| November 20, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
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John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
FIA CEO and President Walt Lukken's opening comments yesterday welcomed attendees to FIA Expo in Chicago, expressing relief in escaping Washington's political climate. He emphasized the need for honesty and common sense in addressing industry challenges. Lukken introduced the concept of "Tell the Truth Day," inspired by the Washington Commanders' coach Dan Quinn's "Tell the Truth Mondays." Since he is asking for the truth, I missed his remarks as I was preparing my video set up for an interview with the CFTC chairman following his opening remarks and the last fireside chat with Rostin Behnam as CFTC chair.
Key points from Walt's opening remarks were:
-Global growth in futures and options trading is strong, with 2024 expected to be the seventh consecutive record year.
-The global growth story of our industry is real.
-This industry's growth is fueled by innovation, and we must nurture this environment of risk-taking.
-The laws and regulations of our industry must keep pace with our evolving market structure.
It is the third point that is the most interesting, as it asks the CFTC to address the issue of exchanges owning FCMs as we saw in the recent case of the CME's FCM application being approved by the CFTC. Here are some of Walt's remarks:
"Public exchanges that bring together buyers and sellers are regulated to protect the fairness of the marketplace. Clearinghouses, with their obligations to protect the financial integrity of the system, have strict financial protections and safeguards to avoid contagion risk. And clearing members, who serve as agents for their clients, are charged to protect these customers and their funds.
Increasingly, however, we are seeing more exchanges embedding all of these functions within one legal structure.
But as the Good Book says, "No one can serve two masters."
FIA has strong concerns that consolidating these functions could undo the independent checks and balances of our markets and, ultimately, put customers at risk. We strongly encourage the current CFTC and the incoming Administration to propose strong rules that govern the inherent conflicts from these arrangements."
Walt also talked both about his adopted professional football team, the Washington Commanders, and his undefeated Indiana Hoosiers. Since I was not there, and this is not part of the official transcript the FIA published with his ad lib gibe at me and my alma mater, I asked Perplexity to make up a quote for me for Walt. I think what he actually said was something like, "Sorry about John Lothian's Purdue Boilermakers."
Here is what Perplexity wrote: "Unlike John Lothian's alma mater, whose football team seems to be having a season as disappointing as a failed trade execution." One way or another, "Ouch!"
The World Federation of Exchanges elected seven new members to its board of directors at its 63rd General Assembly hosted by Bursa Malaysia. The new members are: Gilson Finkelsztain, CEO, B3, Korkmaz Ergun, CEO, Borsa Istanbul, Carlson Tong, Chairman, Hong Kong Exchanges and Clearing Limited (HKEX), Julie Becker, CEO, Luxembourg Stock Exchange, Edward Knight, Executive Vice Chairman, Nasdaq, Ashishkumar Chauhan, Managing Director & CEO, NSE India and Khalid Al Hussan, CEO, Saudi Tadawul Group (STG).
Bloomberg reports that on November 20, 2024, the Swiss Federal Council released a report concluding that agricultural traders are not responsible for recent food price increases. The report attributes significant price fluctuations to fundamental factors such as extreme weather events, stockpile levels, trade restrictions, and geopolitical tensions, notably the war in Ukraine. It also notes that enhanced transparency in international agricultural commodity markets has improved their functionality. Consequently, the Council advises against Switzerland implementing unilateral measures to further increase market transparency, citing the country's limited influence on global pricing and an unfavorable cost-benefit ratio. This stance alleviates pressure on the numerous agricultural trading firms based in Switzerland, which had faced criticism for profiting amid market volatility during the Ukraine conflict.
On the same theme, the Financial Times' Martin Wolf has selected his own list of must-read titles of economics publications. The title of the FT story is "Best books of 2024: Economics - Martin Wolf selects his must-read titles."
When the Covid-19 pandemic hit starting in January of 2020, we were forced to isolate ourselves from each other to avoid spreading the virus. Unfortunately, we also lost the normal rhythms of work and home. Amidst those early days of the pandemic, I missed out on learning about the death of an industry friend of mine who passed away from a heart attack on December 31, 2019. I only learned of his death when I ran into his son at FIA EXPO yesterday. I am shocked by this news and I mourn this loss. I am mad at myself for missing this. He would come and go from my life, disappearing for months at a time, so it was not unusual for us not to be in contact often. But I am disappointed in myself. RIP Steven Drake Hurst.
When Bloomberg has the "Tallest Business Leaders Pick the Year's 49 Best Books" maybe they will ask me for my reading list. Instead, the story is the "Top Business Leaders Pick the Year's 49 Best Books." Personally, I don't see the difference between "Tallest" and "Top." The subheadline is "Our annual list of what powerful people found essential reading this year." What exactly makes someone powerful, anyway?
Here are the headlines from in front of FOW's paywall from some recent stories: ANALYSIS: TT sees US index options as step in 'multi-asset X' strategy, OSTTRA cuts exchange-traded derivatives post-trade deal with FIS, ANALYSIS: Derivatives regulations restricting Asian risk access amid growth - ISDA, BGC chief Lutnick tapped for commerce role in Trump cabinet and FIA's Lukken calls again for action on exchanges owning brokers.
Congratulations to Clive Furness on the 25th anniversary of founding Contango Markets yesterday. It is amazing how many great things started 25 years ago.
Former CFTC Chairman and Circle CLO Heath Tarbert was the guest on a podcast by SpotDraft. It was Episode 67, titled "The Future of Crypto Regulation with Heath Tarbert, Circle CLO and Former CFTC Chair."
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:
- Nasdaq Poised to List Spot-Bitcoin ETF Options as Crypto Assets Rally from Bloomberg.
- Expo 2024 Opening Remarks: Telling the truth about our markets from FIA.
- How Do Changes in the VIX Affect BPR for Strangles and ICs from tastylive (Video). ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Catherine Yoshimoto, Director of Product Management, FTSE Russell, Talks With JLN About Investing and Listing Trends
JohnLothianNews.com
FTSE Russell this year is celebrating the 40th anniversary of the launch of Russell Indexes, and Catherine Yoshimoto, Director of Product Management at FTSE Russell, was in Chicago for a special event at the Cboe to mark the occasion. JLN met up with her downtown on Tuesday, November 12th for a chat. Last June, FTSE Russell celebrated the 35th anniversary of the annual reconstitution of the Indexes, which have been rebalanced annually since 1989. Cboe is licensed to offer options on the Russell Indexes, and the CME offers the futures on the Russell Indexes.
Read more »
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From Pit to Profit: One Trader's Journey from Market Crash to Market Maker
JohnLothianNews.com
When Kevin Jamali first stepped onto the trading floor of the Chicago Board of Trade, he wasn't just reaching for financial success-he was seeking redemption for a childhood trauma he barely understood.
Watch the video »
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Picking a Broker: Futures Discovery EP 16
JohnLothianNews.com
Choosing the right broker is fundamental to your trading success. This process involves several important considerations to ensure you select a broker that meets your needs and helps you achieve your trading goals. First and foremost, it's essential to verify the broker's regulatory compliance. Make sure they are registered with appropriate regulatory bodies, such as the U.S. Commodity Futures Trading Commission, CFTC. This registration is a mark of legitimacy and ensures brokers adhere to the industry standards and regulations.
Watch the video »
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The Legal Mind Behind Futures Industry Landmarks, Part Four
JohnLothianNews.com
In the final segment of the John Lothian Profiles interview, veteran attorney William Nissen shared his thoughts on more landmark cases and the evolution of CFTC enforcement practices and their impact on the industry.
Watch the video »
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Why Everyone Is Now Watching Podcasts on YouTube; One of the most powerful companies in entertainment has become the king of podcasts because we don't just listen to people talking into microphones for hours. We watch them.
