London’s Centuries-Old Insurance Market Investigates Its Slavery Role

Oct 28, 2020

First Read

$9,641/$300,000 (3.2%)
Anthony George Gero and Tom Price

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Hits & Takes
JLN Staff

FIA President and CEO Walt Lukken personally invites you to join FIA for the virtual Futures and Options Expo this November 10-12. Expo-V brings you three days of programming, including keynote sessions with University of Maryland vaccinologist Dr. Kathy Neuzil, SEC Commissioner Hester Peirce, revered Silicon Valley journalist Kara Swisher and CFTC Chairman and Chief Executive Heath Tarbert as well as 1:1 interviews with exchange leaders from Cboe Global Markets, CME Group, Eurex, ICE and Nasdaq. Expo-V features a robust exhibit hall with more than 20 exhibitors and 10 fintech start-ups in the Innovators Pavilion. This is your opportunity to connect with the cleared derivatives community. Learn more at FIA.org/expo and register.

John Mulaney is going to host Saturday Night Live next week. He is a friend of Bobby Otter, the son of CBOT member Bob Otter. John also worked one summer on the floor of the CBOT for Bob as a clerk in the soybean pit. He has been a writer for SNL and has a short skit he did about playing the song “What’s New Pussycat?” 21 times on a jukebox. Bob Otter shared this with me after reading the Bill Gross Gilligan’s Island theme song story yesterday in JLN. I would like to suggest that John Mulaney would make an excellent choice for a comedian the next time the CME Group holds the Pinnacle Awards dinner.

Tom Price, my former employer at The Price Futures Group, Inc. and the legendary George Gero, Mr. Metals, are the latest to donate to the JLN MarketsWiki Education GoFundMe campaign. Tom is now retired in South Carolina with his wife, Nancy. George is a Managing Director – Financial Advisor at the Senior Consulting Group at RBC Wealth Management, among a myriad of other responsibilities. He was inducted into the FIA Futures Hall of Fame in 2019. Thank you to Tom and George and all who have given and all who have yet to give. Support our efforts to preserve industry history by contributing to our GoFundMe campaign.

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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Reminder – The Women in Listed Derivatives (WILD) Gives Back trivia event is tonight.
Auction hours have been extended to Friday Oct 30 at 5pmCT. The online auction is live and open to everyone, and 100% of the proceeds from the auction and the trivia event go to fund Women in Finance. You can go here to register for the event and here to find out more about the auction.~SR

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The Algorithm That Could Get You Back in the Office; How open is too open? To help employers reduce outbreak risks after bringing workers back, new tech tools can juggle schedules and map office hot spots.
Andrew Zaleski – Bloomberg
In January, Nick Eurek was ready to reveal the product he’d spent three years developing. He’s the co-founder of Maptician, a small, Georgia-based firm that started 2020 prepared to sell its new analytical tool that maps the floor plan of an office and, on a mobile app, shows employees in real-time where people are sitting. The idea was that this could help workers maximize their time with colleagues.
/bloom.bg/3jDdP4h

*****The formula begins like this, #if there is an airborne pandemic, don’t go to the office.~JJL

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Turkey Bars Health Workers Quitting as Covid Deaths Near 10,000
By Selcan Hacaoglu – Bloomberg
Turkey’s government barred public health workers from quitting or retiring, as a surge in coronavirus cases brings the death toll near 10,000. The ban applies to doctors, nurses and other health workers in the public sector and is meant to ensure an uninterrupted fight against Covid-19, the Hurriyet newspaper reported Wednesday, citing an order from the Health Ministry.
/bloom.bg/3jyYpy4

*****Draft them in the army, then you can shoot them for disobeying an order.~JJL

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Tuesday’s Top Three
Our top story Tuesday was a tiny bit out of left field: the Los Angeles Times’s Investor Bill Gross accused of blaring ‘Gilligan’s Island’ song on loop to torment neighbor. Second was The Guardian’s How does one of the world’s biggest pork firms go bust during a boom?, with some interesting insights into the politics of the pork industry. Third was Loeffler and Sprecher’s $31 million year, from The Atlanta Journal-Constitution.

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MarketsWiki Statistics

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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

London’s Centuries-Old Insurance Market Investigates Its Slavery Role; Lloyd’s of London launches an internal investigation in response to pressure from Black employees and racial-equality campaigners
Simon Clark – WSJ
Lloyd’s of London has launched an internal investigation into its role in the trans-Atlantic slave trade in part to determine whether it is on the hook to pay reparations. The 332-year-old insurance market is responding to pressure from Black employees and racial-equality campaigners to open up about the slave trade in the 18th and 19th centuries. Lloyd’s Chairman Bruce Carnegie-Brown said he is talking to academic and cultural institutions that can help to investigate its archive.
/on.wsj.com/3eaSnCz

Ant’s $34bn IPO to propel Shanghai’s bourse past global rivals; Exchange set for best year for offerings since 2007 as Beijing seeks to build up tech sector
Hudson Lockett and Mercedes Ruehl – FT
Ant Group’s $34bn share sale is set to catapult Shanghai’s bourse to the top of the global rankings in terms of cash raised in 2020, underscoring the rising might of China’s capital markets as tensions with the US simmer.
/on.ft.com/3e0SDUI

World’s Biggest ETF Is Losing Cash Faster Than Any of Its Peers
Katherine Greifeld – Bloomberg
SPY has suffered outflows of $33 billion so far this year; Investors likely flocking to cheaper alternatives: Geraci
The world’s biggest exchange-traded fund is losing cash at a faster pace than any of its peers as investors seek lower fees amid a wave of cost cutting. Traders have yanked $33 billion from SPDR S&P 500 ETF Trust (SPY) so far this year, the most in the industry, according to data compiled by Bloomberg. While the exodus was concentrated in February and March, when the coronavirus pandemic roiled global markets, it put the $294 billion fund tracking the U.S. stock benchmark at odds with the broader equity ETF universe — which has lured $119 billion in 2020.
/bloom.bg/3jBVuo0

China Loosening Yuan Controls Signals Appreciation Will Endure
Tian Chen – Bloomberg
Removing counter-cyclical factor was latest move from Beijing; Foreign inflows help underpin currency, paving way for reform
China has taken more steps this month to loosen its grip on the yuan than at any time since curbs were imposed in the aftermath of a chaotic devaluation in 2015. Although the changes were widely interpreted as an attempt to slow the currency’s appreciation, they have been deployed without significantly weakening the yuan or destabilizing global financial markets. Instead, the result has been a steady Chinese currency that remains near a two-year high — potentially emboldening officials looking to push ahead with yuan reform.
/bloom.bg/3e564CY

Bitcoin Faithful Say This Time Is Different After Price Surge
Casey Wagner – Bloomberg
Cryptocurrency climbs to highest level since January 2018; Interest from traditional financial groups cited as a catalyst
Bitcoin advocates say this time will be different as the virtual coin surges back to price levels last seen in the wake of the cryptocurrency market collapse almost three years ago. The largest digital coin has jumped more than 25% this month and grazed $13,858 on Wednesday, the highest since January 2018. It’s been quite a ride since the bubble burst: From an all-time high in December 2017 of nearly $20,000, Bitcoin tumbled to as low as $3,136 within a year.
/bloom.bg/2TtvVeo

