Short Sellers in Danger of Extinction After Crushing Stock Gains

Jun 4, 2024

First Read

Hits & Takes
John Lothian & JLN Staff

FIA Hall of Fame member Dr. Henry Jarecki is the subject of a story in The Wall Street Journal and another in the New York Post today after being named in a lawsuit accusing him of “participating in Jeffrey Epstein’s sex-trafficking operation.” The 91-year old famed psychiatrist is accused of raping a woman who was sent to him for psychiatric help. It is not a pretty story.

CFTC Commissioner Caroline D. Pham will speak at Commodity Trading Week Americas today, at 1:30 p.m. (EDT). The event will be held at The Stamford Hotel in Stamford, CT. During her fireside chat, Commissioner Pham will discuss the CFTC’s Global Markets Advisory Committee recommendations, including Basel III endgame bank capital proposals, as well as geopolitical risk and commodity market volatility.

In an FIA MarketVoice Podcast episode titled “Moneyball and Markets: The Crossover of Finance and Sports,” a panel from FIA Boca 2024 discussed the convergence of financial markets and professional sports. The conversation covered topics such as the use of data and analytics for valuing and developing players and teams, team ownership as a form of investment, the growing involvement of sovereign wealth funds in sports, the financial impact on college sports, and the increasing trend of gambling and event markets in sports. The session was moderated by Don Wilson, CEO and founder of DRW Holdings, and featured panelists Doug Cifu (CEO of Virtu Financial and vice chairman of the Florida Panthers), Mike DeBartolo (VP and assistant GM of baseball operations for the Washington Nationals), Tyler Epp (president of F1 Miami Grand Prix), and Ryan McKillen (co-owner & chairman of SailGP USA).

Exchange Analytics launched new compliance courses that focus on Sanctions, Anti-Bribery and Anti-Corruption (FCPA), and Preventing Financial Exploitation of Specified Adults. You can learn more about the courses at exchangeanalytics.com.

My problems with CME Group Facebook Groups continued after I posted my story to one in response to a Bobby Alpert post that advertised the “CME Group Friends” group with a message that it did not tolerate spam and podcasts being posted. I took that as a direct message and responded with my commentary, which elicited a positive response from one former CME member for a good call-out of Alpert. However, later in the day the whole thread was deleted. When I asked the administrator where it went, he said he deleted it. When I asked him if I could inquire why, he said, “No.” When I asked for guidance on posting guidelines, he did not answer. It would appear the coverup of Mr. Alpert’s 1999 trading and brokering ban and fine continues.

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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Our most read stories from our previous edition of JLN Options were:
CME Group Appoints John Ricci as Managing Director and Global Head of Agricultural Products from CME Group.
Boom in US penny stock trading prompts warnings of frothy markets from the Financial Times.
These ETFs let you invest like the rich – but you might want to keep your money from MarketWatch. ~JB

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

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Former CQG President Reflects on Algo Trading, Crypto, and AI’s Impact
JohnLothianNews.com

Josef Schroeter, the former president of CQG, a provider of trading software and market data, shared his insights on the evolution of electronic trading, the rise of crypto, and the potential impact of AI in part three of his interview with John Lothian News for The Path to Electronic Trading video series.

Watch the video »

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The Dollar Is at Its Strongest Since the 1980s. Can It Last? The greenback is historically very expensive amid a recovery in global growth and a fraught election campaign
Jon Sindreu – The Wall Street Journal
For a decade now, currency markets have been ruled by the strengthening dollar. But no kingdom lasts forever. Contrary to what many on Wall Street expected, the U.S. dollar has gotten a fresh wind this year, as bumpy inflation data has prompted investors to dial back bets on rate cuts.
/jlne.ws/3Rb9sRw

***** It would appear my trip to London for IDX and to Amsterdam to visit EPTA groups is well timed. ~JJL

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Epstein Accuser Files Lawsuit Alleging Famed Psychiatrist Henry Jarecki Facilitated Sexual Abuse; Woman’s lawsuit alleges Jeffrey Epstein sent her for psychological treatment to wealthy psychiatrist, who sexually abused her over several years
Khadeeja Safdar – The Wall Street Journal
Henry Jarecki has won awards practicing psychiatry, made a fortune trading metals, produced Hollywood movies, dabbled in real estate and co-founded Moviefone. The 91-year-old has also now been accused of participating in Jeffrey Epstein’s sex-trafficking operation. An unnamed woman filed a lawsuit in Manhattan federal court on Monday against Jarecki accusing him of raping her repeatedly from 2011 to 2014. She alleges that Epstein introduced her to Jarecki for mental-health treatment and instead of helping her, Jarecki sexually abused her.
/jlne.ws/4e3Kb5z

***** This is so disturbing on so many levels, including me sitting two seats away from Dr. Jarecki at a CFTC hearing two years before this started.~JJL

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Scammers Tried to Sell Graceland. How to Prevent Your Home From Being Next; Even if you don’t lose your property, title fraud can have real consequences
Robyn A. Friedman – The Wall Street Journal
When a company tried in May to auction off Graceland, the iconic former home of music legend Elvis Presley in Memphis, a Tennessee court stepped in to stop it. The court stopped the sale because the company that was trying to auction off the property was fake. Also fraudulent were the supporting documents the fraudsters presented that purported to show that Lisa Marie Presley, Elvis’s late daughter, had defaulted on a loan they claimed they made to her for which she used Graceland as collateral. While this audacious and complex attempt at defrauding a famous family made national news, most other cases of attempted title theft or mortgage fraud don’t. But homes such as Graceland, where the original owners are deceased, are popular targets for scammers, according to Victor Petrescu, a real-estate attorney with Levine Kellogg Lehman Schneider & Grossman in Miami.
/jlne.ws/3x1MvJI

***** It helps to have “suspicious minds” like a “hound dog.”~JJL

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Monday’s Top Three
Our top story Monday was John Lothian’s commentary, Controversial Past Shadows CME Broker’s Present: Bobby Alpert’s Clash with Open Outcry Trading and Social Media, from JLN. Second was the ASX LinkedIn post announcing the passing of Maurice Farhart. Third was Transforming Financial Operations: Integrating Planning, Accounting, and Subscription Management for Agile Businesses, a webinar from AWS set to take place on Wednesday, June 12.

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Lead Stories

Short Sellers in Danger of Extinction After Crushing Stock Gains; The business of betting on stock declines is shrinking as bearish investors face threats on all sides.
Denitsa Tsekova and Carmen Reinicke – Bloomberg
Jim Chanos quit after failing to raise capital. Carson Block’s firm launched its first long-only fund. Andrew Left dubbed his kind “a dying breed.” These are bad times to be a bear on Wall Street. After taking hits on multiple fronts, short sellers – who borrow and then sell stocks in a bid to profit from price declines – are in retreat. Thank the gravity-defying bull market, lingering regulatory threats, a day-trading horde randomly squeezing shares like GameStop Corp. ever higher, and more.
/jlne.ws/4e70VsC

NYSE cancels erroneous trades of Berkshire Hathaway and other stocks after glitch; Exchange investigates ‘technical issue’ just days after brief disappearance of live data for S&P 500
George Steer and Nicholas Megaw and Jennifer Hughes – Financial Times
The New York Stock Exchange said it would cancel erroneous trades after a technical glitch led to dozens of trading halts for US-listed companies and exchange traded funds. Class A shares in Warren Buffett’s Berkshire Hathaway appeared to plunge 99 per cent on Monday morning before a trading pause – which prohibits trading activity in exchange-listed securities at prices outside specified price bands – was initiated. LSEG data recorded a handful of trades at a price of $185.10 per share, compared with a previous price of $621,484. NYSE said after markets closed on Monday afternoon that all trades at or below $603,718.3 would be cancelled.
/jlne.ws/4e6yI5m

