| January 20, 2025 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
What a weekend! And what a big and cold day it is today, unless you are a $TRUMP or $Melania memecoin. The first hostages from the Hamas/Israel ceasefire deal were released. Outgoing President Joe Biden made his last acts as president, including pardoning people who have not committed crimes but may be targets of retribution by the raring-to-be-inaugurated President Trump. Trump and his wife Melania both launched memecoins, which exploded in value and generated criticism from the crypto community. Bitcoin also had its moment, hitting new all-time highs. Political appointees across the Biden administration will step down today, if they have not already, including the SEC's Gary Gensler and the CFTC's Rostin Behnam. TikTok went dark, and then the signs of light emerged as Trump indicated a stay of execution was at hand. And tonight, the Ohio State Buckeyes will meet the Notre Dame Fighting Irish in the 2025 College Football Playoff National Championship in Atlanta. And to top it all off, it is a national holiday, Martin Luther King Jr. Day, and the markets are closed.
The $TRUMP coin surged to over $75 before stabilizing above $52, with a market cap of $10.45 billion and a fully diluted valuation of $52.3 billion. At one point, President-Elect Trump had an additional $20 billion of personal wealth on paper, or rather on cryptography. Meanwhile, Melania Trump's $MELANIA meme coin, launched Sunday, is trading near $9 after peaking above $13, with a valuation of $8.9 billion, Investor Business Daily reported today. As the saying goes, grifters will grift.
Burying the lede, incoming President Trump is planning on calling for a national emergency, to invoke additional powers, Bloomberg reported. The good news is that he didn't have to burn down the Reichstag, er, Capitol, in order to declare them. The MAGA supporters in Washington, DC were left in the cold rather than busting down the doors to get inside for the warmth of the inauguration ceremony.
Hedge funds have charged nearly half of their gross profits in fees since the industry's inception in 1969, according to LCH Investments, the Financial Times reported. In a story titled "Hedge funds: compensation scheme or asset class?", it said managers generated $3.7 trillion in gross gains, but investors paid $1.8 trillion in fees, with the fee share rising from 30% before 2000 to 50% since, largely due to higher management fees. The traditional "two and 20" model-2% annual management fees and 20% performance fees-has evolved, with top-performing funds like Citadel, DE Shaw, and Millennium charging higher rates or employing "pass-through" models, effectively adding 3-10% in annual costs plus performance fees of 20-30%. Efforts to reduce fees have struggled as returns have declined.
Here is something a little different. Cattle gallstones, valued at up to $5,800 an ounce-twice the price of gold-are driving a global smuggling frenzy, fueled by their use in China's $60 billion traditional medicine industry, The Wall Street Journal reported. Sought for their potential stroke-treatment benefits, gallstones are harvested from slaughterhouses in Brazil, the world's largest cattle exporter, and smuggled to Hong Kong, the gateway to China. Brazilian farmers and traders have turned these stones into a lucrative underground market, with theft, smuggling, and even fraud becoming rampant. Despite the high demand, gallstones are becoming rarer as modern farming practices reduce their occurrence. Researchers caution producers against unrealistic expectations, while gallstones remain a prized commodity tied to China's aging population and rising cardiovascular issues.
Here are the headlines from in front of FOW's paywall from some recent stories: ANALYSIS: SGX Iron ore traders turn bearish heading into Chinese New Year, Nasdaq Helsinki launches first crypto ETNs as Trump takes office, India's NSE launches host of single stock derivatives - FOW Data, ANALYSIS: ESTR emerges from Euribor's shadow in Euro interest rates, LME Hong Kong hub to bring China 'closer' to international market and Standards body targets position transfers in latest guidelines.
Silvana Davi, the daughter of PR and marketing pro Silvia Davi, is starting a new position as business analyst intern at FINRA, Silvana reported on LinkedIn.
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:
- Cboe Unveils New Brand for Exchange Technology Platform, Marking New Chapter in Technology Innovation and Growth from Cboe.
- Seagull to albatross: Indian importers' option strategy hit by rupee's plunge from Reuters.
- 'Regime shift' in market volatility likely underway, according to Cboe's Mandy Xu from CNBC. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Cboe's Rob Hocking Highlights Innovation in VIX Products at FIA Expo
JohnLothianNews.com
Rob Hocking, senior vice president, global head of product innovation for Cboe Global Markets, spoke with JLN about the VIX index and its related products, including new product launches and innovations, at FIA Expo 2024.
Hocking said he was excited to have received the guidance the exchange had been waiting for on Bitcoin ETF options. Cboe is the listing venue for two of those ETF options and Cboe will now be able to offer a listed, centrally-cleared transparent market in that asset class.
Watch the video »
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DTCC's Nadine Chakar: Tokenization and Blockchain to Revolutionize Post-Trade Efficiency 28
JohnLothianNews.com
Tokenization and blockchain technology are poised to significantly boost efficiency in post-trade markets, according to Nadine Chakar, global head of DTCC Digital Assets.
In an interview with John Lothian News at FIA EXPO, Chakar highlighted the potential for smart tokens and tokenized instruments to streamline investment processes.
Watch the video »
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JPX's Matthias Rietig Discusses Growth and Innovation in Japan's Futures and Carbon Markets at FIA Expo
JohnLothianNews.com
Matthias Rietig, Senior Officer and Chief Representative Singapore Branch at Japan Exchange Group (JPX), shared key insights into the company's recent developments in futures trading, carbon markets, and market-making programs during an interview with John Lothian News at the FIA Expo in Chicago. JPX, which has seen steady growth over the past few years, is positioning itself as a key player in the global derivatives and energy markets, particularly with Japan's evolving fixed income and carbon trading sectors.
Watch the video »
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TikTok restores US service after Trump says "we have to save it"
David Shepardson - Reuters
TikTok began restoring its services on Sunday after President-elect Donald Trump said he would revive the app's access in the U.S. when he returns to power on Monday. "Frankly, we have no choice. We have to save it," Trump said at a rally on Sunday ahead of his inauguration, adding that the U.S. will seek a joint venture to restore the short-video sharing app used by 170 million Americans. In a message to users hours before the rally, TikTok said: "As a result of President Trump's efforts, TikTok is back in the U.S."
/jlne.ws/40lTqZ0
****** If you want to know why there is concern about the Chinese Communist party having access to TikTok data, you might want to read or listen to "The Age of Surveillance Capitalism: The Fight for a Human Future at the New Frontier of Power."
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Global study shows majority of 18-34 year olds support using violence and disinformation to drive change
Diane Brady - Fortune
According to the latest Edelman Trust Barometer, people have moved beyond polarization to "aggressive advocacy for self-interest." Trust in governments, business leaders and the media has devolved to the point where people feel angry, alienated and willing to drive change by almost any means possible, according to the 2025 Edelman Trust Barometer.
/jlne.ws/4jq2iFo
***** After a discussion over the weekend with someone who falls into this age group, or close enough, I can tell you there is real anger. I don't know what form of disruption the anger will take should it morph beyond feelings.~JJL
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Millions across the U.S. brace for plummeting temperatures and winter storms
The Associated Press
Residents across the country from the Northern Plains to the tip of Maine are bracing for dangerously low temperatures as tens of millions of residents along the East Coast contend with a thick blanket of snow - and more snowfall in the forecast.
/jlne.ws/4h0dfvR
****** I sit near a window looking out onto the street in front of my house while editing this newsletter. It is a bit frosty near the window with the temperatures so cold. I think I am going to reposition myself by the fireplace temporarily. I may have to fight for space with the dogs.~JJL
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Friday's Top Three
Our most clicked story on Friday was Markets Are Closed Monday for Martin Luther King Jr. Day. "This year, MLK Day is also Inauguration Day." Second was WATCH LIVE: Scott Bessent testifies at Senate confirmation hearing for treasury secretary, from PBS News. And third was Morgan Stanley Profit Doubles With Big Stock-Trading Beat, from Bloomberg.
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| Lead Stories | Trump to declare national energy emergency, unlocking new powers
Ari Natter and Jennifer A. Dlouhy - Bloomberg
President-elect Donald Trump is poised to invoke emergency powers as part of his plan to unleash domestic energy production while seeking to reverse President Joe Biden's actions to combat climate change, according to people familiar with the matter. The move is set to be among an array of actions Trump will take - starting hours after he's sworn in on Monday - to deliver on campaign promises to boost domestic energy output. The president-elect is prepared to compel policy shifts that would enable new oil and gas development on federal lands, while directing a rollback of Biden-era climate regulations, said the people who asked not be named due to the confidentiality of the information.
