| December 06, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
The CFTC has issued an advisory highlighting potential implications of AI use under the Commodity Exchange Act (CEA) and CFTC regulations. While not exhaustive or definitive, it emphasizes that CFTC-regulated entities must remain compliant with applicable requirements when deploying AI, either directly or via third-party providers. Entities are expected to assess AI-related risks and update their policies, procedures, and systems as needed. Material system changes, including AI adoption, should undergo compliance review to align with CEA and CFTC regulations. The advisory serves as guidance, not a compliance checklist, urging robust risk assessments and governance.
The CFTC advisory on the use of artificial intelligence (AI) by entities it regulates emphasizes that compliance with the Commodity Exchange Act (CEA) and CFTC regulations remains mandatory. Key areas addressed include:
-Order Processing and Trade Matching: AI can optimize resource allocation and reduce latency but must not compromise competitive and efficient markets.
-Market Surveillance: AI may enhance detection of abusive trading practices and anomalies, but DCMs and SEFs must maintain adequate compliance resources.
System Safeguards: Entities using AI must follow best practices for security, reliability, and operational capacity while providing advance notice of material system changes.
-Clearing organizations (DCOs) may use AI for cybersecurity, member assessments, and settlement processes but remain accountable under existing core principles, even when using third-party AI services. For brokers, advisors, and swap dealers, AI applications in risk management, compliance, and customer protection must align with CFTC standards. The advisory underscores the importance of ongoing dialogue with staff, routine oversight, and potential future regulatory updates.
Both Chairman Rostin Behnam and Commissioner Kristin N. Johnson issued statements on the AI advisory. Behnam's can be seen HERE and Johnson's HERE.
The CME Group announced it is introducing a financially settled one-ounce gold contract, which may mean that negotiations with Costco to be a delivery point for a physically delivered venue broke down. I jest on the Costco negotiations, but one-ounce gold is a popular size with the Costco crowd and this may have been a missed opportunity. The financially settled one-ounce contract will likely be very popular, but when there is a run again for the one-ounce gold contracts at Costco, the physically delivered version would have come in handy.
For context on the rise in gold prices, Bloomberg has a mini-documentary, Who Is Behind Gold's Crazy Rise?, that explores the forces and the unexpected shifts shaping the gold market. Gold prices have soared to record highs throughout 2024, driven by a mix of traditional factors like geopolitical tensions, including the Russia-Ukraine war and Middle East conflicts, and new dynamics. Central banks, led by the People's Bank of China, have aggressively increased gold reserves, diversifying away from the dollar amid fears of frozen assets like those imposed on Russia. Meanwhile, Chinese consumers, grappling with global instability and a faltering domestic economy, have rushed to purchase gold jewelry and bullion as a hedge against uncertainty.
mHUB is hosting a Fireside Conversation with Matt Hulsizer and Jenny Just, co-founders and managing partners of PEAK6 Investments, on Thursday, February 13, 2025. The event, part of mHUB's Industry Disruptor series, will take place at 1623 W. Fulton Street in Chicago. Hulsizer and Just will share their experiences in building a successful company, offer advice for founders, discuss early-stage fundraising, and provide insights on emerging trends. The evening will begin with registration at 5:30 PM, followed by the conversation from 6:00 to 7:00 PM, and conclude with a reception until 8:00 PM. Bank of America is supporting the event as a sponsor. Sign up for the event HERE.
Evan Peterson has left the CME Group, where he was director, editorial communications and content strategy, and joined Aramco as an executive speechwriter, he shared on LinkedIn.
Industry veteran Ed Ryan is starting a new position as chief compliance officer at Ironbeam, Inc., he shared on LinkedIn. He was previously at StoneX and before that at Advantage Futures. JLN interviewed Ryan for the Open Outcry Traders History Project.
I need to refresh my Winnie the Pooh reading. My apologies for the Robin/Robbins error yesterday. As Eeyore said, "I thought I was wrong once... turns out, I was mistaken about that too."
Here are the headlines from in front of FOW's paywall from some recent stories: CFTC commissioner calls for artificial intelligence fraud task force, Deutsche Boerse nominates first female chair, Cboe Europe Derivatives hits volume, open interest records, RJ O'Brien hires former ICE senior director as global compliance chief, Deribit head of regulation Dohmen leaving in early 2025 and CME targets retail with new smaller gold futures contract.
Some people just know how to help people fix problems. Alex Lamb of Scila AB is one of those people. He reached out to me after my rant about my internet problems with Frontier in Florida. He suggested a 5G wireless solution from T-Mobile that is available in my location in Sarasota. He said he has had good luck with this solution in the past. After Frontier told me the problem was a corroded line between two exchange locations and they could not find a new pair of copper wires in the 1220 pairs in the wire cable, I decided to give Alex's solution a try. Given that Frontier was highly unlikely to pull a new copper cable to fix this DSL problem when they are putting in fiber cable all over town, I figured the T-Mobile solution could solve my problem immediately. It did. Thank you, Alex!
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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This evening (12/6/2024) is the last chance to register for the Take WILD to Work Tour: Akuna Capital on Tuesday, December 10, from 04:30 p.m. - 06:30 p.m. Central Time, at 333 South Wabash Avenue, 26th Floor, Chicago, IL 60604. Women In Listed Derivatives (WILD) Members and Non-Members are welcome! The presentation, titled "Women at Akuna: The New Wave in Tech and Trading" will be led by some of Akuna's women in Quant, Trading and Technology, who will discuss the role of women shaping the future of technology, specifically aimed for those in Quant, Technology and Trading. It will be followed by a happy hour and networking event in Akuna's OTC Coffee Bar from 5:00-6:30 p.m. Go HERE for more information and to register.~SR
Our most read stories from our previous edition of JLN Options were:
- Traders Are Capitalizing on the Slump in Stock-Market Volatility from Bloomberg.
- BMLL Expands into Options as Market Data Costs 'Spiral' from Traders Magazine.
- Government Jobs at This Agency Pay $248,000. Here's Where Federal Workers Make the Most Money. from Barron's. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Chris Edmonds: ICE Enhances User Experience with ICE Connect Platform
JohnLothianNews.com
Intercontinental Exchange (ICE) has unveiled significant improvements to its ICE Connect platform, according to Chris Edmonds, president of fixed income & data services at ICE. In a recent interview with John Lothian News at FIA EXPO 2024, Edmonds highlighted the platform's evolution and its competitive edge in the market.
Watch »
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Former Prosecutor Shares Insights at FIA EXPO Event on CFTC's Future Enforcement Approach
JohnLothianNews.com
Renato Mariotti, a former prosecutor and defense attorney, collaborated with Eventus to host a gathering of industry participants and legal experts at the W Hotel in the financial district on the Monday of FIA's EXPO in Chicago. Later in the week, John Lothian News spoke with the Paul Hastings attorney at FIA EXPO to hear his insights on the event, the topics discussed, and the perspectives shared.
Watch »
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Don Morton, My Second Client as a Full-service Broker, Has Passed Away at Age 89
JohnLothianNews.com
His Highly Complex Bond Option Position Helped Get Me Fired From First American, But It Was Not His Fault
Don Morton, the second futures brokerage account I ever opened as a full-service futures broker, passed away on Monday, December 2, 2024, at the age of 89. Don was a brilliant options trader who served as the executive director of the Tennessee Legislature's Fiscal Review Committee. He was also a U.S. Army veteran of the Korean War and a certified public accountant.
Read more »
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A Sociologist Shines a Light on Traders, Flash Boys and Online Adtech; Donald MacKenzie talks to insiders and dives into history to explore how markets are shaped by ideas-and vice versa.
Justina Lee - Bloomberg
In 1972, Donald MacKenzie won a medal for being the best mathematics student at the University of Edinburgh. But the previous year, he'd taken a course on the sociology of science that changed his life. The young Scot had always preferred the self-contained truths of pure math, but the class sparked a pivot to something entirely different: the messy, morally ambiguous study of human society. Since then, the now 74-year-old sociologist has written about nuclear missile systems, mathematical proofs in computing, cryptocurrencies and online advertising. Among Wall Street's bookish set, he's known best for writing the other book about high-frequency trading. Seven years after Michael Lewis' bestseller Flash Boys portrayed traders as wily villains who used blink-and-you-miss-it speed to beat one another, MacKenzie made them wonky again. In 304 dense pages, Trading at the Speed of Light: How Ultrafast Algorithms Are Transforming Financial Markets, published in 2021, digs deep into the history of market structure and HFT.
