Sam Altman Is Reinstated as OpenAI’s Chief Executive

Nov 22, 2023

First Read

Hits & Takes
John Lothian & JLN Staff

SBF may have some company depending on what sentence CZ gets for the criminal charges he pled guilty to as part of the settlement yesterday with the SEC, CFTC and DOJ.

The Financial Times reported “Binance chief executive Changpeng Zhao has resigned and pleaded guilty to a US criminal charge of failure to protect against money laundering after federal prosecutors unveiled a sweeping case against the world’s largest cryptocurrency exchange.” Binance also pled guilty to criminal charges related to money laundering and breaching international financial sanctions and agreed to pay more than $4.3 billion in penalties.

Meanwhile, Sam Altman spun the world around and bounced the board at OpenAI as he returned to the company as CEO, The New York Times reported. The one board holdover is Adam D’Angelo, the chief executive of Quora. Former U.S. Treasury Secretary Larry Summers also joined the reconstituted board.

Are you stuck for an idea of what to bring to Thanksgiving dinner? The New York Times has an article that might just help titled “Thanksgiving Recipes Our Food Staff Loves” with the subheading “From creamy mac and cheese to pumpkin empanadas, these are the dishes we get the most excited to cook (and eat).” If you can’t find something in those 50 recipes, you are stuck. Bring a bag of Cheetos.

One of the ways I love to make a turkey is by deep frying it. I learned to do it while cooking several turkeys for the Scouts on our Troop’s annual Turkey Feast. However, the trick to deep fried turkey, besides getting the timing right, is safety. The Wall Street Journal has a story titled “It’s Thanksgiving. Beware the Deep-Fried Turkey” with the subheading “Frying is faster and results in a delicious, juicy bird-but do it wrong and your house could burn down.” If you deep fry, be careful out there.

The Friday after Thanksgiving used to be one of the slowest trading days of the year, with the third string brokers and clerks on the trading floor supporting trading. Some years flurries of activity would prompt large market moves because of the lack of liquidity in the markets. However, we never called it “Black Friday” despite the black hole of liquidity in the markets on that day. The Wall Street Journal says data going back to 1950 shows U.S. stocks typically rise over the Wednesday and Friday sessions of Thanksgiving week. Here is the story, including information about which markets are open during this week.

The Friday after Thanksgiving is called Black Friday and the online buying and selling of billions of dollars of commerce is on retail sites. The New York Times has a preview of some of the deals you can get right now in a story titled “Black Friday 2023: The 100+ Best Early Black Friday Deals Available Now.”

Citadel’s Ken Griffin is getting ready to take his eye off the ball, or to keep his eye on the ball, depending on your perspective. Bloomberg reports the Billionaire hyper-focused hedge fund operator and real estate investor is eyeing taking a minority stake in the Miami Dolphins American football team along with buying a stake in the Hard Rock Stadium and the F1 Miami Grand Prix from Dolphins Owner Stephen Ross. Griffin has moved to Miami and the Dolphins are on the rise, especially compared to the football team in his previous home town, the Chicago Bears. I guess it is about time Griffin took up a hobby other than firing underperforming traders.

A young man from my days as Scoutmaster of a Boy Scout Troop was honored at an Eagle Court of Honor with the rank of Eagle Scout. I believe he is the last Scout from the boy troop who I had as a Scout who has gone on to earn this rank. I stepped down from the boy troop in 2016. Another Scout, Eddie Cooke, the brother of David “DJ” Cooke, will be honored at an Eagle Court of Honor on Saturday. David Cooke is the Eagle Scout you helped go to the World Scout Jamboree in Japan and who now works for the Nodal Exchange. My original plan was to step down as Scoutmaster when Eddie became an Eagle. I did not last that long in the role, but he did make it.

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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A new study by the International Institute for Sustainable Development (IISD) titled “Burning Billions: Record Public Money for Fossil Fuels Impeding Climate Action” found that world governments supported fossil fuels with $1.7 trillion in public money in 2022. This was a record high, despite 91% of global carbon dioxide emissions originating from fossil fuels last year. Fossil fuel subsidies promise to be a key issue in climate negotiations taking place at the 28th Conference of Parties (COP28) taking place in Dubai, from Nov. 30 through Dec. 12. Read the IISD press release and download the report here.~SAED

Our most read stories from our previous edition on JLN Options were:
US life insurers piled into index options in Q2 from Risk.net.
The Middle East is hotter than ever in the hedge fund world from Business Insider.
The Crypto Classic from CME Group. ~JB

Subscribe to the JLN Options Newsletter HERE (it’s free).

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Sponsored Content
To reinforce the function of margin, that is to “protect investors,” Japan Securities Clearing Corporation (JSCC), a group entity of Japan Exchange Group (JPX), that handles clearing of JPX’s derivatives market, has changed its Margin calculation methodology from “SPAN method” to “VaR method” on November 6, 2023

Under the VaR Margin calculation method, there are 2 types of calculation methods, Historical Simulation Method (HS-VaR Method) and Alternative Simulation Method (AS-VaR Method).

HS-VaR method is used for Index Futures/Options (such as our flagship contract Nikkei 225 futures, excluding dividends index futures), Japanese Government Bond (JGB) Futures/Options, Interest Rate Futures (3-Month TONA Futures) listed on Osaka Exchange (OSE), and TOCOM’s Electricity and LNG Futures contracts. On the other hand, AS-VaR method is used for OSE’s Dividends index futures, Precious Metals Futures/Options, Rubber Futures, Agricultural Futures and TOCOM’s Energy Futures (other than Electricity/LNG Futures).

* In JST: JST minus 15 hours = Chicago time.
** Instruments subject to AS-VaR Method are also recorded.
CLICK HERE FOR MORE DETAILED INFORMATION
Note: Each Broker decides its handling of the amount of Margin to investors independently based on the Margin requirement JSCC notifies the Brokers. So, the Margin requirement JSCC calls for the Brokers and the amount of Margin Brokers require for investors to deposit may be different.

——————————————-
Contact: Osaka Exchange / Tokyo Commodity Exchange Derivatives Business Development
E-mail: ose-dmg@jpx.co.jp
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Cumulus9 Emerges as a Leader in Margin Transparency at FIA Expo 2023
JohnLothianNews.com

At the FIA EXPO 2023 in Chicago, John Lothian News interviewed the minds behind Cumulus9: Founder & Managing Director Giuseppe Fiocco and Managing Director Rafik Mrabet. They shared how this financial technology startup is revolutionizing margin transparency and risk management for futures commission merchants (FCMs) and their clients.

