| September 09, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
This week is the anniversary of 9/11 and people have begun sharing their stories on social media, including David Weild IV, who was the vice chairman of Nasdaq at the time of the attacks. He was opening the market with the management team of Thoratec that morning. Thoratec's COO, Tom Burnett, was one of the people who took down the hijackers on United Airlines flight 93 that crashed into the ground in Shanksville, PA. You can read David's LinkedIn post HERE. I did a podcast with David titled "David Weild Speaks to JLN About the JOBS Act and What it Accomplished and the Challenges We Still Face" in 2023.
The Financial Times' 2024 Masters in Management (MiM) ranking shows a sharp rise in salaries for graduates in finance, with an average of $88,518 three years after completing their degree, a 4% increase from 2023, the FT reported. The University of St Gallen reclaimed the top spot in the ranking, with HEC Paris falling to second and Insead debuting in third. MiM graduates in finance earned more than those in other sectors, with finance salaries surpassing those in consulting and technology. The ranking also highlighted improvements in gender pay gaps and emphasized schools' focus on environmental, social, and governance topics.
The other stories on the Financial Times Masters in Management page focused on business schools and their evolving role in education. Institutions are upgrading facilities and expanding internationally to attract students, while case studies like Eskom's decarbonization efforts provide real-world learning. AI's impact on job applications, student experiences, and what participants gained from MiM programs are explored in-depth. Despite declining interest in other business courses, MiM programs maintain strong demand. Additionally, alliances like Cems and Qtem offer enhanced qualifications, and articles emphasize the importance of geopolitics in business education, while charts provide insights into alumni salaries and career trends.
On September 6, 2024, the U.S. Departments of State, Agriculture, Commerce, Homeland Security, and Treasury issued an updated business advisory warning U.S. companies of increasing risks in Hong Kong due to the National Security Law (NSL) and the March 2024 Safeguarding National Security Ordinance (SNS Ordinance). These laws have eroded freedoms and human rights protections, bringing risks similar to those faced in mainland China. The advisory highlights legal, regulatory, financial, and reputational risks, as well as potential penalties for perceived violations. It also warns businesses about the extraterritorial application of these laws and the potential conflict with U.S. sanctions compliance.
The Wall Street Journal's Buy Side personal finance column published an article that reviews five popular budgeting methods to help individuals manage their finances effectively. The 50/30/20 budget is straightforward but can be difficult to maintain in high-cost living areas. The 70/20/10 budget offers flexibility but lacks structure, making it better suited for those with disciplined spending habits. The zero-based budget requires tracking every dollar, ideal for detail-oriented individuals, but it can be time-consuming. The cash envelope system helps curb overspending by limiting available cash but may feel restrictive. Lastly, the pay-yourself-first budget prioritizes savings and essential expenses, offering simplicity and freedom, making it a popular choice. The article also discusses whether to use apps or spreadsheets based on personal preference.
If you want to buy a piece of history, you can find it for sale in River Forest, IL. Frank Lloyd Wright's first independent commission, a prairie-style home built in 1893 in River Forest, Illinois, is up for sale for $1.985 million, Barron's reported. The house, which still features many of Wright's original elements like stained-glass windows, woodwork, and fireplaces, has undergone over $1 million in restoration by the current owners, including mechanical upgrades, bathroom remodels, and the restoration of the limestone exterior. The 5,000-square-foot main house, sitting on an acre of land, has five bedrooms, three and a half baths, and a coach house with two additional bedrooms.
CCP Global is hiring an Amsterdam-based risk policy advisor to lead its Risk Working Committee and advance risk management in the industry. The role involves staying updated on regulatory and market developments, collaborating with members, and organizing initiatives like the CCP Global International Default Simulation exercises. Candidates must have relevant experience, higher education, and strong English communication skills. For more information on the position, click HERE.
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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Climate Week NYC, sponsored by the Climate Group, is set to kick off on Sunday, September 22 and will run through September 29. This year's week of climate action offers more than 600 events scheduled across the five boroughs of New York City. Events, which can be attended virtually and in person, are organized around ten themes.
Highlights include:
-The Nest Climate Campus: A three-day event focusing on climate leadership, sustainable food systems, clean energy, and more.
-Solutions House: A three-day event dedicated to innovative solutions for a sustainable future.
-Economist Impact: Expert panels and sessions on green finance, sustainable cities, and biodiversity protection.
To follow and join Climate Week NYC search on hashtag #ClimateWeekNYC on LinkedIn and other major social networks. View the calendar of events here.~SAED
Our most read stories from our previous edition of JLN Options were:
- New Eurex CEO Outlines Vision for European Derivatives Exchange from John Lothian News.
- China's $100 Billion Short Against Dollar Enriches Hedge Funds from Bloomberg.
- India to tighten derivatives rules despite investor pushback from Reuters. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Exberry CEO Previews Groundbreaking Tech Day for Exchange Industry
JohnLothianNews.com
In a recent video interview at the FIA IDX conference in London, Guy Melamed, CEO of Exberry, shared insights about the upcoming Tech Day 2024, a pioneering conference set to bring together exchange industry professionals in Amsterdam on October 9th. This event, organized by the Association of Futures Markets (AFM) in collaboration with Exberry, marks the first time non-members will be invited to participate, signaling a new era of openness in the exchange technology sector.
Watch the video »
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New Eurex CEO Outlines Vision for European Derivatives Exchange
JohnLothianNews.com
In a recent video interview at the FIA IDX conference in London, Robbert Booij, the newly appointed CEO of Eurex Frankfurt AG, shared his insights and plans for the leading European derivatives exchange. Speaking with John Lothian News, Booij reflected on his transition from the banking sector to heading an exchange and outlined his strategic vision for Eurex.
Watch the video »
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 LaSalle Street Racing to Move Scouts Forward Fundraiser www.tinyurl.com/LaSalle4Scouts On September 25, the Pathway to Adventure Council of the Boy Scouts of America is hosting the LaSalle Street Racing to Move Scouts Forward event at the Chicago Board of Trade Building. This annual tradition, dating back to 1971, brings together professionals from LaSalle Street to support Scouting in our community. The highlight of the evening will be a pinewood derby race. You'll have the opportunity to build your own car or lease one at the event. It's a fantastic way to tap into your competitive spirit while enjoying cocktails and delicious food with colleagues and friends. Your participation will directly benefit Scouting programs that help develop leadership skills and character in our youth. There are various sponsorship levels available to suit your preferences. The event will be held at Ceres, with plans to move outdoors if weather permits. It's a perfect opportunity to network, have fun, and make a difference. Click Here to Register »
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Hong Kong Poses Growing Risk for Business, U.S. Warns; The Biden administration warned of the growing risks of doing business in Hong Kong, including from U.S. sanctions
Richard Vanderford - The Wall Street Journal
The Biden administration has warned of heightened risks for firms doing business in Hong Kong, including the possibility of running afoul of expanding U.S. sanctions, a move that comes amid a continued corporate exodus from the city. Doing business in Hong Kong, which is legally distinct from mainland China but increasingly in Beijing's orbit, poses a number of reputational, financial, regulatory and other risks, the administration said Friday in a notice jointly issued by the U.S. Departments of State, Treasury, Commerce, Agriculture and Homeland Security. Hong Kong's economic and trade office in New York didn't respond to a request for comment.
/jlne.ws/3ASrIKm
******The trend is not good.~JJL
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The battle to secure economically critical metals; To limit China's leverage, the west needs concerted action on mining, refining and research
The editorial board - Financial Times
As they jostle for supremacy in semiconductor chips and green technology, America and China have been locked into an increasingly disruptive game of tit-for-tat trade warfare. They have unleashed a panoply of export controls, tariffs, and blacklisting against one another, and their allies, as a Financial Times series has highlighted. The latest salvo comes from Beijing. From September 15, it will impose export controls on antimony, an obscure metal used in armour-piercing ammunition, night-vision goggles and precision optics. It follows curbs implemented last year on shipments of germanium and gallium, which are needed for chips and military communications.
/jlne.ws/4egfnxP
****** Another example of how wars are won by economics.~JJL
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The weird truth about work is we actually like it; Satisfied employees are convinced they are lucky exceptions in a world of toxic bosses and burnout
Pilita Clark - Financial Times
That's it. Summer is over. Beaches are emptying. Desks are filling and Pret A Manger queues are growing, as Europe and America go back to work. The FT office, like countless others, is full of the usual post-holiday commiserations about the jolt of logging on after so many days of switching off, sleeping in and generally not being on deck. I have nothing useful to say about this, mainly because I idiotically failed to take time off in August. But I have also been contemplating a weird and unsung truth about work: people actually like it a lot more than they think. This is far from evident at a time when work's reputation is being clobbered.
