| November 22, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
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John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
As expected, SEC Chairman Gary Gensler announced he will step down on January 20th ahead of the inauguration of President-elect Donald Trump. In an interview with John Lothian News at FIA EXPO, which you can watch HERE, CFTC Chairman Rostin Behnam said he would work with the White House and hand the reins over to an acting chair ahead of the inauguration, likely one of the two Republican CFTC commissioners.
Meanwhile, in an unexpected move, but one that was predictable, Attorney General Nominee Matt Gaetz removed himself from consideration for the post after increased scrutiny for charges of having had sex with a minor. Gaetz had resigned from Congress to concentrate on the nomination process and avoid a Congressional ethics report from being made public, and he has said he will not be returning to this Congress.
Ignoring policy differences for a moment, it is my opinion that Gary Gensler has been one of the most effective SEC chairmen I have seen while I have written this newsletter. Again, this judgment is not about policy. He has been a highly effective communicator about his policies and positions, using social media and particularly video through his "Office Hours with Gary Gensler" playlist on YouTube.
Gensler does not come across as the ogre that his enemies paint him as, but rather as an intelligent, likable and able communicator. And make no mistake, his enemies paint him, dress him up as a clown, portray him as unlikeable cartoon characters and more. The first response to his tweet was from Elon Musk. How did that happen? But all through that, Gensler and his excellent team continued to communicate well with his office hours and social media efforts.
I never had the opportunity to interview Gensler, either when he was with the CFTC, after he left, or during his SEC tenure. Maybe I will get the chance yet? I doubt it, though.
The world is moving toward direct communication like Gensler's office hours or Trump's bro-podcast interviews. I was lucky to get so many interviews at FIA EXPO - 27 in all over the three days. Chairman Behnam's is the first one. We will also publish an interview with Toit Strategies Dorothy DeWitt, former head of the CFTC's Division of Market Oversight, later today.
Also, today we have a big announcement, a new topic page on JohnLothianNews.com that we will be launching soon, called Auditions. This will be a place for entertainment content creators to introduce to the JLN audience their market-related TV scripts, movie scripts, documentaries, short stories, books and poems.
Mogator Media Capital (Mogator Media Capital), along with writers Daniel F. Sullivan (Pencils with Erasers Podcast) and John Nuckel (JohnNuckel.com), are presenting the first audition, a script for a feature film titled "The Front Runner." Based on a true story from the Chicago Board of Trade, the film chronicles a man's attempt in 1992 to corner the 30-year U.S. Treasury bond futures market, albeit for a brief 15 minutes.
JLN will present the script three pages at a time here and on JohnLothianNews.com under the new Auditions topic page for your reading pleasure. The script will include the actual "stage directions" and "parentheticals." Stage directions provide context for the actions, movements, and emotions of the characters, while parentheticals are used within dialogue to indicate how a line should be delivered. These directions help convey the tone, pacing, and physical activity of the scene to the actors and crew. You will read the real script just as an actor would who was auditioning for a part in the series.
We will publish three pages of "The Front Runner" three times a week, on Monday, Wednesday and Friday, and publish a total of 36 pages of the script.
Here are the headlines from in front of FOW's paywall from some recent stories: Lagarde calls for action to 'break the deadlock' on CMU, CME hits open interest record as total return futures trading spikes, Gensler to resign as SEC chair in January, Foreign exchange growth buoyed OTC notional in the first half - BIS, US regulators should let market direct innovation - CFTC's Mersinger and Third-party AI use has doubled for UK finance firms - BoE.
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:
- Catherine Yoshimoto, Director of Product Management, FTSE Russell, talks with JLN about investing and listing trends from John Lothian News.
- Crypto traders are betting on bitcoin at $174,000 in 2026. What options on BlackRock's bitcoin ETF tell us. from MarketWatch.
- Options traders are chasing the stock-market rally with the S&P 500 near record highs from MarketWatch via MSN. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Rostin Behnam Reflects on Tenure As CFTC Chairman in John Lothian News FIA EXPO Interview
JohnLothianNews.com
In his last video interview with John Lothian News as chairman of the Commodity Futures Trading Commission, Rostin Behnam said he would work with the White House closer to the inauguration to hand the reins of the CFTC over to an acting chair, most likely one of the two Republican members of the commission. He would make sure there was a smooth transition. He said he would leave the CFTC after handing things over.
Watch »
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Introducing "Auditions" - A JLN Topic Page for Market-Related Entertainment Content Creators
JohnLothianNews.com
John Lothian News announces the upcoming launch of "Auditions," a new space on johnlothiannews.com and the John Lothian Newsletter for entertainment content creators to introduce to the JLN audience their market related TV scripts, movie scripts, documentaries, short stories, books and poems. The official launch date is not set, but is coming soon.
Read more »
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Insightful Financial Career Advice and More From Hedge Fund Founder Kevin Jamali
JohnLothianNews.com
In part two of our interview with Kevin Jamali, senior vice president at Farther, he talks about starting Auctos Capital in 2007, which he said was "the next phase" of his career. He had previously started a proprietary trading group on the floor of the CBOT.
Watch »
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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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Spoofing: Futures Discovery EP 17
JohnLothianNews.com
Spoofing is a manipulative strategy where traders place fake orders to create a misleading impression of market demand and supply. This deceptive practice can profoundly impact the integrity of your futures trading journey. Spoofing not only complicates trading but also diminishes market liquidity, leading to wider bid-to-ask spreads and compromised price discovery. For traders, this means it becomes harder to determine the true value of an asset, increasing the risk for clearinghouses and creating unpredictable market behavior.
Watch »
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Americans Say You Need $270,000 Annual Salary to Be Successful; In addition to the yearly income, the threshold for overall net worth is $5.3 million, according to a new survey.
Suzanne Woolley - Bloomberg
The price of success? About $270,000 a year. That's the annual salary it takes to be considered financially successful, according to a survey released Friday by financial services company Empower. The hurdle for net worth is $5.3 million, according to respondents. Those numbers are well beyond the reach of most Americans. The average US salary in 2023 was about $67,000, according to the Social Security Administration, and the mean 401(k) balance at Fidelity Investments as of this year's second quarter this year was $127,100. While home ownership can send one's net worth soaring, affordability remains a major issue for Americans who don't own property.
/jlne.ws/3ZhJNLk
*****That much to be "considered financially successful" is an external judgment of someone else. What do you need to be happy? And that is not all about money.~JJL
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MicroStrategy's Infinite Money Glitch Won't Last; Issuing debt to buy Bitcoin is like a game-breaking bug: lucrative but likely unsustainable.
Lionel Laurent - Bloomberg
"Overheated" is how short-sellers Citron Research described MicroStrategy Inc. on Thursday. That somehow understates the hype surrounding company founder Michael Saylor's laser-eyed bet on Bitcoin using capital-market funding, which has fueled MicroStrategy's stock-price rise of over 600% this year. It looks more like a corporate-finance version of an infinite money glitch in video-games - lucrative, addictive and likely unsustainable. MicroStrategy's core gameplay loop goes something like this: Tap debt and equity markets to raise cash, spend that cash on Bitcoin, watch its shares ride the Bitcoin price higher, go back to markets to raise more cash, rinse and repeat. This is the fun part of any glitch; the license to print huge sums of money that seem to have no bearing on reality. MicroStrategy's average purchase price of Bitcoin is just under $40,000, according to Barclays estimates, and with Bitcoin trading at almost $100,000 its current hoard is worth approximately $24 billion. That is orders of magnitude higher than the $4.3 billion debt on the company's balance sheet - debt being taken on with a 0% coupon via convertible bonds. The company is gearing up to borrow more.
