| November 03, 2023 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
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Hits & Takes
John Lothian & JLN Staff
Sam Bankman-Fried has been convicted of fraud. The breadth of the coverage of this story reflects the interest in the man who was once the second-richest twentysomething in history. The headlines and publications include Sam Bankman-Fried Convicted of Fraud in Stunning FTX Crash from Bloomberg, Sam Bankman-Fried is convicted of fraud in FTX collapse from The Wall Street Journal, Sam Bankman-Fried Trial: Fallen Crypto Mogul Convicted in Collapse That Cost Users Billions from The New York Times, Sam Bankman-Fried convicted of fraud over FTX collapse; Jury's guilty verdict caps stunning downfall of one-time public face of crypto industry from the Financial Times, FTX founder Sam Bankman-Fried found guilty of all charges in 'one of the biggest financial frauds in American history' from Fortune, Sam Bankman-Fried faces decades in prison following swift conviction in FTX fraud trial from The Street and The Meager Defense Didn't Work: Sam Bankman-Fried Is Found Guilty on All Counts from Slate.
Other headlines were Former Crypto Billionaire and FTX Founder Sam Bankman-Fried Found Guilty of All Seven Fraud Charges from People, Sam Bankman-Fried found guilty of seven counts of fraud in stunning fall for former crypto billionaire from CNN Business, Sam Bankman-Fried found guilty of defrauding FTX customers from The Telegraph, Sam Bankman-Fried found guilty on fraud charges from Fox Business and 'Crypto King' Sam Bankman-Fried faces decades in jail after guilty verdict from the BBC.
In an episode of his IPO-VID live video series on LinkedIn on October 31, 2023, the verbose chronomentrophile Patrick Young had the father of financial futures, Richard Sandor, as a guest on his show. Mr. Young needs to do a better job of editing the auto text, or pronouncing Dr. Sandor's name, as the LinkedIn autotext produced "Richard Sander" as his name. These are the issues of doing something live. Mr. Young does excel at the live interview format on video, which is something he has wanted to do for years. Finally the technology is here for him to do it, cheaply and easily.
It was an interesting interview, as any interview with Doc Sandor is. What was fascinating was the question Young asked at the end. In the 1990s Sandor had written the foreword to Young's book, The Capital Market Revolution, so Young asked, "Where does the capital market revolution go next?" Sandor replied, "Space and interplanetary markets, addressing space junk and other space exploration needs." It was an interesting answer coming eight days after JLN published our interview with Roosevelt University student Luis Arreola, former student and Assistant Professor Bryan Rodriguez, and Assistant Finance Professor Justin Shea. The interview was titled "Roosevelt University Students Propose Futures Market for Space." The guys may be on to something.
CFTC Chairman Rostin Behnam is set to participate in the 7th Annual DC Fintech Week Conference on November 08, 2023. The conference is to be held at "The International Spy Museum." They should definitely get Susan Cooper/Melissa McCarthy as a guest speaker at the conference.
Josh Sterling, a former division head at the CFTC, is representing Kalshi in suing the CFTC over the commission's order disapproving its Congressional Control Contracts, Sterling posted to LinkedIn. Sterling is now with the law firm of Jones Day.
We missed this story, so thank you to a CME Facebook group for finding it. Alice Kelley, a pioneer at the CME, has died at the age of 73. She started trading at the Merc in the 1970s and became a member of the IOM division in the 1980s. The Chicago Sun-Times has the story, titled "Alice Kelley, a pioneer in male-dominated world of the Chicago Mercantile Exchange, dies at 73" with the subheading "Ms. Kelley was a voracious reader who rented a separate Presidential Towers apartment just to house her book collection."
The New York Times reports "Ken Mattingly, Astronaut Scrubbed From Apollo 13, Is Dead at 87." The subheading is "He later orbited the moon, but in 1970 he was bumped from the Apollo flight after being exposed to measles. Then, from mission control, he helped it avert disaster." Mattingly was played by actor Gary Sinise in the movie "Apollo 13," which also starred Tom Hanks and had Kevin Bacon as Jack Swigert, the astronaut that replaced Mattingly on the Apollo 13 mission.
Speaking of NASA, The New York Times reports "35 Years After Addressing Congress, James Hansen Has More Climate Warnings." The subheading for the story is "The former NASA scientist James Hansen says in a new paper that global temperatures will pass a major milestone this decade, faster than other estimates predict."
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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Responding to calls from regulators for voluntary standard setters to develop common terms and definitions, a trio of financial industry heavyweights has tightly defined the terms, "screening," "ESG integration," "thematic investing," "stewardship" and "impact investing." The CFA Institute, Global Sustainable Investment Alliance (GSIA), and Principles for Responsible Investment (PRI) have released "Definitions for Responsible Investment Approaches." The new technical resource defines and details these terms while providing definitions of primary inputs and guidance for using them in practice. The consistent and precise use of terminology contributes to efforts to address greenwashing. The intended audience for the paper is investors, regulators, policymakers, and other market participants. View the definitions on the websites of the PRI, the CFA Institute, and the GSIA. Read the PRI press release. ~SAED
Our most read stories yesterday on JLN Options were:
- CME Group Reports Highest-Ever October ADV of 25.2 Million Contracts from CME Group press release.
- Here's How to Invest Amid Market Fears video from The Wall Street Journal.
- Rules for Premium Selling Using the VIX from tastylive. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Intercontinental Exchange Senior VP Trabue Bland Explores Market Innovations at FIA EXPO 2023
JohnLothianNews.com
When the world changes, and needs a new market benchmark, ICE is there offering a solution. That was the message from ICE Senior Vice President Trabue Bland during a video interview at FIA EXPO 2023 with John Lothian News.
Watch the video »
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Schwab Cuts More Than 2,000 Jobs in TD Ameritrade Integration
Paige Smith - Bloomberg
Charles Schwab Corp. finished cutting as much as 6% of its 35,900-member workforce, amid efforts to curb costs as it continues to integrate TD Ameritrade, according to a company spokesperson. The number of cuts, ranging from 5% to 6% of staff at the Westlake, Texas-based company, translates to as many as 2,154 employees, based on a corporate fact sheet that put the company's overall headcount at 35,900 at the end of September.
/jlne.ws/46XAmSL
***** Personally, I would have preferred a world with a TD Ameritrade still competing as a separate entity and all those people still in those jobs. But then if Elon Musk is right, we are all going to be replaced by AI, so Schwab is going to need to let go a lot more people.~JJL
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Elon Musk tells Rishi Sunak AI will render all jobs obsolete; UK prime minister and billionaire entrepreneur exchange views at conclusion of global summit on the technology
Anna Gross and Hannah Murphy - Financial Times
Elon Musk told UK prime minister Rishi Sunak there "will come a point where no job is needed" as the billionaire entrepreneur described artificial intelligence as the "most disruptive force in history" in a wide-ranging conversation. Speaking in the lavish Lancaster House in London, the Tesla chief executive and owner of SpaceX and X said he believed there would come a time when "you can have a job if you want a job...but AI will be able to do everything"
/jlne.ws/3SrUBno
***** Chimney sweep? How about that job, Mr. Musk?~JJL
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BlackRock study finds gender-balanced companies outperform peers; World's largest asset manager publishes report as critics attack ESG factors in investing
Brooke Masters - Financial Times
Companies with more gender-balanced workforces outperformed their least-balanced peers by as much as 2 percentage points annually between 2013 and 2022, a BlackRock study of the MSCI World index has found.
/jlne.ws/3skq93Q
****** I wonder how anti-ESG companies perform?~JJL
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Thursday's Top Three
Our top read item Thursday was Bloomberg's Outside China, 'Everything Apps' Haven't Worked. Why Would Musk's? Second was our MarketsWiki Page for Patsystems. Third was Ex-Goldman banker sentenced to 3 years for insider trading with squash partner, from the Financial Times.
