NATO chief: Ukraine war is Europe’s most dangerous time since WW2

Aug 4, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

The good folks at Vinson & Elkins are putting on a CLE webcast titled “Renewable Reboot: A Download on the Inflation Reduction Act of 2022 – Clean Energy Tax Provisions.” The webcast will be today, August 4, from 3:00 – 4:00 p.m. CT; 4:00 – 5:00 p.m. ET. Vinson & Elkins will “walk through notable climate and energy programs and clean energy tax provisions in the Act and unpack what this means for the future of renewable energy in the U.S.”

Good guy Paul Britton, the founder and CEO of the $9.5 billion derivatives firm Capstone Investment Advisors, was on CNBC yesterday giving his perspectives on the market.

I interviewed Joe Gits of Social Market Analytics yesterday about the growth of his firm and products since it was first profiled here in JLN. They are doing lots of interesting things with data from Twitter, Stocktwits and Reddit. Stay tuned for this JLN video.

The CME Group will launch Euro-denominated Bitcoin and Ether Futures on August 29.

This Saturday I will attend the Eagle Court of Honor for Joanna Clohessy, who was a member of Exploring Club #1, then an inaugural member of Scouts BSA Troop 117G when girls were allowed into the renamed Boy Scouts program. She was also the first Senior Patrol Leader of Troop 117G. She has matched her older brother in earning the rank of Eagle and is part of a great Scouting family. Her mother took over as Scoutmaster of Troop 117G when I stepped down and her father has become the Leader for the Venture Crew I founded.

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


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The Climate Bill Would Change the Course of the 2020s; The best evidence yet that Joe Manchin’s plan, if passed, will majorly reduce carbon emissions
Robinson Meyer – The Atlantic
First we got the bill. Now we have the numbers. The Inflation Reduction Act, the surprise deal that Senator Joe Manchin and Senate Majority Leader Chuck Schumer struck last week, would significantly reduce greenhouse-gas pollution from the American economy. If passed, the bill would cut annual emissions by as much as 44 percent by the end of this decade, according to a new set of analyses from three independent research firms.

****** The writer claims to be a great seer of the 2020s.~JJL


Venture capital’s silent crash: when the tech boom met reality; Investors of all stripes have crashed the clubby world of VC, drawn by the potential of tech start-ups. But there are signs the party is over
Richard Waters – FT
The venture capital world is in the grip of a silent crash. Unlike the stock market, there are no daily market indices to broadcast the pain, and no individual share prices for anxious tech employees to watch as their personal wealth evaporates. In fact, for many of the investors and entrepreneurs who have just lived through a historic boom in venture investing, it is even possible to pretend a crash isn’t happening at all. Loose rules that require only sporadic writedowns, the estimated value of private companies, have made it easy for many to turn the other way.

****** If venture capital crashed in the woods and there was no one there to hear it…~JJL


Podcast Guests Are Paying Up to $50,000 to Appear on Popular Shows; Critics call it “payola,” and say listeners deserve better disclosure of promotional ties.
Ashley Carman – Bloomberg
Want more stories like this from Ashley Carman? Be one of the first to sign up for Soundbite, a weekly newsletter launching soon with exclusive reporting on podcasting, the music industry and audio trends. People will confess all sorts of things to podcasters, from their unpopular political beliefs or embarrassing romantic mishaps to their worst fears. But there’s one revelation certain guests will never disclose—namely, that they’re paying thousands of dollars just to be interviewed on the show.

****** Old habits die hard.~JJL


Sneakerhead Accused of Running Huge Air Jordan Ponzi Scheme; Zadeh Kicks promised the hottest sneakers at discount prices. Buyers say they never got their shoes and are out millions of dollars.
Misyrlena Egkolfopoulou – Bloomberg
For years, he seemed like a wizard of Niketown – a Lamborghini-loving sneakerhead who made millions peddling rare Air Jordans at crazy low prices. Now, this consummate shoe salesman has been accused by federal authorities of masterminding a Ponzi scheme custom-fit to these strange financial times.

****** This ponzi scheme jumped right out at me.~JJL


The siblings selling shares in their future shed light on how we see our past; A so-called ‘People Company’ raises questions about how we distinguish remembered experience from life in the present
Jemima Kelly – FT
A new venture caught my eye this weekend, in a story of four tech-entrepreneur siblings who are in the process of raising money from investors. But this is no ordinary fundraising round. Rather than selling shares in a conventional company, the Libermans are selling shares in themselves.

****** Is this an S Corp, you know, which includes the soul?


Wednesday’s Top Three
Our top story Wednesday was The End of Snow Threatens to Upend 76 Million American Lives, from Bloomberg. Second was the Julie Winkler short video presentation from our MarketsWiki Education World of Opportunity – the first in our new MarketsWiki Education Shorts video series. Third was the picture of John Lothian ringing the closing bell of the then-NYSE Euronext exchange in Amsterdam in 2011, with Jessica (Titlebaum) Darmoni and Alan van Griethuysen.


MarketsWiki Stats
26,964 pages; 240,009 edits
MarketsWiki Statistics


Lead Stories

NATO chief: Ukraine war is Europe’s most dangerous time since WW2
Jacob Gronholt-pedersen and Nerijus Adomaitis – Reuters
The war in Ukraine is the most dangerous moment for Europe since World War Two, and Russia must not be allowed to win, NATO Secretary-General Jens Stoltenberg said on Thursday. To prevent Moscow from succeeding, NATO and its member countries may have to continue to support Ukraine with arms and other assistance for a long time to come, he said.

Robinhood CEO rejects prospect of deal as shares trade higher on earnings
Manya Saini and Hannah Lang – Reuters
The chief executive of Robinhood Markets Inc (HOOD.O) on Wednesday dismissed the idea that the company might be acquired after it announced job cuts as it tries to reduce costs and reverse a decline in trading on its platform. Robinhood shares closed up nearly 12% on Wednesday, following a smaller-than-expected quarterly loss and the announcement that it was laying off 23% of its staff.

ASX’s post-trade blockchain project delayed once again; Exchange group says its blockchain-based post-trade platform is unlikely to go live before late 2024 as it commissions independent review of the new application.
Jonathan Watkins – The Trade
The Australian Securities Exchange (ASX) has further delayed the rollout of its replacement post-trade platform based on distributed ledger technology (DLT), noting that more development is required than previously anticipated. The pushbacks have become a regular occurrence from the Australian exchange operator for the project first announced in 2016.

‘Grotesque greed’: immoral fossil fuel profits must be taxed, says UN chief; António Guterres urges governments to introduce windfall levies and use money to support vulnerable people
Matthew Taylor – The Guardian
The UN secretary general, António Guterres, has described the record profits of oil and gas companies as immoral and urged governments to introduce a windfall tax, using the money to help those in the most need. Speaking in New York on Wednesday, Guterres said the “grotesque greed” of the fossil fuel companies and their financial backers had led to the combined profits of the largest energy companies in the first quarter of this year hitting almost $100bn (£82bn).

