| November 29, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
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John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Those of you who partook of the holiday, I hope you had a very nice Thanksgiving, with good food, family, friends and lots of pumpkin pie. Welcome to Black Friday, which used to have a much different meaning. One of the first uses of Black Friday in the markets had to do with the attempt to corner the gold market in 1869 by a conspiracy led by investors Jay Gould and James Fisk. It was really Gould who was the head and lead of the conspiracy of the two partners in the Erie Railroad. This was during the administration of Ulysses S. Grant, just after the U.S. Civil War. The activity took place on the New York Gold Exchange, which was formed just before the war in a basement in New Street in New York. The New York Stock Exchange banned trading in gold as unpatriotic during the war.
The New York Gold Exchange, after starting as Gilpin's Gold Room, was incorporated on October 14, 1864 and the New York Gold Exchange's new facility was located at the corner of William Street and Exchange Place and was usually known simply as the Gold Room. A young J.P. Morgan was one of the founders. After the war, the New York Gold Exchange became part of The New York Stock Exchange. It closed in 1897.
Back in 1997, the issue of a unified regulator was something that was being discussed. In fact, my career goal at the time was to be the first chairman of the combined SEC and CFTC, I say not completely facetiously. An academic wrote a paper at the time looking at the prospects for a unified regulator and the reasons why we didn't have one. The abstract of the paper titled The Political Dynamics of Derivative Securities Regulation by Roberta Romano can be summarized as:
The United States' regulation of derivative securities is unique compared to other nations due to its reliance on multiple regulatory bodies, notably the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). This fragmented regulatory framework has persisted despite significant changes in derivative markets and numerous legislative attempts to consolidate oversight under a single entity.
The endurance of this multi-regulator system can be attributed to the structure of congressional committees and the vested interests of key stakeholders, including farmers, futures exchanges, and banks. These groups formed a coalition during the enactment of the Commodity Futures Trading Commission Act of 1974 and have since supported the status quo. Additionally, the regulation of derivatives has historically been a low-salience issue for the general public, reducing pressure for reform. Absent a significant external event that shifts public attention and alters the incentives of these coalition partners, it is likely that the current dispersed regulatory framework will continue.
On a more somber note, word has reached JLN that last weekend Ted Baker passed away. Baker retired in 2003 as the chairman and chief operating officer of Pershing Trading Company, though he stayed active in the business by joining Olson Global Markets in Providence, R.I. as CEO. I don't know Baker's exact age, but he was about 74 or 75 years old. He grew up a stone's throw from my home in Wisconsin, in Pell Lake, and graduated from high school there. He graduated from Carroll University in Waukesha, WI and entered the financial services business with Robert W. Baird. Joining A.G. Becker brought him to Chicago and the CBOE, and when Becker's dealer services business was sold to the Pershing Division of Donaldson Lufkin, Baker moved to Pershing and New York and started his climb to the highest levels of success in the industry. Ted was known to his friends for his love and collection of wine and of motorcycles. Once asked about his collection of 15 different motorcycles and why he had them, he replied, "You are a golfer right? You have different types of clubs in your bag?" Baker had a bike for cross country trips, one for riding around town, one for heading to the bar for a hamburger, etc. RIP Ted Baker.
The Securities and Exchange Commission (SEC) has updated its Public Alert: Unregistered Soliciting Entities (PAUSE) list, adding 20 new entries on November 27, 2024. This update includes 14 soliciting entities using misleading information, 2 impersonators of genuine firms, and 4 bogus regulators. The PAUSE list aims to protect investors, particularly non-U.S. investors, from fraud by flagging entities that provide inaccurate information about their affiliation, location, or registration, falsely claim to be registered with the SEC, or impersonate legitimate securities firms or government regulators. Firms soliciting U.S. investors must register with the SEC and meet specific requirements, though inclusion on the PAUSE list doesn't necessarily indicate violations or judgments on offered securities. The list is updated periodically by the SEC's Office of Market Intelligence in coordination with other SEC offices. To protect themselves from investment fraud, investors are advised to be cautious when sharing contact information for investment promotions, learn to recognize red flags and where to seek help, protect themselves online and on social media, and understand different types of investment fraud, including those on digital platforms.
Today is the final day to secure your spot at DePaul University's 11th Annual Cyber Risk Conference: The Cyber Resilient Organization, scheduled for Tuesday, December 3, 2024, from 9 a.m. to 5 p.m. at the DePaul Center, 1 E. Jackson Blvd, Chicago. Register now to take advantage of the early bird discount, which ends today. Use code "shore2024" at checkout to receive a 50% discount. Attendees are eligible for 6 CLE credits. Don't miss this opportunity to engage with industry experts on the latest in cyber resilience.
Here are the headlines from in front of FOW's paywall from some recent stories: BoE sees no 'cause for concern' after tougher CCP stress test, Deribit to launch Dubai crypto derivatives market at start of 2025, IOSCO highlights exchange models as it sets out market structure rules, LME raises fees for second consecutive year, HKEX taps Lau for wider role amid management changes and Hedgers, speculators using FX options to trade political events - OSTTRA.
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:
- How Did MicroStrategy Sell $3 Billion of Zero-Rate Debt? Option Volatility is Key. from Barron's.
- MIAX exchange lists Bitcoin ETF options from CoinTelegraph.
- Option Traders Bet on Deep Treasury-Market Selloff Within Weeks from Bloomberg. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Leverage Shares Wants to Help European Investors Trade U.S. ETPS and Manage Fragmentation, Says Oktay Kavrak
JohnLothianNews.com
Investors in the EU and UK are looking for exposure to U.S. companies. They are also looking for the enhancement of leveraged products. In the past, foreign institutional investors could access U.S. ETFs directly or through local US-based affiliates. But in the past five years, regulations such as PRIIPs have made it harder for EMEA traders to hold U.S. ETFs.
Read more »
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Arcesium Executive Highlights Hedge Funds' Balancing Act: Advanced Tech vs. Top Talent
JohnLothianNews.com
In a recent interview with John Lothian News, David Nable, a senior executive at Arcesium, highlighted the growing challenge hedge funds face in balancing advanced technology adoption with the demand for skilled portfolio managers. Nable emphasized that top-tier talent has high expectations for seamless technology infrastructure when moving to a new employer.
Watch »
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Laconic Announces Joseph Niciforo as its New Chairman of the Board
Laconic Infrastructure Partners Inc.
Laconic Infrastructure Partners Inc. (Laconic), today announced that Joseph Niciforo has been named as Laconic's new Chairman of the Board, effective immediately. Mr. Niciforo replaces Donald Morrison, Laconic's former Chairman of the Board. Mr. Morrison remains a member of Laconic's board of directors. As a previous Chairman at HC Technologies and a veteran in the financial trading and hedge fund markets, Mr. Niciforo's experience will aid Laconic's as it works to innovate in the global carbon market via its unique sovereign carbon offering, which, for the first time, makes possible sufficient trade volumes in carbon to enable the achievement of mankind's collective NetZero targets.
/jlne.ws/3VcEsmf
***** I want to write something compendious, concise, pithy, succinct, summary, and terse about Joe, but I can't think of anything to say except good luck.~JJL
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How 'T+1' Stock Settlement Shift Is Impacting Markets
Lydia Beyoud and Greg Ritchie - Bloomberg
Even in an age of instant communication and live financial data, investors have had to wait days to take ownership of the stocks they purchased or to receive payment for the stocks they sold. No longer. Since May 28, US stock trades have "settled" in one day rather than two. Global banks, brokers and investors were forced to review all of their post-trade technologies and procedures to ensure they were ready for the new pace of stock trading. The change has posed a special challenge to investors outside the US because global currency trading - as well as many local stock markets - still typically settle on a two-day standard.
/jlne.ws/4eWDLV4
***** Back when I was a futures broker (and totally unbiased) I used to say, "Solve your T+1 problems, just trade futures! It is as simple as that."~JJL
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Republican US states sue BlackRock for 'destructive' green agenda; Conservatives also target Vanguard and State Street in war on 'woke capitalism'
Myles McCormick and Brooke Masters and Stefania Palma - Financial Times
Texas and 10 other Republican-led states are suing BlackRock, State Street and Vanguard, alleging they conspired to curtail coal supplies to further "a destructive, politicised environmental agenda". The federal antitrust lawsuit accuses the three largest US index fund managers of using their holdings in the coal producers to constrict supplies and drive up prices in pursuit of net zero carbon emissions goals.
