| August 12, 2022 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
To honor DTCC CEO Michael Bodson on his retirement, the NYSE invited him to ring the closing bell yesterday. NYSE President Lynn Martin joined Bodson and his family on the NYSE bell ringing terrace for the occasion.
For the opening bell of the NYSE yesterday, Josh King, the chief communications officer of ICE, has written a recap of the "Opening Bell to celebrate the opening of the Jackie Robinson Museum, just a few blocks from the Exchange."
King tells the story of Robinson's history with the NYSE, including when he visited the floor in 1961. The NYSE and Jackie Robinson have a long history together and the museum gives that story and more a permanent home.
Doug Ashburn's employer, Encyclopedia Britannica, is looking for a SEO Manager
Leave it to Thom Thompson to throw it right back at JLN for his shoutout yesterday. He posted a nice note to LinkedIn about his time at JLN and how he missed the opportunity to cover the JP Morgan spoofing case, a favorite subject of his. Then he linked his comments to the terrific Special Report he and former colleague Suzanne Cosgrove collaborated on, "JLN Special Report: Chicago Trading Community Faces Off In Spoofing Fight."
Cboe Global Markets Chairman and CEO Ed Tilly's alma mater has a new president, Michael H. Schill has been named the 17th president of Northwestern University.
Abaxx Technologies Smarter Markets podcast series presents "When Markets Break" on August 13 at 10 a.m. EST. The host is David Greely and you can find it at www.smartermarkets.media.
Peter Borish was interviewed by Michael Covel on Trend Following Radio on the topic of forex.
ICE reported on LinkedIn that "ICE has extended the UK power futures curve out to March 2028 due to market demand and volume has already been registered in Summer 2027. In the last year, open interest in ICE's UK power market has grown by more than 200% and volume has grown by more than 700%."
Johnson & Johnson said it will discontinue its talc-based baby powder globally in 2023 after the company was sued by cancer patients who claimed its talc was contaminated with asbestos. J&J stopped using the ingredient in North America in 2020, The New York Times reported. How many times did I sprinkle this on the bottoms of my children after changing a diaper? WOW!
John J. Lothian & Company, Inc.'s email server for JohnLothian.com is moving over the weekend to a new service provider and some of our emails may bounce. If this happens, just resend on Monday and we should be all set by then. If you need to reach me in the interim, I can be reached at lothian.john@gmail.com.
Yesterday I sold my 2011 MacBook Pro back to Apple for the sum of $100. My daughter Kat is buying a new computer and this will help offset her cost. I wore that computer out and replaced it in 2019. Those new MacBook Pros look very enticing.
I also gave back to Apple two very old iPads and two old iPhones for recycling. There was no return value for the items any more.
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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Registration is open for FIA Expo taking place this 14-15 November at a new location - the Sheraton Grand Riverwalk Chicago. Experience compelling panels that build your knowledge, product demos that deliver innovative solutions, and networking opportunities that celebrate human connections. Whether you're a trader chasing the latest trends affecting the markets, a back office manager seeking ways to increase operational efficiency or a business strategist looking for what's next, you'll find it at Expo. This year, FIA is offering full conference, single day and exhibits plus registration options. Learn more and register by 2 September for the best rates!
Register HERE
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Western companies wake up to China risk; Taiwan crisis has shown the need to hedge exposure and draw up contingency plans
The editorial board - FT
A global pandemic, a major war in Europe — both were risks that seemed almost unimaginable, until they happened. Now the tensions with China provoked by US House Speaker Nancy Pelosi's trip to Taiwan last week, coming just months after Russia's invasion of Ukraine, have forced businesses to confront the possibility that a danger long seen as similarly distant could yet come to pass: a US-China conflict, or something close to it.
/jlne.ws/3zV2CpQ
***** Often there are costs the bean counters can see when they recommend outsourcing something. Now we are going to see some of those costs. ~JJL
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Next financial crisis likely to centre on private markets; The rush into the sector was predicated on the continuous availability of cheap capital
Satyajit Das - FT
Just as US subprime mortgages were at the heart of the 2008 financial turmoil, a future crisis may centre around booming private markets. Believing they had found the latest formula for success, investors have ploughed about $9.8tn into unlisted equity, private credit and early stage or new venture funding. Alongside well-known problems — overvaluation, optimistic assumptions, aggressive accounting and high debt levels, there are additional concerns.
/jlne.ws/3QmvNcj
***** I like public markets. I like published prices determined in a fair and open process. The more information we have, the better we can handle risk. Private markets just seem to say hidden risks.~JJL
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Extreme Heat Uncovers Lost Villages, Ancient Ruins and Shipwrecks; In an eerie twist, volatile weather and heat-induced drought are unearthing glimpses of lost archaeological treasures and forgotten history.
Kevin Simauchi - Bloomberg
Extreme heat this year has triggered wildfires, drought and melting glaciers. Less expectedly, it's also revealed some weird and dark things about our past—shipwrecks, corpses, ghost villages, ornamental gardens and ancient cities. Here's a look at some of those discoveries.
/jlne.ws/3JNVdx8
****** History is being revealed before our eyes, but wear sunglasses.~JJL
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Scotch whisky shows surprising strength in global gloom; Distillery numbers at record high, with exports on track to match or pass pre-pandemic levels
Lukanyo Mnyanda - FT
Alan Powell planned to retire in 2021. Instead, the 63-year-old who acts as consultant to investors in new distilleries says he has never been busier thanks to the booming market for Scotch whisky. In a period that has included a pandemic that stopped travel and kept people at home, big changes to UK trade rules because of Brexit, supply chain problems and an inflation spike that is threatening to push major economies into recession, whisky has been surprisingly resilient.
/jlne.ws/3JPNxKQ
*****Beer may be threatened by limited water supplies, but Scotch whiskey is going strong.~JJL
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8 People Sitting on Benches, Talking About Recession
Julia Rothman and Shaina Feinberg - The New York Times
Inflation got better last month but is still near a 40-year-high. The job market is hot. And official data is sending conflicting signals about whether we're in a recession. It's hard to know how to think about the economy right now.
/jlne.ws/3Qj8sIt
***** Life is like a box of chocolates, you never know what you are going to get.~JJL with a h/t to Forrest Gump
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Thursday's Top Three
Our most read story yesterday was a LinkedIn post, What a typical day is like for a Citadel intern. It's a short video following Vernon, a software engineer for Citadel. Second was a press release from the SEC, Statement on Proposed Joint Amendments to Form PF, by chairman Gary Gensler. Third most read was from The Wall Street Journal, Ex-JPMorgan Traders Convicted in Federal Fraud Trial about spoofing on their Metals desk.
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| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
Publisher | | | Sarah Rudolph
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| Lead Stories | Robinhood must face U.S. market manipulation claims over 'meme stock' rally, judge rules
Jody Godoy and Hannah Lang - Reuters
Stock trading platform Robinhood Markets Inc (HOOD.O) must face market manipulation claims over restrictions it placed on trading during last year's "meme stock" rally, a U.S. judge ruled on Thursday. U.S. District Court Judge Cecilia Altonaga in Miami said in the ruling that investors in GameStop Corp (GME.N), AMC Entertainment Holdings Inc (AMC.N) and seven other stocks can proceed with a proposed class action lawsuit alleging the restrictions artificially depressed share prices.
/jlne.ws/3C2r1wq
Finance Industry Warns EU's Benchmark Rules Pose 'Systemic Risk'; Trade groups say EU proposals could disrupt financial markets; Rules are a response to Libor scandal, benchmark manipulation
Greg Ritchie and Libby Cherry -Bloomberg
A consortium of financial trade associations rallied against proposed European Union regulations that would restrict the use of financial benchmarks, warning they could disrupt markets and even pose a systemic risk. The group, spearheaded by the International Swaps and Derivatives Association, are pushing against a blanket ban against foreign benchmarks that don't qualify with the EU's requirements. Instead, they argue benchmarks should be banned on a case-by-case basis.
