| October 21, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
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Hits & Takes
John Lothian & JLN Staff
Sir Brian Williamson died last Thursday morning, sources have shared with me. The former two-time chairman of the London International Financial Futures and Options Exchange was reported not to be feeling well for a couple of days and saw his doctor ahead of a planned hip operation. He felt unwell quickly after the appointment and suffered a severe heart attack shortly thereafter, a source shared.
No details about any services are available at this time. We will share them when they become available.
Williamson was a 2007 inductee into the FIA Futures Hall Of Fame. He is featured in the JLN video series, The History of Financial Futures: Game Changers, Part II. He is the first person you see on the screen speaking in an interview conducted by the veteran journalist John Parry back in 2011. We launched the series at the time, contracting with Parry to interview the early heads of the European exchanges, because we were afraid of losing their stories. It was the death of former Chicago Corp. CEO Jack Wing in August of 2011 that spurred us into action and launched our historical video work.
When I return to Illinois at the beginning of November, I will look for the raw video from the interview we did with Williamson and see if we can repackage it as a stand alone interview or podcast.
Human activity has disrupted the global water cycle for the first time in human history, creating a growing crisis that threatens economies, food production, and lives, according to a report by the Global Commission on the Economics of Water, CNN reported. The combination of poor land and water management, along with the climate crisis, has placed unprecedented stress on the system that moves water around the Earth. Nearly 3 billion people already face water scarcity, with risks to 50% of global food production and potential GDP losses of up to 15% in low-income countries by 2050.
The report highlights the importance of both "blue water" (lakes, rivers, and aquifers) and "green water" (moisture in soils and plants), both vital to the water cycle and under threat due to human damage, climate change, and ecosystem destruction. The crisis is compounded by increased water demand, as people require around 4,000 liters per day for a dignified life-far more than most regions can provide sustainably.
The report urges global governments to treat the water cycle as a collective resource, requiring better management and significant cuts in pollution. It also calls for rethinking how water is valued in economies to prevent waste and ensure sustainable use.
The A Leg to Stand On (ALTSO) Rocktoberfest event in Chicago raised over $300,000, contributing to a combined total of over $1 million from the Chicago and New York events. The event featured performances from several bands, including the ALTSO All Stars, August Son (KRM 22), Bad Dads (Cboe), Blue Sky Highway (CME Group), Hive of Scum and Villainy (University of Illinois, Loyola University, Fiducient Advisors, and Alpine Capital Advisors), The Operators (ADMIS), ALTSO All Stars London, Biscuits & Groovy (Bitstamp), Kerosene, The Mixaphors, and Wild Oats Duo (IMC).
Corporate sponsors included ADM Investor Services, Belvedere Trading, CME Group, OCC, Cboe Global Markets, Wedbush Securities, Geneva Trading, BattleFin, Advantage Futures, Barchart, Gate 39, IMC Trading, ION, Janus Henderson Group, KRM22, Macquarie Group, MIAX Exchange Group, Prime Trading, RCM Alternatives, R.J. O'Brien, and XR Trading
Sharon Bowen, chair of the NYSE, director of Intercontinental Exchange and former CFTC commissioner, received the Distinguished Alumni Award from Northwestern University Pritzker School of Law during the school's alumni awards celebration. Bowen was among twenty-one distinguished alumni who were recognized during the program, which recognized their contributions to the Law School community and the legal profession.
Will Barkshire is starting a new position as an adviser at the BPX Digital Securities Exchange, he shared on LinkedIn.
Cboe Global Markets Executive Vice President and COO Chris Isaacson was named by Ingram's Magazine as one of Kansas City's 250 most influential business leaders in 2024. Also named to the list was Dave Cummings, the owner of Tradebot Systems and the founder of BATS Trading. The Chiefs' Patrick Mahomes was also on the list.
Here are the headlines from in front of FOW's paywall from some recent stories: ANALYSIS: ICE eyes 'done-away' US treasury clearing model, BoE sets January 2026 deadline for new bank capital rules, CME confirms US Treasury clearing plans amid competition, ICE hopes to submit US Treasury clearing filing in early 2025, and AI is boosting productivity and why that matters.
If you don't believe me, maybe you might listen to Paul Krugman. While my comments on tariffs were not directed at any particular political party or candidate, the Nobel-winning economist Krugman has strongly criticized former President Donald Trump's proposal to significantly increase tariffs, including a 60% tariff on Chinese imports. In a recent opinion piece reported by Benzinga, Krugman warned that such high tariffs could undo 90 years of economic progress, citing the Smoot-Hawley Tariff Act era as a comparison. He argued that Trump's tariff plan would harm the U.S. economy by raising living costs, reducing exports, and making the economy less efficient, while disproportionately affecting middle- and lower-income families. Krugman also expressed concern that these tariffs could increase global poverty and potentially ignite global conflict.
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:
- Risky-ETF Crew Grabs Wall Street Limelight With Long-Short Bets from Bloomberg.
- The prime brokerage pie is growing, which means bigger slices for everyone from The Trade.
- Ex-Freepoint Gas Trader Sizer Starts Energy-Focused Hedge Fund from Bloomberg. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Media Confidence in U.S. Matches 2016 Record Low
Megan Brenan - Gallup.com
The 32% of Americans who say they trust the mass media "a great deal" or "a fair amount" to report the news in a full, fair and accurate way ties Gallup's lowest historical reading, previously recorded in 2016. Although trust in media currently matches the historical low, it was statistically similar in 2021 (36%) and 2022 (34%). Another 29% of U.S. adults have "not very much" trust, while a record-high 39% register "none at all." This nearly four in 10 Americans who completely lack confidence in the media is the highest on record by one percentage point. It is 12 points higher than the 2016 reading, which came amid sharp criticism of the media from then-presidential candidate Donald Trump -- making the current assessment of the media the grimmest in Gallup's history. In 2016, U.S. adults were most likely to say they had "not very much" trust (41%).
/jlne.ws/4f980bY
****** My confidence in the U.S. is at record highs.~JJL
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Gold Hits Fresh Record on Mideast Fears and Election Uncertainty
Sybilla Gross and Jack Wittels - Bloomberg
Gold extended its rally to a fresh record high, amid tensions in the Middle East and as traders looked toward the US presidential election. Bullion rose as much as 0.6% - having breached the $2,700-an-ounce threshold on Friday - with analysts attributing gains to haven demand amid uncertainty around the outcome of the US election and ongoing worries over the Middle East. Israel has been discussing its attack on Iran after a Hezbollah drone exploded near Prime Minister Benjamin Netanyahu's private home at the weekend.
/jlne.ws/40crAQl
****** Time to buy more gold or to buy puts for the post election sell-off? Another trip to Costco for sure.~JJL
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'Industry,' the Hit Show About Finance, Leaves Bankers Scratching Their Heads; The drama's Wall Street fans spot typos in spreadsheets, puzzle over bank failure caused by 'ESG' investing
Alexander Saeedy - The Wall Street Journal
The blockbuster TV show "Industry" is full of sex, drugs and high finance. But Wall Street types auditing this past season's plot found the details aren't quite adding up. The HBO series has become a hit, with most fans tuning in for the personal drama between the 20-something protagonists. Finance nerds, who have spent hours toiling in the drudgery of banking, are more intrigued by the perplexing operations at the fictional bank Pierpoint & Co.
