By the time of the bankruptcy petition, the company had struck a settlement with a majority of creditors.
/jlne.ws/4bKi6hh
Singapore Says Fugitive Jho Low Still Wanted in 1MDB Case
Low De Wei - Bloomberg
Singapore authorities said it is still pursuing Malaysian fugitive Low Taek Jho in connection with a multibillion-dollar scandal related to 1Malaysia Development Bhd. A deal with the US Justice Department in June to settle civil actions against Low and his family "has no bearing" on Singapore's criminal probe, the city-state's police force said in an emailed statement Tuesday. An Interpol Red Notice seeking the location and provisional arrest of the financier, better known as Jho Low, remains in effect, the police said. Singapore charged Low in absentia and issued a warrant of arrest in 2016.
/jlne.ws/3W4Q4Hy
Donre Advisory Limited enters liquidation
FCA
On 11 July 2024, the directors of Donre Advisory Limited (Donre Advisory) appointed Sean Bucknall and Andrew Hosking of Quantuma Advisory Limited (Quantuma) as joint liquidators. Donre Advisory (firm reference number (FRN) 513993) has entered creditors' voluntary liquidation (CVL). It was previously known as Basi & Basi Financial Planning Limited.
/jlne.ws/3Ln0xt7
SFC sets clear timeline for implementing an uncertificated securities market in Hong Kong
Securities and Futures Commission (SFC)
The Securities and Futures Commission (SFC) today released consultation conclusions on its proposed subsidiary legislation, code and guidelines for implementing an uncertificated securities market (USM) in Hong Kong (Note 1).
/jlne.ws/4bQp8kG
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Copper Market's Biggest Whale Fuels Speculation of a Major Shift
Bloomberg News
For months, as copper spiked to record levels and then fell back down again, one key question has bubbled up across the metals industry: What is China's state grid operator up to? The world's single biggest buyer of copper, State Grid Corp. of China, has slowed its purchases of copper wire this year, while at the same time ramping up purchases of aluminum wire, a cheaper substitute. While arguably a natural response to soaring copper prices, the change has ignited a debate over whether there's something bigger going on - if one of the metals industry's most important but opaque buyers might be undergoing a shift in policy that could rock the global market.
/jlne.ws/3LofUBq
Japan keeps up yen warnings; 6 trillion yen, 2-day intervention suspected
Leika Kihara - Reuters
Japan stands ready to take all possible measures to counter excessively volatile currency moves, Chief Cabinet Secretary Yoshimasa Hayashi said on Tuesday, keeping markets on alert over the chance of renewed intervention to prop up the yen. Bank of Japan data released on Tuesday suggested Tokyo may have spent 2.14 trillion yen ($13.5 billion) intervening on Friday last week. Combined with the estimated amount spent on Thursday, Japan is suspected to have bought nearly 6 trillion yen via intervention last week.
/jlne.ws/4bQxmZX
Trump Trade Jumpstarts a Beleaguered Bond Bet; Fed cuts favor lower front-end yields, steeper curve; Rising deficits and Trump tax cuts weigh on long-end yields
Michael Mackenzie, Liz Capo McCormick, and Ruth Carson - Bloomberg
Politics has helped breathe new life into one of bond traders' most beleaguered bets, but only the Federal Reserve can give it a real turbo boost.mThe momentum behind Donald Trump's presidential bid has pressured long-term Treasury bonds, sending their yields higher. The calculation is that the Republican candidate's plans for tax cuts and and higher tariffs will ignite inflation and worsen US finances - even more so if the GOP gains control of Congress in a sweep.
/jlne.ws/3zJUDzy
Investors should focus less on rates and more on the money flows; Swings in central bank reserves provide a powerful indicator of liquidity in markets
Matt King - Financial Times (opinion)
The writer is founder and global markets strategist at Satori Insights.
Markets this year have followed the same law that held during much of 2023: whatever the news, equities and credit always rally. But there are growing reasons to doubt whether the pattern will hold. The problem is not with the economy. Recession fears are all but forgotten. Lower inflation means real wages are growing again. Corporate profits are strong, with little sign of pressure on record margins. Despite 20-year highs in interest rates, unemployment has ticked up only slightly from record lows. Credit concerns linger, but even the prospect of losses on some tranches of commercial property debt previously rated AAA shows little sign of proving systemic. Besides, were the outlook to deteriorate, central banks would simply move to additional rate easing.