The City starts to confront its role in the slave trade; A walking tour of London’s financial district explores an uncomfortable legacy
Jonathan Guthrie – FT
There had to be one somewhere: a slavery-related monument that is not a public embarrassment. “Gilt of Cain”, which commemorates the abolition of the transatlantic trade within the British empire, stands in a quiet courtyard near Leadenhall Market. It is the poignant last stop in a walking tour exploring the City of London’s dual role as a financier of slave industries and a hotbed of abolitionism.
/on.ft.com/3kwtFip

Wall Street Corners Cancer Care on Florida’s Paradise Coast; Investors roll up doctor’s practices across the U.S., and regulators worry about competition.
Sabrina Willmer – Bloomberg
The Florida city of Naples is known for its abundance of white-sand beaches, restaurants, and resorts. But when it comes to cancer care, some residents may find themselves with little choice. A single company, GenesisCare, operates all four of the city’s radiation treatment centers.
/bloom.bg/2TvtFn5

The E-Commerce Boom Offers a Lifeline for Oil
Alex Longley, Jeffrey Bair, and Javier Blas – Bloomberg
Large truck use hits pre-pandemic levels in several countries; Growth in e-commerce, inventory restocking boosts volumes
Look across the street from your home-office window: chances are you will see a delivery van. Trucks from Amazon.com Inc. and other e-commerce companies have become ubiquitous during the pandemic. In much of the industrialized world, an ever-growing number of vans, trucks, trains and ships are hauling everything from desks to smart phones as consumers turn to online shopping and companies re-stock their supply chains after months of disruption.
/bloom.bg/3kCSjOi

City Locked Down for Three Months Has Bleak Lessons for the World
Sybilla Gross, Jason Scott, and Jason Gale – Bloomberg
Melbourne crushes infection curve but with huge economic cost; Lockdown saw 1,200 jobs lost a day, prolonging recession
As countries across the globe grapple with the prospect of renewed lockdowns, the Australian city of Melbourne offers a stark lesson on the costs of bringing the coronavirus under control. The city of 5 million people on Wednesday emerged from one of the world’s strictest and longest lockdowns that shuttered businesses and confined residents to their homes for more than three months.
/bloom.bg/3jJnqXv

The Fed Is Really Running Out of Firepower
Central bank officials aren’t bluffing when they say that only government spending can rescue the U.S. economy.
Bill Dudley – Bloomberg
No central bank wants to admit that it’s out of firepower. Unfortunately, the U.S. Federal Reserve is very near that point. This means America’s future prosperity depends more than ever on the government’s spending plans — something the president and Congress must recognize.
/bloom.bg/34ydcoo

SEC Corporation Finance Director William Hinman Plans to Step Down This Year; Exit is part of a normal wave of departures from regulatory agencies at the end of a presidential term
Paul Kiernan – WSJ
The Securities and Exchange Commission official who writes rules for initial public offerings and other corporate disclosures said Tuesday he planned to step down later this year, part of the usual wave of departures from federal regulatory agencies at the end of a presidential term.
/on.wsj.com/3kEVrJu

Division of Corporation Finance Director Bill Hinman Announces Intention to Conclude His Tenure Later This Year
SEC
The Securities and Exchange Commission today announced that William H. Hinman, Director of the SEC’s Division of Corporation Finance, plans to leave the SEC later this year.
/bit.ly/3jCgATe

Trump Weighs Executive Order to Show Support for Fracking; Order is still under discussion and aimed at energy industry in battleground states like Pennsylvania
Timothy Puko – WSJ
President Trump is considering issuing an executive order mandating an economic analysis of fracking, according to senior administration officials, who say the initiative is aimed at highlighting his support for the energy industry in election battleground states such as Pennsylvania.
/on.wsj.com/3e3MWoY

Cheese Makers Reel as Pandemic Sows Market Chaos; Restaurants limit buying as producers ask ‘How am I going to sell all this Parmesan?’
Jesse Newman and Kirk Maltais – WSJ
The U.S. cheese industry is reeling from seven months of chaos as the coronavirus pandemic causes upheaval in prices and demand. Prices for cheeses from mozzarella to cheddar hit near-record highs this month, but cheese makers are on edge after sharp swings in demand have thrown their production plans into disarray. Those soaring prices have also scrambled planning for buyers from pizza chains to grocery stores, prompting restaurants to limit purchases to avoid getting stuck with expensive inventories if the pandemic slashes business again.
/on.wsj.com/2TKgbnD

China’s Failing Small Banks Are Becoming a Big Problem; With its ad hoc rescues and bailouts of regional lenders, the country’s central bank risks fueling a larger financial crisis.
Anjani Trivedi and Shuli Ren – Bloomberg
As Chinese official slogans go, “one bank, one policy” may lack the revolutionary fervor of “let a hundred flowers bloom” or “smash the four olds.” But don’t be fooled by the bureaucratic banality of this mantra recently adopted by China’s banking regulator. Its patchwork one-bank, one-policy approach to a cascade of regional bank failures could trigger a wider financial crisis in the world’s second largest economy.
/bloom.bg/2G6tWJT

Cuomo Seeks to Keep 95% of U.S. Out of New York as Virus Rages
Keshia Clukey – Bloomberg
New York adds California to list of states on quarantine order; Governor tries to limit increase in cases after first recovery
New York Governor Andrew Cuomo is seeking to keep 95% of the U.S. out of New York as the coronavirus rages across the nation. The governor on Tuesday added California, the most populous U.S. state, to a list of 39 states whose residents must quarantine 14 days if they visit New York. Massachusetts, meanwhile, joins three other neighboring states that technically qualify for the quarantine, but instead are being asked to discourage travel to the Big Apple.
/bloom.bg/2HHvNFC

Coronavirus

Nurses Are at High Risk for Covid Among Health Workers, C.D.C. Says; A new study looked at the high numbers of health care workers hospitalized during the early months of the pandemic.
Reed Abelson – NY Times
Among health care workers, nurses in particular have been at significant risk of contracting Covid-19, according to a new analysis of hospitalized patients by the Centers for Disease Control and Prevention. The findings were released Monday as a surge of new hospitalizations swept the country, with several states hitting record levels of cases.
/nyti.ms/3jBirrF

Pandemic Is Ray of Light for Solar Industry; Heftier home electricity bills, outages and low interest rates are all helping residential solar companies sell their products to homeowners
Jinjoo Lee – WSJ
Between Covid-19 and natural disasters, Mother Nature threw Americans a curveball in 2020. Solar companies are hitting it out of the park. Solar panels and battery systems have renewed appeal for people spending far more time in their homes and less certain about the lights staying on. Meanwhile, interest rates have never been lower, making it cheaper for capital-intensive businesses such as Sunrun RUN -2.91% and Sunnova Energy International NOVA 1.23% to raise funds.
/on.wsj.com/3jBfQhp

Severe Covid-19 Cases Leave Lasting Effects, Including on Mental State; A 40-year-old man who pulled back from the coronavirus brink says problems linger—’Sometimes I am afraid to close my eyes’
Suryatapa Bhattacharya – WSJ
This spring, Raju Sarker was in respiratory failure. His kidneys had shut down and his blood pressure was falling. Days from death in a Singapore hospital, with his mother back home in Bangladesh saying prayers, something inexplicable happened: He pulled back from the brink. That was seven months ago. Since then, Mr. Sarker has struggled to regain his full health. The 40-year-old, who worked in Singapore laying internet lines to support his family, has long been free of the coronavirus. But he said his doctors tell him he still isn’t well enough to leave the country and return to his family.
/on.wsj.com/34xIdsz

