First Read

Paris
by John J. Lothian
I love Paris. I just visited this great city twice this fall, and three times in the last 13 months. My heart goes out to the residents of Paris and those impacted by these barbaric acts. I am heartbroken at the loss of human life in these attacks.

Of course the reaction has been to fight violence with violence in the form of air attacks against ISIS, who claimed responsibility. But violence begets violence. We also need to find a way to respond with love. Justice for those who are guilty, but only for them. Let us not turn all refugees or religious groups into guilty parties by correlation.

Correlation does not equal Causation. It is a terrible way to trade and a worse way to treat people.

All of us at John Lothian News offer our thoughts and prayers to our friends in Paris, and to the rest of the city, during this time of remembrance and reflection. God loves you and so do we.

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Europe Exchanges Hold One Minute’s Silence for Paris Victims
Alex Longley – Bloomberg
Stock exchanges in Europe observed a minute’s silence for the victims of Friday’s terror attacks in Paris. Trading continued uninterrupted during the pause.
bloom.bg/1lrgNLl

****** Electronic trading hummed along quietly, but heads were bowed.

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French financial markets to open as normal on Monday- Euronext
Reuters
French financial markets will open as usual on Monday after a wave of deadly Islamist militant attacks in Paris late Friday, stock and derivatives exchange Euronext said.
reut.rs/1j3k7KN

****** Resolute!

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As Paris Terror Attacks Unfolded, Social Media Tools Offered Help in Crisis
By VINDU GOEL and SYDNEY EMBER – NY Times
As the attacks in Paris were still unfolding on Friday night, social media sites lit up as sources for information that went beyond the news.
nyti.ms/1WVyAes

****** If you are not on social media, you are missing a key tool in times of trouble.

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Suspected Paris attacks mastermind Abdelhamid Abaaoud: what we know; Belgian national of Moroccan origin has been on the run since gun battle on suspected Isis cell in eastern Belgium in January
Josh Halliday and Jonathan Bucks – The Guardian
The alleged mastermind of the Paris attacks that killed at least 129 people has been named as the leader of an Islamic State cell who was sought by police earlier this year but remains at large.
bit.ly/1ObuVlu

****** I don’t like his odds of evading escape.

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No City Is Safe While the War Is On in Syria
By Leonid Bershidsky
Although many details concerning the attacks that killed more than 120 people in Paris on Friday night remain unknown, Islamic State appears to have claimed responsibility. France and all other countries taking part in the Syrian conflict should keep in mind Russia’s recent experience with this kind of terrorism: It won’t cease until the epicenter is dealt with.
bv.ms/1PKg5nz

****** We are all safe, but there is always a risk of chaos or terrorism from all kinds of sources. But we life our lives full of hope, peace and joy. We worry about what we can control and not what we can’t.

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World Exchanges Launch Global Financial Education & Literacy Initiative
Press Release
The World Federation of Exchanges, which represents public markets around the world, will start a new global industry initiative to promote financial education and entrepreneurial skills among school children and university students, following an overwhelming response from its members to join a new study group on the topic.
Thirty exchange and clearing house members of WFE have joined up to date.
bit.ly/1PvGya7

***** WFE showing leadership on a very important issue.

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Welcome to Bloomberg Gadfly
John Micklethwait – Bloomberg
I’m delighted to introduce you to Bloomberg Gadfly, our new fast-commentary section. Our goal is to provide rapid, smart takeaways on the day’s most important news on markets, finance, companies and technology.
bloom.bg/1X25sgD

***** I used to be a gadfly until I grew a stinger.

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Sandra Ro, CME Group – Financial Services Disruption: the Rise of Bitcoin and Blockchain
MarketsWikiEducation.com

“There is this big debate as to whether bitcoin is a currency or a commodity. I would argue that it is its own category.”

Sandra Ro is a veteran in the world of bitcoin and blockchain, which simply means that she has been following the cryptocurrency and its underlying technology for over two years. In this MarketsWiki Education talk, Ro takes us through the nascent world of digital currencies, from the volatility of bitcoin, to the rise of blockchain technology and massive investments being made by venture capitalists, banks and other strategic investors. According to Ro, the next few decades are going to be exciting.

