| January 15, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
Today is Martin Luther King Jr. Day, which is celebrated on the third Monday of January each year and commemorates the life and legacy of Dr. Martin Luther King Jr., one of the most prominent figures in the American civil rights movement. The holiday was established in 1983 when President Reagan signed it into law and was first observed on January 20, 1986, marking Dr. King's birthday. It serves as a tribute to his tireless efforts advocating for racial equality, justice, and civil rights through nonviolent means. Dr. King's famous "I Have a Dream" speech, delivered during the 1963 March on Washington, remains a symbol of his vision for a more inclusive and harmonious America. Martin Luther King Jr. Day not only honors his contributions but also encourages individuals to engage in acts of service, reflecting his message of unity and social progress. As today is a U.S. holiday, it is a "given day" for JLN staff, meaning they help produce JLN, but then are given the rest of the day off. There will be no JLN Options published today.
The Financial Times published a Special Report on Responsible Business Education Awards, which highlights the growing demand for sustainability and responsible education within business schools. These awards, now in their third year, commend institutions, researchers, and educators who are reshaping business education to focus on societal and environmental responsibilities. Students are increasingly seeking sustainability-focused education, and past award recipients have leveraged their recognition to advance their initiatives. The report also spotlights schools with strong commitments to environmental, social, and governance (ESG) considerations and innovative teaching methods that incorporate technologies like VR and AI for sustainability education. Additionally, it acknowledges academic research addressing vital societal and environmental issues. The report's examination of the lack of standardization in ESG ratings methodology underscores the need for consistency in evaluating corporate sustainability practices. JLN reported on the lack of ESG ratings standardization in our podcast with Daniel Cash.
In exchange news, the Tokyo Stock Exchange (TSE) is set to publish a list of companies that have voluntarily devised business plans to enhance capital efficiency as part of the exchange's corporate governance initiative, aiming to pressure firms into change. This effort has contributed to Japan's stock market's strong performance in recent times, with the Nikkei 225 Stock Average rising 28% last year. In 2024, Japan's stock market plans to introduce measures to attract more retail investors and global funds, including expanding the tax-exempt retirement savings account program, known as Nippon Individual Savings Account (NISA). Additionally, the Tokyo Stock Exchange has regained the top position in Asia in terms of total market capitalization. Overseas investors are returning to the Japanese stock market, boosting blue-chip purchases. In the UK, police arrested six individuals believed to be plotting against the London Stock Exchange, and the Depository Trust & Clearing Corporation (DTCC) commented on the SEC's ruling regarding expanded US Treasury clearing. Finally, the National Stock Exchange of India (NSE) has launched a new Investor Portal to help investors make informed decisions by providing comprehensive information about listed companies.
In the cryptoverse, Coinbase's Brian Armstrong emerged as a prominent figure amid rivals like FTX and Binance is facing legal issues and crackdowns. Tether, a major crypto platform, was flagged for its role in scams and money laundering in Southeast Asia by the UN. Cboe Digital achieved a milestone by launching margined Bitcoin and Ether futures. Genesis Global Trading paid an $8 million penalty and exited New York as part of a settlement. J.P. Morgan expects significant capital inflow into new spot Bitcoin ETFs. BlackRock CEO Larry Fink expressed support for an Ethereum ETF. Meanwhile, Hong Kong was urged to authorize spot cryptocurrency ETFs, white supremacist groups were found to use crypto for funding, and tokenized investment funds gained traction but pose technology risks, according to Moody's.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories from our previous edition of JLN Options were:
- VIX Trader Drops $17 Million on Bet That Eerie Stock Market Calm Won't Last from Bloomberg.
- Options growth in 'early days' as ETF issuers shift strategies - Cboe From Futures & Options World.
- Bullish-Looking China Options Trades Mask Lack of Conviction from Bloomberg. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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98th STAC Annual Mid-Winter Meeting Gets Ready to Kick Off at Chicago Hilton
JohnLothianNews.com
The 98th Annual Mid-Winter Meeting of the Securities Traders Association of Chicago ("STAC") opens at the Chicago Hilton on South Michigan Avenue on Wednesday, and John Lothian News interviewed STAC President Dan Romanelli in a curtain-raiser for the conference.
Watch the video »
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Options Discovery Episode 29: Understanding The Foundations To Become A Successful Options Trader; Mark Esposito, Options Mentor at McMilan Analysis Corps., Discusses This and More With JLN's Asma Awass
JohnLothianNews.com
In this episode of Options Discovery, Asma Awass discusses the different principles that traders should understand about options. This episode includes a breakdown of calls and puts, choosing the underlying asset, and volatility & the Greeks. Asma then sits down with Mark Esposito, an options mentor at McMilan Analysis Corp, who shares more insight on the foundations of options trading. You can check out the Options Mentoring Program here: https://www.optionstrategist.com
Watch the video »
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How AI Replaced the Metaverse as Zuckerberg's Top Priority; Meta's founder has become deeply engaged in his company's AI efforts ahead of its 20th anniversary, but his close attention hasn't always proved to be a recipe for success.
Aisha Counts and Sarah Frier - Bloomberg
In the summer of 2021, during a private moment at the Allen & Co. conference in the Idaho mountains, Google Chief Executive Officer Sundar Pichai complimented Mark Zuckerberg on a technological breakthrough by Facebook's artificial intelligence team. Pichai's comment was exactly the kind of thing Zuckerberg likes to hear. For one of the most prominent people in Silicon Valley, the co-founder and CEO of Meta Platforms Inc. can be surprisingly touchy about getting recognition for being someone who actually makes technology.
/jlne.ws/47CoHZl
***** For sale: virtual real estate, prime locations.~JJL
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U.K. police arrest six people in plan to disrupt London Stock Exchange
Liz Moyer - MarketWatch
Six people are in custody on Sunday as Metropolitan Police detectives investigate a plot to disrupt the London Stock Exchange, authorities said. The police said the arrests were made in Brighton, Liverpool, and London. In a statement, the Metropolitan Police in the U.K. said the allegations are that activists from the Palestine Action group were intending to target the LSE on Monday, "causing damage and 'locking on' in an effort to prevent the building opening for trading." A representative from the LSE said they had no comment but noted that no trading takes place at London Stock Exchange itself. Equity trading is fully electronic, and there hasn't been a physical trading floor since 1986.
/jlne.ws/47vgMgg
****** The ironic part is the last sentence, "Equity trading is fully electronic, and there hasn't been a physical trading floor since 1986."~JJL
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Is the stock market open on Martin Luther King Jr. Day? Will the post office deliver mail?
Charles Passy - MarketWatch
On Monday, Americans will pay tribute to the late civil-rights leader Martin Luther King Jr. Martin Luther King Jr. Day commemorates the life and legacy of King, who was born on Jan. 15, 1929, and became a leading voice in the fight for racial justice. MLK Day, as the holiday is often called, was made a federal holiday in 1983 and was first observed in 1986. The holiday is always celebrated on the third Monday in January, which this year falls on King's actual birthday.
/jlne.ws/3SjeKKL
****** Somewhere the crypto bros are saying, "24/7, 24/7, 365."~JJL
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2024: Looking Back / Looking Forward
Derek Haworth - Born Tec
By nearly any measure, 2023 was a momentous year for the derivatives and trading industries. While higher interest rates led to a realignment of trading strategies and stimulated what is certain to be a record year for trading volumes, other events had tremendous impacts on the industry as well. Turning the page on the calendar is always a good time to reflect on the year that just passed and to take a look ahead to see what might lie ahead in the New Year. Here are three items that caught our attention last year along with some thoughts on what they might mean for 2024 and beyond.
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***** If forward contracts are called futures, what are backward contracts? Backwards? Anyway, Derek Haworth of Born Tec is looking back and forward.~JJL
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The wealth of the world's five richest men more than doubled since 2020
Tami Luhby - CNN
The five wealthiest people on Earth have become a whole lot richer in recent years. Since 2020, these billionaires' net worth has skyrocketed 114% to a total of $869 billion, after taking inflation into account, according to Oxfam's annual inequality report, released Sunday. If current trends continue, the world could see its first trillionaire in a decade.