/jlne.ws/3JOOEKG
Rising Food Prices Could Become a Business Risk, Analysts Say; Food shortages stemming from the Ukraine war could create trouble—including for businesses far from the battleground
Richard Vanderford - WSJ
Rising global food prices and shortages of grain and fertilizer stemming from the war in Ukraine could create further economic turmoil, risk analysts said. In some countries, this could trigger unrest and test the resiliency of Western companies with overseas operations in the coming months, they added. "Food insecurity is one of our [company's] main topics and one of the things you really have to look out for—there's no getting away from it," said Srdjan Todorovic, the head of terrorism and hostile environment solutions at Allianz Global Corporate & Specialty, part of Germany-based financial-services company Allianz SE. "This is absolutely a global problem."
/jlne.ws/3bL8ABS
Benchmark Rate SOFR Has Caught On. But One Version Is Costing Companies More to Hedge; A successor to the tainted Libor rate, SOFR is gaining wide acceptance. Its term version can help businesses forecast cash, but it can cost more to hedge than the overnight rate due to restrictions on banks
Mark Maurer - WSJ
Companies are paying more to hedge a forward-looking interest-rate benchmark that is being widely used to replace the troubled London interbank offered rate, an added expense that comes as finance chiefs are looking to cut costs. Benchmark rates such as Libor underpin trillions of dollars of financial contracts, such as corporate loans, mortgages and interest-rate derivatives. Most companies have picked the Secured Overnight Financing Rate, or SOFR, as their replacement for Libor, which is being phased out after a manipulation scandal. Libor is set to expire June 30, 2023.
/jlne.ws/3SJijZT
Credit Suisse Weighs Break With Trading Unit That Minted Billions
Donal Griffin, Olivia Fletcher and Marion Halftermeyer - Bloomberg
When bailed-out US mortgage giant Fannie Mae wanted to sell almost $2 billion of troubled American home loans in early 2017, only one bank showed up for the auction: Credit Suisse Group AG. The Swiss seemed unlikely bidders, having been battered by US mortgages in the financial crisis. And the division pushing for the deal -- known as the securitized products group, or SPG -- had contributed to steep losses just months earlier that blindsided top management in Zurich.
/jlne.ws/3JQvrsa
Chinese Brokers Eye Germany for Banking Base Amid US Tensions; Citic among firms exploring options for German operations; Stock connect program designed to boost cross-border listings
Evelyn Yu, Vinicy Chan, and Swetha Gopinath - Bloomberg
Chinese investment banks are looking to expand their operations in Germany as a largely moribund listings market in Hong Kong and growing tensions between Washington and Beijing encourage firms to consider overseas financing offerings in Europe.
/jlne.ws/3pkslmA
Glencore cuts ties with Chinese trader over missing $500mn of copper;Global trading groups have stopped supplying Huludao Ruisheng following the scandal
Cheng Leng and Harry Dempsey - FT
Glencore and other global trading groups have stopped supplying Chinese metals merchant Huludao Ruisheng after $500mn worth of copper went missing in a scandal that threatens to squeeze commodity financing in the country.
/jlne.ws/3zKGdLK
SEC Investigating Melvin Capital Management; Regulatory agency asking about hedge fund's risk controls, disclosures following meme-stock losses
Juliet Chung, Susan Pulliam and Dave Michaels - WSJ
The U.S. Securities and Exchange Commission is looking into Melvin Capital Management risk controls and investor disclosure after the hedge fund was crippled by the meme-stock rally last year, said people familiar with the matter. The regulator has contacted investors in the hedge fund in recent months as part of an investigation into what Melvin founder Gabriel Plotkin and other senior executives told them following the meme-stock rally in January 2021 and whether it misled investors when it raised money last year. The SEC has obtained from Melvin its general communications with investors and has sought information about what the firm disclosed about the risks of its investment strategy to clients, the people said. Melvin is in the process of winding down after Mr. Plotkin surprised investors in May by telling them he would return their money.
/jlne.ws/3zPQCWz
Extreme drought is gripping Europe, intensifying heat and fueling fires; Many locations have seen their driest summer on record as rivers dwindle to a trickle
Matthew Cappucci - The Washington Post
Thousands of people have died in Europe this summer from historic heat waves that have fueled massive wildfires. The weather has been far from normal — and even a casual observer cannot help but notice that something is amiss. Yet, as temperatures spike and flames scorch parched landscape, there's an even more widespread and potentially disastrous climate-fueled hazard wreaking havoc on the continent: extreme drought.
/jlne.ws/3AjaYcw
Lawsuit accuses Dallas' Mark Cuban of duping investors with crypto 'Ponzi scheme'; The suit claims that 3.5 million Americans lost over $5 billion dollars in cryptocurrency assets.
Natalie Walters - The Dallas Morning News
A new lawsuit accuses Dallas Mavericks owner and billionaire Shark Tank investor Mark Cuban of partnering with now bankrupt crypto platform Voyager Digital to dupe investors in "a massive Ponzi scheme." The class-action suit, filed in federal court in southern Florida on behalf of millions of investors, alleges that 3.5 million Americans lost over $5 billion in cryptocurrency assets through Voyager. Voyager temporarily suspended all trading and withdrawals on its platform on July 1 shortly before filing for bankruptcy in New York on July 5, listing both assets and liabilities between $1 billion and $10 billion. Voyager users are waiting to see if they will get their money back when the company comes out of bankruptcy, either on its own or with a new owner.
/jlne.ws/3pgNWg2
Mark Carney to become chair of Brookfield's asset management spin-off; New role for two-time central bank governor comes as group takes steps towards succession plan
Antoine Gara - FT
Mark Carney, the former governor of the Bank of England, will become the chair of Brookfield Asset Management, the investment arm of the Canadian conglomerate that will be spun off by the end of this year.
/jlne.ws/3QC7SWa
Miami becomes the new boom town for corporate lawyers; Kirkland & Ellis is one of many firms relocating to capitalise on a migration accelerated by the coronavirus pandemic
Kate Beioley, Sujeet Indap and Ortenca Aliaj - FT
Since US law firm Kirkland & Ellis announced it was setting up shop in Miami, private equity partner Jeremy Liss has found himself very popular with his colleagues. The 49-year old is trading the windy city of Chicago for South Florida heat to run Kirkland's new outpost and has been fielding calls from lawyers keen to join him ever since.
/jlne.ws/3dpNr0i
Asset managers bet big on crypto despite market rout; Abrdn, BlackRock and Charles Schwab have done deals or launched products tied to digital assets this month
Laurence Fletcher, Scott Chipolina and Brooke Masters - FT
Big-name money managers are stampeding into digital assets, finding new ways to monetise investor interest even as trading volumes and prices for bitcoin and other cryptocurrencies have slumped.
/jlne.ws/3SPy55p
EDX Markets appoints Citadel Securities alumnus as CEO; Incoming CEO brings considerable experience to EDX Markets, having served at Citadel Securities and Knight Equity Markets over the last two decades.
Wesley Bray - The Trade
Former global head of business development at Citadel Securities, Jamil Nazarali, has been appointed as chief executive officer at EDX Markets. Nazarali has spent the last 11 years at Citadel Securities, initially joining as senior advisor to the company's chief executive in 2011.
/jlne.ws/3JXfuAA
Defining a block in the 21st century
The Trade
Block trading is a long-established and vital function of equity markets. As an industry, we define a "block" as a sizeable trade that will minimise market impact and information leakage by interacting only with selective orders in the marketplace. In practical terms, this means that we generally interact with a small percentage of orders placed in the market, which will vary by stock and market conditions.