Watch the video »
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Lead Stories

ICE beats CME to Trayport with $650m deal – fastFT
FT.com
IntercontinentalExchange has trumped its great rival CME Group to bolster its position in European energy trading markets by agreeing to buy Trayport, an electronic energy trading platform, from BGC Partners for around $650m (£427m) in stock. ICE will take control of an asset that has been owned by BGC, a US interdealer broker, for just seven months when it bought Trayport’s parent company GFI Group for $750m, reports Philip Stafford.
on.ft.com/1lrh2WO

***DA: For a broker, that is one heck of a scalp. BGC essentially legged into the rest of GFI for $100 million. Not a bad day’s work for Howard Lutnick.

Nasdaq in talks to buy Chi-X Canada for about $100 mln – Report
Reuters
Nasdaq Inc is in talks to buy the Canadian unit of alternative equities trading platform, Chi-X Global Holdings, according to a Bloomberg report that appeared on The Globe and Mail.
reut.rs/1X29YvA

End of ‘Too-Big-to-Fail’ Banking Era Endorsed by World Leaders
John Glover, Ilya Arkhipov – Bloomberg
G-20 to back ruleset replacing `bail-outs’ with `bail-ins’
World leaders are set to endorse plans by regulators to end the era of too-big-to-fail banks, forcing them to raise as much as $1.2 trillion, and backed proposals to wrap up sweeping reforms of rules for the global banking system.
bloom.bg/1kY1Tfe

Recruiting Gets Pricier For Wall Street
By JOHN CARNEY – WSJ
The biggest jump in Wall Street pay this year likely went to some of its newest arrivals. The median base salary for Harvard Business School 2015 graduates going into investment banking or sales and trading hit $125,000, up 25% from last year’s level, according to recently released data. Signing bonuses rose 18.75% to $47,500.
on.wsj.com/1X27uNw

Nasdaq says to develop blockchain services in Estonia
BY JOHN MCCRANK – Reuters
Exchange and clearing house operator Nasdaq Inc plans to develop several applications for blockchain, the technology underpinning the digital currency bitcoin, using its Estonian settling and clearing business, a senior Nasdaq executive said on Friday.
reut.rs/1kA8WuM

Japan’s Economy Contracts Again; Economy minister says latest data are unlikely to prompt a big expansion of a planned fiscal stimulus package.
By MITSURU OBE – WSJ
Japan’s economy shrank again in the third quarter, underscoring the challenges Prime Minister Shinzo Abe faces in trying to engineer a sustainable recovery.
on.wsj.com/1kA4YTd

Jury finds Ernst & Young liable over investor’s Madoff losses
BY NATE RAYMOND
Ernst & Young LLP was found liable on Friday by a Washington state jury for the losses of an investment firm from the collapse in 2008 of fraudster Bernard Madoff’s multibillion dollar Ponzi scheme.
reut.rs/1MhC4zR

Steady drip-drip of new rules exposes financial pipework
James Mackintosh – FT
Something is wrong with the plumbing of the world’s markets, says James Mackintosh
Every time I have moved house, I have needed to have the boiler fixed. This year’s move was no different: the pipework was even more atrocious than usual, with the garden tap running hot water and the boiler failing required tests.
on.ft.com/1lriLvn

Closet tracking: ‘Gigantic mis-selling phenomenon’
Madison Marriage – FT
Investors have been overcharged in at least 20 of the world’s largest investment markets, according to new academic research that has intensified calls for regulators to put an end to a systemic mis-selling crisis in the fund industry.
on.ft.com/1kZdXgb

UK regulator cancels enforcement conference
Madison Marriage – FT
The Financial Conduct Authority has cancelled one of its long-running conferences for investment managers that had become an important fixture for the industry. The cancellation of the enforcement conference has come as a surprise to the fund market, which had relied on the event as a guide to the watchdog’s reform agenda over the past decade.
on.ft.com/1H4szW7

These Are the ‘Hall of Fame’ CEOs Who Have Made Their Investors a Fortune; Cashing in on CEOs with a proven track record.
Luke Kawa – Bloomberg
“History has proven time and time again that management matters,” comes the reminder from George Gianarikas, head of global sector and regime strategy at Fundstrat Global Advisors.
bloom.bg/1MhDhau

BrokerCheck Guide to Advisers Is No Yelp; Finra service that provides information on financial advisers could use an overhaul, our columnist says
By NORB VONNEGUT – WSJ
“You wouldn’t order dim sum without checking the reviews,” says an online ad from the Financial Industry Regulatory Authority. After a cartoon mouse scurries from a plate, the video continues, “So why would you invest without checking BrokerCheck? Get important facts about your broker’s professional background.”
on.wsj.com/1MMz7sM