Watch the video »

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Options Discovery Episode 25: The Science Behind Selecting a Strike; Jermal Chandler, Host of “Engineering The Trade,” Discusses Options Strike Price Selection and More With JLN’s Asma Awass.
JohnLothianNews.com

In this episode of Options Discovery, Asma Awass discusses a vital component of an options contract: the strike price. This episode includes a breakdown of what a strike price is, its value in the contract, how a trader might go about selecting a strike price, and more! Asma then sits down with Jermal Chandler, a seasoned options trader and the host of “Engineering The Trade” on tastylive, and he shares more insight on strike price selection. You can view “Engineering The Trade” here: https://www.tastylive.com/shows/engineering-the-trade

Watch the video »

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The Sudden Downfall of Changpeng Zhao, the Crypto Titan Behind Binance; Deal with DOJ may allow Binance to keep operating, report says; Billionaire played a key role in moving crypto into mainstream
Olga Kharif – Bloomberg
Changpeng Zhao had long cultivated the image of the rugged pugilist of the cryptocurrencies world. When his rival Sam Bankman-Fried’s crypto empire collapsed a year ago, Zhao, or “CZ” as his fans call him, was in the middle of it all, yanking his money in a very public way and helping trigger the ultimately fatal run on the firms. Years earlier he claimed the company’s headquarters was wherever he happened to be, a thinly veiled salvo against regulators trying to nail down jurisdiction. And this March, when US regulators charged Zhao and his firm, Binance Holdings, with violating US securities laws, his on-line response was “4,” which is Zhao code for dismissing something as unworthy of his attention.
/jlne.ws/3R6FjTP

***** My question is, if Binance was not registered, is it registered now?~JJL

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US dollar dominance is facing a crypto-yuan hostile takeover; New challenger approaching
Jay Newman and Richard Carty – Financial Times
It’s no surprise that the US Treasury – whose remit includes combating threats to the dollar and protecting the integrity of the financial system – is warning Congress that dollar-based digital instruments, stablecoins, and crypto exchanges pose significant risks.
/jlne.ws/3Gab6gj

***** Where is the army behind crypto? I don’t even see any leaders.~JJL

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The fallen kings of crypto
AFP
Binance boss Changpeng Zhao has become the most powerful cryptocurrency figure to fall in a two-year period chaotic even by the standards of the notoriously volatile industry. Zhao stepped down as CEO of Binance — the largest crypto exchange in the world — after he and the company pleaded guilty on Tuesday to sweeping US money laundering violations and agreed to fines of more than $4 billion.
/jlne.ws/49LnReV

***** We three kings of crypto and vice…~JJL

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Tuesday’s Top Three
Our top story Tuesday was a tie between Kraken sued by SEC in latest clampdown on crypto exchanges, from the Financial Times, and our MarketsWiki page for Richard Repetto. Second was the Bakkt press release Bakkt announces relaunch of Bakkt Custody with additional functionality and expanded asset support. Third was a tie between the notice of Casino Night from the charity Tuesday’s Children, which recognized Richard Repetto as its U.S. Military & Finance Honoree, and White-label ETF provider agreement highlights Europe challenges, from the Financial Times.

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Lead Stories

Sam Altman Is Reinstated as OpenAI’s Chief Executive; The move capped a chaotic five days at the artificial intelligence company.
Cade Metz, Mike Isaac, Tripp Mickle, Karen Weise and Kevin Roose – The New York Times
Sam Altman was reinstated late Tuesday as OpenAI’s chief executive, the company said, successfully reversing his ouster by OpenAI’s board last week after a campaign waged by his allies, employees and investors. The company’s board of directors will be overhauled, jettisoning several members who had opposed Mr. Altman. Adam D’Angelo, the chief executive of Quora, will be the only holdover.
/jlne.ws/46zbIHm

Binance chief resigns as crypto exchange pays $4bn in fines; US authorities say world’s biggest cryptocurrency platform breached money laundering laws
Stefania Palma and Scott Chipolina – Financial Times
Binance chief executive Changpeng Zhao has resigned and pleaded guilty to a US criminal charge of failure to protect against money laundering after federal prosecutors unveiled a sweeping case against the world’s largest cryptocurrency exchange. The company also pleaded guilty to criminal charges related to money laundering and breaching international financial sanctions, agreeing to pay more than $4.3bn in penalties, US authorities said on Tuesday.
/jlne.ws/49YQOUW

***** Here is The Wall Street Journal’s version of this story.~JJL

The looming threat of fiscal crises; Public debt in high-income countries has reached elevated levels
Martin Wolf – Financial Times
There is a longstanding jibe that IMF stands not for International Monetary Fund, but rather for “it’s mostly fiscal”. That epithet has seemed less generally apposite for a while. Of course, the fund has continued to complain about fiscal incontinence in crisis-hit countries, such as Greece or Argentina. But, in its broader surveillance, it has been relatively relaxed about fiscal policy since the financial crisis. That, however, was the world of “low for long” or even “lower for longer”. This is no longer the world in which we live. The fund has duly changed. Gita Gopinath, first deputy managing director, has sounded the alarm, calling “for a renewed focus on fiscal policy, and with it, a reset in fiscal policy thinking”. The IMF has become “mostly fiscal” again.
/jlne.ws/3uyC7HD

New Binance CEO Teng’s First Job Is to Avert Customer Exodus
Suvashree Ghosh, Anna Irrera and Ben Bartenstein – Bloomberg
Mollify 150 million potentially jittery users, placate belligerent US regulators and keep high-profile founder Changpeng Zhao onside. These are just some of the tasks for crypto exchange Binance’s new head Richard Teng.
/jlne.ws/3QKzbzg

Crypto investors cheer talk of Binance criminal probe resolution
Tom Wilson and Elizabeth Howcroft – Reuters
Crypto investors have welcomed the prospect of a resolution of a long-running U.S. criminal investigation into Binance, reckoning any deal that allows the major exchange to continue operating would remove a nagging risk to the wider market. The U.S. Justice Department (DOJ) is seeking over $4 billion from Binance as part of a proposed resolution of its probe, Bloomberg reported on Monday, citing people familiar with the discussions.
/jlne.ws/40NWmNC

US Treasury market debate around hedge fund collateral intensifies
Davide Barbuscia and Carolina Mandl – Reuters
As U.S. regulators ready rules that would push more trading in Treasuries to a central clearing venue, the industry’s focus is turning on a key question: how much collateral should hedge funds and others put up to trade there. At issue is whether imposing minimum requirements for collateral, called margin or haircuts, would raise trading costs and curb market liquidity versus the need to guard against a painful collapse in the world’s biggest bond market.
/jlne.ws/40XlstB

Sam Altman Returns as OpenAI CEO in Chaotic Win for Microsoft; Reinstatement follows intense pressure from OpenAI’s investors; Altman agreed to internal investigation around his dismissal
Rachel Metz, Emily Chang, and Vlad Savov – Bloomberg
Sam Altman will return to lead OpenAI less than five days after he was pushed out of one of the world’s most valuable startups, setting off a shock back-and-forth drama that transfixed Silicon Valley and the global AI industry. Altman is returning as chief executive officer and the initial board will be led by Bret Taylor, a former co-CEO of Salesforce Inc. The other directors are Larry Summers, the former US Treasury Secretary, and existing member Adam D’Angelo, the co-founder and CEO of Quora Inc. OpenAI is now working “to figure out the details,” the company said in a post on X, formerly Twitter.
/jlne.ws/47ref7s