E*Trade Considers Kicking Meme-Stock Leader Keith Gill Off Platform; Morgan Stanley’s trading platform discusses concerns about possible manipulation in GameStop
AnnaMaria Andriotis – The Wall Street Journal
E*Trade is considering telling meme-stock leader Keith Gill he can no longer use its platform after growing concerned about potential stock manipulation around his recent purchases of GameStop options, according to people familiar with the matter. Shortly before Gill reignited a meme-stock craze in May, he bought a large volume of GameStop options on E*Trade, the people said. This week, Gill posted screenshots of an E*Trade account showing he owns GameStop shares now valued at $140 million and a new set of options that expire later this month. His total gains on the positions were at $85.5 million, he posted late Monday, showing his account remained in operation.
/jlne.ws/3VpvliE

Trafigura Settles Billionaire Reuben Brothers’ Nickel Fraud Suit; Dispute was over cargo of nickel sold by Trafigura to Reubens; Reubens had claimed Trafigura shipping document was fraudulent
Jack Farchy and Archie Hunter – Bloomberg
Commodity trader Trafigura Group has settled a London lawsuit brought by the billionaire Reuben brothers after selling them a cargo of “nickel” that was part of a high-profile fraud. Trafigura is still dealing with the fallout of a massive alleged nickel scam that rocked global metal markets last year, when the trader revealed it had paid nearly $600 million for nickel only to discover that the cargoes actually contained worthless rubble.
/jlne.ws/3yOqPS0

Trading Glitch Sends Some Shares on a Wild Ride; Berkshire Hathaway showed a drop of 99 percent before trading was halted and the technical problem corrected.
Santul Nerkar – The New York Times
For about two hours on Monday morning, trading in shares of about 40 stocks on the New York Stock Exchange was halted after a technical glitch led to misquoted prices, including those of Berkshire Hathaway, which showed a drop of more than 99 percent. The error was fixed, the exchange said later, adding that any trades placed before the halt would be reviewed. It’s common for exchanges to reverse trades that are placed when prices are clearly incorrect.
/jlne.ws/4aNiX04

Jeffrey Epstein accuser sues prominent psychiatrist Henry Jarecki for allegedly making her ‘sex slave’
Emily Crane – NY Post
A Jeffrey Epstein accuser is suing a prominent 91-year-old psychiatrist, alleging he raped her for years and turned her into his “modern-day sex slave” after the late sex trafficker sent her to him for treatment for depression. The unidentified woman, referred to only as Jane Doe 11, claims Henry Jarecki started controlling and raping her in 2011 when Epstein gave her the mental health referral – calling him the “best doctor in New York City,” according to the complaint filed in Manhattan federal court Monday. The one-time model alleged the “wealthy, well-connected” psychiatrist was Epstein’s “go-to” doctor who would regularly treat the pedophile’s victims and often shared young women’s confidential medical information with him, the filings state.
/jlne.ws/3X9ly1p

Who Is Keith Gill? The Meme Lord Is Back; Amateur investor who turned GameStop into a phenomenon has revealed a monster stake in the company worth $260 million
Gunjan Banerji – The Wall Street Journal
Posting memes online can make you really, really rich. That is, if you are Keith Gill, the leader of the GameStop revolution. After re-emerging on X last month for the first time in three years, Gill finally revealed his hand. He posted a screenshot of his brokerage account on Reddit that showed a $260 million position in GameStop as of Monday afternoon.
/jlne.ws/3Vcr6FR

Hedge fund short sellers burnt by flurry of UK takeover bids; Managers scale back or ditch bets against London-listed stocks after M&A activity drives sharp share price rises
Costas Mourselas – Financial Times
Hedge funds are increasingly wary of betting against UK stocks after being burnt by a wave of takeover bids at companies targeted by short sellers. Millennium Management, GLG and Gladstone Capital Management are among funds to have been caught out in recent weeks as stocks such as fund supermarket Hargreaves Lansdown, cyber security provider Darktrace and video game services company Keywords Studios soared after attracting offers.
/jlne.ws/3V5hVHf

Italian regulator fines Dutch high-speed traders over short selling Saipem; Consob issues combined EUR4.7mn fine against Optiver and Flow Traders after oilfield engineer’s botched 2022 capital raising
Silvia Sciorilli Borrelli – Financial Times
Italy’s financial regulator has penalised two Dutch high-speed traders for illegally short selling shares in Saipem after the oilfield engineer botched a EUR2bn fundraising in 2022. Consob on Tuesday said it had issued combined fines of EUR4.7mn and ordered the return of the EUR4.9mn in total profits made by Amsterdam-based Optiver and Flow Traders for so-called naked short selling, where traders bet on stocks falling without borrowing them in advance. The practice is banned in Europe and the US.
/jlne.ws/3Kse2Hh

Nvidia and AMD Square Off in Fight to Take Control of AI
Vlad Savov, Jane Lanhee Lee and Takashi Mochizuki – Bloomberg
Nvidia Corp. and Advanced Micro Devices Inc.’s chiefs showcased new generations of the chips powering the global boom in AI development, deepening a rivalry that’s shaping the future of artificial intelligence design and adoption. Jensen Huang and Lisa Su – both born in Taiwan and now local celebrities for leading US tech powerhouses – employed different tacks in conveying their expertise during back-to-back shows at the world’s largest computing conference this week in Taipei.
/jlne.ws/4bIqrml

Majority of Middle-Class Americans Say They Struggle Financially; Majority of people feel financially insecure in survey; A third of respondents feel ‘extreme stress’ about paying debt
Alexandre Tanzi – Bloomberg
Almost two-thirds of Americans considered middle class said they are facing economic hardship and don’t anticipate a change for the rest of their lives, according to a poll commissioned by the National True Cost of Living Coalition. By many traditional measures, the US economy is strong, with robust labor, housing and stock markets, as well as solid gross domestic product growth. But the data don’t capture the financial insecurity of millions of households who worry about their future and are unable to save, according to the group, created this year to come up with cost-of-living tools that help gauge economic well-being.
/jlne.ws/4bIlWIN

Roaring Kitty’s GameStop options up millions, but cashing in may be tricky
Saqib Iqbal Ahmed – Reuters
“Roaring Kitty” Keith Gill, the stock influencer behind the 2021 meme stock frenzy, may be sitting on a paper profit of tens of millions of dollars on his position in GameStop options, but reaping those gains might not be easy. GameStop soared 21% on Monday after Gill’s Reddit account posted a screenshot showing a $116 million bet on the embattled video game retailer. The post, the first from the account in three years, also showed a position of 120,000 GameStop June 21 call options at a strike price of $20, worth $65.7 million at Friday’s close. Call options convey the right to buy shares at a fixed price in the future.
/jlne.ws/4c0Bw1Y

Peter Orszag wants to reimagine Lazard. Will his bankers let him? Barack Obama’s economist has brought star power to a faded investment bank, but rank and file have doubts about his plan
Sujeet Indap and Joshua Franklin – Financial Times
At the first global gathering of Lazard managing directors last December, after Peter Orszag had taken the helm of the investment banking boutique, the former economist invited a guest speaker to give a pep talk. His choice rankled many in the crowd. Orszag, who took over from longtime chief executive Ken Jacobs in October, welcomed Ralph Schlosstein, the retired head of Evercore. Evercore, a boutique bank in business for less than three decades, had eclipsed the 176-year-old Lazard in revenue, valuation – and increasingly, cachet.
/jlne.ws/4c7mpUK

