Paul Volcker, at 91, Sees ‘a Hell of a Mess in Every Direction’

Oct 29, 2018

First Read

Hits & Takes
JLN Staff

It is a somber morning in October, given the terrible shooting news in Pittsburgh, PA over the weekend.~JJL

In the Best Execution 10th Anniversary edition, there is an interview with Cathy Lyall, co-founder of Seismic Foundry.~JJL

Cult Wines is hosting a brief Fine Wine Investment Seminar, November 12, 2018 at 4:15 pm to 5 pm at the JW Marriott, 151 W. Adams St. in Chicago: Profitable Passion: An Introduction to Fine Wine as an alternative asset class is a detailed overview of how an investment in fine wine could benefit your overall portfolio. Click HERE TO REGISTER.~JK

I went camping with my Venture Crew at Devil’s Lake, WI, where the crew rappelled and rock climbed on the premier spot to do so in the Midwest. My parents spent their honeymoon at Devil’s Lake many years ago.~JJL

November 15 is the LaSalle Street Trading Tech Awards event at the Chicago Board of Trade Building to support Scouting in Chicago. If you are interested in attending or want to learn more about becoming a host to a Trading Tech 300 merit badge clinic, contact me.~JJL

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The Spread – Believe in Ghosts? – 10/26

JohnLothianNews.com

What’s the deal with October?

Watch the video and see the stories referenced here »

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Pittsburgh Synagogue Shooting Spurs Outpouring of Grief; The violence, which claimed 11 lives, was roundly condemned by religious and political leaders
WSJ Staff
The mass shooting at a synagogue in Pittsburgh prompted an outpouring of sympathy for the victims and stirred a discussion about violence targeting houses of worship in America.
/on.wsj.com/2Q2nqnb

***** My soul hurt when I heard this news.~JJL

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‘There Is Still So Much Evil’: Growing Anti-Semitism Stuns American Jews
Laurie Goodstein – NY Times
Until recent years, many Jews in America believed that the worst of anti-Semitism was over there, in Europe, a vestige of the old country. American Jews were welcome in universities, country clubs and corporate boards that once excluded their grandparents. They married non-Jews, moved into mixed neighborhoods and by 2000, the first Jew ran for vice president on a major party ticket. So the massacre on Saturday of 11 people in a Pittsburgh synagogue, by a man who told the police when he surrendered that he “wanted all Jews to die,” was for many a shocking wake-up call.
/nyti.ms/2Q1tqMX

***** There is a media war being fought and this last week it turned into actions on the part of troubled individuals. In the 1930s, before there was a shooting war, there was a media war. Words do matter. Truth does matter. Power should be used for the good of all, not just some.~JJL

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Apple bars Bloomberg from iPad event as payback for spy chip story
Buster Hein – Cult of Mac
Apple and Amazon are already starting to make retaliatory moves on Bloomberg for its claims that the two companies’ servers were hacked by China.
Amazon pulled its Q4 ads from Bloomberg’s website, cutting off significant ad revenue. Meanwhile, Apple has decided to give Bloomberg the old GizmodoV treatment by banning the company from its big fall event.
bit.ly/2yCjjrd

***** Apple just hurt their reputation in my book. Don’t mess with Bloomberg!~JJL

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Friday’s Top Three
Friday’s JLN was largely about legacy, led by the Chicago Sun-Times’ Judge risks 81-year-old Pat Arbor dying in jail, ex-CBOT chief’s lawyer says. Second was the Chicago Tribune’s piece on real estate moves by Leo Melamed in Former Chicago Mercantile Exchange chairman sells contemporary Glencoe mansion, buys Gold Coast condo. Third was the FT’s Exchanges warn SEC against muscling in on market data cost debate

