| August 11, 2023 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Cboe Global Markets announced the winners of the Options Institute MSCI Inflation Research Grant, with Dr. Ali Nejadmalayeri, professor of finance at the University of Wyoming College of Business, and William Campbell, lecturer in finance at the Wilbur O. and Ann Powers College of Business at Clemson University, as the winners of the grant. The grant focuses on advancing understanding of inflation and its measurable impact on the markets.
An opinion piece in The Telegraph by Tim Stanley paints an intriguing picture of how the Democratic nomination for President might turn out, with a surprise nomination of Michelle Obama replacing President Joe Biden as the nominee. That would certainly change the dynamics of the election from a rematch of Biden-Trump.
A "Big Read" story in the Financial Times today is titled, "How China cornered the market for clean tech" with the subheading "The country is the biggest supplier of materials vital for the energy transition. That could give it geopolitical leverage."
Orange Juice prices hit record highs this week and the Financial Times could not resist an OJ fun headline, "Soft commodities: orange juice squeezed by extreme weather" with the subheading "Contango is a futures market fandango."
As if the OJ headline were not enough, the Financial Times decided to use a Jane Fonda-in-Barbarella image as the picture to a Robin Wigglesworth story titled, "Pimco flickers back to life" with the subheading "Bonds Are Really Back And Really Elegant, Lavish, Likeable Assets."
The Wall Street Journal is concerned we are all having Dot-Com bubble flashbacks with the AI mania. The story in today's Journal is titled, "AI Mania Triggers Dot-Com Bubble Flashbacks" with the subheading "Nvidia shares have nearly tripled this year. Investors question whether the stock can live up to the hype."
Yesterday JLN ran a story about Social Security cuts, but what if you are in the top .01% of retirees and have a $5 million retirement nest egg? The Wall Street Journal has a story today titled, "Here's What a $5 Million Retirement Looks Like in America" with the subheading "Retirees open up about their financial lives and how they spend their time and money."
The New York Times has a take on the problems Goldman Sachs CEO and sometimes DJ David Solomon is facing at the firm in a story titled, "Goldman's C.E.O. Is Stuck, Without a Clear Lifeline" with the subheading "David Solomon's management style is winning few fans amid the elite investment bank's performance woes. He is mired in 'quicksand' and unsure what to do."
If you make it to the Williams Bay Lions Club Corn and Brat Roast this weekend in Williams Bay, WI, I will be there Saturday evening.
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 yesterday on JLN Options were:
- Trading in risky '0DTE' stock options hits record and could spark a stock-market selloff, strategists say
- A Week of 1% Moves on the S&P 500 Could Trigger Forced Selling
- Analysis-Moody's warning on US banks a wake-up call for sanguine investors ~JB
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The Russell 2000 Index Quarterly Chartbook - July 2023
Year after year, the Russell 2000 Index sets the standard for US small cap measurement. For index performance, sectors/IPOs, and risk characteristics, check the latest Russell 2000 Quarterly Chartbook - July 2023. Read now: https://www.ftserussell.com/research/russell-2000-index-quarterly-chartbook-july-2023.
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To Bring Back the Office, Bring Back Lunch; Enough with the sad desk salads. Office workers need to have a proper lunch - in a restaurant, like the French do - and their employers should pay for it.
Allison Schrager - Bloomberg
It has been nearly two years since corporate America reopened, and employers are still struggling to get people back into the office. Just ask Jamie Dimon, CEO of JP Morgan Chase, who has been pushing for in-office-work, yet 30% of his workers remain hybrid and he continues to face pushback.
/jlne.ws/3DTvSj8
****** Here is the best idea I have heard yet. As they say, the way to a person's heart is through their stomach.~JJL
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South African Expats Are Flocking to This Tiny Island in the Middle of the Irish Sea; The Isle of Man is becoming a popular destination for South African professionals
Adelaide Changole - Bloomberg
Douglas, the tiny capital of the Isle of Man, might seem an unlikely destination for South African expats. But the pull of its offshore economy and the push of South Africa's struggles means hundreds have headed to the 33-mile-long Crown Dependency in the middle of the Irish Sea in recent years.
/jlne.ws/47wcjej
****** People are so afraid of taxes they forget what really matters in life. They forget to just live.~JJL
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DraftKings and Other Sports Gambling Apps Are Hitting the Jackpot With 'Parlay' Bets. As They Win, You Lose.
Avi Salzman - Barron's
Americans have found a creative new way of losing money at sports betting. They're losing with such regularity that they're catapulting gambling apps to profitability well ahead of schedule. Parlay bets, which allow people to wager on several things happening together, have taken off in popularity this year. Instead of simply gambling on the winner of a game, bettors can wrap predictions for every game on the schedule into one bet, or create custom wagers that, say, their favorite quarterback will throw three touchdowns and the defense will sack the other quarterback twice. Sports- betting websites and apps are now offering thousands of bets a day and combining the outcomes of several sporting events together into megabets that could cover four years of college tuition if they pay off. They hardly ever do.
/jlne.ws/45otnkB
****** And guess what DraftKings and other sports gambling sites advertise all the time? Parlays. They push the thing that you have the worst odds for, but that sounds the most attractive, and where they win all the time. There is another term for this: "baiting the trap for suckers."~JJL
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Thursday's Top Three
Our top story Thursday was Bloomberg's Dave Portnoy Paid Just $1 to Buy Barstool Sports Back. Second was Retirees Face $17,400 Cut to Social Security Benefits in 2033, also Bloomberg. Third was a tie between two similarly-themed stories, The dark side of the US sports betting boom from the Financial Times and From Options to Sports Bets, Americans Love to Gamble, from The Wall Street Journal.
