| November 09, 2022 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
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Hits & Takes
John Lothian & JLN Staff.
The impact of the liquidity crisis at FTX that led to a deal for it to be acquired by rival exchange Binance has multiple ramifications, from market structure proposals before the CFTC to change clearing to the price of shares of Robinhood to the naming rights sponsorships of sports arenas. This does not even include the implosion in the net worth of Sam Bankman-Fried, who had made the most money of anyone under 30 since Mark Zuckerberg of Facebook/Meta. SBF, as he is known, set a record for losing the most money in a single day, according to one report, as the value of FTX and Alameda Research, his trading arm, were marked down to a value of $1 in the Binance deal, the report said. Besides the sports arenas, several sports stars are caught up in this crypto drama, including Steph Curry, Tom Brady and Shohei Ohtani.
There is some doubt the non-binding FTX/Binance deal will go through, with Bernstein suggesting there are antitrust issues that could trip up completion of the deal. According to a CoinDesk report, FTX has halted all non-fiat customer withdrawals. This does not help the situation.
It was shared on a CBOT related Facebook group a couple of days ago that Robert Goldberg has passed away. I have yet to find the obituary for Mr. Goldberg, who with his brother David once had one of the largest CBOT clearing firms and later founded Burling Bank. Condolences to the Goldberg family and Bobby's many friends on his passing from all of us at JLN.
The fine people at Straits Financial, an FCM with a global presence and strong focus on agriculture here in the U.S., has asked me to invite FIA EXPO attendees to the Straits hospitality suite in the Presidential Suite in the Sheraton Grand Chicago Riverwalk hotel on Sunday evening,11/13/2022, from 5 p.m. to 10 p.m. and on Monday, 11/14/2022, from 6 p.m. to 10 p.m. Straits wishes to welcome FIA Expo attendees who are traveling into Chicago the day before, in preparation for the first day. Whether attendees are from out of town or in the Chicagoland area, Straits wants to provide a relaxed setting to have a drink, a bite to eat, network with industry colleagues, take in city views from the 30th floor, watch some football on tv and maybe play a game of billiards on the in-suite pool tables. Straits looks forward to welcoming you in Room 3001.
Bloomberg has a special report today titled "Navigating Cyber Risk." The description is, "The war in Ukraine and new developments in artificial intelligence highlight advances in cyber defence. Plus: how organisations should prepare and respond to breaches; and, is cyber insurance worth the money?"
FTSE Russell is out with its latest Russell 2000 Index quarterly chartbook. See the new Russell 2000 Index quarterly chartbook for a Q3 update on index performance, sectors, and risks in the small cap market. You can find the chartbook HERE.
Charlotte Crosswell, OBE, has been named as the first chair of the Centre for Finance, Innovation and Technology (CFIT) and will start in January.
The SEC Historical Society shared this story on LInkedIn yesterday, "Today in 1961, the #SEC issued In the Matter of Cady, Roberts & Co. William Cary's opinion included the "disclose or abstain rule," establishing that recipients of nonpublic material information must either disclose that information before trading or not trade at all."
The winner of the recent $2 billion Powerball lottery drawing is doubly lucky. The winning ticket was drawn in California, a state that does not tax lottery winnings. Talk about luck.
Leslie Phillips, a British actor who voiced the sorting hat in the Harry Potter films, has died at the age of 98, The New York Times reported.
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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There is a new Exchange Analytics course for FINRA Firms, FINRA Firm Element CE & Annual Compliance Meeting. The course is designed to satisfy FINRA registered firms' requirement to provide Firm Element Continuing Education and Annual Compliance Meeting requirements. It is offered in a semi-customizable format that allows you to choose from a comprehensive selection of topics in order to tailor the course to your firm's specific needs. It also allows you to add a limited amount of firm-specific content. For more information, go here.~SR
Today is Finance Day at COP27, the global climate change conference in Egypt, with many live sessions and ongoing breaking information related to greening the financial system. BloombergGreen, Reuters, UNEP FI and others are live tweeting developments. Follow the hashtags #COP27 and #FinanceDay on Twitter to learn about live streams and keep up with events.~SAED
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MWE SHORT: Gary DeWaal - Regulation, Compliance and the Grandma Test
JohnLothianNews.com
When you are faced with a difficult decision, picture this: you're sitting at Thanksgiving dinner, the family is gathered around the table, and grandma comes in holding a newspaper with your picture on it. If she is happy to read about your decision, it was probably a good decision. If not, it was probably the wrong decision.
Watch the video »
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Crypto Billionaires and CEOs Can't Be Trusted; The cryptocurrency industry is heading for a crisis of confidence, caused by the statements of one of its most influential players.
Luc Olinga - The Street
It is a movie that has already been seen over and over again. At some point, it becomes annoying and boring because the scenario is always the same. You only have to change the protagonists and actors and you get the same result. This movie is one that features the cryptocurrency industry that wants to completely disrupt the financial services industry. Crypto space evangelists are touting how their industry is different, how it's disrupting the aging mainstream finance once and for all. They claim that their industry is decentralized and open. But it is clear that the crypto industry is more opaque than the traditional finance world it intends to change. Transparency is a word that has disappeared as if by magic in the sector.
/jlne.ws/3UiQXKu
****** Markets need what former CBOT Chairman Bernie Dan used to say, almost as a mantra: transparency, integrity and fairness. When CEOs lie, there is no integrity or fairness and ultimately the lie becomes transparent to all.~JJL
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Sam Bankman-Fried No Longer a Billionaire After $14.6B Wipe-out: Bloomberg
Cheyenne Ligon - CoinDesk
FTX CEO Sam Bankman-Fried has vanished from the Bloomberg Billionaires Index after his estimated personal wealth plummeted nearly 94% to $991.5 million in a single day. Binance CEO Changpeng "CZ" Zhao announced on Tuesday that he had inked a provisional agreement to acquire FTX after concerns mounted about the Bahamas-based exchange's apparent insolvency, leading to a slowdown in withdrawals and freefall in the price of FTX's native token.
/jlne.ws/3UIG3xm
***** Can SBF be trusted because he is not a billionaire anymore?~JJL
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FTX's Push for US Crypto Clearing Left In Suspense By Binance Deal
Jesse Hamilton - CoinDesk
The crypto industry has eagerly watched for a decision from the U.S. Commodity Futures Trading Commission to allow FTX to directly clear its customers' derivatives transactions, but that market-shaping application has entered murky territory. The potential Binance deal to acquire FTX leaves the ownership of the applicant - FTX US Derivatives - in flux, raising questions about whether and how the effort will proceed. The company's application, if approved by the regulator, could upend the way margin-backed derivatives trades are cleared, cutting out the long tradition of clearing houses in those markets.
/jlne.ws/3EeFExp
****** You have to wonder what this implosion will do to the credibility of the FTX clearing proposal. I would not want to be the CFTC commissioner who approved this proposal after this. I would at least put it on the back burner for some long term research to assess its potential implications. I would bury it right next to some of the Eurex clearing proposals at the CFTC that have not seen the light of day in years, or am I uninformed.~JJL
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The Story of Sam Bankman-Fried's Backroom Deal With Binance's CZ
Daniel Kuhn - CoinDesk
We may never know how close Sam Bankman-Fried's (SBF) crypto empire came to collapse, or the collateral damage that would have caused for the industry, but we do know the principal risks at play. And sadly, it's the same issues Bitcoin was created over a decade ago to solve: financial self-dealing, human hubris and untransparent markets.
/jlne.ws/3EgSnzy
****** Who is going to get the movie rights to this story? It has Hollywood written all over it.~JJL
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Tuesday's Top Three
Our top story Tuesday was The Wall Street Journal's Bitcoin, FTT Prices Drop After FTX-Binance Tussle Hits Cryptocurrencies. Second was Tensions Between Crypto Giants FTX, Binance Spill Into Public View, also from The Wall Street Journal. Third was a tie between Face-Off Between Crypto Billionaires Is the Market's Biggest Near-Term Risk, from Barron's and Here's How Wall Street's Valuing the Record $1.9 Billion Powerball Jackpot, from Bloomberg.
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| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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| Lead Stories | Sam Bankman-Fried's $16 Billion Fortune Is Eviscerated in Days; The FTX co-founder is on the brink of a 94% wealth wipeout at the hands of his billionaire rival, Binance's Changpeng Zhao.
Tom Maloney - Bloomberg
Just weeks ago, Sam Bankman-Fried was considered crypto's version of John Pierpont Morgan, willing to throw around his massive fortune to save the industry. The curly-haired 30-year-old known as SBF was everywhere, backing flailing projects including BlockFi, Voyager Digital and Celsius. From the Bahamas, he invested in Robinhood Markets Inc., raising speculation that he'd take over the trading app. And why not? Just last year he said that once his FTX was big enough, it could swallow CME Group Inc. or Goldman Sachs Group Inc.
/jlne.ws/3UrQc1N
Crypto exchange Binance plans to acquire major rival FTX
Hannah Lang and Tom Wilson - Reuters
Binance, the world's largest cryptocurrency exchange, has signed a nonbinding agreement to buy FTX.com, a unit of major rival FTX, to help cover a "liquidity crunch" at the cryptocurrency exchange, Binance CEO Changpeng Zhao said on Tuesday. FTX has come under pressure after Zhao said on Sunday his firm would liquidate its holdings of FTX's in-house token, FTT, due to unspecified "recent revelations." "This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch," said Zhao in a tweet, noting that Binance has the discretion to pull out from the deal at any time.
/jlne.ws/3WKi2b3
Binance's Deal for Rival FTX Marks Power Shift Amid Crypto Turmoil
Vicky Ge Huang, Caitlin Ostroff and Caitlin McCabe - The Wall Street Journal
Cryptocurrency exchange FTX, months after looking like a shining survivor in a struggling industry, succumbed Tuesday to a sudden liquidity crunch of its own and agreed to be taken over by rival Binance. The deal signals a power shift in the crypto world, which has been hurt by rising interest rates and investors' retreat from risk. The pact marks a victory for Binance founder Changpeng Zhao and a humbling comedown for Sam Bankman-Fried, the founder of FTX, which had been growing in size and recognition before a clash between the two men set off a series of events that shook investor confidence in his firm.