/jlne.ws/3BUgEwL
****** If I was approached by a bank named Pierpoint & Co., I would immediately think it was a scam bank using traditional industry names to create familiarity. Nice job, HBO!~JJL
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Friday's Top Three
Our top story Friday was Gold Tops $2,700 for First Time to Extend Record-Breaking Run, from Bloomberg. Second was US High-Grade Credit Spreads Fall to Lowest Level Since 2005, also from Bloomberg. Third was the SEC's Alabama Man Arrested for Role in Securities and Exchange Commission X Account Hack, about a man who was arrested for conspiring with others to hack the SEC's X account and prematurely announce the approval of bitcoin Exchange Traded Funds, causing the price of bitcoin to increase by more than $1,000.
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| Lead Stories | How Susquehanna's Jeff Yass mastered the options game; Obsession with odds spawned a trading giant - and shaped the industry's approach to markets
Nicholas Megaw - Financial Times
Jeff Yass used to see options trading as a "game". Now he sees it as a "mission from God". The billionaire co-founder of Susquehanna International Group has claimed he was a socialist during his student days at the State University of New York, but now he talks about capitalism with the zeal of a convert. "Throughout history, the money lenders have always been viewed with suspicion," he told a student group dedicated to the promotion of free markets in 2021. "When you're against finance, you're fundamentally against all human progress." Having flown under the radar for years, Yass has recently gained prominence as a major donor to Republican political candidates and as one of the largest investors in ByteDance, the Chinese owner of TikTok. But despite the newfound scrutiny, less attention has been paid to the trading business at the heart of SIG's "mission".
/jlne.ws/3BTE9WN
Behind Many Powerful Women on Wall Street: A Doting 'Househusband'; More men are staying home to facilitate the complex juggle of family life and their wives' high-powered careers
Miriam Gottfried - The Wall Street Journal
Suzanne Donohoe, a top executive at the private-equity firm EQT, started the month of September with a 10-day business trip through Asia and Europe. Back in New York, her husband, Matt Donohoe, was helping their three teenagers begin a new school year. That was no simple task. Though the Donohoe children are close in age, each goes to a different school and has different extracurricular activities. Matt drove their 13-year-old to hockey practices in New Jersey and took all three children to Boston for a tournament. In between, there were groceries to buy, meals to prepare and homework to assist with.
/jlne.ws/3UhF49z
Why Chinese Are Rushing Into a 'Casino' Stock Market; Steps to bolster the economy have set off a stock buying frenzy. Our columnist spoke to Chinese investors about why they are jumping in knowing the risks.
Li Yuan - The New York Times
They call China's stock market a "casino," yet they are rushing in. They are betting money that the government really does want to finally crawl out of the hole it has dug. They are speculating, looking for short-term gains, with a great degree of uneasiness. A flurry of policies by Beijing in recent weeks meant to stimulate the domestic economy has spurred China's middle class to invest more in stocks, prompting the country's biggest rally since 2008.
/jlne.ws/3YgxpJN
Why the Oil and Gas Industry Is So Afraid of Kamala Harris
Jonathan Mingle - The New York Times
When Donald Trump invited about 20 prominent oil and gas executives to dine with him at Mar-a-Lago in April, he made a breathtakingly corrupt proposal: If they raised a billion dollars to help him retake the White House, he would roll back any policy they didn't like when he took office. Several fossil fuel companies and their executives have since answered his call with brio, becoming among the top donors to the Trump campaign and Trump-aligned super PACs.
/jlne.ws/3Uein6g
Trump's trillion-dollar tax cuts are spiralling out of control; His zany promises would blow up the deficit
The Economist
For American policy wonks, the final stretch of the presidential election has given rise to a new parlour game. What is the next tax that Donald Trump will promise to cut? The Republican candidate has trotted out a range of pledges, from no taxes on overtime work to no taxes on retirement benefits. Last week alone he proposed three new exemptions, including making interest on car loans tax-deductible. It is easy to figure out what Mr Trump hopes to gain. Yet the economic implications are dispiriting: not just a bigger fiscal deficit but a much messier tax code.
/jlne.ws/3A7gy4a
Why the west should be paying more attention to the gold price rise; Buying of the precious metal reflects rising interest in alternatives to the dollar-based financial system
Mohamed El-Erian - Financial Times (opinion)
Something strange has happened to the price of gold over the past year. In setting one record level after the other, it seems to have decoupled from its traditional historical influencers, such as interest rates, inflation and the dollar. Moreover, the consistency of its rise stands in contrast to fluctuations in pivotal geopolitical situations. Gold's "all-weather" characteristic signals something that goes beyond economics, politics and higher-frequency geopolitical developments. It captures an increasingly persistent behavioural trend among China and "middle power" countries, as well as others. And it is a trend that the west should be paying greater attention to.
/jlne.ws/40dS9EP
BNY to launch 'done away' UST and repo clearing service; Service aims to offer collateral efficiencies for tri-party repo, and create much needed clearing capacity
Bernard Goyder - Risk.net
BNY is preparing to launch an unbundled US Treasury cash and repo clearing service in 2025, which it says can offer cost savings for tri-party repo trades, and ease a looming capacity crunch when clearing mandates go live. Mandatory interdealer cash Treasury clearing is to start by the end of 2025, and repo clearing for most market participants slated to begin by June 30, 2026. But concerns are rising that dealer capacity for 'done-with' clearing - where the dealer that executes the trade also
/jlne.ws/4f8v8Y7
Saxo Bank Is Said to Draw Altor-Led Group, Interactive Brokers; Altor, Centerbridge have submitted a non-binding bid for Saxo; Interactive Brokers has expressed initial interest in the firm
Sara Sjolin and Jan-Henrik Foerster - Bloomberg
Interactive Brokers Group Inc. and a consortium of Altor Equity Partners and Centerbridge Partners are among those that have shown initial interest in acquiring Denmark's Saxo Bank A/S, according to people with knowledge of the matter. Investors led by Altor and Centerbridge have submitted a non-binding bid for the Danish brokerage firm, the people said. Deliberations are ongoing and there are other potential bidders interested in Saxo Bank, according to the people. Saxo Bank could still decide against a transaction, they added.
/jlne.ws/3UjhtFL
Hong Kong Summit Draws Top Bankers as City Seeks Revival; JPMorgan's Pinto, Morgan Stanley's Pick are expected to attend; November summit seen as gauge of HK's international status
Kiuyan Wong and Denise Wee - Bloomberg
Hong Kong is expected to host the world's top bankers in the third edition of an annual summit intended to boost the city's status as a global financial hub. More than 300 attendees are expected as the Hong Kong Monetary Authority next month will host a who's who of finance at the Grand Hyatt Hotel, a larger venue than the Four Seasons where it was held in previous years.
/jlne.ws/4dSbmPv
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Anti-drone drone developed by Ukraine to take out Iranian-designed kamikazes
Joe Barnes - The Telegraph
Ukraine is developing a drone capable of intercepting Russia's Iranian-designed kamikaze drones, The Telegraph can disclose. The new weapon will be deployed to chase down and intercept Shahed-136s instead of conventional air-defence munitions to protect Ukrainian cities against Russian barrages. This is the first time a photograph and details of the classified "Sting" first-person view (FPV) Shahed-hunter have been made public.
/jlne.ws/4eNYR99
Ukraine is making a new drone called Sting that flies faster than 100 mph to kill Russia's Iranian Shahed drones
Matthew Loh - Business Insider
Ukrainian drone maker Wild Hornets is developing an interceptor designed to counter Russia's Shahed-136 loitering munitions, The Telegraph reported. Dubbed the Sting, the new first-person view drone is built to fly faster than 100 miles per hour at an altitude of about 10,000 feet. The Telegraph also reported that an artificial intelligence targeting system is in the works, though the Sting now still needs a pilot. A photo published by the outlet shows a quadcopter mounted with a bulky explosive payload and a camera dome.
