India’s Covid Surge Is Most Ferocious Yet. ‘Spreading Like Wildfire’; TD Ameritrade Wins Legal Battle Over Handling of Investors’ Orders

Apr 26, 2021

First Read

$40,276/$300,000 (13.4%)

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Hits & Takes
John Lothian & JLN Staff

On Saturday, U.S. President Biden formally declared the massacre of Armenians in the early 20th century to be genocide. This was a presidential campaign promise for Biden, but more importantly, something that should have been done by U.S. leaders a long time ago.

Many times my last name, Lothian, is mistaken for Armenian, as many Armenian names end in “ian”. Lothian is a Scottish name, a place name that was derived from the name of a northern king, King Lot. I have received many Armenian newsletters over the years as a result of the misconfusion over the origins of my ancestry. One of my dearest friends is Armenian.

My trip to Turkey for an IFM conference many years ago raised my awareness of the tremendous history of the region. The cab rides in Istanbul oozed such history lessons. The biography of Kamâl Atatürk, Turkish field marshal, revolutionary statesman, author, and the founding father of the Republic of Turkey, that I bought at the Istanbul airport and consumed on the plane ride home only encouraged my thirst for more Turkish history.

April 24 was Armenian Genocide Remembrance Day, which prompted Biden’s action. Ignoring the history of genocide only leads to its hurt being repeated over and over again. In fact, well-known authors and journalists from Turkey have been prosecuted just for acknowledging the mass killings of Armenians in 1915. Washington Post staff writer Gillian Brockell has an article on the origins of the word genocide titled “The Armenian ‘genocide’: This is what happened in 1915.” — Washington Post

I can only hope that this move by Biden leads to engagement and reconciliation, but as with many historical issues it is a long game being played. — Sky News, Bloomberg

A New York Times story on Saturday captured my attention and was a good read. The story is “The Woman Who Shattered the Myth of the Free Market; Joan Robinson upended the misogynistic good-old-boys’ network of economists and devised theories around competition and labor vital to the antitrust debates of today.” — NY Times

Garry Jones, the CEO of Perfect Channel, is now the CEO of NovaFori after the firm rebranded. Business was up 40% in 2020 for the firm and is accelerating, the company said in a press release. — NovaFori

Model Emily Ratajkowski’s name is usually used in headlines as clickbait, something we would never stoop to. We are including her in JLN today because of a very serious story from the NY Times titled “Emily Ratajkowski Is Selling an NFT at Christie’s; The artist Richard Prince appropriated her image for his work. Now she’s doubling back on it for one of her own.” — NY Times

Before Bernie Madoff died he granted exclusive access to journalist Jim Campbell. Campbell interviewed the disgraced Wall Street executive and his family for a book titled “Madoff Talks: Uncovering the Untold Story Behind the Most Notorious Ponzi Scheme in History.” CBS News has the story. — CBS News

Do you want to know the best places in the world to be as the variants outrace the vaccinations? Bloomberg has a list. — Bloomberg

The New York Times is reporting that the E.U. is set to let vaccinated U.S. tourists visit this summer. — NY Times

Yale University’s free happiness class has enrolled just less than a half a million people and was the second most popular class on Coursera of all time. — Mashable

Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL

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The Cboe Options Institute is hosting a live one-hour webinar on Wednesday at 12 p.m. ET that will explore how to trade weekly index options. Speakers include Megan Miller, a portfolio manager at Wells Fargo Asset Management, and Oleg Bondarenko, professor of finance at University of Illinois at Chicago. For information on registration for “Tenor, Theta, and Use of Weekly Options,” click here. ~SC

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OCC reduces clearing fees; Coinbase CEO sells $292 million worth of COIN shares – The Spread
JohnLothianNews.com

This week on The Spread, major exchanges begin trading options on Coinbase stock, Eurex announces record volume for ESG derivatives, Gary Gensler is confirmed as head of the SEC, and more.

Watch the video »

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Perfect Channel rebrands as ‘NovaFori’
Novafori.com
Rebrand reflects the fast-growing adoption of NovaFori’s B2B digital marketplace technology; London-based NovaFori is accelerating the adoption of digital B2B marketplaces as businesses re-evaluate their digitisation strategies; Following 41% revenue growth in 2020, the business expects continued rapid expansion this year and beyond;The new and enhanced management team will focus on delivering product innovation and increased digital market functionality for its clients, and will invest directly in new disruptive market opportunities alongside industry partners.
Perfect Channel Limited has today announced a new name for the company and a rebrand to reflect their ambition and commitment to developing new digital markets. Following 41% revenue growth in 2020 and a strong pipeline of new business, the company’s momentum is accelerating, while the name change reflects its commercial mission.
/bit.ly/3tUVWno

*****If there is one man who knows how to pivot, it is NovaFori CEO Garry Jones.~JJL

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Adena Friedman Spills The Stock Exchange’s Secrets
Joshua Eferighe – Ozy.com
Adena Friedman is an American businesswoman who wears the pants at home and work. She’s also a Black belt in Taekwondo that’s never been knocked out. But more importantly, she’s the President and CEO of Nasdaq. Watch her tell Carlos about her fast-paced life and how she got to where she is. You can find excerpts below or listen to the full interview on the show’s podcast feed.
/bit.ly/3dPVhOs

*****I want her to spill the magic beans. That would be way cooler.~JJL

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Wall Street Banks Say Time for Loan Market to Ditch the Fax
Paula Seligson – Bloomberg
Three banks developing new platform to share data with lenders; Tool set to launch in early 2022; more banks can join
A corner of the debt capital markets known for still sending official notifications via email and even the occasional fax is poised for a modern update. Bank of America Corp., Citigroup Inc., and JPMorgan Chase & Co. are developing a new platform for the $4 trillion syndicated loan market that would let lenders access data across their portfolio all in one place. Currently, lenders receive a hodgepodge of updates on each individual loan — interest payment notices and requests for amendments, for example. It’s a headache for investors who often have to manually update that data into their own internal systems.
/bloom.bg/2S1JkNl

*****It is time to upgrade to brick phones.~JJL

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Pack Your Bag. Business Trips Are Coming Back; Corporate travel is still in a slump, but that may be about to change.
Brooke Sutherland – Bloomberg
Business travel hasn’t bounced back yet. But it will — and the recovery may be stronger than expected. This isn’t a widely shared opinion at the moment. Corporate road warriors have largely stayed away from airports during the pandemic, even as cooped-up Americans have taken advantage of the vaccine rollout to plan getaways and visits with family. In a jam-packed week for airline earnings, American Airlines Group Inc. said daily net bookings had actually outpaced 2019 levels over the past week. But the bulk of that is from domestic leisure travelers; business and long-haul international demand is only 20% of what it was before the pandemic. Southwest Airlines Co. estimated business travel will still be down at least 50% at the end of this year compared with pre-Covid levels and Chief Executive Officer Gary Kelly said he wouldn’t be surprised if the market didn’t fully recover for another decade.
/bloom.bg/2S0pEth

*****Boca 2025 here I come!!!~JJL

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Crypto Holders Say It’s Hurt Their Personal Relationships
Joanna Ossinger – Bloomberg
A greater portion of assets in crypto makes issues more likely; Big gains or losses of money can have an effect: analyst
Many downsides of cryptocurrencies are well known: There’s volatility, potential for thefts or hacks, and the chance of regulatory changes. Turns out, it may not help your social life, either.
/bloom.bg/3sOCEPk

*****Instant wealth has always been an issue in relationships. So has being part of a cult.~JJL

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Friday’s Top Three
The top story on Friday was from Bloomberg, Hedge Fund Collapse in Sweden Puts Spotlight Back on Quants. The second most-read story was a profile in the Wall Street Journal, Robinhood, Three Friends and the Fortune That Got Away. And third most read was from the Financial Times, JP Morgan apologises for backing breakaway football Super League.

