Chinese censorship is spreading beyond its borders Oct 14, 2019
Hits & Takes JLN Staff
The SEC has published two educational videos meant to help people spot and avoid fraud.They are titled “ The Too-Good-to-be-True Circus ” and “ Without a Trace .”~ JJL
The Nobel Prize in economics was awarded jointly to three economists from the Massachusetts Institute of Technology and Harvard University, Abhijit Banerjee, Esther Duflo and Michael Kremer, for their experimental approach to alleviating global poverty.Duflo is only the second woman to win the Nobel in Economic Sciences.~ SR
(Bloomberg also has that story here.) ~ SR
Adena Friedman , the president and CEO of Nasdaq, has a new TEDTalk titled “http://bit.ly/2OLKWqN|If You Dream It, We Can Build It]].~ JJL
Registration is open for FIA Asia 2019 .The conference will be held in Singapore from December 3 to 6.~ JJL
Join the FIA community in supporting the Greater Chicago Food Depository on Wednesday, October 30 at the 9th Annual Great Chicago Steak Out , featuring a masquerade twist.~ JJL
Following its acquisition by Lanson, Intermarket Communications is now officially Lansons Intermarket .~ JJL
CME Group is looking to fill this position: Director, Corporate Communications (Fintech) .~ JJL
From my 40th high school reunion, I learned that one of my classmates and long lost friends, Dean Menegas , is the general counsel at Spinnaker Capital, vice-chair, board of directors at the Emerging Markets Trade Association (EMTA) and president of the Transatlantic Council of the Boy Scouts of America.He is the president of the Boy Scout Council for the rest of the world besides the US, except for a council in Asia.~ JJL
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CME Group Reaches Record Asia Pacific Average Daily Volume of 1.2 Million Contracts in Q3 CME GroupCME Group, the world’s leading and most diverse derivatives marketplace, today announced that it achieved its highest quarterly Asia Pacific average daily volume (ADV) on record, with 1.2 million contracts traded during third-quarter of 2019, up 61% year over year and surpassing the previous quarterly record of 1.1 million contracts traded in second-quarter 2019.
****That is a lot of volume from Asia.~ JJL
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Spoofing; Cross-Market Manipulation; Ether – Yes (CFTC); Bitcoin – No (SEC); Mandamus Gary DeWaal – Bridging The WeekA broker-dealer and its chief executive officer settled charges brought in 2017 by the Securities and Exchange Commission that the firm facilitated manipulative conduct by a customer, despite being alerted by regulators and an insider at the client that the customer might be engaging in spoofing trading.Unrelatedly, while the new chair of the Commodity Futures Trading Commission proclaimed the digital currency ether a commodity and said there soon might be futures or other derivatives contracts based on the second-largest market cap cryptocurrency, the SEC once again stymied the listing of an exchange-traded fund based on bitcoin.
As a result, the following matters are covered in this week’s edition of Bridging the Week:
Cloud in Retail Banking and Capital Markets: Financial Services Leaders Forum NYC Recap (Part Two) Chuck Mackey – Maven WaveThe Financial Services Leaders Forum (FSL Forum) from Google presented a detailed and comprehensive look at how Google Cloud and its attendant services are acting to drive transformation in the industry.Financial services was long seen as a laggard in embracing the power of the cloud, but that has changed dramatically in the past year or two.The day-long lineup of speakers and presentations at FSL Forum stands as a testament to that fact.
The always popular Chuck Mackey recaps.~ JJL
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Friday’s Top Three Our top read item on Friday was the JLN History of Traders’s piece on Jacob Morowitz: Open Outcry Traders History Project .
Second was Ken Fisher Apologizes for Offensive Remarks Two Days Later from Bloomberg.Third was The Block Crypto’s Jump Capital principal says improving capital efficiency is key for industry
++++ CryptoMarketsWiki , our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.
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Chinese censorship is spreading beyond its borders; Western companies and universities have strong incentives not to offend Beijing Gideon Rachman – FTWhen Xi Jinping greeted African leaders in Beijing last year, his speech contained a very Chinese formula: the “five nos”.In reality, all five negatives could be summed up as a single pledge.Unlike bossy westerners, China would never tell Africans how to run their own countries.There would be “no interference in African countries’ internal affairs”./on.ft.com/35uWBjI
Free markets demand freedom of speech and expression.
