First Read

Derivatives luminary Donald Wilson at centre of courtroom battle; Famous derivatives trader has professorial air as he testifies in New York courtroom
by: Gregory Meyer in New York – FT
An ice storm, an email suggesting regime change and the mechanics of thinly traded futures markets have emerged as central points of contention in the market manipulation trial of one of the world’s biggest traders in financial derivatives.
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***** Why would you take a sizeable position in an illiquid market? Because you were getting a big edge. And if the other side was mis-pricing the instrument, then even better.

***** I love this sentence:

The CFTC argues that DRW never intended for the bids to attract a seller. “It’s like they’re yelling into an empty trading pit,” said Daniel Ullman, a CFTC attorney.

***** And how are prices supposed to be established if there are no bids or offers? Therein lies the rub. But how much did complaints about the extra margin MF Global had to put up, when it was already capital challenged, have to do with the case?

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A Big New Investor in Stock Markets: The State; The Bank of Japan and Chinese state-owned funds are now big shareholders in roughly a third of listed firms in their respective markets
By GREGOR STUART HUNTER and KOSAKU NARIOKA – WSJ
Two of the world’s most important stock markets have a big new investor—the state.
/goo.gl/0r5cku

***** Now there is a plunge protection team.

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SGX Titan

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NFA Board Update—November 2016 Meeting
NFA
NFA Vice-Chairman Maureen Downs and President Dan Roth discuss highlights and other notable information from NFA’s November Board meeting, including succession, Board elections, and additional protections for retail forex customers. The video is intended to keep NFA Members and the investing public apprised of the important topics that NFA’s Board discusses.
/goo.gl/h4s8lv

**JK: One of the last movies you’ll see starring Dan Roth as NFA CEO and president, (a John Lothian Productions video).

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PDQ’s Don Ross: Why Speed Kills Equities Markets And How Auctions Can Save Them
JLN
The future of stock markets is becoming less about speed and more about trading securities in different environments, particularly auctions. Several exchanges have introduced new auction models aimed at slowing the market down in different ways for different participants, including PDQ Enterprises, which is rolling out its new on-demand auction process for stocks. CODA Markets (Centralized On-Demand Auctions), the wholly-owned broker-dealer entity which was previously named PDQ ATS, will launch the the block trading facility called CODA Block in the next several weeks. John Lothian News Editor-in-Chief Jim Kharouf spoke with Don Ross, who took over as CEO of PDQ Enterprises.
jlne.ws/2gYwZVY

**JK: This long Q&A is worth a read, with one of the rising CEOs in the equities space, Don Ross.

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The New Bond: KCG’s Dan Coleman Looks To Plug Exchange Model Into US Treasury Market, and How It Might Just Succeed
Jim Kharouf – JLN
There are few markets, if any, that garner attention like the US Treasury market. And there are few markets as ripe for disruption as the US Treasury market. Earlier this month, at the WFE Annual Meeting in Cartagena, Colombia, KCG’s CEO Daniel Coleman outlined his vision for a new US Treasury market, which would transform it into a structure similar to a traditional equities market with bank and non-bank market makers, transparent trading platforms and efficient settlement or clearing services.
/goo.gl/s8foac

**In case you missed it on Friday.

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Cloud computing titans battle for AI supremacy; Amazon boosts artificial intelligence focus as it challenges Microsoft and Google
by: Leslie Hook in New York – FT
A new battle is breaking out among the titans of cloud computing, as competition in the fast-growing sector shifts to a fresh arena: artificial intelligence.
/goo.gl/3F1dYO

