| May 29, 2025 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
Today's lead story from the Financial Times was nothing if not predictable, no pun intended. The story is titled "Prediction market with Trump ties threatens US sports bet sector" with the subheadline "Kalshi counts Donald Jr as an adviser and is not subject to gambling laws because it is regulated as a derivatives platform."
The emergence of prediction markets like Kalshi, Crypto.com, and Robinhood, exploiting regulatory arbitrage by operating under Commodity Futures Trading Commission (CFTC) oversight rather than state gambling laws, is shaking up the U.S. sports betting industry. These platforms offer event contracts on sports outcomes, circumventing state regulations that govern traditional sportsbooks such as DraftKings and Flutter. This loophole enables them to evade state taxes, consumer protection regulations, and responsible gaming requirements, creating an uneven playing field and undermining the established market's regulatory framework.
This regulatory arbitrage is particularly problematic for the derivatives industry, which has long battled accusations of being akin to gambling rather than legitimate risk management. By exploiting gaps between federal and state oversight, these prediction markets risk reinforcing the perception that derivatives and related financial products are merely speculative bets. Instead of fostering trust and transparency, they deepen skepticism among regulators and the public, potentially inviting harsher restrictions that could stifle innovation and harm the industry's credibility.
The derivatives industry should focus on harmonizing regulatory standards rather than seeking loopholes. True progress depends on embracing robust consumer protections, transparent operations, and consistent oversight that align with the sector's risk management purpose. Regulatory arbitrage undermines these goals by prioritizing short-term gains over long-term stability and integrity, risking damage to the entire financial ecosystem.
Ultimately, regulatory arbitrage is the wrong path for derivatives markets. It exacerbates negative stereotypes, weakens regulatory frameworks, and poses a threat to the industry's future. The derivatives sector must reject such tactics and work collaboratively with regulators to build a resilient, trustworthy market that balances innovation with responsible governance.
Transformers are in the spotlight, and I am not talking about Optimus Prime destroying Chicago while defending Earth from the Decepticons. A Bloomberg report is titled "How a Shortage of Transformers Threatens Electricity Supply" with the subheadline "A crucial device is hampering efforts to build global electricity supply, just as the demand is rising from data centers, electric cars, and heat pumps."
A global shortage of transformers is threatening efforts to build and maintain reliable electricity supplies just as demand surges from data centers, electric vehicles, and heat pumps. This bottleneck, highlighted after a transformer failure caused a major outage at Heathrow Airport in London, underscores the essential role these devices play in modern power grids, raising voltage for efficient long-distance transmission and lowering it for safe use in homes and businesses. Despite massive investments in clean energy and grid upgrades, the lack of manufacturing capacity and trained personnel, along with bureaucratic delays and high costs, are slowing the transition to a fully electrified, decarbonized economy.
Transformers enable the world to use alternating current (AC) by adjusting voltage at different points in the grid, a system championed by George Westinghouse over a century ago. As electricity demand rises in the U.S. and Europe for the first time in decades, the shortage exposes vulnerabilities in global infrastructure, from permitting hurdles to supply chain disruptions. The incident at Heathrow, which cost £60 million and stranded thousands of travelers, vividly illustrates how a single transformer failure can have a profoundly outsized impact on critical infrastructure and everyday life.
The word of the day is: TACO.
If my brother Scott read JLN, this would be a story for him. Actually, he could probably write this story. The Wall Street Journal has a story titled "The Best Coffee Makers, No Matter How You Take Your Cup" with the subheadline "These are the best of the best for drip coffee, cold brew and espresso." Scott is a coffee snob, if you haven't guessed.
Here are the headlines from in front of FOW's paywall from some recent stories: Cboe sets June 9 for crypto futures migration, ANALYSIS: Some crypto liquidity nearing daily levels of traditional assets - panel, ANALYSIS: EEX eyes new energy products amid Asian expansion, Cboe president Howson's departure in August to trigger reshuffle, CFTC's Romero calls for 'steady, consistent path' amid deregulation and False positives in trade surveillance causing 'alert fatigue' - Eventus.
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:
- Cboe Global Markets Announces Departure of Global President Dave Howson from Cboe.
- Semiconductor ETF options show caution ahead of Nvidia results from Reuters.
- Option traders are analyzed to expect Ethereum to outperform Bitcoin.; Deribit's 25 Delta Risk Reversal data supports a strong upward outlook for Ethereum. from Bloomingbit. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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OCC's Julie Bauer: Adapting to Change, From Tech to Regulators, With a Side of Education JohnLothianNews.com PALM BEACH GARDENS, Fla.-(JLN)-May 29, 2025 -At this year's Options Industry Conference, Julie Bauer of the Options Clearing Corporation (OCC) offered a candid look at how her organization is keeping pace with a financial world that seems to shift faster than a meme stock's price. "We think a lot about financial risk management-that's really at the core of what we do," Bauer said in an interview with John Lothian News. "So we look to the trends in the market, we look to adjust as best we can. We are, as you know, systemically important and very heavily regulated, so most of the adjustments that we make go through a very detailed review and comment process." Watch the Julie Bauer Video » Ron Wentzell - Three Fires Council of Scouting America Watch the Ron Wentzell Video » Kevin "Lex" Luthringshausen - Tradier Watch the Kevin "Lex" Luthringshausen Video »
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Google Warns Quantum Computers Could Crack Bitcoin-Like Encryption 20 Times Faster Than Expected
Aniket Verma - Benzinga
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. New research by Google suggested that RSA encryption, a critical security feature used in securing Bitcoin (CRYPTO: BTC), may be more susceptible to quantum computing attacks than previously anticipated.
/jlne.ws/44U7GvS
***** Enjoy your Bitcoin while it lasts.~JJL
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Quantum computing could make Bitcoin and crypto a lot less secure
Ben Kesslen - Quartz
A new study from Google Researchers is raising questions about whether quantum computing will hamper your ability to keep your crypto wallet secure. Google's (GOOGL) Craig Gidney, a quantum research scientist, and Sophie Schmieg, a senior staff cryptography engineer, published a blog post on Friday showing a quantum computer could potentially break RSA encryption - the public-key encryption algorithm used to secure data such as for cryptocurrencies - with 20 times fewer quantum resources than they previously believed.
/jlne.ws/4kDBYaL
****** Quantum computing is a solution in search of a problem. Oo, I see it!~JJL
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Eric Trump Says He'd Love to See Some Big Banks 'Go Extinct'
Olga Kharif - Bloomberg
Eric Trump told attendees at a cryptocurrency conference that he wants some big banks to "go extinct," echoing complaints from other members of the Trump family about the traditional financial system. "Honestly, I would love to see some of the big banks go extinct, because, honestly, they deserve it," Trump said Wednesday while speaking on a panel with his brother, Donald Trump Jr., at the Bitcoin 2025 conference in Las Vegas.
/jlne.ws/4jtndqf
***** Eric Trump does not speak much, and in this case, he did not say very much. He just talked his crypto position.~JJL
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Wednesday's Top Three
Our top clicked story Wednesday was The Growing Scandal of $Trump, a video and transcript of The Ezra Klein Show via The New York Times. Second was Farewell Remarks by CFTC Commissioner Christy Goldsmith Romero: The Future of Financial Services Regulation, from the CFTC. Third was a tie between two FOW stories, ANALYSIS: Firms stress concerns about approval process for perpetual futures and False positives in trade surveillance causing 'alert fatigue' - Eventus.
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| Lead Stories | Prediction market with Trump ties threatens US sports bet sector; Kalshi counts Donald Jr as an adviser and is not subject to gambling laws because it is regulated as a derivatives platform
Mari Novik, Marianna Giusti and Philip Stafford - Financial Times
Flutter and DraftKings are weighing their responses to a new threat to their dominance of the $14bn US sports betting sector, as prediction markets led by politically connected Kalshi exploit a regulatory quirk to offer wagers on contests even where gambling groups cannot. Prediction sites allow users to stake money on anything from economic data to the weather. Because their products are structured as peer-to-peer trades, providers are regulated not as betting groups but derivatives platforms, allowing them to bypass sports gambling bans in 11 states.