I believe in free markets and freedom of speech, expression and assembly.~ JJL
Asset managers must use their votes to tackle climate change; Tasked with voting for directors on behalf of millions of savers, they have the power to make a difference Natasha Landell-Mills – FTAs we emerge from the 2019 voting season for listed companies — the time of year when shareholders elect company leaders — asset managers have once again ducked their responsibility to help address the climate crisis.At ExxonMobil, Chevron, BP, Shell and Total, directors were appointed with an average 97 per cent support from shareholders.
Global regulators put pressure on Libra with enhanced scrutiny; Facebook seeks to rally support for digital currency as more partners jump ship Chris Giles, Kiran Stacey and Hannah Murphy – FTFacebook’s plans for a digital currency are coming under further pressure as global regulators step up their scrutiny of the struggling Libra project.
UK to expand powers to block foreign takeover deals ReutersBritain plans to strengthen its powers to block or intervene in the foreign purchase of any company that could affect national security, it said on Monday.
Blackstone Talked With Ken Griffin’s Citadel About Buying Stake; Flagship hedge-fund operation could be worth up to $7 billion Rachael Levy and Liz Hoffman – WSJBlackstone Group Inc.BX 1.29% has held talks to buy a stake in Ken Griffin’s Citadel LLC, a deal that would unite two of the biggest names in investing.
Amber accuses Lagardère of trying to ‘intimidate’ shareholders; Activist investor responds to lawsuit issued against it by the French media group Harriet Agnew – FTAmber Capital, the activist hedge fund locked in a battle with Lagardère, has hit back at a lawsuit launched against it by the French media group, calling it “as aggressive as it is baseless”.
The TRADE Magazine, Autumn 2019; John runs through what you can find in the latest issue of The TRADE, now available to read online.John Brazier – The TradeThe latest issue of The TRADE is now available to read online, so now you’ve had time to adjust to being back at work and dropped the kids off at school, dive into all the best content from the Autumn 2018 issue:
‘Back Door’ Capital Outflows Should Worry Beijing; Officially, China has been successful in preventing citizens from moving cash abroad to avoid a weakening yuan—but all might not be what it seems.
Nathaniel Taplin – WSJThe Chinese talk of “walking through the back door”—meaning finding a way around the rules, and often implying graft or the use of personal connections.
Kim Jong Un May Be Hiding a Hog Apocalypse From the World Heesu Lee – BloombergAfrican swine fever is said to have spread across North Korea; Virus risks becoming endemic, dispersing to neighboring statesBy official accounts, the pig contagion wreaking havoc across Eastern Asia has virtually skipped over North Korea, with a single outbreak reported there in May.But wayward feral pigs have stoked concern that Kim Jong Un’s reclusive state is hiding an African swine fever disaster.
World’s Biggest Pork Producer Warns of Bacon Shortage Lydia Mulvany – BloombergSpread of pig disease in China will have global ripples; U.S.ham market could also face deficit, Smithfield says.It’s scary news for bacon fans: The U.S.
could see tight supplies, or even some shortages of pork bellies along with ham next year as the spread of a pig-killing disease in China ripples through the global market.
How to hide a billion dollars; A guide for kleptocrats worried by foreign prosecutors The EconomistSo you’ve stolen a billion dollars.That was the easy part.The country of which you are president may be poor, which is a pity, but it is also lawless, which creates opportunities.The auditors, police and prosecutors who should have slapped the hand you put in the treasury chose to kiss it instead.So your pockets are bulging with ill-gotten loot.There is just one snag: the world has grown less tolerant of kleptocrats.
/econ.st/2IOfR20
Plans for ‘offshore renminbi Nasdaq’ in Macau submitted to Beijing; Official involved in submitting proposal to central government says he hopes plan might be approved as a ‘birthday gift’ on 20th anniversary of city’s return to Chinese administration; Announcement of plan’s submission made at forum in Guangdong province on Saturday He Huifeng, Eric Ng – South China Morning PostA proposal to set up an offshore yuan-denominated “Nasdaq” in Macau has been submitted to Beijing for consideration, according to a senior official from neighbouring Guangdong province.
