| October 15, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Ben Hurley has been appointed the CEO of software maker Devexperts, the company announced in a press release today. Hurley is also featured in a video interview I conducted with him before the announcement about his new role, his background and the company's plans. You can see the press release from Devexperts HERE and the JLN interview of Hurley HERE.
Acuiti's whitepaper, produced in collaboration with EP3 by Connamara Technologies, explores how emerging and frontier market exchanges can leverage the global boom in listed derivatives trading. In the first half of 2024, derivatives trading surged, reaching nearly 100 billion contracts-a 76% increase from the same period in 2023, it shared on LinkedIn. This growth presents a significant opportunity for emerging exchanges, which often provide unique access to asset classes and attract international trading firms seeking diverse exposures.
The study revealed that 91% of Tier 2 and 3 exchanges surveyed experienced growth in participants over the past decade, with technology investment playing a crucial role in their success. However, many emerging market exchanges undervalue the importance of technology, despite 61% of successful Tier 2 and 3 exchanges identifying it as essential for attracting international flows. Investing in technology offers several benefits, including reducing outages and enabling new product launches, both of which are critical for long-term growth.
Additionally, the report highlights the importance of simplifying the onboarding process for international firms. Emerging exchanges must address challenges such as regulatory complexity and product awareness to attract global participants. By adopting technology that meets international standards and streamlining onboarding processes, these exchanges can better position themselves to capitalize on the growing interest in derivatives trading.
Here are the headlines from in front of FOW's paywall from some recent stories: DTCC unveils digital assets sandbox in bid to drive industry adoption, Singapore Exchange hires foreign exchange liquidity head from CME, ANALYSIS: DORA to become 'gold standard' for operational resilience - ACA, ICE hits Brent options record as energy volumes take off, Broadridge updates operational resilience tools ahead of DORA go-live and CME international volumes hit a record in third quarter.
There was no volume on the FMX Futures Exchange yesterday in the SOFR futures and open interest remains at 1124 contracts. You can see yesterday's statistics on the Daily Trade Report page on the FMX website.
Cboe's Matthew Scharpf recently released a song titled "I am Home (only Flyers understand)" on all major streaming platforms, he shared on LinkedIn. The song, inspired by his charity performances during the Covid lockdown, is about a University of Dayton graduate returning and feeling like they never left, capturing the special nature of the UD community. Scharpf collaborated with talented musicians, including fellow Flyers Joe Dapier, Lou Leone, Chris Neville, Rob and Jim Bonaccorsi, Grammy nominee Frank Catalano, and Grace Toriello. His dream is for the UD Arena crowd to sing the chorus during a basketball game timeout.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories from our previous edition of JLN Options were:
- Hurricane-themed ETF to be liquidated from the Financial Times.
- Firms Add to FX Hedges as Volatility Jumps Before Election from Bloomberg.
- B2PRIME Launches Futures-Based Offerings in Response to $10 Trillion Market from Finance Magnates. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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From Code to Capital: A Tech Whiz's Journey to Fintech's Frontier
JohnLothianNews.com
When Ben Hurley took the helm at Devexperts, a trading software provider, he wasn't just changing jobs-he was diving headfirst into the choppy waters of fintech innovation.
Watch the video »
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Man Who Accidentally Threw Hard Drive Containing 8,000 Bitcoins Worth Half A Billion Dollars In Landfill Sues Local City Council For Not Excavating The Site
Aniket Verma - Benzinga
James Howells, etched in the history books for accidentally discarding Bitcoin (CRYPTO: BTC), which is worth more than half a billion dollars today, took a major step in retrieving them. What Happened: In a last-ditch effort, the Wales-based software engineer filed a lawsuit against Newport City Council for roughly 495.31 million British pounds, or about $647 million, in damages for repeatedly denying his request to excavate the landfill site housing the discarded hard drive, which contains around 8,000 units of Bitcoin, as reported by WalesOnline.
/jlne.ws/4eHdJpv
***** Some people never give up, but then he has billions of reasons not to.~JJL
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S&P 500 Futures Trading Volume Evaporates as Records Fall
Jan-Patrick Barnert - Bloomberg
The S&P 500 may be punching through fresh records, but it hasn't been accompanied by high turnover conviction. On the contrary, trading volumes make it feel like no one's around, even with earnings season kicking off and a fraught presidential vote just round the corner. In the past few trading days, volume in S&P 500 e-mini futures has consistently stayed below the medium-term average. On Monday, the volume dropped below one million contracts for the first time since July. The 5-day average volume is now about 50% less than over its 100-day time frame.
/jlne.ws/4f53Cux
******Not surprising given that we are so close to the election.~JJL
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The sperm donor bros of tech; Genetic largesse from some of Silicon Valley's elite appears to be a mix of narcissism, altruism and dreams of immortality
Elaine Moore - Financial Times
Before he was arrested in France for failing to adequately moderate criminal activity on his social media app, tech billionaire Pavel Durov was known for three things: founding Telegram, posting thirst-trap photos on Instagram and fathering over 100 children. The last fact is a relatively recent revelation. This summer, Durov surprised his online followers by revealing that a sperm donation he made to a fertility clinic had resulted in children conceived in 12 countries by more than 100 couples. He was, he noted with pride, "high quality donor material". He then declared plans to "open source" his DNA so that his biological children could find one another more easily. It is a plan his detention has presumably derailed.
/jlne.ws/4dKpiuR
***** Some people just have their dogs cloned. These bros are trying to replicate themselves.~JJL
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Ben Hurley Appointed CEO of Devexperts, Driving New Wave of Innovation and Growth
Devexperts
Devexperts, a global software developer for the capital markets, has announced the appointment of Ben Hurley as its new Chief Executive Officer. This strategic move highlights the company's commitment to a new phase of growth, building on years of evolution and development. It underscores a forward-looking vision for delivering tailored technology solutions to its global client base of financial institutions and brokerages.
/jlne.ws/4f551Bj
****** Ben Hurley has a nice gentle Irish accent. Check out our video interview with him HERE.
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Monday's Top Three
Our top story Monday was 'King of the geeks': how Alex Gerko built a British trading titan, from the Financial Times. Second was a tie between CFTC Charges Donald R. Wilson and his Company, DRW Investments, LLC, with Price Manipulation, from the CFTC, and Useful Quarterly Business Reviews, former CQG President Joe Schroeter's latest blog post. Third was U.S. CFTC loses case against prominent trader Donald Wilson, DRW, a Reuters story from 2018.
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| Lead Stories | Banks and fund managers call on EU to commit to shorter settlement plan; Industry lobby groups urge Brussels to set timetable for modernisation of securities market
Nikou Asgari - Financial Times
European banks and fund managers have urged Brussels to publicly commit to shortening the window for settling EU stock and bond trades, as the US and UK press on with plans to modernise their own markets. A task force representing 18 market lobby groups on Monday called on EU authorities to "make a formal commitment" to reform settlement times. The task force, led by the Association for Financial Markets in Europe (AFME), also called for the bloc to set a timeframe to guide the industry in its preparations.