/jlne.ws/4jmsGPz
US trade court invalidates Donald Trump's reciprocal tariffs; Panel of judges finds president did not have the power to introduce levies using the legislation he cited
Kaye Wiggins and James Politi - Financial Times
A US court invalidated Donald Trump's "liberation day" tariff scheme, in a blow to the White House that could throw the president's global trade policy into disarray. The US Court of International Trade found on Wednesday that the president did not have the authority to introduce the levies using the emergency economic powers legislation he cited when he imposed sweeping tariffs on countries around the world last month. The ruling is a dramatic twist in the trade wars that Trump launched in the early months of his presidency. Even if the ruling is appealed, it will for now embolden opponents of the tariffs in corporate America, foreign capitals and the US Congress who have been trying to persuade Trump to roll back the levies.
/jlne.ws/4k8PH9I
The 'TACO Trade' That Has Trump Fuming; President says 'Trump Always Chickens Out' claim is wrong and tariff changes are negotiation
Karen Langley and Caitlin McCabe - The Wall Street Journal
President Trump took aim Wednesday at those on Wall Street and elsewhere who have questioned why he has moved away from some of his most severe trade policies. The president rejected claims that he is backing down on tariffs, saying his strategy involves setting a "ridiculous high number" before negotiating it down in exchange for concessions. "You call that chickening out," Trump said in the Oval Office, adding that "it's called negotiation."
/jlne.ws/3Hc4SR7
Small Companies Keep Going Public Even as Russell 2000 Struggles
Natalia Kniazhevich - Bloomberg
An increasing number of small-capitalization companies are going public this year despite the Russell 2000 Index's underperformance, as investors shrug off trade and inflation risks in search of returns. "The investment community is thirsty again for IPOs," said Will Braeutigam, US capital markets transactions leader at Deloitte & Touche LLP.
/jlne.ws/43gPYBA
The bond vigilantes are on the prowl; In a number of key markets, investors are losing patience with governments still wanting to borrow like there's no tomorrow
Katie Martin - Financial Times
The bond vigilantes are growling and baring their teeth, and authorities around the world (most of it, anyhow) are doing the right thing, and backing away. But the risk of bond wobbles spiralling in to a broader outbreak of nerves across markets is high. From the US to the UK and Japan, bond investors are making it clear they are unwilling to be used as a low-cost cash machine for government spending for ever.
/jlne.ws/45v3liP
Desperately coining new Mexican-flavoured market acronyms in an attempt to go viral; Acrostica? We hardly even ...
Louis Ashworth - Financial Times
It's Robert Armstrong's world, and we're just living in it. Borg: President Donald Trump bristled at suggestions that Wall Street believes he's ultimately unwilling to follow through on extreme tariff threats, saying his repeated retreats are instead part of a strategy to exert trade concessions. "It's called negotiation," Trump said on Wednesday, adding that he intentionally would "set a number at a ridiculous high number" and then "go down a little bit" as part of talks.
/jlne.ws/3SVYKif
Goldman Says Trump Can Offset Tariff Ruling With Other Tools
Katia Dmitrieva - Bloomberg
A court ruling that seeks to block President Donald Trump's "Liberation Day" tariffs represents only a temporary setback to his trade agenda and can be offset by other taxes, according to analysts at Goldman Sachs Group Inc. The judgment by the US Court of International Trade halts 6.7 percentage points of levies announced this year and the White House could use other tariff tools to make up for that, the bank's economists said in a note to clients Thursday.
/jlne.ws/4kya2oO
Cboe global president departs after three year tenure; The move will see the expansion of the current global head of derivatives and chief operating officer roles to drive growth for Cboe's data vantage business.
Natasha Cocksedge - The Trade
Dave Howson is set to step down from his role as executive vice president and global president of Cboe Global Markets, effective 1 August 2025. The move sees Howson returning to the UK after serving three years in the role, based in Chicago. The departure will see greater expansion within the company, and Cathy Clay, executive vice president and global head of derivatives will widen her role to provide oversight of the Cboe data vantage business, alongside her current responsibilities covering the global derivatives business of equity and index options and futures.
/jlne.ws/4kzVYM5
Fed feared that loss of 'haven' status would hit US economy; Minutes showed officials worried about 'long-lasting' effect of market turmoil after President Trump launched trade war
Claire Jones - Financial Times
Federal Reserve officials have warned that the loss of the US's safe-haven status triggered by President Donald Trump's global trade war could have "long-lasting" effects on the country's economy. Minutes from the Federal Open Market Committee's early May vote, published on Wednesday, indicated that some rate-setters focused on the fall in prices for US government debt, equities and the dollar in the weeks after the president announced sweeping tariffs on trading partners.
/jlne.ws/3Hg0DUA
Vance Vows to Champion the Crypto 'Movement'; Speaking at a bitcoin conference in Las Vegas, the vice president says Trump will sign a bill that establishes rules for stablecoins
Alexander Osipovich - The Wall Street Journal
Vice President JD Vance promised a cheering audience of bitcoin enthusiasts on Wednesday that the Trump administration would press ahead with crypto-friendly policies. Vance's speech at the Bitcoin 2025 conference in Las Vegas marked a historic advance for the crypto industry, which has evolved from a ragtag band of libertarian rebels into a political force with substantial influence in the White House and on Capitol Hill. While his remarks were short on concrete policy pronouncements, Vance made it clear that the administration endorsed the crypto industry's vision of itself as a force for positive technological change. "This is a movement, and I'm proud to stand with you today," Vance said.
/jlne.ws/3Heghj6
Fannie and Freddie Get a Guarantee; Also endowment taxes, DJT and Gamestop Bitcoin treasuries and Bitcoin theft.
Matt Levine
Implicit guarantee
I'm sorry but this is a very funny way to do financial regulation:
President Donald Trump said that the US government would retain guarantees and an oversight role over Fannie Mae and Freddie Mac even as he pursues a public offering for the mortgage giants. "I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the US Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President," Trump wrote Tuesday night in a post on his Truth Social platform.
/jlne.ws/43YjaMX
XRP Army Is Truly Global As CME Data Reveals Nearly Half of XRP Futures Trading Occurs in Non-U.S. Hours
Omkar Godbole - CoinDesk
The CME's recently launched XRP XRP futures underscore the cryptocurrency's international appeal, with nearly half of its trading volume occurring outside U.S. trading hours. The regulated XRP futures - standard and micro-sized contracts - began trading on the global derivatives giant a week ago, registering a total trading volume of 4,032, worth $86.6 million in the first six trading days, the exchange's spokesperson told CoinDesk.
/jlne.ws/454r89r
'From Boomers To Bitcoin': Investment Firm Sees $4.6 Trillion Flowing Into Digital Assets Amid 'Great Wealth Transfer'
David Okoya - Benzinga
Humanity is in the midst of the greatest generational wealth transfer yet. Big changes in everything from consumer behavior to investment strategies are afoot. One sector expected to benefit is the cryptocurrency market. Digital asset-focused investment firm Tephra Digital on Wednesday estimated that $4.6 trillion could flow into the cryptocurrency market by 2049 due to "the great wealth transfer."
/jlne.ws/4kKxYFI
You Need to Pay More Attention to Your Pension; If you don't, then the risk is that governments will grow increasingly keen to invest it for you.
John Stepek - Bloomberg
You need to pay attention to your pension
A very interesting piece of research crossed my desk from brokers Stifel this morning. It was all about private equity investment trusts. The no-nonsense headline: "Realisations dry up." Long story short, funds have been struggling to offload their investments, more so than the Stifel team had hoped. During the first quarter of this year, "activity remained subdued, with many exit processes apparently locked."
/jlne.ws/4dGGrr9
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| Trade War and Tariffs | | A roundup of today's trade war and tariff news and the global economic ripple effects shaping markets, industries, and investment strategies. | US trade court blocks Trump's sweeping tariffs. What happens now?