/jlne.ws/3WLLNs8
Hong Kong's Stock Exchange Hit Hard by Market Rout; Operator HKEX has underperformed city's benchmark index this year but has plans that could boost activity
Dave Sebastian - The Wall Street Journal
Hong Kong's stock market has performed badly this year-but its stock-exchange operator has done even worse. The shares of Hong Kong Exchanges & Clearing Ltd. are down 43% since the start of the year, even after a rally so far in November. That is a bigger drop than that of Hong Kong's benchmark Hang Seng Index, which has fallen 30% in the year to date. It also compares poorly with its global peers-no major exchange operator has lost more value this year.
/jlne.ws/3Eiik1R
Contagion fears sweep crypto sector after FTX liquidity crisis; Cryptocurrency prices tumble amid worries that possible Alameda collapse could spread rapidly through market
Joshua Oliver - Financial Times
Contagion fears are sweeping across the crypto industry as market participants race to determine who is exposed to Sam Bankman-Fried's secretive digital asset trading company Alameda Research. Alameda, a proprietary trader, has been a low-profile part of the entrepreneur's crypto empire, but is at the centre of the storm that has engulfed his crypto exchange FTX.
/jlne.ws/3Tqa1VQ
Sam Bankman-Fried Bows to Rescue From Binance's CZ as FTX Buckles; Crypto exchange giants joint force after spat between founders; Token prices tumble amid concern over deal closing, terms
Yueqi Yang and Olga Kharif - Bloomberg
Billionaire Changpeng "CZ" Zhao became the undisputed king of the crypto world on Tuesday, shocking the industry with a move to take over FTX.com, the troubled firm led by his chief rival and onetime disciple, Sam Bankman-Fried. The letter of acquisition intent by Zhao's Binance Holdings came after a bitter feud between the two men spilled into the open, with Zhao actively undermining confidence in FTX's finances and helping spark an exodus of users from the three-year-old FTX.com exchange. A day before accepting the deal from Binance, Bankman-Fried said on Twitter that assets on FTX were "fine." By Tuesday, he had changed his messaging.
/jlne.ws/3UkMg2F
'Lightning fast': Liquidity crisis hits Sam Bankman-Fried's crypto empire; Abrupt fall marks reversal from billionaire's role as a white knight during this summer's industry crisis
Joshua Oliver, Nikou Asgari and Scott Chipolina - Financial Times
Billionaire Sam Bankman-Fried's sudden fall from crypto "saviour" to rescue recipient has dealt a severe blow to the fragile confidence of the $1tn digital asset market, leaving traders and investors shocked at the speed of the near-collapse of one of its pillars. FTX and Alameda Research, Bankman-Fried's crypto exchange and trading firm, were a week ago considered some of the most reliable stars of the crypto market. Bankman-Fried had enhanced his reputation by supporting struggling peers such as lender BlockFi at the height of the summer crypto crisis. That earned him the nickname of "crypto Pierpont Morgan" - a reference to the banker who stepped in to halt a bank run in 1907.
/jlne.ws/3hpZg8M
Crypto exchange FTX saw $6 billion in withdrawals in 72 hours -CEO message to staff
Tom Wilson and Angus Berwick - Reuters
Crypto exchange FTX saw around $6 billion of withdrawals in the 72 hours before Tuesday morning, according to a message to staff sent by its CEO Sam Bankman-Fried that was seen by Reuters. In a surprise move, Changpeng Zhao, boss of major rival Binance, said on Tuesday the company signed a nonbinding agreement to buy FTX's non-U.S. unit, FTX.com, to help cover a "liquidity crunch" at FTX.
/jlne.ws/3TeLAuw
Crypto Retail Investors Rattled as Binance Moves to Acquire FTX; The potential acquisition shocked an industry that saw Sam Bankman-Fried as a safety net.
Claire Ballentine and Charlie Wells - Bloomberg
Sam Bankman-Fried was an anchor for investors during the crypto meltdown earlier this year. But the tables turned dramatically on Tuesday. News that Bankman-Fried's FTX.com would be taken over by billionaire Changpeng "CZ" Zhao's Binance Holdings shocked the retail trading community, many of whom viewed the exchange as a relative safe haven. Its 30-year-old founder had become a face of crypto as he amassed a fortune of about $16 billion and bailed out troubled companies in the industry.
/jlne.ws/3UtCg7G
US Government May Liquidate Around $4.4B In Bitcoin When The Time Is Right
Vandana Singh - Benzinga
Over the last couple of years, the U.S. government has become one of the largest whales of Bitcoin (CRYPTO: BTC/USD), with over 214,046 bitcoins at minimum. The Department of Justice (DOJ) seized around 50,676.17 bitcoins (roughly $1 billion at today's prices) in November 2021 from a Bitcoin trader named James Zhong, who defrauded darknet marketplace Silk Road. The seizure is notable-it's the third largest in cryptocurrency history by Crypto Briefing's count-especially considering the amount of Bitcoin the U.S. government already has under control.
/jlne.ws/3fRIgrF
Bernstein: Binance-FTX Deal May Attract Antitrust Regulators' Attention
Will Canny - CoinDesk
Crypto exchange Binance would have a more than 80% share of the global crypto market if the agreement to buy rival FTX goes ahead, and that could attract the attention of antitrust regulators, Bernstein said in a research report Tuesday. Binance agreed to buy FTX on Tuesday after its rival suffered a liquidity crisis. Financial terms of the deal were not disclosed.
/jlne.ws/3zZZ9qK
FTX Exchange Halts All Crypto Withdrawals
Tracy Wang - CoinDesk
Crypto exchange FTX has halted all non-fiat customer withdrawals, an FTX support employee confirmed in the company's official Telegram group Tuesday afternoon. "Any transfers besides fiat are halted," wrote the FTX Support employee. The halt highlights the deteriorating condition of the exchange, which was previously still processing withdrawals, albeit at a slower pace.
/jlne.ws/3GiEUJd
G20 OTC derivatives reforms stall in filling remaining gaps; The latest report from the Financial Stability Board finds although overall implementation is "well advanced", annual progress remains incremental when it comes to completing the final steps.
Wesley Bray - The Trade
The Financial Stability Board (FSB)'s latest report on OTC derivatives reforms across the G20 has found that while overall implementation across the 24 FSB member jurisdictions of the G20's over-the-counter (OTC) derivatives reforms was well advanced by 2021, only incremental annual progress is being seen in filling in the remaining gaps in implementation.
/jlne.ws/3A2qJDT
Singapore Exchange launches digital asset trading solution through FX subsidiary; The solution from MaxxTrader offers OTC FX execution for digital assets and is designed to offer traders a deeper liquidity pool and extended trading hours, reflecting SGX's ambitions to extend its global FX offering.
Laurie McAughtry - The Trade
Singapore Exchange (SGX) subsidiary MaxxTrader, a single source and direct-to-market FX trading platform, has deepened the digital liquidity pool with the launch of MaxxDigital, a new digital asset trading solution.
/jlne.ws/3EhG0Dg
Robinhood Collapses Following Difficulties of Savior; Shares of Robinhood, the brokerage, plummeted by 15% as FTX was acquired to save it from collapsing.
Ellen Changnov - The Street
Sam Bankman-Fried bought a 7.6% stake in May in Robinhood, a brokerage meant to attract Millennial investors who sought to invest in cryptocurrencies. But Bankman-Fried, the founder of FTX, a popular cryptocurrency exchange, faced even larger hurdles that investors were not aware of. Robinhood (HOOD) - Get Free Report shares tumbled on Nov. 8, ending off $2.29, or 19%, at $9.74 a share as Binance, the crypto behemoth, said it would acquire FTX, which was once its rival due to a "liquidity crunch."
/jlne.ws/3TnjX2D
Binance Takeover of FTX Is a Huge Red Flag for Crypto
Joe Light - Barron's
One of the most dangerous moments in any hurricane is when the eye passes. Gale winds give way to calm, tempting those hunkering down to come out and assess the damage only to find that more of the storm has yet to come. So it goes for the cryptocurrency industry.
/jlne.ws/3hgNai7
FTX Token Falls 80% Despite Binance Bailout as Alameda Contagion Spreads to Bitcoin
Krisztian Sandor - CoinDesk
The FTX's exchange token, FTT, went into freefall Tuesday even after the company got a lifeline from larger rival Binance - as fears mounted over the crypto trading firm Alameda Research's financial woes, fueling what appeared to be contagion driving down prices broadly across digital asset markets.
/jlne.ws/3UiW6SO
France to Reap $31 Billion Windfall From Renewable Energy Firms; Onshore wind biggest
contributor over two years through 2023; Receipts to cover only part of state support for consumers
Francois De Beaupuy - Bloomberg
France will reap EUR30.9 billion ($31 billion) from renewable-power producers over two years as Europe's energy crisis boosts wholesale prices beyond guaranteed levels. Onshore wind producers will be the biggest contributor to the government's coffers over the two years through 2023, generating revenue of €21.7 billion, France's energy regulator estimated in a statement on Tuesday. Solar, biomethane and other renewable energies will also contribute.
/jlne.ws/3fNqENF
COP27 Latest: Al Gore Says Markets Are More Powerful Than GOP
Alastair Marsh, Natasha White, Mirette Magdy, and Frances Schwartzkopff - Bloomberg
Al Gore, the former US vice president turned climate campaigner, said any Republican Party efforts to force through policies that penalize green investors would be at odds with market forces that are ultimately more powerful than politics. "Markets are making a different decision," Gore said in an interview with Bloomberg Television's Francine Lacqua in Egypt on Wednesday. "We're seeing a massive movement toward more climate friendly policies."