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***** I always like to see it when one of the esteemed JLN readers gets a little mainstream press.~JJL
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Sell that thang: Hawk Tuah girl faces 'pump and dump' allegations as crypto coin collapses hours after launch; 'Hawk Tuah Girl' Haliey Welch launched her own cryptocurrency, only for it to plummet by 90 percent just hours later
Meredith Clark - Independent
Haliey Welch, better known as the viral "Hawk Tuah Girl," has faced backlash following the failed launch of her memecoin $HAWK, which crashed by more than 90 percent just hours after it hit the market. Now, the 22-year-old internet personality is being accused of scamming investors. This week, Welch attempted to cash in on her viral fame by launching her own memecoin - cryptocurrencies that are based on viral memes or pop culture references, such as Dogecoin and Pepecoin.
/jlne.ws/49u2dvV
****** Is ReallyBadCoin taken?~JJL
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The 28 best Christmas gifts for him - from $10 to $200; Only the best Christmas gift ideas for the men you love - wrap up some Hoka slides, spring for a coffee subscription or pamper him with affordable cashmere.
Amanda Garrity - Yahoo Life
Scroll through any men's gift guide and you'll see all the same old stuff - personalized leather wallets, whiskey stone sets, useless gag gifts and all kinds of other clichés. And while these gift ideas are rooted in some truth, you know as well as I do that your guy doesn't want to unwrap any of these basic (er, boring) presents on Christmas morning. Nope, he'd rather be surprised with something useful and unique - like one of these thoughtful, out-of-the-box Christmas gifts for him.
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****** I confess, I only ordered two of the items. My self control finally kicked in.~JJL
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Thursday's Top Three
Our top story Thursday was the CFTC's press release, CFTC Releases FY 2024 Enforcement Results, subtitled "Obtains Record-Setting $17.1 Billion in Monetary Relief, Sanctions." Second was The New York Times' Trump Selects Kelly Loeffler, a Top Donor, to Head the Small Business Administration. Third was a tie between Bloomberg's Crypto-Rich Russian Networks Moving Oligarch Billions Shut Down by UK and Wired's She Was a Russian Socialite and Influencer. Cops Say She's a Crypto Laundering Kingpin.
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| Lead Stories | Ransomware Gangs' Merciless Attacks Bleed Small Companies Dry; The inside story of Russian hackers who broke into a 158-year-old UK transport business.
Ryan Gallagher - Bloomberg
The black-and-white message flickering across computer screens sparked panic at Knights of Old, a 158-year-old UK delivery company: "If you're reading this, it means the internal infrastructure of your company is fully or partially dead." Knights' network for managing trucks was down. So was the system for booking payments. From 2,000 miles away, a criminal, Russia-linked hacking gang known as Akira had sabotaged the computers at Knights of Old and two related trucking companies. To force negotiations, the crooks in June 2023 had deployed malicious software that encrypted Knights' files and then threatened to publish online its confidential internal data. Paying a ransom would get the company a decryption key that could be used to unlock the compromised computers and servers, Akira said.
/jlne.ws/41h2T5S
Jane Street, Millennium End India Options Trade Secrets Case; Legal fight pitted two Wall Street giants against each other; Case settled on 'mutually agreeable terms,' Jane Street said
Chris Dolmetsch - Bloomberg
Jane Street Group and Millennium Management agreed to settle a legal dispute over two former traders' alleged theft of a secret billion-dollar India options trading strategy. In a filing Thursday in Manhattan federal court, the two firms said they had agreed to dismiss the case. Terms of the settlement were not disclosed. The resolution ends a case that had pitted two of Wall Street's biggest names against each other and raised the question of whether a trading strategy could be protected as a trade secret. The court fight also spotlighted international firms' growing interest in the Indian securities market.
/jlne.ws/4ifuxWS
Trading Platform eToro Taps Goldman Sachs As it Plans US IPO; EToro is weighing going public as soon as the second quarter; Company had previously attempted to go public via SPAC
Gillian Tan, David Pan, and Bailey Lipschultz - Bloomberg
EToro is working with Goldman Sachs Group Inc. on a potential initial public offering in the US, according to people familiar with the matter. The trading and investment platform is considering going public as soon as the second quarter, though that timeline is subject to change, the people said. The company has said it could seek a valuation in a listing above the $3.5 billion figure it achieved in a private funding round last year.
/jlne.ws/3P3nLGB
Market Frenzy Fuels $1 Trillion ETF Rush to Break Annual Records; November's historic ETF haul was led by equity funds demand; 'Trump bump' fueled rise, year inflows may be hard to beat: BI
Isabelle Lee - Bloomberg
The optimism sweeping Wall Street has spurred investors to plow a record $1 trillion into US exchange-traded funds so far in 2024, racking up yet another milestone for the industry. With some 16 trading days left to go, this year's net inflows have already surpassed the $903 billion high in 2021. Investor appetite for assets ranging from staid fixed income to speculative leveraged bets in an easy-to-trade ETF wrapper has helped fuel the boom. The market frenzy reached a fever pitch in November as stocks soared to new peaks on the conviction that President-elect Donald Trump's incoming administration and his support for tax cuts would spark further gains. It marked the best month for the S&P 500 this year while ETFs of all stripes saw a record $155 billion pour in, averaging inflows of around a $7.3 billion a day, data compiled by Bloomberg Intelligence show.
/jlne.ws/41lMFbD
Dubai's Alleged Crypto Scams Are Raking in Billions; Ponzi and pyramid schemes dressed in startup clothes have been running rampant in the UAE, experts and US authorities say.
Alice Kantor - Bloomberg
On a scorching July day in Dubai, Sam Lee was inside a climate-controlled wine bar, sipping a glass of chilled red, looking untouchable. Near the beginning of the year, US authorities announced that they'd charged Lee in absentia with conspiracy to commit securities fraud and wire fraud. They alleged that, as the co-founder of a company called HyperVerse, he'd orchestrated a cryptocurrency scam that bilked investors around the world for almost $2 billion. HyperVerse had promised returns as high as 1% a day via cutting-edge blockchain-based strategies, but according to the US Department of Justice and the Securities and Exchange Commission, it was just an old-fashioned Ponzi scheme.
/jlne.ws/4g6vFL1
OpenAI seeks to unlock investment by ditching 'AGI' clause with Microsoft; Start-up discusses removing provision to protect powerful technology from being misused for commercial purposes
Cristina Criddle and George Hammond - Financial Times
OpenAI is in discussions to ditch a provision that shuts Microsoft out of its most advanced models when the start-up achieves "artificial general intelligence", as it seeks to unlock billions of dollars of future investment. Under current terms, when OpenAI creates AGI - defined as a "highly autonomous system that outperforms humans at most economically valuable work" - Microsoft's access to such a technology would be void. The OpenAI board would determine when AGI is achieved.
/jlne.ws/3BoOWbm
A $500 Billion Haul Reignites Passive Controversy on Wall Street; Apollo, Citadel have issued warnings on indexing amid ETF boom; Goldman, Citi say fundamentals, active funds hold bigger sway
Lu Wang - Bloomberg
The passive-investing juggernaut is picking up speed - and it's stirring up fresh angst about the dangers posed by the index-tracking boom across Wall Street. With almost a month still to go in 2024, index funds have raked in some $500 billion in fresh cash, while their active counterparts are set for outflows. In recent weeks, that growing dominance prompted outcry from active manager behemoths Apollo Global Management and Citadel, who have blamed the surge in index-following cash for derailing the crucial role of stock pickers as drivers of market efficiency, among other charges.