/jlne.ws/3YfJmiV
Russian forces storming town in eastern Ukraine, bloggers say
Reuters
Russian forces are fighting street-to-street battles with Ukrainian troops in the outskirts of the eastern Ukrainian town of Selydove as Moscow's forces push to gain control over the whole of the Donbas region, according to pro-Russian bloggers. Russian forces, which President Vladimir Putin ordered into Ukraine in February 2022, advanced in September at their fastest rate since March 2022, according to open source data, despite Ukraine taking a part of Russia's Kursk region.
/jlne.ws/406NOmS
Ukraine launches more than 100 drones in large-scale attack on western Russia
Darryl Coote - United Press International
The Kremlin said Sunday its air defense systems downed more than 100 Ukrainian drones overnight, as Kyiv claims its attacks struck an important munitions plant and a military airfield in western Russia. The Kyiv strikes mark one of Ukraine's largest assaults on Russia during the more than 2 1/2-year war. Moscow's Ministry of Defense announced the Ukrainian assault on Telegram, claiming all 110 drones fired by Kyiv were intercepted and destroyed.
/jlne.ws/3YuhqcB
Ukraine attacks forced Black Sea Fleet to move warships from Sevastopol, Russian official says
Reuters
Russia's Black Sea Fleet has been forced to move many warships from the naval base of Sevastopol on the Crimean peninsular, which Russia annexed in 2014, due to attacks by Ukraine, a Russian-installed official was quoted as saying on Sunday. The remarks by Dmitry Rogozin, a Russian-installed senator for the Russian-controlled Zaporizhzhia region and a former head of Russia's space agency, are the first Russian official confirmation that the fleet has had to move from Sevastopol.
/jlne.ws/4hs8HiL
Russia hits Kyiv with drone attacks for second night in a row, Ukraine says
Reuters
Russia attacked the Ukrainian capital Kyiv with several waves of drones for the second night in a row, damaging residential buildings and injuring at least one civilian, Ukrainian officials said on Monday. Two civilian were killed and 15 were injured in a separate ballistic missile attack on Zaporizhzhia in southeastern Ukraine on Monday morning, local authorities said. The Ukrainian military said air defences downed 59 out of 116 Russian drones launched overnight. The military lost track of 45 drones that likely fell into Ukrainian territory, it said.
/jlne.ws/3AiLVJ7
Ukraine's Zelenskiy seeks strong reaction to North Korean involvement in war
Reuters
President Volodymyr Zelenskiy said on Sunday he was seeking a strong reaction from countries who have acknowledged that North Korea is becoming more involved in Russia's more than 2-1/2-year-old war against Ukraine. Speaking in his nightly video address, Zelenskiy said there was ample satellite and video evidence that North Korea was sending not only equipment to Russia, but also soldiers to be prepared for deployment.
/jlne.ws/3YhuTmV
Russian victory would bring 'chaos': French FM
AFP
French Foreign Minister Jean-Noel Barrot warned in Kyiv on Saturday that if Russia defeated Ukraine on the battlefield it would sow "chaos" in the international system. He spoke the same day Russian forces announced they had captured another village in eastern Ukraine as they continued their steady advance.
/jlne.ws/4dThgQA
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel Hones Plans to Attack Iran After Attempt on Netanyahu
Ethan Bronner and Galit Altstein - Bloomberg
A day after a Hezbollah drone penetrated Israel's air defenses and exploded next to the private home of Prime Minister Benjamin Netanyahu, he held a series of meetings with top security aides to discuss the next attack on Iran. The planning for such an assault has been underway for three weeks since Iran fired some 200 ballistic missiles at Israel following Israeli assassinations of leaders of Iran-sponsored militias.
/jlne.ws/3A550P4
Israel strikes Hizbollah-linked lender in Lebanon; Attacks target militant group's economic 'system and strongholds' particularly those of al-Qard al-Hassan
Andrew England and Neri Zilber and Raya Jalabi and Chloe Cornish - Financial Times
Israel launched a wave of air strikes across Lebanon after its military said it would target Hizbollah-affiliated financial institutions, widening its offensive against the militant group hours before a top US official arrived in Beirut for ceasefire talks. An Israeli intelligence official said the strikes were intended to attack Hizbollah's economic "system and strongholds", with a focus on branches of the al-Qard al-Hassan association. Lebanese state media reported on Monday that Israel had struck 11 times in Beirut's already heavily bombed southern suburbs, where Hizbollah had its headquarters, and in other locations across the country.
/jlne.ws/3A4ES6U
Israel Threatens More Strikes Against Hezbollah Finances; The Israeli military said it had conducted dozens of attacks overnight on the militia's financial arm in Lebanon. Two top U.S. diplomats were working to calm Israel's conflicts with Hezbollah and Hamas.
Euan Ward - The New York Times
Israel on Monday threatened further strikes on Hezbollah after attacks overnight that it said had targeted the armed group's financial infrastructure and that set off large fires in the Lebanese capital. The strikes came after the Israeli military issued more than two dozen evacuation warnings in areas across Lebanon, including in the Dahiya, a densely populated, Hezbollah-dominated neighborhood south of Beirut. The extent of any casualties was not immediately known. The Israeli military said it had struck branches of Al-Qard al-Hasan, a financial institution that has been under U.S. sanctions over accusations that it finances terrorism by Hezbollah, the Iranian-backed Lebanese militia.
/jlne.ws/4h6ZtZ3
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | CDS clearing rates hit 71% high around September iTraxx roll; CFTC data shows tilt away from bilateral settlement mainly in Europe-referencing instruments
Lorenzo Migliorato - Risk.net
The US clearing rate for credit default swaps jumped to a record 71% in the third week of September, coinciding with the roll date for several of Markit's CDS indexes. Derivatives notional of $4.14 trillion was being funnelled through a central counterparty as of September 20, up 31.5% from the previous week. Over the same period, non-cleared notional slid 12.3% to $1.69 trillion.
/jlne.ws/3BIzjeH
SIX Annual Future of Finance Study Reveals, Financial Executives Optimistic
BME-X
C-suite executives across the global banking and finance sector are displaying cautious optimism around the economic outlook, with a majority recognizing that their organizations will need to make adjustments in order to realize growth, according to new research from Swiss and Spanish stock exchanges operator SIX. Over half (53%) of senior finance executives globally expect the economic environment to improve over the coming year, while a further 40% expect a continuation of current market conditions. That is according to the annual Future of Finance Study by SIX - the annual survey that canvasses the opinions of senior executives across 293 financial institutions across the world.
/jlne.ws/4eWZ9KL
The Johannesburg Stock Exchange Proudly Announces 2024 Investment Challenge Winners
JSE
The competition once again brought together individuals who share a competitive spirit, willingness to learn and nerves of steel as they navigated managing investment portfolios comprising financial instruments listed on the JSE. In 2024, the challenge attracted an impressive 49 000 participants, following from 29 000 participants in the previous year. This tremendous growth in participation has provided further motivation for the JSE to expand the Investment Challenge footprint to more South African schools and institutions of higher learning.
/jlne.ws/3UhaP2M
Trading Fees 24 264 Renewal of The Two Ferrous Liquidity Provider Programmes
LME
This Notice (the "Notice") announces the renewal of the two new Ferrous Liquidity Provider Programmes (jointly the "Ferrous LP SC003 & HC003" programmes): (a) the Ferrous Liquidity Provider SC003 ("Ferrous LP SC003") programme; and (b) the Ferrous Liquidity Provider HC003 ("Ferrous LP HC003") programme.