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| Lead Stories | War and Soggy Fields Leave World Short of Top-Quality Wheat; Persistent rain has hit harvests in northern Europe and China; 'There will be less milling wheat available,' analyst says
Megan Durisin, Aine Quinn, Hallie Gu, and Michael Hirtzer - Bloomberg
Wheat harvests rolling in across the Northern Hemisphere are bolstering global supply. But bad weather and the war in Ukraine are leaving top-quality crops harder to come by. Tractors in northern Europe have been stalled by persistent rain, while Ukrainian wheat quality has also been dented as Russia's invasion drains farmers' funds. As for China, much of the harvest is only suitable for feeding to chickens and pigs.
/jlne.ws/3Ot3tW9
China pushes to dominate trading in clean energy metals; Beijing aims to wrest benchmark contracts for minerals such as lithium carbonate away from the west
Harry Dempsey and Hudson Lockett - Financial Times
China is making a push to dominate the trading of lithium carbonate futures, as it seeks to wrest the financial plumbing linked to metals vital to the clean energy revolution away from the western dollar-based financial system. Last month the Guangzhou Futures Exchange became the fourth global commodities exchange to launch contracts tracking the price of lithium carbonate, a mineral used in the manufacture of electric-vehicle batteries.
/jlne.ws/3s3PkHj
Norway's $1.4 Trillion Wealth Fund Wants ESG Ratings Overhauled; European Commission has proposed major crackdown on raters; Goal is to introduce more transparency and consistency
Kari Lundgren - Bloomberg
Norway's $1.4 trillion wealth fund is backing a European Commission proposal to overhaul the ESG ratings industry amid concerns that a lack of transparency and consistency among score providers is undermining confidence. The fund, whose equity investments are spread across roughly 9,000 companies, echoed the commission's concern that "the ESG rating market suffers from deficiencies," in an open letter published on Friday.
/jlne.ws/4480ng1
Global oil demand hits record and may move higher, says International Energy Agency; Consumption data shows global efforts to cut carbon emissions are yet to have significant impact
Tom Wilson - Financial Times
Global oil demand has hit a record and may move higher in August, threatening to prolong a recent rally in crude prices, the International Energy Agency said on Friday. Demand reached an all-time high of 103mn barrels a day in June driven by better than expected economic growth in OECD countries, strong summer air travel and surging oil consumption in China, particularly for petrochemical production, the IEA said in its monthly oil report.
/jlne.ws/3Owoxv1
Countries must unite to stave off the threat of a deep-sea resource grab; Advocates of extracting minerals from the depths argue that the green transition will be impossible without it
Guy Standing - Financial Times
The demand for minerals needed for a green technological revolution raises the spectre of a wild west-style frenzy of deep-sea resource extraction and accelerated environmental decay. Under the United Nations Convention on the Law of the Sea (Unclos) agreed in 1982, mining in the deep sea outside special "exclusive economic zones" has been restricted.
/jlne.ws/3DOusGO
Irish farmers pressured to cull cows to meet climate goals; Dairy farming produces much of Ireland's emissions, but herd-owners say large-scale culling is not the answer
Jude Webber - Financial Times
Gearoid Maher, a fifth-generation Irish dairy farmer, stands in what looks like a field of weeds. He has planted the chicory, plantain, brassica, kale leaves and clover deliberately, to reduce his farm's greenhouse gas emissions. Yet he feels dairy farmers like him are being unfairly blamed as Ireland struggles to a make a dent in its ambitious climate targets.
/jlne.ws/47tz5U5
US places $1.2bn climate bet on tech pulling carbon from air; Occidental Petroleum project in Texas is among two initial recipients of federal grant programme
Myles McCormick - Financial Times
The Biden administration is granting $1.2bn to projects aiming to strip carbon dioxide out of the atmosphere in a bet on a nascent technology that it hopes will play a big role in achieving its net zero goals. The US Department of Energy said on Friday that it had chosen two "direct air capture" hub developments in Texas and Louisiana as recipients for the funding, one of which is being built by oil company Occidental Petroleum. The projects will be the biggest of their kind.
/jlne.ws/3ORF51T
****This story from Bloomberg
China Sprints Ahead in Race to Modernize Global Money Flows; The digital yuan challenge to US dollar dominance in $7 trillion of daily FX flows is dashing ahead thanks to blockchain-enabled mBridge project
Bastian Benrath, Alessandro Speciale, and Christopher Condon - Bloomberg
A new platform to expand the reach of China's digital yuan and other central bank digital currencies is moving closer to reality, raising eyebrows among some defenders of a system long dominated by the dollar. The Beijing-backed digital prototype for sending money around the world without relying on US banks is advancing so quickly that some European and American observers now view it as an emerging challenger to dollar-denominated payments in global finance.
/jlne.ws/3ORjWok
Digital Currency Group seeks to end fraud case by Winklevoss twins' Gemini
Jonathan Stempel - Reuters
Digital Currency Group on Thursday urged a U.S. judge to dismiss a lawsuit claiming it defrauded customers of Gemini Trust, which was founded by billionaire twins Tyler and Cameron Winklevoss, into lending money to its now-bankrupt Genesis Global Capital unit. In a filing in federal court in Manhattan, DCG and its founder, Barry Silbert, called Gemini's lawsuit part of a public relations campaign to "deflect blame" for losses suffered by hundreds of thousands of customers of Gemini Earn.
