| January 09, 2025 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
In his final address as chairman of the Commodity Futures Trading Commission (CFTC) in a fireside chat at The Brookings Institution, Rostin Behnam highlighted the agency's achievements and challenges during his tenure. He emphasized the importance of balancing regulation, innovation, and collaboration to ensure resilient, transparent, and modernized markets. Under his leadership, the CFTC navigated significant transitions, including the LIBOR phase-out, the rise of digital assets, and integrating climate-related financial risk into market oversight, solidifying its position as a global regulatory leader.
Behnam underscored advancements in climate finance, including the establishment of the Climate Risk Unit and groundbreaking guidance for Voluntary Carbon Credit Derivative Contracts, promoting sustainable financial practices. He also addressed regulatory gaps in digital asset markets, advocating for federal oversight to protect investors and ensure financial stability amidst rapid technological evolution.
The CFTC's data-driven modernization included leveraging AI and analytics to improve market surveillance and risk management. Strategic hires and workforce upskilling supported the agency's ability to tackle emerging challenges in complex derivatives markets, while enforcement efforts secured billions in penalties and targeted evolving scams like "pig butchering." This financial grooming scheme, where fraudsters build trust before luring victims into fraudulent investments, highlights the need for vigilant oversight in rapidly evolving markets.
Behnam celebrated the CFTC's robust enforcement program, which tackled manipulative trading, cryptocurrency misconduct, and cross-border fraud, reinforcing market integrity and consumer trust. Initiatives like the Fraud Disruption Conference demonstrated the agency's commitment to addressing innovative scams and promoting interagency collaboration to prevent victimization.
As he prepares to step down, Behnam reflected on the evolving derivatives landscape and urged future leaders to balance innovation with caution. He expressed confidence in the CFTC's ability to adapt to emerging trends, address risks like pig butchering, and uphold its mission to support resilient, fair, and effective markets.
I was wrong. Chris Edmonds and John Shay will not be reuniting as colleagues after AFX was acquired by ICE, as was quickly apparent when Shay updated his LinkedIn profile to the title of "Former CEO" of AFX, not just CEO during the timeframe listed.
Here is a request you don't see every day. Reuters is reporting that Hershey Co. has sought CFTC approval to purchase 90,000 metric tons of ICE-certified cocoa stocks, far exceeding the regulatory position limit of 4,900 contracts. The request, if approved, would deplete ICE cocoa inventories in New York and London, potentially disrupting market liquidity. While Hershey stated it is "well covered" for 2025 cocoa needs, the CFTC and Hershey's legal representative, Joshua Sterling, declined to comment. Market brokers are skeptical the CFTC will grant such an exemption, citing concerns over market impact. Hershey shares fell 2.6% following the news. Bloomberg's story on the subject adds that global cocoa shortages, driven by poor weather and disease in key producers, have pushed prices to record highs, prompting Hershey's request to secure supply amid rising costs. This move echoes Hershey's previous market-shifting actions in 2020 and could significantly impact futures pricing and market liquidity if approved.
My question is if this is a sign of a potential global conflict. One of the staples given to soldiers in the time of war is chocolate bars, so if there is going to be a big war, we are going to need a lot of Hershey chocolate bars. If there is a request for a big position on rubber futures, I would look out.
MIAX reported record trading volumes for 2024, with total multi-listed options volume reaching 1.7 billion contracts, up 6.5% year-over-year (YoY). December also saw a record 165.6 million contracts traded, a 29.1% YoY increase. MIAX Emerald achieved a standout performance with a 52.2% YoY increase, hitting 465.6 million contracts for the year and a record 52.5 million contracts in December, up 72.0% YoY. Meanwhile, MIAX Options recorded 691.6 million contracts in 2024, up 9.1% YoY, and MIAX Sapphire, launched in August, traded 65.0 million contracts by year-end. In equities, MIAX Pearl Equities reached a record 49.9 billion shares in 2024, despite a 4.4% YoY market share decrease. Futures trading also hit new highs, with MIAX Futures reaching 3.2 million contracts for the year, up 10.2% YoY, and December volumes increasing 44.5% YoY to 197,513 contracts.
Bloomberg's Odd Lots podcast, hosted by Joe Weisenthal and Tracy Alloway, today titled "This Is How Electricity Rates Are Actually Set; Why do you pay the rate you do?" dives into how electricity rates are set in the U.S., balancing the need for affordable, reliable power with maintaining and upgrading infrastructure. In this episode, Lon Huber, senior VP at Duke Energy, explains why renewable energy hasn't significantly lowered costs, how fuel remains the key marginal cost of electricity, and the role of regulators in pricing decisions. The discussion also touches on the challenges utilities face, including aging grids and rising demand from data centers.
Here are the headlines from in front of FOW's paywall from some recent stories: Derivatives sentiment buoyed by US election, Asia recovery - Acuiti, ANALYSIS: Top exchanges face 'challenge' to sustain growth - Liquidnet, ANALYSIS: Delay to US Treasury clearing could bring risks and rewards - OpenGamma, Outgoing CFTC chair warns of 'gamification' of derivatives in final speech, Euronext reports strong 2024 for derivatives trading volume and Miami International Holdings latest to report 2024 volume record.
/jlne.ws/428TRbw
Gabriella Kusz has been promoted to the role of chief operating officer at Blockfills, she shared on LinkedIn. She was previously head of strategy for the firm.
The Digital Dollar Project is seeking a new executive director to lead its next phase of growth and influence, former CFTC Chairman J. Christopher Giancarlo shared on LinkedIn. The role calls for a mission-driven leader passionate about digital currency and payment networks to shape discussions on the digitization of money and the future of the U.S. dollar. Focused on preserving the dollar's global role amid emerging digital currencies, the Project tackles key questions: how to future-proof the dollar in a world of decentralized value networks, maintain its reserve currency status, and uphold its historic values of free enterprise, trade, and economic expression. The Project convenes thought leaders, fosters research, and explores U.S.-led standards to support public sector innovation.
John Feehery wrote a piece today on his blog, The Feehery Theory, about the event next Thursday at Pearl Street Warehouse for 'Rockin' for Tony' (Perez), the fundraiser where Walt Lukken's band is going to play. You can read the piece 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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Our most read stories from our previous edition of JLN Options were:
- A 2025 Outlook, What Options Pricing May be Indicating? from Cboe.
- Is Millennium morphing into a fund of funds? from the Financial Times.
- Tariffied? Markets feeling the most pinch from Trump tariff risks from Reuters. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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MEMX CEO Jonathan Kellner Showcases Data-Driven Technology Transforming Market Infrastructure
JohnLothianNews.com
Jonathan Kellner, CEO of MEMX, highlighted the company's data-centric approach and robust technology infrastructure in an interview with John Lothian News at FIA EXPO. MEMX leverages its architecture to harness data effectively, enhancing market surveillance and ensuring integrity through advanced tools like artificial intelligence, Kellner said.