***** How do you program an AI computer program in the “fact-free” era?

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Bridging the Weeks – November 21 to December 2 and December 5, 2016 (Capital for Swap Dealers; New Disciplinary Proceedings Procedures; Leverage Ratio)
By Gary DeWaal – Katten Muchin Rosenman LLP
Last week, the Commodity Futures Trading Commission re-proposed minimum capital requirements for Swap Dealers, while the European Commission proposed capital rules for EU-based banks that do not unfairly penalize banking organizations for carrying cleared derivatives positions for customers – as does the contrary approach previously taken by the Basel Committee on Banking Supervision. Additionally, the Securities and Exchange Commission weighed-in at a federal appellate court in New York in favor of a legal position taken by institutional investors against securities exchanges in a lawsuit related to alleged advantages afforded high-frequency traders. As a result, the following matters are covered in this week’s edition of Bridging the Weeks:
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Top Three
Continuing interest in the DRW case made Bloomberg’s DRW Defends CFTC Claim It ‘Banged the Close, Day After Day’ our number one story by a long shot on Friday. Second was another Bloomberg story, Two Sigma Unleashes 730,000 Data Scientists in Algo Contest. And JLN’s own The New Bond: KCG’s Dan Coleman Looks To Plug Exchange Model Into US Treasury Market, and How It Might Just Succeed was third.

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Lead Stories

Deutsche Bank cuts ties with 3,400 clients in trading business
Arno Schuetze – Reuters
Deutsche Bank’s Global Markets division will cut ties with about 3,400 clients in its debt and equities sales activities, the bank said on Friday. Deutsche Bank will immediately cease debt sales services to some financial institutions and hedge funds as well as equity sales activities, the execution of equities trading orders and equity structuring activities for some clients, a spokesman said, citing an internal memo.
/goo.gl/O6wKqN

A Look Inside Wall Street’s Innovation Labs
By Julie Verhage – Bloomberg
Goldman Sachs Group Inc. CEO Lloyd Blankfein once quipped that his bank is a “technology firm.” With the launch of Marcus, Goldman’s online retail lender, the sell-side stalwart is one step closer to Silicon Valley. It’s not alone. Across Wall Street, banks are pushing into technology, either by directly investing in startups such as internet lender OnDeck Capital, robo-advisor SigFig, and online financial planner LearnVest, or by boosting their in-house technology expertise. Here’s a look at what the new generation of Wall Street’s “innovation labs” looks like.
/goo.gl/KRPuEr

OCC Names New CFO, Treasurer, and Chief Compliance Officer
OCC
OCC, the world’s largest equity derivatives clearing organization, today announced three additions to its senior management team. Amy Shelly, a former Chief Financial Officer with Optiver U.S. LLC, a global participant and market maker on major U.S. derivatives exchanges, who has over 20 years of financial services management experience, has been named Senior Vice President and Chief Financial Officer. She replaces Kim McGarry, and will start in her new role on December 5th. Shelly will be responsible for finance, accounting, strategic sourcing and facilities, as well as a new treasury function. James Pribel, formerly Executive Director and Treasurer at CME Group, has been named First Vice President, Treasury, which is a new position in the organization. Pribel’s appointment is effective immediately.
/goo.gl/7tAu70

Deutsche Bank to pay $60 million to settle U.S. gold price-fixing case
Jonathan Stempel – Reuters
Deutsche Bank AG has agreed to pay $60 million to settle private U.S. antitrust litigation by traders and other investors who accused the German bank of conspiring to manipulate gold prices at their expense. The preliminary settlement was filed on Friday with the U.S. District Court in Manhattan, and requires a judge’s approval. Deutsche Bank denied wrongdoing. The bank in October agreed to pay $38 million to settle similar litigation over alleged silver price manipulation.
/goo.gl/oI7cVG

Fed’s Dudley Says Financial Regulation Job Remains Unfinished
Bloomberg
Federal Reserve Bank of New York President William Dudley said U.S. regulators, despite having made the financial system safer and less prone to panics, still had not eliminated the threat posed by institutions considered “too big to fail.” “This is work that we absolutely must complete,” he said in prepared remarks he’s scheduled to deliver Saturday at a conference on financial regulation in New York. “Without a well-functioning resolution process, the consequences of such a failure could still be catastrophic.”
/goo.gl/5ze5Ov