Peter Hoskins, Yang Tian - BBC News
A US federal court has blocked President Donald Trump's sweeping global trade tariffs, in a major blow to a key component of his economic policies. The Court of International Trade ruled that an emergency law invoked by the White House did not give the president unilateral authority to impose tariffs on nearly every one of the world's countries.
/jlne.ws/43Brsdo
Dollar turns lower as investors prepare for court battle on tariffs
Karen Brettell - Reuters
The U.S. dollar fell on Thursday, reversing earlier gains, as investors prepared for a battle over U.S. President Donald Trump's tariff agenda after a U.S. trade court on Wednesday blocked most of the proposed trade levies. The Court of International Trade also ordered the Trump administration to issue new orders reflecting the permanent tariff injunction within 10 days. The Trump administration minutes later filed a notice of appeal and questioned the authority of the court.
/jlne.ws/4jIJ1hL
Goldman, Morgan Stanley Say Trump Can Deploy Other Tariff Tools
Katia Dmitrieva and Christopher Anstey - Bloomberg
Two of Wall Street's top investment banks cautioned that the impact of a court ruling striking down many of President Donald Trump's tariff measures may prove limited, given that the administration has other avenues to impose import duties. "The tariff levels that we had yesterday are probably going to be the tariff levels that we have tomorrow, because there are so many different authorities the administration can reach into to put it back together," Michael Zezas, Morgan Stanley's global head of fixed income and thematic research, said on Bloomberg TV Thursday.
/jlne.ws/4jp3A2e
How Stephen Miran-a Harvard-trained former free market champion-became Trump's top ideologue on tariffs
Shawn Tully - Fortune
Back in 2010, Stephen Miran had one of those once-in-a-lifetime aha moments that few people experience in their careers. "It was during my first job working as an economist for a currency-focused hedge fund," Miran recalled during a phone interview in early May. "The currency markets are a bit of a Wild Wild West. All sorts of things happen that shouldn't happen in an economics textbook. Heavily managed currencies in some countries were making markets behave in weird ways." What shocked the twentysomething Wall Streeter most from this "front-row seat" was the way China manipulated "currency channels" to ensure that its renminbi stayed way undervalued versus the dollar.
/jlne.ws/3FcvIYI
Singapore deputy PM Gan calls for 'new alliances' amid U.S. tariffs; City-state's tariff negotiator warns rules-based trade order being 'undermined'
Jada Nagumo and Iyo Senga - Nikkei Asia
Singaporean Deputy Prime Minister Gan Kim Yong urged countries across Asia to "forge new alliances" in a bid to combat common trade policy issues amid a restructuring in the global trade system following sweeping U.S. tariffs. Gan, who as the city-state's trade and industry minister leads tariff negotiations with Washington, was speaking at Nikkei's Future of Asia forum in Tokyo on Thursday, where he expressed that the "rules-based order in trade is being undermined."
/jlne.ws/450je0C
Citi's Fraser Says Clarity From Trump Would Unleash IPO Markets
Jennifer Surane - Bloomberg
Citigroup Inc. remains hopeful that the long-awaited turnaround in investment-banking markets will begin as soon as corporations and business leaders get more clarity on Trump administration policy, but that might have to wait until next year. President Donald Trump's top lieutenants have been clear that it will take "a bit of time" to offer a clearer direction on areas like their plans for taxes, changes to tariff policy and moves to deregulate industry, Citigroup Chief Executive Officer Jane Fraser said in an interview with Fox Business Thursday.
/jlne.ws/43lyTq4
If America Doesn't Want Harvard, Somebody Else Will; Defunding academic research is a spectacular act of self-harm. If the US persists, other countries are right to step in.
The Editorial Board - Bloomberg
/jlne.ws/4mQRh1U
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| World Conflicts | | News about various conflicts and their military, economic, political and humanitarian impact. | Ukraine Invasion
China Cut Drone Sales to West But Supplies Them to Russia, Ukraine Says
Alberto Nardelli and Daryna Krasnolutska - Bloomberg
Ukrainian President Volodymyr Zelenskiy said China has stopped selling drones to Kyiv and other European nations while continuing shipments to Russia. "Chinese Mavic is open for Russians but is closed for Ukrainians," Zelenskiy told a group of reporters on Tuesday. "There are production lines on Russian territory where there are Chinese representatives," he added. The Mavic is a popular civilian quadcopter, normally used for aerial photography, which can be adapted to carry explosives. On the battlefield, Mavics can be used both for surveillance and to attack enemy targets.
/jlne.ws/4dEpLR0
US Pauses New Russia Sanctions to Keep Ukraine Deal Talks Alive, Trump Says
Jennifer A Dlouhy and Hadriana Lowenkron - Bloomberg
President Donald Trump said he's holding off on new sanctions against Russia in order to preserve the chance for a deal with President Vladimir Putin to end the war in Ukraine. "If I think I'm close to getting a deal, I don't want to screw it up by doing that," Trump said Wednesday at the White House. "Let me tell you, I'm a lot tougher than the people you're talking about."
/jlne.ws/4kDW3O9
UK Taps Ukraine Lessons to Plow £1 Billion Into Warfare Systems
Ellen Milligan - Bloomberg
The UK will invest more than £1 billion ($1.4 billion) in a new digital targeting system to allow the country's armed forces to pinpoint and eliminate enemy targets more swiftly as part of a forthcoming revamp of Britain's defensive capabilities. In its strategic defense review, expected to be published in full next week, the UK will also set up a new Cyber and Electromagnetic Command to protect military networks against tens of thousands of cyber attacks a year and help coordinate Britain's own cyber operations, the Ministry of Defence said Thursday in a statement. The command will also lead operations to jam enemy signals to drones and missiles and help intercept military communications.
/jlne.ws/45t6W0Y
Russia Appears to Launch New Offensive in Ukraine Amid Peace Talks; Moscow's dual campaign of intensified frontline attacks and bombardment of Ukrainian cities has further reduced the prospects for an end to the fighting.
Anatoly Kurmanaev - The New York Times
After incremental gains for months, Russian forces are advancing on Ukrainian battlefields at the fastest pace this year. They are bombarding Ukrainian cities with some of the biggest drone and missile strikes of the war. They have even opened another front in northern Ukraine. The Kremlin's summer offensive appears to be underway.
/jlne.ws/4jt6Jhv
Middle East Conflict
Israel Says It Destroyed Drones With Lasers; Lasers are less expensive than conventional air-defense weapons and less proven
Dov Lieber - The Wall Street Journal
Israel said it used a laser air-defense system to shoot down drones in wartime, deploying weapons that would mark a technological leap on the battlefield. Israel's Defense Ministry said Wednesday that it has intercepted drones with laser-powered weapons more than 40 times since its multifront war began after Hamas attacked from Gaza in October 2023. Most of the drones the lasers destroyed came from Lebanon, said Daniel Gold, head of the ministry's directorate of defense research and development.
/jlne.ws/4kdDDUD
IDF destroys Hamas weapon caches, hundreds of meters of terror tunnels in Gaza
Jerusalem Post
The IDF reported that dozens of terrorists have been killed during the broader campaign, and extensive infrastructure has been destroyed. The Nahal Brigade Combat Team, under the 162nd Division, located and destroyed rocket launchers, weapons stockpiles, booby-trapped structures, and observation posts during operations in the Gaza Strip, the IDF confirmed on Thursday.
/jlne.ws/4kqOQkT
Israel Bombards Gaza Amid Chaos Surrounding Aid Handouts; Israeli attacks on Gaza have killed more than 60 people over the past day, according to local health officials.
Isabel Kershner and Rawan Sheikh Ahmad - The New York Times
Israel bombarded Gaza again on Thursday and local health officials said more than 60 people had been killed in the attacks over the past day, as hungry Palestinians scrambled for food handouts under a new Israeli-backed aid operation that has been heavily criticized. The United Nations says the new aid system, known as the Gaza Humanitarian Foundation, is insufficient to meet basic needs for survival. In a reflection of the chaotic atmosphere surrounding distribution and the desperation of much of the population in Gaza, a large crowd of hungry people broke into a warehouse run by the U.N.'s World Food Program on Wednesday in search of food.
