| November 26, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Veteran Journalist Jeremy Grant wrote a story for The Banker titled "Global banks building tech and regulatory capabilities on Scottish foundations" with the subheadline "Glasgow and Edinburgh are being transformed into global financial hubs for tech, AI and green finance." Global banks are significantly enhancing their technological and regulatory operations in Scotland, particularly in Glasgow and Edinburgh, Grant wrote. Barclays' £330 million Tradeston campus in Glasgow, inaugurated in 2021, serves as one of its three global centers for functions, technology, and operations. This facility underscores the bank's commitment to sustainability, featuring advanced heating systems powered by air- and water-source heat pumps and over 400 solar panels.
JPMorgan Chase has also expanded its presence in Glasgow, opening a 14-story technology center that accommodates up to 2,600 employees. This center is integral to the bank's global operations, focusing on software development and technology services for clients worldwide.
In Edinburgh, BlackRock plans to double its workforce to 1,400, elevating the city to its fourth-largest global office. The firm utilizes Edinburgh as a technology hub, particularly for its Aladdin platform, which aids in risk monitoring and investment decision-making. These developments highlight Scotland's transformation into a global financial hub, emphasizing technology, artificial intelligence, and green finance. The region's skilled workforce and collaborative environment with local universities have been pivotal in attracting these substantial investments.
MIAX Exchange Group Chairman and CEO Thomas P. Gallagher was named to the 2024 TabbFORUM 40, an honor roll of executives and other influencers who are leading technology-driven innovation and disruption in financial markets.
The Financial Times reports there is a fight between the European Commission and the Netherlands over cow manure. The European Commission has challenged the Netherlands over its proposed mandate requiring that biomethane blended with natural gas be sourced exclusively from domestic organic waste. Biomethane is made from organic waste such as manure, food scraps or damaged crops, and can be blended with natural gas to heat homes and power businesses. The Commission argues that this policy constitutes an illegal trade barrier under EU law. In response, the Netherlands has postponed the rule's implementation to January 2026 and is engaging in discussions with the Commission to find a compliant solution. The Dutch government contends that, due to the absence of an EU-wide certification system, it cannot verify the origin of imported biogas, necessitating reliance on domestic production to meet national and EU renewable energy targets.
Here are the headlines from in front of FOW's paywall from some recent stories: ANALYSIS: AFX eyes new markets after tech migration, Macquarie hit with £13m UK fine as metals trader hides losses, ANALYSIS: US regulators to dial down enforcement under Trump - ACA, CME completes primary conversion in Mexican swaps migration, SGX sees boost to FX business after adding Japanese market-maker and UK crypto regulation to be implemented by new government - speech.
Are you having difficulty figuring out what to buy for a loved one for the holidays? Well, The Wall Street Journal has a story for you with data courtesy of Google to help you out, titled "17 of Our Favorite Gifts From Google's New Holiday 100 List" with the subheadline "This season's crowd-pleasing presents-according to everyone's Google searches."
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:
- VIX Calls or S&P 500 Puts? Debate Rages On as Vol Spikes Fade from Bloomberg.
- Wall Street Fear Index Falls After Trump Appoints Bessent from Barron's.
- Stock Market Volatility Can Be Scary But It Creates Opportunities from Forbes. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Former CFTC Official Launches Lean Consulting Firm to Navigate Regulatory Uncertainty
JohnLothianNews.com
In the high-stakes world of financial regulation, where billion-dollar fines and complex compliance rules are the norm, Dorothy DeWitt is taking a decidedly different tack. Her new venture, Tolt Strategies, aims to help innovative companies navigate the murky waters of regulatory uncertainty with a lean team of seasoned experts.
Watch »
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Rostin Behnam Reflects on Tenure As CFTC Chairman in John Lothian News FIA EXPO Interview
JohnLothianNews.com
Rostin Behnam 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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Block Trade: Futures Discovery EP 18
JohnLothianNews.com
Block trades are a cornerstone of futures markets, represented by large-scale transactions executed off the public auction system. They provide a discreet avenue for significant market participants to maneuver substantial positions without the immediate impact on market prices typically seen in open outcry trading. Today, we're peeling back the layers of block trades, uncovering their nuanced dynamics, and exploring their pivotal role in the futures market ecosystem.
Watch »
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What's Next For The CFTC After The Election
Matthew B. Kulkin, Matthew Beville, Megan O'Flynn and Jeffrey Wieand - WilmerHale
In a Law360 expert analysis, Partner Matthew Kulkin, Special Counsels Matthew Beville and Megan O'Flynn, and Public Policy Advisor Jeffrey Wieand discuss what they expect to see from the CFTC following President-elect Donald Trump's inauguration. Excerpt: "A new president, coupled with Republican control of the US Senate and the US House of Representatives - with a number of House races still pending - will fundamentally alter the operation of the executive branch and independent regulatory agencies like the US Commodity Futures Trading Commission, and will have significant implications for the rest of the federal government as well."
/jlne.ws/3ZnI3Am
***** Matthew Kulkin and colleagues getting out their crystal ball and making predictions.~JJL
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FinCEN Joins Public-Private Partnership to Combat Fraud and Scams Impacting Innocent Americans
Financial Crimes Enforcement Network
The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has joined a multi-sector national task force dedicated to the prevention of fraud and scams. The National Task Force on Fraud and Scam Prevention, convened by the Aspen Institute's Financial Security Program, brings together key stakeholders including the financial services sector, technology companies, consumer advocacy groups, information sharing and analysis centers, and federal government agencies to develop a comprehensive national strategy for combating fraud and scams.
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****** Do we really need to say "innocent Americans"? Are we not all innocent?~JJL
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Quant Olympics Seeks to Find Next Generation of Finance Stars; A global competition hosted by the quantitative hedge fund seeks to find the next generation of finance geniuses - and tests out a new way to beat the markets
Justina Lee and David Ramli - Bloomberg
The strobe lights reset and the applause fades. Three young men walk on stage in a ballroom in Singapore, sporting near-identical haircuts, matching T-shirts and blazers. In the near darkness that contrasts the blazing sun outside, they introduce themselves as the Ruff Boys. For their 10-minute pitch, the Taiwanese university students riff through 12 slides of pure quantitative-trading nerdery: Hierarchical tree. Co-kurtosis. Vector neutral.
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*******Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one. ~Charles Mackay (1841) "Memoirs of Extraordinary Popular Delusions," p.3
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Bitcoin Is 'Far From Being a Bubble,' Pantera's Morehead Says; Pantera's Bitcoin fund was launched back in July 2013; Fund manager says Bitcoin can reach as high as $740,000
Muyao Shen - Bloomberg
Bitcoin's record-breaking rally may only be getting started, according to one of the earliest US professional investors in the original cryptocurrency. "People totally thought we were crazy in 2013," said Dan Morehead in an interview, referring to when Pantera Capital Management launched its Bitcoin fund more than 11 years ago. "There are still a lot of people very negative. And that's why I'm so bullish. So many people are still negative. It's far from being a bubble."
/jlne.ws/3B8hAgL
******Nations, like individuals, cannot become desperate gamblers with impunity. Punishment is sure to overtake them sooner or later. ~Charles Mackay (1852) "Memoirs of Extraordinary Popular Delusions and the Madness of Crowds," p.67
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UK Crypto Investors Should Be Prepared to Lose All, Says FCA Digital Assets Head
The Opening Trade - Bloomberg
The UK's Financial Conduct Authority (FCA) will seek to boost consumer protections for crypto investors, says Matthew Long, FCA Director of Payments and Digital Assets, as part of plans to finalise a set of rules for regulating the crypto industry. At present, "there are no protections" for UK crypto investors, Long warns. "Be prepared to lose all your money," he says.