/jlne.ws/3NQgmJ0
Why 'Perpetual Bonds' Are Rocking Credit Markets
Lorretta Chen and Ameya Karve - Bloomberg
The bonds may be "perpetual," but the headaches they caused in Asia in early November were immediate: An obscure South Korean insurer bucked convention by initially opting not to pay investors back, in a wakeup call that a wave of firms could follow suit. That sent prices on many "perps" tumbling by a record. Signs that the Federal Reserve would guide interest rates even higher than expected worsened the rout. The turmoil was a reminder to global investors that securities that are unremarkable parts of the financial plumbing in normal times can present unexpected risks when pressures build.
/jlne.ws/3AnULCv
COP27: Mark Carney clings to his dream of a greener finance industry; One year on from Glasgow, the former Bank of England governor's $130tn alliance risks falling short of expectations and promises
Kenza Bryan - Financial Times
In the months leading up to the Glasgow COP26 climate change conference last November, the UK government spent long hours lining up landmark agreements to be announced during the week on car emissions, deforestation, methane and more.
/jlne.ws/3Ed2q7N
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Ukraine's Zelensky Sets Conditions for 'Genuine' Peace Talks With Russia; President says he is open to negotiations that guarantee his country's territorial integrity
Matthew Luxmoore, Laurence Norman and Marcus Walker - The Wall Street Journal
Ukrainian President Volodymyr Zelensky said he was open to "genuine peace talks" with Russia, following pressure from Western backers to signal readiness for negotiations amid concerns about the rising costs of the eight-month war. Mr. Zelensky said Ukrainian conditions for talks included returning Ukrainian control over its territories, compensating Kyiv for Moscow's invasion and bringing to justice perpetrators of war crimes. In an address late Monday, he said that efforts should focus on "stopping Russian aggression, restoring our territorial integrity and forcing Russia into genuine peace talks."
/jlne.ws/3UkClug
Putin's Elite Tremble as Hardliners Call for 'Stalinist' Steps
Bloomberg News
The rise of outspoken hardliners in the Kremlin is alarming insiders fearful the Russian president will heed their calls for even more confrontation abroad and sweeping repression at home. Senior business executives and government officials have watched with growing worry as players they once considered marginal like Yevgeny Prigozhin, known for his Wagner mercenary company and recruiting of prison inmates to fight in Ukraine, have become the public forces behind Vladimir Putin's push to step up his increasingly all-encompassing war effort.
/jlne.ws/3EhUCCN
Russia's Opposition Has No Plan for Ending the War; The failure to offer a credible alternative to Vladimir Putin instead of theoretical visions of a better future just plays into his hands.
Leonid Bershidsky - Bloomberg
With the Ukrainian and Russian armies stuck in November mud without significant advances, retreats or mutually acceptable grounds for a negotiated resolution, Western hunger for some kind of a workable scenario is becoming palpable. Costly, destructive and fraught with political dangers far beyond Ukraine's borders, the conflict cannot go on forever. Hence the recent reports that the US wants Ukraine to show at least an outward willingness to negotiate and that National Security Adviser Jake Sullivan has conducted private talks with Kremlin insiders.
/jlne.ws/3tecEPV
Russia Seeks to Dial Back Putin's Nuclear War Threat Again; Message sent amid efforts to resume New START negotiations; Nuclear tensions had risen amid military setbacks in Ukraine
Jonathan Tirone - Bloomberg
Russian diplomats tried to dial back rising fears the Kremlin might use nuclear weapons in its war in Ukraine, clarifying that their use against conventional forces would only occur if the existence of the country was at stake.
/jlne.ws/3Tmj6iy
There Aren't Enough Ships to Carry Russia's Crude; Moscow will need three times as many oil tankers after EU sanctions.
Julian Lee - Bloomberg
Can Russia divert its crude sales to Asia when European Union sanctions hit next month? And how much must it shift? Seaborne flows to Europe's buyers have already come down sharply and averaged about 750,000 barrels a day in October. A small amount will keep flowing to Bulgaria, which secured a partial exemption from the EU ban. That will reduce the volume being diverted to about 700,000 barrels a day.
/jlne.ws/3hmucGV
Putin's nuclear threats may hint at an electromagnetic pulse strike; Launching such a weapon over Ukraine would be lethal to Kyiv's information warfare systems
Roger Pardo-Maurer - Financial Times
So far, Russia's threats of escalation against Ukraine have been largely interpreted as a veiled reference to the use of traditional nuclear weapons. But there is another tool which Vladimir Putin may be considering: a tactical electromagnetic pulse, or EMP, strike. These weapons - designed to create a powerful pulse of energy which short-circuits electrical equipment such as computers, generators, satellites, radios, radar receivers and even traffic lights - could disable Ukraine's military and civilian infrastructure at a stroke and leave the country without light, heat, communications or transport.
/jlne.ws/3huaUzm
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Hong Kong Launches International Carbon Marketplace, Singapore Introduces ESG Hub; Hong Kong's Core Climate aims to facilitate trading of carbon credits, while the Hub plans to expedite Singapore's ESG ecosystem growth.
Latham & Watkins LLP - JD Supra
On 28 October 2022, the Hong Kong Exchange and Clearing Limited (HKEX) launched Core Climate, Hong Kong's International Carbon Marketplace. The birth of Core Climate is a further step toward the growth of ESG initiatives in Asia, which are gaining particular traction among the continent's stock exchanges. HKEX hopes that Core Climate will support the global energy transition by facilitating an effective and transparent trading of carbon credits.
/jlne.ws/3hvzOPr
Indonesia Stock Exchange to add carbon trading
Nik Pratt - Funds Global Asia
Indonesia stock exchange, IDX, MVGX,The Indonesia Stock Exchange (IDX) is planning to develop carbon trading capabilities after entering into a partnership with Metaverse Green Exchange (MVGX), the Singapore-based fintech. Indonesia is seen as one of the few developing economies in the region with the foundations of a carbon trading market. In March 2021, the Indonesian government announced plans to launch an emissions trading scheme by 2025. It has established carbon pricing regulations, and the work of the IDX and MVGX will be seen as a way to further Indonesia's ambitions to be a hub for green finance.
/jlne.ws/3hi1Sp6
EEX Press Release: EEX and the Coalition for Rainforest Nations intend cooperation in REDD+ sovereign carbon credits
EEX
The European Energy Exchange (EEX) and the Coalition for Rainforest Nations (CfRN) announced their intention to cooperate in the establishment of a market platform for REDD+ sovereign carbon credits. For this purpose, during the UN Climate Change Conference COP27, both partners have signed a letter of intent. Reducing Emissions from Deforestation and Degradation (REDD+) is a global conservation mechanism for tropical forests under the United Nations Framework Convention on Climate Change (UNFCCC) and was enshrined in Article 5 of the Paris Agreement. It incentivizes developing countries to reduce emissions from deforestation.
/jlne.ws/3DVX8xd
Euronext announces volumes for October 2022; Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris
Euronext
Euronext, the leading pan-European market infrastructure, today announced trading volumes for October 2022.
/jlne.ws/3NUCwKs
Trading Arrangements of China
HKEX
Exchange Participants are requested to note that ChinaAMC HSI ESG ETF (Stock Code: 3403 - HKD Counter, 83403 - RMB Counter, 9403 - USD Counter) has been authorized under collective investment scheme by the Securities and Futures Commission and is expected to commence trading on the Exchange and admitted to the list of Designated Securities eligible for short selling on 10 November 2022 (Thursday). This RMB counter will also be eligible for the RMB Equity Trading Support Facility (TSF). Investors should always refer to the details about the Fund provided by the Fund Manager, e.g. Net Asset Value per Unit, before trading the abovementioned ETF(s). Detail of its trading arrangements (Attachment 1) is attached for reference.
/jlne.ws/3DTeomP
Moscow Exchange starts trading in stock options
MOEX
The Moscow Exchange continues to develop a line of derivatives market instruments available to all categories of investors, including unqualified ones.
/jlne.ws/3fR1hug
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Meta to Begin Widespread Job Cuts Wednesday Morning; CEO Zuckerberg alerted executives that layoffs were imminent; Facebook parent previously warned of cost cuts, restructuring
Kurt Wagner - Bloomberg
Facebook parent Meta Platforms Inc. is planning to begin widespread job cuts on Wednesday, according to people familiar with the matter, part of a plan to reduce costs at the social-media giant following disappointing earnings and a drop in revenue. Employees who are affected will be told starting Wednesday morning, and Chief Executive Officer Mark Zuckerberg spoke to executives on Tuesday to prepare them for the cuts, said the people, who asked not to be identified discussing private information. On the executive call, Zuckerberg said he was accountable for the company's "missteps," according to the Wall Street Journal.
/jlne.ws/3UEAMXz
Yuga Labs, Circle, SkyBridge Among Investments FTX Ventures Made Prior to Liquidity Issues
Brandy Betz, Sage D. Young - CoinDesk
The venture capital arm of cryptocurrency exchange FTX has been a prominent investor in some of the biggest names in the crypto ecosystem. With Binance's possible acquisition of its rival FTX, questions swirl around what will happen to these investments.
/jlne.ws/3TlvEqr
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| Cybersecurity | | Top stories for cybersecurity | House, Senate changes could slow legislative momentum for cybersecurity
Tim Starks - The Washington Post
Election Day on Tuesday has left command of Congress up in the air.
But we can say this much: bipartisan attention to cybersecurity could drop off in the next congressional session regardless of which party controls the House and Senate when all the votes are tallied. The GOP leaders of the House and Senate homeland security panels, Sen. Rob Portman (R-Ohio) and Rep. John Katko (R-N.Y.), have earned reputations as among the more moderate members in their chambers and for working with Democrats to pass cybersecurity legislation. Both are retiring, and it's not clear if the cybersecurity policy momentum will continue.
/jlne.ws/3WKCqJb
The Future Of Cybersecurity: Developing A Risk Intelligence Quotient
Dr. Obadare Peter Adewale - Forbes
Too many organizations are shocked when they experience a cyberattack. They'll say, "We have a firewall, intrusion prevention systems and antivirus software, so why did we still get hacked?" While having a firewall, IPS, antivirus software, etc. is a good place to start, it does not give organizations the ability to find and address their IT vulnerabilities and prevent cyberattacks before they happen.