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Lead Stories

Paul Volcker, at 91, Sees ‘a Hell of a Mess in Every Direction’; The former Fed chairman, whose memoir will be published this month, had a feisty take on the state of politics and government during an interview.
Andrew Ross Sorkin – NY Times
Paul Volcker, wearing a blue sweatsuit and black dress socks, stretched out on a recliner in the den of his Upper East Side apartment on a Sunday afternoon. His lanky 6-foot-7 frame extended beyond the end of the chair’s leg rest. He added an ottoman to rest his feet.
/nyti.ms/2EDKp6X

IBM to Acquire Linux Distributor Red Hat for $33.4 Billion
Ed Hammond, Kiel Porter, and Alex Barinka – Bloomberg
Computer-services giant to pay $190 a share for Red Hat; Software maker will become a unit of IBM’s Hybrid Cloud team
IBM agreed to acquire software maker Red Hat Inc. in a $33.4 billion bet on jump-starting its efforts to catch up in the cloud.
/bloom.bg/2Q2Ayc4

Why we could all pay the price for obscure derivatives rules; An EU-US dispute over financial regulation could determine the price of hedging risk
Patrick Jenkins – FT
In the jargon-filled world of financial regulation, the concept of deference has evolved from a simple expression of respect and courteousness into something far more barbed and Machiavellian.
/on.ft.com/2qgAjPf

BGC Partners deepens insurance market push with Ed Broking deal
Save to myFT
Philip Stafford – FT
BGC Partners, the US interdealer broker, is deepening its push into the insurance market with a deal to buy Ed Broking, a Lloyd’s of London broker.
/on.ft.com/2Q4BwEE

British Cartel Traders Acquitted of Rigging Currency Market
By Bob Van Voris , Lananh Nguyen , and Chris Dolmetsch – Bloomberg
Jury rejects charge that chatroom was used to fix prices; Usher, Ramchandani, Ashton are not guilty after New York trial
Three British traders were acquitted of using an online chatroom to fix prices in the $5.1 trillion-a-day foreign exchange market, a blow to global efforts to police the industry.
/bloom.bg/2qfHveD

London forex traders found not guilty in U.S. rigging case
Brendan Pierson – Reuters
Three former London-based currency traders were found not guilty on Friday of U.S. charges that they schemed to rig benchmark exchange rates, the latest criminal convictions to emerge from a U.S. probe into the multitrillion-dollar foreign exchange market.
/reut.rs/2D7hy9x

Upstart Exchange Looks to Profit From Wall Street Fear; MIAX to launch options on index for volatility traders, competing with Cboe’s VIX
By Gunjan Banerji – WSJ
Just after the stormiest week for U.S. markets in months, investors may get a new way to bet on Wall Street fear.
/on.wsj.com/2CKKtQC

Wary of crypto, UK government blocks Royal Mint’s digital gold
Peter Hobson – Reuters
Britain’s Royal Mint has frozen plans to launch a digital gold token after a partnership with U.S. exchange group CME failed and the government vetoed a plan to have the tokens trade on a cryptocurrency exchange, three sources told Reuters.
/reut.rs/2D6ni3i

Hog industry worldwide getting slaughtered in trade war
Tom Polansek, Hallie Gu, Ana Mano – Reuters
Ken Maschhoff, chairman of the largest U.S. family-owned pork producer, has watched profits fall as trade tensions rise between the United States and China.
/reut.rs/2D6VUCm

People are key during an uncertain future in finance
Telegraph
Companies will need workforces resilient to change and adaptable to the challenges of new technology, making the most of the opportunities they bring
bit.ly/2QaqygI

Bond Traders Bail on the Fed Too Soon; It’s wrong to assume the central bank will react to the stock market drop like it has before.
Brian Chappatta – Bloomberg
Bond traders are ready to pick a fight with the Federal Reserve. Maybe too ready.
/bloom.bg/2Q155H6

Auditors grapple with crypto and blockchain; Big firms respond to new products but there is a lack of consensus on rules
Hannah Murphy in London – FT
Top professional services firms are hiring hundreds of blockchain and cryptocurrency experts to offer auditing services to companies involved in the nascent and loosely regulated sector.
/on.ft.com/2qgzvKd