/jlne.ws/3ZfccCg
***** My neighbor told me yesterday to take a break, after all it was Sunday. I was out weeding in front of my house in Wisconsin. Oddly, this was the first summer I never went swimming in the lake, as I was too busy working on the house or JLN when I was at the lake house.~JJL
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Friday's Top Three
Our top story Friday was Bloomberg's AI-Powered Lie Detectors Can Help Tell If You're Lying on a Zoom Call. Second was Cboe Global Markets Reports Trading Volume for August 2024, from Cboe. And third was ZISHI hospice charity walk nears fund-raising target, from FOW.
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| Lead Stories | The Boom in Zero-Day Options Is Coming for Tesla and Nvidia; Brokers and exchanges discuss expanding #0dte to options on individual stocks
Alexander Osipovich - The Wall Street Journal
A popular, fast-paced trade has boosted the options market to record volumes in recent years. Now, Wall Street is looking to push it even further. Zero-day-to-expiry options let investors bet on whether a particular stock-market index will rise or fall by the end of the day. They have drawn an enthusiastic following among amateur investors, even as skeptics call them a form of gambling. They are sometimes known by the hashtag #0dte.
/jlne.ws/4cYECDT
Are You Ready to Bet on U.S. Elections? A Judge's Ruling Opens the Door; Prediction-market startup Kalshi prevails in its bid to list political contracts, beating the CFTC
Alexander Osipovich - The Wall Street Journal
Get ready for legalized betting as soon as next week on whether Democrats will take back control of the U.S. House of Representatives in November. A federal judge on Friday cleared the way for Americans to place bets on the outcome of congressional elections via a prediction-market startup, a victory that could potentially open the door to legalized wagers on U.S. elections.
/jlne.ws/3B0c0Nm
Look Before Leaping Into the World's Hottest Stock Market; It isn't just foreign sentiment about India that could shift but far less predictable local speculators
Jacky Wong - The Wall Street Journal
Indian stocks are on fire. Investors who want to partake will need to keep a cool head as a trading frenzy and rising valuations have the potential to spoil the party. MSCI India has surged 21% this year, beating most major markets-even the S&P 500, which is up 13%. In total, the Indian benchmark has more than doubled since the end of 2019.
/jlne.ws/3yZagmU
Sustainability Is Falling on the CEO To-Do List. Customers Still See It as a Priority.; AI, growth, inflation and geopolitics were all more important to CEOs in a recent survey
Yusuf Khan - The Wall Street Journal
Sustainability and other environmental issues are dropping down the list of priorities for chief executives, even as consumer climate concerns are on the rise, according to a new report. Artificial intelligence, growth, inflation and geopolitical uncertainty are now the top issues for CEOs as they plan their strategies, Bain & Co. said in a report out Monday. At the same time, 60% of consumers are more concerned about climate change than they were two years ago, mainly because of their own personal experiences of extreme weather, the report found.
/jlne.ws/4gak3XM
China to Add Steel, Aluminum and Cement to Carbon Market in 2024; Environment minister announced timeline at industry conference; Beijing is aiming to add seven more sectors by end of decade
Bloomberg News
China will expand its national carbon trading market to include the steel, aluminum, and cement industries at the end of the year, to push the polluting sectors to reduce emissions. The move was broadly expected by the market, and Minister of Ecology and Environment Huang Runqiu announced the timeline at an industry conference at the weekend, according to a report in the China Securities Journal.
/jlne.ws/4e0js9S
Japan's Companies Sour on China After Years of Brushing Off Risk; Geopolitics, economic malaise in China are obstacles for firms; Japan's foreign direct investment into China is on the decline
Bloomberg News
Japanese companies are increasingly abandoning an approach to business in China that once seemed immune to politics, a stark shift after years when they were the biggest single investors in their neighbor's economy. In an era defined by geopolitical risks and worry over China's faltering growth, the economic math no longer adds up for the likes of Nippon Steel Corp., which said in July it was exiting its joint venture in China. Mitsubishi Motors Corp. suspended its local operations indefinitely last year, a casualty of slumping car sales and China's rapid shift to electric vehicles.
/jlne.ws/47qIBbe
Japan's Financial System Overhaul - Making Japan more prosperous -
Harry Ishihara - JPX
Japan has been undergoing a major overhaul of its financial system, with the overarching goal of increasing household wealth. In this post we will try to simplify the numerous phrases and terms used by the outgoing Kishida Administration, and their interactions with each other. The goal of becoming an "Asset Management Center" seemed central to the overhaul, and so far, efforts appear to be succeeding. This overview should help readers understand any upcoming changes by the next administration
/jlne.ws/47m8aKc
CFTC Pleads With Judge to Block Kalshi Election Contracts for 14 Days; The agency says it can't make "an informed decision" about whether to appeal the judge's decision in Kalshi's favor until it knows her as-yet-unpublished rationale.
Marc Hochstein - CoinDesk
Hours after losing a long-running court case filed by U.S. prediction market platform Kalshi, regulators are making a hail Mary pass. Late Friday, the Commodity Futures Trading Commission filed an emergency motion asking a federal judge to grant a temporary stay of her decision in Kalshi's favor. The stay would prevent Kalshi from listing election markets for at least 14 days.
/jlne.ws/3XziLhS
HSBC Mulls Merging Commercial, Investment Bank to Cut Costs; Deliberations come as Elhedery takes reins as chief executive; Combined unit would be home to more than 90,000 HSBC employees
Harry Wilson, Ambereen Choudhury, and Denise Wee - Bloomberg
HSBC Holdings Plc is weighing combining its commercial and investment bank divisions as part of new Chief Executive Officer Georges Elhedery's push to eliminate overlapping roles across the company and shed expenses. The effort would bring together HSBC's global banking and markets business, which caters to large, multinational corporations and houses the firm's trading and investment banking divisions, with its commercial banking arm, according to people familiar with the matter.
/jlne.ws/3ZiXudE
Is the market made by Michael Milken turning full circle? High yield debt is becoming more investment grade
Ellen Carr - Financial Times
Back in the 1980s, when Michael Milken helped foster an appetite for higher risk-reward corporate bonds, junk bonds became the fun asset class with volatility and bankruptcy workouts featuring sharp elbows and big egos. Credit cycle after credit cycle, if you were on the right side of the trade on stressed or lower quality debt, you hoovered up bonds at pennies on the dollar and made big profits if they bounced back in value; if you were on the wrong side, you rode your holdings through the workout process.
/jlne.ws/4gt8Pho
The King of Risky Hometown Bonds Is Back; Former Nuveen executive John Miller begins a second act at First Eagle
Heather Gillers - Bloomberg
It seemed as though John Miller's luck was running out. Buying the riskiest bonds in the $4 trillion market for state and local debt had made Miller a power player in a corner of Wall Street often derided as staid and boring. But the 2022 bond rout drained billions from his flagship high-yield fund at Nuveen. Last year, on Miller's 56th birthday, the trillion-dollar asset-management company abruptly announced plans for his departure. Now, Miller is on the rebound. He joined forces with a boutique firm, recruited a handful of analysts and traders and, earlier this year, started a fund from scratch. Money is pouring in: about $3 billion this year through August, according to Morningstar Direct.
/jlne.ws/3Zb7Agy
Why This Wall Street Firm Wants Its Traders to Play Poker; Trading giant Susquehanna uses Texas Hold 'em to teach its teams to make the most of risk. We asked some traders to play and walk us through their hands.
Gunjan Banerji - The Wall Street Journal
Young traders who join the trading giant Susquehanna International spend at least 100 hours playing cards during a 10-week training program. When the stock market closes at 4 p.m., they often head straight from the trading floor to a dedicated poker room at the firm's headquarters in the Philadelphia suburbs. Jeff Yass, Susquehanna's co-founder, sometimes joins in, scrutinizing hands new hires play and gauging how effectively they bluff. Thousands of employees, from traders to technologists, participate in the firm's annual poker tournament. At least three have notched wins at the World Series of Poker in Las Vegas.
/jlne.ws/3ZhgtoJ
Biggest brokers say insurers must ditch 'arbitrary' Ukraine exclusions; Aon and Marsh McLennan suggest resumption of cover is necessary to boost war-torn country's economy
Ian Smith - Financial Times
Insurers and reinsurers must ditch "arbitrary" exclusions that cut Ukraine from policies and resume cover to support the war-torn country's economic recovery, the world's two biggest insurance brokers have said. New York-listed rivals Aon and Marsh McLennan said blanket exclusions of Ukraine from policies covering everything from soured loans to property damage, which were put in place after Russia's full-scale invasion in February 2022, "ignore the diversity of risk throughout the country". In a rare joint call, they pushed for a reversal of the insurance and reinsurance industry's moves to lump Ukraine alongside Belarus and Russia in exclusions from broad reinsurance contracts, limiting the supply of primary insurance and "impeding" Kyiv's economic recovery.