***** Here is The Wall Street Journal’s version of this story.~JJL

OpenAI Is a Strange Nonprofit; Also Binance prosecution, Ozempic ETF and Manifold Markets.
Matt Levine – Bloomberg
OpenAI: Nonprofit governance. One way to look at the OpenAI situation is that OpenAI is a nonprofit organization, and it is not that uncommon for nonprofits to have tension between their mission and their staff. This is arguably a silly way to look at the situation, because, for a few years ending last Friday, nobody really thought of OpenAI as a nonprofit. OpenAI was an $86 billion tech startup that was building artificial intelligence tools that were expected to result in huge profits for its investors (Microsoft Corp., venture capital firms) and employees (many of whom owned stock). But technically that OpenAI – OpenAI Global LLC, the $86 billion startup with employee and VC and strategic shareholders – was a subsidiary controlled by the nonprofit, OpenAI Inc., and the nonprofit asserted itself dramatically last Friday when its board of directors fired its chief executive officer, Sam Altman, and threw everything into chaos.
/jlne.ws/3G7AR0Z

How Dealers Made a Dent in Wall Street’s Lack of Diversity; Small investment banks owned by women, minorities or veterans are making some progress managing bond sales.
Paul J. Davies – Bloomberg
When drugmaker Amgen Inc. sold $24 billion of bonds in February to fund its takeover of Horizon Therapeutics Plc, it had 12 banks as joint bookrunners and a further 16 as co-managers on the deal. Eight of the 16 were small investment banks certified as owned by women, minorities or military veterans. In April, a $5 billion bond sale from Walmart Inc. had seven similarly owned investment banks out of 15 co-managers, while on RTX Corp.’s $6 billion issue in September, all seven co-managers were like this.
/jlne.ws/3RaCAsA

Fund to compensate developing nations for climate change is unfinished business at COP28
Gaurav Saini and Sibi Arasu – The Associated Press
Sunil Kumar watched helplessly in July as his home and 14 others were washed away by intense monsoon rains lashing the Indian Himalayas. “All my life’s work vanished in an instant. Starting over feels impossible, especially with my three children relying on me,” said Kumar, a waste collector in the village of Bhiuli, in the mountainous state of Himachal Pradesh. This year’s monsoon season in India was devastating, with local governments estimating 428 deaths and more than $1.42 billion in property damage in the region. But India was just one of many developing nations to suffer from extreme weather made worse or more likely by climate change, caused largely by greenhouse gas emissions that result from the burning of fossil fuels.
/jlne.ws/46pyscz

The downfall of the judge who dominated bankruptcy in America; David R Jones made Houston the nation’s insolvency capital before an undisclosed relationship forced his resignation and prompted calls for reform
Sujeet Indap – Financial Times
“There is simply no ambiguity in my mind,” said Judge David R Jones as he made a ruling last May in the bankruptcy case of Serta Simmons Bedding, a large, private equity-backed mattress company. “And I appreciate that perhaps a different court reached a different conclusion but, again, I sit in with these matters every single day…this is very easy for me.”
/jlne.ws/3uy7y4U

How to Tell If a Climate Deal Will Succeed or Fail; There will be a barrage of announcements from COP28 in Dubai. Comparing two agreements from 2021 offer a hint of what will be meaningful.
Akshat Rathi – Bloomberg
It’s about to get very noisy in the climate world as more than 70,000 people flock to the United Arab Emirates for the COP28 summit starting next week. Making sense of the many announcements about to land will be a challenge. The main headlines will rightly focus on what nearly 200 countries agree on at the United Nations-backed meeting. At the end of a year that’s set new records for the amount of planet-warming emissions released and global temperatures, the focus will be whether, despite growing geopolitical tensions, world leaders can do something meaningful to avert more catastrophic heating.
/jlne.ws/3MUvLsE

Jefferies to launch new multi-asset trading platform; Named Tradu, the new platform has been “built by traders for traders,” according to the business; launch is expected next month.
Claudia Preece – The Trade
Stratos Group – a wholly owned subsidiary of Jefferies – has today unveiled its new multi-asset trading platform, Tradu, set to launch in December. The aim of the platform is to streamline multi-asset trading, reducing the number of accounts and apps used across asset classes by “providing clients with an intuitive and advanced platform with a superior trading experience across each of the tradable markets, all from one portal that can be accessed via a mobile app and web platforms”.
/jlne.ws/46rzwfS

LMAX Group given green light for NDF trading in both Singapore and London; The Monetary Authority of Singapore (MAS) has confirmed that LMAX Exchange Singapore is now a recognised market operator (RMO).
Claudia Preece – The Trade
LMAX Exchange Singapore – LMAX Group’s subsidiary – has received regulatory approval to offer Non-Deliverable Forward (NDF) trading in both Singapore and London. The approval came from the Monetary Authority of Singapore (MAS) which granted the exchange a recognised market operator (RMO) licence. Through this move and the launch of NDFs, LMAX clients will be able to hedge their FX exposure against non-convertible currencies on a central limit order book (CLOB).
/jlne.ws/47m5uvq

Regional Banks See ‘Permanently’ Higher Funding Costs, Slok Says
Alexandra Harris – Bloomberg
US regional banks are seeing “permanently” elevated funding costs relative to their major competitors in the wake of the March turmoil that upended the sector and financial markets, according to Torsten Slok at Apollo Management. Eight months after the collapse of Silicon Valley Bank, “large banks continue to enjoy significantly lower funding costs and, hence, higher profit margins than regional banks,” Slok, the firm’s chief economist, said in a note Tuesday.
/jlne.ws/3SNsxuN

Chinese City Cracks Down on Stock Market Rumors Amid Slump
John Cheng – Bloomberg
A Chinese city is taking action against the spread of false information online related to stocks, as authorities seek to revive confidence in the languishing equities market. Police in the city of Chengdu in Sichuan province, southwestern China, has arrested a 30-year-old man for fabricating a foreign media report to say measures to overhaul the stock market are due, according to a statement on Wednesday. The fake rumor has “seriously disrupted the stable operation of the securities market and misled investors and the public,” it said.
/jlne.ws/47mTjyp

Ukraine Invasion

Putin: we must think how to stop ‘the tragedy’ in Ukraine
Reuters
Russian President Vladimir Putin told the Group of 20 leading economies on Wednesday that it was necessary to think about how to stop “the tragedy” of the war in Ukraine, and said Moscow had never refused to participate in peace talks with Kyiv. Putin’s decision to send troops into Ukraine in February 2022 triggered Europe’s deadliest conflict since World War Two and the gravest confrontation between Russia and the West since the depths of the Cold War.
/jlne.ws/3sLO2S4

Russian actress killed in Ukrainian strike while performing to soldiers
Ido Vock – BBC News
A Russian actress has been killed in a Ukrainian strike while giving a performance to troops, according to her theatre. A dance hall in occupied Ukraine where Polina Menshikh was performing was hit by Ukrainian shelling on 19 November. The actress was reportedly giving a show to celebrate a Russian military holiday.
/jlne.ws/3utg85f

Russia’s parliament approves budget with a record amount devoted to defense spending
The Associated Press
Russia’s parliament approved a federal budget Wednesday that increases spending by around 25% in 2024-2026 and devotes a record amount to defense. The budget was passed unanimously by the Federation Council – the upper chamber of the Russian parliament – and will be sent to President Vladimir Putin to sign it into law.
/jlne.ws/47O2eZL