Revamp BOE or Yield to ‘Tyranny of Consensus,’ Blanchflower Says Lucy Meakin – BloombergThe Bank of England rate-setting committee should be drastically overhauled to follow the model of the Federal Reserve, otherwise it will remain hostage to the “tyranny of consensus,” according to former policy maker Danny Blanchflower.
Michigan Pulls $600 Million From Ken Fisher After Lewd Remarks Janet Lorin – BloombergBacklash after billionaire investor’s comments at conference; Other customers are evaluating relationship with FisherThe State of Michigan Retirement Fund’s pension account, worth more than $70 billion, ended its relationship with the investment firm of Ken Fisher in the latest backlash to offensive remarks the billionaire made this week at a conference.Fisher has apologized for sexist and off-color remarks he made at the Tiburon CEO summit in San Francisco, but it hasn’t stopped the outrage.
BME: MARF Registers A New 100 Million-Euro Commercial Paper Programme By PRYCONSA MondovisioneBME’s Fixed Income Market, MARF, has admitted a new commercial paper (CP) programme by Pryconsa to trading.
Through this new tool the company will be able to place CPs with a maximum outstanding volume of 100 million euros and maturities up to twenty-four months.
Interactive Brokers clients worldwide can now trade on Moscow Exchange MOEXMoscow Exchange (MOEX) today announces that Interactive Brokers Group (Nasdaq: IBKR), a global electronic broker, has begun providing access to the Russian market for all its clients in the US and worldwide.
CME’s physical aluminum delivery gains traction in Asia warehouses Min Zhang, Shivani Singh – ReutersCME Group Inc’s physical delivery of aluminum has gained traction since September after expanding its warehousing network beyond the United States into Europe and Asia, fueled by growing liquidity in Asian market, a company official said.“We are starting to see actually more and more materials coming into our warehouses,” Young-Jin Chang, CME’s Global Head of Metals told Reuters by telephone on Friday, adding more stocks of the light metal were expected in Asian locations.
The Future of Investing, Adena Friedman, Nasdaq CEO Yahoo FinanceIn a conversation with Yahoo Finance, Adena Friedman, Nasdaq CEO, discusses how to appeal to younger investors, the state of the U.S.and global economies, cryptocurrencies and blockchain tech, the U.S.
IPO market and companies remaining private for longer periods.
Cyber fraud techniques evolve into confidence trick arms race Social engineering becomes more sophisticated in convincing victims to co-operateSiddharth Venkataramakrishnan – The Financial TimesWhile talk of cyber security breaches may conjure up images of advanced weapons, elite hackers and system-wide disruption, many attacks rely on less technically demanding techniques.Some are the result of social engineering: the art of getting targets to do something that the fraudster wants them to.
Symphony will not go public until it is profitable, says chief; Goldman-led messaging platform has attracted investment from other big banks Laura Noonan and Eva Szalay – FTThe Goldman Sachs-led messaging platform Symphony, created to wean traders off Bloomberg’s chat function, will not go public until it is profitable, chief executive David Gurle told the Financial Times, outlining a timetable that rules out a listing until late 2021.
Companies urged to bolster infrastructure cyber defences; Experts say critical facilities present attractive targets for hackers Hannah Murphy – FTHackers have traditionally focused their attention on computer software, resulting in a mushrooming of cyber security companies that promise protections for office-based clients.
A hacker’s paradise? 5G and cyber security; Internet-connected devices using fifth-generation mobile networks offer prime targets for criminals Nick Huber – FTThe rollout of fifth-generation mobile networks — which offer the potential for downloads speeds of up to 10 times faster than today’s — will change how we communicate, work and stream video.
Does cyber security cross the line when crossing borders? Wider use of technology to screen travellers raises privacy and safety concerns Siddarth Shrikanth – FTPotential visitors to the US were recently confronted with a new requirement on the long and complicated visa application form — to provide information about their social media identities.