Watch the video »
Sriram Krishnan - National Stock Exchange
Watch Video »
Joe Corona - Matrix Executions
Watch Video »
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$52 Billion Cost Would Rank LA Fires Among Worst US Disasters
Brian K. Sullivan and Yasufumi Saito - Bloomberg
A preliminary estimate of the financial impact of the Los Angeles blazes ranks the incident among the costliest ever natural disasters in the US, and likely the nation's most expensive ever wildfire. Blazes burning around Santa Monica and Malibu are consuming some of the most pricey real estate in the US, affecting areas where the median home value is more than $2 million, according to AccuWeather Inc. The disaster will likely cause between $52 billion to $57 billion in damage and economic loss, the company said.
/jlne.ws/4fKXjfC
***** We will likely see many aging Hollywood actors make comebacks to help pay for their homes that were destroyed. Here comes "When Harry Loved Sally (in old age)"~JJL
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The Musk threat to European democracy; Free speech push, now backed by Meta's Zuckerberg, risks spread of disinformation
The editorial board - Financial Times
European democracies are confronting a new online influence and disinformation threat - not from autocracies such as Russia, but emanating from the US. Elon Musk, the X owner and Donald Trump ally, is using his network to denigrate leaders he dislikes and promote far-right views and politicians. Meta's CEO Mark Zuckerberg is meanwhile shifting to a Musk-style approach that prioritises "free speech" over independent fact-checking on his Facebook and Instagram platforms. European leaders may fear that if they clash with these US billionaires in trying to safeguard their democracies, they could now face retribution from the White House itself.
/jlne.ws/4fOTHt1
****** Musk is a threat to free markets too as the threat to democracy and the rise of disinformation is a direct threat to markets. I believe free markets need free speech, but we have always had rules against disinformation in the markets. ~JJL
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Wednesday's Top Three
Our top story Wednesday was ICE Acquires the American Financial Exchange (AFX), from the Intercontinental Exchange. Second was Meta Ends Fact-Checking on Facebook, Instagram in Free-Speech Pitch, from The Wall Street Journal. Third was a tie between The New York Times' Peter Yarrow, of the Folk Group Peter, Paul and Mary, Dies at 86 and FOW's ANALYSIS: US Treasury clearing will be delayed under Trump - Greenwich.
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| Lead Stories | Wall Street Job Losses May Top 200,000 as AI Replaces Roles; Back, middle office roles at risk, Bloomberg Intelligence says; Banks' profits could surge due to improved productivity
William Shaw - Bloomberg
Global banks will cut as many as 200,000 jobs in the next three to five years as artificial intelligence encroaches on tasks currently carried out by human workers, according to Bloomberg Intelligence. Chief information and technology officers surveyed for BI indicated that on average they expect a net 3% of their workforce to be cut, according to a report published Thursday. Back office, middle office and operations are likely to be most at risk, according to Tomasz Noetzel, the BI senior analyst who wrote the report. Customer services could see changes as bots manage client functions, while know-your-customer duties would also be vulnerable. "Any jobs involving routine, repetitive tasks are at risk," he said. "But AI will not eliminate them fully, rather it will lead to workforce transformation."
/jlne.ws/3DNGpj7
How Analyst Job Cuts on Wall Street Are Reshaping Equity Research; Forces like regulation, passive investing and AI have all conspired to squeeze equity research in ways few could have imagined. Countless "sell-side" analysts have had to reinvent themselves as a result.
Sujata Rao, Denitsa Tsekova, and Isolde MacDonogh - Bloomberg
Jerry Diao had all the makings of a successful Wall Street analyst. A degree in statistics from UC Berkeley. An MBA from NYU. And a job in equity research at a big bank covering Silicon Valley tech stocks. But instead of a life of market-moving stock calls, six-figure bonuses and glad-handing execs on another great quarter of earnings, these days, Diao plies his trade on social media, dishing out advice on the finance industry. On YouTube, Diao goes by the nom de guerre "Richard Toad," and until recently, he masqueraded his irreverent takes behind an avatar of Shrek.
/jlne.ws/4h86p79
Hershey seeking CFTC approval to buy more ICE cocoa than allowed, says report
Reuters
Chocolate maker Hershey Co has requested permission from the Commodity Futures Trading Commission (CFTC) to buy an amount of cocoa from the stocks of ICE exchange that is much larger than the maximum allowed, a report said on Wednesday. According to a report from Bloomberg News, Hershey wants to receive as much as 90,000 metric tons of cocoa from ICE certified stocks using futures contracts, which would equal 9,000 contracts. The current position limit set by CFTC is 4,900 contracts.
/jlne.ws/3Wd7lzn
Hershey Seeks CFTC Approval to Buy Huge New York Cocoa Pile
Lydia Beyoud and Isis Almeida - Bloomberg
Hershey Co. is asking the US's top derivatives regulator for permission to buy a huge amount of cocoa through the New York exchange after global shortages sent prices to a record, according to people familiar with the matter. The maker of Reese's Peanut Butter Cups wants to take a position that will allow it to purchase more than 90,000 metric tons of cocoa on ICE Futures US, said the people, who asked not to be identified because the information is private. The request to the Commodity Futures Trading Commission equates to about 5,000 20-foot containers and is more than nine times the amount the exchange currently allows.
/jlne.ws/42cKSWZ
UBS Close to Large Settlement Over Credit Suisse Tax Case; Credit Suisse pleaded guilty in 2014 to helping Americans evade tax but still harbored hidden accounts
Margot Patrick, Emily Glazer and Dave Michaels - The Wall Street Journal
UBS is set to pay at least hundreds of millions of dollars to settle violations by Credit Suisse of an earlier agreement with the U.S. Justice Department over American clients who evaded tax, people familiar with the matter said. A settlement could come as soon as this week, one of the people said. Prosecutors have weighed how best to punish Credit Suisse since it came under new ownership via a rescue by UBS in 2023. It could be one of the last big actions for the Justice Department under the departing Biden administration, which promised to crack down on repeat corporate offenders.
/jlne.ws/3DNWDJa
Banks Are Racking Up Wins Even Before Trump Is Back in White House; Lobbying by banks helped torpedo a major proposal, and a top regulator announced this week that he would step down from a leadership role.
Jeanna Smialek - The New York Times
Banks are on a winning streak, one that's poised to intensify as President-elect Donald J. Trump takes office. Biden-appointed regulators at the Federal Reserve and other agencies presided over a relatively fruitless era of bank oversight. They tried to enact stricter rules for the nation's biggest banks, hoping to create a stronger safety net for the financial system even if it cut into bank profits.
/jlne.ws/3DNtgXr
Biden Administration Ignites Firestorm With Rules Governing A.I.'s Global Spread; The tech industry is fighting new regulations, expected soon, that aim to keep the cutting-edge technology in the United States and allied countries.
Ana Swanson and Tripp Mickle - The New York Times
The next big fight over offshoring is playing out in Washington, and this time it involves artificial intelligence. The Biden administration, in its final weeks in office, is rushing to issue new regulations to try to ensure that the United States and its close allies have control over how artificial intelligence develops in the years to come. The rules have touched off an intense fight between tech companies and the government, as well as among administration officials.
/jlne.ws/4fWzrFU
Climate catastrophes cost the world $320 billion last year.; 'Our planet's weather machine is shifting to a higher gear' says world's largest reinsurer
Jean-Philippe Lacour and AFP - Fortune
Last year is almost certain to go down as the hottest on record and the first to be 1.5 degrees Celsius (2.7 degrees Fahrenheit) hotter than before the industrial revolution. TOA55 VIA GETTY Climate change fuelled natural disasters that caused $320 billion in losses last year, German reinsurance giant Munich Re said Thursday, warning that "our planet's weather machine is shifting to a higher gear".