/jlne.ws/45n0bdJ
US court rules no class action on Goldman Sachs crisis-era claims
Jody Godoy - Reuters
Goldman Sachs shareholders cannot go forward with a class action alleging the bank misled investors about its business practices ahead of the subprime mortgage crisis, a U.S. appeals court ruled on Thursday. The New York-based 2nd U.S. Circuit Court of Appeals ruled in three pension funds' long-running case accusing the bank of unlawfully hiding conflicts of interest when creating risky subprime securities, costing investors more than $13 billion.
/jlne.ws/3qkD4Sv
ABN Amro CFO Says Stake Sale to Proceed Despite Political Crisis; Holding company acts independently, CFO Vaandrager says; Plan to reduce Dutch government stake below 50% 'in execution'
Cagan Koc - Bloomberg
The collapse of the Dutch government is unlikely to derail plans for a partial sale of the state's stake in ABN Amro Bank NV, according to the lender's head of finance. Dutch state-holding company NLFI said in February it was planning to reduce its stake in ABN Amro to under 50% through a sale of depositary receipts, ending a five-year hiatus in the disposal of the lender's shares.
/jlne.ws/3Ouw515
Ivy Degrees, Legacies, and Wealth. Where Colleges Should Go From Here.
Megan Leonhardt - Barron's
When Fitch downgraded U.S. debt on Aug. 1, the backlash was immediate. Oddly, though, much of the criticism focused more on the timing and on other factors besides the actual rationale that the credit-rating firm cited: erosion of governance, expected fiscal deterioration, and a rising government debt burden. Treasury Secretary Janet Yellen called the downgrade "arbitrary."
/jlne.ws/445KBSE
NOAA Adjusts Hurricane Season Prediction to 'Above-Normal'; Record-warm Atlantic sea surface temperatures and slow-developing effects of an El Nino favor hurricane activity.
Amy Green - Inside Climate News
NOAA forecasters are upping their expectations for the 2023 hurricane season, based on record-warm Atlantic sea surface temperatures. The National Oceanic and Atmospheric Administration announced Thursday that forecasters have increased the likelihood of an above-normal season to 60 percent. The forecasters now expect 14 to 21 named storms, including six to 11 hurricanes and two to five major hurricanes of category 3, 4 or 5 strength, packing sustained winds of 111 miles an hour or more.
/jlne.ws/3Qw3bAv
How the Maui Wildfires Became So Destructive, So Fast; Fire researcher Mojtaba Sadegh says the power of heat, flames and embers moving through grass and buildings is "terrible."
Eric Roston - Bloomberg
At least 55 people are dead and hundreds of homes incinerated after tail winds from a hurricane stoked wildfires on Maui. Much of Lahaina, once the capital of the Kingdom of Hawaii, was destroyed, with residents fleeing and some taking temporary refuge in the sea. Scientists may spend months or even years trying to understand what caused the fires. Whatever gave off the initial spark - be it a broken power line, campfire or something else - occurred amid a drought, which seared a landscape of invasive grass covering many thousands of acres. The grass lit up just as powerful winds from a high-pressure zone to the north swept downwards toward Hurricane Dora, a low-pressure zone far off to the south.
/jlne.ws/3YrVeON
A New Green Tax-Credit Market Is for Corporations. Some People Want In; Tax advisers urge Treasury to let individuals use clean-energy credits
Richard Rubin - The Wall Street Journal
President Biden's signature climate law gives corporations a new and lucrative opportunity: Spend $910,000 to buy clean-energy tax credits and shave $1 million off your tax bill. Individual Americans should get the same deal, some tax advisers say.
/jlne.ws/45je3GB
M&A flurry shows no sign of slowing with two trading venue deals announced this week; Aquis Exchange and MarketAxess announced deals to acquire equities block trading start-up OptimX and algorithmic trading provider Pragma, respectively.
Wesley Bray - The Trade
A stream of merger and acquisition announcements has become the norm in recent months, as institutions from all corners of the market turn to deals for consolidation and expansion. This week, the industry's eyes turned to trading venues as two new M&A announcements were made.
/jlne.ws/3KCL0oK
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Biden Seeks $13 Billion for Ukraine Defense as GOP Protests; Request included in $40 billion emergency spending bill; Proposal seeks $12 billion in extra disaster-relief funding
Jordan Fabian and Erik Wasson - Bloomberg
President Joe Biden set up a clash with House Republicans by asking lawmakers to approve billions more dollars for Ukraine's defense, further straining the ability of Congress to avoid a government shutdown Oct. 1. The White House sees the $13 billion in funding for Ukraine war costs, which came in a $40 billion supplemental spending request, as critical to sustaining the war effort against Russia as the conflict enters a more intense phase.
/jlne.ws/45o84Q9
Gas price spike underscores Europe's vulnerability to global energy shocks; Rapid reduction in flows from Russia has left continent competing with Asia for liquefied natural gas supplies
Shotaro Tani - Financial Times
This week's violent surge in European gas prices underscores how the region's success in weaning itself off Russian energy has left it more vulnerable to the ebb and flow of volatile global energy markets. Europe managed to avert an energy crisis last year by rapidly increasing imports of liquefied natural gas. The seaborne fuel replaced the flow from Russian pipelines after the Kremlin cut off the majority of supplies in an escalating energy confrontation following its invasion of Ukraine.
/jlne.ws/47pQcpZ
Russia's War Economy Is on Course to Recover From Sanctions Hit; Economy expanded by 4.6% in second quarter, Mishustin said; Russia faces growing labor shortage amid military recruitment
Bloomberg News
Russia's economy may return to its pre-war level as soon as next year as it adapts to the impact of international sanctions, though the Kremlin's drive to expand military recruitment may yet undo this goal.