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CryptoMarketsWiki Website»
CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.Recently Updated Pages

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Lead Stories

India’s Covid Surge Is Most Ferocious Yet. ‘Spreading Like Wildfire.’; New coronavirus wave hit nation of over 1.3 billion after loosening restrictions and public complacency set in, with variants possibly at play
Vibhuti Agarwal and Shan Li and Suryatapa Bhattacharya – WSJ
India is in the grip of a Covid-19 surge that has hit with more speed and ferocity than any seen before in the more than yearlong coronavirus pandemic. It has overwhelmed New Delhi’s chronically underfunded government hospitals and turned securing a private-hospital bed into a nearly impossible feat.
/on.wsj.com/3dTFdv2

TD Ameritrade Wins Legal Battle Over Handling of Investors’ Orders; Some investors opposed brokerage’s practice of routing stock orders to high-speed trading firms
Alexander Osipovich – WSJ
A federal appeals court sided with TD Ameritrade in a legal battle over its practice of routing investors’ stock orders to high-speed trading firms in exchange for payments. The U.S. Court of Appeals for the Eighth Circuit on Friday rejected a proposed class-action lawsuit from investors who accused the brokerage of securities fraud. The suit claimed TD Ameritrade had failed to abide by its duty to seek the best execution for customer stock trades.
/on.wsj.com/3vfz6XZ

Women Step Up Trading in Bitcoin, Other Cryptocurrencies; Robinhood says quarter of trading in digital currencies is done by women, though that level lags behind their trading in stocks and ETFs
Veronica Dagher – WSJ
More women are investing in cryptocurrency, as Coinbase Global Inc.’s initial public offering and bitcoin’s recent record-setting high help bring the asset class further into the mainstream. Several cryptocurrency exchanges and online brokerage firms are reporting an increase in the number of women trading crypto in the past year. Some are expecting that number to rise further, thanks in part to investors’ greater awareness of the asset class, their desire to buy into hot markets and the promise of boosting their savings. At the same time, some people who are using volatile markets to save expose themselves to the risk of having months of gains wiped out when the winds shift.
/on.wsj.com/32Y8vml

Are cryptocurrencies ready to go mainstream?
Mike Bebernes – Yahoo Finance
Coinbase, a platform used for buying and selling cryptocurrencies, became the first major cryptocurrency company to go public on the U.S. stock market last week. The listing marks a milestone for the cryptocurrency industry as it takes on an increasingly significant role in the mainstream economy.
/yhoo.it/3nqDtwz

PayPal CEO Dan Schulman: Cryptocurrency Is the Real Deal. And the Superapps Are Coming.
Eben Shapiro – Time Magazine
Like many CEOs on the West Coast, Dan Schulman has a sort of a uniform: blue jeans, black sweater and ostrich-skin cowboy boots. When it came time to replace his boots, Schulman, the CEO of PayPal, used one of the company’s new services to make the purchase. With a few clicks, in a few seconds, he bought the boots and paid for them with Bitcoin. “Boom,” he says. “It was pretty cool.”
/yhoo.it/3sSGmHB

EU Eyes New Pollution-Cutting Trading System for Cars, Buildings
Ewa Krukowska and Nikos Chrysoloras – Bloomberg
Bloc set to draft laws to meet stricter 2030 climate targets; Leaders will discuss measures in special summit in May
Europe’s car and construction sectors could face rising costs if they fail to substantially reduce their carbon footprint. European Union leaders will gather in Brussels for a special session on May 25 to discuss how to achieve the bloc’s collective 2030 target of cutting harmful greenhouse emissions by at least 55% compared to 1990 levels. Binding national targets are among the sticking points.
/bloom.bg/3xp6cq6

Credit Suisse’s $5.5 Billion Archegos Hit Enters Big League of Bank Losses; ‘The fallout at Credit Suisse is going to continue for some time,’ says Nick Leeson, whose trades led to the 1995 downfall of Barings Bank
Simon Clark – WSJ
Credit Suisse Group AG’s CS 4.40% $5.5 billion loss from Archegos Capital Management puts it into the big league of banking mishaps with the likes of Nick Leeson, Jérôme Kerviel and the “London whale.” Archegos, the U.S. family investment firm of former Tiger Asia manager Bill Hwang, took huge bets on a few stocks with money borrowed from Credit Suisse and other banks. When some large positions reversed and Archegos couldn’t meet margin calls, it triggered one of the biggest sudden losses in Wall Street history.
/on.wsj.com/2QxmMU6

End of Libor stirs anger on Wall Street; Bankers worried about the risks of the replacement for global borrowing benchmark
John Dizard – FT
Ending the use of dollar Libor, the scandal-tinged benchmark bank funding rate, was always going to be problematic. Some Libor traders went to jail for collusion and self-enrichment. The Fed and its fellow regulators put together a public-private committee on Libor replacement big enough to swamp a ferry boat
/on.ft.com/3aDvkQ8

FX Investors See Metals as a Way to Get In on Biden’s Trillions
Vivien Lou Chen and Robert Fullem – Bloomberg
Stimulus plan’s focus aids Australia, Canada, Chile currencies; AGF, Brandywine, Manulife ride ‘supercycle’ for commodities
As lawmakers wrangle over President Joe Biden’s latest trillion-dollar stimulus package, currency investors are already picking the winners of the infrastructure spending boom that the plan is likely to unleash.
/bloom.bg/3gAeDsI

A Niche London Firm Outplayed JPMorgan in Super League Battle
Tom Metcalf – Bloomberg
London-based Centricus is negotiating financing with UEFA; Offer emerged amid plans for a breakaway soccer league
The fight for the future of European soccer was also a battle between two very different types of financial players. On one side stood the venerable Wall Street giant JPMorgan Chase & Co., bankrolling a debt-driven, multi-billion euro plan to form a breakaway European Super League. Lining up against them was a boutique financial firm with links to some of the world’s richest and most liquid investors and a proposal to invest in a revamped UEFA Champions League soccer tournament.
/bloom.bg/3aykYB8

Money Market Funds Melted in Pandemic Panic. Now They’re Under Scrutiny; In March 2020, the Federal Reserve had to step in to save the mutual funds, which seem safe until there’s a crisis. Regulation may be coming.
Jeanna Smialek – NY Times
The Federal Reserve swooped in to save money market mutual funds for the second time in 12 years in March 2020, exposing regulatory shortfalls that persisted even after the 2008 financial crisis. Now, the savings vehicles could be headed for a more serious overhaul.
/nyti.ms/32HPC6Z

Amid Expanded Covid-19 Vaccine Eligibility, Signs Emerge of Slowing Demand; Some states that had initial success with vaccination rates have plateaued, signaling potential challenges with Americans who may be hesitant to get the shot
Randy Yeip, Josh Ulick and Lindsay Huth – WSJ
With six more states having expanded eligibility for Covid-19 vaccinations, every American aged 16 and older who wants a shot can get one. The question now is just how many actually want it. On Wednesday, President Biden introduced a tax credit for small businesses to offset paid leave for employees to get a Covid-19 vaccine dose, part of an effort to spur hesitant Americans to get vaccinated. The announcement came amid signs that the pace of vaccinations is slowing.
/on.wsj.com/2QWvXgY