European countries prepare tougher Covid-19 social curbs; Stock markets slide as Germany and France poised to tighten restrictions
Michael Peel – FT
European countries are poised to tighten coronavirus crisis restrictions as soaring infection rates stoke alarm across the continent, sending stocks to their lowest level since May. Angela Merkel, Germany’s chancellor, is due to hold talks on Wednesday with premiers of the country’s 16 states about proposed new curbs, while France’s president Emmanuel Macron will give a televised address to the nation in the evening.
/on.ft.com/2G6h5Yh

Germany’s secret weapon in fight against virus misfires; Local health authorities, first line of defence in initial stage of pandemic, come under strain
Guy Chazan – FT
Wolfgang Hierl is beginning to feel he is losing control. “You sense the avalanche is coming, and you’re standing there with your arms stretched out trying to stop it,” he said. Mr Hierl is head of the local health authority in Rosenheim, a town in the southern German state of Bavaria that has seen a sharp spike in coronavirus cases in recent weeks. It is typical of a nationwide surge in new infections that has sent alarm bells ringing in Berlin.
/on.ft.com/2TtKpLg

Endless Covid Fight Stalks Routine U.S. Health-Care Business
Emma Court, Robert Langreth, John Tozzi, and Riley Griffin – Bloomberg
Drugmakers see demand decline for vaccines, other medicines; LabCorp gains from testing jump; Centene sees care steadying
The health-care industry is grappling with a slow-paced recovery from the early days of the coronavirus pandemic, as many people continue to avoid doctors’ offices and a new surge in infections spreads across the U.S. For drugmakers, the pandemic has squeezed demand for everything from childhood vaccines to smoking-cessation drugs and diabetes treatments. When the virus took root in the U.S. this spring, many doctors and patients put off routine and elective care, leading to fewer prescriptions for a range of medicines. Sales also slumped for drugs used to treat cancer or in surgeries.
/bloom.bg/3kCmcyf

Can You Get Covid Twice? What Reinfection Cases Really Mean
Suzi Ring and Jason Gale – Bloomberg
The questions of whether people have immunity to SARS-CoV-2 after getting it, and if so for how long, have become more acute now that scientists have found a growing number of individuals who’ve caught the coronavirus twice. One woman even died after the second infection. Researchers are still working out the full implications of the reinfections and the ramifications on efforts to end the deadliest pandemic in a century.
/bloom.bg/34xJOi6

Germany Moves to Shutter Bars and Restaurants for One Month
Arne Delfs and Raymond Colitt – Bloomberg
Chancellor to propose new curbs in talks with state premiers; Measures designed to check alarming rise in coronavirus cases
German Chancellor Angela Merkel is pushing for tougher curbs on movement and contact, including closing bars, restaurants and leisure facilities through the end of November, as coronavirus infections continue to surge across Europe.
/bloom.bg/34AnhkP

Financial victims of coronavirus will see credit scores suffer for over half a decade, experts warn
Lily Canter – Yahoo Finance
Financial victims of the pandemic could see their credit scores suffer for six years, warns independent credit broker TotallyMoney. A blanket end to protections on 31 October will see more than a quarter of a million people move from payment holidays to repayment plans.
/yhoo.it/35EjVwg

It might not be clear whether Covid-19 vaccines work until after they’re already being used, experts warn
Shelby Lin Erdman – CNN
It might not become clear which Covid-19 vaccines work best — or whether they work at all — until after they’ve already been authorized and are being given to many people, a team of experts said Tuesday. With 44 vaccines in clinical trials — meaning they are being tested in people — it will be difficult to tell which ones are the most effective in preventing disease, said the experts led by Dr. Susanne Hodgson of Oxford University’s Jenner Institute.
/cnn.it/3jDcwlI

Coronavirus in Illinois updates: Pritzker orders tougher restrictions for Chicago; Florida added to city’s travel order; 4,000 new cases and 46 more deaths reported
Chicago Tribune
Illinois Gov. J.B. Pritzker on Tuesday ordered new restrictions for Chicago that will prohibit indoor dining and bar service and limit gatherings to 25 as of Friday. The city has seen sustained increases in COVID-19 hospitalizations and its COVID-19 test positivity rate, a combination of factors that triggers a rollback of reopening under the governor’s plan.
/bit.ly/3e6xfND

Pritzker orders tougher restrictions for Chicago starting Friday. Lightfoot says she’ll try to change his mind.
Jamie Munks, Gregory Pratt, Dan Petrella – Chicago Tribune
Gov. J.B. Pritzker and Mayor Lori Lightfoot on Tuesday clashed over his order for tighter restrictions that would prohibit indoor dining and bar service in Chicago, with the governor saying they’re needed to help stop the coronavirus spread and the mayor indicating she’ll try to change his mind.
/bit.ly/3jEB9P0

The Covid Thanksgiving: Outdoor Heaters, Virtual Meals, Grandma Stays Home; Is it safe to have Thanksgiving? As coronavirus cases surge, families face difficult decisions.
Anne Marie Chaker – WSJ
Ted Teuten is facing an agonizing question for Thanksgiving this year: Is it safe for his 76-year-old mother to come?
Mr. Teuten, an interior designer, normally hosts a feast with family and friends. This year, he’s debating the risks his mom will face if she travels to his home in Chicago from hers near Albany, N.Y. “My sister and I just finished texting about whether to put my mom on a plane,” he says. He’s worried too about the risks of a long, indoor dinner at close quarters. “The whole thing is deeply questionable at this point,” he says. His mother, Marguerite, says she will likely end up staying home. “I have a feeling I’ll be spending it completely alone,” she says. “And I am really not looking forward to that.”
/on.wsj.com/3e18TFe

Public Health Expert’s Warning: U.S. On Course To Hit 100,000 Daily COVID-19 Infections; Dr. Ashish Jha said the grim landmark figure could be avoided but there’s not enough “policy impetus to act as we need to.”
Lee Moran – Huff Post
The U.S. coronavirus resurgence will “in the coming weeks” begin topping 100,000 new infections every day, public health expert Dr. Ashish Jha warned Tuesday. “We’re rising quickly,” Jha, dean of the Brown University School of Public Health, told CNN’s Wolf Blitzer.
/bit.ly/2TxFnxy

Canadian Thanksgiving could be a cautionary tale for Americans amid coronavirus surge
Amanda Coletta and Adam Taylor – Washington Post
As the holiday season approaches amid a surge in novel coronavirus cases across the United States, a Thanksgiving-related spike in Canada could serve as a cautionary tale.
/wapo.st/3jBSqbB

Exchanges, OTC and Clearing

CME Group Inc. Reports Third-Quarter 2020 Financial Results
CME Group
CME Group Inc. (NASDAQ: CME) today reported financial results for the third quarter of 2020. The company reported revenue of $1.1 billion and operating income of $525 million for the third quarter of 2020. Net income was $412 million and diluted earnings per share were $1.15. On an adjusted basis, net income was $495 million and diluted earnings per share were $1.38. Financial results presented on an adjusted basis for the third quarter of 2020 and 2019 exclude certain items, which are detailed in the reconciliation of non-GAAP results.1
/bit.ly/2HGUGl3