Sizing Up the Government’s New Fintech Plan
Peter Rudegeair and Telis Demos – WSJ
A proposal from a top U.S. banking regulator to allow financial-technology companies to apply for bank charters drew a range of reactions on Friday from industry executives, policy makers, attorneys and advocacy groups. Here are a few of the early takes on the proposal.
/goo.gl/JZ3CBS

Don’t forget the Hong Kong end of the Shenzhen stock link; Inflows from the mainland could reach $29bn a year or more
Jennifer Hughes in Hong Kong – FT
Expected long-term inflows via the Shenzhen-Hong Kong Stock Connect, launched on Monday, are no exception. But in the short term, the larger profits may come not from mainland investments but from the Hong Kong end of the system.
/goo.gl/3Zh7Zq

Modi Bucks World Bond Rout as Cash Move Cuts India Inc. Cost
Divya Patil – Bloomberg India’s Prime Minister Narendra Modi has pleaded for patience after his currency recall led to long and angry lines at banks. One group hasn’t had to wait long for the benefits.
/goo.gl/DNnox3

Brexit

The Least Painful Path to Brexit
Bloomberg Editorial Board
Britain will begin talking to the European Union about its impending divorce when Prime Minister Theresa May formally starts the process — by the end of next March, she says. And while the substance of those negotiations is unclear, their length is not: two years, which is not nearly enough time.
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City bankers’ skills will serve them well after Brexit; The London financier has his or hera web of social connections that is hard to replicate
by: Daniel Davies – FT
The City of London is trying to put on a brave face. Dublin is too small. Nobody wants to live in Frankfurt. Paris probably cannot handle the telecoms. Amsterdam — well, let’s not think too much about Amsterdam.
/goo.gl/si3gg0

Exchanges, OTC and Clearing

Options Clearing Corp shakes up senior management
Tom Polansek – Reuters
The primary clearinghouse for U.S. options trades named new finance and compliance chiefs on Friday in the latest C-suite shake-up aimed at improving oversight. The Options Clearing Corp, known as OCC, also said it had hired a former CME Group Inc (CME.O) executive to fill a newly created treasurer’s position. The changes are part of an overhaul in leadership as OCC works to bolster the way it manages finances and risk after its regulator, the U.S. Securities and Exchange Commission, raised concerns in recent years.
/goo.gl/c4uHsb

India’s National Stock Exchange chief Chitra Ramkrishna quits; Resignation comes as bourse prepares for public flotation
by: Philip Stafford in London and Simon Mundy in Mumbai – FT
The head of the National Stock Exchange of India has resigned weeks before the country’s largest exchange was due to file details about its long-anticipated public listing.
/goo.gl/u5HLm9

Chitra Ramkrishna quits as NSE chief; Board sets up selection committee; Ravichandran appointed interim CEO
Ashley Coutinho – Business Standard
Chitra Ramkrishna, managing director (MD) and chief executive of the National Stock Exchange of India (NSE) has stepped down from her post, even as the country’s largest bourse is set to go public.
/goo.gl/onkVtK

Deutsche Boerse chief seeks to reassure Frankfurt on merger plan
Andreas Kroner – Reuters
Deutsche Boerse’s chief executive has sought to reassure Frankfurt over its merger with London Stock Exchange Group, saying the German regulator will retain power over the exchange when it becomes part of a larger London-based group.
/goo.gl/Kw61KV

HKEX CEO Sees Potential for IPO, Bond Connects With Mainland
Benjamin Robertson and Stephen Engle – Bloomberg
Hong Kong’s second stock-trading connect with the mainland may be followed by links for initial public offerings, bonds and commodities, said Charles Li, chief executive officer of the city’s bourse.
/goo.gl/EoIYAc