/jlne.ws/3YecwPM
Crypto Company Tether Talking to Commodity Traders About Lending Them Its Billions; Commodity traders rely on credit lines to finance shipments; Tether CEO says any commodities work 'in early stages'
Archie Hunter and Olga Kharif - Bloomberg
Tether Holdings Ltd is exploring lending to commodities trading companies as it looks at ways to deploy its billions of dollars in profits, a move that could shake up an industry typically reliant on traditional banks for credit. The crypto company - which is the issuer of the world's largest stablecoin, USDT - has discussed US dollar lending opportunities with several firms across the credit-hungry sector, according to people familiar with the matter who asked not to be identified discussing private conversations.
/jlne.ws/3BKTR6o
China Moves to Tax the Ultra-Rich for Overseas Investment Gains; Tax authorities summoned wealthy individuals in rare request; Government faces dwindling fiscal revenue as land sales slow
Trista Xinyi Luo and Lulu Yilun Chen - Bloomberg
China has begun enforcing a long-overlooked tax on overseas investment gains by the country's ultra-rich, according to people familiar with the matter. Some wealthy individuals in major Chinese cities were told in recent months to conduct self-assessments or summoned by tax authorities for meetings to evaluate potential payments, including those in arrears from past years, said the people, asking not to be identified discussing a private matter.
/jlne.ws/3Y9V6n4
A La Nina winter is coming. Here's what that could mean for the US
Mary Gilbert, CNN Meteorologist - CNN
Fall is in full swing, but it's not too soon to look ahead to winter, especially one that could feel considerably different than last year's dominated by El Nino. A weak La Nina is expected to develop ahead of the season and influence temperatures, precipitation, and by extension, even snow across the United States. La Nina is a natural climate pattern that influences global weather marked by cooler than average ocean temperatures in the equatorial Pacific. The effects on weather are most pronounced during the winter months in the Northern Hemisphere and have a much weaker influence in the summer.
/jlne.ws/3U8to98
Jamie Dimon Is Right. Forget the 'Damn Number'; The JPMorgan CEO seems fed up with analysts spending too much time on the minutiae of their earnings models.
Jonathan Levin - Bloomberg
The top corporate conference calls are attended by dozens of Wall Street analysts whose job it is to maintain detailed earnings and valuation models filled with minutiae. Quarter after quarter, they populate their spreadsheets with revenue and cost assumptions to predict exactly what earnings per share will be months and years into the future. But sometimes that pursuit of the ideal model can lead them to miss the forest for the trees. At least that's how JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon seems to feel about it.
/jlne.ws/403CkjO
Dutch to Cut ABN Amro Stake Further as Exits Gather Pace
Sarah Jacob and Nicholas Comfort - Bloomberg
The Dutch government plans to sell more shares in ABN Amro Bank NV, joining states across Europe in speeding up the exit from banks that were bailed out after the financial crisis. The Netherlands plans to pare its stake to about 30%, from 40.5% currently, using market sales that will start in the coming days, according to a statement from its investment vehicle on Tuesday. The stake is worth about EUR1.4 billion ($1.5 billion) at current prices, according to Bloomberg calculations.
/jlne.ws/4eHcZAJ
Global public debt to pass $100tn this year, says IMF; Fund warns risks 'tilted to the upside' as debt set to approach 100% of world GDP by end of decade
George Steer and Ian Smith - Financial Times
Global public debt is forecast to exceed $100tn by the end of this year, according to the IMF, which has warned that major economies' plans to stabilise borrowing "fall far short of what is needed". The fund said on Tuesday that government debt, which ballooned during the Covid-19 pandemic, had continued to rise as countries embrace higher spending to stimulate economic growth. Debt was set to approach 100 per cent of global GDP by the end of the decade, it added.
/jlne.ws/3ZZCN6N
Fed's Kashkari Says Private Credit May Lessen Systemic Risk; Kashkari says private credit funds less levered than banks; Regulators have increased scrutiny of the $1.7 trillion market
Laura Curtis - Bloomberg
The rise of the private credit market may lead to less systemic risk in the US financial system despite a lack of political appetite for increasing bank capital requirements, Federal Reserve Bank of Minneapolis President Neel Kashkari said. "It's scary at some level, because it's exploded to a trillion dollar plus market fairly quickly," Kashkari said in Buenos Aires on Monday. "But as I've examined it, a bank in the US today - a big bank - is levered roughly 10 to one, 10 times as much assets for their equity. These private credit vehicles are typically levered one to one, so it's much less leverage."
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European Officials Say T+1 Transition Needs Urgent Work; Accelerating settlement will bring 'important benefits': EU Transition would realign EU with US, which moved to T+1 in May
Greg Ritchie - Bloomberg
Speeding up the European Union's financial markets should be an urgent priority, the bloc's regulators said Tuesday, as they look to catch up with peers across the Atlantic. Halving the time it takes to settle securities transactions from two days to one, via a system called T+1, will bring important benefits and savings, according to a joint statement from the European Securities and Markets Authority, the European Commission and the European Central Bank. Countries including the US moved to T+1 in May.
/jlne.ws/4hhq5qi
S&P Global Hires State Street's Eric Aboaf as Next CFO; Executive, who will start in February, will oversee all aspects of the credit-rating company's finance function
Denny Jacob - The Wall Street Journal
S&P Global named Eric Aboaf as its next chief financial officer, pulling the executive from financial services provider State Street. The New York credit-ratings company said Aboaf, who will start in February, will oversee all aspects of the company's finance function. He will report to incoming Chief Executive Martina Cheung, who starts in November. Cheung said Aboaf's record of delivering growth, as well as his understanding of markets and the regulatory landscape will help deliver value for shareholders.
/jlne.ws/3Npa0Ro
UBS Asked to Overhaul Living Will as It Swallows Credit Suisse
Margot Patrick - The Wall Street Journal
As UBS works to integrate Credit Suisse, the Swiss bank's main regulator has issues with its living will. Since the 2008 financial crisis, banks globally need to have resolution plans, detailing how they could fail safely without taking down other parties or markets. Some of the rules got a rethink after U.S. regional-bank failures and Credit Suisse's rescue by UBS last year, particularly on having adequate liquidity.
/jlne.ws/4dIQtWR
Currenex loses US court bid to revealIntraday FX swaps could signal new dawn for liquidity management; Seedling market could help banks pre-fund payments in near-real time and reduce HQLA requirements
Cole Lipsky - Risk.net
In the rapidly moving foreign exchange market, every second counts - and not just in trading where markets can move in microseconds. In intraday liquidity management, time is also of the essence. A large international bank might start the day with $30 billion of US dollar liquidity held at the US Federal Reserve, for example. In the course of the day, its holdings could drop to, say, $22 billion, then close at their starting level, involving $8 billion of intraday US dollar liquidity use.