Ben Cohen - The Wall Street Journal
One of the most powerful forces in entertainment has become so pervasive in so many ways that you probably don't even realize the full extent of its reach. But the latest way that YouTube is taking over the world might just be the unlikeliest one yet. This site best known as a place to watch videos is now the biggest platform for podcasts.
/jlne.ws/3Z0WCbC
****** You will not be watching me on my podcasts.~JJL
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OneChronos raises $32 million in funding round; The capital is set to "optimise growth and expand trading opportunities".
Claudia Preece -The Trade
OneChronos has raised $32 million in a recent funding round as it seeks to enhance its offering. The capital is set to "optimise growth and expand trading opportunities" as the company looks to bolster its core business segments and grow in new markets "where current trading mechanisms leave significant value untapped".
/jlne.ws/3YZ5cHX
***** Is OneChronos sneaking up on the markets? They have been under the radar, but I am hearing more pings lately.~JJL
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Tuesday's Top Three
Our top story Tuesday was a tie between CQG to Offer Day-One Connectivity to New MIAX Futures Exchange Matching Engine, from CQG, and Trading Technologies to offer clients access to Cboe equity index options, from TT. Second was Bluesky Explained: Why This Social Media Network Has 20 Million Users and Is Growing, from CNET. And third was FIA Tech Announces Launch of Sanctioned Securities, from FIA Tech.
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| Lead Stories | CFTC Chair Says Still Weighing Clearing US Treasuries Abroad; Derivatives regulator is working with Treasury; weighing risks; Behnam won't finalize ban on political contracts before Trump
Isis Almeida, Lydia Beyoud, and Katherine Doherty - Bloomberg
The top US derivatives regulator is still assessing the risks of clearing US Treasuries abroad, an outcome that could impact plans by Cantor Fitzgerald LP Chief Howard Lutnick to compete with CME Group Inc. The Commodity Futures Trading Commission continues to work with the Treasury Department on the assessment, Rostin Behnam, the agency's chairman, said. His comments follow a letter sent by Democratic Senator Dick Durbin of Illinois - CME's home state - warning the agency of possible risks to the stability of the US sovereign-debt markets should US Treasury futures be cleared in foreign jurisdictions.
/jlne.ws/40QMC7x
Trump picks Wall Street investor Howard Lutnick as Commerce Secretary
Maria Aspan, Scott Horsley - NPR
President-elect Donald Trump picked Howard Lutnick, a billionaire investor and veteran Wall Street CEO, as his next Commerce Secretary. Trump, in a statement on Tuesday, also said Lutnick would "lead our Tariff and Trade agenda, with additional direct responsibility for the Office of the United States Trade Representative." At Commerce, he will be responsible for enforcing the sweeping tariffs that Trump campaigned on - and for which Lutnick has expressed fervent, public support. Lutnick, who rebuilt the investment bank Cantor Fitzgerald after the Sept. 11 attacks that killed almost 700 employees, had been little known outside of Wall Street. But he rocketed to prominence - and power - this fall, after Trump named him co-chair of his transition team in August.
/jlne.ws/4fQJY5K
***** Here is Bloomberg's version of the story.
Citadel's Ken Griffin Says Multistrategy Hedge Fund Boom Is Over; Trump's win reignited animal spirits in America, says Griffin; Billionaire says money deployed in US basis trade has fallen
Nishant Kumar - Bloomberg
The era of explosive growth in multistrategy hedge funds is over, according to billionaire Ken Griffin, who runs one of the biggest such firms. "That chapter has come and gone," the Citadel founder said in an interview with Bloomberg News in Oxford, UK. "The AUM flows into multistrategy funds are basically a push today." These funds have gobbled up cash in recent years by delivering mostly steady gains even during periods of market volatility, driven by a broad variety of investing approaches in their trading teams. Their ability to charge higher fees, spend big to recruit the best traders and fuel their positions with borrowed money have made them the most influential force in the $4.5 trillion hedge fund industry.
/jlne.ws/3YWaBzA
Citadel Securities aims to become big player in Eurozone bond trading; Ken Griffin's high-speed trading firm builds team in Paris and will start trading German Bunds
Robin Wigglesworth in Oslo and Ian Smith in London - Financial Times
Citadel Securities is aiming to become a "material" player in Eurozone government bond trading by next year after building a team of traders in Paris and securing valuable access to German debt auctions. The Miami-based high-speed trading firm founded by billionaire Ken Griffin is already a major participant in the US Treasury market and is now targeting a similarly prominent role in Europe. In September, Germany added Citadel Securities to the list of companies that were allowed to buy the country's debt directly at its regular auctions - a move widely viewed as an implicit blessing that the market maker plans to use as a beachhead to expand its presence, according to senior executives at the firm.
/jlne.ws/4fYga7E
Corporate Shakeups Light Up Tokyo Bourse on Down Day for Stocks; Seven & i, Tokyo Gas and Kobayashi Pharma shares all advance; Reforms by bourse operator have breathed new life into market
Alice French and Yasutaka Tamura - Bloomberg
Deal makers and activist investors injected drama into the Japanese equity market on Wednesday, triggering sharp rallies in shares of Seven & i Holdings Co., Tokyo Gas Co. and Kobayashi Pharmaceutical Co. The gains, which came in the face of losses in the benchmark Topix, underscore just how frenetic trading has become on the Tokyo bourse this year. Within a month of setting a record high in July, the Topix tumbled into a bear market, then quickly bounced back 20% as local and global buyers returned in force.
/jlne.ws/4eBtNs5
Trump's Treasury Search Gains Steam With Fresh Round of Meetings; Marc Rowan, Kevin Warsh slated to speak with Trump separately; President-elect expanded search after frustration with drama
Saleha Mohsin, Nancy Cook, and Annmarie Hordern - Bloomberg
President-elect Donald Trump's dramatic search for a Treasury secretary continues as he's scheduled to hold interviews Wednesday with former Federal Reserve Governor Kevin Warsh and Apollo Global Management Inc.'s Marc Rowan, according to people familiar with the matter. US Senator Bill Hagerty, a Tennessee Republican and also a potential contender for a cabinet-level position, spent much of Tuesday with Trump, flying aboard the president-elect's plane to a SpaceX rocket launch in Texas.
/jlne.ws/3UUQwZ1
Klarna's US listing is a sad reflection of Europe's failings; Until there is a single market in areas from services to capital markets, more companies will choose American exchanges
Richard Milne - Financial Times (opinion)
Klarna should be the kind of story Europe dreams of. A continent without a contender to rival Google, Facebook or Apple has had a rare tech triumph with the Swedish buy now, pay later loan pioneer. The back story of co-founder and chief executive Sebastian Siemiatkowski also speaks to the strengths of, if not Europe, then Sweden. Born in the country to immigrant parents who struggled after they arrived from Poland, Siemiatkowski now runs a company eyeing a big public market debut. The only problem is that when Klarna lists, it won't be on a European stock market. It will be in the US, where its main shareholder, a venture capital fund, is headquartered.
/jlne.ws/3V0fUNe
Usage of multi-dealer platforms expected to increase as FX traders seek best execution; New Coalition Greenwich survey found that over the next year, 34% of respondents intend to increase their use of multi-dealer platforms (MDPs), while only 5% thought there would be a reduction.
Wesley Bray - The Trade
With ever-increasing expectations to achieve best execution, the buy-side has highlighted multi-dealer platforms (MDPs) as a means to achieving this goal. A new report from Coalition Greenwich found that buy-side comments with respect to MDPs reflect that the ability to access dealer quotes while keeping them in competition, helps optimise trading.