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The FT's 25 most influential women of 2024; This year we celebrate the women remaking the world we live in today
Financial Times
Influence is exerted in many ways, through political acts, creative endeavours, technological breakthroughs and community building. Whatever form it takes, it is defined by what it achieves - by changing the world we live in. Nowhere is this more clear than in the FT Weekend Magazine's Women of 2024 issue, a list of 25 of the world's most influential women, written by the world's most influential women. This year we celebrate women who are remaking the world we live in today, from Europe's competition commissioner Margrethe Vestager, whose decade shaping the conversation about fair competition in digital markets came to a conclusion this year with two landmark rulings, to the phenomenon that is Taylor Swift, who upended an industry with the highest grossing tour of all time.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | In Ukraine, More Exhausted Soldiers Are Abandoning Their Posts; Criminal cases for AWOL troops rise sixfold, prosecutor says; Frontline soldiers serve indefinitely as reinforcements scarce
Aliaksandr Kudrytski and Volodymyr Verbianyi - Bloomberg
On the first day of Russia's full-scale invasion, Roman Solomonyuk shocked his family when he volunteered to fight. But over two-and-a-half years later, he's joined the growing number of Ukrainian soldiers who've called it quits. First the 45-year-old dug trenches near the Russian border. Later, he shot down deadly Shahed drones. But then Roman fell out with a heavy-handed officer - and he's now officially wanted for leaving his unit without permission.
/jlne.ws/4izfPua
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israeli president calls Elon Musk to revive Gaza hostage talks; Families of those held in enclave urge Isaac Herzog to keep issue in focus for incoming Trump administration
Mehul Srivastava - Financial Times
Israel's President Isaac Herzog spoke to Elon Musk this week in a bid to enlist the world's richest man to keep the stalled negotiations for the release of Israeli hostages on the incoming Trump administration's agenda. The conversation, which took place at the urging of some of the families of hostages still being held by Hamas, was part of Herzog's "wide and fairly extensive efforts to apply pressure on all parties", a person familiar with the conversation said. About 100 hostages, more than a third of whom are believed to be dead, are still held in the besieged enclave.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | CME Group Announces $2.1B Annual Variable Dividend and $3B Share Repurchase Program
CME Group
CME Group, the world's leading derivatives marketplace, announced that its Board of Directors approved two initiatives to return capital to shareholders. The Board declared the company's 2024 annual variable dividend, amounting to $5.80 per share. The dividend is payable January 16, 2025, to shareholders of record on December 27, 2024, and totals approximately $2.1 billion. In addition, the Board authorized a share repurchase program of up to $3 billion of CME Group Class A common stock, subject to market conditions.
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Review of Collateral Haircuts - Effective December 05, 2024
CME Group
In conjunction with the regular review of market volatility and to ensure adequate collateral coverage, please find below the current acceptable collateral and haircuts for CME Clearing.
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Performance Bond Requirements: Agriculture, Energy, FX, Interest Rate and Metal Margins - Effective December 06, 2024
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below. The rates will be effective after the close of business on December 06, 2024.
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CME to Offer One-Ounce Gold Futures to Meet Surging Demand From Retail Traders; Chicago exchange to roll out new futures contract in January
Yvonne Yue Li - Bloomberg
CME Group Inc. will start offering a one-ounce gold futures contract in January to meet surging demand from retail investors amid bullion's record-breaking rally. There has been a larger trend among retail investors to seek smaller-sized gold products as a way to diversify their portfolios as spot gold hit repeated record highs this year. The precious metal is the go-to haven asset in times of economic and financial uncertainties.
/jlne.ws/3ZGVQ5a
CME Group to Launch 1-Ounce Gold Futures to Meet Surging Retail Demand
CME Group
CME Group, the world's leading derivatives marketplace, today announced it will launch a 1-Ounce Gold (1OZ) futures contract on January 13, 2025, pending regulatory review.
/jlne.ws/3DbcL6Z
Supervisory Board of Deutsche Borse AG appoints new Executive Board members
Deutsche Borse Group
At its meeting today, the Supervisory Board of Deutsche Borse AG appointed Christian Kromann (52) and Jens Schulte (53) as new Executive Board members. From 1 January 2025, Christian Kromann will become Executive Board member for Investment Management Solutions. The division comprises the software solutions, ESG data and research and the index business of the Group with SimCorp and ISS STOXX. Stephan Leithner, who will become the sole CEO of Deutsche Börse AG at the beginning of next year, is currently responsible for this division.
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Fireside Friday with... Deutsche Borse's Maximilian Trossbach; The TRADE sits down with Maximilian Trossbach, Deutsche Borse's project manager for Xetra Midpoint, to learn more about its new dark trading offering, including how liquidity is expected to evolve, the technical priorities, and the importance of an integrated approach.
Claudia Preece - The Trade
Tell us more about Deutsche Borse's new dark trading offering coming next week.
We're very much looking forward to our launch on Monday (9 December) and are definitely optimistic. We have a good mix of clients - both international and German - who are ready to start from day one. Once we got approval from regulators on 28 November - who of course look into every detail which takes time when it comes to Q&As etc. - we allowed time for everyone to get prepared.
FTSE SET Index Series December 2024 semi-annual review
LSEG
FTSE Russell announces that there will be one change to the constituents of the FTSE SET Large-Cap Index, following the December 2024 semi-annual review. The index series is reviewed semi-annually in accordance with the index ground rules.
/jlne.ws/3CVzkMX
Nasdaq CFO Sarah Youngwood to Present at the Goldman Sachs U.S. Financial Services Conference
Nasdaq
Nasdaq (Nasdaq: NDAQ) will be presenting at the following conference, with a webcast available at Nasdaq's Investor Relations website: ir.nasdaq.com/events.cfm.
/jlne.ws/3B3s4OM
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Musk's xAI Wraps Up $6 Billion in Funding in Latest Round; Filing shows new money came from 97 different investors; XAI previously raised $6 billion from investors in May 2024
Kurt Wagner - Bloomberg
Elon Musk's xAI has raised $6 billion in new capital, according to a regulatory filing, wrapping up a funding round that has been in the works for months and was said to value the artificial intelligence startup at more than $40 billion. The equity financing came from 97 investors, and includes stakes as small as $77,593, according to the filing with the US Securities and Exchange Commission on Thursday. The company didn't list the names of investors, nor did it include a valuation or revenue. Bloomberg News reported in October that xAI was seeking new funding at a $40 billion valuation, not including dollars raised.
/jlne.ws/4iq9QrA
OpenAI Adds $200 Monthly ChatGPT Pro Subscription With New Model
Rachel Metz - Bloomberg
OpenAI is introducing a higher-priced paid tier for its chatbot ChatGPT that includes unlimited access to its most powerful artificial intelligence models, including an improved version of its software that can perform human-like reasoning tasks. The new ChatGPT Pro option, announced in a livestreamed event on Thursday, will cost $200 a month and offer access to an expanded version of o1, its reasoning model. OpenAI previously introduced a preview of the model in September, but the company said the new version is faster and better at solving competitive math and code problems.
/jlne.ws/3Vp3pec
Asness' AI Twin Heralds End of Human Fund Managers; The AQR Capital co-founder says artificial intelligence is coming for his job.
Aaron Brown - Bloomberg Opinion
Hedge fund executive Cliff Asness says artificial intelligence is becoming "annoyingly better" at doing parts of his job. AI deployed by his firm AQR Capital Management, where I worked for a decade, is combining investment factors to build market-beating portfolios, something that used to be Asness' specialty. "AI's coming for me now," he told Bloomberg Television in a recent interview. Almost exactly seven years ago, Asness had expressed skepticism to the Financial Times, saying that big data and machine learning were dangerous because they found too many spurious patterns, and even genuine patterns were quickly competed away in the markets.
/jlne.ws/4goMUXU
Nvidia's business practices in EU antitrust spotlight, sources say
Foo Yun Chee - Reuters
EU antitrust regulators are asking Nvidia (NVDA) rivals and customers if the U.S. artificial intelligence chipmaker bundles its products that may give it an unfair advantage, people with direct knowledge of the matter said, in a move that may lead to a formal investigation.