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***** I am glad it is their wealth that doubled and not the men. I could not take a second Elon Musk or Jeff Bezos.~JJL
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Friday's Top Three
Our top story Friday was a tie between the Financial Times' SEC's bitcoin ETF sign-off comes with a stark reminder of its lingering doubts and Bloomberg's Bitcoin ETFs Take Wall Street by Storm With Historic Debut. Second was The Wall Street Journal's Grayscale Faces New Risk-Management Challenge With Bitcoin ETF Approval. Third was The Biggest Bitcoin ETF Threat No One Is Talking About, from CoinDesk.
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| Lead Stories | The Last Man Standing in Crypto; Brian Armstrong's Coinbase, a winner from the new bitcoin ETFs that recently started trading, faces a big legal test
Vicky Ge Huang - The Wall Street Journal
Brian Armstrong has become the new face of crypto. Coinbase Global, the cryptocurrency exchange he co-founded in 2012, is one of the last big digital-asset companies standing after a string of high-profile collapses and government crackdowns. Armstrong's former rivals-FTX founder Sam Bankman-Fried and Binance founder Changpeng Zhao, who once boasted far greater influence and wealth-are either in jail or facing time behind bars. Armstrong has continued expanding Coinbase despite the industry slowdown and a long string of unprofitable quarters. As chief executive, he has pushed the company into overseas markets, launched new products and forged business ties with Wall Street asset managers to try to become less reliant on crypto trading revenue.
/jlne.ws/3O2YhZF
Fund managers urge European regulators to mirror US move to T+1; Efama says there is 'compelling case' to reduce current two-day settlement time given that US does so in May
Robert Van Egghen - Financial Times
Asset managers have warned of a "major and serious risk" to European capital markets if regulators do not copy the US and cut settlement cycles to one day. Europe's markets watchdog is considering whether to shorten EU settlement cycles following a move in the US to cut the current two-day settlement time for US equities and corporate bonds, a process known in the industry as T+2.
/jlne.ws/3Hks7Fm
How Brexit became prime suspect in the death of the stock market; Clues point to Britain's 2016 vote as City suffers brutal losing streak
Michael Bow and Adam Mawardi - The Telegraph
Just before 8am on Tuesday morning, around a dozen top bankers trudged into Number 11 Downing Street to solve a pressing problem. The London stock market, a beacon of Britain's standing in the world, is rapidly losing its status as a global centre for raising new capital. Companies that once jetted into Heathrow to tap London's vast pools of money are slowly fleeing to the US or into the arms of private equity buyers. Even those who are already listed here are starting to flee.
/jlne.ws/3TWm0yx
The Regional War No One Wanted Is Here. How Wide Will It Get?
Steven Erlanger - The New York Times
From the outbreak of the Israel-Hamas war nearly 100 days ago, U.S. President Joe Biden and his aides have struggled to keep the war contained, fearful that a regional escalation could quickly draw in U.S. forces. Now, with the U.S.-led strikes on nearly 30 sites in Yemen on Thursday and a smaller strike Friday, there is no longer a question of whether there will be a regional conflict. It has already begun. The biggest questions now are the conflict's intensity and whether it can be contained.
/jlne.ws/48Uuj1M
Banking watchdog warns on AI as global leaders gather in Davos; Hernandez de Cos says financial regulation should be 'blueprint' for policymakers ahead of AI-focused summit in Switzerland
Laura Noonan, Madhumita Murgia and Sam Fleming - Financial Times
Global leaders need a co-ordinated response to the challenges posed by AI, the chair of the world's banking watchdog said, as he warned that the fast-developing technology "could change the course of history, not necessarily for the good". Pablo Hernández de Cos, who chairs the Basel Committee on Banking Supervision and is also governor of the Bank of Spain, urged leaders ahead of this week's summit in Davos to use financial regulation as a blueprint for tackling issues such as AI and climate change. The "really remarkable" co-operation on financial regulation that allowed watchdogs to keep the world's financial system stable through a pandemic and two wars should be applied to AI, the Spanish official told the
/jlne.ws/49cEFur
Mr. JGB Says End of BOJ's Negative Rate Won't Set Yields on Fire; Saito says lower 1% range is highest 10-year yield would go; Sees labor shortage helping BOJ reach its stable price goal
Erica Yokoyama and Emi Urabe - Bloomberg
Japan's bond market will largely take in its stride any normalization steps by the central bank this year, according to a former finance ministry official known for his key role in reforming management of the country's issuance of debt. "Japanese long-term yields won't climb much beyond 1%, even if the Bank of Japan revises its yield curve control program or raises its short-term policy rate," said Michio Saito, known as Mr. JGB, in an interview last week.
/jlne.ws/48QVTgp
Tokyo Bourse to Name Companies With Efficiency Improvement Plans; Corporate governance push helped boost Japan stocks last year; Announcement may provide lift to value shares: Tokai Tokyo
Hideyuki Sano - Bloomberg
The Tokyo Stock Exchange will publish on Monday a list of companies that have met a voluntary request to come up with business plans to improve capital efficiency as part of the bourse's push to boost corporate governance. Japan Exchange Group Inc., the TSE's operator, made the request last year as part of a name-and-shame strategy to pressure firms that are reluctant to change. Hopes that the push will prompt cash-rich firms to increase shareholder returns have helped make Japan's stock market one of the world's best performers last year, with the blue-chip Nikkei 225 Stock Average rising 28%. The market extended gains 6% so far this year.
/jlne.ws/3RT7kxo
Japan Plans These Stock Market Steps in 2024 to Lure More Buyers; New NISA may bring in ¥2 trillion inflows: SMBC Nikko; Trading hour extension could increase liquidity: JPMorgan
Akemi Terukina and Aya Wagatsuma - Bloomberg
Japan's stock market is unveiling a slew of measures this year aimed at making it more attractive for retail investors and global funds, including an expansion of the tax-exempt retirement savings account program. The new Nippon Individual Savings Account, or NISA, already appears to drawing in more individual investors, according to Rakuten Securities Inc. President Yuji Kusunoki. Traders bullish on Japanese shares are hoping that the revised system and other steps will help extend last-year's equity rally that saw the Nikkei 225 and Topix index beat major global peers to touch 34-year highs. Here are some of those measures that share investors are watching.
/jlne.ws/47QRjy9
Davos Elite Size Up the Global Risks of Another Trump Presidency; BlackRock's Hildebrand says Trump 2.0 would be a great concern; Al Gore doesn't see Trump victory as a foregone conclusion
Francine Lacqua - Bloomberg
Donald Trump is thousands of miles away from the Alpine Swiss town of Davos but talk of his possible return to the White House is on everyone's lips even before the annual shindig of the global elite has kicked off. On Monday, in the subzero temperatures of Iowa, he's set to cement his status as the Republican frontrunner in the first GOP contest of the 2024 election. His crushing lead over rivals appears unsurmountable and polls show Trump and US President Joe Biden facing off and in a dead heat.
/jlne.ws/3vyL2cO
The unintended consequences of the Basel endgame; Investors have been right to fret over the effects of proposed bank capital rule changes
Huw van Steenis - Financial Times
Financial history is littered with the unintended consequences of regulatory changes. Capital controls in the 1960s drove international borrowers to move from the US to create the eurobond market. The deregulation of savings and loan banks in 1980 contributed to the industry crisis later that decade. And on and on. Sometimes these are unforeseeable as complex systems adapt and interact in unexpected ways. But sometimes they are foreseeable, not least because financial reforms are often rushed after a crisis - as Yale Professor Roberta Romano argued in a 2021 Wallenberg lecture.
/jlne.ws/48zFX2D
South Korea Alleges Naked Short Selling by Two More Global Banks
Youkyung Lee - Bloomberg
South Korea's financial regulator said it found $41 million worth of illegal short selling on domestic stocks by two global investment banks, ratcheting up its crackdown on the trading strategy that has been unpopular among retail investors. The Financial Supervisory Service will "promptly" launch the process of imposing penalties, according to its statement Sunday that didn't identify the banks. The banks breached rules for several months in 2022, and in 2023, by conducting naked short selling, the practice of selling shares without borrowing them first, the FSS said.