/jlne.ws/47FYDOf
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Why are exchanges important to ESG? Impact AM Live
City A.M.
Nandini Sukumar, CEO of the World Federation of Exchanges, discusses the industry's focus on ESG initiatives such as carbon neutrality, corporate governance, and combating greenwashing. Exchanges touches many areas of the financial markets, the industry is helping to educate and convince all stakeholders that sustainability makes good business sense.
/jlne.ws/3s6O5XW
Cboe Announces Winners of the Options Institute MSCI Inflation Research Grant
Cboe Global Markets, Inc - PR Newswire
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced Dr. Ali Nejadmalayeri, Professor of Finance at the University of Wyoming College of Business, and William Campbell, Lecturer in Finance at the Wilbur O. and Ann Powers College of Business at Clemson University, as the winners of the Options Institute MSCI Inflation Research Grant, which is focused on advancing understanding of inflation and its measurable impact on the markets.
/jlne.ws/3DPcBPU
HKEX Welcomes Further Stock Connect Enhancements Mutual Market Market Operations
Hong Kong Exchanges and Clearing Limited
Hong Kong Exchanges and Clearing Limited (HKEX) welcomes the joint announcement today (Friday) by Hong Kong's Securities and Futures Commission and the China Securities Regulatory Commission on the proposed introduction of block trading under Stock Connect, the landmark mutual market access programme between Hong Kong and Mainland China.
/jlne.ws/47tBo9H
LSEG names Goldman vet Irfan Hussain CIO
Finextra
Hussain is a 28-year Goldman veteran and is currently chief operating and strategy officer for engineering. In his new role he will be based in New York and joins LSEG's executive committee, reporting to CEO David Schwimmer. He will lead the exchange operator's technology team "driving cutting edge innovation in the global financial markets," says a statement.
/jlne.ws/3QzL2BV
Moscow Exchange launches Investment rating for private investors on Financial Services
MOEX
On August 10, 2023, the Moscow Exchange provided a new service for private investors that allows you to determine your investment rating. The service is available on the Finuslugi platform . Investment rating is a complex indicator that is calculated by a neural network developed by experts from the Moscow Exchange.
/jlne.ws/3KBzydo
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Interest Rates on Loans Hit 790% in Latin America's Big Fintech Shakeout; Investors flooded Latin America's startups with cash. Now the herd is thinning with the strongest riding out the turmoil
Cristiane Lucchesi, Carolina Millan, and Michael O'Boyle - Bloomberg
The numbers sound almost implausible. As Brazilian consumers fall behind on debts and rattle a slew of financial-technology startups in Latin America's largest economy, one venture keeps notching ever higher.
/jlne.ws/45jccS9
Virtu Financial and InvestorLink Announce Strategic Alliance to Provide Global Retail Access to Primary Markets
Virtu Financial
Virtu Financial, Inc. (NASDAQ: VIRT), a leading global provider of financial services, market making and technology solutions, and InvestorLink, a primary market workflow technology provider, are thrilled to announce a strategic alliance aimed at enhancing retail investor connectivity to the primary markets.
/jlne.ws/3QAGg74
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| Cybersecurity | | Top stories for cybersecurity | To Battle New Threats, Spy Agencies to Share More Intelligence With Private Sector; Pandemics, cyberattacks and supply-chain disruptions are pushing government to work more with outside groups
Warren P. Strobel - The Wall Street Journal
U.S. spy agencies will share more intelligence with U.S. companies, nongovernmental organizations and academia under a new strategy released this week that acknowledges concerns over new threats, such as another pandemic and increasing cyberattacks.
/jlne.ws/3QFu05r
Why it's time for everyone to reorient their thinking about cybersecurity
Tom Temin - Federal News Network
At a recent financial industry conference, the chairman of the Commodity Futures Trading Commission called for a shift in how organizations think about cybersecurity. She called for a change from an incident response mentality, to a resilience mentality. Federal Drive with Tom Temin next guest has some ideas for how that might actually happen. Igor Volovich is vice president for compliance strategy at Qmulos.
/jlne.ws/3qhQizq
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| Cryptocurrencies | | Top stories for cryptocurrencies | Ex-JPMorgan MD quits Goldman alumni's crypto trading firm
Alex McMurray - eFinancialCareers
A few years ago, digital asset trading company GSR was one of the most exciting companies operating in finance. Founded by two Goldman Sachs alumni, it was ahead of the game on Bitcoin's rise. But as the crypto industry at large undergoes some growing pains, GSR has lost one of its most senior employees: a former JPMorgan MD.
/jlne.ws/3qstAEB
CEO of World's Largest Bitcoin ATM Operator Sees Industry Ripe for Consolidation
Frederick Munawa - CoinDesk
A lot has changed since Brandon Mintz bought his first bitcoin on what he describes as a "crappy website" in 2013. He's now CEO of Bitcoin Depot, the world's largest bitcoin ATM operator, which he founded three years after that first crypto purchase. The company went public in July - listing its shares on Nasdaq after a merger with a special purpose acquisition company (SPAC) - and now Mintz says he's seeing slimmer profit margins for mom-and-pop operators as competition heats up.
/jlne.ws/3ORKyWk
Digital Currency Group Files to Dismiss Crypto Exchange Gemini's Fraud Claims
Ian Allison - CoinDesk
Digital Currency Group, or DCG, filed a motion to dismiss a lawsuit brought last month by cryptocurrency exchange Gemini, which alleged the crypto conglomerate and its founder, Barry Silbert, committed fraud through DCG's Genesis subsidiary that held funds for Gemini's Earn program.