Finance sector builds hitlist of EU rules it wants scrapped
By Mark Cobley and James Rundle – Financial News
Consolidating rules and removing inconsistencies – rather than major cutbacks to red tape – are topping the hit list being compiled by financial trade bodies after the European Commission invited the industry to say where regulation has gone too far.
bit.ly/1j3hkBA

China’s Stock Connect Hasn’t Tapped Into Foreign Money; The lackluster takeup has left Beijing looking for other ways to counteract capital outflows.
By GREGOR STUART HUNTER – WSJ
The launch of a stock-trading link between Hong Kong and Shanghai a year ago was meant to be a landmark in the opening up of China’s financial markets, at a stroke allowing more foreign investors than ever to own shares in Chinese companies.
on.wsj.com/1QGAYAZ

Brazil’s BM&FBovespa offer values Cetip at $2.6 bln
Reuters
BM&FBovespa SA , Latin America’s largest exchange operator, said on Friday it made a non-binding offer for Cetip SA Mercados Organizados, valuing the Brazilian securities clearing house at about 10 billion reais ($2.6 billion).
reut.rs/1ObsQWD

Stock Traders Reap Promotions and Pay as Bond Brethren Laid Low
Camila Russo, Michael J. Moore, Hugh Son – Bloomberg
Equities executives picked to run trading at three big banks
Stock traders’ pay seen up 7%, climbing a third straight year
Stock traders are overtaking their bond-market peers in Wall Street’s ultimate currencies: promotions and pay raises.
bloom.bg/1WVwvzm

Oil Theft Soars as Downturn Casts U.S. Roughnecks Out of Work
Lauren Etter – Bloomberg
Crime rises with unemployment; drill bits and crude disappear
In Cotulla, they siphon by night as 200 barrels go missing
The moon was a waning crescent sliver Sept. 9 when a man emerged from an oil tanker, sidled up to a well outside Cotulla, Texas, and siphoned off almost 200 barrels. Then, he drove two hours to a town where he sold his load on the black market for $10 a barrel, about a quarter of what West Texas Intermediate currently fetches.
bloom.bg/1H4qeKN

How can Europe rebalance finance?
By Ça?atay Bircan – World Economic Forum
The Global Crisis has been a pivotal point for emerging Europe and Central Asia. Before the Crisis, annual economic growth in the region exceeded 6%, several percentage points higher than in the Eurozone and broadly at a par with other emerging markets. The region’s fast convergence towards income levels in advanced European economies was underpinned by sizeable inflows of foreign direct investment (FDI) and cross-border bank lending.
bit.ly/1STs5Dq

Regulatory

EU plans to extend US clearinghouse recognition deadline to avert chaos
MLex
The European Commission is acting to avert a disruption to derivatives markets by extending until June a deadline to recognize that US rules on clearinghouses meet EU standards. The commission is preparing the six-month postponement to give more time for talks with the US Commodity Futures Trading Commission, which aims to win assurance that American rules satisfy Europe’s requirements
bit.ly/1H4nTiU

Esma updates trade reporting standards
Futures & Options World
The European Securities and Markets Authority (Esma) on Friday published an update to the European Markets Infrastructure Regulation (Emir) trade reporting standards, marking the regulator’s latest effort to improve Europe’s much criticised trade reporting regime.
New data fields include: a field to distinguish between transaction and position reporting, the addition of a product identifier and classifier fields, as well as fields to distinguish between variation and initial margin posted.
bit.ly/1lri59o

?Four countries account for half the world’s LEIs, report says
Neil Roland, MLex (subscription required)
Firms in only four countries account for over half the world’s legal entity identifiers, new data show — prompting a regulatory plea for wider adoption of the derivatives risk-tracking tags.
bit.ly/1H4o1yM

FCA chairman: MiFID II delay would give more realistic timeframe
Laura Dew – Investment Week
FCA chairman John Griffith-Jones has said a delay to MiFID II implementation is “not ideal” but a year-long reprieve would provide a more achievable timeframe for firms.
bit.ly/1Mx2cEZ

ASIC to probe mortgage brokers
THE AUSTRALIAN
Pay and ownership structures in the mortgage broking industry that accounts for more than half of the $364 billion lent for residential property will come under intense scrutiny as the Australian Securities & Investments Commission launches an inquiry this month.
bit.ly/1PvM5xo