/jlne.ws/41sHcA3
***** There is so much wrong with this, I cannot begin to list the reasons. But if I want to invest in things that I believe help a cause that is not illegal, I should be able to do so without political/legal interference. ~JJL
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Wednesday's Top Three
Our top story Wednesday was Howard Lutnick, King of Cantor, Gets a Boss of His Own in Donald Trump, from Bloomberg. Second was Bloomberg's Trading Titan Don Wilson Says It's Time to Remake Regulatory Regime. Third was the clip from YouTube of Ben Stein as an economics teacher in "Ferris Bueller's Day Off" delivering a lecture on the Smoot-Hawley Tariff Act.
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| Lead Stories | First Around-the-Clock US Stock Exchange Wins SEC Approval
Katherine Doherty - Bloomberg
A startup stock exchange aiming to handle trades around the clock won a US watchdog's approval to operate a venue 23 hours daily, five days a week. 24X National Exchange, which counts Steve Cohen's Point72 Ventures fund as a backer, secured permission to start offering sessions that span the US daytime and later add overnight trading, the Securities and Exchange Commission wrote in a notice posted Wednesday. The plan would preserve one-hour breaks starting at 7 p.m.
/jlne.ws/4eTN4Fe
Bitcoin Gets Boost as Crypto Supporters Vie to Head US Regulators
Sunil Jagtiani - Bloomberg
Bitcoin resumed a climb toward $100,000 on signs that crypto-friendly candidates will likely shape US financial rules under Donald Trump. The digital asset rose the most in more than two weeks on Wednesday to hit $97,361, before easing to $95,500 as of 5:45 a.m. Thursday in London. Crypto supporters emerged as leading candidates to run the Securities and Exchange Commission and the Commodity Futures Trading Commission, aiding sentiment.
/jlne.ws/3OQAVGR
EC approves first round-the-clock exchange; 24X has received approval - dependent on amendments - to operate as a 24-hour exchange for equities.
Claudia Preece - The Trade
The US Securities and Exchange Commission (SEC) has approved the first round-the-clock exchange, 24X. 24X made its registration application to the US Securities and Exchange Commission to (SEC) to launch the first every 24-hour exchange for equities on 6 February 2024, following an unsuccessful application in 2023. Specifically, 24X's proposal sought to "significantly expand trading outside of regular trading hours" for NMS stocks. Specifically, the national securities exchange's initial plan is to operate every day of the year (all 365 including holidays), 23 hours a day - subject to certain pauses.
/jlne.ws/4fFsERH
Microsoft Faces Broad Antitrust Investigation From US FTC; FTC has sent detailed information demand to Microsoft; Questions focus on software licensing, cybersecurity and AI
Leah Nylen, Josh Sisco, and Dina Bass - Bloomberg
The US Federal Trade Commission has opened an antitrust investigation of Microsoft Corp., drilling into everything from the company's cloud computing and software licensing businesses to cybersecurity offerings and artificial intelligence products. After more than a year of conducting informal interviews with competitors and business partners, antitrust enforcers have crafted a detailed request to force Microsoft to turn over information, according to people familiar with the matter. The demand, which is hundreds of pages long, has been sent to the company after FTC Chair Lina Khan signed off, said one of the people.
/jlne.ws/49c7MPr
Adani's Backers Muster a United Front to Counter US Charges; Former attorney general echoes Adani Group's defense; Billionaire accused of promising bribes to Indian officials
Dan Strumpf, Preeti Soni, and Sanjai P R - Bloomberg
Almost a week after bombshell allegations by the US of Gautam Adani's involvement in a bribery plot, an outpouring of public backing for the Indian billionaire slowly began to build. The groundswell began early Wednesday, when an Adani Group unit issued a filing asserting that initial reports on the indictment were inaccurate - the company's main defense was that its executives were being charged only with fraud, not bribery.
/jlne.ws/3Ve1WHQ
RBI Inquiries on Liquidity Spur Speculation of Action Next Week; RBI officials made informal calls to gauge banking liquidity; Some market traders expect RBI to take steps like CRR cut
Bhaskar Dutta - Bloomberg
India's central bank has stepped up dialogue with traders at treasury desks this week about cash conditions in the banking system, according to people with knowledge of the matter, spurring speculation it may announce some measures to boost liquidity at the policy review on Dec. 6. While Reserve Bank of India officials routinely call traders to check on various issues, the focus of the recent engagements has been on how the liquidity situation is panning out amid large foreign outflows from stocks and bonds, the people said, asking not to be identified as the deliberations were private.
/jlne.ws/3OxJxBK
Chinese bond market grapples with 'Japanification'; Deflation fuels 'inexorable' slide in China's long-term sovereign bond yields below Japan's for the first time
Arjun Neil Alim and Ian Smith - Financial Times
China's long-term bond yields have fallen below Japan's for the first time, as investors bet that the world's second-biggest economy will become bogged down by the deflation that has long afflicted its neighbour. A rally in 30-year Chinese government bonds has pushed their yield down from 4 per cent in late 2020 to 2.21 per cent on Friday, as Beijing cuts interest rates to boost its flagging economy and Chinese investors pile into haven assets.
/jlne.ws/3ZaBcZQ
Swiss prosecutor charges Lombard Odier with money laundering; Former employee of private bank also charged in case relating to daughter of former Uzbekistan president
Sam Jones - Financial Times
Swiss private bank Lombard Odier and one of its former employees have been charged with aggravated money laundering by Switzerland's federal prosecutor. In an indictment filed on Friday, the prosecutor said Lombard Odier - one of the country's most illustrious financial institutions - had for years played a "decisive role" in helping to conceal the alleged criminal activities of Gulnara Karimova, daughter of the now-deceased president of Uzbekistan, Islam Karimov.
/jlne.ws/4eSO64g
The epic spectacle that is the bitcoin juggernaut MicroStrategy; Despite massive fundraising plans, the stock is up 450% this year, valuing the company at about $90bn
Craig Coben - Financial Times
Has there ever been a capital markets spectacle quite like MicroStrategy? In the last month alone, the bitcoin-buying juggernaut has announced plans to raise a staggering $42bn in equity and debt while buying $10.2bn worth of bitcoin. On top of that, the company this month placed its fifth convertible bond issue of the year, this time raising $3bn with the jaw-dropping terms of a zero interest rate and a price to convert the debt into equity that is a 55 per cent premium to the current share price.
/jlne.ws/3D1eZFZ
A Simpler Citigroup Begins to Take Shape; CEO Jane Fraser moves closer to a spinoff of Mexican consumer bank Banamex
Justin Baer - The Wall Street Journal
Citigroup is nearing an important milestone in efforts to spin off its Mexican consumer bank, an important part of chief executive Jane Fraser's turnaround strategy. The bank said it would complete a split next week of the systems that underpin Banamex from the rest of its operations in Mexico. That is a precursor to its plan to list Banamex on U.S. and Mexican exchanges in late 2025 or after. Citi plans to unload a slice of its stake through an initial public offering, then continue to sell the rest of its holdings over time.
/jlne.ws/4997yJ7
Silicon Valley billionaires remain in thrall to the cult of the geek; IQ hierarchies are a dangerous myth
John Thornhill - Financial Times
At an FT event a few years ago, Microsoft's co-founder Bill Gates was asked what painful lessons he had learnt when building his software company. His answer startled the audience back then and is all the more resonant today. Gates replied that in his early twenties, he was convinced that "IQ was fungible" and that he was wrong. His aim had been to hire the smartest people he could find and build a corporate "IQ hierarchy" with the most intelligent employees at the top. His assumption was that no one would want to work for a boss who was not smarter than them. "Well, that didn't work for very long," he confessed. "By the age of 25, I knew that IQ seems to come in different forms."