/jlne.ws/3ZiIyeX
******When the onions became worthless, at least the bags were worth something and could be sold. There are no bags here.~JJL
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MicroStrategy Stock's Big Swings Could Be Another Sign of a Looming Market Crash
Ben Levisohn - The Wall Street Journal
The big moves in MicroStrategy stock are just another sign that things may not be quite right with the market. MicroStrategy stock has had a heck of a rally. At Wednesday's peak of $473.83, shares had gained nearly 600% this year, and at its Thursday trading high of $543, it was up 700%, massive moves by anyone's standards. MicroStrategy, though, isn't building the chips that will fuel artificial intelligence, like Nvidia, or getting investors excited about expanding its AI business beyond game apps, like AppLovin, the only stock in the Russell 1000 to gain more than MicroStrategy this year. It sells convertible bonds and equity to raise money to buy Bitcoin. When Bitcoin goes up, MicroStrategy goes up-and Bitcoin has been going up a lot.
/jlne.ws/4fXleJ7
****** I don't give market direction advice. But Ben does.~JJL
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Oil Trader Rides Miami Mansion Boom Seeking $78 Million in Sale
Felipe Marques - Bloomberg
Mark Fisher made a four-decade career out of trading commodities, forged in the same pits that hardened Paul Tudor Jones and Louis Bacon. For his next big trade, he's seizing on South Florida's surging market for luxury real estate. Fisher's asking $78 million for the nine-bedroom waterfront mansion he built at Bal Harbour, a wealthy enclave near Miami. He paid $9 million for the lot in 2013, property records show, then tore down a small multifamily building to make way for his massive 21,972 square-foot (2,041 square-meter) compound.
/jlne.ws/490B0AI
****** JLN Reader wants to move out of the neighborhood and make a nice profit.~JJL
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Thursday's Top Three
Our top story Thursday was 'The Most Hated Guy On Wall Street': The Unspoken Story Around Howard Lutnick, Trump's Pick for Commerce Secretary, from Forbes (paywalled). Second was a tie between The Wall Street Journal's Musk, Ramaswamy Want Federal Workers in the Office Full Time. There's a Hitch. and The New York Post's Elon Musk and Vivek Ramaswamy suggest DOGE will end work-from-home for federal employees. Third was Elon Musk and Vivek Ramaswamy float ending remote work for federal employees and 'large-scale firings', from NBC News.
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| Lead Stories | High-Frequency Trading Causes More Liquidity Shortages, BIS Says; Stocks, bonds see illiquidity episodes increase in frequency; Researchers point to factors including algos and fragmentation
Alice Atkins - Bloomberg
Financial markets have become more susceptible to liquidity shortages with the rise of algorithmic trading and increased market fragmentation, according to the Bank for International Settlements. The institution analyzed 25 years worth of high-frequency trading data across asset classes in the US, Europe and Japan and concluded that markets have become more fragile even as liquidity on average improved. The BIS said sudden bursts of wild price swings and flash crash events are more frequent now, and the main reasons for that are the advance of electronic trading and the increased market fragmentation. Equities in particular have become more splintered, as evidenced by traditional exchanges significantly losing market share, the researchers said.
/jlne.ws/4fB7jsD
CFTC Advisers Recommend Use of Tokenized Assets as Collateral; Advisory committee approves tokenized non-cash collateral; The approval will inform future rule-making by the CFTC
Olga Kharif - Bloomberg
The use of money-market fund tokens from the likes of BlackRock Inc. and Franklin Templeton as collateral in traditional derivatives trades inched closer to reality on Thursday. The Global Markets Advisory Committee of the Commodity Futures Trading Commission voted to approve use of tokenized non-cash collateral and to send its recommendations to the full CFTC. The recommendations don't have the force of official policy until the commission incorporates them into future guidance or rule-making. The agency can decide how and whether to use the recommendations, but because the advisory committees provide relevant expertise, their recommendations often are used by the CFTC. There's no specific timeline for the agency's adoption of the recommendations.
/jlne.ws/3YVzXNY
Cboe to Launch the First Cash-Settled Options Product Related to Spot Bitcoin, Beginning Monday, December 2
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced plans to launch the first cash-settled index options related to the price of spot Bitcoin beginning Monday, December 2. Exclusively listed and traded on Cboe Options Exchange, these options will be SEC-regulated and based on the new Cboe Bitcoin U.S. ETF Index (Ticker: CBTX). The Cboe Bitcoin U.S. ETF Index, jointly developed by Cboe Labs and Cboe Global Indices, is the market's first U.S. spot Bitcoin ETF index. This modified market cap-weighted index is designed to track the performance of a basket of spot Bitcoin ETFs listed in the U.S. Moreover, it is designed to correlate to the price of spot Bitcoin, making it a representative measure of the asset.
/jlne.ws/4fDAvPB
Ken Griffin Rules Out Citadel Securities IPO in 'Foreseeable Future'
Katherine Doherty - Bloomberg
Citadel Securities founder Ken Griffin said the market-making firm won't go public anytime soon amid the "quilt work" of regulatory burdens put on listed firms. "We are not focused on going public in the foreseeable future," Griffin said in an interview at the Economic Club of New York. "We're focused on building the business, on investing in our future. And we do believe that there are benefits to being private during this period of very, very rapid growth."
/jlne.ws/3CDwxYF
Big Banks Bet Trump Will Make the Best of Times Even Better
Max Abelson and Hannah Levitt - Bloomberg Markets
You wouldn't have known JPMorgan Chase & Co. (JPM) had just reported its best quarter by the way Jamie Dimon talked about his competition in July 2023. "They're dancing in the streets," the chief executive officer said, referring to hedge funds and private equity firms that were piling into the lending business as banks like his faced higher capital requirements. When Donald Trump won a return to the White House, it was the financiers' turn to boogie. "A lot of bankers, they're, like, dancing in the street," Dimon told CEOs at a global summit on Nov. 14. "They've had successive years and years of regulations, a lot of which stymied credit."
/jlne.ws/4fUpIQI
Globalisation is not dead - it's just changed; What happens next does not depend on the US alone, we are seeing a shift to a multipolar world
Gillian Tett - Financial Times (opinion)
Last month, Sergio Ermotti, head of UBS, issued a stark warning on these pages. "For most of my nearly 50 years in finance, markets operated on the assumption that global capital would flow with increasing ease...fostering growth, innovation and improved standards of living." However, "that dynamic is now being upended", he lamented. "Trade tensions between the US and China have led to declines in the flows of goods, services, investments, and labour." It is easy to see why he and others are worried. The electoral triumph of Donald Trump leaves America in the charge of a man who considers "tariff" to be a "beautiful word". This week Luiz Inacio Lula da Silva, president of Brazil, declared that "neoliberal globalisation has failed". Christine Lagarde, president of the European Central Bank, warns that "we are witnessing a fragmentation of the global economy into competing blocs", while the latest World Economic Outlook from the IMF centres on the risks of protectionism.
/jlne.ws/3ZiFBuT
Charles Schwab Eyes Spot Crypto Trading Once Regulations Change
Paige Smith - Bloomberg
Charles Schwab Corp.'s incoming chief executive officer, Rick Wurster, said the firm is looking to offer spot cryptocurrency trading once US regulations make doing so easier - something that's more likely once President-elect Donald Trump takes office. "We will get into spot crypto when the regulatory environment changes, and we do anticipate that it will change, and we're getting ready for that eventuality," Wurster, currently Schwab's president, said in a Bloomberg Radio interview Thursday.
/jlne.ws/3CPjSSp
SNB's Equity Too Small for Balance Sheet Risks, Schlegel Says
Bastian Benrath-Wright - Bloomberg
The Swiss National Bank's equity is at the moment considerably too low for the risks its large balance sheet poses, according to President Martin Schlegel. Extending the central bank's capital base must therefore be prioritized over distributing profits to Switzerland's government and cantons, Schlegel told an audience of economists on Friday in Zurich.