Standard Chartered’s Iran transactions subject of new whistleblower claims; Court filings seek to revive a US lawsuit with alleged evidence of payments helping Hizbollah and Taliban
Cynthia O’Murchu and Ortenca Aliaj – Financial Times
Whistleblowers claim to have uncovered billions of dollars worth of previously undetected transactions carried out by Standard Chartered with Iran-linked entities, including sanctioned companies and terrorist organisations, according to a court filing submitted in New York on Friday. The alleged transactions were discovered after the whistleblowers forensically re-examined spreadsheets and documents they had provided to US authorities in 2012 and 2013 and found hidden data embedded in them. The whistleblowers are seeking to revive a lawsuit they filed in Manhattan federal court in 2012 and reverse the dismissal of their claim.
/jlne.ws/4c5HfDH

OpenAI Insiders Warn of a ‘Reckless’ Race for Dominance; A group of current and former employees are calling for sweeping changes to the artificial intelligence industry, including greater transparency and protections for whistle-blowers.
Kevin Roose – The New York Times
A group of OpenAI insiders is blowing the whistle on what they say is a culture of recklessness and secrecy at the San Francisco artificial intelligence company, which is racing to build the most powerful A.I. systems ever created. The group, which includes nine current and former OpenAI employees, has rallied in recent days around shared concerns that the company has not done enough to prevent its A.I. systems from becoming dangerous.
/jlne.ws/3KvMtgc

Expanded SEC clearing rules will see daily DTCC Treasury activity increase by $4 trillion, survey finds; New estimate is up from the previous $1.63 trillion prediction in September 2023 and is based on a survey completed by 83 sell-side institutions.
Annabel Smith – The Trade
The newly expanded clearing rules from the US Securities and Exchange Commission (SEC) will see daily Treasury clearing activity on DTCC increase by more than $4 trillion when they take effect, an industry survey has predicted. According to the survey conducted by DTCC across 83 sell-side institutions, daily activity on its Fixed Income Clearing Corporation (FICC) will see an increase of $4 trillion as a result of the regulatory change – thanks in large part to new stipulations around mandatory central clearing.
/jlne.ws/4c7XBeX

Ukraine Invasion

Himars strike destroys air defences inside Russia as Kremlin warns of ‘fatal consequences’
Daniel Hardaker – The Telegraph
Ukrainian troops have used US-supplied Himars missiles to destroy an advanced air defence system inside Russia, as the Kremlin warned Washington it could suffer “fatal consequences” for backing the cross-border attacks. Several missiles are understood to have hit an air defence installation in the Russian town of Belgorod that was equipped with S-300/400 surface-to-air missiles.On Monday, Sergei Ryabkov, Moscow’s deputy foreign minister, said that the US would face “fatal consequences” if it allowed Ukraine to use American weapons for attacks inside Russia. The US has so far allowed Kyiv to hit targets within Russia only if they pose an immediate threat to Ukrainian forces. It’s not clear if the strike on Belgorod breaches the limits the US has imposed on the weapons, but Volodymyr Zelensky, the Ukrainian president, has requested permission to use US munitions for long range strikes.
/jlne.ws/4e8FE1H

NATO is finally giving Ukraine a shot at repelling Russia’s destructive glide-bomb attacks on a major city
Jake Epstein – INSIDER
A handful of NATO countries have lifted the restrictions on Ukraine using their weapons to strike military targets inside Russia, giving Kyiv’s forces new battlefield options that could help them defeat the highly destructive glide bombs they have so far struggled to stop. Ukraine had long been barred from using Western-provided weapons to strike beyond its borders, as many of its partners – including the US – were concerned that allowing Kyiv to do so would lead Russian President Vladimir Putin to escalate the conflict even further.
/jlne.ws/3X5hFKL

Ukraine Summit Opens Door to Limited Future Talks With Russia; Summit to address nuclear and food security, abducted children; Confidence-building measures to pave way for talks with Moscow
Alberto Nardelli – Bloomberg
A Swiss-hosted summit on Ukraine will aim to carve a path to involving Russian officials in future talks after establishing agreement on nuclear safety, food security and returning abducted children, a draft document shows. The June 15-16 gathering in Lucerne, Switzerland, will focus on the three measures as a way to build trust in order to later engage with Moscow on a limited number of issues, according to a draft document seen by Bloomberg.
/jlne.ws/4b3jTxT

Israel/Palestine Conflict

Qatar Says Israel Struggling to Unite Over Gaza Peace Terms
Fiona MacDonald – Bloomberg
Qatari mediators looking to secure a cease-fire in Gaza say Israel hasn’t yet put forward a position that’s supported by the full coalition government, complicating efforts to halt the near eight-month war. Hamas hasn’t given a clear reaction either to the peace plan presented by US President Joe Biden on Friday, Qatar’s Ministry of Foreign Affairs spokesman Majed Al-Ansari said at a briefing on Tuesday, though he added the two sides may be edging closer to a deal.
/jlne.ws/3KvKgkU

Israeli Airstrikes Kill Iranian General in Syria; Israeli airstrikes in Syria kill a general from a branch of the Revolutionary Guards, Iranian media reports say.
The New York Times
Israeli airstrikes near Aleppo, Syria, in the early hours of Monday killed a general in Iran’s Revolutionary Guards Corps who had been deployed to the country as an adviser, according to Iranian media reports. The Iranian was identified as Gen. Saeed Abyar by Tasnim News agency, a media outlet affiliated with the Revolutionary Guards. He was believed to be the first Iranian killed by Israel since the two countries nearly went to war in April, after Israel bombed Iran’s embassy compound in Damascus, killing several commanders.
/jlne.ws/3yMEEAm

Exchanges, OTC and Clearing

BME partners with Spainsif to promote sustainability among its stakeholders
BME
More than one hundred Spanish entities are members of this non-profit association. BME has formalized its association with Spainsif with the aim of promoting sustainability, one of the pillars of its business strategy. Spainsif is a platform that operates as a non-profit association that is a benchmark for sustainable and responsible finance in Spain. Its mission focuses on promoting the integration of environmental, social and good governance criteria in investment policies through dialogue with different social groups to contribute to sustainable development, as well as raising awareness and promoting changes in investment processes in the investment community, public administrations, companies and the general public.
/jlne.ws/3Rc8ep6

CME Group Appoints John Ricci as Managing Director and Global Head of Agricultural Products
CME Group
CME Group, the world’s leading derivatives marketplace, today announced the appointment of John Ricci as Managing Director and Global Head of Agricultural Products. Reporting to Derek Sammann, Senior Managing Director and Global Head of Commodities Markets, Ricci will be responsible for leading the development, execution and management of the exchange’s agricultural business globally. He will be based in Chicago.
/jlne.ws/4bFUqeM

CME Group Chairman and Chief Executive Officer Terry Duffy to Present at Piper Sandler Global Exchange and Trading Conference
CME Group
CME Group, the world’s leading derivatives marketplace, today announced that Terry Duffy, Chairman and Chief Executive Officer, will present at the Piper Sandler Global Exchange and Trading Conference on Wednesday, June 5, 2024, at 1:30 p.m. (Eastern Time). The presentation will be available for livestreaming via CME Group’s investor website at http://investor.cmegroup.com. Please allow extra time prior to the presentation to visit the site and download the streaming media software required to listen to the online broadcast. An audio webcast will be available for replay at the same address approximately 24 hours following the conclusion of the conference.
/jlne.ws/4c6ErpS