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| Lead Stories | Bankman-Fried Found Guilty of Fraud at FTX Criminal Trial; Jury returns verdict after less than five hours Thursday; Bankman-Fried verdict caps stunning fall of his crypto empire
Bob Van Voris, Chris Dolmetsch, and Yueqi Yang - Bloomberg
Sam Bankman-Fried was convicted of a massive fraud that led to the collapse of his FTX exchange, following a month-long trial that pitted the testimony of the former crypto king against that of some of his closest friends. Bankman-Fried was found guilty of seven counts of fraud and conspiracy after jurors in Manhattan deliberated for less than five hours Thursday. He faces as much as 20 years in prison on each of the most serious charges. Judge Lewis Kaplan set a sentencing date in March.
/jlne.ws/45Y8TiF
SEC Finalizes Rule on Security-Based Swaps Trading Venues; Delayed Dodd-Frank-era measure outlines registration rules; About five firms are expected to have to register with agency
Lydia Beyoud - Bloomberg
The US Securities and Exchange Commission has released final rules for security-based swaps trading platforms, giving them the green light to register with the agency. The SEC said Thursday it had adopted the regulation - a move that came more than a decade after Congress asked the agency to do so. Under the rules, security-based swaps execution facilities would get a process for registering with the agency and clarity on how they should execute trades. Broadly, firms must operate trading platforms that can allow multiple participants to execute or trade those swaps.
/jlne.ws/49ehgtn
Hedge Funds, PE Firms Accuse SEC of 'Vast Power Grab' With New Rules
Lydia Beyoud - Bloomberg
Hedge funds and private equity firms took a bigger swing in their legal fight with the Securities and Exchange Commission, alleging that the regulator lacked authority to impose a slate of new restrictions in August. Trade groups including the American Investment Council and the Managed Funds Association said the SEC didn't properly weigh costs and benefits of the regulations. They again asked a federal appeals court to gut the new rules, which require funds to disclose more about quarterly fees and expenses, as well as keeping some favored investors from cashing out before others.
/jlne.ws/3u1noVF
Wall Street Is on High Alert for Cracks in Treasury-Bill Demand
Alexandra Harris - Bloomberg
The US Treasury's ongoing barrage of bill issuance has left market participants trying to gauge when investors will lose their appetite for short-dated government debt. Buyers have easily soaked up the $1.56 trillion of Treasury bills issued this year through the end of September, with the bulk coming after the government suspended the debt ceiling in June. But drainage of the Federal Reserve's overnight reverse repurchase agreement facility, where usage has dropped by over $1 trillion as cash is allocated to T-bills, to the widening gap between yields and overnight index swaps - a proxy for monetary policy expectations - are already raising concerns.
/jlne.ws/3u1Y69R
Corporate bond trading enters the 20th century; Robots have taken over and they can't be trusted
Bryce Elder - Financial Times
Momentous news: the European bond market has gone electric. Compared with equities (and nearly every other avenue of finance) corporate bonds markets have been slow to digitise. Lumpy liquidity combined with post-GFC risk aversion to keep much of the market high-touch. But change accelerated in recent years, with the popularity of ETFs spurring growth in portfolio trading that ever-improving algorithms could be trusted to manage.
/jlne.ws/3QpGJXR
Coinbase shares fall on lower trading volume despite revenue beat
Hannah Lang - Reuters
Cryptocurrency exchange Coinbase on Thursday beat estimates for third-quarter revenue, but saw trading volumes decline for the second quarter in a row, sending shares of the company down in after-hours trading. Trading volumes at the crypto exchange in the third quarter came in at $11 billion, compared with $26 billion a year earlier, mirroring a similar fall in the prior quarter ended June 30.
/jlne.ws/47f5Fbn
Hedge fund investors pull $80 billion from industry in 2023 - Aurum
Nell Mackenzie - Reuters
The hedge fund industry saw a net $80 billion of outflows for the year to Oct. 18, even as it raked in net profits of about $119 billion, hedge fund specialist Aurum Funds said in a report on Wednesday, as investors looked for higher returns elsewhere. Multi-strategy hedge funds did the best, posting a positive 5.9% return so far this year, just ahead of credit hedge funds with a positive 5.6% return, Aurum said.
/jlne.ws/3QmlmGX
Troubled Toronto hedge fund Traynor Ridge sued by Virtu, after losses from failed trades
Claire O'Hara - The Globe and Mail
Virtu Canada Corp. is suing Traynor Ridge Capital Inc., the Toronto-based hedge fund that was placed under a cease trade order Monday after its founder died, alleging Traynor failed to deliver money for trades it asked Virtu to execute, resulting in losses of at least $5-million.
/jlne.ws/45SXDUN
Two Sigma to Spin Out Impact Arm as Internal Frustrations Simmer; Some staff disappointed by fundraising support from parent; Two Sigma to invest up to $75 million in new firm's next fund
Hema Parmar - Bloomberg
Two Sigma Investments, the $60 billion quant giant, plans to spin out its private equity impact-investing unit amid internal discontent. Two Sigma Impact's inaugural fund raised $677 million, short of its $750 million target, according to people familiar with the matter. That occurred during a challenging environment as investors who allocate to funds struggled with liquidity. Still, some employees were disappointed about the extent of external fundraising support they received from the parent company, a person familiar with the thinking within the unit said.
/jlne.ws/3FJIwSJ
Former FCA boss warns of risks to investors from UK plan to regulate crypto; Charles Randell says treating sector's assets the same as regular investments could lead to 'consumer harms'
Michael O'Dwyer, Nikou Asgari and Jim Pickard - Financial Times
The former boss of the UK's financial regulator has attacked the government's plans for overseeing the crypto industry, warning that investors risked being harmed if crypto assets were labelled as regular investments.
/jlne.ws/3QJVoPl
Wall Street regulator adopts new rules for swap trading facilities
Reuters
The U.S. Securities and Exchange Commission on Thursday adopted new rules governing security-based swap trading platforms, implementing a law adopted by Congress after the global financial crisis of 2007-2009. The new rules will also be harmonized with those currently used by the U.S. Commodity Futures Trading Commission, an independent agency which regulates derivatives trading.
/jlne.ws/47iEbBK
The Six Moments SBF Could Have 'Come Clean,' According to Prosecutors; Binance buyback, alternate balance sheets cited by prosecutor; Jurors to begin deliberations on SBF's fate Thursday
Yueqi Yang - Bloomberg
Sam Bankman-Fried was confronted with six fateful moments that might ultimately decide his fate when jurors begin deliberations Thursday. Each time, the FTX co-founder was motivated by "greed and ambition" and chose to perpetuate a massive fraud, prosecutors said. They boiled down their case against Bankman-Fried by presenting jurors with the six examples during closing arguments Wednesday. Bankman-Fried's decisions deepened the woes of his two companies, the crypto exchange and trading firm Alameda Research.
/jlne.ws/49hX1Lf
Quick Sam Bankman-Fried Verdict Is Unusual for Big White-Collar Case; Jury deliberated less than five hours after four-week trial; Theranos's Elizabeth Holmes waited eight days for her verdict
Chris Dolmetsch - Bloomberg
A jury convicted FTX co-founder Sam Bankman-Fried within hours of beginning deliberations, an unusually swift verdict after a monthlong trial in a complex white-collar case. The jury in Manhattan federal court found Bankman-Fried guilty on all seven counts against him Thursday, the same day they were given the case.
/jlne.ws/46VVBEE
Sam Bankman-Fried's Wild Rise and Abrupt Crash; The crypto king gambled that his trading platform would make him a benevolent trillionaire. But after a fraud conviction, all bets are off.