/jlne.ws/3KA2d2i
Jump Crypto Backs $5M Round for Bitcoin Wallet Xverse; The Web3 app supports Ordinals, the technology that brought non-fungible tokens to the Bitcoin ecosystem.
Brandy Betz - CoinDesk
Bitcoin Web3 wallet Xverse has raised $5 million in a seed round led by noted industry investor Jump Crypto. The new funding will help the company accelerate development of advanced features related to decentralized finance (DeFi) and Stacks, Lightning and other Bitcoin scaling solutions. Hong Kong-based Xverse supports Ordinals, a method of generating non-fungible tokens (NFT) on the Bitcoin blockchain using inscription that launched in January.
/jlne.ws/47krwiy
Is Coinbase Disillusioned With Crypto?
Daniel Kuhn - CoinDesk
If you go by a handful of headlines and chatter on Crypto Twitter, you might think that the largest publicly-traded crypto exchange Coinbase now thinks bitcoin is about as valuable as a Beanie Baby. And forsooth, good man, woman or human! It is a comparison the exchange drew, in a formal legal document no less.
/jlne.ws/3KASpoQ
US court rules no class action on Goldman Sachs crisis-era claims
Jody Godoy - Reuters
/jlne.ws/3qkD4Sv
Crypto Firm DCG, CEO Barry Silbert Seek Dismissal of Gemini Lawsuit They Dub a Smear
Olga Kharif - Bloomberg
/jlne.ws/44cY5fO
You Can Sell the Bitcoins You Don't Mine; Also Morgan Stanley succession, VC platforms, activist hedge funds, Yellow's value, the size of the pepperoni market and bribe refunds.
Matt Levine - Bloomberg Opinion
/jlne.ws/3Oude6o
What in the World Is Going on With Crypto Regulation?
Sarah Morton and David Lawant - CoinDesk
/jlne.ws/3KAFao4
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| Politics | | An overview of politics as it relates to the financial markets | Biden Fears China Economy Is 'Ticking Time Bomb'; US leader misstated Asian giant's growth rate, demographics; Remarks threaten to disrupt renewed engagement with China
Justin Sink - Bloomberg
President Joe Biden blasted China's economic problems as a "ticking time bomb" and referred to Communist Party leaders as "bad folks," his latest barb against President Xi Jinping's government even as his administration seeks to improve overall ties with Beijing.
/jlne.ws/47uhJGY
McCarthyism is back, and it's coming for the peace movement
Defending Rights & Dissent
Defending Rights & Dissent condemns in the strongest possible terms the increasing McCarthyite attacks on leftwing and peace groups critical of US-policy towards China. As tensions between the US and China escalate, we have unsurprisingly seen attacks against those who dissent from the prevailing foreign policy orthodoxy.
/jlne.ws/3Yva5I8
'Put the American public first': Senators propose law to ban members of Congress and executive officials - including the president - from trading stocks
Bethan Moorcraft - Moneywise
A new law has been proposed that would ban members of Congress and the federal executive branch - including the president - from trading stocks. The bipartisan "Ban Stock Trading for Government Officials Act" was introduced by Sens. Kirsten Gillibrand (D-N.Y.) and Josh Hawley (R-Mo.) in late July.
/jlne.ws/3DRrwsT
Michelle Obama could be America's next President
Tim Stanley - The Telegraph Opinion
A source says that in conversation with a foreign politician, it emerged that their government assumes Joe Biden will not be the Democratic nominee in 2024. Joe will pull out before the first primaries; it will be too late for a grassroots candidate to enter the fray; an establishment stooge will be crowned at the convention. And the name of that lucky winner? Michelle Obama. It's a wild scenario, but if it does happen, please remember that you read it here first.
/jlne.ws/45nDq9H
Clarence Thomas' 38 Vacations: The Other Billionaires Who Have Treated the Supreme Court Justice to Luxury Travel
Brett Murphy and Alex Mierjeski - ProPublica
During his three decades on the Supreme Court, Clarence Thomas has enjoyed steady access to a lifestyle most Americans can only imagine. A cadre of industry titans and ultrawealthy executives have treated him to far-flung vacations aboard their yachts, ushered him into the premium suites at sporting events and sent their private jets to fetch him - including, on more than one occasion, an entire 737.
/jlne.ws/3KAEwaf
"You will get violence": Leading democracy expert says Donald Trump is not running to win election
Chauncey DeVega - Salon
/jlne.ws/3YwZ357
Walking the 'woke' tightrope
Jordan Wolman - Politico
/jlne.ws/45lEmLI
Germany's Scholz Vows to Fight 'Enemies of Democracy' as Far Right Surges; Chancellor responds to question on AfD's advance in polls; He also defends benefits for Germany of EU membership
Michael Nienaber - Bloomberg
/jlne.ws/3Os1EJ7
Robbing Banks Won't Make Europe's Economy Stronger; Italy's "extra profits" tax is the latest iteration of a bad idea.
The Editors - Bloomberg
/jlne.ws/3qtcRRE
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| Regulation & Enforcement | | Stories about regulation and the law. | Bipartisan Bill Provides Long-Term Fix to CFTC Whistleblower Program Funding Crisis
Geoff Schweller - Kohn, Kohn & Colapinto LLP
Over the past few years, the Commodity Futures Trading Commission (CFTC) Whistleblower Program has faced a funding crisis which threatens to undermine the success of the program. While a 2021 law provided a short-term fix which saved the program from collapse, the need for a long-term fix remains. Introduced in July, the bipartisan CFTC Whistleblower Fund Improvement Act of 2023 provides the long-term fix by raising a cap placed on the Fund used to finance the program.