/jlne.ws/3ZEAllr
Meta to build $10 billion AI data center in Louisiana as Elon Musk expands his Tennessee AI facility
Jack Brook and Adrian Sainz - Associated Press Finance
The largest artificial intelligence data center ever built by Facebook's parent company Meta is coming to northeast Louisiana, the company said Wednesday, bringing hopes that the $10 billion facility will transform an economically neglected corner of the state. Republican Gov. Jeff Landry called it "game-changing" for his state's expanding tech sector, yet some environmental groups have raised concerns over the center's reliance on fossil fuels - and whether the plans for new natural gas power to support it could lead to higher energy bills in the future for Louisiana residents.
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| Cybersecurity | | Top stories for cybersecurity | FCC Responds to Chinese Attack on Telecom Firms With New Rules; Telecoms required to secure networks against intruders; Rules would require annual certification of risk plans
Kelcee Griffis - Bloomberg
The US Federal Communications Commission proposed a set of rules Thursday that mandates carriers take steps to protect their networks against cybersecurity threats in the wake of revelations that Chinese hackers have likely been embedded in US communications infrastructure for months - with no end in sight. Carriers should be required to "secure their networks from unlawful access or interception of communications," according to the agency, a step the FCC declined to take three decades ago after Congress passed a law to make it easier for law enforcement to access the networks.
/jlne.ws/4glFxQL
Extradited Nigerian National Sentenced to Eight Years in Prison for Business Email Compromise Scheme
U.S. Department of Justice
Okechuckwu Valentine Osuji, 39, a Nigerian national, was sentenced yesterday in New Haven, Connecticut, to eight years in prison for operating a business email compromise scheme out of multiple countries, including the United States. According to court documents and statements made in court, Osuji and his co-conspirators targeted specific individuals and businesses by masquerading as trustworthy entities in electronic communications to obtain money. They used witting and unwitting "money mules" to receive fraud proceeds in their bank accounts and then either transferred those funds from the money mule accounts to accounts under the co-conspirators' control or converted the stolen proceeds to cash for further transfer. Over the years-long operation of the scheme, numerous victims were tricked into transferring funds into bank accounts the victims believed were under the control of legitimate recipients as part of normal business operations. In reality, the bank accounts were controlled by Osuji and his co-conspirators. The victims included a Connecticut-based financial company, a Colorado-based lending company, an Alaska-based nonprofit performing arts organization, a New York-based food and beverage company, and many others.
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| Cryptocurrencies | | Top stories for cryptocurrencies | Mainstream memecoins signal changing markets; Ordinary investors need to pay attention to new information flows online
Gillian Tett - Financial Times
Dead squirrels normally do not feature in financial history. But we do not live in "normal" times right now. Far from it. A month ago, America's online Maga crowd exploded in social media outrage after New York health officials euthanised a pet squirrel called Peanut suspected of carrying rabies. Since Peanut was already famous on the internet, Elon Musk decried the death. "The government can barge into your home...take your pets and execute them," he declared.
/jlne.ws/3OIW8SJ
Bitcoin Options Shows Traders Are Already Hedging After Record Rally to $100,000
David Pan - Bloomberg
Bitcoin pulled back a record high with some traders already seeking to hedge against a deeper retreat after the original cryptocurrency surged to more than $100,000 for the first time. There has been an uptick in demand for put options, or contract that gives the buyer the right to sell an asset at a predetermined price within a set tie period. Puts with strike prices of $95,000 and $100,000 have seen the largest open interest positions over the last 24 hours, according to Amberdata, which tracks digital-asset market data. Demand for puts in the $75,000 and $70,000 range has also increased.
/jlne.ws/41h2GQ8
Bitcoin Fans Say 'I Told You So' After $100,000
David Rovella - Bloomberg
Like many of the investors who stuck with cryptocurrency (funny money or scam cash to skeptics), hedge fund manager and former Trump acolyte Anthony Scaramucci was basking in an "I-told-you-so" glow on Thursday. Scaramucci is one of the true believers who appears to have, thanks to Bitcoin's ascendance, emerged triumphant from Wall Street's wilderness. The digital asset breached six figures Wednesday, representing not only a galactic gain from the 5 cents it fetched 15 years ago, but (adherents would contend) acceptance. No longer is this internet money considered by polite society little more than a plaything or Ponzi scheme. With the ostensible embrace by Donald Trump and some $108 billion directly tracking it in exchange-traded funds, Bitcoin has arguably crossed the chasm into something resembling legitimacy.
/jlne.ws/3B5UYOf
The 4 groups of bitcoin people to know: Morning Brief
Julie Hyman - Yahoo Finance
Now that bitcoin has cracked the $100,000-per-token milestone, you're probably getting texts (or sending them) asking whether it's too late to get in, and fielding the classic taxi driver conversations about crypto. If you've been paying attention during cryptocurrencies' ascent this year, you know that the rise has been fueled by two factors: the introduction of spot bitcoin exchange-traded funds and Donald Trump's election win.
/jlne.ws/3D2rCkm
Ether Gets the Limelight as Record-Chasing ETF Investors Pile In
Sidhartha Shukla - Bloomberg
In the shadow of Bitcoin topping $100,000, a rally in Ether is building steam, with investors betting the second-biggest cryptocurrency will surpass the record it reached three years ago. Ether exchange-traded funds listed in the US saw a record daily inflow of $428 million on Thursday, data compiled by Bloomberg show. The token has soared 61% to outperform Bitcoin since Donald Trump's Nov. 5 election victory, which touched off a crypto rally on expectations of friendlier regulations.
/jlne.ws/3D5ALsn
Parabolic Crypto Rallies Bring Echo of Pandemic Boom That Burst; A range of relatively unheralded tokens posted big advances; Some analysts say this may be the start of a wider frenzy
Sidhartha Shukla - Bloomberg
Crypto traders have triggered vertiginous jumps in digital assets beyond Bitcoin, stirring up memories of a buying frenzy that swept the market during the pandemic before giving way to an epic bust. Unsung tokens such as CRV from crypto exchange Curve Finance, the TRON blockchain's TRX and IOTA from the digital ledger of the same name have jumped over 40% in the past five days alone, data compiled by Bloomberg show.
/jlne.ws/49o2vEI
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| Politics | | An overview of politics as it relates to the financial markets | Trump Names David Sacks as White House AI and Crypto Czar; New post will help Trump put imprint on developing industries; Venture capitalist Sacks helped Trump make inroads with tech
Stephanie Lai and Hadriana Lowenkron - Bloomberg
Donald Trump says he is selecting venture capitalist David Sacks of Craft Ventures LLC to serve as his artificial intelligence and crypto czar, a newly created position that underscores the president-elect's intent to boost two rapidly developing industries. "David will guide policy for the Administration in Artificial Intelligence and Cryptocurrency, two areas critical to the future of American competitiveness. David will focus on making America the clear global leader in both areas," Trump said Thursday in a post on his Truth Social network.
/jlne.ws/49wmi4Y
The World's Richest Man Is Now America's Biggest Political Donor; Musk gave at least $274 million to elect Trump, GOP allies; Trump has tapped Musk to help reshape federal bureaucracy
Bill Allison - Bloomberg
Elon Musk poured at least $274 million into political groups in 2024, fueling a spending spree that helped Donald Trump win the presidency, and securing a new title for himself: the most prolific donor of the election cycle. His total puts him far ahead of the second-biggest donor, investor Timothy Mellon, who has given $197 million mainly to Republicans, according to contributors tracked by OpenSecrets.
/jlne.ws/4giWFGQ
Donald Trump picks former senator and CEO David Perdue for ambassador to China; President-elect says candidate's international business career will help build relations with Beijing
Demetri Sevastopulo and Alex Rogers - Financial Times
President-elect Donald Trump has named former senator David Perdue to serve as ambassador to Beijing in one of the most critical US diplomatic roles given the prospect for rising tensions with China. Trump said Perdue, a former Fortune 500 chief executive who has lived in Hong Kong and Singapore and previously represented Georgia in the Senate, was a "loyal supporter and friend".
/jlne.ws/3CX2gEk
Canada Would Make America Even More Exceptional; A huge percentage of Canadians are concerned about the threat of tariffs. Americans should be, too.
Jessica Karl - Bloomberg Opinion
Governor Trudeau, eh? Let me begin with a disclaimer: I've never been to Canada. I've purchased a pair of pajama shorts at the Canada Pavilion at EPCOT, I've driven past the exit sign in Detroit that reads, "Bridge to Canada, No Re-Entry to USA," and I know all about the Great Canadian Maple Syrup Heist of 2011-12.1 But I haven't actually set foot in the sovereign nation to the north. And I might never get the chance, if it becomes America's 51st state.