/jlne.ws/4924Rc1
US Probes JPMorgan's Ties to Iranian Oil Kingpin's Hedge Fund; Regulators said to look at bank's ties to Ocean Leonid fund; JPMorgan is among banks that offered hedge fund leverage
Ben Bartenstein - Bloomberg
The US Treasury Department is examining JPMorgan Chase & Co.'s relationship with a hedge fund that's said to be part of a network overseen by Iranian oil trader Hossein Shamkhani. The probe is at an early stage as the agency scrutinizes whether the New York-based bank complied with all rules and regulations when it took on Ocean Leonid Investments Ltd. as a client, according to people familiar with the matter, who requested anonymity as the information isn't public. The entity was recently suspended by Dubai's financial free zone.
/jlne.ws/4g1WwHU
A Miami Financier Is Quietly Trying to Buy Nord Stream 2 Gas Pipeline; Stephen P. Lynch, who prefers to stay under the radar, says a deal for the Russian pipeline would serve long-term U.S. interests
Christopher M. Matthews - The Wall Street Journal
An American investor with a history of dealmaking in Russia has asked the U.S. government to allow him to bid on the sabotaged Nord Stream Pipeline 2 if it comes up for auction in a Swiss bankruptcy proceeding. Stephen P. Lynch spent two decades doing business in Moscow and now wants to buy the natural-gas pipeline that runs from Russia to Germany. He has argued to U.S. officials and lawmakers that American ownership of the pipeline would provide leverage in any peace negotiations with Russia to end the war in Ukraine and serve U.S. long-term interests.
/jlne.ws/3Oswkdn
Large Accounting Firms Will Have to Submit Financial Statements to U.S. Regulator; The U.S. auditing watchdog voted to require certain audit firms to disclose eight new metrics ranging from auditor turnover to partner involvement and restatement history
Mark Maurer - The Wall Street Journal
Large accounting firms will have to submit financial statements annually to the U.S. audit regulator for the first time, among new requirements that have faced pushback from auditors but have received support from many investors. The Public Company Accounting Oversight Board on Thursday voted 4-1 to bolster the rules around firms' reporting annually and for special circumstances, such as a filed lawsuit or private-equity investment. The U.S. audit watchdog also voted 4-1 on a separate rule to require hundreds of firms to publicly disclose a set of eight metrics, ranging from auditor turnover to partner involvement, workload and work experience.
/jlne.ws/3APqP5z
The High Risk, High Reward Trump Market; Faced with unconventional and disruptive proposals, investors are figuring out how to place their bets.
Jeff Sommer - The New York Times
Markets abhor uncertainty. That bit of Wall Street wisdom helps explain their ebb and flow since Donald J. Trump's victory on Election Day, and even earlier. Stocks and bond yields began rising early in October, when Wall Street concluded that Mr. Trump would win. The market surge accelerated after Election Day.
/jlne.ws/4eL9Wa7
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Trump may be right about Ukraine's endgame; If they play their cards well, leaders across Europe can exert leverage on America over how to end the war
Alec Russell - Financial Times (opinion)
It is a millennia-old cliche of soldiering that you spend the majority of your time waiting around, interrupted by brief spasms of action. The same can be true of diplomacy. For a year now all parties to the war in Ukraine have been awaiting the results of the US election. Donald Trump's commanding victory has ended that limbo - and supercharged thinking about an endgame in Ukraine.
/jlne.ws/4ifgqRF
The US is ramping up sanctions by targeting the last major Russian bank not yet blacklisted
Filip De Mott - Business Insider
Washington is clamping down on Gazprombank, Russia's last major lender operating free of US sanctions. Though the bank's key role in energy markets has shielded it from US restrictions so far, the Treasury Department changed its tune on Thursday. The announced sanctions will target Gazprombank and its six international subsidiaries, effectively barring the state-owned dealer from participating in global finance. Up until this point, Washington refrained from sanctions in order to maintain gas flows between Russia and remaining European customers.
/jlne.ws/3AV1QO6
Ukraine says new missile fired by Russia flew for 15 minutes, faster than Mach 11
Reuters
The Russian missile that struck the Ukrainian city of Dnipro on Thursday flew for 15 minutes and reached a maximum speed of beyond Mach 11, Kyiv's top spy agency said on Friday. Russian President Vladimir Putin said on Thursday that Moscow struck a Ukrainian military facility with a new medium-range, hypersonic ballistic missile known as "Oreshnik".
/jlne.ws/4eMgWTY
Ukraine's Parliament Cancels Session Amid New Attack Threat; Move comes after Moscow fired experimental missile at Ukraine; Plenary session to resume next week, according to lawmakers
Olesia Safronova - Bloomberg
Ukraine's parliament canceled Friday's plenary session due to the threat of a possible air attack on Kyiv's government district, according to lawmakers. The country is on high alert after Russia launched a "new" kind of ballistic missile at the city of Dnipro on Thursday, the latest escalation of hostilities in the long-running war. In the run-up to that attack, several embassies in the Ukrainian capital issued alerts and temporarily closed due to extraordinary risks.
/jlne.ws/4eO4Klz
US Warns American Defense Firms of Russian Sabotage Threat; Alert follows foiled Russian plot to assassinate German CEO; Moscow suspected of hiring criminals to commit sabotage
Natalia Drozdiak - Bloomberg
American defense firms should be alert for Russian actors sabotaging their operations at home and abroad as Moscow seeks to undermine support for Ukraine, US intelligence and national security agencies said Thursday. Russian intelligence groups may try to identify and recruit defense industrial base "insiders," the agencies said. That includes outside individuals eliciting information from staff or unusual loitering by unauthorized personnel, they said.
/jlne.ws/4eDrFjL
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israelis rally around war effort after ICC issues warrant for Benjamin Netanyahu; Decision to seek prime minister's arrest provokes rare display of unity in politically polarised country
James Shotter in Jerusalem and Neri Zilber in Tel Aviv - Financial Times
Israelis across the political divide lashed out at the International Criminal Court after it issued an arrest warrant for Prime Minister Benjamin Netanyahu, a rare display of unity in the politically polarised country. The warrants allege the premier and his former defence minister Yoav Gallant bear responsibility for crimes against humanity and war crimes over Israel's offensive in Gaza. It marks the first time the 22-year-old court has sought to arrest the leader of a western-backed country.
/jlne.ws/410lB1j
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | CME Group Adjusted Interest Rate Total Return Futures Reach Record Open Interest, Volume
CME Group
CME Group, the world's leading derivatives marketplace, today announced that its suite of Adjusted Interest Rate (AIR) Total Return futures reached an open interest (OI) record of 710,358 contracts (equivalent to $224 billion notional) on November 20. In addition, AIR Total Return futures average daily volume (ADV) stands at a record 11,600 contracts for 2024, up 152% year-over-year.
/jlne.ws/4901xhw
Performance Bond Requirements: Energy, Equity, and Metal Margins - Effective November 22, 2024
CME Clearing
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below. The rates will be effective after the close of business on November 22, 2024.
/jlne.ws/3OkirxV
Performance Bond Requirements: Interest Rate Margins - Effective November 22, 2024
CME Clearing
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below. The rates will be effective after the close of business on November 22, 2024.
/jlne.ws/40YvCfq
HKEX Appoints Group Chief Sustainability Officer and Group Chief Communications Officer
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Friday) the appointments of Mr Paul Chow as Group Chief Sustainability Officer, and Mr Jeffrey Ng as Group Chief Communications Officer. In this newly-created role, Mr Chow will be responsible for driving the development of sustainability strategies that align with HKEX's purpose and long-term goals, ensuring that environmental, social, and governance (ESG) considerations are incorporated into all aspects of HKEX's operations, policies, and culture. He will have oversight of HKEX's sustainability division and initiatives, including the Core Climate carbon marketplace. Mr Chow will also continue in his existing role leading the Group's legal and secretarial services functions as Group General Counsel.