Global uncertainty, weak yuan ensure muted start for Shenzhen-Hong Kong stock connect
Enoch Yiu – South China Morning Post
Overseas market uncertainties, overpriced stocks and a weak yuan are among the reasons for the anticlimactic debut of the Shenzhen-Hong Kong stock connect on Monday, according to analysts. International investors spent just 2.67 billion yuan buying stocks in Shenzhen via the northbound trading enabled by the new cross-border scheme, equivalent to 21 per cent of the daily quota. That’s far below the 13 billion yuan invested at the debut of the Shanghai-Hong Kong stock connect in November 2014, when the daily quota was used up by 2pm.
/goo.gl/twe1QZ

CBOE Holdings Reports November 2016 Trading Volume
CBOE
CBOE Holdings, Inc. (NASDAQ: CBOE) today reported November monthly trading volume and average revenue per contract (RPC) data on its website under the Quotes & Data section. For the month, S&P 500 Index (SPX) and CBOE Volatility Index (VIX Index) options at CBOE set record volume in non-U.S. trading hours with total combined volume of 296,472 contracts, topping the previous record of 144,983 contracts from December 2015.
/goo.gl/R0BNo8

Euronext announces volumes for November 2016
Euronext
Euronext, the leading pan-European exchange in the Eurozone, today announced trading volumes for November 2016.
/goo.gl/m9Gfy4

VSTOXX/VIX volatility spread behavior during recent volatility events
by Mark Shore published in the VSTOXX Outlook newsletter – Eurex
In past articles I’ve discussed the various behaviors of the VSTOXX/VIX spread. This article follows my last article “Utilizing a European volatility index for Pan-European volatility” examining VSTOXX behavior in recent volatility events relative to various European equity indexes.
/goo.gl/iykVf8

Mini Futures on VSTOXX: Extension of Market-Making scheme
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG decided effective 1 January 2017 to extend the Designated Market-Making scheme for Mini Futures on VSTOXX (FVS).
/goo.gl/uL6FMu

HKEX Celebrates Launch of Shenzhen-Hong Kong Stock Connect
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) hosted a ceremony at its Exhibition Hall this morning to mark today’s successful launch of Shenzhen-Hong Kong Stock Connect (Shenzhen Connect).
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ASX Monthly Activity Report – November 2016
ASX
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SGX strengthens its Fixed Income businesses with a new lead
SGC
Singapore Exchange (SGX) is pleased to appoint Michael Luk as the new Head of Fixed Income Origination and Sales, effective 1 January 2017.
/goo.gl/ZDI5KX

Eurex to scrap gold and silver contracts in April
Futures & Options World – Let’s Talk Derivatives
jlne.ws/2gtieaa

Politics

Trump picks Wall Street leaders for advisory council
Stephen Foley – Financial Times
Donald Trump has named Stephen Schwarzman, chief executive of Blackstone, as chairman of a new council of strategic advisers, capping a week that has seen Wall Street veterans installed at the heart of the incoming US administration.
/goo.gl/bfCwBZ

Tweeter-in-chief rewrites the media’s rule book
Barney Jopson and Anna Nicolaou – Financial Times
Politicians should campaign in poetry and govern in prose, goes the adage. But Donald Trump has changed little in his shift from campaigner to president-in-waiting. He remains more polemic than poetic and is holding tight to his favourite tool for spreading bombast: Twitter. This week, it was as if the tweeter-in-chief was back on the campaign trail, the master communicator with smartphone in hand, setting the news agenda for a frustrated press forced into soul-searching over how to cover him.
/goo.gl/54hDCT

Steven Mnuchin, a hardball banker set for the Treasury
Ben McLannahan – Financial Times
It would be a pity, for Steven Mnuchin, if his nomination for Treasury secretary were to come unstuck over 27 cents. Yet that is the sum for which OneWest, the bank he chaired, tried to foreclose on the house of Ossie Lofton two years ago. Ms Lofton, then 90, was sent a bill for $423.30: an insurance premium on credit secured against the equity in her home in Lakeland, Florida. She sent back a cheque for $423. OneWest asked for the 30 cents. She wrote another cheque, mistakenly making it out for 3 cents. Then the bank served a foreclosure notice.
/is.gd/5qg4Z7