Senate Plan Would Put Bitcoin, Ether Under Commodity Regulator’s Watch; Regulators vie for authority over cryptocurrency markets
Paul Kiernan – WSJ
Leaders of a Senate committee are pitching legislation that would assign oversight of the two largest cryptocurrencies, bitcoin and ether, to the federal agency that regulates milk futures and interest-rate swaps. Senate Agriculture Committee Chairwoman Debbie Stabenow (D., Mich.) and top-ranking Republican John Boozman of Arkansas unveiled a plan Wednesday that would empower the Commodity Futures Trading Commission to regulate spot markets for digital commodities, a newly created asset class. Currently the CFTC has authority to police derivatives, such as futures and swaps, rather than underlying commodities.

BlackRock Teams Up With Coinbase in Crypto Market Expansion; Partnership will help clients oversee their Bitcoin exposure; Coinbase is facing an SEC probe over trading of digital tokens
Silla Brush – Bloomberg
BlackRock Inc. is partnering with Coinbase Global Inc. to make it easier for institutional investors to manage and trade Bitcoin, marking a major push into cryptocurrencies for the world’s largest asset manager.

Muni Market Transaction Costs Remain High, Despite Customer Protection Rules, Study Says; Researchers find dealers mark up prices when customers are less likely notice
Heather Gillers – WSJ
Municipal bond dealers set prices well above what they pay for the securities, reaping windfalls at the expense of individual investors despite recent regulation aimed at curbing so-called markups, according to an academic study of trading data expected to be released Thursday. “Dealers appear to use their pricing discretion to charge higher markups to small customers when investors are less likely to notice,” wrote the study’s authors, John Griffin and Samuel Kruger of the University of Texas at Austin, and Nicholas Hirschey of the Universidade NOVA de Lisboa.

Robinhood CEO Shuts Down FTX M&A Chatter, Says He Has Money to Do His Own Deals; Robinhood has $6 billion in cash should the brokerage want to explore potential acquisitions, CEO Vlad Tenev said Wednesday.
Michael Bellusci – CoinDesk
The chief executive officer of Robinhood Markets (HOOD), the brokerage whose stock has lost about three-quarters of its value since its debut last year, tried to shut down speculation Wednesday that his firm might become a takeover target of crypto giant FTX. FTX’s billionaire founder Sam Bankman-Fried took a 7.6% stake in Robinhood in May. Bloomberg reported in June that FTX was exploring whether it could purchase the company, bolstering FTX’s nascent efforts to offer stock trading to customers.

Robinhood Faces SEC Probe on Compliance With Short-Selling Rule
Annie Massa and Lydia Beyoud – Bloomberg
Robinhood Markets Inc. said it faces a US Securities and Exchange Commission investigation into the brokerage’s compliance with a short-selling rule. The SEC’s enforcement division requested information about Robinhood’s adherence to Regulation SHO and matters related to securities lending and fractional shares, the Menlo Park, California-based company said Wednesday in a filing.

Wildfires in Europe burn second-biggest area on record
Kate Abnett – Reuters
Wildfires raging through Europe this summer have burned the second-largest area on record, even though the region is only halfway through its typical fire season, according to data from the European Union’s Joint Research Centre. A dozen European countries have suffered major blazes this year, forcing thousands to evacuate and destroying homes and businesses. Countries including Italy, Spain and France still face extreme fire risk.

Michael Saylor Bet Billions on Bitcoin and Lost
Paul Vigna – WSJ
In 2020, MicroStrategy stock was stagnant, and the tech company struggled to compete with software giants. On Tuesday, MicroStrategy announced Mr. Saylor would step down as CEO, a position he has held since 1989, amid mounting losses tied to bitcoin. In total, MicroStrategy raised $2.4 billion in debt and loans.

MicroStrategy CEO Michael Saylor Is Stepping Down
Colette Bennett – The Street
It’s putting it mildly to say bitcoin, not to mention the crypto landscape on the whole, has had a very rough year. After a crash in June that saw bitcoin drop to an all-time low of $20,000 (the all-time high was $69,044.77 in November 2021), big crypto investors started to pull out, including Meta’s META Mark Zuckerberg and Tesla CEO Elon Musk. Prominent crypto lenders crumbled in the dip, such as Celsius Network, which filed for Chapter 11 bankruptcy on July 13, and Voyager Digital, which did the same on July 6.

Mystery of the ‘meme stock’ no one had ever heard of that went from $1 billion market cap to over $400 billion in a matter of days
Christiaan Hetzner – Fortune
What in the world is AMTD Digital, and who is behind it? That’s the question many investors are asking themselves after an unknown company out of Hong Kong managed to join the ranks of the global megacaps worth around a half-trillion dollars on Tuesday.

Li Ka-shing’s conglomerate disavows meme stock AMTD Digital after 14,000% surge; CK Hutchison says it has ‘no business dealings’ with New York-listed company with higher market cap than Goldman Sachs
Mercedes Ruehl and Hudson Lockett – FT
Hong Kong tycoon Li Ka-shing’s CK Hutchison Holdings has distanced itself from AMTD Digital after the meme stock’s value surged to more than $200bn since listing in July. After pricing its American depositary receipts at $7.80 for its New York listing, the Hong Kong-based digital bank’s stock has risen more than 14,000 per cent and closed Wednesday’s session at $1,100.

The Biggest Bank in the World; The U.S. government has more than $5 trillion in outstanding loans. The Inflation Reduction Act would feed inflation by adding to that number.
Judge Glock – WSJ
The proposed Inflation Reduction Act is an impressive piece of rebranding. While Senate Democrats pitched Build Back Better as a means of boosting spending after the pandemic, they claim the new version will cut the deficit and drive down prices. Senate sponsors have found ways to hide the extent of spending under the Inflation Reduction Act. The most blatant method is an old congressional trick: Many programs don’t technically spend money; they lend money. The act would authorize hundreds of billions of dollars in direct government loans and government guarantees of private loans. Despite the rhetoric of the bill’s supporters, these loans will spur more inflation and create dangerous defaults.

Pimco hires former Federal Reserve vice-chair Richard Clarida; Ex-central bank official rejoins his former employer after being cleared in trading investigation
Kate Duguid – FT
Pimco, the $2tn California-based bond fund manager, has hired former Federal Reserve vice-chair Richard Clarida as global economic adviser and managing director. Clarida will be replacing Joachim Fels, who will retire at the end of the year, Pimco announced on Wednesday. Before serving on the Fed, Clarida had worked at the fund manager for more than a decade in the same capacity.

Ukraine Invasion

Russian recommends companies transfer ‘unfriendly’ FX holdings
Russia’s central bank on Thursday recommended that the government order state companies to transfer their FX holdings in currencies of countries that have targeted Moscow with sanctions to those of countries that have not.

Winter in Europe May Be Springtime for Putin; Russia’s energy war deploys high prices to promote social turmoil and empower populist parties.
Daniel Yergin and Michael Stoppard – WSJ
The second front has opened in the battle for Ukraine—an energy war in Europe. There’s no mystery about Vladimir Putin’s strategy. He laid it out at an economic conference in St. Petersburg in June: high energy prices, which bring hardship as they radiate through the European economy, which will create social turmoil, which will mean that people vote their pained pocketbooks. This in turn will bring to power populist parties that will, to use his own language, change “the elites” in Europe.