/jlne.ws/4e0S8al
MCX's quarterly operational revenue up 73% for Q2 FY24-25 (Y-o-Y) at Rs. 285.58 crores
MCX
Multi Commodity Exchange of India Ltd (MCX), India's largest Exchange in the Commodity Derivatives Market segment, announced its unaudited financial results for the 2nd Quarter and half-year ended September 30, 2024.
/jlne.ws/3NzLMUQ
OCC Stories: Bailey Moberly on Celebrating Culture; Bailey Moberly is part of the Software Development Test team supporting ENCORE risk management. In her OCC story, she appreciates how OCC celebrates each colleague's unique culture. Read it below!
OCC
Since joining OCC more than five years ago, I have watched the company become more inclusive in its activities. OCC provides a welcoming space for coworkers to learn about different cultures and honor them within the workplace. The uniqueness of each and every employee's culture is something to be highlighted. OCC does a great job of recognizing cultural traditions, and it's wonderful to see how people of different backgrounds and lifestyles come together to celebrate. I have learned a lot about different cultures and my coworkers, which makes it even more exciting to be able to mark important events with them.
/jlne.ws/3AfeLdm
Toronto Stock Exchange and B3 Sign Memorandum of Understanding
TMX
TMX Group's equity exchanges, Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV), and B3 (Brazil Stock Exchange), today announced the signing of a non-binding Memorandum of Understanding (MoU), where TSX/TSXV and B3 agree to create more public market opportunities for investors and entrepreneurs to help power the Brazilian markets. Under the scope of the MoU, TSX/TSXV and B3 will explore a Brazil-based solution that builds on Canadian expertise around mining, energy and renewable energy industries, among other things. The project's intention is to join efforts to build an ecosystem that may facilitate the dual listing of mineral research companies based in Brazil. By combining capabilities, companies may benefit from accessing the national and international investor base in Brazil and the public markets in Canada.
/jlne.ws/3YHgORb
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | AI search start-up Perplexity targets $8bn valuation in new funding round; Investor frenzy over artificial intelligence continues after OpenAI valued at $150bn in latest fundraising
Cristina Criddle and George Hammond - Financial Times
Perplexity, an artificial intelligence-powered search engine aiming to take on Google, is in funding discussions for the fourth time this year, looking to raise up to $1bn at more than double its previous valuation as an investor frenzy for AI start-ups shows little sign of abating. Weeks after OpenAI sealed one of the largest fundraisings in Silicon Valley history, Perplexity had been overwhelmed by unsolicited interest from new investors, according to multiple people familiar with the situation.
/jlne.ws/3Uha1Li
TikTok owner sacks intern for sabotaging AI project
Joao da Silva - BBC News
TikTok owner, ByteDance, says it has sacked an intern for "maliciously interfering" with the training of one of its artificial intelligence (AI) models. But the firm rejected claims about the extent of the damage caused by the unnamed individual, saying they "contain some exaggerations and inaccuracies". It comes after reports about the incident spread over the weekend on social media. The Chinese technology giant's Doubao ChatGPT-like generative AI model is the country's most popular AI chatbot.
/jlne.ws/4fdQ7bU
FT Collections: AI Exchange
Financial Times
In this new monthly series, running alongside our existing Tech Exchange dialogues, FT journalists talk to the scientists, developers and business leaders exploring ever more applications for artificial intelligence, in every aspect of our lives.
/jlne.ws/48jHDxY
How AI groups are infusing their chatbots with personality; OpenAI, Google and Anthropic have developed teams focused on improving 'model behaviour'
Cristina Criddle - Financial Times
Leading artificial intelligence companies that are racing to develop the cutting-edge technology are tackling a very human challenge: how to give AI models a personality. OpenAI, Google, and Anthropic have developed teams focused on improving "model behaviour", an emerging field that shapes AI systems' responses and characteristics, impacting how their chatbots come across to users. Their differing approaches to model behaviour could prove crucial in which group dominates the burgeoning AI market, as they attempt to make their models more responsive and useful to millions of people and businesses around the world. The groups are shaping their models to have characteristics such as being "kind" and "fun", while also enforcing rules to prevent harm and ensure nuanced interactions.
/jlne.ws/4hakMJ5
Microsoft launches Copilot AI features as investors look for signs artificial intelligence is paying off
Daniel Howley - Yahoo Finance
Microsoft (MSFT) is continuing to find ways to monetize its massive investments in artificial intelligence with an increasing array of software offerings for enterprises and consumers. The company's latest effort is what it calls autonomous agents and comes as Wall Street prepares to scrutinize tech companies' AI spending and growth. During its AI Tour event in London on Monday, which included keynotes by CEO Satya Nadella and CMO of Copilot at Work Jared Spataro, Microsoft announced that the new software will be available for public preview next month.
/jlne.ws/3Y6S0jG
Microsoft to let clients build AI agents for routine tasks from November
Aditya Soni - Reuters
Microsoft will allow its customers to build autonomous artificial intelligence agents from next month, in its latest push to tap the booming technology amid growing investor scrutiny of its hefty AI investments. The company is positioning autonomous agents - programs that need little human intervention unlike chatbots - as "apps for an AI-driven world" that can handle client queries, identify sales leads and manage inventory.
/jlne.ws/4h7lg2J
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| Cybersecurity | | Top stories for cybersecurity | U.S. cybersecurity chief says election systems have 'never been more secure'
Emma Bowman - NPR
Amid widespread concerns of outside interference influencing the results this year's presidential election, the head of the country's cybersecurity agency says election infrastructure is more secure than ever. State and local election officials across the country have made big improvements to strengthen both physical and cyber security at polling and voting locations to preserve election integrity, said Jen Easterly, the director of the U.S. Cybersecurity and Infrastructure Security Agency, in an interview with Weekend Edition.
/jlne.ws/3A7oN08
New Cybersecurity Warning As 1,000 Elite Hackers Embrace AI
Davey Winder - Forbes
For the past eight years, the Bugcrowd hacking platform has surveyed its users to produce a report called "Inside the Mind of a Hacker" which reveals the year-on-year evolution of the ethical hacker. From hacker community neurodiversity to the rise of the hacker as influencer, many surprising aspects of the hacking life have emerged. This year, with some 1,300 hackers taking part, the biggest surprise is likely just how many are embracing AI as a tool, tactic and threat.
/jlne.ws/48keSkv
How Russia's Spies Hacked the Entire Nation of Georgia; With an election this week, documents seen by Bloomberg expose the extent of Moscow's infiltration of the former Soviet state.
Alberto Nardelli and Ryan Gallagher - Bloomberg
Russian spies were watching Georgia's government and major companies in a comprehensive espionage and hacking campaign over years, scooping up information and gaining powers to potentially sabotage critical infrastructure. The Foreign Ministry, Finance Ministry, central bank and key energy and telecommunications providers were penetrated, according to documents and technical reports seen by Bloomberg News. Russian intelligence accessed Georgian electricity companies, oil terminals, media platforms and government departments between 2017 and 2020.
/jlne.ws/4f9Ikfm
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| Cryptocurrencies | | Top stories for cryptocurrencies | Crypto has designs on real estate; Buying blockchain-listed 'slices' of properties is a nascent, niche and troubled market. Can it find its feet beyond the crypto crowd?
Nikou Asgari - Financial Times
Retired banker Rick Phillips likes investing in property. But instead of putting down a deposit for a place he has seen, or investing money into funds listed on the stock market, the cryptocurrency enthusiast chooses to buy digital tokens that represent ownership of physical properties. The Los Angeleno is one of a small number of investors testing the waters in property tokenisation, a nascent way to invest in rental real estate that gives would-be buyers the ability to hold a digital sliver of a bricks-and-mortar building. So far, Phillips has invested $20,000 across several properties.