/jlne.ws/3TrPm3D
Cybersecurity leaders want to quit. Here's what is pushing them to leave
Owen Hughes - ZDNET
Almost a third of chief information security officers (CISOs) and IT security managers in the UK and US are considering leaving their current organization, according to new research. Not only that, but a third are planning to quit their jobs within the next six months.
/jlne.ws/3DVSe3h
No signs of significant hacking issues on Election Day, cyber security officials say
Theara Coleman - The Week
U.S. cybersecurity officials say there has not been any evidence of significant interference from hacking groups as polls across the nation open for the midterm elections. On the morning of Election Day, a senior Cybersecurity and Infrastructure Security Agency official told reporters they "continue to see no specific or credible threat to disrupt election infrastructure," CNN reports.
/jlne.ws/3UmHe65
Ransomware attacks: is there a case for paying up? Victims choosing to pay out have incurred lower average breach costs than those who do not
Hannah Murphy - Financial Times
To pay or not to pay? For companies unfortunate enough to be hit by a ransomware attack, that is the crucial question. Ransomware attacks - in which cyber criminals lock up a victim's data or computer system and release it only if a ransom is paid - exploded in 2020 and 2021, in part because a shift to remote working during the pandemic left organisations more vulnerable to hacking.
/jlne.ws/3FXM5Gt
Cloud computing dependence imperils banks; Reliance on platforms and a concentration of providers leave institutions at risk
Nicholas Fearn - Financial Times
By adopting cloud computing technology to make their systems accessible from multiple locations, financial services companies are launching new, improved digital products and streamlining their operations. But, at the same time, cyber specialists are warning that this cloud migration is exposing companies to a greater risk of cyber attacks and data breaches - as well as the fines and reputational damage they can bring.
/jlne.ws/3G1zYbt
What Ukraine's cyber defence tactics can teach other nations; Security experts are surprised that Russia's attacks have not been more effective
Nick Huber - Financial Times
One of the surprises of the Russia-Ukraine war has been that Ukraine's cyber security has, so far, proved as resilient as its military. Kyiv's cyber tactics - including switching data to the cloud, partnerships with western companies, and using Elon Musk's mobile Starlink terminals to connect to the internet via satellite - have proved highly effective. Ukraine's defences have also been shored up by a £6mn package of IT support and help in detecting Russian cyber threats provided by the UK, according to a statement earlier this month.
/jlne.ws/3tyvIZD
Machine-on-machine cyber defence edges closer; The time it takes for AI to flag suspicious behaviour and detect potential attacks is speeding up
Hannah Murphy - Financial Times
Is the future of cyber security machines versus machines? As hackers increasingly use automation and machine learning to launch cyber attacks at scale, cyber security defenders, too, are turning to artificial intelligence to detect hacks - and, in some cases, kill them dead automatically.
/jlne.ws/3O6gt3z
Rising cost of cyber attacks sends insurance policy charges soaring; Whether to buy cover is a tough decision for company chiefs
Oliver Ralph - Financial Times
When Lloyd's of London found problems in its IT systems in October, the 300-year-old insurance market took some of them offline temporarily, fearing it had suffered a cyber attack. After a thorough investigation, cyber specialists found nothing amiss and life returned to normal after a week or so.
/jlne.ws/3te5HOL
Why a clear cyber policy is critical for companies; Leaders need to be alive to growing threats and tighter regulations
Anna Gross - Financial Times
In October, Joe Sullivan, Uber's former head of security, was convicted of covering up a 2016 data breach at the ride hailing giant by hiding details from US regulators and then paying off the hackers.
/jlne.ws/3G1BxpR
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| Cryptocurrencies | | Top stories for cryptocurrencies | Truflation powers new crypto accessibility platform to bring inflation data to the visually and hearing impaired; Haptics DAO increases Web3 inclusivity by enabling disabled users to access crypto trading, governance voting, and price data, including the Truflation indexes via Voice Command and tactile sensations.
Truflation
Truflation, the independent, real-time inflation data aggregator, has partnered with Haptics DAO, a decentralized voice command platform that uses audio and haptic feedback to help visually and hearing impaired users access wallets, trade cryptocurrencies, and explore price feeds and inflation data.
/jlne.ws/3huOEpm
How a dodgy crypto influencer got rich on YouTube and Twitter-while the platforms and the SEC failed to act
Leo Schwartz - Fortune
Wayne Kacheche believed in Dogecoin because Elon Musk did. The Tesla founder and billionaire kept talking up the popular meme token on Twitter, and in May 2021 even joked about Dogecoin during a Saturday Night Live segment. Shortly after the episode aired, Dogecoin plunged 40%. Kacheche, then a 19-year-old university student living in South Africa, decided to check out Dogecoin. He started watching YouTube videos and came to share a widespread sentiment in the crypto world that Dogecoin had peaked. He began to search for altcoins, going down an algorithmic rabbit hole that brought him to a crypto influencer named Crypto Pablo. After two months of investing, Kacheche believed the channel mostly pushed scams.
/jlne.ws/3DRCM8d
FTX Hit By $1.2B in Withdrawals as Confidence Wavers in Exchange Giant; Binance's Move to Sell FTT Position Triggers 22% Plunge as FTX Scrambles to Shore Up Liquidity
Samuel Haig - The Defiant
FTX's reserves are under siege as a wave of users withdraw their assets from the derivatives exchange after its dependency on its token FTT and its relationship with a sister company, Alameda Research, raised doubts about its financial strength. On Nov, 8, Nansen reported that FTX users had withdrawn $1.2B worth of Ether and ERC-20 tokens from the exchange over the last 24 hours, and deposited just $540M during the same period.
/jlne.ws/3UDNPJ1
FTX on brink of collapse after 'liquidity crunch' at crypto exchange; Binance steps in with deal to rescue arch-rival after surge in withdrawals at Sam Bankman-Fried's digital asset platform
Joshua Oliver, Scott Chipolina and Nikou Asgari - Financial Times
The digital assets industry has been shaken by the near collapse of Sam Bankman-Fried's FTX, one of the largest crypto exchanges, which clinched a rescue deal with arch-rival Binance after a surge in customer withdrawals sparked a liquidity crisis. Binance chief executive Changpeng "CZ" Zhao wrote on Twitter that FTX had "asked for our help", adding: "There is a significant liquidity crunch." Binance has signed a letter of intent to buy FTX but said it had "the discretion to pull out from the deal at any time".
/jlne.ws/3UKPdtv
CZ SBF'ed SBF
Matt Levine - Bloomberg
Bitcoin and other cryptocurrencies suddenly tumbled on Tuesday in Asia, driven by questions surrounding the balance sheet of Alameda Research, billionaire Sam Bankman Fried's crypto trading house. Investors kept pulling assets from FTX, the exchange Bankman-Fried also runs, and sent its native token FTT diving as much as 32%. The turbulence, triggered by rival Zhao "CZ" Changpeng's decision to sell a roughly $530 million holding of FTT coins, brought back memories of the contagion that ripped through crypto markets after the TerraUSD stablecoin collapsed in early May. That upheaval then gave way to months of unusual stability in cryptocurrencies - a lull that appeared to have ended this week.
/jlne.ws/3EgSM4Y
Coinbase CEO Says Trading Activity Rising, No Plan to Buy FTX US; Coinbase's Brian Armstrong said FTX customers could lose money; Armstrong added Coinbase acquiring FTX US wouldn't make sense
Hannah Miller - Bloomberg
Crypto exchange Coinbase Global Inc. said it's seeing increased activity on its trading platform following the drama over the potential acquisition of FTX by Binance. The liquidity crunch that prompted Binance's tentative agreement with FTX wouldn't happen at Coinbase because the company doesn't engage in "risky behaviors," Chief Executive Officer Brian Armstrong said in a Bloomberg Television interview. "We're not investing customer funds," he said. "We're not doing market making or engaged in any kind of complex arrangement with other parties that we own."
/jlne.ws/3fPXQ73
FTX Proves 'FUD' Is Dangerous Weapon in Crypto's Game of Thrones; 'FTX is fine,' Sam Bankman-Fried tweeted. But it wasn't.; Heralded as J. P. Morgan of his time, SBF's firm needs rescue
Michael P. Regan - Bloomberg
Not even the king of crypto is immune from "FUD." The acronym for "fear, uncertainty and doubt" has long been used to mock the drumbeat of warnings about risks that has served as the background music throughout the history of cryptocurrencies. Yet the announcement on Tuesday that Binance would potentially take over Sam Bankman-Fried's FTX.com shows -- once again -- that FUD can create an existential crisis even for a company that appears to be a cornerstone of the industry, with its corporate logo displayed proudly on the breast of Major League Baseball umpires or illuminated above the entrance of famous arenas.
/jlne.ws/3WQKVTg
FTX Takeover Could Jeopardize a Ton of Sports Sponsorships
Bailey Lipschultz - Bloomberg
FTX.com's sale to rival Binance Holdings Ltd. could jeopardize a long list of sports partnerships around the world. The cryptocurrency exchange led by billionaire Sam Bankman-Fried inked a $135 million, 19-year agreement last year for naming rights to the Miami Heat's basketball arena. Major League Baseball umpires wear patches with the company's logo under a sponsorship deal, and FTX has a long-term partnership with Formula 1 racing team Mercedes-AMG Petronas.
/jlne.ws/3UEBuUJ
Alameda Thanked for 'Prompt Response' in Transferring $37M of BitDAO Tokens
Jocelyn Yang - CoinDesk
Sam Bankman-Fried's Alameda Research, the trading firm at the heart of this week's crypto-industry shakeup, is reportedly making good on at least one promise - adhering to an agreement not to sell tokens associated with the BitDAO blockchain project for at least three years. BitDAO, one of the largest decentralized autonomous organizations, confirmed Tuesday in a tweet that some 100 million BIT tokens had been transferred into "the original BIP-4 swap wallet" on the Ethereum blockchain, labeled by the website Etherscan as "Alameda Research 25."