/jlne.ws/3OotZjV
****** When you are in a bubble, your vision is blurred.~JJL
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Monday's Top Three
Our top story Monday was Welcome to the World of 24-Hour Stock Trading, from The Wall Street Journal. Second was Tell the Truth: Notes from FIA Expo 2024, from Chuck Mackie on LinkedIn. And third was The Books to Read This Holiday Season, from The Wall Street Journal.
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| Lead Stories | How Morgan Stanley Courted Dodgy Customers to Build a Wealth-Management Empire; Internal company documents describe the bank's weak anti-money-laundering controls and failure to complete due-diligence reviews as staff expressed alarm: 'We need to kill this'
AnnaMaria Andriotis - The Wall Street Journal
Morgan Stanley discovered last year that a yearslong brokerage customer had been convicted in 2005 in a U.S. court-for lying about terrorism investigations-and had links to al Qaeda bombings of U.S. embassies. The bank informed law enforcement and shut down the accounts. By then, at least tens of thousands of dollars had been withdrawn from ATMs in Pakistan. It wasn't a rare oversight. In another case, discussed in internal Morgan Stanley documents reviewed by The Wall Street Journal, a self-proclaimed princess claiming to have more than $5 billion in assets was allowed to engage Morgan Stanley for weeks without the bank carrying out a basic background check or completing the appropriate due-diligence review.
/jlne.ws/3AWUpWQ
Eurex Plans EU Bond Futures in 2025 in Boost to Bloc's Goals; Exchange cites increased volumes and EU repo facility for move; Decision comes before rival ICE introduces product next month
Greg Ritchie and James Hirai - Bloomberg
Eurex Clearing AG plans to launch bond futures for the European Union's debt next year, joining its rival Intercontinental Exchange Inc. in the race to provide liquidity to what has become one of the region's biggest issuers. The exchange cited increased secondary market volumes and the EU's new repo facility as meeting the "pre-requisites" for a deliverable futures market, according to an emailed statement. The decision follows an annoucement from ICE that it is launching a similar product next month. It's a change of tack for Eurex, which just weeks ago said it was too early to introduce a contract in 2024 as originally planned. Back then, it said a "key" pre-requisite for such a product is that the EU bond program becomes sustainable and of long-term nature beyond 2026.
/jlne.ws/4i4Bl9Q
Australian stock exchange targets 2029 for phase two of trading software overhaul
Reuters
Australian bourse operator ASX said on Tuesday it is targeting to implement the second phase of its clearing and settlement software overhaul by 2029, with projected costs ranging between A$270 million ($175.61 million) and A$320 million. Last year, ASX had hired Tata Consultancy Services to overhaul its aging all-in-one Clearing House Electronic Subregister System (CHESS) software, opting for a route that would require less customisation after ditching a much-criticised blockchain-based effort.
/jlne.ws/3AWf79k
Global banks building tech and regulatory capabilities on Scottish foundations; Glasgow and Edinburgh are being transformed into global financial hubs for tech, AI and green finance
Jeremy Grant - The Banker
On the south bank of Glasgow's River Clyde, a cluster of glass and steel buildings share a skyline dominated by the gun-metal frame of the Finnieston Crane, built in 1931 to load steam locomotives onto ships for export. This is the Tradeston campus, opened by Barclays in 2021 to be the bank's latest global centre for "functions, technology and operations", and one of only three globally. The others are in New Jersey in the US and the Indian city of Pune.
/jlne.ws/3VaeGyT
DOJ, SEC Charge Longtime Bond Investor Ken Leech With Fraud
Jack Pitcher - The Wall Street Journal
Federal prosecutors on Monday charged long-time bond investor Ken Leech with fraud, alleging he cherry-picked a series of trades to favor some clients while shifting losses to others. Leech, the former chief investment officer and star trader at Franklin Templeton subsidiary Western Asset Management, allegedly assigned over $600 million in gains to favored clients and $600 million in losses to disfavored ones, according to an indictment unsealed in Manhattan federal court Monday.
/jlne.ws/4eSLJ1w
Ken Leech Sued by SEC Over Alleged 'Cherry-Picking' Scheme
Chris Dolmetsch, Ava Benny-Morrison and Silla Brush - Bloomberg
Ken Leech, the former co-chief investment officer for Western Asset Management Co., was accused by US authorities on Monday of improperly allocating trades to favored clients in a dramatic turn for the once-star trader. Leech, 70, was charged by federal prosecutors in Manhattan, who alleged that he allocated trades hours after executing them, often waiting until the end of the trading day or afterward, which went against the firm's policies. The Securities and Exchange Commission filed a parallel civil lawsuit making similar allegations.
/jlne.ws/499IAcg
US charges former Wamco co-CIO Kenneth Leech with fraud
Reuters
Kenneth Leech, the former co-chief investment officer of Western Asset Management Co, was charged by U.S. authorities on Monday with running a fraudulent "cherry-picking" scheme where he improperly favored some clients' accounts over others when allocating trades. The U.S. Securities and Exchange Commission said that between January 2021 and October 2023, Leech disproportionately allocated better performing trades to favored portfolios, and worse performing trades to other portfolios.
/jlne.ws/4fHVmRR
Coffee Prices Surge to Highest Since 1997 on Supply Fears
Dayanne Sousa - Bloomberg
Coffee futures in New York climbed to the highest since 1997 on worries about crops in top growers, threatening to further raise costs for roasters and consumers. Arabica, the high-end variety favored for specialty brews, rose as much as 3% on Monday. Coffee prices have soared this year due to major supply disruptions in key producers from Brazil to Vietnam, with the more budget-friendly robusta type that's used in instant drinks recently hitting the highest since the 1970s.
/jlne.ws/4i0MV5H
StanChart Is Front-Runner as Dollar Settlement Bank in India Hub; Local clearing house to start testing new model by January; Move is likely to speed up transactions for foreign investors
Saikat Das and Bhaskar Dutta - Bloomberg
Standard Chartered Plc has emerged as the front-runner to become the settlement bank for real-time dollar-denominated trades in India's newest financial hub, according to people familiar with the matter. The Clearing Corp. of India Ltd., which has been tasked to set up the settlement system, will start testing the new model by January, said the people, who asked not to be identified as the discussions are private.
/jlne.ws/3OM0skt
Citigroup slashes promotions as it seeks to overhaul bank; As few as 2,000 employees could receive pay and title bumps in the next month, down from about 8,000 in previous rounds
Stephen Gandel - Financial Times
Citigroup is slashing the number of year-end promotions it usually awards, as it seeks to hold costs down amid a long-term restructuring to shrink headcount and right the plodding bank. Managers have been told that as many as 2,000 Citi employees could receive a bump to their pay and title in the next month, down from about 8,000 in previous rounds, four people familiar with the decisions said, cautioning that those decisions are not final.
/jlne.ws/3CEgRV1
Japanese prime minister's portfolio outpaces stock benchmark; Shigeru Ishiba is struggling as a politician but excelling as an investor, disclosures reveal
Leo Lewis - Financial Times
Japan's prime minister Shigeru Ishiba may be flailing as a politician and a diplomat, but as an investor he is a standout who has outperformed Japan's stock benchmark in recent years. Ishiba's portfolio of individual stocks is up by about 102 per cent since the start of 2020, according to analysis by Nomura Securities, far exceeding the broader Topix, which is up 60 per cent over that period.