/jlne.ws/3TY9bDK
'Rampant' Naked Shorts Found in Just 0.001% of Korea Trades
Youkyung Lee - Bloomberg
South Korea's financial authorities have described illegal naked short selling as "rampant," a claim they used to justify a surprise ban on all forms of short selling in the $1.8 trillion equity market in November. But after scouring more than two years of transaction records at global investment banks for evidence of wrongdoing, the Financial Supervisory Service has turned up just 110 billion won ($84 million) worth of alleged naked short sales - an act of selling shares without borrowing them first.
/jlne.ws/47wCQXH
Tether crypto token increasingly favoured by money launderers, UN warns; Digital currency at the heart of scams including fake romance frauds known as 'pig butchering', report says
Scott Chipolina - Financial Times
Tether, one of the world's largest cryptocurrency platforms, has emerged as one of the leading payment methods for money launderers and fraudsters operating in south-east Asia, the UN has warned. According to a report published on Monday by the UN's office on drugs and crime, Tether's crypto token, also known as tether, is at the heart of an exploding industry of scams, including those that engineer false romantic connections to gain a victim's trust before luring them to transfer large sums - a strategy commonly referred to as "pig butchering".
/jlne.ws/3O1bGkM
2023: Clearing & Trading
FIA, Inc. via LinkedIn
As in years past, FIA's core advocacy work continues to center on the foundational issues of global derivatives markets - capital, margin, CCP risk, and recovery and resolution issues. And in truth, much of the previously mentioned work regarding exchange volatility controls or EMIR 3.0 advocacy is fundamentally about clearing and trading as much as operations or cross-border concerns.
/jlne.ws/3U1QS0v
Davos 2024: Looking Ahead to a Year Unlike Any Other
Lynn Martin - NYSE via LinkedIn
Seems only yesterday I was bidding farewell to Davos for another year. The theme of the 2023 World Economic Forum was "Cooperation in a Fragmented World." I guess the jury's still out on whether that's been achieved because the 2024 WEF theme is "Rebuilding Trust."
/jlne.ws/3S2zBBN
Genesis Global Trading Surrenders BitLicense as Part of New York Settlement; Genesis Global Trading is owned by Digital Currency Group; Firm agreed to pay a $8 million penalty, exit New York
Muyao Shen - Bloomberg
Genesis Global Trading agreed to pay a $8 million penalty to New York for compliance failures that violated the state's cryptocurrency and cybersecurity regulations. As part of the settlement, the crypto broker lost its ability to operate in New York under the state's Department of Financial Services' BitLicense program. Genesis Global Trading, an affiliate of Barry Silbert's Digital Currency Group, shuttered operations in September.
/jlne.ws/47CqFJd
JPMorgan Sees Significant Capital From Existing Crypto Products Pouring Into New Spot Bitcoin ETFs
Will Canny - CoinDesk
It's unclear how much fresh capital the new spot bitcoin exchange-traded funds (ETF) will attract, but significant funds from other crypto products are expected to pour in, J.P. Morgan said in a Thursday research report. The market reaction to the U.S. Securities and Exchange Commission's (SEC) reluctant approval of spot bitcoin [BTC] ETFs has been relatively muted, with the focus now shifting to how much capital these new ETFs will pull in, the report said
/jlne.ws/3O0cZR6
Wall Street's Biggest Banks Are Set to Stampede US Bond Market
Allison Nicole Smith - Bloomberg
Wall Street's largest banks are poised to barrel into the US corporate bond market as earning season kicks off, spurred to sell new debt by looming maturities and tougher regulatory requirements. Major US banks are expected to sell between $30 billion and $34 billion of new bonds in January once they report fourth-quarter results, according to JPMorgan Chase & Co. credit strategists. That compares to a historical average of $26 billion for the month, according to an analysis of sales from 2014 to 2023.
/jlne.ws/3O4rIKK
SBF Faces Prison, but 'Effective Altruism' Lives On; Proponents of the movement funded the Biden administration's executive order hindering AI development.
Andy Kessler - The Wall Street Journal
While you were distracted preparing for the frolic and fun of New Year's weekend, the Justice Department on Dec. 29 mysteriously announced it would no longer pursue campaign-finance charges against FTX founder Sam Bankman-Fried. Too bad. I was looking forward to the March trial and seeing the politicians who accepted the convicted fraudster's donations squirm like worms.
/jlne.ws/3RQJwdy
U.S. Attorney in Manhattan Launches Program to Encourage More Self-Disclosure; The initiative, announced by the U.S. attorney for the Southern District of New York, comes as regulators increasingly rely on whistleblowers in their enforcement efforts
Mengqi Sun - The Wall Street Journal
The U.S. Attorney's Office in Manhattan has launched a pilot program that seeks to offer an incentive to individuals to report to and cooperate with authorities in the prosecution of criminal conduct. The program, announced Wednesday by the U.S. Attorney's Office for the Southern District of New York, known for shepherding high-profile white-collar criminal cases, aims to help prosecutors bring more misconduct to light.
/jlne.ws/41VD5dP
What's in Those Huge Suitcases? $125 Million in Cash; A network of smugglers flew business class to gain extra luggage allowances, moving more than $1 million at a time from London to Dubai
Margot Patrick - The Wall Street Journal.
They looked like ordinary tourists with very big bags. But like a network of ants, they carried off tens of millions of dollars in cash from London to Dubai. British crime fighters cracked a money-laundering network that they say moved more than £100 million, equivalent to $125 million. A London court found two men guilty of illegal smuggling on Thursday, taking convictions in the network of cash couriers to 16, according to the National Crime Agency.
/jlne.ws/3O0Hiac
Banks Could Lose Grip on Government Bond Sales, UK's Stheeman Says; UK DMO head says new entrants may take on market making; Banks won't lose central primary dealer role, Stheeman says
Alice Gledhill and Anchalee Worrachate - Bloomberg
Banks' long-standing sway over a pivotal role in the selling of UK government bonds is under threat from the prospect of other financial firms entering the space, Britain's debt office head said. Robert Stheeman, the outgoing chief executive of the UK's Debt Management Office, said that while it's hard to envisage that banks would entirely lose their central role as so-called primary dealers - industry parlance for the institutions that buy debt directly from the government - they could well see it "diminish."
/jlne.ws/3SjNbSH
Al Gore Warns Countries Trying to Walk Back COP28 Fossil Fuel Pledge; The former US vice president said the agreement has "many loopholes and so many tricky phrases."
Laura Millan and Francine Lacqua - Bloomberg
Some countries are trying to wiggle out of the landmark agreement reached at the COP28 climate summit to transition away from fossil fuels, according to former US Vice President Al Gore. At the United Nations conference in Dubai, 197 nations agreed to accelerate the removal of fossil fuels from their energy systems this decade and eliminate them by mid-century. But some are now claiming that part of the pledge is optional, Gore, who is chairman of Generation Investment Management, said in a Bloomberg TV interview on the sidelines of the World Economic Forum in Davos, Switzerland.
/jlne.ws/4aVAW60
US, China Start New Climate Era After Veteran Envoys Step Down; John Kerry and Xie Zhenhua have left their successors plenty to work with, but their challenges are already starting to mount.
Jennifer A Dlouhy and Alfred Cang - Bloomberg
The world's two biggest greenhouse gas emitters are charting a new course for cooperation after the departures of John Kerry and Xie Zhenhua - two titans of climate diplomacy who paved the way for landmark agreements. Representing the US and China, the two men spent years on opposite sides of the negotiating table hammering out global deals to cut planet-warming emissions. Their close personal relationship has endured even as ties between the two superpowers deteriorated over issues from trade to Taiwan, which is set to become a renewed source of tension after a weekend election that returned the US-friendly ruling party to power.
/jlne.ws/4baN1ob
The world could get its first trillionaire within 10 years, anti-poverty group Oxfam says
Pan Pylas and Masha Macpherson - Associated Press
The world could have its first trillionaire within a decade, anti-poverty organization Oxfam International said Monday in its annual assessment of global inequalities timed to the gathering of political and business elites at the Swiss ski resort of Davos. Oxfam, which for years has been trying to highlight the growing disparities between the super-rich and the bulk of the global population during the World Economic Forum's annual meeting, reckons the gap has been "supercharged" since the coronavirus pandemic.