CME Group Reports Record May ADV of 26 Million Contracts
CME Group
Record May interest rate ADV, with all-time highest daily U.S. Treasury volume on May 28. Record May metals ADV. International volume up 12% year-over-year.CME Group, the world’s leading derivatives marketplace, today reported its May 2024 market statistics set a new average daily volume (ADV) record of 26 million contracts for the month, up 4% from May 2023. The company’s interest rate and metals products also reached May ADV records, as its deeply liquid U.S. Treasury complex hit a new single-day record of 34,350,339 contracts on May 28.
/jlne.ws/3RhkFjx

NOTICE OF DISCIPLINARY ACTION
CME
# CME-24-1763-FC-Peter-Kosanovich. Effective Date 05 June 2024. File No.: 24-1763-FC. Member Firm: Peter Kosanovich (Mgla). Rule Violation: 514. Trading Infractions. A. The following shall constitute trading infractions: 514.A.6. use of profane, obscene, or unbusinesslike language on the trading floor; 514.A.9. conduct of an unbusinesslike nature; FINDINGS: On May 20, 2024, a panel of the Floor Conduct Committee found that on April 12, 2024, Kosanovich directed unbusinesslike language at another member, left his area of the pit and stood in another members assigned spot. The Panel found that in so doing, Kosanovich violated CME Rules 514.A.6 and 514.A.9.
/jlne.ws/3RbcO74

Cash market trading volumes in May 2024
Deutsche Boerse Group
Deutsche Boerse’s cash markets generated a turnover of euro114.19 billion in May (previous year: euro106.54 billion / previous month: euro119.45 billion). Euro111.06 billion were attributable to Xetra (previous year: euro103.79 billion / previous month euro115.82 billion), bringing the average daily Xetra trading volume to euro5.05 billion (previous year: euro 4.72 billion / previous month: euro 5.52 billion). Trading volumes on Boerse Frankfurt were euro 3.13 billion (previous year: euro 2.75 billion / previous month: euro3.63 billion).
/jlne.ws/4e4jrSz

DTCC’s FICC Treasury Clearing Activity Expected to Increase by Over US$4 Trillion Daily as a Result of SEC Expanded Clearing Rules, According to New Industry Feedback
DTCC
Almost 30% of sell-side institutions expected to offer Treasury clearing services through their Prime Brokerage, Agency Clearing and Futures Commission Merchant business areas. DTCC, the premier post-trade market infrastructure for the global financial services industry, today announced that daily Treasury volumes through its Fixed Income Clearing Corporation (FICC) are expected to rise by over US$4 Trillion once the SEC’s expanded U.S. Treasury clearing rules take effect, according to new industry feedback. The new estimate, up from the original estimate of approximately US$1.63 Trillion in September 2023, was recently determined based upon a survey completed by 83 sell-side institutions following the final SEC’s U.S. Treasury clearing rule.
/jlne.ws/4bKTA0v

The European election, volatility and the US: Why does it all matter?The European elections are upon us, and this is the ideal moment to reflect on upcoming macro events this year, as investors could be in for more volatility going forward.
Eurex
“Elections matter for markets,” says Holger Schmieding, Chief Economist at Berenberg Bank. “They can change the course of economic and fiscal policies. Even more so, they can reduce or exacerbate geopolitical risks. Ahead of any election, uncertainty about the outcome can make investors cautious.” These potential changes have the power to trigger volatility events. Just remember 2016. First, the May vote on the UK leaving the EU, and in November, Donald Trump was elected as the US President. Or take 2022, when UK Prime Minister Liz Truss announced massive tax cuts, which led to chaos in financial markets and her resignation. Markets are fragile.
/jlne.ws/3VbNjnu

IEX Strengthens Organization Through New Leadership Appointments
IEX
Seasoned Exchange and Capital Markets Executive, Bryan Harkins, Joins IEX Co-Founders as Group President to Lead IEX’s Commercial Growth; IEX’s Co-Founder, Ronan Ryan, Steps Into the Role of Group Chief Operating Officer; IEX Promotes Florian Seifferer to Group Chief Strategy Officer. IEX Group, Inc. (IEX) today announced the appointment of Bryan Harkins as its President, Ronan Ryan as its chief operating officer (COO), and Florian Seifferer as its chief strategy officer (CSO).
/jlne.ws/4e4kHFh

Press Release: Caution for Investors
MCX
It has been brought to the notice of the Exchange that an entity / website named “MCX Tips Free” is operating through the website “https://www.mcxtipsfree.in/”and is allegedly providing tips on investment in stock market and misusing the Multi Commodity Exchange of India Ltd. (MCX) brand name. It may be noted that MCX is in no way connected to such illegal trading tips. A police complaint is filed in this regard. It may be further noted that “MCX Tips Free” operating through the website “https://www.mcxtipsfree.in/”, is neither a Member nor an Authorized Person of any of the Members of the Exchange.
/jlne.ws/3R8sA2M

Nasdaq Chair & CEO Adena Friedman to Present at the Piper Sandler Global Exchange & Trading Conference
Nasdaq
Nasdaq (Nasdaq: NDAQ) will be presenting at the following conference with a webcast available at Nasdaq’s Investor Relations website: ir.nasdaq.com/events.cfm. Who: Adena Friedman, Chair & CEO, Nasdaq.What: Piper Sandler Global Exchange & Trading Conference. When: Wednesday, June 5, 2024 8:00 AM ET. Where: Ms. Friedman’s presentation will be webcast at Nasdaq’s Investor Relations website: ir.nasdaq.com/events.cfm.
/jlne.ws/3VrSmRY

NSE Indices launches Nifty500 Momentum 50 index
National Stock Exchange of India
NSE’s index services subsidiary, NSE Indices Limited today launched a new strategy index – Nifty500 Momentum 50 index. The Nifty500 Momentum 50 Index aims to track the performance of the top 50 companies within the Nifty 500 selected based on their Normalized Momentum Score. The Normalized Momentum Score for each company is determined based on its 6-month and 12-month price return, adjusted for volatility. Stock weights are based on a combination of the stock’s Normalized Momentum Score and its freefloat market capitalization. Stock weights are capped at the lower of 5% or 5 times the weight of the stock in the index based only on free float market capitalization.
/jlne.ws/4e7QF3h

B1G Numbers May 2024: Key Figures from SIX Swiss Exchange; Watch the new “B1G Numbers” video and get first-hand information about the trading and listing activity in the past month on the Swiss stock exchange.
SIX
The SMI rose significantly in May 2024, climbing by 6.6% to reach 12,000.9 points at the end of the month – its highest level since early May 2022. YTD, the SMI is up 7.8%. Trading turnover also developed very favourably in May. At around CHF 105.6 bn, the increase was 14.7% compared to April 2024 and 20.5% compared to May 2023. Trading transactions show a different picture: around 11% fewer transactions were carried out than in the previous month. Since the beginning of the year, 20.6 mn trades were carried out, slightly down by 2% compared to the first five months of 2023.
/jlne.ws/4e6gkt9

Fintech

Tradeweb Becomes First Electronic Platform to Connect Repo and IRS Markets
Business Wire
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today announced it has launched innovative features bridging the firm’s repurchase agreements (repo) and interest rate swap (IRS) product offerings to enhance clients’ execution workflows in these markets. Amid higher money market volatility due to revised expectations of central bank policy actions, traders have been increasingly referencing spreads to overnight index swap (OIS) curves when evaluating pricing of fixed-rate repos. Tradeweb is the first electronic trading platform to make OIS curves available during the repo trade negotiation process, helping institutional clients assess the price competitiveness of different repo rates across different currencies and maturities.
/jlne.ws/3VrMW9A