Credit Suisse Top Holders Seek to Oust Directors Over Archegos
Patrick Winters – Bloomberg
Norway sovereign fund to vote against 6 members’ re-election; Glass Lewis advises against re-electing risk committee head
Credit Suisse Group AG’s top shareholders have called for the removal of key board members ahead of the bank’s annual general meeting, after mounting losses linked to a failed hedge-fund further eroded confidence in the lender’s leadership.
/bloom.bg/3nodqGd

New federal regulations could spur cryptocurrency crash
Charles Gasparino – NY Post
Ask Wall Street’s C-suite types about cryptocurrencies, and they all admit they’re getting into them one way or another. But keep asking questions, and they’ll tell you something else, too: the market is ripe for a crash. The crypto crash, according to top executives I’ve recently spoken with, could be happening right now with the recent slide in prices. Or it might occur next month or later this year.
/bit.ly/2PmeuOm

Bitcoin Is a Threat to National Security; The time has come to stop the use of Bitcoin as a pirate currency before it spreads further into not only the U.S. economy but into the entire global financial system.
Ramon Marks David Harvilicz – The National Interest
Bitcoin is flying high, the glamour child of market speculators. Even Wall Street’s conservative wealth management firms have begun providing Bitcoin services to clients. Bitcoin was first launched in 2009 for an initial asset value of exactly $0. In October 2010, Bitcoin was trading for around 10 cents a coin. A hundred dollars would have bought about 1,000 Bitcoins. If an investor had held on to those digital “coins,” they would be worth over $62 million today.
/bit.ly/2QZuZQO

Wellness Exchange

The End of U.S. Mass Vaccination Is Coming Sooner Than Later; Rates of shots are falling as the campaign passes its peak
Drew Armstrong – Bloomberg
After three months of vaccination across the U.S., a majority of American adults have gotten shots, and the effort will soon shift from mass inoculation to mop-up.
/bloom.bg/3sMC2ty

U.S. to Send Virus-Ravaged India Materials for Vaccines; The Biden administration, under pressure to help with a surge raging out of control, will also supply therapeutics, test kits, ventilators and protective gear.
Katie Rogers and Sheryl Gay Stolberg – NY Times
The Biden administration, under increasing pressure to address a devastating surge of the coronavirus in India, said on Sunday that it had partially lifted a ban on the export of raw materials for vaccines and would also supply India with therapeutics, rapid diagnostic test kits, ventilators and personal protective gear.
/nyti.ms/2R0qEgw

CDC recommends pregnant women get coronavirus vaccine; Agency director Rochelle Walensky cites data showing ‘no safety concerns’ for more than 35,000 women in their third trimester or for their babies.
Ariana Eunjung Cha – Washington Post
Pregnant women confused by conflicting recommendations regarding coronavirus vaccination over the past few months now have clear guidance from the Centers for Disease Control and Prevention: Get the shots.
/wapo.st/32Kd82Z

Six Exercises to Improve Your Posture; An Ironman coach shares a workout that will strengthen postural muscles and help you run more efficiently
Jen Murphy – FT
Watching athletes transition from cycling to running during a triathlon, you can always spot the competitors that will have a successful race even 100 yards into a run, says Earl Walton, the Tampa, Fla.,-based global director of training and coaching for Ironman. “The runners that are able to come off the bike and run tall are ready for the challenge ahead. Your run will be more successful if you can carry your upper body weight in an efficient manner.”
/on.wsj.com/2Qn8pC2

India’s Fast Descent Into the Covid Abyss
Bhuma Shrivastava – Bloomberg
India’s descent into the Covid abyss
India’s descent into the Covid-19 abyss was so fast that it almost feels like a thunderbolt strike. From reporting around 40,000 new infections in a day a month back, the South Asian nation crossed 330,000 new cases Friday. In between, it blew past records almost every day to emerge as the world’s fastest-growing outbreak, with more than 16 million cases.
/bloom.bg/3sSB0My

Vaccine Rollout Leaves Developing Countries Tragically Behind; The rules of global trade have kept lifesaving treatments out of reach for the world’s neediest.
Brooke Sample – Bloomberg
To judge by the headlines, you’d think the most critical immunization issue facing the world is the safety and hesitancy concerns over the AstraZeneca Plc and Johnson & Johnson vaccines. That debate is genuinely important. Still, it shouldn’t distract from the biggest challenge the world will face over the coming months: the grossly unequal distribution of vaccines between rich and poor countries.
/bloom.bg/32HSCA8

CDC Advisers Reaffirm Backing of J&J’s Vaccine After Pause
Angelica LaVito and Riley Griffin – Bloomberg
Panel reviewed 15 cases of rare, severe blood clots in women; Agencies could decide to resume shot’s use as soon as Friday
A panel of medical experts reaffirmed their support for Johnson & Johnson’s Covid-19 vaccine, setting the stage for regulators to allow use of the shot to resume after a pause to study rare, severe blood clots in some recipients.
/bloom.bg/3sSErCW

When It Comes to a Travel Restart All Vaccines Are Not Equal
Bloomberg News
Chinese vaccines could make it easier to enter, exit mainland; EU may allow American tourists to return this summer: NYT
With the resumption of global travel on the horizon, some people are discovering that their choice of vaccine could determine where they’re allowed to go. Already, the European Union is planning to allow Americans vaccinated with shots approved by their drug agency to enter over the summer, European Commission president Ursula von der Leyen suggested in a New York Times interview Sunday.
/bloom.bg/3sX5BIJ

Sanofi Agrees to Help Make Doses of Moderna’s Covid Vaccine
Tim Loh – Bloomberg
Sanofi will help make up to 200 million doses of Moderna Inc.’s Covid-19 vaccine, the French drugmaker’s third agreement to throw its weight behind another company’s shot during the pandemic.
/bloom.bg/3t1crxf

World Pledges Aid for India as Cases Surge: Virus Update
Bloomberg News
India’s Covid-19 crisis is worsening, with a million cases added in the past three days. The U.S. will send India raw materials and step up financing aid for vaccine production, joining European countries in helping stem the world’s biggest surge in cases. President Joe Biden’s chief medical adviser said the U.S. will also consider offering India unused doses of AstraZeneca Plc’s vaccine.
/bloom.bg/3xt3iB0

J&J’s Second Act Creates New Challenge for Immunization Effort
Angelica LaVito and Riley Griffin – Bloomberg
After a pause for safety concerns, U.S. must battle skepticism; Slowing vaccination campaign creates new obstacles for shot
For Americans wary of the Johnson & Johnson Covid-19 vaccine as it returns to use after the investigation of a potentially deadly side effect, health experts have a message: The system worked.
/bloom.bg/3gIEfDQ

More News
Vaccine makers say IP waiver could hand technology to China and Russia; Proposal to suspend patent rights comes as poorer countries struggle to obtain Covid dosesFT

A Covid-19 Vaccine’s 1,500-Mile Journey Through India; India is simultaneously battling the world’s worst infection surge and carrying out one of the most logistically complex vaccination campaigns. One shot’s arduous trip from a bioreactor tank to a village schoolteacher’s arm.WSJ

Covid Has Been Miserable. It’s Also Been Innovative; Living through a pandemic has been anything but fun, but it’s certainly been a learning experience.Bloomberg

 

Exchanges, OTC and Clearing

MGEX Reports a Top 10 Day
MGEX
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), reports that Thursday, April 22nd broke into the top 10 record book as the 6th best total volume day in history with a total of 28,699 contracts traded.
/bit.ly/32OtmYQ