/jlne.ws/3OSVTWn
SEC bites back, to appeal federal court ruling in XRP case
Jacquelyn Melinek - TechCrunch
In mid-July, a federal court settled a years-long battle between Ripple Labs and the SEC to decide if Ripple's XRP token was a security or not. Southern District of New York judge Analisa Torres ruled that the XRP token is not a security when sold to the general public, but it could be treated as one with regard to past sales to institutional clients.
/jlne.ws/3sdukxN
SEC's Ripple appeal has big consequences for Coinbase and Binance cases
Joanna Wright - DL News
The Securities and Exchange Commission says its appeal against Ripple Labs should be resolved quickly as it has implications for other ongoing lawsuits. "Timely appellate review is particularly warranted given the number of actions currently pending that may be affected by how the Court of Appeals resolves these issues," the commission said in a letter filed with a federal court this week.
/jlne.ws/456ITC0
SEC Likely to Approve Several Spot ETFs, Sparking Next Bitcoin Rally: Matrixport
Will Canny - CoinDesk
The U.S. Securities and Exchange Commission is likely approve several spot bitcoin (BTC) exchange-traded funds in quick succession, triggering the next move higher for the world's largest digital currency, crypto-services provider Matrixport said in a report Thursday. The ETF providers would spend "considerable marketing expenses to draw in retail and institutional capital," Markus Thielen, head of research, wrote.
/jlne.ws/3DPtfz1
Australia's Watchdog Sues Second Pension Fund for Greenwashing
Amy Bainbridge - Bloomberg
Australia's corporate watchdog is suing a second pension fund over greenwashing, accusing Active Super of misleading customers about barring investments on ethical grounds. The Australian Securities and Investments Commission alleges the A$13.5 billion ($8.8 billion) fund held 28 holdings which exposed members to securities it claimed to restrict.
/jlne.ws/3DRaUBx
CFTC Commissioner Kristin Johnson Announces Tamika Bent as Chief Counsel
CFTC
CFTC Commissioner Kristin N. Johnson today announced that Tamika Bent has joined her executive staff as Chief Counsel.
"Tamika is a seasoned derivatives lawyer with more than 15 years of experience, including many years as a senior attorney in private practice, as in-house counsel, and as an academic," said Commissioner Johnson. "She has significant expertise in the derivatives markets and extensive knowledge about the implementation of the Dodd-Frank Act financial reforms."
/jlne.ws/3QFMBhL
Colombian Conglomerate Grupo Aval and Its Bank Subsidiary to Pay $40 Million to Settle FCPA Violations
SEC
The Securities and Exchange Commission today charged Colombian conglomerate Grupo Aval Acciones y Valores S.A., aka Grupo Aval S.A., and its bank subsidiary, Corporación Financiera Colombiana S.A. (Corficolombiana), with violating the Foreign Corrupt Practices Act (FCPA). Grupo Aval, whose shares are traded on the New York Stock Exchange, agreed to pay $40 million to settle the SEC charges.
/jlne.ws/3KAUilt
Crypto Asset Trading Platform Bittrex and Former CEO to Settle SEC Charges for Operating an Unregistered Exchange, Broker, and Clearing Agency
SEC
The Securities and Exchange Commission today announced that crypto asset trading platform Bittrex Inc. and its co-founder and former CEO, William Shihara, agreed to settle charges that they operated an unregistered national securities exchange, broker, and clearing agency. Bittrex Inc.'s foreign affiliate, Bittrex Global GmbH, also agreed to settle charges that it failed to register as a national securities exchange.
/jlne.ws/3OPZNiG
SEC Charges Investment Advisory Firm and Firm's Owner for Breaching Fiduciary Duties to Clients
SEC
On August 1, 2023, the Securities and Exchange Commission charged Timothy Overturf of Arcata, California and his investment advisory firm Sisu Capital, LLC (Sisu Capital) for breaching their fiduciary duties to clients, including by making unauthorized and unsuitable trades in client accounts from December 2017 through at least May 2021. The SEC also charged Overturf's father, Hansueli "Hans" Overturf, with aiding and abetting his son's and Sisu Capital's violations.
/jlne.ws/45qhhHG
Regulators reach consensus on introducing block trading under Stock Connect
Securities & Futures Commission of Hong Kong
The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) today jointly announced that they have reached a consensus on the introduction of block trading (manual trades) under Stock Connect (Note 1).
Block trading provides an alternative trading mechanism to enable market participants to execute large-sized transactions. The introduction of block trading under Stock Connect will enable southbound and northbound investors to participate in the block trading facilities currently available in the Hong Kong and Mainland markets respectively.
/jlne.ws/45mqh0G
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | The Aluminum Market Is Creaking as Traders Brace for Excess Stocks; Closely watched spread showed biggest discount since 2008; Weak demand for aluminum is reigniting fears of Russian glut
Mark Burton, Archie Hunter, and Jack Farchy - Bloomberg
Spot aluminum prices have been trading at the biggest discount to futures on the London Metal Exchange since the global financial crisis, as weak demand for one of the most widely used industrial commodities reignites fears of a glut of unwanted Russian metal. The aluminum market is coming under pressure from a sharp downturn in demand, combined with a rebound in supply in top producer China and high interest rates that make it more expensive for traders to hold inventories.