/jlne.ws/3JX8MdJ
A Storm Brews in Heating Oil: Elements by Javier Blas; The US and Europe are running out of time to refill storage tanks.
Javier Blas - Bloomberg
Today's Take: The Storm Brewing in Heating Oil
Heating oil is not what naturally comes to mind in the middle of August — particularly during a heat wave in Europe. Moreover, the market appears calm on the surface, with prices down 30% since March.
/jlne.ws/3pgE1Hi
Crypto-Laundering Suspect Arrested as Dutch Cite Link to Tornado; Man described as "developer" for the cryptocurrency service; Arrest comes after mixer was sanctioned by the US Treasury
April Roach and Emily Nicolle - Bloomberg
Dutch authorities arrested a 29-year-old man in Amsterdam suspected of being involved in concealing criminal financial flows and facilitating money laundering through cryptocurrency service Tornado Cash.
/jlne.ws/3w3ELmL
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Putin's War Hurls His Economy Back Four Years in One Quarter; GDP probably shrank last quarter for first time in over a year; Post-invasion drop milder than first forecast, may last longer
Bloomberg
President Vladimir Putin's invasion of Ukraine set Russia's economy back four years in the first full quarter after the attack, putting it on track for one of the longest downturns on record. In a bleak tally of the war for Russia, an economy that was picking up speed at the start of 2022 swung into a contraction during the second quarter. Data due on Friday will show gross domestic product shrank for the first time in over a year, dropping an annual 4.7%, according to the median forecast of 12 analysts surveyed by Bloomberg.
/jlne.ws/3vYCt8G
Sanction All Russian Banks, Ukraine's Ambassador to the US Urges; Private banks are aiding Putin's invasion, Kyiv's envoy says; She also seeks 'sponsor of terrorism' designation on Russia
Eric Martin - Bloomberg
Ukraine is calling on President Joe Biden's administration to sanction all Russian private banks to help end President Vladimir Putin's ability to wage war, according to Kyiv's envoy to Washington. President Volodymyr Zelenskiy's government wants the US to add a couple of banks per week to its list of sanctioned financial institutions, according to Ambassador Oksana Markarova, adding that she's conveyed the request to the Treasury Department. "Sanctions are as important as weapons," Markarova, a former finance minister, said Thursday in an interview in Bloomberg's Washington office.
/jlne.ws/3PjcPCe
UK says Russia 'starting to fail' in Ukraine war; UK defence secretary's remarks come as Western countries promise $1.55bn more in military aid to Kyiv.
Al Jazeera
The British defence secretary has said Russia is unlikely to succeed in occupying Ukraine as Western nations pledged 1.5bn euros ($1.55bn) more to to help boost the Ukrainian military in its fight against Russia. Ben Wallace said Russia's invasion had "faltered" and was "starting to fail" as 26 countries agreed to give more financial and military aid to Ukraine at a conference in Copenhagen on Thursday, co-hosted by Wallace and the Danish defence minister Morten Bodskov.
/jlne.ws/3dect2j
Ukraine Wins Payment Pause for $20 Billion of Foreign Bonds
Volodymyr Verbyany and Maciej Onoszko - Bloomberg
Ukraine won approval for a debt-payment freeze from the holders of its international bonds, gaining relief for a budget wrecked by Russia's invasion. Investors representing around 75% of $19.6 billion worth of Ukraine's foreign bonds agreed to defer coupon and principal payments until 2024, the Finance Ministry in Kyiv said on Wednesday. The restructuring process is backed by Ukraine's key allies, including the US and the International Monetary Fund, as the country needs cash for everything from paying pensions to defending against a much bigger and richer aggressor. The latest move, along with other measures put forward to creditors, could save the sovereign $5.8 billion.
/jlne.ws/3SIEDml
Russia could buy yuan, rupees, Turkish lira for rainy day fund, central bank says
Reuters
Russia is considering buying the currencies of "friendly" countries such as China, India and Turkey to hold in its National Wealth Fund (NWF), having lost the ability to buy dollars or euros due to sanctions, the central bank said on Friday.
/jlne.ws/3PlHO0z
Exclusive: Bank agrees to process Russian oil transit payment to central Europe
Jan Lopatka and Marek Strzelecki - Reuters
A European bank has agreed to process a payment for the transit of Russian oil through Ukraine, Slovak refiner Slovnaft and another source familiar with the matter said, removing the cause of a stoppage of oil supplies to central Europe last week.
/jlne.ws/3bNLTg6
Ukraine, Russia trade blame for risk of nuclear disaster at frontline plant
Natalia Zinets - Reuters
Ukraine and Russia accused each other on Friday of risking nuclear disaster by shelling Europe's largest nuclear power plant, occupied by Russian forces in a region expected to become one of the next big front lines of the war.
/jlne.ws/3zVA3Zg
Russia says U.S.-made radar system destroyed, HIMARS missiles downed
Reuters
Russia's Defence Ministry said on Friday that it had destroyed a U.S.-made AN/MPQ-64 radar system in Ukraine's Donetsk region.
/jlne.ws/3C9KLy2
Western sanctions have had 'limited impact' on Russian oil output, says IEA; Rerouting of Moscow's crude to India, China and Turkey has helped offset curbs elsewhere
Tom Wilson - FT
Western sanctions have had "limited impact" on Russian oil output since the start of the war in Ukraine, the International Energy Agency said on Thursday, as it raised its forecast for Russian crude production into 2023. Moscow's exports of crude and oil products to Europe, the US, Japan and Korea had fallen by nearly 2.2mn barrels a day since its full-scale invasion of Ukraine, the Paris-based group said. But the rerouting of flows to countries including India, China and Turkey had mitigated financial losses for the Kremlin.
/jlne.ws/3pfZf88
Russia's diplomats are now reduced to propagandists; Once regarded as a sophisticated elite, foreign ministry officials now use extreme language to prove loyalty to the Kremlin
Alexander Baunov - FT
The Russian Embassy in the UK sparked outrage and fierce criticism recently when it tweeted that prisoners of war from Ukraine's Azov battalion, who had defended the city of Mariupol right up until the bitter end, deserved "a humiliating death" by hanging. Following an avalanche of complaints, Twitter's moderators decided to leave the tweet visible, as a kind of monument to the madness into which Russian diplomacy has descended.
/jlne.ws/3QI82vo
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | SZSE Issued Evaluation Method of ESG and ESG Indices to Improve SZSE Characteristic Index System and Provide Services to Low-Carbon and Sustainable Development
CISION
On July 25, Shenzhen Securities Information Co., Ltd. (hereinafter referred to as "Shenzhen Securities Information"), a wholly-owned subsidiary of the Shenzhen Stock Exchange ("SZSE"), formally launched the evaluation method of CNI ESG and released the ESG Indices and the ESG Top Indices of the SZSE core indices (namely, the Shenzhen Component Index, the ChiNext Index, and the Shenzhen 100 Index) following such evaluation method. These are the practical measures taken by SZSE to fully implement the new development concept, make full use of the platform functions of the capital market, continuously improve SZSE's characteristic index system, actively meet the diversified investment needs of the market on ESG, and provide better services for the green, low-carbon, and high-quality development.
/yhoo.it/3QAXxd2
CME Group Foundation Awards 2022 Higher Education Scholarships to Rising Black and Latinx Students; More than $2.5 million in Foundation scholarships awarded since 2019; Students eligible for $20,000 in grants each year for up to three years
CME Group
CME Group Foundation today announced that 18 rising Black and Latinx students majoring in finance, technology and related fields at 11 partner colleges and universities in Illinois have been awarded $20,000 in scholarships each to further their education. While many scholarship programs are aimed at helping freshmen start college, the CME Group Foundation Scholarship Program works to ensure that sophomores, juniors, and seniors can finish their four-year degrees. Winners can reapply for up to three years of support, for a total of $60,000 in financial assistance. Since its 2019 launch, this program has awarded more than $2.5 million in scholarships to 69 talented college students.