/jlne.ws/3Cj2J3R
Crypto executives warn Trump's memecoins harm the industry
Ryan Weeks - Bloomberg
Donald Trump and his wife Melania's new memecoins ignited criticism from crypto executives who were expecting the digital-asset sector to be treated seriously by the Republican's incoming US administration. The president-elect unveiled the "Trump" token on Friday and his wife Melania launched her "Melania" effort on Sunday. The Trump memecoin's market value hit $15 billion at one point but then briefly slid below $8 billion as Melania's token took some of the spotlight, figures from aggregator CoinMarketCap show.
/jlne.ws/3DZuZcd
Hedge Funds Kept $1.8 Trillion as Fees, or Half Their Gains
Nishant Kumar - Bloomberg
Hedge funds have long been regarded as notoriously expensive. New research reveals just how costly they truly are for their clients. Of the $3.7 trillion in profits they have earned as an industry since 1969, nearly half or a staggering $1.8 trillion was gobbled up as fees, according to estimates by LCH Investments, a fund of hedge funds. With soaring assets, hedge funds have raised their charges to 50.4% of gains, up from the roughly 30% they earned until the early 2000s.
/jlne.ws/4g4pO83
**** Here is the Financial Times version of this story, titled "Hedge fund managers pocket nearly half of investment gains as fees," with the subheadline "Industry has taken $1.8tn in charges since the 1960s, according to LCH research." And here is The Wall Street Journal's version, titled "Hedge-Fund Fees Eat Up Half of Clients' Profits," with the subheadline "Over the past two decades, fees have amounted to more than 50% of gross gains, LCH research finds."
Wall Street's changing of the guard is underway
Ruth Umoh - Fortune
One of the most widely discussed topics on Wall Street over the years has been the question of who will succeed Jamie Dimon as CEO of JPMorgan Chase, a role he has held for nearly two decades. Last week, the conversation gained renewed attention after Dan Pinto, the firm's president and COO, announced his retirement, leading to the appointment of Jennifer Piepszak, currently the co-CEO of JPMorgan's commercial and investment bank, as the new COO. While Piepszak seems like a natural candidate for the CEO position, she has reportedly expressed disinterest in the role. During an earnings call last week, Dimon addressed the ongoing succession process, hinting that his successor might be someone less widely known within the company. "We have several exceptional people," he remarked. "You guys know most of them. Maybe one or two you don't know."
/jlne.ws/3WslAjH
Quantum Blockchain mines bitcoin with AI and we have more questions
Bryce Elder - Financial Times
It's easier to explain retail trading of penny shares as a hobby than an investment. There's a gambling aspect, sure enough. Sometimes a stock will double, or halve, or wipe out when the CEO runs off to Greece. Those kinds of events are occasional, however, whereas the hobbyist aspects are constant. Most of the enjoyment derived from penny-stock ownership seems to come from poring over the literature, fighting on message-boards, and badgering interested parties.
/jlne.ws/4arELzO
Trump's Cryptocurrency Surges to Become One of the World's Most Valuable; The new business venture by the Trump family is generating intensifying criticism and ethics questions, even as it has turned into an overnight phenomenon, generating a windfall on paper.
Eric Lipton and David Yaffe-Bellany - The New York Times
The Trump family's new crypto token surged in just two days to become one of the most valuable forms of digital currency in the world, creating the potential for a multibillion-dollar payout to the family but also generating a storm of questions about the conflicts of interest the new venture creates. President-elect Donald J. Trump announced the launch of the new token, $Trump, on Friday night as hundreds gathered for a crypto-inspired inauguration ball not far from the White House. The venture won praise by some as a sign of how digital currencies are now going mainstream in the United States. But economists and even some longtime crypto investors said the new digital coin, known as a memecoin, might also emerge as a landmark moment in the speculative history of crypto trading and the potential dangers it poses to the financial system.
/jlne.ws/42ienX9
Melania Trump launches her own cryptocurrency
Peter Hoskins - BBC
Incoming first lady Melania Trump has launched a cryptocurrency on the eve of her husband's inauguration as US president. The announcement comes after President-elect Donald Trump launched the $Trump cryptocurrency. Both coins have risen but have seen volatile trade. "The Official Melania Meme is live! You can buy $Melania now," she posted on the social platform X on Sunday. The website for the "Official Melania Meme" says it is a crypto asset created and tracked on the Solana blockchain.
/jlne.ws/3Ecp1Vm
'Which Time Were You Lying?': The Great CEO Flip-Flop Over Trump Hits Davos; The World Economic Forum's extravaganza thought it was done with Trump. Now he's back - and heads of state, Wall Street billionaires and tech moguls are falling in line.
Sridhar Natarajan and Ted Mann - Bloomberg
It felt as if the chill had lifted over the Swiss Alps, where CEOs flock each January to mingle and be rich and think deep thoughts. The elites who gather in Davos, the resort town synonymous with wealth and power, breathed a collective sigh of relief: Finally, we're done with Donald J. Trump. Yes, well. Four years later, the private jets are returning to Davos, and Trump is returning to the White House.
/jlne.ws/42gGdmM
London Metal Exchange Approves Hong Kong as Warehouse Location for First Time; World's top metals exchange says city is 'natural hub'; Plan will likely require additional government support: Marex
Bloomberg News
The London Metal Exchange has approved Hong Kong as a warehouse location for the first time as the bourse seeks a stronger link to mainland China - the world's biggest metals market. The Hong Kong storage depots will be permitted to hold its main base metals, including copper, zinc and aluminum, the LME said in an emailed statement. It will become an active delivery point three months after the approval of the first warehouse company and location.
/jlne.ws/3PJLSue
****Here is the story from The South China Morning Post and The Business Times.
FTC Surveillance Pricing Study Indicates Wide Range of Personal Data Used to Set Individualized Consumer Prices; The agency details interim insights from staff perspective examining how companies track consumer behaviors to inform surveillance pricing
Federal Trade Commission
The Federal Trade Commission's initial findings from its surveillance pricing market study revealed that details like a person's precise location or browser history can be frequently used to target individual consumers with different prices for the same goods and services. The staff perspective is based on an examination of documents obtained by FTC staff's 6(b) orders sent to several companies in July aiming to better understand the shadowy market that third-party intermediaries use to set individualized prices for products and services based on consumers' characteristics and behaviors, like location, demographics, browsing patterns and shopping history.
/jlne.ws/4hfwq5f
The World Is Getting Riskier. Americans Don't Want to Pay for It.; California is a microcosm of what happens when insurance breaks down: Either households face potential ruin, or the public is handed a financial time bomb.
Greg Ip - The Wall Street Journal
Insurance is one of finance's great gifts to mankind. Through the statistical magic of risk pooling, an individual can obtain peace of mind and protection against devastating loss. This remarkable invention shows signs of breaking down. As risks from illness and old age to natural and financial disaster grow, so does Americans' resistance to paying to insure against them. The latest example is California. Earlier this month, JPMorgan estimated the fires around Los Angeles had inflicted $50 billion in losses, of which only $20 billion were insured.
/jlne.ws/4aqUq2H
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Inside an Elite Ukrainian Unit's Mission to Capture a North Korean Soldier; Ukraine wanted to show that North Korean troops are fighting alongside Russian soldiers. It took a high-stakes mission to prove it.
Jane Lytvynenko and Dasl Yoon
The Ukrainian special-forces team closed in on the North Korean lying alone and injured in a forest in Russia's Kursk region. Spotting the Ukrainians, the young soldier brandished a hand grenade in a desperate threat. The Ukrainian team's commander, a captain with the call sign Green, stepped forward to talk him down using the few phrases of Korean he had learned just for this eventuality. "Brother, everything's all right," Green tried to tell him.
/jlne.ws/42gL1sk
Putin congratulates Trump ahead of inauguration, says open to talks on Ukraine and nuclear arms
Reuters
Russian President Vladimir Putin congratulated U.S. President-elect Donald Trump on taking office hours before Trump's inauguration in Washington and said he was open to dialogue with the new U.S. administration on Ukraine and nuclear arms. Putin, who said he wanted to secure long-lasting peace in Ukraine rather than a short ceasefire, made the comments during a meeting of Russia's Security Council.