/jlne.ws/3A86Zlt
XTX trade secrets; Judge also rules the venue must reveal its own matching code in class action case
Joe Parsons - Risk.net
An attempt by Currenex to force XTX Markets to reveal its foreign exchange trading source code has been rejected by a US judge and the venue will now have to reveal its own matching code, in the latest setback for the platform's class action defence. The ruling from the Southern District Court of New York follows a motion brought by the plaintiffs - XTX Markets and trading firms Edmar Financial and Irish Blue & Gold - on July 3 to compel Currenex to produce its matching logic, arguing that the
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Isda calls for delay to India IM; Rules for third-party custodians still to be finalised less than one month before initial margin rules go live
Chris Davis - Risk.net
The International Swaps and Derivatives Association has called on the Reserve Bank of India to postpone the impending deadline for Indian in-scope entities to begin posting initial margin for non-cleared derivatives, citing unresolved challenges around custodial arrangements. The RBI's framework for initial margin, published in May, is set to come into force on November 8. However, with less than a month to go before the deadline, the market is still waiting on the central bank to publish a
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russia rolled out a Soviet howitzer from the 1940s that Moscow technically shouldn't have in the first place
Matthew Loh - Business Insider
Last week, a promotional video from the Kremlin caught the attention of Ukrainian media covering the war. The clip showed an entrenched Russian crew firing an old, towed artillery system against Ukrainian positions in Donetsk. The field gun featured: a D-74 122 mm howitzer, which the Soviet Union developed in the late 1940s. Yet its age wasn't the main attraction. Russia has, after all, been regularly deploying Cold War-era weaponry from its old stocks.
/jlne.ws/4dODpj1
From hairspray to Heineken: the Kremlin ally snapping up western assets; Alexei Sagal is among a new group of businessmen benefiting from western companies' exodus
Anastasia Stognei in Tbilisi, Madeleine Speed in London, Max Seddon in Riga and Courtney Weaver in Berlin - Financial Times
For Alexei Sagal, an industrialist from the Stavropol province in southern Russia, Vladimir Putin's full-scale invasion of Ukraine has been transformative. The horse-breeding enthusiast has emerged as a key buyer of assets from fleeing western companies. Last week his group Arnest, which made its money as a contractor for some of the world's largest consumer goods groups, agreed to buy Unilever's Russian business for EUR520mn. It previously took over the Russian operations of Dutch brewer Heineken, US canning giant Ball Corporation and Swedish cosmetics group Oriflame.
/jlne.ws/486sDDs
Political Infighting Hampers Ukraine's Efforts to Avert Energy Crisis; Top energy officials have fallen and key energy policy decisions have been delayed because of political calculations, lawmakers and experts say, costing Ukraine valuable time in preparing for winter.
Constant Meheut - The New York Times
For more than two years, as Russia relentlessly bombed Ukraine's power stations, the head of the national electricity company, Volodymyr Kudrytskyi, earned praise from Kyiv's allies and energy experts for keeping the country's power grid mostly running. But last month, Mr. Kudrytskyi was dismissed by the supervisory board of the company, Ukrenergo. Ukrainian lawmakers criticized the move as unjustified given Mr. Kudrytskyi's record, while countries financing repairs to power plants said it was ill timed as Ukraine scrambles to restore its ravaged energy network before winter.
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel strikes Lebanon after Netanyahu vows no mercy for Hezbollah
AFP
Israel's military launched strikes Tuesday on eastern Lebanon, official Lebanese media reported, as Hezbollah fought Israeli soldiers after Prime Minister Benjamin Netanyahu vowed no mercy for the militant group. The premier's pledge on Monday came a day after a drone attack by the Iran-backed Lebanese group on an Israeli base killed four soldiers, while volunteer rescuers said another 60 people were wounded.
/jlne.ws/4hkskJx
Israel races to supply anti-missile shield; Intense war demands have left the IDF relying on the US to fill gaps in air defences
John Paul Rathbone - Financial Times
Israel faces a looming shortage of interceptor missiles as it shores up air defences to protect the country from attacks by Iran and its proxies, according to industry executives, former military officials and analysts. The US is racing to help close gaps in Israel's protective shield, announcing on Sunday the deployment of a Terminal High-Altitude Area Defense (Thaad) antimissile battery, ahead of an expected retaliatory strike from Israel on Iran that risks further regional escalation. "Israel's munitions issue is serious," said Dana Stroul, a former senior US defence official with responsibility for the Middle East.
/jlne.ws/4dKmtdf
Netanyahu Agrees to Limit Strike on Iran, Washington Post Reports
Nick Wadhams - Bloomberg
Israeli Prime Minister Benjamin Netanyahu has agreed to limit his country's retaliation against Iran over the missile attack on Oct. 1 to military targets, according to a report in the Washington Post. Netanyahu has told the Biden administration that he would strike those types of targets rather than Iran's oil infrastructure or nuclear installations, the Post reported, citing two officials familiar with the matter whom it didn't identify.
/jlne.ws/3BMD6rB
What Are Israel's Air Defenses Against Iran's Missiles?
Marissa Newman - Bloomberg
Israel prides itself on having some of the best air defenses in the world, but these billion-dollar systems are being tested. Since the Iran-backed Palestinian group Hamas provoked a new war with Israel on Oct. 7, other militant organizations supported by Iran have joined in, launching rockets, missiles and drones at Israel. Iran itself has struck twice, most recently on Oct. 1 with a barrage of roughly 200 missiles.
/jlne.ws/4f2A9l1
Israel Tells U.S. It Won't Hit Iran's Oil or Nuclear Sites in Next Attack, Officials Say; The Israeli assurances come as the Biden administration tries to avert a bigger war in the Middle East. The region remained on edge as Israeli forces attacked Iranian proxies in Gaza and Lebanon.
Patrick Kingsley, Ronen Bergman - The New York Times
The Israeli government has told the Biden administration that it will avoid striking Iran's nuclear enrichment and oil production sites when it responds to Tehran's recent missile attack, two officials said, a move that may reduce the immediate likelihood of an all-out war between the two adversaries. The officials, who spoke on condition of anonymity to discuss sensitive diplomacy, said that Israel had agreed to focus its next attack on military targets in Iran instead of sites related to Iran's oil industry or its uranium enrichment efforts. The Biden administration believes that if Israel hits such sensitive targets, it could set off a dramatic escalation in the Middle East at a time when Israel is already at war with Iranian proxies in Gaza and Lebanon.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | ASX hosts the fifth Markets Day for Charity
ASX
ASX is today hosting the 2024 Markets Day for Charity, in partnership with nabtrade. This annual event, now in its fifth year, sees the financial sector come together to raise much needed funds for the ASX Refinitiv Charity Foundation with donations distributed amongst 19 charities to go toward helping them improve the lives of thousands of Australians.
/jlne.ws/3U9KJyK
DTCC Announces Industry Sandbox to Support and Advance the Digital Asset Ecosystem
DTCC
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced DTCC Digital Launchpad, an industry sandbox intended to bring together financial market participants and clear the path to scalable adoption of digital assets. As an open ecosystem, DTCC Digital Launchpad will feature market participants, technology providers, and others working together to identify and collaborate on meaningful pilots that have a clear path to production.