/jlne.ws/47vRIH1
US Halts Import of Rare Cargo of Polish Wheat in Houston; Authorities are citing contamination with corn, people say; Polish wheat is arriving in the US after drought hurt crops
Isis Almeida, Michael Hirtzer, and Gerson Freitas Jr - Bloomberg
The US is holding back a rare cargo of Polish wheat being imported into Houston, a move that may spark tensions with the European Union, according to people familiar with the matter. The vessel Yochow, carrying about 30,000 tons of Polish wheat, is being prevented from unloading at the port of Houston, according to shipping data and the people, who asked not to be identified because the information is private. Authorities are citing contamination with corn, the people said.
/jlne.ws/3OslWlL
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Q&A: What the Amazon Summit means for deforestation and climate change
Carbon Brief
Leaders of the eight Amazon basin countries committed this week to act together to prevent the rainforest "from reaching the point of no return" - although they stopped short of agreeing upon a common target for ending deforestation. At a meeting in Belém, Brazil, on 8-9 August, heads of state and foreign ministers gathered to discuss how to take a cooperative approach to a range of issues, including forest protection, climate change, Indigenous rights and cross-border crime.
/jlne.ws/3ODEMXg
Airline Passengers Will Be Forced to Pay for $5 Trillion Carbon Cleanup; The aviation sector's plans to pass along the cost of decarbonization could add hundreds of dollars to the price of some fights.
Angus Whitley - Bloomberg
Fresh from surviving the Covid-19 pandemic, the aviation industry is about to hand passengers the multi-trillion dollar bill to fight its next existential threat: decarbonization. Cleaning up flying is a mission of improbable scale: Neutralize the carbon emissions of about 25,000 planes in the world's commercial fleet that typically ferry some 4 billion people a year and burn close to 100 billion gallons of jet kerosene.
/jlne.ws/454SwB5
What Happens in Antarctica, Doesn't Stay in Antarctica; The southernmost continent had the most extreme heatwave ever recorded.
Lara Williams - Bloomberg
We hear a lot about climate wake-up calls. Here's one you would do well not to ignore: Antarctica had the most extreme heatwave ever recorded. In March 2022, east Antarctica saw temperatures of up to 38.5C higher than average for the time of year. A so-called "atmospheric river" brought warm air and moisture from Australia into the heart of the frozen continent, raising temperatures to -10C (14F) from the norm of -50C (-58F). Had the UK's 2022 heatwave - which saw the nation exceed 40C for the first time - been that severe, we would have hit 60C.
/jlne.ws/45kQ4Gs
Sustainable Switch - Climate Focus
Sharon Kimathi - Reuters Digital
Wildfires have devastated Hawaii's Maui island and Big Island, killing at least 55 people while thousands of residents and tourists were forced to evacuate. Some people fled into the ocean to escape the smoke and flames. "We just had the worst disaster I've ever seen. All of Lahaina is burnt to a crisp. It's like an apocalypse," said Lahaina resident Mason Jarvi, who escaped from the city.
/jlne.ws/3s4FC7M
It's Not Just Wildfires and Hurricanes: Extreme Heat Is a Silent Killer for Companies
Azadeh Sabour - Morningstar Sustainalytics
Extreme heat could account for 65% of North America's productivity losses by 2030, according to Azadeh Sabour, Senior Vice President, Head of Climate Solutions at Morningstar Sustainalytics. According to the National Oceanic and Atmospheric Administration, the last eight years were the hottest ever recorded for both sea and air temperature. Forecasters say the next five years will be even hotter.
/jlne.ws/45rlpYb
Net-zero transition planning for pension funds and other asset owners
EEIST - ESG Investor
/jlne.ws/3QD98LU
Turn off the Engines
Chris Hall - ESG Investor
/jlne.ws/3s6Lmh9
China's Carbon Price Hits Record as Polluters Rush for Permits; Government is gradually tightening the supply of allowances; Beijing wants to avoid last-minute rushes to secure permits
Bloomberg News
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Catastrophe losses push up Zurich NA and Farmers Exchanges CRs in H1 2023
The Insurer
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | The Etonian hedge fund 'rockstar' creating a new crypto fund
Alex McMurray - eFinancialCareers
As the crypto asset class develops, so too do the firms investing within it. While hedge funds and asset managers are growing increasingly common, long-only funds are a little rarer, until now. Charlie Erith, a portfolio manager of 17 years, has founded a long-only crypto fund in the UK called Wiston Capital. Erith, an Eton College alumni has been on crypto's buy side for some time.
/jlne.ws/3DTd0AO
Thousands of Tiny Hedge Funds Face Closure in China Shakeup
Bloomberg
China's 6 trillion yuan ($832 billion) hedge fund industry is bracing for a historic shakeup that will likely cause thousands of smaller managers to shut and impose stricter regulations on larger peers that have become a growing force in local markets. Draft rules set to take effect as soon as September will impose a 10 million yuan asset minimum on Chinese hedge funds, a threshold that is expected to force the liquidation of more than a third of the existing products tracked by Shanghai Suntime Information Technology Co.
/jlne.ws/45p4rcY
Hedge Fund Alum George Noble Shutters New ETF After 59% Plunge
Katie Greifeld and Vildana Hajric - Bloomberg
Hedge-fund veteran George Noble's foray into the exchange-traded fund industry has come to a quick, and painful, end. The Noble Absolute Return ETF (ticker NOPE), which took long and short equity positions and which has dropped 59% since its September debut, is set to liquidate, according to a Wednesday announcement. Its plunge has happened even as the S&P 500 rose 23% over that stretch and the Nasdaq 100 jumped some 36%.