/jlne.ws/3B2LJ0W
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Ukraine says Russia's unstoppable hypersonic missiles had another bad night
Jake Epstein - Business Insider
The Ukrainian military said it destroyed nearly all of the hypersonic missiles Russia launched as part of a massive bombardment over the weekend. Ukraine said that Russia fired eight Kh-47M2 Kinzhal missiles and one 3M22 Zirkon missile as part of a barrage that started on Saturday night and consisted of 210 missiles and drones of various types. Kyiv's air force said its defenders shot down over 140 munitions that were part of the attack, including seven of the Kinzhals and the lone Zirkon.
/jlne.ws/3OgvMr6
EU warns China of 'consequences' if it's found to be making armed drones for Russia
South China Morning Post
European Union foreign ministers have warned China that there will be "consequences" if it is proven to be producing military-grade drones to be used in Russia's war on Ukraine. Top diplomats from the bloc's 27 members are discussing on Monday evidence from intelligence sources showing that armed drones are being produced for the Russian military in China's far western Xinjiang region. Several diplomatic sources described the intelligence as "conclusive", "convincing" and "credible" on Friday.
/jlne.ws/3CuwNJp
Russia's War Against Ukraine Enters a Dangerous New Chapter; Ukraine launches first attack on Russian soil with US missiles; Putin broadens guidelines on potential use of nuclear weapons
Alan Crawford - Bloomberg
Vladimir Putin's war on Ukraine is escalating after months of bloody attrition. As the conflict entered its 1,000th day, Ukraine took advantage of its newly granted long-range missile capabilities to strike a military base on Russian territory. Moscow, which has warned against such action, stepped up its threat of a nuclear response to conventional attacks. The twin developments early on Tuesday rattled investors who have long tuned out of the war's daily grind, prompting a rush into haven assets. In reality, the recent arrival of North Korean troops to support Russian forces on the battlefield had already upped the ante.
/jlne.ws/3CCudRK
US Will Provide Land Mines to Ukraine After Approval on Missiles; Biden's decision comes after a missile strike inside Russia; Mines will become inert after a period of time, official says
Jenny Leonard - Bloomberg
The US will provide Ukraine with antipersonnel land mines to blunt the advance of Russian troops, an official familiar with the decision said, the latest effort by the Biden administration to bolster support for Kyiv ahead of President-elect Donald Trump's inauguration. The mines the US will send to Ukraine are "non-persistent," becoming inert after a pre-set period that can last from a few hours to two weeks, according to the person, who was granted anonymity to discuss the policy.
/jlne.ws/4i0DUd5
US and European embassies in Kyiv shut over threat of 'significant' Russian attack
Isobel Koshiw and Christopher Miller in Kyiv - Financial Times
The US and several European embassies in Kyiv have temporarily closed their doors after Washington received intelligence that Russia is planning a large-scale attack on the Ukrainian capital. In a rare warning, the US embassy said it "received specific information of a potential significant air attack on November 20", prompting it to shut on Wednesday and advising its staff to "shelter in place". The embassies of Italy and Greece followed suit and also closed for the day. The Spanish embassy told all its staff to work from home on Wednesday.
/jlne.ws/490fb4r
Trump's Churchillian Option for Peace in Ukraine; Defeating Russia is in the interests of America. A weak agreement would mean more war worldwide.
Margus Tsahkna - The Wall Street Journal
/jlne.ws/4hQv6GB
Russia Intensifies Assaults on an Exhausted Ukraine; Overextended Ukrainian forces lack manpower and artillery against Russian forces willing to absorb staggering casualties.
Marc Santora - The New York Times
/jlne.ws/4eIJFJk
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Netanyahu, in Gaza, says Hamas will no longer rule enclave
Reuters
Israeli Prime Minister Benjamin Netanyahu said during a visit to Gaza on Tuesday that Hamas would not rule the Palestinian enclave after the war had ended and that Israel had destroyed the Islamist group's military capabilities. Netanyahu also said Israel had not given up trying to locate the 101 remaining hostages believed to be still in the enclave and he offered a $5 million reward for the return of each one.
/jlne.ws/3Zq44yJ
Netanyahu Offers a $5 Million Reward for Each Hostage Returned
Alisa Odenheimer - Bloomberg
Israel will pay $5 million to any Gaza resident who returns a hostage plus safe passage out of the war-ravaged territory, Prime Minister Benjamin Netanyahu said on Tuesday. "To those who want to leave this entanglement I say: Whoever brings us a hostage will find a safe way out for himself and his family," the prime minister said. "We will also give $5 million for every hostage. Choose. The choice is yours, but the result will be the same. We will bring them all back."
/jlne.ws/40QIynK
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | AFX Completes Migration of Trading Platform Technology with Transaction Network Services (TNS)
AFX
The American Financial Exchange (AFX), a self-regulated exchange that provides banks and financial institutions a marketplace for overnight unsecured interbank lending and borrowing, announced today that it has partnered with Transaction Network Services (TNS), a global leader in providing mission-critical infrastructure for financial markets. As a result of this partnership, TNS will provide full management and hosting services for AFX's data center to support its marketplace and membership community consisting of more than 250 banks and financial institutions across the U.S.
/jlne.ws/3V3DTv4
The 26th Latibex Forum ends after 250 meetings between 40 companies and 60 investors
BME-X
The 26th edition of the Latibex Forum ended today at the Palacio de la Bolsa de Madrid. During the two-day event, 250 meetings were held between more than 40 companies from Latin America and Spain and 60 investors, 33% of which were international (most of them from Great Britain, France and Switzerland). In total, the event was attended by more than 400 people.
/jlne.ws/3ASQr1o
BME highlights the role of the stock exchange in channelling investments to and from Latin America at the 26th Latibex Forum
BME-X
The first day of the Latibex 2024 Forum held at the Palacio de la Bolsa de Madrid has come to an end, in which the growing investment of Latin American companies in Spain and the role of the financial markets in channelling this investment has been one of the main themes. On the one hand, one-on-one meetings were held between companies and investors. At the same time, throughout the day, the agenda of panels on current economic issues in the region was developed.
/jlne.ws/4fxq7sT
CME Group and LPGA Sign Two-Year Extension of CME Group Tour Championship with Largest Single Prize in Women's Golf
CME Group
The Ladies Professional Golf Association (LPGA) and CME Group, the world's leading derivatives marketplace, today announced an extension of the CME Group Tour Championship and the season-long Race to the CME Globe through 2027. Since assuming title sponsorship of the LPGA Tour's season-ending tournament in 2011, CME Group has consistently grown its support, becoming one of the world's most prominent sponsors of women's sports.
/jlne.ws/48YsWjX
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | French tech mogul Xavier Niel warns that Europe will be reduced to an 'abandoned' continent if it misses this crucial opportunity
Prarthana Prakash - Fortune
If there's anything buzzy in the tech world, chances are Xavier Niel has caught wind of it. The hacker turned entrepreneur owns a sprawling telecom empire, sits on TikTok parent ByteDance's five-member board, and is a major startup champion, counting French darling Mistral AI among his investments. The billionaire has had a keen eye on tech developments throughout his career. But he has also witnessed Europe slip behind the U.S. and China in innovation.
/jlne.ws/4fx0Mz2
Northern Trust Launches Enhanced Collateral Management Solution Delivered in Collaboration with CloudMargin
Northern Trust
Northern Trust (Nasdaq: NTRS) has launched an enhanced active collateral solution designed to help institutional investors manage their collateral more efficiently while meeting the demands of continual market change. The capability, delivered in collaboration with CloudMargin, a leading global collateral management technology company, will provide enhanced service capabilities, increased transparency on a real-time basis and platform resiliency. This includes automated asset selection based on flexible hierarchies, support of complex eligibility rules, access to real-time data through client portals, report write capabilities, and full end-to-end automation.