/jlne.ws/4054fzR
EEX to launch Baltic-Finnish gas markets on 27 May 2025
EEX
The European Energy Exchange (EEX) will add natural gas products for Baltic-Finnish markets to its platform, currently operated by GET Baltic within EEX Group, from 27 May 2025. The product portfolio will comprise products for the gas spot (Within-Day, Day, Weekend) and derivatives (Month, Quarter, Season, Year) products for Lithuania, common market area of Latvia-Estonia and Finland. In addition, EEX will enable location spread trading between these markets and selected European gas markets, which are already available at EEX. EEX will also extend its objective and transaction-based indices to the new market areas, such as EEX EGSI and EEX EOD. GET Baltic's products for this region will not be available for trading from this date onwards.
/jlne.ws/3YmMFGt
Eurex repo roundtable series 2024
Eurex
Eurex began hosting its inaugural repo roundtables this autumn, in a sign of both its central role in European cleared repo markets and the increasingly important role those markets are playing for the continent's funding needs.
/jlne.ws/3U4sb2v
Interview with Christoph Rieger, Head of Rates and Credit Research at Commerzbank
Eurex
As part of Eurex's new repo roundtable series exploring the challenges and opportunities facing European cleared repo markets, we sat down with Christoph Rieger, Head of Rates and Credit Research at Commerzbank and keynote speaker at the first roundtable in Frankfurt. In this article, Christoph sets out his take on the current state of play in ECB monetary policy and how this might evolve in the coming months and years.
/jlne.ws/3BDWnLB
ICE Reports Record Trading Activity Across Total Futures and Options with Record Volumes Across Global Energy Markets
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced that its total futures and options markets reached record trading activity during Q3 2024 with 517 million contracts traded during the quarter, including a record 276 million energy futures and options. "The development of ICE's commodity and energy markets began over 20 years ago, allowing us to offer customers a truly global and interconnected platform of markets and data across asset classes, all designed with liquidity, precision and flexibility for managing and identifying risk," said Trabue Bland, SVP of Futures Markets at ICE.
/jlne.ws/4h2Ax4L
Vunani Fund Managers Debuts First AMETF on the Johannesburg Stock Exchange
JSE
Trading under the alpha code, VUNGLE, the AMETF aims to provide investors with long term capital growth by investing in global equity and equity-related securities, particularly within developed markets. It is a feeder structure into the Irish-domiciled UCITS fund, the Vunani Global Equity Fund, benchmarked against the MSCI World Net Total Return Index.
/jlne.ws/3BU7j7U
WGBI to Incorporate Tradeweb FTSE Benchmark Closing Prices
Tradeweb
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets has announced that FTSE Russell will make a price source change to include Tradeweb FTSE benchmark closing prices for U.S Treasuries, European Government Bonds and UK Gilts in FTSE's global fixed income indices, including its premiere World Government Bond Index (WGBI). FTSE Russell disclosed this change during its semi-annual country classification announcement on October 8th, 2024. The WGBI, which was launched 40 years ago, measures the performance of fixed-rate, local currency, investment-grade bonds and comprises sovereign debt from over 25 countries, denominated in a variety of currencies, and with a market value of more than $30 trillion. The inclusion of Tradeweb FTSE Closing Prices is expected to go into effect in March 2025.
/jlne.ws/4e3Errz
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Atos Names Philippe Salle as Seventh CEO Since 2021; The troubled French IT firm is finalizing a restructuring deal; The French government intends to buy strategic defense assets
Benoit Berthelot - Bloomberg
Atos SE named businessman Philippe Salle as its seventh chief executive officer in about three years as the troubled French IT company navigates its way through a restructuring with its creditors. Salle will become CEO on Feb. 1 and was voted in as chairman on Monday, the Paris-based company said in a statement on Tuesday. He takes over from Jean-Pierre Mustier, who'd served in both roles since July when the previous CEO stepped down.
/jlne.ws/4h3T0xQ
AI Boom Sparks $2 Billion Bet on DataBank Led by Australian Pension Fund; The data center developer's push to build out three large US facilities is being backed by AustralianSuper and DigitalBridge.
Josh Saul - Bloomberg
Data center developer DataBank has raised $2 billion to build three facilities planned across the US, the latest sign of superheated investor interest in artificial intelligence. AustralianSuper, the country's largest pension fund, led the raise with $1.5 billion. It will become a minority owner of DataBank and appoint a director to the company's board. DigitalBridge, which also participated in the raise, is already DataBank's control investor and appoints the majority of the company's board of directors.
/jlne.ws/4dKnYIp
New York Times to Bezos-Backed AI Startup: Stop Using Our Stuff; Publisher demands that Perplexity stop accessing its content; startup isn't interested 'in being anyone's antagonist,' CEO says
Alexandra Bruell - The Wall Street Journal
The New York Times is picking another fight in the AI world. The publisher has sent generative-AI startup Perplexity a "cease and desist" notice demanding that the firm stop accessing and using its content, according to a copy of the letter reviewed by The Wall Street Journal. The Times is already taking on another AI firm, ChatGPT creator OpenAI, with a lawsuit that is pending. It joins other publishers, including Forbes and Conde Nast, that have accused Perplexity of using their material without permission to generate AI search results.
/jlne.ws/4f3FA37
Amazon, Databricks Strike Five-Year Deal Around AI Chips; Databricks will tap Amazon's Trainium chips to power services for building AI systems, a move that could cut costs for businesses
Belle Lin - The Wall Street Journal
Amazon.com and startup Databricks struck a five-year deal that could cut costs for businesses seeking to build their own artificial-intelligence capabilities. Databricks will use Amazon's Trainium AI chips to power a service that helps companies customize an AI model or build their own. Amazon says customers pay less to use its homegrown chips compared with the competition, such as Nvidia's graphics processing units, or GPUs, which dominate the AI chip market.
/jlne.ws/4eIM2wz
Google orders small modular nuclear reactors for its data centres; Tech group signs deal with Kairos Power to build up to seven small facilities to meet its energy needs
Malcolm Moore - Financial Times
Google has ordered six to seven small modular nuclear reactors (SMRs) from Kairos Power, becoming the first tech company to commission new nuclear power plants to provide low-carbon electricity for its energy-hungry data centres. Google and Kairos said on Monday that the tech company had placed an order for SMRs with a total capacity of 500MW, helping Kairos, a seven-year-old start-up, to bring its first commercial reactor online by 2030 and additional reactors by 2035. The agreement was "a landmark for us at Google in our 15-year clean energy journey", said Michael Terrell, the company's senior director of energy and climate. "We feel nuclear can play an important role in helping us to meet our demand, and helping us to meet our demand cleanly and round the clock," he said. Asked if the reactors would feed into the grid or be directly connected to data centres, Terrell said Google was considering all options.
/jlne.ws/3YonumZ
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| Cybersecurity | | Top stories for cybersecurity | Chinese Cyber Agency Rejects US Hacking Claims in New Report; China says US frames other countries for own cyber-spying; US has tied Volt Typhoon group to hacking of critical networks
Bloomberg News
China's cybersecurity agency again rejected claims by the US and Microsoft Corp. from earlier this year that Chinese hackers were behind a high-profile attack on critical American computer networks known as Volt Typhoon. Calling the claims a "political farce" orchestrated by Washington, China's National Computer Virus Emergency Response Center said in a report released Monday that more than 50 cybersecurity experts from around the world agreed that there was insufficient evidence to link Volt Typhoon to Beijing.