/jlne.ws/4aUqGee
*****Here is the story from Reuters, NationalPublic Radio, Al Jazeera, TIME Magazine, and The Conversation. View the source here.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | US Diplomats Forced Underground in Kyiv by Russia's 'Large Scale' Assault
Brendan Cole - Newsweek
The U.S. ambassador to Ukraine has described how she had to go to a bunker following Russia's latest bombardment of Ukraine overnight in a post that prompted social media users to call for more American air-defense support. Bridget Brink has been Washington's envoy in Kyiv since May 2022. She posted on X, formerly Twitter, how, along with other residents in the Ukrainian capital and the rest of the country, "we headed to the bunkers early this morning as Russia launched another large-scale attack against Ukraine with hypersonic missiles."
/jlne.ws/48VhRzc
Huge fire destroys 'Russia's Amazon' warehouse in St Petersburg; Up to 1,600 people were working in the building when it caught fire early on Saturday morning, reports say
James Kilner - The Telegraph
A huge fire has destroyed a large warehouse outside St Petersburg used by Wildberries, the online retailer known as "Russia's Amazon". Up to 1,600 people were working in the building when it caught alight early on Saturday morning, reports said.There were no casualties, but the Tass news agency reported that many workers had to run for their lives because fire alarms had reportedly been turned off.
/jlne.ws/3U2JAJQ
Russia designates popular writer a foreign agent over Ukraine stance; Books by bestselling author Grigori Chkhartishvili, who writes under pen name Boris Akunin, removed from shelves
Reuters - via The Guardian
Russia's justice ministry late on Friday designated one of the country's most popular fiction writers a foreign agent because of his opposition to Moscow's war in Ukraine. The historical detective stories of Boris Akunin, the pen name of Georgian-born Grigori Chkhartishvili, used to be bestsellers in Russia before the authorities turned on him for what they said were his unacceptable anti-Russian views.
/jlne.ws/3tWwhA3
Zelenskiy to Meet Dimon in Davos as Ukraine Seeks Aid Rebuilding; JPMorgan has been advising Ukraine on financing reconstruction; War assistance stalled as allies grow weary of the conflict
Alessandro Speciale and Sridhar Natarajand - Bloomberg
Volodymyr Zelenskiy plans to meet with JPMorgan Chase & Co.'s Jamie Dimon this week at the World Economic Forum as the Ukrainian president seeks to replenish the country's coffers for its fight against Russia, according to people with knowledge of the matter.
/jlne.ws/47CA4QX
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | 'Catastrophic': Residents, aid organizations describe conditions in northern Gaza; "We are trying to escape death by any means possible."
Zoe Magee and Ruwaida Amer - ABC News
LONDON and GAZA -- While the Israeli army has gradually reduced the number of troops it has in northern Gaza, many residents and relief organizations said that part of the region had been largely isolated from humanitarian aid and is in dire need of help. "People are absolutely desperate," United Nations Relief and Works Agency Director of Communications Juliette Touma told ABC News. "Very, very little has been allowed to reach the north."
/jlne.ws/3vwUQUx
The catastrophe in Gaza after 100 days of Israel-Hamas war, by the numbers
Becky Sullivan - NPR
The numbers that capture the state of Gaza after 100 days of war are staggering: Nearly 2 million displaced, thousands of homes destroyed and nearly 24,000 dead - 10,000 of them children. Since the outbreak of war on Oct. 7, when the militant group Hamas broke into southern Israel and killed 1,200 people and kidnapped some 250 more, the toll of Israel's response on Gaza, which is governed by Hamas, has been catastrophic for the territory.
/jlne.ws/3S20pCb
A war with no walls: Inside the devastating impact of Israel-Hamas war around the globe
Kim Hjelmgaard - USA TODAY
A harrowing 100 days. That's how long, as of Jan. 14, Israel and Hamas have been at war in the aftermath of the worst attack in Israel's history. Its impact has been felt far, wide and deep âˆ' and it's not over. It's a conflict that has upended life for Israelis and Palestinians; caused death, suffering and destruction on a massive scale; further polarized long divided views; reshaped the dynamics of the Middle East; and stirred international political and emotional turmoil. It has even threatened to impact the 2024 U.S. election.
/jlne.ws/47QmV73
Israel Plans Risky Mission to Seize Last Gaza Border It Doesn't Control; A military operation along Gaza's southern border would be tricky, with Egypt on one side and a million displaced Palestinians concentrated on the other
Jared Malsin and Summer Sai - The Wall Street Journal
Since it pulled out of the Gaza Strip nearly two decades ago, Israel has controlled all of the Palestinian enclave's borders except one. Now it is pushing to retake control of the southern frontier with Egypt. Israeli leaders, including Prime Minister Benjamin Netanyahu, say Israel must have a grip on the border area, which the Israeli military calls the Philadelphi Corridor, to block Hamas from smuggling weapons into the strip. It is part of Israel's strategy to defeat the Palestinian militant group and to prevent a repeat of its Oct. 7 attack on Israel that officials there say killed more than 1,200 people, mainly civilians.
/jlne.ws/3Sj2NFS
Seeking cash, Hamas turns to allies experienced in 'financial jihad'; Gaza crisis spurs massive online giving, some of it led by networks accused of aiding al-Qaeda and other terrorist groups
Joby Warrick and Souad Mekhennet - The Washington Post
Three days after the Oct. 7 terrorist attack, one of Hamas's top political leaders put out a call for a new front in the group's conflict with Israel - a fight to be waged not with bullets, but with dollars. "This is financial jihad," Khaled Mashal, the group's former political chief, declared in a speech disseminated over social media. He urged supporters worldwide to give "aid, money and all that you have," adding, "don't let your brothers down."
/jlne.ws/3vALs2p
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Tokyo Stock Exchange regains top spot for market capitalization in Asia
Nikkei via JPX
The total market capitalization of shares listed on the Tokyo Stock Exchange passed that of Shanghai's bourse on Thursday in dollar terms, regaining the top position in Asia. Overseas investors are back in force in Japan's stock market, making up for lost time with big purchases of blue chips. The Nikkei Stock Average rose 1.8% on Thursday to close at 35,049, gaining for the fourth session in a row and reaching its highest point since February 1990.
/jlne.ws/3RQIUog
UK Police Arrest Six Over Plot Against London Stock Exchange; Activists from pro-Palestine group allegedly involved: Met; UK forces working to deal with any disruption in 'coming days'
Shiyin Chen - Bloomberg
UK police said they arrested six people over a plot to target the London Stock Exchange. Activists from the Palestine Action group were allegedly planning to cause damage to the LSE and to prevent the building from opening for trading Monday morning, the Met said in a statement. They arrested a 31-year-old man in Liverpool early Sunday, with another five people believed to be part of the plot nabbed later that day.
/jlne.ws/3Hkdceg
Cboe Digital Launches Margined Bitcoin and Ether Futures, Announces Successful First Trade
Cboe
Cboe Digital announced it successfully launched margined Bitcoin and Ether futures and completed its first margined Bitcoin futures trade. With support from Blockfills, DV Trading LLC, Jump Trading Group, Marex, Toa Capital Partners and Wedbush in executing these trades, Cboe Digital becomes the first U.S. regulated crypto native exchange and clearinghouse to offer both spot and leveraged derivatives trading on a single platform.
/jlne.ws/3vwAYBd
DTCC Comments on SEC Ruling around Expanded US Treasury Clearing
DTCC
DTCC issued the following statement: The SEC recently issued rule amendments around its 2022 expanded U.S. treasury clearing proposal, bringing added regulatory clarity around the scope of the clearing requirements and implementation timelines. The final rules require a significantly larger portion of the U.S. Treasury cash and repo markets - specifically certain eligible secondary market transactions - to be centrally cleared by December 31, 2025 for cash transactions and June 30, 2026 for repo transactions. As a covered clearing agency, FICC will take the necessary steps as required under the amendments to prepare for this significant initiative.