Powerful AI introduces advanced capabilities to Fenergo’s CLM driving unprecedented efficiencies in onboarding, client and counterparty management and regulatory compliance
Fenergo
Fenergo – the leading provider of digital solutions for know your customer (KYC), client lifecycle management (CLM) and transaction monitoring – has today launched AI Powered CLM, a new set of AI capabilities which further boost operational efficiencies, accelerate onboarding and improve end-user experiences while reducing costs associated with KYC and AML compliance. The introduction of AI to Fenergo’s CLM, powered by Amazon Bedrock, will enable firms to more accurately identify and mitigate financial crime risk and seamlessly meet regulatory obligations for KYC, AML and sanctions measures. Fenergo’s AI-powered offering will empower firms to safely deliver more efficient, frictionless onboarding and lifecycle management journeys while accelerating time to revenue.
/jlne.ws/45qbumZ

Bequant Unveils RiskQuant: Comprehensive Risk Tools For Asset Managers And Investors
Mondovisione
Bequant, a leading regulated institutional digital assets firm, has unveiled RiskQuant, an innovative suite of risk management tools designed to help asset managers and investors make better-informed decisions through unparalleled insights into a myriad of risk factors. RiskQuant is a unique and free service for existing Bequant clients that provides a combination of prime services, access to liquidity, custody, compliance, and administrative tools. The service offers advanced monitoring of market risk, concentration risk, delta neutrality, risk-return ratios, Sharpe ratios, Sortino ratios, counterparty risk, and asset risk, making trading strategies comprehensible from every risk perspective. It is available to all clients of Bequant from eligible jurisdictions (excluding the US, China, blacklisted and sanctioned countries).
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Nvidia CEO Says Working to Certify Samsung’s AI Memory Chips
Vlad Savov and Jane Lanhee Lee – Bloomberg
Nvidia Corp. is still working on the certification process for Samsung Electronics Co.’s high-bandwidth memory chips, a final required step before the Korean company can begin supplying a component essential to training AI platforms. Chief Executive Officer Jensen Huang told reporters Tuesday his company was examining the so-called HBM chips that Samsung and Micron Technology Inc. offer. Nvidia’s endorsement is needed before either can directly compete with SK Hynix Inc., whose share price has soared since it began supplying Nvidia with HBM3 and more advanced HBM3e chips.
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Intel CEO Takes Aim at Nvidia in Fight for AI Chip Dominance
Vlad Savov – Bloomberg
Intel Corp. Chief Executive Officer Pat Gelsinger took the stage at the Computex show in Taiwan to talk about new products he expects will help turn back the tide of share losses to peers, including AI leader Nvidia Corp. Intel showed its new Xeon 6 data center processors with more efficient cores that will allow operators to cut down the space required for a given task to a third of prior-generation hardware. Like rivals, from Advanced Micro Devices Inc. to Qualcomm Inc., Intel touted benchmarks that showed its new silicon is significantly better than its existing options. AMD and Qualcomm’s CEOs, in earlier Computex keynotes, used Intel’s laptop and desktop processors to show how far ahead they are in certain aspects of technology.
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Coinbase’s new blockchain Base is making real money: Meet the guy who built it
Jeff John Roberts – Fortune
/jlne.ws/3yNBWut

Intel battles AMD with new data center chips
Max A. Cherney and Stephen Nellis – Reuters
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AMD Is Convinced Its Latest CPUs Will Crush Qualcomm’s Chips for Copilot+ PCs
Kyle Barr – Gizmodo
/jlne.ws/3KvFjbO

Cybersecurity

New investments to help build the U.S. cybersecurity workforce; Today we’re announcing new recipients of the Google Cybersecurity Clinics Fund to help establish 15 cybersecurity clinics across the U.S.
Heather Adkins – Google
New technologies, like AI, are presenting both opportunities and threats to cybersecurity. At the same time, there are nearly 450,000 open cybersecurity jobs in the U.S. – and demand for professionals in the field is growing. Last year, we announced a Google Cybersecurity Clinics Fund to help grow the U.S. cybersecurity workforce by increasing access and opportunities for students interested in cybersecurity careers. The fund, which we launched in collaboration with The Consortium of Cybersecurity Clinics, invited higher education institutions across the U.S. to apply for funding to expand or establish a cybersecurity clinic.
/jlne.ws/3RbQjyY

Cybersecurity M&A Roundup: 28 Deals Announced in May 2024; Roundup of the more than two dozen cybersecurity-related merger and acquisition (M&A) deals announced in May 2024.
Eduard Kovacs – SecurityWeek
Twenty-eight cybersecurity-related merger and acquisition (M&A) deals were announced in May 2024, including some significant transactions. An analysis conducted by SecurityWeek shows that more than 400 cybersecurity M&A deals were announced in 2023, with a drop seen in both volume and disclosed deal value.
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London hospitals hit by cyber attack; At least four sites forced to cancel operations, with blood transfusions ‘particularly affected’
Laura Hughes – Financial Times
At least four NHS hospitals in London have been hit by a cyber attack, leading them to cancel operations and other procedures on Tuesday. A “major IT incident” has impacted the pathology department of at least two hospital trusts, with some patients seeing appointments cancelled and others being redirected to other health providers in the city.
/jlne.ws/3RdYZVo

Cryptocurrencies

$3B ETH Withdrawals from Exchanges Signal Potential Supply Squeeze for Ethereum
Hope C – CoinMarketCap
Following the U.S. approval of spot Ethereum (ETH) exchange-traded funds (ETFs) on May 23, over $3 billion worth of Ether has been withdrawn from centralized crypto exchanges, hinting at a possible future supply squeeze. CryptoQuant data reveals that between May 23 and June 2, approximately 797,000 Ether, valued at $3.02 billion, were moved off exchanges.
/jlne.ws/4c7XWyz

Novogratz’s Galaxy Tokenizes a 316-Year-Old Violin to Back Loan; Siu bought the 1708 Stradivarius at an auction last year; Tokenizing physical assets offers way to boost loans: Cowan
Sonali Basak – Bloomberg
Billionaire Michael Novogratz’s Galaxy Digital Holdings LP is broadening its lending business to wealthy clients. The latest deal: a multimillion-dollar loan backed by a violin that was once owned by Russian Empress Catherine the Great. Galaxy lent the funds to Yat Siu, co-founder of Animoca Brands, who bought the 1708 Stradivarius violin last year in an auction at a valuation of more than $9 million, according to Galaxy and Siu.
/jlne.ws/3yGZ5OW

Global X slashes fees on European crypto ETPs to zero; Recent launches of the first bitcoin and ethereum products in London underline growing competition
Sandra Heistruvers – Financial Times
US-based exchange traded fund provider Global X ETFs has temporarily cut fees for two physically backed cryptocurrency exchange-traded products to zero. The $57bn (EUR52.4bn) asset manager, which is owned by South Korea’s Mirae Asset, says it will not charge any fees for its Global X Bitcoin and Global X Ethereum ETPs until January 3 2025, when the fee will change to 0.29 per cent.
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Beyond the Data: Algo providers successfully address hedge funds’ cost concerns but execution performance is declining; In the build up to the 2024 iteration of The TRADE’s Algorithmic Trading Survey, Hedge Funds, Claudia Preece takes a deeper look at last year’s findings which saw execution performance experience the largest year-over-year decline in terms of ratings from users of any category, falling 1.60, while ‘better pricing’ jumped from 7.36 to 8.25.
Claudia Preece – The Trade
The shift of hedge funds’ algo priorities indicates the advent of a new normal as for the first time, cost took precedent over execution performance. With the relationship between hedge funds and algos evolving at a rapid pace, key priorities are shifting. For the first time, The TRADE’s 2023 Algorithmic Trading Survey, Hedge Funds saw ‘consistency of execution performance’ drop out of the top five best rated aspects of algo usage, replaced by ‘cost’.
/jlne.ws/45gJMsI