David Streitfeld - The New York Times
There comes a moment in the development of a new technology when the hype is so common it passes for common sense. Lawyers, accountants and regulators are nowhere to be found. Investors insist entrepreneurs take their money. The world trembles on the brink of change.
/jlne.ws/3MrHzT5
FTX Trial Fuels Frustration and Anger For Traders Who Lost Money; Crypto investors who had funds on the platform are awaiting a verdict in the trial of co-founder Sam Bankman-Fried.
Claire Ballentine - Bloomberg
For crypto traders who had money on FTX when the platform collapsed last year, Sam Bankman-Fried's trial has been morass of anger and disbelief. The disgraced co-founder's turn on the witness stand was particularly infuriating. In response to questions from Assistant US Attorney Danielle Sassoon, Bankman-Fried, 31, often said he couldn't recall details about how the business he ran operated. The former CEO's use of the phrase "not sure" resulted in at least half a dozen admonitions from the judge.
/jlne.ws/47lqhyZ
China's Spy Agency Turns Focus to Finance in Quest for Security
Bloomberg News
China's spy agency pledged to help prevent financial sector risks from jeopardizing the country's national security, as the secretive organization becomes more visible under President Xi Jinping. "State security organs should attach greater importance to preventing and defusing financial risks," the Ministry of State Security said in a post on WeChat on Thursday. They should also "actively participate in the development of national security systems in the economy, finance and other areas," it added.
/jlne.ws/3Murn3o
State Street Global Advisors slashes fees on flagship European ETF; 'Bold' move to cut fees to 0.03% means manager can go no lower without losing money, analyst says
Sandra Heistruvers and Ed Moisson - Financial Times
State Street Global Advisors is cutting fees on two of its exchange traded funds in Europe to 3 basis points, making them "even more accessible and affordable".
/jlne.ws/3FJJnmp
Goldman Sachs's Managing Director Class Shrinks 5% From 2021 Level
Steve Dickson - Bloomberg
Goldman Sachs Group Inc. named 608 executives to the managing director rank, 5% fewer than the last raft of promotions announced in 2021. Roughly three-quarters of those awarded the title - seen as a stepping stone to the firm's highest rank of partner - work in revenue-generating businesses, the company said in a statement Thursday.
/jlne.ws/3QpWL44
Hedge Fund Executive's Sudden Death Exposes a Firm Deep in Trouble; Canadian regulators are probing Traynor Ridge Capital; Chris Callahan's death has left questions about trades
Derek Decloet, Layan Odeh, Esteban Duarte, and Christine Dobby - Bloomberg
The bonhomie was flowing inside the Great Banking Hall in Toronto as the city's hedge fund barons arrived to toast their success and themselves. Among the guests of honor on that Tuesday night last month: Chris Callahan, whose firm was to be celebrated for top-notch performance.
/jlne.ws/46VsVeZ
TikTok Pushes Back Against Claims It Fuels Antisemitism; The company said it had removed millions of TikTok videos in recent weeks related to hate speech, hateful behavior, harassment and bullying.
Sapna Maheshwari - The New York Times
TikTok pushed back on Thursday against growing claims in recent weeks that it had failed to protect Jewish users and had pushed pro-Palestinian content in the United States. In a statement on its website the company said, "Hateful ideologies, like antisemitism, are not and have never been allowed on our platform." The company said that since the Oct. 7 Hamas attack on Israel, it had removed millions of TikTok videos related to hate speech, hateful behavior, harassment and bullying.
/jlne.ws/3shN6Vg
Can ChatGPT Pass the CFA Exam? AI Researchers Tried to Find Out; Study says GPT-4 might pass Level I and II with prompting; ChatGPT would be unlikely to pass under all tested settings
William Shaw and Emily Graffeo - Bloomberg
Relax, Wall Street. ChatGPT is still a ways off from passing the chartered financial analyst exam and threatening the jobs of financial professionals the world over. A team of JPMorgan Chase & Co. researchers and university academics tested whether OpenAI's ChatGPT and GPT-4 chatbots would have a chance at passing the first two levels of the exam. It typically takes humans four years to complete all three levels of the test, which can lead to higher salaries and better job opportunities.
/jlne.ws/3QqwAdy
New study warns climate is warming even faster than some think
Andrew Freedman - Axios
A new study warns the Earth's climate is on track to warm significantly more than shown by the U.N. Intergovernmental Panel on Climate Change's (IPCC) projections. Driving the news: The paper, published Thursday in the peer-reviewed journal Oxford Open Climate Change, is a synthesis of new and previous discoveries across multiple fields. It is peppered with policy prescriptions, unusual for a scientific paper. The stark warning comes from ex-NASA scientist James Hansen, who is the lead author of the report. In 1988, he famously and accurately warned that human-caused warming would soon emerge from the background noise of natural variability. Why it matters: Should the paper's authors be proven correct this time, the globe can expect more severe extreme weather events, species losses and sea level rise than currently projected.
/jlne.ws/3u8uYgY
***** Inside Climate News reports: New Study Warns of an Imminent Spike of Planetary Warming and Deepens Divides Among Climate Scientists
Panama Canal Traffic Is Being Throttled by Climate Change Impact; Vessel quota will snarl trade as carriers divert to Suez Canal; Panama's Gatun Lake is its shallowest since at least 1950
Bloomberg News
The Panama Canal doesn't have enough water. A lack of rainfall, blamed on climate change, is leading to a steady decline in water levels on the vital conduit. The problem is so bad that quotas are being imposed on how many ships can pass through it, a move set to snarl trade in energy, consumer goods and food as carriers are forced to sail thousands of extra miles to make deliveries. Restrictions started this month and will continue through at least February, the canal's managing authority said. By then, trips will be limited to 18 per day, a 50% drop from a year earlier. Excluded vessels will likely alter course to the Suez Canal - adding at least a week to the journey between the US and China - or around the bottom of South America. Such voyages will burn more fuel and lead to higher freight costs.
/jlne.ws/46XX513
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | To Save Avdiivka, The Ukrainians Could Boost The Battle-Hardened 110th Brigade
David Axe - Forbes
Three weeks after the Russian 2nd Combined Arms Army launched a massive assault on the Ukrainian garrison in Avdiivka, just northwest of Donetsk in eastern Ukraine's Donbas region, one Ukrainian observer has some hard-earned advice for the Ukrainian general staff.
/jlne.ws/46VaAPf
This Russian Suicide Drone Is Blunting Ukraine's Advance; Russia is catching up to Ukraine on battlefield drone use with the Lancet, as the U.S. sanctions its manufacturer
Alistair MacDonald and James Marson - The Wall Street Journal
One of the scourges of Ukraine's counteroffensive is an exploding drone with distinctive X-shaped wings that smashes into targets at more than 100 miles an hour. In recent months, Russia's Zala Lancet drone has repeatedly struck and disabled Ukraine's Western-supplied armored vehicles that were supposed to break through Russian lines and turn the war decisively in Ukraine's favor, according to Ukrainian soldiers and officials as well as videos posted on Russian social media.
/jlne.ws/40n3zUF
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| Israel/Palestine Conflict | | News about the recent (October, 2023) conflict between Israel and Palestine | Blinken presses for pause in Gaza fighting on visit to Israel amid fears war could widen
Najib Jobain, Bassem Mroue And David Rising - Associated Press
U.S. Secretary of State Antony Blinken met Israel's prime minister on Friday to press American calls for a humanitarian pause in the fighting in Gaza, even as fears grew that the conflict could widen, with Israel warning that it was on high alert for attacks on its border with Lebanon.