/jlne.ws/3Nzk3DC
Bitcoin Miners Take Divergent Paths Six Months After Revenue 'Halving'; Shares of firms keeping tokens they mint are lagging Bitcoin; Best performers are spending on developing AI data centers
David Pan - Bloomberg
Six months after rewards for validating transactions on the Bitcoin network were reduced by half, crypto mining companies are choosing between two divergent paths to remain viable. Public miners including MARA Holdings, Riot Platforms and CleanSpark are keeping the Bitcoin they produce with the expectation that the digital asset will rise in value. At the same time, an increasing number of companies are spending more on developing data centers that power artificial intelligence applications.
/jlne.ws/4f3Jmtu
Stripe acquires stablecoin platform Bridge for $1.1 billion in crypto's largest acquisition: TechCrunch founder
Zach Abrams - The Block
Fintech company Stripe has finalized its largest acquisition to date, snapping up stablecoin platform Bridge in a deal valued at $1.1 billion, according to a post on X from TechCrunch founder Michael Arrington. Bridge, founded by entrepreneurs Sean Yu and Zach Abrams (no relation to this reporter), provides software tools that help companies accept payments in stablecoins. The founders had previously sold a Venmo competitor called Evenly to Block in 2013; Abrams is also a former senior Coinbase employee.
/jlne.ws/3A813sL
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| Politics | | An overview of politics as it relates to the financial markets | Power, as well as price, matters in a well-run economy; That's the lesson to take from both the founding of the Bretton Woods system 80 years ago and the Biden administration today
Rana Foroohar - Financial Times
Joe Biden may be a one-term president, but his administration has changed the global political economy in ways that will continue to resonate long after he is gone. In particular, his trade policy put an end to the era of laissez-faire globalisation, which tended to favour the unfettered interests of the largest corporations and state actors, and ushered in a post-neoliberal era in which labour, natural resources and the market-distorting effects of concentrated power are once again major concerns for policymakers.
/jlne.ws/3zXVzku
What the US Election Means for Markets
Esha Dey and Ye Xie - Bloomberg
One of the most crucial events of the year - the US presidential election on Nov. 5 - is days away. For Wall Street, the race between Vice President Kamala Harris, the Democratic candidate, and Republican former President and nominee Donald Trump adds a layer of volatility at a time when uncertainty about interest rates, the labor market and conflicts in Europe and the Middle East are already testing investor nerves. While polls have the two candidates neck-and-neck, so far the uncertainty isn't bothering investors. The S&P 500 Index has inched ever higher this year, notching 47 record highs in 2024 - and stocks may get another boost after the election, as has historically been the case.
/jlne.ws/4hdTrpd
Populism Is Bad for Economic Growth; By proposing trade barriers and tariffs, politicians are promising a return to an idealized past, but successful economic policy is focused on the future.
Allison Schrager - Bloomberg Opinion
The degrowth movement, which had a moment a few years ago, is over - and not a moment too soon. As nations in Europe and North America face mounting debt and aging populations, politicians are again talking about how to increase economic growth. It is their only hope. There's only one problem: No one is advocating policies that will actually work. Doing that would require embracing change, which is the last thing any politician beholden to populism wants to do. The best recent illustration is former President Donald Trump's interview last week with Bloomberg News Editor-in-Chief John Micklethwait. Trump argued that there was no need to worry about the debt created by his spending and tax-cutting plans because economic growth would bring in more government revenue. At the center of his plan are very large tariffs, which he argued would increase growth by encouraging more companies to produce goods in the US.
/jlne.ws/3UFzLRR
Paul Krugman Warns Trump's Tariff Plan Could Rewind Economic Progress 90 Years and Ignite Global Conflict: 'He Sees Everything In Terms Of Winners, Losers And Punishment'
Shivdeep Dhaliwal - Benzinga via Yahoo Finance
In a recent interview, former President Donald Trump advocated for a significant increase in import tariffs, a move that was slammed by Nobel winning economist Paul Krugman in a recent opinion piece. What Happened: Trump, known for imposing substantial tariffs during his presidency, is now suggesting tariffs as high as 20 percent, including a 60 percent tariff on imports from China. Economists have voiced their opposition to these proposals, warning that such high tariffs could harm the economy, according to Krugman in his New York Times column. He said he shared a similar view.
/jlne.ws/3Yi3Ac3
Trump Ratchets Up Threats on the Media; Presidents are not all-powerful, but, if elected, Donald Trump would have some influence with the federal regulators who oversee major television networks.
Michael M. Grynbaum and David McCabe - The New York Times
Threatening the news media is nothing new for former President Donald J. Trump. He has accused major news outlets of defamation, blocked journalists from rallies and White House events, goaded followers into profane chants about CNN and popularized the term "fake news," now embraced by autocrats around the world. Even by those standards, though, his latest anti-media obsession - stripping television networks of their ability to broadcast the news because of coverage he doesn't like - stands out.
/jlne.ws/4fb7f2e
Exclusive-EU set to choose firm for critical minerals joint buying platform
Eric Onstad - Reuters
The European Union, rushing to develop a 9 million euro joint purchasing mechanism for critical minerals and energy, is choosing between eight bidders vying to develop a platform, documents showed and sources with direct knowledge told Reuters. The bloc's rationale for pooling together buying orders is that it would hand participants more leverage to achieve more favourable deals and prices for critical minerals essential for the green transition that trade in thin and opaque markets often dominated by China.
/jlne.ws/48e0kD6
Kremlin says Moldova's elections were not free and results raise many questions
Reuters
/jlne.ws/3UfoJCg
Putin hosts a summit in a bid to show the West it can't keep Russia off the global stage
Dasha Litvinova - Associated Press
/jlne.ws/4dUPXW1
Former Russian oil executive found dead after 'fall'
The Telegraph
/jlne.ws/3C1SP5X
Hong Kong to Bring In Measures to Boost Gold Trading, Chan Says
Jeanny Yu - Bloomberg
/jlne.ws/3UjHCUN
India seeks critical mineral agreement with US, hopes for a trade pact, minister says
Shivangi Acharya - Reuters
/jlne.ws/3UiTiXM
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| Regulation & Enforcement | | Stories about regulation and the law. | Europe markets watchdog bids to become EU's version of SEC; Verena Ross calls for more centralised powers in response to appetite for stronger capital markets and investment in bloc
Martin Arnold - Financial Times
The EU's financial markets watchdog wants expanded powers to oversee major stock exchanges and other critical parts of the bloc's financial infrastructure, as it bids to become a European version of the US Securities and Exchange Commission. Verena Ross, chair of the European Securities and Markets Authority, said "there is clearly a political appetite" in the newly appointed European Commission to centralise more EU financial market supervision as part of a renewed push to revive the region's struggling capital markets.
/jlne.ws/3Uef0fC
Chinese Woman Pleads Not Guilty to Laundering Bitcoin in UK Case; UK Prosecutors charged Yadi Zhang with money laundering; Trial is set to begin September 2025 at a London court
Upmanyu Trivedi and Katharine Gemmell - Bloomberg
A Chinese woman pleaded not guilty to charges of laundering Bitcoin at a London court. Zhimin Qian, also known as Yadi Zhang, was arrested in April and charged with two counts of money laundering. The Criminal Prosecution Service alleges that on or before April 23 she possessed and transferred illegal cryptocurrency. A man, Seng Hok Ling, was charged alongside her and pleaded not guilty to a charge of entering into a money laundering arrangement while knowing or suspecting that it was criminal property.