With eye on Russia, U.S. Senate backs Finland and Sweden joining NATO
Patricia Zengerle – Reuters
The U.S. Senate approved on Wednesday Finland and Sweden’s accession to NATO, the most significant expansion of the 30-member alliance since the 1990s as it responds to Russia’s invasion of Ukraine.

Getting Grain Out of Ukraine Is Literally a Minefield; Charts, helicopters and machine guns can help a ship avoid destruction, but in the end a captain has to trust his eyes.
James Stavridis – Bloomberg
What’s it like to sail a huge cargo ship loaded with thousands of tons of grain out of port from a war-torn nation into mine-infested waters? That question became relevant with the launch this week of an innovative scheme to allow grain shipments to be exported from Ukrainian ports. Already, the prospects of food scarcity and political unrest, particularly in hungry nations in North Africa and the Middle East, have eased somewhat. But the maritime procedures are far from settled, and for the first few ships sailing outbound, the challenges are daunting.

Estonia’s Top Diplomat Wants EU-Wide Ban on Russian Visas; Reinsalu, on visit to Ukraine, says Russia must be isolated; ‘We have to raise the cost,’ Reinsalu says in interview
Ott Tammik – Bloomberg
Estonia’s top diplomat called for a European Union-wide ban on travel visas for Russian citizens, saying the bloc should further isolate the country as President Vladimir Putin pushes ahead with his invasion of Ukraine.

Ukraine Fires on Bridges, Rail Lines, to Disrupt Russian Defense of Kherson
Isabel Coles and Evan Gershkovich – WSJ
Ukrainian forces struck a railway bridge in the southern Kherson region on Thursday, the Ukrainian military said, as it seeks to cut Moscow’s supply lines in preparation for a looming counteroffensive. Ukrainian forces have concentrated fire on crossings over the Dnipro river, last month destroying a large road bridge 3½ miles to the east as well as striking the railway bridge. Damage to the two bridges—both called Antonivskiy—has forced Moscow to use military ferries to resupply its forces in the city of Kherson and other areas on the western side of the river.

U.S. Bid to Cap Russian Oil Prices Draws Skepticism Over Enforcement; The maritime insurance industry says policing oil transactions is not workable, raising questions about enforcement of a buyers’ cartel.
Alan Rappeport – NY Times
The Biden administration’s push to form an international buyers’ cartel to cap the price of Russian oil is facing resistance amid private sector concerns that it cannot be reliably enforced, posing a challenge for the U.S.-led effort to drain President Vladimir V. Putin’s war chest and stabilize global energy prices.

Exchanges, OTC and Clearing

About 200 Chinese firms are at risk of getting kicked off the Nasdaq and NYSE
Jennifer Pak –
In late 2017, a Chinese upstart called Luckin Coffee entered what was mostly a luxury sector in China. Starbucks stores in mainland China were prestigious and pricey, but Luckin offered cheaper coffee. Its selling point was that customers could order and pay through its app. A 2018 report by state-run broadcaster CGTN described Luckin’s “cashless coffee” as a refreshing addition to the market. The reporter demonstrated how she could get delivery to her office in 15 minutes, even for just one iced latte.

China’s tech crackdown, a national security law, and an expat exodus have pummeled Hong Kong. Can this CEO save the city?
Clay Chandler – Forbes
For eight years, the bustling financial hub had been an ideal base for meeting people, managing capital, and getting things done, enabling Aguzin to lead a major regional expansion for the U.S. bank. That success had landed Aguzin a new role, as head of JPMorgan’s international private bank. Suddenly, being stationed in Hong Kong was a disadvantage. There were the endless late-night calls to colleagues and clients in the U.S. and Europe. Worse, Hong Kong’s strict “COVID-zero” approach to combating the pandemic, requiring inbound travelers to endure weeks of hotel quarantine, had made getting in and out of the city almost impossible.

CME Group to Launch Euro-denominated Bitcoin and Ether Futures on August 29
CME Group
CME Group, the world’s leading derivatives marketplace, today announced it plans to further expand its cryptocurrency derivatives offering with the introduction of Bitcoin Euro and Ether Euro futures on August 29, pending regulatory review. Designed to match their U.S. dollar-denominated counterparts, Bitcoin Euro and Ether Euro futures contracts will be sized at five bitcoin and 50 ether per contract. These new contracts will be cash-settled, based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, which serve as once-a-day reference rates of the euro-denominated price of bitcoin and ether. These new futures contracts will be listed on and subject to the rules of CME.

Intercontinental Exchange Reports Strong Second Quarter 2022
Intercontinental Exchange (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today reported financial results for the second quarter of 2022. For the quarter ended June 30, 2022, consolidated net income attributable to ICE was $555 million on $1.8 billion of consolidated revenues, less transaction-based expenses. Second quarter GAAP diluted earnings per share (EPS) were $0.99. Adjusted net income attributable to ICE was $739 million in the second quarter and adjusted diluted EPS were $1.32. Please refer to the reconciliation of non-GAAP financial measures included in this press release for more information on our adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted EPS and free cash flow.

Intercontinental Exchange Approves Third Quarter Dividend of $0.38 per Share
Intercontinental Exchange (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, announced today a $0.38 per share dividend for the third quarter of 2022, which is up 15% from the $0.33 per share dividend paid in the third quarter of 2021. The cash dividend is payable on September 30, 2022 to stockholders of record as of September 16, 2022. The ex-dividend date is September 15, 2022.

Clearstream and Pirum offer new collateral interoperability service navigation
Deutsche Börse
Clearstream and the securities finance automation provider Pirum have extended their services to offer new collateral connectivity. This allows mutual clients to automate the calculation, matching, submission and validation of collateral requirements and allocations for securities lending, repo and OTC derivative transactions. The extended connectivity assists clients with agreeing collateral on a real-time basis, reducing collateralisation timeframes and increasing efficiencies along the value chain, from improving settlement rates and reducing fails and SDR penalties to optimising collateral more efficiently.

Foreign investors and households hold two thirds of Spanish equities
Non-residents’ ownership of listed companies fell by one percentage point to 48.8% and that of households remained at 17.1%. The weight of banks in the Spanish stock market rises to 3.5%, a six-year high, and that of non-financial companies stands at 20.9%, in line with the previous year. Non-resident investors controlled 48.8% of Spanish shares at the end of 2021, 1.1 percentage points less than a year ago. Nonetheless, they remain the leading owner group of Spanish listed companies, according to the BME Research Department’s latest update to a report which it has produced for three decades now. Households are the second major owner group, which own 17.1% of the shares, the same percentage as in the previous year. Together, these two groups own two thirds of Spanish equities, well above the rest of investors.

CME Group Declares Quarterly Dividend
CME Group
CME Group Inc., the world’s leading derivatives marketplace, today declared a third-quarter dividend of $1.00 per share. The dividend is payable September 27, 2022, to shareholders of record as of September 9, 2022.

Cboe Global Markets Reports Trading Volume for July 2022
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today reported July monthly trading volume statistics across its global business lines.
The data sheet “Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report” contains an overview of certain July trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.