/jlne.ws/3sklfnn
US seeks pauses in Gaza war as Israeli troops claim advances
Nidal Al-Mughrabi, Simon Lewis and Maytaal Angel - Reuters
U.S. Secretary of State Antony Blinken was meeting Israeli leaders on Friday to push for humanitarian pauses in the Gaza war as Israeli troops surrounded the Palestinian enclave's biggest city, the focus of its drive to wipe out Hamas. Israeli forces pounded the Gaza Strip from ground, sea and air throughout the night amid global alarm over scarcities, collapsing medical services and the rising civilian death toll.
/jlne.ws/47h9c9b
Hamas official discusses hostages taken after terror attack on Israel; Israel is not likely to go for a Hamas 'complete compromise' deal to release the hostages.
Matt Bradley and Corky Siemaszko - NBC News
A top Hamas official insisted Thursday in an interview with NBC News that the leadership was open to a "complete compromise" deal to free all the hostages the militant group has been holding for nearly a month. But Ghazi Hamad, a senior member of Hamas's political bureau who has recently and repeatedly threatened to launch fresh terror attacks against the Jewish state, also made a demand the Israelis are sure to reject: that Israel "release all the prisoners from the Israeli detention centers."
/jlne.ws/47f6262
Biden officials voice new concerns and warnings over Israel's war with Hamas; Administration officials are worried that the president's quick support for Israel after Hamas' attack could backfire.
Carol E. Lee and Courtney Kube - NBC News
As the humanitarian crisis in Gaza worsens and the death toll among Palestinian civilians continues to rise, there is growing concern among top Biden administration officials about how the Israelis are carrying out the war and uncertainty about whether they can be reined in, according to two current and two former senior U.S. officials familiar with the internal discussions.
/jlne.ws/3shJVNs
The global power of the dollar; How effective are US financial sanctions in taming Hamas or the Putin regime?
FT Podcast
Gideon talks to Wally Adeyemo, US deputy Treasury Secretary, about the power of US financial sanctions to punish autocrats and dictators and curb terrorism. What exactly are these sanctions designed to do and how effective are they? C
/jlne.ws/3QJz9cg
As Gaza War Enters New Phase, Israel Faces Pressure Over Civilian Deaths; Fears are rising that the conflict could spread to the occupied West Bank, where tensions are soaring among Palestinians angered over deadly Israeli airstrikes in Gaza.
Mark Landler and Ronen Bergman - The New York Times
/jlne.ws/46UlPap
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | The Philippine Stock Exchange is one of Asia's oldest bourses, tracing its roots back to the 1920s, but has lagged behind other regional markets in allowing short-selling.
Ramon Royandoyan - Nikkei
The Philippines is set to launch short-selling on one of Asia's oldest exchanges, but some are casting a wary eye over the effort to boost trading volumes and enhance the country's weak corporate governance. Investors can bet against Manila-listed shares, starting Monday, in a first for the nearly century-old exchange, after the proposal plodded through years of red tape amid worries that it would spark frenzied price swings.
/jlne.ws/49i1jlN
Toronto Stock Exchange Has 1 IPO This Year in Historic Dry Spell; Lithium Royalty is down 37% since its March public debut; Last time Toronto market saw this little action was in 1993
Geoffrey Morgan - Bloomberg
Canada's largest stock exchange is in the midst of a historic dry spell for initial public offerings and it's unlikely to improve anytime soon. Just one company has completed an IPO this year on the Toronto Stock Exchange, and without any last minute surprises it will be the first time that's happened since 1993. Lithium Royalty Corp., which raised C$150 million ($108 million) in March, was the largest deal in 10 months and is the lone deal to make it through in 2023.
/jlne.ws/46Y2XHy
Cboe Global Markets Reports Results for Third Quarter 2023
Cboe Global Markets
Third Quarter Highlights*: Diluted EPS for the Quarter of $1.95, Up 38 percent; Record Adjusted Diluted EPS¹ for the Quarter of $2.06, Up 18 percent; Record Net Revenue for the Quarter of $480.5 million, Up 9 percent; Reaffirms High End of Organic Total Net Revenue Growth Range of 7 to 9 percent in 2023; Reaffirms Data and Access Solutions Organic Net Revenue Growth Target2 of 7 to 10 percent; Decreases 2023 Adjusted Operating Expense Guidance to $754 to $762 million, from $766 to $774 million. Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the third quarter of 2023.
/jlne.ws/3sbB9R8
Dalian Commodity Exchange And Bursa Malaysia Derivatives Sign Soybean Oil Futures Settlement Price Licensing Agreement
Mondovisione
Dalian Commodity Exchange (DCE) and Bursa Malaysia Derivatives Berhad (BMD) officially signed the soybean oil futures settelement price licensing agreement on November 2, 2023, during the 17th China International Oils and Oilseeds Conference (CIOC). Yan Shaoming, CEO of DCE, and Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia and Chairman of BMD, signed the agreement on behalf the two exchanges. Ran Hua, Chairman of DCE, attended the signing ceremony, which was presided over by Cheng Weidong, Vice President of DCE.
/jlne.ws/3tRsyTU
October 2023 figures at Eurex
Eurex
Eurex, Europe's leading derivatives exchange, reports a 16 percent increase in total traded contracts to 161.2 million in October from 139.4 million in the same month last year. Turnover in equity derivatives increased by 43 percent year-on-year in October to 22.4 million from 15.6 million contracts. Interest rate derivatives increased by 22 percent, from 53.2 to 64.9 million contracts traded in October. Turnover in index derivatives rose by 4 percent year-on-year.
/jlne.ws/3shTwnk
Intercontinental Exchange Reports October 2023 Statistics
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology and market infrastructure, today reported October 2023 trading volume and related revenue statistics, which can be viewed on the company's investor relations website at https://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet. October highlights include: Total average daily volume (ADV) up 15% y/y; open interest (OI) up 3% y/y Energy ADV up 37% y/y; OI up 14% y/y, including record OI of 51.5M lots on October 25 Total Oil ADV up 43% y/y; OI up 26% y/y Brent ADV up 47% y/y; OI up 21% y/y WTI ADV up 82% y/y; OI up 28% y/y Gasoil ADV up 27% y/y; OI up 42% y/y Other crude and refined products ADV up 50% y/y; OI up 28% y/y
/jlne.ws/3u0GThb
Nasdaq October 2023 Volumes
Nasdaq
Nasdaq (Nasdaq: NDAQ) today reported monthly volumes for October 2023 on its investor relations website.
/jlne.ws/47gLUAp
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | If Only Digital Cash Worked In Hong Kong Taxis; Persuading cabbies who refuse to take anything but physical bills is the most important use case for the e-HKD.
Andy Mukherjee - Bloomberg
The Hong Kong dollar is very likely to go digital. Major deposit-taking institutions, as well as payment firms like Visa Inc., Mastercard Inc. and Ant Group Co.'s Alipay, have all run pilots around e-HKD, a paperless version of the city's currency. Everyone is optimistic.
/jlne.ws/3FENlNn
Why are fewer women using AI than men?
MaryLou Costa - BBC
Popular artificial intelligence (AI) chatbot ChatGPT now has more than 180 million users, but jeweller Harriet Kelsall says it isn't for her. Being dyslexic, she admits that using it might help improve the clarity of her communication with customers on her website. But ultimately she says that she just doesn't trust it.
/jlne.ws/45SW3lP
PayPal gets crypto green light in UK as sets up post-Brexit base
Huw Jones - Reuters
PayPal has been registered to offer cryptoasset activities in Britain, the Financial Conduct Authority said on its website, as the global payments giant builds a post-Brexit base in Britain. mWhile the crypto market in Britain awaits its first set of rules, companies that want to offer cryptoassets must show the FCA that they have sufficient safeguards against them being used for laundering money or financing terrorism.