Exchanges & Trading Facilities

Deutsche Boerse eyes further fintech takeovers: CEO
Reuters
German exchange operator Deutsche Boerse expects to acquire further financial technology companies and to play an active role in the consolidation of the exchange sector, its Chief Executive Officer Carsten Kengeter said on Monday.
reut.rs/1lriwQV

Japan Exchange Group and Taiwan Futures Exchange initiate the product cooperation by listing TOPIX futures in Taiwan
Japan Exchange Group
Japan Exchange Group, Inc. (JPX) and Taiwan Futures Exchange (TAIFEX) today announce their cooperation plan to introduce TOPIX futures based on the leading stock index of JPX to Taiwan investors. The TOPIX futures denominated in New Taiwan Dollar (TWD) is scheduled to launch on TAIFEX in December, 2015, which would be a key milestone to both exchanges.
bit.ly/1SwfnJY

Bucharest Stock Exchange: More Than 200 Participants For The Individual Investors Forum Organized By The Bucharest Stock Exchange
Mondovisione
Bucharest Stock Exchange (BVB) organized on Saturday, November 14, 2015, the 3rd edition of the Individual Investors Forum, after the two editions of the Forum held in Neptun and Cluj-Napoca. For the first time, the format of the Forum was designed to attract the participation of those who are just beginning their investment experience, as well as the already experienced investors, by creating two parallel and specific sections to each category. More than 200 persons interested in investments and managing their personal finances participated at the presentations, interactive sessions and workshops organized.
bit.ly/1kZ7MsA

Hedge Funds & Managed Futures

Generating Alpha with Earnings Date Revisions from Wall Street Horizon
Stuart Farr – Deltix
As a software and services firm focused on quantitative research and trading solutions, we are always interested in alternative ways to apply quantitative techniques for trading and investment purposes. This fall, we decided to look at company earnings from a different perspective. This time, we looked at how calendar events affect forecasts: specifically, we wanted to test whether earnings announcement date revisions can be used for predicting future prices in a manner that could be profitably traded upon.
We reviewed the recent research papers of Joshua Livnat and Eric So, both of whom look at whether changes in the earnings announcement dates can be used to generate returns.
bit.ly/1lrhSTv

Legg Mason launches US equity sustainability fund; Run by subsidiary ClearBridge
Anna Fedorova – Investment Week
Legg Mason Global Asset Management has launched a socially responsible US equity fund to be run by its affiliate ClearBridge Investments.
bit.ly/1WVvd7n

Investors hit a Chinese wall of uncertainty
By Rachael Revesz – Financial News
A volatile year for mainland Chinese stocks, including the suspension of shares and government intervention in domestic equity markets, has cast doubt on the future of exchange-traded funds that replicate indices tracking Chinese companies.
bit.ly/1Qqavs1

As Fears of a Meltdown Fade, Money Managers Have Other Worries
By E.S. BROWNING – WSJ
Stocks last week suffered their first down week in the past seven. The Dow Jones Industrial Average and the S&P 500 both are down for the year, reinforcing concerns that the market’s struggles aren’t over.
on.wsj.com/1X27Svt

Sorry Ted Cruz, The Gold Standard Really Isn’t A Good Idea
Tim Worstall – Forbes
At the Republican debate Senator Ted Cruz suggested that perhaps America should move back to the gold standard. No, this isn’t a good idea, it’s a terrible one, around and about as terrible as Bernie’s idea of a $15 minimum wage.
onforb.es/1MMwRBB

Banks & Brokers

BGC and GFI Announce Agreement to Sell Trayport to Intercontinental Exchange for $650 million
PRNewswire
BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets, and its majority-owned division, GFI Group Inc. (OTC: GFIG) , a leading intermediary and provider of trading technologies and support services to the global OTC and listed markets, today announced that GFI has entered into an agreement to sell its Trayport business to Intercontinental Exchange, Inc. (NYSE: ICE) for $650 million.
prn.to/1lrh5SG

Thomson Reuters Streamlines Decision-Making Workflow for Buy-Side Equities Traders with new Eikon App
Globe Newswire
Using Eikon’s search capability, buy-side traders can now look up stock-specific data to quickly determine which broker or trading option best meets their needs. The new app is designed to quickly present the multiple pieces of information they require in one screen. For each security, the dashboard includes items such as a personalized 30-day trade history from Autex Trade Route, top StarMine analyst rankings and additional data from Autex including the current day’s active Indications of Interest and broker rankings by trade volumes.
bit.ly/1PvGF5s