SONIA options to launch on ICE Futures Europe in December; ICE said open interest in its three month SONIA futures grew to record levels recently as it prepares to launch new SONIA options.
Annabel Smith – The Trade
US exchange group ICE has outlined plans to expand its range of SONIA-based derivatives with the launch of SONIA options via ICE Futures Europe in December.
/bit.ly/2HEq0AG

ICE ETF Hub Expands Custom Basket Pilot Program; Four new market makers join the program; New technology enhancements bring additional automation to ETF Primary Market
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, today announced that four new market makers have joined the ICE ETF Hub pilot program. In addition, several enhancements have been made to the platform.
/bit.ly/3e6a4Dl

ICE Data Services and RepRisk to Increase Access to ESG Risk Data
Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listing services, today announced that ICE Data Services is integrating ESG risk data from RepRisk into its ESG Reference Data service.
/bit.ly/35FFiNI

Update of the T7 Release 9.0 Release Notes containing important information regarding the ETI Backward Compatibility Mode; Eurex Exchange Readiness Newsflash | Update of the T7 Release 9.0 Release Notes containing important information regarding the ETI Backward Compatibility Mode
Eurex
Dear Eurex Participant,
With this newsflash, we would like to inform you that the “T7 Release 9.0 – Final Functional Technical Release Notes”, available under:
/bit.ly/3mrTzo0

Share day on October 30th: Share savings on World Savings Day
Deutsche Börse Group
Stock saving is an important tool for wealth creation; buy DAX stocks and DAX ETFs on the Frankfurt Stock Exchange free of charge
October 30th is traditionally World Savings Day – and that includes saving with shares. That is why Deutsche Börse, together with the securities trading banks on the Frankfurt stock exchange floor and numerous direct banks, is calling for “Share Day” on World Savings Day.
/bit.ly/2Jet5bn

ASX Announces New Scope and Go-Live Date for CHESS Replacement
ASX
After extensive industry consultation and a comprehensive project review, ASX increases the scope of CHESS replacement and resets the go-live date to April 2023
ASX has confirmed the new go-live date for the CHESS replacement system as April 2023, with increased project
scope and a 12-month extension to the proposed date consulted upon mid-year.
/bit.ly/2TwaCc9

CME Group Announces Dec. 7 Launch of Nasdaq Veles California Water Index Futures
Nasdaq
CME Group, the world’s leading and most diverse derivatives marketplace, and Nasdaq, a global technology company serving the capital markets and other industries, today announced futures on the Nasdaq Veles California Water Index (NQH20) will be available for trading Dec. 7, pending regulatory review.
/bit.ly/35KSlxD

Amendments to the Nikkei Stock Average Futures, Yen Denominated Nikkei Stock Average Futures, and Yen Denominated TOPIX Index Futures Contracts – Basis at Trade Index Close (“BTIC”) Transactions Permitted until 3:00 p.m. Japan Time
CME Group
Effective Sunday, November 22, 2020 for trade date Monday, November 23, 2020, and pending all relevant Commodity Futures Trading Commission (“CFTC”) regulatory review periods, Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) will implement amendments to the Nikkei Stock Average Futures, Yen Denominated Nikkei Stock Average Futures, and the Yen Denominated TOPIX Index Futures contracts (the “Contracts”) to eliminate the rule entitled (“BTIC Orders Prohibited on the Day of Final Settlement Price Determination”) of the Contracts (collectively, the “Rule Amendments”).
/bit.ly/3msv7Ty

Decrease of the Minimum Price Fluctuation for Calendar Spreads and Basis Trade at Index Close (“BTIC”) Transactions in the E-mini FTSE Emerging Index Futures Contract
CME Group
Effective Sunday, November 22, 2020 for trade date Monday, November 23, 2020, and pending all relevant Commodity Futures Trading Commission (“CFTC”) regulatory review periods, Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) will amend the E-mini FTSE Emerging Index Futures contract (the “Contract”) as more specifically described below.
/bit.ly/37Sdbxx

Storage and Handling Rate Changes for 4STOX NV
CME Group
4STOX NV, a COMEX Warehouse for the storage and delivery of copper deliverable against the Exchange’s Copper futures contract, will implement new rates in connection with the storage and withdrawal of copper at its facility located in Tucson, AZ. The new rates, presented below, reflect the maximum amount of fees that can be charged.
/bit.ly/35HnXUD

Increase of the Minimum Price Fluctuation of the Palladium Futures and Micro Palladium Futures Contracts
CME Group
Effective Sunday, December 6, 2020, for trade date Monday, December 7, 2020, and pending all relevant CFTC regulatory review periods, New York Mercantile Exchange, Inc. (“NYMEX” or “Exchange”) will amend the Price Increments rules of the Palladium Futures and Micro Palladium Futures contracts (the “Contracts”) to increase the minimum outright price fluctuation of the Contracts for trades executed on the CME Globex electronic trading platform (“CME Globex”) and for transactions submitted for clearing on CME ClearPort as set forth in the table below.
/bit.ly/2HxLKhX

Increase of the Minimum Price Fluctuation of the Chicago Ethanol (Platts) Futures for Trades Executed on CME Globex
CME Group
Effective Sunday, November 22, 2020 for trade date Monday, November 23, 2020, and pending all relevant CFTC regulatory review periods, New York Mercantile Exchange, Inc. (“NYMEX” or “Exchange”) will amend Rule 582102.C. (“Price Increments”) of the Chicago Ethanol (Platts) Futures contract (the “Contract”) to increase the minimum price fluctuation of the Contract for trades executed on the CME Globex electronic trading platform (“CME Globex”) from $0.00025 to $0.0025 as noted in the table below.
/bit.ly/35Wf0qT

NASDAQ CEO Adena Friedman’s full interview with Yahoo Finance reporter Julia La Roche discusses challenges businesses are facing amid the pandemic and reforming free markets.
Yahoo Finance
/yhoo.it/34yToRD

Fintech

Visa’s Planned Purchase of Plaid Faces Antitrust Scrutiny at the Justice Department; The DOJ, making preparations for potential litigation, could soon decide whether it will sue to block Visa’s purchase of the fintech firm
AnnaMaria Andriotis, Brent Kendall and Peter Rudegeair – WSJ
Visa Inc.’s V -1.56% $5.3 billion deal to buy a key player in the financial-technology space is in jeopardy because of antitrust concerns, according to people familiar with the matter. The Justice Department could decide soon whether it will sue to block Visa’s acquisition of Plaid Inc., a firm that provides the technological infrastructure underpinning an array of next-generation financial apps. After spending the better part of the year scrutinizing the deal, the department is concerned it could limit nascent competition in the payments sector, people familiar with the matter said.
/on.wsj.com/34yHo2v

Apple develops alternative to Google search; iPhone maker explores building its own search tools as ties to Google come under antitrust scrutiny
Tim Bradshaw and Patrick McGee – FT
Apple is stepping up efforts to develop its own search technology as US antitrust authorities threaten multibillion-dollar payments that Google makes to secure prime placement of its engine on the iPhone. In a little-noticed change to the latest version of the iPhone operating system, iOS 14, Apple has begun to show its own search results and link directly to websites when users type queries from its home screen.
/on.ft.com/34ByuRY