/jlne.ws/3MuqM1E
Block's Q3 bitcoin gross profit jumps 22% year-over-year to reach $45 million
James Hunt - The Block
Block, Inc. reported a 37% year-over-year increase in bitcoin revenue, reaching $2.42 billion in Q3; Bitcoin gross profit for the financial services firm climbed 22% year-over-year, totaling $45 million. Jack Dorsey's Block, Inc. reported a 37% rise in bitcoin revenue for Q3 late yesterday, bringing in $2.42 billion compared to $1.77 billion during the same period in 2022. The financial services firm's Q3 bitcoin gross profit followed suit, marking a 22% increase from the previous year's $37 million to reach $45 million.
/jlne.ws/3QIYQcO
Finance Chiefs Take Measured Approach to Using Real-Time Payments; For CFOs a key selling point of systems like the Federal Reserve's FedNow is the ability to closely manage working capital
Kristin Broughton - The Wall Street Journal
With real-time payments, chief financial officers can pay their suppliers in seconds, but many CFOs are holding off on using them in the back office, waiting to see if the value ultimately outweighs the costs.
/jlne.ws/3siPCKZ
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| Cybersecurity | | Top stories for cybersecurity | Planning submitted for £1 billion project at the heart of the UK's cybersecurity ambitions
CSO Online
Planning has been submitted for Cheltenham's Golden Valley Development, a GBP1 billion project at the heart of the UK government's National Cyber Strategy and the UK's newest Innovation District. The proposed development will deliver a "diverse innovation district" comprising over 1 million square feet of commercial space attracting businesses with a focus on science and technology, building on the existing specialist cluster in cybersecurity and the emerging AI, deep tech, and future computing/quantum sectors, read a posting by developer HBD. New homes will also be built as part of the project, providing over 1,000 low-carbon properties to rent and buy, all situated within a network of green open spaces with community amenities and a new primary school.
/jlne.ws/3MrROGO
Where Does Cybersecurity Fit into the Acquisition Process?
Information Week
M&A involves a lot of different stakeholders working together through due diligence, closing and then integration. Leaving cybersecurity leadership out of the conversation can expose companies to business risk. Robert Huber has been involved with many acquisitions over the course of his career. As chief security officer of Tenable, he recently played a part in the cybersecurity company's acquisition of Ermetic, a cloud-native application protection company.
/jlne.ws/46W4sGp
Predictive AI in Cybersecurity: Outcomes Demonstrate All AI is Not Created Equally
The Hacker News
Here is what matters most when it comes to artificial intelligence (AI) in cybersecurity: Outcomes. As the threat landscape evolves and generative AI is added to the toolsets available to defenders and attackers alike, evaluating the relative effectiveness of various AI-based security offerings is increasingly important - and difficult. Asking the right questions can help you spot solutions that deliver value and ROI, instead of just marketing hype. Questions like, "Can your predictive AI tools sufficiently block what's new?" and, "What actually signals success in a cybersecurity platform powered by artificial intelligence?"
/jlne.ws/3skq5kC
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| Cryptocurrencies | | Top stories for cryptocurrencies | Singapore Reshapes Its Crypto Hub After Three Arrows, Terraform Setbacks; City-state was buffeted by major digital-asset blowups; Officials now aiming for productive uses of blockchains
Suvashree Ghosh - Bloomberg
During the great pandemic-era Bitcoin boom, Singapore established itself as one of the hubs of the cryptocurrency industry, drawing in entrepreneurs and investors from around the world. Then in 2022 the hub began to fray: a $60 billion wipeout of digital coins created by Terraform Labs Pte sparked the unraveling of the Three Arrows Capital hedge fund, both of which had bases in the city-state. A wave of contagion then ripped through crypto, stoking a $2 trillion market crash.
/jlne.ws/40n841C
Aragon Association to dissolve itself, provide liquidity for ANT redemption
MK Manoylov - The Block
The Swiss non-profit Aragon Association will dissolve itself and let users redeem its native token ANT for ETH. The Aragon Association will liquidate its 86,343 ETH ($155 million) treasury so that users can redeem each ANT token for 0.0025376 ETH, the project wrote in a Thursday statement. Users will have until Nov. 2, 2024 to swap their tokens. After redemption, all ANT tokens will be burned, as "from this moment forward, there is no purpose in continuing to hold ANT."
/jlne.ws/3tZCPO6
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| Politics | | An overview of politics as it relates to the financial markets | US Put on Notice by Key Bond Panel to Mind Fiscal Deterioration
Christopher Anstey - Bloomberg
US policymakers were advised this week by an influential panel of bond market participants to pay attention to the deteriorating federal budget, with investors demanding steeper premiums to buy the government's longer-term securities. "Effectively, while there is still reasonable demand for US Treasuries from many domestic and international market participants, it has not kept pace with the increase in supply," according to a Treasury Borrowing Advisory Committee analysis released on Wednesday.
/jlne.ws/47f2S1T
Republicans' climate stance sets up new 2024 election frontline; House Speaker Mike Johnson's rise comes amid the party's shift to the right on global warming
Aime Williams - Financial Times
Republican lawmakers' election of Mike Johnson as speaker of the US House of Representatives this month marks another shift by the party away from Democrats on the issue of climate change, political analysts say, deepening a division that is expected to be a feature of the 2024 election. Johnson, a Louisiana congressman who has accepted more funding from oil and gas companies than any other sector, has a history of questioning the scientific evidence on climate change - and almost overnight has gone from relative obscurity to become one of the Republican party's most visible leaders.
/jlne.ws/46UiyI9
"ESG cartels": Anti-woke Republicans are weaponizing antitrust law; In recent weeks, Jim Jordan's House Judiciary Committee accused five big shareholder advocate groups of collusion. The move comes as the GOP has broadened its scope of attacks on ESG.
Clint Rainey - Fast Company
Always spoiling for new ways to kneecap their formidable foe, ESG investing, a group of congressional Republicans this week widened their attack. The GOP-controlled House Judiciary Committee has subpoenaed documents from a prolific pro-climate investor advocacy group, As You Sow. The advocacy group posted a long, threatening letter it received on Wednesday from committee chair Jim Jordan. In it, he says advisory firms that push climate-conscious investing are part of an "ESG cartel" that's working to advance a secret liberal political agenda, possibly in violation of antitrust laws.
/jlne.ws/3tZO2OA
Step aside world, the US wants to write the AI rules; The Bletchley Park summit is worthy, but its conclusions will be toothless compared with Biden's executive order
John Thornhill - Financial Times
Kamala Harris scores high marks for honesty even if she may not graduate top in diplomacy. Standing alongside US president Joe Biden before he signed Monday's executive order regulating artificial intelligence, the vice-president spelt out her country's intent to remain the world's technological hegemon and write its own rules of the game.
/jlne.ws/3QM1qyY
SEC is 'overreaching' on crypto guidance: Senator Lummis
Angel Smith and Akiko Fujita - Yahoo Finance
Senator Cynthia Lummis (R-Wy.) is advancing efforts to stop the Government Accountability Office (GAO) from deciding whether the Securties and Exchange Commission's (SEC) crypto guidance should be a formal rule. Lummis tells Yahoo Finance that crypto companies are currently "working in a bit of a regulatory vacuum" trying to follow SEC guidance, arguing the agency is "overreaching."