/jlne.ws/41h4icE
Michel Barnier resigns as French prime minister; Move comes after government was ousted by MPs in vote of no confidence
Adrienne Klasa and Leila Abboud - Financial Times
French Prime Minister Michel Barnier has resigned after his government was ousted by MPs in a vote of no confidence. The Élysée said on Thursday that Barnier had handed in his resignation but that President Emmanuel Macron had asked him to stay in the role until a successor had been appointed.
/jlne.ws/4ik7Hxr
Georgia Has Crossed a Russian Rubicon; Raids on opposition parties and suspending the EU bid expose a pantomime democracy.
Marc Champion - Bloomberg Opinion
What are we seeing in Georgia? That isn't an easy question to answer, but I think it's the moment at which the government of a functioning democracy crosses the line to illegitimacy and autocracy. That transition can be hard to spot in real time. Governing young states tends to get messy, and even authoritarian regimes claim democratic legitimacy, including the one President Vladimir Putin has developed in Russia, and President Xi Jinping's in China. Yet at some point, those claims became transparently meaningless. That's happening in Georgia.
/jlne.ws/4giTJtO
China Imposes Sanctions on 13 US Firms Over Arms Sales to Taiwan
Bloomberg News
China has imposed sanctions on 13 US military companies in retaliation for Washington's planned arms sales to Taiwan, a move seen as largely symbolic but which has the potential to disrupt the firms' supply chains. The companies affected are mostly related to drone manufacturing and include BRINC Drones Inc., Shield AI Inc., and Kratos Unmanned Aerial Systems Inc. The Foreign Ministry in Beijing said in an announcement Thursday that the assets of all 13 companies are frozen and no China-based entities can transact or work with them.
/jlne.ws/4fl0mLv
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| Regulation & Enforcement | | Stories about regulation and the law. | Justice Department and Consumer Financial Protection Bureau Reinforce Federal Protections for Servicemembers in Letter to Financial Services Providers
U.S. Department of Justice
The Justice Department and Consumer Financial Protection Bureau (CFPB) issued a joint letter today reiterating financial services providers of their responsibility to recognize interest rate protections that exist for servicemembers, recent veterans and their spouses under the Servicemembers Civil Relief Act (SCRA). Under the SCRA, servicemembers have additional rights and protections because of the unique financial challenges that often emerge as a result of their service. One provision of the SCRA limits the amount of interest that banks, credit cards and other financial services providers may charge on certain financial obligations that the servicemember incurred before military service to no more than 6% per year, including most fees.
/jlne.ws/49wUWM4
President and CEO of Las Vegas-Based Company Sentenced for Role in Investment Fraud Scheme Where He Stole Millions in Victim Investor Funds
U.S. Department of Justice
A Nevada man was sentenced yesterday to 51 months in prison and ordered to pay $6.1 million in restitution stemming from his role in a years-long fraud scheme. According to court documents, Mykalai Kontilai, formerly Michael Contile, 55, of Las Vegas, facilitated an investment fraud scheme involving his company, Collector's Coffee Inc., doing business as Collector's Café (Collector's Coffee), a company incorporated in California and headquartered in Las Vegas. From 2012 to 2018, Kontilai made or caused to be made numerous materially false and misleading representations to induce victims to invest in Collector's Coffee - a company he claimed was on the verge of launching an online auction house for third-party owned collectibles, such as Hollywood and sport memorabilia. As a result of Kontilai's numerous false and misleading statements, including that investor funds would be used for legitimate business purposes, that Kontilai had personally invested millions of his own money in the company, and that he did not take a salary, Kontilai successfully raised approximately $23 million from Collector's Coffee investors. However, rather than using the proceeds as represented, Kontilai stole approximately $6.1 million for his own personal use, including for the purchase of luxury goods, apartments, and vehicles.
/jlne.ws/41lbnJ2
CFTC Staff Issues Advisory Related to the Use of Artificial Intelligence by CFTC-Registered Entities and Registrants
CFTC
The Commodity Futures Trading Commission's Divisions of Clearing and Risk, Data, Market Oversight, and Market Participants today issued a staff advisory on the use of artificial intelligence in CFTC-regulated markets by registered entities and registrants. The advisory reminds CFTC-regulated entities of their obligations under the Commodity Exchange Act and the CFTC's regulations as these entities begin to implement AI.
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Statement of Chairman Rostin Behnam on the Staff Advisory Related to the Use of Artificial Intelligence by CFTC-Registered Entities and Registrants
CFTC
Today's staff advisory on the use of artificial intelligence by CFTC registered entities and registrants is the product of months long action by the staff AI task force[1] that I created to engage with market participants, AI technology providers, domestic and international regulators, and other stakeholders to understand existing and potential AI uses cases and risks in the derivatives markets. The advisory is also informed by public comment on staff's Request for Comment on the Use of Artificial Intelligence in CFTC-Regulated Markets. Given the dynamic nature of artificial intelligence and the growing integration of AI in derivatives markets, the advisory is a measured first step to engage with the marketplace and ensure ongoing compliance with the Commodity Exchange Act and the CFTC's regulations. The advisory is emblematic of the CFTC's technology-neutral approach, which balances market integrity with responsible innovation in the derivatives markets. As firms may thread AI into the fabric of nearly every aspect of their operations, staff intends to monitor for any risks from AI that may merit policy or regulatory consideration. Staff encourages a continued dialogue with all stakeholders about the risks and benefits of AI use cases in the derivatives markets.
/jlne.ws/4igdGDz
Statement of Commissioner Kristin N. Johnson on Future-Proofing Financial Markets: Assessing the Integration of Artificial Intelligence in Global Derivatives Markets
CFTC
Today, the Commodity Futures Trading Commission (CFTC or Commission) issued a Staff Advisory to CFTC-Registered Entities and Registrants on the Use of Artificial Intelligence in CFTC-Regulated Markets (Staff Advisory) which reminds CFTC-regulated entities that their obligations to comply with Commission regulations are technology neutral, meaning these obligations apply broadly to market transactions and conduct without regard to the sophistication of underlying technology. During my term as a Commissioner and in the decade prior to my appointment, I have advocated for market and prudential regulators to have clear visibility into the diverse technologies that increasingly define the infrastructure of our markets. Working in partnership with market participants, we are able to enhance our ability to accomplish our mission of ensuring market stability and market integrity. Technological innovation will indisputably characterize the future of finance. The question for our Commission and other market and prudential regulators is how best to ensure that we integrate responsible innovation that reflects our regulatory values, protects customers, and preserves investors' capital.
/jlne.ws/4fZGGO7
Federal Court Orders Defendant to Pay More Than $2 Million for Operating Commodity Pool Fraud Scheme
CFTC
The Commodity Futures Trading Commission today announced the U.S. District Court for the Southern District of Texas entered a consent order imposing permanent injunctive relief, civil monetary penalty, restitution, and equitable relief against Marcus Todd Brisco of Hawaii for his fraudulent solicitation and misappropriation of funds in connection with two commodity pools. The consent order requires Brisco to pay a $350,000 civil monetary penalty and $1.65 million restitution to victims of his fraudulent scheme. The order also imposes permanent trading and registration bans, and a permanent injunction prohibiting Brisco from further violations of the Commodity Exchange Act and CFTC regulations, as charged.
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A look into the centrally cleared future; Wesley Bray explores the latest rule changes for fixed income clearing in the US, what institutions should be most conscious of, how to navigate these changes and what their impact will likely be on competition.
Wesley Bray - The Trade
The Securities and Exchange Commission (SEC) is in the process of introducing noteworthy rule changes to the clearing of fixed income securities, a development which is set to reshape the landscape for fixed income trading. These changes are designed to improve market stability, increase transparency, and mitigate systemic risks in bond markets, affecting everything from Treasury securities to corporate debt. For trading desks, the new rules will result in a range of operational and regulatory shifts. Clearing obligations will become stricter, with enhanced oversight of margin requirements and risk management processes.