/jlne.ws/3hwytI8
US Treasury Adds to Tornado Cash Sanctions With North Korea WMD Allegations
Nikhilesh De - CoinDesk
The U.S. Treasury Department is "redesignating" Tornado Cash as a sanctioned entity, overtly alleging that North Korea has used the crypto mixing service to support its weapons of mass destruction (WMD) program. The Treasury Department's Office of Foreign Asset Control (OFAC) said Tuesday it would delist and redesignate the privacy tool, which pools transactions to obfuscate senders and recipients, on allegations that North Korea has laundered over $100 million worth of crypto through Tornado Cash to support its WMD program, including the development of ballistic missiles. The sanctions watchdog first designated Tornado Cash in August of this year.
/jlne.ws/3UBD0Ha
Disgraced Crypto Moguls Do Kwon and Su Zhu Emerge After FTX Saga
Joanna Ossinger - Bloomberg
The drama unfolding in the crypto industry has lured two downtrodden scions back into the limelight. Do Kwon, the founder of collapsed stablecoin project Terra, and Su Zhu, the co-founder of bankrupt hedge fund Three Arrows Capital, made online appearances as news of the deal between crypto exchanges FTX.com and Binance broke on Tuesday.
/jlne.ws/3TmcYH4
The World's Largest Crypto Exchange Is Buying a Major Competitor. Here's Why That Matters
Time
Binance, the world's largest centralized crypto exchange, said on Tuesday that it reached a deal to buy its fastest-rising competitor, FTX. Binance's co-founder and CEO Changpeng Zhao announced the move on Twitter, and immediately sent shockwaves through a crypto landscape already besieged by turbulence and falling prices. In the hours after, Bitcoin fell by more than 10%.
/jlne.ws/3hpQUhq
Binance CEO Promises to Implement 'Proof of Reserves' After Run on FTX
Andrew Throuvalas - CoinDesk
Binance CEO Changpeng Zhao said on Tuesday that his exchange would soon introduce "Merkle-tree proof of reserves," in the interest of "full transparency." "Banks run on fractional reserves. Crypto exchanges should not," he tweeted on Tuesday, less than three hours after announcing his company's intention to purchase FTX.
/jlne.ws/3hi2Xxa
Binance boosts emergency insurance fund to US$1 billion on market volatility
Pradipta Mukherjee - Forkast
Binance, the world's largest cryptocurrency exchange, has raised its emergency insurance fund "SAFU" to US$1 billion equivalent in cryptocurrencies, founder Changpeng Zhao said in a Tweet on Wednesday.
/jlne.ws/3A3jzPY
Coinbase says it has minimal exposure to FTX, downplays risk
Ningwei Qin - CoinDesk
Coinbase said a considerable number of new users have registered on the exchange, prompting a halt in operations temporarily, in a tweet early Wednesday morning Hong Kong time, while the crypto exchange claimed it has limited exposure to the underwater crypto exchange FTX.
/jlne.ws/3UxpSmC
Crypto Custody Firm Copper Inks $500M Insurance Deal With UK Giant Aon
Will Canny - CoinDesk
Crypto custody firm Copper has arranged $500 million of insurance cover for digital assets in cold storage, one of the biggest arrangements in the industry, the company said in a statement. The cover was organized by Aon (AON), the largest U.K. insurer by market cap, using a panel of insurers led by Canopius, a Lloyd's of London syndicate, according to the statement.
/jlne.ws/3hrVP1r
Crypto Markets Extend Drop as Doubts About FTX-Binance Deal Grow; Bitcoin, Ether, Solana and the FTT token have all plunged; Bitcoin heading back toward lowest level since November 2020
Vildana Hajric and Muyao Shen - Bloomberg
Cryptocurrencies extended declines as Binance's potential takeover of embattled rival exchange FTX highlighted how strains in the digital-asset industry are now buffeting some of its top players. Bitcoin, the largest token by market value, fell as much as 3.8% on Wednesday after a near-10% decline a day earlier and was trading at about $18,120 as of 11:37 a.m. in Singapore. Just about every digital coin was struggling: Ether, Polkadot, Avalanche, Solana and meme token Dogecoin slumped. Binance Chief Executive Officer Changpeng "CZ" Zhao stunned the crypto world on Tuesday with an announcement that his firm was moving to take over rival FTX.com, which he said was seeing a liquidity crunch.
/jlne.ws/3fTcEC4
Crypto Billionaires' Brawl Triggers Contagion Fears in Markets; FTX's native token FTT plunged as much as 32% on Tuesday; Wider crypto markets swept along with Bitcoin also falling
Philip Lagerkranser and Joanna Ossinger - Bloomberg
After a few months of calm, crypto markets are again facing fears of the kind of turmoil that ravaged digital assets in May and June. Bitcoin and other cryptocurrencies suddenly tumbled on Tuesday in Asia, driven by questions surrounding the balance sheet of Alameda Research, billionaire Sam Bankman Fried's crypto trading house. Investors kept pulling assets from FTX, the exchange Bankman-Fried also runs, and sent its native token FTT diving as much as 32%.
/jlne.ws/3DRBMB8
Crypto Token Takes Wild Ride as Investor Alameda Denies Sale; BitDAO asked trading firm for proof coins had not been sold; Alameda CEO denies sale, provides proof it still holds tokens
Suvashree Ghosh - Bloomberg
A crypto token whose investors include billionaire Sam Bankman-Fried's trading house Alameda Research took a wild ride, dipping and then recovering as worries over potential forced selling by the firm arose and then were dispelled by Alameda. BitDAO, a decentralized community of holders of the BIT token, asked Alameda to provide proof the tokens hadn't been sold after the coin slumped about 25% suddenly on Tuesday morning in London. The concern was that the crypto firm might have dumped them to raise money as questions swirled about the health of Alameda, a large player in the market. Alameda Chief Executive Officer Caroline Ellison denied the sale of the tokens in a reply to a post on Twitter from Ben Zhou, co-founder of the exchange that supports the BIT token, after which it recovered most of its losses to trade at about 39 cents, according to CoinGecko.
/jlne.ws/3DVIiXg
NFTs are a 'Giant Ponzi Scheme:' John Reed Stark
Bloomberg
Former SEC enforcement attorney John Reed Stark tells Katie Greifeld and Tim Stenovec that NFTs are "more crypto nonsense" that turn "victims into victimizers." He says they are just a "giant ponzi scheme."
/jlne.ws/3NREkUb
What Happens to FTX's Gaming and NFT Biz If Binance Deal Goes Through?
Andrew Hayward - Decrypt
Amid today's industry-shaking news that cryptocurrency exchange Binance has agreed to acquire FTX after the latter exchange encountered a liquidity crisis, questions are flying about what it will mean for FTX's many broader Web3 initiatives-including around NFTs and gaming. During the crypto bull market of 2021 and even into early 2022, FTX made significant moves in both spaces, launching its own NFT marketplace, splashing out significant money on esports sponsorship deals, establishing a gaming infrastructure division, and launching a $2 billion FTX Ventures investment arm.
/jlne.ws/3td7h3w
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| Politics | | An overview of politics as it relates to the financial markets | Dem megadonor's crypto exchange forced to sell as liquidity concerns grow
Sam Sutton - Politico
Regulators and lawmakers are beginning to dig into Tuesday's near-collapse of crypto exchange giant FTX, a seismic industry event that is poised to upend the Washington policy debate around how to police digital assets. FTX on Tuesday morning announced it was selling itself to competing crypto exchange Binance after it struggled to meet customer withdrawals. In response, officials at the Commodity Futures Trading Commission, which regulates financial derivatives markets, said they were monitoring the Bahamas-based FTX's cash crunch to ensure it doesn't spill over to U.S. operations that are registered with the agency and aren't being included in the Binance sale.
/jlne.ws/3tgorNW
Homeland Security Admits It Tried to Manufacture Fake Terrorists for Trump
Dell Cameron - GIZMODO
The Department of Homeland Security launched a failed operation that ensnared hundreds, if not thousands, of U.S. protesters in what new documents show was as a sweeping, power-hungry effort before the 2020 election to bolster President Donald Trump's spurious claims about a "terrorist organization" he accused his Democratic rivals of supporting.
/jlne.ws/3hlQt7L
Billionaire Ken Griffin Praises New Florida Home: It's Not the Low Taxes; Citadel founder has been a major benefactor to GOP in midterms; Many wealthy investors migrated to Florida during the pandemic
Felipe Marques - Bloomberg
Citadel's billionaire founder, Ken Griffin, said low taxes didn't bring him to Miami, his firm's adopted home. "It's gonna get me thrown out of here, but taxes weren't part of our decision to come to Florida," Griffin, now the state's richest man, said Monday in a conversation with Francis Suarez, Miami's Republican mayor. "When you've got great schools, a great environment and your streets are safe and clean, that's when you've got a place you want to live in and call home."
/jlne.ws/3G1s3uO
FTX Turmoil Raises Risk That Two Huge Political Donors Will Fade; Sam Bankman-Fried and Ryan Salame spent more than almost anyone else on the US midterms. On the day of the vote, Binance moved to buy FTX amid a liquidity crunch.
Laura Davison and Sonali Basak - Bloomberg
The end of crypto billionaire Sam Bankman-Fried's FTX.com exchange may also wipe out two major US political donors. Bankman-Fried, known as SBF, threw more money at Democrats this cycle than anyone but George Soros, according to OpenSecrets data. One of his top lieutenants, Ryan Salame, has been bankrolling Republicans at almost the same pace as Steve Schwarzman and Peter Thiel. The two men spent a combined $61.3 million in this election cycle. But on Election Day, when they might've been watching to see how their investments in the political process were playing out, FTX found itself caught in a firestorm of speculation and outflows. That culminated in a bombshell announcement from Bankman-Fried: FTX was being bought by rival crypto exchange Binance.