Israel/Palestine Conflict

Israel and Hamas Agree to Cease-Fire for Release of Hostages
The New York Times
The Israeli government and Hamas agreed to a brief cease-fire in Gaza to allow for the release of 50 hostages captured during Hamas’s assault last month on Israel and the release of 150 Palestinian prisoners held in Israel, Qatar said early Wednesday. The cease-fire’s start will be announced within the next 24 hours, and it will last for at least four days, said the government of Qatar, which helped lead the negotiations. It added that the pause in fighting would also allow for more aid and fuel to reach civilians in Gaza.
/jlne.ws/3ST1WN4

What a Truce in Gaza Means for The War; The release of hostages is hugely important, but it doesn’t change the military calculus of either Israel or Hamas.
Marc Champion – Bloomberg
Hamas and Israel just agreed to pause their fight in Gaza for at least four days so they can exchange hostages for prisoners and allow access for humanitarian aid. For the alleviation of suffering among Gaza’s civilian population, that could not be more welcome or necessary. But for those doing the fighting, a pause will matter little beyond providing both sides with an opportunity to regroup.
/jlne.ws/3RcaXPG

Israel approves hostage deal with Hamas; Civilians to be exchanged for Palestinian prisoners, multiple officials say, with fighting to halt for four days
Mehul Srivastava and Neri Zilber, Andrew England, James Shotter, James Politi, Mai Khaled and Heba Saleh – Financial Times
Israel and Hamas have agreed a deal for the release of at least 50 civilian hostages in Gaza in exchange for Palestinian prisoners and a four-day halt to hostilities. The Israeli prime minister’s office said it had approved an agreement that would include a four-day “pause in fighting” to facilitate the release of the first 50 captives. Up to 50 more could be released in a second phase, with an additional day’s ceasefire for every additional 10 hostages released.
/jlne.ws/3ukq5la

There is a crisis of confidence in Israel and Zionism; The murderous attacks by Hamas threw into question the idea that a Jewish state would be the safest home for Jews
Mark Mazower – Financial Times
In the aftermath of the October 7 massacres by Hamas, few responses were more eye-catching than the yellow star worn by Israeli UN ambassador Gilad Erdan. Protesting at the Security Council’s passivity in the face of atrocity, he explicitly evoked the memory of an earlier generation of European Jews under Nazism. What made the gesture so thought-provoking was what it said about the state of mind in Israel today, at a time when international public opinion seems to be turning against it.
/jlne.ws/3unIjlL

Exchanges, OTC and Clearing

ESG.AI to deliver next-generation ESG analytics platforms in partnership with LSEG
Yahoo!Finance
ESG.AI, a Canadian based ESG decision support company, has partnered with the London Stock Exchange Group (LSEG) to deliver a next generation ESG analytics platform. ESG.AI’s platform helps organisations and consultancies visualise ESG data to improve understanding and data quality as well as provide a new level of modelling, planning and impact analysis. The platform enables customers to provide up to date and complete ESG data to ensure the most timely and accurate scores possible in a transparent and quantifiable way, and map data to key performance indicators from the major reporting standards providers.
/jlne.ws/40Of3B0

Javier Hernani highlights the role of financial markets in Latin America’s growth on the first day of the Latibex Forum
BME
The event brings together more than 40 listed companies from Latin America and Spain and 70 investors until tomorrow. The macroeconomic situation of the region, its investment opportunities and urban sustainability were the focus of the first day of the event in its 25th edition. The 25th edition of the Latibex Forum, the benchmark meeting between European investors and Latin American companies organized by BME, held its first day today. Until tomorrow, the Madrid Stock Exchange will host more than 250 meetings between more than 40 listed companies from Latin America and Spain and 70 national and international investors. Throughout its history, more than 200 companies and 1,000 investors have attended the Latibex Forum, where 8,000 meetings have been held. As every year, panels on current issues affecting the region are held in parallel to the meetings between listed companies and investors.
/jlne.ws/3SR5pvi

Re: FSB Consultation report on Financial Resources and Tools for Central Counterparty Resolution
CCP Global
The Global Association of Central Counterparties (“CCP Global”)1 is the international association for central counterparties (“CCPs”), representing 42 members who operate over 60 individual CCPs across the Americas, EMEA, and the Asia-Pacific region. CCP Global appreciates the opportunity to respond to the consultation report on “Financial Resources and Tools for Central Counterparty Resolution” 2 (“the Report”) issued by the Financial Stability Board (“FSB”). We welcome the FSB’s ongoing efforts to support financial stability and confidence in the financial system, including through supporting the utilization of central clearing.
/jlne.ws/3MX5PMV

EEX to extend French Guarantees of Origin (GO) registry to non-renewable power GOs
European Energy Exchange
Following a decree by the French Ministry of Energy Transition, the European Energy Exchange (EEX), as issuing body for French GOs mandated by the French State, is extending its power registry to also include non-renewable GOs from November 2023 onwards. The extended EEX registry will enable account holders to request issuance, transfer and cancellation of non-renewable GOs. As a member of the Association of Issuing Bodies (AIB), EEX will also allow import and export of non-renewable GOs certificates through the AIB hub.
/jlne.ws/47JvNLX

ICE First Look at Mortgage Performance: Foreclosure starts rose in October, despite serious delinquencies returning to 17-year lows
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, reports the following “first look” at October 2023 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.
/jlne.ws/46mEURv

Intercontinental Exchange Chair & CEO Jeffrey C. Sprecher to Present at the Goldman Sachs U.S. Financial Services Conference on December 5
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, announced today that Jeffrey C. Sprecher, Chair and CEO, will present at the Goldman Sachs U.S. Financial Services Conference. The presentation will take place on Tuesday, December 5 at 1:40 pm ET. The presentation will be available live and in replay via webcast and can be accessed in the investor relations and media section of ICE’s website at http://ir.theice.com/.
/jlne.ws/3sJZdL6

LME Asia Week 2024
London Metal Exchange
Summary 1. The purpose of this notice is to inform members and the global metals community of the date and details for LME Asia Week 2024. LME Asia Week 2024 2. As part of LME Asia Week 2024, the London Metal Exchange (LME) and Hong Kong Exchanges and Clearing (HKEX) are pleased to be hosting the LME Asia Metals Seminar and LME Asia Dinner on Thursday 27 June 2024 in Hong Kong SAR. 3. Registrations for the Seminar and Dinner will open in the coming weeks. In the meantime, you can register your interest by contacting the LME Events Team at lmeevents@lme.com.
/www.lme.com/en/News

Welcome to LSEG Risk Intelligence
London Stock Exchange Group
This week marks the launch of our LSEG Risk Intelligence brand. A journey we started earlier this year when we announced that our Customer and Third-Party Risk Business will become LSEG Risk Intelligence. Our new LSEG Risk Intelligence brand reflects our commitment to providing you with more comprehensive solutions – from screening through World-Check, to detailed background checks on any entity or individual through due diligence reports, and innovative identity verification, account verification and customer onboarding services – all helping you successfully manage your risk. To learn more about this exciting change, we’ve prepared a short video for you. Watch it here.
/jlne.ws/47Hk40m