Politics

Nato land corridors could rush US troops to front line in event of European war
Joe Barnes – The Telegraph
Nato is developing multiple “land corridors” to rush US troops and armour to the front lines in the event of a major European ground war with Russia. American soldiers would land at one of five ports and be channelled along pre-planned logistical routes to confront a possible attack by Moscow, officials told The Telegraph. It comes amid warnings from the Alliance’s top leaders that Western governments must prepare themselves for a conflict with Russia in the next two decades.
/jlne.ws/4e91K4o

Multiple Trump Witnesses Have Received Significant Financial Benefits From His Businesses, Campaign; Witnesses in the various criminal cases against the former president have gotten pay raises, new jobs and more. If any benefits were intended to influence testimony, that could be a crime.
Robert Faturechi, Justin Elliott and Alex Mierjeski – ProPublica
Nine witnesses in the criminal cases against former President Donald Trump have received significant financial benefits, including large raises from his campaign, severance packages, new jobs, and a grant of shares and cash from Trump’s media company. The benefits have flowed from Trump’s businesses and campaign committees, according to a ProPublica analysis of public disclosures, court records and securities filings. One campaign aide had his average monthly pay double, from $26,000 to $53,500. Another employee got a $2 million severance package barring him from voluntarily cooperating with law enforcement. And one of the campaign’s top officials had her daughter hired onto the campaign staff, where she is now the fourth-highest-paid employee.
/jlne.ws/3RdeGfP

Russia’s Threat Puts Security at Forefront of European Elections; In Poland, Prime Minister Donald Tusk is casting himself as the defender of his country to outflank the populists and far right.
Konrad Krasuski, Piotr Skolimowski, and Natalia Ojewska – Bloomberg
When a guard patrolling Poland’s eastern border was attacked by a migrant trying to illegally cross from Belarus last month, Prime Minister Donald Tusk rushed to the scene. Standing in front of camouflaged army vehicles next to servicemen in fatigues in the village of Dubicze Cerkiewne, Tusk promised to use all means necessary to seal the frontier and ward off what he described as a concerted attempt to destabilize Poland. There would be an exclusion zone along the border and equipment to stop tanks and drones.
/jlne.ws/4aLwGos

China will take the mantle of world superpower from the United States – if Russia wins in Ukraine
Matthew Henderson – The Telegraph
For seven days The Telegraph is running a series of exclusive essays from international commentators imagining the consequences if Russia were successful in its war. The full list of essays so far can be found below. China and its alliance with other opponents of the West is the most serious challenge to world peace and prosperity since the Second World War.
/jlne.ws/3VbU7RU

Modi Just Learned Hype Can Only Carry You So Far; India’s long-serving leader appears headed for a third term. But voters have proven the laws of politics still apply.
Mihir Sharma – Bloomberg Opinion
India is unpredictable. This is an incontrovertible fact that Indians themselves seem to have forgotten over the past decade. Ever since Prime Minister Narendra Modi stormed into office with an unexpected and unprecedented outright legislative majority in 2014, many have assumed the country’s politics had changed forever. The age of coalitions was over; India seemed to be heading inexorably toward one-party dominance. To stock traders and pro-government pundits, the country’s trajectory seemed so clear: It was destined to see steady 8% growth, happy voters, and a prime minister going from strength to strength at home and abroad.
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Modi’s Party Poised to Lose India Majority in Stunning Blow; Modi’s ruling party poised to lose its majority; BJP will have to rely on allies to form a government
Bloomberg
In news that’s just consolation for the BJP, it’s star candidate from Vidisha, Shivraj Singh Chouhan, the former chief minister of the state of Madhya Pradesh, is set to win by more than 820,000 votes. That’s set to be the biggest ever win margin from any constituency in India’s national elections.
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Markets Are Unhappy With Sheinbaum’s Landslide Win in Mexico. Here’s Why.
Reshma Kapadia – Barron’s
Claudia Sheinbaum will be Mexico’s first female president. (HECTOR VIVAS/GETTY IMAGES)
Claudia Sheinbaum’s landmark election as Mexico’s first female president didn’t go over well with markets. Mexican stocks sank and the peso slid on concern that her landslide victory could give her the mandate to make changes to the constitution and pursue other policies that could rattle investors. The iShares MSCI Mexico exchange-traded fund slid 8% to $60 and the Mexican peso sank 3% against the dollar.
/jlne.ws/3Vq1lDf

UAE seeks ‘marriage’ with US over artificial intelligence deals; Gulf state’s AI minister says recent investment deal between Microsoft and G42 is part of strategy to reshape its economy
Chloe Cornish – Financial Times
The United Arab Emirates is seeking a “marriage” with the US over artificial intelligence as the Gulf state hopes to use its oil wealth to become a global superpower in developing the cutting-edge technology. The UAE’s AI minister Omar Sultan Al Olama told the Financial Times that a recent deal with Microsoft to acquire a $1.5bn stake in Abu Dhabi’s commercial AI champion G42 was only the start of greater tech collaboration between the two countries.
/jlne.ws/457SWYo

Regulation

CFTC Announces Whistleblower Award Over $4.5 Million
CFTC
The Commodity Futures Trading Commission today announced it awarded over $4.5 million to a whistleblower who provided detailed information in support of an enforcement action. The whistleblower provided assistance to the Division of Enforcement (DOE) that was significant in both amount and quality. DOE staff greatly relied on the whistleblower’s industry expertise.
/jlne.ws/3V3dwEC

SEC Obtains Final Judgment Against Former Arista Networks Chairman Andy Bechtolsheim for Insider Trading
SEC
On May 30, 2024, the U.S. District Court for the Northern District of California entered a final judgment, by consent, against Andreas “Andy” Bechtolsheim, the founder and Chief Architect of Silicon Valley-based technology company Arista Networks, Inc., in an action alleging that Bechtolsheim engaged in insider trading.
/jlne.ws/4c5FAOt

Court relieves Block Earner from liability to pay a penalty for offering unlicensed crypto-related product ‘Earner’
ASIC
The Federal Court has relieved Block Earner from liability to pay a penalty for contraventions related to unlicensed financial services when it offered its crypto-related Earner product. The Court found Block Earner’s contraventions to be serious. However, the Court relieved Block Earner from liability to pay a penalty on the basis, among other things, that it acted honestly and not carelessly when it offered the Earner product.
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Senate Economics Legislation Committee, 2024-2025 Budget Estimates
Opening Statement by ASIC Chair Joe Longo at the Senate Economics Legislation Committee, 2024-2025 Budget Estimates, 4 June 2024.
ASIC
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ESAs call for enhanced supervision and improved market practice on sustainability-related claims – Press Release
ESMA
/jlne.ws/3V7vS7q

Publication of the “Policy Package of Special Zones for Financial and Asset Management Businesses”
FSA
Based on the “Policy Plan for Promoting Japan as a Leading Asset Management Center” (December 13, 2023), the FSA published the “Policy Package of Special Zones for Financial and Asset Management Businesses.”
/jlne.ws/3Rc8ILW