/jlne.ws/3A1fGyc
Hong Kong government to hold first joint cybersecurity drill among departments, organisations; Officials at Legislative Council information technology and broadcasting panel meeting discuss mitigating 'rising' risk of cyberattacks in city
Leopold Chen - South China Morning Post
The Hong Kong government will hold its first joint cyberattack and defence drill among various departments and public organisations to deal with rising cybersecurity risks. Cybersecurity officials told the Legislative Council on Monday authorities would hold an annual online security drill among government departments, with the first set to take place in November. They also revealed that the number of technology related crimes had risen significantly in 2023, the most common of which was unauthorised access to online services.
/jlne.ws/4f2fJs9
Hong Kong fraudsters use deepfake tech to swindle love-struck men out of HK$360 million
Clifford Lo - South China Morning Post
Hong Kong police have for the first time smashed a local fraud syndicate that used deepfake technology to swap the faces of the swindlers with those of attractive women in video calls to cheat love-struck men in the region, including Singapore, out of HK$360 million (U$46 million). The force said on Monday it had arrested 27 people, including university graduates recruited by the syndicate to set up fake trading platforms that were used to lure victims into "investing" in cryptocurrencies. The victims included men from Hong Kong, mainland China, Taiwan, India and Singapore, among others, the force said.
/jlne.ws/3NtkOxW
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| Cryptocurrencies | | Top stories for cryptocurrencies | Ripple challenges industry giants with new stablecoin
Reuters
Crypto firm Ripple launched a stablecoin pegged to the U.S. dollar on Tuesday, looking to disrupt a market in which the top two incumbents account for nearly 90% of the value. The venture marks a major milestone for Ripple, coming more than a year after a landmark win in a case against the Securities and Exchange Commission last year.
/jlne.ws/3BLvIwv
Vice President Kamala Harris vows to support a crypto regulatory framework in plan to support Black men
Sarah Wynn - The Block
U.S. Vice President Kamala Harris said she plans to support a cryptocurrency regulatory framework that gives protections to Black men who invest and own crypto as part of a newly released proposal to help build wealth for Black men. Less than a month out before the presidential election, Harris released a proposal called the "Opportunity Agenda for Black Men" on Monday. Over 20% of Black Americans own or have in the past owned crypto, according to the Harris teams' plan.
/jlne.ws/3A868RN
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| Politics | | An overview of politics as it relates to the financial markets | How Trump allies are sowing election doubts; Rightwing organisations have spent months and millions of dollars contesting ballot procedures and voter eligibility
Eva Xiao and Peter Andringa - Financial Times
Tina Barton will never forget the moment someone threatened to kill her and her family. It was November 2020; Barton, then a city clerk in the battleground state of Michigan, had just administered the most stressful election she had ever experienced. Her team had accidentally sent in a vote count to county officials twice; though the mistake was rapidly corrected - during a period dedicated to accuracy checks - a Republican official claimed the mix-up had given Democrats more votes. Days later came the terrifying voicemail, which said Barton deserved a knife to the throat. "You frauded out America of a real election," the caller said.
/jlne.ws/4e38gIN
US election bets surge after court lifts ban; Traders on prediction markets narrowly favour a Trump victory over Harris next month
Jennifer Hughes - Financial Times
Millions of dollars in new wagers are being placed on the US presidential race - narrowly favouring Donald Trump - as fledgling platforms chase bets from professional investors following the lifting of a domestic betting ban last week. Kalshi, whose court victory in Washington over a US regulator opened the market, is offering institutional investors the opportunity to put as much as $100mn on either Kamala Harris or Trump for a win in November.
/jlne.ws/3BLCrqg
Trump wants a U.S. wealth fund that surpasses Norway's. Some Norwegians aren't sold.; Trump and the Biden White House both say the United States should have a sovereign wealth fund. Norway, home to the world's largest, may offer a few lessons.
Adam Taylor - The Washington Post
The Trump campaign and the Biden administration do not often agree, but they do appear to have at least one new area of overlap: Both say they are at work on proposals for a U.S. sovereign wealth fund, an investment fund owned and operated by the government. It would not be an obvious policy choice. Around the world, such funds are often associated with autocracy and corruption - and with countries that have surplus to invest rather than mammoth debt. But Norway's fund, the world's largest and seen as an economic miracle, shows why the idea has drawn attention and envy from both sides of the aisle.
/jlne.ws/3Y4JqCk
US Weighs Capping Exports of AI Chips From Nvidia and AMD to Some Countries; Officials reviewing AI chip policy with focus on Middle East; It's unclear whether measures would be imposed in Biden's term
Mackenzie Hawkins - Bloomberg
Biden administration officials have discussed capping sales of advanced AI chips from Nvidia Corp. and other American companies on a country-specific basis, people familiar with the matter said, a move that would limit some nations' artificial intelligence capabilities.
/jlne.ws/4h7uo7f
Behind the Curtain - Election scenario 1: War-gaming a Trump sweep; First in a series
Jim VandeHei, Mike Allen - Axios
If former President Trump wins the election, and Republicans keep the House and flip the Senate, the U.S. would witness a dramatic consolidation of new right-wing populist power at scale. Why it matters: A Washington fully controlled by Trump and his allies would institutionalize the MAGA movement, with massive consequences for governance, civil rights and international relations. This period, lasting at least two years, until the next congressional races, would allow Republicans to move ambitiously - with few brakes beyond the Senate filibuster.
/jlne.ws/4eKQlHI
UK to raise bank ringfencing threshold to 'improve competitiveness'; Wider package of reforms expected 'as soon as parliamentary time allows', says minister
Michael O'Dwyer and Akila Quinio - Financial Times
The UK government will raise its bank ringfencing threshold by £10bn, allowing lenders to amass £35bn of customer deposits before they must separate their retail operations from riskier investment banking divisions. City minister Tulip Siddiq confirmed the decision in a written ministerial statement in which she set out reforms including "an increase in the primary deposit threshold for ringfenced banks, from £25bn to £35bn".
/jlne.ws/3YpOQcu
France calls for tighter monitoring of Russian gas exports to EU; LNG flows have increased despite attempts to sanction Moscow and weaken its economy
Alice Hancock - Financial Times
/jlne.ws/404N4i1
Georgian president says pro-Russia ruling party 'rigging' election; Salome Zourabichvili urges voters to choose 'between a European future and a Russian past'
Ben Hall and Anastasia Stognei in Tbilisi - Financial Times
/jlne.ws/3UbRbF9
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| Regulation & Enforcement | | Stories about regulation and the law. | Investor alert: Reports of stolen shares due to identity theft on the rise
ASIC
ASIC is warning investors to be on high alert following a significant increase in reports of stolen shares since August 2024 from people who have had their personal identity compromised. Fraudsters are impersonating individuals and stealing their shares, with many victims unaware their shares have been transferred or sold until they receive a confirmation letter in the mail from a share registry or the Clearing House Electronic Subregister System (CHESS).