The Pessimist’s Guide to Jack Ma’s Record-Breaking Ant IPO
Abhishek Vishnoi and Michael Patterson – Bloomberg
Fintech giant is one of the most anticipated debuts in years; Ant also faces growing regulation and stiff competition
Few initial public offerings have aroused more anticipation than the blockbuster listing of Jack Ma’s Ant Group Co. Demand for the record $34.5 billion IPO has been so strong this week that Ant decided to stop taking orders from big investors a day earlier than planned. In Shanghai, initial bids exceeded supply by more than 280 times. Some mom-and-pop investors in Hong Kong are taking on 20 times leverage to supercharge their bets.
/bloom.bg/2HEUlin

Another Chinese Fintech Firm Is Going Public at the Same Time as Ant Group
Julia Fioretti – Bloomberg
Two Chinese financial technology companies are going public at the same time, but their initial public offerings are looking pretty different. Jack Ma’s behemoth Ant Group Co. is set to raise $34.5 billion in a record-breaking IPO in both Shanghai and Hong Kong this week. Demand has been so strong that the company will stop taking orders from institutional investors in Hong Kong a day earlier than planned.
/bloom.bg/2TymKJy

Broadridge AI bond trading platform LTX integrates with Charles River IMS; The LTX AI-powered trading platform from Broadridge processes over $7 trillion in notional volume per day across over 40 dealer clients.
Annabel Smith – The Trade
The artificial intelligence-powered corporate bond trading platform from Broadridge has been integrated with the Charles River Investment Management System (IMS) under a new partnership between the vendors.
/bit.ly/3jCyYvx

Itiviti to transition trading platform to cloud with AWS; Itiviti will deploy a hybrid private-public cloud strategy which will reinforce the modularity and flexibility of its trading platform.
Annabel Smith – The Trade
Trading technology provider Itiviti has confirmed plans to transfer its entire platform to the cloud using a hybrid private-public strategy with Amazon Web Services (AWS). The cloud transformation will be rolled out in phases with the first set of applications running in the cloud due to go-live by the end of this year. As well as AWS, Itiviti will also use Data Canopy and Ingram Micro for the revamp of its platform.
/bit.ly/2JfPnth

TNS Re-Engineers Its European Backbone To Deliver Robust Market Data And Ultra-Low Latency Connectivity
Mondovisione
Transaction Network Services (TNS) has been strategically enhancing its European backbone during 2020 and can now offer market data from all the major European equities exchanges to TNS’ points-of-presence (PoPs) across Europe.
/bit.ly/2HBMdzb

Cryptocurrencies

NYSE’s Top Markets Cop to Take Cryptocurrency Job at Andreessen Horowitz
Alexander Osipovich – WSJ
The New York Stock Exchange’s top markets cop is leaving the Big Board for a job advising venture-capital firm Andreessen Horowitz on cryptocurrency regulation. Anthony Albanese, who has led the NYSE’s in-house regulatory unit since 2016, will join the Silicon Valley firm as its chief regulatory officer in mid-November, a spokeswoman for Andreessen Horowitz said. The move makes Mr. Albanese the latest regulator to join a firm active in digital-currency markets, where regulations are still emerging and many businesses operate in a legal gray area. His work will involve outreach to regulators and helping to shape strategy for Andreessen Horowitz’s cryptocurrency projects, according to a blog post that the firm plans to release later Wednesday.
/on.wsj.com/3e8ffm7

Ethereum Developer ConsenSys to Assist French Bank With CBDC Pilot
Daniel Palmer – Coindesk
ConsenSys, a company that develops for Ethereum and funds ecosystem startups, is to help French bank Societe Generale carry out research on a central bank digital currency (CBDC). Announced in a blog post on Wednesday, ConsenSys will work with Societe Generale – Forge, the bank’s digital assets arm, providing technology and expertise as part of ongoing CBDC pilot efforts. ConsenSys will be involved in work looking at CBDC issuance and management, delivery versus payment and cross-chain interoperability.
/bit.ly/31LalXp

ASX Delays Launch of DLT System Over Coronavirus Trading Volatility
Sebastian Sinclair – Coindesk
Australia’s largest stock exchange operator, ASX Ltd., has once more opted to delay the rollout of its in-development blockchain-based trading platform. As reported by Reuters on Wednesday, the operator of the Australian Securities Exchange said it was eyeing a new date of April 2023 due to higher levels of demand than expected. “The industry … requested substantially more post-trade processing capacity than what had been contemplated pre-COVID-19,” the operator said in Reuters’ report.
/bit.ly/3e1AvKq

Bitcoin hash rate drops over 10% as Chinese miners migrate to fossil fuel plants
Wolfie Zhao – The Block
The 7-day rolling average of bitcoin’s hash rate has dropped by over 10% since last week. The drop comes amid Chinese miners are migrating from hydro to fossil fuel power stations. Bitcoin’s 7-day rolling average hash rate has dropped by over 10% since earlier this month — in large part thanks to the change in season. The average total computing power competing to mine Bitcoin was around 142 exahashes per second (EH/s) for the first two weeks of October, according to data from BTC.com. But since October 18, the 7-day rolling average of Bitcoin’s hash rate has declined by 11% to the current 126 EH/s. Meanwhile, Bitcoin’s price rose above $13,000 during the same period.
/bit.ly/3eaWZZp

KPMG, Coin Metrics Partner to Grow Institutional Crypto Adoption
Jeff Benson – Decrypt
KPMG is a major accounting firm. It will integrate Coin Metrics’ blockchain products with its existing digital asset product. The move should help it stay relevant to institutional clients looking into cryptocurrency. KPMG, one of the “Big Four” accounting firms along with Deloitte, EY, and PwC, has announced a “strategic alliance” with crypto market data firm Coin Metrics. The company sees the partnership as a way to “support growth in institutional adoption of cryptoassets and public blockchains.”
/bit.ly/2G5C8tU

Coinbase Goes Down as Bitcoin Approaches 2019 Highs
Sebastian Sinclair – Coindesk
U.S. cryptocurrency exchange Coinbase has disabled trading due to feed issues amid bitcoin’s ascension towards 2019 highs near $13,880. According to a company update on Wednesday, Coinbase said they were “currently investigating the issue,” while no further comment was provided. Coinbase has suffered a number of outages during busy trading periods this year including on Sept. 4 – the last time an outage caused trading to halt, according to the company’s status page. The outage comes at a time when bitcoin has been fast approaching new highs not seen since June 26, 2019.
/bit.ly/3kDpr8z

Crypto lender BlockFi now holds over 5% of Grayscale’s Bitcoin Trust shares
Aislinn Keely – The Block
Crypto lender BlockFi has purchased a considerable stake in Grayscale’s Bitcoin Trust (GBTC), public records show. The lending firm’s holdings now represent a 5.07% ownership of the trust, according to a new filing with the Securities and Exchange Commission (SEC). The SEC requires that companies report anything over a 5% ownership of another company using form 13-G. BlockFi’s filing is signed on October 26 and reports the October 15 purchase of 24,235,578 shares from the Trust. According to Grayscale’s most recent annual filings, each share is worth 0.0001 BTC, meaning BlockFi’s purchase is about 24,235.578 BTC. At current market price, that’s $328,040,666.02.
/bit.ly/3e69MfJ