Japan Financial Services Agency: Initiatives By The Financial Industry To Enhance Their Asset Management Businesses
Mondovisione
The Government of Japan has published “Policy Plan for Promoting Japan as a Leading Asset Management Center” on December 13, 2023. In the plan, major financial groups are requested to develop their plans to describe their asset management business strategy, enhance their investment management capabilities and improve governance. Please refer to the link below for the initiatives announced by each financial group and financial firm.
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Investing and Trading

E*Trade considering kicking Keith Gill off its platform, WSJ reports
Reuters
E*Trade is considering telling meme-stock influencer Keith Gill he can no longer use its platform after growing concerns about potential stock manipulation amid his recent purchases of GameStop, the Wall Street Journal reported on Monday. Shortly before Gill reignited a meme stock craze in May, he bought a large volume of GameStop options on E*Trade, the Journal’s report said, citing people familiar with the matter.
/jlne.ws/4aIdBn7

Elon Musk accused of selling $7.5 billion of Tesla stock before releasing disappointing sales data that plunged the share price to two-year low
Christiaan Hetzner – Fortune
Elon Musk faces allegations that he illegally sold $7.5 billion worth of equity in Tesla in the fourth quarter of 2022, knowing that the business would disappoint after promising investors an “epic end of year.” In a lawsuit filed with a Delaware court late last week, shareholder Michael Perry accused both the CEO of deliberately unloading nearly 45 million shares in advance of poor vehicle sales data to prevent an estimated 55% hit in value, and almost the entire board of collectively violating their responsibility of directors toward shareholders.
/jlne.ws/3X9YS18

The Last GameStop Analyst Says Apparent Roaring Kitty Purchase ‘Borders on Unethical’
Connor Smith – Barron’s
If Roaring Kitty is a hero of the GameStop saga, then Wedbush Securities analyst Michael Pachter is one of the many villains-at least if you ask the average meme trader. I asked Pachter what he makes of the recent posts on accounts tied to Keith Gill. “At this point, he knows his posts are going to rile up the faithful, so he is within legal bounds, but borders on unethical when he buys a bunch of stock before posting,” Pachter says.
/jlne.ws/4aHtpX6

Nvidia leads companies minting money as interest earned from cash surges
Nina Trentmann – Bloomberg
With interest rates at more than decade-highs, corporate finance chiefs are finding that money can indeed beget money. Almost 1-in-10 non-financial companies in the S&P 500, or more than three dozen firms, earned more in interest income than they paid in debt expense during the first quarter, according to data compiled by Bloomberg based on members in the index that break out interest costs. While that number is largely unchanged from the prior-year period, the interest income reaped by those companies – a cohort that includes Alphabet Inc., Tesla Inc. and Johnson & Johnson – is up about 60%.
/jlne.ws/3KtOM3q

Charles Schwab Launches Stock Slices For UK Investors
Mondovisione
Charles Schwab, one of the world’s largest investment brokers, with 35.4 million active brokerage accounts, is launching Schwab Stock Slices for UK investors. Stock slices are fractional shares that allow investors to own part of a share of a listed S&P 500 company, and are rising in popularity amongst retail investors as a more affordable way to invest in leading companies. Using Schwab Stock Slices, UK investors will now have the ability to invest in some of America’s most successful companies for as little as $5, even if their full shares cost more. The service is highly customisable, giving investors the freedom to choose from up to 30 slices each time they place an order. As fractional share owners, Schwab customers will receive dividends from the companies they invest in, proportionate to the percentage of the share they own.
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Pimco Says ‘Generational Reset’ on Yields to Spur a Bond Revival; Sees receding inflation to affirm US neutral rate at 2% to 3%; Says markets ignoring recession risk makes bonds a cheap hedge
Michael Mackenzie – Bloomberg
Forget the stock market or private credit. Fixed income will outstrip other asset classes after “a generational reset higher in bond yields,” according to one of the world’s biggest bond managers, Pacific Investment Management Co. “Active fixed income is positioned to perform well if there are no recessions over our secular horizon and to perform even better if there are,” Pimco’s Richard Clarida, Andrew Balls and Daniel Ivascyn wrote in an outlook released Tuesday. As prices climb and inflation recedes, they expect bonds will be even more attractive than cash.
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Environmental, Social and Corporate Governance

CEO of the World Federation of Exchanges re-elected to 4th term as Vice Chair of IOSCO’s AMCC
World Federation of Exchanges
The World Federation of Exchanges (the global industry association for exchanges and clearing houses) is pleased to announce the re-election of its CEO, Nandini Sukumar, to the position of Vice Chair of the International Organization of Securities Commission’s (IOSCO) Affiliate Members’ Consultative Committee (AMCC). The AMCC comprises 68 IOSCO affiliate members, including exchanges, market intermediaries, and other financial institutions and bodies with an interest in securities regulation.
/jlne.ws/4bMJXyg

Republican governors gather to attack Biden’s climate agenda; Governors say president has ‘done nothing but attack American energy’ and urge end to US fossil-fuel rules and regulations
Dharna Noor – The Guardian
Republican governors gathered in the fossil-fuel rich state of Louisiana on Monday to rail against the Biden administration’s climate agenda and lay out plans to “unleash American energy”, alarming community advocates and climate experts. “President Biden has done nothing but attack American energy,” said the Louisiana governor Jeff Landry, who led the Wednesday press conference. Landry was joined by by Republican governors from Alaska, Georgia, Nebraska, New Hampshire, North Dakota, Oklahoma and Virginia.
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Moving to Renewables Will Mean Using Less Energy Overall; Most of the energy from burning fossil fuels is wasted, which is not the case with solar and wind power. Electric cars and heat pumps increase energy efficiency even more.
Akshat Rathi – Bloomberg
People don’t want coal, oil or gas. Rather they want the products and services that the energy provides – home heating, public transport or sheets of steel. The distinction is important as we move away from fossil fuels and toward clean energy, because it will mean the world could be consuming less energy in total without losing out the benefits it currently enjoys. We waste about a third of the total energy produced on mining, refining and transporting fossil fuels.
/jlne.ws/4c1N70P

Chief Heat Officers Are Developing a Global Playbook for Deadly Temperatures; As urban centers deal with scorching weather, a network of officials is comparing notes on solutions to keep people cool. We talked to five of them.
Zahra Hirji and David Stringer – Bloomberg
Cities are on the frontlines of unrelenting high temperatures that are shattering records in 2024. In recent months, heat waves have forced school closures from Delhi to Manila. In Thailand, more people have already died from heat this year than in all of 2023. The impacts will get worse as global temperatures continue to climb. Once-in-a-century rates of heat-related excess deaths are now forecast to occur as frequently as every 10 to 20 years. Five urban centers are working to mitigate this threat by deploying chief heat officers, with more expected to follow. These stewards of city life coordinate work to provide residents with relief from high temperatures, to adapt cities for a warming world and to raise awareness of the risks posed by an oft-underestimated danger.
/jlne.ws/3V39CeW

CDP updates platform in bid to streamline corporate environmental disclosures; CDP has today (4 June) launched an improved platform through which businesses can disclose their environmental impacts and risks. Changes have been made to enable alignment with emerging global standards.
Sarah George – edie
CDP is the world’s only independent environmental disclosure system for companies, cities, states and regions, with more than 24,000 entities having disclosed last year. This week, the non-profit has launched a new platform intended to streamline the disclosure process for sustainability professionals. The platform includes a new corporate questionnaire through which businesses can disclose on forests, water, biodiversity and plastics issues together. Previously, firms would have needed to complete separate questionnaires. There is still a separate questionnaire on climate.
/jlne.ws/4c5wgu1