/jlne.ws/49gMXCK
Chinese companies rush to tap convertible bond market; Alibaba and Ping An among corporates attracted to cheaper form of financing
Arjun Neil Alim and Joseph Cotterill - Financial Times
Chinese companies are issuing convertible bonds at a record rate this year, as they hunt for cheap forms of financing and a way to boost their offshore cash balances. Ecommerce company Alibaba, which in May raised one of the largest convertible bonds on record at $5bn, and insurer Ping An, which raised $3.5bn in July, are among companies driving the rush to issue a form of debt that surged in popularity in western markets during the coronavirus pandemic.
/jlne.ws/3Vg85TP
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Putin Says Russia May Strike Kyiv With New Ballistic Missile; Retaliation threat comes after Ukraine fired Western missiles; Putin says Defense Ministry, General Staff selecting targets
Henry Meyer - Bloomberg
President Vladimir Putin warned that his forces could strike "decision-making centers" in the Ukrainian capital of Kyiv with new ballistic missiles as retaliation for attacks on Russia using Western missiles. "The Defense Ministry and the General Staff are selecting targets to hit on Ukrainian territory," Putin said during a regional security meeting in Kazakhstan's capital Astana on Thursday. "These could be military facilities, defense industry enterprises or decision-making centers in Kyiv."
/jlne.ws/3Vf9zxx
Putin says Russia would use all weapons at its disposal if Ukraine got nuclear weapons
Reuters
President Vladimir Putin said on Thursday that Russia would use all weapons at its disposal against Ukraine if Kyiv were to acquire nuclear arms. The New York Times reported last week that some unidentified Western officials had suggested U.S. President Joe Biden could give Ukraine nuclear weapons before he leaves office.
/jlne.ws/4eSEIh2
Exclusive-Nuclear attack unlikely despite Putin's warnings, US intelligence says
Erin Banco and Phil Stewart - Reuters
The U.S. decision to allow Ukraine to fire American weapons deeper into Russia has not increased the risk of a nuclear attack, which is unlikely, despite Russian President Vladimir Putin's increasingly bellicose statements, five sources familiar with U.S. intelligence told Reuters. But Russia is likely to expand a campaign of sabotage against European targets to increase pressure on the West over its support for Kyiv, said two senior officials, a lawmaker and two congressional aides briefed on the matter.
/jlne.ws/4drVq7w
Russia says Trump Ukraine aid cut would be 'death sentence' for Kyiv's military
David Brunnstrom - Reuters
Russia's deputy U.N. ambassador said on Wednesday any decision by President-elect Donald Trump's incoming administration to cut support for Ukraine would be a "death sentence" for the Ukrainian army, while accusing Kyiv of trying to drag NATO countries into direct conflict with Russia in the meantime. Speaking to the U.N. Security Council, Dmitry Polyanskiy accused the outgoing Biden administration of trying through its increased support to Ukraine to create a "mess, both in Russia and with the new team in the White House."
/jlne.ws/49bertg
Putin's butter problem could help bring peace to Ukraine; Butter thefts are rife in Russia because of war-linked soaring prices and some supermarket owners keep slabs behind the counter now
James Kilner - The Telegraph
Fifty butter thefts a week have been reported since October 2024, according to Russian security services Credit: Pravda In a Russian supermarket, a bearded man takes a furtive look around. His brow is creased with tension. Then, with a jerk, he reaches into the shelves, grabs several items, slips them into his rucksack and dashes for the exit. The stolen goods? Butter. Caught on CCTV, this was yet another butter theft in Russia, driven by soaring prices linked to Vladimir Putin's war in Ukraine. Supermarket owners now store butter in anti-theft devices or keep slabs behind the cashier's counter.
/jlne.ws/3VaE87B
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel steps up bombing of central Gaza, strikes kill 26 people
Nidal Al-Mughrabi and Hussam Al-Masri - Reuters
Israeli military strikes killed at least 26 Palestinians across the Gaza Strip on Thursday, medics said, as forces stepped up their bombardment of central areas and tanks pushed deeper into the north and south of the enclave. The escalation came a day after Israel and Iran-backed Hezbollah began a ceasefire in Lebanon, halting more than a year of hostilities and raising hopes among many Palestinians in Gaza for a similar deal with Hamas, which rules the enclave.
/jlne.ws/3B22jhI
Netanyahu Can Leverage the Lebanon Cease-Fire for a Broader Deal; But Israel is unlikely to seize the opportunity.
Marc Champion - Bloomberg Opinion
There are at least two possible outcomes to the fragile Lebanon cease-fire that began this week. One, expressed by the country's caretaker Prime Minister Najib Mikati, is that it becomes the first step in turning "a new page" on the strife that's exploded across the region since Hamas attacked Israel on Oct. 7, 2023. The other is both far less peaceful and more likely. Israeli Prime Minister Benjamin Netanyahu has already said he sees the cease-fire as a pause in which to increase pressure on Hamas in Gaza and to rearm, while focusing on the threat from Iran. Key to his signing the deal was a US offer of $680 million worth of small-diameter bombs and J-dam kits, which turn gravity bombs into guided missiles. These weapons have been core to Israel's continuing war with Hamas in Gaza.
/jlne.ws/4gagjVr
Israel and Hezbollah trade accusations of ceasefire violations
Maya Gebeily - Reuters
The Israeli military said its air force struck a facility used by Hezbollah to store mid-range rockets in southern Lebanon on Thursday, after both sides accused each other of breaching a ceasefire that aims to halt over a year of fighting. Israel said it also opened fire on Thursday towards what it called "suspects" with vehicles arriving at several areas in the southern zone, saying it was a breach of the truce with Iran-backed armed group Hezbollah, which came into effect on Wednesday.
/jlne.ws/4fOoUNQ
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Latin America's Stock Exchanges Lead with Advanced Financial Technology within Post-Trade
Vermiculus
Latin America is leading a new era of technological transformation in the financial industry. Major stock exchanges in Brazil, Chile, Colombia, and Peru have adopted advanced microservice-based solutions that enhance market efficiency and set a new global standard for post-trade systems. Currently, Latin America is investing more significantly in post-trade processes than any other region, showcasing some of the most promising projects in the financial technology space. B3, one of the largest exchanges in the world, together with the clearinghouses in the nuam initiative (the new exchange that will integrate Colombia Stock Exchange, Lima Stock Exchange and Santiago Stock Exchange into a single capital market), have each embraced this technology. This digital shift, driven by increasing trading volumes and heightened expectations from market participants, responds to a growing demand for faster and more transparent markets.
/jlne.ws/3OvSPyf
Trump win fuels bitcoin derivatives boom as futures open interest surges over $60 billion
Brian McGleenon - The Block
Since Donald Trump's U.S. presidential election victory on Nov. 5, bitcoin futures open interest has risen sharply, signaling increased trading activity and market speculation. Despite the surge, analysts from Bitfinex maintain that leveraged trades are not at risk of an imminent market correction. Bitcoin futures open interest jumped from $39 billion on Nov. 5 to currently stand at $60.9 billion, according to data from Coinglass. This represents a substantial increase in the value of positions tied to bitcoin derivatives contracts, many of which involve leverage.
/jlne.ws/3Vd6SfQ
HKEX Announces Senior Management Changes
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) today (Friday) announced a number of senior management changes, which will take effect from 1 January 2025, unless otherwise stated. Wilfred Yiu, Deputy Chief Executive Officer, Co-Chief Operating Officer and Co-Head of Markets, will retire at the end of 2024 following a distinguished career in the financial services industry. Mr Yiu will also retire as Chief Executive of The Stock Exchange of Hong Kong Limited (SEHK) and Hong Kong Futures Exchange Limited (HKFE).