Exchanges, OTC and Clearing

Euronext Halts Equities Trading in Worst Outage Since 2016
Viren Vaghela – Bloomberg
Euronext NV halted trading on its equities platform this morning, blaming technical problems for its worst outage in two years.
/bloom.bg/2qjpigd

***** All systems normal.~JJL

Euronext delays market open due to technical glitch with new Optiq platform; Customers have been unable to enter, modify or cancel orders this morning on Euronext’s recently launched cash markets trading platform Optiq.
Hayley McDowell – The Trade
Pan-European exchange Euronext was forced to delay the opening of all cash markets today due to a technical issue with its recently-launched cash markets trading platform, the company said this morning.
bit.ly/2qhz96k

Diego Sapaico, DWS: “I focus on employing global macro strategies.”
Eurex
We at Eurex are proud to offer the broadest MSCI product range. But how important is choice for our customers? We discussed this and other topics with Diego Sapaico. He is a portfolio manager at DWS and responsible for approx. EUR 1.3 billion assets under management across various multi asset total return portfolios. Diego focuses on managing unconstrained global macro strategies and is instrumental in trading & managing cross asset derivatives. Diego started his career as a global fixed income portfolio manager.
bit.ly/2qfE2wD

HKEX Launches Enhanced HKEXnews Website
HKEX
New web pages and user interface for better user experience; Enhancements for mobility devices to meet the increasing appetite from tablet and smartphone users
Hong Kong Exchanges and Clearing Limited (HKEX) announced today (Monday) that it has unveiled a new look for its HKEXnews website to provide a better user experience, as well as to align it more closely with HKEX’s corporate and market websites.
bit.ly/2qhUs7q

Miami International Holdings Deploys OneTick for MIAX Emerald and MIAX Equities
Financial IT
OneMarketData, LLC, the creators of OneTick, the leading solution for event stream processing and Tick Data management, today announced that Miami International Holdings, Inc. (MIH) has chosen OneTick, OneMarketData’s proprietary high-performance tick capture and streaming analytics engine, for two additional exchanges: MIAX Emerald, LLC and the MIAX Equities Exchange. With this expansion, OneTick will be a key component of the surveillance and data analytics solution MIH uses for all of its exchanges.
bit.ly/2CKyzoZ

TSE Establishes an Advisory Group to Review the TSE Cash Equity Market Structure
JPX
To enhance the global competitiveness of Japanese financial and capital markets, Tokyo Stock Exchange Group and Osaka Securities Exchange conducted a business combination to form Japan Exchange Group, Inc. Following the business combination, TSE integrated the cash equity markets in July 2013. During the integration, to avoid confusion and any unnecessary burden on listed companies, as well as investors, the structure of the cash equity market was unchanged.
bit.ly/2qfptcb

JPX Expresses Support for TCFD
JPX
Today, JPX expressed its support for the Task Force on Climate-related Financial Disclosures (TCFD) under the Financial Stability Board (FSB). TCFD, a private-sector-driven task force established in 2015 in response to a request from G20 Finance Ministers and Central Bank Governors Meeting, had deliberated on recommendations and reports regarding climate-related financial disclosure. In June 2017, TCFD released the final report whose aim is that individual financial institutions and business corporations will seize and disclose financial impacts of the risks and opportunities presented by climate change. As of September 2018, 513 entities around the world, including financial institutions, enterprises, governments, and international organizations, have shown their support for TCFD.
bit.ly/2qhBPko

Japan Exchange Group, Inc. and Consolidated Subsidiaries
JPX
Consolidated financial results for the six months ended September 30, 2018
(Based on IFRS), unaudited
bit.ly/2qhBSwA

Your Exchange of Choice; Overview of Earnings for Q2 FY2018
Japan Exchange Group, Inc.
bit.ly/2qePGaY