/jlne.ws/4gLXjgM
Here Are the Tools That China Uses to Manage the Yuan
Bloomberg News
Monitoring how the People's Bank of China handles its "managed float" system for the foreign-exchange market isn't easy. The central bank has various tools at its disposal - some are more transparent, like the daily reference rate, while others are murky, such as the potential for Chinese authorities to secretly urge banks not to bet against the yuan in proprietary trading. With the currency once again near the weak end of its allowed trading band - and close to a record low offshore as a potential trade war looms - risks are rising that authorities may step up efforts to stabilize it.
/jlne.ws/3DNAfj7
China's bond market is screaming deflation; Investors to Beijing: C-, must do better
Robin Wigglesworth - Financial Times
Xi Jinping might be able to muzzle Chinese economists, but the message of the bond market is harder to silence. And right now it's howling that China is sliding towards a Japanese-style deflationary spiral. The Chinese 10-year government bond yield has steadied a little in recent days, but it has still dropped ca 42 basis points since the beginning of December, and the long term chart is pretty stark:
/jlne.ws/3C14CC5
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | US warns North Korea becoming better prepared for war, fighting against Ukraine
Michelle Nichols - Reuters
The United States warned on Wednesday that North Korea is benefiting from its troops fighting alongside Russia against Ukraine, gaining experience that makes Pyongyang "more capable of waging war against its neighbors." Russia has forged closer diplomatic and military ties with North Korea since Moscow invaded Ukraine in February 2022.
/jlne.ws/4gS0Udm
Russia Doesn't Hold All the Cards in Ukraine, Pentagon's Austin Says
Natalia Drozdiak - Bloomberg
Even as Russia seems to have the upper hand in its invasion of Ukraine, the Kremlin faces a growing number of challenges that will complicate any effort to lock in its gains, the outgoing Pentagon chief said. "There's a thought that Russia has the ultimate hand here and it has every advantage," Defense Secretary Lloyd Austin said in an interview with Bloomberg News. "It has some advantages, but it doesn't completely dominate this equation here. And if it gets what it wants, it will cost them in the future."
/jlne.ws/4a9FsxG
Donald Trump pushes back Ukraine war deadline in sign of support for Kyiv; US president-elect speaks of six months to end conflict, after pledging to solve it in '24 hours' from taking office
Henry Foy, Max Seddon and Amy Kazmin - Financial Times
US president-elect Donald Trump has pushed back his campaign pledge to end the war in Ukraine in "24 hours" to several months, in a shift European partners have interpreted as a sign that his administration will not immediately abandon support for Kyiv. Two European officials told the Financial Times that discussions with Trump's incoming team in recent weeks revealed they had not yet decided on how to solve the conflict, and that support to Ukraine would continue after the US president's inauguration on January 20.
/jlne.ws/40oBtKm
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel Officials Meet Investors in London Before Bond Sale; Bond sale preparations underway after record sale last March; War's negative impact on Israeli borrowing costs has persisted
Jorgelina Do Rosario, Laura Gardner Cuesta, and Galit Altstein
A group of Israel government officials is meeting investors in London this week as the country aims to issue eurobonds in the first quarter, according to people familiar with the matter, who asked not to be named because the meetings are private. The deal size and borrowing currencies are still not decided, though Israeli officials have indicated that the country could sell a smaller figure than last year's issuance in global markets as total borrowing is expected to drop. A sale could come in the next weeks, pending market conditions, one of the officials said.
/jlne.ws/40n6KgN
Trump Vows to 'Unleash Hell' if Hamas Doesn't Release the Hostages. What Would That Look Like?
Amir Tibon - Haaretz
Benjamin Netanyahu is betting that U.S. President-elect Donald Trump's pressure campaign will bring Hamas to its knees. But the prime minister has been wrong many times before about the impact of different events on the group's negotiating positions
/jlne.ws/4j92BEA
Hamas claims it made concessions for Gaza ceasefire
The Jerusalem Post
A Hamas official claimed Wednesday the group is "not far" from reaching a deal, but maintained any agreement must include a permanent ceasefire and full Israeli withdrawal from Gaza.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | The SGX Global Market Sentiment Report Q4 2024
Acuiti
Acuiti and Singapore Exchange (SGX Group) today released the Q4 2024 installment of the SGX Global Market Sentiment Index, a barometer of sentiment from across the global derivatives market. The Sentiment Index is based on a quarterly poll of Acuiti's Expert Networks, comprising senior, derivatives-focused executives from hedge funds, asset managers, proprietary trading firms and the sell-side.
/jlne.ws/4h3Ofn4
BME Growth Companies Increase Their Turnover By 25.5% Compounded Annual Rate Over The Last Five Years
Mondovisione
The companies listed on BME Growth have increased their turnover, EBITDA and headcount over the last five years. With data at the close of the first half of 2024, all these variables confirm that taking the leap into the financial markets contributes to the growth of companies and the generation of employment, thanks to the visibility, reputation and access to recurring financing that they offer.
/jlne.ws/4gO9KZn
CME Group to Launch Hard Red Spring Wheat Futures and Options
CME Group
CME Group, the world's leading derivatives marketplace, today announced its plans to launch physically-delivered Hard Red Spring Wheat futures and options in early Q2 2025, pending regulatory approvals. "By adding Hard Red Spring Wheat futures and options, market participants will now be able to manage price risk across every major type of wheat on one exchange and all cleared in a single clearing house," said John Ricci, Managing Director and Global Head of Agricultural Products at CME Group.
/jlne.ws/4gJsZDy
New Product Summary: Initial Listing of the Natural Gas Monday, Tuesday, Wednesday, and Thursday Weekly Financial Option Contracts - Effective January 27, 2025
CME Group
Initial Listing of the Natural Gas Monday, Tuesday, Wednesday, and Thursday Weekly Financial Option Contracts.
/jlne.ws/4h8bQ64
Euronext announces volumes for December 2024
Euronext
Euronext, the leading pan-European market infrastructure, today announced trading volumes for December 2024.
/jlne.ws/401PVGI
KRX TMI Launch and Methodology Amendments for Related Indices
KRX
KRX announces the launch of KRX TMI and its size indices(KRX LargeMidCap, MidCap, SmallCap, and MicroCap TMI), effective January 13, 2025. The KRX TMI represents a remodeling of the KRX BMI, which serves as the universe for the KRX index series.
/jlne.ws/3E0BQC0
LuxSE Rules and Regulations update: Aligning with the Listing Act
LuxSE
The Luxembourg Stock Exchange (LuxSE) has published today the latest version of its Rules and Regulations (R&R) to align with the recent amendments to the Prospectus Regulation (PR) brought forward by the EU Listing Act.
/jlne.ws/3BQKYsB
Miami International Holdings Reports Trading Results for December and Full-Year 2024; MIAX Exchange Group Sets Multiple Volume and Market Share Records in Options and Equities Markets
MIAX
MIAX Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today reported December and full-year 2024 trading results for its U.S. exchange subsidiaries - MIAX, MIAX Pearl, MIAX Emerald and MIAX Sapphire (collectively, the MIAX Exchange Group), and MIAX Futures.