/jlne.ws/4kK2Tlt
Other Conflicts
Lutnick Defends US Tariffs as Key to India-Pakistan Ceasefire
Swati Gupta - Bloomberg
The ceasefire between India and Pakistan earlier this month was only achieved after US President Donald Trump offered the two countries trading access, Commerce Secretary Howard Lutnick said in a legal submission defending the White House's tariff policy. Lutnick made the submission in response to a court challenge filed on behalf of business owners against the Trump administration's tariff policy. On Wednesday, the US Court of International Trade ruled the vast majority of Trump's global tariffs illegal and blocked them.
/jlne.ws/43C9W8C
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Shanghai Futures Exchange to open wider for foreigners in bid to internationalise renminbi
Lewis Jackson - Reuters
The Shanghai Futures Exchange (ShFE) released draft proposals on Tuesday to further open up domestic futures to overseas investors and brokers as part of an effort to help internationalise the renminbi. China is the world's largest consumer of industrial metals by far, but much of the trade is priced by overseas benchmarks. ShFE has long been working on plans to build its global presence and challenge the dominance of the rival London Metal Exchange (LME).
/jlne.ws/4kBHWc2
RBC joins LCH CDSClear as clearing member; Royal Bank of Canada (RBC) is the first Canadian member.
Claudia Preece - The Trade
Royal Bank of Canada (RBC) has joined UK clearinghouse LCH CDSClear as a clearing member. The bank joins CDSClear as a market maker in both European and US indices. LCH CDSClear expanded its client clearing services to US credit derivatives participants in 2024. This latest development follows on from RBC and its Channel Islands subsidiary joining LCH RepoClear as clearing members in 2020, with the move at the time offering RBC additional financing liquidity to support its European client activity.
/jlne.ws/4dD78ww
BME and the financial community emphasize the importance of promoting IPOs on the second day of the Medcap Forum
BME-X
A week after the presentation of BME Easy Access, the new IPO modality, the second day of the Medcap Forum has focused on the importance of promoting the arrival of new listed companies to the capital markets, as well as the return of the retail investor to the stock market. The first panel of the day, moderated by Roger Freixes, partner at Cuatrecasas, featured the participation of Ángel Benito, general director of markets at CNMV; Carla Díaz, general director of the Treasury and Financial Policy at the Ministry of Economy, and Javier Esteve, managing director ECM at Morgan Stanley.
/jlne.ws/4kbqJGN
Hong Kong, Saudi Bourses Seek Deeper Ties to Spur Trading
Filipe Pacheco - Bloomberg
Hong Kong and Saudi Arabia are ramping up efforts to boost trading activity as inflows to their exchange-traded funds wane and cross-listings fail to materialize. Hong Kong Exchanges & Clearing Ltd. Chief Executive Officer Bonnie Chan mentioned "increasing connectivity and opportunities" between the city, China and the Middle East while speaking at the Capital Markets Forum on Thursday, which was co-hosted with the Tadawul stock exchange. Her counterpart at the Saudi bourse, Mohammed Al-Rumaih, said it is necessary to "enhance awareness" between both markets.
/jlne.ws/451a5VK
Mpumelelo Secondary School's 'Tha Brave Ones' Triumph in April's JSE Investment Challenge
JSE
The school has consistently excelled in the competition, earning multiple top honours over the years. The school's continued success shines a light on what can be achieved when financial literacy programmes such as the JSE Investment Challenge are designed to actively engage young minds - they can inspire curiosity and confidence, resulting in tangible outcomes. The JSE Investment Challenge, now in its 52nd year, is more than a competition- it is a national movement that cultivates financial literacy and investment knowledge among high school learners and university students. Each month, teams from across the country simulate trading on the JSE, applying real-world strategies in a risk-free environment that mirrors the dynamics of the financial markets. Monthly prizes are awarded to the top-performing teams, while the overall winners will share R1 million in prizes, including a trip to an international stock exchange for tertiary-level participants.
/jlne.ws/3Z7b4zN
LME Clear Margin Parameters May 25
LME
LME Clear Members are advised that new SPAN1 margin parameters have been set, as marked in the SPAN Margin Parameter spreadsheet.
/jlne.ws/4knarLc
RBC joins LCH CDSClear as first Canadian member
LSEG
LCH CDSClear offers the widest breadth of products of any credit CCP globally.
LSEG today announces that Royal Bank of Canada (RBC) has joined LCH CDSClear as the first Canadian clearing member, providing them access to the broadest range of credit products eligible for clearing, enabling them to benefit from margin and operational efficiencies across their CDS portfolio. RBC joining CDSClear, as a market maker in both European and US indices, allows them to benefit from a growing pool of CDS liquidity. LCH CDSClear has seen significant growth this year so far and registered record clearing volumes for US$ and EUR Indices inQ1 2025. A record US$1tn of CDX and iTraxx indices notional was cleared in Q1 2025, up 332% vs Q1 2024. A record EUR1.58trn of European iTraxx indices notional was also cleared, up 52% vs Q1 2024.
/jlne.ws/4kh96p5
Nasdaq Executives to Present at Upcoming Investor Conferences
Nasdaq
Nasdaq (Nasdaq: NDAQ) will be presenting at the following conferences in June with webcasts available at Nasdaq's Investor Relations website: ir.nasdaq.com/events.cfm.
/jlne.ws/3FvGCJ2
EBS Market on CME Globex Notice: May 26, 2025
CME Group
/jlne.ws/3HvPxdZ
Application for Copper Regularity
CME Group
/jlne.ws/3Z8PXgt
Withdrawal of Increase in Soybean Meal Regularity
CME Group
/jlne.ws/4dHbHWQ
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Wolters Kluwer to Buy Global Legal Software Provider Brightflag for $480 Million; In 2024 Brightflag reported a 36% increase in revenue
Andrea Figueras - The Wall Street Journal
Wolters Kluwer said it has signed an agreement to acquire global legal software provider Brightflag for around 425 million euros, equivalent to $480 million, in cash. The Amsterdam-listed information-services company said Thursday that the acquisition, which is expected to be completed next month, will strengthen the group's presence among mid-size corporations in the U.S. and Europe.
/jlne.ws/4jmvNXC
Telegram Raises $1.7 Billion Convertible Bond to Fund Debt Swap
Olga Voitova - Bloomberg
Telegram raised $1.7 billion from convertible bonds that it will use to retire existing debt and lengthen the maturity of its debt. The fast-growing messaging platform will use some of the proceeds from the new five-year notes to tender for $955 million of debt due in 2026, according to data compiled by Bloomberg. The transaction also raised $745 million of new funds.
/jlne.ws/3FCzFWx
DeepSeek Says Upgraded Model Reasons Better, Hallucinates Less
Luz Ding - Bloomberg
The Chinese startup DeepSeek said Thursday that its upgraded artificial-intelligence model can perform mathematics, programming, and general logic better than the previous version, while hallucinating less. The upgrade to its R1 model - which stunned the AI world in January by rivaling the systems of much-larger US developers despite being built at what the Chinese startup said was a fraction of the cost - features a greater depth of reasoning, DeepSeek said in a post on the AI model platform Hugging Face.
/jlne.ws/4kiYSEI
Delaware AG Seeking Bank to Advise on OpenAI Restructuring
Sabrina Willmer and Malathi Nayak - Bloomberg
Delaware's attorney general is planning to hire an investment bank that would advise her office as it examines OpenAI's restructuring plans aimed at drawing more investors, according to a person familiar with the matter. The bank would help Delaware Attorney General Kathy Jennings complete an independent valuation of OpenAI's assets to fulfill her responsibilities to review the restructuring plan, according to the Wall Street Journal, which reported earlier on the matter.
/jlne.ws/4mAJK76
Vietnam's AI Ambitions Hinge on One $6.8 Billion Tech Company; FPT Corp. faces challenges from rivals to US tariffs in its global expansion journey.