/jlne.ws/3NSIGdG
Spyware Is Running Amok in Europe, EU Lawmaker Warns; Draft says EU lacks oversight of programs such as Pegasus; Trade in spyware is also unfettered, parliament document warns
Lyubov Pronina - Bloomberg
Spyware such as Pegasus is being deployed by state-run organizations across the European Union to snoop on politicians and journalists with virtually no EU-level oversight, according to a draft report for the bloc's parliament. The document on the use of surveillance spyware released on Tuesday said citizens can "safely assume that all EU member states have purchased one or more commercial spyware products" such as Pegasus, developed by Israel-based NSO Group Ltd.
/jlne.ws/3UFuhDZ
EU expected to publish clearing proposal on December 7; Requirement for actively managed accounts in EU still being discussed by European Commission
Costas Mourselas - Risk.net
The European Commission is due to publish its long-awaited proposals to reform clearing in the European Union on December 7, according to five sources close to the discussions. The sources say that the date is currently being targeted by the EC, but that there is still some level of uncertainty.
/jlne.ws/3WRhvV4
Russia becomes India's top oil supplier as sanctions deflate price; Urals imports surpass Iraqi and Saudi crude as US signals support for New Delhi's approach
Chloe Cornish, John Reed and Tom Wilson - Financial Times
Russia has surpassed Iraq and Saudi Arabia as India's largest supplier of oil, according to independent research companies, as Asia's third-largest economy cashes in on steep price discounts caused by sanctions against Moscow. India has historically bought most of its oil from Iraq and Saudi Arabia, but Russian imports have surged since president Vladimir Putin's invasion of Ukraine. Western energy sanctions against Russia have pushed it to cut prices for those buyers still willing to purchase its crude, squeezing out more expensive supply in countries such as India, oil trade data show.
/jlne.ws/3EidwcG
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| Regulation & Enforcement | | Stories about regulation and the law. | Georgia man pleads guilty to stealing bitcoin worth $3.4 billion
Ryan General - NextShark
A real estate developer has pleaded guilty to stealing over 50,000 bitcoin from the dark web marketplace Silk Road about a decade ago. On Monday, the Southern District of New York revealed in a statement that the Justice Department recovered $3.4 billion worth of the cryptocurrency last year from the alleged perpetrator, identified as James Zhong.
/jlne.ws/3UfkkgN
Canada's BMO books $834 million charge over U.S. Ponzi lawsuit loss
Reuters
A U.S. jury on Tuesday found a local unit of Canada's Bank of Montreal (BMO) liable for over $550 million in damages over a Ponzi scheme operated by a Minnesota businessman, leading the bank to book a charge of C$1.12 billion ($834.2 million). Thomas Petters was found guilty in 2009 of orchestrating a $3.65 billion Ponzi scheme and sentenced to 50 years in prison.
/jlne.ws/3fXqJOC
Chairman Behnam to Participate in a Fireside Chat at the First Annual Symposium of the Futures & Derivatives Law Report
CFTC
Chairman Rostin Behnam will participate in a fireside chat moderated by De'Ana Dow at the First Annual Symposium of the Futures & Derivatives Law Report.
/jlne.ws/3WOyAP4
SEC's WhatsApp Probe Reaches Into Private Equity With Apollo, Carlyle, KKR; Apollo, Carlyle, KKR are asked about electronic messaging; Banking giants paid combined $2 billion to settle allegations
Dawn Lim and Allison McNeely - Bloomberg
Financial regulators are looking at the biggest private equity firms' use of WhatsApp and other messaging apps for work, in a signal that the US is ramping up its push to police Wall Street's electronic communications. Apollo Global Management Inc., Carlyle Group Inc. and KKR & Co. said in regulatory filings this week that they received letters from the Securities and Exchange Commission on their use of electronic messaging for business.
/jlne.ws/3UoESU0
JPMorgan, Invesco Among Firms Railing Against SEC's Names Rule; Watchdog has proposed rules to crack down on misleading funds; At least 30 firms and trade groups have pushed back on plans
Elaine Chen - Bloomberg
JPMorgan Asset Management, Invesco Ltd. and Dimensional Fund Advisors are among large money managers pushing back against proposals by US regulators to crack down on misleading fund names. The Securities and Exchange Commission is floating tighter rules that would require certain funds to have at least 80% of assets correspond to investment strategies listed in their names. While the new rules are partly aimed at preventing greenwashing and ensuring ESG-labeled funds aren't misleading investors, they would also affect a broad swath of funds that invest based on characteristics such as "value," "growth" and "income."
/jlne.ws/3DVwDry
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | No clear gain: banks question SEC's Treasuries clearing plan; US Treasuries dealers say clearing won't help post-Covid illiquidity - and could harm it
Sharon Thiruchelvam - Risk.net
Trading in US Treasuries - the world's most liquid bond market - is suffering a major dry spell. The market has grown by about $7 trillion since the end of 2019. Yet bank dealers have limited market-making capacity - partly due to the stringent regulatory capital requirements imposed by the supplementary leverage ratio (SLR). In September, the US Securities and Exchange Commission proposed a partial solution in the form of expanded clearing of US Treasury securities and repo transactions
/jlne.ws/3TkgP7t
Musk Sells $3.95 Billion of Tesla Stock After Buying Twitter; Billionaire offloads 19.5 million shares of electric-car maker; Latest sale brings total stock sold to about $36 billion
Anders Melin - Bloomberg
Tesla Inc. Chief Executive Officer Elon Musk sold at least $3.95 billion of the electric-vehicle maker's shares just days after closing his buyout of Twitter Inc. Musk unloaded 19.5 million shares, according to regulatory filings on Tuesday in New York, his first disposals since August. The documents didn't indicate that the transactions were pre-planned. The world's richest person followed through with his takeover of the social-media platform in October, after spending months trying to get out of it. In August, Musk had said he was done offloading Tesla stock and that it was important to avoid an "emergency sale" of the shares in case he was forced to close the Twitter acquisition and struggled to bring in additional equity partners.
/jlne.ws/3G2m88C
Wall Street's Alchemists Turbocharged Wild Swings in Treasuries; Placid financial markets fueled surge in low-volatility wagers; Scramble to hedge exposures is exacerbating rates swings
Justina Lee and Liz McCormick - Bloomberg
Over the last decade, as rock-bottom interest rates depressed returns on fixed-income assets, the alchemists of Wall Street came up with a solution for investors who needed fatter yields: a whole series of complex products that spun extra basis points out of comatose markets. Now, amid the worst bond rout in at least five decades, firms have been scrambling to hedge their positions, piling into derivatives that benefit from higher volatility as they seek to limit the damage.
/jlne.ws/3WKiW7r
Simon Cowell Sells Bonds Backed by 'Got Talent' Franchise; Cowell's Syco securitized its TV-related intellectual property; Deal was first securitization of reality program royalties
Carmen Arroyo and David Brooke - Bloomberg
Simon Cowell's entertainment company has sold $125 million of bonds backed by the "Got Talent" televised talent shows, in what the arranger of the debt said is the first securitization of its kind. Cowell's Syco Entertainment worked with White Oak Merchant Partners, a brokerage, on the transaction, White Oak said in a statement. The securities were sold privately. Guggenheim Securities, the sole placement agent and structuring advisor on the deal, said it was the first securitization of royalties from a reality show.
/jlne.ws/3UB8Kfy
AllianceBernstein Plans ETF Cathie Wood Pitched a Decade Ago; Company entered exchange-traded fund industry two months ago; Wood had raised idea of active ETFs to AB before starting ARK
Elaine Chen - Bloomberg
About a decade ago, Cathie Wood pitched her then-employer AllianceBernstein Holding LP on the idea that its thematic strategies could be deployed using actively managed ETFs. The firm didn't bite, so she left to chart her own course. Now, after Wood founded her own firm and created a suite of active innovation-themed funds that she's become renowned for, AllianceBernstein is planning its own "disruptors" ETF that seeks to target innovative companies.
/jlne.ws/3EgmwPu
A £60 Billion Wall of Cash Fuels UK Market Calls for BOE Action; Sterling money-market funds see record inflows last month; BOE move to ease collateral crunch could happen this year: NWM
Greg Ritchie - Bloomberg
A record flood of cash into UK money-market funds following recent pension sector turmoil is worsening a scarcity of high-quality securities, sparking calls for the Bank of England to take action. An estimated £60 billion flowed into sterling money markets last month, versus just £2 billion in September, according to Crane Data, which specializes in the sector. That's an "eye-poppingly large" amount that dwarfed funds heading into euro or dollar-denominated equivalents, said Pete Crane, the firm's founder.
/jlne.ws/3TolNQF
Robinhood Plunges as Bankman-Fried's FTX Sells Itself to Binance; Deal announcement pushes stock down by most since August 2021; FTX had been considered a potential suitor for Robinhood
Divya Balji - Bloomberg
Robinhood Markets Inc. tumbled by the most in more than a year after Binance Holdings Ltd. agreed to acquire Sam Bankman-Fried's troubled crypto exchange FTX.com, which had been considered a potential suitor for the trading platform. Shares of Robinhood plunged 19% Tuesday, their steepest decline since August 2021, after the founders of Binance and FTX.com announced that they have signed a non-binding letter of intent on the takeover to "help cover the liquidity crunch" at FTX.com.
/jlne.ws/3UJmoh4
Robinhood Gave Its Customers Access to IPOs That All Flopped; All 23 IPOs opened up to customers declined by double-digits; Robinhood's stock, down by more than two-thirds, is among them
Annie Massa and Mathieu Benhamou - Bloomberg
Robinhood Markets Inc. Chief Executive Vlad Tenev was fielding questions on the company's latest earnings call when one person asked about a dormant project. When, the caller wanted to know, would Robinhood resume letting customers invest in initial public offerings? A Bloomberg analysis of the program, IPO Access, suggests it has been a flop for investors so far. The initiative, which allowed users to buy shares of buzzy companies like Sweetgreen Inc. and Allbirds Inc. before they debuted on stock exchanges, resulted in losses for customers who still hold the shares. In an already dismal market for IPOs, those offered by Robinhood have performed even worse.