/jlne.ws/447GaXH
UBS Ends $10 Billion State Backstop That Helped Seal Merger
Patrick Winters and Myriam Balezou - Bloomberg
UBS Group AG decided to end an agreement with the Swiss government to cover losses it could incur from the rescue of Credit Suisse, a sign that the mammoth integration is on track and the stricken lender's assets might be less troublesome than initially feared.
/jlne.ws/47w8WnF
UBS starts process of killing off Credit Suisse brand; Temporary signs have appeared at US HQ as first step to erasing name of collapsed Swiss bank
Owen Walker - Financial Times
UBS has begun the process of killing off Credit Suisse's international brand, replacing signs at the collapsed bank's US headquarters and planning changes in other key offices, according to people familiar with internal discussions. The Credit Suisse brand is being phased out globally, though it may be retained in Switzerland if UBS sells its former rival's domestic business.
/jlne.ws/3OQSjvB
Goldman Sachs can't put sexism claims in rearview mirror
Lydia Moynihan - NY Post
Goldman Sachs' legal troubles with women who have worked for the Wall Street giant over the firm's alleged history of sexism may not be over. The bank will soon cut checks to 2,800 former and current female staffers as part of a $215 million class-action settlement over accusations Goldman systematically underpaid and under-promoted associates and vice presidents in its US banking, investment management and securities divisions in favor of their male peers.
/jlne.ws/45sZ0tv
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Consulting Firms Are Paying Undergrads $25,000 to Do Nothing; Recent college graduates headed to Accenture, Bain and Deloitte haven't been spared from an industry slowdown in work.
Aashna Shah and Francesca Maglione - Bloomberg
In the weeks leading up to her graduation from Pomona College, Sophia Augustine thought she had it all figured out. She had gotten a job offer at Accenture Plc and had plans to live with two friends in New York starting in August. Then she got a much-dreaded phone call. She, like hundreds of other new graduates this year, had a delayed start date. She would now report to work in April 2024, and for her troubles she'd receive a $25,000 stipend. The sudden change made her nervous, but she quickly pivoted. She found someone to sublet her apartment and made travel plans, starting with a trip to Southeast Asia.
/jlne.ws/3ORBiBu
Amazon tracks and targets US staff over failure to work 3 days in office; Push comes as employers use more aggressive tactics to stamp out work-from-home culture
Camilla Hodgson and Akila Quinio in London and Andrew Edgecliffe-Johnson in New York - Financial Times
Amazon has tracked the attendance of US-based workers and targeted those failing to comply with its hybrid working policy, becoming the latest employer to take a more aggressive approach to forcing staff back to the office. The Seattle-based tech group this week singled out some staff members to tell them they were "not currently meeting our expectation of joining your colleagues in the office at least three days a week", according to an email seen by the Financial Times.
/jlne.ws/3QCiIPm
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Up in Smoke: Wildfires Impact Human Health and Squeeze the Carbon Budget
Dr. Dinah A. Koehler - FactSet
The latest science notes that even small amounts of air pollution can harm your health writes Dr. Dinah A. Koehler, Vice President, Head of ESG Research at FactSet. For example, two hours exposure to common levels of urban air pollution from vehicles measurably impairs memory and attention. Just like air pollution from burning coal for electricity or burning gasoline to power cars, tiny particles (PM 2.5) in smoke can penetrate deep into lungs and enter bloodstreams to cause problems. In our house we have a new appliance: the HEPA air filter. Besides removing tiny airborne particles, it even tells us when to go to bed and switches to sleep mode with a gentle purr. Carefully monitored by my scientist husband, we compare outdoor and indoor air quality.
/jlne.ws/3qkSK8j
What are the symptoms of new COVID variant Eris taking over the US?
Caroline Kee - Today
Amid a summer uptick in COVID-19 cases, a new COVID subvariant, EG.5, also referred to as Eris, has emerged and become the dominant strain in the United States. Many are wondering if this new COVID variant is causing different symptoms. EG.5 now accounts for the largest proportion of COVID-19 infections in the country compared to any other variant, according to the U.S. Centers for Disease Control and Prevention.
/jlne.ws/3s72wLI
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Typhoon Khanun Dissipates Near Pyongyang After Soaking Seoul; Storm leaves at least one person dead, floods roads and houses; Flights, trains resume operations; Kepco restores power outage
Heesu Lee - Bloomberg
Typhoon Khanun left at least one person dead and caused flooding and power outages as it plowed through South Korea, though the disruption appeared to be less than had been expected. The storm passed near South Korea's capital, Seoul, at about 10 p.m. local time Thursday before moving north, the Korea Meteorological Administration said.
/jlne.ws/3KDd8bo
DiCaprio-Backed Film Says Key Beef Supplier to the US Has a Dirty Secret; Nicaragua sells meat from illegal ranches, documentary claims
Aurora MartÃnez - Bloomberg
Nicaragua's beef industry is under fresh scrutiny with a documentary backed by actor Leonardo DiCaprio, which claims that ranchers there are illegally decimating rainforests to raise cattle for meat that ends up in US supermarkets.
/jlne.ws/446WMPt
Yen Dips to Weakest Since 2008 Against Euro, Eyes 145 Per Dollar; Japan first intervened last year when yen neared 146 per USD; Yen extends losses against euro after US inflation data
Aline Oyamada and Carter Johnson - Bloomberg
/jlne.ws/3s9Dqf9
India's Russian Oil Buying Spree Continues Even as Prices Climb; Discounts for Urals have shrunk to $8 a barrel from around $20; Four Indian refiners say they will keep buying Russian crude
Sharon Cho and Rakesh Sharma - Bloomberg
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