Argeo lists on Euronext Growth
Euronext
Euronext today congratulates Argeo on its listing on Euronext Growth Oslo (ticker code: ARGEO).
/bit.ly/3sSPADJ

Q&A: What do Eurex’s New Futures on STOXX Factor Indices Offer?
Eurex
The new futures track 12 STOXX® Industry Neutral Ax Factor Indices covering the European and US markets, which employ an optimized methodology to control factor exposures, diversification and tradability. Zubin Ramdarshan from Eurex and Qontigo’s Hamish Seegopaul explain why the futures offer a unique vehicle for market participants seeking factor-based strategies.
/bit.ly/3tWUSPZ

Performance Bond Requirements: Agriculture Margins – Effective April 26, 2021
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below.
/bit.ly/2R3vbyQ

CME Direct Software Enhancement Coming April 25
CME Group
On Sunday, April 25 (trade date Monday, April 26), there will be a CME Direct software upgrade. The software release only includes security improvements. CME Direct team recommends you save a copy of your workspace prior to the system upgrade. To save a workspace: Menu > Export Window Layout.
/bit.ly/3tTqzd0

Fintech

Eventus Systems wins Best in RegTech for second consecutive year in Markets Media’s 2021 Markets Choice Awards
Eventus Systems, Inc., a leading global provider of multi-asset class trade surveillance and market risk solutions, has won the award for Best in RegTech at Markets Media’s 2021 Markets Choice Awards. This is the firm’s second consecutive win in the category and the second major award win this month for Eventus.
/bit.ly/2Qwt3j2

Darktrace Targets Valuation of Up to $2.6 Billion in London IPO
Swetha Gopinath – Bloomberg
Company has scheduled its trading debut on the LSE for May 5; Shares are offered at 220 pence to 280 pence each in the deal
Cybersecurity company Darktrace Plc is targeting a valuation of as much as 1.9 billion pounds ($2.6 billion) in a London initial public offering, boosting confidence in the City’s ability to attract technology listings post-Brexit and after Deliveroo Holdings Plc’s recent flop.
/bloom.bg/3gDzStE

A dangerous time to get caught up in the fintech frenzy; Sunak push to back sector comes after the collapse of Greensill
Patrick Jenkins – FT
Britain’s chancellor of the exchequer took the keynote speaking slot at the UK’s Fintech Week conference last week. Rishi Sunak announced a suite of measures to back the financial technology sector: principally some regulatory tweaks and a central bank digital currency project.
/on.ft.com/3vi9Zno

Broadridge Integrates FundApps’ Regulatory Compliance Technology
Bilal Jafar – Finance Magnates
Broadridge Financial Solutions, a global fintech company, today announced that it has integrated FundApps’ regulatory compliance technology with the company’s buy-side portfolio and order management solution. According to the official press release, the newly integrated solution will allow the clients of Broadridge to receive benefits from a unique regulatory compliance solution that addresses managers’ needs. The fintech company mentioned that BennBridge, a financial services provider based in the UK, is one of the clients of Broadridge and FundApps.
/bit.ly/3dWNm2d

Letter: Fintech requires due diligence, not buzzwords
Rupak Ghose – FT
In “City regulation: robocops can cut costs” (April 17) Lex correctly cites the opportunity for “RegTech” to improve efficiency. Improvements in technology in non revenue generating parts of financial institutions, such as market surveillance, have materially lagged the advancements made in areas like trading and investing for 20 years. But the increased use of complex algorithms and artificial intelligence also carry new challenges around model drift, sensitivity to data quality and implementing ethical principles. Large banks are careful of these risks given the high degree of oversight they face. At a time when pretty much all other firms are marketing themselves as AI-driven technology firms we need to be cognisant of greenwashing syndrome. Trendy buzz words are not a substitute for due diligence on product quality or regulatory risks. We saw that with Greensill and Wirecard.
/on.ft.com/3dRz1UB

FinTech & The Gaming Industry
Vivek Dubey – Finextra
FinTech has a Midas touch and since the 2020 crisis, it has redefined the Gaming Industry. We have arrived in the era of FinTech driven Gaming Industry. Let us try to look at a few numbers, in one estimation, 2020 the global gaming market had an approximate net value of 167.9 Billion USD. This value is expected to grow to 287.1 Billion USD within the next five years, owing to an increase in popularity, accessibility, and development of games. The outbreak of COVID-19 has been a force in driving the consumers of all entertainment industries like movies, theaters, music shows, etc towards online gaming. A survey in March 2020 showed that Americans reported a 45% increased time playing online games during quarantine than in the preceding weeks. That was the time when the governments were deciding on lockdown around the world.
/bit.ly/32OqDyJ

IHS Markit rolls out ResearchPool platform to clients for managing research; Through the collaboration institutional clients of IHS Markit can access and manage sell-side and independent research through the ResearchPool platform.
Annabel Smith – The Trade
IHS Markit and ResearchPool have entered a strategic collaboration that will provide institutional investor clients of IHS Markit to manage research through the ResearchPool platform. The ResearchPool platform hosts over two million pieces of investment research from 400 global providers to over 20,000 institutional users.
/bit.ly/3tRKrx2

SteelEye’s New AI-Driven Lexicon Revolutionises Market Abuse Detection
Mondovisone
SteelEye, the compliance technology and data analytics firm, has completely revolutionised market abuse and communications monitoring with its innovative new lexicon technology.
/bit.ly/3t1mxOF

Cryptocurrencies

Turkish authorities issue warrant for crypto exchange boss; Thodex under investigation and 62 people held after reports claiming a suspect had fled with $2bn
Ayla Jean Yackley and Eva Szalay – FT
Turkish authorities have detained more than 60 people and issued an international search warrant for the chief executive of a local cryptocurrency exchange in connection with allegations of fraud.
/on.ft.com/3sLwJdYthat

Collision Course: Bitcoin Versus ESG; Bitcoin is set for a head-on clash with those investors who want their portfolios to be managed responsibly.
Man Group
IntroductionIt sometimes seems like there are only two asset management stories in the news at the moment: ever-more giddy pieces on the soaring price of bitcoin, asking when, not if, the cryptocurrency will go mainstream; and a series of articles about the urgent need for investors to implement responsible investing across all mandates.
/bit.ly/3dMUvBU

South Korea’s Top Financial Regulator Suggests All Crypto Exchanges Could Be Shut Down
Felix Im – Coindesk
The head of South Korea’s financial regulatory agency has created controversy by saying all the country’s cryptocurrency exchanges could be shut down in September. During a meeting of the National Assembly’s policy committee on April 22, Eun Sung-soo, chair of the Financial Services Commission (FSC), said the agency has yet to receive any any Virtual Asset Service Provider (VASP) applications required under a recently amended law going into effect later this year.
/yhoo.it/3xmuP6Y

How Wyoming became the promised land for bitcoin investors
Chris Matthews – MarketWatch
Wyoming’s economy is powered by some of the oldest industries in human history, including mining, agriculture and tourism. But in recent years the state has emerged as an unlikely champion of far newer inventions: cryptocurrencies and the blockchain technology that powers them.
/on.mktw.net/3gFjt86