/jlne.ws/3ZfSkyO
FICC captures record share of US MMF repos; Fed facility sees continued outflows as funds redirect assets
Lorenzo Migliorato - Risk.net
S money market fund (MMF) repos funnelled through the Fixed Income Clearing Corporation (FICC) surged 17.8% to a record $634.9 billion at the end of July, as fund managers continued to shift cash away from the Federal Reserve's reverse repo programme (RRP). FICC-cleared balances accounted for 24.6% of MMFs' total reverse repo investments - the highest proportion ever recorded - according to data from the Office of Financial Research (OFR).
/jlne.ws/3AXg14Y
Richard Morecombe, Corporate Broker and Numis Co-Founder, Dies
Leonard Kehnscherper - Bloomberg
Richard Morecombe, a British investment banker who co-founded corporate broker Numis, has died. He was 60. Morecombe passed away unexpectedly on Sept. 6, according to a statement from his employer Panmure Liberum. He was a "constant source of energy and inspiration to all of us," the bank said in the statement. The banker, known by many as "Morky," worked in the City of London's corporate broking scene for more than 35 years, focusing on small- and mid-sized firms. Brokers have been a unique part of the financial district for centuries, handling interactions with investors and advising on mergers-and-acquisitions.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russia advances in east Ukraine, launches deadly air strikes
AFP
Russia on Sunday said its forces had advanced in eastern Ukraine as Kyiv reported deadly air attacks and urged the West to allow it to carry out more retaliatory strikes inside Russia. Russian attack drones flying towards Ukraine also breached the airspace of NATO members Romania and Latvia, the countries said Sunday, triggering calls for a robust response from the military alliance.
/jlne.ws/4d2tbee
Ukraine's 'dragon drones' rain molten metal on Russian positions in latest terrifying battlefield innovation
Brad Lendon, Isaac Yee and Kosta Gak - CNN
Ukraine appears to be calling on a fleet of fire-spewing "dragon drones" in its war with Russian invaders, putting a modern twist on a munition used to horrific effect in both world wars. A series of videos posted on social media, including on Telegram from the Ukrainian Defense Ministry on Wednesday, show the low-flying drones dropping torrents of fire - actually molten metal - onto Russian-held positions in tree lines.
/jlne.ws/3B81umU
Russia's strategy to rely more on China's yuan is backfiring
Jason Ma - Fortune
After the U.S. and its allies sanctioned Russia in 2022 for its invasion of Ukraine, Moscow turned away from the dollar and euro in international transactions and relied more on China's yuan. That coincided with more trade between the two countries as Russia was largely shut out of Western markets as well as the global financial system.
/jlne.ws/4gezZbF
Two NATO members say Russian drones violated their airspace
Associated Press
Two NATO members said Sunday that Russian drones violated their airspace, as one reportedly flew into Romania during nighttime attacks on neighboring Ukraine while another crashed in eastern Latvia the previous day. A drone entered Romanian territory early Sunday as Moscow struck "civilian targets and port infrastructure" across the Danube in Ukraine, Romania's Ministry of National Defense reported. It added that Bucharest had deployed F-16 warplanes to monitor its airspace and issued text alerts to residents of two eastern regions.
/jlne.ws/4gg9rqs
Iran admits sending missiles to Russia
James Kilner - The Telegraph
Iran has confirmed that it is sending ballistic missiles to Russian forces fighting in Ukraine in exchange for soybeans and wheat. Despite official Iranian denials, an MP admitted to the deal less than 48 hours after US officials warned of the missile shipments and deepening Russia-Iran military ties. "We circumvent sanctions through our partnership with Russia. We import soybeans, corn, and other goods from Russia," said Ahmad Bakhshayesh Ardestani, an Iranian MP and a member of the country's Security and Foreign Policy Committee.
/jlne.ws/3Tkrcei
Iran Denies Reports It Supplied Russia With Ballistic Missiles
Arsalan Shahla - Bloomberg
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Kremlin, on report of missile supplies from Iran, says Tehran is its partner
Reuters
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Outgunned and outnumbered, Ukraine's military is struggling with low morale and desertion
Ivana Kottasova and Kostya Gak - CNN
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There was genuine risk of Russia using nuclear weapons at start of Ukraine war, CIA boss reveals
Dominic Nicholls - The Telegraph
/jlne.ws/3AZFVoU
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israeli strikes in Gaza kill 61 in 48 hours as UN pursues vaccinations
Nidal Al-Mughrabi - Reuters
Israeli military strikes across the Palestinian Gaza Strip killed at least 61 people in the space of 48 hours, medics said on Saturday, as Israeli forces battled Hamas-led militants in the territory. Eleven months into the war, numerous rounds of diplomacy have so far failed to clinch a ceasefire deal to end the conflict and bring the release of Israeli and foreign hostages held in Gaza. Airstrikes on two former schools that were housing displaced people, one in Gaza City and one in Jabalia, killed at least 12 people, Palestinian medics said.
/jlne.ws/4d1iI2N
The 100-Yard-Wide Strip of Land That Divides Israel and Hamas on a Cease-Fire; Hamas wants Israel to leave Gaza's Philadelphi corridor before any truce; Israel and the U.S. say no
Alexander Ward, Dov Lieber, Summer Said and Michael R. Gordon - The Wall Street Journal
A disagreement over a tiny strip of land along Gaza's border with Egypt has become one of the major stumbling blocks to reaching a cease-fire. The Philadelphi corridor, also known as Salah al Din Axis, is a nearly nine-mile-long, 100-yard-wide area inside Gaza. It has played a key role for Hamas to smuggle arms and material across the border from Egypt, including through tunnels that the militants dug under the frontier. Israeli troops are currently in control of the corridor. "The corridor is the oxygen of Hamas," Prime Minister Benjamin Netanyahu said last week, explaining why he believes Israeli troops should remain there until there is a new agreed-upon way for securing the area.
/jlne.ws/3Tlz1Ao
Violence Grows in West Bank, in Parallel With War in Gaza
The New York Times
In the shadow of the war in Gaza, a parallel conflict in the Israeli-occupied West Bank has intensified as Arab attackers carry out more sophisticated assaults and the Israeli military increases the scope of its raids on Palestinian cities. A shooting by a Jordanian citizen that killed three Israelis on Sunday at a heavily fortified West Bank border crossing came after three recent attempts by Palestinian militants, including from Hamas, to set off car bombs in the territory. Last month, Hamas and its ally, Palestinian Islamic Jihad, claimed an attempted suicide bombing in Tel Aviv in which the Israeli police said the assailant had come from the West Bank. Less than two weeks later, a drive-by shooting killed three Israeli police officers in the southern West Bank.
/jlne.ws/4gj0w7B
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Chinese stock exchanges add Alibaba into Stock Connect Scheme
Reuters
China's Shanghai and Shenzhen stock exchanges will include Chinese e-commerce giant Alibaba Group and some other companies into its Stock Connect cross-border investment scheme from Tuesday, separate filings showed on Monday. This move will integrate Alibaba into a program linking the Shenzhen and Shanghai stock exchanges with the Hong Kong stock exchange.
/jlne.ws/3Tocymh
FICC's Government Securities Division Clears Record-Setting USD$9.2 Trillion in Daily Activity; New milestone follows the previous peak value of USD$8.8 trillion on July 31, an increase of 4.5 percent.
DTCC
Continued growth in this dynamic market fueled GSD's overall activity increasing 42 percent year-over-year. The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that its Fixed Income Clearing Corporation's (FICC's) Government Securities Division (GSD) successfully cleared a record-setting USD$9.2 trillion in daily activity on September 3. This new milestone follows the previous peak volume of USD$8.8 trillion in daily activity on July 31, a 4.5 percent increase. In the past 12 months, GSD's total activity increased 42 percent year-over-year.
/jlne.ws/3Zn8GGd
Euronext strengthens its commitment to sustainable finance and corporate transparency with new initiatives unveiled during Euronext Sustainability Week
Euronext
Euronext, the leading pan-European market infrastructure, today announced the launch of a series of strategic ESG initiatives aimed at accelerating the transition towards sustainable finance. These innovative ESG services were unveiled during the second edition of Euronext Sustainability Week, further delivering on Euronext's "Fit For 1.5°" commitment and "Growth for Impact 2024" strategy, while paving the way for Euronext's next strategic plan, which will be presented in November 2024.