/bit.ly/3bLCdmx
Fixed Income market briefing August 2022
Lee Bartholomew - Eurex
With the summer in full swing, and scorching temperatures persistent across Europe, markets have had plenty of event risk to digest. Volatility continued throughout July, and we saw raised volumes across the portfolio, which we expect to continue in August. Futures and options volumes were 31.5% and 23% higher, respectively. Listed FX volumes continued to be well supported, increasing 630% compared to last year. Throughout the increased volatility, we continue to engage regularly with our members to ensure that key initiatives remain on track and to exchange perspectives, insights, and updates for the remainder of the year.
/bit.ly/3SKrJUS
Risk Australia 2022
Eurex
Start:30 Aug 2022 08:55 AM; End 30 Aug 2022 04:55 PM; Duration 8 hours; Location: Australia. Eurex is partnering with Risk Australia to discuss current challenges of risk management and to provide an unparalleled insight into what is happening at the cutting edge of risk management and regulation in Australia and across global markets. Drawing on its experience with recent developments in Euroswap clearing in Europe, we are delighted to join a panel of distinguished speakers covering all parts of the value chain.
/bit.ly/3PfvWNA
Why sustainability needs a strong European capital market
Deutsche Börse AG
If we want to successfully transform Europe's economy into a climate-neutral and sustainable one, we need a more extensive Capital Markets Union, a transformation taxonomy, and practicable solutions for reporting requirements and financial regulations, demands Stephan Leithner, Executive Board Member at Deutsche Börse AG, in his opinion piece.
/jlne.ws/3dtFhEl
HKEX welcomes enhancement to Stock Connect trading calendar
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) welcomes the joint announcement today (Friday) by Hong Kong's Securities and Futures Commission and the China Securities Regulatory Commission on the adjustments to the trading calendar between the Hong Kong and Mainland China markets under Stock Connect. After the enhancements, the Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of HKEX, Shanghai Stock Exchange and Shenzhen Stock Exchange will concurrently allow trading under Stock Connect on all trading days when both the Hong Kong and Mainland China markets are open.
/bit.ly/3Qmro9h
JSESheInvests2022 contributes to building fearless women investors
JSE
The Johannesburg Stock Exchange (JSE) is helping women to take control of their investment journeys by fearlessly building their financial prosperity at this year's #JSESheInvests 5th annual conference. The JSE is bringing together accomplished female entrepreneurs, experts and inspiring leaders in finance to empower and equip women to navigate opportunities with confidence including Mbali Nwoko, a multi-award-winning farmer, entrepreneur, columnist and podcaster; Nerina Visser, Director and co-owner at etfSA; Erica Bruce, Executive Director and Stockbroker in Control at Navigare; Jessica Maluleke from Easy Equities, and many others. For the first time since the pandemic lockdowns, participants will be able to attend the conference in person on Saturday, 13 August, which will to be held at the JSE in Sandton. There is also a virtual option for those who are unable to attend in person.
/bit.ly/3pgtTyg
Moscow Exchange Launches Federal Treasury Auctions with Sub-Federal Bonds
MOEX
The Moscow Exchange, together with the Federal Treasury, will provide money market participants with the opportunity to raise federal budget funds in repos with a central counterparty (CC) secured by subfederal bonds. The participation of the Central Committee, whose functions are performed by the National Clearing Center (NCC, part of the Moscow Exchange Group), guarantees the reliability of trading and settlements on concluded deals.
/bit.ly/3JRSra1
Request For Proposal: Market Making Of The Extended Trading Hours Period (BAX, CGZ, CGF, CGB, SXF)
TMX
Bourse de Montréal Inc. (the "Bourse") is issuing a Request for Proposal ("RFP") for the market making of the products listed below during the following trading hours periods:
/bit.ly/3QmDkrQ
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | TNS Launches Market Data Services For Borsa Istanbul - Continuing The Global Expansion Of TNS' Highly Engineered Trading Network
Mondovisione
Transaction Network Services (TNS) is now connected to Borsa Istanbul (BIST) as a market data vendor. Opening up access to Turkey's sole exchange with order routing and market data connectivity to the BIST matching engine in Istanbul allows TNS' customers to capitalize on trading activities in this growing market. Under the new agreement, TNS can deliver the BIST market data to any location globally via a high availability backbone with minimal network latency. TNS' low latency network enables clients to access BIST alongside the comprehensive European, US and Asia Pacific exchange connectivity already provided.
/jlne.ws/3QDfwQ1
A looming test for tech antitrust battles; Amazon's acquisition of iRobot comes as data takes centre stage in competition concerns
Richard Waters - FT
The idea that your robot vacuum cleaner could suck up data about your home and send it back to Amazon might strike some people as creepy. If that happened, would Alexa start suggesting you buy a new rug when the old one wears out, or recommend a better way to arrange your furniture?
/jlne.ws/3JO1TeG
Talos Adds Highly Regarded Wall Street Technologist Neal Pawar as Strategic Advisor; Pawar brings over 25 years' experience driving scale through technology for some of the industry's largest buy- and sell-side firms at every stage of the investment lifecycle
Talos
Talos, the premier provider of institutional digital asset trading technology, today announced the appointment of Neal Pawar as the company's latest strategic advisor. Mr. Pawar joins a distinguished group of capital markets veterans on Talos's advisory board, including Jennifer Hill, who previously served as CFO of Merrill Lynch & Co, David Cushing, ex-Director of Global Trading at Wellington, and Tim Grant, Galaxy Digital's Head of Europe.
/jlne.ws/3vZmqaG
Hedge funds demand more customisation capabilities and deeper dark aggregation; Adler Smith, senior associate at Aite-Novarica Group, looks at evolving demands from hedge funds as well as how algorithm usage is changing, with reference to The TRADE's Algorithmic Trading Survey: Hedge Fund 2022.
The Trade
In 2021, the hedge fund industry posted double digit returns for the second year in a row, but not everything was rosy. According to the Barclays Hedge Fund Index, hedge funds returned 10.22% in 2021, significantly lagging the S&P 500, which posted a 26.89% return over the same period.
/jlne.ws/3zYG5su
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| Cybersecurity | | Top stories for cybersecurity | I'm a security reporter and got fooled by a blatant phish; Think you're too smart to be fooled by a phisher? Think again.
Dan Goodin - Ars Technica
There has been a recent flurry of phishing attacks so surgically precise and well-executed that they've managed to fool some of the most aware people working in the cybersecurity industry. On Monday, Tuesday, and Wednesday, two-factor authentication provider Twilio, content delivery network Cloudflare, and network equipment maker Cisco said phishers in possession of phone numbers belonging to employees and employee family members had tricked their employees into revealing their credentials. The phishers gained access to internal systems of Twilio and Cisco. Cloudflare's hardware-based 2FA keys prevented the phishers from accessing its systems.
/jlne.ws/3C0tLdH
Government Contractor Compliance in the World of Cybersecurity
Patterson Belknap Webb & Tyler LLP - JDSupra
Nothing is certain in life except death, taxes, and now, data breaches. Data breaches are almost an unavoidable cost of doing business in a globally connected world. As if being victimized by cybercriminals wasn't enough, cybersecurity and data privacy increasingly have become the focus of private class action litigation and government enforcement actions.