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Capital Markets, Competition, and the SEC
Chair Gary Gensler - SEC
First, the U.S. economy and, importantly, the public-both investors and issuers-benefit from our large, vibrant $120 trillion capital markets. They are part of our comparative advantage as a nation, undergirding the dollar's dominance[1] and our role in the world. We are the capital markets of choice for issuers and investors around the globe. At more than 40 percent of the world's capital markets, we punch above our weight class of just 24 percent of the world economy.[2]
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EC Obtains Final Judgment Against Jordan Qsar, Austin Bernard, and Grant Witherspoon in Connection with Insider Trading
SEC
On November 18, 2024, the Securities and Exchange Commission obtained a final judgment against Jordan Qsar. Austin Bernard and Grant Witherspoon, all former minor league baseball players the SEC charged with insider trading in advance of the December 6, 2021 announcement that Jack in the Box Inc. would acquire Del Taco Restaurants, Inc. The complaint alleges that Jordan Qsar learned about the acquisition from a friend and former teammate who was working on the acquisition at Jack in the Box. Qsar traded on the inside information and tipped Bernard and Witherspoon, who used the information to purchase Del Taco call options. According to the complaint, Qsar made about $56,500 in illegal trading profits, Bernard made approximately $64,700 and Witherspoon made approximately $42,800.
/jlne.ws/3OHU5OR
ASIC bans South Australian adviser from being involved in financial services for seven years
ASIC
ASIC has banned SA based former financial adviser Bruce Stuart Davis from providing financial services, controlling an entity that carries on a financial services business or performing any function involved in the carrying on of a financial services business. Mr Davis was the sole director, responsible manager, and financial adviser of AFS Licensee, Wise Investment Advisers Pty Ltd (WIA).
/jlne.ws/3Zn5hFt
ASIC releases November 2024 financial adviser exam results
ASIC
ASIC today released the exam results from the 27th Financial Advisers Exam cycle, held in November 2024. The exam, conducted by the Australian Council for Educational Research (ACER) since inception, follows a rigorous process to ensure all candidates in each cycle are tested to the same standards.
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Fair's fair: The case for prohibiting unfair trading practices in financial services
ASIC
Keynote address by ASIC Commissioner Alan Kirkland at the Australasian Consumer Law Roundtable in Melbourne on 6 December 2024.
/jlne.ws/4f7mTey
Establishing trust in sustainable investment products; We reflect on the impact of our sustainable investment product regime after the introduction of new measures.
Sacha Sadan - FCA
We announced a package of measures a year ago to improve trust in and transparency of sustainable investment products. We know many consumers care about investing in products that have a positive impact on the planet and people. Results from our Financial Lives survey show that 81% of adults would like their investments to do some good as well as provide a financial return. But research also showed that investors weren't confident that sustainability-related claims made about investments were genuine. That's why the new rules were designed not only to protect consumers by helping them make more informed decisions, but also to improve trust in the market. This trust is key to maintaining the UK's position at the forefront of sustainable finance investment and supporting the long-term growth and competitiveness of the sector.
/jlne.ws/3B5Lkv1
Empowering Investors through Updated Investor Charter of SEBI
SEBI
SEBI has updated its "Investor Charter" to enhance investor protection, market transparency, and trust and confidence among investors. Key updates includes ensuring confidentiality of investor information and providing the right to exit at fair and reasonable terms from the securities market related products or services (copy of updated Investor Charter of SEBI enclosed).
/jlne.ws/4fZan1L
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Wealthy Baby Boomers Will Make Heirs Wait, Schwab Survey Says; Younger generations say they are more likely to pass on their money while still alive.
Suzanne Woolley - Bloomberg
Baby Boomers are far and away the stingiest generation by at least one measure: desire to pass on their riches during their lifetimes. That's according to a new survey from Charles Schwab, which found just 21% of Boomers with at least $1 million in investable assets said they "want the next generation to enjoy my money while I'm alive." That compares with 53% of millennials and 44% of Gen X Americans with assets in the same range.
/jlne.ws/3ZFjNtx
Investors pour $140bn into US stock funds after Trump election victory; Bets incoming administration will enact 'pro growth' agenda spur rush into Wall Street equities
Nicholas Megaw - Financial Times
Investors have pumped almost $140bn into US equity funds since last month's election as traders bet Donald Trump's administration will unleash sweeping tax cuts and reforms in a boon to corporate America. US equity funds have notched up inflows of $139.5bn since Trump's victory on November 5, according to data provider EPFR. The rush of buying made November the busiest month for inflows on records stretching to 2000.
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Bears are dropping like flies
Robin Wigglesworth - Financial Times
We'll take $1tn on "things people say at the top of the cycle", please Alex. Mega forces are reshaping economies and their long-term trajectories - it's no longer about short-term fluctuations in activity leading to expansion or recession. 2024 has reinforced our view that we are not in a business cycle: AI has been a major market driver, inflation fell without a growth slowdown and typical recession signals failed. Volatility surged and narratives flipflopped as markets kept viewing new data through a business cycle lens, not one of transformation. That's from BlackRock's 2025 investment outlook, published yesterday. It's not quite Gordon Brown bragging on the eve of the financial crisis that he'd eliminated boom and bust cycles, but there are uncanny echoes.
/www.ft.com/content/ddb483f5-5d7c-464f-86ba-2acabcf23867?shareType=nongift
A $50 Billion London Investor Takes a Contrarian View on Trump; Impax expects president-elect to keep lid on consumer prices Inflation seen as 'unpalatable' for Trump's voters, Simm says
Frances Schwartzkopff - Bloomberg
The conventional wisdom that President-elect Donald Trump's policies will be inflationary may be misguided, according to one of the world's biggest investors in the clean-energy transition. Impax Asset Management Group Plc, which oversees roughly $50 billion from its base in London, is betting that Trump will probably do everything in his power to prevent an uptick in inflation, after consumer prices proved key in his Nov. 5 election win.
/jlne.ws/4fZLwLb
Cocoa Surges Back to $10,000 a Ton on Growing Supply Fears
Mumbi Gitau - Bloomberg
Cocoa futures climbed to the highest in nearly six months on mounting concerns over lower output in West Africa, with global supplies already tight. The most-active contract rose as much as 2.4% to $10,092 a ton in New York, the highest since June 14, before paring back. Futures are set for a weekly jump of about 5%, the sixth consecutive week of gains.
/jlne.ws/3CVvSSv
MarketAxess expands pricing engine to cover municipal bonds; Expanded coverage will enable clients trading munis to benefit from accurate and unbiased reference pricing for the MSRB-reportable municipal bond market.
Wesley Bray - The Trade
MarketAxess' AI-powered, algorithmic pricing engine for global credit and rates markets, CP+, will now cover municipal bonds. By leveraging proprietary data from the MarketAxess trading platform, TraX market data, and public sources such as TRACE, CP+ claims to go beyond traditional fixed income pricing sources to deliver value across the investment lifecycle. Through the expansion of coverage, MarketAxess clients trading munis will benefit from accurate and unbiased reference pricing for the MSRB-reportable municipal bond market.
/jlne.ws/3VtBbir
The 'year of the stockpicker' revisited; You won't believe how it turned out
Robin Wigglesworth - Financial Times
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Why portfolio rebalancing isn't zen; Neither theory nor practice supports diligently adjusting your exposures
Stuart Kirk - Financial Times
/jlne.ws/3BswzCp
Ethan Kurzweil on Venture Investing in the Post-ZIRP, AI Era; How things changed from a decade ago.
Tracy Alloway and Joe Weisenthal - Bloomberg
/jlne.ws/3VqCK0M
Who Is Behind Gold's Wild Ride This Year? In this Bloomberg Originals mini-documentary, we pull the curtain back on why that shiny metal keeps hitting record highs, and what it means for the future.
David Rovella - Bloomberg
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Insurance losses from natural catastrophes set to top $135bn; Two-thirds of global losses were in the US after two devastating hurricanes
Josephine Cumbo - Financial Times
Insurance losses from natural catastrophes, such as floods and hurricanes, are on track to exceed $135bn this year, prompting calls from the world's biggest insurers for more action to tackle climate change. Two-thirds of global losses were in the US, where two hurricanes devastated Florida in September and October, according to a new report by Swiss Re.