FTSE UK Index Series – Indicative Quarterly Review Changes December 2023
London Stock Exchange Group
FTSE Russell, the global index provider, advises of the following indicative changes to the FTSE 100 and FTSE 250, based on data as of Friday 17th November 2023. PLEASE NOTE: The actual review of the FTSE UK Index Series will be conducted using data as at market close on Tuesday 28th November 2023. Confirmed rebalance changes will be announced after market close on Wednesday 29th November 2023.
/jlne.ws/47HoJ2k

Fintech

X Scrambles to Minimize Damage From Antisemitic Posts; On this episode of Elon, Inc., we discuss how Elon Musk is responding to the firestorm, as well as the mess over at OpenAI.
Sarah Frier, Max Chafkin, and Dana Hull – Bloomberg
It’s been about a week since X-owner Elon Musk ignited a firestorm by endorsing antisemitic and racist posts on his social media platform. (Listen to our emergency podcast on the topic here.) Since then, X Chief Executive Officer Linda Yaccarino has been scrambling to contain the fallout as major advertisers like IBM, Sony, Discovery, Apple and CBS stopped or paused spending on the site.
/jlne.ws/3uy3vFK

The Winners and Losers in Sam Altman’s OpenAI Kingdom; So far, that is. This saga has only reached the end of the beginning.
Dave Lee – Bloomberg
After almost five days, he’s back: Sam Altman returns to OpenAI as its chief executive officer, the very same position he had held just 110 or so hours prior, in what will come to be known in Silicon Valley as “the time before OpenAI imploded.” But this saga has only reached the end of the beginning. We go into the Thanksgiving break wondering what happens next, and what it will mean for the future – not just for OpenAI, but AI more broadly.
/jlne.ws/3GcRGYi

Larry Summers Jumps to Center of AI Stage With OpenAI Board Seat
Mark Bergen – Bloomberg
Late on Tuesday night, OpenAI announced the return of Sam Altman, its ousted chief executive officer, along with a revamped board that included one name not often associated with Silicon Valley: Larry Summers.
/jlne.ws/3ujzN7l

Microsoft Is Discussing Governance Changes It Wants From OpenAI; Company may aim to negotiate bigger, more experienced board; Software maker may want more notice, consent to major changes
Dina Bass – Bloomberg
Microsoft Corp. is discussing a list of governance changes it plans to request from OpenAI’s board in order to improve the board itself and prevent the software giant, the artificial intelligence startup’s biggest investor, from being caught flat-footed by major strategic moves.
/jlne.ws/40RHwpj

OpenAI Rivals See Uptick in Customer Interest After CEO Ouster; AI companies are also attempting to poach employees from OpenAI.
Shirin Ghaffary – Bloomberg
The sudden turbulence at OpenAI has reshaped the competitive landscape for artificial intelligence companies almost overnight. It’s also heightened scrutiny on the industry’s corporate governance practices in ways that could linger even if OpenAI resolves its drama. But first…
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Cybersecurity

iShares Cybersecurity ETF hits year-long high with 27.6% surge
Pollock Mondal – Investing.com
The iShares Cybersecurity and Tech ETF (NYSEARCA:IHAK) has witnessed a significant uptick, reaching a year-long zenith today, with shares soaring 27.6% from their lowest value of $31.87. This rally represents a notable performance in the cybersecurity sector, reflecting investor confidence and growing interest in the industry.
/jlne.ws/3QSRdzg

Australia beefs up cyber defences after major breaches
Byron Kaye – Reuters
Australia will give cyber health checks for small businesses, increase cyber law enforcement funding and introduce mandatory reporting of ransomware attacks under a security overhaul announced on Wednesday after a spate of attacks. The federal government said it will also subject telecommunications firms to tougher cyber reporting rules which apply to critical infrastructure, seek migrants to build up the cyber security workforce and set limits on inter-agency data sharing to encourage people to report incidents.
/jlne.ws/3sUmcTD

Will More Threat Actors Weaponize Cybersecurity Regulations?
Carrie Pallardy – Information Week
On Nov. 10, MeridianLink discovered a threat actor’s access to a non-privileged user account, according to a statement on the digital lending software company’s website. While a breach like this is not novel, the ransomware group behind the attack made an attention-grabbing move. ALPHV filed a formal complaint with the US Securities and Exchange Commission (SEC), calling MeridianLink out for not disclosing the breach.
/jlne.ws/3sDmKgP

Information Security Vs. Cybersecurity: What’s The Difference?
Brandon Galarita and Brenna Swanston – Forbes
Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.
It’s easy to confuse cybersecurity and information security, as the two sectors overlap in many ways. In fact, cybersecurity is a subdivision of information security. However, the areas are not quite the same, with each requiring different skill sets and featuring distinct specialties.
Read on to learn more about the similarities and differences between information security and cybersecurity.
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Cryptocurrencies

CZee you in court; Binance founder said to catch charges
Alexandra Scaggs – Financial Times
Changpeng Zhao may finally make a long-awaited public appearance in the US today. In court, reportedly! He’s expected to appear in federal court in Seattle today, according to the WSJ. The co-founder of Binance “plans to step down and plead guilty to violating criminal US anti-money-laundering requirements, in a deal that may preserve the company’s ability to continue operating,” the paper writes, citing people familiar.
/jlne.ws/3sUFEj4

Politics

How Elon Musk Spent Three Years Falling Down a Red-Pilled Rabbit Hole; His tweet endorsing an antisemitic theory that sent advertisers fleeing comes after years of increasing interaction with extremist content.
Max Chafkin and Daniel Zuidijk – Bloomberg
Elon Musk’s tweet endorsing an antisemitic conspiracy theory seemed to take his business partners by surprise. On Nov. 15 he responded to a social media user who articulated a version of the racist “great replacement theory,” which says that Jews are secretly conspiring with immigrants to destroy White culture. The idea was the inspiration for the deadly shooting at the Tree of Life synagogue in Pittsburgh in 2018. “You have said the actual truth,” Musk wrote.
/jlne.ws/3GbYVzz

UK Inclined to Order Probe into Abu Dhabi-Backed Telegraph Deal; Minister leans toward intevening after lawmaker concerns; RedBird IMI backed by Sheikh Mansour, led by Jeff Zucker
Ellen Milligan – Bloomberg
The UK government is leaning toward ordering a probe into RedBird IMI’s proposed Telegraph deal, after the prospect of an Abu Dhabi-backed fund taking control of the British newspaper raised national security concerns among some Conservative lawmakers. Culture Secretary Lucy Frazer said she’s “minded to” issue a so-called Public Interest Intervention Notice. “This relates to concerns I have that there may be public interest considerations,” that are “relevant to the intended loan repayment by the Barclay family and the planned acquisition of Telegraph Media Group by RedBird IMI,” she said in a statement Wednesday. “These concerns warrant further investigation.”
/jlne.ws/3MWF8Ia

Regulation

Rabobank Fined by EU for Euro Bond-Trading Cartel; Deutsche Bank dodges EUR156 million EU fine for bond collusion; Rabobank was slapped with EUR26.6 million penalty by EU watchdog
Samuel Stolton – Bloomberg
Rabobank was slapped with a EUR26.6 million ($29 million) European Union antitrust fine after traders colluded with counterparts at Deutsche Bank AG over euro-dominated bonds and government-guaranteed bonds. The European Commission on Wednesday said its investigation unearthed evidence that between 2006 and 2016 traders exchanged commercially sensitive information and coordinated their buying and pricing strategies.
/jlne.ws/3unGhSF