/jlne.ws/3zYtjy1
Speech by FMA Chief Executive Samantha Barrass at Institute of Financial Professionals New Zealand Conference 2024
FMA
Tena koutou katoa, Thank you for having me speak to you all today, and a big thank you to INFINZ and staff for hosting this event. It was a pleasure to be a part of your annual dinner earlier this year, celebrating amazing personal and team achievements, and I'm delighted to have the opportunity to be here to speak to you today. Thank you too, Michael, for those fascinating insights on the art of changing minds. This is incredibly useful, because some of what we strive to do as a regulator is exactly that, changing minds. Our engagement-led approach is about engaging with industry, nudging, guiding, steering, and sometimes directing, using all the soft and hard powers we have at our disposal. It's also about engaging and informing consumers as well, to try to encourage people to make thoughtful, good decisions as they save, invest and plan for their financial futures - so they understand their options and the opportunities and risks involved.
/jlne.ws/4f50z5v
Business Continuity Exercise to Bolster Singapore Financial Sector's Operational Resilience
MAS
The Monetary Authority of Singapore (MAS) and The Association of Banks in Singapore (ABS) jointly conducted today a business continuity exercise with financial institutions to strengthen the financial sector's crisis management and operational resilience.
/jlne.ws/404wezW
SFC commences MMT proceedings against Dickson Poon over alleged insider dealing and Dickson Concepts as well as its senior executives for late disclosure of inside information
SFC
The Securities and Futures Commission (SFC) has commenced proceedings in the Market Misconduct Tribunal (MMT) against chairman of Dickson Concepts (International) Limited (Dickson Concepts), Mr Dickson Poon, and Equity Advantage Limited (Equity) for alleged insider dealing in the shares of Dickson Concepts (Notes 1 and 2). The SFC also alleges that Dickson Poon and his son Mr Dickson Pearson Guanda Poon (Pearson Poon), an executive director of Dickson Concepts, caused the company's breach of the disclosure of inside information requirements, resulting in a seven-week delay in its disclosure.
/jlne.ws/4dHiDla
Court sets next hearing date for insider dealing case against Segantii Capital Management and its chief investment officer
SFC
The District Court today adjourned to 19 December 2024 for mention the insider dealing case against Segantii Capital Management Limited, its director and chief investment officer Mr Simon Sadler, and former trader Mr Daniel La Rocca (Note 1). No plea was taken from the defendants at today's hearing.
/jlne.ws/4eIBQ7h
SFC reprimands and fines Zheshang International Financial Holdings Co., Limited $2.66 million for regulatory breaches
SFC
The Securities and Futures Commission (SFC) has reprimanded and fined Zheshang International Financial Holdings Co., Limited (Zheshang) $2.66 million for failures in complying with anti-money laundering and counter-financing of terrorism (AML/CFT) and other regulatory requirements between June 2016 and October 2018 (Relevant Period) (Note 1). The SFC's investigation found that Zheshang failed to put in place an effective ongoing monitoring system to detect and assess suspicious trading patterns in client accounts, which resulted in its failure to detect the majority of the 23,370 self-matched trades that occurred in three client accounts during the Relevant Period (Note 2).
/jlne.ws/4h3Q1p7
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Private Equity Shouldn't Be Greedy in IPOs, BC Partners Says; Springer Nature backer eyes future selldowns if shares rise; Buyout group could list three more companies in next 18 months
Pablo Mayo Cerqueiro - Bloomberg
Private equity firms should compromise on valuation and leave money on the table for new listings to succeed in what is currently a "buyer's market," according to asset manager BC Partners. "As private equity owners, we need to make sure that we leave some runway and we don't try and squeeze every last dollar at IPO," said Nikos Stathopoulos, Europe chairman, in an interview.
/jlne.ws/3YomBe4
Aluminum Squeeze Unravels on LME, Easing Pressure on Sellers; Steep premiums for October aluminum contracts disappear on LME; Trafigura held large long position, Bloomberg has reported
Mark Burton - Bloomberg
A squeeze in the London Metal Exchange aluminum market is drawing to a close, bringing relief to sellers who have been under pressure since a large buyer emerged. For months, the October aluminum contract has been a focal point for traders due to its steep premium to later-dated futures. Now, with the contract set to expire on Wednesday, that premium has vanished after a wave of selling over the past two trading days.
/jlne.ws/4f2KX2x
Olive oil heartlands battle over the industry's future; Mega farms are encroaching on a market long dominated by smallholders, as prices remain near record highs
Barney Jopson in Montefrío and Amy Kazmin in Castiglion Fiorentino - Financial Times
The cradle of global olive oil production is a sun-beaten range of hills in southern Spain, each plot studded with fruit-bearing trees as far as the eye can see. It is also the setting for a commercial battle over the EUR14bn industry's future. Manuel Adamuz Comino, a farmer in Montefrío, marches along one gravelly slope inspecting his olives for wrinkles. When they shrivel it means the trees - among nature's hardiest survivors - are parched and diverting water to their core, he explains. A brutal drought last year resulted in dead olives and a meagre autumn-winter harvest.
/jlne.ws/3YnAGIy
Rachel Reeves should not appease bond market vigilantes; In preparing her inaugural Budget, she would do well to ignore advice from market sages
Toby Nangle - Financial Times (opinion)
Gilts yields have risen over the past month, pushing down prices. Some political commentators have ascribed causation directly to fears of a supply glut in the upcoming Budget. To market professionals, such analysis looks overblown. As Rob Wood, chief UK economist at Pantheon Economics, explains, gilts have tracked US Treasuries weaker on the back of stronger economic data. This has caused investors to row back their expectations around the pace of interest rate cuts by both the Bank of England and the US Federal Reserve, pushing bond yields higher and prices lower. Supply fears have not been the market's main driver. Still, the trauma of Liz Truss's disastrous "mini" Budget is fresh enough to prompt anxiety among officials about whether the gilt market has capacity to absorb fresh waves of supply.
/jlne.ws/4f3v7Vn
Guess What Percent Of Households Have Over $1 Million? You Might Be Shocked By The Number Of Millionaires
Ivy Grace - Benzinga
Many people dream of joining the millionaire club and that dream has become a reality for many Americans. According to the Federal Reserve's latest data from the end of 2022, the number of millionaire households in the U.S. is rising - and it's not just inflation making the numbers look bigger. Even when adjusting for inflation, the percentage of households with a net worth of at least $1 million surged from 2019 to 2022 after being relatively flat for nearly two decades.
/jlne.ws/3YzvmlP
ECB Should Shock and Awe With Half-Point Rate Cut; Time to put caution aside to prevent the onset of deflation.
Marcus Ashworth - Bloomberg Opinion
A return to deflation is the single most important development that the European Central Bank must avoid. Which is why I'm advocating for a 50 basis-point deposit rate cut to 3% at Thursday's Governing Council meeting. It's time to bring out a Federal Reserve-style bazooka. The euro area can no longer dally with neatly orchestrated small-step interest-rate reductions: All the economic warning signs are flashing red.
/jlne.ws/408KIP9
Some Hedge Funds Are Missing a Trick - Volume Alpha; Execution matters as much as picking the right stocks. Machine learning can help.