/jlne.ws/4hkopv7
U.S. LNG Sales To Ukraine Transform Global Energy Picture
Ken Silverstein - Forbes
The United States started shipping liquefied natural gas to Ukraine in December. This gesture aligns with Ukraine's decision to terminate its transit agreement with Russia on January 1, 2025. Ukraine's largest utility company, DTEK, has entered into a two-year contract with the U.S. company Venture Global. Ukrainian President Zelensky announced that his country would formally end its business relationship with Russia, stating that the revenues-which amount to billions-are used to build weapons that kill Ukrainians. The move gives the United States more leverage in Western and Eastern European energy markets.
/jlne.ws/4gblYdj
Ukraine war briefing: Russia suffered record casualties in 2024, claims Ukrainian commander in chief
The Guardian
Oleksandr Syrskyi claims in interview that 150,000 Russian soldiers died last year; Ukraine shoots down 43 Russian drones. What we know on day 1,062.
/jlne.ws/42pkjxF
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel and Hamas Swap Hostages and Prisoners as Ceasefire Starts; Three female Israelis released for 90 Palestinian prisoners; It was the first halt in fighting in Gaza since November 2023
Galit Altstein - Bloomberg
A long-delayed ceasefire in the Gaza war began taking hold as Hamas released three hostages on Sunday in exchange for 90 Palestinians held in Israeli prisons. The first halt in the war since November 2023 went largely as planned, although it was delayed by about three hours after Hamas failed to provide a list of the hostages it planned to free.
/jlne.ws/4h3hd72
Gaza Challenges Mount as Hostages and Prisoners Walk Free; Next exchange is on Saturday; aid is pouring into the strip; Question marks over Israeli cabinet strength; future of Hamas
Ethan Bronner - Bloomberg
The Gaza ceasefire has entered a second day, with hundreds of aid trucks cleared to enter the war-ravaged strip after the initial hostages-for-prisoners exchange. What comes next is far from certain. Israeli Prime Minister Benjamin Netanyahu's administration has been jeopardized by the US-backed deal, with one far-right cabinet member pulling his faction out of the ruling coalition in protest. A second, Finance Minister Bezalel Smotrich, has vowed to follow suit if the 15-month war against Iran-backed Hamas doesn't resume in six weeks. That could create a minority government.
/jlne.ws/3PHTVrh
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Australia Day Holiday Operating Hours
FEX
FEX Global (FGL) operating hours and amended product timing for the market over the Australia Day period are as follows: Change to Normal Operations Friday 24th January 2025: Night Session Closed (from 2030hrs) Monday 27 th January 2025: Closed Tuesday 28th January 2025: Normal trading recommences at Day session Open (from 1000hrs).
/jlne.ws/4g7RM30
LME approves Hong Kong as warehouse location
LME
The LME has today confirmed its approval of Hong Kong as an LME warehouse location. Hong Kong will join the LME's existing network of 32 locations spanning the USA, Europe and Asia.
/jlne.ws/3PMjJSY
Listing of Hong Kong SAR as an LME Delivery Point for Aluminium Alloy, Copper, Lead, Nickel, Primary Aluminium, Tin, and Zinc
LME
Hong Kong SAR has been approved as an LME Delivery Point and the listing will become active three months after the first warehouse company has been approved.
/jlne.ws/40F8HFt
From Sri Lanka to Luxembourg: DFCC Bank's Historic Green Bond Now Listed on Luxembourg Stock Exchange
LuxSE
20 January 2025, DFCC Bank together with the Luxembourg Stock Exchange (LuxSE) are proud to announce the dual listing of DFCC's historic Green Bond on LuxSE and display on the prestigious Luxembourg Green Exchange (LGX). This milestone follows the bond's initial issuance and listing on the Colombo Stock Exchange (CSE) in September 2024, becoming Sri Lanka's first-ever Green Bond. Reinforcing DFCC Bank's leadership in sustainable finance, this achievement builds on its long-standing relationship with LuxSE, which began in 1998 with the listing of a 10-year Floating Rate Note-the first international listing of a debt security by a Sri Lankan entity.
/jlne.ws/3C6EWUO
District Publishes Company Description in Connection with Listing on the Nasdaq First North Growth Market in Sweden
Nasdaq
District Metals Corp. (TSXV: DMX) (OTCQB: DMXCF) (FSE: DFPP); ("District" or the "Company"). On Thursday December 12, 2024 Nasdaq Stockholm AB approved Districts application for admission to trading the Company's depositary receipts (the "DMX SDRs") on the Nasdaq First North Growth Market ("Nasdaq First North"). Today, January 17, 2025, the Company publishes a Company Description, in accordance with Nasdaq First North rules for application. The preliminary day for the first day of trading on Nasdaq First North is set to be January 23, 2025, dependent on the Company meeting the listing conditions summarized on December 17, 2024.
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Perplexity Said to Submit Bid to Merge With TikTok's US Unit
Julia Love - Bloomberg
Perplexity AI submitted a bid to TikTok parent ByteDance Ltd., to merge with its US operations and create a new entity, according to a person with knowledge of the matter. The structure would allow most of ByteDance's existing investors to retain their stakes, according to CNBC, which cited a person with knowledge of the situation, and reported on the bid earlier Saturday.
/jlne.ws/42mtcYJ
Microsoft-OpenAI Partnership Raises Antitrust Concerns, FTC Says; Federal Trade Commission probed big tech, AI relationships; Agency opened inquiry into tech investments last year
Emily Birnbaum, Dina Bass, and Rachel Metz - Bloomberg
Microsoft Corp.'s $13 billion investment in OpenAI raises concerns that the tech giant could extend its dominance in cloud computing into the nascent artificial intelligence market, the Federal Trade Commission said in a report released Friday. The commission said Microsoft's deal with OpenAI, as well as Amazon.com Inc. and Google's partnerships with AI company Anthropic, raise the risk that AI developers could be "fully acquired" by the tech giants in the future.
/jlne.ws/4aqRy5M
AI offers a rare look inside the minds of CEOs-and can tell if they're depressed just based on how they sound on earnings calls
Sasha Rogelberg - Fortune
Researchers debuted a new measure of identifying CEO depression by using AI learning models to analyze vocal features from earnings call recordings. This research has helped identify factors that may contribute to mental health challenges among executives. CEOs might be able to give away mental health challenges just by how they talk about their companies' earnings to investors. A study published this month in the Journal of Accounting Research used artificial intelligence to analyze chief executives' speech recordings to identify depression. Researchers from Indiana University's Kelley School of Business and the University of Kentucky debuted a measure of identifying the severity and prevalence of depression among chief executives by training AI language models to analyze vocal patterns of CEOs.
/jlne.ws/42hCTb7
Connectivity, generative AI's impact key supply chain software themes at NRF '25
John Kingston - FreightWaves
The first conference each year for supply chain software suppliers to show off their capabilities is the giant National Retail Federation meeting here, and 2025 was no different. Among the presentations: One key supplier touted the fruits of a two-year project, and another discussed how its generative AI tool has been faring in its first months.
/jlne.ws/42pgw3p
Amazon Pauses Drone Delivery After Aircraft Crashed in Rain; Deliveries halted in Texas, Arizona, pending a software repair; Drone program suffering setbacks 11 years after its unveiling
Matt Day - Bloomberg
Amazon.com Inc. is pausing all commercial drone deliveries after two of its latest models crashed in rainy weather at a testing facility. The company said Friday it was immediately suspending drone deliveries in Texas and Arizona to fix the aircraft's software. It's the latest setback for a program inching toward widespread commercial service more than 11 years after Amazon founder Jeff Bezos announced an initiative to build drones capable of delivering products to customers in less than half an hour.
/jlne.ws/3E3Gnnq
Brazil Fintech PicPay Weighs Convertible Bond Sale; Company is also exploring possible US listing later this year; Brazil payment fintech is owned by billionaire Batista family
Vinicius Andrade, Rachel Gamarski, and Bailey Lipschultz - Bloomberg
PicPay, the Brazilian mobile banking app owned by the billionaire Batista family behind JBS SA, is considering selling convertible bonds, according to people familiar with the matter. The firm is weighing a transaction that could raise at least $100 million while gearing up for a possible initial public offering in the US, said the people, asking not to be identified because the information wasn't public. Discussions are ongoing and may not lead to a transaction, they added.