A Missed Opportunity to Enhance US Markets: A Review of Two Days in DC
Stacey Cunningham – President at NYSE via LInkedIn
This week, industry leaders met in Washington for the Securities and Exchange Commission’s roundtable on exchange market data and connectivity. Over the course of two days, some of the brightest minds in the financial services industry went back and forth over the framework and fees associated with accessing equity markets and information.
bit.ly/2qeQUmA

Fintech

U.K. Tech Tax Would Be Both Pointless and Essential; A unilateral levy on tech giants’ revenue wouldn’t raise much money, but its global impact would be far greater.
Alex Webb – Bloomberg
It looks like Britain’s Chancellor of the Exchequer, Philip Hammond, has backed off plans to unveil a levy on digital services in Monday’s budget. He’s missing an opportunity to take a leading role in the overhaul of a tax system that has long been unfit for purpose.
/bloom.bg/2Q4PLcr

Warren Buffett’s Firm Invests Millions in Fintech
Nicole Friedman and Peter Rudegeair – WSJ
Warren Buffett’s Berkshire Hathaway Inc. is hopping on the fintech bandwagon.
Berkshire invested around $600 million in recent months in two big financial-technology companies focused on emerging markets: Brazilian payment processor StoneCo. Ltd. and the parent company of India’s largest mobile-payments service, Paytm.
/on.wsj.com/2ENYkaD

Fortnite Creator Epic Games Valued at Nearly $15 Billion; New investors include traditional investment firms KKR, Kleiner Perkins, and Lightspeed Venture Partners
Sarah E. Needleman and Katie Roof – WSJ
Epic Games Inc., the creator of the smash-hit videogame “Fortnite,” is valued at almost $15 billion as part of a major new investment round, according to people familiar with the matter.
/on.wsj.com/2Q3Y2xB

How Has Lithuania Become One of Europe’s Most Exciting Fintech Hotspots?
Joe Wallen – Forbes
China’s rapid economic expansion across the globe has been well documented. From Chinese President Xi Jinping’s pledge this month to invest a further $60 billion in Africa to the construction of a previously unimaginable deepwater port in Gwadar, as part of the China-Pakistan Economic Corridor, not to mention the propping up beleaguered Latin American economies with tens of billion dollars’ worth of loans — analysts have gone as far as to label our current age as the Chinese Century.
bit.ly/2EYdcn0

Fintech100 sees UK climb to second place
Hannah Burley – Scotsman
The UK continues to produce fintechs competing on a global scale despite concerns over Brexit-related uncertainty, according to the latest edition of the Fintech100.
bit.ly/2qf0Mg6

Cryptocurrencies

As Bitcoin Turns Ten, Which European Cryptocurrencies Should You Be Aware Of?
Joe Wallen – Forbes
Next week marks the tenth anniversary of Satoshi Nakamoto releasing the inaugural Bitcoin whitepaper. With transactions worth $2 billion now carried out every single day in the cryptocurrency, Nakamoto’s Bitcoin: A Peer-to-Peer Electronic Cash System can be seen to have entirely revolutionized the global financial system.
bit.ly/2F1nD9p

Bitcoin’s White Paper: The Blueprint for a Payments Model T
David Schwartz – Coindesk
In 1991, my patent for a multi-level distributed computer network was granted. I was working on graphics rendering problems requiring significant amounts of CPU power and wanted to distribute computing-intensive tasks to a network of devices. The goal was to have a number of computers performing simple tasks to contribute to a single result. Creating this system, though, was a complicated task.
bit.ly/2Q3bWjx

In Silicon Valley, Engineers Are Leaving Big Tech Companies To Chase Blockchain Dreams
Muyao Shen – Forbes
While securing an engineer job at places like Facebook and Google is still the dream for many, more and more engineers are turning down the offers from the big names for what they deem a revolution happening in another world: the world of blockchain.
bit.ly/2z9kTQU

Cryptocurrency Exchange IronX Raises $22.3 million in Private Sale
Simon Golstein – Finance Magnates
IronX, the cryptocurrency exchange being launched by Cyprus-based multi-asset broker IronFX, has sold 67.6 million tokens in its private sale, according to an announcement disseminated via its Telegram group. In fiat terms, the sale took in approximately $22.3 million.
bit.ly/2DcP2De