/jlne.ws/3Zk82so
EasyETFs Launches Pioneering AMETFs Through Unit Trust Conversion on the JSE
JSE
These newly formed AMETFs combine the benefits of transparency, cost-efficiency and accessibility, representing a significant advancement in EasyETFs' commitment to making active investment strategies more democratic. These EasyETFs AMETFs will continue to uphold the investment objectives of their predecessor unit trusts.
/jlne.ws/3ZjijVO
Remembering Bill Navin, OCC's former Executive Vice President, General Counsel and Chief Legal Officer
OCC
OCC joins the legal and options community in mourning the passing of William "Bill" Navin, former Executive Vice President, General Counsel, and Chief Legal Officer of OCC. Bill's journey with OCC began in 1999, but his connection to the organization dates back to its founding in 1973 when he served as outside counsel with Schiff Hardin & Waite. A partner at Schiff, Bill was instrumental in shaping OCC's legal framework and served as a trusted advisor and advocate for decades. His impact extended beyond his official duties, profoundly influencing the lives and careers of countless current and former OCC employees until his retirement in 2012.
/jlne.ws/4g06ZU1
TMX Group Limited Provides Shareholder Update on Impact of Canadian Union of Postal Workers Strike
TMX
TMX Group Limited (TSX:X) (TMX Group) is providing an update to shareholders on the impact of the Canadian Union of Postal Workers' strike action on the company's ability to comply with obligations to deliver to shareholders its financial statements and related items for the period ended September 30, 2024 (the Q3 2024 Report to Shareholders).
/jlne.ws/3ZjZwtB
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Klarna's Planned IPO Sets the Stage for More Fintech Listings; Trustly, Chime, Zilch among candidates for a stock listing; Sector stocks have bounced back after painful IPO losses
Anna Irrera and Pablo Mayo Cerqueiro - Bloomberg
Klarna Bank AB's planned initial public offering is fueling hopes that a long drought of fintech listings may be coming to an end, heralding a wave of debuts for the sector over the next couple of years. The Swedish buy-now, pay-later giant plans to go public in New York during the first half of next year, Bloomberg has reported. A successful listing - coupled with rising share prices and the prospect of lighter regulation during a second Donald Trump presidency - could finally prompt some of Klarna's peers to do the same, according to bankers, venture capitalists and analysts.
/jlne.ws/3V30Pu9
US Justice Department Seeks to Unwind Google's Anthropic Deal; Google pledged to invest $2 billion in OpenAI rival last year
Josh Sisco and Leah Nylen - Bloomberg
Alphabet Inc.'s Google would be forced to unwind its partnership with artificial intelligence startup Anthropic if a federal judge accepts the US Justice Department's proposal to resolve a landmark antitrust case over online search. The Justice Department and a group of attorneys general recommended in a court filing Wednesday that Google be barred from acquiring, investing in or collaborating with any company that controls where consumers search for information, including query-based AI products. The provision is intended to apply to Google's Anthropic investment, according to people familiar with the Justice Department's thinking who spoke on condition of anonymity to discuss private information.
/jlne.ws/3Ol5svX
Amazon Investing an Additional $4 Billion in AI Firm Anthropic
Matt Day - Bloomberg
Amazon.com Inc. is boosting its stake in OpenAI rival Anthropic, builder of the Claude generative artificial intelligence software. The cloud-computing giant is pumping an additional $4 billion into the San Francisco startup, Amazon said in a statement on Friday.
/jlne.ws/3OmByHW
Apple Readies More Conversational Siri in Bid to Catch Up in AI
Mark Gurman - Bloomberg
Apple Inc. is racing to develop a more conversational version of its Siri digital assistant, aiming to catch up with OpenAI's ChatGPT and other voice services, according to people with knowledge of the matter. The new Siri, details of which haven't been reported, uses more advanced large language models, or LLMs, to allow for back-and-forth conversations, said the people, who asked not to be identified because the effort hasn't been announced. The system also can handle more sophisticated requests in a quicker fashion, they said.
/jlne.ws/3OlAPXh
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| Cybersecurity | | Top stories for cybersecurity | Five Things The C-Suite Gets Wrong About Cybersecurity
Ben Tercha - Forbes
For too long, businesses have left the burden of security solely to IT managers and/or outsourced service providers-often bearing little to no responsibility or oversight for the company's risk management efforts. While we've started to see the traditional silos between operations and technology come down, too many C-suite executives continue to misunderstand or underestimate the true scope and importance of cybersecurity, failing to grasp how profoundly a robust risk management strategy can safeguard not just IT infrastructure, but the company's financial stability and reputation.
/jlne.ws/3AKBD50
CISA Red Team assessment reveals key cybersecurity gaps in critical infrastructure organization
Industrial Cyber
The Cybersecurity and Infrastructure Security Agency (CISA) executed a red team assessment on a critical infrastructure organization, simulating real-world cyber attacks to test the organization's cybersecurity detection and response. On Thursday, in partnership with the critical infrastructure organization, the CISA Red Team released a cybersecurity advisory detailing the Red Team's tactics, techniques, and procedures (TTPs), along with network defense strategies. The advisory also provides key findings and lessons to help network defenders and software manufacturers strengthen cybersecurity.
/jlne.ws/3AUgBAM
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| Cryptocurrencies | | Top stories for cryptocurrencies | Coinbase Eyes More Acquisitions as It Expands Payments Business; It's also considering new ways of making money off payments; The crypto exchange recently acquired startup Utopia Labs
Olga Kharif - Bloomberg
Coinbase Global Inc. is ramping up its efforts in the digital-payments space, with ambitions to make additional acquisitions and generate more revenue from the business line. The biggest US crypto exchange acquired payments startup Utopia Labs' team this month, and it may buy more payments-related businesses to expand its capabilities, according to Shan Aggarwal, Coinbase's vice president of corporate and business development. The company is also considering charging fees for some payment services in Coinbase Wallet, such as subscriptions for certain capabilities, Aggarwal said in an interview.
/jlne.ws/4fC9z2U
Crypto Tokens Targeted by US SEC Jump on Gensler's Planned Exit
Sidhartha Shukla and Suvashree Ghosh - Bloomberg
Digital assets flagged as unregistered securities by the US Securities and Exchange Commission are rallying after the agency's Chair Gary Gensler, the industry's bete noire, announced that he plans to step down. Crypto supporter Donald Trump had vowed to fire Gensler, who now intends to exit in January on the day the president-elect is due to be inaugurated. Gensler is a trenchant critic of alleged non-compliance and risky practices in the digital-asset sector, which two years ago was disgraced by spectacular blowups.
/jlne.ws/4hZWUIq
The crypto companies jostling for seats on Trump's promised policy council
Hannah Lang - Reuters
A slew of crypto companies including Ripple, Kraken and Circle are jostling for a seat on President-elect Donald Trump's promised crypto advisory council, seeking a say in his planned overhaul of U.S. policy, according to several digital asset industry executives. Campaigning at a July bitcoin conference in Nashville, Trump promised a new council as part of a crypto-friendly administration. His transition team is discussing how to structure and staff it, and which companies should be included, the people said.
/jlne.ws/3V5KvsC
Can Trump really pay off the US national debt with bitcoin? And will Betteridge's law finally be defeated???
Toby Nangle - Financial Times
"The press takes him literally, but not seriously; his supporters take him seriously, but not literally." So wrote Salena Zito, back in September 2016, of Donald Trump's first presidential campaign. It was a neat way to sweep aside alarmist takes coming from people analysing his actual statements. But when the once-and-future-President makes statements about the future it seems rash to rule out the possibility that he's telling the truth. In July this year, Trump promised the Bitcoin 2024 conference that he would create a "strategic national Bitcoin reserve".