/jlne.ws/3AFx9N1
Microsoft Signs AI-Learning Deal With News Corp.'s HarperCollins; Nonfiction books will be used for training AI models; AI companies and publishers have butted heads in lawsuits
Hannah Miller and Dina Bass - Bloomberg
Microsoft Corp. reached a deal with News Corp.'s HarperCollins that will allow the software company to use nonfiction titles from the book publisher to train its artificial intelligence models, according to a person familiar with the matter. Microsoft wants the HarperCollins books for a model that it hasn't yet announced, according to the person, who asked not to be identified discussing plans that aren't public. The company isn't planning to use the content to generate new books without human authors, the person said. Microsoft declined to comment.
/jlne.ws/3CLvANW
AI's Slowdown Is Everyone Else's Opportunity; Businesses will benefit from some much-needed breathing space to figure out how to deliver that all-important return on investment.
Parmy Olson - Bloomberg
The multi-trillion-dollar artificial intelligence boom was built on certainty that generative models would keep getting exponentially better. Spoiler alert: they aren't. In simple terms, "scaling laws" said that if you threw more data and computing power at an AI model, its capabilities would continuously grow. But a recent flurry of press reports suggests that's no longer the case, and AI's leading developers are finding their models aren't improving as dramatically as they used to.
/jlne.ws/48WqRFa
Are the robots finally coming? Advances in physical AI mean machines are learning skills previously thought impossible
Michael Peel, Lucy Rodgers, Irene de la Torre Arenas, Sam Learner, Justine Williams and Ian Bott - Financial Times
"This is not science fiction," declared Jensen Huang, boss of chip giant Nvidia, in June, referring to the use of AI to instruct robots to carry out real world tasks. "The next wave of AI is physical AI. AI that understands the laws of physics, AI that can work among us." In many ways this robotics revolution seems long overdue. For decades, people have envisioned living alongside humanoid domestic droids capable of doing their mundane chores.
/jlne.ws/40Xdi6y
Nvidia Traders Brace for Potential $300 Billion Earnings Move; Options-implied move for Nvidia after earnings is about 8%; Quarter is complicated by uncertain timing of Blackwell chips
Jeran Wittenstein and Ryan Vlastelica - Bloomberg
With Nvidia Corp. due to report an unusually complex quarter as the world's most valuable company, traders are preparing for a potentially mammoth stock swing. The options-implied move for Nvidia shares the day after earnings is about 8% in either direction, according to data compiled by Bloomberg. That would equate to close to a $300 billion swing in market value bigger than all but 25 companies in the S&P 500 Index. And according to strategists at Bank of America, the report carries more risk for the benchmark than the next Federal Reserve meeting or inflation data.
/jlne.ws/4fMZVdo
Nvidia Partner Hon Hai Gets $1.1 Billion Bank Loan Amid AI Boom
Apple Ka Ying Li - Bloomberg
/jlne.ws/4fQhI3X
It Isn't Just Data Centers-AI's Plumbing Needs an Upgrade; Greater usage of artificial-intelligence chatbots and agents will stress the country's existing network capacity
Belle Lin - The Wall Street Journal
/jlne.ws/3ZfBkbE
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| Cybersecurity | | Top stories for cybersecurity | Slot Machine Operator International Game Reports Hacker Incident
Rob Golum - Bloomberg
International Game Technology Plc, operator of popular slot machines in casinos, said an unauthorized third party gained access to certain of its systems. The company has experienced disruptions in portions of its internal information technology systems and applications resulting from the incident, according to a filing Tuesday. International Game activated its cybersecurity incident response plan and launched an investigation with the support of external adviser. The company also took certain systems offline. Management hasn't yet determined whether this incident is material.
/jlne.ws/3UZuW5Q
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| Cryptocurrencies | | Top stories for cryptocurrencies | Bitcoin Sets Another Record Amid US's Growing Embrace of Crypto; Potential Trump Media crypto deal bolsters sentiment; Nasdaq lists options on the world's largest Bitcoin fund
Sunil Jagtiani - Bloomberg
Bitcoin set another all-time high, supported by a series of developments highlighting the deepening embrace of the digital-asset industry in the US under crypto cheerleader Donald Trump. At the top of the tape was the revelation that the president-elect's Trump Media & Technology Group Corp. is in talks to buy digital-asset marketplace Bakkt Holdings Inc., which sparked a surge in the shares of both companies. Other developments included Nasdaq Inc.'s listing of options on the $43 billion iShares Bitcoin Trust for the first time and Goldman Sachs Group Inc.'s push to spin out its digital-asset platform, signs of how crypto and its underlying blockchain technology are burrowing deeper into the financial system.
/jlne.ws/48XyY4q
Bitcoin ETF Options Will Lower Volatility, Galaxy's Thorn Says; Nasdaq began offering options for iShares Bitcoin Trust; Largest cryptocurrency has more than doubled in value in 2024
Sonali Basak and Monique Mulima - Bloomberg
The availability of options on the sector leading $43 billion iShares Bitcoin Trust is likely to reduce volatility and increase the investor base for the original cryptocurrency, according to Galaxy Digital's Alex Thorn. "Over time as it's more widely held, volatility will decrease, options will help dampen volatility and and as volatility comes down people can take larger position sizes," Thorn, head of firmwide research, said Tuesday during an interview on Bloomberg Television.
/jlne.ws/3OiFPMd
Asia Crypto Hotspots Gain From $800 Billion Rally Led by US; Bhutan's Bitcoin holdings are now equivalent to 36% of GDP; South Korean crypto exchanges see a jump in market share
Suvashree Ghosh and Ryan Weeks - Bloomberg
A record-breaking crypto rally born in the US is leaving its mark on Asia, including a jump in the value of Bitcoin held by Bhutan to more than $1 billion and a surge in digital-asset trading volumes in South Korea. The crypto market by some estimates has climbed over $800 billion since Donald Trump's victory in the US election on Nov. 5, on hopes that his pledge to turn the US into the global hub for the sector will spur a digital-asset boom.
/jlne.ws/3UZgScH
Bitcoin Rises to Record With MicroStrategy Stepping Up Purchases
Suvashree Ghosh and Emily Nicolle - Bloomberg
Bitcoin climbed to a record high for a second consecutive day, with MicroStrategy Inc. accelerating the pace of its massive purchases of the cryptocurrency. The largest publicly traded corporate holder of Bitcoin announced Wednesday that it was increasing the amount of convertible senior notes it plans to sell to fund additional purchases of the token by almost 50% to $2.6 billion. MicroStrategy, which announced earlier this week that it bought $4.6 billion of the token, owns more than $30 billion.
/jlne.ws/4fAcI3b
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| Politics | | An overview of politics as it relates to the financial markets | History's Sobering Warning About America's Future; On this week's Voternomics, author Peter Turchin explains why Donald Trump's return isn't a surprise, and what it represents.
Sommer Saadi and Stephanie Flanders - Bloomberg
On our final episode of Voternomics, Peter Turchin, author of End Times: Elites, Counter-Elites and the Path of Political Disintegration, joins Bloomberg head of government and economics coverage Stephanie Flanders, The Readout newsletter's Allegra Stratton and Bloomberg Opinion columnist Adrian Wooldridge with some sobering predictions for America's future. Turchin offers a historical overview of Donald Trump's return to the White House, arguing that the 2024 election is part of a cycle of integrating and disintegrating forces within societies that's usually repeated over time. Indeed, he used his models to predict the current US instability back in 2010. Turchin says that, in winning the election, Trump assembled "a very diverse group of counter-elites," and that "structural forces" will continue to drive and expand that coalition. He also warns that, of similar historical events he's studied, the majority ended in revolutions or civil wars or both.
/jlne.ws/4fYXLHL
Biden Climate Czar: Abandoning Green Transition Is 'Economic Malpractice'; "I think of the Inflation Reduction Act, the Bipartisan Infrastructure Law, as the booster packs on a rocket," White House National Climate Advisor Ali Zaidi says on this week's episode of Zero. "But the rocket is the private sector."