Rio Tinto to pay $28mn penalty in US settlement over Mozambique mine; SEC also fines former chief Tom Albanese $50,000 over allegations investors were misled
Tom Wilson – Financial Times
Rio Tinto has agreed to pay a $28mn penalty to the US Securities and Exchange Commission to settle a suit over a failed $3.7bn coal deal in Mozambique more than a decade ago. The settlement brings to an end a long-running series of legal disputes over whether Rio Tinto intentionally misled investors about the disastrous investment, which cost former chief executive Tom Albanese his job.
/jlne.ws/3MQioth

Chinese police arrest tech founder on suspicion of running casino; DouYu chief was taken away by authorities in October after probe of alleged porn and gambling on streaming service
Ryan McMorrow and Qianer Liu – Financial Times
Chinese police have arrested the founder of Tencent-backed game-streaming site DouYu on suspicion of operating a casino, in a rare case of holding a tech entrepreneur criminally responsible for activity on their company’s media platform.
/jlne.ws/3uy97Qk

Binance Former Chief Compliance Officer, Samuel Lim, Agrees to Pay $1.5 Million for Willfully Evading U.S. Law, and Aiding and Abetting the Illegal Operation of a Digital Asset Derivatives Exchange, and Other Violations
CFTC
The Commodity Futures Trading Commission today announced former Binance Chief Compliance Officer, Samuel Lim, agreed to a proposed consent order for permanent injunction, civil monetary penalty, and equitable relief that, if entered by the U.S. District Court for the Northern District of Illinois, will resolve all charges the CFTC brought against Lim for violating the Commodity Exchange Act (CEA) and willfully aiding and abetting Binance’s numerous violations of the CEA as detailed in the CFTC filing against Binance today. [See CFTC Press Release No. 8825-23] The proposed consent order requires Lim to pay a $1.5 million civil monetary penalty.
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Statement of Chairman Rostin Behnam Regarding Binance and its Founder
CFTC
Good afternoon. Thank you, Attorney General Garland, Treasury Secretary Yellen, Deputy Attorney General Monaco, and all of our law enforcement counterparts. Today, the CFTC stands with the Department of Justice and the Treasury Department in protecting U.S. investors and financial markets from those who sought to create an empire through a calculated strategy of regulatory avoidance and arbitrage, outright defiance of the law, and breaching the fundamental principles of market behavior.
/jlne.ws/3GcqiJZ

The Market Risk Advisory Committee to Meet on December 11
CFTC
The Market Risk Advisory Committee (MRAC) will hold a public meeting on Monday, December 11 from 9:30 a.m. to 12:30 p.m. (EST) at the CFTC’s Washington, D.C. headquarters. Members of the public will also have the option of attending virtually. Commissioner Kristin N. Johnson is the sponsor of the MRAC. At the meeting, the MRAC will address current topics including central counterparty risk and governance, market structure developments, climate-related risk, and innovative and emerging technologies affecting the derivatives and related financial markets.
/jlne.ws/49OHqD5

Binance and Its CEO, Changpeng Zhao, Agree to Pay $2.85 Billion for Willfully Evading U.S. Law, Illegally Operating a Digital Asset Derivatives Exchange, and Other Violations
CFTC
The Commodity Futures Trading Commission today announced Changpeng Zhao, and his companies Binance Holdings Limited, Binance Holdings (IE) Limited, and Binance (Services) Holdings Limited (together, Binance) agreed to a proposed consent order for permanent injunction, civil monetary penalty, and equitable relief that, if entered by the U.S. District Court for the Northern District of Illinois, will resolve all charges the CFTC brought against Zhao and Binance for knowingly disregarding provisions of the Commodity Exchange Act (CEA) to profit from their operation of an illegal digital assets derivative exchange.
/jlne.ws/3sUn8r7

SEC Charges Kraken for Operating as an Unregistered Securities Exchange, Broker, Dealer, and Clearing Agency
SEC
The Securities and Exchange Commission today charged Payward Inc. and Payward Ventures Inc., together known as Kraken, with operating Kraken’s crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency.
/jlne.ws/3MZxyN1

SEC Charges New York Businessman with Fraud and Unregistered Sales of Securities to Investors Seeking Permanent Residency in the U.S.
SEC
The Securities and Exchange Commission today charged Nadim Ahmed, a New York-based businessman and his companies, NuRide Transportation Group, LLC and NYC Green Transportation Group, LLC, with making fraudulent misrepresentations in securities offerings to investors seeking permanent residency through the EB-5 Immigrant Investor Program. The SEC also charged Ahmed along with Mehreen Shah a/k/a Mona Shah, a New York-based immigration attorney, and her law firm with offering unregistered securities to investors in offerings that raised more than $66 million from more than 100 investors.
/jlne.ws/3R9OnqZ

SEC Obtains Final Judgment Against Former Mayor in Municipal Bond Offering Scheme
SEC
SEC Obtains Final Judgment Against Former Mayor in Municipal Bond Offering Scheme
On November 6, 2023, the U.S. District Court for the Western District of Louisiana entered a final judgment by consent against defendant Vern A. Breland for his involvement in two fraudulent municipal bond offerings. On August 2, 2022, the Court had entered a final judgment in a related case against defendants Aaron B. Fletcher and Twin Spires Financial LLC for their involvement with Breland in the same fraudulent bond offerings.
/jlne.ws/46GUsjv

SEC Charges Kraken for Operating as an Unregistered Securities Exchange, Broker, Dealer, and Clearing Agency
SEC
The Securities and Exchange Commission charged Payward Inc. and Payward Ventures Inc., together known as Kraken, with operating Kraken’s crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency.
/jlne.ws/49LbJdX

SEC Charges New York Businessman with Fraud and Unregistered Sales of Securities to Investors Seeking Permanent Residency in the US
SEC
The Securities and Exchange Commission today charged Nadim Ahmed, a New York-based businessman and his companies, NuRide Transportation Group, LLC and NYC Green Transportation Group, LLC, with making fraudulent misrepresentations in securities offerings to investors seeking permanent residency through the EB-5 Immigrant Investor Program. The SEC also charged Ahmed along with Mehreen Shah a/k/a Mona Shah, a New York-based immigration attorney, and her law firm with offering unregistered securities to investors in offerings that raised more than $66 million from more than 100 investors.
/jlne.ws/3sQewli

SEC Obtains Final Judgments Against Rio Tinto and Former CEO
SEC
On November 20, 2023, the U.S. District Court for the Southern District of New York entered final consent judgments against Rio Tinto plc and Rio Tinto Limited (collectively, “Rio Tinto”) and Rio Tinto’s former CEO Thomas Albanese. The entry of the consent judgments resolves all claims as to Rio Tinto and Albanese arising out of the SEC’s October 17, 2017 complaint, which alleged, among other things, that certain of Rio Tinto’s public filings contained misleading statements about the value of its Mozambican coal assets.
/jlne.ws/3R6KYcx