/jlne.ws/3teviLj
Tokyo Stock Exchange, Inc. (TSE) Has Published a List of Companies That Have Disclosed Information Regarding "Action to Implement Management That is Conscious of Cost of Capital and Stock Price"
Japan Exchange Group
On March 2023, Tokyo Stock Exchange, Inc. (TSE) requested that all listed companies on the Prime and Standard Markets take "action to implement management that is conscious of cost of capital and stock price." In consideration of the high interest shown by domestic and foreign shareholders and investors in companies' response to the request, TSE has begun publishing a list of companies that have disclosed information in accordance with the request to inform investors of who is taking action, thereby encouraging companies to make a proactive effort.
/jlne.ws/47ydgSd
NSE launches new Investor Portal
National Stock Exchange of India
National Stock Exchange (NSE) in collaboration with Cogencis Information Services Ltd has launched Beta version of Investor Portal https://iinvest.cogencis.com to help investors make informed decisions. The portal aims to provide an easy-to-use and intuitive interface to navigate seamlessly for seeking information about listed companies. The system will aggregate information from publicly available relevant and reliable sources. The portal will also provide investors with a tool to conduct due diligence, track the market performance and screen for information. The Beta Phase of the portal has been launched today.
/jlne.ws/3Hg8PAZ
Product Delisting Summary: Delisting of the Coal (API 4) FOB Richards Bay (ARGUS-McCloskey) Futures Contract - Effective January 12, 2024
CME Group
Delisting of the Coal (API 4) FOB Richards Bay (ARGUS-McCloskey) Futures Contract.
/jlne.ws/3tTGxJp
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Atos CEO Quits After Three-Month Stint Over Strategy Dispute
Benoit Berthelot - Bloomberg
Atos SE appointed Paul Saleh to replace Yves Bernaert as chief executive officer, following a disagreement between the board and the outgoing leader on a turnaround strategy for the embattled technology company. Bernaert joined Atos in October from Accenture Plc to oversee the group's turnaround, including refinancing, but said he decided to leave "due to a difference of opinion on the governance" to adjust and execute on his plans, according to company statement Monday.
/jlne.ws/3RXzCXy
Liquidnet posts record electronic new issues trading numbers in first week of 2024; As Europe's primary market activity surged, Italy, Spain and Belgium received unprecedented over-subscription levels, says Liquidnet.
Claudia Preece - The Trade
Last week Liquidnet posted record numbers for electronic new issue trading across volume, average trade size and participants, as institutional adoption demonstrably surges. David Everson, head of trading, fixed income EMEA at Liquidnet, explained that these results show a clear desire from investors to lock-in higher yields: "As the first full week of the year comes to a close and Europe's primary market reports record breaking issuance, the Liquidnet orderbook has seen a surge of activity, smashing through all previous records.
/jlne.ws/3vBixLw
The World Economic Forum Weighs In On AI
Eli Amdur - Forbes
As dusk settles on Davos, Switzerland this wintry Sunday night, the eve of the annual World Economic Forum, there is a quiet, albeit reserved anticipation that something notable will be done - or at least said - about how we, around the globe, will deal with artificial intelligence.
/jlne.ws/3O4eMEH
IMF managing director on AI's impact: New social safety nets may be needed
Brian Sozzi - Yahoo Finance
The AI revolution may exert pressure on governments to enact new social safety nets to protect people who lose their jobs but are unable to upskill themselves, warns the head of the International Monetary Fund (IMF). "If we don't have thoughtful distribution of benefits [of AI] and inequality grows dramatically, that can break the social fabric in a way that is going to be very unhealthy for the world," IMF managing director Kristalina Georgieva tells Yahoo Finance Live. "Social safety nets in a world of artificial intelligence are paramount."
/jlne.ws/48Ab266
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| Cybersecurity | | Top stories for cybersecurity | The intersection of cybersecurity and artificial intelligence; AI has proven to be a valuable asset in the cybersecurity arsenal, but it is not a silver bullet.
Pam Nigro - Security Magazine
Cybersecurity and artificial intelligence (AI) are increasingly interconnected, with AI playing a significant role in enhancing cybersecurity measures. This integration is not new, but it has evolved over time as technology advances and cyber threats become more sophisticated. During the early days of cybersecurity, traditional methods such as firewalls and antivirus software were predominant. AI concepts were present, but practical applications were limited due to computing power and AI algorithm complexity.
/jlne.ws/41XhPUS
Senators Want Better SEC Cybersecurity After EFT-Related Hack
PYMNTS
Two U.S. senators want the Securities and Exchange Commission (SEC) to up its cybersecurity game after a recent hack. Last week, someone breached SEC's account on X to falsely announce the regulator's long-awaited approval of bitcoin exchange-traded funds (ETFs).
/jlne.ws/3tUp7wc
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| Cryptocurrencies | | Top stories for cryptocurrencies | Cboe Digital launches margined Bitcoin and Ether futures; Platform has also revealed plans to expand its product suite to include physically delivered products, subject to regulatory approval.
Wesley Bray - The Trade
Cboe Digital has launched margined Bitcoin and Ether futures alongside completing its first margined Bitcoin futures trade. Gaining support in executing the trades from Blockfills, DV Trading, Jump Trading Group, Marex, Toa Capital Partners and Wedbush, Cboe Digital has become the first US regulated crypto native exchange and clearing house to offer both spot and leveraged derivatives trading on a single platform.
/jlne.ws/48zdtpx
BlackRock CEO Larry Fink Backs Ether ETF; The asset management giant may now be looking to list an equivalent product for ether, the native token of the Ethereum blockchain, as part of its ongoing journey toward tokenization.
Jamie Crawley - CoinDesk
Larry Fink, the CEO of BlackRock (BLK), backed the notion of an ether (ETH) exchange-traded fund (ETF) a day after the much-anticipated bitcoin (BTC) ETF went live. "I see value in having an Ethereum ETF," Fink said in an interview with CNBC on Friday. "These are just stepping stones towards tokenization and I really do believe this is where we're going to be going."
/jlne.ws/3RYK5lu
"Spot Bitcoin ETFs could be worth US$100bn by next year" says ex-CFTC chief
Laurie McAughtry - Best Execution
Former chairman of the US Commodity Futures Trading Commission (CFTC) and original architect of the US crypto derivatives market, Chris Giancarlo, gives BEST EXECUTION the exclusive inside track on what a spot Bitcoin could mean for institutional asset managers, the reason it's taken so long to get approval - and why traders should get ready, because this could be the tipping point we've all been waiting for.
/jlne.ws/4aZJid0
Hong Kong needs to speed up approval of spot cryptocurrency exchange-traded funds after US launch, industry insiders say
Coco Feng - SCMP
Hong Kong should soon follow the United States' lead in authorising spot cryptocurrency exchange-traded funds (ETFs), bolstering the city's ambition to become a major virtual-asset hub in Asia, according to industry insiders.
/jlne.ws/41YcyfP
White Supremacists Lean On Crypto, Says Anti-Defamation League Report on Extremists
Jesse Hamilton - CoinDesk
White supremacist groups in the U.S. have sometimes been funded by crypto, according to a report from the Anti-Defamation League (ADL) that analyzed about $140,000 in transactions connected to 15 extremist groups or individuals last year. The ADL, a New York-base advocacy group that counters antisemitism and extremism, focused on the movement of bitcoin, and saw that supporters used a wide array of digital assets platforms to get money in the hands of hate groups, though there was no assertion that the money was directly used for illegal action, such as domestic terrorism. And the review suggested the bitcoin received from supporters was often shifted back into the traditional financial system via U.S. banks.