/jlne.ws/3Pm2WUa
New Cross-Industry Group Launches Open Cybersecurity Framework
Jeffrey Schwartz - DarkReading
Amazon Web Services (AWS) and Splunk are leading an industry effort of 18 systems and security vendors to standardize how different monitoring systems share security alerts. The goal is to deliver a simplified and vendor-agnostic taxonomy to help security teams ingest and analyze security data faster.
The companies announced the Open Cybersecurity Schema Framework (OCSF) during the Black Hat USA conference on Wednesday in Las Vegas. The participating companies are Broadcom (Symantec), Cloudflare, CrowdStrike, DTEX, IBM Security, IronNet, JupiterOne, Okta, Palo Alto Networks, Rapid7, Salesforce, Securonix, Sumo Logic, Tanium, Trend Micro, and Zscaler.
/jlne.ws/3C1Uerq
How To Ask For A Cybersecurity Budget
Shankar Somasundaram - Forbes
CISOs and other information security professionals frequently run up against a wall when attempting to secure an increased IoT cybersecurity budget from decision-makers. Common objections include: "We've never been attacked," "We have other priorities and need to watch our spending this quarter," and "Let's go slowly and see if we really need the protection."
/jlne.ws/3QAYkLH
Cybersecurity guru Devin Redmond on the 'threat actors' making cyber such a hot sector in the private markets
Lucy Brewster - Fortune
Few industries have been spared during 2022's meltdown, and even fewer are reporting optimistic growth projections for the year ahead. Yet cybersecurity remains one bright spot. As Fortune previously reported, the global cybersecurity market is expected to reach $403 billion by 2027—making the compound annual growth rate 12.5% from 2020 to 2027. Industry hiring remains hot, with unfilled cybersecurity positions worldwide growing 350% from 2013 to 2021. I recently talked to Devin Redmond, co-founder and CEO of digital compliance firm Theta Lake to discuss how new communication technology has changed the security landscape and how companies can protect themselves from cyber attacks.
/jlne.ws/3K4WtMJ
Ukraine cyber chief pays surprise visit to 'Black Hat' hacker meeting in Las Vegas
James Pearson - Reuters
Ukraine's top cyber official addressed a room full of security experts at a hackers' convention following a two-day trip from the capital, Kyiv, to a golden casino in Las Vegas.
/jlne.ws/3Qe6E3D
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| Cryptocurrencies | | Top stories for cryptocurrencies | Tornado Cash Crackdown Shows Limits of Regulating Cryptocurrency Services; Decentralization leaves authorities without target for enforcement; 'difficult, if not impossible, to shut down'
Caitlin Ostroff and Dustin Volz - WSJ
The U.S. sanctioning of a prominent cryptocurrency platform this week exposed technical gaps in the government's ability to prevent criminals, national adversaries and extremist groups from using the services to launder money and finance their operations, analysts said. Among the central challenges: Cryptocurrency platforms are increasingly run by computer code distributed across computers around the world, rather than by individuals facilitating transactions, analysts said. The Treasury Department on Monday imposed sanctions against Tornado Cash, a popular cryptocurrency platform known as a mixer because it blends funds from different users and redistributes them, obscuring their origin. The Treasury Department accused Tornado Cash of laundering billions of dollars in virtual currency, including $455 million allegedly stolen by North Korean hackers. As part of the penalties, officials blocked all property held by the exchange under U.S. jurisdiction and barred U.S. companies and individuals from transacting with it.
/jlne.ws/3AgyYwy
Coinbase has 'plenty of cash' to survive this Crypto Winter: Analyst
David Hollerith - Yahoo! Finance
Coinbase's (COIN) second quarter results earlier this week missed Wall Street estimates, but some analysts see signs the company's balance sheet leaves it well positioned to survive a prolonged "Crypto Winter." In addition to posting $1.1 billion net loss — with $453 million coming from a decline in crypto assets held on Coinbase's balance sheet — the company missed Wall Street's expectations on revenue, trading volume, and assets held on the platform. Between the crypto sector's liquidity crisis in June, and with 8 mentions of "Crypto Winter" during its Tuesday second quarter earnings call, the fate of the first large cap crypto stock hinges on whether the exchange holds enough cash reserves, according to Lisa Ellis, partner with MoffettNathanson.
/jlne.ws/3vZ5Wzj
BlackRock announces new bitcoin trust, sends small token up 35%
David Hollerith - Yahoo! Finance
BlackRock (BLK) announced Thursday the launch of a private trust that will hold bitcoin and seek to track the asset's performance, with Coinbase (COIN) serving as the trust's custodian. The announcement comes one week after Coinbase disclosed a partnership with BlackRock to provide direct access to crypto starting with bitcoin on BlackRock's investment platform, Aladdin. BlackRock, which has aimed to position itself as a leader in environmental, social and governance (ESG) investing, acknowledged that despite bitcoin's high energy consumption, it is "encouraged that organizations such as RMI and Energy Web are developing programs to bring greater transparency to sustainable energy usage in bitcoin mining, and will follow progress around those initiatives."
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Silicon Valley CEO: Cloud computing is this century's 'pervasive computing theme'
Dylan Croll - Yahoo! Finance
Tech giants Amazon (AMZN), Microsoft (MSFT), and Google (GOOG, GOOGL) reported relatively strong growth in their cloud businesses during their recent earnings reports — even amid fears of a looming recession. One Silicon Valley executive probably wasn't surprised. In a recent interview for "Influencers with Andy Serwer" ServiceNow (NOW) CEO Bill McDermott called the cloud the "pervasive computing theme of the 21st century." "It simplifies everything. Everything's on the mobile. Everything's beautiful and easy to use," McDermott told Yahoo Finance, referring to cloud-computing services.
/jlne.ws/3bMJa6E
Coinbase confirms SEC probe, says listing process, staking programs under review
Frances Yue - MarketWatch
Coinbase Global Inc. COIN, -10.77% said it has received investigative subpoenas and requests from the U.S. Securities and Exchange Commission, pointing to potential further pressure facing the crypto exchange, after it posted wider-than-expected losses in the second quarter.
/jlne.ws/3bQ7Z1D
BlackRock pushes into crypto market with bitcoin private trust; Asset manager to offer investment vehicle only to institutional clients in the US
Scott Chipolina and Brooke Masters - FT
BlackRock has announced the launch of a spot bitcoin private trust, deepening a push into digital assets as the crypto industry is recovering from the fallout of a credit crisis.
/jlne.ws/3QCJQdv
abrdn becomes largest external shareholder of digital securities exchange Archax; The move will allow abrdn to offer clients new investment opportunities through digital securities.
Wesley Bray - The Trade
Archax, the UK's first regulated digital securities exchange, has concluded a deal with abrdn, making it the largest external shareholder of the exchange. Established four years ago, Archax provides institutional investors with access to blockchain-based digital assets, serving as a bridge to traditional capital markets. Set to launch later this year, it is the first digital securities exchange to win approval from the Financial Conduct Authority (FCA), with permissions covering trading, custody and brokerage.
/jlne.ws/3CisMG7
Crypto: Mark Cuban Worries About the Merge and Heckles Metaverse Real Estate
Nicole Spector - GoBankingRates
There aren't too many billionaires in the U.S (under 1,000, most likely) and so when one of them shares their thoughts on cryptocurrency, people tend to pay attention. It's no surprise then that famed entrepreneur and Dallas Mavericks owner Mark Cuban (worth $4.7 billion, according to Forbes) attracted tens of thousands of views when he appeared on the popular YouTube channel Altcoin Daily earlier this week to talk crypto.
/jlne.ws/3QBiggX
What the Metaverse Will Mean; The dystopian virtual realities of science fiction are very far from the '3-D internet' now generating so much interest and investment.