/jlne.ws/3W4Dp7p
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | J.D. Vance Is an Oil Booster and Doubter of Human-Caused Climate Change; He once said society had a climate problem but changed his position sharply while seeking Donald Trump's endorsement in his Senate race.
Lisa Friedman - The New York Times
Senator J.D. Vance, Republican of Ohio, is a strong supporter of the oil and gas industry, opposes solar power and electric vehicles, and has said climate change is not a threat. It wasn't always that way.
/jlne.ws/3WosK94
What Trump 2.0 Could Mean for the Environment; If Donald Trump returns to the White House, he would likely face fewer legal and bureaucratic obstacles to dramatically remake the E.P.A.
Brad Plumer and Lisa Friedman - The New York Times
As president, Donald Trump's sweeping attempts to roll back federal environmental regulations were often stymied - by the courts, by a lack of experience, even by internal resistance from government employees.
/jlne.ws/4cFwCIF
China Solar Firms, Saudis to Build $3 Billion Worth of Projects
Foster Wong - Bloomberg
Two Chinese solar firms signed deals worth some $3 billion to build plants in Saudi Arabia, highlighting the oil-rich kingdom's campaign to boost renewable power production. TCL Zhonghuan Renewable Energy Technology Co., the world's second-largest maker of solar wafers, said on Tuesday it would partner with the Saudi sovereign wealth fund Public Investment Fund and Vision Industries Co. on a $2.08 billion plant.
/jlne.ws/3WlQVF4
The World Is Pushing Clean Energy. Oil Companies Are Thriving; High prices and growing demand have helped U.S. oil producers take in record profits despite global efforts to spur greater use of renewable energy and electric cars.
Rebecca F. Elliott - The New York Times
For all of the focus on an energy transition, the American oil industry is booming, extracting more crude than ever from the shale rock that runs beneath the ground in West Texas.
/jlne.ws/3Wo3nEt
BlackRock Hires Government Liaison as Texas Pushes Against ESG; Blackrock hired Danner Julie Fine and Amanda Albright - Bloomberg
BlackRock Inc. is bolstering its government-relations staff with a new hire in Austin as the money manager fends off criticism from Texas Republicans. The world's largest asset management company hired Danner Bethel as director of US state and local government affairs for the southern region, according to an internal memo seen by Bloomberg. Bethel previously served as a senior advisor at Crumpton Global, a strategic advisory firm, and worked in former President George W. Bush's administration.
/jlne.ws/3LqluTT
Wall Street Pushes Back After Activists Escalate Protests; Call between Citi executives and protesters ends in stalemate; KKR among firms underscoring role of profits in climate debate
Alastair Marsh - Bloomberg
Against a backdrop of intensifying climate protests targeting Wall Street, the heavyweights of US finance are pushing back against what they characterize as a fundamentally flawed debate.
For more than a month now, scores of activists have mounted near-daily protests outside the Manhattan headquarters of Citigroup Inc., with video footage showing tense scenes and a memo to staff urging employees to stay cool. The campaign - dubbed "Summer of Heat" - promises a steady escalation of disruptions and says its ultimate goal is to "shut down Wall Street."
/jlne.ws/3YaJguR
BP Secures Funds for Green Hydrogen Project at German Refinery; The Lingen site is among plants to receive government cash; Original partner Orsted pulled out of the project, BP says
Rachel Graham - Bloomberg
BP Plc secured funding in Germany to proceed with a green hydrogen plant, the first to be fully owned and operated by the UK oil major. The hydrogen, made from water and renewable electricity, will be used at BP's Lingen refinery and by local industries, the company said in a statement. BP recently scaled back plans for biofuels production at Lingen, the smaller of its two refineries in Germany. The clean hydrogen initiative, set to produce as much as 11,000 tons of the fuel a year, was among projects to receive funds Monday as the country's government accelerates plans to move away from natural gas and coal.