/jlne.ws/4cWTDpO
U.K. Financial Conduct Authority Issues Final Announcement Regarding the Cessation of U.S. Dollar LIBOR
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today notes the final announcement from the U.K. Financial Conduct Authority (FCA) regarding the cessation of U.S. dollar LIBOR. The FCA has confirmed that it will not use its powers under the U.K. Benchmarks Regulation (U.K. BMR) to compel ICE Benchmark Administration Limited (IBA), the authorized and regulated administrator of LIBOR, to continue to publish the 1-, 3- and 6-Month "synthetic" U.S. dollar LIBOR settings after September 30, 2024. Accordingly, the FCA has issued a final announcement reminding users that these final three remaining LIBOR settings will cease after publication on this date. No new LIBOR settings will be published following September 30, 2024.
/jlne.ws/3Tng7Jo
JSE Joins Forces With DataBP To Transform Business Model Through Cloud Marketplace Adoption
Press Release via Mondovisione
The Johannesburg Stock Exchange (JSE), Africa's largest exchange, has collaborated strategically with DataBP to launch a ground-breaking cloud Marketplace which aims to transform the JSE's data offerings. This new digital marketplace will serve as the central hub for all JSE data products and services. The launch of the Marketplace is a major milestone in the JSE's digital growth journey. The bourse has digitised client contracting for index agreements and introduced Trade Explorer for member analytics services. With its core data now cloud-hosted, the JSE is gearing up to launch a virtual storefront that allows clients to easily purchase data online.
/jlne.ws/4gfJ3wS
JSE and DataBP collaborate on new cloud marketplace; New offering will serve as the central hub for all the Johannesburg Stock Exchange's (JSE) data products and services.
Wesley Bray - The Trade
The Johannesburg Stock Exchange (JSE) has entered a strategic collaboration with DataBP to launch a cloud marketplace aiming to enhance the JSE's data offerings. The new data marketplace will serve as the central hub for all of the exchange's data products and services.
/jlne.ws/4dWtfNU
Nasdaq Halts BAIYU Holdings, Inc.
Nasdaq
The Nasdaq Stock Market (Nasdaq: NDAQ) announced that trading was halted on September 5, 2024 in BAIYU Holdings, Inc. (Nasdaq: BYU) at 19:50:00 Eastern Time for information requested from the company at a last sale price of $1.02. Trading will remain halted until BAIYU Holdings, Inc. has fully satisfied Nasdaq's request for additional information.
/jlne.ws/4geZWYB
SGX Group reports market statistics for August 2024
SGX
Singapore Exchange (SGX Group) today released its market statistics for August 2024. Elevated volatility following the market dislocation in the earlier part of the month drove trading activity in equity derivatives as well as record foreign exchange (FX) futures volume. Derivatives traded volume rose 4% year-on-year (y-o-y) in August to 24.6 million contracts, with daily average volume (DAV) up 8% y-o-y at 1.1 million contracts. Securities daily average value (SDAV) climbed 28% y-o-y to S$1.4 billion, as market turnover increased 22% y-o-y to S$28.8 billion - the highest since March 2022.
/jlne.ws/4gjg7UB
TAIFEX Newsletter - September 2024
TAIFEX
TAIFEX's Trading Volume Surged in August
TAIFEX reported a total trading volume of 272,681,247 contracts from January to August, with an average daily volume (ADV) of 1,704,258 contracts, making a surge of 23.31% compared to the same period in 2023. Among its core products, TAIEX Options (TXO), Mini-TAIEX Futures (MTX), and TAIEX Futures (TX) showed strong momentum, with ADV rising by 15.49%, 28.80%, and 22.56%, respectively. Meanwhile, the newly launched Micro TAIEX Futures (TMF) swiftly gained market traction, achieving an ADV of 138,149 contracts in August. Retail investors were highly active, accounting for 64.03% of the volume, while foreign institutions contributed 17.03%.
/jlne.ws/4giXSyH
TMX Group Consolidated Trading Statistics - August 2024
TMX
TMX Group Limited today announced August 2024 trading statistics for its marketplaces - Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange (Alpha), including Alpha-X & Alpha DRK, and Montreal Exchange.
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Beyond the Data: Long-only managers more optimistic than ever when it comes to their algo providers; Claudia Preece takes a look at findings from The TRADE's 2024 Algorithmic Trading Survey, Long-Only, which indicates an increasingly positive future landscape as buy-side sentiment regarding algo providers continues its upward trajectory following the less positive responses of 2023.
Claudia Preece - The Trade
Sentiment among long-only managers towards their algorithmic trading providers is more positive than ever and set to translate into ever-increasing adoption of this strategy, according to data from The TRADE. The turnabout to a more optimistic sentiment - demonstrated by upticks in ratings from buy-side traders - follows on from the downward trends of 2023 highlighted in The TRADE's Algorithmic Trading Survey 2024.
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Time's AI list names China's cyberspace chief, ByteDance CEO among most influential
South China Morning Post
Time Magazine has ranked China's internet watchdog head and the chairman of TikTok owner ByteDance among the 100 most influential people working in artificial intelligence for their impact on the sector in the world's second-largest economy. Zhuang Rongwen, director of the Cyberspace Administration of China, made the second annual Time 100 AI list as one of 15 people in the leaders category for taking on a mission that some thought impossible: imposing the mainland's "censorship practices on unpredictable generative AI technology without stifling domestic innovation", the publication said.
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AI exuberance masks broad weakness in tech sector, say investors; Many companies unconnected to artificial intelligence boom are yet to recover from post-pandemic downturn
Nicholas Megaw - Financial Times
Enthusiasm about artificial intelligence masks weakness across most of the technology sector, with many companies "still in a recession" following a slowdown that started in 2022, according to investors and analysis of recent financial reports. Massive share price gains for large companies that were predicted to be early beneficiaries of AI, such as Nvidia and Microsoft, helped to erase memories of a dreadful 2022, when the tech-dominated Nasdaq Composite tumbled by almost a third.
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AI Started as a Dream to Save Humanity. Then, Big Tech Took Over; A new book, Supremacy, delves into the drama behind the technological revolution and how visionaries like Sam Altman and Demis Hassabis helped consolidate power among corporate giants.
Parmy Olson - Bloomberg
After clicking the link to this article and reading these first few words, you might be half-wondering if a human wrote them. Don't worry, I'm not offended. Two years ago, the thought wouldn't have even crossed your mind. But today, machines are generating articles, books, illustrations and computer code that seem indistinguishable from the content created by people.
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GIC-Backed Nium Pushes Back IPO Plans to Refocus on Growth
Olivia Poh - Bloomberg
Singapore payments company Nium Pte is pushing back its plans for an initial public offering in the US by more than a year, focusing on shoring up its team and growing revenue. Nium, now valued at $1.4 billion, will be ready to go public by the end of 2026, co-founder and Chief Executive Officer Prajit Nanu said in an interview. It had previously targeted the second quarter of 2025. Nanu attributed the delay to a long search for a finance chief, saying a new leadership now in place will allow it to focus on IPO preparation.
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How to inoculate the world against a payment fraud pandemic; Policymakers and police must work together on prevention while individuals should take more responsibility
Patrick Jenkins - Financial Times
When Jason*, a young executive at a Hong Kong events business, got a recent WhatsApp from Janet*, his friend and colleague, he thought little of it. She was asking him to transfer HK$5,000 (US$641) to pay for equipment for their latest gig. After checking what exactly she needed it for, he logged into his bank account and made the transfer. But like millions of people around the world, Jason had been duped. Janet's WhatsApp account had been corrupted when she had clicked on a rogue ID-verification message, and a scammer was impersonating her.
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Stripe-backed fintech warns of over-reliance on US payment systems; Chief of UK start-up cautions infrastructure critical to global trade could be greater target after US presidential election
Akila Quinio - Financial Times
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| Cybersecurity | | Top stories for cybersecurity | California man loses life savings, owes more than $30K in taxes after falling prey to sophisticated scam
Joe Cortez - Moneywise
On top of losing his life savings to scammers, Chester Frilich of Concord, California is facing a tax bill of over $30,000 which could end in him losing his home. As reported by ABC7 News, his problems began when he received a call from somebody claiming to be from Xfinity, who claimed his account was used to upload pornographic videos. An hour later, he heard from "Jason Brown" with the Federal Trade Commission, listing all of his credit cards and telling him he was under investigation for wire fraud.