More Than Half of US Investors Interested in Bitcoin, Grayscale Survey Finds
Sebastian Sinclair – Coindesk
A survey conducted by digital asset manager Grayscale Investments suggests investor interest in bitcoin is on the rise and the top cryptocurrency by market cap is well on its way toward mainstream adoption. Released Tuesday, Grayscale’s “Bitcoin Investor Study” revealed more than half (55%) of U.S. investors who responded are interested in buying bitcoin (BTC) in 2020. Compared to the previous year, the results mark a “significant increase,” the company said, with a rise of 19%.
/bit.ly/2TvFNV9

Politics

How Trump Maneuvered His Way Out of Trouble in Chicago; When his skyscraper proved a disappointment, Donald Trump defaulted on his loans, sued his bank, got much of the debt forgiven — and largely avoided paying taxes on it.
David Enrich, Russ Buettner, Mike McIntire and Susanne Craig – NY Times
The financial crisis was in full swing when Donald J. Trump traveled to Chicago in late September 2008 to mark the near-completion of his 92-floor skyscraper. The fortunes of big companies, small businesses and millions of Americans — including the Trumps — were in peril. But the family patriarch was jubilant as he stood on the terrace of his gleaming glass tower.
/nyti.ms/3e2s1Tc

How the Surging Virus Has Crashed Into Campaigning in Every Imaginable Way; The coronavirus pandemic is Issue No. 1, and it’s transformed everything about how this election season has played out.
Julie Bosman, Sarah Mervosh, Sydney Ember, Jacey Fortin and Robert Gebeloff – NY Times
Drive-through polling places. Candidates trying to sell themselves to voters on Zoom. Canvassers in masks and gloves knocking on doors and then scurrying six feet back.
/nyti.ms/3e22yJJ

Tariffs Didn’t Fuel Revival for American Steel; Initial job growth withers as demand and prices sink; older mills face a dim future
Bob Tita and William Mauldin – WSJ
President Trump made good on his 2016 campaign pledge to the steel industry, slapping 25% tariffs on foreign-made steel in an effort to revive an industry that once symbolized American manufacturing might. The tariffs succeeded in pushing down steel imports and—for a short time—resulted in higher prices for domestic steelmakers. They also encouraged newer steel companies to expand operations in the South and Southwest.
/on.wsj.com/2TwIZ2G

Austerity vs populism tensions overhang LatAm debt markets; Clashes in Costa Rica over IMF deal might signal strains elsewhere in the region
Michael Stott – FT
Often dubbed the “Switzerland of central America”, Costa Rica is a beacon of relative peace and prosperity in the troubled neighbourhood of Central America. Well-heeled ecotourists enjoy its abundant tropical rainforests and rich biodiversity. Even coronavirus, which ravaged most of Latin America, was initially under control there.
/on.ft.com/2TwHK3w

Oil traders braced for balancing act in wake of US election; Analysts warn against oversimplifying what each candidate means for crude prices
David Sheppard – FT
The US presidential election looks like a binary choice for the energy sector: an incumbent who has championed the fossil fuels industry or a challenger who has vowed to overhaul the world’s largest economy to meet the threat posed by climate change. Yet oil traders are increasingly cautious about casting US president Donald Trump as bullish for prices and Democratic opponent Joe Biden as bearish, warning that the potential outcome is far more nuanced than it appears on the surface.
/on.ft.com/2G5ui3s

Early voting surge points to huge turnout in US election; More than 66m Americans have already cast ballots amid fears over catching Covid at polling stations
Courtney Weaver – FT
More than 66m Americans have already cast their ballots in the US presidential election amid a surge in early voting due to the pandemic, pointing to massive turnout despite fears that Covid-19 would dampen participation.
/on.ft.com/3e6sB28

Biden May Get the Weaker Dollar That Eluded Trump’s Presidency; The combination of rising government debt and ultralow rates will weigh on the U.S. currency.
Susanne Barton, Anchalee Worrachate, Benjamin Purvis – Bloomberg
A weaker dollar and the boost that it could provide to U.S. exporters and manufacturers has long been part of President Donald Trump’s prescription to make America great again. But it could be his opponent, Joe Biden, who gets a less mighty greenback and its spoils. Long before the novel coronavirus pandemic upended the global economy, the alleged unfairness of U.S. trading relationships with the rest of the world was a cornerstone of Trump’s rhetoric and actions. Accusations of currency manipulation have been as much a mainstay of his policy as tariffs on items ranging from solar panels to washing machines. And grievances about the strength of the dollar—often part of attacks against China, Europe, and even the U.S.’s own Federal Reserve—have been a staple of the president’s Twitter feed.
/bloom.bg/2GbPqoU

Trump Website Briefly Defaced, Promoted Crypto Scam
William Turton – Bloomberg
One of Donald Trump’s campaign websites, donaldjtrump.com, was briefly made to look like it had been seized by law enforcement Tuesday, an effort that appeared to be part of a cryptocurrency scam. The takeover, termed a defacement by cybersecurity experts, lasted for less than an hour. During that time, the web page was made to look like it had been take over by the government and included images of Federal Bureau of Investigation and Justice Department seals. It also included a message urging people to send digital currency to an account, a technique used by criminals.
/bloom.bg/34CGylE

Podcast: A Partisan Future for Local News? A Times investigation uncovered a secretive pay-to-play network that seeks to rewrite the rules.
Michael Barbaro
Local news in America has long been widely trusted, and widely seen as objective. But as traditional local papers struggle, there have been attempts across the political spectrum to create more partisan outlets.
/nyti.ms/3e6wOTv

Regulation

ESMA publishes translations for decision of renewal to lower the reporting thresholds of net short positions
ESMA
The European Securities and Markets Authority (ESMA) has issued today the official translations ?of its decision of renewal of 16 September 2020 to lower the reporting thresholds of net short positions under Art.28 of the SSR?.
/bit.ly/35KUjhv

European accounting enforcers to enhance transparency on COVID-19 impact
ESMA
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has issued its annual Public Statement on European Common Enforcement Priorities (Statement), which sets out the priorities that EEA corporate reporting enforcers will consider when examining listed companies’ 2020 annual financial reports.
/bit.ly/3oyU0P8

Overlapping Risks, Part 1: Anti-Money Laundering and Cybersecurity
FINRA Podcast
Firm regulatory risks and priorities don’t exist in a vacuum. And that is perhaps nowhere clearer than when it comes to a firm’s anti-money laundering responsibilities. A firm’s AML risks can overlap with any number of other priorities.
/bit.ly/31Qa5Gs

Directive of Chairman Heath P. Tarbert on the Use of Staff Letters and Guidance
CFTC
In the regular course of administering the Commodity Exchange Act (CEA) and Commission regulations, CFTC staff often receive inquiries from the public seeking guidance or clarification on how Commission rules and regulations may apply to specific facts and circumstances.[1] Staff may respond to such inquiries through a variety of communications, including no-action, interpretive, and exemptive letters, as well as guidance and advisory statements (collectively, Staff Letters). Staff Letters vary in scope and format. For instance, a Staff Letter may simply convey an enforcement position, or it may articulate an explicit interpretation of applicable law and Commission regulations as they relate to a particular scenario. In all cases, the views articulated in Staff Letters (with the exception of exemptive letters) are informal and advisory, and the statements are not binding on the Commission itself.[2]
/bit.ly/3oBhnry