/jlne.ws/3zUUjxO
Lloyds Sued by UK Employees Disciplined Over Pro-Palestine Posts; Women sued bank alleging discrimination for religious beliefs; Lloyds Bank denies allegations of discrimination, lawyers say
Upmanyu Trivedi - Bloomberg
Lloyds Bank Plc was sued by two female employees who argued the company discriminated against them when they were disciplined after posting criticism of Israel on the bank's internal chat platform in 2021. Afra Sohail, a customer adviser, and Aunngbeen Khalid, a fair assessment adviser, claimed at a London tribunal they were discriminated against on the basis of their political and religious beliefs after the bank sanctioned and reported them to the Financial Conduct Authority for gross misconduct. Both still work for Lloyds. The lender denies all the allegations of discrimination.
/jlne.ws/4d3hPqR
Clean Energy Projects Are Stuck in a Years-Long Queue. Maryland and Neighboring States Are Pushing for a Fix
Aman Azhar - Inside Climate News
/jlne.ws/3WnEHvz
Trillion-dollar group urges government action to stop nature loss
Simon Jessop and Jake Spring - Reuters
/jlne.ws/3Lo4CNJ
UK's muddled web of carbon accounting 'not fit for a net zero future'
Michael Holder - BusinessGreen
/jlne.ws/4cToCDw
Soros' Open Society Foundations say their restructuring is complete and pledge $400M for green jobs
Thalia Beaty - Associated Press
/jlne.ws/3Y37dE8
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Ex-Jefferies Fund Manager in Fraud Suit Quits Weeks Into New Job
Carmen Arroyo - Bloomberg
Jordan Chirico, a former portfolio manager at a Jefferies Financial Group hedge fund, has left restaurant chain FAT Brands Inc. after about two weeks on the job as he faces fraud allegations tied to his previous role. Chirico stepped down as head of debt capital markets to focus on his defense in the litigation brought forward by 352 Capital, a Jefferies fund, according to a FAT Brands spokesperson. He had joined the restaurant chain in early July to work on the company's balance sheet. He has no replacement at this time, a representative said in an emailed statement.
/jlne.ws/3zF0FSa
JPMorgan Comes First in Wall Street's Bank Bond Sales Spree
Caleb Mutua - Bloomberg
JPMorgan Chase & Co. became the first of Wall Street's six biggest banks to tap the US investment-grade bond market after reporting second-quarter earnings, opening the door for an expected flood of issuance from the firms. The biggest US bank is selling bonds in as many as four parts, according to a person with knowledge of the matter. The longest portion of the offering, an 11-year security, may yield 1.35 percentage point above Treasuries, said the person, who asked not to be identified as the details are private.
/jlne.ws/3W2X4Vs
Morgan Stanley's wealth business slowdown overshadows profit beat
Reuters
A resurgence in investment banking helped Morgan Stanley's profit beat Wall Street expectations for the second quarter, but weakness in its key wealth business sent the bank's shares nearly 3% lower before the bell on Tuesday. Revenue growth in the wealth management segment slowed to 2% in the second quarter, compared with a 16% jump a year ago. Net new assets came in at $36 billion, below $89.5 billion last year.
/jlne.ws/3WpDcxg
Hedge Fund Segantii Has Returned More Than 90% of Client Money
Bei Hu and Nishant Kumar - Bloomberg
Segantii Capital Management Ltd. has returned more than 90% of its client capital, according to people familiar with the matter, less than two months after the hedge-fund firm told investors that it would give them back their money. The multistrategy hedge fund, which had $4.7 billion in assets under management at the end of May, returned about a third of its capital last month, Bloomberg News reported earlier. The second repayment took place in the past few days, said the people familiar with the matter, who asked not to be identified discussing private information. A third and final installment is expected to take place by October.
/jlne.ws/3zRFVGC
Deutsche Bank flouted international accounting rules, says watchdog; BaFin accuses lender of 2019 failure to disclose key details about losses at US operations
Olaf Storbeck - Financial Times
Deutsche Bank's 2019 financial report did not meet international accounting standards because it lacked key details about the lender's historic US losses, Germany's financial watchdog BaFin said on Tuesday. BaFin said the bank failed to disclose in 2019 that EUR2.1bn of deferred tax assets were linked to multiyear losses at the US operations, which were unprofitable at the time. Deutsche also failed to explain in its annual report how it expected to generate future profits in the region - a legally required disclosure under IFRS rules as the bank was hoping to offset the historic losses against future profits in the region, the watchdog said.