John Boudreau and Nguyen Xuan Quynh - Bloomberg
Four decades ago, Truong Gia Binh set up a technology company using a single computer in a room loaned by his then-father-in-law, General Vo Nguyen Giap, revered for leading Vietnamese troops in defeating the French and US militaries.
/jlne.ws/3Z8Ndjj
Donald Trump orders US chip software suppliers to stop selling to China; Move by Washington is latest effort to stymie geopolitical rival's technological advance
Demetri Sevastopulo, Zijing Wu and Michael Acton
The Trump administration has told US companies that offer software used to design semiconductors to stop selling their services to Chinese groups, in the latest attempt to make it harder for China to develop advanced chips. Several people familiar with the move said the US Department of Commerce had told so-called electronic design automation groups - which include Cadence, Synopsys and Siemens EDA - to stop supplying their technology to China.
/jlne.ws/3Z1Tdu7
US wins if DeepSeek runs on American AI chips, Nvidia CEO says; Trump export controls expected to deliver $8bn loss in H20 chip revenue in Q2
Yifan Yu - Nikkei Asia
/jlne.ws/45t8Q1C
Cowie heads new role at Broadridge
Clelia Frondaroli - Asset Servicing Times
/jlne.ws/3Z8BlOh
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| Cybersecurity | | Top stories for cybersecurity | Infosecurity Europe 2025 is where the battle for cybersecurity will be decided
Jim Banks - Tech Monitor
At this year's event, CISOs from across the sector will pick apart the latest threats to corporate cybersecurity and showcase the most sophisticated countermeasures available.
/jlne.ws/44UjXQY
SailPoint: Is Cybersecurity Prepared for Agentic AI's Rise?; New research from SailPoint has revealed that the rapid adoption of agentic AI will necessitate a concurrent expansion of cybersecurity systems
SailPoint research has revealed that 96% of tech professionals see AI agents as growing security threats but 98% plan to expand their use of agentic tech
James Darley - Technology Magazine
A recently published research study from US-based identity security firm SailPoint has called attention to a striking contradiction in the attitudes of technology executives towards AI. The study shows that, above all else, the tech sector is concerned about agentic AI - the form of artificial intelligence that can act independently of human direction.
/jlne.ws/4500azM
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| Cryptocurrencies | | Top stories for cryptocurrencies | JD Vance touts bitcoin's emergence and hails pro-Trump crypto investors; US vice-president promises 'pro-innovation' regulatory agenda in speech at Las Vegas conference
Alex Rogers - Financial Times
JD Vance has hailed the arrival of cryptocurrencies into the US economy's "mainstream", vowed to establish "pro-innovation" rules for digital assets, and praised the crypto billionaires who backed Donald Trump's White House bid last year. Speaking to thousands of orange-clad bitcoin investors in Las Vegas on Wednesday, the US vice-president touted the emergence of crypto, and predicted that the number of Americans holding bitcoin would soon double.
/jlne.ws/3SUBOzY
Crypto crime spills over from behind the screen to real-life violence
Dave Collins - Associated Press Finance
A man says he was tortured for weeks in a New York townhouse. Another in Paris was held for ransom and his finger cut off. A couple in Connecticut were carjacked, beaten and thrown into a van. All, authorities allege, were victims tied to cryptocurrency-related crimes that have spilled out from behind computer screens and into the real world as the largely unregulated currency surges in value. While crypto thefts are not new, the use of physical violence is a far more recent trend, said John Griffin, a finance professor at the University of Texas in Austin who tracks financial crimes.
/jlne.ws/3Snz8L5
EToro Adds DOGE, XRP, SHIB and 9 Others in U.S. Crypto Push After Nasdaq Debut
Helene Braun - CoinDesk
Trading platform eToro (ETOR) has expanded its crypto offerings in the U.S., adding 12 new digital assets including Dogecoin DOGE, Cardano ADA and XRP XRP, the company said Wednesday. The additions bring the total number of cryptocurrencies available to U.S. users to 15. The new tokens also include Aave AAVE, Chainlink LINK, Compound COMP, Ethereum Classic ETC, Litecoin LTC, Uniswap UNI, Stellar XLM, Shiba Inu SHIB, and Yearn Finance YFI. Previously, U.S.-based users could only trade Bitcoin BTC, Bitcoin Cash BCH and Ethereum ETH on the platform.
/jlne.ws/3SqHWQf
IMF Says 'Efforts Will Continue' to Ensure El Salvador Doesn't Accumulate More BTC
Tom Carreras - CoinDesk
The International Monetary Fund (IMF) stated on Tuesday that "efforts will continue" to make sure that the total amount of bitcoin BTC held by El Salvador's government does not change. Back in March, El Salvador reached an agreement with the IMF to receive a $3.5 billion loan package. Some of the conditions of that deal concerned bitcoin: for example, the cryptocurrency officially lost its status as legal tender, meaning that merchants no longer need to accept the currency on a mandatory basis.
/jlne.ws/3Sn4fXb
Bitcoin ETFs Pull In $9 Billion as Investors Ditch Gold Holdings
Sidhartha Shukla - Bloomberg
A divergence is emerging in US exchange-traded funds as investors move from gold to its so-called digital counterpart, Bitcoin. Over the past five weeks, US Bitcoin ETFs have attracted more than $9 billion in inflows, led by BlackRock Inc.'s iShares Bitcoin Trust ETF (IBIT). Meanwhile, gold-backed funds have suffered outflows exceeding $2.8 billion over the same period, according to data compiled by Bloomberg News.
/jlne.ws/3Soh0AP
Inside the Las Vegas bitcoin party: 'Whales', JD Vance and the Trump sons; The US president is a crypto booster - and the faithful went to America's gambling capital to celebrate
Alex Rogers - Financial Times
Donald Trump's two eldest sons came to America's gambling capital to call for a new financial order - and the demise of the country's biggest banks. Eric and Donald Trump Jr took the Bitcoin conference by storm, promising a bonanza for digital asset holders, not least thanks to their father's moves to lift the reins on their industry. The brothers, stars in a firmament of crypto celebrities in Las Vegas this week, arrived to a stage named after Satoshi Nakamoto, the pseudonymous developer of bitcoin, following a string band's rendition of techno anthem "Sandstorm". They had Wall Street in their sights.
/jlne.ws/3Hihztu
Beware Stablecoin Hype in Circle's $6 Billion IPO; The digital-dollar issuer will provide a gauge of investor faith in the future of crypto tokens.
Lionel Laurent - Bloomberg
/jlne.ws/43kRxhV
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| Politics | | An overview of politics as it relates to the financial markets | US to 'aggressively' revoke visas of Chinese students; Marco Rubio, secretary of state, says move will enhance scrutiny on applications from China and Hong Kong
Guy Chazan, Lauren Fedor, Demetri Sevastopulo, Stephanie Stacey and Michael Pooler - Financial Times
US secretary of state Marco Rubio has said the Trump administration would "aggressively" revoke the visas of Chinese students, in its latest effort to crack down on foreigners hoping to study in the US. The move came a day after Rubio ordered US embassies across the world to stop scheduling interviews for new student visas, as the administration tightens the screening of applicants' social media activities.
/jlne.ws/44TnoY9
Judge Blocks Shutdown of Biden-Era Migrant Entry Programs; The sweeping order applied to hundreds of thousands of people legally in the country through programs put in place for Ukrainians, Afghans and others.
Zach Montague and Jazmine Ulloa - The New York Times
A federal judge on Wednesday temporarily blocked the Trump administration from pulling legal protections from hundreds of thousands of people who entered the United States through Biden-era programs, ordering the government to restart processing applications for migrants who are renewing their status.
/jlne.ws/3Fef1vZ
Trump Grants Clemency to 26 People, Including Former Gang Leader; Reality-TV hosts, former politicians and a rapper are among those who also received pardons, commutations
Robert Barba - The Wall Street Journal
President Trump has pardoned or commuted the sentences of 26 people in recent days, including former Republican lawmakers, reality-television stars and a one-time gang leader convicted of murder. The White House didn't provide details on the president's decision. Here is a look at some of the individuals who have been granted clemency.