Strong volume growth across the EURO STOXX index family in July
Zubin Ramdarshan – Eurex
Are we seeing a dead-cat bounce, or is Jim Cramer right? The jury is still out. In July, equity markets saw relative relief from the selling pressure as some seized upon the interest rate neutrality language used by the Fed as an indication that further rate increases were less likely. The bounce was most pronounced for U.S. markets, specifically the battered tech sector, though both the FTSE 100 and broad STOXX® Europe 600 ended with monthly gains. As global interest rates mean revert, real estate has started to wobble in certain countries, notably China and Australia. Another secondary effect is the re-emergence of FX carry trades resulting in a strong dollar. So, expect to hear more American accents in the Mediterranean this summer.

ASX Group Monthly Activity Report – July 2022
Listings and Capital Raisings. In July 2022, total capital raised was $9.3 billion, down 10% on the previous corresponding period (pcp).

EBS Market on CME Globex Notice
CME Group
Topics in this issue include: Critical Information; Announcements and Additional Resources.

Shanghai-Hong Kong Stock Connect – Post Release Test For The Migration To New Shanghai Stock Exchange (Sse) Trading Gateway
Following the successful completion of practice sessions and End-to-End testing session, China Connect Exchange Participants (CCEPs) are requested to note that a Post Release Test (PRT) for the migration organized by SSE will be arranged on 6 August 2022 (Saturday). Participation is optional and CCEPs who wish to join are required to complete the registration and return to the Exchange on or before noon of 5 August 2022 (Friday).

Results of “Availability of English Disclosure Information by Listed Companies” Survey as of July 2022
Tokyo Stock Exchange, Inc. (TSE) promotes English disclosure by listed companies in order to enhance convenience for overseas investors and allow them to make appropriate investment decisions based on information disclosed by listed companies. As part of this effort, since 2019, TSE has been conducting surveys on the availability of English disclosure information by listed companies and providing a list of the results through its website to a wide range of people including overseas investors.In order to shed light on the situation after the transition to the new market segments in April 2022, TSE has carried out the survey as of July 2022 and has now published the results.

A meeting of the Investor Protection Club was held
On August 4, 2022, a meeting of the Investor Rights Protection Club, created by the Moscow Exchange together with the professional communities of the financial market, was held. The purpose of creating the club is to form a single information space for market participants, as well as to defend the interests of investors in the conditions of economic restrictions imposed by the European Union on the National Settlement Depository (NSD, part of the Moscow Exchange Group).

Revised Articles of Association of Shanghai International Energy Exchange co., Ltd
Shanghai International Energy Exchange has announced its Circular on Releasing the Revised Articles of Association of Shanghai International Energy Exchange co., Ltd
Updated on:Aug 04,2022. Shanghai International Energy Exchange has announced its Circular on Releasing the Revised Articles of Association of Shanghai International Energy Exchange co., Ltd as follows: The Revised Articles of Association of Shanghai International Energy Exchange co., Ltd has been approved by INE board of directors and China Securities Regulatory Commission.


Elon Musk subpoenas Goldman Sachs and JPMorgan in Twitter takeover fight; Latest legal manoeuvre comes ahead of trial over Tesla chief executive’s attempt to walk away from $44bn deal
Joshua Franklin and Sujeet Indap – FT
Elon Musk has subpoenaed Goldman Sachs and JPMorgan Chase for details on how the two Wall Street banks advised Twitter on his proposed $44bn buyout of the social media company, which the Tesla chief executive is now seeking to abandon. It is the latest legal manoeuvre in the litigation between Musk and Twitter, which is trying to force him to complete the deal after he claimed the company had breached their merger agreement.

Crypto winter may temper fintech earnings
Manya Saini and Niket Nishant – Reuters
Wall Street has lowered earnings expectations for once high-flying fintechs Coinbase (COIN.O) and Block (SQ.N), as a chill in the cryptocurrency market adds more pain to the companies already grappling with surging costs and rapidly rising rates.
Crypto exchange Coinbase is expected to report an adjusted loss in the second quarter, while Jack Dorsey-led payments company Block is likely to post a 70% drop in adjusted profit.

Big Tech Is the West’s Surprise Weapon in Competition With Russia, China; Ukraine’s trust in Amazon, Microsoft, Google contrasts with Western ambivalence toward companies’ reach
Greg Ip – WSJ
In February, Ukraine passed a law allowing private cloud providers to host government data outside its borders, then struck contracts with Amazon Web Services, Microsoft Corp., Oracle Corp. and Alphabet Inc.’s Google. Days later Russia invaded, and a missile destroyed a data center in Kyiv where information had been stored, said Mykhailo Fedorov, Ukraine’s minister of digital transformation. “All of the backups were already transported to other European countries and no damage was done,” he said.

Eventus wins fourth major award in five weeks with Risk Technology Award for Trade Surveillance Product of the Year; Voted Best Market Surveillance Provider by market participants in Waters Rankings Awards
Eventus, a leading global provider of multi-asset class trade surveillance and market risk solutions, today won its fourth major award in the past five weeks as the firm’s Validus platform was named Trade Surveillance Product of the Year at the 2022 Risk Technology Awards. On July 15, Eventus won Best Market Surveillance Provider in the Waters Rankings Awards, in which “best-in-class service providers” are determined by votes from thousands of sell-side and buy-side market participant readers of WatersTechnology.

10 Fintech Stocks Getting Hammered Amid Economic Weakness
Hamna Asim – Yahoo Finance
Economic weakness and a lack of short-term catalysts in the fintech sector have called for a re-rating across the space. Credit Suisse analyst Timothy Chiodo said in a report on July 24 that the falling valuations and rapid downgrades in the fintech industry are attributed to higher interest rates, rampant inflation, global macro tightness, geopolitical instability in Europe, and forex headwinds.

What Fintech Companies Need to Know About GLBA and FCRA Exemptions Under State Data Protection Laws
Orrick, Herrington & Sutcliffe LLP – JDSupra
The financial technology (“Fintech”) industry has boomed over the last decade, from the rise of mobile payment apps, robo-advisers, lending platforms, consumer-friendly brokerages to cryptocurrency trading platforms. By their nature, many Fintech companies deal with highly sensitive consumer personal and financial information and face a host of privacy concerns and legal obligations that flow therefrom. In the United States, instead of a single federal regulatory framework governing all personal information, there are several different laws and regulations that impose various privacy and data security requirements on different sectors or jurisdictions. In addition to these federal laws, Fintechs must also remain aware of requirements under the ever-expanding patchwork of state data protection laws. This article provides an overview of U.S. state data protection laws and carve-outs for federal laws that may be applicable to Fintechs.


Taiwan defence ministry: Website hit by cyber attacks amid China tensions
Taiwan defence ministry said on Thursday its website suffered cyber attacks and went offline temporarily, adding it was working closely with other authorities to enhance cyber security as tensions with China rise.

The Cybersecurity Parallel Universe: Let’s Get Back To Basics
JC Gaillard – Forbes
I think it’s about time we go back to basics with most of our cybersecurity commentaries. After re-reading some articles I wrote years ago, it worries me that I would hardly change a word in a 2016 piece titled “Cyber Security: When True Innovation Consists of Doing Now What You Should Have Done Ten Years Ago.”