/jlne.ws/4cND804
Bill Ackman tells investors his 'notoriety' will boost new fund; Billionaire investor plans to use social media and Buffett-like annual meeting to connect with investors
Antoine Gara and Costas Mourselas - Financial Times
Bill Ackman has told potential investors in the US-based investment fund he is working to take public that his prolific social media presence will help the vehicle trade at a premium valuation. The billionaire hedge fund manager is soliciting investments for a listed fund of up to $25bn called Pershing Square USA, which if successful, would make it one of the largest initial public offerings of all time, rivalling oil major Saudi Aramco and Chinese tech group Alibaba.
/jlne.ws/3zG9bQJ
Shares in Charles Schwab fall as broker reports bank deposits dropping further
Jennifer Hughes - Financial Times
Shares in broker Charles Schwab fell as much as 5.5 per cent in pre-market trading after second-quarter figures showed bank deposits fell further as clients sought higher-earning options for their cash. Despite meeting or beating analyst forecasts for many of its business results, investors appeared to focus on the broker's deposits which dropped 17 per cent year-on-year to $252.4bn at the end of June.
/jlne.ws/3zRNFZc
Insurers Tied to Apollo, KKR Buy Mortgages Outright in New Twist; Insurers had about $60 billion of mortgages by end of 2023; Large alternative asset managers are leading the shift
Scott Carpenter - Bloomberg
Yield-hungry insurance firms are adopting an unconventional strategy: they're skipping mortgage-backed bonds and buying the underlying whole loans outright. It's a trend that's picked up pace over the last few years. Last year alone, insurers increased their holdings of residential mortgage loans by a whopping 45%, or about $20 billion, according to an analysis by Ellington Management Group.
/jlne.ws/3zKub8W
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Hot career trend 'hushed hybrid' has managers choosing the employees who have flex work arrangements; 'Hushed hybrid' is a viral trend in which managers make their own rules
Erica Lamberg - FOX Business
With thousands of American businesses mandating back-to-office protocols, some rogue managers are apparently stretching their authority and going against company policy. These rebellious managers are allowing staff to split their time between working from home and reporting to their workplace - even though their companies are now requiring in-person work.
/jlne.ws/3WkBInL
'No going back': trial of flexible working for frontline staff shows boost to job satisfaction and wellbeing; Experts say findings suggest flexibility is 'achievable for all', with majority of employees agreeing new arrangements are central to how they want to work in future
Isabel Jackson - People Management
Increasing flexibility for frontline and site-based roles leads to improved health and wellbeing, better work-life balance and increased job satisfaction, the results of a two-year trial by Timewise and the Institute for Employment Studies have shown. The Flex For All research project, funded by Impact on Urban Health, trialled giving frontline workers at Guy's and St Thomas's NHS Foundation Trust, construction firm Sir Robert McAlpine and retailer Wickes more input and control over their working patterns.
/jlne.ws/3xOQdqF
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Can Taking a Vacation Extend Your Life?; Wellness retreats are adding biohacking technology to the usual relaxation fare.
Jen Murphy - Bloomberg
At first glance, the crowd at Six Senses Ibiza looks typical of the revelers known to frequent Spain's legendary party island. Women in sparkly bikinis and macramé cover-ups dance with tanned, toned men as DJs spin poolside. But they've come for a different kind of cocktail. Inside RoseBar, the resort's on-site longevity club, doctors, nurses and nutritionists carefully administer everything from gut-scouring apple cider vinegar and cayenne shots to pills of magnesium to promote sleep. I was prescribed a $750 IV drip of NAD+, a coenzyme that plays a vital role in DNA repair. "Boosting" on it, says a statuesque staffer with dewy skin, is like drinking from the fountain of youth.
/jlne.ws/4d24BKT
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | China Investors Can Now Trade Saudi Stocks on Two ETFs
Bloomberg News
Two exchange-traded funds focused on Saudi Arabian stocks that debuted today in Shanghai and Shenzhen give Chinese investors an option to bet on equities in the oil rich nation as both countries strengthen ties. The China Southern Asset Management CSOP Saudi Arabia ETF QDII listed in Shenzhen after raising 634 million yuan ($87 million). A second fund, the Huatai-PineBridge CSOP Saudi Arabia ETF QDII, began trading in Shanghai after raising 590 million yuan. Both funds traded close to their listing prices as of 10:20 a.m. local time.