/jlne.ws/4jmvnli
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| Cybersecurity | | Top stories for cybersecurity | US Sanctions Chinese Entities for Telecoms, Treasury Hacks
Jamie Tarabay - Bloomberg
The Biden administration on Friday announced sanctions on two Chinese entities accused of cyberattacks, including a firm it said is directly involved in the recent espionage campaign against US telecommunications firms and a hacker behind the recent breach of Treasury Department computers. The telecoms system campaign, which the US has said was carried out by state-sponsored actors known as Salt Typhoon, compromised the networks of at least nine US telecommunications firms and led to the collection of audio and data of high-profile officials including President-elect Donald Trump.
/jlne.ws/3CgQULx
Has the TikTok Ban Already Backfired on US Cybersecurity?; The Supreme Court has affirmed TikTok's ban in the US, which has its users in revolt and is creating a whole new set of national cybersecurity concerns.
Becky Bracken - Dark Reading
Now that the US Supreme Court has upheld a ban on the wildly popular video social media platform we know as TikTok, its most influential users have decided to retaliate by moving their game over to REDnote, a competing Chinese social media company, thus creating an entirely new, and arguably worse, situation for the nation's cybersecurity.
/jlne.ws/3CfMioS
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| Cryptocurrencies | | Top stories for cryptocurrencies | What Crypto Hopes to Gain From Trump's Second Term
Dashiell Bennett, Tracy Alloway, and Joe Weisenthal - Bloomberg
We all know that the new Trump administration is likely to be more friendly to the crypto industry than the Biden administration was. And we know that the industry has generally been rather supportive and enthusiastic about the change at the White House. But what's actually coming next? What does being favorable to the industry really look like in practice? What does the crypto industry actually want to see in terms of changing regulations under a new administration? On this episode, we speak with Austin Campbell, professor at NYU's Stern School of Business and the CEO of stablecoin company WSPN USA about the possibilities ahead, and what moves the industry is hoping to see from the SEC and bank regulators. This transcript has been lightly edited for clarity.
/jlne.ws/4jgTW37
Crypto bros won't throw off yoke of SEC regulations despite backing Trump
Charles Gasparino - NY Post
The crypto business - from top executives to individual holders - likes to think that it provided the margin of victory in Donald Trump's surprise victory in the November presidential election. Trump of course courted crypto for votes and money and promised a lighter regulatory touch than the enforcement crackdown imposed by the Securities and Exchange Commission chief Gary Gensler. Whether it's true crypto handed Trump his big win is another matter, but crypto leaders want something in return for the tens of millions of dollars and new voters it brought to Team Trump.
/jlne.ws/4h3dczm
Bitcoin Reserve Clamor Among US States Risks Being No More Than Just Noise; Texas proposes accepting donations from residents, companies; Trump first touted the idea at July conference in Nashville
Teresa Xie - Bloomberg
Instead of waiting to see whether Donald Trump follows through on his endorsement of a national "strategic' Bitcoin stockpile, states are taking matters into their own hands. As local legislative sessions get underway, eight states have already introduced bills proposing crypto reserves. And while the push to ensure that state governments hold Bitcoin in one form or another has generated momentum among long-time crypto advocates, the clamor may not be more than just loud noise.
/jlne.ws/40E2hX7
Bitcoin Jumps to High for the Year Ahead of Trump Inauguration
Muyao Shen - Bloomberg
Bitcoin appears to be back on track toward record highs with the second presidential inauguration of pro-crypto Donald Trump just days away. The largest cryptocurrency by market value has climbed as much as 13% since Sunday, putting it on pace for the biggest weekly gain since election week in November. Bitcoin, which reached a record $108,315 in December, had declined in three of the prior four weeks. It was up about 4.9% to $105,076 as of 3:44 p.m. in New York. "The market is now pricing in the Trump inauguration and Trump being actually optimistic on crypto," said Zaheer Ebtikar, founder of crypto fund Split Capital.
/jlne.ws/3E20pid
Bitcoin Push Pits SNB's Orthodoxy Against Swiss Crypto Crowd; Group needs 100,000 signatures until June 2026 for plebiscite; Central bank says crypto does not meet reserve requirements
Levin Stamm - Bloomberg
Switzerland is set for some self-reflection on its relationship with money, if the country's Bitcoin evangelists get their way. Amid intensified global interest in the cryptocurrency, after Donald Trump won the White House with promises of friendlier US regulation, advocates are pushing for a national vote to enshrine it in the Swiss constitution. They want the digital asset to sit alongside the dollar, the euro and gold in the central bank's reserves.
/jlne.ws/4hpiUeD
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| Politics | | An overview of politics as it relates to the financial markets | Biden pardons Anthony Fauci, Liz Cheney and Mark Milley; Trio were facing potential legal action from the incoming Trump administration
James Politi - Financial Times
Joe Biden has issued pre-emptive pardons to Anthony Fauci, Liz Cheney and Mark Milley, hours before he relinquishes the US presidency to Donald Trump, who has vowed retribution against political foes. The outgoing president's last-ditch move to protect high-profile figures from possible future prosecution comes after Biden has already made sweeping use of his powers of clemency in the run-up to his departure from the White House.
/jlne.ws/40i6AWO
Donald Trump needs to mind the gaps; A dispersion of economic outcomes at home and abroad risks derailing promising initiatives
Mohamed El-Erian - Financial Times
In his journey to reclaim the White House, president-elect Donald Trump benefited politically from a dispersion of domestic economic outcomes. Left to fester, the forces behind this, as well as those driving the divergence between overall US economic performance and its global peers, are set to strengthen. This risks economic, financial and social breakages in the next few years. Resolving them in an orderly and consistent fashion could well have a material impact on how the president's second term is remembered.
/jlne.ws/3WOOcEf
Trump Set to Start Slashing Regulations Across Government in Bonfire of Red Tape; DOGE and Republicans allies in Congress want to help the incoming president cut 10 rules for every new one
Scott Patterson and Ken Thomas - The Wall Street Journal
President-elect Donald Trump has said he plans to embark next week on one of the most sweeping deregulatory drives in U.S. history, slashing at rules emanating from every channel of executive authority. Trump's fellow Republicans say lighter regulation will unleash the economy. Some businesses and consumer groups are planning to push back in court, however, echoing legal disputes over executive actions on immigration, healthcare and the environment during Trump's first term.
/jlne.ws/4g32Yhm
Trump's inauguration falls on MLK Day. That overlap is pretty rare
Rachel Treisman - NPR
Federal holidays collide in a rare overlap on Monday, which is both Inauguration Day and Martin Luther King Jr. Day. President-elect Donald Trump's second inauguration is just the third time a president will take the oath of office on the day dedicated to honoring the late civil rights leader. Former Presidents Bill Clinton and Barack Obama both did so during their second inaugurations, in 1997 and 2013. The two events aren't expected to coincide again until January 2053, due to their particular requirements and quirks of the calendar.
/jlne.ws/40FdWVI
Former Trump aides are warning newbies: Buy legal insurance or risk a hefty bill; Many staffers who worked in Trump's first administration saw the need for an attorney when many were dragged before congressional committees and grand juries.
Katherine Doyle - NBC News
As Republicans gear up for new jobs in the second Trump administration, people who worked for Donald Trump the first time around are dispensing advice about a must-buy item for those coming to Washington. It's not an article of clothing or a trendy apartment, and it is something most hope they will never use. Incoming administration staffers are being warned to weigh the threat of a pricey legal defense and consider purchasing a form of legal insurance that would provide them a lawyer if needed, a protection that many now consider part of doing business after former Trump aides were hauled before congressional committees and grand juries over the past eight years, five former senior administration officials and longtime Washington advisers said.
/jlne.ws/3E0Hww2
'So Much Uncertainty': Businesses Worry About Trump's Many Tariff Plans; The incoming president has floated numerous tariff plans. Retailers say their livelihood could depend on which ultimately come to fruition.