Hybrid warfare: the new face of global competition; Businesses and governments targeted by cyber attacks, subversion and espionage Scott Tait – FTIt is alternatively called “grey zone” conflict and is in the news almost daily.Yet the main focus to-date of “hybrid warfare” — which uses non-military means to achieve warlike ends — has predominantly been on tactical methods such as cyber attacks, fake news campaigns and espionage.But understanding hybrid warfare’s strategic context equips political and business leaders better to address it.
US private equity group to buy Sophos for £3.1bn; Latest in a wave of investments by software-focused buyout group Thoma Bravo Philip Georgiadis – FTUS private equity group Thoma Bravo has agreed to buy Sophos in a deal which values the British cyber security group at £3.1bn including net debt.The deal is the latest in a wave of investments by the software-focused American buyout group, which has made a series of aggressive bets in recent years, and its first outside of the US.
Sophos Becomes Latest U.K.Tech Target in $3.8 Billion Deal Giles Turner and Kit Rees – BloombergSophos shares surge as much as 38% on cash buyout offer; Deal is the biggest takeover of a U.K.tech firm this yearPrivate equity firm Thoma Bravo agreed to buy Sophos Group Plc for $3.8 billion, taking the British cybersecurity firm private in the biggest takeover of a U.K.technology firm this year.
kACE partners with China’s Hangzhou Erayintong Software Limited to offer Electronic Distribution of FX Options in China BCG Partners Inc.kACE, a division of Fenics Software Limited, an entity within BGC Partners, Inc.
(NASDAQ: BGCP) (“BGC Partners,”“BGC” or the “Company”), a leading global brokerage and financial technology company, today announced it is partnering with Hangzhou Erayintong Software (“ERAYT”), a leading Chinese technology company providing front end distribution services to local bank branches, to offer FX Options solutions to the China market.
IHS Markit Acquires Novation Analytics aftermarketNews StaffIHS Markit, a world leader in critical information, analytics and solutions, recently announced the acquisition of Novation Analytics, a specialist provider of software solutions, data analysis and advisory services to the automotive industry.Novation Analytics focuses on the modeling of vehicle energy efficiency and CO2 emissions compliance.
The team is based in Auburn Hills, Michigan, and headed by Greg Pannone and Heidi Schroeder.
Cryptocurrency Investors Get New IRS Income-Reporting Rules Laura Davison and Allyson Versprille – BloombergTax guidance tells investors how to treat coin splits; IRS is increasingly enforcing tax rules for cryptocurrencyCryptocurrency holders know more about what the Internal Revenue Service expects to see on their tax returns, thanks to new guidance from the agency.
SEC, CFTC, FinCEN Warn Crypto Industry to Follow US Banking Laws Nikhilesh De – CoindeskThe heads of three U.S.financial regulators warned the cryptocurrency industry to abide by banking laws in a joint statement published Friday.
Bitcoin No Longer Seen as the Driving Force in Crypto Market Brandon Kochkodin – BloombergIndexica points to a growing cryptocurrency ecosystem; Moves spurred by competing coins, new blockchain technologiesBitcoin has plunged more than 30% since hitting a year-to-date high.That fact is clear, but explaining why the world’s largest digital currency has lost momentum in the second half of the year is anything but.
Facebook’s Libra currency abandoned by major financial companies Pete Schroeder, Shanti S Nair, Katie Paul – RetuersFacebook Inc’s ambitious efforts to establish a global digital currency called Libra suffered severe setbacks on Friday, as major payment companies including Mastercard and Visa Inc quit the group behind the project.
U.S.Regulators Sue Crypto Startup Telegram Over Initial Coin Offering Dave Michaels – WSJU.S.
regulators sued a company that raised $1.7 billion through a cryptocurrency offering that became one of the largest such deals ever.The Securities and Exchange Commission on Friday said it obtained a legal order to halt Telegram Group Inc.from distributing its crypto asset, known as gram.Telegram, founded by two Russian brothers, developed a messaging app that is popular with cryptocurrency traders and developers.
There’s A New Question On Your 1040 As IRS Gets Serious About Cryptocurrency Kelly Phillips Erb – ForbesDays after the Internal Revenue Service (IRS) released two new pieces of guidance for taxpayers who engage in transactions involving virtual currency, the IRS announced another compliance measure: a checkbox on form 1040.The checkbox, which appears on the early release draft of the form 1040, asks taxpayers about financial interests in virtual currency.