Can AI Bank On Blockchain To Power Science & Medicine’s Future Progress?
Louis Columbus – Forbes
The last few decades have witnessed innovations in modern medicine, science and technology at a much faster rate than at any time before in history. A large portion of the credit goes to computers, for helping us solve problems more efficiently and therefore at a faster pace.
bit.ly/2qhWvss

Blockchain startup hires away Google’s messaging tech leader
Paresh Dave – Reuters
SAN FRANCISCO – Blockchain technology startup Ripple Labs Inc confirmed to Reuters on Friday that it hired Amir Sarhangi, who had been leading Google’s rollout of a new wireless messaging system, as vice president of products.
/reut.rs/2zbpdiI

The Problems With Freelancing And How Blockchain Can Help
David Petersson – Forbes
It is probably safe to say that freelancing is one of the pillars of modern society. Many on-demand services would not exist if was it not for freelancers. Freelancing and on-demand services allow micromanagement of time and resources, which lead to tremendous savings. They allow us to get the job done when we need it, and focus our efforts on accomplishing exactly that. For this reason, we can operate much more efficiently and achieve goals that seemed implausible before.
bit.ly/2yzow36

Bitcoin and a Month Few Would Have Expected
Bob Mason – Yahoo Finance
At times it may have been painful to watch, while at other times bewildering, but the vicious movements of more than $1,000 in the space of an hour are becoming sorely missed by traders and analysts the world over, as the lack of volatility spreads across the broader market, making the cryptomarket almost as stable as the Forex markets.
/yhoo.it/2OTz9rM

Bitcoin Exchange Bitstamp Acquired in Latest Cryptocurrency Deal
Jen Wieczner – Fortune
Bitstamp, a Luxembourg-based Bitcoin exchange, has been acquired, the company said Monday. The buyer is NXMH, a private equity and investment firm based in Brussels that also owns Korbit, a South Korean cryptocurrency exchange. The financial terms of the deal were not disclosed, but the purchase price was rumored to be around $400 million.
/for.tn/2Q3Kfqw

Bitcoin Regulation: China’s Arbitration Body Says Cryptocurrency Should Get Legal Protection
Ranjitha Shastry – IBT
The Shenzhen Court of International Arbitration in China recently ruled that bitcoin, despite not being given the status of a legal currency, should be legally protected by law as property. The ruling in an “equity transfer agreement” case was published as a case analysis on WeChat — a popular Chinese social media website — last week.
bit.ly/2PZDMNr

Bitcoin Prices Hold Steady After Sudden Canadian Exchange Shutdown
Billy Bambrough – Forbes
Bitcoin prices, along with the wider cryptocurrency market, have held steady following the sudden shut down of a relatively minor cryptocurrency exchange in Canada yesterday. MapleChange revealed via Twitter that a software “bug” had allowed all of the 913 bitcoin (worth some $6 million at current exchange rates) it was holding to be stolen.
bit.ly/2Q7bGjz

IBM and Maersk struggle to sign up partners for its blockchain supply chain product
The Block Crypto
A little over 10 months ago, IBM and Maersk partnered to launch TradeLens, a platform leveraging blockchain to digitize and track products across their supply chain lifecycle.
bit.ly/2Q3Isli

Crypto Miners Are New Pot of Gold Offered to U.S. Junk Lenders
Alastair Marsh and Sridhar Natarajan – Bloomberg
The company converting a disused aluminum smelter near the U.S.-Canada border into the world’s largest digital-currency mining center plans to tap the debt market to fund its ambitious project. And it’s willing to pay for the privilege.
/bloom.bg/2Q3yfWa

Politics

Tom Barrack Got Trump Right, Then Things Went Wrong
Caleb Melby – Bloomberg
The financier’s Colony Capital is struggling. His royal allies in the Middle East are boxed out. And his old friend Paul Manafort is behind bars.
/bloom.bg/2D8qKdP