/jlne.ws/3hsy8WM
Subprime Auto Bonds Hit by Skipped Payments, Falling Used-Car Values; Wholesale used car prices are falling, hitting bond collateral; Some investors bet the bonds can absorb losses and still pay
Scott Carpenter and Carmen Arroyo - Bloomberg
Subprime auto loan borrowers are increasingly falling behind on payments, and the value of used cars is dropping, two trends that are clobbering bonds tied to the debt. Yields on some of the riskiest such bonds have jumped to about 6.5 percentage points more than Treasuries as of last week, a risk premium that's widened up about 2 percentage points from the end of September, according to data compiled by JPMorgan Chase & Co. Excluding a few weeks during the pandemic, current levels are the widest since 2010.
/jlne.ws/3G0gPXa
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | EXCLUSIVE US, EU plan new pledge targeting oil and gas methane emissions - document
Kate Abnett and Valerie Volcovici - Reuters
The United States and European Union plan to unveil a joint agreement this week to step up efforts to reduce emissions of the potent greenhouse gas methane from the fossil fuel sector, and are hoping other nations will sign up. A draft of the pledge, seen by Reuters, said the United States and EU will agree to target the energy sector with both domestic and international measures, such as policies to stop routine venting and flaring of natural gas, and require companies to fix leaks in their infrastructure.
/jlne.ws/3TBW1Zv
U.S. climate envoy Kerry launches carbon offset plan
Sarah Mcfarlane and Valerie Volcovici - Reuters
U.S. climate envoy John Kerry on Wednesday announced the creation of a carbon offset plan meant to help developing countries speed their transition away from fossil fuels. Kerry launched the Energy Transition Accelerator (ETA) with the intention of funding renewable energy projects and accelerating clean energy transitions in developing countries. The United States will develop the program with the Bezos Earth Fund and Rockefeller Foundation, with input from the public and private sectors which would operate through 2030 and possibly be extended to 2035.
/jlne.ws/3UCOlHa
COP27: Major food firms detail plans to eliminate deforestation by 2025
Jake Spring and Simon Jessop - Reuters
The world's largest food trading companies detailed a plan on Monday to eliminate deforestation from their supply chains for soy, beef and palm oil by 2025, a step seen as essential to averting catastrophic climate change. Destruction of forests - like the Amazon rainforest to make way for farm fields and ranches or Indonesian jungle for palm oil - emits huge amounts of greenhouse gas each year, helping to drive climate change. The roadmap, launched at the COP27 United Nations climate summit in Egypt, comprises 14 firms including Cargill, Bunge (BG.N), Archer Daniels Midland , Louis Dreyfus Company, Brazil's JBS (JBSS3.SA) and China's COFCO International.
/jlne.ws/3TnhGnR
Financing Nature; We can close the finance gap through #blendedfinance, guarantees & other financial instruments. We need to start delivering on the promises made at COP26 - and private finance has a critical role to play.
Green Finance Institute COP 27 Special Series Podcast - Susan Gardner and Ivo Mulder
In this final episode of our COP27 Special Series with the United Nations Environment Programme, we are joined from UNEP's Ecosystems Division by Susan Gardner, Head of the Ecosystems Division and Ivo Mulder, Head of the Climate Finance Unit. Susan and Ivo wrap up the series by sharing what they hope to see happen at COP27 and the actions we collectively need to take to ensure that nature restoration and nature-based solutions receive the investment they urgently require.
/jlne.ws/3ToUwgZ
Show us the money: Developing world at COP27 seeks finance details
Simon Jessop and Kate Abnett - Reuters
Finance Day at COP27 puts focus on banks, investors, insurers; Emerging markets demand more help to pay for transition; U.N. experts flag dozens of climate projects worth $120 bln. Finance took centre stage at the COP27 climate talks on Wednesday, with U.N. experts publishing a list of projects worth $120 billion that investors could back to help poorer countries cut emissions and adapt to the impacts of global warming. A $3 billion water transfer project between Lesotho and Botswana and a $10 million plan to improve the public water system in Mauritius were among dozens of projects listed, including 19 in Africa.
/jlne.ws/3UowVhQ
An Open Letter To Five Republican Senators (Which I Hope Will Be Helpful)
Robert G. Eccles, Contributor - Forbes
Dear Senators Marsha Blackburn (R-TN), Tom Cotton (R-AR), Chuck Grassley (R-IA), Mike Lee (R-UT), and Marco Rubio (R-FL)Cc: (Retiring) Senator Pat Toomey (R-PA). It's election day! I know all of you are very busy and hoping very much that you take control of the Senate. I must admit that the polls are looking pretty good for you. I expect you're lickin' your chops at the prospects of being back in charge. If you do, it will give you the opportunity to follow through on the letter you sent to 51 law firms, putting them on notice regarding the advice they are providing to their corporate clients regarded the dreaded "ESG."
/jlne.ws/3DWenhE
Investors increase ESG support despite headwinds: ESG CIO survey 2022
Deutsche Bank
Deutsche Bank's (XETRA: DBKGn.DB / NYSE: DB) Private Bank Chief Investment Office today published its 2022 ESG client survey findings, revealing that more than half of investors (53%) regard climate change as the most important factor affecting their investment decisions, up from 47% last year. Conducted for the second year running, this year's CIO survey found that more private and business clients (78%) are concerned about the negative impact climate change has on the global economy, up from 74% in 2021. Many are concerned it is already having a severe impact on the global economy, or will have, in the next 10 years if left unchallenged.
/jlne.ws/3FYjrVt
10 Reasons Why ESG Won't Be Stopped; Although demonized, ESG and sustainable investing will survive the backlash.
Leslie Norton - Morningstar
It's been a time of reckoning for environmental, social, and governance analysis and sustainable investing. A hurricane of criticism has arisen in recent years, with accusations ranging from deceptiveness and ineffectiveness to a secret agenda to impose "woke" values on capitalism and society.
/jlne.ws/3GiCKJB
Top-Performing Singapore Firm Accused of Greenwashing in India Coal Sale; If Sembcorp financed the deal, can it really claim a smaller carbon footprint?
Sheryl Tian Tong Lee and Stephen Stapczynski - Bloomberg
One of Singapore's best-performing stocks this year - an energy company backed by state investor Temasek Holdings Pte - is under fire for trying to avoid higher interest payments to bondholders that kick in if the company fails to meet emissions targets. In order to reduce its official carbon footprint, Sembcorp Industries Ltd. sold two coal-fired power plants to an Omani group for $1.5 billion. The company told shareholders that the sale would lower its greenhouse gas emissions intensity by 38%, more than enough to dodge the penalties attached to the company's sustainability-linked bonds.
/jlne.ws/3DR1iq0
US Cut Oil Output Forecast Again as Shale Growth Slows Down; Shale drillers are sticking to pledges of capital discipline; Global buyers are clamoring to replace Russian supply
Sheela Tobben and Kevin Crowley - Bloomberg
The US slashed its forecast for 2023 oil production in the latest sign that world crude markets can't rely on American shale fields to ramp up supply quickly enough to reduce high energy prices over the next year. Production is now estimated to hit 12.31 million barrels a day in 2023, according to a monthly report from the Energy Information Administration released Tuesday, a fifth straight downward revision by the government agency. Next year's output was previously expected to surpass the record 12.315 million barrels set in 2019.
/jlne.ws/3Uo6Ejz
Mining isn't living up to its own hype; The sector is crucial to providing the metals needed to reach net zero but it isn't spending like it
Helen Thomas - Financial Times
"Give me a break", said the US president last month. "Enough is enough." There is nothing wrong with getting a fair return, argued Joe Biden. But with profits soaring, he was fed up with companies shovelling money to their shareholders rather than increasing investment in what the country needs. Biden was talking about US oil and gas drillers. Someone, somewhere should be talking to the world's biggest miners.
/jlne.ws/3te13QO
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Hedge fund firm Millennium to shake up investment operations; Plan set out in letter to employees will see departure of co-CIO Bobby Jain
Laurence Fletcher - Financial Times
Millennium Management, one of the world's biggest hedge fund firms, has unveiled a shake-up of the organisation of its investment operations that will see co-chief investment officer Bobby Jain depart. Founder Izzy Englander wrote to employees on Tuesday, in a note seen by the Financial Times, saying that the firm, which manages $59bn in assets, will set up a so-called "office of the chief investment officer", which will include two new co-CIOs and the heads of risk management in the asset classes in which the firm trades. Former Goldman Sachs head of equity trading Paul Russo, who is Millennium's global head of equities risk, will become one of the co-CIOs; the second will be announced shortly.
/jlne.ws/3tlhafr
Barclays slashes staff in UK equities business; The reported reduction in headcount does not represent a change in strategy for the bank, source says.
Will Canny, Laurie McAughtry - The Trade
Barclays Investment Bank has made a number of job cuts to its London equities team this week, according to several people familiar with the matter. Matthew Rogers, managing director and EMEA head of high-touch sales trading, has left the bank; as has Neil McKay, head of European event-driven trading. William Fu, an equities trader, has also left, as has Max Tilley, a director in e-trading.
/jlne.ws/3DT08u7
Jefferies Poaches Restructuring Pair From Rothschild, Lazard
Dinesh Nair - Bloomberg
Jefferies Financial Group Inc. is expanding its restructuring practice into Europe by hiring two of the region's most senior bankers in the space, according to people familiar with the matter. The New York-based investment bank has recruited Glen Cronin from Rothschild & Co. and David Burlison from Lazard Ltd. as co-heads for restructuring in Europe, the Middle East and Africa, the people said, asking not to be identified discussing confidential information.
/jlne.ws/3tbU1fE
Millennium's Jain Is Stepping Back as Hedge Fund Shuffles Management; Izzy Englander's firm forms CIO office with two new leaders; One of them will be Paul Russo, global head of equities risk
Nishant Kumar and Hema Parmar - Bloomberg
Millennium Management's Bobby Jain is "stepping back" from his role as co-chief investment officer amid an overhaul in the hedge fund's senior ranks, according to a memo seen by Bloomberg. "From now until mid-2023, he will support Millennium's transition to a new organizational structure for the firm's investment activities," founder Izzy Englander said in the memo. A spokesman for the New York-based firm declined to comment.