New U.S. Tech Laws Play Russian Roulette With Cybersecurity
Toomas Hendrik Ilves – Newsweek
Fifteen years ago, the Estonian government that I Ied decided to move a statue.
Unveiled by the Soviet regime in 1947, the Bronze Soldier was originally called “Monument to the Liberators of Tallinn.” But for Estonians, Red Army soldiers were not liberators. They were occupiers. And the Bronze Solider in the center of our capital city was a symbol of Soviet oppression.

How IT Teams Can Use ‘Harm Reduction’ for Better Cybersecurity Outcomes
Tara Seals – DARKReading
It’s a well-known fact that humans are — and will continue to remain — one of the weakest links in any company’s cyber defenses. Security admins have tried to help the situation through random phishing tests and training, ultimatums, eliminating local control over a given device, and even naming and shaming those unlucky souls who clicked on the wrong link in an email.

NSF-funded research aims to improve equity in cybersecurity design
Security Magazine
Engineers from the University of Florida (UF) are leading an effort to understand how groups like people with disabilities, those with a low socioeconomic status, children and the elderly are marginalized by current technologies like smartphones and video conferencing and how current and future technologies can be designed to be more inclusive and secure.


Crypto exchange Binance taps its 36-year-old billionaire co-founder He Yi to lead its $7.5 billion venture capital division
Nicholas Gordon – Fortune
The world’s largest cryptocurrency exchange is turning to one of its earliest leaders to help guide its venture capital efforts. On Wednesday, Binance announced that He Yi—its 36-year-old co-founder—would take over Binance Labs, the company’s venture capital arm.

Bitcoin Miner Made Millions in Credits by Shutting Rigs During Texas Heat; Riot Blockchain earned about $9.5 million in credits in July; amount earned will be credited against its power invoices
David Pan – Bloomberg
Riot Blockchain Inc. earned about $9.5 million in credits last month from shutting down its Bitcoin mining rigs at a Texas facility while the region weathered a historic heat wave. The amount will be credited against the company’s power usage. The value of the credit is equal to around 439 Bitcoin. Riot also mined 318 coins during the month, according to the company’s monthly production and operations update.

Solana Brings Crypto to Real World While Virtual Setbacks Abound; Digital wallet hack is of little concern at New York IRL store; Over 1,000 tutorials have been conducted with crypto curious
Immanual John Milton – Bloomberg
The hack of thousands of digital wallets related to Solana was the talk of the crypto world Wednesday — except at the recently opened retail space dedicated to the blockchain network that is located in New York’s Hudson Yards.

New cryptocurrency oversight legislation arrives as industry shakes
AP via
A bipartisan group of senators on Wednesday proposed a bill to regulate cryptocurrencies, the latest attempt by Congress to formulate ideas on how to oversee a multibillion-dollar industry that has been racked by collapsing prices and lenders halting operations.

Another crypto bridge attack: Nomad loses $190 million in ‘chaotic’ hack
Jennifer Korn – CNN
Heists continue to plague the crypto world, with news of large sums stolen from digital currency firms seemingly every month. But while crypto exchanges were once the main point of attack, hackers now appear to have a new target: blockchain bridges.

Voyager Digital CEO Sold Shares Near Peak Trading Price; Voyager Digital’s CEO sold $31 million of shares a year and a half before the company’s bankruptcy, a media report says.
Ellen Chang – The Street
Voyager Digital’s (VYGVF) – Get Voyager Digital Ltd Report CEO sold shares of the cryptocurrency platform and lender near its peak trading price and a year and a half before the company went into bankruptcy proceedings, a media report says. Voyager CEO Steven Ehrlich cashed out of the shares in February and March 2021. The lender filed for bankruptcy in July 2022, CNBC reported, citing the Canadian Securities Administration.

Bitcoin at $35K? SBF would ‘—-ing take that’
Marco Quiroz-Gutierrez – Fortune
Bitcoin has taken a beating since its highs in November, but billionaire FTX CEO Sam Bankman-Fried thinks the pain may soon come to an end. “I think we’ve seen the worst already in crypto. I think the carnage is mostly over. There’s a little more to come, but it’s not very bad,” he told Fortune for an exclusive cover story.

Lessons Learned While Riding Crypto’s Rollercoaster
Dan Morehead, CEO and Co-CIO of Pantera Capital joins Galaxy Digital Founder and CEO Mike Novogratz at Consensus 2022 to discuss what we’ve learned from the successes and failures of the crypto revolution. Moderator: Zack Seward, Deputy Editor-in-Chief, CoinDesk

MicroStrategy racks up $1 billion loss, says CEO will leave that post
Emily Bary – MarketWatch
MicroStrategy Chief Executive Michael Saylor will be stepping down from that post and focusing on his board role, a change announced Tuesday as the software company that has made big bets on bitcoin posted a decline in revenue and took a large impairment charge in the wake of a decline in digital-asset prices.

Canadian Crypto Firm CoinSmart Is on the Hunt for Cheap Assets
Layan Odeh – Bloomberg
CoinSmart Financial Inc. is looking for deals in Canada, Europe and the US as turmoil in the cryptocurrency industry creates opportunities, according to Chief Executive Officer Justin Hartzman.

MicroStrategy Reports $918M Impairment Charge on Bitcoin Holdings in Q2
Nelson Wang – CoinDesk
MicroStrategy (MSTR) took a non-cash digital asset impairment charge of $917.8 million on its bitcoin (BTC) holdings in the second quarter, up from $170.1 million in the first quarter and $424.8 million in the second quarter of 2021, according to its latest earnings rep

Buy Crypto Now, Pay for It Later; Does the popular online shopping option work for digital assets?
Victoria Vergolina – Bloomberg
If you’re an avid online shopper, you’ve probably been prompted to “buy now, pay later” from companies like Klarna and Afterpay. Just as you’re about to hit “buy,” you’re offered the option of paying in installments rather than all at once, and often with the promise of no interest on those payments. These digital options skyrocketed over the last several years — and now, BNPL has come for crypto through a decentralized finance lender called Teller.

Crypto Has No Place in Private Banking for Now, Pictet Says; Firm’s Asia wealth CEO stresses asset’s volatility at summit; Crypto firms see venture, institutional investment picking up
Krystal Chia and Suvashree Ghosh – Bloomberg
Pictet Group, the Swiss wealth manager, is cautioning against crypto investments amid the recent industry turmoil. “Crypto will be an asset class that we cannot ignore, but today I don’t think there is a place for private bankers and for private bank portfolios,” Tee Fong Seng, chief executive officer at the Geneva-based firm’s Asia wealth management arm, said on a panel at the Bloomberg Asia Wealth Summit in Singapore on Thursday.

PwC crypto head sets up digital asset fund in Dubai; Regulatory pressure in other cities has made operating from the Gulf state more appealing
William Langley and Scott Chipolina – FT
PwC’s global crypto leader has left his role at the company to set up a digital assets fund in Dubai, highlighting how the city is attracting cryptocurrency business while other perceived hubs including Singapore and Seoul are increasing scrutiny of the sector.