Phillips Hops on NFT Gravy Train With $4.1 Million ‘Mad Dog Jones’ Sale; The last of the big three auction houses tweaks the NFT formula even further with Replicator.
James Tarmy – Bloomberg
First came Christie’s, then Sotheby’s, and then on Friday it was Phillips’s turn. After 67 bids, the auction house closed its first NFT auction with a $4.1 million sale of an artwork by Michah Dowbak, who goes by the artist name Mad Dog Jones. The work has set a record for a living Canadian artist at auction, according to a Phillips spokesperson, besting the photographer Jeff Wall’s previous high of $3.7 million.
/bloom.bg/3tOGVnd

Turkey’s Crypto Pain Grows With Second Exchange Collapse
Baris Balci – Bloomberg
Vebitcoin exchange to halt operations; CEO reportedly detained; Turkish financial crimes watchdog opens probe into exchange
Turkey’s cryptocurrency investors were dealt another blow at the end of a dismal week after a second big exchange collapsed in as many days and its chief executive was reportedly detained. Vebitcoin has halted operations citing deteriorating financial conditions, and Demiroren News Agency said its Chief Executive Ilker Bas and three other employees have been detained. The Financial Crimes Investigation Board has blocked Vebitcoin’s accounts and opened a probe.
/bloom.bg/2S2e5BR

Possible cryptocurrency fraud is another blow to Turkey’s financial stability.
Jack Ewing – NY Times
A cryptocurrency exchange in Turkey suspended operations this week amid accusations of fraud, freezing an estimated $2 billion in investors’ money, and authorities said they were seeking the company’s founder.
/nyti.ms/3sPXxK3

Emily Ratajkowski Is Selling an NFT at Christie’s; The artist Richard Prince appropriated her image for his work. Now she’s doubling back on it for one of her own.
Kate Dwyer – NY Times
In an effort to re-establish “authority” over the usage of her likeness, Emily Ratajkowski, the model and writer, is minting a nonfungible token, or NFT, which will be auctioned at Christie’s on May 14. The piece will be titled “Buying Myself Back: A Model for Redistribution.”
/nyti.ms/3dQaBuJ

Turkish authorities issue warrant for crypto exchange boss; Thodex under investigation and 62 people held after reports claiming a suspect had fled with $2bn
Ayla Jean Yackley in Istanbul and Eva Szalay – FT
Turkish authorities have detained more than 60 people and issued an international search warrant for the chief executive of a local cryptocurrency exchange in connection with allegations of fraud.
/on.ft.com/3sLwJdY

More News
Bitwise’s Flagship Fund Seeks SEC Reporting StatusCoindesk

Coinbase customers with hacked accounts get no justice from ‘horrible’ US laws: Fintech lawyerYahoo Finance

Cryptomania Hits Home in Turkey With Losses, Arrests and ManhuntBloomberg

Paxos becomes latest crypto company to score OCC approval for a bank charterThe Block

Turkey’s Central Bank Head Says Crypto Regs Coming, Denies Total Ban AheadCondesk

 

Politics

Biden Recognizes Massacres of Armenians as Genocide; Historic statement will likely exacerbate tensions with Turkey, whose relationship with the U.S. has deteriorated in recent years
William Mauldin and Jared Malsin – WSJ
President Biden formally declared the massacres of Armenians in the early 20th century to be genocide, fulfilling a campaign promise to Armenian-Americans and others who have sought such an official acknowledgment for decades.
/on.wsj.com/3vhOYsS

White House says capital gains tax rise will hit only richest 0.3%; Biden administration defends near-doubling of levies to fund $1.5tn spending package
James Politi – FT
The White House has hit back at criticism from Wall Street and Silicon Valley of its plans to raise capital gains taxes for high-earning Americans, saying it would affect the income of only a “sliver” of the US population which was unearned or based on rent-seeking.
/on.ft.com/3nm9C8q

Labour puts pressure on Sunak over Greensill Capital affair; UK chancellor asked to reveal records of texts and phone calls related to provision of Covid support scheme loans
Jim Pickard and Daniel Thoma – FT
The UK’s main opposition party on Friday called on the government to explain why Greensill Capital was approved to provide loans through a Covid-19 support scheme last year, despite it being clear at the time that the company was in financial trouble.
/on.ft.com/3vdR7FX

EU Investment Bank Harassment Claims Face Parliament Hearing
Stephanie Bodoni and Gavin Finch – Bloomberg
Hearing follows report on alleged toxic work culture at EIB; Panel to invite top officials at bank, staff representatives
Top staff at the European Investment Bank will be asked to appear at a behind-closed-doors hearing in front of EU lawmakers following reports of harassment and bullying at the institution. The European Parliament’s influential economic and monetary affairs committee agreed to set up the hearing after a Bloomberg report described accusations of sexual harassment, bullying and discrimination at the Luxembourg-based EIB.
/bloom.bg/3ayloYe

Private Equity’s Favorite Tax Break May Be in Danger; President Biden is weighing an end to the carried interest loophole.
Andrew Ross Sorkin, Jason Karaian, Sarah Kessler, Michael J. de la Merced, Lauren Hirsch and Ephrat Livni – NY Times
President Biden is expected to unveil a $1.5 trillion “human infrastructure” plan next week that will focus on education, child care and paid leave for workers, among other things. It would be paid for in part by new taxes on the rich, including the end of a tax break that lawmakers have tried to eliminate for years.
/nyti.ms/3sIU3J9

Regulation

Warning Of Fraud – Unlawful Use Of BaFin’s Logo In Connection With The Business Activities Of LiborTC Limited
Mondovisione
Documents entitled “Financial Information” and bearing the logo of the European Securities and Markets Authority (ESMA) and BaFin are fakes. We have been made aware of such a document in connection with the business activities of the company LiborTC Limited. Please note that BaFin does not send any financial information to investors.
/bit.ly/3dKeH7w

SEC Awards More Than $3 Million to Whistleblowers in Two Enforcement Actions
SEC
The Securities and Exchange Commission today announced awards totaling more than $3 million to two whistleblowers in separate enforcement proceedings.
/bit.ly/32IzG4r

SEC Charges Fund Manager and Former Race Car Team Owner with Multimillion Dollar Fraud
SEC
The Securities and Exchange Commission today charged Andrew T. Franzone, former owner of a race car team, and investment adviser FF Fund Management, LLC (FFM) with fraudulently raising and misappropriating tens of millions of dollars from the sale of limited partnership interests in a private fund, FF Fund I LP.
/bit.ly/3nkp84F

CFTC Awards Approximately $3 Million to Whistleblower; Agency Surpasses $1 Billion in Total Sanctions Associated with Whistleblower Awards
CFTC
The Commodity Futures Trading Commission today announced an award of approximately $3 million to a whistleblower whose specific, credible, and timely tip led the CFTC to open an investigation and ultimately bring a successful enforcement action.
/bit.ly/3tRM2Ty

Investing and Trading

FX Investors See Metals as a Way to Get In on Biden’s Trillions
Vivien Lou Chen and Robert Fullem – Bloomberg
Stimulus plan’s focus aids Australia, Canada, Chile currencies; AGF, Brandywine, Manulife ride ‘supercycle’ for commodities
As lawmakers wrangle over President Joe Biden’s latest trillion-dollar stimulus package, currency investors are already picking the winners of the infrastructure spending boom that the plan is likely to unleash.
/bloom.bg/3gAeDsI

Gen Z women are breaking into the venture capital boy’s club; The new entrants hope their arrival is a sign that the VC establishment is open to new perspectives on which ideas deserve funding.
Nitasha Tiku – Washington Post
Paige Finn Doherty never pictured herself as a venture capitalist — until she binge-watched HBO’s “Silicon Valley” during winter break in college. The TV series was supposed to be a satire about the tech industry’s myopia and monoculture, not career inspiration. But Doherty was intrigued by the show’s two women tech investors.
/wapo.st/2RZbtoh