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| Cryptocurrencies | | Top stories for cryptocurrencies | The Next Bitcoin Halving Won't Happen Until 2028. Here's What Could Happen in the Meantime.
RJ Fulton - The Motley Fool
Few events hold as much influence over Bitcoin as its halvings. Occurring roughly every four years, they form the foundation of Bitcoin's monetary design. Bitcoin's halvings -- reducing the reward for mining -- have led to consistent, recognizable patterns over the years since its 2009 launch. While past performance doesn't guarantee future outcomes, the reliable nature of the halvings' intervals provides useful data points for investors. The next halving won't take place until 2028, and understanding these patterns could shed light on potential market developments between now and then.
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US Bitcoin ETFs Bleed $1.2 Billion in Longest Run of Net Outflows; Investors pulled cash from the funds for eight straight days; Anxiety in global markets is spilling over into digital assets
Sidhartha Shukla and Suvashree Ghosh - Bloomberg
US Bitcoin exchange-traded funds have posted their longest run of daily net outflows since listing at the start of the year, part of a wider retreat from riskier assets in a challenging period for global markets. Investors pulled close to $1.2 billion in total from the group of 12 ETFs over the eight days through Sept. 6, data compiled by Bloomberg show. The drop comes amid a rocky period for shares and commodities on economic growth worries.
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Companies Finally Find a Use for Virtual Reality at Work; Companies like UPS, Volvo and Walmart are tapping the immersive technology for employee training
Isabelle Bousquette - The Wall Street Journal
More employees are strapping on virtual reality headsets as the immersive technology becomes an increasingly common method for workforce training on a range of topics, from hardware maintenance to leadership and empathy. Companies such as United Parcel Service and Walmart have taken a slow but measured approach to adopting a technology that has drawn extreme hype and extreme skepticism over the years as businesses have tested, piloted and pulled back on various uses.
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WazirX Hacker Moves $11M Stolen Ether to Tornado Cash; Wallet data tracked by Arkham shows over 5,000 ETH, worth just over $11 million at current prices, from July's attack on crypto exchange WazirX was moved to a new address at 07:19 UTC.
Shaurya Malwa - CoinDesk
The North Korean entity behind India's biggest crypto hack moved $11 million in stolen ether (ETH) early Monday in the latest batch of transfers to mixing service Tornado Cash. Wallet data tracked by Arkham shows over 5,000 ETH, worth just over $11 million at current prices, from July's attack on crypto exchange WazirX was moved to a new address at 07:19 UTC.
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Binance Unit Tokocrypto Is Third Crypto Exchange to Score Full License in Indonesia; More than 30 exchanges still have applications pending.
Amitoj Singh - CoinDesk
Binance subsidiary Tokocrypto, an Indonesian cryptocurrency exchange, has obtained a full license as a Physical Crypto Asset Trader (PFAK) from the country's Commodity Futures Trading Regulatory Agency, known as Bappebti. Binance acquired Tokocrypto in late 2022, having previously been a majority shareholder of the company.
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| Politics | | An overview of politics as it relates to the financial markets | More than 90 company executives endorse Harris for US president
Reuters
More than 90 company executives, including the chief executives of Yelp (YELP) and Chobani as well as the former CEOs of PepsiCo (PEP), Ford Motor Co (F) and Yahoo!, endorsed U.S. Vice President Kamala Harris in a letter released on Friday. The group, which includes top sports and investment executives, said they were confident that the Democrat, who faces Republican former President Donald Trump in the Nov. 5 presidential election, would continue to bolster the economy and preserve American democracy.
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Brussels considers sanctions on Slovakia over backsliding on rule of law; European Commission could withhold funds as Robert Fico targets judiciary and political opponents
Raphael Minder and Andy Bounds - Financial Times
The European Commission is considering imposing sanctions on the Slovak government of Prime Minister Robert Fico for backsliding on the rule of law, a move that could deprive the central European country of some of its EU funds, according to EU officials. The EU executive is drafting a letter to warn Bratislava that it faces punishment unless it changes policy, one official said.
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We must not allow free speech to become a partisan issue; Repelled by the characters of those who decry censorship, we fail to value rights that are fundamental to liberal democracy
Jemima Kelly - Financial Times
If you wanted to assemble a crack team of crusaders to fight for the moral rectitude of your side of an argument, you might not put Elon Musk, Russell Brand or Tucker Carlson top of the list. And yet, somehow, we find ourselves in the rather bizarre - even distressing - situation where these are the men currently most vociferous in defending one of our most fundamental human rights: the right to exercise free speech.
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Crypto Plan Creates Potential Conflicts for Trump; Digital-currency efforts bring campaign closer to industry that is spending to limit regulations
Vicky Ge Huang and Maggie Severns - The Wall Street Journal
Republican presidential candidate Donald Trump has been stepping up his efforts to court the money and votes of the crypto industry. His latest attempt: a digital-currency project called World Liberty Financial. While details about the project are scant, the team behind it said this week that it will focus on "spreading U.S.-pegged stablecoins around the world" and ensuring the dominance of the U.S. dollar.
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Trump's Best Idea: Unleashing Elon Musk on Government; The entrepreneur wants to run a commission on government efficiency.
The Editorial Board - The Wall Street Journal
Donald Trump's speech on the economy last week was as usual a jumble of good (deregulation and taxes), bad (tariffs), and incoherent (child care). But one new idea he floated is a very good one and deserves more attention: The former President said he'd ask Elon Musk to run a Government Efficiency Commission. Eyes understandably glaze over at the sound of "commission," which is usually intended to duck a hard issue. The purpose in this case seems to be the opposite-to discover and highlight the countless ways government doesn't work well, and suggest how to do tasks better, or perhaps not at all.
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Second Meeting of U.S.-China Working Group on Enhancing Climate Action in the 2020s
U.S. Department of State
On September 4-6, 2024, China hosted in Beijing a meeting of the U.S.-China Working Group on Enhancing Climate Action in the 2020s, which is co-led by U.S. Senior Advisor to the President for International Climate Policy John Podesta and China Special Envoy for Climate Change Liu Zhenmin and includes their respective colleagues. Both sides continued their discussions on addressing the climate crisis, including implementation of respective 2030 NDCs and preparation of 2035 NDCs.
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Biden and Trump Are Both Eyeing a Sovereign-Wealth Fund. Why? Competition with China is one reason, but some experts say such a fund is unlikely
Greg Ip and Miriam Gottfried - The Wall Street Journal
Republicans and Democrats seem to agree on very little these days. But officials from both parties are intrigued by the idea of the U.S. deploying a new economic tool: a sovereign-wealth fund. White House officials say they have been working for several months on the design of such a fund. The fund would provide capital to advance strategic interests such as early-stage technology and energy security as competition with China heats up. The disclosure comes after former President Donald Trump in an appearance last week called for a sovereign-wealth fund to "invest in great national endeavors for the benefit of all of the American people," such as infrastructure and medical research.
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Brown Trustee Edelman Resigns Over Divestment Vote on Israel
Sarah McGregor - Bloomberg
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Schumer Warns of Government Shutdown Ahead of Sept. 30 Deadline; Top Senate Democrat says GOP 'poison pills' won't be allowed; Republican Cornyn pushes voting bill but doesn't see shutdown
Steven T. Dennis - Bloomberg
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Germany's Discontent Is a Warning for the World; Extremists made strides in recent elections, giving fed-up voters an outlet for their political and economic frustrations.
Brooke Sample - Bloomberg
Why German Angst Is a Worry for the World - Chris Bryant
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Draghi Says EU Itself at Risk Without More Funds, Joint Debt
Jorge Valero and Andrea Palasciano - Bloomberg
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What happened when Spain 'punished' its millionaires
Szu Ping Cha - The Telegraph
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How to Read Russia's Next Nuclear Threat; Russia's new nuclear doctrine will be Kabuki theater for Western consumption
Marc Champion - Bloomberg
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Russia focusing on American social media stars to covertly influence voters
Christopher Bing, Katie Paul and Raphael Satter - Reuters
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| Regulation & Enforcement | | Stories about regulation and the law. | SEC Charges Esmark Inc. and Chairman James Bouchard with Announcing False Tender Offer to Purchase U.S. Steel Corp.
SEC
The Securities and Exchange Commission today announced settled charges against Esmark Inc. and its founder, chairman, and former CEO, James P. Bouchard, for publicly announcing a tender offer to purchase U.S. Steel Corporation for $35 per share even though Esmark lacked the financial means to consummate the offer.