How the newest megadonor wants to change Washington; Sam Bankman-Fried has a big fortune and big plans for how to spend it — including an unusual political power-building strategy.
Elena Schneider – Politico
One of the biggest donors in Democratic politics this year isn’t sure if he really wants to be a Democratic megadonor — at least not on the party’s terms. But then, part of life as Sam Bankman-Fried is about embracing paradoxes. The 30-year-old, who has amassed an estimated $20 billion fortune over the last four years through cryptocurrency, drives a hybrid Toyota Corolla. A monk-like aesthetic extends from his clothes — he showed up to chat in a wrinkled T-shirt and beat-up New Balance sneakers — to his personal life. He shares a penthouse with about 10 roommates and cooks for himself. He still uses his parents’ Netflix account. When he lobbies in Washington, D.C., he’ll often crash on his brother’s couch.

Crypto Guidance That Banks Rely on Targeted by Elizabeth Warren; Letter to call for OCC to pull Trump-era legal interpretations; Says crypto market turmoil has heightened concerns about risks
Allyson Versprille – Bloomberg
Massachusetts Democrat Elizabeth Warren is circulating a letter among her Senate colleagues that would ask a key US bank regulator to withdraw legal guidance that has underpinned Wall Street’s foray into crypto.

Sinema Seeks to Keep Private Equity Break, Curb Corporate Tax; Manchin has insisted that carried interest remain in bill; Sinema requests could shrink taxes by more than $100 billion
Laura Davison and Erik Wasson – Bloomberg
Senator Kyrsten Sinema is seeking to preserve a tax break for investment managers and narrow a levy hike on large corporations in the economic package Democrats want to pass as soon as this week, people familiar with the discussions said.

Manchin Deal Tosses $30 Billion Lifeline to US Nuclear Reactors
Ari Natter – Bloomberg
Struggling nuclear reactors would get a $30 billion lifeline under the Democrats’ climate change and tax bill that could save dozens of nuclear power plants from an early retirement.

New Senate Proposal Could Give CFTC Crypto Oversight
The U.S. Senate Committee On Agriculture, Nutrition & Forestry is set to introduce a bill Wednesday allowing the Commodity Futures Trading Commission (CFTC) “exclusive jurisdiction” over digital commodities. CoinDesk Global Policy & Regulation Managing Editor Nikhilesh De discusses what we know so far and what to expect.

China Fires 11 Missiles Near Taiwan in Biggest Test in Decades; China drills in six areas surrounding Taiwan started at noon; Taiwan downplays impact on airplane routes and shipping
Cindy Wang – Bloomberg
China fired its largest missile tests in Taiwan’s waters in decades, the day after US House Speaker Nancy Pelosi defied Beijing by visiting the self-ruled island it claims as its own. The People’s Liberation Army fired 11 Dongfeng ballistic missiles into waters north, east and south of Taiwan between 1:56 p.m. and 4 p.m. local time Thursday, the island’s Defense Ministry said in a statement. Sun Li-fang, a ministry spokesman, earlier said missiles had been fired from land.

Washington ratifies Sweden and Finland’s Nato membership; US becomes 23rd country to approve Nordic countries’ membership but Turkey remains a holdout
Felicia Schwartz, Richard Milne and Laura Pitel – FT
The US Senate ratified Finland and Sweden’s accession to Nato, a crucial step towards bringing the Nordic countries into the military alliance as the war between Russia and Ukraine grinds on.


Tyson Foods ignoring subpoena for meat price gouging probe, NY attorney general says
Jonathan Stempel – Reuters
Tyson Foods Inc (TSN.N), one of the largest U.S. meat producers, is refusing to comply with a subpoena for a civil probe into possible price gouging during the COVID-19 pandemic, New York’s attorney general said on Wednesday.

New York financial regulator levels its first crypto enforcement action on Robinhood
Crystal Kim – Axios
Drive-by regulating usually happens on roads where set rules don’t really exist, explaining the steady drumbeat of enforcement action levied against crypto firms. But that style of regulation has now hit New York, where crypto rules are deemed so onerous by the industry that they prompted mass exodus.

Coinbase ex-manager pleads not guilty to insider trading charges
Luc Cohen – Reuters
A former Coinbase Global Inc (COIN.O) product manager and his brother pleaded not guilty on Wednesday to wire fraud charges in what U.S. prosecutors called the first insider trading case involving cryptocurrency.

Statement of Chairman Rostin Behnam
Today, Commodity Futures Trading Commission Chairman Rostin Behnam issued the following statement on the introduction of digital commodity regulation legislation by Senators Stabenow and Boozman:

SEC Charges Surgical Implant Manufacturer Surgalign and Former Senior Executives with Accounting and Disclosure Fraud
The Securities and Exchange Commission today charged Surgalign Holdings, Inc., formerly RTI Surgical Holdings, Inc., and former executives Brian Hutchison and Robert Jordheim for masking disappointing sales numbers by shipping future orders ahead of schedule to accelerate, or “pull forward,” revenue and then failing to disclose this practice to investors. In June 2020, RTI restated its public financial statements from 2014 through 2019 to correct errors caused by this practice.

SEC Charges Hawaii-Based Submarine Tour Operator and Its Principals with Offering Fraud and Misappropriation of Investor Funds
The Securities and Exchange Commission today filed charges against Semisub, Inc., Curtiss Edward Jackson, and Jamey Denise Jackson for allegedly conducting an offering fraud and misappropriating investor funds for their personal use.

SEC Charges Surgical Implant Manufacturer Surgalign and Former Senior Executives with Accounting and Disclosure Fraud
The Securities and Exchange Commission today charged Surgalign Holdings, Inc., formerly RTI Surgical Holdings, Inc., and former executives Brian Hutchison and Robert Jordheim for masking disappointing sales numbers by shipping future orders ahead of schedule to accelerate, or “pull forward,” revenue and then failing to disclose this practice to investors. In June 2020, RTI restated its public financial statements from 2014 through 2019 to correct errors caused by this practice.

FMA survey sheds light on New Zealanders’ experiences with financial sector and concepts of fair treatment
Most New Zealanders are confident in their ability to make financial decisions, but only one-fifth say they are in a secure financial position. A new research project by the Financial Markets Authority (FMA) – Te Mana Tatai Hokohoko – has revealed insights into the mindset and motivations of consumers as they manage their money and deal with financial services firms.

FCA confirms new rules to improve oversight of Appointed Representatives
ARs are not authorised by the FCA – they can offer certain financial services or products under the responsibility of authorised firms (known as principals). Principal firms are responsible for ensuring their ARs comply with our rules. While some principals do this effectively, many do not adequately oversee the activities of their ARs.
As a result, the rules will help prevent consumers being mis-sold or mis-led by ARs and will prevent misconduct by ARs undermining markets operating fairly and safely. Under them, principal firms will need to:

ASIC publishes updated Financial Services and Credit Panel regulatory guidance and new ‘your rights’ infosheet
ASIC – Australian Securities and Investments Commission
ASIC has today released new guidance about the Financial Services and Credit Panel (FSCP), including an update to Regulatory Guide 263 Financial Services and Credit Panel (RG 263) and the new Information Sheet 273 FSCP decisions: Your rights (INFO 273).
RG 263 provides an overview of the purposes and composition of the FSCP, an outline of the actions a sitting panel may take, as well as the FSCP’s processes and procedures around hearings, decisions and confidentiality. Our update of RG 263 takes into account submissions received in response to Consultation Paper 359 Update to RG 263 Financial Services and Credit Panel (CP 359).