FCA, TPR and MaPS joint statement on Rolls-Royce defined-benefit pensions scheme
UK FCA
The FCA has issued a data request to a number of advisers who have advised on transfers from the Rolls-Royce defined benefit (DB) pension scheme.
/bit.ly/35K0PF9

Investing and Trading

Global bond markets have turned topsy-turvy; Deluge of central bank funding upends typical market reaction to economic downturns
Michael Mackenzie – FT
Those with long memories of the credit woes that typified recessions since the early 1990s are living in a topsy-turvy world thanks to the dramatic actions of central banks in March. A highly uncertain future for the economy and companies should prompt risk aversion among investors in the world of credit, whereby low prices and higher yields prevail for some time. Instead, credit markets are now telling a very different story.
/on.ft.com/2HIHCLu

What the shift on austerity means for markets; Greater dispersion of returns likely for firms and countries as debt and deficits surge
Mohamed El-Erian – FT
There has been a stark shift in global economic thinking on austerity. That was strikingly evident at the annual meetings of the IMF and World Bank earlier this month. In sharp contrast to what the IMF and others urged after the 2008 global financial crisis, senior figures at the meetings encouraged governments “to spend their way out of the pandemic”.
/on.ft.com/2IYRTns

BP has yet to prove it is performing or transforming Investors will need patience when delivering a verdict on Bernard Looney’s overhaul; St James’s Place under fire
Cat Rutter Pooley – FT
BP boss Bernard Looney started eight months ago with a trinity of soundbites: reimagining energy, reinventing BP, and performing while transforming.
/on.ft.com/3ebJCby

Lagarde’s deflation dilemma: virus piles stimulus pressure on ECB; Weak growth, negative rates and sub-zero inflation leave policymakers searching for answers
Martin Arnold – FT
The day after Christine Lagarde presents the European Central Bank’s latest monetary policy decision on Thursday, new figures are expected to show the eurozone sank into its third consecutive month of deflation — something it has done only twice before.
/on.ft.com/2G6gfL7

JPMorgan Asset Says to Pick Corporate Debt Over Stocks in Near Term
Ishika Mookerjee – Bloomberg
More room for consolidation in global equities: Tai Hui; U.S., emerging market debt to gain from loose monetary policy
Investors should focus more on corporate bonds than stocks in the near-term given the recent resurgence in the pandemic and political uncertainty in the U.S., according to JPMorgan Asset Management.
/bloom.bg/2G6ab

Liberum Stock Picker Loses Faith Hours Before $2.4 Billion Bid
David Hellier – Bloomberg
Copper miner KAZ Minerals downgraded ahead of buyout offer; Top analyst cites ‘terribly bad luck’ on recommendation
Even the best stock pickers can get their calls wrong. Liberum Capital Ltd. analyst Ben Davis is probably wishing he hadn’t pressed send on his Oct. 27 report downgrading KAZ Minerals Plc. He cut the copper miner to “hold” and lowered its target price to 470 pence — indicating 19% downside from its last close.
/bloom.bg/34z7Nx7

Heineken to Cut Office Costs as Covid Surge Clouds Outlook
Thomas Buckley
Heineken NV, the world’s second-largest brewer, plans to cut personnel expenses by 20% at headquarters and regional offices as Covid-19’s resurgence clouds its outlook.
/bloom.bg/3jyFyD1

UBS Joins Calls for More BOE QE as Covid Hit to Jobs Intensifies
Eileen Gbagbo and Lucy Meakin – Bloomberg
U.K.’s young and minority furloughed workers are being cut; Resolution research indicates unemployment was 7% in September
UBS Group AG became the latest institution to predict more Bank of England stimulus next week amid growing signs of weakness in the U.K. jobs market. Policy makers will raise their asset purchase target by 100 billion pounds ($130 billion), strategists at the Swiss bank predict, joining Royal Bank of Canada and Nomura International. The BOE’s Nov. 5 decision comes just after the end of the U.K.’s current furlough program on Saturday.
/bloom.bg/3jCg1cm

Bunge Records 3Q Profit on Strong Agribusiness Results
Matt Grossman – WSJ
Bunge Ltd. posted a profit in the latest three-month period, as sales in its agribusiness and edible-oil-products segments grew from a year earlier.
/on.wsj.com/3kBwPl9

Environmental, Social and Corporate Governance

Investors probe ESG credentials of bond sellers on ‘greenwashing’ fears; Booming green debt market stokes concern over issuers’ environmental and social bona fides
Tommy Stubbington and Billy Nauman – FT
The rapid growth of the green bond industry is fanning suspicions that some debt is environmentally friendly in name only, encouraging investors to ignore the label and focus on the credentials of the issuer instead.
/on.ft.com/34AKJOQ

Why ExxonMobil is sticking with oil as rivals look to a greener future; While competitors navigate the shift from fossil fuels to cleaner energy, the US group is boosting production
Derek Brower – FT
In late 2011, ExxonMobil announced plans to drill for oil in disputed land between Kurdistan and the rest of Iraq. Baghdad’s government, fearing the move could break up the country, threatened to eject the company from a big project near Basra, in the south of the country.
/on.ft.com/3e404dA

Dutch Fund Manager Makes a Big Statement Against Fossil Fuels; A no-nonsense approach to sustainable investing is emerging at Robeco, which oversees $183 billion.
Tim Quinson – Bloomberg
The Dutch fund manager Robeco Institutional Asset Management has added 232 fossil-fuel producers to its “exclusion list.” The companies range from the Philippines’s Aboitiz Equity Ventures and China’s Zhengzhou Coal Industry & Electric Power to more recognizable names like American Electric Power and Westmore Coal.
/bloom.bg/2GbNNYk

Institutions

Bond trading surge returns Deutsche Bank to profit; German lender helped by volatile markets and a drop in provisions for bad loans
Olaf Storbeck – FT
Deutsche Bank returned to profit for the first time since early 2019 as a surge in bond trading and lower provisions for bad loans buoyed Germany’s largest lender. The bank’s fixed-income trading revenues climbed 47 per cent in the third quarter, surpassing the average of 26 per cent recorded by its five largest rivals on Wall Street.
/on.ft.com/2TthbMJ

Investors imagine private equity group Apollo after Leon Black; Succession in focus as asset manager investigates ties between founder and Jeffrey Epstein
Mark Vandevelde and Sujeet Indap and Kaye Wiggins – FT
Hours after last week’s announcement that Apollo Global Management was investigating the relationship between its founder and chairman Leon Black and the late paedophile Jeffrey Epstein, rank-and-file employees received an email that seemed to mark a passage of power at the formidable Wall Street firm.
/on.ft.com/3jFdCNY

Deutsche Bank Plans Higher Bonus for Top Investment Bankers
Daniel Schaefer, Steven Arons, and Nicholas Comfort – Bloomberg
CFO Von Moltke says lender needs to pay for performance; Banks grappling with how to reward staff during pandemic
Deutsche Bank AG is planning bonus increases for top-performing investment bankers after posting a 47% rise in debt trading revenue and boosting its full-year forecast for the securities unit. “A company like ours needs to be able to pay for competitive performance,” Chief Financial Officer James Von Moltke said in a Bloomberg Television interview on Wednesday. “It is sensible to be able to protect the franchise by being able to compensate our employees in line with our performance.”
/bloom.bg/3e2i1t8