Investing and Trading

Global Dominance of U.S. Stocks Is Boosted by Postelection Rally; U.S. equities’ market capitalization of nearly $25.2 trillion makes up 40.01% of global stocks’ value
By BEN EISEN – WSJ
U.S. stocks have increased their share of the global equities marketplace, reflecting a dual boost from price gains and a jump in the value of their primary currency.
/goo.gl/kEc2hA

Just three stocks are responsible for almost half of the Dow’s huge one-month rally
Alex Rosenberg ,CNBC
The Dow Jones Industrial average (Dow Jones Global Indexes: .DJI) has gained about 1,200 points over the past month. And interestingly, nearly half of that advance has been produced by just three stocks. Leading the field by a wide margin is Goldman Sachs (GS): That stock’s 26.5 percent rally over the past month has added about 320 points to the Dow. In second place is UnitedHealth (UNH), which is up about 15.7 percent, and has consequently tacked about 150 points onto the 30-stock index. Finally, Caterpillar (CAT)’s 17.3 percent run had added about 95 points, just ahead of JPMorgan (JPM)’s 90-odd point contribution.
/goo.gl/6l740B

Bitcoin is ‘Better Than Gold,’ WInklevoss Twins Say
Bitcoinist
The Winklevoss twins say Bitcoin is “better than gold” as they continue to press for regulatory approval of their Exchange Traded Fund COIN.
/goo.gl/Va1ENP

ECB treads carefully to avoid taper tantrum; Strong economic case to slow asset purchases is undermined by political uncertainty
by: Claire Jones in Frankfurt – FT
An economic recovery in Europe was supposed to make life easier for the European Central Bank. Instead, it has given officials in Frankfurt a problem as they prepare to decide whether to scale back the bank’s monthly bond purchases under its landmark quantitative easing programme.
/goo.gl/D2mKMX

Fears rise over future supply of gold; Miners cut exploration funding after bullion’s rocky recovery
by: Henry Sanderson – FT
“For the first time in history, gold supply into the future is under enormous pressure.” The warning from Mark Bristow, chief executive of London-listed Randgold, encapsulates the gold mining sector’s woes.
/goo.gl/sWDyXN

UniCredit set to agree deal with Amundi to ease investor worries; Italy’s largest bank hopes deal will settle market jitters over political instability
by: Rachel Sanderson in Milan – FT
UniCredit is set to agree the sale of asset manager Pioneer to France’s Amundi for more than EUR3bn, boosting its capital as Italy’s largest bank moves to differentiate itself from distressed Tuscan rival Monte dei Paschi di Siena.
/goo.gl/G1Rfys

Why active fund managers should cheer the rise of ETFs; Surge in passive investing fanned by these funds is a boon to traditional investors
by: Miles Johnson – FT
The supposed death of the stock picker has become one of the dominant narratives of post-crisis finance.
/goo.gl/vT255W

Trump advisers aim to privatize oil-rich Indian reservations
St. Louis Post-Dispatch
Native American reservations cover just 2 percent of the United States, but they may contain about a fifth of the nation’s oil and gas, along with vast coal reserves. Now, a group of advisers to President-elect Donald Trump on Native American issues wants to free those resources from what they call a suffocating federal bureaucracy that holds title to 56 million acres of tribal lands, two chairmen of the coalition told Reuters in exclusive interviews.
/goo.gl/Bt7l7z