/jlne.ws/4dBkuJM
Trump responds angrily to his Wall Street nickname: 'Don't ever say what you said'
Lauren Sforza - NJ.com
President Donald Trump exploded at a reporter who asked him about the latest Wall Street nickname for his tariff chaos. Trump responded angrily toward a reporter in the White House after she told him that Wall Street investors are using a new acronym, TACO, to describe the ongoing tariff turmoil caused by Trump. The acronym stands for "Trump Always Chickens Out" and was reportedly coined by a Financial Times columnist.
/jlne.ws/3ZF07pc
Trump's Fury at Harvard Gets More Deranged-and Exposes a Big MAGA Scam
Greg Sargent - The New Republic
Trump says he's attacking foreign students because they're taking places reserved for American kids. But the House GOP budget bill would hurt countless American students from the working class. President Donald Trump has mostly justified his lawless attempt to restrict international students from attending Harvard University by pretending it's designed to root out the antisemites, woke radicals, and dangerous terrorists supposedly nesting in their ranks. Now, however, Trump has a new rationale: It's all about helping young, aspiring Americans, particularly those in the working class.
/jlne.ws/3SqokMg
Judge spares Trump from massive DOGE lawsuit - leaving Elon Musk holding the bag for 'unauthorized role'
Alex Woodward - The Independent
Donald Trump has been dropped from a lawsuit accusing his administration of illegally wielding power to slash government agencies and purge the federal workforce. But a federal judge won't let Elon Musk escape the case. Musk - tapped by the president to lead the so-called Department of Government Efficiency - is facing a lawsuit from a group of 14 states arguing that the world's wealthiest person lacks any legal authority to carry out mass firings, terminate grants and access sensitive government information and taxpayer data.
/jlne.ws/4dJlnAk
Nationalist Candidate Backs Crypto in Tight Polish Presidential Race
Konrad Krasuski - Bloomberg
/jlne.ws/3Z22bYo
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| Regulation & Enforcement | | Stories about regulation and the law. | British Virgin Islands, Bolivia Poised to Join Dirty Money List
Ben Bartenstein, Jasmina Kuzmanovic, and Katarina Hoije - Bloomberg
The British Virgin Islands - a major offshore finance hub - and Bolivia, home to one of the world's largest lithium deposits, are at risk of inclusion on a global "gray list" for not making enough progress to stem illicit flows of money. The Paris-based Financial Action Task Force is expected to add both jurisdictions to its list as early as June 13, the last day of its joint plenary with the Council of Europe's anti-money laundering body Moneyval, people familiar with the matter said.
/jlne.ws/43QDQr2
Morgan Stanley Denies Dutch Prosecutor's Tax Evasion Allegations
Charlotte Hughes-Morgan - Bloomberg
Morgan Stanley denied allegations by the Dutch Public Prosecution Service that it evaded tax on almost $1 billion worth of dividends more than a decade ago. According to the Dutch Public Prosecution Service, an Amsterdam-based subsidiary of a foreign bank filed five corporation tax returns between 2009 and 2013. The returns offset EUR124 million ($140 million) in tax relating to a total of EUR825 million in dividends paid on listed Dutch shares, the public prosecution service said in a statement Wednesday without identifying the bank. The prosecutor holds the European parent company and an employee involved at the time responsible.
/jlne.ws/44UeGZG
SEC Publishes Data on Regulation A, Crowdfunding Offerings, and Private Fund Beneficial Ownership Concentration
SEC
The Securities and Exchange Commission's Division of Economic and Risk Analysis has published three new reports that provide the public with information on capital formation and beneficial ownership of qualifying private funds. The first two papers-analyses of the Regulations A and Crowdfunding markets-provide valuable information on how capital is being raised in the United States particularly by smaller issuers. During the periods reviewed (2015 to 2024 for Regulation A and 2016 to 2024 for Regulation Crowdfunding) more than $10 billion was raised.
/jlne.ws/4klDFKg
SEC Announces Agenda, Panelists for Roundtable on Crypto DeFi
SEC
The Securities and Exchange Commission's Crypto Task Force has announced the agenda and panelists for its June 9 roundtable, "DeFi and the American Spirit." "DeFi exemplifies the promise of crypto, as it allows people to interact without intermediaries," said Commissioner Hester M. Peirce, head of the Crypto Task Force. "I look forward to learning from the panelists about how we can create a regulatory environment in which DeFi can thrive."
/jlne.ws/4jkzDjX
Addressing financial system climate risk: A view from the regulator
ASIC
Keynote address by ASIC Commissioner Kate O'Rourke at the Responsible Investment Association Australasia (RIAA) Conference, 29 May 2025.
/jlne.ws/4jmnuv3
Good Cents: New research on New Zealanders, savings and debt
Financial Markets Authority - New Zealand
We have published new research that reveals while many New Zealanders feel confident in their financial decisions, there are significant gaps between their financial goals and actual holdings of investment products. Good Cents: Kiwis on Savings and Debt looks into New Zealanders' attitudes and behaviours towards savings, debt reduction, and financial guidance. The research presents a snapshot of how New Zealanders approach their financial balance sheet. By asking about both their attitudes and their experiences in the same survey, we can observe any gaps between what respondents say they value and what they report doing in practice.
/jlne.ws/43jO4Ac
Meet the team - FMA's Operational Resilience
FMA
Our response and enforcement function is made up of the teams who assess and address conduct that poses harm to New Zealanders at the more significant end of the spectrum, as well as our specialist supervision teams who supervise, monitor and deal with conduct that applies across different sectors.
/jlne.ws/4dADeJn
FCA responds to the Government's Pension Investment Review
FCA UK
We have responded to the announcement of a survey on asset allocation as part of the Treasury's Pension Investment Review. Ensuring consumers get good value from their pension savings is an important goal. This lies at the heart of the work we have been doing to introduce a value for money (VFM) framework. Last year, we consulted on suggestions for a VFM framework which included proposals relating to asset allocation data disclosure. We plan to contact relevant firms later this year and ask them to provide data in early 2026 so we can better understand how firms think about asset allocation and refine our proposed rules.
/jlne.ws/43QdGVl
FCA updates to requirements, limitations and directions
FCA UK
We're reviewing and updating the requirements, directions and limitations applied to over 9,000 firms. We'll amend and update around 11,000 requirements, directions or limitations applied to over 9,000 firms.
/jlne.ws/4mDleCf
MAS Announces Corporate Governance Advisory Committee to Review Code of Corporate Governance
MAS
The Monetary Authority of Singapore (MAS) announced today that the Corporate Governance Advisory Committee (CGAC) will undertake a review of the Code of Corporate Governance (CG Code). The review seeks to build on established good practices in corporate governance and disclosures among listed companies, and complement the ongoing work of the Equities Market Review Group.
/jlne.ws/4dHfPWQ
Changes to MAS Board of Directors
MAS
The Monetary Authority of Singapore (MAS) today announced the appointment of Ms Goh Swee Chen and Professor Ho Teck Hua to its Board of Directors, for a term of three years from 1 June 2025 to 31 May 2028. MAS also announced the re-appointment of Mr Lim Hng Kiang, for a further term of three years, from 1 June 2025 to 31 May 2028.
/jlne.ws/43jTAmo
SFC and Saudi Capital Market Authority extend dialogue on regulatory cooperation beyond landmark ETF listing
SFC
The Securities and Futures Commission's (SFC) Chief Executive Officer (CEO) Ms Julia Leung met today with Board Commissioner Mr Abdulaziz Bin Hassan of the Capital Market Authority (CMA) of Saudi Arabia in Hong Kong. Both sides agreed to enhance regulatory collaboration and continue to work towards a Memorandum of Understanding to facilitate cross-border investment initiatives between Hong Kong and Saudi Arabia.