Akshat Rathi and Mythili Rao - Bloomberg
When reporter Akshat Rathi sat down with White House National Climate Advisor Ali Zaidi in 2022, the Biden administration was celebrating the passage of the Inflation Reduction Act, a landmark piece of green legislation. "We're running faster and faster," Zaidi said. Speaking once again to the Zero podcast just a week after the 2024 US election, Zaidi and Rathi discussed whether the momentum created by the IRA could be sustained in the second term of Donald Trump, who has vowed to undo many of Biden's signature policies.
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Trump to Nominate Linda McMahon to Lead Education Department; The co-founder of World Wrestling Entertainment also briefly served on the Connecticut State Board of Education
Sara Randazzo and Matt Barnum - The Wall Street Journal
Donald Trump said he would nominate World Wrestling Entertainment co-founder Linda McMahon to lead the Education Department that he has vowed to dismantle. "We will send Education BACK TO THE STATES, and Linda will spearhead that effort," Trump said Tuesday evening. The selection of McMahon as education secretary came hours after Trump picked Howard Lutnick for commerce secretary, a job for which McMahon had been a leading contender.
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Marc Rowan emerges as a top contender to be Donald Trump's Treasury secretary; Private equity billionaire is considering job and is set to meet president-elect on Wednesday
James Fontanella-Khan and Antoine Gara in New York, Alex Rogers in Palm Beach, Colby Smith in Washington and Arash Massoudi in London - Financial Times
Private equity billionaire Marc Rowan has emerged as a top contender to be Donald Trump's Treasury secretary and will meet the president-elect on Wednesday to make his pitch for the job, according to several people familiar with the matter.
/jlne.ws/3CC1iNK
Germany finds itself in a predicament of its own making; While it loses sympathy abroad, the country faces political uncertainty at home
Constanze Stelzenmuller - Financial Times (opinion)
The writer directs the Center on the US and Europe at the Brookings Institution.
Even when Germany holds highly unusual snap elections, some of its political laws seem etched in stone. Incumbent Chancellor Olaf Scholz faces a bubbling groundswell of revolt in his SPD, where some want him to step aside for defence minister Boris Pistorius, the country's most popular politician. Both men were born in the town of Osnabrück; both have law degrees. In 2020, the three men competing to succeed Angela Merkel as the next conservative chancellor were all from the same state and had all gone to the same law school. One of them, opposition leader Friedrich Merz, could become the country's leader next year.
/jlne.ws/493qCrZ
What's Russia's Nuclear Doctrine and How Did Putin Change It?
Laurence Arnold and Ramsey Al-Rikabi - Bloomberg
A distinctive feature of Russia's military tactics has been that it doesn't rule out using nuclear weapons in a conventional war. Now, President Vladimir Putin has lowered the bar further for deploying tactical and more powerful strategic atomic weapons, in a broad overhaul of his country's nuclear doctrine. The shift comes just as the US eased restrictions on Ukrainian forces firing American weapons into Russian territory. Irrespective of whether Putin is really prepared to go nuclear, the threat is intended to show the world that Russia remains a major power and that Washington and its allies should limit their support for Ukraine. It's the main reason why they have only slowly allowed Kyiv to use more powerful weapons, and avoided sending troops to help it repel Russia's invasion.
/jlne.ws/3OiP8Mj
The Clandestine Oil Shipping Hub Funneling Iranian Crude to China; Tankers Titan and Win Win off the coast of Malaysia on Oct. 4. Videographer: Joshua Paul/Bloomberg
Serene Cheong, Clara Ferreira Marques, Weilun Soon, Krishna Karra, Yasufumi Saito - Bloomberg
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China's Surging LNG Imports From US Threatened by Next Trade War; Chinese buyers to take 14 million tons starting from 2026; American gas exports to China halted for much of 2019
Bloomberg News
/jlne.ws/40PE3tD
President Xi Navigates China Through a Chaotic World
Philip Glamann - Bloomberg
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Rio Chaos Shows World Untethered Even Before Trump's Return; Logistical problems, diplomatic breaches plague G-20 summit; Brazil meeting shows guardrails coming off rules-based order
Alberto Nardelli, Michael Nienaber, and Samy Adghirni - Bloomberg
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| Regulation & Enforcement | | Stories about regulation and the law. | Regulator Sounds Alarm Over South Africa's $288 Million Pension Contribution Arrears; Employers' unpaid pension contributions stand at $288 million; If they rise further, it may destabilize retirement ecosystem
Adelaide Changole - Bloomberg
The failure by South African employers to pay 5.2 billion rand ($288 million) in pension contributions could leave retirees facing poverty and destabilize the retirement ecosystem if it reaches a significant amount, the head of the financial regulator said. Currently 7,770 employers have failed to make pension contributions deducted from workers' salaries, including almost 150 local governments, whose arrears are estimated at about 1.4 billion rand, Unathi Kamlana, commissioner at the Financial Sector Conduct Authority, said in a speech Tuesday.
/jlne.ws/3Ogf1MD
Embattled FDIC Chair to Leave Agency on Eve of Inauguration; Gruenberg was a key backer of stiffer bank-capital rules; Chair already planned to depart after toxic-workplace scandal
Katanga Johnson - Bloomberg
Federal Deposit Insurance Corp. Chairman Martin Gruenberg will step down on Jan. 19, ending a career at an agency that struggled with last year's banking turmoil and then a toxic workplace scandal. "It has been the greatest honor of my career to serve at the FDIC," Gruenberg said in a message Tuesday to agency employees. "I have especially valued the privilege of working with the dedicated public servants who carry out the critically important mission of this agency."
/jlne.ws/4ezK0xT
Swiss prosecutors accuse Trafigura of paying EUR5mn in bribes to Angolan official; Unsealed indictment alleges the company's late founder, Claude Dauphin, masterminded the scheme
Sam Jones in Berlin and Leslie Hook in London - Financial Times
Trafigura paid nearly EUR5mn in bribes to an Angolan official through an intermediary who was dubbed "Mr Non-Compliant" by the commodity trader's founder, Claude Dauphin, Swiss prosecutors have alleged. The Swiss indictment accuses Trafigura Beheer BV, the former parent company of Trafigura Group, of failing to prevent acts of serious corruption between 2009 and 2011. It also accuses Trafigura's former chief operating officer, Mike Wainwright, who retired earlier this year, of bribery. The Swiss federal prosecutor announced the charges against Wainwright and Trafigura Beheer BV last year, but details were withheld until now, as is customary in Swiss legal proceedings.
/jlne.ws/3YXK98D
SEC Charges Richmond Federal Reserve Banking Supervisor with Insider Trading
SEC
On November 8, 2024, the Securities and Exchange Commission filed insider trading charges against Robert Brian Thompson, a long-time banking supervisor and examiner at the Federal Reserve Bank of Richmond, for allegedly using material nonpublic information to trade in stock and options of two publicly traded banks that were under his supervisory purview.
/jlne.ws/3CCVK5y
SEC Charges CEO with Misappropriation of $2.2 Million and $6 Million of Illegal Stock Sales
SEC
The Securities and Exchange Commission announced today it filed charges against Frank Igwealor of Playa del Rey, California, the CEO of several microcap issuers, for engaging in a scheme to misappropriate $2.2 million from a microcap company he controlled to purchase a home, and illegally selling millions of shares of three other microcap issuers he controlled for a profit of approximately $6 million.
/jlne.ws/4eD0aXy
SEC Charges NY Man Claiming to be a Billionaire with Offering Fraud
SEC
The Securities and Exchange Commission today announced it charged Ian Mitchell, a resident of Queens, New York, with defrauding investors in an offering fraud scheme. Mitchell agreed to settle the SEC's charges.