/jlne.ws/3TmHDnx
$17 Billion Chicago Hedge Follows Millennium, BlueCrest in Push to Dubai; Fund to open office in Dubai in first quarter of 2023; Hunt for talent is encouraging global expansion of firms
Nishant Kumar - Bloomberg
Balyasny Asset Management will open an office in Dubai, the latest hedge fund to expand to the emirate. The $17 billion firm will start operations in the city in the first quarter of next year, according to a person with knowledge of the matter. Balyasny is taking space in the ICD Brookfield Place and its office is initially set up to accommodate 20 people, the person said, asking not to be identified because the details are private.
/jlne.ws/3EqOetb
Barclays cuts investment banking jobs as deals languish - source
Reuters
Barclays Plc has cut its workforce in corporate and investment banking (CIB), according to a person familiar with the matter, joining rivals who also took similar steps to rein in costs as deals plunged from records set last year. Investment bankers were awash with deals in 2021, but have seen few this year as companies halt buyouts and listings amid volatility in the capital markets, tensions between the United States and China, and the Russia-Ukraine war.
/jlne.ws/3NOlXja
Hedge fund firm Millennium to shake up investment operations; Plan set out in letter to employees will see departure of co-CIO Bobby Jain
Laurence Fletcher - Financial Times
Millennium Management, one of the world's biggest hedge fund firms, has unveiled a shake-up of the organisation of its investment operations that will see co-chief investment officer Bobby Jain depart. Founder Izzy Englander wrote to employees on Tuesday, in a note seen by the Financial Times, saying that the firm, which manages $59bn in assets, will set up a so-called "office of the chief investment officer", which will include two new co-CIOs and the heads of risk management in the asset classes in which the firm trades.
/jlne.ws/3Ehotet
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| Wellness Exchange | | An Exchange of Health and Wellness Information | The Line Between Expertise and Puffery Is Getting Blurrier; We enter murky waters when credible scientists turn out to be wrong and hucksters keep selling their own solutions.
Faye Flam - Bloomberg
We have a problem with our medical and scientific experts. It's hard to know what to believe when we're being bombarded by professionals with prestigious degrees and affiliations pushing contrary claims about Covid vaccine side effects, about treatments such as Ivermectin and hydroxychloroquine, and about the nature and severity of the disease. A prime example is Senate candidate Mehmet Oz. He graduated magna cum laude from Harvard, was chair of his class at the University of Pennsylvania Medical School, won an award for his research as a resident, and by 35, was saving lives with bypass surgeries and heart and lung transplants at Columbia-Presbyterian Medical Center.
/jlne.ws/3Trf1tf
Antidepressants Don't Work the Way Many People Think; The most commonly prescribed medications for depression are somewhat effective - but not because they correct a "chemical imbalance."
Dana G. Smith - The New York Times
Over the course of the Covid-19 pandemic, rates of depression and anxiety soared, and many Americans turned to antidepressant medication to help them cope. Even before the emergence of Covid, 1 in 8 American adults was taking an antidepressant drug. According to one estimate, that number rose by 18.6 percent during 2020. Zoloft is now the 12th most commonly prescribed medication in the United States. Given this, you might assume that the question of how - and how well - these drugs work has been clearly answered. And yet recent papers have challenged their efficacy and actions in the brain. Some researchers even say the medications are barely better than a placebo and ask whether they warrant such widespread use.
/jlne.ws/3TkQ0jp
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | For Singapore, a Global Slowdown Is Another Planet; The city-state reopened early by Asian standards. That's brought a boom - and some challenges.
Daniel Moss - Bloomberg
For a tiny place so intimately tied to the ebbs and flows of finance, it's hard to see signs in Singapore of an approaching world recession. The city-state is again sucking in foreign labor, driving the jobless rate to microscopic levels. The country's airline is racking up profits and the increase in housing rents is staggering. The global slowdown often feels like it's happening on another planet. The question might not be so much whether Singapore's economy has become a bubble, a loaded term that implies a painful collapse awaits, but how long the nation can continue to defy gravity.
/jlne.ws/3EgUYcG
Is the Great China Covid Reopening a Myth or a Must?; Beijing is at risk of raising the debt ceiling and ruining its relatively clean balance sheet. That's quite a price to pay.
Shuli Ren - Bloomberg
In recent days, investors bought up the yuan, copper and Chinese stocks largely on unconfirmed social media posts that Beijing is considering an exit from its stringent Covid-Zero policy. Their enthusiasm was barely dented by stern comments last weekend from officials at the National Health Commission, who pledged to "unswervingly" adhere to the government's virus controls. It's a trillion dollar question. The entire market is now playing a guessing game and acting on it. So is China reopening a myth?
/jlne.ws/3UJlJMC
A Third of Hong Kongers Seeking UK Visas Were Minors, SCMP Says
Kari Lindberg - Bloomberg
Nearly one-third of Hong Kongers who applied for a new route to British citizenship were under 18, the South China Morning Post reported, reflecting a population exodus in the city's next generation of workers. Of the 142,000 Hong Kongers who have applied for the British National (Overseas) visa program, 38,600 were in this age bracket, according to official figures obtained by the newspaper published Wednesday. Just 16% of those requests were filed from the UK, the report added.
/jlne.ws/3thc6sM
China's Covid Cases Keep Rising Despite Lockdowns
Bloomberg
Beijing's Covid cases jumped to the highest in more than five months as lockdowns and restrictions fail to contain stubborn outbreaks. Bloomberg's David Ingles reports on this and how it all impacts markets.
/jlne.ws/3tdpQ7B
Dubai Presses for Crypto Companies to Set Up Shop
Lavender Au - CoinDesk
Dubai is heavily recruiting crypto companies to establish themselves there, but the Middle Eastern nation isn't quite ready for them. Regulations aren't clear yet, and getting something as basic as a bank account isn't a smooth process - at least for now.
/jlne.ws/3zVUvdl
Worst of Europe's Diesel Crunch Will Hit in Spring; Wood Mackenzie sees diesel inventories at record low in March; EU to cut off seaborne deliveries of Russian fuel in February
Jack Wittels - Bloomberg
Stockpiles of diesel-type fuel in northwest Europe will hit the lowest in at least 12 years at the start of spring, according to a forecast from consultancy Wood Mackenzie Ltd. Inventories are set to build in December and January, before a sharp drop-off. Stockpiles in March are projected to be the lowest on record for any month in data going back to 2011, Woodmac said.
/jlne.ws/3A40CfR
French Regulator Demands Lower Energy Use to Avoid Blackouts; Watchdog calls for 'sobriety' in power and gas consumption; Plea comes as EDF keeps multiple reactors offline for repairs
Francois De Beaupuy - Bloomberg
France's energy regulator appealed to homes and businesses to cut their energy consumption to avoid blackouts this winter. The country is heading into the heating season with just half of its nuclear capacity online, while Russian gas deliveries are also curtailed. Grid operator RTE has warned that the curbs on generation -- which have forced the nation to import electricity at sky-high prices -- could lead to rotating power cuts in the event of severely cold weather.
/jlne.ws/3zZCLhu
Tropical Storm Nicole is on track to strengthen into a Category 1 hurricane as it approaches Florida
Aya Elamroussi and Jennifer Gray - CNN
Tropical Storm Nicole has gotten stronger - with scattered showers impacting parts of Florida on midterm Election Day - and is expected to strengthen more before slamming the state's east coast early Thursday as the first hurricane to strike the United States in November in nearly 40 years. Hurricane warnings remain in effect Tuesday for parts of Florida ahead of Nicole's expected landfall early Thursday morning north of West Palm Beach as a Category 1 hurricane with torrential rain and damaging winds, as many across the state continue to endure the aftermath of Hurricane Ian.
/jlne.ws/3EdrYCJ
Developers face a challenge making LaSalle Street livable; Mayor Lori Lightfoot's plan to turn the Loop into a neighborhood involves some tough math.
Danny Ecker - Crain's Chicago Business
Mayor Lori Lightfoot's plan to revive Chicago's Loop by reinventing the struggling business hub hurt by the pandemic as a mixed-use neighborhood hinges on convincing real estate developers that they can make money converting outmoded office buildings along LaSalle Street into apartments. While such conversions look good to builders and investors today as apartment rents downtown hit a record high and office vacancy soars, not all office buildings are well suited to be transformed into residential units, especially not the massive, sunlight-starved ones that line the historic thoroughfare. Floors in vacancy-ridden buildings like the former Bank of America offices at 135 S. LaSalle St. have lots of interior space without natural light, and lack complex mechanical, electrical, plumbing and technological infrastructure needed to make them livable.
/jlne.ws/3EeVGaC
California Is a Good Place to Win the $2 Billion Powerball Lottery; Winner stands to save millions after buying lucky ticket in one of only a few states that doesn't tax lottery winnings.
Mackenzie Hawkins - Bloomberg
The winner of the $2.04 billion Powerball jackpot could save themselves a potentially hefty tax bill. California lottery officials said the winning ticket, which had all six Powerball numbers, was drawn at Joe's Service Center in Altadena, an area in north Los Angeles County. As of Tuesday afternoon, the winner had not yet been identified.
/jlne.ws/3fWlK0F
As Meta prepares to cut thousands of jobs, is the Bay Area headed toward another dot-com-scale meltdown?
Mark Calvey - ACBJ
The increasing pace and scale of layoffs hitting Bay Area startups and tech giants alike - including Facebook parent Meta Platorms Inc.'s plans to cut thousands on Wednesday - raises the specter that the region could relive the painful dot-com bust of more than two decades ago. As the Federal Reserve has raised interest rates aggressively to fight inflation, share prices for the tech stalwarts and up-and-comers have been slammed on Wall Street, with values of many still-private companies following. "Multiple companies are 'walking dead zombies' that cannot find the equity and debt capital to survive, so we are about to see some fold - both expected and a few surprises - and a slew of acquisitions," said prolific angel investor Ron Suber.
/jlne.ws/3tiTaK9
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