Swiss banks aim to benefit from UK’s EU reform push
Ralph Atkins in Geneva – FT
The UK campaign to reform the European Union could help Switzerland resolve its own clashes with Brussels, which are hampering its banks’ access to European markets, says the head of the Swiss bankers association.
on.ft.com/1Mx5nfZ

ECB Finds $1.87 Billion Capital Gap in Stress Test of Nine Banks
Jeff Black – Bloomberg
Shortfall of 1.4 billion euros found at Portugal’s Novo Banco
ECB says other banks have already raised necessary funds
The European Central Bank found capital gaps totaling 1.74 billion euros ($1.87 billion) among nine lenders it tested, with the biggest hole at Portugal’s Novo Banco SA.
bloom.bg/1Nznhyx

Goldman Sachs Promotes More Women Than Ever—But It’s Still Not Enough
by Valentina Zarya – Fortune
The bank’s newest class of managing directors is 25% female.
Slow clap for Goldman Sachs, whose newest class of managing directors consists of 106 women, out of a total 425 employees who were promoted.
for.tn/1j3kVj5

Clearing & Settlement

EU regulators give nod to more clearing houses – fastFT
FT.com
Europe has recognised five more countries as having “equivalent” rules to oversee clearing houses, as Brussels steps up efforts to smooth cross-border activity in derivatives. The European Commission late on Friday said it had adopted equivalence decisions for central counterparties in Canada, Switzerland, South Africa, Mexico and South Korea, FT Trading Room editor Philip Stafford reports.
on.ft.com/1lrikkz

New SWIFT study proposes hybrid model for real-time retail payment systems
The Asset
Rapid expansion of e-commerce, along with rising domestic and cross-border payments, has fuelled the demand among financial institutions for a cost-effective means to expedite clearing and settlement of low-value retail payments. Traditionally, retail payments have made extensive use of interbank netting systems, in which payments are accumulated for end-of-day settlement.
bit.ly/1lrilFd

Real-time payments catching fire in Asia
Enterprise Innovation
The McKinsey report “The Global Payments Industry: Healthy Growth, Shifting Drivers” says the global payments industry had an extraordinary year in 2014 with 2014 revenues reaching US$1.7 trillion in 2014, growing 9% from the previous year. The report estimates that in 2014 global payments accounted for anywhere from 38 to 40% of total bank revenue and predicts continued healthy growth prospects. McKinsey expects annual global payments revenues to increase at a relatively stable annual rate of 6% during the next five years, exceeding US$2 trillion by 2020
bit.ly/1lrioRl

Indexes & Products

New Deka bond index ETF launched on Xetra; ETF tracks European government bonds with highest 5-year yield
Deutsche Börse
Deutsche Börse Cash Market: A new bond index ETF issued by Deka Investment GmbH was launched and available for trading on Xetra and Börse Frankfurt since Monday, 16th.
bit.ly/20WyPFC

Benchmark reshuffles to feed into livestock futures pricing
Emiko Terazono – FT
After being blamed for causing everything from cancer to global warming, cattle and hog breeders have finally had a piece of good news. The impending reshuffle of the two main commodity benchmarks — the S&P GSCI and BCOM — mean that the futures contracts for livestock will see $780m worth of buying by fund managers, as both indices have increased the weightings of cattle and hogs.
on.ft.com/1HOV1Ly

ETF industry in India over the years
Indexology – S&P Dow Jones Indices
The mutual fund industry can again be divided into active funds versus index funds, which is a passive investment style. In the active space the manager makes active investment decisions on stocks in an effort to generate alpha. However in an index fund, the manager simply attempts to replicate an index with minimum tracking error. The benefit of index fund is lower expense ratio due to lower management fees. As the markets evolved, investors realized that mutual funds, whether active or index, are not tax efficient since the capital gains realized on the sale of fund investments, including to meet redemption requests, is distributed across all the existing investors based on fund ownership.
bit.ly/1lrivwh

MSCI adds 14 overseas-listed Chinese firms to emerging market index
CER
MSCI will add 14 overseas-listed Chinese firms – including Alibaba Group and Baidu – to its influential MSCI Emerging Market index on December 1, Reuters reported, citing a statement from the company. Analysts estimate the rebalancing could trigger up to US$70 billion in net flows into the group of stocks over the next half year and bump up China’s weight in the index by three percentage points to 26% in the process.
bit.ly/1lriybz