History Offers Only Rough Guide to the Coming Economic Boom; The composition of today’s economy is very different from past ones following recessions
Justin Lahart – WSJ
The U.S. economy is poised to grow at its fastest pace in decades, carried along by a wave of pent-up demand built during the pandemic and the trillions of dollars of support the government has provided over the past year.
/on.wsj.com/2Qt0Zgs

How to Keep Your Cool When Markets Are Sizzling; When everyone around you seems to be getting rich quick, it’s hard to control your fear of missing out. But buying assets just because they’re hot is a good way to get burned.
Jason Zweig – WSJ
Buy low, sell high. Is any investing advice more universal—or more universally ignored? That market axiom was made for times like these, when stocks are hovering near all-time highs, digital currencies are heading to the moon and commodity prices are surging. Yet, when markets seem to be breaking records every day, your emotions naturally prompt you to buy high, not to sell.
/on.wsj.com/3dL9UCG

The Woman Who Shattered the Myth of the Free Market; Joan Robinson upended the misogynistic good-old-boys’ network of economists and devised theories around competition and labor vital to the antitrust debates of today.
Zachary D. Carter – NY Times
When Joan Robinson arrived at Cambridge University in 1929, nobody expected her to become one of the most important economists of the 20th century — let alone the 21st. She had spent the past three of her nearly 26 years in India, where she lived without professional responsibilities while her husband, Austin, an economist six years her senior, tutored a child maharajah. When Austin returned to Britain to join the Cambridge economics faculty, Joan, who had studied the subject as an undergraduate, felt her own ambitions kindled. But she had entered an environment hostile to women.
/nyti.ms/2PiU1Kj

Rich Americans Who Were Warned on Taxes Hunt for Ways Around Them; As Joe Biden and state lawmakers target millionaires and billionaires, wealth advisers are trying to help their clients adapt to the new rules.
Ben Steverman – Bloomberg
For wealthy Americans worried about higher taxes, the future is looking bleaker. It’s all but inevitable that the Biden administration, as well as lawmakers at the state level, will target millionaires and billionaires for more levies. The new reality could feel harsh for investors who got used to paying a top rate of 23.8% on their capital gains, an amount they can lower further with many of the deductions, incentives and accounting tricks offered by the U.S. tax code.
/bloom.bg/2Pkhw5T

Bloomberg New Economy: Crypto Owes Its Rise to Irrational Gloom
Andrew Browne – Bloomberg
It’s tempting to compare today’s crypto craze with the dot-com bubbles of the late 1990s. Then, as now, an investment phenomenon crossed from the world of finance into popular culture. In his newsletter Financial Insyghts, Peter Atwater noted there were stories about the latest market frenzy in just about every section of the New York Times last week—Style, Art, Science, Sports and Metro. (He also picked out a question on the cover of New York magazine that illustrates how digital finance is reshaping language itself: “Can I SPAC My Stonks With NFTs?”)
/bloom.bg/2QQ58uK

Diamond Stash Worth Billions Sold Off After Demand Roars Back
Thomas Biesheuvel – Bloomberg
Top miners built big stocks during industry standstill in 2020; Demand has since recovered as gem polishers rush to restock
The diamond industry’s collapse last year left the biggest producers with billions of dollars of uncut gems stashed away in safes. Now, in a matter of months, they’ve suddenly found buyers. The huge stockpile was built up when the diamond world came to a standstill during the height of the pandemic, stoking fears that gems amassed by the biggest miners could hurt the sector for years. But rampant demand from the middlemen who cut, polish and trade stones has all but wiped out the stash — and remarkably as top producers De Beers and Alrosa PJSC raised prices.
/bloom.bg/3azr8RK

Now That Everyone Is Bullish, Be Cautious; The economy and the stock market have churned out spectacular numbers, and investor optimism is high. But don’t forget to hedge your bets.
Jeff Sommer – NY Times
As vaccinations spread in the United States, the stock market has been generating fabulous returns. Many of the economic numbers have been nearly as impressive.
/nyti.ms/2QxJJGN

How Palladium Became a Really, Really Precious Metal
Ranjeetha Pakiam and Eddie van der Walt – Bloomberg
Palladium is the most valuable of the four major precious metals, with an acute shortage driving prices to records in recent years. A key component in pollution-control devices for cars and trucks, the metal’s price has been on a tear, rising more than sixfold since early 2016, an increase that’s lifted it above the price of gold.
/bloom.bg/2QZkAoe

Uranium Miners Seeking a Foothold Take Unorthodox Approach: Buying Uranium; Companies that are planning to mine uranium, known as junior miners, are purchasing the nuclear fuel to help clinch sales for new mines
Joe Wallace and Rhiannon Hoyle – WSJ
Aspiring uranium miners are buying the metal like never before, a sign the market for nuclear fuel is heating up after a decade in the cold. The market for uranium, used largely to fuel nuclear power plants, has been glutted since the Fukushima reactor meltdowns in 2011. Miners and some investors say that is changing after years of OPEC-like discipline by the two biggest producers. Adding to their optimism, governments including the Biden administration and Beijing see a role for nuclear power in global efforts to mitigate climate change.
/on.wsj.com/3sRoVax

Sell Signals All but Useless in Unchartable 2021 Stock Market
Lu Wang – Bloomberg
Buy-and-hold beats all charting tools tracked by Bloomberg; Bull market penalizes anyone doubting equity momentum
If you bailed because of Bollinger Bands, ran away from relative strength or took direction from the directional market indicator in 2021, you paid for it. It’s testament to the straight-up trajectory of stocks that virtually all signals that told investors to do anything but buy have done them a disservice this year. In fact, when applied to the S&P 500, 15 of 22 chart-based indicators tracked by Bloomberg have actually lost money, back-testing data show. And all are doing worse than a simple buy-and-hold strategy, which is up 11%.
/bloom.bg/3aFnQfK

Environmental, Social and Corporate Governance

Alphabet to Introduce Executive Bonuses Partly Tied to ESG Goals
Nico Grant – Bloomberg
Alphabet Inc. said it will create a bonus program for senior executives that’s partly based on their performance in supporting environmental, social and governance goals. The program will begin in 2022, the company’s Chairman John Hennessey wrote in an annual proxy filing. ESG goals “have long been a key part of Alphabet and Google’s work,” he added in a letter to shareholders. The Google parent company will hold its annual meeting on June 2.
/bloom.bg/3dNcqII

Yellen, Lagarde Call On Private Sector to Mobilize on Climate
Christopher Condon and Carolynn Look – Bloomberg
U.S. Treasury chief cites ‘massive’ need for investment; ECB president applauds initiative for green-label criteria
U.S. Treasury Secretary Janet Yellen and European Central Bank President Christine Lagarde wrapped up a week of international events focused on fighting climate change by renewing their call to financial institutions and investors to mobilize private capital in the effort.
/bloom.bg/3nlYhpc

One of China’s First Carbon Market Believers Awaits First Trade; Qian Guoqiang has been waiting more than a decade for the world’s biggest polluter to launch a national cap-and-trade system. He hasn’t lost faith
Bloomberg News
Qian Guoqiang thought his luck must finally be changing. China’s surprise declaration last year that it would zero out planet-warming carbon dioxide came on the 22nd day of the ninth month. Qian’s office is in No. 922, located on the ninth floor of a skyscraper in Beijing’s Dongcheng district. At long last, he thought, this must mean China would start trading carbon.
/bloom.bg/3sLwcsh