Litecoin Turns 8 — Charlie Lee Says Foundation Not Near Bankruptcy Marie Huillet – CointelegraphAs Litecoin (LTC) celebrated its eighth birthday on Oct.13, its founder Charlie Lee had to fend off crypto Twitter’s FUD — fear, uncertainty and doubt — about the altcoin.Lee’s original post was the exuberant announcement that: “Litecoin network has been up and running continuously for the past 8 years with zero downtime.And in that span of time, over $500,000,000,000 worth of LTC have been transacted.
Looking forward to the next 8 years and more! “
G7 Evaluates Stablecoins as Risk to Global Financial Stability David Pan – CoindeskThe world’s biggest economies are assessing stablecoins as a potential risk to the global financial system, according to a statement from the Financial Stability Board (FSB).In a letter to G20 finance ministers and central bank governors on Sunday, the FSB’s chair Randal Quarles said the G7 working group is delivering an assessment report on opportunities and challenges posed by global stablecoins.
Coinbase Eyes European Growth After Winning Irish E-Money License William Foxley – CoindeskCryptocurrency exchange Coinbase has been granted an e-money license by the Central Bank of Ireland.Writing in a company blog Saturday, Coinbase UK CEO Zeeshan Feroz said the exchange is one of the very first firms to receive the license from the central bank, following a Dublin office opening a year ago.The license will also help open up EU and European Economic Area (EEA) markets for Coinbase customers, Feroz said.
Coinbase Eyes European Growth After Winning Irish E-Money License William Foxley – Coindesk
Kik Announces It’s ‘Here to Stay’ in Apparent Reversal of Fortunes Marie Huillet – CointelegraphCanadian social media and messaging app Kik has revealed it’s “here to stay,” in an apparent reversal of earlier plans to shut down amid legal difficulties.
In an official tweet posted on Oct.13, the company announced: “Great news: Kik is here to stay!!!!AND there’s some really exciting plans for making the app even better.More details coming soon.Stay tuned.” bit.ly/32fArQy Politics
Russia looks at alternatives to dollar for energy transactions; Settling in roubles or euros would limit exposure to US, says economy minister Max Seddon and Henry Foy – FTRussia is exploring currency settlements in euros and roubles for its vast energy exports in an attempt to avoid the dollar and insulate Moscow from the US-led global financial system.
Russia cyber aggression fuels tensions with west; Experts say attacks have switched from information gathering to offensives and disruption Michael Imeson – FTRussian government-backed cyber aggression is heightening concerns from the west following a spate of high-profile incidents, prompting threats of countermeasures from the likes of Nato, the EU and UK.
Trump’s hailing of $50 billion in Chinese farm purchases seen as ‘meaningless’ Dominique Patton – ReutersChina is still a long way from forking out $50 billion for farm goods from the United States, agriculture industry analysts said on Monday, cautioning that getting there is contingent on removing substantial technical and political hurdles.
Coal Bankruptcies Pile Up as Utilities Embrace Gas, Renewables; Despite President Trump’s promise to boost coal, at least seven large coal producers have filed for bankruptcy since October 2018 Jonathan Randles – WSJMore than half a dozen large U.S.
coal companies have filed for bankruptcy in the past year, a signal that the one-time king of American energy is fading as it faces competition from cheap natural gas and renewable-energy sources while reckoning with the retirement of coal-fired power plants.
Elizabeth Warren’s Facebook ad proves the social media giant still has a politics problem Kayla Epstein – The Washington PostThe campaign of Democratic presidential candidate Sen.
Elizabeth Warren trolled Facebook on its own turf last week, stoking the debate about how aggressively the social media giant, whose massive reach was exploited during the 2016 elections, should tackle disinformation and political ads.
Billionaires Could Face Tax Rates Up to 97.5% Under Sanders Rich Miller and Laura Davison – BloombergWarren would levy taxes up to 62% on richest Americans; new model depicts how candidates would tax by income group.Billionaires may have much more to fear from a Bernie Sanders presidency than they do from an Elizabeth Warren administration, according to two economists advising both candidates.