/jlne.ws/3Z72iRt
US charges against Gautam Adani put loyal Jefferies on the spot; New York-based bank was vocal champion of Indian group whose billionaire head is accused of bribery scheme
Ortenca Aliaj, Kaye Wiggins and Chloe Cornish - Financial Times
US investment bank Jefferies was happy to help out Indian billionaire Gautam Adani's business empire after it was hit with damaging fraud allegations last year, brokering a $1.9bn capital boost for the infrastructure group and cheering it on social media.Since then it has been the only US bank that has helped the Indian group's companies raise equity, according to public data.
/jlne.ws/3OvkmzG
Fix UK financial services culture before softening regulation; Car loan commission ruling suggests the industry has not learnt from its mistakes
Philip Augar - Financial Times (opinion)
"This sector is the crown jewel in our economy," chancellor Rachel Reeves told a City audience at this month's Mansion House dinner. Crown jewel or not, the UK financial services industry still has an ability to deliver nasty surprises. The recent Court of Appeal motor loans judgment poses awkward questions for the sector, its regulators and the government's pro-City approach. The court has ruled that car dealers must disclose commission received on motor loans upfront and openly. Burying such information in the small print is not sufficient.
/jlne.ws/4g2Mi9T
Senior UK bankers to receive bonuses faster under new rules; Bank of England proposes relaxation of restrictions dating from financial crisis
Martin Arnold - Financial Times
Senior bankers in the UK will receive their bonuses faster and fewer will have to wait several years to receive their payouts under plans set out by the Bank of England on Tuesday. The proposals, which include allowing bankers to earn dividends on share-based bonuses while they are deferred, are a sign of regulators responding to political pressure to support risk-taking and economic growth.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russia condemns "irresponsible" talk of nuclear weapons for Ukraine
Reuters
Discussion in the West about arming Ukraine with nuclear weapons is "absolutely irresponsible", Kremlin spokesman Dmitry Peskov said on Tuesday, in response to a report in the New York Times citing unidentified officials who suggested such a possibility. 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/3V4kSZ9
EU Proposes to Sanction Chinese Firms Aiding Russia's War; Bloc also pushes for more restrictions on Russian oil tankers; The measures require the backing of all 27 member states
Alberto Nardelli - Bloomberg
The European Union is proposing to sanction several Chinese firms that it claims helped Russian companies develop attack drones that were deployed against Ukraine. The European Commission, the EU's executive arm, is also looking into imposing restrictions on additional Russian oil tankers to curb Moscow's ability to circumvent existing restrictive measures, according to documents seen by Bloomberg. The proposals come as Group of Seven foreign ministers meeting in Italy this week are set to pledge "appropriate measures" against China and other countries that are supporting Russia's war effort in Ukraine, Bloomberg reported Monday. The EU measures would require the backing of all 27 member states.
/jlne.ws/40YO0oG
Kremlin says Trump circle is talking about a peace deal for Ukraine as Biden escalates
Reuters
The Kremlin said on Monday it had noted that President-elect Donald Trump's circle was speaking about a potential peace plan for Ukraine while the current U.S. administration of Joe Biden was not and was seeking to escalate the conflict instead. Kremlin spokesman Dmitry Peskov made his remarks after being asked to comment on an interview that Mike Waltz, Trump's pick for national security adviser, gave to Fox News on Sunday.
/jlne.ws/4g5yDza
Ukraine says Russian attack sets a new record for the number of drones used
Hanna Arhirova - Associated Press
Russia launched 188 drones against most regions of Ukraine in a nighttime blitz, the Ukrainian air force said Tuesday, describing it as a record number of drones deployed in a single attack. Most of the drones were intercepted, according to the air force, but apartment buildings and critical infrastructure such as the national power grid were damaged. No casualties were immediately reported in the 17 targeted regions.
/jlne.ws/3B1WOzw
EU Proposes to Sanction Chinese Firms Aiding Russia's War; Bloc also pushes for more restrictions on Russian oil tankers; The measures require the backing of all 27 member states
Alberto Nardelli - Bloomberg
The European Union is proposing to sanction several Chinese firms that it claims helped Russian companies develop attack drones that were deployed against Ukraine. The European Commission, the EU's executive arm, is also looking into imposing restrictions on additional Russian oil tankers to curb Moscow's ability to circumvent existing restrictive measures, according to documents seen by Bloomberg.
/jlne.ws/4ihWldo
UK Sent Ukraine More Storm Shadows Ahead of Strikes in Russia; First resupply of the long-range cruise missiles under Starmer; US, UK seeking to strengthen Ukraine before Trump's return
Alex Wickham - Bloomberg
The UK government recently supplied Ukraine with dozens more Storm Shadow cruise missiles, according to people familiar with the matter, a first under Prime Minister Keir Starmer, who has pledged continued support for the country's war against Russia. The deliveries, which were not publicly announced, took place several weeks ago and were ordered after Kyiv ran low on the long-range missiles, said the people, who asked not to be identified discussing security issues.
/jlne.ws/496yXey
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel and Hezbollah on the Cusp of Deal as Attacks Continue
Iain Marlow and Dan Williams - Bloomberg
Israel and Hezbollah inched closer to signing a cease-fire deal that may be concluded in the coming days, according to officials and people familiar with the matter, even as the two sides continued to fire artillery and rockets at each other. Israel's security cabinet is expected to vote on an agreement on Tuesday, and passage is considered likely, according to an Israeli official, who asked not to be identified discussing internal deliberations. That could pave the way for the US and France, which have mediated the talks, to announce it immediately, the official said.
/jlne.ws/3CMkCYC
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Worldscale Adopts ICE's Benchmark EUA Carbon Pricing for its Tanker Freight Rates
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced that Worldscale Association Ltd (Worldscale), a leading provider of tanker freight rate references, has chosen ICE's European Carbon Allowance (EUA) futures settlement price as the benchmark carbon price for calculating tanker freight rates in 2025. ICE's EUA futures and options market is the most liquid carbon market in the world. Worldscale's tanker freight flat rates represent the cost of a standard ship making a round-trip voyage. The rates are comprised of expenses including bunker prices, port costs and exchange rates. Under the European Union's Emission Trading System (EU ETS), for which ICE's EUA futures market represents the benchmark price, the maritime sector now has to account for the carbon emissions of ships calling in and handling cargoes at EU ports.
/jlne.ws/3ZnsqZJ
ASX Announces Implementation Plan for Release 2 of the CHESS Project
ASX
Following extensive industry consultation on scope and timing, ASX today announces its implementation plan for the settlement and subregister services (Release 2) of the CHESS system. Industry feedback to the consultation along with ASX's response paper can be found on ASX's website.
/jlne.ws/499QDpR
Miami International Holdings Congratulates Markets Media Women in Finance Award Recipients Barbara Comly and Kelli Annequin
MIAX Press Release
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today announced that Barbara Comly, Executive Vice President, General Counsel and Corporate Secretary, and Kelli Annequin, Senior Vice President and Chief Marketing Officer, were recognized at Markets Media Group's 10th-annual U.S. Women in Finance (WIF) Awards. Ms. Comly received the Excellence in Regulation award, an acknowledgement of her deep expertise in exchange regulation and corporate finance, which have proved invaluable as MIH has expanded the number of exchanges it operates through both regulatory approvals and multiple acquisitions.
/jlne.ws/3CHkjOG
UniCredit lists structured securities in Easy Euwax trading segment; High trading quality and transparency without exchange transaction fees for around 150,000 products
Boerse Stuttgart Group
UniCredit is listing structured securities as an issuer in the Easy Euwax trading segment of Boerse Stuttgart Group. For the approximately 150,000 leverage and investment products of UniCredit listed in Easy Euwax, no exchange transaction fees are charged.