Ana Swanson - The New York Times
For Klem's, a general store in rural Massachusetts, each year has seemed more challenging than the last. First, there was the pandemic, then a global supply chain breakdown that left the store short of lawn mowers and shoes. Next, a spate of inflation raided American pocketbooks. All along, Amazon continued to pull customers away from brick and mortar stores like Klem's. Now Jessica Bettencourt, Klem's owner, says she is facing a new challenge that has left her wondering if the store - which was started by her grandparents in 1949 - will survive. The sweeping tariffs that President-elect Donald J. Trump has promised to impose could raise the price of foreign-made products and cut into her business's already slim profits, she says.
/jlne.ws/3C4UZCB
Fox News Prepares to Cover a Government Filled With Fox News Alumni; President-elect Donald J. Trump has leaned heavily on familiar faces from the cable network as he fills out his second-term cast.
Michael M. Grynbaum - The New York Times
/jlne.ws/4jlcLSJ
A Trump Oligarchy Is Moving to Washington, and Buying Up Prime Addresses; Billionaires and multimillionaires are flocking to a city where power has been more important than money, but is now deeply intertwined with it.
Elisabeth Bumiller - The New York Times
/jlne.ws/3E3rXnr
German Conservatives Dip Below 30% Ahead of February Vote; Far-right AfD remains in second place, Scholz's SPD in third; Merz's CDU/CSU likely to need at least one coalition partner
Iain Rogers - Bloomberg
/jlne.ws/3Q3guHj
Dutch Would Rather See Their Banks Be Acquirers Than Fall Prey; Finance Minister Heinen outlines vision of industry in report; Government has vowed to reduce stake in ABN Amro to about 30%
Sarah Jacob - Bloomberg
/jlne.ws/4aqOxlY
China calls for overseas education ventures in push for tech advancement
South China Morning Post
/jlne.ws/4hkcspq
Saudi Arabia Is Still Assessing BRICS Membership, Minister Says; Government was invited to join expanded BRICS group in 2023; Saudi says assessing 'many different aspects' of membership
Joumanna Bercetche and Abeer Abu Omar - Bloomberg
/jlne.ws/4jnwgtO
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| Regulation & Enforcement | | Stories about regulation and the law. | Justice Department Recovers an Additional $20M in Misappropriated 1MDB Funds
Office of Public Affairs, U.S. Department of Justice
The Justice Department announced today that it has reached an agreement to recover an additional $20 million in misappropriated 1Malaysia Development Berhad (1MDB) funds. In June 2024, the department announced it has already recovered and returned and assisted in returning to Malaysia approximately $1.4 billion. Beginning in 2016, a landmark effort encompassing now 43 civil forfeiture actions filed in the Central District of California and one in the District of Columbia by the Criminal Division's Money Laundering and Asset Recovery Section (MLARS) led to the seizure of over $1.7 billion in stolen assets. This is the largest recovery to date under the Justice Department's Kleptocracy Asset Recovery Initiative. The funds include both funds finally forfeited to the government and funds the department assisted in recovering and returning. The department continues to litigate actions against additional assets allegedly linked to this scheme.
/jlne.ws/3CiGviq
FinCEN Convenes Virtual Summit of Financial Intelligence Units to Combat Nature Crimes in the Amazon Region
FinCEN
The Financial Crimes Enforcement Network (FinCEN) convened a virtual summit on January 16, 2025 to counter the transnational criminal organizations that illicitly profit from nature crimes in the Amazon region. The summit marked a milestone in operationalizing a partnership among the financial intelligence units of Brazil, Colombia, Ecuador, Guyana, Peru, Suriname, and the United States. Environmental crime is among the most lucrative criminal activities globally, generating around $110 to $281 billion in criminal gains each year, according to the Financial Action Task Force Report Money Laundering from Environmental Crime, issued in July 2021. Nature crimes fuel corruption, threaten biodiversity, damage fragile ecosystems, and impact public health and the economy.
/jlne.ws/42hv9pq
Chair Gary Gensler's End of Term Video
Chair Gary Gensler - SEC
The Securities and Exchange Commission is a remarkable agency entrusted by Congress and more importantly, by you, the American public, to oversee our $120 trillion capital markets. And ensure that the common sense rules of the road for those markets are followed. Common sense rules of the road help everyday folks like you, like me by lowering the cost in the markets, lowering the risk, and building trust in the markets themselves. Over the last four years, I've had the great privilege to work alongside the SEC's incredibly talented staff, a staff committed to its mission. The staff here oversee more than 30,000 registrants. They conduct more than 3,000 examinations a year, and they respond to upwards to 100,000 inquiries from market participants each year. They respond to tens of thousands of tips, complaints, and referrals. In four years, this agency has returned more than $2.7 billion to harmed investors.
/jlne.ws/4joXrEI
One Last Note to SEC Staff
Chair Gary Gensler - SEC
All, It has been an honor of a lifetime to serve alongside you at this remarkable agency. You, the SEC staff, are amongst some of the most professional and productive that I've worked with in my life-whether on Wall Street, in government, or in academia. Though I best not pick a favorite among the many roles in which I've had the privilege to serve, a distinguishing feature of this agency and you the staff is just how clearly you know, understand, and are truly dedicated to the agency's mission. As I said during my final town hall, I'm so impressed by your dedication to public service, helping build better lives for the communities of today and tomorrow. I thank you for taking me into your family these last four years and sharing this journey. - Gary
/jlne.ws/3WmgCVS
Statement on Departure of Commissioner of Jaime Lizarraga
SEC
We want to thank Jaime Lizarraga for his tireless work and commitment to the Commission and its mission. His years of public service have been marked by his dedication to strengthening our capital markets, protecting investors, and promoting sustainable capital formation. We have been fortunate to have him as a colleague. Sworn into office on July 18, 2022, Commissioner Lizarraga has been a champion for working families and the investing public. He has worked collaboratively with the staff and each of us to deliver results in every aspect of the Commission's work-whether it be rulemakings, enforcement, or market oversight.
/jlne.ws/4jfY9nw
Farewell Statement
Jaime Lizarraga - SEC
At close of business today, my time as SEC Commissioner will reach its end. I am proud of all we accomplished. We modernized our regulatory framework to bring it in line with current realities, brought greater transparency to parts of our market that were opaque, and continued to harness our enforcement powers to fight and prevent fraud, market manipulation, and insider trading.
/jlne.ws/3POx2lT
SEC Announces Record Enforcement Actions Brought in First Quarter of Fiscal Year 2025; Commission continued to emphasize benefits of cooperation and remediation
SEC
The Securities and Exchange Commission today announced that, based on its preliminary results, it filed 200 total enforcement actions in the first quarter of fiscal year 2025, which ran from October through December 2024, including 118 standalone enforcement actions. The Division filed a total of 75 enforcement actions in October 2024 alone. The foregoing numbers represent the most actions filed in their respective periods since at least 2000.
/jlne.ws/4jkth5t
SEC Announces Departure of Acting Enforcement Director Sanjay Wadhwa
SEC
The Securities and Exchange Commission today announced that Sanjay Wadhwa, the Acting Director of the Division of Enforcement, will depart the agency, effective January 31, 2025, after more than 21 years of service with the Commission.
/jlne.ws/3PJ7WoQ
SEC Charges Arete Wealth Broker-Dealer and Advisory Firms, Their Chief Compliance Officer, and Several Representatives in Connection With Illegal Securities Offering; One additional individual agreed to resolve the SEC's charges for unregistered broker activity
SEC
The Securities and Exchange Commission today announced charges against Joey Miller, Jeff Larson, and Randy Larson, formerly dually registered personnel with Arete Wealth Management LLC, a broker-dealer, and Arete Wealth Advisors LLC, an affiliated investment adviser, for fraud, registration violations, and aiding and abetting Arete Wealth Management's recordkeeping violations. The SEC also charged Arete Wealth Advisors and its Chief Compliance Officer and General Counsel, UnBo (Bob) Chung, with various violations of the federal securities laws related to a coverup of the representatives' allegedly fraudulent conduct and other compliance failures, and charged Arete Wealth Management with recordkeeping violations.