Investing and Trading

Thomson Reuters raises sales outlook on core business strength in slowing economy
Thomson Reuters Corp (TRI.TO) reported higher second-quarter operating profit on Thursday and raised its full-year revenue forecast, citing strength in its legal, tax and accounting and corporates businesses.

Ex-Lukoil Traders Jump to US-Based Hartree’s Fuel Oil Desk; Hires come as Russian sanctions prompt Lukoil resignations; Move marks Hartree’s second foray into fuel-oil trading
Lucia Kassai, Jack Wittels, and Rachel Morison – Bloomberg
Hartree Partners LP, the commodities trading firm founded by a pair of Goldman Sachs Group Inc. veterans, hired three ex-Lukoil PJSC traders to build out its fuel oil desk. Harry Thwaites, the former global head of fuel oil trading at Lukoil’s trading arm Litasco SA, is now Hartree’s senior fuel oil trader in London, according to people with knowledge of the situation. Marc Holm, also previously with Lukoil, started this summer as a senior fuel oil trader based in Houston. A third Litasco alum, Kevin Brown, was hired for a US desk, while Roberto Levier, formerly of Monjasa, joined as a marine fuel trader in London.

This Tiny Firm Just Surpassed Goldman Sachs With a 14,000% Gain; Convoluted ownership structure behind AMTD Digital points to Calvin Choi, an ex-UBS banker who’s fighting an industry ban in Hong Kong.
Venus Feng, Pei Yi Mak, and John Cheng – Bloomberg
The world, apparently, has a new financial giant. AMTD Digital Inc., a Hong Kong-based company that listed in New York less than three weeks ago, has surged so much that the combined market value of its Class A and Class B shares was more than $203 billion as of Wednesday’s close. That means the firm — which develops digital businesses, including financial services — is worth more than Wells Fargo & Co., Morgan Stanley and Goldman Sachs Group Inc., despite reporting just $25 million in revenue for the year ended April 2021.

Glencore CEO Says He Knew Nothing About Company’s Corruption; Company admitted to bribery and manipulation in 2007-2018; Gary Nagle said that issue ‘was not widespread’ at Glencore
Jack Farchy – Bloomberg
Glencore Plc’s chief executive officer says he didn’t know anything about corruption at the company and denied that the issue was widespread. “I was not involved and had no idea about any of the misconduct and incidents that have been uncovered as a result of this investigation,” Gary Nagle, who became CEO last year and has worked at Glencore since 2000, told journalists.

Are Animal Spirits Running Into a Dumb Money Trap? Rising confidence is coming from many sources, but it’s also crossing a key threshold suggesting traders have lost their heads.
John Authers – Bloomberg
For some reason, people are feeling good. Animal spirits are on the run. For one dramatic illustration, if we use the popular (but wildly over-simplistic) definition that any 20% gain is a “bull market,” the NYSE Fang+ index is back in a bull market. The index includes the big hegemonic internet platform companies and has been creamed since peaking late last year, but it has now made up that much room since hitting bottom in May:

Glencore posts record $18.9bn profit as coal enjoys a renaissance; Soaring price helps mining and commodity trading group more than double profits
Tom Wilson – FT
Glencore’s profits more than doubled to a record in the first half of the year, cementing the group’s status as one of the biggest winners from the turmoil in commodity markets unleashed by the war in Ukraine. A strong performance at its coal business, which Glencore has stuck with even as rivals retreat from the controversial fuel, accounted for almost half of the FTSE 100 group’s record $18.9bn in adjusted earnings.

Environmental, Social and Corporate Governance

Scientists say the world needs to think about a worst-case “climate endgame”
Tina Kraus, Ian Lee – CBS News
A team of international scientists says the world needs to start preparing for the possibility of a “climate endgame” as extreme weather events keep ravaging the planet. From raging wildfires to catastrophic flooding, the effects of climate change can be seen all around. So far, the conversation has been primarily about how to prevent it from getting worse. United Nations Secretary-General Antonio Guterres issued a dire warning at last month’s Petersberg Climate Dialogue conference in Berlin, Germany: “Half of humanity is in the danger zone from floods, droughts, extreme storms and wildfires. No nation is immune,” he said.

Exclusive: Missouri attorney general investigates Morningstar over ESG ratings
Ross Kerber – Reuters
Missouri Attorney General Eric Schmitt has launched an investigation into whether Morningstar Inc (MORN.O) violated a state consumer-protection law through its evaluations of environmental, social and governance (ESG) issues, his office told Reuters. The review is two-pronged, covering ESG matters as well as whether the financial research firm violated a separate Missouri law aimed at protecting Israel from a campaign to isolate the Jewish state over its treatment of Palestinians.

Uniper Warns on German Power Output as Rhine River Dries Up; Low water on the waterway is restricting movement of goods; German power prices for next year jump to record level
Rachel Morison and Priscila Azevedo Rocha – Bloomberg
Uniper SE warned it may have to cut output at two key coal-fired power plants in Germany as the company struggles to get fuel supplies along the Rhine River, exacerbating an energy crunch that has threatened to push the continent’s largest economies into recession.

US Crackdown on Chinese Solar Means Sales Recovery Ruled Out; US solar power equipment imports fell 16% through May; Key China producers have had goods detained under new law
Dan Murtaugh – Bloomberg
Giant solar producers in China are ruling out any recovery in panel exports to the US as a recently enacted law targeting forced labor has stalled negotiations between US project developers and some foreign manufacturers.

Deutsche Bank Sees Carbon Market Bubble; BOS Warns on Governance
Ishika Mookerjee and Sheryl Tian Tong Lee – Bloomberg
Deutsche Bank AG warned of a possible bubble brewing in carbon markets while the Bank of Singapore Ltd. said more attention should be paid to governance, as bankers debated ESG investing at the Bloomberg Asia Wealth Summit in Singapore.

Ukraine can be a leader of Europe’s green transition; A creative approach to the nation’s EU entry talks would let it make progress despite continuing Russian aggression
Heather Grabbe – FT
By reimagining its membership offer to Ukraine, the EU could rally the financing and reform motivation to create the first seriously low carbon economy in Europe. Green membership of the EU would mean two major changes in the bloc’s practices: first, front-loading financial assistance to apply the European Green Deal’s vision immediately rather than after membership; and second, sectoral integration as fast as Ukraine is ready to join parts of the single market, in parallel with entry talks. This new sequencing for the accession process should start with EU standards and legislation in the sectors of most importance to the population, such as mobile roaming in telecoms, as well as the Green Deal goals of making energy, industry and agriculture sustainable.


Nomura Tumbles Most in Three Months After 97% Profit Drop; Losses tied to US asset management firm hit earnings again; CEO Kentaro Okuda has pledged to diversify broker’s business
Takashi Nakamichi and Takako Taniguchi – Bloomberg
Nomura Holdings Inc. shares sank the most in more than three months after reporting earnings that barely eked out a profit, adding urgency to Chief Executive Officer Kentaro Okuda’s plans to diversify Japan’s largest brokerage. The stock fell as much as 5.7% on Thursday in Tokyo before paring some of the decline. That’s the sharpest intraday drop since April 27. Losses tied to American Century Investments, a US asset manager in which Nomura holds a stake, weighed on results for the second consecutive quarter.