/jlne.ws/4aTA0Px
Bitcoin's ETF Hangover Saddles the Token With its Worst Streak in a Month; Traders review Bitcoin's outlook after hyped ETFs went live; BI's Balchunas says US spot ETFs garnered a net $819 million
Suvashree Ghosh - Bloomberg
/jlne.ws/3U1KyWW
CoinShares Acquires Valkyrie Funds After Valkyrie's Spot Bitcoin ETF Received Approval
Hope C - CoinMarketCap
/jlne.ws/3tSBPeP
Scaramucci Says Grayscale ETF Sales Helped Fuel Bitcoin Decline
Sonali Basak and David Pan - Bloomberg
/jlne.ws/4aTxs3Z
Bitcoin losses accelerate following ETF launch, ether posts a 15% gain on week
Tanaya Macheel - CNBC
/jlne.ws/3vB68as
Binance Loses India Traders to Local Firms It Recently Dominated; WazirX, Mudrex say about 70% of fresh inflows from Binance; Local trading has been ravaged by tax introduced in 2022
Sidhartha Shukla and Suvashree Ghosh - Bloomberg
/jlne.ws/3U01vRB
Tokenized Fund Adoption Grows but Brings Technology Risks: Moody's
Sandali Handagama - Moody's
/jlne.ws/3tLfIqT
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| Politics | | An overview of politics as it relates to the financial markets | Opinion: Trump's 'lost cause,' a kind of gangster cult, won't go away
David W. Blight - LA Times
On Jan. 6, 2021, former President Trump, the loser of the 2020 election, famously addressed a gathering of followers who then joined the mob that attacked the U.S. Capitol. While rambling and incoherent, Trump's speech nonetheless made a few things clear: Leftists had conspired to steal the election by fraud, and the mobs summoned to Washington on his behalf would need to "stand strong." The implication was that violence might be necessary, because "you'll never take back our country with weakness."
/jlne.ws/3tTTNh6
Bill Ackman Gives $1 Million to Long-Shot 2024 Democrat Dean Phillips; Hedge-fund billionaire, who has thrown himself into public advocacy, is worried Biden will lose to Trump
Andrew Duehren - The Wall Street Journal
Hedge-fund billionaire Bill Ackman said he was committing $1 million to support Rep. Dean Phillips's challenge to President Biden for the Democratic nomination in the presidential election. Even with the new funding, Phillips (D., Minn.) remains a long shot in the primary contest against Biden, who enjoys the backing of the Democratic Party's machinery, despite concerns about his age and polling showing him trailing likely Republican nominee Donald Trump.
/jlne.ws/47vhgTC
Vivek Ramaswamy Has a Strategy, but It Rests on Trump's Exit
Eliza Collins and John McCormick - The Wall Street Journal
For those who speculate about what Vivek Ramaswamy really wants out of his long-shot Republican presidential bid-perhaps a podcast or a television contract-the wealthy biotech entrepreneur has one answer. "I expect to be the president," he said in an interview as he crisscrossed this state ahead of the presidential caucuses Monday that will start the 2024 nomination balloting. But that expectation rests on hopes for a dramatic change in the race: Donald Trump's departure.
/jlne.ws/3S18NBK
The little-known Republican who hopes to 'surprise' his way to the White House
Tony Diver - The Telegraph
With four days before the first caucus of the 2024 Republican primary race, almost all candidates who have little hope of winning have dropped out. Chris Christie, the former New Jersey governor, bowed out on Wednesday after admitting there was "no path" to the White House. His withdrawal is expected to boost Nikki Haley who is still in contention. But the state of the polls appears not to worry Ryan Binkley, an investment banking CEO that almost no one has heard of, and who has been running a little-noticed Republican primary campaign since April.
/jlne.ws/4aZvOxC
How Elon Musk Is Fully Embracing Donald Trump's Billionaire Populism
Tim Higgins - The Wall Street Journal
It is hard not to see echoes of Donald Trump in Elon Musk these days. mBoth are world-famous entrepreneurs who have faced operatic dramas. Both are provocative on social issues, can be politically incorrect and, at times, even crude. And both excel at the art of the sell-themselves and their companies-and the ability to spin the world around their vision of it.
/jlne.ws/3O2RkIe
Britain's Post-Office Scandal Echoes Earlier Debacles; Doubling down on mistakes rather than admitting errors is an all-too-familiar story.
Martin Ivens - Bloomberg
/jlne.ws/421uwyk
China's military and government acquire Nvidia chips despite US ban
Eduardo Baptista - Reuters
/jlne.ws/3U0QIGS
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| Regulation & Enforcement | | Stories about regulation and the law. | SEC Assessing if 'Additional Remedial Measures' Needed After False Bitcoin ETF Post
Joe Woelfel - Barron's
The Securities and Exchange Commission said Friday it was still assessing whether "additional remedial measures" were warranted following a false post on its official account on X, the site formerly called Twitter, that claimed spot Bitcoin exchange-traded funds had been approved.
/jlne.ws/4aVr3VM
SEC weighing 'additional measures' after hacked post on bitcoin ETF approval
Bill Peters - MarketWatch
The Securities and Exchange Commission on Friday said that a social-media post on X falsely stating that it had approved spot bitcoin exchange-traded funds was created after an "unauthorized party" obtained control over the phone number connected with the agency's account on the platform. The markets regulator said its staff would "continue to assess whether additional remedial measures are warranted" in the wake of the breach, which occurred Tuesday and raised questions about cybersecurity at both the agency and the social-media platform, formerly known as Twitter.
/jlne.ws/3O4W3ci
Crypto Firm Genesis Global Trading to Pay $8 Million for Compliance Failings; New York state's financial watchdog said the brokerage firm-currently in the process of winding down-had gaps in its anti-money-laundering and cybersecurity programs
David Smagalla - The Wall Street Journal
Crypto brokerage firm Genesis Global Trading has agreed to pay $8 million in a settlement with New York state's financial regulator over alleged failings in its anti-money-laundering and cybersecurity programs. Genesis Global Trading, part of the now-bankrupt Genesis Global Holdco LLC, closed its U.S. spot crypto trading operations in September and is in the process of winding down. As part of its settlement with the New York State Department of Financial Services, the trading unit will surrender its BitLicense, which allowed it to operate a crypto business in New York, the regulator said in a statement Friday.
/jlne.ws/48pfwwp
CFTC to Hold a Commission Open Meeting on January 22
CFTC
Commodity Futures Trading Commission Chairman Rostin Behnam today announced the Commission will hold an open meeting on Monday, January 22 at 9:30 a.m. (EST) at the CFTC's Washington, D.C. headquarters. Members of the public can attend the meeting in person, listen by phone, or view a live stream at CFTC.gov.
/jlne.ws/3vzyJwW
India's market regulator proposes relaxed rules for illiquid AIF investments
Reuters
India's markets regulator, on Monday, proposed a relaxed framework for alternative investment funds (AIFs) and venture capital funds (VCFs) to deal with their unliquidated investments after the fund tenure expires. The Securities and Exchange Board of India (SEBI) suggested that instead of launching a new scheme to liquidate their investments, the tenure of the fund be extended, according to a discussion paper on the regulator's website.
/jlne.ws/4aWpJlC
Statement on Unauthorized Access to the SEC's @SECGov X.com Account
Chair Gary Gensler - SEC
Based on current information, staff understands that, shortly after 4:00 pm ET on Tuesday, January 9, 2024, an unauthorized party gained access to the @SECGov X.com account by obtaining control over the phone number associated with the account. The unauthorized party made one post at 4:11 pm ET purporting to announce the Commission's approval of spot bitcoin exchange-traded funds, as well as a second post approximately two minutes later that said "$BTC." The unauthorized party subsequently deleted the second post, but not the first. Using the @SECGov account, the unauthorized party also liked two posts by non-SEC accounts. While SEC staff is still assessing the scope of the incident, there is currently no evidence that the unauthorized party gained access to SEC systems, data, devices, or other social media accounts.
/jlne.ws/3U0uXH9
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | What Is a Reverse Stock Split? Reverse stock splits allow a company to immediately raise its share price, but there's a catch.
Mark R. Hake - Kiplinger
A reverse stock split is a method used by public companies to immediately boost their share price. However, there are issues with reverse splits that investors need to be mindful of. This article will delve into the mechanisms and issues surrounding a reverse stock split.