Eurex Exchange’s MSCI news – November 2015
Eurex
Eurex Exchange’s MSCI derivatives experienced their highest non-roll month volume to date. In total more than 120,000 contracts were traded in October 2015.
bit.ly/1LhRyQE

Technology

Orc provides low-latency market access for China index futures trading
MarketWatch
Orc, the global market leader in electronic trading technology for listed derivatives, today announced the availability of a market adapter to the China Financial Futures Exchange (CFFEX). This new Orc market adapter connects exchange members and trading firms to the CFFEX platform for derivatives trading.
on.mktw.net/1PvGOFZ

Celoxica Expands Market Access And Data Solutions For Low Latency Fixed Income And Rates Trading
MondoVisione
Celoxica, a leading provider of accelerated market data, order entry and pre-trade risk solutions for the electronic trading community, today announced the extension of its Celoxica Feed Handler and Gateway portfolio to further support Interest Rate Markets by including the BrokerTec and Nasdaq eSpeed venues, delivering small footprint, high message volume processing at ultra-low latency.
bit.ly/1Mx1xmZ

Buy-side workflow upgraded for Thomson Reuters’ Eikon
By John Bakie
New workflow app first in a series of buy-side dashboard improvements for Eikon trading platform.
bit.ly/1QGBij7

Tech Companies Step In To Help After Paris Attacks; Airbnb asked Paris hosts to offer free housing to those in need, and Facebook enabled its Safety Check tool.
Alexander C. Kaufman – Business Editor, The Huffington Post
Droves of companies paid tribute this weekend to the victims of the attacks in Paris, brandishing their websites and social media profiles with the blue, white and red of the French flag. Chief executives offered words of support.
huff.to/1Qpubwg

ASIC calls for ‘two-tier’ regulation of fintech sector
Mortgage Business
ASIC chairman Greg Medcraft has advocated a two-tier regulatory system that encourages innovation via ‘light-touch’ oversight of fintech start-ups. Speaking at a Finsia ‘Regulators Panel’ event in Sydney, Mr Medcraft pointed out that innovative business models often do not “fit” into existing regulatory frameworks.
bit.ly/1lriBUR

Enforcement

U.K. Serious Fraud Office Charges 10 Individuals Over Euribor; The defendants will make their first appearance at Westminster Magistrates Court in January
By MAX COLCHESTER and GILES TURNER – WSJ
The U.K.’s Serious Fraud Office Friday said it has launched criminal proceedings against 10 Deutsche Bank AG and Barclays PLC employees accused of manipulating the euro interbank offered rate, or Euribor.
on.wsj.com/1NzjgKt

Ten Ex-Deutsche Bank, Barclays Traders Charged in Euribor Probe
Suzi Ring – Bloomberg
Ex-Deutsche Bank trader Christian Bittar among those charged
An eleventh trader may be charged as soon as next week
U.K. prosecutors charged 10 former Deutsche Bank AG and Barclays Plc employees with manipulating a benchmark interest rate, including high-profile trader Christian Bittar, with an 11th facing indictment as soon as next week.
bloom.bg/1O7vYmq

Barclays to pay $120 mln in U.S. Libor litigation-lawyers
By Jonathan Stempel – Reuters
Barclays Plc agreed to pay $120 million to settle private U.S. litigation accusing it of conspiring with rivals to rig the benchmark interest rate known as Libor, lawyers for the plaintiffs said on Friday.
reut.rs/1WVzRSS

Head of Stock Trading Operation Indicted in Cross-Country Scheme to Trade on Inside Information; Traded on Information in Violation of Confidentiality Agreements, Netting More Than $3.9 Million During Three-Year Scheme
U.S. Attorney’s Office
A federal grand jury today indicted the owner and operator of a stock trading operation for his alleged participation in a multi-year insider trading scheme that netted more than $3.9 million in illicit profits, U.S. Attorney Paul J. Fishman announced.
1.usa.gov/1Yd1e8e

Clerk Admits Stealing Material Information from Prominent Law Firm for Use in $5.6 Million Insider Trading Scheme
U.S. Attorney’s Office
The former managing clerk for a prominent, international law firm today admitted stealing sensitive, confidential information for use in a five-year insider trader scheme that yielded net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
1.usa.gov/1Yd1fZO