/jlne.ws/40dRBPh
Brazil Regulator Accuses Ex-Americanas CEO of Insider Trades; Gutierrez among eight accused of using privileged information; 'Robust' evidence of impropriety, securities commission says
Travis Waldron - Bloomberg
Brazil's securities regulator accused former Americanas SA chief executive officer Miguel Gutierrez and seven others of insider trading, alleging they improperly used privileged information before the disclosure of a major accounting scandal at the retail giant. The country's securities and exchange commission said in a statement late Friday that it gathered "robust" evidence supporting the allegations as part of an investigation that has now concluded. Gutierrez and the other executives will now have the chance to respond, it said.
/jlne.ws/4eP77p7
SIFMA Annual Meeting
SEC
SEC Chair Gary Gensler will deliver remarks and participate in a one-on-one conversation with SIFMA President and CEO Kenneth Bentsen at the SIFMA Annual Meeting in New York.
/jlne.ws/4hd1Edk
SEC Obtains Judgments Against Defendants in a Fraudulent Microcap Manipulation Scheme
SEC
The Securities and Exchange Commission announced today that, on October 17, 2024, the U.S. District Court for the District of Massachusetts entered final judgments against California resident Brian Quinn and New York resident David Skriloff in an SEC case alleging that they participated in a fraudulent scheme to profit from the manipulation and illegal sale of stock of a publicly traded company, Environmental Packaging Technologies Holdings, Inc. ("Environmental Packaging"). Among other things, they were each ordered to pay $230,464 in civil penalties. The court previously entered judgments against four other defendants, including a judgment against Swiss resident Daniel Lacher in 2022 that, among other things, ordered him to pay a total of over $479,000 in disgorgement of ill-gotten gains, prejudgment interest, and civil penalties.
/jlne.ws/4eP9c4E
ASIC cancels Australian credit licence of Emmanuel Katsoulis and suspends Australian credit licence of Peter Wormington
ASIC
ASIC has suspended Melbourne-based credit licensee Peter Wormington for a period of four months and cancelled the Australian credit licence of Melbourne-based Emmanuel Katsoulis. Mr Wormington had been expelled from the Australian Financial Complaints Authority due to non-payment of fees and has failed to pay industry funding levies owed to ASIC. Mr Wormington's licence suspension took effect on 11 October 2024.
/jlne.ws/3UiGYqG
Changes to OTC derivative transaction reporting are now in effect
ASIC
Commencing today, the ASIC Derivative Transaction Rules (Reporting) 2024 (2024 Reporting Rules) replace the ASIC Derivative Transaction Rules (Reporting) 2022.
/jlne.ws/3NwT4IK
ASIC proposes updates to RG 51 Applications for relief and RG 108 No-action letters
ASIC
ASIC is seeking industry feedback on proposed updates to Regulatory Guide 51 Applications for relief (RG 51) and Regulatory Guide 108 No-action letters (RG 108). ASIC is updating RG 51 and RG 108 to reflect our current regulatory approaches to both applications for relief and no-action letters, to incorporate relevant additional guidance and amend outdated references. We are not proposing to make significant changes to the factors that we consider when assessing applications.
/jlne.ws/4eP3xLH
Cryptoasset registrations: building strong foundations
Val Smith - FCA
Our standards are setting the stage for a thriving, competitive crypto sector in which people and our financial markets' integrity are protected. We often get asked about the number of firms we've registered, as well as the process itself. Some have suggested we're too tough on crypto firms, setting the bar too high for registration. It's even been said our approach could stunt innovation and call into question the UK's position as a global financial leader.
/jlne.ws/4feIsdI
FCA fines Volkswagen Finance £5.4m over treatment of customers in financial difficulty
FCA
The FCA has fined Volkswagen Financial Services (UK) Limited (Volkswagen Finance) £5,397,600 for failing to treat its customers in financial difficulty fairly. Volkswagen Finance has agreed to pay over £21.5m in redress to around 110,000 customers who may have suffered harm because of its failings. Between 1 January 2017 and 31 July 2023, Volkswagen Finance failed to understand customers' individual circumstances or to provide support tailored to their needs. This meant that, in some cases, Volkswagen Finance took cars away from vulnerable customers without considering other options. This risked people being put in a worse position, particularly if they relied on their car to travel to work. Volkswagen Finance's failings were compounded by poor templated and automated communications.
/jlne.ws/3YxwiqP
SFC fast-tracks simple fund authorisation to bolster Hong Kong market appeal
SFC
The Securities and Futures Commission (SFC) will expedite the processing of applications from simple investment funds by launching the Fund Authorisation Simple Track (FASTrack) on 4 November 2024. Under FASTrack, the SFC aims to grant fund authorisations within 15 business days after receiving complete and quality submissions from applicants (Notes 1 and 2). The new approach will cover simple funds from jurisdictions which have mutual recognition of funds (MRF) arrangements with the SFC (Notes 3 and 4).
/jlne.ws/3BMPEz2
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Popular CNY carry trade starts to lose traction; Investors seek unwinds of China govvies swapped into USD after FX and rates movements dent its appeal
Jiefei Liu - Risk.net
Foreign investors into a popular onshore Chinese government bond carry trade have started to unwind their positions, after foreign exchange moves and US rate cuts made the positions less attractive. Foreign investors have been piling money into China's short-term debt market since the last quarter of 2023, using cross-currency swaps to swap the cashflows into US dollars and netting a yield pick-up of 100 basis points or more over US secured overnight financing rate (SOFR) swaps.
/jlne.ws/3zUnbHe
How Creative Tactics by Junk Borrowers Are Forcing Creditors to Close Ranks
Giulia Morpurgo and Irene Garcia Perez - Bloomberg
The end of rock-bottom interest rates has made it harder for struggling companies to access new funds. So they've been seeking out new ways to deal with their debts. Often, this means exploiting loopholes in their bond or loan documentation to favor one set of creditors over another. The company survives, but lenders left out in the cold can end up with heavy losses. Alarmed at this turn of events, debt investors are circling the wagons. Many have been signing cooperation agreements that force them to act in concert and negotiate better terms as a whole, rather than go off and make a side-deal with the company and its owners.
/jlne.ws/3YdhRqq
Hazard-Obsessed Stock Investors Risk Missing a Year-End Rally; Money seen coming in from volatility control funds, buybacks; Volatility, skew signal hedging for US election, Fed, earnings
Jan-Patrick Barnert - Bloomberg
Investors laser-focused on the risks looming in the next few weeks may be left unprepared if their worst fears don't come to pass. Volatility is elevated for options on stocks, bonds and currencies alike as investors pay up for protection. The risks are clear: a hotly contested US election, interest-rate decisions in the US and Europe, the threat of a wider Middle East conflict and quarterly earnings. In the stock market, implied volatility is outpacing actual swings, and puts protecting against a selloff are favored over bullish calls.
/jlne.ws/4hh3ObV
Why Mortgage Rates Went Up After the Fed's Big Cut; What's the link between benchmark rates and home loans?
Joe Weisenthal and Tracy Alloway - Bloomberg
On September 18, the Federal Reserve kicked off the cutting cycle by reducing overnight rates by 50 basis points. Since then, mortgage rates have gone higher. This is not obviously an intuitive thing to happen. The point of a rate cut is to stimulate the economy by reducing the cost to borrow. And people generally know that interest rates and mortgage costs are linked. Well, it turns out they are linked, but not directly. And certainly not in some linear manner. On this episode of the podcast, we speak with Tom Graff, the CIO of the wealth management firm Facet, and a long-time trader in the fixed income space. We talk about the factors that influence mortgage rates, why the spread between a 30-year fixed and a 10-year Treasury fluctuates over time, and how rate cuts can be priced in before they even happen. We also talk about what we'll need to see for mortgage rates to move sustainably lower.