/jlne.ws/3YV1sHv
End-to-end accountability: Remarks to Association of Superannuation Funds of Australia Conference 2024
ASIC
Remarks by ASIC Commissioner Simone Constant at Association of Superannuation Funds of Australia Conference 2024 in Sydney on 20 November 2024.
/jlne.ws/4fVRhJo
Former public company director Harry Hatch sentenced for failing to disclose interests and providing false information to the ASX
ASIC
Former public company director, Harry Hatch (Hatgikyriazis), of North Melbourne, Victoria, has been convicted and sentenced for failing to disclose the total number of Copper Strike Limited shares he held, contrary to the Corporations Act 2001. Mr Hatch was sentenced to six months imprisonment to be released immediately after paying a $2,000 fine on the condition that he be of good behaviour for 12 months.
/jlne.ws/3YPWFXO
SFC suspends Wang Shian-tang for 26 months
SFC
The Securities and Futures Commission (SFC) has suspended the licence of Mr Wang Shian-tang, a former licensed representative of Yuanta Securities (Hong Kong) Limited (Yuanta) for 26 months from 20 November 2024 to 19 January 2027 (Note 1).
/jlne.ws/3Z1hLT4
New speech: Julia Leung's welcoming remarks at "Conversations with Global Investors" investment forum
SFC
A welcoming speech delivered by Ms Julia Leung, Chief Executive Officer of the Securities and Futures Commission (SFC), at the "Conversations with Global Investors" investment forum of the 2024 Global Financial Leaders' Investment Summit was posted on the SFC website.
/jlne.ws/3UYKDKB
Conclusion of "Conversations with Global Investors" Seminar of Global Financial Leaders' Investment Summit
SFC
The "Conversations with Global Investors" forum marked the successful conclusion of the three-day Global Financial Leaders' Investment Summit (Summit) in Hong Kong today (20 November). About 280 overseas and local leaders from across the financial industry, businesses and public sector attended the forum, which was jointly organised by the Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC) and the Hong Kong Academy of Finance (AoF).
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | The doomsday that wasn't; VIXplaining the events of August 5
Alexandra Scaggs - Financial Times
One fun thing about the VIX - called the "fear gauge" because it puts a price on expectations for future stock-market volatility - is that it has pretty deep lore. For example, the army of young daytraders who first logged on in 2020 might not know much about 2018's Volmageddon, when an implosion in retail-focused volatility products and swings in the S&P 500 options that determine VIX levels helped exacerbate declines in the large-cap index itself. It also may not be obvious that it's a mathematically iffy business to talk about its moves in percentages, because it's basically a standard deviation, or a percentage itself.
/jlne.ws/3Om7H1W
B&M Is Worst FTSE 100 Stock This Year as Trading-Down Hopes Fade; Discounter undeperforms Tesco in trend also seen in US retail; Middle class stick with favored brands as they feel pinch less
Joe Easton - Bloomberg
B&M European Value Retail SA shares fell for a fourth straight day, making the stock the worst performer in the FTSE 100 Index this year amid fading hopes that discount stores can grab market share during the economic downturn. The UK-listed company has shed 15% of its market value - almost £600 million ($760 million) - in the days that followed it reporting a drop in like-for-like sales on Nov. 14. The shares are now down 37% in 2024 and sit at a two-year low.
/jlne.ws/48XQ0iQ
Palantir becomes a 'Trump trade' as investors bet on higher defence spending; Peter Thiel-founded data company, whose biggest client is the US government, rises $23bn in value since election
Tabby Kinder - Financial Times
Palantir has added more than $23bn to its market capitalisation since Donald Trump was elected US president this month, as investors bet the secretive government contractor will be among the biggest winners of enhanced federal spending on national security, immigration and space exploration. The latest stock rise adds to a blistering rally for Palantir in the past year, with its shares up having almost tripled to $61 per share, giving the company a value of almost $140bn.
/jlne.ws/492RzfE
The enriched uranium market is all at sea; Russia's retaliatory restrictions on exports to the US have yet to hit prices
George Steer - Financial Times
The Atlantic Action II is stuck in limbo far from the ocean after which it was named. Five days after Russia imposed tit-for-tat restrictions on exports of enriched uranium to the US, the 14-year old vessel remains anchored outside the port of Saint Petersburg, its crew presumably unsure whether the radioactive cargo they were due to collect for a US-based client can still be shipped. Moscow's new measures, announced on Friday, come with caveats. Just as US import restrictions introduced in May still allow companies to seek waivers allowing uranium shipments when they can't obtain supplies elsewhere, so the Russians "didn't say they're outright ending all deliveries to the US," says Jonathan Hinze, president of UxC, a consultancy specialising in the nuclear industry.
/jlne.ws/3YRXkYK
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | How oil 'wildcatters' ended up in charge of Donald Trump's energy policy; Shale barons are jubilant about the Republican's plan for US 'energy dominance'. Climate campaigners are not
Myles McCormick and Jamie Smyth - Financial Times
As Donald Trump sat in his Mar-a-Lago resort on election night, two of US oil's most influential men were just feet away, toasting his victory: North Dakota governor Doug Burgum and shale magnate Harold Hamm. They had been stalwarts on the Republican's campaign for months: Burgum, who had briefly made his own bid for the White House, stumping for Trump at rallies, and Hamm offering advice on energy - and money.
/jlne.ws/48XGkFc
Trump Promises Clean Water. Will He Clean Up 'Forever Chemicals'?; Public health advocates worry that Donald Trump could unravel federal clean water efforts, including restrictions on lead pipes and chemicals known as PFAS.
Hiroko Tabuchi - The New York Times
These chemicals are in the tap water of the majority of Americans, and the Trump administration could decide their fate. No, not fluoride, the cavity-fighter that Robert F. Kennedy Jr., President-elect Donald J. Trump's health secretary pick, wants out of public drinking water. Rather, they're harmful "forever chemicals," also known as per- and polyfluoroalkyl substances or PFAS.
/jlne.ws/492QR1Y
'A little dirty': inside the secret world of McKinsey, the firm hooked on fossil fuels; Interviews and analysis of court documents show how the world's most prestigious consulting firm quietly helps fuel the climate crisis
Ben Stockton and Hajar Meddah - The Guardian
Two giant, mirrored walls are set to rise out of the sands of the Arabian desert. They will run parallel for more than 100 miles from the coast of the Red Sea through arid valleys and craggy mountains. Between them, a futuristic city which has no need for cars or roads will be powered completely by renewable energy.
/jlne.ws/3ZfF792
COP29: Negotiations Are a Game of Chicken on Food Day
Jennifer A. Dlouhy - Bloomberg
It was Food, Agriculture and Water Day at COP29 on Tuesday, so perhaps it's appropriate that the biggest deliberations feature a game of chicken. The standoff is deepening over the marquee negotiating track: how to boost an expiring $100 billion annual climate finance commitment. Neither side is willing to concede yet, and feathers are starting to get ruffled.
/jlne.ws/40V3qdC
Equinor CFO Sees Tight European Gas Market Going Into Winter; Ukraine transit, Asia LNG demand will influence Europe prices; Company expects US LNG moratorium to be lifted under Trump
Guy Johnson and Kari Lundgren - Bloomberg
Equinor ASA sees a tight European natural gas market going into winter, said Chief Financial Officer Torgrim Reitan. The fragile balance between supply and demand of the fuel means external factors will have significant sway over the continent's market, Reitan said in an interview on Bloomberg TV on Wednesday. The question of whether transit of Russian gas through Ukraine will continue next year will have an impact on European prices, even though it only affects a small portion of the region's overall supply, Reitan said. The strength of demand for liquefied natural gas in Asia, particularly China, could also set the price paid in Europe, he said.