Hired-gun hacking played key role in JPMorgan, Fidelity breaches
BY JIM FINKLE AND JOSEPH MENN – Reuters
When U.S. prosecutors this week charged two Israelis and an American fugitive with raking in hundreds of millions of dollars in one of the largest and most complex cases of cyber fraud ever exposed, they also provided an unusual look into the burgeoning industry of criminal hackers for hire.
reut.rs/1X2azxc

Environmental & Energy

Oil Slump May Prompt U.A.E. Spending Cuts, Central Bank Says
Arif Sharif, Matthew Martin – Bloomberg
The United Arab Emirates may cut government spending as a result of the slump in oil prices, Central Bank Governor Mubarak Rashed Al Mansoori said.
bloom.bg/1Mx3akC

Climate Spending Surges 18% in Year Before Paris Deal Planned
Alex Morales – Bloomberg
Investment reached $391 billion in 2014, researcher says
Most funds went to renewables such as solar and wind
Global spending on projects to cut greenhouse gases and reduce vulnerability to climate change surged 18 percent last year as governments and investors stepped up green investments, the Climate Policy Initiative said.
bloom.bg/1RYRr1O

Large wind capacity in China tops 110.6 GW at end-Oct 2015
by Militsa Mancheva – See News
China’s National Energy Administration (NEA) said Monday that the country’s large-scale wind power capacity has reached 110,610 MW as of the end of October 2015, which is 25.6% more than a year back.
bit.ly/1RYScbh

Gates Foundation would be $1.9bn better off if it had divested from fossil fuels; Analysis of the Bill and Melinda Gates Foundation health charity, and 13 other major funds, reveals moving investments out of coal, oil and gas and into green companies would have generated billions in higher returns
Damian Carrington – The Guardian
The Bill and Melinda Gates Foundation would have had $1.9bn (£1.3bn) more to spend on its lifesaving health projects if it had divested from fossil fuels and instead invested in greener companies, according to a new analysis.
bit.ly/1LhLhEA

UK Climate Investments to pour GBP 200m in India, Africa
by Plamena Tisheva – See News
A green joint venture between the UK government-backed Green Investment Bank Plc (GIB) and the Department of Energy and Climate Change (DECC) will invest up to GBP 200 million (USD 304m/EUR 284m) in India and Africa.
bit.ly/1NzkgOB

California governor extends water conservation order
Reuters
California Governor Jerry Brown has extended his executive order requiring residents to conserve water as the state readies for a fifth year of drought.
reut.rs/1N6AVyC

Climate change could bring tropical disease epidemics to Britain, health expert warns; Paris summit must recognise spreading health danger posed by global warming, says Wellcome Trust director
Robin McKie – The Guardian
Epidemics of dengue fever and other tropical diseases could soon affect people in Britain because of global warming, one of the world’s leading medical experts has warned. Jeremy Farrar, director of the Wellcome Trust, said he also believed the planet is already being affected by many other serious health threats triggered by climate change – including malnutrition and deaths from air pollution.
bit.ly/1MhDr1u

Asia-Pacific

Citic knew derivatives risk, hearing told
Jennifer Hughes in Hong Kong – FT
It was HSBC that first proposed the derivatives that lost Citic $2bn in 2008 on mistimed Australian dollar bets, a tribunal heard on Monday, as the Chinese conglomerate and five directors faced a market misconduct hearing for not sooner disclosing the losses.
on.ft.com/1MR3U3l

Shotgun Weddings and Japan Refineries
By David Fickling – Bloomberg
Love is in the air among Japan’s oil refiners.After Idemitsu Kosan and Showa Shell agreed to a merger last week, the country’s two biggest refiners — JX Nippon Oil & Energy and TonenGeneral — are in talks about doing the same, Nikkei reported earlier today. The deals would put almost 80 percent of the nation’s refinery capacity in the hands of two companies, leaving Cosmo Oil, Taiyo Oil and Mitsui Oil as the only minority players.
bloom.bg/1HTf3iO

What’s Next for the Yuan After Joining the IMF’s Currency Club?
Bloomberg News
Proposal’s need for board approval brings politics into play
Invesco’s Hu sees increased flows into onshore yuan market
The yuan is set to join the IMF’s exclusive club of reserve currencies, with the fund’s staff supporting its inclusion after months of persuasion and policy changes by China.
bloom.bg/1MgKura

China capital flows turn positive on improved renminbi outlook
Gabriel Wildau in Shanghai – FT
Capital flowed into China last month for the first time since an unexpected currency devaluation in August shook investor confidence in the economy, easing fears over financial stability following an unprecedented bout of outflows.
on.ft.com/1SwmIJp