/jlne.ws/3OKddvy
Coca-Cola draws fire after watering down environmental targets; US drinks maker will recycle less plastic and cut emissions more slowly than previously pledged
Gregory Meyer and Patrick Temple-West - Financial Times
Coca-Cola has drawn condemnation from environmentalists after the soft-drink maker weakened its recycling and reuse goals for tens of billions of bottles each year. The company said late on Monday that it was now aiming to use 35 to 40 per cent recycled material in primary packaging such as plastic, glass and aluminium by 2035, compared with a previous goal of at least 50 per cent by 2030.
/jlne.ws/3BhI4N2
Sellers of Toxic Fertilizer Ask Congress: Protect Us From Lawsuits; The fertilizer, made from sewage sludge, can be laced with "forever chemicals." A company controlled by Goldman Sachs helps lead the lobbying.
Hiroko Tabuchi - The New York Times
For decades, a little-known company now owned by a Goldman Sachs fund has been making millions of dollars from the unlikely dregs of American life: sewage sludge. The company, Synagro, sells farmers treated sludge from factories and homes to use as fertilizer. But that fertilizer, also known as biosolids, can contain harmful "forever chemicals" known as PFAS linked to serious health problems including cancer and birth defects.
/jlne.ws/3BoPWfC
Clean Energy Program Races to Finish Work Before Trump Takes Over; The Energy Department's $400 billion program to support electric vehicles, batteries and other low emissions technology is hustling to get money out the door.
Brad Plumer - The New York Times
At the heart of the Biden administration's efforts to advance clean energy is a $400 billion lending program that has backed dozens of projects across the nation, including battery factories in Ohio and Tennessee, the revival of a shuttered nuclear reactor in Michigan and a novel rooftop solar expansion in Puerto Rico. Now, the Loan Programs Office at the Department of Energy is hustling to get money out the door before Donald J. Trump returns to the White House.
/jlne.ws/49qT9rM
Fury as US argues against climate obligations at top UN court; US says current climate rules are satisfactory, prompting condemnation from activists and vulnerable countries
Nina Lakhani - The Guardian
Climate justice campaigners have condemned the US after the world's largest historic greenhouse gas emitter argued against countries being legally obliged to combat the climate crisis. The US intervention came on Wednesday as part of the historic climate hearing at the international court of justice (ICJ) in The Hague, where island nations and other climate-vulnerable countries are calling for wealthy polluting nations most responsible for climate breakdown to be held legally responsible.
/jlne.ws/3VrjC2q
It's Do or Die Time for Philly Hydrogen Hub, and Some Green Groups Are Rooting for Death; The U.S. Department of Energy is dangling $750 million for the buildout of a hydrogen hub around Philadelphia. But the looming Trump presidency and strong economic headwinds endanger its prospects.
Kyle Bagenstose - Inside Climate News
As energy wonks descended on a downtown hotel for a hydrogen conference, witches were waiting for them in the parking lot. Donning a black, horned hat and green face paint, Delaware Riverkeeper Maya van Rossum and a coven of fellow protesters played off the release of the movie "Wicked" to lambast what they see as voodoo: green hydrogen. "Don't believe the hydrogen hype!" they chanted to passersby last month.
/jlne.ws/41nLada
Climate-vulnerable countries push for credit rating overhaul
Simon Jessop and Karin Strohecker - Reuters
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The world has been warming faster than expected. Scientists now think they know why
Laura Paddison - CNN
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | ECB Is Said to Quiz Some Banks About SRT Buyers' Leverage; Boom in risk transfers has fueled scrutiny by watchdogs; Use of borrowed money by investors has emerged as one focus
Esteban Duarte and Nicholas Comfort - Bloomberg
The European Central Bank is seeking clarity on how investors use borrowed money to buy significant risk transfers, as it tries to ensure the increasingly popular structure helps mitigate exposures rather than shift them across the banking sector. The supervisor sent a questionnaire to a small group of the top European banks, asking about policies and conditions they attach if investors want to buy their SRTs with borrowed money, according to people familiar with the matter. The ECB also seeks to assess terms under which lenders are willing to provide leverage against investors' SRT holdings, the people said.
/jlne.ws/41kGjZY
Is the Joe Biden-era blockade on US bank M&A finally over? Investors and advisers prepare for consolidation among country's thousands of regional lenders
Joshua Franklin and James Fontanella-Khan - Financial Times
Bank investors and advisers are preparing for a new era of consolidation among smaller US lenders that could help them fend off Wall Street's giants. KBW's large and regional bank indices both gained more than 10 per cent, respectively, the day after Donald Trump's election victory, the biggest rise in four years and one that trounced the 3 per cent increase in the tech-heavy Nasdaq. While shares in some banks such as Goldman Sachs have risen in anticipation of higher advisory fees and looser capital rules, the potential for a more liberal attitude to tie-ups lifted shares in small and mid-sized lenders.
/jlne.ws/4g0be2f
UK Bank NatWest Is Headed for Biggest Annual Gain Since 1993; Lender's shares soar on higher rates, planned government exit; Shares trade at fraction of pre-financial crisis price
Joe Easton - Bloomberg
UK lender NatWest Group Plc is poised for its biggest annual gain in more than three decades as lofty interest rates burnish earnings and the government prepares to exit a stake acquired during the global financial crisis. The Edinburgh-based firm's stock has risen 89% in 2024 in a rally that's only been outpaced on the FTSE 100 by that of jet-engine maker Rolls-Royce Holdings Plc. The latest boost for NatWest came on Friday as analysts at JPMorgan Chase & Co. named the stock one of their top picks.
/jlne.ws/3OKzyJA
Citigroup Loss on Botched Australia Trade Tops $45 Million; US bank launched a A$1.9 billion block trade earlier in week; Citigroup was left with Goodman stock after underwriting deal
Harry Brumpton, Georgina McKay, and Julia Fioretti - Bloomberg
Citigroup Inc.'s losses on a botched trade in Australia jumped to more than A$70 million ($45 million), according to people familiar with the matter, in one of the biggest block trade debacles in Asia in recent years. The US bank took a loss of about A$49.6 million after selling more shares in Goodman Group at a discount on Friday, adding to a roughly A$27 million loss earlier in the week, the people said, asking not to be identified discussing a private matter. The incident is a reminder that there's still work to be done as Chief Executive Officer Jane Fraser campaigns to repair the bank's reputation for risk management and controls after a string of recent high-profile blunders.
/jlne.ws/3ZJqdrW
BlackRock's Big Bet on GIP Puts Fink's Firm in Local Spotlight; Asset manager now among world's largest infrastructure players
Silla Brush - Bloomberg
In the port city of Duluth, Minnesota, local activists and Washington-based groups are coalescing to scrutinize - and possibly stall - a $6.2 billion acquisition of a power utility led by Global Infrastructure Partners. More than 8,000 miles away, GIP's role in a multibillion-dollar deal to privatize Malaysia Airports Holdings Bhd., the country's biggest airport operator, also sparked fierce opposition.
/jlne.ws/3OMCg0Y
Advent Is Said to Canvass Investors for New $25 Billion Fund; Buyout firm raised its largest ever flagship fund in 2022; Advent is doubling down on its private equity-only strategy
Ryan Gould and Swetha Gopinath - Bloomberg
Buyout firm Advent has started canvassing investors for a new flagship fund, which could be of similar size to its previous record-setting $25 billion vehicle, according to people familiar with the matter. The private equity firm has been holding preliminary meetings with its limited partners since last month, the people said, asking not to be identified discussing confidential information. Advent is targeting a size in the mid-$20 billion range for the new fund, they said.