/jlne.ws/4eAh3lr
More Trees Won't Cancel Out Your SUV Emissions; A new paper suggests we're misunderstanding the science of net zero.
Lara Williams - Bloomberg
As far as climate buzzwords go, "Net Zero" has probably become the most weaponized term. It may also be the most misunderstood. Lots of people recognize that reaching net zero carbon emissions is key to meeting the temperature goals of the Paris Agreement. But how many of us have an accurate understanding of what that means? A group of scientists who developed the science behind net zero 15 years ago have authored a new study, published in Nature, warning that our heavy reliance on natural carbon sinks to offset fossil-fuel emissions is a misunderstanding of the original idea. A course correction is more important than ever, particularly as developments at the 29th United Nations climate change conference, also known as COP29, will likely further incentivize the equivalence between fossil-fuel emissions and natural drawdown.
/jlne.ws/4fyORk9
G20 failure to explicitly back fossil fuel transition upsets COP29 talks; Fears rise of stalemate on climate action in wake of Trump election victory
Attracta Mooney in Baku - Financial Times
The G20 failure to make a direct mention of the need to transition away from fossil fuels in its leaders' statement in Rio has escalated fears among key negotiators at the UN COP29 summit in Baku that Donald Trump's US election victory has put the brakes on climate action. Almost 200 countries agreed to transition away from fossil fuels in their energy systems by 2050 at last year's UN COP28 summit in Dubai, with the G7 group of major economies reiterating this pledge in their leaders communique earlier this year.
/jlne.ws/40Um6dg
Colorado River States Are Separated by a 'Giant Chasm' in Negotiations; After more than 100 years of complying with the legal requirement to send a certain amount of water to their downstream neighbors, Upper Basin states contend they should be allowed to send less.
Alex Hager - Inside Climate News
The seven states that rely on the Colorado River are deeply divided over how to manage the shrinking water supply in the future. In a meeting on Monday, Arizona's top water official outlined major differences between the states' ideas about how to cut back on water use. The states have been split into two camps for months, and do not appear closer to agreement than they did when they released competing water management proposals in March. They are under pressure to agree on a plan before 2026 when the current rules for sharing water expire.
/jlne.ws/48Z3omO
Financiers implore COP29 negotiators to agree 'bigger, better, bolder' climate finance target
edie
/jlne.ws/4eBWjtD
India's Coal Plants to Miss Pollution Goal as Smog Chokes Delhi; New Delhi air pollution is among the worst in the world; Sulfur dioxide from power plants is seen as major contributor
Rajesh Kumar Singh - Bloomberg
/jlne.ws/3Zb3ioV
Hungary Moves to Allow Russia to Hike Price of Nuclear Contract; Orban government signed EUR12.5 billion Rosatom deal in 2014; Paks nuclear plant expansion has faced delays over past decade
Zoltan Simon - Bloomberg
/jlne.ws/48XriiC
Canada imports US electricity as droughts curb hydropower; Move highlights climate risk to world's biggest source of renewable energy
Ilya Gridneff and Jamie Smyth - Financial Times
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Germany Raises Gas Storage Levy Amid Political Standstill; Storage fee will rise to EUR2.99 a megawatt-hour next year; Germany had planned to scrap fee after facing criticism
Eva Brendel - Bloomberg
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Barings Says Public, Private Asset-Based Credit Converging; Insurance demand becoming 'crucial' to ABF: Yulia Alekseeva; Non-agency CMBS seen as an 'interesting area of opportunity'
Scott Carpenter - Bloomberg
Barings LLC recently combined its public and private investing teams for asset-based finance, an organizational change it says will help it navigate the increasingly blurred lines between public and private credit markets. Formed in September, the $70 billion-plus platform consolidates Barings' corporate private placements and public and private commercial, consumer, and residential asset-based finance teams globally. As part of the revamp, the firm also named Yulia Alekseeva head of consumer ABS and CMBS. She was previously investment-grade portfolio manager and head of securitized credit research at the firm.
/jlne.ws/40X6J44
The second coming (and going) of EF Hutton; An interview with one half of the duo who underwrote Donald Trump's media Spac
George Steer - Financial Times
Everyone knows that the best way to stop a zombie is to destroy its brain. But EF Hutton, an undead US underwriter we wrote about two years ago, had two heads: chief executive Joseph Rallo and president David Boral. Rallo left the bank earlier this year, taking ZombiEF Hutton's once venerable name and trademark with him. He had been placed on voluntary administrative leave, having in May been served by the Attorney's Office for the Eastern District of New York with a search and seizure warrant linked to an ongoing investigation into alleged securities and wire fraud. Rallo has not been indicted or charged. In November, EF Hutton 2.0 rebranded as D. Boral Capital.
/jlne.ws/3ZcTdIb
Bridgewater opens strategy to retail investors through State Street ETF; Move by famously secretive hedge fund follows others in rushing to ink deals with big names in alternative assets
Brooke Masters - Financial Times
Bridgewater, one of the world's largest hedge funds, is joining forces with State Street's asset management arm to tap retail investors in the latest effort by money managers to look for new customers beyond their traditional strengths. The partnership announced on Tuesday will start with an exchange traded fund that will track one of Bridgewater's best-known strategies. State Street Global Advisors has filed plans with the US Securities and Exchange Commission for an "All-Weather" ETF, which seeks to profit in all types of market conditions by holding a wide range of assets.
/jlne.ws/4fCbBQm
Bridgewater + SSGA = ETF heaven; The 'original Coke' of risk parity is getting bottled up
Robin Wigglesworth - Financial Times
Bridgewater and State Street have just announced a "strategic relationship" to "widen access to core alternative investment strategies". What does this actually mean? Well, it means a risk parity ETF! Look at what just landed in the SEC's filing cabinet:
/jlne.ws/3V1OGWy
'Tiger Seed' Fund Sues Robertson's Firm to End Profit-Sharing; Hound Partners says Tiger has failed to refer enough clients; Tiger accuses Hound of reneging on 2004 seed investment deal
Chris Dolmetsch and Hema Parmar - Bloomberg
One of Julian Robertson's "Tiger seed" funds is suing to invalidate the 2004 investment deal by which the late hedge fund pioneer provided millions in startup capital in exchange for a share of future profits. In a lawsuit filed Monday in New York, Hound Partners accused Tiger Management of failing to live up to what it characterized as a marketing agreement. According to Hound, Tiger has already made more than $150 million on a $23 million investment, but its referral of new clients has fallen off dramatically in recent years. Hound, which managed $2.2 billion as of last December, is asking for a court order terminating the deal.
/jlne.ws/4fG7HWL
'FIRE' ETFs Catering to Retire-Early Strivers Make a Debut; Tidal offerings cater to community ignored by Street, CIO says; Acronym-based investing approach has poor record: Morningstar
Vildana Hajric - Bloomberg
It's a pipedream for many, but a trend that espouses making and saving enough money to quit a soulless day job and retire early has inspired a pair of new ETFs. Scan any TikTok or Instagram feed lately and you'll be awash with advice on how to achieve the goals of the Financial Independence Retire Early, or FIRE, movement. On Tuesday, Tidal Investments introduced the first ETFs - the FIRE Funds Wealth Builder ETF (ticker FIRS) and the FIRE Funds Income Target ETF (FIRI) - to directly cater to those looking to achieve that job-free lifestyle.