/jlne.ws/4i4mKv7
SIX Appoints Bjorn Sibbern as New CEO
SIX via BME-X
The Board of Directors of SIX has appointed Bjørn Sibbern as new CEO effective 1 January 2025. Bjorn Sibbern will succeed Jos Dijsselhof, who will step down to pursue a new professional opportunity in the Middle East after seven years with SIX. Jos Dijsselhof successfully developed SIX commercially and expanded it internationally. Bjorn Sibbern will take over as CEO of SIX on 1 January 2025. Since the beginning of 2024, he has been leading the international exchange business of SIX as Global Head Exchanges and a member of the Group Executive Board. Bjørn Sibbern has more than two decades of experience in capital markets for highly regarded institutions, including various international positions at Nasdaq, OMX Exchanges and as CEO of E*TRADE Bank Denmark. A Danish national, he holds an Executive MBA, a diploma in Business Administration and an MSc in Economics and Business Law from the Copenhagen Business School.
/jlne.ws/49bhFgm
Spanish financial markets' 2025 trading calendar
BME-X
BME, the operator of the Spanish Equity, Fixed Income and Derivatives markets, has set the trading calendar for 2025. It has been agreed that the markets will be closed the following days:
/jlne.ws/4193lDh
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | ChatGPT's $8 Trillion Birthday Gift to Big Tech; Two years in, generative AI's value to the world is still unclear. But these charts show that it's been a bonanza for the largest tech firms.
Parmy Olson and Carolyn Silverman - Bloomberg Opinion
Saturday marks two years since OpenAI posted an oddly named widget called ChatGPT to the web. Its staffers placed bets on how many users it would accumulate, the highest estimate being 100,000. How wrong they were. ChatGPT quickly became the fastest-growing app in history, with about 200 million active users today. When it first came out, social media was ablaze with examples of how this fluent little text box was a leap ahead of Amazon Inc.'s Alexa or Apple Inc.'s Siri. It could write poems and high school essays. It would probably reshape Hollywood and the education system. Some of that has come to pass, with schools rethinking how they assign homework, for instance, while its impact on other areas of life and business is still an open question.
/jlne.ws/3VdZnp6
Hong Kong offers grants to boost tokenised bond issuance in goal to become crypto hub
South China Morning Post
The Hong Kong Monetary Authority (HKMA) will subsidise some companies in issuing tokenised bonds in the local market, as the city forges ahead in incorporating blockchain in the financial services sector amid a push to become a virtual-asset hub. The city's de facto central bank has launched a three-year grant scheme that will hand out up to HK$2.5 million (US$321,000) in subsidies per issuance to qualified tokenised-bond issuers, for a maximum of two issuances, the HKMA said on Thursday.
/jlne.ws/3CPWjJq
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| Cybersecurity | | Top stories for cybersecurity | Many small businesses are falling well short when it comes to cybersecurity plans
Sead Fadilpasic - TechRadar
When it comes to mobile cybersecurity, most small and medium-sized enterprises (SME) are falling well short, a new report from CyberSmart has claimed. The report found a significant majority (60%) expects their employees to use their personal mobile devices to carry out work tasks.
/jlne.ws/4i8Nuul
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| Cryptocurrencies | | Top stories for cryptocurrencies | EDX Has Record Spot Crypto Volumes
Shanny Basar - MarketsMedia
EDX Markets, an institutional crypto trading venue with a central clearinghouse, had record volumes on its US spot crypto market as it prepares to launch a perpetual futures venue in Singapore. Jamil Nazarali, chief executive of EDX Markets, told Markets Media that the growth in spot volumes has outstripped the increase in market volumes. "Since the end of the third quarter and the US election we have seen incredible growth and there is strong sentiment in the market about the future regulatory environment," he added. EDX provides separate quotes for institutions and retail intermediaries and said it has traded and cleared $39.8bn of member volume since the start of this year. In November EDX said it facilitated record volume with members trading over $685m in a 24-hour period. Volume in the month-to-date has reached $5.8bn.
/jlne.ws/49cIsZE
Crypto entrepreneur eats banana artwork bought for $6.2m
Alex Loftus - BBC News
A Chinese-born cryptocurrency entrepreneur has followed through on his promise to eat the banana from a $6.2m (£4.9m) artwork he bought last week. Justin Sun outbid six others to claim Maurizio Cattelan's infamous 2019 work Comedian - a banana duct-taped to a wall - at Sotheby's auction house in New York. He ate the fruit during a news conference in Hong Kong where he used the moment to draw parallels between the artwork and cryptocurrency. The banana is regularly replaced before exhibitions, with Mr Sun buying the right to display the installation along with a guide on how to replace the fruit. It has been eaten twice before - first by a performance artist in 2019 and again by a South Korean student in 2023 - but neither paid any money to do so, let alone $6.2m.
/jlne.ws/4g7xDKP
Crypto's $1 Trillion Rally Has Yet to Reprise Pandemic-Era Mania; Bitcoin hit records but many other tokens are below highs; eToro says some retail investors may be on the sidelines
Adrian Wong, Sidhartha Shukla, and Suvashree Ghosh - Bloomberg
Controversial crypto mogul Justin Sun beamed as he ate a $6.2 million banana in Hong Kong, a spectacle that ratcheted up the spotlight on digital assets as the industry tries to keep an historic market rally on track. The banana comes from a viral conceptual artwork, Comedian, comprised of the fruit duct-taped to a wall, which Sun bought in a Sotheby's auction last week. For Sun, the conspicuous consumption becomes a part of art history, and, as the sculpture's owner, he has the right to manifest the piece with a new banana.
/jlne.ws/3ZrSS4l
US Bitcoin ETFs Head for Record Monthly Inflow on Trump Optimism; The 12 funds have wooed a net $6.2 billion so far in November; Bitcoin came close to $100,000 on Trump's pro-crypto agenda
Sunil Jagtiani - Bloomberg
A group of one dozen US Bitcoin exchange-traded funds is on the cusp of a record monthly net inflow, bolstered by the digital asset's historic surge toward $100,000 on President-elect Donald Trump's embrace of crypto. The ETFs from issuers including BlackRock Inc. and Fidelity Investments have attracted $6.2 billion so far in November, data compiled by Bloomberg show. The previous peak of $6 billion was achieved in February amid investor euphoria over the launch of the products at the start of the year.
/jlne.ws/3CSLDtx
Hong Kong plans crypto tax break for hedge funds and billionaire families
Chan Ho-him and Kaye Wiggins - Financial Times
Hong Kong plans to exempt private equity funds, hedge funds and the investment vehicles of the super-rich from paying tax on gains from cryptocurrencies, private credit investments and other assets, as it seeks to become a top offshore finance hub.
/jlne.ws/3B5tmIO
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| Politics | | An overview of politics as it relates to the financial markets | Donald Trump's corporate picks raise conflict of interest fears; Business and financial interests will be hard to disentangle from government in new administration, critics charge
James Politi and Stefania Palma and Joe Miller and Patrick Temple-West - Financial Times
Donald Trump's second administration risks being rife with potential conflicts of interests given the sprawling business and financial interests of several cabinet picks and allies, warn ethics watchdogs and experts. Trump's cabinet is shaping up to be one of the wealthiest on record after he tapped a number of financiers and business executives, including nominees Scott Bessent as Treasury secretary, Howard Lutnick to lead the commerce department, and Chris Wright as energy secretary. Elon Musk, the world's richest man, has also become a close adviser and confidant of the president-elect.
/jlne.ws/3OvNGGr
Britain is closer to bankruptcy than anyone feared; Local councils across the country are close to insolvency, but the real problems lay in Westminster
Matthew Lynn - The Telegraph
If it was a company the shares would have crashed, and the liquidators would be getting ready to take control. The National Audit Office has today refused to sign off on the UK's accounts, citing a lack of information from local authorities on their potential liabilities. They can hardly be blamed for that. The grim truth is that the country's balance sheet is a mess - and we may be a lot closer to bankruptcy than we realise. The Chancellor Rachel Reeves may claim to have taken the "tough decisions" to put the national finances back on a "solid footing". The trouble is, the people whose actual job it is to examine the books don't see it the same way. The NAO today warned of "severe backlogs" in the audits of local authority finances which meant it did not have "sufficient, appropriate evidence" to sign off on the Whole Government Accounts, which combines the figures for more than 10,000 public bodies.
