| November 05, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
We came so very close to hitting our target of 1000 YouTube subscribers yesterday. Thank you to everyone who subscribed to the John Lothian News YouTube Channel, which reached 995 subscribers as of this morning, a net gain of 18 subscribers.
As I wrote, we published the interview with "Number Go Up" author Zeke Faux yesterday, which you can see below in the video and story titled "The Crypto Skeptic Who Went Down the Rabbit Hole." The video is published via Vimeo.
We also published it to LinkedIn, breaking it into four different pieces. You can see the LinkedIn videos here, with Part 1, Part 2, Part 3, and Part 4.
We also published a video short of the interview with Faux, which can be seen HERE.
The OCC in its October 2024 monthly volume report said it had a total trading volume of 1.12 billion contracts, marking a 13% increase from October 2023. Equity options led this growth with a 39.7% rise, totaling 588.2 million contracts. While ETF and index options saw declines of 6.3% and 7.9% respectively, their year-to-date average daily volumes still showed slight growth, with ETF options up by 1.9% and index options up by 9.2%. Futures volume dropped significantly by 33.1% year-over-year but maintained a year-to-date daily increase of 6.7%. Overall, year-to-date average daily volume across all products increased by 7.6%.
Here are the headlines from in front of FOW's paywall from some recent stories: HKEX to digitise exchange-traded products next year, ANALYSIS: US Gulf Coast adoption accelerates as deliveries outpace Cushing - research, ANALYSIS: Broadridge calls for reporting harmonisation amid Asian rewrites, Interest rates activity drives broking revenue at TP ICAP, EXCLUSIVE: OptAxe hires former HSBC, Deutsche Bank MD ahead of launch and Voluntary carbon market needs 'robust, consistent' standards - ISDA.
We are working hard to set up video interviews for FIA EXPO. If you have some news you want to elaborate on, if you want to share your thoughts on industry issues, or if you have interesting stories to share, reach out to me at [email protected] to set up an interview.
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:
- OCC Contract Volume for October 2024 from OCC.
- Thomas Peterffy on ForecastEx: Building a Buy-Only Market to Transform Event Trading and Crowd-Based Insights from John Lothian News.
- T-1: Election Risk Premium Surges into US Elections from Cboe. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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| Sponsored Content |
"FIA Forum - Tokyo 2024" held at JPX
Together with FIA and FIA Japan, OSE successfully hosted the FIA Tokyo Forum on October 10, 2024, at the Tokyo Stock Exchange. The event welcomed over 220 attendees representing more than 100 companies.
The program opened with remarks from Mr. Nakaso, Chairman of FinCity.Tokyo, and Mr. Yokoyama, President and CEO of OSE. These introductions were followed by two engaging panel discussions and an insightful address by Mr. Ito, Commissioner of the Financial Services Agency.
During the panel discussions, industry leaders from global exchanges and brokerages shared their perspectives on the Japanese market and their development plans. They also explored practical applications of OSE's recent innovations in the interest rates market, including the newly launched 3-Month TONA Futures.
Mr. Kazuhisa Kakizaki, Executive Officer of OSE/TOCOM, joined a panel to discuss JPX's product advancements. He highlighted developments such as the 3-Month TONA Futures, TOCOM Electricity Futures, and the revival of the Single Stock Options market.
For further details , please refer to the following link: https://www.fiajapan.org/post/fia-forum-tokyo-2024-co-organized-with-fia-japan.
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The Crypto Skeptic Who Went Down the Rabbit Hole
JohnLothianNews.com
On a crisp autumn morning in Brooklyn, Zeke Faux sat in his home office in front of a Zoom virtual background featuring a mocked up gold cryptocurrency coin with Sam Bankman-Fried's profile on it and inscribed with a Latin phrase Faux described as an Easter Egg that means "It is worth nothing." The Bloomberg investigative reporter had just released the paperback version of his first book, "Number Go Up," a searing exposé of the cryptocurrency world that has already made waves in financial circles. A chapter is included in the paperback edition that contains new information, since the hardback edition was released just before Bankman-Fried went on trial. But Faux's journey into the heart of crypto mania wasn't one he initially sought out.
Watch the video »
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Thomas Peterffy on ForecastEx: Building a Buy-Only Market to Transform Event Trading and Crowd-Based Insights
JohnLothianNews.com
Thomas Peterffy, founder of Interactive Brokers, shares insights into his latest venture, ForecastEx, an innovative platform designed to create a new market for event-based contracts in an interview with John Lothian News. ForecastEX provides traders a unique "buy-only" model where participants take yes or no positions on the probability of future events, challenging traditional speculation while aiming to yield broader societal insights.
Watch the video »
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Pre-Bunking Is the Best Way to Fight Election Disinformation; America's adversaries are preparing to flood social media with fake news through Inauguration Day. Prepare yourself.
Barbara L McQuade - Bloomberg Opinion
If you think the public discord over the election will end after Election Day, think again. According to an intelligence bulletin declassified in October, US spies believe that China, Iran and Russia are "prepared to exploit opportunities" after the polls close. Their focus will be to "conduct information operations denigrating US democracy through Inauguration Day." In non-bureaucrat-speak, that means foreign adversaries are working to stoke division in American society. They want to undermine our confidence in democracy with disinformation.
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****** Don't expect the baloney to stop.~JJL
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The 'Happiness Plateau' Doesn't Exist; The idea that money can only buy so much happiness isn't supported by the data on wealth, personal well-being and overall life satisfaction.
Adrian Wooldridge - Bloomberg
The idea that money can't buy you happiness is one of the world's most persistent tropes. King Midas is granted his wish that everything he touches will turn to gold only to starve to death. Jay Gatsby finds that money can't buy him Daisy's love. Succession proved to be so popular not just because it is so cleverly written but also because it dwells on the misery of the super-rich. The Roy children may live in a world of private planes, luxury yachts and subdued designer clothing, but their personal lives are marinated in toxicity. Better to be a happy peasant than Kendall Roy.
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***** The opposite of the "Happiness Plateau" is the "Misery Spiral." Rather than being stationary at one level, one is moving, spiraling down with feelings of escalating dissatisfaction, a sense of powerlessness, decreased coping mechanisms and finally isolation and withdrawal from social connections and activities. Yep, that would be the Misery Spiral.~JJL
***** On the other hand, if you take the motion out of it, the opposite of the "Happiness Plateau" would be the "Pit of Despair." See the movie "The Princess Bride" for details.~JJL
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Monday's Top Three
Our top clicked item on Monday was the John Lothian News YouTube channel. Second was 401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000, from the IRS. Third was Broker Marsh Offers Insurance to Target Fake Carbon Credits, from Bloomberg.
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| Lead Stories | Russia Suspected of Plotting to Send Incendiary Devices on U.S.-Bound Planes; Two devices that ignited in Europe, officials say, were part of a covert operation to put them on cargo or passenger aircraft
Bojan Pancevski, Thomas Grove, Max Colchester and Daniel Michaels - The Wall Street Journal
Western security officials say they believe that two incendiary devices, shipped via DHL, were part of a covert Russian operation that ultimately aimed to start fires aboard cargo or passenger aircraft flying to the U.S. and Canada, as Moscow steps up a sabotage campaign against Washington and its allies. The devices ignited at DHL logistics hubs in July, one in Leipzig, Germany, and another in Birmingham, England. The explosions set off a multinational race to find the culprits. Now investigators and spy agencies in Europe have figured out how the devices-electric massagers implanted with a magnesium-based flammable substance-were made and concluded that they were part of a wider Russian plot, according to security officials and people familiar with the probe.
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Hedge Fund Basis Trade Faces Scrutiny as Regulators Mull Probe; Shadow lenders now hold about half of all financial assets; Watchdogs have spent years trying to assess non-bank risks
Laura Noonan - Bloomberg
Hedge funds' record bet on US Treasuries is facing fresh scrutiny as the world's most powerful financial watchdog mulls a deep dive into the money-spinning trade. After running into difficulties with a mammoth project launched last year to gather data on the sprawling shadow banking system, the Financial Stability Board is now discussing a pivot to focus on a handful of priority areas, including the so-called basis trades, three people with knowledge of the matter said. The potential probe comes as wagers on one of the trades, which sees some of the world's biggest hedge funds try to profit from the tiny price gaps between Treasuries and derivatives known as futures, hit $1.15 trillion recently.