Trump falsely says NYSE opened day after Sept. 11 attacks to justify holding rally after Pittsburgh shooting
Devan Cole, CNN
President Donald Trump falsely claimed Saturday that the New York Stock Exchange re-opened the day after the September 11, 2001, terrorist attacks in an effort to justify holding a rally on the same day that a mass shooting occurred at a synagogue in Pittsburgh.
/cnn.it/2Q2BhtO

Many U.S. firms in China eyeing relocation as trade war bites: survey
Sue-Lin Wong – Reuters
More than 70 percent of U.S. firms operating in southern China are considering delaying further investment there and moving some or all of their manufacturing to other countries as the trade war bites into profits, a business survey showed on Monday.
/reut.rs/2Q1u9h9

Financial industry bets big on McCaskill with control of Senate at stake
Bryan Lowry – McClatchyDC.com
Sen. Claire McCaskill, who has long fashioned herself as a consumer champion, has raised more money from the financial industry than any other candidate this election.
bit.ly/2Q2OAdP

Merkel to Quit as Party Chief as Her Chancellorship Wobbles
Arne Delfs – Bloomberg
German leader makes dramatic concession to her party critics; Power waning after leading Christian Democrats for 18 years
German Chancellor Angela Merkel will quit as head of her Christian Democratic party after almost two decades, a person familiar with the matter said, a dramatic sign of her waning authority that will raise questions about her staying power as chancellor.
/bloom.bg/2Q7btwN

Regulation

ISDA Issues New White Paper on Clearing Incentives, Systemic Risk and Margin Requirements
John D’Antona – Traders News
ISDA has issued a new white paper on clearing incentives, systemic risk and margin requirements.
/goo.gl/dtcHWJ

CFTC Commissioner Calls For “Open Attitude” In Fintech Regulation
Cameron Bishop – Legal Gambling and the Law
A Commissioner of the Commodity Futures Trading Commission (CFTC) spoke positively about the possible use of blockchain and stressed how his agency must respect its role in the financial markets at a meeting of international regulators on Thursday.
bit.ly/2PYbbrD

FX trading ‘Cartel’ acquitted of benchmark rigging in the US; Traders from JP Morgan, Barclays and Citi allegedly used chatrooms to rig benchmark exchange rates between 2007 and 2013.
Hayley McDowell – The Trade
Three former London-based FX traders have been found not guilty of rigging benchmark exchange rates by the Manhattan federal court in the US.
bit.ly/2qd4hUq

ESAs propose new amendments to technical standards on the mapping of ECAIs
ESMA
The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) has launched a public consultation to amend the Implementing Regulations on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk to reflect the outcomes of a monitoring exercise on the adequacy of existing mappings, namely changes to the Credit Quality Steps (CQS) allocation for two ECAIs and the introduction of new credit rating scales for ten ECAIs.
bit.ly/2qgKuTW

Investing and Trading

No hiding place for investors in markets wobble; Almost every major asset class has fallen into negative territory for the year
Robin Wigglesworth, Steve Johnson and Katie Martin – FT
Global markets have suffered plenty of post-crisis wobbles, but the latest one is unique: for the first time in a very long while, almost every major asset class has fallen into negative territory for the year.
/on.ft.com/2Q2BwoI

Financial conditions tighten as markets tumble; Goldman index suggests dimming outlook for US economy
Joe Rennison in New York – FT
The market turmoil of the past month threatens to put the brakes on US economic growth, according to a closely watched measure of financial conditions.
/on.ft.com/2QaqUUA

The Wall Street Analyst Who Called a Stock Market Rout Sees Another Drop Coming
Mark DeCambre, MarketWatch
There is more pain in the pain trade ahead. That is according to Michael Wilson, Morgan Stanley’s chief U.S. equity strategist, who said, during an interview on CNBC last week, that a then-current market rebound belied a market that is badly damaged and ready to sink further.
bit.ly/2Q8DdRG