Capital One Expands Offices in Manhattan’s Flatiron District; The bank is expanding across three floors at 114 Fifth Ave. even as other companies pare office space given recession fears and remote work.
Natalie Wong – Bloomberg
Capital One Financial Corp. is expanding its offices on Fifth Avenue, even as other companies reconsider real estate footprints amid rising concerns about an economic downturn and the increase in remote work.

Tiger Global blames inflation after 50% drop in flagship hedge fund; Chase Coleman’s group sustains steep losses and admits it ‘underestimated’ effect of rising prices
Antoine Gara – FT
Chase Coleman’s hedge fund Tiger Global ended the second quarter nursing heavy losses amid a tech stock rout that has caused performance across one of the world’s largest hedge funds to plummet.

Vanguard poised to usurp BlackRock as manager of largest bond ETF; BND fund has had net inflows of $6.9bn this year while iShares’ AGG has bled $815mn
Steve Johnson – FT
BlackRock is on the verge of being dethroned as the manager of the world’s largest bond exchange traded fund. The shake-up comes during a tumultuous year for fixed-income funds, with the Bloomberg US Aggregate Bond Index, followed by several large funds, tumbling 10.5 per cent since December amid surging inflation.

Apollo Global Management’s Losses Mount as Investment Red Ink Flows; The asset manager’s unrealized losses, driven by rising interest rates, dominated its second-quarter results
Luis Garcia and Ted Bunker – WSJ
Apollo Global Management Inc. reported its second-straight quarterly loss with a $2 billion deficit stemming largely from rising interest rates that drove down the value of assets held by the firm’s retirement services operations. Apollo’s net loss of $2.05 billion, or $3.53 a share, for the second quarter came as its Athene Holding Ltd. retirement services subsidiary bolstered Apollo’s total revenue, which surged 64% in the period to $2.27 billion from $1.38 billion in the year-earlier quarter.

State Street promotes from within to replace retiring APAC head of global markets; Michele Hardeman is leaving the bank after serving in a variety of senior positions over the last 24 years.
Wesley Bray – The Trade
State Street has selected its former head of FX sales, trading and research to replace retiring APAC head of global markets, Michele Hardeman. Henry Quek has been appointed as head of global markets for the region, replacing Hardeman who has spent the last 24 years with the bank. During her tenure with State Street, Hardeman served in several senior roles including as global head of foreign exchange sales, head of foreign exchange sales for the Americas and head of foreign exchange Australia.

BNP Paribas replaces retiring EMEA head of cash equities execution; New head of cash equities execution for EMEA originally joined BNP Paribas Exane in 2019 and also previously spent 14 years at Morgan Stanley.
Annabel Smith – The Trade
BNP Paribas has selected one of its own, Brian Gallagher, to replace retiring head of cash equities execution for EMEA, Antoine Bisson, The TRADE can reveal. Bisson has held the role for the last 10 years, also previously serving at Deutsche Bank as head of execution services for EMEA and Morgan Stanley as its head of program trading for continental Europe.

Wellness Exchange

Wall Street CEOs Want Zero Quarantine for Hong Kong’s Big Summit; Chief executives of Morgan Stanley, Goldman invited to summit; Hong Kong holds November summit to mark financial hub revival
Cathy Chan and Kiuyan Wong – Bloomberg
Several of Wall Street’s biggest banks have made quarantine-free travel a precondition for senior executives to attend a Hong Kong conference designed to trumpet the financial hub’s revival after years of Covid restrictions battered its reputation.

Eli Lilly to make COVID-19 antibody drug commercially available from August
Eli Lilly and Co (LLY.N) said on Wednesday it plans to make its COVID-19 antibody drug commercially available to U.S. states as well as hospitals and other healthcare providers from August.


Copper Worth Nearly Half a Billion Dollars Goes Missing in China; Onshore depot in Hebei has 200,000 tons less than it should; Risky financing in China exposed by volatility, economy woes
Bloomberg News
A group of Chinese companies are investigating why a commodities storage site in northern China is holding only one third of the copper concentrate they were financing, according to people familiar with the situation.

Germany’s Switch to Diesel From Gas Comes at a Cost; With Russian gas supplies still at risk, German industry is turning to oil to power its factories. It may just be swapping one problem for another.
Javier Blas – Bloomberg
Across Germany, executives have spent the last few months war gaming how to respond if Russian President Vladimir Putin cuts off gas supplies. And many, from tiny companies to global behemoths, have arrived at the same solution: switch to oil.

The Great Resignation Could Soon Be the Great Sacking; As the outlook for the UK economy dims, optimism around the job market also fades, giving leverage back to the employers.
Sommer Saadi – Bloomberg
The tide is turning in the UK jobs market. Earlier this year, a shortage of skilled workers after the easing of lockdown restrictions meant employees had the upper hand. Sizeable pay rises were up for grabs and employers were offering massive bonuses in a desperate attempt to retain talent. But the mass exodus of workers leaving their jobs, dubbed The Great Resignation, may be coming to an end. Early signs show a change underway, thanks to the pinch of rising inflation and the cost of living crisis. The most recent business barometer from Lloyds Banking Group found the rate of businesses planning to hire staff slowed to its softest pace since last year.

Impoverished Zimbabweans turn to scrap metal trade as inflation bites
Nyasha Chingono – Reuters
Shepherd Chowe pushes a cart filled with tins, iron rods and other metallic objects down a dusty pathway in Hopley, a poor settlement about 15 km west of Zimbabwe’s capital, Harare.

In Kenya’s sugar country, volunteers keep election relations sweet
Baz Ratner – Reuters
The khaki-coloured road slicing through Kibigori town in Kenya’s sugar-growing country is more than a county boundary, it is also a faultline dividing communities fielding rival presidential candidates in the Aug. 9 election.


Pearson plans to sell its textbooks as NFTs
Lucy Knight – The Guardian
Textbook publisher Pearson plans to profit from secondhand sales by turning its titles into non-fungible tokens (NFTs), its chief executive has said.
Educational books are often sold more than once, since students sell study resources they no longer require. Publishers have not previously been able to make any money from secondhand sales, but the rise of digital textbooks has created an opportunity for companies to benefit.

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The Spread

Volatility ETFs Aren’t Flashing Signs of Market Fear

Observations & Insight The FIA is seeking fintech startups for its annual fintech showcase, the Innovators Pavilion, at the Futures and Options Expo in Chicago November 14-15. All selected fintech startups will participate in a pitch competition and one will be...

Past JLN Newsletters

SEC charges 11 in ‘massive’ crypto Ponzi scheme

SEC charges 11 in ‘massive’ crypto Ponzi scheme

First Read Hits & Takes John Lothian & JLN Staff Here is your mood brightener of the day from a story in The New York Times by Farnaz Fassihi and Michael Levenson. The lead paragraph reads: The secretary general of the United Nations warned on Monday that...

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