/jlne.ws/3Z4m7J7
JSE and Western Cape Government collaboration continues to drive SME growth in Cape Town
JSE
The JSE SME Rise Capital Matching roadshow, the JSE's flagship small to medium sized (SME) programme is set to conclude its nationwide roadshows with a final event in Cape Town today, marking a significant milestone in the initiative's journey. The JSE is once again collaborating with the Western Cape Government and the Department of Economic Development and Tourism (DEDAT) to bring together high-growth SMEs seeking capital with capital providers looking to expand their investment portfolios in the province.
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LME Clear Margin Parameters November 24
LME
LME Clear Members are advised that new SPAN1 margin parameters have been set
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Trading Technologies' Abel Noser Solutions wins Editors' Choice Award for TCA Provider of the Year in inaugural Leaders in Trading New York Awards hosted by The TRADE
Trading Technologies International, Inc.
Trading Technologies International, Inc. (TT), a global capital markets technology platform provider, today announced that Abel Noser Solutions, a TT company, won the Editors' Choice Award for TCA Provider of the Year in The TRADE's inaugural Leaders in Trading New York Awards. The award in the competitive category is the second Abel Noser Solutions has won since Nov. 1 for its transaction cost analysis (TCA) offering and the second Editors' Choice award captured by TT this month. The 2024 New York awards brought the London-based publication's Leaders in Trading Awards to the U.S. for the first time in The TRADE's 20-year history. The Editors' Choice categories, judged by The TRADE's editorial panel, recognize excellence "from all corners of the capital markets industry, including exchanges, trading venues, technology and data vendor services and more."
/jlne.ws/3ZnsqZJ
Bluesky Says It Will Comply With EU Rules After Being Called Out
Gian Volpicelli - Bloomberg
Bluesky said it's working to comply with European Union rules after the bloc accused the fast-growing social media platform of flouting its digital regulations. The company is consulting with its lawyer to follow the EU's information disclosure rules, a Bluesky spokesperson wrote Tuesday in an email. Bluesky, which was started in 2019 as a decentralized version of Twitter, has exploded in popularity in the wake of Donald Trump's victory, as many X users have sought alternatives to the Elon Musk-owned platform.
/jlne.ws/3OqSn4s
Telegram finances propped up by crypto gains as founder fights charges; Revenue leapt to $525mn in first half of 2024 before chief Pavel Durov was detained over alleged criminality on platform
Hannah Murphy and Robert Smith - Financial Times
Telegram has told investors that the detainment of chief executive Pavel Durov by French police has had no "material impact" on the messaging app's operations, as financial disclosures showed that the surging value of its crypto holdings is increasingly underpinning its business. According to unaudited financial statements seen by the Financial Times, which have not been previously reported, Telegram reported huge gains in the value of its digital assets in the first half of 2024, which rose to $1.3bn compared with nearly $400mn at the end of last year.
/jlne.ws/495mGqR
Broadridge's LTX and TransFICC enter strategic partnership; The development aims to offer sell-side clients simplified integration and connectivity to LTX, reduced operational risk and implementation costs, and improved time-to-market.
Wesley Bray - The Trade
Broadridge Financial Solutions' LTX has entered a strategic partnership with e-trading technology provider for fixed income markets, TransFICC. The collaboration will enable dealers to efficiently onboard and connect to LTX, via TransFICC's One API for eTrading platform. "Our strategic partnership with TransFICC enables faster time-to-market and simplified access to LTX's innovative RFQ+ trading protocol, reducing operational burdens," said Jim Kwiatkowski, chief executive at LTX.
/jlne.ws/411bV6Z
Nvidia debuts AI model that can create music, mimic speech
Daniel Howley - Yahoo Finance
Nvidia (NVDA) has developed a new kind of artificial intelligence model that can create sound effects, change the way a person sounds, and generate music using natural language prompts. Called Fugatto, or Foundational Generative Audio Transformer Opus 1, the model is a research project. Nvidia says it's not announcing any plans to release the technology, but it could have broad implications for industries ranging from music and entertainment to translation services. "The thing that's so exciting about [Fugatto] is that having a model that you can prompt to ask it to make sounds in certain ways really opens up the landscape of things that you can imagine doing with it," Bryan Catanzaro, vice president of applied deep learning research at Nvidia, told Yahoo Finance.
/jlne.ws/3BaMnJQ
Former Google, Stripe Executives Raise $56 Million for AI Agent Startup; The company is looking to build an operating system to support a new crop of artificial intelligence products.
Shirin Ghaffary - Bloomberg
A group of former Google and Stripe executives who helped build the Android platform have raised $56 million for a new company focused on developing an operating system for artificial intelligence agents. The San Francisco-based company, called /dev/agents, is set to come out of stealth mode on Tuesday and announce that it's raised a large seed round led by Index Ventures and co-led by Alphabet Inc.'s growth investment fund, CapitalG. Dozens of angel investors also participated in the round, including high-profile figures such as Scale AI Chief Executive Officer Alexandr Wang, Palo Alto Networks CEO Nikesh Arora and OpenAI co-founder Andrej Karpathy. The fundraising round values /dev/agents at $500 million, according to a person familiar with the matter who was not authorized to disclose the figure publicly.
/jlne.ws/4eQEzLl
Intel To Receive Nearly $8 Billion In Federal Funding Under CHIPS Act for US Expansion
Lekha Gupta - Benzinga
Intel Corporation (NASDAQ:INTC) and the Biden-Harris Administration announced that the U.S. Department of Commerce will award Intel up to $7.86 billion in funding under the CHIPS and Science Act. The funding will support semiconductor manufacturing and advanced packaging projects at Intel's facilities in Arizona, New Mexico, Ohio, and Oregon. Additionally, Intel plans to leverage the U.S. Treasury Department's Investment Tax Credit, covering up to 25% of qualified investments exceeding $100 billion.
/jlne.ws/3AZ8dA2
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| Cybersecurity | | Top stories for cybersecurity | Tim Berners-Lee Has a Plan for Your Online Data
Bloomberg Opinion
Tim Berners-Lee wants to give people control of their data, explains Bloomberg Opinion columnist Parmy Olson.
/jlne.ws/4eP9Rly
Cleo Capital launches cybersecurity accelerator to help undo the 'crushing burden' of online threats
Dominic-Madori Davis - TechCrunch
Cleo Capital, the early-stage venture fund that counts the AI firm Groq, fintech company Ellevest, and fashion brand Hill House as investments, has announced the launch of a new cybersecurity accelerator. The program is looking for pre-seed and seed companies from all around the world. The accelerator is a remote, 12-week program, with a standard investment of $250,000 for 7% equity. Up to ten companies will be selected for the program, according to the venture fund.
/jlne.ws/499U1B5
Cybersecurity Tips for the Holiday Season; Cyber threats designed to trick unsuspecting buyers heighten during the holiday season as online shopping transactions increase.
Georgia Tech
With the holiday season just around the corner, the Office of Information Technology (OIT) reminds the Georgia Tech community to stay alert for cyber risks as online shopping and digital transactions peak. The increase in seasonal shopping brings heightened cyber threats, including phishing, a rise in fake consumer websites, and other fraudulent techniques designed to trick unsuspecting buyers.
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Starbucks, Other Retailers Hit by Ransomware Attack on Tech Provider; Attack strikes operations managed through Blue Yonder, one of the largest supply chain technology providers
Liz Young and Heather Haddon - The Wall Street Journal
A ransomware attack against a major supply chain technology provider left retailers including Starbucks and U.K. grocery chain Sainsbury's triggering backup plans to manage operations including scheduling and handling inventories. Blue Yonder, one of the world's largest supply chain software providers, said Monday it was working to restore services after the attack last week disrupted systems it hosts for customers.