/jlne.ws/47wa09T
EBS Exits the FX Forwards Market
Colin Lambert - The FullFX
CME Group is in the process of closing down its FX swaps and forwards dealing functionality on EBS Direct, which is mainly an RFQ mechanism. The service will operate until 26 April 2024 to allows clients to transition to other providers. In a statement, CME Group says "Following an evaluation of the FX product portfolio, EBS will no longer offer RFQ workflow solutions for FX swaps and outright forwards to clients. The technology for this service is currently offered by a third-party platform, outside of the CME Group infrastructure. We will work with our clients to ensure a smooth transition to their chosen alternative venues.
/jlne.ws/48NE4zz
The IRS has collected more than $500 million in back taxes from delinquent millionaires
Andrew Keshner - MarketWatch
Millionaires who were behind on their taxes have already paid a half-billion dollars to get current with the IRS as the agency ratchets up high-level enforcement of tax compliance. On Friday, the IRS unveiled new numbers on the amount of back taxes paid by millionaire households ever since a 2022 upgrade brought tougher IRS enforcement on businesses and superwealthy tax delinquents and dodgers. IRS officials said they've pulled in a further $360 million from millionaire households with at least $250,000 in tax debts. That follows an October IRS announcement that $160 million in delinquent taxes had been raked back from wealthy households.
/jlne.ws/3TXFQJC
Why Microsoft's stock is a better investment than Apple's
Philip van Doorn - MarketWatch
Apple Inc. has long been the most valuable U.S. company, but Microsoft Corp. seems poised to overtake it. A look back at the companies' financial performance and a look ahead at expected revenue and profits make the case that Apple is no longer a growth stock and that Microsoft is the better long-term investment. At the close on Friday, Apple remained in the top spot with a market capitalization of $2.892 trillion, just ahead of Microsoft at $2.887 trillion. Apple's stack was down 3.4% for 2024, while Microsoft was up 3.3% in the new year.
/jlne.ws/48QNB8v
After a Rip-Roaring 2023, the Markets Are Taking a Breather
Jeff Sommer - The New York Times
It was a great year for the stock market and for the vast majority of investors in workplace retirement accounts. But let's not get carried away. Even after the 2023 gains, most stock investors are only barely above water since the start of 2022. It looks better when you include dividends. Then, the S&P 500 returned 3.42 percent over the course of the two calendar years. Even so, the paltry stock market increases haven't kept up with inflation.
/jlne.ws/41UOniB
More Cheese, Please: Farmers Are Squeezing Cows for Fattier Milk; Butterfat levels in cows' milk are above record highs set during World War II
Kirk Maltais - The Wall Street Journal
/jlne.ws/47xFCvT
De Beers Cuts Diamond Prices to Revive Sales
Thomas Biesheuvel - Bloomberg
/jlne.ws/3U0lwqU
Europe's Bond Tsunami Finds Willing Buyers; The fixed-income market is off to a record start for new issues.
Marcus Ashworth - Bloomberg
/jlne.ws/3TYbzKI
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Recent Climate Progress Shows a Way to Tackle World's Other Troubles
Akshat Rathi - Bloomberg
It might not seem like that hard a task to gather CEOs, ministers and billionaires at an Alpine ski resort every year - though any interesting conversations from Davos, Switzerland has a lot to do with the host's carefully chosen discussion topic. This year the World Economic Forum has decided to focus conversations on "rebuilding trust." And, despite the geopolitical chaos around the world, global leaders may point to one area where the process of rebuilding trust recently got a leg up: climate action.
/jlne.ws/3HhGL07
John Kerry to retire as top US climate negotiator; The former presidential nominee and secretary of state will reportedly help Biden's re-election campaign
Aime Williams - Financial Times
John Kerry, the top US climate diplomat and former presidential candidate, will retire in coming months, shortly ahead of a US election in November that could return Donald Trump to the White House. Kerry, who turned 80 last month, told staff on Saturday that he would remain in his post until the end of winter or early spring, according to a person familiar with his message.
/jlne.ws/48VeYy2
UK climate watchdog chief quits as Sunak green policy comes under fire
Attracta Mooney and Jim Pickard - Financial Times
The head of the UK's independent climate change body, who has been consistently critical of government efforts, has quit the role at a time when the nation's climate leadership under the Conservatives has been questioned. The departure of Chris Stark in April, after six years as chief executive of the Climate Change Committee, may leave the organisation without both a chief executive and permanent chair, after Lord Deben stepped down last year without a replacement.
/jlne.ws/3tKmbCp
Is ESG Already Over? CEOs are beginning to wonder what to do when environmental, social, and governance factors are at odds with performance.
Russ Greene - Reason
It may not seem unusual that a corporate CEO would want to focus on increasing shareholder value, but in October this was treated as big news. A Financial Times headline announced that "Unilever's new chief says corporate purpose can be 'unwelcome distraction.'" That new CEO, Hein Schumacher, went on to explain that he rejected the idea that "every brand should have a social or environmental purpose." He intended, he said, to build a "performance culture" instead. Why would it be newsworthy for a CEO to be focused on corporate performance? Not long ago, that was simply assumed. What changed?
/jlne.ws/3S0AryH
Petrochemical glut makes new plastic cheaper than recycled
Madeleine Speed and Lukanyo Mnyanda - Financial Times
A steep increase in petrochemical production in China and the US has led to a global oversupply of industrial chemicals used in plastics, sending the price of new material so low that its recycled alternative has become uneconomical to use. China was responsible for 60 per cent of petrochemical capacity increases in 2023, according to new figures from S&P Global. Production has also surged in the US on the back of the shale gas boom, leading to a level of oversupply of materials such as polyethylene not seen since the 1980s.
/jlne.ws/3tSCtcf
Natural Gas Export Projects Hang in the Balance as Biden Mulls Climate Test; Environmental groups ramp up efforts to oppose LNG terminals.
Ruth Liao - Bloomberg
/jlne.ws/3vBny6W
Finance Firms Falling Short on EU Board Gender Diversity Goals; 31% of listed companies are below target for women directors; EU's requirements come into force in 2026, could lead to fines
Conrad Quilty-Harper - Bloomberg
/jlne.ws/3vtH70M
What it looks like when woke capitalism takes a nap
Felix Salmon - Axios
/jlne.ws/3HhvAV0
Women's appointment to board level at EU financial firms' slows - EY
Reuters
/jlne.ws/48SXvXb
Bill Ackman Is Bringing Activist Playbook to America's Culture Wars
Annie Massa, Katherine Burton, and Amanda L Gordon - Bloomberg
/jlne.ws/3Hg4eyJ
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Got $60 Million? Goldman Sachs Wants to Lend You More; Wall Street giant is increasing loans to hedge funds, private equity and the ultrarich
AnnaMaria Andriotis - The Wall Street Journal
Goldman Sachs has given up on lending to Main Street consumers. Now it's doubling down on wealthy clients. The Wall Street giant is increasing lending to its private-wealth clients, individuals and families who on average have $60 million with the bank. In its trading department, loans to institutional clients, including hedge funds seeking to borrow for stock purchases, are on track to produce the highest revenue in at least three years.
/jlne.ws/3HiglLt
Poisoned chalice or easy gig? Morgan Stanley's Ted Pick has big shoes to fill; After his predecessor took the US bank from trough to peak, the new boss faces a daunting task in keeping the rally going
Jill Treanor - The Times
In his younger days, Ted Pick was known for using the lewd language of the trading floors where he started his career. At one point, he was even warned by his own bank's compliance department about his expletive-laden emails.
/jlne.ws/3O0FuxW
'Tough on morale': Citigroup reveals plans for 20,000 job cuts by 2026
David Hollerith - Yahoo Finance
Citigroup (C) CEO Jane Fraser is betting a dramatic restructuring can revive the lender's stock price and remove decades of bloat. On Friday she disclosed how deep those cuts will go. The New York bank said that it expects to eliminate 20,000 positions by 2026, which will save it $2.5 billion. It also intends to shed another 40,000 when it lists its Mexican consumer unit Banamex in an initial public offering.
/jlne.ws/3U00VDp
Bad Office Loans Mount at Bank of America, Wells Fargo
John Gittelsohn - Bloomberg
Major US lenders, including Bank of America Corp. and Wells Fargo & Co., wrote off more of their commercial-property loans as remote work and higher interest rates pummel the valuations of US offices. Net charge-offs at Bank of America and Wells Fargo rose during the fourth quarter partly due to office loans, according to earnings releases Friday. JPMorgan Chase & Co. set aside more reserves because of a deteriorating outlook on commercial-property valuations, the bank reported Friday.