SEC Obtains Final Judgments Against Las Vegas Real Estate CEO and His Investment Advisory Firm
SEC
On November 15, 2023, the Securities and Exchange Commission obtained final judgments against Michael V. Shustek and his wholly owned investment advisory firm, Vestin Mortgage LLC.
/jlne.ws/3GeAyS1

SEC Charges Investment Adviser for Custody Rule Violations and Disclosure Failures
SEC
The Securities and Exchange Commission today filed charges against Brite Advisors USA, Inc. (f/k/a deVere USA, Inc.) (“Brite USA”), a NY-based SEC-registered investment adviser, for failing to comply with Commission requirements for the safekeeping of client assets and for failing to disclose material risks and conflicts of interest associated with Brite USA’s recommendations to clients to use a related firm in Australia as a custodian.
/jlne.ws/47mauQX

Investing and Trading

Nvidia Triples Quarterly Revenue, but Sales in China Are a Concern; Demand for the company’s A.I. chips remains high, but it said new U.S. export restrictions would hurt it sales to countries like China.
Don Clark – The New York Times
A start-up driving the artificial intelligence revolution may be in turmoil, but the semiconductor supplier propelling its innovations seems to be getting only stronger. On Tuesday, Nvidia continued its string of blistering quarterly earnings reports, driven by stellar sales for A.I. applications of chips called graphics processing units, or GPUs. Microsoft uses thousands of those chips to handle calculations for OpenAI, the generative A.I. startup whose chief executive, Sam Altman, was fired Friday and swiftly hired by Microsoft as the head of a new advanced research lab.
/jlne.ws/3QTkZUM

ECB warns of ‘early signs of stress’ at eurozone banks as default rates rise; Stability review notes sector’s resilience but urges lenders to increase provisions to cover rising loan losses
Martin Arnold – Financial Times
The balance sheets of eurozone banks are showing “early signs of stress” after a rise in loan defaults and late repayments from historic lows, the European Central Bank has warned. Officials urged lenders to increase provisions to cover rising loan losses and predicted their profits would be hit by a drop in lending volumes and increased funding costs. The ECB has increased interest rates by an unprecedented 4.5 percentage points in the past year.
/jlne.ws/3MQigdC

Hedge fund short sellers suffer $43bn of losses in market rally; Managers caught out in ‘painful’ rally as investors bet on quicker interest rate cuts
George Steer – Financial Times
Hedge funds betting on a decline in US and European stock markets have suffered an estimated $43bn of losses in a sharp rally over recent days. Short sellers, many of whom had built up bets against companies exposed to higher borrowing costs over the past year or so, have been caught out by a “painful” rebound in “low quality” stocks this month, said Barclays’ head of European equity strategy Emmanuel Cau. That has come as the market has grown more confident that the US Federal Reserve’s cycle of rate rises is finally over.
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Thyssenkrupp writes down value of steel business by EUR2.1bn; German group’s shares rally as investors hope unit will be spun off
Patricia Nilsson – Financial Times
Thyssenkrupp has written down the value of its steel business by EUR2.1bn, pushing Germany’s largest steelmaker into the red as it warns of low demand and prices amid the gloomy economic climate. The Essen-based company, which includes a submarine division and a bearings business, on Wednesday posted a net loss of EUR2bn for 2023, blaming high prices for gas and other raw materials for the hit to its energy-intensive steel business.
/jlne.ws/3SUIkrS

Sunflower Oil Shortage Turns to Glut With Buyers Standing Aside
Celia Bergin, Aine Quinn and Anuradha Raghu – Bloomberg
Sunflower oil vanished from supermarket shelves when Russia invaded Ukraine, sending prices through the roof. Almost two years on, the market is swimming in supply, but industrial buyers are wary.
/jlne.ws/3MU4WF5

Environmental, Social and Corporate Governance

UK, Canada and Germany lead fresh push against coal power at COP28; Letter by ministers from 15 countries urges tougher action after failure to make progress since pact signed two years ago
Attracta Mooney – Financial Times
The UK, Canada, Germany and 12 other countries are stepping up a push to halt new coal-fired power stations and clamp down on polluting existing plants, after failure to make progress in the two years since a UN pact on coal was first signed. The ministers of 15 nations are behind a letter seen by the Financial Times that urges the upcoming COP28 UN climate summit in Dubai to deliver an agreement that will end public and private finance for new coal power projects.
/jlne.ws/46p9GcI

Open skies model for aviation is colliding with climate change; Dutch plans to reduce growth of Schiphol airport are a proxy for the debate over the future of the airline industry
Peggy Hollinger – Financial Times
Management at Amsterdam’s Schiphol airport should have been over the moon last week at news that the Dutch government was suspending plans for a substantial cut to flights from next summer on environmental grounds. The scheme was one of the most aggressive reductions to future growth faced by any airport in normal times; the government was proposing an 8 per cent cut in capacity at the world’s third-busiest airport, in order to bring it into line with national laws on noise and pollution limits.
/jlne.ws/3uzIk6b

ECB Threatens 20 Banks With Fines After Climate-Risk Warning; Banks are under pressure to step up climate-risk management; ECB warned laggard banks it would impose penalty payments
Nicholas Comfort and Steven Arons – Bloomberg
The European Central Bank has warned about 20 lenders that it will impose fines unless they address shortcomings in their management of climate risk, according to people familiar with the matter. In letters sent this month and last, the ECB has given the banks individual deadlines, such as the end of March, to fix the issues it identified, the people said, asking not to be named discussing private deliberations. The so-called periodic penalty payments mark an escalation as the ECB’s patience with laggards wears thin, they said.
/jlne.ws/3uzIPx5

Investors With $11 Trillion Back Plan to Reform Mining Industry; Calstrs and LGIM are supporting the initiative, which aims to push miners to get behind the transition to a low-carbon economy.
Alastair Marsh – Bloomberg
Some of the world’s biggest investors are throwing their weight behind a plan to reform the mining industry so it can safely meet the growing demand for minerals and metals needed for the green transition. Investors overseeing a combined $11 trillion, including California State Teachers’ Retirement System and Legal & General Investment Management, are among the first to back the Global Investor Commission on Mining 2030, according to a statement on Wednesday.
/jlne.ws/3QTsOK7

COP28: When is the climate summit and why is it being held in Dubai? The COP28 climate summit is taking place in Dubai, United Arab Emirates, from 30 November to 12 December
Chen Ly – New Scientist
World leaders, scientists, activists and more are all set to convene for talks at the United Nations climate conference in Dubai, United Arab Emirates. After a year of extreme weather around the world, including the hottest 12 months ever recorded, COP28 comes at a critical juncture for international climate action. Here’s what you need to know about it. What is COP28 and when is it happening? COP28 is taking place in Dubai, United Arab Emirates (UAE), from 30 November to 12 December. It is the 28th Conference of Parties (COP) to be held as part of an international treaty called the UN Framework Convention on Climate Change (UNFCCC), which was established at the Earth Summit in Brazil in 1992. Its aim is to tackle the negative impacts human activity has on the environment, especially greenhouse gas emissions.
/jlne.ws/3uo9TPX

Explainer: Climate activists, companies lawyer up for courtroom battles
Gloria Dickie – Reuters
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Climate Funds Look to Regain Footing After Three Down Years; Morningstar has a new list of 10 funds it says are “bright” spots for an otherwise dark sector.
Tim Quinson – Bloomberg
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Corporate America Is Rethinking Diversity Hiring; Some companies change diversity programs under legal attack
Jeff Green and Kelsey Butler – Bloomberg
/jlne.ws/3ST5yyl