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| Cryptocurrencies | | Top stories for cryptocurrencies | UK's Financial Watchdog to Finalize Crypto Sector Rules in 2026
Emily Nicolle - Bloomberg
The UK will publish a finalized set of rules for regulating the crypto industry in 2026, as Keir Starmer's government seeks to catch up with rival financial centers. A series of discussion papers and consultations will begin as soon as this quarter to develop rules regarding market abuse, trading platforms, lending and stablecoins among other areas, the Financial Conduct Authority said in a statement on Tuesday. "We've had many, many good conversations recently with industry about how we're going to learn from regulation around the world," said Matthew Long, the FCA's director of payments and digital assets, in an interview with Bloomberg TV.
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How memecoins are redefining digital innovation and cultural value
Rob Nelson - TheStreet
As the digital economy evolves, memecoins are emerging as a unique fusion of culture, creativity, and financial experimentation. Roundtable anchor, Rob Nelson, and Peter Saddington, GP at StaaS.Fund, discussed how these tokens, often driven by community sentiment rather than utility, are carving out a significant space in the crypto landscape. Their conversation explored the potential of memecoins to influence everything from personal finance to large-scale tokenization trends.
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'UltraShort' Bitcoin ETF Draws Record Inflows as Rally Stalls; The original cryptocurrency is down roughly 7% over three days; Speculative fervor has cooled after a failed run at $100,000
Sidhartha Shukla - Bloomberg
A fund giving investors a way to turbocharge bets against Bitcoin notched its highest daily inflow in a sign that some investors consider the rally unleashed by Donald Trump's election to the White House overdone. The ProShares UltraShort Bitcoin exchange-traded fund (SBIT) aims to deliver twice the inverse daily performance of the token. It recorded a net inflow of $18.8 million on Monday, the largest since its April launch. Investors also piled into the ProShares Short Bitcoin ETF (BITI), which drew in about $23 million over the past two trading sessions, among the highest inflows this year.
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What's Flying Higher Than Bitcoin? The Software Company Buying Up Bitcoin
Vicky Ge Huang and Alexander Osipovich - The Wall Street Journal
Bitcoin prices have surged about 40% since Election Day. MicroStrategy has climbed even faster. The software company turned itself into a bitcoin buying machine in 2020 and now holds some $37 billion worth of tokens. For many individual investors, the stock is a more popular bitcoin play than the cryptocurrency itself and they are willing to pay up for it.
/jlne.ws/4g7yoDH
Bitcoin Is Surging, and the IRS Is Watching Closer Than Ever; Crypto enthusiasts face strict rules when deciding what to do with their holdings; 'The reporting regime is coming'
Ashlea Ebeling - The Wall Street Journal
Cryptocurrency holders are cashing in on a surge in bitcoin prices. Don't think the Internal Revenue Service isn't paying attention. Some bitcoin owners are making gifts to friends and family or donating coins to charity. Others are simply selling parts or all of their holdings, where the returns can be huge. One bitcoin bought in 2022 at $16,000 and sold at its peak on Monday would mean a gain of more than $80,000.
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| Politics | | An overview of politics as it relates to the financial markets | How Conflict of Interest Rules Impact Trump, Musk and Other Rich Nominees
Bill Allison - Bloomberg
Donald Trump is the richest person to become US president, and his far-flung business empire has only expanded since he last held the post. Then as now, he is wont to name other rich people to positions of power. He's nominated several super-affluent individuals to lead government departments - hedge fund manager Scott Bessent for Treasury, Cantor Fitzgerald LP chief executive officer Howard Lutnick for Commerce, North Dakota Governor Doug Burgum for Interior, World Wrestling Entertainment co-founder Linda McMahon for Education, and oil and gas executive Chris Wright for Energy. And he's named the world's richest person - Elon Musk - to a senior position outside the cabinet.
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Why Trump Really Should 'Buy' Greenland; As the island pursues independence, the U.S. can step in to safeguard Western interests from growing global threats.
Alexander B. Gray - The Wall Street Journal (opinion)
During President Donald Trump's first term, the foreign-policy elite expressed dismay at his public flirtation with "buying" Greenland from Denmark. In his second term, Mr. Trump should pick up right where he left off. Greenland's strategic location in the North Atlantic has made its acquisition a topic of discussion among U.S. strategists since the 19th century. Then-Secretary of State William Seward first pursued buying the world's largest island in 1867. Talk about annexation surfaced anew during World War II, when Denmark surrendered to Nazi Germany and the U.S. occupied Greenland.
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After Trump's Tariff Threat, Is a China Currency War Next?; While China could offset American tariffs by letting its currency fall, that might endanger Beijing's recent efforts to stabilize the economy.
Keith Bradsher - The New York Times
Beijing has a powerful tool for responding to President-elect Donald J. Trump's threatened new tariffs on Chinese goods: It could start a currency war, a step that poses formidable risks for China as well as the United States. Letting China's currency, the renminbi, lose value against the dollar would be a tried and true answer to tariffs. A cheaper renminbi would make Chinese exports less expensive for overseas buyers, mitigating the harm to China's competitiveness from Mr. Trump's tariffs. Beijing did just that in 2018 and 2019, when Mr. Trump imposed tariffs in his first term.
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Russia says it's thinking of putting missiles in Asia if the US keeps deploying weapons systems there
Matthew Loh - Business Insider
Sergei Ryabkov, one of Russia's deputy foreign ministers, said on Monday that Moscow is considering deploying its short- to medium-range missiles in the Asia-Pacific. Speaking to Russian state media, Ryabkov described the option as a potential response to reports that the US may deploy its own systems in the region. "Of course, this is one of the options that has also been discussed many times," Ryabkov said, per the TASS state news agency.
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Russia pledges broader Afghanistan ties, says US should help rebuild
Reuters
Sergei Shoigu, the secretary of Russia's powerful Security Council, told Afghanistan's Taliban leaders on Monday that Moscow wanted to help achieve a durable peace in the country, Russian news agencies reported. Shoigu, a former defence minister, also said the U.S. should play a leading role in rebuilding Afghanistan in view of its many years of military involvement in the country.
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| Regulation & Enforcement | | Stories about regulation and the law. | Singapore Trader Pleads Not Guilty to $1.1 Billion Fraud; Hundreds of investors put money into scheme tied to Envy Group; Ng Yu Zhi spent millions on art, jewelry, court documents show
Yihui Xie and Chanyaporn Chanjaroen - Bloomberg
An ex-accountant accused of running a billion-dollar nickel scam that rocked Singapore's business community pleaded not guilty on Tuesday to 42 charges including fraud and money laundering. Prosecutors alleged that Ng Yu Zhi, 37, raised money for trades that did not exist. Hundreds of clients, many of them high-profile figures in the city-state, put their money into a $1.1 billion scheme tied to Ng's Envy Group, which offered investments in nickel trading and touted impressive average quarterly gains of 15%.
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CDS Market Dynamics: Analyzing Trends in Single-name CDS and Index CDS Market Activity
ISDA
This paper analyzes the credit default swaps (CDS) market from 2019 to the first half of 2024, focusing on trends in single-name CDS and index CDS market activity. Over this period, total CDS market activity reached a high point of $38.7 trillion in 2022, driven primarily by index CDS. Single-name CDS activity was at its greatest in the first half of 2023, as market participants sought to manage specific credit exposures and protect against anticipated changes in the creditworthiness of individual entities, especially in the banking sector. Although it fell in the first half of 2024, single-name CDS activity remained above 2022 levels, reflecting sustained demand for credit risk protection.