Wall Street’s Trillion-Dollar ESG Club Comes With Huge Tax Perks; Four banks pledge $6 trillion in sustainable finance, and the billions they’ll save in taxes is one of the benefits
Max Abelson and Lananh Nguyen – Bloomberg
Bank of America Corp. sparked a stir in January — and a little envy — with just a few lines of disclosure in its fourth-quarter earnings report. The lender revealed it had slashed its 2020 corporate tax rate to 5.8% from what would have been 21%, thanks to finance work involving environmental, social and governance projects. That didn’t go unnoticed by Bank of America’s competitors.
/bloom.bg/3tKxRjj

Ship Operators Move Toward LNG to Pare Emissions; Natural gas-powered vessels are becoming more popular as a halfway measure as a search continues for non-carbon-based fuels
Costas Paris – WSJ
The maritime industry, under growing pressure to reduce shipping’s carbon emissions, is coming to a growing consensus that liquefied natural gas will provide an intermediate solution toward finding cleaner fuel to power ships.
/on.wsj.com/3gxWCeJ

Why EU Climate Weapon Is in the Financial Fine Print
Jill Ward, Silla Brush, and John Ainger – Bloomberg
The fight against climate change involves more than wind turbines and electric sports cars. A less obvious but potentially potent tool is the fine print of financial regulations. The European Union is embedding environmental goals in standards for banks, money managers, insurers and member states’ public spending plans, in the hope of directing trillions of euros to fund a radical revision of the region’s economy. Skeptics warn that some of the rules are veering too far from initial scientific proposals and could allow for “greenwashing.” There are also still fights ahead over whether natural gas and nuclear power can get green labels.
/bloom.bg/3vqD2W5

Exxon Investors Warned By Activist Fund on Climate Risks: FT
Hari Govind – Bloomberg
Oil and gas producer has rejected criticism from Engine No. 1; Fund concerned over potential value destruction, weak demand
Exxon Mobil Corp. is being warned by activist hedge fund Engine No. 1 it faces an “existential business risk” by pinning its future on fossil fuels as governments move to slash emissions, the Financial Times reported, citing an investor presentation.
/bloom.bg/3vdTUPw

More News
ESG rush opens opportunities for betting against the angels; Unloved companies could deliver higher returns like ‘sin stock’ portfoliosFT

Moving to net zero may not hurt as much as we think; Ending the carbon habit might affect our lives no more than giving up CFCs did after the 1980sFT

New US climate strategy opens up old faultlines with Europe; Biden’s environmental comeback only masks divergent approaches between the two economic powerhousesFT

Carbon price is missing from Biden’s overhaul of climate policy; Industry groups call for pricing alternative to US president’s preference for mandated reductionsFT

Low-income countries play carbon leapfrog in green energy shift; Expansion of Vietnam’s wind and solar farms is proving crucial to powering its economic growthFT

Institutions

StanChart fined in Guernsey over ‘systemic and serious’ compliance failings; Scathing report highlights shortcomings in the bank’s handling of risky clients
Stephen Morris – FT
Standard Chartered has been fined £140,000 by regulators in Guernsey for having “inadequate controls to manage risk” in its trust unit on the island, which handled billions of dollars of suspicious money and failed to properly oversee high-risk, politically exposed clients.
/on.ft.com/3dKONR2

Credit Suisse Bankers Said Greensill Worth $30 Billion: Guardian
Donal Griffin and Tim Ross – Bloomberg
Cameron stood to gain nine-figure windfall on value: report; Greensill imploded last month, just over a year after estimate
Bankers at Credit Suisse Group AG believed that Greensill Capital, the collapsed finance firm now at the center of multiple investigations, was a “once in a generation” company that could be worth $30 billion, according to the Guardian.
/bloom.bg/3npyOen

Red Knights Pair Criticize Man Utd Owners for Super League Plot
Francine Lacqua and Tom Metcalf – Bloomberg
Paul Marshall and Jim O’Neill are Manchester United fans; Glazer family among owners who planned breakaway league
Hedge fund titan Paul Marshall and former Goldman Sachs Group Inc. economist Jim O’Neill have some advice for the Glazer family after their ill-fated attempt to start a breakaway soccer league. Give up control of Manchester United — at a discount. The duo, long-time fans who were part of the Red Knights consortium that tried to buy the team in 2010, called on the American family to sell down their majority stake to a maximum of 49.9% in a letter Friday to the club’s co-chairman Joel Glazer.
/bloom.bg/3nmNg6P

Ark-Style Crowding Risks Spread as Billions Flow Into Green ETFs
Katherine Greifeld – Bloomberg
ICLN’s benchmark expanded amid boom in clean-energy stocks; Gold miner, REIT funds had similar concerns in recent years
Plenty on Wall Street love to hate active ETF big-guns like Ark Investment Management for having too much cash chasing too few stocks — risking market distortions along the way. Yet the relentless flood of money into exchange traded-funds means concentration risk is rising in some of the hottest corners of the passive world like climate-change investing.
/bloom.bg/3tUetQQ

Hedge Fund Manager Accused of Bilking Clients for Race Car Hobby
Daniel Avis – Bloomberg
Federal prosecutors say Andrew Franzone misled investors; He used some fund money to buy hangar for auto collection
Hedge fund manager Andrew Franzone was charged with defrauding investors of almost $40 million in part to fund his lavish lifestyle, including buying an aircraft hangar for his private race car collection. Franzone, 44, was arrested Thursday in Fort Lauderdale on charges of securities and wire fraud, according to federal prosecutors in Manhattan.
/bloom.bg/3gB2gwB

Wells Fargo Has Used Its Lockdown Time Well; By focusing on consumer deposits, Wells Fargo is in position to be one of the biggest winners as rates rise
Telis Demos – WSJ
Wells Fargo’s WFC 2.72% time in lockdown may have at least one benefit: The lender has positioned itself to be a big beneficiary from rising interest rates.
/on.wsj.com/3xlmyQx

UBS, Deutsche Bank to Show If Europe Banks Matched Wall Street
Nicholas Comfort – Bloomberg
Four of biggest securities firms report in the coming days; Trading has helped offset bad loan provisions in pandemic
European lenders are about to show investors if they can ride the pandemic-induced wave of investment banking revenue that propelled U.S. peers to a record quarter. While Credit Suisse Group AG kicked off Europe’s bank earnings season on Thursday, its gains in trading and advising on deals were a sideshow given blow-ups related to Greensill Capital and Archegos Capital Management. This week, four of the biggest securities firms are up.
/bloom.bg/3sPZpCA

Yale endowment model architect Hunter Lewis calls time on it; Co-founder of Wall Street gatekeeper Cambridge Associates says famed investment strategy is ‘backward looking, outdated and worn out’
Aziza Kasumov – FT
The famed university endowment investment model is “backward looking, outdated and worn out,” says Hunter Lewis, the co-founder of Cambridge Associates, a Wall Street gatekeeper advising on half a trillion dollars worth of institutional assets. He should know — he was one of its architects.
/on.ft.com/3njVxbQ

More News
UK and European banks plan to slash business trips after pandemic; Potential blow to travel and hospitality industries as finance sector seeks to make more use of new ways of workingFT

European sustainable ETF flows surpass all others for first time; ESG ETFs took in a record $25.8bn in the first quarter compared to $22.3bn for all other ETFsFT