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SEC Charges Litigation Financing Company and its Founders with Fraud
SEC
The Securities and Exchange Commission charged Tort Fund, LLC and its founders, Florida residents Michael V. Chhabra and Vineet K. Chhabra, with the fraudulent offer and sale of at least $125,000 of securities to three investors between April 2019 and November 2019 and the misappropriation and misuse of the investors' money.
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SEC Charges Investment Adviser for Failing to Disclose Fee Increases to Clients
SEC
On September 5, 2024, the Securities and Exchange Commission charged Raskob Kambourian Financial Advisors, Ltd. ("Raskob Kambourian"), a formerly SEC registered investment adviser based in Tucson, Arizona, with breaching its fiduciary duties by failing to disclose financial planning and investment management fee increases to its clients.
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Former director of Reiwa-Capital sentenced after brazenly using $440,000 of investor funds
ASIC
The former director of Reiwa-Capital, Russell Sandiford, has been sentenced in the District Court of New South Wales to two years and 8 months' imprisonment, to be served by way of an Intensive Correction Order (ICO), relating to his dishonest use of investor funds. The sentence was imposed on 6 September 2024 following Mr Sandiford's pleas of guilty to two counts of dishonest conduct in connection with a financial product contrary to s1041G of the Corporations Act.
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ASIC to target misconduct in banking and superannuation sectors
ASIC
ASIC today released its Enforcement and regulatory update (1 January to 30 June 2024), which sets out recent outcomes in enforcement and regulation. In the first half of the year, ASIC was successful in 95% of its civil and criminal prosecutions, securing $32.2 million in civil penalties and nine criminal convictions. ASIC also launched 63 new investigations, commenced 12 new civil proceedings and completed 550 surveillances throughout the period.
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FMA cancels Rockfort Markets' derivative issuer licence following High Court appeal
FMA
The Financial Markets Authority (FMA) - Te Mana Tatai Hokohoko - has cancelled Rockfort Markets Limited's1 (Rockfort) Derivative Issuer (DI) licence. The cancellation took place on 19 July 2024. The FMA initially decided to cancel Rockfort's licence in March 2023 because it was satisfied Rockfort materially contravened its licence obligations. Rockfort appealed the FMA's decision to the High Court and obtained orders preventing publication of any information relating to the case.
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FCA sets out temporary measures for firms on 'naming and marketing' sustainability rules
FCA
We're offering firms temporary flexibility to comply with 'naming and marketing' rules under our Sustainability Disclosure Requirements regime until 2 April 2025. Our Sustainability Disclosure Requirements (SDR) and investment labels regime (PS23/16) were published on 28 November 2023.
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SFC announces arrangements to facilitate distribution of research reports of eligible ETFs under Stock Connect
SFC
The Securities and Futures Commission (SFC) issued a circular today to set out the conditions that allow intermediaries to distribute research reports of eligible Mainland exchange-traded funds (ETFs) under Stock Connect in Hong Kong. Since the inclusion of ETFs under Stock Connect (ETF Connect) in July 2022, the scheme has been operating smoothly and highly welcomed by investors in both markets. Its expansion also took effect in July 2024.
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | CLO Equity Holders Reset Deals at Record Pace: Credit Weekly; More than $26 billion of CLO resets priced in August; Resets are making up a larger piece of the CLO issuance pie
Immanual John Milton - Bloomberg
Investors in the riskiest portions of collateralized loan obligations are seeing their returns get juiced thanks to the biggest wave of resetting on record. Resets, a form of refinancing for CLOs, surged to a US record of more than $26 billion in August, according to data compiled by Citigroup Inc. that dates back to 2015. That's a huge jump from the previous record for a month set in June, when they exceeded $20 billion for the first time.
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Companies issue record level of US debt to avoid market turbulence and election risk; Flurry of investment-grade bond deals as investors prepare for a potentially volatile autumn
Harriet Clarfelt - Financial Times
Companies issued record volumes of US debt this week as they moved to head off possible volatility from closely watched economic data, a Federal Reserve meeting and a fast-approaching presidential election. Twenty-nine US investment-grade bond deals hit the market on Tuesday alone following the Labor Day holiday, data from LSEG shows - the highest daily number on record. Another burst of activity on Wednesday took issuance over those two days to just under $73bn, the largest figure in LSEG records going back 20 years. More blue-chip deals followed, taking total borrowing across 60 high-grade issuers to almost $82bn - marking the busiest week since May 2020.
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Trafigura Ramps Up Hiring in Oil Market's New Engine of Growth; Company expanding in petrochemicals due to plastics demand; Trader made specialist hires in Singapore, Houston and Geneva
Archie Hunter and Weilun Soon - Bloomberg
Trading house Trafigura Group is building out its presence in petrochemicals, as demand grows for what has historically been niche area of the oil market. "We've grown our petchems business over the past few years, with traders now based in Houston, Geneva and Singapore specifically focused on it," Ben Luckock, the company's head of oil trading, said in an interview.
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I had a CD with a 5.5% interest rate and the bank wants it back early. Now what?; With the Federal Reserve expected to lower interest rates, you may be getting a surprise email from your bank.
Beth Pinsker - MarketWatch
I made a bit of an investing mistake recently. I had my CDs all planned out and laddered to come due for the next few years so I could easily make required withdrawals from an inherited IRA. I was happy and even felt savvy, because all of the interest rates on the CDs were higher than the going rate in an environment where rates were due to soon slip even lower. Then I got an email last week from the bank giving me notice that they were taking back one of the CDs three months early.
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A Guide to Why You Should Buy Bonds (And Why You Shouldn't); Bonds have regained the haven property that made them desirable for 60/40 portfolios, but other factors matter more
Jon Sindreu - The Wall Street Journal
If you buy bonds, make sure you do it for the right reasons. Whereas equity investors have had a bumpy few months, believers in the venerable 60/40 portfolio should be permitted a victory lap: As the S&P 500 delivered a negative 5.1% return between the end of July and Aug. 5, a portfolio consisting of 60% U.S. equities and 40% 10-year Treasurys lost only 2.6%. Then, the 4.2% stock drawdown that happened last week translated into only a 1.9% loss for the 60/40 portfolio.
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The Downside of Falling Interest Rates; While rate cuts are welcome in much of the economy, they pose problems for risk-averse investors who relish high money market and bond yields.
Jeff Sommer - The New York Times
With the Federal Reserve expected to cut short-term interest rates later this month, investors face some tricky choices. While falling rates are usually viewed as a boon for the stock market, that's not the case for all parts of the investment universe. In fact, for money you may need soon, where safety is a major priority, falling interest rates aren't great news at all.
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China's PBOC Keeps Gold Buying on Hold as Prices Reach Record
Sybilla Gross - Bloomberg
China's central bank did not add any gold to its reserves for a fourth straight month in August as prices for the precious metal rose to a record. Bullion held by the People's Bank of China was unchanged at 72.8 million troy ounces at the end of last month, according to official data released on Saturday. The PBOC had added to its stockpiles for 18 consecutive months up to April this year, helping to underpin the strength in bullion prices.
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | World's Most Stringent ESG Rules Draw Backlash From EU Business; As valuations and competitiveness are hit, companies are crying foul and saying the US is addressing the climate issue better.
Lisa Pham, Frances Schwartzkopff, and Saijel Kishan - Bloomberg
For TotalEnergies SE Chief Executive Officer Patrick Pouyanne, the difference in the performance of his company's stock and that of Exxon Mobil Corp., the largest US producer of oil and gas, is in no small part explained by an acronym: ESG. Exxon's aggressive oil and gas strategy has been rewarded by investors, with its shares more than doubling in the past three years. For Europe's second-biggest oil company, in contrast, pressure on the region's asset managers to invest using environmental, social and governance standards has capped gains and prompted Pouyanne to flirt with the idea of listing shares in the US.
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Norway Wealth Fund Voices Concern Over 'Fragmentation' of ESG; Deviations from ISSB standards put global initiative at risk; Investors want uniform disclosure to gauge sustainability risk
Kari Lundgren and Frances Schwartzkopff - Bloomberg
Norway's $1.7 trillion wealth fund is urging countries not to stray too far from global ESG reporting standards as it monitors progress across jurisdictions. For Oslo-based Norges Bank Investment Management, guidelines set by the International Sustainability Standards Board last year marked a major step in helping investors build portfolios around comparable environmental, social and governance criteria. However, there's now a concern that ISSB's adoption across jurisdictions will be far from uniform, undermining its original purpose.