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Statement on Fixed Income Clearing Corporation Rules
Chair Gary Gensler - SEC
This past week, the Commission and our staff took a number of important steps to facilitate the implementation of rules regarding customer clearing in the U.S. Treasury market. I am pleased to support these actions because enhanced access to central clearing will lower costs and lower risks, while promoting all-to-all trading, competition, and resiliency in these markets. In December 2023, the SEC adopted rules to facilitate additional central clearing for the U.S. Treasury markets.[1] First, in March 2025, the separation of house and customer margin must be completed, ensuring that clearinghouses facilitate indirect participants as well.
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SEC Charges Ken Leech, Former Co-Chief Investment Officer of Western Asset Management Co., with Fraud; Defendant allegedly engaged in cherry-picking, allocating hundreds of millions of dollars in net first-day gains and losses to favored and disfavored portfolios, respectively
SEC
The Securities and Exchange Commission today announced fraud charges against Stephen Kenneth ("Ken") Leech, the former co-chief investment officer (CIO) of registered investment adviser Western Asset Management Company LLC or WAMCO, for engaging in a multi-year scheme to allocate favorable trades to certain portfolios, while allocating unfavorable trades to other portfolios, a practice known as cherry-picking.
/jlne.ws/4fJrQvc
SEC Charges Convertible Note Dealer and Its Owner for Failure to Register
SEC
The Securities and Exchange Commission (the "SEC") today announced settled charges against a convertible note dealer, Illinois-based Mammoth West Corporation (dba "Mammoth Corporation") and its president and owner Brad Hare, a resident of Illinois, for failing to register with the SEC as securities dealers. As part of the settlement, Hare and Mammoth Corporation agreed to pay more than $3.9 million in monetary relief and have Mammoth Corporation surrender for cancellation the securities it allegedly obtained from its unregistered dealer activity.
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SEC Obtains Final Judgment Against Former Space Transportation Company CEO
SEC
On November 25, 2024, the U.S. District Court for the District of Columbia entered a final consent judgment against Mikhail Kokorich, the former CEO of Momentus, Inc. The entry of the consent judgment resolves all claims arising out of the SEC's July 13, 2021 complaint, which alleged that, in the lead-up to Momentus's de-SPAC transaction on August 11, 2021, Kokorich made misleading statements about the company's technology, as well as about national security risks and his immigration status.
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FMA's calendar of events
FMA
The FMA runs a programme of engagement throughout the year, including speeches, presentations, roundtable discussions and webinars, alongside bilateral engagement with the Boards and Executives of firms we regulate. The FMA also engages through industry bodies. If you would like any more details on the programme of events or would like the FMA to give a speech or presentation, please contact us.
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Non-Bank Deposit Taker sector roundtable
FMA
Last week I really enjoyed meeting the Chief Executives from New Zealand's Non-Bank Deposit Taker sector, who represent Building Societies, Credit Unions and Deposit-Taking Finance Companies. This session, in Auckland, was followed by my colleagues Michael Hewes and Brett Huntley heading to New Plymouth to meet the Board of TSB, as well as catching up with some of the Financial Advice Providers who call Taranaki home. These meetings happened as the FMA prepares for the Conduct of Financial Institutions regime to start in March next year. The regime, which introduces conduct regulation for banks, insurers and non-bank deposit takers, reflects concerns that emerged on both sides of the Tasman about financial sector conduct in 2017 and 2018.
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MBL fined £13m for serious control failures that allowed trader to conceal over 400 fictitious trades
FCA
The FCA has fined Macquarie Bank Limited - London Branch (MBL) £13m for serious failings that allowed one of its employees to record over 400 fictitious trades. From June 2020 to February 2022, Travis Klein, a trader based on MBL's London Metals and Bulks Trading Desk was able to record and take steps to conceal over 400 fictitious trades in MBL's internal systems in a bid to hide his trading losses.
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Developing our approach to crypto regulation
Matthew Long - FCA
Earlier this year, we held a series of roundtables to gather views that can help shape how we approach regulating specific areas of crypto. We brought together over 100 organisations involved in the industry, like crypto exchanges, banks, trading firms, blockchain analytics companies, law firms, industry associations and universities. Government officials, academics and other regulatory authorities including the Treasury and Bank of England. The US Securities and Exchange Commission also joined us to share their views.
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FCA finds crypto ownership continues to rise as it delivers plans to regulate crypto
FCA
According to the FCA's latest research on consumer attitudes and behaviours towards crypto, 12% of UK adults now own crypto, up from 10% in previous findings. Awareness of crypto also rose from 91% to 93%. The average value of crypto held by people increased from £1,595 to £1,842. Respondents told the FCA that information from family and friends was the most common source of information for those who had never bought crypto. Only 1 in 10 people say they did not do any research before buying crypto.
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UK financial watchdog fines Macquarie Bank £13mn for fictitious trades; Trader bypassed internal systems in bid to hide losses, says FCA
Martin Arnold and Ortenca Aliaj - Financial Times
The UK financial watchdog has fined Macquarie Bank £13mn after one of its traders in London recorded more than 400 fictitious trades to hide his losses. The Financial Conduct Authority said: "The fictitious trades were not detected earlier because of significant weaknesses" in Macquarie Bank's systems and controls. It added that the bank had previously been made aware of some of the weaknesses.
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MAS issues Prohibition Orders against Mr Loh Sheng Yang for Cheating, Forgery and Acquiring Benefits of Criminal Conduct
MAS
The Monetary Authority of Singapore (MAS) has issued 14-year prohibition orders (POs) against Mr Loh Sheng Yang, a former representative of United Overseas Bank Limited (UOB). This follows his conviction in the State Courts for cheating, forgery and acquiring benefits of criminal conduct. Mr Loh's offences have given MAS reason to believe that he will not perform financial advisory and capital markets services honestly.
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | 'Deja Vu' Jolts Traders Across Markets on Trump Tariff Redux; Traders around the world are bracing for ever more volatility Mexican peso dropped, Asian stocks declined after tariff news
Ruth Carson, Vinicius Andrade, and John Cheng - Bloomberg
Nick Twidale spilled a flat white coffee on his keyboard when headlines on Donald Trump's latest tariff threats caused his phone to blow up with calls. "It's bad deja vu with social media posts all over again, but muscle memory is kicking in," said the 26-year currency trading veteran at AT Global Markets, after the social media posts by Trump on Monday in New York sent the dollar soaring. "The good thing is there's plenty of opportunity to make money here for the next four years under Trump," said Twidale, who managed to profit from short Mexican peso and Australian dollar bets despite the spillage.
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China Draws a Red Line for the Yuan as Trump Risks Return; The central bank is holding the daily fixing stronger than 7.2
Chongjing Li - Bloomberg
A key level is starting to emerge for the yuan, as China tightens its grip on a currency that is facing fresh tariff threats from US President-elect Donald Trump. The People's Bank of China has consistently set its daily reference rate - Beijing's preferred tool to guide yuan expectations - stronger than 7.2 per dollar since the US election, despite wild swings in the greenback and increasing predictions by analysts that the central bank would buckle. The PBOC set the fixing at a one-week high on Tuesday, pushing back against a widespread selloff versus the dollar after Trump took to social media to promise fresh tariffs.
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Trump's Tariff Threat to Top US Trading Partners Roils Markets; President-elect cites flow of drugs, people across US borders; Republican has vowed to tighten border security in second term
Nancy Cook and Brian Platt - Bloomberg
President-elect Donald Trump vowed additional tariffs on Mexico, Canada and China, shaking markets with his first specific threats to the US's top trading partners since his election win three weeks ago.