/jlne.ws/3Pt2Rk6
Nasdaq Reports December 2024 Volumes and 4Q24 Statistics
Nasdaq
Nasdaq (Nasdaq: NDAQ) today reported monthly volumes for December 2024, as well as quarterly volumes, estimated revenue capture, number of listings, and index statistics for the quarter ended December 31, 2024 on its Investor Relations website.
/jlne.ws/3W6Lidh
Nodal Exchange achieves record traded volume in all markets in 2024
Nodal Exchange
Nodal Exchange announced today that it achieved record trading volumes in 2024 in its power, natural gas, and environmental markets. Nodal achieved a record 2.98 billion MWh power futures volume traded in 2024, representing 9% growth over 2023. In December, Nodal Exchange traded volume was 182 million MWh, up 15% from December 2023. Nodal continues to be the market leader in North American monthly power futures having 56% of the open interest with 1.40 billion MWh at the end of 2024. The open interest represents over $137 billion of notional value (both sides).
/jlne.ws/409xP5Z
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Apple clarifies Siri privacy stance after $95 million class action settlement
Reuters
Apple clarified on Wednesday that it has never sold the data collected by its Siri voice assistant or used it to create marketing profiles, just days after settling a case in which it faced such accusations. The iPhone maker last week paid $95 million to settle a class action lawsuit in which plaintiffs alleged it routinely recorded their private conversations after they activated Siri unintentionally, and disclosed these conversations to third parties such as advertisers.
/jlne.ws/40b9nkn
Biggest Philippine Fintech Company Is Said to Pick Banks for IPO
Elffie Chew, Julia Fioretti and Joyce Koh - Bloomberg
GCash, the biggest fintech platform in the Philippines, has picked banks to work on an initial public offering that could take place this year, according to people familiar with the matter. GCash has selected JPMorgan Chase & Co., Morgan Stanley and UBS Group AG to work on the potential share sale, the people said, asking not to be identified because the matter is private. Other banks that may also help to arrange a deal include HSBC Holdings Plc and Jefferies Financial Group Inc., the people said.
/jlne.ws/426yHec
Germany's second-biggest fintech shuns IPO; Trade Republic says it is under no pressure to list early as its backers are taking a 'long-term perspective'
Florian Muller - Financial Times
Germany's second most valuable fintech, Trade Republic, has vowed to stay private after doubling its customers and tripling client assets to EUR100bn. The Berlin-based company, often characterised as Europe's answer to Robinhood because of its low-fee share brokerage business model, has been viewed as one of continental Europe's most promising fintech IPO candidates after receiving a $5.4bn valuation in 2022.
/jlne.ws/428Z82Y
xAI could have power problems in Memphis
Jessica Mathews - Fortune
The Memphis City Council meeting on Tuesday had already been going on for more than four hours by the time Doug McGowen, the CEO of the city's public utility, sat down to present. The councilmembers had just received a grim update on the city's declining annual murder rates, but were rather attentive as McGowen turned the conversation to xAI.
/jlne.ws/401Esak
The silent business of digital identity has remade Relx; Company once known as Reed Elsevier has moved from legal and scientific publishing into AI fraud detection
John Gapper - Financial Times
We are now familiar with that brief pause after pressing a keyboard enter key or clicking a mouse to make a financial transaction. Somewhere in the background, an algorithm reaches a snap risk judgment and the money is either transferred or there are more checks to follow. The ritual has become faster and smoother, providing there is nothing wrong. The automated process of a bank or insurance company verifying our identities, or checking that we are not lying about something on an application, intrudes less. A screen flickers and the workflow flows on.
/jlne.ws/4as2fVT
SK Chief, Nvidia's CEO Discuss Ways to Deepen AI Efforts
Yoolim Lee - Bloomberg
The chairman of SK Hynix Inc.'s parent and Nvidia Corp. co-founder Jensen Huang met Wednesday to discuss AI, suggesting the two companies are exploring ways to deepen one of the most important relationships in artificial intelligence hardware.
/jlne.ws/428UeTs
Why the World's Powers Are Locked in a Battle Over Computer Chips
Ian King and Debby Wu - Bloomberg
/jlne.ws/4gDW3MB
Brookfield seeks partner for Ascenty amid Brazil data center boom, sources say
Luciana Magalhaes and Letícia Fucuchima - Reuters
/jlne.ws/40tgUN7
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| Cybersecurity | | Top stories for cybersecurity | Iran FX Site Shuts as Cyber Attacks Jump Amid Central Bank Spat; Bonbast.com tells Bloomberg it decided to take down rial data; Website was key source of information for Iranians and traders
Patrick Sykes - Bloomberg
Administrators of Iran's most popular website for tracking the rial's open-market exchange rate said they took it offline due to cyber attacks and security concerns after criticism from the head of the country's central bank. Bonbast.com suffered "severe" distributed denial-of-service attacks following the comments by Central Bank Governor Mohammad Reza Farzin, a representative for the website told Bloomberg in an emailed statement late Wednesday. So-called DDoS attacks involve overloading a target with traffic in order to make it unavailable to users.
/jlne.ws/3WffMtY
White House Rushes to Finish Cyber Order After China Hacks; Executive order includes authentication, encryption updates; Draft comes after attackers breached US Treasury data
Katrina Manson and Jake Bleiberg - Bloomberg
The Biden administration is racing to put out an executive order meant to shore up US cybersecurity in its dwindling days in office, according to four people familiar with the matter. The executive order, which has cleared some internal hurdles and is close to being published, incorporates lessons from a series of major breaches during the Biden administration, including the most recent Treasury Department hack attributed to China, according people familiar with the matter who didn't want to be named to discuss information that hasn't yet been made public.
/jlne.ws/3PvN7Ne
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| Cryptocurrencies | | Top stories for cryptocurrencies | FTX Disputes the Sale of EU Assets to Ex-Employees Is Complete
Muyao Shen - Bloomberg
The question of who owns the European unit of Sam Bankman-Fried's former crypto enterprise appeared to be settled: Dubai-based Backpack Exchange said it had purchased FTX EU after months of wrangling. Backpack, a crypto trading platform founded by one-time employees of Bankman-Fried's FTX and Alameda Research businesses, said the $32.7 million acquisition would expand its derivatives offerings in the region.
/jlne.ws/4fMiLkh
Bitcoin Languishes as US ETFs See Second-Highest Daily Outflow
Sidhartha Shukla and Monique Mulima - Bloomberg
After a strong start to the new year that saw Bitcoin retake the $100,000 level, the original digital asset fell on Thursday to its lowest level this year as it struggles to maintain momentum. Bitcoin fell as much 2.8% to $91,785 on Thursday, down sharply from a high of $102,733 on two days earlier and about 15% below its all-time record of $108,315 set in mid-December.