Matthew Ball - WSJ
Many of the world's most powerful companies and ambitious entrepreneurs are rushing to build "the metaverse," an often vaguely described "next generation internet" or parallel virtual world intended to have the immersive feel of the real one. The metaverse is also popular with those working to develop "Web3," which aims to build a blockchain-based internet that is largely beyond the control of regulators, banks and today's tech platforms.
/jlne.ws/3JPltai
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| Politics | | An overview of politics as it relates to the financial markets | Biden Ties to BlackRock Deepen With Latest Treasury Hire; Former executive Eric Van Nostrand joins Treasury Department; BlackRock is becoming one of Wall Street's key D.C. conduits
Sridhar Natarajan and Eric Martin - Bloomberg
Another BlackRock Inc. executive is joining the Biden administration, adding to the close ties between the Wall Street heavyweight and the seat of power in Washington. Eric Van Nostrand, a BlackRock managing director who was head of research for sustainable investments and multi-asset strategies, is exiting to join the Treasury Department. He will be a senior adviser on economic issues tied to Russia and Ukraine and will report to Ben Harris, assistant Secretary of Treasury for economic policy, a person familiar with the matter said. He starts on Monday. Van Nostrand and a representative for BlackRock declined to comment.
/jlne.ws/3bQShU2
Senator Warren Blasts Fed for Withholding Trading Records; Senator sends letters to 12 Reserve Banks for trading data; GOP this week criticized Fed over separate disclosure issue
Craig Torres and Catarina Saraiva - Bloomberg
US Senator Elizabeth Warren rebuked Federal Reserve Chair Jerome Powell for withholding information on trading by central bank officials during the pandemic and said an investigation into the matter by the Fed's inspector general was "troubling." The IG report "raises new concerns about the reasons why you continue to withhold key information about Fed officials' financial trading activity from Congress and the public," the Massachusetts Democrat said in a letter to Powell released Thursday. Warren - - a member of the Senate Banking Committee that has Fed oversight authority -- also sent letters to all 12 reserve banks asking for securities transaction records for all senior officials since Jan. 1, 2020, giving the banks an Aug. 25 deadline. Spokespeople for the Federal Reserve Board of Governors and the Dallas Fed declined to comment.
/jlne.ws/3QVT98T
FBI searched Trump's home to look for nuclear documents and other items, sources say; The former president said on social media that he won't oppose a Justice Dept. request to unseal the search warrant
By Devlin Barrett, Josh Dawsey, Perry Stein and Shane Harris - Washington Post
Classified documents relating to nuclear weapons were among the items FBI agents sought in a search of former president Donald Trump's Florida residence on Monday, according to people familiar with the investigation. Experts in classified information said the unusual search underscores deep concern among government officials about the types of information they thought could be located at Trump's Mar-a-Lago Club and potentially in danger of falling into the wrong hands.
/jlne.ws/3Qj6Yyf
Garland Calls Trump's Bluff as Justice Department Moves to Unseal Warrant; Former President Donald J. Trump has portrayed the search of his residence as baseless and political. Now, the attorney general wants to make the search warrant public.
Charlie Savage - The New York Times
Attorney General Merrick B. Garland on Thursday called former President Donald J. Trump's bluff. Ever since the F.B.I. executed a search warrant at Mr. Trump's Florida residence on Monday, Mr. Trump and his supporters have been portraying the search as baseless and politically motivated.
/jlne.ws/3QkFzMl
In the heart of coal country, U.S. climate bill could push up green shoots
Andy Sullivan and Rose Horowitch - Reuters
In West Virginia, a solar field could soon rise atop an abandoned coal mine, and factories will soon be churning out batteries and electric school buses. The ambitious U.S. climate bill could push up more of these green shoots, but analysts say King Coal will retain outsized clout in the state.
/jlne.ws/3dkMSEZ
Climate and Tax Bill to Rewrite Embattled Black Farmer Relief Program; To circumvent legal objections, the new law will provide aid to farmers who have faced discrimination, regardless of their race.
Alan Rappeport - The New York Times
A $4 billion program to help Black and other "socially disadvantaged" farmers that never got off the ground last year amid legal objections will be replaced with a plan to make relief funds available to farmers who have faced discrimination.
/jlne.ws/3zVEinE
Britain considers energy bill subsidy for industrial firms
Reuters
Britain is considering plans to subsidise power bills for energy intensive industries such as steel and cement, in an effort to support hundreds of businesses facing record high energy prices. The move comes weeks before a new prime minister is due to take office, with forecasts of a long recession and soaring inflation — spurred mainly by rising energy prices — dominating the political agenda.
/jlne.ws/3AgiiFt
Sweden agrees to extradite fraudster wanted in Turkey; First legal step since Ankara pushed for expulsions as price for backing Stockholm's Nato bid
Richard Milne - FT
Sweden is extraditing a man wanted for credit card fraud to Turkey in the first such legal step known since Ankara demanded the expulsion of dozens of alleged terrorists as the price for agreeing to Stockholm's bid to become a member of Nato.
/jlne.ws/3w0fji4
Olaf Scholz backs proposal for new European gas pipeline; German chancellor highlights advantages of being able to link Portugal and Spain to central Europe via France
Guy Chazan - FT
German chancellor Olaf Scholz said he backed the idea of a new gas pipeline linking Portugal and Spain to central Europe via France, saying it would vastly improve Europe's energy security. Speaking on Thursday at his first summer press conference, Scholz said he had discussed the idea with the leaders of Spain, Portugal and France and European Commission president Ursula von der Leyen.
/jlne.ws/3bWWFAG
Xi Jinping's Banker Crusade Is Too Much Stick, No Carrots; To stem corruption in state-owned financial companies, pay cuts are not the way to go.
Shuli Ren - Bloomberg
Everyone's got to live a little. An effective politician who wants to change the world can't be all Main Street, no Wall Street. President Xi Jinping's corruption crackdown on China's sprawling financial sector seems only to be accelerating, reaching the upper levels at some of the biggest state-owned institutions. In fact, the scope has been so wide and the punishments so severe that any bureaucrat in charge of a bank, a brokerage, or an insurance unit should fear possible jail time. But the recent corruption scandal at a $20 billion venture capital fund, which served as Beijing's primary vehicle to foster its domestic chip-manufacturing industry, raises questions as to whether Xi's methods to rein in his financiers are too severe, and if his anti-corruption campaign is deterring officials taking bribes at all.
/jlne.ws/3dfkLXK
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| Regulation & Enforcement | | Stories about regulation and the law. | Bank of America Corporation: BaFin imposes administrative fine
BaFin
On 2 August 2022, BaFin imposed an administrative fine amounting to 5,100,000 euros on Bank of America Corporation.
/jlne.ws/3zVhBjP
Latoken.com: BaFin Investigates LiquiTrade Limited
Mondovisone
In accordance with section 37 (4) of the German Banking Act (Kreditwesengesetz - KWG), BaFin would like to make clear that LiquiTrade Limited, Cayman Islands, does not have authorisation under the KWG to conduct banking business or provide financial services. The company is not supervised by BaFin. The information provided on the company's website, latoken.com, gives reasonable grounds to suspect that LiquiTrade Limited is conducting banking business and providing financial services in Germany without the required authorisation.
/jlne.ws/3JSuAqI
Mark Cuban, Mavericks in hot water over Voyager 'Ponzi scheme'
Anita Ramaswamy - TechCrunch
Lawsuits from disgruntled investors are beginning to stack up after crypto prices plummeted over the past few months, leaving them with steep losses. Billionaire Mark Cuban is the latest celebrity on the receiving end of investor ire.
/jlne.ws/3AiXeOA
Joint announcement of the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission
SFC
To enhance mutual access between the Mainland and Hong Kong stock markets, the China Securities Regulatory Commission and the Securities and Futures Commission have approved, in principle, adjustments to the trading calendar for Stock Connect. The Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE) and Stock Exchange of Hong Kong Limited (SEHK) will concurrently allow Stock Connect trading on all the days which are trading days in both markets but on which Stock Connect trading is now closed because clearing services are unavailable.