Institutions

Raising AUM is universal for any size CTA
Dana M. Comolli – www.dmaxx.com
In a 2014 study by Cogent, (and updated by Johnson & Co in 2016), it was found that large investors, from where a significant amount of money is entering the managed futures industry, are consistent in their needs. Both pension and non-profit funds see integrity and transparency as a first hurdle. Of course, investment performance also is key, along with organization stability. Interestingly, fees and fee structure ranked seventh, with risk management practices not far behind.
jlne.ws/2gYrg2h

How Big Banks Are Putting Rain Forests in Peril
Hiroko Tabuchidec – NY Times
In early 2015, scientists monitoring satellite images at Global Forest Watch raised the alarm about the destruction of rain forests in Indonesia. Environmental groups raced to the scene in West Kalimantan province, on the island of Borneo, to find a charred wasteland: smoldering fires, orangutans driven from their nests, and signs of an extensive release of carbon dioxide into the atmosphere.
/goo.gl/OnyQge

Boring Wall Street Analyst Notes Are Out. Bold and Funny Are In.
Lananh Nguyen – Bloomberg
Call it clickbait for Wall Street. But instead of 17 Cat Vines That Will Slay You Every Time, Bank of America Merrill Lynch is putting its hard-won reputation as the world’s top-ranked researcher on the line as it seeks to redefine how to sell ideas to the financial elite.
/goo.gl/il6jMs

Goldman junior banker collapses in Frankfurt while working late – sources
Reuters
A junior banker at Goldman Sachs’ Frankfurt office collapsed while working into the early hours, prompting management to ask staff to look after their health more seriously, people who attended the meeting said.
/goo.gl/RfmjhY

Rescue for Monte Paschi in doubt after Italian referendum defeat
by: Rachel Sanderson – FT
A last gasp rescue for the world’s oldest surviving bank Monte dei Paschi di Siena has been thrown into doubt after reformist prime minister Matteo Renzi decisively lost a referendum on constitutional reform on Sunday.
/goo.gl/PD6YMm

Fintech

A 26-year old Bitcoin entrepreneur was handed prison time, and the experience only confirmed his belief in the cryptocurrency
Business Insider
The rise of 26-year old Charlie Shrem was swift. So was his fall. The self-professed computer geek turned divisive digital currency entrepreneur won notoriety as the founder of BitInstant. The firm took off, attracting investors like the Winklevoss twins, and helping popularize bitcoin.
/goo.gl/Va1ENP

Google DeepMind Makes AI Training Platform Publicly Available
by Jeremy Kahn – Bloomberg
Company is increasingly embracing open-source initiatives; Move comes after rival Musk’s OpenAI made its robot gym public
Alphabet Inc.’s artificial intelligence division Google DeepMind is making the maze-like game platform it uses for many of its experiments available to other researchers and the general public.
/goo.gl/HEAZBA

How UBS built its ‘robo advisor’ SmartWealth like a fintech startup
Business Insider
How can big banks keep up with nimble fintech startups trying to eat their lunch? One strategy is to act like them — if you can’t beat ’em, join ’em. “What we tried to do with SmartWealth is to be like a fintech, to go at that pace but within a large organisation,” UBS’ Shane Williams told Business Insider during a recent interview. “It’s trying to get the best of both worlds.”
/goo.gl/rqxW2I

Regulation

Chief Economist and Division of Economic and Risk Analysis Director Mark Flannery to Leave SEC
SEC
The Securities and Exchange Commission today announced that Chief Economist and Division of Economic and Risk Analysis (DERA) Director Mark J. Flannery will leave the agency by the end of the month. He will return to his position as a finance professor at the University of Florida’s Graduate School of Business Administration.
/goo.gl/tsV2or

Fed official stands by Wall Street reforms, says must complete work
Reuters
The United States “absolutely must” complete unfinished work ending the too-big-to-fail bank problem that helped plunge the global economy into recession eight years ago, an influential Federal Reserve policymaker said on Saturday.
/goo.gl/f7jyPx