/jlne.ws/4j5soNT
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| Politics | | An overview of politics as it relates to the financial markets | Trump has limited powers to fight an economic cold war; The new president is not the man to shore up the US 'economic security state'
Alan Beattie - Financial Times
When Donald Trump enters the Oval Office on January 20, he will take control of an apparatus of global economic governance to project American influence abroad more powerful than anything the US has had since the cold war. But despite Joe Biden's efforts to create a counterpart to China's multi-faceted geopolitical force which combines economic, technological, intelligence and military power, the US structure is flawed in coherence and purpose - and Trump himself will prove compromised on multiple fronts in developing and deploying it.
/jlne.ws/4j9gMJF
Trump will struggle to drive down oil prices; Energy production in the US will rise but more of the output will be gassy
Amrita Sen - Financial Times (opinion)
It is now a belief among many in energy markets that president-elect Donald Trump will succeed in driving oil prices down, possibly even further than during Joe Biden's term. Brent crude has been languishing in the $70s for the past few months. That is despite members of the Opec+ group agreeing at their last meeting to slow a planned increase in production, removing much of 2025's expected surplus. It is also despite Trump's likely hawkish stance on Iran, which will probably lead to a drop in the availability of oil from the country. Although under sanctions, Iranian crude and condensate exports reached as high as 1.8mn barrels a day under Biden compared with 0.4 mb/d under Trump, according to our data.
/jlne.ws/428QWzA
Why Donald Trump wants Greenland; The Arctic island has long been vital to US security and its importance is only increasing
Richard Milne, Nordic and Baltic Correspondent - Financial Times
US president-elect Donald Trump has refused to rule out military force to take Greenland. But America's military presence there has long dwarfed the handful of ships, dog sled patrols and single surveillance plane operated by the Arctic island's security guarantor, Denmark.
/jlne.ws/4a9vX1C
Carter Funeral Gathers Political Rivals After Bitter Election; Day of national mourning marked by Washington state funeral; Members of both parties have hailed Carter for life of service
Michelle Jamrisko - Bloomberg
Washington will pay tribute to Jimmy Carter on Thursday, bringing together political rivals in the wake of a rancorous and volatile election to honor a former president praised by both parties for his humility and decency. The day of national mourning for Carter - who died in December at the age of 100 - will be highlighted by a state funeral at Washington's National Cathedral less than two weeks before the White House changes hands from President Joe Biden to President-elect Donald Trump.
/jlne.ws/4a8RAPq
Mexico's president calls for parts of US to be renamed 'Mexican America'; Donald Trump's vow to rename Gulf of Mexico the 'Gulf of America' is latest dig to neighbouring countries
Christine Murray in Mexico City and Ilya Gridneff in Toronto - Financial Times
Claudia Sheinbaum on Wednesday hit back at US president-elect Donald Trump's proposal to rename the Gulf of Mexico, suggesting US territory that was previously part of Mexico should be called "Mexican America".
/jlne.ws/40pUOuL
Treasury forced to intervene in market turmoil
Tim Wallace - The Telegraph
The Treasury has been forced to intervene to stabilise financial markets amid growing concern over the impact of Rachel Reeves's Budget and a surge in borrowing costs. In the first such statement since the mini-Budget crisis of 2022, the Treasury attempted to dismiss as "pure speculation" suggestions that rising debt costs had wiped out all of Ms Reeves's headroom and put her in breach of her own fiscal rules.
/jlne.ws/4gNoAzd
Musk examines how to oust Starmer as UK prime minister before next election; Technology billionaire interested in building support for another political party, notably Reform UK
Anna Gross in London and Joe Miller in Washington - Financial Times
Elon Musk has privately discussed with allies how Sir Keir Starmer could be removed as UK prime minister before the next general election, according to people briefed on the matter. Musk, the world's richest man and key confidant of US president-elect Donald Trump, is probing how he and his rightwing allies can destabilise the UK Labour government beyond the aggressive posts he has issued on his social media platform X, the people said.
/jlne.ws/4jbOqys
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| Regulation & Enforcement | | Stories about regulation and the law. | Japanese crime leader pleads guilty in US to trafficking nuclear materials from Myanmar
Kanishka Singh - Reuters
The leader of a Japanese crime syndicate who was charged by U.S. authorities with trafficking nuclear materials from Myanmar pleaded guilty on Wednesday, the U.S. Justice Department said in a statement. Takeshi Ebisawa, 60, of Japan, pleaded guilty in Manhattan, New York, to conspiring with a network of associates to traffic nuclear materials, including uranium and weapons-grade plutonium, from Myanmar to other countries, the Justice Department said. Ebisawa also pleaded guilty to international narcotics trafficking and weapons charges, the department added.
/jlne.ws/408qF1G
Japanese Yakuza Leader Pleads Guilty to Nuclear Materials Trafficking, Narcotics, and Weapons Charges
Wednesday, January 8, 2025
Department of Justice
Takeshi Ebisawa, 60, of Japan, pleaded guilty in Manhattan, New York, today to conspiring with a network of associates to traffic nuclear materials, including uranium and weapons-grade plutonium, from Burma to other countries, as well as to international narcotics trafficking and weapons charges.
/jlne.ws/4aiivbJ
H&R Block to Pay $7 Million to Settle FTC Case Alleging Deceptive Advertising; The trade commission says H&R Block had marketed services as free when many tax filers weren't actually eligible
Connor Hart - The Wall Street Journal
The Federal Trade Commission on Wednesday said it finalized an order to H&R Block requiring the tax-preparation company to make changes to its practices ahead of the coming tax season and pay a $7 million fine. The order comes after the FTC in February 2024 filed a complaint against the Kansas City, Mo., company that alleged it used deceptive marketing and unfairly deleted consumers' tax data when they downgraded products.
/jlne.ws/3PyeDJW
Banks Are Racking Up Wins Even Before Trump Is Back in White House; Lobbying by banks helped torpedo a major proposal, and a top regulator announced this week that he would step down from a leadership role.
Jeanna Smialek - The New York Times
Banks are on a winning streak, one that's poised to intensify as President-elect Donald J. Trump takes office. Biden-appointed regulators at the Federal Reserve and other agencies presided over a relatively fruitless era of bank oversight. They tried to enact stricter rules for the nation's biggest banks, hoping to create a stronger safety net for the financial system even if it cut into bank profits. But the rules were considered so onerous - including by some top Fed officials - that they died of their own ambitions.
/jlne.ws/3DNtgXr
Fund managers to warn FCA over US activist's plans to shake up UK trusts; Saba Capital has taken stakes in seven trusts and called on investors to vote for changes to their boards
Emma Dunkley - Financial Times
Fund managers are warning the Financial Conduct Authority that plans by US activist Boaz Weinstein to take over seven UK investment trusts leave shareholders in the dark about how their money will be invested. Saba Capital, which is run by Weinstein, has taken stakes in the seven trusts and called on investors to vote for changes to their boards, claiming they have failed to hold the managers of the trusts to account for performance. Investment trusts hold £266bn in assets in the UK and are very popular with retail investors.
/jlne.ws/426z2xe
Keynote Address of Chairman Rostin Behnam
CFTC
Thank you for inviting me to speak with you this morning. Today will be my last official remarks as the CFTC's 15th Chairman. It is too early to fully process and articulate in a salient way what the last seven years have meant for me. I can say, without hesitation, that I approached every part of my job with the utmost focus and care. I have always prioritized, above all else, our mission critical oversight and enforcement duties aimed at protecting customers and supporting reliable and resilient markets. Within our largely static budget, I have insisted that we build our expertise and supported necessary investments in technology, infrastructure, and employee upskilling so that we can continue to proficiently fulfill our responsibilities consistent with what the markets have become accustomed to.