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UK spy chief says Russia behind 'staggeringly reckless' sabotage in Europe
Michael Holden and Gabriel Stargardter - Reuters
Britain's foreign spy chief accused Russia on Friday of waging a "staggeringly reckless campaign" of sabotage in Europe while also stepping up its nuclear sabre-rattling to scare other countries off from backing Ukraine. Richard Moore, head of Britain's Secret Intelligence Service known as MI6, said that any softening in support for Ukraine against Russia's 2022 full-scale invasion would embolden Russian President Vladimir Putin and his allies.
/jlne.ws/4ePKKPD
Why France's Political and Budget Drama Is Spooking Investors; French PM faces risky no-confidence votes in coming weeks; Marine Le Pen steps up threats to bring down the government
William Horobin - Bloomberg
France's efforts to repair its public finances are threatening a new political and financial crisis, prompting investors to sell some of the nation's assets. Prime Minister Michel Barnier's attempts to stem the nation's rising debt are faltering as opposition lawmakers threaten to eject him from office in order to stymie the 2025 budget bill. The uncertainty has led to a selloff of French assets, widening the gap between the country's financing costs and Germany's to levels not seen since the euro's debt crisis more than a decade ago.
/jlne.ws/3OwHqyg
Why Mexico Is Eliminating Independent Watchdog Agencies; A vote in the country's Senate has cleared the way to abolish seven independent organizations that provided oversight on issues such as public information and price fixing.
James Wagner and Emiliano RodrÃguez Mega - The New York Times
Mexico's Senate on Thursday night passed a sweeping proposal to dissolve several government-financed yet independent watchdog organizations, a move the president and her supporters said would help reduce corruption and waste. Critics have called it a step backward for transparency and regulation. The duties of most of the seven agencies, which provided oversight on a host of issues, such as public information requests and price fixing in the telecommunications, pharmaceutical and energy sectors, would be absorbed by other parts of the federal government, overseen by the president.
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Kremlin tries to reassure panicking Russians over collapsing rouble
James Kilner - The Telegraph
The Kremlin has tried to reassure Russians they will not be affected by the sudden collapse of the rouble, which has plunged to its lowest level since the invasion of Ukraine. Dmitry Peskov, the Kremlin spokesman, dismissed the rouble's fall of 8.5 per cent on Wednesday as irrelevant, apparently ignoring analysts' concerns about rising import costs and foreign exchange "panic". "Russians won't notice the dollar exchange rate increase because they are paid in roubles," he confidently told reporters.
/jlne.ws/4ga6RkR
Russian central bank takes desperate stand to halt collapsing ruble and fierce inflation
Christiaan Hetzner - Fortune
In a bid to stave off red-hot inflation, Russia's central bank halted all foreign currency purchases for the remainder of the year, while actively selling Chinese yuan, in hopes of propping up the ruble. The ruble-currently worth a fraction of a penny-hit lows on Wednesday not seen since the start of the Ukraine war. The aim is to put a floor underneath the ruble and clamp down on further price pressure leaking into the country through the rising cost of imported goods. The Russian economy is also suffering from a lack of foreign investment caused by Western government sanctions that ban companies from doing business with Russia. With most Russian financial institutions now cut off from trading in dollars, this starves the country of a steady supply of U.S. currency reserves.
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Russian President Vladimir Putin says Trump is 'intelligent and experienced,' capable of finding 'solutions'
Christian Edwards, Darya Tarasova and Lauren Kent - CNN
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Chinese vessel 'sabotaged' Baltic deep sea cables and may have been under orders from Russia
Kieran Kelly - The Telegraph
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China Resumes Multiple-Entry Visas for Shenzhen to Hong Kong; Rules mark return to 2009 program abandoned after complaints; Hong Kong is looking for ways to boost flagging tourism sector
Bloomberg News
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Modi's Government Seeks to Distance Itself From Adani Probe
Sudhi Ranjan Sen - Bloomberg
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Russian 'spy ring plotted high-level espionage, including honey traps'; Five Bulgarians accused of using fake identities to carry out surveillance on behalf of the Kremlin
Hayley Dixon - The Telegraph
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| Regulation & Enforcement | | Stories about regulation and the law. | Hedge Fund RTW Probed by SEC Over Role in Masimo Proxy Fight
Katherine Burton - Bloomberg
RTW Investments, a $6.5 billion hedge fund specializing in the life sciences, is being investigated by the Securities and Exchange Commission over the firm's involvement in a proxy fight at Masimo Corp. The hedge fund, founded by Rod Wong, is cooperating with the agency, and the existence of a probe doesn't mean laws were broken, New York-based RTW said in a note to clients Monday. It characterized the SEC inquiry as a fact-finding investigation.
/jlne.ws/4g4TGll
Adani Says Founder Not Named in US FCPA Bribery Charge
P R Sanjai - Bloomberg
Indian billionaire Gautam Adani and his aides have not been charged under the US Foreign Corrupt Practices Act, an Adani Group entity said, seeking to clarify some media reports claiming so. The Department of Justice's indictment does not mention Gautam Adani, Sagar Adani or Vneet Jaain in any count related to conspiracy to violate the FCPA, Adani Green Energy Ltd. said in a filing to the stock exchange Wednesday.
/jlne.ws/3Zr8OUB
FTX scammer Caroline Ellison has already had nearly 4 months shaved from her scheduled release from prison
Natalie Musumeci - Business Insider
The former cryptocurrency executive Caroline Ellison reported to federal prison earlier this month to serve a two-year sentence over her role in the massive multibillion-dollar fraud scheme that led to the collapse of Sam Bankman-Fried's business empire. And it appears that Ellison - the ex-girlfriend of Bankman-Fried, the FTX and Alameda Research founder - has already had her release date moved up.
/jlne.ws/3OzY4gc
ByteDance seeks US$1.1 million in damages from ex-intern who sabotaged AI project
South China Morning Post
ByteDance, the owner of TikTok and Douyin, filed a lawsuit against a former intern, accusing him of tampering with code and sabotaging an artificial intelligence (AI) training project and demanding 8 million yuan (US$1.1 million) in compensation as well as a public apology, according to a local media report. The case has already been accepted by the Haidian District Court in Beijing, Chinese media outlet Southern Metropolis Daily reported on Wednesday. In October, rumours circulated on Chinese social media suggesting that a ByteDance intern's actions targeting the company's large language model (LLM) had caused significant damage. At the time, ByteDance clarified that the individual was terminated in August for "maliciously interfering" with a training task.
/jlne.ws/4fMznsZ
Wise rebuked by European watchdog over money laundering controls; Regulatory review in 2022 found fintech lacked proof of address for hundreds of thousands of customers
Akila Quinio - Financial Times
European regulators rebuked Wise, the London-listed fintech, over its anti-money laundering controls and forced the payments group into a formal remediation plan, according to five people familiar with the matter. A review by the National Bank of Belgium, which supervises Wise in Europe, found in early 2022 that the fintech lacked proof of address for hundreds of thousands of customers, said three of the people.
/jlne.ws/3ZtF35G
SEC Updates List of Firms Using Inaccurate Information to Solicit Investors
SEC
The Securities and Exchange Commission today announced that it updated its list of unregistered entities that use misleading information to solicit primarily non-U.S. investors, adding 14 soliciting entities, two impersonators of genuine firms, and four bogus regulators. The SEC's list of soliciting entities that have been the subject of investor complaints, known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list, enables investors to better inform themselves and avoid being victims of fraud. The latest additions are firms that SEC staff found were providing inaccurate information about their affiliation, location, or registration. Under U.S. securities laws, firms that solicit investors generally are required to register with the SEC and meet minimum financial standards and disclosure, reporting, and recordkeeping requirements.
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ASIC welcomes recent IOSCO reports outlining key developments for global market regulators
ASIC
The International Organization of Securities Commissions (IOSCO) has recently published a number of reports outlining key challenges and opportunities for global market regulators. ASIC has played a significant role in developing the consultation reports in its role as chair of the Committee on Regulation of Market Intermediaries (Committee 3). As a permanent board member of IOSCO, ASIC is committed to ensuring the policy approaches and collective thinking of markets regulators globally is shared with industry for consultation and feedback.