Trump Has Real Reasons to Fixate Over the Stock Market Lu Wang and Tatiana Darie – BloombergStudy finds a measurable tie between share returns and voting; ‘An opportunity for politicians to cater through this channel’No president in modern history has followed the stock market more obsessively as a barometer of success than Donald Trump.You can see it in the dozens of tweets he’s sent referencing the Dow Jones Industrial Average, in the way every record is celebrated while lurches are pinned on the Democrats.
Trump’s Shameful Abandonment of the Kurds; The U.S.owes the Syrian Democratic Forces some loyalty for their fight against Islamic State.Editorial Board – Bloomberg“Turkey will soon be moving forward with its long-planned operation into Northern Syria,” the White House announced late Sunday.
U.S.forces “will no longer be in the immediate area.” The Trump administration thus granted Turkey’s President Recep Tayyip Erdogan tacit permission to attack Kurdish forces in Syria — forces that have been vital U.S.allies in the fight against Islamic State.
CFTC Extends Public Comment Period for Proposed Rules Pertaining to Cross-Border Clearing CFTCThe U.S.Commodity Futures Trading Commission announced today that it is extending to November 18 the comment period for the proposal for an alternative compliance framework for derivatives clearing organizations (DCOs) organized outside of the United States that do not pose substantial risk to the U.S.financial system.Under the proposal, these DCOs would be able to register with the CFTC yet comply with the core principles applicable to DCOs in the Commodity Exchange Act through compliance with their home country regulatory regime, subject to certain conditions and limitations.The original comment period for the proposed rule was to expire on September 17.
Former FDIC head criticises financial company sold to Blackstone; Promontory’s business model ‘games’ deposit insurance rules, says Sheila Bair Mark Vandevelde – FTA former top US financial regulator has struck a multibillion-dollar deal with Blackstone to sell a company that helps savers obtain extra deposit insurance, in what one former bank supervisor called a way of “gaming” financial rules.
FCA assures ‘pragmatic approach’ to MiFID & EMIR reporting supervision as Brexit looms; Firms have been urged by the FCA to take reasonable steps to prepare with post-Brexit MiFID and EMIR reporting requirements.
Hayley McDowell – The TradeThe UK financial watchdog has said it will take a ‘pragmatic’ approach to the supervision of MiFID transaction reporting and EMIR trade reporting requirements upon the advent of Brexit.
ASIC ‘calls time’ on disclosure reliance ASICIn a joint report published today, ASIC and the Dutch Authority for the Financial Markets (AFM) looked at the effectiveness of disclosure for financial products on consumer outcomes.The report covers a decade of case studies across a broad range of financial products and services in Australia, the Netherlands, the UK and the US.It finds that reliance on mandated disclosure and warnings has often proved ineffective, and at times even backfired contributing to more consumer harm.
SEC Halts Alleged $1.7 Billion Unregistered Digital Token Offering SECThe Securities and Exchange Commission today announced that it has filed an emergency action and obtained temporary restraining order against two offshore entities conducting an alleged unregistered, ongoing digital token offering in the U.S.and overseas that has raised more than $1.7 billion of investor funds.
SEC Educational Videos Aim to Help Investors Spot and Avoid Fraud SECThe SEC’s Office of Investor Education and Advocacy and Retail Strategy Task Force this week released new videos and Investor Alerts to help show investors what fraud looks like.Fraudsters will use every gimmick they can think of to get their hands on investors’ hard-earned money.These videos, along with our other investor education materials on Investor.gov, provide practical information that Main Street investors can use to avoid fraud and become empowered to make the best investment decisions possible for a strong financial future.
NFA announces webinars for Swaps Proficiency Requirements Administrators NFANFA’s Swaps Proficiency Requirements will launch and become accessible online on January 31, 2020.For details regarding who must fulfill these requirements, see Notice to Members I-19-09.
Gabriel users share suggestions for our new data collection platform UK FCAOur online survey was completed by Gabriel users.