/jlne.ws/4h5yY57
SEC Obtains Final Judgment Against Former Officer and Director For Fraudulent Statements in SEC
On January 2, 2025, the U.S. District Court for the District of Connecticut entered a final judgment by consent against Michael Caridi, whom the SEC had charged in connection with the issuance of fraudulent press releases by Tree of Knowledge International Corp. ("TOKI"). According to the SEC's complaint, Caridi acting as Chairman of TOKI's board of directors, assisted TOKI, which had not previously been in the business of supplying Personal Protective Equipment ("PPE"), in issuing two press releases touting TOKI's successful pivot into being a PPE provider. The SEC's complaint alleges that the press releases did not inform the public that Caridi and TOKI had previously failed to deliver three million medical grade NIOSH certified N-95 masks to a Canadian hospital pursuant to a contract with that hospital. In addition, as alleged in the complaint, TOKI had an $11 million liability to the hospital, and Caridi had misappropriated over $1 million from the unperformed contract, which included amounts taken after he had already promised the hospital a refund that TOKI did not have the resources to pay.
/jlne.ws/4fQ1aIu
Response to Letter "Take more effective measures to curb rising credit card debt" - The Straits Times, 6 January 2025
MAS
We thank Mr Foo Sing Kheng for his suggestions on possible measures to curb the rise in credit card debt (Take more effective measures to curb rising credit card debt, Jan 6).
/jlne.ws/4fWLHWN
Written reply to Parliamentary Question on timelines for the Equities Market Review Group's recommendations
MAS
Question: To ask the Prime Minister and Minister for Finance (a) what is the projected timeline for the Equities Market Review Group to provide its phased recommendations to the Government; (b) what is the projected timeline for the Government to review these recommendations and subsequently the phased announcement of the recommendations; and (c) what is the expected implementation date for these recommendations.
/jlne.ws/40d3weu
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Pound Slides Further; U.S. Stock Market Closes for Carter Memorial; Volatility in U.K. asset prices evokes memories of 2022 market meltdown
Joe Wallace - The Wall Street Journal
Index futures edged down, with U.S. stock markets due to stay closed until Friday to mark former President Jimmy Carter's memorial. In global markets, U.K. assets extended a volatile stretch, with the pound falling further and bond yields briefly spiking from already elevated levels. Contracts for the S&P 500 shed 0.2%, while Nasdaq-100 futures fell slightly more. Yields on 10-year Treasury notes slipped, putting them on track to snap a four-day run of gains that took them to their highest level since April.
/jlne.ws/3BRoBDj
U.K. Bond Yields Hit Highs Not Seen Since 1998; Worry over the economy, public finances sends sterling to lowest level since 2023
Emese Bartha and Renae Dyer - The Wall Street Journal
Yields on U.K. government debt rose to their highest levels since 1998 while the British pound continued to sag against the dollar, amid investor worries about the increasing levels of government borrowing and a generally lackluster economy. The yield on the 30-year gilt, as U.K. government bonds are called, hit 5.455% Thursday.
/jlne.ws/4gLim37
Corporate borrowers kick off 2025 with record-setting $83bn bond bonanza; Issuers pounce on surging investor demand for debt before Donald Trump returns to the White House
Harriet Clarfelt and Will Schmitt in New York - Financial Times
Corporate borrowers kicked off 2025 with a record $83bn in dollar bond sales, capitalising on buoyant investor demand to raise debt ahead of any market volatility sparked by Donald Trump's return to power. Borrowing in the US dollar investment-grade and high-yield bond markets reached $83.4bn by January 8, the highest year-to-date figure since 1990, according to data from LSEG.
/jlne.ws/4ac9XTN
Sentiment Rises Across The Derivatives Market As Firms Target Increased Investment In 2025: Acuiti
Mondovisione
Sentiment across the global derivatives market rose in Q4 2024 as the industry looks to invest ahead of what is expected to be a busy 2025, according to the SGX Global Market Sentiment Index, a barometer of sentiment from across the global derivatives market. The Sentiment Index is produced by Acuiti and based on a quarterly poll of Acuiti's Expert Networks, comprising senior, derivatives-focused executives from hedge funds, asset managers, proprietary trading firms and the sell-side. Each quarter, Acuiti surveys Expert Network members on their outlook for the next three months to compile the index.
/jlne.ws/3CdJnNn
Could 2025 be the year to invest in private markets? Once the preserve of institutions, private assets are now promoted through semi-liquid funds
David Stevenson - Financial Times (opinion)
In the coming year, you'll hear a great deal about private markets and a rather esoteric term called "semi-liquid funds". For adventurous types, this could present an interesting opportunity - but it also comes freighted with dangers, not least that you may end up being invested in something that could go wrong - and you can't withdraw your investment in a hurry.
/jlne.ws/4gZ3EVQ
Bond market 'police' are back as investors patrol spending plans
Ian Smith and Sam Fleming in London and Harriet Clarfelt in New York - Financial Times
/jlne.ws/3PrXRMy
Shell warns of weaker fourth quarter LNG, oil trading
Ron Bousso and Arunima Kumar - Reuters
/jlne.ws/4fQ4wv4
How 2025 Will Test Commodity Traders
Javier Blas - Bloomberg Opinion (video)
/jlne.ws/3WbD7N0
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Biggest shipping nations back flat tax on emissions; World's two most important countries for registrations join efforts to impose flat levy on pollution
Oliver Telling in London - Financial Times
Countries representing most of the world's shipping fleet have backed a flat tax on every tonne of the industry's greenhouse gas emissions, boosting the chances that all shipowners will soon have to pay for polluting. Liberia and Panama, home to the world's two most important shipping registries, have thrown their weight behind the proposed levy on shipowners, joining 43 other jurisdictions, including EU countries, according to a written proposal to the UN's International Maritime Organization.
/jlne.ws/3Pr4TRZ
Finland to Ban Privatization of Water Supply on Security Grounds
Leo Laikola - Bloomberg
Finland proposed to ban municipalities from selling water supply facilities to private investors on grounds of security of supply. According to a revised proposal put forth by the government on Thursday, municipalities will need to retain full ownership of water treatment plants, the Ministry of Agriculture and Forestry said in a statement. The move follows criticism against an earlier proposal, which would have allowed a disposal of minority stakes in such units.
/jlne.ws/3BXCFet
Amundi, EDF Join Firms Asking EU Not to Water Down ESG Rules
Frances Schwartzkopff - Bloomberg
Some of France's largest companies, including Amundi SA and Electricite de France SA, have signed a letter to European policymakers urging them to ensure the bloc sticks with its current timetable for implementing ESG reporting rules. The companies are responding to a growing wave of opposition to environmental, social and governance requirements, most recently in the form of German efforts to delay the rollout of reporting rules.