/jlne.ws/3CGwco8
Pythagoras Crypto Fund Returns 230% to Outpace Bitcoin's Rally; Small fund was launched shortly before Bitcoin ETFs debuted; The long-biased strategy relies on trend-following, leverage
Vildana Hajric - Bloomberg
Mitchell Dong spied an opportunity late last year: Spot-Bitcoin ETFs were coming to US investors soon, and he wanted his crypto hedge fund to offer a competing product that performed even better. Just weeks before Bitcoin funds got regulatory approval to start trading in January, his Pythagoras Investment Management launched its Alpha Long Biased strategy, a vehicle that looks to outperform the original cryptocurrency. It's been nearly a year since the launch and the fund has beaten Bitcoin every single month except two, with year-to-date gains of around 230%, or 206% after fees.
/jlne.ws/492FSFw
Goldman Gives the Blockchain Revolution a Home; The bank's digital-assets platform may not gain traction, but we will increasingly trade financial instruments using the technology that underpins Bitcoin.
Aaron Brown - Bloomberg (opinion)
Aaron Brown is a former head of financial market research at AQR Capital Management. He is also an active crypto investor, and has venture capital investments and advisory ties with crypto firms.
Most important advances in technology occur when someone combines a variety of innovations in different fields in a commercially successful way. Bitcoin is an exception, a revolutionary advance that people have spent the last 15 years cannibalizing for parts to use in other projects. It's as if someone built the first automobile from scratch and then left it for others to pick apart: the engine, transmission and steering mechanism all separated and used in other devices.
/jlne.ws/3OkEfcQ
MicroStrategy's Infinite Money Glitch Won't Last; Issuing debt to buy Bitcoin is like a game-breaking bug: lucrative but likely unsustainable.
Lionel Laurent - Bloomberg Opinion
"Overheated" is how short-sellers Citron Research described MicroStrategy Inc. on Thursday. That somehow understates the hype surrounding company founder Michael Saylor's laser-eyed bet on Bitcoin using capital-market funding, which has fueled MicroStrategy's stock-price rise of over 600% this year. It looks more like a corporate-finance version of an infinite money glitch in video-games - lucrative, addictive and likely unsustainable.
/jlne.ws/4fFa6AT
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| Politics | | An overview of politics as it relates to the financial markets | Donald Trump narrows in on Marc Rowan for Treasury secretary
Steff Chavez - Financial Times
Marc Rowan has become Donald Trump's shiny new economic toy. He suddenly emerged as a top contender for Treasury secretary, and rushed back from Hong Kong to meet Trump in Florida yesterday to make his pitch for the crucial role [free to read]. Rowan, chief executive of private equity firm Apollo Global Management, prepared extensively for his interview and has the support of some top Wall Street donors and Trump confidantes, according to people familiar with the situation.
/jlne.ws/410jbA6
Who Are These Federal Workers Trump Wants to Fire? The civilian workforce has barely grown in recent decades, is scattered across the country and accounts for a small fraction of US spending.
Justin Fox - Bloomberg Opinion
Federal workers are uncomfortably in the spotlight, with President-elect Donald Trump threatening to strip civil-service protections from tens of thousands of them and Vivek Ramaswamy, co-chairman of Trump's planned "Department of Government Efficiency," having suggested that cutting a million federal jobs within a year is a reasonable target.
/jlne.ws/3Zix0Iz
Texas governor orders state agencies to sell China assets
Reuters
The governor of Texas ordered state agencies to stop investing in China and sell assets there as soon as possible, citing financial and security risks, a sign of rising U.S.-China tensions starting to impact global capital flows. In a letter to state agencies dated Nov. 21 and posted to his website, Republican Greg Abbott said "belligerent actions" of China's ruling Communist Party had increased risks to Texas' investments in China, and told investors to get out.
/jlne.ws/4fYmbkG
US bars more imports over China's alleged forced labor
Reuters
The United States banned imports from more companies over China's alleged forced labor involving the Uyghurs, according to a government notice posted online on Friday. The new additions, published in the Federal Register, are part of the federal government's effort to eliminate forced labor practices in the U.S. supply chain.
/jlne.ws/4eKM5qO
Extremists on Telegram Pose as Fight Clubs, Raising Alarms in US; US government received briefings on white-supremacist groups; Martial arts, hiking trips seen as ways to recruit new members
Jeff Stone - Bloomberg
White-supremacist groups are escalating efforts to recruit new members over the Telegram social media app, where they've amplified racist conspiracies while posing as men-only fight clubs. Communications from so-called Active Clubs surged on Telegram over the past month, as the US election neared, according to civil rights groups and researchers who have studied extremism for years. Some clubs with large followings have shared each others' messages in a sign of coordination among cells that have previously portrayed themselves as independent.
/jlne.ws/3Zkuq4M
Donald Trump's Most Dangerous Cabinet Pick; Pete Hegseth considers himself to be at war with basically everybody to Trump's left, and it is by no means clear that he means war metaphorically.
Jonathan Chait - The Atlantic
For a few hours, Pete Hegseth's nomination as secretary of defense was the most disturbing act of Donald Trump's presidential transition. Surely the Senate wouldn't confirm an angry Fox News talking head with no serious managerial experience, best known for publicly defending war criminals, to run the largest department in the federal government. Then, in rapid succession, Trump announced appointments for Matt Gaetz, Tulsi Gabbard, and Robert F. Kennedy Jr. The appearance of these newer and even more aberrant characters, like a television show introducing a more villainous heel in its second season, muted the indignation over Hegseth.
/jlne.ws/4fHCRgC
Brazilian police indict former President Bolsonaro and aides over alleged 2022 coup attempt
Gabriela Sa Pessoa and Mauricio Savarese - AP
Brazil's federal police said Thursday they indicted former President Jair Bolsonaro and 36 other people for allegedly attempting a coup to keep him in office after his defeat in the 2022 elections. Police said their sealed findings were being delivered Thursday to Brazil's Supreme Court, which will refer them to Prosecutor-General Paulo Gonet, who decides either to formally charge Bolsonaro and put him on trial, or toss the investigation.
/jlne.ws/3OlmRVn
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| Regulation & Enforcement | | Stories about regulation and the law. | US suspends controversial asset-forfeiture program targeting airline travelers
Sarah N. Lynch - Reuters
The U.S. deputy attorney general has suspended a controversial civil asset-forfeiture program by the Drug Enforcement Administration that targeted unsuspecting airline passengers and subjected them to potentially unlawful seizures of cash from their bags. The Justice Department's inspector general, Michael Horowitz, announced the suspension of the DEA's program by Deputy Attorney General Lisa Monaco in a new report released on Thursday that raised grave concerns about the program and questioned whether some of the searches were conducted legally.
/jlne.ws/4fXogNH
Three BofA India Bankers Leave Amid Probe on Stock Offerings
Preeti Singh - Bloomberg
Three dealmakers from Bank of America Corp. in India have left the company amid an internal investigation on allegations of wrongdoing involving stock offerings, according to people familiar with the matter. The bankers involved are Debasish Purohit, co-head of investment banking at BofA's India operation; Subhrajit Roy, country head of global capital markets; and Vikram Khaitan, a director in investment banking in India, the people said, asking not to be named because they're not authorized to speak with media. BofA is still reviewing possible replacements, the people added.
/jlne.ws/4i4KGhZ
Federal Reserve Board issues enforcement action with former chief executive officer of Heartland Tri-State Bank
Federal Reserve Board
The Federal Reserve Board on Thursday announced that it had prohibited Shan Hanes from future participation in the banking industry. Hanes is the former chief executive officer of Heartland Tri-State Bank and used his position to embezzle $47.1 million of bank funds in a cryptocurrency scheme that led to the bank becoming insolvent and failing in July 2023.