/bit.ly/3bNKAxY
Statement of Commissioner Kristin N. Johnson Regarding Joint Rule Proposal to Amend Form PF
CFTC
Transparency is an integral component of the regulatory framework that ensures the safety and soundness and enduring preeminence our financial markets.
Working in collaboration with our colleagues at the Securities and Exchange Commission (SEC) to enhance oversight and improve visibility through thoughtfully designed and well-calibrated collection approaches is consistent with our mission and statutory mandate—to "insure the financial integrity of all transactions subject to this Act and the avoidance of systemic risk."
/jlne.ws/3pdh8UT
ASIC cancels AFS licence of Rizzak Capital Pty Ltd
ASIC - Australian Securities and Investments Commission
ASIC has cancelled the Australian financial services (AFS) licence of Rizzak Capital Pty Ltd (Rizzak Capital).
/jlne.ws/3C6OooN
ASIC suspends AFS licence of Sterling & Freeman Advisory Pty Ltd
ASIC - Australian Securities and Investments Commission
ASIC has suspended the Australian financial services (AFS) licence of Sterling & Freeman Advisory Pty Ltd (Sterling & Freeman) until 7 September 2022.
/jlne.ws/3Aj8LNS
ASIC suspends AFS licence of Assurance Cover Australia Pty Ltd
ASIC - Australian Securities and Investments Commission
ASIC has suspended the Australian financial services (AFS) licence of Assurance Cover Australia Pty Ltd (ACA) until 28 November 2022.
ACA operates an unregistered managed investment scheme, 'Assurance Cover Australia' (Scheme), which provides cover (through a discretionary mutual fund) for drivers in the peer-to-peer transport industry.
/jlne.ws/3PplanL
Regulators to enhance Stock Connect trading calendar
Securities & Futures Commission of Hong Kong
The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) today jointly announced their in-principle approval for changes to the trading calendar for Stock Connect. The changes would apply to both northbound and southbound trading.
Because different public holidays are observed in the Mainland and Hong Kong, investors currently cannot trade through Stock Connect on certain days (Note 1). The proposed changes enable Stock Connect trading on any day when both the Mainland and Hong Kong markets are open, even when the corresponding settlement day falls on a public holiday.
/jlne.ws/3pczS74
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Making Money in Your Sleep Sure Sounded Easy; Fund that profits from an anomaly called 'The Night Effect' isn't delivering
Spencer Jakab - WSJ
"Early to bed, early to rise," yadda, yadda, yadda. Some stock-market watchers turned that thinking on its head, telling us that we can become wealthy when we are sleeping while pretty much forgetting about normal working hours. Academics had long noticed something called "The Night Effect," in which essentially all of the U.S. stock market's return comes when markets are closed, as stocks tend to open higher the next day and dividends are also paid after the close. Bespoke Investment Group was among those to highlight what seemed like an almost unbelievable phenomenon. In Sept. 2018 they calculated that owning a leading S&P 500 index exchange-traded fund, ticker symbol SPY, since 1993 would have earned you more than 600% when markets were closed between 4:00 p.m. and 9:30 a.m. the next trading day, but lost you 7.7% during the trading day.
/jlne.ws/3JNpjAS
The WSJ Stock Picking Contest; Follow Heard on the Street writers as they compete to pick the best-performing stock
Spencer Jakab - WSJ
Don't you hate it when a financial pundit makes a prediction, but fails to mention both a time and a number in the same sentence? And then, if he or she gets it wrong, it's on to the next bright idea. Heard on the Street does things a bit differently. Our stock picking contest, now in its sixth year, will run for a full year with our wins and losses updated constantly. Over the last three weeks of August our 15 columnists based in six global cities will give you our best ideas in the form of a column in which we lay out our argument for or, in the case of a "short" idea, against a stock. Will our picks make us look like geniuses or will they age like a glass of milk in the Sahara? Please check back frequently as the picks roll in, and over the course of the year to see which columnist will walk away with the bragging rights for the highest-performing pick.
/jlne.ws/3SKIeQZ
How to own a fraction of a Warhol; Fractional ownership of artworks is becoming big business — but does it stand up as an investment?
David Stevenson - FT
As an adventurous type, I've toyed for many years with the idea of investing in what some call "emotional" assets. This huge, very personal investment space covers everything from stamps and vintage cars through to more mainstream assets such as art and fine wine.
/jlne.ws/3PnUaFg
Don't Let This Irrational Stock Rebound Make You Insolvent; The rapid rebound in some of last year's favorite stocks doesn't make much sense, but that's totally normal in a bear market. Make sure you don't start 'anchoring' on what those pandemic darlings did before.
Spencer Jakab - WSJ
Don't believe everything you read on the Internet. For example, more than a million Google search results, thousands of articles and dozens of books and investment letters will tell you, without evidence, that the great economist John Maynard Keynes said "the market can remain irrational longer than you can remain solvent."
/jlne.ws/3PehkOo
Why Index Funds Could Fade
Hunter Lewis - Barron's
Index funds have had a spectacular run. They collected $8.5 trillion in retail investment dollars by the end of the first quarter of this year, according to Morningstar, more than all active strategies together. Along the way, they became the dominant investment idea.
/jlne.ws/3QGpdx6
How Advisors Help Farmers Sow the Seeds of Future Growth
Cheryl Winokur Munk - Barron's
Conversations around soybeans, corn, and cattle don't typically come up in the day-to-day lives of most financial advisors. But they are run-of-the-mill for advisors who work with farmers. Many financial professionals who develop this specialty as part of their business have a long-time connection to the farming industry. They may have grown up or worked on a farm, married into a farming family, or have friends in the business. They incorporate this familiarity into financial, retirement, estate planning, and succession planning advice.
/jlne.ws/3bRWBSY
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | UK minister questions sustainability of Drax biomass fuel
Kwarteng says shipping wood pellets from Louisiana is costly and 'doesn't make any sense'
Camilla Hodgson and George Parker - FT
The UK's business secretary has admitted that importing US-made wood pellets to be burnt for energy by power company Drax is not sustainable and "doesn't make any sense".
/jlne.ws/3C1ewRD
Climate graphic of the week: Arctic melting four times faster than rest of the planet, study says; Warming of 'earth's refrigerator' will have far reaching effects, scientists forecast
Aime Williams and Chris Campbell - FT
Scientists have warned that the Arctic is warming four times faster than the rest of the planet, and at a higher rate than previously thought, according to new research, while the Antarctic ice is also diminishing.
/jlne.ws/3PkDUEU
European electricity prices hit new highs amid power market disruption; Summer heatwave and impact of Russia's war in Ukraine send prices to record levels
Tom Wilson - FT
European electricity prices have soared to new records as the prolonged heatwave disrupted power markets that were already under strain from Russia's cuts to the continent's gas supplies.
/jlne.ws/3C1fZra
California unveils water strategy, planning for greater scarcity
Daniel Trotta - Reuters
California Governor Gavin Newsom unveiled a new water strategy on Thursday that plans for a future with 10% less water and shifts the emphasis from conservation to capturing more water that otherwise flows out to sea.
/jlne.ws/3duz2QJ
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | In Volatile Times, Horizons ETFs Expands Engagement With Solactive Launching Utilities ETF
Mondovisione
In a volatile economic environment, investors might want to protect and diversify their portfolio. Utility services companies are likely to suffer less from fluctuations, as demand for their products continues stable even during recessions, therefore providing stability to an investment strategy. Additionally, companies that pay consistent dividends are also likely to add more stability to a portfolio, as they offer investors an income source, which might be beneficial, especially during turbulent periods in the market. To provide stockholders with defensive exposure opportunities, Horizons ETFs now expands its engagement with Solactive and launches the Horizons Canadian Utility Services High Dividend Index ETF (ticker UTIL). The fund aims to track the Solactive Canadian Utility Services High Dividend Index and was listed on the Toronto Stock Exchange (TSX) on 10 August 2022.