This ETF’s next move could determine if we suffer a ‘brutal dislocation’ in markets
Shawn Langlois – MarketWatch
Remember when the bull market had an air of invincibility about it? Almost as if investors were getting tired from all that winning.
/on.mktw.net/2Q2P0Rr

What is Brent crude?; The world’s most widely used oil benchmark faces challenges from rivals
The Economist
BRENT CRUDE is the benchmark against which the majority of the 100m barrels of crude oil traded every day are priced. At the start of October the price of Brent crude rose above $85 a barrel, its highest level in four years. But the black stuff that makes up the Brent benchmark comprises a tiny fraction of the world’s extracted oil. Why is it used to determine the value of 60% of oil on international markets?
/econ.st/2Q1u0dz

Commodity trader Noble Group warns of more losses in third quarter
David Sheppard and Neil Hume – FT
Troubled commodity trader Noble Group, which almost blew up in an accounting and debt scandal before pushing through a dramatic financial restructuring in August, will report another loss in the third quarter.
/on.ft.com/2qfDirl

Institutions

Active funds suffer worst quarter for seven years; Much-touted return of stockpickers during period of market upheaval has yet to materialise
Owen Walker – FT
Investors fled from actively managed funds at the highest rate for seven years over the summer, dashing stockpickers’ hopes of staging a comeback in more volatile trading conditions.
/on.ft.com/2qfoKHZ

Market downturn slams stockpicking hedge funds; ‘Long-short’ investors on track for biggest monthly losses since the financial crisis
Robin Wigglesworth, Lindsay Fortado and Joe Rennison in New York – FT
The October market tumble has pummeled stockpicking hedge funds that have rushed into high-flying technology stocks this year, inflicting some of the biggest monthly losses since the global financial crisis.
/on.ft.com/2Q4v4h4

HSBC quarterly profits beat estimates as bank cuts costs; Upbeat results spark sharpest rally in lender’s shares in more than a year
David Crow in London and Alice Woodhouse in Hong Kong – FT
HSBC reported a jump in quarterly profits thanks to a tighter grip on costs, fuelling hopes that its new chief executive John Flint can return the bank to growth without resorting to runaway spending.
/on.ft.com/2Q34vc1

Regions

China stock woes deepen as government efforts fail; Benchmark index loses 3% on Monday, putting it down 10% in October and 24% in 2018
Gabriel Wildau and Yizhen Jia in Shanghai – FT
China’s stock market fell sharply on Monday in a further sign that government efforts to stem its losses have failed to persuade investors worried about a slowing economy and the impact of US tariffs.
/on.ft.com/2Q1t5tF

Seoul to pour $440m into propping up stock market; Move echoes other Asia efforts and comes as benchmark index faces worst month in a decade
Bryan Harris in Seoul – FT
South Korea has set up a multimillion dollar fund to prop up local stocks, which have slumped in recent weeks amid concerns about regional geopolitical tensions and the outlook for the global economy.
/on.ft.com/2Q3GxNJ

Norwegian fund delays lobbying for gender balance; World’s largest sovereign wealth fund fears imposing Nordic values on listed groups
Richard Milne in Oslo – FT
The world’s largest sovereign wealth fund has delayed plans to lobby for gender balance on listed companies’ boards amid fears that it could be seen to be imposing Nordic values.
/on.ft.com/2PZDmql

Chinese banks start scanning borrowers’ facial movements; Ping An technology designed to help vet potentially fraudulent borrowers
Oliver Ralph, Don Weinland and Martin Arnold – FT
Chinese banks have started using micro-expression technology in an effort to spot the early signs of fraud in customers’ facial movements.
/on.ft.com/2Q1z3eb