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Costly cat bonds help vulnerable countries weather the storm; Areas prone to natural disasters have to weigh up the costs and benefits of the risk financing tools
Financial Times
From earthquakes to tornadoes, natural disasters have inflicted billions of dollars of damage this year. But so far they have had minimal impact on the catastrophe bond market. These disaster risk financing tools are designed to transfer risks to capital markets. Yet, critics argue, they can transfer scarce financial resources from poor countries to the rich. That argument isn't well founded.
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Putting Olive Oil in a Squeeze Bottle Earned This Startup a Cult Following; Graza upended the cluttered category with an often-forgotten innovation: Clever package design.
Amanda Mull - Bloomberg
In the spring of 2023, a fight broke out on LinkedIn over olive oil. Or, to be more specific, olive oil bottles. Andrew Benin, the co-founder and chief executive officer of the olive oil startup Graza, was miffed that Brightland, a competitor, had packaged its new herb-infused Pizza Oil in a squeezable plastic bottle-Graza's signature packaging-instead of the traditional glass. "#Copycat culture is an incessant part of our entrepreneurial landscape," he posted. The spat spilled into food media, and a few days later, Benin returned to LinkedIn to apologize, saying he was "heated, and reacted poorly." (Brightland, for its part, never commented publicly.)
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China and US push each other on priorities for UN COP29 climate talks; John Podesta presses China for ambitious goals on emissions while Beijing urges Washington to 'maintain consistency'
Aime Williams - Financial Times
Washington's top climate diplomat John Podesta has pressed Chinese leaders to come up with ambitious plans to cut greenhouse gas emissions by 2035 in one of the final meetings between the world's two largest polluters ahead of the UN COP29 climate summit in November. Podesta visited China last week along with other US officials for meetings with his Chinese counterpart Liu Zhenmin and China's foreign minister Wang Yi, as well as other ministries involved in climate and the environment.
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The Texas Billionaire Who Has Greenpeace USA on the Verge of Bankruptcy; Energy Transfer's Kelcy Warren, a hypercompetitive mogul, is behind a lawsuit that could deal environmentalists a grievous blow
Benoît Morenne - The Wall Street Journal
Fossil-fuel billionaire Kelcy Warren is about to land a knockout punch on Greenpeace. The pipeline magnate's company, Energy Transfer is behind a lawsuit that Greenpeace says could bankrupt the environmental group's U.S. affiliate. A courtroom victory, which some Greenpeace officials fear is likely, would be a coda in the nearly decade long battle between the two sides over one of Warren's signature projects: the Dakota Access Pipeline.
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UK financial watchdog eases anti-greenwashing 'naming and marketing' rules until April
Reuters
Britain's financial watchdog is providing temporary leniency to firms to comply with 'naming and marketing' rules aimed at tackling greenwashing until April 2025, it said on Monday. The new bespoke rule to combat greenwashing, which came into force on May 31, was to stop investment firms from inflating the green credentials of their products to retail customers.
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SDG alignment can help companies avoid scandals, study finds
Sarah George - edie
Businesses aligning their strategies and actions closely with the UN Sustainable Development Goals (SDGs) are less likely to become embroiled in scandals on environmental, social or governance (ESG) issues, a study of thousands of firms has found.
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Donald Trump gets everything wrong about the climate crisis; The results of the vote in November could reverberate for a million years
Bill McKibben - The Guardian
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10 Tough Climate Questions for the Presidential Debate; Climate and energy get little acknowledgement in most political debates. But there are plenty of questions for both Trump and Harris on the urgent choices the next president faces.
Marianne Lavelle, Kiley Bense, Liza Gross - Inside Climate News
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World's Top Carbon Emitters Cite Progress in New Climate Talks; US, Chinese officials held three days of talks in Beijing; Countries talked about stronger 2035 emissions-cutting pledges
Jennifer A Dlouhy - Bloomberg
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Australian Airports Face Costly Fight Against Worst Climate Risk; Zurich-Mandala index assesses climate risk to tourism; Findings are warning to aviation investors as planet warms
Angus Whitley - Bloomberg
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Sanctioned Russian Gas Plant Sends Cargo to Asia for First Time; Everest Energy is taking the northern sea route: ship-data; Moscow is looking for buyers willing to skirt US restrictions
Stephen Stapczynski - Bloomberg
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India plans to use LNG for third of truck fleet, in blow to diesel
Nidhi Verma - Reuters
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China Likely Buying Oil for SPR at Low Prices, Energy Aspects Says
Bloomberg
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Europe must push for low CO2 bread, says fertiliser group chief; Yara International head calls for more government support in the production of green crop nutrients
Susannah Savage - Financial Times
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EU to Provide Grant Funding for Green Hydrogen in South Africa
Ntando Thukwana - Bloomberg
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Great Barrier Reef already been dealt its death blow - scientist
Eloise Gibson - RNZ
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The huge US toxic fire shrouded in secrecy: 'I taste oil in my mouth'; Louisianans say a major accident at a sprawling Marathon refinery caused health issues. The company insists there were 'no offsite impacts'
Oliver Laughland, Sara Sneath and Will Craft - The Guardian
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Trafigura Says Oil Set for $60s, But Don't Be Too Bearish
Yongchang Chin - Bloomberg
Two of the world's largest commodities traders have painted a bleak picture on the outlook for the oil market, echoing concerns over Chinese demand and plentiful supply on day one of the APPEC conference. The mood from Asia's biggest gathering of oil executives, traders and investors in Singapore was overwhelmingly bearish, highlighted by a gloomy forecast for Brent crude by Trafigura Group. The global benchmark is "probably going to go into the $60s some time relatively soon," Ben Luckock, the trader's head of oil, said at the Asia Pacific Petroleum Conference.
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Fortress to buy Japan's eccentric Hawaii-themed hot springs resort for $100mn; Tourist attraction 50km from site of Fukushima nuclear plant includes world's largest onsen and hula-dancing troupes
Eric Platt and Leo Lewis - Financial Times
Private equity group Fortress has agreed a $100mn deal to buy Japan's oldest and most eccentric hot springs resort: a Hawaiian-themed hotel, golf and waterslide complex just 50km from the stricken Fukushima nuclear plant. To gain ownership of the 431-room Spa Resort Hawaiians, Fortress has launched an agreed tender offer for Joban Kosan, the Tokyo-listed company originally founded as the operator of Japan's largest coal mine. In a statement to the Tokyo Stock Exchange on Monday afternoon, Joban Kosan said its board had agreed to recommend the offer.
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Iraqi Banks Used U.S.-Created System to Funnel Funds to Iran; New York Fed's process to move Baghdad's oil earnings lacked key money-laundering safeguards, resulting in illicit transfers that financed terrorist groups for years
David S. Cloud - The Wall Street Journal
Ali Ghulam was the undisputed dollar king of Iraq for almost a decade. His three Baghdad banks wired tens of billions of dollars in that time outside the country, ostensibly for car parts, furniture and other imports. He was one of the biggest operators in an ad hoc banking system set up around two decades ago under the U.S. occupation that gave the Federal Reserve Bank of New York a key role in processing Iraq's international transactions. Years later, when the Fed finally began looking closely at where the money was going, it shut him down almost overnight.
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European banks set for slowest mortgage lending growth in decade; Record interest rates have sent a chill through the market
Owen Walker - Financial Times
European banks are on course to record zero growth in mortgage lending for the first time in a decade this year because of high interest rates, but a recovery is expected from 2025. Borrowers have been put off taking out new mortgages in the Eurozone over the past couple of years as the European Central Bank raised interest rates to record levels after an extended period of negative rates.
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HSBC weighs commercial, investment bank merger to shed costs, Bloomberg reports
Reuters
HSBC is mulling the combination of its Commercial and Investment banking divisions to eliminate overlapping roles at the lender and cut costs, Bloomberg News reported on Monday, citing people familiar with the matter. The combined division would become the bank's largest revenue generator, contributing about $40 billion to the lender's revenue annually, the report added.
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New Hedge Fund Gains Backing for Bets on Japan Market Revival
Bei Hu - Bloomberg
Hong Kong-based Sengu Capital Ltd. is starting a new hedge fund focused on improving corporate management in Japan, tapping into the country's financial market revival. The company will start trading for the fund in early October, Chief Investment Officer Yoshihiko Ohira and Chief Operating Officer Xavier Fanjaud said in an interview. The Japan fund lured multiyear backing from HS Group (Hong Kong) Ltd., a provider of strategic capital to such fledgling managers in exchange for a cut of their fee revenue.
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Hedge Fund Pushes for End of Murdochs' Control at News Corp; Starboard Value, a fund that takes stakes in companies and agitates for changes, said that political disagreements among Rupert Murdoch's children could be "paralyzing" for the media firm.