Credit Suisse 3Q Profits Seen Lower — Earnings Preview
Pietro Lombardi – WSJ
Credit Suisse Group AG is scheduled to report results for the third quarter on Thursday. Here’s what you need to know: NET PROFIT FORECAST: The Swiss bank is expected to post a quarterly net profit of 562 million Swiss francs ($618.5 million), according to a consensus forecast provided by the bank. In the same period last year, net profit was CHF881 million.
/on.wsj.com/3jzhbp2

Regions

Poland’s biggest IPO raises expectations for foreign investors; Allegro’s success does not change government’s ambivalence towards foreign capital
James Shotter – FT
Poland has never seen an equity market debut quite like it. Two weeks ago, the ecommerce group Allegro launched on the Warsaw stock exchange in the central European nation’s biggest initial public offering. It became, at a stroke, Poland’s biggest listed company.
/on.ft.com/3jAbDdK

China and Hong Kong ETF markets grow closer with feeders launch; The vehicles link Hong Kong and mainland Chinese asset managers
Selena Li and Ysrael Dumasig – FT
Hong Kong’s CSOP Asset Management has rolled out its first master-feeder cross-listed exchange traded fund in partnership with Beijing-based Yinhua Fund Management, making available the second suite of products in the scheme that links Hong Kong and China ETF markets. Yinhua FM has also listed a feeder ETF on its home exchange in Shenzhen.
/on.ft.com/2TuBTeT

Lira woes reverberate on Turkish streets; People struggle to cope with soaring prices as currency plunges to a record low
Laura Pitel – FT
Melike Demiroglu has little time for those who say that the dramatic slide in the Turkish lira is good for her country. As a diabetic, the 25-year-old is dependent on an insulin pump whose monthly subscription fee is indexed to the dollar. “When the dollar goes up, the price goes up,” she said.
/on.ft.com/3kOZQdf

Zambia Secures China Debt Reprieve Ahead of Bondholder Vote
Matthew Hill and Taonga Clifford Mitimingi – Bloomberg
Deal could pressure bondholders to accept similar terms; Zambia wants to reprofile $12 billion in external debt
Zambia said it’s won some debt servicing relief from China Development Bank, putting more pressure on private bondholders to accept a government proposal with similar terms before the country becomes the first to default in Africa since the onset of the coronavirus pandemic.
/bloom.bg/3kCnp8L

London Heathrow Loses Title of Europe’s Top Airport
Charlotte Ryan – Bloomberg
Charles de Gaulle is now biggest regional hub: Heathrow CEO; U.K. in discussions with U.S. over testing regime, CEO says
London Heathrow has lost its title as Europe’s largest airport, falling behind Paris Charles de Gaulle as the pandemic continues to hurt U.K. traffic. The number of passengers traveling through the London hub fell 69% to 19 million in the first nine months of the year, slightly below its French counterpart, Heathrow Airport Holdings said Wednesday, adding that Amsterdam and Frankfurt aren’t far behind. The U.K. company also reported a 1.5 billion-pound ($1.96 billion) third-quarter loss.
/bloom.bg/2HHA77P

Average Price of Kenyan Coffee Sold at Auction Rises by 7.7%
George Mwangi – Dow Jones Newswires
The average price of Kenyan Arabica coffee beans sold at auction this week rose by 7.7% compared with a fortnight ago, the Nairobi Coffee Exchange said Wednesday.
/on.wsj.com/2HIWzNC

Brexit

Boris Johnson faces Brexit bill defeat at pivotal moment; Lords poised to challenge PM on flouting international law just as talks enter final stage
George Parker and Jim Brunsden – FT
Boris Johnson’s plan to flout international law over Brexit is set to be blocked by the House of Lords next month, throwing up an incendiary early test of relations with Joe Biden if he wins next week’s US election.
/on.ft.com/3kBlxNF

Boris Johnson faces Brexit bill defeat at pivotal moment
George Parker and Jim Brunsden – FT
Boris Johnson’s plan to flout international law over Brexit is set to be blocked by the House of Lords next month, throwing up an incendiary early test of relations with Joe Biden if he wins next week’s US election. Mr Biden has warned that Mr Johnson’s UK internal market bill would undermine the Northern Ireland peace process and that he would never sign a trade deal with the UK unless key clauses in the bill were removed. Members of parliament’s upper house are expected to oblige Mr Biden by voting overwhelmingly to throw out six clauses from the bill, which ministers have admitted will breach Britain’s withdrawal treaty, signed last year with the EU.
/on.ft.com/3kBlxNF

Business leaders seek post-Brexit task force with Downing Street
Daniel Thomas – FT
Business leaders and government officials plan to set up a task force to help companies adapt to life outside the EU next year, according to Carolyn Fairbairn, CBI director-general. In her last interview before standing down from the employers’ organisation next week, Dame Carolyn said the initiative showed that ties between government and business had largely mended after several years of frosty relations after the 2016 EU referendum. Talks were under way between the CBI, which opposed leaving the EU, and the Cabinet Office about creating a Brexit task force to help companies cope with changes after the UK leaves the single market at the end of the year. “We want nothing more than Brexit to succeed,” she said.
/on.ft.com/35C91qS

Brexit deal hangs in the balance, says EU council president
Daniel Boffey – The Guardian
Brexit negotiations have hit their most difficult stage, with Brussels still unsure whether a deal with Boris Johnson is possible within the next two crucial weeks, the European council president, Charles Michel, has said. The former prime minister of Belgium, who leads the summit of EU leaders, said in an interview with the Guardian that the result still was still hanging in the balance with what he suggested was a further fortnight of talks to come. The EU’s chief negotiator, Michel Barnier, is expected to stay with his team in Westminster until Thursday, after which the troubled negotiations are due to resume in the Belgian capital.
/bit.ly/3mB3IPv

Jaguar Expects Border Chaos With or Without a Brexit Trade Deal
Siddharth Vikram Philip – Bloomberg
Jaguar Land Rover Plc is resigned to the U.K.’s breakup with the European Union resulting in a messy and complicated transition period for its operations regardless of how government trade-deal negotiations shake out. The luxury-car maker released the details of its Brexit battle planning Tuesday within its report of a small quarterly pretax profit, though its parent’s loss worsened from a year ago. The company formed a steering committee that is staying apprised of government efforts to secure an agreement that avoids tariffs while also planning with partners for a no-deal scenario.
/bloom.bg/31M0zUQ

EU steel producers preparing for no-deal Brexit as demand tumbles
Eric Onstad – Reuters
The European Union steel sector, faced with a tumble in demand this year due to the COVID-19 pandemic, is preparing for a potential collapse in talks between the United Kingdom and the EU on a future trade deal, an industry group said on Wednesday. The two sides resumed talks in London on Tuesday to try to strike a last-minute trade agreement, less than 10 weeks before the United Kingdom leaves the bloc’s orbit. “Brexit remains a threat because there’s a high likelihood that we will get at the end of the day a no-deal (scenario),” said Alessandro Sciamarelli, an official with the European Steel Association (Eurofer). “We are getting prepared for that.” “At Eurofer, we are very much against a no-deal Brexit,” Sciamarelli, director of market analysis and economic studies, told a webinar.
/reut.rs/2G6WDqf

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