/jlne.ws/4eFwnNG
'Trump bump' makes Paul Taubman Wall Street's newest billionaire; Stock surge at boutique PJT Partners values Blackstone co-founder Stephen Schwarzman's stake at over $900mn
Sujeet Indap and James Fontanella-Khan - Financial Times
/jlne.ws/3ATqMpf
BlackRock and Amundi zero in on concentrated 'mega-cap' ETFs; Launches go against the flow of money going into strategies intended to protect investors from overconcentration
Theo Andrew - Financial Times
/jlne.ws/4eGGy4O
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | 'Work From Home Is Dying' - NYC Offices Nearly Full As Workers Return In Droves
Margaret Jackson - Benzinga
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. New data on office attendance suggest a shift in the remote work trend that surged during the pandemic. In-person work is gaining traction, particularly in major urban centers.
/jlne.ws/3ASxfRp
Rio Tinto Report Shows Bullying Remains Rife With Women Targeted; Survey shows little improvement in mining giant's culture; Under-reporting of sexual harassment, racism remains key issue
Sybilla Gross - Bloomberg
A new report by Rio Tinto Group showed 39% of workers surveyed by the world's second-biggest miner had experienced bullying within a 12-month period, up from 31% in 2021. Two years after Rio Tinto pledged to address toxic cultures that were deterring females and non-Whites from the mining industry, details from a survey of more than 10,000 employees have laid bare the challenges it still faces. The rates of sexual harassment and racism that respondents reported were unchanged from three years ago, affecting 7% of those surveyed from workers in nations including Australia, US, Canada, Mongolia and New Zealand.
/jlne.ws/4eDN4ZV
No degree, no problem: US employers look beyond college credentials; Companies such as IBM, GM and Walmart are focusing on applicants' skills rather than education
Claire Bushey in Chicago - Financial Times
Chanelle Washington-Bacon reproached herself for years because she had not finished college. Long after she entered corporate life, she was haunted by her lack of a four-year degree. But her feeling of inadequacy began to shift after the Atlanta project manager connected with OneTen, a coalition of top employers focused on developing the careers of black professionals and others without a college education.
/jlne.ws/4eDnlRh
Companies With Immigrant Workforces Are Preparing for Raids; "It's a lot of just trying to mitigate harm."
Julia Love - Bloomberg
One of the most difficult days of Stan Marek's 55 years in construction came in 2012, when US Immigration and Customs Enforcement audited his workforce. Some of the Social Security numbers Marek had on file didn't pass muster, suggesting that the employees weren't authorized to work. Marek was forced to fire men who'd been with him for more than 20 years. "They all had American-born kids. They all had houses," says Marek, chief executive officer of Houston-based Marek Brothers Co. "They had realized the American dream."
/jlne.ws/3V0loHO
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| Wellness Exchange | | An Exchange of Health and Wellness Information | How Kennedy Could Make It Harder for You and Your Family to Get Vaccinated
Michael T. Osterholm and Ezekiel J. Emanuel - The New York Times
Vaccines save lives and reduce health care costs. Those are facts. They have been critical public health tools for more than 200 years. Their hallmark achievement was against smallpox, a frequently disfiguring and often fatal disease that killed over 300 million people in the 20th century before a worldwide vaccination campaign eradicated it in 1980. Thanks to a vaccine, smallpox virus no longer exists outside the confines of a few secure laboratories. And there are many more success stories: polio, measles, mumps, rubella, chickenpox, diphtheria, yellow fever. Outbreaks of all of these diseases have been sharply reduced by vaccines.
/jlne.ws/3OiOZbJ
Deep in the Jungle, Virus Hunters Are Working to Stop the Next Pandemic; Five years after Covid-19, governments are relying on remote fever clinics supported by Abbott to spot future threats.
Riley Griffin - Bloomberg
Deep in the Amazon rainforest, where Colombia stretches down to touch Peru and Brazil, Hospital San Rafael is overwhelmed. It's a sweltering spring afternoon, and the rows of white plastic chairs inside the clinic are packed. They have been for days. Some patients are slumped in their seats, eyes closed, breathing slowly. Others, masks at their chins, yell after children running through the hallway. The humidity makes 90F feel well over 100. A few people are fanning themselves with medical records.
/jlne.ws/3V2Oc2l
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Alibaba's Stock Connect link shows Hong Kong's strength as conduit to mainland markets
South China Morning Post
Hong Kong's capital market is living up to its role as a "superconnector" between global fund managers and mainland China's financial markets, with Alibaba Group Holding's upgraded listing status benefiting investors on both sides of the playing field. Since joining the Stock Connect scheme on September 10, onshore investors have collected 4 per cent of the public float in the nation's biggest e-commerce platform operator, co-founder and chairman Joe Tsai said. They also contributed to 15 per cent of the stock's turnover in less than three months, he added.
/jlne.ws/3ZisJoQ
Saudi Wealth Fund a Tool to Silence Critics, Human Rights Watch Says
Matthew Martin - Bloomberg
Saudi Arabia's sovereign wealth fund - chaired by Crown Prince Mohammed Bin Salman - has become a key vehicle for the kingdom to silence international criticism, Human Rights Watch said in a report. The Public Investment Fund lacks oversight and has also been complicit in human rights violations in pursuit of the crown prince's vision to shake up the country's economy and society, according to the report released Wednesday. "To mute criticism and deflect from the country's rights record, PIF investments in foreign jurisdictions provide incentives for silence on Saudi Arabia's poor rights record, proliferate distorted narratives of reform, and build support for Mohammed bin Salman," the report said.
/jlne.ws/410L6Qp
UAE's $1 Trillion Market Is Heavily Dominated by Royal Family
Tugce Ozsoy and Laura Gardner Cuesta - Bloomberg
A surge in the years since the pandemic has propelled stocks listed in the United Arab Emirates past $1 trillion in market value. Yet behind the dramatic ascent, investors face a complex market heavily dominated by its rulers. These days, companies linked to Sheikh Tahnoon bin Zayed Al Nahyan - one of Abu Dhabi's two deputy rulers, national security adviser of the UAE and brother to its president - make up at least two-thirds of the weighting on the city's benchmark index.
/jlne.ws/3UYdYog
Egypt Delays LNG Imports Last Minute With Lower Power Demand; Several shipments were diverted away from Egypt recently; Nation is rescheduling cargoes from this quarter to next year
Salma El Wardany and Anna Shiryaevskaya - Bloomberg
Egypt, which surprised the market with massive liquefied natural gas tenders this year, has abruptly turned away several imported cargoes this month. Lower electricity consumption amid cooler weather means the North African country requires less liquefied natural gas than it did during the scorching summer, a person familiar with the matter said. As a result, Egypt is rescheduling taking deliveries from this quarter to the next one, the person said, asking not to be named because of the private nature of the information.
/jlne.ws/4fX4Zfm
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| Miscellaneous | | Stories that don't quite fit under the other sections | Comcast to Spin Off Cable-TV Channels Like MSNBC, USA
Christopher Palmeri - Bloomberg
Comcast Corp (CMCSA). plans to spin off cable-TV channels including MSNBC, CNBC and USA, according a person a familiar with the company's plans, reducing its exposure to a business that's losing viewers and advertisers. Comcast's NBC broadcast network and Peacock streaming TV business will remain with the parent company, said the person, who asked to not be identified because the news hasn't been announced. So will Bravo, a cable channel with reality TV shows that are popular on streaming.
/jlne.ws/3YUK8SR
The Onion's Bid to Acquire Infowars Has Gotten Messy; A hearing is scheduled for Monday to review the auction process, which is being contested by a losing bidder associated with Alex Jones, the Infowars founder.
Elizabeth Williamson and Benjamin Mullin - The New York Times
There was a merry triumphalism to the announcement last week that The Onion, a satirical outlet based in Chicago, won an auction to acquire the conspiracy site Infowars out of bankruptcy. The deal seemed done: Infowars went offline; memes of an apoplectic Alex Jones, its founder, sped across social media; and Ben Collins, chief executive of The Onion's parent company, pronounced the coup "hilarious."
/jlne.ws/4fN9usY
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