/jlne.ws/3Wq5gzp
China Copper Smelters Bracing for Shortage of Vital Scrap Metal
Bloomberg
Chinese copper smelters are bracing for a potential shortage of scrap metal as Beijing's efforts to create a level playing field have the unintended effect of reducing supply. The Fair Competition Review regulation, due to take effect in August, forbids tax benefits without either approval from the State Council or permission by existing law. Many of China's copper scrap processors rely on tax rebates from local governments, so may have to cut production, which will hit smelters that need the feedstock to make refined metal.
/jlne.ws/4d3WyNG
Azerbaijan to start climate fund with $500mn of oil money; COP29 host intends to launch venture with contribution from state company
Alice Hancock in Brussels and Attracta Mooney in London - Financial Times
Petrostate Azerbaijan has made its first token step to marshal climate finance ahead of the UN COP29 summit it will host in November, with plans to raise "at least" $500mn for green projects. Under the working title of "climate investment fund for future", Baku intends to launch the venture with a contribution from Azerbaijan's state oil company Socar, a senior COP29 official said. It would seek to raise further capital from other fossil fuel producers. The amount pales in comparison to the $30bn fund announced by the United Arab Emirates at the last COP28 in Dubai, with aims to mobilise $250bn of private sector investment for climate action by 2030.
/jlne.ws/3Y3WjOm
Japan stock exchange chief says reforms are cutting down 'aimless' listings; Hiromi Yamaji's campaign has helped lift benchmark stock index above its 1980s bubble-era peak
David Keohane and Kana Inagaki - Financial Times
The chief of Japan's stock exchange said fewer companies were listing "aimlessly" as a result of its corporate governance drive and rising shareholder activism. Hiromi Yamaji, the head of the Japan Exchange Group, which controls the Tokyo Stock Exchange, said in an interview with the Financial Times that in the past, companies "just kept listing because it was prestigious". He added: "But now that is changing due to increased expectations from shareholders and because of the exchange's own push to improve corporate governance."
/jlne.ws/3W8voi0
Jared Kushner's Affinity Buys Into One of Israel's Top Financial Firms
Adveith Nair - Bloomberg
Jared Kushner's Affinity Partners bought a $128.5 million stake in financial services firm Phoenix Holdings Ltd., marking the Saudi-backed company's second deal in Israel in under a year. The Miami-based private equity firm will buy a 4.95% stake in Phoenix from Centerbridge Partners and Gallatin Point Capital, according to a statement on Tuesday. Affinity also agreed to acquire a further 4.95% stake subject to approval from the Israeli regulator.
/jlne.ws/3LpftGT
Indian Bonds in Demand as Global Stock Investors Seek Collateral; Global funds have bought 1-2 year tenor debt for collateral; These tenors have seen flows of $1.5 billion since September
Subhadip Sircar - Bloomberg
India's sovereign bond market is attracting foreign equity investors, who are using the securities as collateral for trade margin requirements. The inclusion of the nation's government debt in JPMorgan Chase & Co.'s emerging- market bond index last month has enhanced their acceptance as collateral. This development is appealing to overseas investors, as they can now earn interest on their bond holdings, unlike with traditional cash or cash-equivalent margin postings.
/jlne.ws/4f4nUVI
Cold Storage Firm Lineage Seeks Up to $3.85 Billion in US IPO; REIT offering 47 million IPO shares for $70 to $82 each; Firm could have a market value of as much as $19.2 billion
Amy Or and Bailey Lipschultz - Bloomberg
Temperature-controlled storage and logistics giant Lineage Inc. is seeking to raise as much as $3.85 billion in its initial public offering. Novi, Michigan-based Lineage is offering 47 million shares for $70 to $82 each, according to a filing with the US Securities and Exchange Commission confirming an earlier Bloomberg News report. The listing could give the real estate investment trust a market value of about $19.2 billion, according to Bloomberg calculations.
/jlne.ws/3S8Zxwg
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