Jonathan Levin - Bloomberg Opinion
Machine learning is ubiquitous in financial markets, and we tend to associate it with the sexy parts of hedge fund investing: what to buy, what to sell and how to pick a bottom or a top. But if you run a multibillion-dollar quantitative investment strategy with high turnover, the operative question is frequently, "How do I avoid shooting myself in the foot with poor trade execution?" In that sense, predicting volume can be just as important as predicting prices. If you place a buy order on a low-volume trading day and it causes the share price to skyrocket, it might not matter how clever your investment thesis was.
/jlne.ws/3YnxOvf
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Insurers embrace climate change investments as catastrophe costs mount; Industry adopts low-carbon goals it once shunned as natural disaster losses exceed $100bn a year
Brooke Masters - Financial Times
Virtually all global insurers now include at least one low-carbon transition goal within their investment plans, a sharp change from two years ago when only 2 per cent of them had actual commitments, BlackRock's latest survey of the industry has found. The survey of 410 senior executives at companies with a collective $27tn in assets highlights the importance insurance companies place on getting to grips with climate change and the long-term opportunities they see in financing the transition.
/jlne.ws/3Y9VEt8
India Unveils $109 Billion Transmission Plan for Green Power; Project will help integrate 500GW of renewables by 2030; Boosting the grid will also aid new planned coal and nuclear
Rajesh Kumar Singh - Bloomberg
India's power ministry unveiled a plan to revamp its power grid to accommodate a large renewable expansion through 2032. The project, estimated to cost 9.15 trillion rupees ($109 billion), will help integrate 500 gigawatts of renewable power by the end of the decade, a more than two-fold increase from now, the ministry said in a statement on Monday.
/jlne.ws/4h9j0Yz
Southern Africa endures its worst hunger crisis in decades. Drought from El Nino to blame, UN says
Gerald Imray - Associated Press Finance
Months of drought in southern Africa triggered by the El Nino weather phenomenon have had a devastating impact on more than 27 million people and caused the region's worst hunger crisis in decades, the United Nations' food agency said on Tuesday. The World Food Program warned it could become a "full-scale human catastrophe."
/jlne.ws/3A14ZM4
This Year's Hottest App Is a Wildfire Tracker; Watch Duty is vying with TikTok and ChatGPT in popularity, and it's part of a growing number of apps helping users stay safe amid increasingly dire fire seasons.
Kyle Stock - Bloomberg
The wildfire didn't burn Lisa Rice's home, but it huffed it full of smoke and soot, and melted the seals on the windows and doors. Nearly four years later, she's still agitated during fire season, which spans roughly half of the year where she lives in Boulder, Colorado. "One of the biggest things is the emotional - the PTSD - part of it," she explains. "When it gets windy and you can smell smoke, I do kind of get on edge quickly."
/jlne.ws/3BJIQ5f
Members of Congress call on companies to retain DEI programs as court cases grind on
Cathy Bussewitz - Associated Press Finance
A group of Democrats in Congress appealed to the largest U.S. companies Tuesday to hold onto their diversity, equity and inclusion programs, saying such efforts give everyone a fair chance at achieving the American dream. The 49 House members, led by U.S. Rep. Robert Garcia of California, shared their views in a letter emailed to the leaders of the Fortune 1000. The move follows several major corporations saying in recent months that they would end or curtail their DEI initiatives.
/jlne.ws/3U9lDQs
Female Leadership Suffers When Private Equity Firms Invest; Female representation falls after private equity invests; LCap analysed the leadership of 1,424 European companies
Isabella Ward - Bloomberg
Female board and leadership representation at European companies plunges whens private equity firms invest, according to a study by consultancy LCap Group. The average percentage of women in leadership positions tumbles to 16% by the end of the private equity investment holding period, down from an average 20% before they invest, the study of 1,424 European companies showed.
/jlne.ws/4gYRVau
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | World Bank Sees Raising Record-Breaking Funds for Poor Nations 'Challenging'; US dollar appreciation, competing demands stretching donors; IDA must raise $105 billion just to keep pace with inflation
Jorgelina Do Rosario - Bloomberg
The World Bank faces a "challenging" task of raising a record amount of new money to help the most impoverished nations, according to a top official from the development lender. Akihiko Nishio, vice-president of development finance, said a strong US dollar is one key factor, as are the competing funding demands on donors, including aid to support Ukraine, refugees and those impacted by higher food prices.
/jlne.ws/3Ntc372
Deutsche Bank Shareholder Is Looking to Sell $279 Million Stake; German lender's stock price is up more than 30% this year; Deal comes amid a flurry of selldowns from European companies
Pablo Mayo Cerqueiro - Bloomberg
A single shareholder of Deutsche Bank AG is offering to sell around 16 million shares in the German lender, according to a person familiar with the matter. The deal is likely to price at EUR16.01 ($17.46) per share, according to terms seen by Bloomberg. The sale could raise about EUR256 million ($279 million) in gross proceeds for the seller, according to Bloomberg calculations. Goldman Sachs Group Inc. is arranging the sale, the terms showed.
/jlne.ws/3zWFj38
Swiss regulator orders UBS to bolster emergency plans; Finma suspends annual approval of bank's 'living will' in light of added risk from Credit Suisse takeover
Owen Walker - Financial Times
The Swiss financial regulator has ordered UBS to bolster its emergency and recovery plans in light of the added risk it has taken on following its takeover of Credit Suisse last year. In a statement on Tuesday morning, Finma said it had suspended its annual approval of UBS's resolution strategy - commonly known as its "living will", which banks have to draw up in case they run into difficulties - and called on the bank to improve its existing plan.
/jlne.ws/4h3bFdd
Citigroup profit drops on bigger stockpiles for potential loan losses
Tatiana Bautzer and Manya Saini - Reuters
Citigroup's (C) profit fell 9% in the third quarter as it set aside more money to cover loans that may not be repaid, particularly on credit cards. The third-largest US lender's net income dropped to $3.2 billion, or $1.51 per share, compared with $3.5 billion, or $1.63 per share, a year earlier, it reported on Tuesday.
/jlne.ws/3BJnhlz
Citi Notches Gains Across Board as Trading Outdoes Expectations; Markets unit turns in best third quarter in at least a decade; Stock traders battled a surge in volatility in third quarter
Todd Gillespie - Bloomberg
Citigroup Inc.'s traders turned in their best third-quarter performance in at least a decade as they benefited from the surge in volatility across asset classes in recent months. Revenue from the Wall Street behemoth's markets division climbed 1% to $4.82 billion in the third quarter, a surprise increase after the company warned investors it was expecting such income to drop just a few weeks ago. The business was helped by a 32% surge in stock trading revenue.
/jlne.ws/3UaldJk
BofA's Bankers, Traders Help Earnings Top Estimates
Katherine Doherty - Bloomberg
of America Corp.'s Wall Street operations performed better than expected as the company reaped the benefits of volatile markets while net interest income topped analysts' estimates. Revenue from equity and fixed income, currencies and commodities trading rose 12% to $4.93 billion in the third quarter, the company said in a statement Tuesday. Investment banking also outperformed expectations, a sign that the long-awaiting rebound in dealmaking is taking hold. That helped Bank of America top analysts' estimates for per-share earnings.