/jlne.ws/479gcVS
Elon Musk Calls for AI Regulations in Chat With UK Prime Minister; "Having a referee is a good thing," Musk said in conversation; Musk praises China involvement, says AI will end need for jobs
Thomas Seal - Bloomberg
/jlne.ws/45T616t
Beijing bans Communist party officials from private equity investing; Xi Jinping's anti-corruption drive targets cadres indirectly taking shares in unlisted companies
Ryan McMorrow and Kaye Wiggins - Financial Times
/jlne.ws/3FH081G
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| Regulation & Enforcement | | Stories about regulation and the law. | CFTC Signals a More Aggressive Approach in New Enforcement Guidance
Glen A. Kopp Matthew F. Kluchenek Anna R. Easter - Mayer Brown
On October 17, 2023, the Commodity Futures Trading Commission's ("CFTC" or "Commission") new Director of Enforcement, Ian McGinley, announced several updates to the Division of Enforcement's (the "Division") guidance to staff on enforcement resolution recommendations made to the Commission. The guidance is summarized in a written advisory (the "Advisory") published contemporaneously with Director McGinley's announcement.1 Notably, the Advisory provides guidance on determining whether proposed civil monetary penalties ("CMPs") are sufficient to achieve general and specific deterrence, when the imposition of a corporate compliance monitor or consultant is appropriate, the appropriate duties and responsibilities of monitors and consultants, and whether admissions should be recommended in a particular enforcement action. Though the Advisory signals a more aggressive approach by the Division going forward, it also provides helpful insight into the steps firms can take in an effort to avoid harsher
/jlne.ws/3Sx0WO6
Pennsylvania court rules former governor illegally joined carbon emissions trading alliance
Zack Budryk - The Hill
A Pennsylvania court ruled Wednesday that former Gov. Tom Wolf (D) unlawfully joined an interstate carbon emissions payment program without legislative approval. In an opinion written by Judge Michael Wojcik, a five-judge panel of Pennsylvania's Commonwealth Court found that membership in the Regional Greenhouse Gas Initiative (RGGI) constitutes an illegal tax. Plaintiffs in the lawsuit included a coalition of energy companies and unions representing fossil fuel workers.
/jlne.ws/45WDmO2
South Korea Reportedly Seeks Temporary Ban on Stock Short Sales
Youkyung Lee - Bloomberg
South Korea's government will seek a temporary ban on stock short-selling until regulations and systems related to the practice show "fundamental improvement," according to a report by local media outlet Herald Business. The Financial Services Commission, the country's top industry regulator, will prepare a detailed plan next week, followed by the government's final plan that will be drawn up before Nov. 21, according to the Friday report, which didn't cite anybody.
/jlne.ws/3Qqur1u
Commissioner Pham Announces Agenda for the Upcoming Global Markets Advisory Committee Meeting on November 6
CFTC
CFTC Commissioner Caroline D. Pham, sponsor of the Global Markets Advisory Committee (GMAC), announced the agenda for the upcoming GMAC public meeting on Monday, November 6, from 9:00 a.m. (EST) to 12:00 p.m. (EST) at the CFTC's Washington, D.C. headquarters.
/jlne.ws/46d67Gx
Chairman Behnam to Participate in the 7th Annual DC Fintech Week Conference on November 08, 2023
CFTC
Chairman Rostin Behnam will participate in a fireside chat at the 7th Annual DC Fintech Week Conference.
/jlne.ws/45WAq3S
Commissioner Goldsmith Romero to Participate at the National Asian Pacific American Bar Association Convention's Panel on Presidential Appointments
CFTC
Commissioner Christy Goldsmith Romero will participate in a bipartisan panel, Explore Pathways to Pursue a Presidential Appointment, at the 2023 National Asian Pacific American Bar Association (NABAPA) Convention.
/jlne.ws/3u0PwIw
SEC Adopts Rules for the Registration and Regulation of Security-Based Swap Execution Facilities
SEC
The Securities and Exchange Commission today adopted new Regulation SE under the Securities Exchange Act of 1934 to create a regime for the registration and regulation of security-based swap execution facilities (SBSEFs). The new regulatory framework was required under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to the over-the-counter derivatives market.
/jlne.ws/3FMfhPn
Statement on Registration of Security-Based Swap Execution Facilities
Chair Gary Gensler - SEC
Today, the Commission adopted final rules to create a framework for the registration of security-based swap execution facilities (security-based SEFs). I support today's adoption because, through fulfilling Congress's mandate, it increases the transparency and integrity of the security-based swap market. This adoption marks the latest step in what has been a long journey.
/jlne.ws/40lEoSm
Statement on Rules Relating to Security-Based Swap Execution and Registration and Regulation of Security-Based Swap Execution Facilities
Commissioner Mark T. Uyeda - SEC
I have unaddressed concerns regarding the rule adoption relating to Security-Base Swap Execution and Registration and Regulation of Security-Based Swap Execution Facilities. Therefore, I cannot support the adoption as recommended. A more comprehensive statement conveying those concerns will be forthcoming at a later date.
/jlne.ws/40rBsnl
Remarks at the ALI - CLE 2023 Conference on Life Insurance Company Products
Commissioner Mark T. Uyeda - SEC
Thank you, Steve [Roth], for the kind introduction, and for the invitation to be part of the 41st annual ALI-CLE insurance products program and join many current and former SEC colleagues who are also participating. Forty-one years is an amazing streak and demonstrates a deep commitment to continuing legal education. Congratulations to Steve on his 25th year as co-chair, and I understand that this is Richard [Choi's] 17th year. Congratulations to each of you for longstanding efforts.
/jlne.ws/3Sn1Cph
SEC Charges President/CCO of Prophecy Asset Management Advisory Firm with Multi-Year Fraud
SEC
The Securities and Exchange Commission today charged John Hughes, president and chief compliance officer of registered investment adviser Prophecy Asset Management LP, for his involvement in a multi-year fraud that concealed losses of hundreds of millions of dollars from investors. Prophecy Asset Management advised multiple hedge funds and reported more than $500 million in assets under management. The SEC's complaint alleges that Hughes and his associates at Prophecy Asset Management misled the funds' investors, auditors, and administrator about the funds' trading practices, risk, and performance - all while collecting more than $15 million in fees.
/jlne.ws/46U2ne3
SEC Charges Royal Bank of Canada with Internal Accounting Controls Violations
SEC
The Securities and Exchange Commission today announced that Canada's largest bank, Royal Bank of Canada, will pay a $6 million penalty to settle charges that it violated the books and records and internal accounting controls provisions of the securities laws relating to its accounting for its costs of internally developed software.
/jlne.ws/3u1RVCM
Bank Indonesia and Monetary Authority of Singapore Further Extend Bilateral Financial Arrangement to 2 November 2024
Monetary Authority of Singapore
Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) today announced a further extension of their bilateral financial arrangement by one year to 2 November 2024. This arrangement continues to reinforce the ongoing financial cooperation in preserving monetary and financial stability in both countries amid global macroeconomic uncertainties.
/jlne.ws/3Qgch2w
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Barclays Rebuilds Carbon Trading Desk After a Decade-Long Hiatus; Banks, hedge funds line up to get a foothold in carbon trading; Barclays' decision is seen as 'a sea change' for the bank
Alastair Marsh - Bloomberg
Barclays Plc is rebuilding its presence in a market from which it retreated a little over a decade ago: carbon trading. The London-based bank appointed a veteran of Shell Plc, Oliver Morning, to run the operations, according to people familiar with the hiring process who asked not to be identified discussing job moves they're not authorized to make public.
/jlne.ws/3QjwJQ9
Using Direct Indexing to Harvest Tax Gains
FINSUM via Nasdaq
Using Direct Indexing to Harvest Tax Gains
One of the reasons that direct indexing has been gaining in popularity is its ability to harvest tax losses in portfolios with regular scans and rebalancing. This technology can also be used to harvest taxable gains on assets that have appreciated considerably over a long period of time by raising the cost basis of securities. This will ultimately lead to a lower capital gains tax bill.