/jlne.ws/3V1qZxJ
Australian Bourse Hampered in Plan to List NZ Bond Futures; ASX withdrew the products 5 years ago due to limited liquidity; Banks tend to protect their lucrative swap businesses: ASX
Matthew Burgess - Bloomberg
Australia's plan to re-list New Zealand government bond futures next year faces major challenges due to concerns about limited liquidity and lack of trading transparency, according to the nation's securities exchange. The roadblocks mean re-listing the contracts in the first half of next year as initially planned is unrealistic and "2025 at this stage is probably quite challenged," said Jennifer Eason, a senior product manager for rates at ASX Ltd. in Sydney. "Things would need to move and progress in a positive direction very quickly to hit that milestone."
/jlne.ws/3NRXNVR
Poland detains four over Russian parcel bomb plot targeting US-bound flights; European officials say DHL parcel fires were result of test runs for using similar methods to attack transatlantic flights
Raphael Minder in Warsaw, John Paul Rathbone in London and Henry Foy in Brussels - Financial Times
Poland has detained four people suspected of being involved in test runs for a Russian plot to detonate parcel bombs on US-bound transatlantic flights. Warsaw launched an investigation after Germany said last month that it narrowly avoided a plane crash when a parcel destined for an aircraft's hold burst into flames before the flight at a DHL logistics centre in Leipzig. The UK's counterterrorism police are also investigating the origins of another package that caught fire at a DHL depot in Birmingham in July.
/jlne.ws/3Au6eU8
Russia 'plotting to plant explosives' on passenger jets to the US
Joe Barnes - The Telegraph
Russia could be plotting to plant bombs on passenger and cargo jets heading to the US, security officials in Europe say. Incendiary devices found being shipped across Europe could be a test for a covert Russian operation to start fires on planes flying to the States. Investigators have discovered at least two such devices after fires at DHL shipping hubs in Leipzig, Germany and Birmingham, Britain. Poland's national prosecutor's office said four people had been arrested in connection with the fires. They have been charged with participating in sabotage or terrorist operations on behalf a foreign intelligence agency. "The group's goal was also to test the transfer channel for such parcels, which were ultimately to be sent to the United States of America and Canada," the prosecutor's office said.
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Is it farewell to Jamie Dimon? JP Morgan's $25bn man; He survived the financial crisis to make JP Morgan a colossus. We speak to more than a dozen staff about how to fill the biggest shoes on Wall Street
Jill Treanor, David Rothnie - The Sunday Times
Every working day, Jamie Dimon starts with the same routine. He wakes at about 5am, reads five newspapers - always in the same order - and then exercises before heading to his office in midtown New York. Once there, the chief executive and chairman of JP Morgan takes the lift to the 41st floor, where he has a suite of rooms from which he runs America's biggest bank, with operations in 100 countries and more than 250,000 staff.
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Traders braced for volatility and volume as US election night nears; Banks plan staggered shifts and downtown hotel rooms for suburb dwellers to staff floors around tight race outcome; Options markets are pricing in a potential swing of plus or minus 2.2% in the S&P 500 after election night, according to Cboe
Harriet Clarfelt and Nicholas Megaw in New York - Financial Times
Bankers, traders and investors are bracing themselves for a long stint of high volumes and increased volatility, particularly in bond and currency markets, ahead of Tuesday's US presidential election. With markets already pricing in potentially large swings across several asset classes, Wall Street banks have been preparing well in advance - with some pausing software updates and booking downtown hotel rooms for suburb-dwelling traders, to make sure they are ready to handle any unexpected moves on election night or throughout the rest of the week.
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US clean energy industry's future hangs in balance on election day; Few industries stand to gain - or lose - more on US election day than renewable sources of power
Amanda Chu - Financial Times
At the mouth of New York's Hudson River, Norwegian oil and gas producer Equinor is building the largest US port for offshore wind, and a potential monument to America's energy future - or its past. As Americans brace for one of the closest presidential elections in the nation's history, investors and executives alike have been parsing campaign statements for which industries stand to gain or lose the most in the next administration. But as election day nears, one is clearly emerging as the most exposed to the outcome: renewable energy.
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Vanguard deposes BlackRock as provider of world's second-largest ETF; Inflows to VOO look set to smash records as observers predict it will soon overtake SPY to become the largest
Steve Johnson - Financial Times
Vanguard has deposed its rival BlackRock, the world's largest asset manager, from its position as manager of the second-largest exchange traded fund in the world. In a rare setback for the fund giant, BlackRock's iShares Core S&P 500 ETF (IVV) has been overtaken by Vanguard's equivalent S&P 500 ETF (VOO), which had assets of $540.76bn at Friday's close, according to data from Morningstar, marginally ahead of IVV's $540.66bn. The reversal represents a marked change of fortunes for the two funds, given that VOO was $58bn behind IVV as recently as the start of 2022.
/jlne.ws/3YyCUnA
Harnessing artificial intelligence on future trading desks; The TRADE sits down with Baris Halitoglu, trader at Nordea Asset Management, to explore how developments in automation and artificial intelligence are shaping the future of both the trader and the trading desk.
Annabel Smith - The Trade
How is trading talent set to evolve going forward? The future trading talent has a different educational background than what has been the norm for decades. Future traders will possess more technical skillsets and they will have quantitative and mathematical backgrounds. This shift has already taken place over the course of several years, and the trend will only continue for many years to come while the industry expands into the technological space. The new talent is well versed in coding and mathematics. They know all products in depth from a theoretical point of view, and on top of this they have the ability to put their ideas into scripts and programs. They can retrieve and fetch necessary information from databases and other information sources.
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A Clear Plan for Voluntary Carbon Trading
Scott O'Malia - ISDA
As world leaders head to Azerbaijan for COP29 next week, they must confront the urgent task of keeping the Paris Agreement objectives on track and accelerating the reduction of carbon emissions. This is an unprecedented global challenge, and governments cannot do it on their own - they need to leverage global capital markets to raise the funding that is needed. The voluntary carbon market could play a big role, but this requires robust and consistent standards. It will also involve the public and private sectors working together, and we've identified five key areas where that work should start.
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ISDA Wins Regulation Asia's Industry Association of the Year and Best Regulatory Reporting Solution Awards
Regulation Asia
The International Swaps and Derivatives Association, Inc. (ISDA) has been named Industry Association of the Year for the second year running by Regulation Asia at its seventh annual Awards for Excellence. The association also won Best Regulatory Reporting Solution for its Digital Regulatory Reporting (DRR) initiative. The Industry Association of the Year award recognizes trade groups that have shown outstanding leadership in supporting regulatory reform, addressing compliance challenges and promoting financial stability, including through the development of industry standards and best practices.
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ADM to amend results, cancels call on more accounting errors
Gerson Freitas Jr. - Bloomberg
Archer-Daniels-Midland Co. (ADM) said it will amend previous financial statements after finding additional accounting issues, prompting the crop trader to cancel its quarterly earnings call with analysts 14 hours before its start. The move adds a new chapter to a scandal that wiped more than $8 billion of ADM's market value on a single day earlier this year, prompted investigations by the US Department of Justice and Securities and Exchange Commission into its accounting practices, and led the company to remove Vikram Luthar as chief financial officer.
/jlne.ws/3YCmNoL
Gorillas, AI and the future of the nature finance market; If we're serious about saving biodiversity, money flows will have to make their way to the remotest bits of developing nations
Jonathan Ledgard - Financial Times
Is it possible to be a non-human - falcon, yellowwood, moth, gorilla - and participate in the economy, or is the spending of money forever reserved only for humans and algo-trading machines? The COP16 UN biodiversity summit which finished last week in the Colombian city of Cali didn't answer this question, but financiers will soon have to. The Cali meeting was the most significant for biodiversity since the missed opportunities of the 1992 Rio Earth Summit. There was much to admire: jaw-dropping science, indigenous communities with a seat at the table, and a slogan of "making peace with nature". Nevertheless, the essential discussion was "show me the money" and the answer was "no".