/jlne.ws/3OlhVjc
Live news: UK competition regulator poised to launch new probe into Apple and Google
Tim Bradshaw - Financial Times
The UK's competition regulator is poised to launch a new probe into Apple and Google after a report found they were "holding back innovation" in mobile phone browsers. The Competition and Markets Authority provisionally found that Apple's rules made it harder for rival browser makers to offer new features, while app makers were frustrated with the iPhone browser's speed and capabilities. The inquiry found that a revenue-sharing agreement between Google and Apple "significantly reduces their financial incentives to compete in mobile browsers on iOS". The CMA said it would listen to feedback before deciding whether to launch a full investigation.
/jlne.ws/4eHPqHd
CFTC's Global Markets Advisory Committee Advances Recommendation on Tokenized Non-Cash Collateral
CFTC
The Commodity Futures Trading Commission's Global Markets Advisory Committee, sponsored by Commissioner Caroline D. Pham, today advanced a recommendation to expand the use of non-cash collateral through the use of distributed ledger technology. The GMAC's Digital Asset Markets Subcommittee also presented on the progress of its Utility Tokens workstream.
/jlne.ws/3CEYZtj
SEC Chair Gensler to Depart Agency on January 20; Gensler implemented reforms to enhance efficiency, resiliency, and integrity in U.S. capital markets; agency held wrongdoers accountable and returned billions to harmed investors.
SEC
The Securities and Exchange Commission today announced that its 33rd Chair, Gary Gensler, will step down from the Commission effective at 12:00 pm on January 20, 2025. Chair Gensler began his tenure on April 17, 2021, in the immediate aftermath of the GameStop market events. He led the agency through a robust rulemaking agenda to enhance efficiency, resiliency, and integrity in the U.S. capital markets. He also oversaw high-impact enforcement cases to hold wrongdoers accountable and return billions to harmed investors.
/jlne.ws/4i40VMi
Statement on the Departure of SEC Chair Gensler
Commissioner Jaime Lizarraga - SEC
It has been an honor to serve with Chair Gensler. Over the past 25 years that I've known and worked with Gary, he has demonstrated an unwavering commitment to public service. At the SEC, he advanced an agenda that strengthened investor protections and the resiliency of our capital markets. I am proud of all that we accomplished together on behalf of the investing public and wish him the best in his future endeavors.
/jlne.ws/3B5H7ap
SEC Charges Advisory Firm La Mancha and its Owner David Kushner with Fraud; Defendants, who purported to make business loans, including to professional athletes, allegedly stole investor funds to pay for personal expenses
SEC
The Securities and Exchange Commission today charged David Kushner, a resident of Boca Raton, Florida, and his company La Mancha Funding Corp. with defrauding nearly two dozen investors out of approximately $2.1 million in a series of private securities offerings. Kushner is La Mancha's president and sole owner.
/jlne.ws/4i3mk7Y
SEC Charges Petaluma, California-Based Investment Adviser for Conducting Fraudulent "Cherry-Picking" Scheme
SEC
The Securities and Exchange Commission today charged James Burleson, the majority owner and principal of Burleson & Company, LLC, a formerly SEC-registered investment adviser based in Petaluma, California, with defrauding clients by conducting a cherry-picking scheme.
/jlne.ws/3ZiOoNz
SEC Charges Three Senior Executives in Two Actions Alleging Massive Bribery Scheme Involving Indian Energy Companies Adani Green and Azure Power
SEC
On November 20, 2024, the Securities and Exchange Commission charged Gautam Adani and Sagar Adani, executives of Adani Green Energy Ltd., and Cyril Cabanes, an executive of Azure Power Global Ltd., for conduct arising out of a massive bribery scheme. According to the SEC's allegations, the bribery scheme was orchestrated to enable the two renewable energy companies to capitalize on a multi-billion-dollar solar energy project that the companies had been awarded by the Indian government. During the alleged scheme, Adani Green raised more than $175 million from U.S. investors and Azure Power's stock was traded on the New York Stock Exchange.
/jlne.ws/3CP4C88
Financial Services and Credit Panel issues registration suspension order
ASIC
The Financial Services and Credit Panel (FSCP) has made an order to suspend the registration of financial adviser Ian Reid for three months from 21 November 2024. Mr Reid's financial adviser registration is not in force during the suspension period and he must not provide personal advice to retail clients in relation to relevant financial products. The FSCP found Mr Reid had not complied with his obligations when providing advice to three clients. Mr Reid used records of advice (ROA) that relied on statements of advice (SOA) that had been given to the clients up to seven years ago.
/jlne.ws/3V7WAh1
ASIC extends arrangements to streamline insurance payments in emergency situations
ASIC
ASIC has extended the legislative relief that allows insurers and their representatives to give emergency payments to consumers, in certain circumstances, without first giving them a Cash Settlement Fact Sheet (CSFS). The initial relief formally came into effect on 11 February 2022 and is due to expire on 11 February 2025.
/jlne.ws/4fErxl4
FCA calls for firms to improve bereavement handling times and shares best practice
FCA
The FCA has found that while life insurers provide good service to bereaved customers, they need to settle claims quicker and improve how they measure customer experience. The multi-firm review found evidence of good practice, such as firms providing additional support for claimants throughout what is a difficult time for them. The FCA also recognises firms can face challenges in providing a timely service, such as obtaining the evidence needed to assess a claim.
/jlne.ws/3AWWqCh
Publication of statistics regarding over-the-counter (OTC) derivative transactions (as of March 31, 2024)
FSA
The FSA published the over-the-counter (OTC) derivatives report as of March 31, 2024, pursuant to the "Financial Instruments and Exchange Act." This report aggregated the OTC derivatives transactions data reported from the financial instruments business operators in Japan.
/jlne.ws/3V4PRVj
SFC hosts workshops to further engage the industry
SFC
The Securities and Futures Commission (SFC) hosted two licensing-related workshops for more than 200 industry participants at its office this week as part of its ongoing engagement with the industry. Key takeaways for participants from the workshops, which followed two recent engagement sessions with the industry, are enhancing their understanding of the SFC's digitalised licensing process and bringing them up-to-date with the latest trends in licensing activities (Note 1).
/jlne.ws/3V5osCy
SFC and CSRC top management meet in Hong Kong
SFC
The Securities and Futures Commission's Chairman Dr Kelvin Wong and Chief Executive Officer Ms Julia Leung held a high-level meeting with the Chairman of the China Securities Regulatory Commission Mr Wu Qing in Hong Kong on Tuesday (19 November 2024). The two sides exchanged views on the recent development of their respective capital markets. They also took stock of recent fruitful cooperation between the Mainland and Hong Kong on mutual market access schemes. The two sides agreed to further deepen their regulatory and enforcement cooperation and collaborate on advancing the coordinated development of both capital markets. End
/jlne.ws/416fk4a
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Foreigners dump Chinese government bonds as popular trade unwinds; Investors who had borrowed renminbi to buy sovereign debt hit by market sell-off
Cheng Leng, Arjun Neil Alim and Haohsiang Ko in Hong Kong - Financial Times
Foreign investors have dumped Chinese government bonds over the past two months, unwinding a popular and lucrative trade that had been enabled by Beijing's efforts to support its currency. Investors had poured more than $130bn between November last year and August into a trading strategy that involves lending dollars to Chinese institutions and then using the renminbi proceeds to buy Chinese bonds. The return from loaning dollars and investing in bonds could be up to 6 per cent, well above the yield on a US Treasury bond.
/jlne.ws/3Z1IcrZ
Hong Kong's Benchmark Index to Add Kuaishou, Remove New World
Sangmi Cha - Bloomberg
Kuaishou Technology and New Oriental Education & Technology Group Inc. will be added to Hong Kong's Hang Seng Index and New World Development Co. removed following a quarterly review, according to a statement from the index compiler. The number of members on the benchmark will rise to 83 from 82, Hang Seng Indexes Co. said Friday. Traders are looking for fresh momentum in Hong Kong's stock market after a boost from China's stimulus-led rally in September. The Hang Seng Index has fallen about 17% from an October peak and closed down 1.9% Friday.