/jlne.ws/3vBmKiq
Credit Suisse Portfolio Managers Resign to Set Up New Macro Fund
Libby Cherry - Bloomberg
Five Credit Suisse portfolio managers are leaving the bank to set up a new global macro fund at the alternatives platform of Lombard Odier Investment Managers, according to a person familiar with the matter. The new fund, which will be a blend of discretionary and systematic strategies, is planned to launch in the third quarter as part of Lombard's 1798 alternatives platform, the person said.
/jlne.ws/3S0EJGl
Fund manager Rajiv Jain takes $2.8bn bet on Middle Eastern stocks; GQG cuts position in China and says state crackdowns make foreign investors 'nervous'
Jennifer Hughes and Brooke Masters - Financial Times
/jlne.ws/48yEREe
BlackRock's transformational deal; Plus, star manager outflows, high levels of public debt, and the big hotel openings of 2024
Harriet Agnew - Financial Times
/jlne.ws/3vBR7Fs
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | The Unexpected Ways a Big Raise Affects Your Happiness; Getting more money often leads to immediate satisfaction. The good feelings might not last.
Joe Pinsker - The Wall Street Journal
Up and down the income ladder, people say more money would make them happier. When they actually get it, that isn't always the case. Some people who have gotten big raises recently say the money hasn't changed their day-to-day life or hasn't provided them as much joy as the things in their life that have nothing to do with money. Others were hoping for a bigger raise or felt conflicted about making more money.
/jlne.ws/3SewDvb
For Some Young People, a College Degree Is Not Worth the Debt; Because of high costs, some high school graduates have opted to delay, drop out of or forgo attending college altogether to avoid student debt that could hang over them for decades.
Emily Withnall - The New York Times
When Alex, my elder child, who identifies as nonbinary, was ready to apply for college in 2022, I felt ill-equipped to help them navigate the process. I was raised in a low-income household and had been unprepared to figure out how to make my own college experience affordable. I have been a single parent for 17 years. I have never earned enough income to have to make payments on my student loans, which total $81,000 for two degrees. I assumed I would carry the debt to my grave.
/jlne.ws/3tRA2Xy
The 'smile files' cheering up gloomy workers; Records of achievements and praise can boost staff morale
Emma Jacobs - Financial Times
About 20 years ago Emma Ewing, a trainer and public relations consultant, created an email folder called "nice things" to which she would add messages of thanks from clients or colleagues. Later, she included praise for her team too. On grey mornings, she sometimes opens it and scrolls through years' worth of compliments. "They show how my work and impact has changed over time and they remind me of all the great people I've worked with," she says. "That kind of reminder can really lift your day and get you back on track."
/jlne.ws/3O4U1su
Competent jerks have a shelf life in the office; People who progress with little regard for colleagues are likely to hit a ceiling
Anjli Raval - Financial Times
Everyone knows at least one. The office jerk who is such a high performer they get away with being horrible to their colleagues. They are gossiped about and resented by their peers but seem to be on an ever upward trajectory.
/jlne.ws/3SiSFNv
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| Wellness Exchange | | An Exchange of Health and Wellness Information | The Covid extremists can't bear that nobody is listening to them; The usual suspects are obsessing over the latest coronavirus data. The good news is that few seem to care
Camilla Tominey - The Telegraph
Covid is back, and so are the Covid extremists. We are once again witnessing demands for the return of face masks in hospitals on social media, even in newspaper leader columns, though there is little evidence they prevented the spread of the virus in the first place. The call comes after masks were made mandatory in hospitals and healthcare centres in Spain this week following a surge in respiratory illnesses. Spain's minority coalition government imposed the measures despite opposition from many of Spain's 17 autonomous regions, who argued the measures should be recommended but not obligatory.
/jlne.ws/48AAhoY
Watchdog Urges Fresh Covid-19 Reporting Rules For Nursing Homes
Jalen Brown - Bloomberg Law
HHS IG recommends new guidance from CDC on data definitions; Follows major reporting challenges at height of the pandemic. A federal watchdog called on the nation's health protection agency to provide additional public health reporting guidance to nursing homes in light of challenges encountered with Covid-19 data reporting. In a new report published Friday, the Department of Health and Human Services' Office of Inspector General recommended more explicit guidance on data definitions and increased technical assistance during times of staff turnover, among other measures.
/jlne.ws/3u0036T
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Billionaire urges Taiwan to 'prepare for the worst'
Michael Smith - AFR
Billionaire Robert Tsao warns that Taiwan's 23 million people must be prepared for an eventual war with China, even though the risk of an invasion has eased while Xi Jinping fights economic challenges at home. The 76-year-old founder of one of Taiwan's first semiconductor manufacturers has retired from big business to devote his life to what he believes is protecting the island nation's interests from its aggressive neighbour.
/jlne.ws/4aZKU6y
India ETF flows hit record in 2023, analysts see momentum persisting in election year
Bansari Mayur Kamdar - Reuters
Net inflows into exchange traded funds (ETFs) tracking Indian stocks hit a record high in 2023, with analysts optimistic that investors will continue to buy into the world's fastest-growing major economy even as keenly watched general elections loom. India-focused ETFs saw net inflows of $8.6 billion last year, according to data by Morningstar Direct, beating the $7.4 billion peak in net flows in 2021.
/jlne.ws/47zPsh0
Investors bet via options that India's rupee will rise
Nimesh Vora - Reuters
Investors are betting that India's rupee will break out of its narrow range and rally this year, and are expressing that view via currency options. Volumes in the dollar-rupee options market have surged in the first few trading days of 2024, and the direction of these trades shows market participants expect the rupee to rise, escaping the central bank-induced narrow range of last year.
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James Ogilvy, popular City stockbroker and brother-in-law of Princess Alexandra - obituary; When his firm was bought by the austere bank SG Warburg, 'he was horrified by our excessive preoccupation with work,' a new colleague noted
Telegraph Obituaries
James Ogilvy, who has died aged 89, was a popular City stockbroker and asset manager with royal connections; as a partner of Rowe & Pitman - known in the 1970s as "the Queen's stockbroker", but also a powerhouse of institutional equity sales - Ogilvy specialised in private-client dealings and was instrumental in creating a range of services for smaller investors under the subsidiary brand of Rowan Investment Management.
/jlne.ws/420uMgN
Plastic Pellet Spill Unleashes Cleanup Nightmare in Spain's Coast; A small army of volunteers is collecting one by one the millions of tiny plastic balls spread over the country's northern beaches.
Laura Millan - Bloomberg
Tiny white plastic pellets are washing ashore in Spain's northwestern coast by the millions, with hundreds of volunteers leading the clean up as authorities struggle to coordinate and companies decline any responsibility. A tanker ship lost six containers off the coast of Portugal on Dec. 8. One of them carried over 26 tons of PET pellets - tiny plastic balls measuring about 5 millimeters (about 0.2 inches) each used to manufacture plastic products.
/jlne.ws/48Rjxtp
Poland plans to set end date for coal power
Kate Abnett - Reuters
/jlne.ws/3HqCeYZ
Deforestation surges in Brazil's sensitive Cerrado region; Surge in destruction of plant life for farming sullies country's successes in protecting Amazon rainforest
Bryan Harris and Michael Pooler - Financial Times
/jlne.ws/3RXxkYy
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| Miscellaneous | | Stories that don't quite fit under the other sections | Bill Ackman escalates Business Insider plagiarism feud with legal threat; Hedge fund boss says lawsuit looms over Axel Springer title following allegations against his wife Neri Oxman
Daniel Thomas - Financial Times
Bill Ackman has threatened legal action against German media group Axel Springer and its US-based Business Insider financial news site in an escalation of a bitter fight over plagiarism claims against the hedge fund boss's wife. The FT reported on Sunday that an internal review by Axel Springer had found Business Insider's reporting of plagiarism allegations against academic Neri Oxman accurate and "well documented".
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