Frontier Markets

Emerging Markets Slide as Paris Attacks Intensify Risk Aversion
Maria Levitov, Ian C Sayson – Bloomberg
Airline shares tumble on concern tourist travel will slow
Shares in Hong Kong decrease 2% on margin-trading curbs
Emerging markets bore the brunt of a clamor for safety as Europe’s worst terror attack in more than a decade compounded concerns over deteriorating economic growth and looming U.S. interest-rate increases.
bloom.bg/1kZ9YjM

Turkey a Rare Bright Spot in Islamic Finance’s Forgettable Year
Daria Solovieva – Bloomberg
Industry development was left in limbo after June election
Turkish Shariah-compliant banking has 10-fold growth potential
In a year to forget for the Islamic finance industry, this month’s Turkish election may prove the high point.
bloom.bg/1Qq8rAq

Gold monetisation pace fails to find the Midas touch; Scheme aims at monetizing idle gold estimated around 22,000 tones with Indian households and temples
Rajesh Bhayani – Business Standard
The gold monetisation scheme announced by Prime Minister Narendra Modi on November 5 is off to a tepid start because the infrastructure for the scheme is not fully in place and banks are awaiting clarifications from the government.
bit.ly/1ONeJtP

Miscellaneous

Clinton’s Wall Street Donors Say More Than 9/11 Built Their Bond
Max Abelson – Bloomberg
Bernie Sanders blasts her Wall Street funding during debate
Former N.Y. senator’s terrorism reference gets mixed reaction
The venture capitalist and Hillary Clinton bundler Alan Patricof was sitting in the audience at Saturday’s Democratic debate in Iowa when the former New York senator started raising her voice and pointing with her right hand.
bloom.bg/1QGCL9f

Hillary Clinton’s Extraordinary Suggestion To Make Wall Street More Expensive For Everyone
Tim Worstall – Forbes
I realise that high frequency trading does manage to get a lot of panties bunched but even so it’s extraordinary, to me at least, to see the likely next President of the United States campaigning on the idea that Wall Street should be made more expensive for everyday folk to use. But that is indeed what Hillary Clinton is suggesting should happen. As such it illustrates nicely the vast gap between what the public, even the Very Serious People, believe about economics and what is true about economics. Of course, the same is true over what the public believes about physics and what is true about physics but no one campaigns for election on their misunderstandings of physics. But as the public proclamations of just about every candidate this time around (the last one to have been properly sound on the subject was probably our own Steve Forbes) show, that’s the way that politics works these days. Misunderstand the economic point then campaign to mess it up further.
onforb.es/20WBY8G

What do millennials, Gen Xers, boomers share? Leadership values
Rex Huppke – Chicago Tribune
Survey finds millennials, Gen Xers and boomers have strikingly similar views on leadership. Look out, non-millennials. The new generation has us surrounded.
Generation Xers and baby boomers recently found out that millennials make up the largest share of the American workforce. These whipper-snappers are no longer just the colleagues of us older-generation folks, they’re becoming, in many cases, our managers and bosses.
trib.in/20WDkQF

Trump’s “deep lack of knowledge of economics”
by Joshua M Brown, The Reformed Broker
Barron’s made Donald Trump’s shocking degree of economic illiteracy its cover story this weekend. Trump says China doesn’t play fair in trade because it’s manipulating the yuan lower, but in real life it’s spending billions in order to push the yuan higher. Either the candidate understands this and is deliberately lying to drum up populist support, or he doesn’t understand this, in which case he is unfit to even discuss the topic.
bit.ly/1lriZ5E

Sanders, O’Malley Try to Cast Clinton as Candidate of Wall Street; After a moment of silence to honor the victims of the Paris terror attacks, front-runner Hillary Clinton found herself on the defensive.
Margaret Talev – Bloomberg
In a heartland presidential debate Saturday that was overshadowed by an act of terrorism across the globe, Democratic presidential candidates focused on countering the Islamic State before diving into sharp exchanges on Wall Street regulation, campaign finance, and guns.
bloom.bg/1NWhnvR

Exclusive: Commodity trader Cargill restructures, cuts jobs – sources
BY SARAH MCFARLANE – Reuters
Cargill Inc [CARG.UL], one of the world’s largest privately held corporations, has launched a restructuring that includes job cuts, one company source and four industry sources said on Friday, the latest casualty of a downturn in the farm economy.
reut.rs/1LhPLuO

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