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Synapse Still Can't Find Its Money; Also UPS impairment, Macy's small package deliveries, AQR TA Delphi Plus, Tether and Pink Floyd.
Matt Levine - Bloomberg
When you deposit money at a bank, you expect the bank to give it back to you. There are two things you might worry about, two sets of risks that might prevent the bank from giving you back your money. One, which we talk about a lot around here, and which is pretty central to the history and theory of banking and bank regulation, is that the bank might lose the money. Banks do not generally just keep your money in the vault. They use it to make loans, so there is risk: The loans might default, or depositors might all demand their money back at once when the bank does not have a lot of ready cash.
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Winter Is Coming for the Euro in More Ways Than One; The common currency looks doomed to drop to parity with the dollar.
Marcus Ashworth - Bloomberg
With bad economic indicators piling up in recent weeks, the pain is becoming relentless in the euro area. The European Union's politics, finances and its interest-rate path are all exacerbating euro weakness, driving the common currency toward parity with the dollar. Even Europe's largest asset manager, Amundi SA, says a one-for-one exchange rate could happen by the end of the year. Europe may not be in an existential crisis, but it's surely in a pickle.
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One of the Hottest Stocks in the Oil Patch Is a Defunct 19th-Century Railroad; A new approach to wringing cash from its swath of desert has Texas Pacific Land shares soaring
Ryan Dezember - The Wall Street Journal
The remnants of a railroad that went bankrupt in 1888 have become one of the highest-flying stocks in the oil patch-and one of the top performers in any sector this year. Shares of Texas Pacific Land have roughly tripled in 2024 despite languishing oil prices, thanks to a new approach the 100-employee firm has taken to wringing money from its acres in America's most prolific drilling region, the Permian Basin.
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Taxing Farm Animals' Farts and Burps? Denmark Gives It a Try.; Cows and pigs produce a large share of planet-warming methane. A new tax is part of a plan to clean that up.
Somini Sengupta - The New York Times
Denmark, known for its inventive restaurants and elegant design studios, is about to become known for something more basic: the world's first belch and manure tax. That's because there are five times as many pigs and cows in Denmark as there are people. Nearly two-thirds of its land is taken up by farming. And agriculture is becoming its largest share of climate pollution, putting lawmakers under intense public pressure to reduce it.
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Huge election year worldwide sees weakening commitment to act on climate crisis; Among sweeping rightwing electoral victories across the globe, the 'big loser of the elections has been climate'
Oliver Milman - The Guardian
An unprecedented year of elections around the world has underscored a sobering trend - in many countries the commitment to act on the climate crisis has either stalled or is eroding, even as disasters and record temperatures continue to mount. So far 2024, called the "biggest election year in human history" by the United Nations with around half the world's population heading to the polls, there have been major wins for Donald Trump, the US president-elect who calls the climate crisis "a big hoax"; the climate-skeptic right in European Union elections; and Vladimir Putin, who won another term and has endured sanctions to maintain Russia's robust oil and gas exports.
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Sovereign Debt Presents Green Investors With a Predicament; The $64 trillion global market is largely inhospitable to sustainability-minded investing, but also hard to avoid.
Alastair Marsh - Bloomberg
For the hundreds of investors claiming to target net-zero portfolios, their largest holdings are often their biggest problem. That's because the $64 trillion global market for sovereign bonds is largely inhospitable to sustainability-minded investing. Why? There are only a limited number of issuers (fewer than 150 globally compared with more than 70,000 corporate bond issuers), meaning investors risk a much more concentrated portfolio if they seek to avoid climate laggards. Second, some investors have to hold government debt to match their assets with their liabilities, leaving them captive buyers of bonds they might otherwise have shunned.
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Trump's 'Energy Dominance' Agenda Sounds Like a Petrostate Plan to Some; Climate action advocates worry about the fossil fuel industry's influence, but others expect pushback from other businesses, states and citizens.
Marianne Lavelle - Inside Climate News
As President-elect Donald Trump puts together a team that will ramp up fossil fuel production in a country that is already pumping out more crude oil than any nation in history, critics are beginning to use a term once reserved for reviled foes. Specifically, they are asking: Is the United States on its way to becoming a petrostate?
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'Drill, Baby, Drill' Is Unlikely Under Trump, Exxon Says
Mitchell Ferman - Bloomberg
Oil and gas producers in the US will not raise output significantly in the coming years despite calls from President-Elect Donald Trump to "drill, baby, drill," said Exxon Mobil Corp.'s Upstream President Liam Mallon. "I think a radical change is unlikely because the vast majority, if not everybody, is primarily focused on the economics of what they're doing," Mallon said on Tuesday at a conference in London. Trump is expected to open up federal lands for more oil and gas drilling, but much of the land in the country's largest oil and gas producing state, Texas, is private. Still, there's plentiful federal land in neighboring New Mexico which includes the oil- and gas-rich Permian Basin.
/jlne.ws/3CXcTqA
Oil field under Falkland Islands even bigger than first thought
James Titcomb -The Telegraph
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Two European Oil Refiners Starting Plants to Make Synthetic Oil
Rachel Graham - Bloomberg
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UAE Considers EU-Style Plan to Penalize Polluters for First Time; Country is considering carbon tax and cap-and-trade options; Policymakers fear carbon obligations could deter companies
Verity Ratcliffe - Bloomberg
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Biden Offers $4.9 Billion In Financing for Grain Belt Power Line
Ari Natter - Bloomberg
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Walmart rolls back DEI programs after right-wing backlash
Nathaniel Meyersohn - CNN
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Faltering US Offshore Wind Industry Sends Next-Generation Startup Overseas; Though Aikido Technologies has just deployed its first floating platform in US waters, the market there appears increasingly unappealing.
Michelle Ma - Bloomberg
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Ex-Bank of China Chairman Sentenced to Death With Reprieve; Liu Liange found to have accepted $17 million in bribes: CCTV; Penalty underscores heightened scrutiny over financial sector
Bloomberg News
China handed a suspended death sentence to former Bank of China Ltd. Chairman Liu Liange over bribery, marking heightened scrutiny over the nation's $66 trillion financial sector. Liu's penalty carries a two-year reprieve and all his assets will be seized, state broadcaster China Central Television reported Tuesday. The sentence means he could be spared execution if he behaves during the period. Liu was one of the most senior bankers to become implicated in a broad crackdown on corruption in the financial sector unleashed by President Xi Jinping in late 2021. His sentencing followed those of at least two other high-profile financial officials this year, as Xi charges ahead with his signature anti-graft campaign.
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Banco BPM Rejects UniCredit Bid in Latest Setback for Orcel; Combination wasn't agreed, could hurt jobs and competition
Sonia Sirletti and Alberto Brambilla - Bloomberg
Banco BPM SpA rebuffed an unsolicited approach by UniCredit SpA, saying its takeover offer wasn't agreed in advance, is too low and would likely hurt jobs and competition in Italy. The deal terms "do not reflect in any way" Banco BPM's profitability and its potential for value creation, it said in a statement on Tuesday. The offer terms, including a 0.5% premium that has since turned into a discount, are unusual for operations of this type, the bank said.
/jlne.ws/3Z5R8wq
KNG Securities taps Morgan Stanley for new fixed income sales addition; New appointment previously served as part of Morgan Stanley's emerging markets cross asset sales team.
Wesley Bray - The Trade
Fixed income investment bank KNG Securities has added Mert Kisacik to its fixed income sales team, where he will hold responsibility for Turkish and Israeli markets. As part of the role, Kisacik will focus on finding liquidity in both sovereign and corporate bonds for the firm's clients, with a primary focus on hard currency bonds. "Mert's knowledge and relationships with Turkish and Israeli bond market investors will be a valuable addition to our team," said Andrea Podesta, managing partner at KNG Securities.