/jlne.ws/4fEwKJE
The 'linked benefits' of index investing; Compounding reveals the true value of long-term investing and minimising costs
Charley Ellis - Financial Times (opinion)
The writer is a former chair of Yale's Investment Committee, an ex-board member of Vanguard and the author of 21 books including the forthcoming Rethinking Investing.
The idea of linked costs was made clear to me by my father when I was 11 and he asked: "Why does the cinema charge you kids only 20 cents for admission?" "Because we're kids?" was my reply. My father said that was part of it but there was also a specific reason that I should understand. After several guesses, he decided to let me in on the secret: the owner of the cinema wanted as many kids as possible to come inside where they might buy popcorn at 25 cents that cost only 5 cents to make.
/jlne.ws/496XNef
Hunan Gold Shares Surge After Large Deposit Found in China
Yihui Xie - Bloomberg
Hunan Gold Corp. have surged by their 10% limit for two days in a row after a sizable gold resource was discovered in central China's Hunan province. The Geological Bureau of Hunan Province said on Thursday that it had detected more than 40 gold veins containing an estimated 300 tons of the precious metal beneath the Wangu Goldfield in Pingjiang county, at around 2,000 meters deep. Feasibility studies are still needed to identify the actual reserves, it said.
/jlne.ws/4eGDzJG
Private Equity Financier's Returns Slump in a $1.2 Trillion Market
Layan Odeh, Dawn Lim and Jason Kao - Bloomberg
Yann Robard was an early mover in a type of financing that's hotter than ever: helping investors extract cash from private equity stakes that are hard to value and sell. His firm, Dawson Partners, grew by giving institutions a way to turn bundles of illiquid fund stakes into fast money. Previously known as Whitehorse Liquidity Partners, it's a key player in fund finance, an expanding $1.2 trillion market where nonbanks have gained ground in its most arcane corners.
/jlne.ws/4fCWgPr
Peugeot Family Elevates Millennial Son to Helm Investment Firm; Edouard Peugeot to replace father Robert at investment firm
Tara Patel - Bloomberg
/jlne.ws/3CHpFJZ
Quant Hedge Fund AQR Is Cutting Income Tax Bills for Wealthy Clients; Delphi Plus strategy is available to only elite tier investors; Fund generates losses that can offset wages, investment income
Justina Lee - Bloomberg
/jlne.ws/40Z9thb
The Harvard Endowment Is on the Verge of Losing Its Crown; It's still the richest educational endowment, but for how long?
Tracy Alloway and Joe Weisenthal - Bloomberg (podcast)
/jlne.ws/3Z4EH3I
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | COP29 Divided on Finance Deal as Climate Talks Reach Endgame; Haggling to continue overnight as Baku summit on final stretch; Deep divides remain over how finance will be mobilized
Jennifer A Dlouhy, John Ainger, and Akshat Rathi - Bloomberg
Countries are set to work through the night at the UN COP29 summit in a bid to resolve deep differences over how to scale up international climate finance, after an initial proposal sparked widespread anger. The draft agreements presented early Thursday by host Azerbaijan left core details unresolved - including how much money could be summoned to help poor countries contend with climate change and where it would come from. They also included scant references to moving away from fossil fuels, a main cause of global warming.
/jlne.ws/4hYaVXf
The global green transition will survive Trump; Higher borrowing costs from tariffs and tax cuts will be the US's main impact on carbon-saving investment worldwide
Alan Beattie - Financial Times (opinion)
Whatever Donald Trump's victory might be good for, the planet's atmosphere is not it. True, his economics team is still being selected, and more or less anything could emerge from the maelstrom of personalities and ideologies. Joe Biden's Inflation Reduction Act, by concentrating spending in Republican states, was designed to be politically sacrosanct. Still, the incoming president has said he will kill at least the subsidy for electric vehicles, if not more of Biden's green spending. Howard Lutnick, announced on Tuesday as the nominee for commerce secretary with additional control over the US trade representative's office, has described climate change as a concern of the elitist rich, a category in which the Wall Street chief executive oddly seems not to include himself.
/jlne.ws/4g26jO7
Oil-producing nations under fire at COP29 over fossil fuels omission; EU says draft agreements released at climate summit are 'clearly unacceptable'
Attracta Mooney and Kenza Bryan - Financial Times
Western countries have blasted oil-producing nations at the COP29 summit for blocking the mention of fossil fuels in key documents on tackling climate change. The omission of any reference to plans to transition away from fossil fuels in two major documents sparked a wave of criticism on Thursday, with attendees accusing recalcitrant countries of backsliding on a promise from last year's summit.
/jlne.ws/4i2fXBZ
Occidental CEO Warns US Is at Risk of Losing Energy Independence
David Wethe - Bloomberg
Occidental Petroleum Corp. warned that US energy independence is at risk of slipping away if shale output plateaus and begins to decline. "It's going to start to roll over, and when that happens, that's when the US is at risk for losing our energy independence," Chief Executive Officer Vicki Hollub said in a presentation at Hart Energy's Executive Oil Conference in Midland, Texas, on Thursday. "That could come in the next five years that we start to see that plateauing happen."
/jlne.ws/3YTwnE4
California limits on 'forever chemicals' PFAS in products are effective, study says; Levels in people's blood for 37 chemicals linked to health issues declined after they were designated under Prop 65
Tom Perkins - The Guardian
California's nation-leading restrictions on toxic chemicals in consumer products reduced the population's body levels for many dangerous compounds linked to cancer, birth defects, reproductive harm and other serious health issues. New peer-reviewed research showed levels in residents' blood for 37 chemicals the authors analyzed had declined after the substances were designated under Proposition 65, which regulates toxic chemicals in consumer goods.
/jlne.ws/3V4gEAN
Trump energy pick wrote ESG report hailing oil, gas, downplaying climate worry
Timothy Gardner and Nichola Groom - Reuters
President-elect Donald Trump's pick to lead the energy department believes fossil fuels are the key to ending world poverty which, he says, is a greater problem than climate change's "distant" threat, according to a report he penned as CEO of oilfield services company Liberty Energy. In a corporate report released in February called 'Bettering Human Lives,' Chris Wright said that the energy transition has not begun and that climate change, while a challenge, is not the greatest threat to humans.
/jlne.ws/3ZixwGv
This Beer Is Made From Sewage. And at the Climate Summit, That's OK.; The hoppy pilsner from Singapore, where freshwater is scarce, is part of an effort to promote recycling solutions.
Rebecca F. Elliott - The New York Times
/jlne.ws/4eCjEeM
ExxonMobil could partner up with Eni and Total to jointly develop natural gas deposits off Cyprus
Menelaos Hadjicostis - Associated Press
/jlne.ws/4fUq3Tu
Abu Dhabi's Adnoc Is Said to Consider Selling Stake in Gas Unit; Firm is said to be considering selling 3% to 5% of Adnoc Gas; Deal could boost unit's chances of inclusion in market indexes
Laura Gardner Cuesta, Dinesh Nair, and Nicolas Parasie - Bloomberg
/jlne.ws/3V37QeC
OPEC+ Appears Set to Hold Its Next Key Meeting on Output Online
Grant Smith, Nayla Razzouk, Fiona MacDonald, and Salma El Wardany - Bloomberg
/jlne.ws/3ZkwLwA
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Citadel founder Ken Griffin said he would be 'open' to selling a stake in his $65 billion hedge fund
Bradley Saacks - Business Insider
BlackRock's potential investment into Izzy Englander's Millennium might have Citadel founder Ken Griffin thinking. At the Economic Club of New York Thursday, Griffin complimented BlackRock founder Larry Fink for being a "legend in asset management" and said that if the tie-up eventually does go through, "it's a very interesting" one. The early-stage talks between BlackRock and multistrategy rival Millennium were reported by the Financial Times earlier this month.