/jlne.ws/3JOHYw5
Goldman Sachs to Present at the Barclays 20th Annual Global Financial Services Conference
Goldman Sachs
The Goldman Sachs Group, Inc. (NYSE: GS) today announces that Julian Salisbury, Global Co-Head of Goldman Sachs Asset Management, is scheduled to hold a fireside chat at the Barclays 20th Annual Global Financial Services Conference on Monday, September 12, 2022 at 10:30 a.m. (ET). A live audio webcast of the presentation will be available on the Investor Relations section of our website at https://www.goldmansachs.com/investor-relations. For those unable to listen to the live audio webcast, a replay will be available on our website shortly after the event.
/jlne.ws/3AeBwvo
JP Morgan's global head of credit markets to depart bank
Lucy Raitano - Reuters
JP Morgan's global head of credit markets and public finance Guy America will depart the bank, according to an internal memo seen by Reuters on Thursday. After 28 years at JP Morgan, America has informed the bank of his decision to take some time out before pursuing external opportunities, the memo said. A spokesperson for the bank confirmed the contents of the memo.
/jlne.ws/3w1bkBL
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| Wellness Exchange | | An Exchange of Health and Wellness Information | CDC Says Quarantine After Covid Exposure No Longer Necessary; Agency also rolls back 'test-to-stay' classroom recommendation; Changes align more with public practices, focus on flexibility
Riley Griffin and Jeannie Baumann - Bloomberg
The Centers for Disease Control and Prevention said that it's no longer recommending that adults and children quarantine after having been exposed to Covid-19, aligning its guidance more closely with what many people are doing already as the urgency of the pandemic response wanes. The CDC added that it was also rolling back its so-called test-to-stay policy that suggested children exposed to Covid-19 obtain a negative test in order to remain in the classroom or in childcare settings. "These updates make it easier for schools to assess their risk and make necessary action to protect students and staff," Greta Massetti, chief of the CDC's Field Epidemiology and Prevention Branch, said in a call with reporters on Thursday.
/jlne.ws/3QGCuWm
CDC eases Covid-19 quarantine and testing guidelines as it marks a new phase in pandemic
Andrew Joseph - STAT News
People who are not up to date with their Covid-19 vaccines and who are exposed to someone infected with the coronavirus no longer need to quarantine, according to updated recommendations issued Thursday by the Centers for Disease Control and Prevention. Instead, they should just wear a mask for 10 days in indoor settings and test on day 5, according to the guidance. They were previously recommended to stay home. The new guidelines could also ease the testing burden on schools. While people showing symptoms of Covid should be tested, the recommendations say broader screening "might not be cost-effective in general community settings, especially if Covid-19 prevalence is low." Such widespread testing could still be done in certain settings like long-term care facilities, correctional facilities, and homeless shelters.
/jlne.ws/3C1kLFl
Parts of China's Hainan extend COVID lockdown, Lhasa in Tibet tightens curbs
Reuters
A few cities in China's tourism hub Hainan extended lockdowns on Friday, with some of the measures expected to last through the weekend, while Lhasa in Tibet also tightened restrictions, among the latest curbs to contain COVID clusters in the country.
/jlne.ws/3SJPvk2
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Breakingviews: Wine IPO is a very rich toast to affluent India
Pranav Kiran and Una Galani - Reuters
Indians are developing a taste for wine, but it might be a drier than expected year ahead for Sula Vineyards (SULA.NS), the country's largest producer and seller of plonk that is planning an initial public offering.
/jlne.ws/3Qn0eiC
Nigeria's president drops support for ExxonMobil deal; Sudden reversal comes just three days after president approves sale of the oil company's Niger Delta business
Aanu Adeoye and Tom Wilson - FT
ExxonMobil's divestment of its oil business in Nigeria's Niger Delta has been thrown into doubt after the country's president withdrew his support for the sale less than three days after approving it. Garba Shehu, spokesperson for Nigeria's president Muhammadu Buhari, told the Financial Times that the $1.28bn sale of Exxon's four oil permits to local producer Seplat Energy had been put on hold pending a further review by Nigeria's petroleum regulator. Shehu said: "Due process must be done."
/jlne.ws/3pxZnQF
Estonia Never Needed to Import Gas by Ship. Until It Did; This tiny Baltic nation is set to complete Europe's first new liquefied natural gas project since Russia set off a race for energy security with its invasion of Ukraine.
Patricia Cohen - The New York Times
In Paldiski, Estonia, abandoned Soviet-era bunkers, splattered with graffiti and overgrown with weeds, are a reminder of the centuries-long domination that Russia once exerted over the Baltic region.
/jlne.ws/3bTfGEj
Mexico Plans to Become an Export Hub With US-Drilled Natural Gas
Sergio Chapa - Bloomberg
Mexico — which imports nearly all of the natural gas it burns — has laid out a somewhat surprising mission: to become one of the world's top exporters of the fuel, and fast.
/jlne.ws/3zRoYZn
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| Miscellaneous | | Stories that don't quite fit under the other sections | Billionaire Robert Brockman, Accused of Biggest Tax Fraud in U.S. History, Dies at 81; The penny-pinching software executive was awaiting trial on charges of concealing more than $2 billion from the IRS; he denied the allegations
Miriam Gottfried and Mark Maremont - WSJ
When Robert Brockman, one of the richest people in the country, was visiting his company's offices near Dayton, Ohio, he stayed at budget motels and ate frozen dinners in his room, a former employee recalled. The penny-pinching was integral to Mr. Brockman's success in the automotive business, where he rose from humble roots to control one of the largest U.S. providers of software for car dealerships, Reynolds & Reynolds Co
/jlne.ws/3JMyVfn
Top banker quits after inappropriate remark claim
Ben Martin - The Times
One of the City of London's top investment bankers, who was suspended over allegations that he made inappropriate comments to a female colleague at Citigroup, has resigned. Jan Skarbek stepped down from his job at Citi, where he has worked for 28 years, on Monday after the bank started an investigation into allegations that he had told a female employee he needed "love and affection" during a work event in Barcelona earlier this year. Last month a spokesman for Citigroup said of the incident: "We have zero tolerance for inappropriate conduct. We take any matter coming to our attention very seriously and take the appropriate action.
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David Bowie Named Britain's Most Influential Artist of Last 50 Years
Ellie Iorizzo, The Press Association - Bloomberg
David Bowie has been named Britain's most influential artist of the last 50 years for his ability to transcend music, film and fashion. The Starman musician topped the Sky Arts list of 50 influential artists ahead of 12 Years A Slave Oscar-winning filmmaker Sir Steve McQueen and It's A Sin writer Russell T Davies, who revived Doctor Who in 2005. Musicians including the Spice Girls, Sir Elton John, Stormzy and Boy George were among those featuring, alongside actors Michaela Coel and Steve Coogan.
Blind Ambition, film review — rags-to-results documentary follows four unlikely sommeliers; The film trails a clean-cut foursome from Zimbabwe who compete in the World Blind Tasting Championships
Leslie Felperin - FT
Co-directors Warwick Ross and Rob Coe's amiable documentary rolls smoothly down a predictable rags-to-results trajectory. It follows the story of four men, all immigrants to South Africa from Zimbabwe, who team up to compete in the World Blind Tasting Championships in France. During the competition, teams must try to identify the provenance of 12 different wines, down to the vineyard.
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