/jlne.ws/3YeV8ub
Leaders in Trading 2024: Industry Person of the Year shortlist revealed; The winner of the Industry Person of the Year Award 2024 will be decided by a live industry vote that will take place at Leaders in Trading on 7 November.
Editors - The TRADE
The TRADE is delighted to announce the shortlisted nominees for the Industry Person of the Year Award 2024. As one of the most anticipated awards of the year, the recognition is designed to celebrate those individuals who have made a significant impact on their own organisation and, equally, the industry externally, with a commitment to bettering and future proofing the markets for years to come. Shortlisted individuals are repeated contributors to discussion whether that be through panels, associations or schemes to support the next generation joining the financial services industry.
/jlne.ws/4f3g65Y
So You Have Decided to Buy Bonds. Here Are Six Charts Showing Your Options; Plain-vanilla Treasury bonds are now pricey, but there are alternatives
Jon Sindreu - The Wall Street Journal
With deposit rates starting to slide below 4%, and 10-year Treasury yields rising above that rate for the first time in two months, you may want to shift from cash to fixed income before it is too late. Thanks to traders becoming more realistic about interest-rate cuts, Treasurys are now offering a return that is clearly above the Federal Reserve's long-run interest-rate expectations. This may be enough for income-minded investors, but there isn't a huge scope for capital gains. It may be time for less-obvious strategies.
/jlne.ws/4fcUEvu
Wall Street Braces for a Lost Decade - But Not Yet; Market strategists think the increasingly high valuation of the S&P 500 will squeeze out further room to run
John Authers - Bloomberg Opinion
The Long and Short of It
Even the bulls were wrong about 2024. The S&P 500 closed the week at yet another record, and it's now up 23% for the year. Wall Street has institutional reasons to be bullish, but even sell-side strategists have been surprised. This is how it's moved, along with the average prediction for year-end, as compiled by Bloomberg colleague Lu Wang. In January, strategists expected the world's most tracked index to be flat for the year. They've raised their estimates again and again, and the S&P 500 has outpaced them:
/jlne.ws/3BU14RE
JPMorgan Figures Show Surging Dollar Demand as US Election Nears
Anchalee Worrachate - Bloomberg
/jlne.ws/406Xlua
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | The Climate Short: Hedge Funds Pile Up Huge Bets Against Green Future; The $5 trillion industry's move against clean energy and green technology may prove more damaging than political pushback over "woke" capitalism.
Sheryl Lee, Ishika Mookerjee and Christopher Udemans - Bloomberg
The fast money on Wall Street has taken a close look at key sectors in the green economy and decided to bet against them. Despite vast green stimulus packages in the US, Europe and China, more hedge funds are on average net short batteries, solar, electric vehicles and hydrogen than are long those sectors; and more funds are net long fossil fuels than are shorting oil, gas and coal, according to a Bloomberg News analysis of positions voluntarily disclosed by roughly 500 hedge funds to Hazeltree, a data compiler in the alternative investment industry.
/jlne.ws/4heZGt1
The new corporate green goal: being 'nature positive'; More companies are committing to protect and improve biodiversity. But some experts fear the potential for greenwashing
Susannah Savage - Financial Times
Marco Lambertini holds up his hands and splays his fingers: that is how many companies turned up to previous UN conferences on biodiversity, says the veteran conservationist, with only a flicker of exaggeration. While big business has flocked to the UN's recent climate summits to talk about decarbonisation, protecting nature has remained the domain of conservationists, philanthropists and other ethically minded types.
/jlne.ws/4eRaJXE
Nuclear energy stocks hit record highs on surging demand from AI; Amazon and Google deals to deploy small modular reactors are latest step in sector's revitalisation
Jamie Smyth and Amanda Chu - Financial Times
Shares in nuclear energy companies surged to record highs this week after Amazon and Google struck landmark power supply deals, boosting efforts to deploy the first small modular reactors in the US. The share prices of US-listed SMR developers Oklo Inc and NuScale Power rose 99 per cent and 37 per cent respectively, after rivals X-energy and Kairos Power, two private SMR developers, announced financing agreements. Shares in Cameco, Oklo, NuScale, Constellation Energy and BWX Technologies all traded at record highs over the week.
/jlne.ws/4h7lk2t
What's Happening to Protect Nature? This Month, There's a Major Push.; Delegates from around the world are meeting in Colombia in what is expected to be the biggest U.N. biodiversity conference in history.
Catrin Einhorn - The New York Times
On the agenda is life on earth, in all its forms and diversity. The big question is how far nations will go to stop the disastrous declines underway. Representatives from more than 175 countries are gathering to negotiate answers, starting on Monday in Cali, Colombia, at what is expected to be the largest United Nations biodiversity conference in history.
/jlne.ws/3YstNpv
A 'New Day'? Justices Step Back, Slightly, From an Aggressive Climate Stance.; The Supreme Court's decision to not temporarily block an E.P.A. rule this week signals 'rising influence' of Justice Barrett, one analyst said.
Karen Zraick - The New York Times
The conservative-majority Supreme Court has taken an aggressive stance against many environmental rules in recent years, but three small victories for regulators this month have left some analysts wondering whether a shift is underway. The latest sign came on Wednesday, when the justices declined to block the Environmental Protection Agency from imposing new restrictions on power-plant emissions while the rule is challenged in a lower court. The rule would require many coal- and gas-burning plants to capture up to 90 percent of greenhouse gas emissions by 2032.
/jlne.ws/3YvqNbS
Are the Amazon's Trees Worth More Alive than Dead? A New Industry Thinks So; Brazil is encouraging bioplastics, ecotourism and fishing businesses in the rainforest to replace illegal logging and mining
Samantha Pearson - The Wall Street Journal
Jefferson Sousa could have been eking out a living at the expense of the Amazon forest, working on a cattle ranch like his father. "It was all I knew, it was what kept our family alive," he said. But now Sousa, who is in his mid-30s, spends his days cultivating jaborandi, a once-endangered shrub used in glaucoma medication and one of the Amazon's most promising new sustainable industries.
/jlne.ws/4f9GgUC
Nigeria Approves Sale of Exxon's Onshore Assets to Seplat
Nduka Orjinmo and Anthony Osae-Brown - Bloomberg
/jlne.ws/3UjFiwX
Masdar outlines plan to become one of world's biggest renewable energy groups; Abu Dhabi company to continue global investment spree that includes nearly EUR6.5bn of deals in Spain and Greece this year
Malcolm Moore - Financial Times
/jlne.ws/3YzOIpJ
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Robinhood CEO outlines opportunities in options trades, redesign
Brian Sozzi - Yahoo Finance
At its first annual HOOD Summit in Miami this week, Robinhood Markets (HOOD) unveiled new futures and index options trades for active investors. Robinhood CEO Vlad Tenev sits down with Yahoo Finance executive editor Brian Sozzi to speak more about this new suite of trading tools.
/jlne.ws/3YssSFz
US banks consider cutting interest payments on company deposits; Lenders target corporate clients as they seek to maintain profit margins with Fed trimming benchmark rates
Joshua Franklin and Stephen Gandel - Financial Times
US banks are considering aggressive cuts to interest payments for corporate depositors as they seek to protect profit margins after the Federal Reserve cut benchmark lending rates. Since 2022, lenders have been offering better rates to savers as the Fed raised benchmark interest rates to 23-year highs and they sought to ensure customers did not move cash to another bank or into money market funds.
/jlne.ws/3YwIjN2
Janus Henderson launches first European active ETF; The $360bn manager has built an active ETF name in the US with CLO funds, but this taps into its Japan equities expertise
Steve Johnson - Financial Times
Janus Henderson will today join the throng of asset managers launching actively managed exchange traded funds in the European market. The move comes five months after the $360bn Anglo-American fund house bought London-based Tabula Investment Management in a push to expand its ETF franchise outside of the US. The Janus Henderson Tabula Japan High Conviction Equity Ucits ETF (JCPN) is scheduled to be followed by a raft of follow-up launches as Janus Henderson responds to what it says is strong client demand.