/jlne.ws/3WpKm42
SEC Charges Nova Labs, Inc. with Fraud and Registration Violations
SEC
On January 17, 2025, the Securities and Exchange Commission charged Nova Labs, Inc. ("Nova Labs") with allegedly conducting unregistered offerings of crypto assets as securities and defrauding investors. According to the SEC's complaint, from April 2019 to the present, Nova Labs made unregistered offers and sales of securities when it offered and sold electronic devices called "Hotspots" that mined Nova Labs' crypto assets and "Discovery Mapping," a program that allows users to exchange their private data for Nova Labs' crypto assets. Nova Labs also allegedly made materially false and misleading statements to prospective investors about prominent companies, such as Lime, Nestlé, and Salesforce, purportedly using, being current users of, or relying on the Nova Labs' wireless network when those companies were not in fact using the network.
/jlne.ws/4g7VnOi
SEC Charges Pennsylvania Investment Adviser Scott Mason With Misappropriating More Than $20 Million from Advisory Clients
SEC
The Securities and Exchange Commission today charged former Pennsylvania-based investment adviser Scott J. Mason, and his companies Rubicon Wealth Management, LLC and Orchard Park Real Estate Holdings LLC, with misappropriating more than $20 million from at least 13 Rubicon advisory clients.
/jlne.ws/3PHCbMF
SEC Obtains Final Judgments Against Washington State-Based Real Estate Investment Fund Managers That Defrauded Investors for More Than a Decade
SEC
On January 15, 2025, the U.S. District Court for the District of Oregon entered final consent judgements against defendants Ross C. Miles, Maureen T. Wile, American Equities, Inc., and American Eagle Mortgage Management, LLC. The entry of the final consent judgments resolves all claims arising out of the SEC's complaint, filed on April 27, 2022, which alleged that the defendants defrauded investors when they raised approximately $15.5 million in 15 private investment funds from 2007 to 2018.
/jlne.ws/4h33qxa
SEC Charges Las Vegas Financial Education Company and Three Las Vegas Residents for Acting as Unregistered Brokers
SEC
The Securities and Exchange Commission today announced charges against Las Vegas-based financial education company Quest Education LLC, its principal and control person Daniel Blue, and former employees David Christopher White and Keitoh Jordan Spears, for acting as unregistered securities brokers and selling unregistered securities, including the securities of a company that the SEC previously charged in connection with a $20 million offering fraud.
/jlne.ws/3PHMVLa
SEC Charges Fund Executive with Making False Statements to Investors and Prospective Investors
SEC
On January 16, 2025, the Securities and Exchange Commission charged Ohio-resident Naufal Sanaullah, the former Chief Risk Officer and Chief Macro Strategist of EIA All Weather Alpha Fund I Partners, LLC ("EIA"), the investment adviser and general partner of EIA All Weather Alpha Fund I, L.P. (the "Fund"), with making and disseminating false and misleading statements to investors and prospective investors about the Fund's risk management practices and his educational background. The SEC previously filed a complaint against EIA and its Chief Executive Officer, Andrew M. Middlebrooks, alleging that from at least mid-2017 to April 2022, EIA and Middlebrooks deceived investors in the Fund, including by making repeated false statements about the fund's performance and total assets; misused new investor money to make Ponzi-like payments to other investors; and that Middlebrooks also misappropriated investor funds for personal use. SEC v. Middlebrooks, et. al., No. 2:22-cv-11073 (E.D. Mich. May 18, 2022). The May 2022 action is currently stayed.
/jlne.ws/4gZN8p3
SEC Charges Arete Wealth Broker-Dealer and Advisory Firms, Their Chief Compliance Officer, and Several Representatives in Connection With Illegal Securities Offering
SEC
The Securities and Exchange Commission today announced charges against Joey Miller, Jeff Larson, and Randy Larson, formerly dually registered personnel with Arete Wealth Management LLC, a broker-dealer, and Arete Wealth Advisors LLC, an affiliated investment adviser, for fraud, registration violations, and aiding and abetting Arete Wealth Management's recordkeeping violations. The SEC also charged Arete Wealth Advisors and its Chief Compliance Officer and General Counsel, UnBo (Bob) Chung, with various violations of the federal securities laws related to a coverup of the representatives' allegedly fraudulent conduct and other compliance failures, and charged Arete Wealth Management with recordkeeping violations.
/jlne.ws/3DZFr3j
ASIC invites feedback on proposed remake of employee incentive scheme instruments
ASIC
ASIC is seeking feedback on a proposal to remake two employee incentive scheme (EIS) class orders due to expire on 1 April 2025: ASIC plans to combine the two class orders into one legislative instrument and proposes to remake the exemptions for a period of five years. Entities have not been able to make offers of financial products to employees and other eligible participants under the EIS class orders since 1 March 2023. Employee share schemes are now operated under Division 1A of Part 7.12 of the Corporations Act 2001.
/jlne.ws/42mISLQ
ASIC and APRA host Superannuation CEO Roundtables to discuss climate risk
ASIC
ASIC and APRA have released a public note from two joint Superannuation CEO Roundtables held on 25 November 2024 and 5 December 2024. The Roundtables were attended by 14 superannuation Chief Executive Officers (CEOs), representing a broad cross-section of the industry. The theme of these roundtables were key issues related to climate risk.
/jlne.ws/42kJP7m
IOSCO Issues Statement of Support on the IESBA's International
IOSCO
Ethics Standards for Sustainability Assurance The Board of IOSCO congratulates the International Ethics Standards Board for Accountants (IESBA) on achieving an important milestone of finalizing their International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and Other Revisions to the Code Relating to Sustainability Assurance and Reporting. IOSCO notes the extensive and thorough outreach program conducted by the IESBA throughout the lifecycle of the development of IESSA.
/jlne.ws/4horHxs
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Which Trump Trades Worked-and Which Very Much Didn't; Investors have struggled to navigate the election, underlining the difficulty Wall Street so often has with politics
James Mackintosh - The Wall Street Journal
The best-performing bets on Donald Trump's return to the White House show that investors expect four things: a clampdown on immigration, rewards for his new buddy Elon Musk, easier regulation and transfers from taxpayers to holders of state-backed mortgage guarantors Fannie Mae and Freddie Mac. Initial hopes that Trump's promises of tax cuts and tariffs might help smaller stocks have faded, as expectations that they would push up inflation lifted bond yields and the dollar. Some notable "Trump trades," or bets on what the incoming president will do, have been highly profitable to investors in a handful of stocks since the election, while others have proven lackluster. Investors have struggled to navigate the election, underlining the difficulty Wall Street so often has with politics.
/jlne.ws/4jCnCrJ
Wall Street's Hedging Craze Gets Second Wind After 2024 Misfire; Alternative trades gain favor, from real estate to bond hedges; Febrile sentiment on display again this week before Trump era
Denitsa Tsekova and Vildana Hajric - Bloomberg
In the euphoric markets of 2024, the biggest sin was skepticism. A white-hot runup in risky assets made life miserable for anyone buying into the frenzy of fresh products that Wall Street was hawking to hedge and diversify. Three weeks into this year's market whiplash, it's starting to look like the sales pitch was simply too early. Big, lockstep moves have become the norm on the eve of Donald Trump's inauguration. The latest example: this week's stock-bond rally comes right after an equally large swoon just last week, marking the biggest reversal of its kind in 18 months.
/jlne.ws/4g4WjmD
Baby Boomer Women Are Now Deciding the Fate of Trillions of Dollars; With baby boomers aging and the gender gap in lifespans growing, more women have the final word on how the family nest egg gets parceled out
Oyin Adedoyin and Katherine Hamilton - The Wall Street Journal
Women are reshaping the biggest wealth transfer in modern history. A record number of Americans turn 65 this year, and more women are set to outlive their husbands as female lifespans lengthen relative to men's. As a result, women aren't only stockpiling wealth from their own careers but also getting the final word on how the family nest egg is parceled out. And they are handling the money differently than their husbands by switching financial advisers and investing more with an eye toward longevity. They are redirecting money to charity and allocating more to long-term healthcare. Women of the baby-boom generation are also having to decide how the money transfers to the kids, making them linchpins in what can turn into uncomfortable family drama. Fifty years ago, many among this group were barred from even taking out credit cards and loans.
/jlne.ws/40labTX
Farmed fish emerge as a key global protein source; Aquaculture output quadruples in 30 years, surpassing beef and approaching pork
Takuro Kusashio - Nikkei Asia
Farmed fish have become one of the world's leading sources of protein, rivaling traditional meats like beef and pork. Over the past three decades, aquaculture production has more than quadrupled, surpassing beef production and nearing the levels of pork and poultry.