/jlne.ws/3Ql7YmI
Big changes rocking Wall Street conceal an inconvenient truth: It's a return to normal
Stan Shoe - Associated Press
It's easy to get swept up in all the superlatives popping up about investing and financial markets. The 10-year Treasury yield is at its highest level since 2007! The Federal Reserve has hiked its main interest rate to the highest level since 2001! Bond funds are on track for one of their worst years in decades! Diminished in all the hullabaloo is that conditions in financial markets are actually reverting to historical norms, not diverging from them.
/jlne.ws/46Y04qc
Texas' $55 Billion University Endowment Fund Is Wary Private Debt Market
Shelly Hagan - Bloomberg
The head of the second-largest US university endowment is pouring cold water on one of Wall Street's hottest markets: private credit. Rich Hall, who took over as chief executive officer of the University of Texas/Texas A&M Investment Management Company in July, said leverage in private credit makes it too risky to boost allocations, even as other endowments and pension funds have been funneling money into what's now a $1.6 trillion global market.
/jlne.ws/3MtAUHI
Investors are paying close attention to the world's safest assets
The Economist
Regular and predictable. That has been the golden rule of Treasury issuance for 40 years. America's fiscal branch once funded itself with "tactical" bond sales. Officials would survey market participants and issue debt in response. But this process proved highly disruptive to financial activity. So in 1982, they adopted a new approach: a regular schedule of issuance would be followed, communicated long in advance.
/jlne.ws/3FHUhcn
The Banks Are Where the Money Isn't; Also robot CFA charterholders, SBF closings, intended loss, journalism vs. hedge funds, Ozempic and SafeMoon.
Matt Levine - Bloomberg
Private credit
/jlne.ws/3FKCaCK
Goldman Sachs to promote 608 to managing directors, down from 2021
Saeed Azhar - Reuters
/jlne.ws/46W3xWt
Goldman Sachs Announces Managing Director Class of 2023
Goldman Sachs
/jlne.ws/46UjQCZ
Charlie Munger Will Take Your Questions Now; 'Why should he try and pick his own stocks? He doesn't design his own electric motors and his egg beater,' Berkshire Hathaway's vice chairman muses on investing
Karen Langley - The Wall Street Journal
/jlne.ws/3MqbhYk
Bring Back Corporate Pension Plans. Seriously; Higher interest rates and a competitive labor market make the case to bring back a version of the classic retirement benefit.
Telis Demos - The Wall Street Journal
/jlne.ws/3FO1Gqw
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | The Golden Era of European Mountaineering Is Coming to an End; Extreme heat driven by climate change is making the French Alps too dangerous to climb during the summer.
Oscar Boyd - Bloomberg
The French village of Chamonix has been the thriving center of European mountaineering for more than three centuries. But climate change is upending the once-reliable seasons that underpin the region's important tourism industry. The Alps have warmed by about 0.5°C each decade since the 1980s, according to the Research Centre for Alpine Ecosystems. That's made some of the most used routes more dangerous - and at times unclimbable - as rockfall increases and glaciers melt.
/jlne.ws/3MuwAZ0
Southwest Inks 20-Year Jet Fuel Deal in Quest to Go Green; Deal with USA BioEnergy is for as much as 680 million gallons; Purchases of fuel made from wood to start as early as 2028
Kim Chipman - Bloomberg
Southwest Airlines Co. said it has forged a two-decade agreement to buy as much as 680 million gallons of renewable jet fuel, part of the US carrier's goal of slashing climate-polluting emissions. The sustainable aviation fuel, or SAF, will be sold by Arizona-based USA BioEnergy LLC starting as early as 2028, Southwest said in a statement. USA BioEnergy is working to build a $2 billion-plus plant in Texas to make green jet fuel from wood waste, the company's chief executive, Nick Andrews, said in an interview.
/jlne.ws/49oc4mO
ESG groups unite on words amid fight against sustainable investing; A new list of definitions may help clear up confusion around ESG.
Emile Hallez
If there is one thing that supporters and opponents agree on about ESG, it might be that there are too many interpretations of its meaning. This week, several groups, including the CFA Institute, gave a list of definitions that they want to be standard across the industry. That includes common meanings for terms like "screening," "ESG integration," "thematic investing," "stewardship" and "impact investing." A lack of clarity can hinder communication and contribute to perceptions of greenwashing, the CFA Institute stated.
/jlne.ws/45XzFri
Hong Kong Backs Industry-Led Voluntary Code for ESG Ratings and Data Products Providers
Carolyn H. Sng - Global Investment Law
The Securities and Futures Commission in Hong Kong (SFC) has announced its support for the development of a voluntary code of conduct (VCoC) for ESG ratings and data products providers. The proposed VCoC, which will be open for ESG ratings and data products providers to sign up voluntarily, and will align with international best practices as recommended by the International Organization of Securities Commissions. The VCoC will be developed by the Hong Kong ESG Ratings and Data Products Providers VCoC Working Group (VCWG), comprising Hong Kong and international representatives from the ESG ratings and data products industry as well as key users from the financial sector, with the International Capital Market Association serving as Secretariat. The SFC, the Hong Kong Monetary Authority, and the Insurance Authority, the key financial services regulators in Hong Kong, will sit as observers to the VCWG.
/jlne.ws/3QIltNx
New Technology Could Capture Carbon and Water Out of Thin Air; Startup Avnos is piloting a machine that could help solve climate change - and adapt to impacts already in the pipeline.
Michelle Ma - Bloomberg
A lightly trafficked stretch of road near Bakersfield, California, may seem an odd place to try to solve two environmental crises at once. But there, sandwiched between a decommissioned solar thermal project and an almond farm, a company is testing a machine that can suck carbon dioxide and water out of the air. That machine is the first attempt by Avnos, a Los Angeles-based startup, to prove it can do what it calls hybrid direct air capture (DAC). Its technique would clean the air of CO2 and capture water that can be used in an era of worsening drought. It's a moonshot bet on an already moonshot technology.
/jlne.ws/3QIA9NG
Deep Rifts at UN Loss and Damage Talks Cast a Shadow on Upcoming Climate Conference; Developing countries oppose the U.S.-led plan for the World Bank to host the new climate fund, and question the credibility of developed countries that have failed to deliver on other climate promises.
Bob Berwyn - Inside Climate News
/jlne.ws/3tX32wG
Western countries clash with Saudi Arabia over UN climate fund; Kingdom resists efforts to broaden base of donors for poorer countries coping with consequences of environmental fallout
Attracta Mooney, Alice Hancock and Aime Williams - Financial Times
/jlne.ws/3FH0Qfk
Jamie Dimon Warns Texas to Stop Pushing Anti-Business Laws; JPMorgan doesn't discriminate against any industry, Dimon says; Lender is adding local bankers across US, including in Texas
Danielle Moran - Bloomberg
/jlne.ws/3QpF1Wr
Northern Spain's cooler beaches lure tourists away from scorched south; Country shows how climate change could redraw the map and alter the calendar of European tourism
Barney Jopson - Financial Times
/jlne.ws/40pww2q
South China Sea brims with rare earth and renewable power promise; Chinese companies are early movers with wind turbines in disputed waterway
Lien Hoang - Nikkei
/jlne.ws/3Qr810f
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | If Only Digital Cash Worked In Hong Kong Taxis; Persuading cabbies who refuse to take anything but physical bills is the most important use case for the e-HKD.
Andy Mukherjee - Bloomberg
The Hong Kong dollar is very likely to go digital. Major deposit-taking institutions, as well as payment firms like Visa Inc., Mastercard Inc. and Ant Group Co.'s Alipay, have all run pilots around e-HKD, a paperless version of the city's currency. Everyone is optimistic.