/jlne.ws/4hTXTKt
French asset manager Tikehau considering New York listing; An increasing number of European companies are looking past home exchanges to more liquid markets in US
Brooke Masters, Jennifer Hughes and Jamie Smyth in New York and Harriet Agnew in London - Financial Times
Tikehau, one of Europe's fastest-growing investment managers, is considering moving its listing to New York from Paris, making it the latest in a series of European and UK companies looking beyond the exchanges in their home countries. The EUR47.1bn alternative asset manager, which is particularly strong in private credit, was founded in 2004 and has been listed on Euronext Paris since 2017. Founders Mathieu Chabran and Antoine Flamarion have long expressed ambitions to build a "Blackstone of Europe".
/jlne.ws/3YXJsMJ
Nomura, Daiwa Detail Adani Exposure in Their Mutual Funds
Takashi Nakamichi - Bloomberg
The asset management arms of Nomura Holdings Inc. and Daiwa Securities Group released details of their mutual funds' holdings of securities in the Adani Group companies, after US prosecutors filed charges against the Indian conglomerate's billionaire founder. The two Japanese financial institutions listed the weightings of Adani-related stocks and bonds held by their publicly offered investment trusts in separate statements on Friday. Nomura Asset Management Co. said it has has 87 investment trusts that hold such securities, while Daiwa Asset Management Co. has five equity funds with exposure.
/jlne.ws/3APUtrp
Deutsche Bank Says Regulators Open for First Time to Ease Rules
Nicholas Comfort and Arno Schuetze - Bloomberg
Deutsche Bank AG Chief Executive Officer Christian Sewing said he sees an unprecedented readiness among European officials to alleviate the regulatory burden on the region's economy. Geopolitical developments such as in the US, where Donald Trump is set to return to power, mean that banks and other companies face the risk of "a non-level playing field," Sewing said at a panel discussion in Frankfurt. "Deregulation, by the way not only in the banking industry but also in all other industries, will take place," the CEO said. The openness to "rediscuss" regulations, such as for sustainability reporting obligations, "is really for the first time there."
/jlne.ws/3V4W2IZ
MUFG Fires Worker for $13 Million Theft From Clients' Safe Boxes; Company says theft took place over four and a half years; Follows Nomura case where ex-staffer was charged with crimes
Russell Ward - Bloomberg
Mitsubishi UFJ Financial Group Inc. said it has fired an employee who allegedly stole as much as ¥2 billion ($13 million) from the safe deposit boxes of approximately 60 customers. The theft took place at two branches in Tokyo over four and a half years before it was discovered on Oct. 31, MUFG's main banking arm said in a statement on Friday. Japan's biggest bank is investigating the incident and consulting with the police, it said.
/jlne.ws/3OGs7mR
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | What's behind the lesbian pay premium? After decades of earning more than heterosexual women, the gap seems to be shrinking
Soumaya Keynes - Financial Times
Studies of discrimination are often both depressing and unsurprising. It doesn't pay to be part of a minority group? Well, knock me down with a feather. But some do manage to defy expectations. Several academic papers have found that on average, lesbians earn more than otherwise similar heterosexual women. And although one might have expected improving gay rights to have bolstered lesbians' pay, in fact, the premium seems to be shrinking.
/jlne.ws/3AIOZ1H
Musk, Ramaswamy Eye Five-Day Office Week for Federal Workers
Bloomberg
Elon Musk and Vivek Ramaswamy - President-elect Donald Trump's picks to lead the newly formed task force to review government spending - said they will push for eliminating work-from-home policies for federal workers, an idea that could spark clashes between the new administration and government employee unions. "Requiring federal employees to come to the office five days a week would result in a wave of voluntary terminations that we welcome: If federal employees don't want to show up, American taxpayers shouldn't pay them for the Covid-era privilege of staying home," they wrote in a Wall Street Journal op-ed on Wednesday.
/jlne.ws/3AWY5rv
Carlsberg's Banker-to-CEO Embraces Positive Energy: 'I Never Yell at Anyone'; Jacob Aarup-Andersen, who spent two decades in banking, talks about the risks of a "negative heartbeat" and his drive to push the brewer beyond beer.
Sara Sjolin and Anna Edwards - Bloomberg
Jacob Aarup-Andersen took charge of Carlsberg A/S in 2023, at the height of the Danish brewer's dispute with the Kremlin over its Russian exit and when consumer sentiment was flagging across key markets such as China. To expand beyond the traditional beer business, the chief executive officer spearheaded a deal to buy British soft drinks maker Britvic Plc for $4.2 billion. The former banker also aims to take further market share in China, but plans to continue to stay clear of the US. Since taking charge last September, Carlsberg's shares have lost about a quarter of their value, recently prompting Aarup to buy company stock worth $820,000.
/jlne.ws/48ZRppf
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Global Wellness Awards recognize trailblazers during Global Wellness Summit in Scotland
Theodore Koumelis - Travel Daily News
The Global Wellness Summit (GWS), the premier gathering of leaders in the $6.3 trillion wellness economy, concluded its sold-out, 18th annual conference at the Old Course Hotel, Golf Resort & Spa in St Andrews, Scotland, last week. During the event, Global Wellness Summit unveiled its prestigious Global Wellness Awards, including recipients such as Michael Acton Smith for his enduring commitment to enhancing mental wellness through Calm, the innovative technology that has over 4 million subscribers worldwide; Davide Bollati, chairman of Davines Group, for his transformative efforts in placing sustainability at the forefront of the beauty industry; Amy McDonald for her pivotal role in helping shape spa, wellness destinations and wellness real estate; and Jemma King, PhD, a renowned expert in the field of human performance, and Wim Hof, the original "Ice Man" and creator of the Wim Hof method, for their groundbreaking collaborative work in the science of wellness.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | India's Modi seeks energy security from Guyana and its vast oil deposits
Bert Wilkinson - Associated Press Finance
Indian Prime Minister Narendra Modi said Thursday during a visit to Guyana that his government views the South American country as key to its energy security. Modi spoke a day after his foreign minister said India is interested in buying up to two million barrels of crude from the oil-producing nation where vast deposits of oil and gas were found offshore nearly a decade ago.
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China is expanding visa-free entry to more countries in bid to boost economy
Associated Press
China announced Friday that it would expand visa-free entry to nine more countries as it seeks to boost tourism and business travel to help revive a sluggish economy. Starting Nov. 30, travelers from Bulgaria, Romania, Malta, Croatia, Montenegro, North Macedonia, Estonia, Latvia and Japan will be able to enter China for up to 30 days without a visa, Foreign Ministry spokesperson Lin Jian said.
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Sweden Probe Into Broken Cable Advances as Seabed Study Winds Up
Christopher Jungstedt - Bloomberg
Sweden's Navy completed a survey of the seabed near one of the damaged data cables in the Baltic Sea as the Nordic country investigates potential sabotage against the underwater infrastructure. A high-speed fiber optic cable connecting Finland and Germany was cut early Monday by what was likely an external impact and a nearby link between Lithuania and Sweden was damaged on Sunday. The incidents are being probed by Swedish police as possible sabotage, and are the second such event in the Baltic Sea in just over a year.
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Hungary Sees Gazprombank Sanctions a Risk to Energy Security
Veronika Gulyas and Priscila Azevedo Rocha - Bloomberg
Hungary said the US decision to sanction Gazprombank jeopardizes the energy security of some central European countries, elevating the risks of an early cutoff of Russian natural gas to the continent. Hungary views the move as an "attack on our sovereignty," Foreign Minister Peter Szijjarto said in an emailed statement Friday. Szijjarto is "reviewing the situation with the energy ministers of Turkey, Azerbaijan, Bulgaria and Serbia" at a meeting in Istanbul.
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