/jlne.ws/40gd2O4
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Investors in clean energy funds backtrack as rates and Donald Trump cloud outlook; Sales fall after four-year boom and sector suffers net redemptions, Morningstar data shows
Attracta Mooney and Rachel Millard - Financial Times
Investors withdrew about $30bn in total from climate-focused mutual funds in 2024 after a four-year boom was undone by difficult economic conditions and the clouds cast over socially responsible investing by the election of Donald Trump. It marked the first year since at least 2019 in which investors pulled out more than they had put in, highlighting the challenges facing the sector despite the global push to deal with climate change.
/jlne.ws/3WtdhnJ
Fed Quits Global Climate Risk Group Ahead of Trump Presidency; The central bank said it had decided to leave the network after the group's work "increasingly broadened in scope."
Madeleine Ngo and Lydia DePillis - The New York Times
The Federal Reserve said on Friday that it had withdrawn from a network of global financial regulators focused on climate change risks just days before President-elect Donald J. Trump returns to power. The central bank formally joined the Network of Central Banks and Supervisors for Greening the Financial System in December 2020, shortly after President Biden was elected. Democrats praised that decision, arguing that regulators needed to make sure financial institutions were adequately managing the risk they faced from extreme weather events.
/jlne.ws/4jmspNG
****Bloomberg has the story here.
A Vibe Shift at Davos; For years, C.E.O.s have used the annual gathering at the World Economic Forum to emphasize commitments to D.E.I., E.S.G. and globalization. Now the politics have changed.
Lauren Hirsch and Andrew Ross Sorkin - The New York Times
Dara Khosrowshahi, Uber's C.E.O., will soon be making his way to Washington, where the company is planning to host its first-ever inauguration party on Sunday, along with X and The Free Press. Days later, Khosrowshahi is expected to travel to Davos, Switzerland, for the 54th World Economic Forum - an event that has, in recent years, been a platform for making exactly the kinds of corporate promises that Trump has railed against, including commitments to E.S.G., D.E.I. and globalism.
/jlne.ws/3DZGIHD
Tennessee drops BlackRock ESG suit after asset manager agrees concessions; State's attorney-general had accused $11.6tn fund manager of breaching consumer protection rules
Brooke Masters - Financial Times
Tennessee has dropped its landmark lawsuit against BlackRock after the $11.6tn money manager promised to increase disclosure and compliance around its use of environmental, social and governance factors in investing. The state's Republican attorney-general Jonathan Skrmetti sued BlackRock in 2023, accusing the money manager of violating consumer protection laws and taking an inconsistent approach about whether it prioritised ESG considerations over investment returns.
/jlne.ws/40Fu7CA
Investors in clean energy funds backtrack as rates and Donald Trump cloud outlook; Sales fall after four-year boom and sector suffers net redemptions, Morningstar data shows
Attracta Mooney and Rachel Millard - Financial Times
Investors withdrew about $30bn in total from climate-focused mutual funds in 2024 after a four-year boom was undone by difficult economic conditions and the clouds cast over socially responsible investing by the election of Donald Trump. It marked the first year since at least 2019 in which investors pulled out more than they had put in, highlighting the challenges facing the sector despite the global push to deal with climate change. Assets under management grew more than seven-fold in the preceding four years to a record $541bn. But this dropped for the first time to $533bn last year, as positive market valuations failed to fully offset redemptions.
/jlne.ws/3WtdhnJ
'The discourse is chilling': aid groups on US-Mexico border prepare for Trump; Volunteers who leave water in the desert describe rising fears of vigilantes and climate peril
Nina Lakhani - The Guardian
It was a blustery day in the Sonoran desert as a group of humanitarian aid volunteers hiked through a vast dusty canyon to leave gallons of bottled water and canned beans in locations where exhausted migrants could find them. Empty plastic bottles, rusty cans and footprints heading north were among the signs of human activity strewn between the towering saguaro and senita cacti, in an isolated section of the Organ Pipe Cactus national monument - about 20 miles (32km) north of the US-Mexico border.
/jlne.ws/4awN2mf
EU plans ban on 'forever chemicals' in consumer products
Kate Abnett - Reuters
/jlne.ws/3E0LgO6
Why Europe will struggle to buy more US gas; Donald Trump has threatened EU with tariffs unless bloc steps up LNG imports
Alice Hancock, Jamie Smyth and Shotaro Tani - Financial Times
/jlne.ws/3PIsNIB
Australia to spend $1.2bn on green aluminum efforts; 10-year program of production credits aims to spur domestic output
Shaun Turton - Nikkei Asia
/jlne.ws/3E3pXvh
The Aspiring $110 Billion Energy Company Banking on Trump's Return; U.S. natural-gas exporter Venture Global plans to go public at an auspicious time for the LNG industry, cementing the firm's meteoric rise
Benoit Morenne - The Wall Street Journal
/jlne.ws/3CjOawT
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Thousands of Capital One Customers Are Locked Out of Accounts for Days; The company said a technical issue with a third-party vendor was to blame for a disruption with deposits and payment processing that stretched into the weekend.
Lauren McCarthy - The New York Times
Thousands of customers have reported problems getting their banking done with Capital One because of a disruption accessing online services that began on Wednesday and persisted into the weekend. On at least two different occasions on Friday afternoon, nearly 4,000 customers each time reported issues completing transactions with Capital One, a credit card and banking company based in McLean, Va., according to Down Detector, a website that monitors internet and application outages.
/jlne.ws/40E8N07
Bank of America Staff to Share About $1 Billion of Stock Awards; Employees earning as much as $500,000 a year are eligible; Financial firms face expense pressures seek to keep talent
Katherine Doherty - Bloomberg
Bank of America Corp. is divvying up a roughly $1 billion pool of restricted stock among the majority of its staff, lifting compensation to retain employees as the lender seeks to boost earnings while keeping a lid on expenses. The incentive, which comes on top of regular compensation, will go to workers who earn as much as $500,000 in total annual pay, according to a memo Friday from Chief Executive Officer Brian Moynihan. About 97% of the bank's global workforce is eligible.
/jlne.ws/3E1YcmX
Banks Play Matchmakers in Private Credit Shift to High Grade
Ronan Martin, Francesca Veronesi and Josyana Joshua - Bloomberg
Constraints on banks' ability to take on risk is opening the door for private credit to go after their top-tier clients. And traditional lenders are determined to make the most of it. For banks, private credit's advance into the universe of investment-grade debt isn't the latest chapter of a years-long rivalry. Rather, the drive is helping them find partners, backed by billions in funds, that are less held back by regulators' push to minimize lending risks. Private credit is now offering high-value, tailored deals, but leans on traditional lenders to be connected with clients.
/jlne.ws/40DcHX7
Goldman Sachs is sounding (and acting) a lot more like private equity
David Hollerith - Yahoo Finance
Big banks are sounding and acting a lot more like private equity. The latest example came last week as Goldman Sachs (GS), one of the oldest and best known investment banks on Wall Street, repeatedly made clear with actions and words that private markets stand to play a critical role in its future growth - and even how top executives are compensated. The pay component came Friday as Goldman handed CEO David Solomon a retention package of $80 million to stay five more years and an $8 million raise for performance in 2024.
/jlne.ws/4h2I2br
HSBC, Standard Chartered, Bocom can now open mainland China accounts for Hongkongers
South China Morning Post
HSBC, Standard Chartered Bank, and Bank of Communications (Bocom) on Monday started helping Hongkongers open mainland bank accounts remotely, the latest move in a broader effort to make it easier for city residents to cross the border to travel, live, work and retire. After opening a so-called Type II account at a designated branch in Hong Kong, customers can transfer up to 10,000 yuan (US$1,367) per day or 200,000 yuan per year to the mainland account with the same bank. Opening the account is free, and there is no minimum balance requirement.
/jlne.ws/4gdJHde
Fired HSBC Trader Drops UK Suit Over 'Career Ending' Dismissal; Yann Adem withdrew his $5 million employment suit against HSBC; HSBC denied all allegations made by Adem in the case
Upmanyu Trivedi - Bloomberg
An ex-HSBC Holdings Plc trader fired for using his work phone to discuss supplying drugs withdrew his lawsuit from a London court days after the trial started. Lawyers for Yann Adem, who worked in US swaps and treasuries trading, informed the tribunal on Monday that he withdrew all claims against the bank, which included unfair dismissal and disability discrimination. The court will dismiss the case, the judges said.