/jlne.ws/4gM5868
Bezos' Earth Fund Starts Nonprofit Allowing Tax-Free Donations; The 501(c)(3) lists Bezos, Lauren Sanchez as unpaid directors
Sophie Alexander - Bloomberg
Jeff Bezos' Earth Fund, a $10 billion commitment to fight climate change, created a nonprofit arm that allows the billionaire to make donations tax-free. The Bezos Earth Fund Foundation was started in February 2023, according to a November tax filing. It was granted status as a 501(c)(3) nonprofit in January 2024, according to a letter from the Internal Revenue Service, allowing tax-free contributions.
/jlne.ws/3DXX2IU
Vitol, Uniper Paid £17 Million to Help Keep UK Lights On; Vitol, Uniper plants demanded higher prices to keep running; UK has to pay high costs for gas when wind doesn't blow
Will Mathis - Bloomberg
A pair of gas-fired power plants were paid millions of pounds on Wednesday to plug a shortfall when wind supply dropped at the same time as sub-zero temperatures increased demand. The grid operator, National Energy System Operator, warned the market late on Jan. 7 that there was an insufficient safety buffer during peak hours of consumption on Wednesday. The shortfall meant the network manager was willing to offer eye watering prices to power plants that could generate to help keep the lights on.
/jlne.ws/3WdJZcO
This Is How Electricity Rates Are Actually Set; Why do you pay the rate you do?
Joe Weisenthal and Tracy Alloway - Bloomberg
Utilities in the US have a couple big jobs to do. On the one hand, they need to deliver affordable and reliable power to their customers. On the other hand, they also need to maintain and upgrade huge amounts of fixed infrastructure. Balancing those two jobs is getting more complicated thanks to America's aging electricity grid and the shift towards renewables. So how are big utilities squaring those two objectives? How do they decide how much money they need to fund new capital investment? How do they decide which customer pays what rate? And what role do regulators play in all these discussions? In this episode of the podcast, we speak with Lon Huber, senior vice president of pricing and customer solutions at Duke Energy, one of the largest utilities in the US. We talk about why the ramp-up in renewable energy hasn't led to lower electricity prices for everyone, why fuel is ultimately the most marginal cost of electricity generation, and how utilities are handling booming demand from data centers.
/jlne.ws/3C1zYbI
The rise of nuclear powered batteries; Companies vie to create small plants for deployment to sites from data centres to oil platforms
Malcolm Moore and George Steer in London - Financial Times
/jlne.ws/4afzHyv
Constellation Energy in talks to buy Calpine in near-$30bn US power sector deal; Negotiations come amid demand surge linked to growth in artificial intelligence technologies
Jamie Smyth, James Fontanella-Khan and Amanda Chu in New York - Financial Times
/jlne.ws/42157qq
Norway Sold Record Natural Gas Volumes in 2024, Directorate Says
Kari Lundgren - Bloomberg
/jlne.ws/426MXmX
China to Keep Tapping Coal to Meet Its Energy Security Needs
Bloomberg News
/jlne.ws/4gJpZaj
Tesla Poised for $1 Billion Windfall From EU's Emissions Curbs
Craig Trudell - Bloomberg
/jlne.ws/3Prca46
Norway Sold Record Natural Gas Volumes in 2024, Directorate Says
Kari Lundgren - Bloomberg
/jlne.ws/40gxBKq
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Bank of America Forms Specialist Group Serving the Ultra-Wealthy; New advisory group will work with Merrill financial advisers; Banks target the super rich as assets and investments grow
Katherine Doherty - Bloomberg
Bank of America Corp. created a group of specialists that cater to the ultra-wealthy, looking to capitalize on the growing ranks of super rich clients needing complex financial products and advice. The new ultra-high-net-worth advisory group will be housed in the bank's Merrill wealth-management unit, according to company executives. As the main point of contact, the roughly 25 specialists will help Merrill financial advisers and their clients navigate financial needs including loans, estate planning and investment management.
/jlne.ws/3C43bmn
Jefferies Profit Triples in Sign Dealmaking Slump Is Ending; Advisory business notches another record off M&A rebound; Rate change is driving a more normal market, president says
Katherine Doherty - Bloomberg
Jefferies Financial Group Inc.'s profit soared on a rebound in mergers and acquisitions and a surge in equity-trading revenue, signs that the multiyear dealmaking slump is coming to an end. Net income for the fiscal fourth quarter, which ended Nov. 30, more than tripled off a 73% jump in investment-banking fees and a near-doubling of advisory revenue, the company said in a statement Wednesday.
/jlne.ws/4h9VauT
Morgan Stanley promotes 173 employees to managing directors, source says
Reuters
Wall Street giant Morgan Stanley promoted 173 of its employees to managing director roles this year, marking a 12% increase from 2024, a source close to the matter told Reuters on Wednesday. Bank of America also promoted more employees to managing director roles in December, as dealmakers at the biggest U.S. banks prepare for a resurgence in mergers and acquisitions as well as initial public offerings.
/jlne.ws/4a8MGC0
JPMorgan Files Two Lawsuits in Greece and UK Over Viva Wallet
Sotiris Nikas - Bloomberg
JPMorgan Chase & Co. filed two new lawsuits over its investment in Greek fintech Viva Wallet in a messy dispute with its join venture partner Werealize.com Ltd. In a Greek lawsuit the bank is claiming EUR916 million ($943 million) over allegations that Viva's chief executive officer, Haris Karonis, and three other executives deprived JPMorgan of the value of its 2022 investment, according to a person familiar with the matter.
/jlne.ws/426CND6
BlackRock private equity fund takes more than $600mn hit on investment; Alacrity's restructuring puts it under control of private credit lenders including Antares, Blue Owl, KKR and Goldman
Eric Platt and Brooke Masters in New York - Financial Times
A leading BlackRock private equity fund has lost more than $600mn on an investment in an insurance outsourcing company after the business struggled with its debt load. A group of private credit funds led by Antares Capital, Blue Owl Capital, KKR and Goldman Sachs Asset Management have agreed to take control of the business, Alacrity. BlackRock bought a controlling stake in the business in February 2023 through its $4.3bn Long Term Private Capital strategy from private equity firm Kohlberg & Co.
/jlne.ws/3DKzd7B
Vanguard wins US 2024 ETF flows crown; Investors poured $300mn into manager's exchange traded funds led by VOO, its S&P 500 vehicle that attracted $117bn
Joe Morris - Financial Times
Vanguard beat iShares in full-year US ETF flows for the fifth straight year in 2024, powered by its US equity market trackers. A net $308.2bn flowed into Vanguard's ETFs, including $117bn for the Vanguard S&P 500 ETF (VOO) alone, according to new data from Morningstar.
/jlne.ws/40ozdD1
Blackstone's Infrastructure Fund for Individuals Raises More Than $1 Billion; Asset manager continues to shift further from its buyout roots
Dawn Lim - Bloomberg
/jlne.ws/4fPEBDK
Blackstone's Ex-GP Stakes Head Siddiqui Debuts Secondaries Firm SQ Capital responding to liquidity needs in private equity; Firm estimates there's a backlog of 28,000 unsold companies
Gillian Tan - Bloomberg
/jlne.ws/4fTjOz8
Janus Henderson Takes CLO-Tracking Fund to Europe After US Win
Amedeo Goria - Bloomberg
/jlne.ws/4h9XXnU
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Welcome to 'career catfishing' - Gen Z's new defiance against endless rounds of interviews and hiring managers who ghost
Chloe Berger - Fortune
Ghosting strikes the hiring process, as Gen-Z applicants react to unresponsive hiring managers by no longer replying to messages and sometimes not even turning up on the first day of work. Entering an increasingly competitive job market, some Gen Zers are responding to unusual situations in atypical ways. Dealing with endless rounds of interviews, slow-to-respond employers, and an overall frustrating hiring process, a fraction of the cohort have taken to ghosting their employers back.