Lauren Hirsch - The New York Times
The Murdoch family's control over its media empire has long been the subject of intrigue and drama. It is also the latest target of the prominent shareholder activist Jeffrey C. Smith. Mr. Smith's hedge fund, Starboard Value, has submitted a nonbinding shareholder proposal that could end the Murdochs' control, according to a letter to fellow shareholders seen by The New York Times. The plan shines a light on the family's power over its media holdings as it is about to be subjected to courtroom scrutiny.
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Bonderman's Wildcat Spawns New Hedge Fund, Invests $200 Million; Thomas McConnon's Whitebark Investors launched last month; Firm expects to hold most positions for at least five years
Gillian Tan - Bloomberg
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ETF dispersion set for election revival; Sector-based approach to popular vol trades boasts cheaper entry cost than classic version, proponents argue
Celeste Tamers and Helen Bartholomew - Risk.net
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Jupiter and Swisscanto prep ETF launches; UK asset manager becomes latest big-name house to embrace active ETFs
Alf Wilkinson and Dom Lawson - Financial Times
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | IT Unemployment Hits 6% Amid Overall U.S. Jobs Growth; AI and general streamlining efforts leave tech workers in a tough labor market
Belle Lin - the Wall Street
The unemployment rate for information-technology workers rose to 6% in August, up from 5.6% the prior month as the boom in artificial intelligence continued to drastically alter the tech landscape. In August, there were 148,000 unemployed IT workers, more than the 145,000 in July, according to consulting firm Janco Associates, which based its findings on data from the U.S. Department of Labor. The IT unemployment rate has been above the national jobless rate for seven of the last eight months, Janco found. On Friday, the Bureau of Labor Statistics said the national jobless rate ticked down to 4.2% in August as the economy added 142,000 jobs.
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How AI is generating a 'sea of sameness' in job applications; New technologies can help applicants stand out - or thwart both them and employers
Cristina Criddle - Financial Times
As UK vacancies have fallen over the past couple of years, jobseekers have had to find novel methods to stand out from the deluge of applicants vying for each available role. New technologies such as generative AI and improved digital tools have made it easier and quicker to create sophisticated CVs and cover letters far removed from the dull Times New Roman font on an otherwise blank A4 page printout.
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Out of a job but not ready for the golf course: how about a board career? More departing CEOs and CFOs are opting for a smorgasbord of director, consulting and mentoring roles
Brooke Masters - Financial Times
When James Gorman leaves Morgan Stanley this year he will join a growing number of departing top executives opting to put together a smorgasbord of director, consulting and mentoring roles, rather than take on another full-time position or retire entirely. Gorman, the bank's former chief executive, will complete a transitional year as executive chair in December. He has already taken a spot on the Disney board, chairs the Columbia Business School board of overseers and will probably accept other positions.
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Has everyone at work lost their minds? Complaints of bad behavior and petty sabotage in the office include stolen lunches, spandex office gear and a lack of basic hygiene. "People got so used to working alone," said one expert.
Janay Kingsberry and Sofia Andrade - The Washington Post
Labor Day is here again, with another opportunity to consider the continued decline of the place we call the office. (And yes, we all saw the story about the poor woman in Tempe, Ariz., whose dead body was found in her Wells Fargo cubicle last month, four days after she last clocked in, becoming a new symbol of workplace discontent.)
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'Ghost Jobs' and Shrinking Consultant Salaries Spell Trouble for Other Workers; Consultant job posts with no hiring activity hit two-year high; Salary increases expected to shrink for third straight year
Matthew Boyle - Bloomberg
Consultants seeking work are increasingly likely to be chasing ghosts. Job listings for consulting roles with no hiring activity, also known as "ghost jobs," hit a two-year high, according to data from hiring platform Greenhouse. While ghost jobs have declined in finance and technology, those in consulting - a bellwether for the white-collar economy - rose to 31% in the second quarter, up from 26% two years ago and well above the prevalence across the broader job market.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Dementia risk factors identified in new global report are all preventable - addressing them could reduce dementia rates by 45%
Eric B. Larson - The Conversation
Nearly half of all dementia cases could be delayed or prevented altogether by addressing 14 possible risk factors, including vision loss and high cholesterol. That is the key finding of a new study that we and our colleagues published in the journal The Lancet. Dementia, a rapidly increasing global challenge, affects an estimated 57 million worldwide, and this number is expected to increase to 153 million by 2050 worldwide. Although the prevalence of dementia is on the decline in high-income countries, it continues to increase in low- and middle-income countries.
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High Mpox Vaccine Price to Pose Key Hurdle in Africa Order Talks; Price for Bavarian's vaccine estimated at $100-141 per dose; Unicef leading negotiations to secure more vaccine for Africa
Sanne Wass and Janice Kew - Bloomberg
The price of Bavarian Nordic A/S's mpox vaccine is set to become a key sticking point in talks to secure millions of shots for Africa, with the Danish company under growing pressure to lower its charge. As the first batch of more than 200,000 doses arrive in the Democratic Republic of the Congo, talks led by agencies including Unicef are underway to secure more vaccines for crisis-hit African countries. Initial agreements are slated to be finalized by mid-September.
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Pricy new cancer drugs offer patients hope but pile pressure on health budgets; Medical breakthroughs come with spiralling price tag, leaving policymakers with tough decisions
Sarah Neville - Financial Times
The day her son turned 18, Linda Medendorp was told she was going to die. After seeing a doctor about persistent problems swallowing her food, tests showed the then 51-year-old had incurable cancer that had already spread from her stomach and rectum. "It was the biggest nightmare," she said, but there was "one positive factor in all the bad news". Her tumour's characteristics meant she qualified for a Dutch trial of a checkpoint inhibitor, which removes brakes on the immune system that prevent it from attacking cancer cells. Suddenly she had a sliver of hope.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | China's LNG Imports May Suffer as Caverns Are Filled to The Brim
Bloomberg
China has boosted underground storage of natural gas, after it made an early start on preparations for peak demand over the winter. But the build-up may also signal subdued consumption in recent months due to a slowing economy, which has left the country uncommonly well-stocked with the fuel. If the winter's bitter, then China will surely be glad of its hoard. But mild weather could have implications for imports, especially the more expensive spot purchases of liquefied natural gas.
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China Renaissance Crashes as Trading Resumes After Bao Fan Exit; Shares resume trading in Hong Kong after 17-month suspension; Ex-chair Bao was replaced amid unspecified government probe
Lulu Yilun Chen - Bloomberg
China Renaissance Holdings Ltd.'s shares fell as much as 73% after resuming trading in Hong Kong on Monday, 17 months after the stock was suspended following the detention of its former Chairman Bao Fan. The company said it has fulfilled requirements for the trading resumption, releasing its earnings for the first half and for last year and 2022. The company replaced Bao in February, a year after he vanished from the public eye due to an investigation by Chinese authorities. Shares of China Renaissance were down 63% as of 11:00 a.m., wiping out about HK$2.6 billion ($334 million) of its market value.
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China's Deflationary Spiral Is Now Entering Dangerous New Stage
Bloomberg
Deflation stalking China since last year is now showing signs of spiraling, threatening to worsen the outlook for the world's second-largest economy and raising calls for immediate policy action. Data released Monday confirmed that apart from food costs, consumer price growth barely registered in large swathes of the economy at a time when incomes are sagging.
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Singapore's Oil Party Spoiled by Falling Prices and China Gloom; Traders, analysts and producers congregate for city's oil week; China's economy health, global oversupply to dominate talks
Serene Cheong - Bloomberg
The oil party isn't over yet - but for top merchants and executives gathering for talks and rooftop cocktails in Singapore this week, the exuberance that came with the outsized profits of recent years is quickly fading. China's economic slowdown, structural shifts in the global energy mix and the prospect of additional crude supply are all weighing on refiners and producers. Processing margins have tumbled. Traders will be no less glum, as the turbulence of the pandemic and of the months that followed Russia's invasion of Ukraine - once-in-a-generation events - have been replaced by low volatility.
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Bermuda premier defends 'robust' insurance sector after 777 Re crisis; David Burt says island has 'very strong and robust regulatory system' following issues at private equity-linked reinsurer
Ian Smith - Financial Times
Bermuda's premier has defended the robustness of the island's life reinsurance sector, saying "you can never prevent all problems from occurring", following a crisis at a Hamilton-based reinsurer linked to private equity firm 777 Partners. The British overseas territory is a global hub for reinsurance, particularly policies covering buildings against natural catastrophes. In recent years it has grown in importance as a venue for life insurers to offload their longevity and investment risks.
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