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Plato Partnership proposes new standards for tackling market outages; Developed in collaboration with European exchanges including Deutsche Borse, Euronext, SIX Swiss Exchange and Nasdaq OMX, the proposed standards seek to bolster the resilience, consistency and transparency of market operations.
Wesley Bray - The Trade
Not-for-profit member organisation Plato Partnership has announced new standards for managing cash equities market outages. The new standards have been developed by Plato member firms with discussions having taken place between European exchanges including Deutsche Borse, Euronext, SIX Swiss Exchange and Nasdaq OMX. Among the five proposed standards is the communication of order and trade status, in which trading venues are obliged to communicate order and trade status to members within 30 minutes of an outage.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russians are running out of butter - supermarkets are locking it away from shoplifters
Szu Ping Chan - The Telegraph
Russian butter prices are surging as Vladimir Putin prioritises defence spending over protecting his country from the impact of sanctions. The price of a block of butter has climbed by a quarter since last year, significantly higher than the inflation rate of 8.6pc, official statistics show. Surging prices have sparked supermarket thefts, while shortages have also become widespread.
/jlne.ws/4ftmnIj
Russia's Oil Fleet and the Floating Armories That Help Keep Profits Flowing
Alberto Nardelli, Aine Quinn, Ben Bartenstein and Jonathan Browning - Bloomberg
Somewhere off the coast of Eritrea on July 20th last year, the Vernadsky Prospect - stocked with 730,000 barrels of Russian crude - started broadcasting a message: "Armed guard on board." The 250-meter long tanker had just passed through the Suez Canal, midway through its 7,400 nautical mile journey from the Russian port of Primorsk to India, one of the few major economies that continues to buy Russian oil following its invasion of Ukraine.
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Gazans Fear Neither Candidate in U.S. Election Will Help Them; American politics have not been topmost in the minds of Gazans. "We only need one thing: for this war to come to an end," one man said.
Liam StackBilal Shbair and Abu Bakr Bashir - The New York Times
The Biden administration's support for Israel in the war in Gaza has been divisive for left-leaning voters in the United States, including many Arab Americans, and some say it has soured them on Vice President Kamala Harris's candidacy. Many in Gaza share that anger over the United States' willingness to keep shipping weapons to Israel to carry out its campaign against Hamas despite the death and devastation in Gaza. But in interviews across the territory, many said they were skeptical that either Ms. Harris or former President Donald J. Trump would do much to improve their situation.
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The West Bank Is on the Edge of Economic Collapse; U.S. has issued a warning over the crisis-hit territory, where Israel is weighing cutting off Palestinian banks
Omar Abdel-Baqui - The Wall Street Journal
The Nablus Soap Co., with a network of buyers in 70 countries, is the kind of family-owned business that once formed the backbone of the local economy in the occupied West Bank. Now, after more than a year of war in Gaza, a company that traces its roots back centuries sees its future slipping away. Production costs are up more than 20% and exports have dropped about 30%, amid Israeli restrictions on movement in the West Bank. Overall annual revenue is down from about $5 million to less than $1 million. The staff has been slashed to eight, down from 28 employees before the war. And the company is buying less olive oil, a staple of the local economy that it uses in its famed soap.
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Twitch faces criticism over Israel-Gaza war content on platform; Rep. Ritchie Torres, D-N.Y., wrote a letter to the Amazon-owned streaming platform last week calling for a probe into one of its top political creators, Hasan Piker.
Kalhan Rosenblatt - NBC News
A lawmaker's accusation that Twitch has seen an "amplification of antisemitism" since last year's Hamas attack on Israel has put the streaming platform at the center of mounting scrutiny over its handling of content related to that war.
/jlne.ws/4ejOusi
Hamas nixes Cairo's proposal for brief Gaza ceasefire in exchange for 4 hostages; Diplomat says negotiations ongoing, all options still on the table; Netanyahu said willing to offer 'millions of dollars,' safe passage out of Gaza to captors who release hostages
Jacob Magid - Times of Israel
The US State Department said on Monday that Hamas had rejected a proposal for a short-term ceasefire and hostage release deal, indicating that the terror group was refusing to budge from its key demand for a permanent withdrawal of Israeli forces from the Gaza Strip even after the IDF's killing of its leader Yahya Sinwar last month.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | As NYSE moves toward overnight trading, can one ATS keep its lead? An innovative approach to market data has helped Blue Ocean ATS become a back-end success story. But now it must contend with industry giants angling to take a piece of its pie.
Emma Hilary Gould - Waters Technology
In New York City, the stock exchanges may be the last businesses that don't stay open all night. But after the New York Stock Exchange announced in October plans to extend its trading hours on its electronic exchange, NYSE Arca, that might change. The flow of market data will have to change, too. Until apparently recently, the late-night equities scene seemed like a difficult business for an exchange to break into. Interest in 24-hour trading has jumped in recent years, buoyed by demand from
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ADM Investor Services Clients to Gain Access to Abaxx Commodity Futures Exchange and Clearinghouse
Abaxx
Abaxx Technologies Inc. (CBOE CA:ABXX) ("Abaxx" or the "Company"), a financial software and market infrastructure company, majority shareholder of Abaxx Singapore Pte. Ltd., the owner of Abaxx Commodity Exchange and Clearinghouse (individually, "Abaxx Exchange" and "Abaxx Clearing"), and producer of the SmarterMarkets Podcast, today announced that the membership of ADM Investor Services Singapore Pte. Limited ("ADMIS Singapore") with Abaxx Exchange and Abaxx Clearing will be in effect on November 11, 2024.
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November 2024 Eligible Corporate Bonds, ETFs, and Stocks - Effective November 04, 2024
CME Group
Monthly Eligibility List for stocks, corporate bonds, and ETFs for November 2024 is available.
/jlne.ws/4faOUml
Follow up on Reports: Support for SPAN 2 framework in OCC / CME Cross-margin Program - Effective November 04, 2024
CME Group
Consistent with this advisory, and pending all applicable regulatory reviews, CME is migrating equity products to the SPAN 2 framework. As part of this migration, CME is updating the calibration of OCC / CME cross-margin program risk arrays to use risk data from the SPAN 2 framework. The risk data file impacts are described in this advisory.To further assist OCC / CME cross-margin program users, CME is introducing a new margin comparison report to understand the impacts of calibrating the OCC/CME cross-margin program risk arrays to use data from the SPAN 2 framework. Reports will be available to Clearing Members from Monday, November 04, 2024 as of Friday, November 01, 2024 business date.
/jlne.ws/3NQWoPl
ELITE welcomes 19 new firms bringing the total to 2,400 companies
Euronext
The companies come from 10 Italian regions (almost 50% from the centre and south of the country) and operate in a variety of key sectors, ranging from industry to services, from technology to food & beverage. They have an aggregate turnover of around EUR3 billion and employ over 2,300 people. By joining ELITE, these companies will have the opportunity to access specialised expertise and a European network of entrepreneurs, top executives, partners and investors, including institutional investors, to facilitate the raising of resources on the private and public capital markets.
/jlne.ws/3YE1T91
HKEX to Digitalise Etp Servicing Capabilities With Online Platform
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Tuesday) plans to digitise and automate the in-kind creation and redemption process for relevant exchange-traded products (ETP) in 2025 through the adoption of a web-based platform, subject to technical readiness and regulatory approval. This platform will be integrated into the ETP creation and redemption process, connecting key ETP participants with the use of Distributed Ledger Technology (DLT) and smart contracts, and will help increase overall ETP market efficiency, supporting the continued growth of secondary market activity for ETPs.
/jlne.ws/40u4PaP
October Marks Highest Volume Month in ICE's History with 209 Million Contracts Traded
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced that October 2024 marked its highest volume month in its history with a record 209 million contracts traded across futures and options. "The extent of trading activity during October highlights the depth, breadth and liquidity of the global exchange network we have built over the last two decades and the unique role that benchmarks such as Brent and Euribor play in underpinning the management of risk across markets," said Trabue Bland, SVP of Futures Markets at ICE. "Against a backdrop of risk and uncertainty across multiple fronts geographically, customers are utilizing the combination of the liquidity and precision of our global benchmarks and related contracts to manage risk."