United Settles Charges in Case of Flight Route to Benefit Public Official
SEC
Washington D.C., Dec. 2, 2016 — The Securities and Exchange Commission today announced that the parent company of United Airlines has agreed to pay $2.4 million to settle charges in a case where shareholders wound up footing the bill so a public official could get more convenient flights.
/goo.gl/ZtXcDI

‘Big Short’ adviser loses appeal in SEC case
Jonathan Stempel – Reuters
An investment adviser featured in best-seller “The Big Short” failed to persuade a federal appeals court to shut down a U.S. Securities and Exchange Commission fraud case on the ground that the agency sued him in the wrong forum. The 2nd U.S. Circuit Court of Appeals in Manhattan on Friday said federal judges lacked jurisdiction to decide whether the SEC deprived Wing Chau and his firm Harding Advisory LLC of equal protection by pursuing an in-house administrative proceeding instead of suing in federal court.
/goo.gl/nnr59A

China securities regulator chairman condemns “barbaric” company buy-outs by asset managers
Reuters
The chairman of China’s securities regulator condemned “barbaric” leveraged company buy-outs by some asset managers using illegal funds, according to a statement posted on the China Securities Regulatory Commission (CSRC) website on Saturday.
/goo.gl/nkBQjh

Speech By Verena Ross, ESMA Executive Director At The 2016 Global Capital Markets Conference
ESMA
The European Securities and Markets Authority’s (ESMA) Executive Director, Verena Ross, today spoke at the ICI Global’s2016 Global Capital Markets Conference giving a broad ranging view of how ESMA’s work contributes to strengthening Europe’s capital markets.
/goo.gl/2O4H40

China Regulator Said to Submit Plan for More Regional Exchanges
Bloomberg News
Expensive Or Just Cumbersome? Why UPI Has Had A Slow Start
(Bloomberg) — China’s securities regulator plans to allow more regional equity exchanges designed for small businesses, as the government steps up financing support to the segment of the economy most hit by slowing growth, people with knowledge of the matter said.
/goo.gl/vXKjsx

Maharashtra task force to probe NSEL scam
Times of India
MUMBAI: The Maharashtra government has decided to form a task force to investigate the Rs 13000 crore National Spot Exchange Limited (NSEL) scam.
/goo.gl/JWLb4g

Regions

Euro Climbs From 20-Month Low as Italy ‘No’ Vote Reaction Fades
by Chiara Albanese and Anooja Debnath – Bloomberg
Currency erases losses, strengthens versus most major peers; Italian premier says he will offer resignation on Monday
The euro rebounded from its lowest level since March 2015 and a decline in Italy’s bonds was limited as the reaction to Prime Minister Matteo Renzi’s loss in the nation’s constitutional referendum proved relatively short-lived.
/goo.gl/rdsabv

Drought Leaves Brazil’s Southeastern Coffee Farmers Parched; Farmers dig up fatigued trees and substitute other crops for coffee in key growing state of Espirito Santo; recent rainfall comes too late for this season
By JEFFREY T. LEWIS and KATHERINE DUNN – WSJ
Even as the rains begin to fall, the drought that forced Brazilian farmers like Carlos Babilon to dig up their coffee trees is set to continue to affect prices in the coffee market.
/goo.gl/ifyaQh

Paris: can the City of Love woo the world of finance from London?
Hugo Cox – Financial Times
What a difference a (possible) Brexit makes. Four years ago France’s new president, François Hollande, taking aim at the wealthy, had bankers squarely in his sights. “My true adversary is the world of finance,” he had said during the campaign, touting a Franco-German pact to attack the “dominance of finance” and tilt Europe back towards traditional industry. In office, he launched a 75 per cent supertax on earnings above EUR1m and hiked France’s wealth tax, the annual levy on valuable assets.
/goo.gl/G7vKfI