/jlne.ws/48fR6pM
Norway's $2tn man Plus, Harvard donations drop, the yen declines and Egon Schiele at the Neue Galerie
Harriet Agnew - Financial Times
Norway's $2tn man Norges Bank Investment Management, also known as Norway's oil fund, is the largest single sovereign wealth fund on Earth. It contains approaching $2tn in assets, based on money earned from the country's oil reserves, and owns on average about 1.5 per cent of every listed company. In the latest episode of the FT's Unhedged Podcast, markets columnist Katie Martin talks to Nicolai Tangen, the man in charge of making this supertanker run smoothly. In a wide-ranging discussion, Tangen outlines why he's worried that a toxic mix of investor concentration in Big Tech and geopolitical risks in Taiwan leave global stock markets vulnerable to a large correction and means "we are heading for a period of low returns".
/jlne.ws/3BPKxhv
MetLife Said to Be in Talks to Buy Tycoon Li's PineBridge Assets Outside of China; Potential transaction could be valued at up to $1.5 billion; Advanced talks for about $100 billion assets under management
Manuel Baigorri - Bloomberg
US insurer MetLife Inc. is in advanced talks to buy PineBridge Investments' assets outside of China, people familiar with the matter said, in a deal that could be valued at $1 billion to $1.5 billion. The talks are exclusive for assets under management amounting to about $100 billion, the people said, asking not to be identified because the matter is private. PineBridge is majority owned by Hong Kong billionaire Richard Li's holding company, Pacific Century Group.
/jlne.ws/3UiAeJv
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Once You Try a Four-Day Workweek, It's Hard to Go Back; A six-month trial in Germany showed many promising signs. But there were disappointments, too.
Sonja Wind - Bloomberg
Germany's brief experiment with a four-day workweek is over, but for many of the businesses that participated, there's no going back. "I don't want to work on Fridays anymore. I just don't," says Soren Fricke, co-founder of event planner Solidsense. "Friday has actually become the third day of the weekend. You only work if there is no other option."
/jlne.ws/40cvf0x
New laws force UK employers to stop harassment before it starts; Pre-emptive rules taking effect this week aim to stamp out sexual misconduct at work
Charlotte Middlehurst - Financial Times
Preventing bad behaviour in the workplace before it happens may sound like a conundrum for employers. But from this week, all UK companies will have to take "preventive action" to stop sexual harassment before it starts. The new rules require employers to spot risks of a potential incident - and shut them down - rather than act appropriately afterwards, and are already reshaping the code of conduct at top City firms.
/jlne.ws/3NAa9Ss
If you cough, you're off; Why is it so hard to follow this first rule of flu season office etiquette?
Pilita Clark - Financial Times
What do you do if you turn up to work and find yourself sitting next to someone with a streaming nose, a hacking cough and other signs of a full-blown cold or flu? This question arose the other day when I arrived at the start of a day-long business conference and sat at a table where another attendee plonked his loudly snivelling self on the seat beside me.
/jlne.ws/3Aa5qnh
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Caffeine in Your Blood May Affect Body Fat And Diabetes Risk, Study Reveals
David Nield - Science Alert
The levels of caffeine in your blood could affect the amount of body fat you carry, a factor that in turn could determine your risk of developing type 2 diabetes and cardiovascular diseases. Those are the findings of a 2023 study that used genetic markers to establish a more definitive link between caffeine levels, BMI, and type 2 diabetes risk. The research team, from the Karolinska Institute in Sweden, the University of Bristol in the UK, and Imperial College London in the UK, said calorie-free caffeinated drinks could be explored as a potential means of helping reduce body fat levels.
/jlne.ws/40dXwUl
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | What to Know About the BRICS Group of Countries Rivaling the G-7
Michael Cohen - Bloomberg
The BRICS group of emerging-market powers - the acronym stands for Brazil, Russia, India, China and South Africa - has gone from a slogan dreamed up at an investment bank two decades ago to a real-world club that controls a multilateral lender. It almost doubled in size in 2024, pairing several major energy producers with some of the biggest consumers among developing countries and potentially enhancing the group's economic clout in a US-dominated world. Dozens more countries have expressed interest in joining its ranks.
/jlne.ws/409Pf3N
China's Steel Demand Has Shrunk to Less Than Half Global Total
Bloomberg
China will account for less than half of global steel consumption in 2024 for the first time in six years, according to the World Steel Association, as the decline in the country's real estate sector pummels demand for the metal. The forecasts from Worldsteel show diverging prospects between China - for two decades the major driver of global demand growth - and steel hot spots in the rest of the world, from South Asia to the Middle East and Latin America.
/jlne.ws/3Nztm6D
China stimulus creates hedging headaches for HK warrants; Dealers say options liquidity issues during Hang Seng's rollercoaster ride made the products tricky to risk manage and price
Chris Davis and Jiefei Liu - Risk.net
Gyrations in Chinese stocks in recent weeks - driven by central bank stimulus - have sent index volatility soaring, creating hedging headaches for market-makers and widening Hong Kong warrants' traditionally paper-thin bid-offer spreads. "Unsurprisingly, warrant issuers have been facing a lot of challenges," says a listed products sales head at one warrants issuer in Hong Kong. "One is to cover the risk that they have, because the change of the spot leads to a change of delta and volatility, and
/jlne.ws/48hpdOe
Top China Quant Winds Down Strategy Pummeled by Market Rally; High-Flyer plans to cut market-neutral positions to zero; Industry suffered losses in strategy as short bets squeezed
Bloomberg News
A top Chinese quantitative hedge fund is shutting down its market-neutral products, exiting a strategy that saw widespread industry losses recently when a surge in local stocks squeezed their short positions. Zhejiang High-Flyer Asset Management, which manages more than 50 billion yuan ($7 billion), told investors Friday that it would gradually cut all positions in such products to zero, saying future returns will notably fall short of investor expectations, according to a company representative who asked not to be identified discussing private information.
/jlne.ws/4dZ7EUe
Hot India Private Credit Market Faces Risks as Exuberance Grows; Cerberus sees potential risk in lighter market underwriting; India private credit market is in early stage: Kotak's Iyer
Finbarr Flynn - Bloomberg
India's private credit market is growing so fast that a rush of new participants into the direct-lending sector is fueling concern about a weakening of lending standards. "We have seen a bunch of first-time managers raise a lot of local capital," Indranil Ghosh, head of Pan-Asia special situations at Cerberus, said at the Bloomberg India Credit Forum in Mumbai on Friday. "With some of those managers, I suspect that the underwriting standards, the diligence standards, the structuring, covenants are slightly lighter than what a lot of the global firms and well-established domestic institutions are used to."
/jlne.ws/3UhpA5M
Zambia Pursues Deals With Investors to Develop Mining Permits; State will hold 'significant minority' stakes in partnerships; Government seeking to quadruple copper production by 2030s
William Clowes n- Bloomberg
/jlne.ws/4dP1LZO
Abu Dhabi Seeks Billions in Food Investment to Turn Net Exporter; Emirate plans to offer subsidies to attract agrifood companies; Hot and arid Gulf region imports most of the food it consumes
Verity Ratcliffe - Bloomberg
/jlne.ws/3BQnQtI
Asia Hedge Funds Outperform Global Peers on September Rally
Bei Hu and David Ramli - Bloomberg
/jlne.ws/3YwraD5
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