/jlne.ws/4f7SCgm
Intercontinental Exchange Reports October 2024 Statistics
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today reported October 2024 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 40% y/y; open interest (OI) up 20% y/y, including record futures OI of 50.1M lots on October 25 Record Energy ADV up 21% y/y; OI up 21% y/y Total Oil ADV up 22% y/y; including record options of 435k lots; OI up 20% y/y, including record OI of 15.8M lots on October 25 Brent ADV up 16% y/y, including record options of 364k lots; OI up 16% y/y, including record options OI of 4.1M lots on October 25 WTI ADV up 20% y/y; OI up 20% y/y Gasoil ADV up 37% y/y; OI up 64% y/y, including record OI of 1.3M lots on October 30 Other Crude & Refined products ADV up 23% y/y; OI up 17% y/y
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LME Asia Week 2025
LME
1. The purpose of this notice is to inform members and the global metals community of the date and details for LME Asia Week 2025.
/jlne.ws/40zH2GC
Nasdaq Reports October 2024 Volumes
Nasdaq
Nasdaq (Nasdaq: NDAQ) today reported monthly volumes for October 2024 on its Investor Relations website. A data sheet showing this information can be found at: http://ir.nasdaq.com/financials/volume-statistics.
/jlne.ws/3YsKpMI
Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in October 2024
Shanghai Futures Exchange
Shanghai Futures Exchange (hereinafter referred to as "the Exchange") has been on continuous efforts in investigating and penalizing violations of relevant rules and regulations, so as to strengthen the risk management of the futures market, regulate the futures trading activities and protect the legitimate rights and interests of futures market participants. The enforcement against such violations in October 2024 is listed as follows: In the aspect of administration of abnormal trading behaviors, the Exchange has dealt with 50 cases, among which 21 cases were self-trades, 21 cases were frequent order cancellations, 2 cases were exceeding the intraday position opening volume prescribed by the Exchange, 6 cases were exceeding the limit of placing and cancellation of large-amount order. The Exchange has separately notified the relevant clients by phone through the members, notified 5 abnormal trading behaviors to all the members and suspended 2 groups of accounts that exist the actual control relationship from opening new positions on the relevant futures or futures contracts and notified to the market.
/jlne.ws/4eggI7m
SGX Group wins Regulation Asia's Exchange of the Year Award for 5th time
SGX
Singapore Exchange (SGX Group) has been awarded the Exchange of the Year Award for the fifth time by Regulation Asia, a publisher of news on financial market and banking regulations. SGX Group was recognised for various achievements including strategic partnerships with ASEAN markets and India's GIFT City. Multiple new asset classes have been added to SGX Group's securities and derivatives markets while connectivity with other exchanges has been expanded. Regulation Asia also cited SGX Group's use of AI-driven tools like the MaxxAI data analytics tool which exemplified a forward-looking approach to enhancing decision-making for OTC FX customers. SGX Group has also been proactive in promoting sustainability and climate-related reporting.
/jlne.ws/3NYXsAs
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Abel Noser Solutions, a Trading Technologies company, wins Best Buy-Side TCA Tool for 2024 in WatersTechnology's Buy-Side Technology Awards
Trading Technologies International, Inc.
Trading Technologies International, Inc. (TT), a global capital markets technology platform provider, today announced that Abel Noser Solutions, a TT company, won the award for Best Buy-Side TCA (Transaction Cost Analysis) Tool in the Buy-Side Technology Awards 2024. The industry-leading provider of TCA for investment managers, brokers, asset owners and consultants offers comprehensive pre-trade, real-time and post-trade TCA products and services for global equities, foreign exchange (FX), futures, fixed income and options. Hosted by WatersTechnology, the awards recognize the leading technologies and third-party vendors in their areas of expertise, focusing on market-leading technologies developed specifically for use by buy-side firms, designed to allow them to operate more efficiently, more transparently and more judiciously.
/jlne.ws/3NRdcFE
Bitpanda deploying Eventus' Validus platform to meet trade surveillance needs; Implementation to help firm meet EU Markets in Crypto Asset Regulation (MiCA) requirements
Eventus
Eventus, a leading provider of comprehensive, at-scale trade surveillance and financial risk solutions, and Bitpanda, Europe's leading cryptocurrency platform, announced today that Bitpanda will deploy Eventus' Validus platform to meet its trade surveillance needs and legal obligations. Founded in Vienna in 2014, Bitpanda has offices and hubs across the region, including Vienna, Barcelona, Berlin, Krakow and Bucharest. Following a rigorous review of trade surveillance solution providers, Bitpanda selected Eventus to help the firm leverage automation to detect and prevent market abuse, manipulation and insider trading.
/jlne.ws/48CJXjt
Rival Systems Wins "Best Buy-Side OMS" at WatersTechnology's 2024 Buy-Side Technology Awards
Rival Systems via PR Newswire
We are proud to announce that Rival One has been awarded "Best Buy-Side Order Management System (OMS)" for the 2024 Buy-Side Technology Awards by WatersTechnology. This recognition highlights Rival One's innovative approach to simplifying the complex trading landscape and enhancing efficiency for active traders and financial firms globally. Rival One streamlines trading by consolidating various functionalities, traditionally spread across multiple systems, into a single, cloud-based solution. Designed with direct feedback from the trading community, Rival One addresses critical buy-side trading challenges through seamless connectivity across asset classes-including equities, futures, and options-on an intuitive, ultra-low latency platform.
/jlne.ws/3UEsCAZ
Chipmaker TSMC hit by Taiwan's soaring energy prices and growing outages; Industry loses competitiveness as government struggles to afford cheap-power incentives
Kathrin Hille - Financial Times
Taiwan's laboured energy transition is straining its industry, with sudden electricity price jumps and growing outage risks affecting companies including Asia's biggest - the semiconductor giant TSMC. Following a series of price increases, Taiwan Semiconductor Manufacturing Company now expects to pay more for power in its home country than anywhere else. The world's largest chipmaker operates plants in the US and Japan and is building one in Germany. "Basically, the price has doubled in the past few years. So next year, we think that [the] electricity price for us in Taiwan will be the highest in all the regions that we operate," Wendell Huang, chief financial officer, told investors last month.
/jlne.ws/3NVuiCv
Meta Opens Its AI Models to US Defense Agencies and Contractors; Lockheed Martin, Booz Allen among those using Llama AI models; Meta announces new partners just one day before US election
Kurt Wagner - Bloomberg
Meta Platforms Inc. has granted approval for US government agencies and defense contractors to use its AI models, opening the door for Meta's technology to play a key role in military and national security efforts. The Facebook-parent company is making its large language models, called Llama, available to more than a dozen US agencies and contractors, including Lockheed Martin Corp., Booz Allen Hamilton Holding Corp. and Palantir Technologies Inc. While Meta's AI models are open source, meaning they are free for developers to use, the company's "acceptable use policy" forbids people from using them on any projects related to "military, warfare, nuclear industries or applications, [and] espionage," among other things.
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AI's huge power needs give oil majors incentive to invest in renewables, says Adnoc boss; Energy, tech and finance executives in discussion over how to fuel artificial intelligence
Malcolm Moore - Financial Times
The rapid rise of artificial intelligence gives the world's largest oil companies a major incentive to increase their investments in renewable energy, according to Sultan al-Jaber, the chief executive of Abu Dhabi's national oil company. "The size of this opportunity only became very apparent about 18 months ago when ChatGPT took off," said Jaber in an interview with the Financial Times. He spoke as the chief executives of oil groups Shell, BP and TotalEnergies met tech companies including Microsoft, financiers including Mark Carney, the chair of Brookfield Asset Management, and the heads of power suppliers RWE and EDF in Abu Dhabi to discuss how to meet the growing energy needs of AI and how the technology could be applied across the energy sector.
/jlne.ws/3YUNYNf
Nuclear-Hungry AI Campuses Need New Plan to Find Power Fast
Naureen S. Malik and Will Wade - Bloomberg
Tech giants looking to quickly power massive artificial intelligence centers will need to come up with new strategies after US regulators quashed Amazon.com Inc.'s effort to tap a Pennsylvania nuclear facility. The Federal Energy Regulatory Commission on Friday rejected a request that would allow Talen Energy Corp.'s Susquehanna nuclear plant to divert some of its electricity output to Amazon's data center. The deal had generated excitement for the ability of hyperscalers - the largest data center developers - to quickly gain access to power without years of waiting for new power plants or transmission to get built.