How India’s currency presses are printing notes 24×7
Business Standard
The currency presses are working overtime to produce an year’s output in just 5 months.
Strip searches, overlapping Central Industrial Security Force teams manning closed-circuit television cameras and stiff integrity checks for employees mark the world’s largest operations at India’s four currency presses. No official, irrespective of rank, is allowed to enter — without a body search — the compounds at Mysuru, Salboni, Dewas and Nashik where the government is printing suddenly scarce currency notes. “Even pieces of paper have to be deposited with the security staff.
/goo.gl/GzHk8e

Erdogan Says Turkey Faces ‘Economic Sabotage’ as Lira Plunges
Bloomberg
Turkish President Recep Tayyip Erdogan on Saturday said his political enemies are trying to sabotage the economy by speculating on the stock market, foreign exchange rate and interest rates after failing to overthrow his administration in July. The lira plunged to record lows over the past week even as Erdogan urged Turks to convert their foreign currency savings into liras and gold while vowing to keep up his fight against high interest rates.
/goo.gl/OCheae

Borsa Istanbul Converts Its Cash Assets To Turkish Lira
Mondovisione
In support of the call by H.E. President Recep Tayyip Erdogan of today, Borsa Istanbul decided to convert all its cash assets to Turkish Lira and keep such assets in accounts denominated in Turkish Lira as of December 2, 2016.
/goo.gl/tg8DH9

Black Money Estimate Shot as India Said to Claim 82% of Cash
by Siddhartha Singh – Bloomberg
About 12.6 trillion rupees of 15.3 trillion deposited in banks; Government estimated 4-5 trillion rupees would be unclaimed
Indians have validated 82 percent of bank notes rendered worthless by Prime Minister Narendra Modi’s surprise move last month, according to people with knowledge of the matter, undermining the government’s estimate of unaccounted wealth in the economy.
/goo.gl/o0axon

Mexicans Fear Trump Will Make Good on His Money Transfer Block; “I would risk stuffing money in hidden places.”
by Nacha Cattan and Isabella Cota – Bloomberg
Sporting a chunky gold Jesus medallion around his neck and an earring that spells out his name in diamond studs, José discusses the particulars of his shipping business with a reporter during a November meeting in a Brooklyn parking lot. Sitting in his Lincoln Navigator, with his window rolled down, José—who asks that his last name not be printed—says he charges $350 per piece to transport suitcases on flights from New York to Mexican states such as Puebla and Tlaxcala. That’s steep, but for some of the 11.7 million Mexicans living in the U.S., it’s a more reliable way of sending high-value items (electronics and medicines, for instance) without running the risk that relatives have to ransom a shipment trapped at customs.
/goo.gl/o5LYRC

Miscellaneous

From Michael Lewis, a Portrait of the Men Who Shaped ‘Moneyball’
Alexandra Alter – New York Times
More than a decade ago, Michael Lewis was following a group of young baseball players through the minor leagues. He was working on a sequel to his 2003 best seller “Moneyball,” which chronicled how the Oakland A’s general manager Billy Beane revolutionized the sport by using statistics to evaluate players.
/goo.gl/30HsqO

Cargill opens innovation center in China to create food of the future S
Cargill
SHANGHAI – Dec. 1, 2016 – Cargill has pulled together its resources and expertise across broad areas in food, including animal protein, edible oils, sweeteners, starches, cocoa, and texturizing solutions, to start Cargill ONE, an innovation center designed to create innovative food products and new flavors for its customers in China. Situated in Shanghai, Cargill ONE employs nearly 50 researchers, scientists, nutritionists and chefs who will work with customers to develop nutritious and safe food that meet the changing tastes of consumers.
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Why Snapchat And Apple Don’t Have A Fake News Problem; Being a control freak pays off. “It’s impossible for somebody to go rogue in Discover.”
Nitasha Tiku – Buzzfeed
Facebook emerged during the US election as a central political and news source, but also a hub for hoaxes, propaganda, and outright fake news — an issue that brought wide criticism and concern from figures reportedly including President Barack Obama.
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