/jlne.ws/40tc9Df
Microsoft is planning job cuts and focusing more on underperforming employees
Ashley Stewart - Business Insider
Microsoft is planning job cuts soon, and the company is taking a harder look at underperforming employees as part of the reductions, according to two people familiar with the plans. A Microsoft spokesperson confirmed cuts but declined to share details on the number of employees being let go. "At Microsoft we focus on high performance talent," the spokesperson said. "We are always working on helping people learn and grow. When people are not performing, we take the appropriate action."
/jlne.ws/40qvbtK
AI tops list of 25 fastest-growing jobs-but finance gigs aren't far behind
Sheryl Estrada - Fortune
Good morning. AI jobs are growing quickly in the U.S. However, some finance and revenue-focused positions are becoming hot jobs as well.
/jlne.ws/4acxDYj
US Companies Announced Fewest Hires in 2024 in Nearly a Decade; Job cuts were up 5.5% last year versus 2023, Challenger says; Market and economic conditions were top reason cited for cuts
Maria Clara Cobo - Bloomberg
/jlne.ws/3Pq7dbU
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Most of the world's 35,000 online pharmacies are run illegally and consumers who use them risk getting bad drugs, US report warns
Elaine Kurtenbach and The Associated Press - Fortune
Nearly all of the world's 35,000 online pharmacies are being run illegally and consumers who use them risk getting ineffective or dangerous drugs, according to the U.S. Trade Representative's annual report on " notorious markets." The report also singled out 19 countries over concerns about counterfeit or pirated products.
/jlne.ws/4h81vaf
China Confirms First Domestic Cluster of New Mpox Variant
Karoline Kan - Bloomberg
China has detected the new mutated strain of the mpox virus for the first time, as the pathogen spreads to more geographies after the World Health Organization declared the outbreak in Africa a new global health emergency last year. China's Center for Disease Control and Prevention said on Thursday it has found a cluster of a new mpox strain, known as clade Ib, with the source being traced back to a foreign national who has traveled to and lived in the Democratic Republic of the Congo.
/jlne.ws/4h63SdR
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Shein's silence on China cotton use leaves British lawmakers in the dark on supply chain
Helen Reid and James Davey - Reuters
A Shein representative declined to provide a direct answer when asked by a British parliamentary committee on Tuesday whether the online fast-fashion retailer uses cotton from China or from its Xinjiang province, a key issue for potential investors concerned about its supply chain. The repeated refusal by Shein's general counsel for Europe, Middle East and Africa (EMEA), Yinan Zhu, to answer lawmakers' questions "bordered on contempt" for the cross-party business and trade committee, said Liam Byrne, the committee chair.
/jlne.ws/40s2rkk
Chinese money rushes offshore via Hong Kong mutual funds
Summer Zhen and Jiaxing Li - Reuters
Chinese investors are buying up large amounts of Hong Kong mutual fund products that invest overseas, particularly in bonds, after authorities expanded a cross-border trading channel this month and opened an avenue to get better yields. Several mutual funds that are registered in Hong Kong and allowed to market products to mainland investors were sold out within 24 hours of opening for subscription at the beginning of the year, fund statements show.
/jlne.ws/4a9eSoi
China Ramps Up Yuan Support With Record Hong Kong Bill Issuance
Bloomberg
China expanded its support for the beleaguered yuan with a plan to issue a record amount of bills in the Hong Kong market to mop up excess liquidity. The People's Bank of China will auction 60 billion yuan ($8.2 billion) of six-month bills in the city on Jan. 15, the Hong Kong Monetary Authority said in a statement. The issuance will effectively increase demand for the yuan in offshore markets, making it more costly to borrow and short the currency.
/jlne.ws/4gM0Iw4
Hong Kong's US-dollar peg gets emphatic defence from HKMA CEO
South China Morning Post
"While risk management is important, let's not be swayed by unfounded concerns," Eddie Yue Wai-man said in an article posted on the authority's website on Thursday. "And let me reiterate, we have no intention, and we see no need to change the Linked Exchange Rate System [LERS]"
/jlne.ws/3Prk5i3
Bankers Say Japan's $230 Billion M&A Boom Will Get Even Bigger; Companies are proactively unlocking shareholder value; Activist shareholders are playing a big role in the space
Lisa Du - Bloomberg
Japan's dealmakers are expecting a busier 2025 after more than $230 billion in mergers and acquisitions last year, underpinned by companies' changing attitudes around business expansion. Sitting on ample cash and trading at low valuations, firms in Japan are becoming more proactive to fend off global rivals and activist investors that are showing renewed interest in the country after decades of stagnant growth.
/jlne.ws/4h8MZ25
The sterling sell-off will continue until morale improves; Ground pound
Louis Ashworth - Financial Times
One thing's for sure: we're all going to die. The pound is down, gilt yields are up, some people are unhappy. Liz Truss is claiming to have been defamed over characterisations of her economic policy handling. The world's richest man is possibly trying to overthrow the UK government, in what is possibly an escalation of the (current) Liverpool vs Arsenal PL title race into global geopolitics.* In such conditions, a consistently reliable source of sometimes reliable information is the sellside, whose analysts are renowned for their unerring ability to analyse.
/jlne.ws/408qnI8
UK government seeks to soothe bond market nerves after borrowing costs soar; Treasury vows to stick to its fiscal rules and says gilt markets functioning 'in an orderly way'
Jim Pickard and Ian Smith in London and William Sandlund in Hong Kong - Financial Times
/jlne.ws/3WfcUxc
Alphaville LLC issues new research report on Greenland; A sell-side icebreaker
/jlne.ws/4hayqv8
Chile Rejects $3 Billion Iron Project Cleared by Regulators; Project's handling is cautionary tale in mining-friendly Chile; Operating company says decision sets a 'nefarious precedent'
James Attwood - Bloomberg
/jlne.ws/4gLQX0L
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| Auditions | | Explore a space for creative trading stories where you can find and share unique works like screenplays, television scripts, poetry, and more, all inspired by the world of finance and trading. |
After the market close, Mike leans against the wall near the building exit. Lena Caldwell walks out of the exit and looks at Mike and smiles, but keeps walking. Mike catches up to her.
LENA CALDWELL
Whatever you're selling I'm not buying.
MIKE HARRIS
Oh no, I don't want you to get the wrong idea. I saw you in there, that was f*cking incredible! How do you keep track of everything? I bet there's a lot of money on the line. Aren't you worried about making mistakes? Want to grab a coffee?
Lena stops and turns to Mike.
LENA CALDWELL
Well, I keep track by writing everything down. I worry every time I make a trade. That's why I have an error account to cover any bad trades-everyone does. And no, I don't want to have coffee with you.
See today's complete entry of Auditions HERE and the complete script to date HERE.
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Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
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