/jlne.ws/4h2BauC
Ex-HSBC Trader Loses EUR1.4 Million Lawsuit Over Broker Fee Alert
Gaspard Sebag - Bloomberg
/jlne.ws/3C4Z4qn
The Year That Hedge Funds Got Their Mojo Back; Stock pickers were able to shine in 2024, while esoteric markets such as Argentine debt and crypto bankruptcy claims also yielded opportunities
Caitlin McCabe - The Wall Street Journal
/jlne.ws/4jl87Ed
Chinese investors pile into Bridgewater-style funds, eyeing Trump return
Samuel Shen and Summer Zhen - Reuters
/jlne.ws/4gXTvJx
Transcript: The American Activist Shaking Up the UK
Read the conversation between Saba Capital's Boaz Weinstein and senior reporter John Stepek on Merryn Talks Money.
John Stepek - Bloomberg
/jlne.ws/4jkxOov
International hedge funds and private equity pump more money into Lloyd's vehicle; Insurance market's scheme attracts growing interest from alternative managers
Lee Harris - Financial Times
/jlne.ws/40v0djc
Vanguard triumphs over rivals in 2024 Australia ETF sales; Flows to Vanguard vehicles more than doubled helping it to account for 31% of the total flows of A$30.8bn
Julienne Raven Lingat - Financial Times
/jlne.ws/42kYBuz
ETF Siren Call Lures Lazard, Raymond James to $15 Trillion Space; List of large asset managers without ETFs is shrinking: Sohn; All kinds of firms, including hedge funds, have filed for ETFs
Vildana Hajric - Bloomberg
/jlne.ws/40rMDNp
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | 5 Key Changes That Will Affect Your Money in 2025; This year, older workers will have ways to save more for retirement, spend less on medicine and see other ways to improve their finances.
Diane Harris - The New York Times
Amid the global turmoil of this young new year comes a flurry of welcome developments that will help many people - especially retirees and those close to retirement - supercharge their savings, cut prescription drug costs, keep more of the money they earn and, possibly, raise their credit scores. Fair warning, though: It's complicated.
/jlne.ws/42gC02s
The thing about rich bosses; Wealthy managers are increasingly isolated from the less well-off at work and that's not good news
Pilita Clark - Financial Times
Does it matter if your boss is rich? This is a question I have thought about only rarely over the years, mostly when non-rich friends have reported unexpected misunderstandings with wealthier bosses. There was the Australian woman whose patently baffled new manager listened to her explain that she had to leave work at a set time each afternoon to pick up her kids from school before asking her: "Why don't you just get a nanny?" She explained that alas, that would be tricky on the salary his firm was paying her.
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'Will I have a job?' Federal workers full of uncertainty, fear over Trump plans
Terry Collins - USA TODAY
Chelsea Milburn remembers feeling "blessed" to find her ideal job as a public affairs specialist for the Department of Education, a near-perfect situation after her life dramatically changed two years ago after an illness. But, like more than 228,000 federal workers who telework, Milburn's job is at risk if President-elect Donald Trump makes good on his promise to require federal workers to return to the office five days a week. She has a disability that makes it hard for her to sit at her desk full-time. Many more of the 2.3 million civilian federal workers could lose their jobs if Trump fulfills other campaign promises to shutter the Department of Education, and overhaul agencies including the Justice Department and Health and Human Services.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Chronic, work-related stress can accelerate your biological age-especially if your job is U.S. president
Lindsey Leake - Fortune
If you've experienced work-related chronic stress-physical and/or emotional tension that lasts for weeks, months, or longer-you know the havoc it can wreak on your body. Chronic stress can cause not only debilitating everyday symptoms from fatigue to forgetfulness, but also serious long-term conditions such as heart disease and high blood pressure. You may have even felt that chronic stress has visibly aged you, which it's indeed capable of doing. This phenomenon is perhaps most palpable in the faces of U.S. commanders-in-chief. Compare pictures of your favorite president on his inauguration day and final day in office. Whether he served an abbreviated term or, in the case of Franklin D. Roosevelt, three full terms and beyond, you might think he grew older faster than he may have under more relaxing circumstances.
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TikTok Changed How We Talk About Health; It has turned doctors into stars, put taboo subjects on main and given all of us a place to explore our well-being.
Dani Blum, Emily Schmall and Katie Mogg - The New York Times
Some of the posts are raw. Some are insightful, others wildly elaborate. Some are just plain wrong. TikTok, which may soon be banned in the United States, has changed American culture in many ways. But its impact on how we talk about health stands out. In tens of millions of videos, users have opened up about their health and how they take care of themselves in big and small ways. They have touted "Oatzempic" for weight loss and extolled the (supposed) benefits of beef tallow face masks. They have shared their abortion stories and brought viewers inside the reality of living with terminal illnesses. And sometimes they have shared health advice so off-base that doctors and therapists stepped in to correct the record.
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When the Retirement Community Goes Bankrupt; It doesn't happen often. But when it does, some residents risk losing everything.
Paula Span - The New York Times
Three years ago, when Bob and Sandy Curtis moved into an upscale continuing care retirement community in Port Washington, N.Y., he thought they had found the best possible elder care solution. In exchange for a steep entrance fee - about $840,000, funded by the sale of the Long Island house they had owned for nearly 50 years - they would have care for the rest of their lives at the Harborside. They selected a contract from several options that set stable monthly fees at about $6,000 for both of them and would refund half the entrance fee to their estate after their deaths.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Bank of Japan poised to raise rates to highest in 17 years
Leika Kihara - Reuters
The Bank of Japan is expected to raise interest rates on Friday barring any market shocks when U.S. President-elect Donald Trump takes office, a move that would lift short-term borrowing costs to levels unseen since the 2008 global financial crisis. A tightening in policy would underscore the central bank's resolve to steadily push up interest rates, now at 0.25%, to near 1% - a level analysts see as neither cooling nor overheating Japan's economy.
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China's Dec imports of Canadian rapeseed decline amid trade probe
Mei Mei Chu - Reuters
China's imports of rapeseed from Canada, which had been surging since June, plunged in December after Beijing opened an anti-dumping investigation into the oilseed, Chinese customs data showed on Monday. Beijing in September launched a one-year investigation into rapeseed imports from Canada after Ottawa imposed tariffs on Chinese-made electric vehicles, prompting importers fearing retaliatory anti-dumping duties to scale back purchases from Canada.
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Former Finance Minister of Mozambique Sentenced in $2B Fraud and Money Laundering Scheme
Office of Public Affairs, U.S. Department of Justice
The former Finance Minister of Mozambique was sentenced today to 102 months in prison for his role in a $2 billion international fraud, bribery, and money laundering scheme, in which he received $7 million in bribes to approve fraudulent loans. According to court documents and evidence presented at trial, Manuel Chang, 69, of Mozambique, received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three loans for maritime projects. As part of the scheme, Chang and his co-conspirators falsely told banks and investors that the loan proceeds would be used for the projects and not to pay bribes to government officials. In fact, however, Chang and his co-conspirators diverted more than $200 million of the loan proceeds that were used, among other things, to pay bribes and kickbacks to Chang and others.
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Explainer-What Trump's presidency could mean for Russia's rouble
Gleb Bryanski - Reuters
With Donald Trump's pledge to quickly end the war between Ukraine and Russia, market players are starting to look at what impact that could have on the rouble, which became an outcast following sanctions. The rouble started the year slumping to its weakest mark since March 2022 but has strengthened by about 10% since, becoming the best performing currency across emerging markets in 2025.
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| Miscellaneous | | Stories that don't quite fit under the other sections | Wine sales drying up as Americans turn elsewhere; U.S. wine sales continued a multiyear decline in 2024, which experts attribute to shifting demographics, health concerns, new competition and economic forces.
Ash Reynolds - NBC News
The losses keep stacking up for the U.S. wine industry. Wine sales in the U.S. last year tumbled approximately 6% from 2023, according to data from the industry data group SipSource. The drop is the latest in a long-term decline in wine demand in restaurants, bars and stores that some are calling an "existential threat" to the industry.
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