/jlne.ws/4g2AqFk
China Stock Fund Beating 97% of Peers Bets on Cheap State Firms; Valuation of state-owned firms is 'outrageously low': Lin Bo; H-share SOEs have 'more upward potential' than A-share peers
Bloomberg News
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | 'Crazy ideology': US companies drop diversity efforts as conservative pressure mounts; Pullback is abrupt reversal from policies that appeared poised to influence corporate ranks
Taylor Nicole Rogers and Patrick Temple-West in New York and Claire Bushey in Chicago - Financial Times
US companies are accelerating their retreat from diversity and inclusion initiatives amid an all-out assault from conservatives emboldened by the election of Donald Trump. The pullback includes Walmart's decision to end some of its diversity, equity and inclusion initiatives last week, and Boeing's move to disband its DEI department earlier this month. And on Thursday, a US judge in northern Texas rejected a plea deal federal prosecutors had reached with Boeing tied to two fatal crashes of the 737 Max, objecting to justice department guidelines to consider diversity in selecting a monitor to ensure corporate compliance.
/jlne.ws/3ZIbXQ9
Wall Street's Bond Sellers Look Toward Bigger 2024 Bonus Rewards; Debt capital markets pay up 23% after falling by more in 2023
Will Kubzansky - Bloomberg
Wall Street bankers who help companies sell debt are poised to get bigger bonuses for their work in 2024 and may collect even higher rewards next year if issuance trends continue, according to recruiting and compensation specialists. Search firm Options Group predicts US debt capital markets professionals will get a 23% increase in total pay compared with 2023. Compensation consultant Johnson Associates Inc. forecasts an even bigger 25% to 35% rise for bond underwriters. Next year could be even better.
/jlne.ws/4f6CJG4
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Lilly to Boost Obesity Drug Supply With $3 Billion Expansion; Company will expand its newly acquired facility in Wisconsin; Investment is Lilly's biggest outside home state of Indiana
Madison Muller and Miranda Davis - Bloomberg
Eli Lilly & Co. is spending another $3 billion to build out its US manufacturing footprint as it ramps up production of its blockbuster diabetes and weight-loss drugs. The latest investment - the biggest outside the company's home state of Indiana, will expand a newly acquired production plant in Wisconsin, with construction expected to begin next year, according to a statement on Thursday. The move will help meet growing demand for injectable drugs like Mounjaro and Zepbound.
/jlne.ws/4gn0r24
The Quest to Turn Human Waste Into Medicine; After success in early stage trials, MaaT Pharma is on the verge of becoming the first company to have an approved microbiome-related product for cancer care.
Jason Gale - Bloomberg
At MaaT Pharma's manufacturing center on the outskirts of Lyon in southeast France, a motherlode of human poo arrives every few months. From a white courier van, the refrigerated samples-individually packaged in sealed bags-are whisked to a biocontainment laboratory. There, a technician injects each pouch with a chemical solution. This liquefies the contents to maximize the volume of, um, material that can be extracted while preserving and protecting bacteria from damage.
/jlne.ws/3ZJxwi7
No, Sanitizing Cow Burps Won't Sour Your Milk or Contaminate Your Cheese; A plan to introduce Bovaer into UK cattle feed to reduce methane emissions has prompted a wave of disinformation.
Lara Williams - Bloomberg Opinion
It perhaps shouldn't have been a surprise when news of a project to tackle methane emissions by the dairy industry led to a wave of misinformation and calls to boycott butter. After all, this is a world where the incoming US health secretary, Robert F. Kennedy Jr., considers fluoride - a mineral credited with protecting millions of children from the dangers of bad teeth - a neurotoxin and says raw milk - which may contain pathogens including H5N1, otherwise known as bird flu - has been unfairly kept from Americans. And yet, after years of research, safety trials and usage in herds, the plan to sanitize cow burps has prompted a backlash driven by social media, catching those involved off guard.
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The Dangerous Underworld of Wild Monkey Laundering; In the premiere episode of a new season of Bloomberg Investigates, we show how a brutal black market for animals used in drug testing puts humans at risk.
Adrianne Jeffries - Bloomberg
Monkeys are critical to modern society and the research behind effective pharmaceuticals used to treat and prevent disease. In 2020, the coronavirus pandemic turbocharged an already surging demand for lab monkeys used in vaccine testing, particularly the highly prized long-tailed macaque. When China-the supplier of 70% of all bred monkeys-banned their export, a sudden shortage created a grim opportunity to profit.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | World Bank Raises Record $100 Billion for Aid to Poorest Nations; Bank chief Banga meets goal of setting record fundraising; Two thirds of IDA lending over past decade has gone to Africa
Eric Martin - Bloomberg
The World Bank received pledges to deploy a record of $100 billion via its unit focused on low-interest loans and grants to the poorest nations. The total figure to fund its International Development Association, whose resources must be replenished every few years, builds on pledges from donor countries announced this week totaling $24 billion, the bank said in a statement.
/jlne.ws/4giqB5U
Norway's Finance Watchdog Sees Risk of Sharp Home Price Rise
Ott Ummelas - Bloomberg
Norway's banks may face higher risks from a potential home price rally in a nation with the most indebted households in the developed world, its financial watchdog warned. The planned easing of lending regulations from January would boost housing valuations, Per Mathis Kongsrud, director general of the Financial Supervisory Authority, said in an interview in Oslo. Should the expected reduction in credit costs turn out steeper than projected, it could lead to "a rather sharp" rise in home prices, he said.
/jlne.ws/4fSbm3T
Trump's Gulf Dealmaker Helps Family Cash In on Property Boom
Zainab Fattah and Tom Maloney - Bloomberg
To get a sense of the Trump Organization's business ambitions in the Middle East, look no further than Ziad El Chaar. The low-key chief executive officer of Dar Global Plc has been the Trump family's go-to-guy in the region for over a decade. In recent months, he orchestrated deals with the US president-elect's eponymous firm to build villas in Oman and new towers in Saudi Arabia and Dubai.
/jlne.ws/4imKcDM
Africans Demand a Bigger Share of Their Natural Resources Wealth; It's not just military juntas resorting to "resource nationalism." Democracies like Botswana, Senegal and Zambia are demanding better deals, too.
Justice Malala - Bloomberg
If you thought the detention and subsequent release of Resolute Mining Ltd.'s chief executive by the government of Mali two weeks ago was a one-off, you would have been wrong. Last week, as Resolute paid the second, $50 million tranche (the first was $80 million) of a $160 million settlement to the west African country's military junta, Canadian mining giant Barrick Gold Corp. announced that four of its employees in the country had also been detained. Mali claims Barrick owes $500 million in back taxes while the company says it has already made an $85 million payment of an undisclosed sum. (Mali had demanded $380 million from Resolute in new tax assessments.)
/jlne.ws/3VmOvW4
Foreign Investors Flock to South African Bonds, Skip Stocks; Non-residents set for ninth straight year of net stock sales;l Local bonds favored as economic outlook brightens, says UBS
Mpho Hlakudi and Colleen Goko-Petzer - Bloomberg
Foreign investors are wading into South African government bonds while steering clear of equities, despite a stock-market surge that's left emerging-market peers in its wake. Non-residents have purchased a net 25.8 billion rand ($1.4 billion) in South African bonds this year, according to data from the Johannesburg Stock Exchange. By contrast, they've sold a net 127 billion rand of equities - heading for the ninth straight year of outflows.
/jlne.ws/3ZCKkb4
Smithfield: last orders for London's historic meat market; Butchers mourn closure of market at heart of the UK capital's food trade for 900 years
Joshua Oliver - Financial Times
Just before midnight, floodlit rows of heavy lorries block the streets around Smithfield market in the City of London. Their open doors reveal rows of dangling pig carcasses waiting to be hooked on to overhead rails and delivered to the butchers inside. Well-dressed passengers in black cabs - the last of the daytime City dwellers - wait in the log jam of trucks. To the side of the road, one driver put down a paper cup of tea and reached to light a cigarette out the window of his white van, as he waited for a load of pork and lamb for his twice-weekly delivery to butcher shops in Essex.
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| Miscellaneous | | Stories that don't quite fit under the other sections | Guardian Owner to Sell Observer to Tortoise for £25 Million Investment
Olivia Solon - Bloomberg
The UK's Guardian Media Group has agreed to sell the Observer, the world's oldest Sunday newspaper, to online news startup Tortoise Media. Tortoise agreed to invest £25 million ($31.9 million) in the British title over the next five years and has pledged to keep publishing the print edition of the approximately 230-year-old paper, according to an emailed statement from the Guardian Media Group and its owner, the Scott Trust, on Friday.
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