Insurer NN weighs up sale of EUR300bn asset management unit; Dutch group has come under pressure from activist hedge fund ElliottFT

Active ETFs: Europe has a way to go; As Europe is yet to see the significant uptake in actively managed ETFs that the US market has experienced, Annabel Smith asks why that is and how active ETFs operate.The Trade

Standard Life Aberdeen rebrands as Abrdn; Asset manager has said it plans to change its name from Standard Life Aberdeen to Abrdn this year as part of a rebrand.The Trade

Regions

High-Tech Tools Join the Hunt for Forgotten Mines; In Afghanistan, Angola and Libya, digging out the deadly remnants of war takes nerves of steel and increasingly sophisticated mapping technology.
Amandas Ong – Bloomberg
Compared to the terrain in the rest of Afghanistan, which is often arid and mountainous, the northeast district of Khwaja Ghar is relatively fertile. For decades, residents earned a living by growing and selling rice, wheat, corn and melons. That changed in 1996, when the Northern Alliance — a predominantly Tajik military group — went to war with the ruling Taliban. Homes were abandoned in a hurry, leaving the area mostly deserted.
/bloom.bg/3u1I4YR

In These Swiss Cantons One in Eight People Are Millionaires
Andy Hoffman – Bloomberg
Zug and Schwyz are richest Swiss cantons: SonntagsBlick; There are 62 millionaires for every 1,000 Swiss taxpayers
In the Swiss cantons of Schwyz and Zug one in eight residents are millionaires, SonntagsBlick reported. The Swiss newspaper published the findings Sunday, based on an analysis of government statistics including tax and wealth data. Located in central Switzerland, Schwyz and Zug have lower personal tax rates compared to larger, more densely populated cantons including Zurich and Geneva. Christoph Schaltegger, a professor of political economy at the University of Lucerne, said the examples of Schwyz and Zug show that tax competition between cantons is a good thing.
/bloom.bg/3sMqq9W

Hong Kong-Singapore Air Travel Bubble to Start on May 26
Faris Mokhtar and Will Davies – Bloomberg
Agreement will allow quarantine-free travel between two hubs; Original announcement last week canceled by Singapore
Hong Kong and Singapore will announce a start to their highly anticipated two-way air travel bubble as soon as Monday, according to people familiar with the matter, after multiple delays.
/bloom.bg/3sTLAD9

Total Suspends Mozambique LNG Temporarily on Security Threat
Francois De Beaupuy, Paul Burkhardt, and Borges Nhamirre – Bloomberg
French major declares force majeure at the gas project; Violence in the area has now killed almost 3,000 people
French energy giant Total SE suspended its $20 billion liquefied natural gas project in Mozambique indefinitely due to an escalation of violence in the area, including a March attack by Islamic State-linked militants.
/bloom.bg/2Qo6gWJ

Ex-UniCredit CEO’S SPAC Seeks $606 Million in Amsterdam IPO
Phil Serafino and Sonia Sirletti – Bloomberg
Company to target acquisitions in fintech, fund management; Mustier, De Giorgi to run Pegasus Europe blank-check company
Ex-UniCredit SpA Chief Executive Officer Jean Pierre Mustier’s special purpose acquisition company plans to raise as much as 500 million euros ($606 million) when it lists in Amsterdam this week.
/bloom.bg/3aGfyUS

India Caps Terms for Founder-CEOs in Blow to Richest Banker
Anirban Nag and Rahul Satija – Bloomberg
The Reserve Bank of India has restricted how long a bank’s founder can stay on as chief executive officer, a move that will come as a blow to the world’s wealthiest banker. Founder-CEOs can serve for 12 years, or 15 at the discretion of the regulator, the RBI said in a statement Monday. Lenders have until Oct. 1 to comply.
/bloom.bg/3tREKza

The World Is Too Dry and Hungry to Snub GM Crops, Tech CEO Says
Jonathan Gilbert and Scott Squires – Bloomberg
Biotech leader says a Malthusian disaster could come soon; First GM wheat for consumer markets hangs on Brazil meeting
A world without enough food is just around the corner and can only be averted if humans forget their qualms about eating genetically-modified crops. That’s according to Federico Trucco, the chief executive officer of Bioceres Crop Solutions Corp., a company that’s literally trying to put bread on the table with the controversial technology.
/bloom.bg/3tWMEHu

China Huarong Delays 2020 Results Past April Deadline
John Cheng – Bloomberg
Company says auditors need more time to process results; Huarong missed earlier deadline and cited the same reason
China Huarong Asset Management Co. said its 2020 earnings results would be delayed past an April 30 deadline, potentially further fraying investors’ nerves after mounting worries over potential defaults by the state-owned bad-debt manager caused a meltdown in its bonds.
/bloom.bg/3nkONdE

Total declares force majeure on $20bn LNG project in Mozambique; Africa’s biggest private investment at risk as oil major responds to insurgent attacks
Joseph Cotterill and David Keohane – FT
Total has declared force majeure on its multibillion dollar LNG development in Mozambique after an escalation in attacks by Islamist insurgents forced the mothballing of Africa’s biggest private investment.
/on.ft.com/3gCh0v5

Brexit

Brexit bureaucracy is hitting UK food and drink sales to EU, sector warns
Jim Brunsden – FT
Inconsistent and increasingly burdensome post-Brexit bureaucracy is blighting food and drink sales to the EU, the sector warned as it published analysis showing exports to the bloc were down 40 per cent in February compared with a year earlier. The UK Food and Drink Federation said on Monday that the latest UK government data painted a stark picture of the challenges facing companies, and especially smaller businesses, as they grapple with new veterinary and customs checks introduced on January 1.
/on.ft.com/2S0cT1H

‘It’s a betrayal’: Cornish fishing vote turns against Tories over Brexit deal
Tom Wall – The Guardian
Michael Bosustow rubs his weary eyes as he climbs out of the cabin of his netter, Annie-May, which is tied up on the harbourside in Newlyn, near the western tip of Cornwall. He has been awake for about 30 hours and needs to prepare for another couple of days at sea. But he can still summon the energy to condemn the Conservative party for striking a deal with the EU that he – like many in this tight-knit fishing town – regards as a betrayal.
/bit.ly/3vkPxSV

UK schools speak out against rules on European language teaching
Andrew Jack – FT
UK schools are bracing for a blow to their ability to teach European languages from new post-Brexit immigration rules that raise the costs of hiring hundreds of young EU citizens who help in classrooms each year. Education leaders said that requirements introduced in January which apply for all new recruits, mean they have to pay more and reject or stall applications from students at EU universities, undermining longstanding recruitment practices for language assistants who help pupils with support and conversation practice. Axel Heitmueller, a governor at Judith Kerr Primary School, a bilingual German-English free school in London, said he had been unable to interview 30 applicants who have applied as assistants from German universities for the coming academic year because of the costs and uncertainties of the new system.
/on.ft.com/3dP9afQ

Investment trade body seeks abolition of taxes on UK funds
Chris Flood – FT
The abolition of taxes on UK investment funds is among sweeping post-Brexit reforms the government should consider to ensure the City of London thrives as a global centre for asset management, according to an influential trade body. The Investment Association, which represents the UK’s asset management industry, will call this week for rule changes to encourage the development of innovative new funds that will not suffer any tax disadvantages compared with directly competing European funds. It also wants the government to consider moving to a full exempt tax regime for all UK funds to allow the City to compete more effectively against rival European fund hubs in Dublin and Luxembourg.
/on.ft.com/3nnqtbh

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