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Holmgren: AI Power Consumption Dominating Conversation
Bloomberg video
With the energy consumption needs of AI, the conversation is moving towards supply rather than the reduction of emissions. Jennifer Holmgren, LanzaTech CEO speaks to Bloomberg's Joumanna Bercetche at the Adipec conference on Horizons Middle East and Africa on what this means for the supply chain industry as well as the future of AI power consumption.
/jlne.ws/3Ccv6jM
OpenAI in Regulator Talks to Become For-Profit Company
Shirin Ghaffary and Malathi Nayak - Bloomberg
OpenAI is advancing in its bid to transform the non-profit structure of the $157 billion company into a for-profit business by having preliminary discussions with regulators. The company is in early talks with the California attorney general's office over the process to change its corporate structure, according to two people familiar with the matter. The process is likely to involve regulators scrutinizing how OpenAI values a portfolio of highly lucrative intellectual property, such as its ChatGPT app.
/jlne.ws/3Ce31Zr
Broadridge Financial profit beats estimates on strength in global technology unit
Reuters
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| Cybersecurity | | Top stories for cybersecurity | Cybersecurity M&A Roundup: 37 Deals Announced in October 2024; Roundup of the thirty-seven cybersecurity-related merger and acquisition (M&A) deals announced in October 2024.
Eduard Kovacs - SecurityWeek
Thirty-seven cybersecurity-related merger and acquisition (M&A) deals were announced in October 2024. An analysis conducted by SecurityWeek shows that 178 cybersecurity M&A deals were announced in the first half of 2024, representing the least busy half year since SecurityWeek started tracking M&A deals in 2021.
/jlne.ws/4fRj7qz
Google Warns of Actively Exploited CVE-2024-43093 Vulnerability in Android System
The Hacker News
Google has warned that a security flaw impacting its Android operating system has come under active exploitation in the wild. The vulnerability, tracked as CVE-2024-43093, has been described as a privilege escalation flaw in the Android Framework component that could result in unauthorized access to "Android/data," "Android/obb," and "Android/sandbox" directories and its sub-directories, according to a code commit message.
/jlne.ws/3YzoV0K
Google's Big Sleep: From Concept to Vulnerability Discovery
Kristian McCann - CyberMagazine
Researchers from Google Project Zero and DeepMind have uncovered their first real-world vulnerability using a large language model. In the fast-paced world of cybersecurity, innovations that enhance abilities to detect vulnerabilities are always welcome.
/jlne.ws/3NW2FsS
US cybersecurity chief says disinformation surge hasn't impacted election
Reuters
U.S. cybersecurity agency director Jen Easterly said on Monday that her department has not seen evidence of any activity that could directly impact the outcome of the election, despite a surge in disinformation. She added that the 2024 election has faced an "unprecedented amount of disinformation" from foreign adversaries.
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| Cryptocurrencies | | Top stories for cryptocurrencies | If U.S. Election Is Disputed, Prediction Markets Could Face 'Hornet's Nest'; How will Polymarket and Kalshi resolve their presidential contracts if there's another Jan. 6 or Bush v. Gore situation?
Marc Hochstein - CoinDesk
At first blush, it looks redundant. The weekend before the U.S. presidential election, crypto-based prediction market Polymarket spun up a contract betting on who will be inaugurated as the next leader of the free world. As anyone who has paid the slightest bit of attention to crypto or election news coverage this year knows, Polymarket already had a heavily traded contract on which candidate will win the presidential race.
/jlne.ws/4ejKqsj
US Bitcoin ETFs Suffer Record Outflows Ahead of Election Day; The group of funds saw an outflow of $579.5 million on Monday; Crypto markets are bracing for potential price volatility
Sidhartha Shukla - Bloomberg
US exchange-traded funds investing in Bitcoin recorded their highest daily net outflow to date as markets brace for Election Day. The group of 12 funds managed by the likes of BlackRock Inc. and Fidelity Investments shed $579.5 million on Monday, according to data compiled by Bloomberg. The outflows come as digital-asset traders prepare for a period of heightened volatility in the immediate aftermath of the US election. The contest between Republican nominee Donald Trump and Democratic rival Kamala Harris looks to be going down to the wire, leaving investors across asset classes planning for market upheavals. During campaigning, Trump took an avowedly pro-crypto stance, while Harris, in a measured approach, pledged to back a regulatory framework for digital assets.
/jlne.ws/4en1BsJ
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| Politics | | An overview of politics as it relates to the financial markets | How violence became a theme of America's election; Voters are on edge after a campaign season characterised by 'unprecedented' levels of extreme rhetoric
Joe Miller - Financial Times
A Donald Trump supporter brandishing a machete at a polling station in Florida. Ballot boxes set on fire in three separate states. Envelopes full of white powder sent to election boards. Shots fired at a Democratic party office in Arizona. And two attempts on the life of the Republican candidate. The 2024 presidential campaign has been marred by "unprecedented" violence, or threats of violence, against public figures and election workers, according to US officials. Law enforcement agencies are braced for civil unrest, regardless of who wins.
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Worries Grow Over Trump Prematurely Claiming 2024 Victory
Josh Wingrove and Mark Niquette - Bloomberg
With the US barreling toward another protracted and potentially disputed election result, one question hangs over offices across Washington, news organizations in New York, and social networks in Silicon Valley: What happens if Donald Trump again prematurely declares himself the winner? The results or clear trajectory of the race may be apparent by Tuesday night, and polls suggest Trump has a roughly even chance of emerging victorious in his battle with Kamala Harris.
/jlne.ws/4hBsZq0
'Gutless' CEOs Jolted by Attacks From Trudeau's Surging Rival
Brian Platt, Thomas Seal and Christine Dobby - Bloomberg
The crowd gathered on the 54th floor of TD Bank Tower, an imposing glass-and-steel edifice in Toronto's financial district, was a who's who of the Canadian business elite. There were CEOs and tech moguls and bankers who had paid as much as C$1,725 ($1,240) each for a chance to hear from Pierre Poilievre, the leader of the Conservative Party. Poilievre isn't your traditional Conservative leader or, for that matter, your typical Canadian. He's brash and confrontational, even with his supporters in the C-suite. Weeks before this June fundraiser on Bay Street, he publicly ripped into CEOs in an opinion piece for failing to push back against the environmental policies of Prime Minister Justin Trudeau, the man he appears poised to defeat at the polls next year. "Gutless executives," he'd written.
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Germany arrests 8 people over alleged role in violent far-right plot; Prosecutors say group inspired by Nazi ideology planned to seize control of eastern regions
Laura Pitel - Financial Times
Germany has arrested eight alleged members of a rightwing terror organisation, accusing them of planning to seize parts of the country's east and conduct ethnic cleansing against "unwanted" groups. Federal prosecutors said the men had "racist, antisemitic and partially apocalyptic ideas" that were driven by Nazi ideology and the belief that Germany was nearing collapse. The eight suspects, some of whom were minors or adolescents, were taken into custody early on Tuesday after being detained at various locations around the cities of Leipzig and Dresden, in the east German state of Saxony, as well as in Poland.
/jlne.ws/40A5M1o
Nazi Takeover Plot Suspects Arrested in German Police Raids; 'Saxon Separatists' trained for warfare to take control; 450 officers are raiding premises in Germany, Austria, Poland
Karin Matussek - Bloomberg
Eight men suspected of plotting to install a Nazi regime in eastern states of Germany were arrested amid a massive police operation early Tuesday. About 450 law enforcement officials are raiding premises in cities in the state of Saxony, as well as in Austria and in Poland, where one of the men was picked up, according to a statement by Germany's federal prosecutor. The eight men and seven more suspects are allegedly members or supporters of the "Saxon Separatists" terrorist group founded in 2020. They reject the liberal democratic order and have conducted military training, including urban warfare, to be prepared to take over control on "day X" when Germany collapses, a development they saw as inevitable, prosecutors said.