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ASIC cancels licence of RPD Group Advice Pty Ltd
ASIC
ASIC has cancelled the Australian financial services (AFS) licence of RPD Group Advice Pty Ltd (RPD Group) following a payment of compensation by the Compensation Scheme of Last Resort (CSLR). On 12 July 2024, the Australian Financial Complaints Authority (AFCA) made a determination against RPD Group, which RPD Group failed to pay. Subsequently, on 13 November 2024, the CSLR paid $62,421.00 to a person for the AFCA determination and notified ASIC. As a result, on 21 November 2024, ASIC cancelled RPD Group's AFS licence.
/jlne.ws/3ZcJujP
ASIC orders stop to Centrepay credit arrangements offered by Northern Territory business
ASIC
ASIC has made a final stop order preventing Indy-C-Fashion Accessories Pty Ltd (Indy-C) from offering Centrepay credit arrangements to consumers in its store in Katherine. An ASIC Delegate determined that Indy-C offered its credit arrangements without making a Target Market Determination (TMD) which is required to ensure suitable financial products are provided to consumers, having regard to their needs and objectives.
/jlne.ws/3Zr6xZz
Financial Institution Licence - the Finance Direct experience
FMA
Registered banks, licensed insurers and licensed non-bank deposit takers in the business of providing one or more relevant services to New Zealanders will need to hold a financial institution licence by 31 March 2025 to continue operating. Finance Direct's experience highlights the importance of being timely and proactive with your licence application, particularly for smaller firms.
/jlne.ws/4fPSvq2
FMA publishes refreshed Audit Quality Monitoring Report
FMA
The Financial Markets Authority (FMA) - Te Mana Tatai Hokohoko - has found audit quality of FMC reporting entities remains strong in New Zealand, however, some inconsistencies in execution are holding back the ability to produce stronger evidence and support for audit opinions. The FMA's Audit Quality Monitoring Report for 2023/24, released today, reviewed nine of the 12 registered audit firms in New Zealand and 19 audit files, 10 of which were of listed entities. It was the first time the FMA has reviewed most audit firms in the same year. Audit firms were previously reviewed every two to three years.
/jlne.ws/3BgqOaO
Navigating KiwiSaver Episode 4: KiwiSaver fees
FMA (Audio)
Jess and Stuart are back for episode 4 of our Navigating KiwiSaver series. Last week they discussed contributions, this week Stuart explains KiwiSaver fees, he also touches on active and passive investments. The fee is calculated as a percentage of the net asset value of each fund, and is already deducted from your investment, so returns will be reduced.
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Audit Quality Monitoring Report
FMA
The Auditor Regulation Act 2011 requires the FMA to prepare an annual report on the outcomes of the audit quality reviews we performed on the systems, policies and procedures of registered audit firms and licensed auditors in the preceding financial year. As well as providing a snapshot of the performance of registered audit firms during the review period, this report provides information for directors and auditors to assist with achieving and maintaining excellent audit quality.
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Inclusive growth: laying foundations, seizing innovations
FCA
Speech by Sarah Pritchard, executive director, markets and executive director, international at the TISA (The Investing and Saving Alliance) Annual Conference.
/jlne.ws/3OvsvUZ
FCA seeks further views on enforcement transparency proposals
FCA
The FCA has published the second phase of its consultation on proposals for a measured increase in transparency about its enforcement investigations, and set out plans for further engagement after significant concerns were raised in relation to the original consultation.
/jlne.ws/3VdoZm3
MAS Rationalises Leverage Requirements and Introduces Additional Disclosures for REITs
MAS
The Monetary Authority of Singapore (MAS) today issued revisions to the Code on Collective Investment Schemes (Code) to rationalise leverage requirements for the REIT sector. This follows the broad support received across respondents of various categories[1] during a public consultation from July to August 2024.
/jlne.ws/413rWt4
SFC and ICAC jointly investigate suspected misconduct in public office
SFC
The Securities and Futures Commission (SFC) today confirmed that a former staff member is one of the three individuals in a case of suspected misconduct in public office brought by the Independent Commission Against Corruption (ICAC) as a result of a joint investigation which is still underway. The other two defendants are a senior government counsel of the Department of Justice and a registered nurse of the Hospital Authority.
/jlne.ws/49bwQ9s
China Forestry's former chairman and CEO sanctioned for market misconduct
SFC
The Market Misconduct Tribunal (MMT) has ordered Mr Li Han Chun, the former chief executive officer (CEO) of China Forestry Holdings Company Limited (China Forestry), and his investment vehicle, Top Wisdom Overseas Holdings Limited (Top Wisdom), to disgorge $353,430,000 which represents the loss they avoided by insider dealing of China Forestry's shares (Notes 1 to 5).
/jlne.ws/3ZrkLcY
SFC-backed launch event garners broad industry support for voluntary code of conduct for ESG ratings and data products providers
SFC
The Securities and Futures Commission's (SFC) senior executives joined more than 200 financial industry participants today to witness the launch of Hong Kong's voluntary code of conduct (VCoC) for environmental, social and governance (ESG) ratings and data products providers (Note 1). The VCoC, published on 3 October to promote higher transparency and quality ESG information for Hong Kong's financial market, has built traction among ESG ratings and data products providers as well as the broader financial industry. As of today, five ESG ratings and data product providers, both international and local, have indicated their intention to sign up for the VCoC (Note 2).
/jlne.ws/3B1qRY8
Profit/loss, net value and exchange gains/losses of the insurance industry in October 2024
FSC
The pre-tax profit of insurance enterprises at the end of October 2024 was NT$329.8 billion; the pre-tax profit of life insurance enterprises was NT$306.3 billion, increasing by NT$126.9 billion, or 70.7% compared to last year, while the pre-tax profit of non-life insurance enterprises was NT$23.5 billion, increasing by NT$9.1 billion or 63.2%.
/jlne.ws/4fOBqg6
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Wall Street's Wins and Losses as 2024 Ends
Simon Kennedy - Bloomberg
US equity futures are gaining with the S&P 500 on course for its strongest month since February, while Chinese stocks rallied with traders hoping for greater economic support at a key policy meeting in December. Wall Street's stock traders are cheering a hall-of-fame bull year, but macro traders are heading for their most miserable year since the pandemic. The dollar is recording its biggest weekly loss in three months as investors rethink the Trump trade.
/jlne.ws/4iczcZO
The vintage year for US stock markets that few people expected
Jan-Patrick Barnert - Bloomberg
A year ago, equity investors and strategists braced for a potential turbulent 2024, worrying about the risk of a hard landing for the US economy and interest rates cuts that could come too late to prevent it. Heading into the year, few anticipated that the S&P 500 (^GSPC) Index's annual gain would be among the best in history. Not many expected another blistering rally fueled by a handful of tech titans and a market sentiment so bullish that one risk event after another got cleared without a scratch.
/jlne.ws/3Zq1yZ8
Demand for options protection against a stock market crash is rising
Saqib Iqbal Ahmed - Reuters
Demand for options protection against an equity market crash is rising, even as a post-election rally takes US stocks to record highs. Worries over the possibility of a contested election dissipated following President-elect Donald Trump's victory earlier this month, helping the S&P 500 climb to an all-time high. The Cboe Volatility Index, one measure of investor anxiety, closed near a post-election low of 14.10 on Tuesday.
/jlne.ws/3ZqKqCw
The Cost of Gold Rattles the Jewelry World; Bold gold pieces are trendy, but makers worry that the steep price increases for the precious metal will soon deter demand.
Victoria Gomelsky - The New York Times
In the 1980s, long before Nadine Aysoy became a jeweler in London, she was a commodities broker in Geneva, trading, among other things, currencies, coffee, cocoa and gold. As a trader, Ms. Aysoy said, she learned something critical about gold: "You need to hedge in this business. Otherwise, you won't make it." Nearly 40 years later, Ms. Aysoy is once again shielding her business from the ups and downs of the gold market, this time as a buyer of the precious metal at a time when its price has been on a steep ascent. Over the past year, gold has broken record after record, reaching a new peak of $2,801.80 per ounce on Oct. 30.