The feedback will be used to improve the user experience.bit.ly/35uakHH Investing and Trading
Investors Pull Money Out of Stock Funds, Squeezing Money Managers; Pullback from stock funds set to weigh on firms’ third-quarter earnings Dawn Lim – WSJCautious investors pulled $60 billion out of stock funds in the third quarter, ratcheting up pressure on money managers.The net outflows accounted for the most money leaving stock funds in a quarter since 2009, according to Morningstar data on U.S.mutual funds and exchange-traded funds.
Lossmaking tech shares face rough ride as lock-up clauses expire; Lock-up periods for big newly-listed stocks including Uber expire before end of 2019 Richard Henderson – FTSome of the biggest US tech stocks could be heading for a tough end to the year, as company insiders and pre-IPO investors get their first green light to start selling.
Goldman and Morgan Stanley expected to suffer IPO earnings hit; WeWork’s failed listing and weak investment banking likely to weigh in third quarter Laura Noonan and Robert Armstrong – FTEarnings expectations for Morgan Stanley and Goldman Sachs have been sharply pared back ahead of this week’s results, after a torrid run of stock market listings and a slowdown in M&A activity weighed on investment banking performance.
200% Stock Surge Makes Li Ning World’s Hottest Sportswear Firm Richard Frost – BloombergThe hottest sportswear brand in the world right now — at least in the stock market — is a Chinese firm founded by former Olympic gymnast Li Ning.
Chinese Shoppers and Investors Are Losing Their Appetite for Gold Bloomberg NewsConsumption to drop in 2019 before stabilizing next year; Investors worried gold is ‘looking rich,’ Kavalis saysChina’s shoppers and investors lost their appetite for gold this year — and there’s little expectation of any major improvement in 2020 as slowing growth and higher prices crimp consumer spending.
When God Is Your Portfolio Manager; Biblically responsible investing is booming, as some Christians move to match their faith with their stock buys Jason Zweig – WSJWhat would Jesus buy? That question is spreading in the investing world, as evangelicals and other Christians seek investment management and financial planning to match their interpretation of biblical principles.
The latest sign of the rise of faith-based investing was the launch of the Inspire International ESG exchange-traded fund on Sept.30.Its ticker symbol? WWJD, short for the popular expression “What would Jesus do?” /on.wsj.com/2MG6dQ8 Institutions
HSBC plans First Direct relaunch to compete with digital rivals; New features could include in-app marketplace and automated savings top-ups Nicholas Megaw – FTHSBC is planning an overhaul of its First Direct brand to attract younger customers and compete with fast-growing new digital rivals such as Monzo.
Spying scandal weighs on Tidjane Thiam’s tenure at Credit Suisse; The share price has halved and reputations are at stake amid intrigue in Zurich Patrick Jenkins – FTWhen Tidjane Thiam arrived at the helm of Credit Suisse in the summer of 2015, he was a hero.
Plucked from the same role at UK insurer Prudential, where he had doubled the share price in six years, he had big plans to shrink the Swiss group’s investment bank, slash costs, raise fresh capital and expand in Asia.
The Fed is extending its overnight funding operations through January 2020 Jeff Cox – CNBCThe Federal Reserve will be extending its temporary overnight repo operations through at least January.In addition, the central bank said it will be buying short-duration Treasury bills through at least the second quarter of 2020.Both announcements come as the Fed is looking to address issues in the short-term lending markets.
Michigan pension fund moves $600M out of Fisher Investments after offensive remarks Crain’s Detroit BusinessThe State of Michigan Retirement Fund’s pension account, worth more than $70 billion, ended its relationship with the investment firm of Ken Fisher in the latest backlash to offensive remarks the billionaire made last week at an investment conference.Fisher has apologized for sexist and off-color remarks he made at the Tiburon CEO summit in San Francisco, but it hasn’t stopped the outrage.
Activists thought BlackRock, Vanguard found religion on climate change.Not anymore Eric Rosenbaum – CNBCBlackRock and Vanguard voted in 2017 to require Exxon Mobil to produce a climate change report.
At the time many thought it would prove to be a major milestone in investor-led climate efforts, but the two giant money managers have voted in favor of few similar resolutions since.“We thought they had gotten religion on climate change,” said one climate investor.“That was a generous interpretation.”.