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Flows jump after mutual fund-to-ETF conversions, BofA study shows; Increasing numbers of US managers are making the move offering investors multiple advantages
Steve Johnson - Financial Times
Fund managers that have converted out-of-favour mutual funds into exchange traded funds are typically being rewarded with a jump in inflows, according to research by Bank of America. The trend, which has seen 121 actively managed US funds with total assets of $125bn switch structure in the past five years, offers hope to under-fire active managers that have seen persistent outflows in recent years as investors have increasingly adopted low-cost index-tracking funds.
/jlne.ws/3VbUi0p
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | The US Gig Economy Is Holding Steady, Not Booming
Cecile Daurat - Bloomberg
For all the talk about influencers and a gig economy boom turbocharged by the Covid pandemic, the numbers don't seem to add up. The percentage of the US workforce in the gig economy has barely budged in six years, according to recent data from the Bureau of Labor Statistics. The share was 10.2% in 2023 versus 10.1% in 2017, the last time the agency published a report on those workers. In the interim, Covid upended worklife as we knew it. Ridesharing soared, shopping via TikTok became a thing and seemingly everybody has become a content creator.
/jlne.ws/49a2dRD
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| Wellness Exchange | | An Exchange of Health and Wellness Information | How employers can set every generation up for financial wellness
Doug Sabella - Benefit News
Each generation of workers has their own financial wellness priorities as they move through different chapters of life. And while companies can't guarantee that their benefits will address the specific needs of every individual employee, they can implement offerings that are impactful for every generation. To do this, employers need to first understand what's important to employees, rather than assuming their priorities.
/jlne.ws/4i3UtES
Wellness Wednesday: Planks
Dee Tiebklang - WMBB via AOL
News 13 brings you a segment focused on health and fitness on News 13 Midday every Wednesday called "Wellness Wednesday". This week, Personal Trainer, Traycee Green, from Pure Platinum was in the studio with News 13's Chris Marchand demonstrating the proper way to do planks.
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Obesity Drugs Would Be Covered by Medicare and Medicaid Under Biden Proposal; The proposed rule could give millions of Americans access to the new drugs; it will also put pressure on the incoming Trump administration.
Margot Sanger-Katz - The New York Times
The Biden administration, in one of its last major policy directives, proposed on Tuesday that Medicare and Medicaid cover obesity medications, a costly and probably popular move that the Trump administration would need to endorse to become official. The proposal would extend access of the drugs to millions of Americans who aren't covered now.
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Modern Warfare Is Breeding Deadly Superbugs. Why? Researchers are trying to understand why resistant pathogens are so prevalent in the war-torn nations of the Middle East.
Francesca Mari - The New York Times
Last October, Christina Assi, a 28-year-old photojournalist for Agence France-Presse, took a selfie against the sunset and WhatsApped it to her mother. "Be careful," her mother replied. Assi and some colleagues had driven to the border in southern Lebanon to cover artillery clashes between Israel and Hezbollah. Wearing protective helmets and blue flak jackets that said "PRESS" in large white letters, they set up on an exposed hill a good distance away from the smears of smoke on the horizon. Drones buzzed overhead. Suddenly, a tank shell struck right next to Assi's position, killing her friend and colleague Issam Abdallah, a 37-year-old videographer for Reuters. The force of the impact slammed Assi into the dirt and pelted her with shrapnel.
/jlne.ws/4fEqvWm
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Indian Stocks Lure $70 Billion From Local Investors in 10 Months
Ashutosh Joshi and Chiranjivi Chakraborty - Bloomberg
Indian investors have poured more than $70 billion into local stocks in the first 10 months of the year, putting inflows on track to reach an annual record just as global funds are exiting. Retail investors, including non-residents, have bought almost $17 billion of local shares this year through October on the National Stock Exchange of India. The bourse accounts for more than 90% of the country's equity cash trading. Local institutions added more than triple that amount.
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Sri Lanka Kicks Off $12.6 Billion Distressed Debt Swap; President says restructuring lays groundwork for bright future; Global funds would take a haircut of up to 16 cents on dollar
Karl Lester M Yap, Matthew Burgess, and Catherine Bosley - Bloomberg
Sri Lanka is kicking off an exchange to swap $12.6 billion of its bonds for longer-dated notes as it seeks to complete its dollar-denominated debt restructuring. Investors in the country's bonds can tender their holdings for new international bonds with a haircut ranging between 12 cents and 16 cents on the dollar, according to calculations made by Bloomberg and based on a statement sent to bondholders. A creditor committee holding about 40% of the bonds said in a separate press release it supports the offer.
/jlne.ws/4fJZNvo
Vedanta Plans to Invest $2 Billion in Saudi Copper Projects; The kingdom aims to become a global hub for metals and mining; Investment is also a boost for Riyadh's efforts to attract FDI
Matthew Martin - Bloomberg
Vedanta is set to invest $2 billion to build copper-processing facilities in Saudi Arabia, a significant boost for the kingdom's ambitions to become a global metals and mining hub. The firm, controlled by Indian billionaire Anil Agarwal, will build a new smelter and refinery with a capacity of 400,000 metric tons per year, according to a statement Tuesday. Vedanta also plans to set up a facility to produce as much as 300,000 tons per year of copper rods, a key raw material for electric cables.
/jlne.ws/3OvgY7W
Iraq, Russia, Saudi Discuss Energy Markets Before OPEC+ Meeting
Khalid Al Ansary and Grant Smith - Bloomberg
Officials from Iraq, Russia and Saudi Arabia - three of the biggest nations in the OPEC+ alliance - met in Baghdad to discuss energy markets days before the group's year-end gathering. Iraqi Prime Minister Mohammed Shia Al-Sudani met with Russian Deputy Prime Minister Alexander Novak and Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman on Tuesday, the Iraqi PM's office said in a statement. They discussed the condition of the global energy market, crude oil production, and meeting demand and emphasized maintaining stability and fair prices, according to the statement.
/jlne.ws/49a8HzX
Spain Looks to Big Private Equity Deals to Kickstart IPO Market; Casino operator, travel tech firm among firms eyeing listings; Spanish economy relatively strong; IBEX 35 has outperformed
Pablo Mayo Cerqueiro and Macarena Munoz Montijano - Bloomberg
Bankers are pinning their hopes on a few large private equity-backed listings to rekindle Spain's IPO market next year, after several candidates postponed plans to go public in recent months blaming tough market conditions. Casino operator Cirsa Enterprises, owned by Blackstone Inc., and travel technology firm HBX Group, backed by Cinven and CPP Investments, are planning to launch their initial public offerings in the first half of 2025, which could raise in the range of EUR1 billion ($1.1 billion) each, Bloomberg has reported.
/jlne.ws/3V92GxC
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| Miscellaneous | | Stories that don't quite fit under the other sections | Don't Shun Pinot Grigio! The Good Versions of Wines You Think Are Bad; Five wrongly maligned wine types that deserve your support.
Elin McCoy - Bloomberg
Eavesdrop in trendy wine bars, as I frequently do, and you hear drinkers dissing ever-popular pinot grigio as so bland and boring, lowbrow and declasse that only those who don't know any better would order a glass. Or consider the image baggage of California zinfandel. One of my European friends repeats the trope that this all-American red is undrinkable-gooey, rough and unctuously thick-and white zin has long been maligned as the vino people imbibe when they don't like wine.
/jlne.ws/3COebEv
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