/jlne.ws/4fMUc7Q
BlackRock has deal to buy private credit manager HPS; Transaction for prized lender could cost $12bn and be announced after Thanksgiving holiday
Eric Platt and Brooke Masters in New York, Harriet Agnew in London and Arash Massoudi in San Diego - Financial Times
BlackRock has a handshake deal to buy HPS Investment Partners, as the world's largest asset manager looks to bolster its alternative investment business with the addition of one of the biggest private credit groups on Wall Street. The two sides have agreed on the broad outline of the deal with an eye towards announcing general terms after the Thanksgiving holiday, according to four people with knowledge of the matter.
/jlne.ws/3Zf98o2
U.S. Farmers Are Struggling. They Will Lose More in a Trade War, This Ag Expert Says.
Debbie Carlson - Barron's
American agricultural abundance has fed the world for decades, but in the past few years, that has faltered. Agricultural economist Dan Basse fears that the decline of globalization and an economic and political rift between the U.S. and China puts U.S. farmers on the losing end of these changes. "The split between the G-7 countries and the BRICs likely will culminate in differing trade patterns that work against the U.S. farmer," Basse says, referring to the acronym for Brazil, Russia, India, and China. "There is more ag policy (and geopolitical) uncertainty today than since the early 1970s," he says.
/jlne.ws/3VgxgFD
Lots More on the Coming 20-Year Storm with Viktor Shvets; Is this the '30s and '40s again?
Tracy Alloway and Joe Weisenthal - Bloomberg (podcast)
The election of Donald Trump, with his promise of more tariffs and a much tighter stance on immigration is a source of major macro uncertainty. To some it marks the end of a certain neoliberal consensus about globalization, and the pre-eminent role played by financial markets. According to today's guest, we're at the beginning of a long, turbulent period that may not be resolved for two decades to come. On this episode, we speak with macro strategist Viktor Shvets, and author of the new book, The Twilight Before the Storm: From the Fractured 1930s to Today's Crisis Culture. He talks about the big rethink that's underway on a whole host of issues that pertain to the global economy, starting with trade, and why it will take years for the dust to settle.
/jlne.ws/4fKLPcM
World's Largest Gold Deposit Found, Worth Over US$80 Billion
Mike McRae - Science Alert
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Fireside Friday with... FIX Trading Community's Jim Kaye; The TRADE sits down with Jim Kaye, executive director at the FIX Trading Community, to discuss the evolution of the trading landscape over the past 30 years, boons and banes experienced in the timeframe, and potential shifts that could occur in the next decades to come.
Wesley Bray - The Trade
/jlne.ws/4g9kDUP
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Net zero is making Britain poorer, says Trump's energy secretary; Chris Wright has called embrace of green energy a costly failure that has driven away UK investment
Jonathan Leake - The Telegraph
Donald Trump's pick for US energy secretary has previously attacked Britain's net zero drive for making the country poorer. In a report on sustainability released earlier this year, Chris Wright - who is being proposed for the job by the Trump transition team - said the UK's embrace of green energy had been a costly failure that drove away investment.
/jlne.ws/4eSuehT
BOE Sees Risk of Bond Price Corrections Tied to Green Transition
Greg Ritchie - Bloomberg
Bond markets may be facing sudden price shocks due to a failure to correctly take into account the risks associated with the climate transition, according to the Bank of England. When looking at high-yield bonds with a maturity greater than eight years, the market is only pricing around 50% of the increased default probability expected from a so-called orderly transition scenario across most corporate sectors, the BOE said in its Financial Stability Report on Friday. The mispricing is even more pronounced when taking into account the possibility of a disorderly transition, it said.
/jlne.ws/4fFrw0p
Stockholm Scraps City-Center Ban on Gasoline and Diesel Cars
Lars Paulsson - Bloomberg
Stockholm's plan to ban traditional combustion-engine cars in a central part of the Swedish capital won't go ahead after it was preliminary rejected by the county board. Starting Dec. 31, the city had planned to only allow electric cars, some hybrid trucks and fuel-cell vehicles in an area of about 20 blocks in downtown Stockholm in a bid to crack down on pollution.
/jlne.ws/41aAmPb
TotalEnergies Eyes $750 Million Gas Project in Nigeria to Boost LNG Supplies
Francois De Beaupuy - Bloomberg
French energy major TotalEnergies SE may greenlight a $750 million gas project in Nigeria next year, potentially signaling that the African nation's efforts to revive investment in its hydrocarbon production are making progress. Earlier this year, the French company approved an investment of about $500 million in a joint venture with state-owned Nigerian National Petroleum Co. to develop the Ubeta onshore field. That project with output of 300 million cubic feet per day will boost supply to the Nigerian Liquefied Natural Gas plant.
/jlne.ws/41syUYX
China completes 3,000-km green belt around its biggest desert, state media says
Reuters
China has finished a 46-year campaign to encircle its largest desert with trees, part of national efforts to end desertification and curb the sandstorms that plague parts of the country during the spring, state media reported on Friday. A "green belt" of about 3,000 km (2,000 miles) around the Taklamakan was completed on Thursday in the northwestern region of Xinjiang, after workers planted the final 100 metres of trees on the desert's southern edge, the Communist Party-run People's Daily said.
/jlne.ws/3B3c13j
Strive Asset Management expands into anti-ESG direct indexing; The company, co-founded by Vivek Ramaswamy, has agreements to offer the service via Charles Schwab and Fidelity
Joe Morris - Financial Times
Strive Asset Management is expanding into direct indexing, accelerating its diversification beyond investment products. The company said it had contracted to use Vestmark's Vast turnkey portfolio management technology for the direct-indexing foray, and signed agreements with Fidelity and Charles Schwab to list the service on their platforms.
/jlne.ws/4gcrixN
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Wall Street Macro Traders Head for Worst Year Since the Pandemic; G-10 rates, FX desk revenues set to be the lowest since 2021; Coalition says margin compression is behind performance drop
Alice Atkins and William Shaw - Bloomberg
The world's banks are on track to report the lowest revenue from foreign-exchange and rates trading since the pandemic, hit by tighter margins and a challenging macroeconomic backdrop. Over 250 firms including Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc. and Morgan Stanley are forecast to make a total of $32 billion from trading of Group-of-10 rates and $16.7 billion from currencies, according to data collected by Coalition Greenwich. That's about 17% and 9% less than last year, respectively. Investor confidence in making big macro calls dwindled this year as economic data surprises whiplashed bets on interest-rate cuts from the world's major central banks. A seemingly too-close-to-call US presidential election and the unwind of once-popular yen-funded carry trades also rattled markets.
/jlne.ws/418dGz4
UniCredit Hires Deloitte to Advise on Banco BPM Takeover
Sonia Sirletti - Bloomberg
UniCredit SpA hired Deloitte LLP to advise Italy's second-biggest bank on its takeover bid for Banco BPM SpA, people familiar with the matter said. Milan-based UniCredit is tapping Deloitte for project management office duties, to support its deal preparations including filing of documentation to regulators, the people said. UniCredit is also planning to hire financial advisers, though it hasn't made final choices yet, said the people, who asked not to be named discussing private deliberations. Given the multiple parties involved and possible conflicts of interest for their advisers, several firms wouldn't be suitable, the people said. Bank of America Corp., Jefferies Financial Group Inc., Barclays Plc and Mediobanca aren't exposed to such conflicts and hence could be among the candidates, they said.
/jlne.ws/3OwmtmV
Saudi Wealth Fund's Shifting Focus Hits Budgets on Some Projects; Fund asks some portfolio firms to cut requests by up to 20%
Matthew Martin, Christine Burke, and Zainab Fattah - Bloomberg
Saudi Arabia's sovereign wealth fund is preparing to cut budgets for some local projects for a second year even as it increases overall spending, reflecting the kingdom's shifting priorities in a trillion-dollar plan to overhaul the economy. The Public Investment Fund has asked some portfolio companies to cut their proposed budgets for next year by as much as 20% while some other developments may be accelerated, according to people familiar with the matter, who asked not to be identified discussing private information. The PIF is also reviewing budgets for projects yet to be announced, the people said.