/jlne.ws/3SqSP4E
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Bloomberg includes US treasuries on market on close list trading; BMO Capital Markets and Schwab Asset Management have already executed the first trade referencing Bloomberg's Evaluated Pricing Service (BVAL) as the closing price.
Natasha Cocksedge - The Trade
Bloomberg has expanded its market on close (MOC) list trading offering to include US treasuries, following on from the launch of MOC for European government bonds. The expansion is set to allow investors to automatically get into or out of a market at closing point, avoiding the need to manually place order immediately as the market closes. The new offering will address challenges associated with tracking error and will provide certainty of execution by referencing a specific close time, through the use of Bloomberg's Evaluated Pricing Service (BVAL) as the closing price.
/jlne.ws/3FcsZ1q
Riskier Fringes of Market Are Leaving Blue-Chip Stocks Behind
Esha Dey - Bloomberg
The riskiest corners of the US stock market are on pace for the biggest gain since November relative to larger and more stable peers, a vote of confidence in the economy's resilience amid uncertainty about tariffs. A UBS Group AG basket of 100 stocks with low scores on measures including financial health or efficiency - names like AMC Entertainment Holdings Inc. and GameStop Corp. - is up 11% in May, triple the advance of the blue-chip Dow Jones Industrial Average and almost double that of the S&P 500 Index.
/jlne.ws/3FnI7ZR
FX Hedging Cost Drop Sparks Debate on Asia Bond Defense Bets
Marcus Wong - Bloomberg
A decline in currency hedging costs across Asia is fueling a debate among bond investors on whether they should fortify their portfolios with cheap protection or let the opportunity slide. Three-month forward implied yields for dollar-won have fallen to around 1.7% this week, the lowest level in more than two years, signaling plummeting hedging costs for South Korean bonds. The same gauges for currencies in Thailand, Indonesia, China and India are also below their one-year averages, according to Bloomberg calculations.
/jlne.ws/4kyWmK6
If Anything, Bond Markets Are Returning to Normal; There's nothing unusual about the rise in Treasury yields. Recent bond market hysteria ignores the facts.
Nir Kaissar - Bloomberg Opinion
A lot of people are worried about the level of US interest rates. "I think we should be afraid of the bond market," billionaire investor Ray Dalio said last week. To other observers, the bond market is "barfing," "signaling a dire scenario for the economy," "shaking Wall Street," "sending a warning to Congress," "giving stock-market investors the yips," "worrying that something may be breaking beneath the surface" or just plain "breaking." I don't see what all the fuss is about. There is nothing unusual about the current level of interest rates or their recent movement. If anything, this is a yawningly normal interest rate environment.
/jlne.ws/4dJiHmg
US Corporate Profits Fell by Most Since 2020 Ahead of Tariffs
Matthew Boesler - Bloomberg
US corporate profits fell in the first quarter by the most since 2020, indicating large companies were already feeling some pressure prior to the Trump administration's sweeping tariffs on global trading partners. The 2.9% decrease in profits followed a 5.4% advance in the fourth quarter, according to Bureau of Economic Analysis data out Thursday. Despite the drop, profits remained well above historical norms relative to gross domestic product, which fell 0.2%.
/jlne.ws/3Z5cOtt
Chicago's Wealthy Back New Bay Area Fund for University Startups
Miranda Davis - Bloomberg
A Silicon Valley venture capital firm has lured investment from billionaires including Don Wilson, Michael Polsky and Ashley Duchossois Joyce to fund University of Chicago technology startups. MFV Partners, a Bay Area venture capital firm with ties to Chicago, is starting a $25 million fund dedicated to early-stage companies originating from the university. The fund, which will target startups in areas such as quantum computing and artificial intelligence, plans to back about 40 firms over the next three years.
/jlne.ws/44Ubm0E
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | EU to Propose New Climate Goal With Greater Flexibility in July
Ewa Krukowska - Bloomberg
The European Union is set to offer greater flexibility in July over achieving its emissions-reduction target for the next decade, as the bloc seeks to bolster flagging support for its ambitious climate plans. The European Commission, the EU's executive arm, told member states it's considering publishing a measure to set an interim climate goal for 2040 on July 2, according to diplomats with knowledge of the matter. Options under consideration include allowing some international carbon credits and giving up sub-targets for various sectors, the diplomats said, asking not be identified as the discussions are private.
/jlne.ws/4dDuulH
It's not just DEI-corporate ESG initiatives are under threat in the Trump era and 80% of companies say they're adjusting their policies
Sara Braun - Fortune
DEI may be getting all the attention these days, but another acronym is also facing pushback. Corporate environmental, social, and governance (ESG) initiatives have been the target of increased public and political scrutiny over the past few years, but efforts have intensified during the second Trump administration. Approximately 80% of companies are adjusting their ESG policies to mitigate legal and political risk, according to a new report from the Conference Board, which surveyed 125 senior sustainability and ESG executives at leading U.S. and multinational companies.
/jlne.ws/4kh0miF
Farmers Press Trump for Biofuels Boost to Counter Tariff Losses
Kim Chipman, Alicia Diaz, Erin Ailworth, and Ilena Peng - Bloomberg
After losing their biggest export market due to Donald Trump's trade wars, US farmers are now counting on the president's support for biofuels to prevent their next crop from piling up in storage. The administration is set to soon unveil a plan for how much crop-based biofuels will be blended into fossil fuels starting next year. A higher mandate, still opposed by some in the oil industry, would create a much needed outlet for crops after tariffs hit China - the top commodities buyer simply has no orders for corn, soybeans or wheat from the next harvest on its books, according to the US Department of Agriculture.
/jlne.ws/4kjMF2B
How a Shortage of Transformers Threatens Electricity Supply; A crucial device is hampering efforts to build global electricity supply, just as the demand is rising from data centers, electric cars and heat pumps.
Akshat Rathi and Oscar Boyd - Bloomberg
To slash emissions fast, the formula is simple: electrify everything and clean up the grid. But in practice, progress is slowed by all sorts of bottlenecks - from arcane permitting processes to sky-high electricity costs. This week on Zero, Akshat Rathi sits down with producer Oscar Boyd to spotlight a surprising culprit slowing the transition: a global shortage of transformers, and why it has industry insiders so worried. This episode kicks off Bottlenecks, a new series exploring the lesser known obstacles standing in the way of our net-zero future.
/jlne.ws/3Z56nGI
UK Gas Generation Plunges as Wind Surge Turns Prices Negative
Eamon Farhat - Bloomberg
The UK's blustery conditions are allowing the country to get more than half of its electricity from cheaper renewable sources, pushing down gas generation to the lowest level since October. Wind farms supplied 59% of the UK's power needs on Thursday morning, according to data from grid operator NESO. Gas generation, meanwhile, fell to as low as 1.2 gigawatts, less than a quarter of the average for the last month, Elexon data show. The surge in wind briefly pushed intraday power prices below zero.
/jlne.ws/43CETJZ
Kazakhstan Mulls Building Key Gas Refinery Without Oil Majors
Nariman Gizitdinov - Bloomberg
Kazakhstan is considering building a natural gas refinery at the Karachaganak oil field by itself, after the cost of the development proposed by international oil companies ballooned to about $6 billion, according to people familiar with the matter. The companies, led by Eni SpA and Shell Plc, have delayed the planned completion of the facility to 2030 from the previously planned date of 2028, the people said.
/jlne.ws/43GTwMx
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | UniCredit Pays Over EUR600 Million for New Alpha Bank Stake
Sotiris Nikas and Sonia Sirletti - Bloomberg
UniCredit SpA paid slightly more than EUR600 million ($677 million) to double its stake in Greece's Alpha Services and Holdings SA, according to people familiar with the matter. The Italian lender announced Wednesday that it bought a stake of around 9.7% in the Greek bank, bringing its total holding to nearly 20%. The transaction cost around EUR615 million, the people said, requesting anonymity as the details of the deal are not public.