/jlne.ws/40xOIc8
Why Moldova Wants to Move Away From Russia and Join EU Instead
Andra Timu and Irina Vilcu - Bloomberg
With a population of just 2.6 million and one of the smallest economies in Europe, Moldova barely registers by most European Union metrics. Yet the small former Soviet republic wedged between EU member Romania and war-ravaged Ukraine has drawn outsized attention from the continent's powerful democracies and Vladimir Putin's Russia. After decades under the Kremlin's influence, Moldova started a concerted shift toward the EU in 2020. That has touched a nerve with pro-Russian elements looking to pull it back into Moscow's sphere of influence.
/jlne.ws/3AiK2fL
China must open up further to combat rising unilateralism, premier says
Casey Hall - Reuters
China will upgrade its free trade zones and explore investment agreements with other countries, Chinese Premier Li Qiang said on Tuesday, adding that opening up was a "must" to combat rising unilateralism globally. Li told the opening ceremony of the annual China International Import Expo that as part of this effort, China would further expand foreign investment access to sectors such as telecommunications and healthcare.
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CEOs Don't Know What to Make of the US Election, Either; 'Uncertainty' mentions by executives are higher than in 2020; 'Nobody knows what actually is going to happen': Snap-On's CEO
Chester Dawson - Bloomberg
Company executives can't stop talking about the US election. Earnings calls in recent weeks have been filled with talk of uncertainty about the aftermath of Tuesday's election, which has delayed spending as potential policy changes loom large. And things are more intense in this presidential election cycle. Mentions of "election" near the word "uncertainty" on S&P 500 companies' quarterly earnings calls this year are markedly higher than they were before the 2020 election.
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| Regulation & Enforcement | | Stories about regulation and the law. | FDIC Issues List of Banks Examined for CRA Compliance
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation (FDIC) today issued its list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in August 2024. The CRA is a 1977 law that requires the FDIC to assess a bank's record of meeting the credit needs of its entire community, including those of low- and moderate-income neighborhoods, consistent with safe and sound operations. As part of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), Congress mandated the public disclosure of an evaluation and rating for each bank or thrift that undergoes a CRA examination on or after July 1, 1990.
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FBI Recovers Funds for Victims in Bank CEO's Embezzlement Case
Associated Press via Bloomberg
Sobs of relief broke out in a federal courtroom in Kansas on Monday as dozens of people whose life savings had been embezzled by a bank CEO learned that federal law enforcement had recovered their money. "I just can't describe the weight lifted off of us," said Bart Camilli, 70, who with his wife Cleo had just learned they'd recover close to $450,000 - money Bart began saving at 18 when he bought his first individual retirement account. "It's life-changing."
/jlne.ws/3NRMY6d
Super Micro Faces Delisting, S&P 500 Removal Amid Auditor Woes
Carmen Reinicke and Brody Ford - Bloomberg
Super Micro Computer Inc. started the year as a hot artificial intelligence trade. But just eight months after shares hit a record high, investors are asking whether the server maker will be delisted by Nasdaq Inc. and booted from the S&P 500. The troubled firm - which has seen shares plummet more than 75% since March - is due to give a business update on Tuesday after the close. Top of mind is what it says about meeting Nasdaq Inc.'s compliance obligations following the resignation of auditor Ernst & Young LLP last week. The auditor cited concerns about Super Micro's commitment to integrity and ethics - a blow that follows a US Department of Justice probe and a damaging short-seller report earlier this year.
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Federal Court appoints receivers to ALAMMC Developments
ASIC
On 1 November 2024, the Federal Court made orders appointing Helen Newman and Andrew Fielding of BDO as receivers of the property of ALAMMC Developments Pty Ltd and 12 related corporate entities. The receivers are tasked with, among other things, conducting investigations into the amount of investor funds received by ALAMMC Developments and the related entities, and to provide a report to the Court within 28 days.
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ASIC takes action to wind up 95 companies
ASIC
ASIC has applied to the Federal Court to wind up 95 companies. ASIC lacks confidence in the conduct and management of the affairs of the companies. ASIC is also concerned that some of the companies are the subject of complaints and appear to be associated with websites which may have facilitated scam activity. On 1 November 2024, Catherine Conneely and Thomas Birch of Cor Cordis were appointed as joint and several provisional liquidators of the companies.
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Three individuals and two firms charged over alleged unauthorised business activities
FCA
The FCA has started criminal proceedings against Anthony Hay, Laura Hay, Tim Stewart, Premier Finance GB Ltd and Proserv GBR Limited, for allegedly engaging in unauthorised business. Anthony Hay, Laura Hay and Tim Stewart are jointly charged for their involvement in the conduct of two Bristol firms, Premier Finance GB Ltd and Proserv GBR Limited, in relation to high-end luxury vacuum cleaners retailing for up to £3,000. Between 1 April 2014 and 31 March 2023, the firms are alleged to have generated at least £4m from unlawful business activities involving thousands of customers.
/jlne.ws/48zZb96
FCA enhances access to market data and investment research to support growth
FCA
The FCA has set out a package of measures to reinforce the UK's leading position in the bond, derivatives and asset management sectors, supporting growth. New transparency rules for bonds and derivatives markets will give investors more information and reduce costs for firms. And under new proposals, asset managers for pooled investment funds will be given greater flexibility in how they pay for investment research, making it easier to buy insight and analysis across borders.
/jlne.ws/3YT8yNO
Banque de France and Monetary Authority of Singapore Conduct Groundbreaking; Post-quantum Cryptography Experiment to Enhance Communication Security
MAS
The Banque de France (BdF) and the Monetary Authority of Singapore (MAS) today announced the successful completion of a groundbreaking joint experiment in post-quantum cryptography (PQC) conducted across continents over conventional Internet technologies. The PQC experiment aims to strengthen communication and data security in the face of quantum computing advancements, and the successful experimentation marks a crucial milestone in the evolution of the protection of international electronic communications against the cybersecurity threats posed by quantum computing.
/jlne.ws/3AoZnLN
Profit/loss, net value and exchange gains/losses of the insurance industry in September 2024
FSC
The pre-tax profit of insurance enterprises at the end of September 2024 was NT$316 billion; the pre-tax profit of life insurance enterprises was NT$293.9 billion, increasing by NT$119.2 billion, or 68.2% compared to last year, while the pre-tax profit of non-life insurance enterprises was NT$22.1 billion, increasing by NT$9.7 billion or 78.2%. Owners' equity of insurance enterprises at the end of September 2024 was NT$2,823.4 billion; owners' equity of life insurance enterprises was NT$2,674.7 billion, going up by NT$710.1 billion, or 36.1% compared to last year, while owners' equity of non-life insurance enterprises was NT$148.7 billion, going up by NT$26.7 billion or 21.9%.
/jlne.ws/3NSHKqy
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Low-volatility ETFs lose favour as investors jump to buffered peers; Despite poor returns in recent years, analysts say people could be missing out on their long-term investment potential
Steve Johnson - Financial Times
Low- and minimum-volatility funds are haemorrhaging money as performance continues to disappoint and investors shift to a newer, shinier way of managing risk in equity markets. Investors have pulled $43.8bn from US-listed low-volatility exchange traded funds since February 2020, according to data from State Street Global Advisors, with just one month of positive flows in the past 22. Money is instead pouring into newer "defined outcome" buffered ETFs, which use derivatives to reduce the risk of investing in equity markets, and which have attracted $31.5bn over the same period.
/jlne.ws/3Uz1GCU
Copycat ETFs Are Infiltrating a 'Finders Keepers' Tickers Market
Vildana Hajric - Bloomberg
Sticking out from the Wall Street crowd is no easy feat at the best of times. Now imagine the plight of money managers across the ever-competitive investment industry, who are struggling to assert ownership of their original ETF offerings as rival firms launch imitator products with strikingly similar tickers. That's what happened to VanEck. The asset manager is an early pioneer of tying a fund's investment theme with its ticker name - a now make-or-break practice for issuers keen to ensure their strategies stick in the minds of investors. After it launched an agriculture-focused fund in the US in 2007 with the ticker MOO, executives at the firm were left reeling after hearing that a similar product was making its debut in the European market some while later.