The Get-Rich-Quick Scheme That Almost Killed a German Soccer Team; An electrician’s odd plot to make $607,933.50.
Thomas Rogers – Bloomberg
The bombs were ready to detonate when the black-and-yellow bus pulled into L’Arrivée Hotel & Spa, on the outskirts of Dortmund, Germany, on April 11, 2017. The driver, Christian Schulz, had arrived to take the players of Borussia Dortmund, one of the country’s best soccer teams, to their Champions League tournament quarterfinal in nearby Signal Iduna Park. Dortmund was set to play AS Monaco and hoped to move a step closer to Europe’s most prestigious club trophy.
/bloom.bg/2qibAdk

Jim Rogers-Backed China Online Brokerage Is Said to Plan IPO
Vinicy Chan and Crystal Tse – Bloomberg
Tiger Brokers appoints banks to arrange U.S. stock offering; Company aims to sell shares as soon as first quarter of 2019
Tiger Brokers, the Chinese online brokerage backed by veteran investor Jim Rogers, is planning a U.S. initial public offering that could raise about $200 million, people with knowledge of the matter said.
/bloom.bg/2qfojgP

Pot Firm Backed by Russia Banking Veteran to Make Trading Debut
Craig Giammona – Bloomberg
U.S. pot companies are pushing north of the border in search of capital. Curaleaf Inc., a Massachusetts-based company backed by Moscow banking veteran Boris Jordan with roughly 30 pot stores open in 12 states, is raising $350 million through a private placement that values the company at about $4 billion. The stock is set to start trading Monday in Canada through a reverse takeover on the CSE and will be one of the most valuable U.S. pot companies.
/bloom.bg/2qgoLvt

Central Bankers’ Swiss Temple Gets Shakeup in Carstens Regime
Alessandro Speciale and Catherine Bosley – Bloomberg
General manager has sought changes since joining in late 2017; A 2016 report said research slanted to support ‘house view’
Agustin Carstens is changing the way the Bank for International Settlements doles out advice to the world’s monetary chiefs.
/bloom.bg/2qfDdnx

Brazil puts its faith in Bolsonaro’s free-market conversion; Markets have rallied on incoming president’s promise of liberal economic reforms
Joe Leahy in São Paulo and Andres Schipani in Rio de Janeiro – FT
In an interview on the eve of his historic victory in Brazil`s presidential elections on Sunday, far-right politician Jair Bolsonaro delivered a shock to his supporters in the financial markets.
/on.ft.com/2qgB1vT

Brexit

Australia’s banks begin relocating functions from London; CBA chooses Amsterdam for post-Brexit EU hub while others eye Frankfurt and Dublin
Jamie Smyth in Sydney – FT
Australia’s top banks are stepping up their preparations for Brexit to ensure they can continue to provide services across the EU, amid growing industry fears the UK could exit the bloc without a deal.
/on.ft.com/2Q4Piab

Billionaire backs Amsterdam to take financial crown; Private equity boss Ressler says Dutch city will steal London’s prized position
Javier Espinoza, Private Equity Correspondent – FT
Amsterdam could take over London’s crown as a key financial centre as the UK prepares to leave the EU, according to an American billionaire and co-founder of two of the largest private equity groups in the world.
/on.ft.com/2Q2XPKK

Brexit: The next big 5 things to watch
Tim Haughton and Anand Menon – The Washington Post
The divorce negotiations may go to the wire.
The negotiations over the British withdrawal from the European Union were supposed to be over by now. But the October European summit came and went without a deal. And a much-hyped challenge to Prime Minister Theresa May’s leadership fizzled out Wednesday, in part thanks to the reaction to the gruesome off-the-record language from critics in her party.
/wapo.st/2ER9WJU

Miscellaneous

Robert Steel Gives Wall Street a Cole Porter Kick at Gala
Amanda L Gordon – Bloomberg
Perella Weinberg CEO receives Lincoln Center service award; Goldman’s Lane, Warburg’s Kaye in Alice Tully Hall audience
Robert Steel, the chief executive officer of Perella Weinberg Partners, got quite the love note from Lincoln Center.
/bloom.bg/2PY0p4O

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