/jlne.ws/3HtKfj8
1MDB scandal exposer seeks $18mn from ex-Goldman executive; Claim filed to New York court against corrupt banker tests US compensation laws
Michael Peel and Stefania Palma - Financial Times
A Swiss ex-banker who revealed the plunder of Malaysia's 1MDB state investment fund is seeking $18mn in victim compensation from a corrupt former Goldman Sachs executive due to be sentenced over the affair on Thursday. Xavier Justo, who served a prison sentence in Thailand over what he claims was a trumped-up blackmail case relating to 1MDB, argues the money would recognise the price he has paid for a decade for telling the truth about the fund.
/jlne.ws/3Z5hsrp
Should ordinary US retirement accounts be investing in private assets? Some worry that PE funds could become a dumping ground
Brooke Masters - Financial Times
On the surface, the proposal sounds so attractive: give ordinary Americans the same investment opportunities that billionaires, endowments and sovereign wealth funds already enjoy. Over the last couple of decades, the ranks of public companies have shrunk, while the number of private equity-owned businesses has quintupled, and private credit funds have muscled into lending. PE assets alone topped $4.7tn last year, nearly twice the total in 2019.
/jlne.ws/3FuUEL1
BlackRock Said to Plan to Buy Shares in Circle Internet IPO
Ryan Gould and Anthony Hughes - Bloomberg
The stablecoin issuer and some of its shareholders including co-founder and Chief Executive Officer Jeremy Allaire are seeking to raise as much as $624 million in the offering, according to a US Securities and Exchange Commission filing Tuesday. Cathie Wood's Ark Investment Management has indicated an interest in buying as much as $150 million of shares in the offering, the filing shows. Circle's IPO has received orders for multiple times the number of shares available, Bloomberg News has reported. The deal is set to price on June 4.
/jlne.ws/3Z5izaq
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Pension fund investors demand Elon Musk work 40-hour week at Tesla; Shareholders say EV maker is in 'crisis' and call for succession planning
Sujeet Indap, Kana Inagaki and Stephen Morris - Financial Times
A group of large pension funds has demanded that Elon Musk commit to work at least 40 hours a week at Tesla, calling for corporate governance reforms to address a "crisis" at the carmaker. The letter sent to Tesla chair Robyn Denholm on Wednesday was signed by 12 long-term institutional investors including the New York City Comptroller, the American Federation of Teachers, as well as European funds such as Denmark's AkademikerPension. Together they manage about $950bn in assets.
/jlne.ws/3ZytObC
Elon Musk steps down from Trump administration; World's richest man says he is leaving role at so-called Department of Government Efficiency
Joe Miller and Alex Rogers - Financial Times
Elon Musk is formally stepping down from his role in the Trump administration after just five months, ending a tumultuous period during which he oversaw cost-cutting by the so-called Department of Government Efficiency. In a post on Wednesday on X, Musk, who began scaling back his work at Doge last month, said: "As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending." The world's richest man was a "special government employee", a category within the US civil service that restricts staff from working for more than 130 days in a year for the administration.
/jlne.ws/4mBWrhW
Salesforce Says AI Has Reduced Hiring of Engineers and Customer Service Workers
Brody Ford - Bloomberg
Salesforce Inc. said the use of artificial intelligence tools internally has allowed it to hire fewer workers, another example of a company changing its hiring plans due to the emerging technology. "We have reduced some of our hiring needs," Chief Financial and Operations Officer Robin Washington said Wednesday on a call with analysts, citing the implementation of AI tools. For example, she said that 500 customer service workers would be redeployed to different roles within the company this year, saving $50 million.
/jlne.ws/4kh3VW5
The Real Story of the 'China Shock'; The jobs harm was largely local and temporary, while overall jobs and consumer welfare increased.
James J. Heckman and Hanming Fang - The Wall Street Journal (opinion)
Few academic papers have been as influential-or as misunderstood-as those by David Autor, David Dorn and Gordon Hanson. Politicians and pundits often use these authors' papers to claim that China's rise has cost the U.S. up to 2.4 million jobs due to surging Chinese imports between 1999 and 2011. But these studies focus narrowly on what happened to manufacturing employment in local labor markets, not the U.S. as a whole.
/jlne.ws/4koGZo8
Switzerland's Glencore to cut down output and jobs. 'These are necessary actions we have to take' says CEO
AFP via Fortune
The chief executive of Swiss mining and commodity trading giant Glencore said Wednesday the company had to make "tough decisions" as unions and NGOs criticised plans to cut down output and jobs. Glencore has said it will reduce production targets at certain mining sites, particularly at its Cerrejon open-pit coal mine in Colombia, to address falling prices of some raw materials. "Decades after decades, we have to take these tough decisions," said Glencore CEO Gary Nagle, adding that the company was hoping to reopen shut-down operations when prices improve.
/jlne.ws/4kB4nOB
Wall Street Interns Are Safe From AI. Here's Why; The roles are an entry point for the next generation of bank leaders.
Marc Rubinstein - Bloomberg
Summer is here. And for a select cohort of college students, that means swapping lecture halls for trading floors and seminar rooms for Wall Street office suites. In the next few weeks, thousands will begin internships at Goldman Sachs Group Inc, JPMorgan Chase & Co and other major financial institutions. What awaits them could define their careers.
/jlne.ws/4mDmtBA
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Big Tax Breaks for Health Savings Accounts Get Even Better in the GOP Bill; Another 20 million Americans could soon have access to the terrific tax advantages of HSAs
Laura Saunders - The Wall Street Journal
Health savings accounts are already a sweet deal for many Americans. They could soon get sweeter. The sprawling tax-and-spending bill passed by the House of Representatives on May 22 includes changes to HSAs, as they're called. If enacted by the Senate, which takes up the legislation in June, they would expand access to these tax-favored accounts. So far, the changes have attracted little opposition or even comment. But they pack a powerful punch. HSAs are tied to health insurance and offer remarkable tax breaks to users who can afford to maximize them.
/jlne.ws/43nkppS
Cancer Drugs Cost More Than Ever. They Often Don't Extend Lives
Robert Langreth, Tanaz Meghjani, Rachael Dottle - Bloomberg
The moment she heard that her mother, then 67, had advanced breast cancer, Stacie Dusetzina began hunting for potential treatments. A cancer policy researcher at Vanderbilt University, Dusetzina knew the go-to drug in many cases was Pfizer Inc.'s Ibrance. She learned it might cost her mother, who lived on a fixed income, around $10,000 out of pocket annually. Medicare, required by law to cover cancer treatment, would have paid much of the rest of the cost. At the time, in 2020, the pill listed for a jaw-dropping $160,000 a year, rising more recently to $214,000.
/jlne.ws/3Z4VUv4
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | India is set to be the world's fourth-largest economy - but sustained growth will warrant more reforms
Amala Balakrishner - CNBC
A top Indian official's recent claim that the South Asian powerhouse has become the world's fourth-largest economy has created a lot of buzz in the country's social media, with an outpouring of self-congratulatory messages. While India has taken giant strides in boosting its GDP - it was ranked No. 10 in 2014 - and continues to be the fastest-growing major economy, it's best to take the latest claims with a fistful of salt.
/jlne.ws/4jq63JV
Xi wants to boost China's advanced manufacturing prowess. Trump may not like it
Anniek Bao - CNBC
Forget the factory lines for socks, sneakers and T-shirts. U.S. President Donald Trump wants to boost the domestic production of high-tech products, and not apparel or footwear, he told reporters Sunday. However, China is doubling down on its efforts to bolster advanced manufacturing, which could put both countries on a collision course.
/jlne.ws/4dHldt2
Japan's bond market ignites fears of outflows from U.S., carry trade unwind and market turmoil
Lee Ying Shan - CNBC
Japan's bond market is igniting fears of capital flight from the U.S. and a carry trade unwind as long-dated yields hover near record highs. Yields resumed their move higher Wednesday as demand for 40-year government bonds reportedly dropped to its weakest level since July last year, according to Reuters' calculations, hovering near record highs hit last week.
/jlne.ws/4jpbfO2
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