/jlne.ws/3YQ51js
Harris Win May Give Yen a Boost, Trump Could Deepen Slump; Harris win may strengthen yen if it leads to Fed rate cuts; Trump victory may support the US economy, but tariffs are risk
Hideyuki Sano and Mia Glass - Bloomberg
A victory for Kamala Harris in the US presidential election has the potential to support Japan's ailing currency while a win for Donald Trump would probably boost the Tokyo stock market and put the yen at risk of a deeper slump. Bloomberg Daybreak Election Day in the US 17:26 Subscribe to the Bloomberg Daybreak podcast on Apple, Spotify or anywhere you listen. That's just two of the many possible market outcomes as investors and analysts sketch multiple scenarios for the trajectory of Japanese assets.
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The 'Trump Trade' Isn't What You Think; Some investments tied to a Trump win worked, but with questionable logic; others for the wrong reasons, and some failed miserably
James Mackintosh - The Wall Street Journal
Here are some things that have been touted as a "Trump trade," a bet on Donald Trump winning the election: Buy Trump Media and Technology Group (DJT), which runs his favored social media, Buy bitcoin, gold and the dollar, Sell Treasurys and the Mexican peso, Buy healthcare and prison, stocks; sell clean-energy stocks, Buy European defense stocks, Buy banks, especially regional banks, Buy U.S. stocks while selling the rest of the world
There are plenty more, but the track record of just this handful ought to give investors pause before they place their bets. Some have clearly worked, but with questionable logic. Others worked but at least in part for the wrong reasons. Some failed miserably.
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | US clean energy industry's future hangs in balance on election day; Few industries stand to gain - or lose - more on US election day than renewable sources of power
Amanda Chu - Financial Times
At the mouth of New York's Hudson River, Norwegian oil and gas producer Equinor is building the largest US port for offshore wind, and a potential monument to America's energy future - or its past. As Americans brace for one of the closest presidential elections in the nation's history, investors and executives alike have been parsing campaign statements for which industries stand to gain or lose the most in the next administration. But as election day nears, one is clearly emerging as the most exposed to the outcome: renewable energy.
/jlne.ws/3YxIMgN
Saudi Aramco Faces $31 Billion Dividend Dilemma as Debt Jumps; Aramco's ability to borrow can maintain payouts amid oil slide; It flipped into net-debt position for first time in two years
Anthony Di Paola - Bloomberg
Saudi Aramco will have a crucial decision to make early next year: Cut its $31 billion quarterly dividend and risk worsening the kingdom's budget deficit, or keep borrowing to maintain the payout. The world's biggest oil exporter is a key cog in the Saudi financial system with its crude sales and generous payouts helping fund Crown Prince Mohammed Bin Salman's multitrillion-dollar spending plans. The kingdom's budget is getting stretched as oil prices remain subdued while production stays near the lowest levels in three years.
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Canada's Trudeau government under fire from all sides on energy and climate policy; Policymakers caught between attacks from oil-rich states, the environmental watchdog and activists
Ilya Gridneff - Financial Times
Canada's Trudeau government is under sustained attack over its stance on energy and climate change, as oil-rich provinces led by Alberta hit out at federal efforts to slow emissions while watchdogs and activists call for more action. Ahead of the UN COP29 climate summit in Azerbaijan next week, Canada set out on Monday how it aimed to cut greenhouse gases from the oil and gas sector, responsible for almost a third of its pollution. The industry is booming, thanks to US demand and Canada's extensive oil sands, among the dirtiest crude in the world.
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China wants talks on trade measures at COP29 climate summit, document shows
Kate Abnett - Reuters
China has requested that countries hold talks at next week's COP29 U.N. climate summit on carbon border taxes and other "restrictive trade measures" that Beijing says are hurting developing countries, according to a document seen by Reuters. The request raises the prospect that mounting trade tensions between major economies could disrupt this year's United Nations climate talks, which begin on Nov. 11 in Baku, Azerbaijan.
/jlne.ws/3AFgYPs
Shanghai Unveils Green Shipping Plan as New Emissions Rules Loom; IMO's decarbonization plan expected to be outlined in 2025; Transition to methanol and ammonia could take many years
Bloomberg News
The government in Shanghai wants to convert the world's busiest port into a center for greener shipping. China's biggest city aims to build its capacity to supply cleaner fuels in preparation for more stringent global emissions mandates. The target is to raise Shanghai's low-carbon bunkering to over 1 million tons a year by 2030, according to a statement on Friday.
/jlne.ws/3UCJZSI
Global GDP Seen Taking Much Bigger Climate Hit Than First Feared
Frances Schwartzkopff - Bloomberg
The economic cost of climate change will likely be much more severe than previously feared, as fresh data informs models used to predict the most probable outcomes. Taking the latest available climate data into account, including record increases in temperatures, "the projected physical risk impact" of climate change on gross domestic product has quadrupled by 2050 in some scenarios, the Network for Greening the Financial System said in a report on Tuesday.
/jlne.ws/48J7T52
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | CoreWeave Picks Morgan Stanley, Goldman, JPMorgan for IPO; AI startup's backers include Nvidia, Cisco and Coatue; CoreWeave was valued at $23 billion in October transaction
Ryan Gould, Bailey Lipschultz, Gillian Tan, and Katie Roof - Bloomberg
CoreWeave, a cloud-computing provider that's one of the hottest startups in artificial intelligence, has selected Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. to lead its planned initial public offering, according to people familiar with the matter. The company is planning to go public next year, the people said, asking not to be identified because the information is private.
/jlne.ws/48DTmY1
Commerzbank Sells SRT as CEO Embarks on Plan to Free Up Capital; Deal is linked to a portfolio of EUR2 billion in corporate loans; Sale is latest as market for significant risk transfers booms
Esteban Duarte and Arno Schuetze - Bloomberg
Commerzbank AG is working on a significant risk transfer amid an effort by Chief Executive Officer Bettina Orlopp to unlock capital. The German lender is selling an SRT linked to a portfolio of EUR2 billion ($2.2 billion) in corporate loans, according to people familiar with the matter. The size of the SRT is about EUR150 million, said the people, who asked not to be identified because the matter is private.
/jlne.ws/3CihnrS
European Banks' Commercial Real Estate Exposures 'Visibly Deteriorating,' ECB Finds; Smaller specialized banks could experience stress: ECB study Lending practices can exacerbate loop with property funds
Neil Callanan - Bloomberg
Banks in the euro region have about EUR1.3 trillion ($1.4 billion) in outstanding loans to commercial real estate investors and credit quality is "visibly deteriorating," European Central Bank researchers found in a study of the links between CRE and the financial system. "Exposures are not evenly spread across banks, and a tail of smaller, specialized banks with larger exposures" may "experience stress," according to the report. The researchers pointed to a rise in non-performing loans as evidence of the worsening creditworthiness.
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State Street says it is 'shopping' for a private credit manager; Money manager tries to catch up with rivals as investors shift into unlisted assets
Brooke Masters - Financial Times
State Street's asset management arm is looking to buy a stake in a private credit or infrastructure manager, as one of the world's largest passive fund managers tries to boost its presence in the fast-growing realm of alternative assets. "We are shopping" for either a full acquisition or a minority stake combined with product partnerships, Yie-Hsin Hung, chief executive of State Street Global Advisors (SSGA), told the Financial Times. The $4.7tn money manager wants to do a deal because it is behind rivals in offering nonlisted investments, including secondary funds that buy up stakes in existing private funds. Alternatives account for less than 5 per cent of SSGA's assets under management.
/jlne.ws/3YOhLqF
Apollo Assets Reach $733 Billion, Boosted by Wealth Clients; Total capital raised from individuals exceeds 2023 inflows; Firm boosts assets under management 16% from a year earlier
Laura Benitez - Bloomberg
Apollo Global Management Inc.'s push to target wealthy individuals helped boost the firm's assets under management to $733 billion, a 16% increase over the same period a year earlier. The firm reported adjusted net income of $1.13 billion, amounting to $1.85 per share, in a statement announcing third-quarter earnings on Tuesday. That beat analysts' estimates of $1.73 per share. Shares of Apollo rose 3.7% to $144.65 at 7:47 a.m. in New York.