/jlne.ws/3zX2tGA
UK to raise bank ringfencing threshold to 'improve competitiveness'; Wider package of reforms expected 'as soon as parliamentary time allows', says minister
Michael O'Dwyer - Financial Times
/jlne.ws/3zYuwp3
Goldman Sachs profits jump 45% to $3bn after trading boost; Net income outstrips expectations despite hit from retail banking retreat
Joshua Franklin - Financial Times
/jlne.ws/3U81t9r
Banks' Exposure to Private Credit Is Rising, Moody's Says; Average bank lending grew 18% annually from 2021 to 2023; Bank regulators have raised concern about private credit risk
Ellen Schneider - Bloomberg
/jlne.ws/3Y81bjT
Biggest US public pension fund Calpers invests in UK's Octopus Energy; California retirement fund among investors drawn to power company for its software and green focus
Rachel Millard and Attracta Mooney - Financial Times
/jlne.ws/4f23An3
Sustainable fund specialist Robeco launches first ETFs; The Dutch asset manager joins growing number of active managers to enter exchange traded fund industry
Steve Johnson - Financial Times
/jlne.ws/48aqI0r
UBS Hedge Fund Rides $4 Billion Bet on Merger-Arb Trade Revival; Election, expected deal closings seen as near-term catalysts; O'Connor keeps a third of its $12 billion fund in merger-arb
Yiqin Shen - Bloomberg
/jlne.ws/4f0twzw
Central Bankers Make Rare Comments in Favor of Bigger Gold Stash; Mexico, Mongolia, Czech reserve managers speak at conference; Central bank buying helped fuel gold's ferocious run this year
Yvonne Yue Li
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Jane Street interns make more than Keir Starmer and Jay Powell
Robin Wigglesworth - Financial Times
Alphaville was moseying around Jane Street's website today, as you do, and took a look at some of its current job openings. There are a lot of them, highlighting just how quickly the firm is growing at the moment - even after doubling in size since 2021. There are 58 positions open in New York alone, for everything from Linux engineers and options traders to an interior designer. Many of the roles list a base salary range of $250,000 to $300,000, with the important caveat that this "is only one part of Jane Street total compensation, which includes an annual discretionary bonus".
/jlne.ws/4eKR5wx
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Opinion: Don't be stupid: Skipping your COVID booster could reduce your IQ; Many people know that COVID infections might lead to short-term "brain fog," but studies raise the prospect of cognitive deficits that can last for years.
Ian Ayres and Lisa Sanders - Los Angeles Times
The nation's COVID-19 vaccination effort is failing. Last year, only 22% of adults received the latest COVID booster, which is less than half the rate of vaccination for the flu - even though COVID is twice as deadly. Amid growing concern about the effects of long COVID and ahead of a likely surge in infections this winter by an even more contagious variant, we need more effective public health messages to encourage immunization. Much has been made of COVID's consequences for overall health, productivity and the economy. But recent research suggests a compelling new basis for vaccine advocacy: COVID's capacity to reduce intelligence.
/jlne.ws/4h7sR0Z
Simple Economics Can Help Cut Health-Care Costs; Increasing the supply of labor is a good place to start.
The Editorial Board - Bloomberg
Of the $4.5 trillion the US spends on health care every year, the largest proportion - almost a third - goes to hospitals. The cost of hospital services has consistently outpaced the overall inflation rate for at least two decades. If Vice President Kamala Harris and former President Donald Trump really want to reduce health-care costs - as they both say - addressing this trend should be a priority. Hospitals are heavily regulated, labyrinthine institutions that straddle the public and private sectors. In many cases, their pricing is subject to forces beyond their control. But absent (another) major reform to the US health-insurance system, more straightforward changes can still help rein in spending.
/jlne.ws/4dLN21N
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Soy-Sauce Maker Haitian Is Said to Weigh $1.5 Billion HK Listing; Share sale in Hong Kong could happen in first half next year; City has seen a return of sizable listings amid stock rally
Pei Li - Bloomberg
Foshan Haitian Flavouring & Food Co., one of the biggest condiment makers in China, is considering a second listing in Hong Kong that could raise at least $1.5 billion, people familiar with the situation said. The Guangdong-based company is in talks with advisers on a potential share sale in the Asian financial hub and a listing could happen in the first half of next year, the people said. Haitian's Shanghai-listed shares have risen almost 20% this year, giving the company a market value of about $35 billion.
/jlne.ws/400aIME
Why Taiwan's Status Risks Igniting a US-China Clash
Samson Ellis - Bloomberg
Wealthy, democratic and strategically located off the Chinese coast, Taiwan has long been the most volatile issue between the US and China. Washington and Beijing have avoided serious conflict by leaving unsettled the question of who actually owns the island. But it's becoming harder to avoid as China's military ratchets up exercises near what President Xi Jinping views as his country's lost territory. Standing in the way are the US Pacific Fleet and Taiwanese voters, who have emphatically rejected closer ties with Beijing in three straight elections.
/jlne.ws/4eP2yvi
Australia to ban 'dodgy' dynamic pricing after Green Day furore; Labor government looks to tighten consumer laws ahead of election
Nic Fildes - Financial Times
Australia plans to ban "dynamic pricing" amid rising anger from fans faced with soaring prices as they try to buy in-demand tickets to see their favourite bands. "We're taking strong action to stop businesses from engaging in dodgy practices that rip consumers off," said Australian Prime Minister Anthony Albanese on Tuesday, as he outlined plans to strengthen consumer laws after a Treasury consultation.
/jlne.ws/3U9UEE9
Khazanah Seeks to Lure Fund Managers into Malaysia in VC Push
Nurin Sofia October - Bloomberg
Malaysia's sovereign wealth fund Khazanah Nasional Bhd. is launching initiatives to support local venture capital funds and attract international managers, in a boost to its efforts to become a venture capital hub by 2030. The wealth fund is setting up an initiative to attract established international fund managers to expand into Malaysia and facilitate the redomiciling of global companies, according to a statement Tuesday.
/jlne.ws/3BWS3Hm
IBM Investigates Allegations of Executive Misconduct in China
Yuan Gao and Brody Ford - Bloomberg
International Business Machines Corp. is looking into allegations against its China head after a letter circulating online accused the executive of misconduct, including accepting gifts from business partners, the latest upheaval in the US firm's operations in the Asian country.
/jlne.ws/4dL6mfx
A Trader's Guide to Navigating Malaysia's 2025 Budget Plan
Eduard Gismatullin and Matthew Burgess - Bloomberg
/jlne.ws/4h4Srnu
Senegal Close to Exiting Watchdog's Dirty Money 'Gray List'; FATF visit notes significant progress to exit 'gray list'; Final decision to be made at plenary meeting on Oct. 25
Ben Bartenstein and Katarina Hoije - Bloomberg
/jlne.ws/3A2wswJ
Bearish Rate Bets Hand Win to Brazil's Battered Hedge Funds; Legacy, Ace, and Kapitalo posted strong advances in September; Hedge funds beat benchmark for only the third time this year
Felipe Saturnino - Bloomberg
/jlne.ws/3BWKD6Y
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