Leon Black’s downfall confounds the legacy of #MeToo on Wall Street; How one woman’s rape allegations were twisted into a fight over the reputations of two powerful men
Mark Vandevelde – Financial Times
/jlne.ws/47oQTiZ

Japan Financial Services Agency: “Launching Japan’s Impact Consortium” Announced
Mondovisione
/jlne.ws/3RbCfpF

The Trade That Backfired for America’s Biggest Wood-Pellet Exporter; Enviva made a wager to buy pellets from a customer and resell them, but then prices fell
Ryan Dezember – The Wall Street Journal
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The Bill for Offshore Wind Power Is Rising; Prices in recent offshore auctions have increased by anywhere from 20% to 70%
Carol Ryan – The Wall Street
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Institutions

Goldman Alums Set Up Matchmaking Platform for Private Credit; Fundflow’s product connects businesses with debt providers; Deals as small as EUR1 million for borrowers bypassed in boom
Irene Garcia Perez and Silas Brown – Bloomberg
Two former Goldman Sachs Group Inc. bankers want to take the $1.6 trillion private credit revolution from Wall Street to Main Street. George van Dorp and Koen van Vlijmen, who both worked in the American bank’s London office, have built a product that matches small businesses with alternative lenders.
/jlne.ws/3sOGFt5

Tiger Global’s Scott Shleifer Steps Down as Head of Private Investing; Firm cites his decision to stay in Florida as reason for move; Founder Coleman will now manage public and private investments
Hema Parmar and Gillian Tan – Bloomberg
Tiger Global Management’s Scott Shleifer, the partner overseeing a majority of the firm’s assets and who helped launch its venture arm, is stepping down as head of private investments. Founder Chase Coleman will now manage both public and private wagers. Shleifer will remain with the firm as a partner, transitioning to a senior adviser role effective Jan. 1, Coleman said Tuesday in a letter to clients.
/jlne.ws/46rdZnF

Deutsche Bank’s euro 12-an-hour workers gear up for a fight; Lender has 572 employees making over euro 1mn a year but call centre staff are paid just a few cents above minimum wage
Olaf Storbeck – Financial Times
Monika Reichel has stopped telling people that she works for Deutsche Bank. “It just creates a totally wrong impression as everyone immediately thinks that I must be earning a lot.” In fact Reichel, who asked the Financial Times not to publish her real name, is one of 530 Deutsche Bank staff whose pay starts at little more than Germany’s minimum wage.
/jlne.ws/47m7Cn9

Australian bank warns of lower bonuses if staff do not come into office; ANZ says employees are expected in workplace at least 50% of the time
Nic Fildes – Financial Times
One of Australia’s largest banks has warned its staff that they could be paid lower bonuses unless they spend half of their work hours in the office. ANZ said in a note sent to more than 40,000 employees this week that in-person office attendance could be a factor in performance and pay reviews for the year ending in June 2024.
/jlne.ws/3RehIRq

Morgan Stanley co-president Andy Saperstein diagnosed with cancer; Head of bank’s wealth management division says he plans to continue working through treatment
Joshua Franklin – Financial Times
Morgan Stanley co-president Andy Saperstein, who was until last month a leading contender to be the Wall Street bank’s next chief executive, told employees on Tuesday that he had been diagnosed with cancer. “Last week I received some very surprising news…I was diagnosed with cancer. As you can imagine this has been quite a shock to me,” Saperstein, 56, wrote in an internal memo.
/jlne.ws/47Hk0O8

ECB Threatens 20 Banks With Fines After Climate-Risk Warning; Banks are under pressure to step up climate-risk management; ECB warned laggard banks it would impose penalty payments
Nicholas Comfort and Steven Arons – Bloomberg
/jlne.ws/3sMDTVg

Work & Management

Do you talk more like a millennial or a boomer at work? Take this quiz to find out. What your communication habits at work say about you and how that might differ from your boss and colleagues
Danielle Abril, Alyssa Fowers and Elena Lacey – The Washington Post
Ever feel like your colleagues at work behave like they’re from another planet? Our behavior and communication styles in the workplace are shaped by our generation, habits outside of work, as well as some of our earliest professional experiences. Even if you’re a millennial or a Gen Z, you could behave more like a boomer based on your communication style. These differences can lead to miscommunication and misunderstandings at work, which could result in undesirable outcomes, say linguists and experts who study multigenerational workforces.
/jlne.ws/3SSHw6v

Wellness Exchange

The Best Exercises to Prevent Neck Pain; Neck pain is common, but working on your posture and strengthening your spine can help.
Hilary Achauer – The New York Times
Experts estimate that up to 80 percent of people will experience some form of neck pain in their lives, and as much as half of Americans will suffer from it this year alone. Whether as an isolated episode for a few days or a more chronic complaint, neck pain is “almost guaranteed,” said Dr. Ram Alluri, an assistant clinical professor of orthopedic surgery at the Keck School of Medicine at the University of Southern California who specializes in spine surgery.
/jlne.ws/3QIrTvW

Has Climate Change Impacted Your Mental Health? Tell Us About It; Is climate change adding stress and worry to your life? Do you talk to your therapist about climate anxiety? Bloomberg Green wants to hear from readers.
Siobhan Wagner – Bloomberg
It’s now likely this will be a record year for heat – a stark reminder of the consequences of climate change. Yet 2023 has also been a year for progress on reducing greenhouse gas emissions, as electric vehicle adoption and solar power have both crossed key tipping points. Bloomberg Green wants to hear from readers about what impact climate change is having on you. Have you lived through a climate-related disaster? Do you worry about the impacts global warming is having on the planet? Have you found ways to manage your anxiety? If so, please consider taking our survey and tell us your story.
/jlne.ws/47mLxod

Regions

Russia’s Fuel Sales Driven Higher By Surging Diesel Exports; Shipments are on course to reach a four-month high in November; Refinery runs and easing of trade restrictions lift flows
Prejula Prem – Bloomberg
Russian oil-product flows have surged so far this month as local refiners boost processing rates due to the end of seasonal maintenance and the nation continued easing export restrictions. The rebound helps to offset what has been a grinding decline in seaborne crude cargoes over the past several weeks. That’s important because Russia counts combined crude and fuel flows as metrics for compliance with a pact with OPEC+. The producer group will meet in the next several days to discuss future supply plans.
/jlne.ws/3MX0qp7

Poland Is Selling Eurobonds to Help Fund Surging Borrowing Needs
Agnieszka Barteczko and Paul Cohen – Bloomberg
Poland is planning a second international bond issue in a week to help finance rising borrowing needs and take advantage of a window of opportunity for emerging-market issuers. The country appointed BNP Paribas SA, Deutsche Bank AG, Banco Santander SA and Societe Generale SA to arrange the sale of euro-denominated notes, the Finance Ministry said on Wednesday. Poland is marketing 7-year notes at around 90 basis points above mid-swaps, according to a person familiar with the matter, who asked not to be identified.
/jlne.ws/47Olczv

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