/jlne.ws/4fOFX26
Iran Oil Kingpin's Hedge Fund Is Preparing to Shut London Office; Ocean Leonid was recently suspended by Dubai's free zone; Shamkhani says he has no relationship with the hedge fund
Ben Bartenstein, Nishant Kumar, and Archie Hunter - Bloomberg
A hedge fund that's said to be part of a network overseen by Iranian oil trader Hossein Shamkhani has told its London employees that the firm will go into liquidation, according to people familiar with the matter. Ocean Leonid Investments Ltd. wrote to staff this week that due to license restrictions the company will have to halt its operations in the UK capital, said the people, who requested anonymity as the matter is private.
/jlne.ws/3D1drf9
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | SoftBank Seeks to Buy $1.5 Billion OpenAI Shares From Employees; Japanese company had sought a larger stake in OpenAI; SoftBank CEO aims to invest more in artificial intelligence
Mark Bergen and Min Jeong Lee - Bloomberg
SoftBank Group Corp. aims to increase its stake in OpenAI by acquiring up to $1.5 billion in shares from the startup's employees, according to people familiar with the matter. The Japanese company will make a tender offer for the stock, allowing OpenAI employees to cash in shares if they choose. SoftBank contributed $500 million to OpenAI's $6.6 billion fundraising round in October, but had pushed for a larger allocation at the time, said one of the people, asking not to be named because the negotiations aren't public.
/jlne.ws/3OsMZxL
The Most Hated Way of Firing Someone Is More Popular Than Ever. It's the Age of the PIP; Performance improvement plans are on the rise. Workers dread them. Managers do too.
Lauren Weber and Chip Cutter - The Wall Street Journal
In the messy business of getting rid of employees, the PIP is having a moment. A performance improvement plan is usually a list of tough-to-achieve goals to be completed within 30 to 90 days. Can't shape up? You're out. The percentage of workers who are subject to performance actions, including PIPs, is on the rise. In 2020, 33.4 people for every 1,000 workers had documented performance issues, according to software firm HR Acuity, which conducts an annual survey. In 2023, 43.6 workers out of every 1,000 were involved in formal performance procedures. That includes PIPs and performance counseling, among other measures.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Financial Wellness before the Holidays
SoulGrown
The holiday season is here: the temperatures are cooling, the lights and wreaths are going up, and the store shelves are stocked and ready for holiday buyers. Instead of last-minute rushing through the aisles, prepare your checklist - and your wallet - with these tips and tricks from our friends at Regions Bank. This is a busy time of year for the bank as it helps people build budgets and plan not only for the holidays but also for the year to come.
/jlne.ws/4eQSn8E
Is That Turkey Still Good? Here's how to extend the life of your Thanksgiving leftovers - without getting sick.
Alice Callahan - The New York Times
Q: I enjoy Thanksgiving leftovers even more than the meal on the big day. How long are they safe to eat? Benjamin Chapman, a professor of food safety at North Carolina State University, takes Thanksgiving - and leftovers - seriously. This year, he said, his family's feast will include a 24-pound turkey raised by a local 4-H participant, along with the traditional sides. Then, he added, they won't cook again for days. "We'll be like sloths, and everybody will just go heat something up in the microwave." Dr. Chapman studies food safety for a living, so he has thought carefully about how to make leftovers last. We asked him and other experts for their best tips on this, so everyone can continue to enjoy the spoils of their labor.
/jlne.ws/4icASlV
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | China Keeps Buying US Soy in Surprise Move After Trump's Win
Tarso Veloso, Isis Almeida and Michael Hirtzer - Bloomberg
China is continuing to buy US soybeans, confounding some traders who had expected the flow of shipments to slow down ahead of a potential trade war between both countries. A Chinese state buyer picked up at least eight cargoes last week to build national reserves, according to traders familiar with the sales. Sales equivalent to about two cargoes were also concluded this week, the US Department of Agriculture said in a statement on Wednesday.
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Adani wipeout hurts but won't derail foreign investor faith in India
Ankur Banerjee - Reuters
Worries of a wider spillover from bribery charges against the Adani Group will hurt sentiment in India but not the long-term outlook, global investors say, as they wager one of the world's best-performing markets will get back on track next year. U.S. allegations, denied by the company, are that Gautam Adani's colossal ports-to-energy conglomerate paid bribes to secure power sales and made misleading disclosures, roiling the stocks and debts of Adani companies.
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India banks are reviewing Adani Group exposure after US charges, sources say
Siddhi Nayak, Sarita Chaganti Singh and Nikunj Ohri - Reuters
Indian lenders, including State Bank of India, are reviewing their exposure to Adani Group and examining whether they need to tighten their due diligence when offering new loans to them, after the U.S. accused Chairman Gautam Adani of bribery, eight bankers said. Bank of India, Union Bank, ICICI Bank, Canara Bank, IDBI Bank and RBL Bank, which have a relatively smaller exposure to the group, are also undertaking a similar exercise.
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PBOC Injects $111 Billion of Liquidity as Bond Supply Surges; Issuance of local government debt increased in November; More central bank actions required to meet liquidity needs
Bloomberg News
China boosted its cash injection into the banking system via a recently launched policy tool, in a move designed to ensure sufficient liquidity amid a surge in local government bond sales. The People's Bank of China conducted 800 billion yuan ($111 billion) of outright reverse repurchase agreements in November, according to a statement Friday, exceeding the 500 billion yuan injected last month. The contracts are for three months and are aimed at safeguarding the availability of "reasonably ample" liquidity in the banking system, it said.
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'Production first, safety later': inside the world's largest nickel site; Unions and workers say Indonesia's dominance of the EV supply chain has come at a price
A. Anantha Lakshmi and Diana Mariska in Morowali - Financial Times
On the afternoon of October 25, an explosion ripped through a factory in the massive metals complex at Morowali, a remote region in eastern Indonesia that has in recent years become the centre for the production of nickel, a metal critical to steelmaking and electric vehicle batteries. The blast - at a steel plant owned by a unit of Chinese metals giant Tsingshan Holding Group - sparked a fire and trapped a crane operator called Gunawan. "There's someone inside," screamed a colleague, according to videos of the incident seen by the Financial Times. Some workers prayed while others sobbed as plumes of thick black smoke filled the plant and firefighters tried to douse the fire. Gunawan died later that day.
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France's Biggest Grain Ports Risk More Disruption Due to Strikes
Nayla Razzouk - Bloomberg
A French dock workers union called a series of strikes covering all of the country's ports, potentially slowing grain exports in the European Union's biggest agricultural producer. The National Federation of Ports and Dockers-CGT announced a 48-hour work halt starting Dec. 9 and a suspension of all overtime and special work shifts, according to a statement on Thursday. Four-hour strikes are planned on 10 different days between Jan. 7-31.
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Could the 28th regime transform Europe's financial landscape? The 28th regime offers a potential overhaul of Europe's capital markets with the potential to enhance market integration, reduce fragmentation, and foster cross-border investment - however, it also poses risks, writes Apostolos Thomadakis, research fellow at the European Capital Markets Institute (ECMI).
The Trade blog
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Brazilian real hits all-time low as investors doubt cost-savings plan; Government borrowing costs surge with markets sceptical on package to shore up public finances
Michael Pooler and Philip Stafford - Financial Times
Brazil's currency dropped to a record low on Thursday as a government promise to find R$70bn (US$12bn) in cost savings over the next two years failed to calm investors' nerves over the public finances of Latin America's largest economy. The real fell 1.2 per cent, breaking through the psychologically significant threshold of six to the US dollar for the first time. The yield on the benchmark 10-year government bond rose 0.32 percentage points to 13.52 per cent, the highest since March last year, with markets doubting the efficacy of new spending restraints and tax changes designed to balance the budget.
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Top Copper Miner Chile Gets Back to Pre-Pandemic Output Levels
James Attwood - Bloomberg
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Trump Looms Large Over South Africa's G-20 Presidency
S'thembile Cele - Bloomberg
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Growing Cucumbers in Harsh Desert Highlights Saudi Food-Security Push
Kateryna Kadabashy - Bloomberg
/jlne.ws/3ZrfP7W
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