/jlne.ws/3FENlNn
UBS to Lose $135 Million as SNB Cuts Reserve Rates, KBW Says
Verena Sepp - Bloomberg
UBS Group AG is set to miss out on $135 million in revenue after the Swiss National Bank decided to cut how much it pays for the money that banks are required to hold with it, according to KBW estimates.
/jlne.ws/3MrgCia
Dimensional Co-CEO Gerard O'Reilly on the Future of Fund Management; How one of the fastest growing ETF providers sees the market
Tracy Alloway and Joe Weisenthal - Bloomberg
Dimensional Fund Advisors is one of the fastest growing providers of mutual funds and ETFs. It was founded in the early 1980s, built upon University of Chicago research on efficient markets, passive investing, and other ideas that have since become extremely widespread. After having built up a huge following among financial advisors for their mutual funds, the company has been racing up the list of ETF providers. On this episode, we speak with Dimensional's co-CEO and chief investment officer Gerard O'Reilly on the firm's history, its approach to investing, and where he sees the fund management industry going.
/jlne.ws/3QqTEsQ
Leaders in Trading 2023: Meet the nominees for... Best Broker Electronic Trading Initiative; Learn more about the four firms shortlisted for The TRADE's 2023 Editors' Choice Award for Best Broker Electronic Trading Initiative, including: Goldman Sachs, Jefferies, JP Morgan and TD Cowen.
Editors - The Trade
Next up in our introduction to the distinguished nominees for the Leaders in Trading 2023 Editors' Choice Awards, we bring you the shortlist the Best Broker Electronic Trading Initiative. As another new category to the 2023 Leaders in Trading awards gala, this award is intended to celebrate those sell-side institutions committed to expanding their electronic trading offerings to aid clients and remain innovative.
/jlne.ws/3SwiQ3T
SIX head of equities departs for Citadel Securities; Adam Matuszewski has been with SIX for over 10 years, joining in 2013 as a trainee in product management for equities.
Annabel Smith - The Trade
SIX's head of equities Adam Matuszewski has resigned from the exchange group after over 10 years to take up a new role at Citadel Securities based in London, The TRADE can reveal. He joins the market maker as its new head of business development for EMEA, based in London, according to sources familiar with the matter.
/jlne.ws/3Ms4NbC
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | ChatGPT boss says lack of AI skills risks locking older workers out of the job market
James Titcomb - The Telegraph
The founder of ChatGPT has said that older workers could be squeezed out of the job market because they will lack the artificial intelligence skills of their junior colleagues. Sam Altman told students at the University of Cambridge that younger workers are starting to outperform more experienced staff because they are more comfortable using AI tools in their job. He said several chief executives at large technology companies had observed the trend, predicting that it would mean more young people leading companies and making inventions.
/jlne.ws/40Dsl3j
Online recruiters take searches deeper with job-matching models; Digital platforms aim for more effective placements by tapping user data
Arvin Vakilly - Financial Times
Job websites are morphing into job-matching platforms by using their members' data to help give candidates and recruiters greater control of their searches. US-based job search platform Indeed counts 350mn unique visitors a month and LinkedIn, the world's largest professional network, reports that 62mn of its more than 950mn registered users visit its jobs pages each week.
/jlne.ws/3u1Ti4o
Recruiters embrace AI to boost efficiencies and candidate pools; Generative technology is helping agencies sift out the right human for the job in a tight talent market
Leke Oso Alabi - Financial Times
Recruitment companies are turning to generative artificial intelligence to identify candidates and boost efficiencies as the jobs market begins to cool. "Talent markets have been tight for a while, meaning companies struggle to find humans for open jobs," says Tomas Chamorro-Premuzic, chief innovation officer at global recruiter ManpowerGroup, professor of business psychology and expert in hiring technologies. "AI is massively helpful here: it enables recruiters to look at talent in wider, broader, more unusual places, scraping and scanning through millions of applications."
/jlne.ws/3QnQdTB
Yawning skills gaps pose 'a real challenge'; Employers say the needs of industry are often evolving more quickly than education
Bethan Staton - Financial Times
When the UK's farming ministry was struggling to find new specialist workers, with skills in cloud computing and cyber security, it decided to take matters into its own hands. In partnership with recruitment group Hays, the Department for Environment, Food & Rural Affairs launched the Cloud and Security Academy - a bespoke programme to train prospective employees in digital skills, and then place them in hard-to-fill roles. Nearly 1,400 people from a wide variety of backgrounds applied - 500 per cent more than would, typically, for similar jobs.
/jlne.ws/462x13w
How benefits have overtaken pay as the key to hiring and keeping staff; Flexible working tops attractions for employees as companies seek low-cost ways to compete for talent
Lucy Warwick-Ching - Financial Times
Employers across the UK are having to be more creative in how they attract and retain staff, as basic salary rises are failing to keep up with inflation. And while some companies are looking to pay more, recruiters say this approach, alone, is unlikely to work in the face of rising costs.
/jlne.ws/40uRYTF
Where Companies Want Employees to Work - and Where People Actually Want to Work
Radostina Purvanova and Alanah Mitchell - Harvard Business Review
/jlne.ws/49ocPvR
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Confused About Health-Savings Accounts? Here's What to Know; Despite their triple tax benefits, HSAs remain an enigma to many employees. Hint: They're not FSAs
Cheryl Winokur Munk - The Wall Street Journal
Health-savings accounts, and the triple tax benefits they can bestow, aren't necessarily a secret anymore. But these accounts remain an enigma for many Americans. Not everyone has the option to participate in an HSA, but even if they do, many don't use it fully. This is underscored by data showing that about 73% of employees with an HSA contributed to their account in 2021, according to the Plan Sponsor Council of America, a nonprofit trade association for employers.
/jlne.ws/49d1xdQ
The Great Unifying Force in America Right Now Is Stress; Whatever the reason - economic uncertainty, global turmoil, technological change - Americans are more anxious now than they were before the pandemic.
Jessica Karl - Bloomberg
Everyone Is Stressed Out
If this newsletter were a podcast with host-read ads, I might start off saying that today's edition is brought to you by Stress and Anxiety, then mention that the 25%-off discount code for both products, exclusive to Opinion Today listeners, is YOU-DONT-NEED-ONE! Because really, after years of dealing with Covid and its fallout, various economic woes, widespread geopolitical upheaval and disturbingly fast new technology, you probably already have stress and anxiety. As Lisa Jarvis says (free read), our collective worries are making our skin crawl like never before. Just read this horrifying story in the Wall Street Journal and you'll understand why:
/jlne.ws/47jJctJ
What is behind the unexpected decline in dementia? Emerging research is challenging a widely held belief that new cases of the condition will rise exponentially as people live longer
Sarah Neville - Financial Times
Stuart Lambie remembers the moment about five years ago when Alzheimer's disease started to rob him of his father. As the illness tightened its grip, the "true gentleman", who saw wartime service in the Royal Navy and later ran a successful business, became verbally aggressive towards the wife he had adored.
/jlne.ws/49yJ9MX
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Singapore Plans Investment Rules to Shield Critical Entities
Philip J. Heijmans - Bloomberg
Singapore plans to screen investments more closely in sectors critical to its national interests, as part of a new regime to boost security without undermining the Asian financial hub's reputation for ease of doing business. The proposed Significant Investments Review Bill seeks to allow the government to review ownership or control transactions in the 'critical entities,' the Ministry of Trade and Industry said in a statement on Friday.
/jlne.ws/47gtVdh
Lottery-Like Bet on Venezuela Pays Off for Hedge Funds
Maria Elena Vizcaino and Nicolle Yapur - Bloomberg
Lee Robinson started loading up on Venezuela debt just as most investors were fleeing. The defaulted sovereign and state oil company bonds were trading for less than a dime, and there was no end in sight to Trump-era sanctions on the country.
/jlne.ws/49yFm2b
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