/jlne.ws/3YOjFYl
Hong Kong Fund Zeal to Close, Return $1.6 Billion to Clients; Firm to exit after "successful yet tumultuous" journey; Founders have decided to start planning for retirement
Denise Wee and Bei Hu - Bloomberg
Hong Kong-based fund manager Zeal Asset Management Ltd., whose clients have included the Norwegian sovereign wealth fund, will close after 15 years and seek to return at least $1.6 billion to clients. Zeal's three founding partners are planning for retirement from the asset management business, which is "tentatively taking place before the end of 2025," according to a statement on Tuesday. The founders include Jacky Choi, its chief investment officer, Daniel Poon, its deputy chief investment officer and Franco Ngan, its chief executive officer.
/jlne.ws/4hD0h8i
Goldman Plans to Promote Biggest Partner Class of Solomon Era; Number will exceed the 80 partners that were announced in 2022; The bank is grappling with a dearth of women in its top ranks
Sridhar Natarajan - Bloomberg
Goldman Sachs Group Inc. plans to add the most executives to its partnership since David Solomon took over. The promotions to be announced this week will exceed the previous high of the Solomon era, set in 2022, when 80 employees made the cut, according to people with knowledge of the matter. The moves are part of the bank's biennial ritual to tap a select few to join the ranks of 1-percenters at Goldman Sachs. The Wall Street firm stands out from its peers in retaining a nod to its pre-public days as a partnership by maintaining that title as its highest rank. A little more than 400 executives are part of the group - less than 1% of its workforce.
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | At Business Schools, More Women Are Getting MBAs; The number of female students enrolled has increased 13% over the last four years.
Paul Keegan - Bloomberg
When it comes to women making gains in MBA programs, the long-term trends are encouraging, even as progress can seem painfully slow. According to a report from the Forté Foundation, the number of entering female students this fall at 61 MBA programs in the US and abroad reached a new high of 6,166. Since 2020, enrollment of female students has increased 13%, outpacing the 3% growth rate for men and women combined. The schools all are members of Forté, an advocacy organization that works to help more women earn an MBA. The nonprofit has published annual data on women's enrollment since 2011. That year, there were roughly 4,000 women enrolled in full-time MBA programs at 39 schools.
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US employers warn staff to remain civil to avoid election conflict; Business leaders are concerned divisions could fuel 'war of words' in offices
Taylor Nicole Rogers - Financial Times
US employers are monitoring staff social media posts, issuing guidelines for office political conversations and asking workers to remain civil as they brace for a surge in workplace conflicts ahead of the presidential election today. Business leaders fear political turmoil could spill over into their offices amid the contentious contest between vice-president Kamala Harris and former president Donald Trump.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Intensity of the IV Fluid Shortage at US Hospitals Remains Very High
Brendan Murray - Bloomberg
IV fluid supplies across the US will likely remain unstable until early December, forcing more hospitals to adopt conservation measures to combat shortages as the federal government tries to police cases of price gouging. After Hurricane Helene came ashore in Florida in late September, heavy rains caused widespread flooding across the Southeast. Among the businesses that suffered catastrophic damage was Baxter International's North Cove operations in Marion, North Carolina. The facility accounts for about 60% of intravenous fluid solutions for American hospitals.
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The Global Wellness Industry Is Now Worth $6.3 Trillion; A new report describes the wellness-industrial complex as larger than the pharmaceutical industry.
Sarah Rappaport - Bloomberg
The global wellness industry was worth $6.32 trillion in 2023, according to a new report from the Global Wellness Institute, a leading industry group. That's 25% larger than it was in 2019, making it bigger than the sports and pharmaceutical industries. "Growth was even stronger than we predicted," says Katherine Johnson, one of the authors of the Global Wellness Economy Monitor. She added that the wellness industry was boosted by the focus on health and well-being as a result of the pandemic. Research from the nonprofit argues that trends such as an aging population, chronic disease and an increased focus on mental health are helping drive growth.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Chinese Red Tape Leaves Billions of Dollars of Deals in Limbo
Dong Cao, Julia Fioretti and Dave Sebastian - Bloomberg
The long reach of Chinese regulators is making it hard for certain companies in the world's second-biggest economy to carry out transactions, leaving billions of dollars worth of deals on the table. Even with Beijing's stimulus in September and subsequent rally in the stock market, 2024 is set to be the worst year in more than a decade for mergers and acquisitions, according to data compiled by Bloomberg. And while better than the lows of 2023, initial public offerings in Hong Kong have raised less than a fifth of the amount four years ago.
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China Plans to Sell Dollar Bonds in Saudi Arabia as Ties Deepen; MOF to sell $2 billion sovereign bonds in Riyadh next week; China may tap dollar bond market again next year: Creditsights
Bloomberg News
China is planning to sell dollar bonds in Saudi Arabia next week, its first debt issuance in the US currency since 2021. The Ministry of Finance will sell up to $2 billion of notes in the week of Nov. 11 in Riyadh, it said in a statement on Tuesday. It last sold dollar bonds in October 2021, data compiled by Bloomberg show. China's plan to sell dollar debt in Saudi Arabia may be a part of its effort to boost economic and financial-market ties with the nation.
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Foreign investors fear India's stock market boom may be over; International investors pull out more than $10bn from Indian stocks as indices record largest fall since March 2020
Chris Kay in Mumbai, Joseph Cotterill in London and Arjun Neil Alim in Hong Kong - Financial Times
Foreign investors pulled more than $10bn out of Indian stocks in October, the biggest monthly exodus since the start of the coronavirus pandemic, on growing concerns that the market's huge bull run may finally be coming to an end as the economy slows. India's two main share indices last month posted their worst monthly losses since March 2020 while the rupee fell close to a record low against the US dollar, as international interest cools in what was one of the hottest global markets.
/jlne.ws/4eb4UmU
Record Foreign Exodus Casts a Pall Over India's Stock Market; Global funds sell almost $11 billion of shares in October; MSCI India Index slides 10% from its late September peak
Chiranjivi Chakraborty - Bloomberg
Foreign investors are souring on India's stock market, selling a record amount of shares amid signs the South Asian nation's post-pandemic economic boom is losing steam. Global funds pulled out nearly $11 billion on a net basis in October, helping drive the MSCI India Index toward a so-called technical correction on Tuesday. Sustained foreign investor outflows could act as a drag on near-term stock performance, according to Citigroup Inc.
/jlne.ws/40ymn5J
British farmers have nothing left to give; The Budget's new IHT measures demonstrate a profound misunderstanding of how our agriculture works
Tom Bradshaw - Financial Times (opinion)
The writer is president of the National Farmers' Union.
This Budget was meant to be all about growth. It was an opportunity for the new government to deliver on its promises, reset its relationship with the countryside, as the prime minister said he would, and invest in the largest manufacturing sector in the UK - food and drink. Instead, it's taken the legs out from under the primary producers of the sector, farmers.
/jlne.ws/3UCzcbp
Is Germany's business model broken? All three of the country's major industries are in crisis, and the economy is flatlining. Are politicians finally waking up?
Olaf Storbeck in Frankfurt, Patricia Nilsson in Krefeld and Guy Chazan in Berlin - Financial Times
In a 30-plus-year career in corporate restructuring, consultant Andreas Ruter has seen it all: the dotcom bust, September 11, the global financial meltdown, the euro crisis, Covid-19. But what's happening right now in corporate Germany is "unprecedented" and "of a completely different order of magnitude", says Ruter, the country head of AlixPartners. The federal republic's all-important automotive sector, chemical industry and engineering sector are all in a slump at the same time. Ruter's firm is so overwhelmed by demand for restructuring that it's turning potential clients away.
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Kremlin Oil Revenue Shrank by 29% in October Amid Lower Prices
Bloomberg News
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China's latest cry for more babies may fall on deaf ears
Farah Master - Reuters
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UK pays more than EU for gas as winter looms; High transmission costs and global shortage of LNG push gap over European prices to widest since late 2021
Shotaro Tani - Financial Times
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Ethiopia Eyes Big Bond Offer to Settle Debt of State-Owned Firms; Proceeds to repay loans owed by state-owned enterprises; Domestic debt seen narrowing to 14.8% of GDP this fiscal year
Fasika Tadesse - Bloomberg
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Enough Tea to Brew 7.5 Billion Cups Is Piled Up in East Africa; Kenya aims to clear 15 million kilograms of tea in six months; Growers are fetching low prices as buyers enjoy a bargain
Eric Ombok and Mumbi Gitau - Bloomberg
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