Europe’s steelmakers risk missing climate targets despite billions in subsidies; Environmental campaigners warn that the industry must speed up plans to decarbonise
Sylvia Pfeifer and Arjun Neil Alim – Financial Times
Europe’s steel industry risks missing ambitious climate targets despite pledges of billions of euros in state aid from the region’s governments, warn environmental campaigners. Since 2022, the European Commission has agreed more than EUR8bn in grants for some of the bloc’s largest producers to support investment in less carbon-intensive production, says Aria, a non-profit research organisation.
/jlne.ws/4bMFTy0

World falling short on renewable energy goal for 2030, IEA warns; UN talks kick off as countries fall behind the curve on targets and global warming heads for 2.7C since pre-industrial times
Kenza Bryan – Financial Times
/jlne.ws/4bVMZ2W

Europe’s steelmakers risk missing climate targets despite billions in subsidies; Environmental campaigners warn that the industry must speed up plans to decarbonise
Sylvia Pfeifer and Arjun Neil Alim – Financial Times
/jlne.ws/4bMFTy0

Deadly Floods in Brazil Were Worsened by Climate Change, Study Finds; The country’s south received three months’ rain in two weeks. Global warming has made such deluges twice as likely as before, scientists said.
Raymond Zhong and Manuela Andreoni – The New York Times
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Regulators lack resources to tackle greenwashing, says EU watchdog
Huw Jones – Reuters
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EU approves 1.75 bln eur compensation for German coal exit, Germany says
Riham Alkousaa – Reuters
/jlne.ws/3X7L3ju

Main farming groups shun Brussels protest against EU green policies
Kate Abnett, Bart Biesemans and Hicham Oulichki – Reuters
/jlne.ws/3V82iPd

European Gas Surges as Norway Fault Exposes Supply Fragility
Anna Shiryaevskaya and Priscila Azevedo Rocha – Bloomberg
/jlne.ws/3wYysol

Institutions

Ex-BNP Lawyer Fired for Racial Slur Seeks EUR1.5 Million Payout; Faure says emails were private, can’t be reason for firing; Courts have faced up-tick in race and sex discrimination cases
Gaspard Sebag – Bloomberg
An ex-BNP Paribas SA equities lawyer was fired for using a racial slur to describe a colleague, likening another to Cambodian dictator Pol Pot and calling his boss a vulgar name. Benoit Faure is now suing the bank for EUR1.5 million ($1.6 million) in compensation and bonuses, claiming the bank violated his privacy. He argues that the offensive language, while inappropriate, was contained in emails to a couple of teammates and was never said directly to the people concerned.
/jlne.ws/3x2Eioy

Do You Trust Bill Ackman to Build a $250 Billion Fund Manger? [sic]; The celebrity investor will need superb marketing and good performance to attract the assets to justify a $10.5 billion valuation as he plans a Pershing Square IPO.
Aaron Brown – Bloomberg Opinion
Celebrity fund manager and activist investor Bill Ackman just sold 10% of his investment management company in a deal that valued Pershing Square at $10.5 billion. An initial public offering could come as soon as next year, the Wall Street Journal has reported. The valuation amounts to about 64% of the $16.3 billion in assets Pershing Square is said to manage. That compares with market capitalizations of 15% to 18% of assets under management for the four public hedge-fund-style managers valued by the market at more than $10 billion: Blackstone Inc., KKR & Co., Ares Management Corp. and Blue Owl Capital Inc. Traditional public asset management companies such as BlackRock Inc., Bank of New York Mellon Corp., Ameriprise Financial Inc., T. Rowe Price Group Inc., Northern Trust Corp. and Franklin Resources Inc. have ratios from under 1% to about 4%.
/jlne.ws/3xdsYWG

Fidelity Piles On Pressure in Looming Revenue Plan for ETF Firms
Emily Graffeo and Katie Greifeld – Bloomberg
Fidelity Investments is flexing its muscles in efforts to extract payments from ETF firms in exchange for listing and maintaining their products on its massive platform, stoking industry ire. The Boston-based investment powerhouse already won agreements with nine boutique firms after formally warning them in March that charges could be imposed directly on their ETF investors if discussions break down. It’s now in active discussions with other asset managers on similar revenue-sharing agreements.
/jlne.ws/3X7WvMj

Private Equity Says It’s Got the Data to Back a Push Into Sports
Justina Lee – Bloomberg
The business of sports investing is getting its own index, with one of the firms behind private equity’s incursion into the industry looking to bring a more scientific approach to the burgeoning asset class. Dallas, Texas-based Arctos Partners LP, which runs about $7 billion in funds with stakes in teams including the Los Angeles Dodgers and the Golden State Warriors, on Tuesday unveiled a new financial benchmark for North American sports franchises.
/jlne.ws/4aIf90p

Bill Ackman’s Wealth Hits $8 Billion on Vision of Supersized Pershing; He joins Bloomberg’s list of world’s 500 wealthiest people; Pershing Square is now worth more than Elliott, Millennium
Tom Maloney and Gillian Tan – Bloomberg
A group of investors betting Bill Ackman can massively scale his asset manager, Pershing Square Capital Management, have catapulted the hedge fund manager to the ranks of the world’s richest. The $1.05 billion investment for 10% of Pershing Square means Ackman’s stake is worth more than $3.5 billion, according to the Bloomberg Billionaires Index, sending the investor’s net worth to $8 billion.
/jlne.ws/3yIHc2l

Nick Train paid £14mn dividend despite underperformance; Fund manager was among the beneficiaries of £39mn of annual company dividends
Emma Dunkley – Financial Times
Nick Train has been paid about £14mn in dividends despite the UK fund manager issuing an apology last week for his investment strategy’s recent poor performance. According to accounts for investment boutique Lindsell Train, which manages £15.2bn of assets, the fund manager was among the beneficiaries of £39mn of annual company dividends – down about £10mn on the previous year.
/jlne.ws/4c4DRZN

Work & Management

College graduates are concerned pro-Palestinian activism could deter future employers
Zareen Syed – Chicago Tribune
When graduating University of Chicago senior Rayna Acha heard about the lawsuit filed by a Lebanese American attorney alleging a job offer from a national law firm was rescinded because of her pro-Palestinian views on Gaza, the revocation confirmed one of her worst fears. “The reality is we might not get jobs because of (our activism),” said Acha, an undergraduate anthropology major at the U. of C. and an organizer with Students for Justice in Palestine. Acha has more than one reason to worry. She is one of four U. of C. students whose degrees were withheld because of their involvement with the university’s pro-Palestinian encampment calling on the institution to sever its financial ties to Israel.
/jlne.ws/3KthH7W

Who Really Benefits From the Great Remote-Work Experiment? According to one study, women with more job experience suffer the most.
Jerusalem Demsas – The Atlantic
Four years after the great remote-work experiment began, the public debate has boiled down to: Bosses hate it and workers love it. That’s the story we’re told time and again in a zero-sum debate that leaves little room for nuance. In reality, remote work depends on all sorts of things-the industry, the occupation, and interests of employers and workers, not to mention the interests of government and the broader public. Somehow, remote work is both a remarkable boon and a tremendous loss. In our first episode of Good on Paper, I talk with Natalia Emanuel, a labor economist at the Federal Reserve Bank of New York, who has co-authored a paper trying to tease out what happened to workers after they went remote.
/jlne.ws/4aVG7lm

Wellness Exchange

Private Equity Puts Brakes on Healthcare Roll-Ups After Government Scrutiny; Buyout firms in 2024 have turned away from a strategy antitrust authorities say unfairly reduces competition
Chris Cumming – The Wall Street Journal
Private-equity firms have sharply slowed their serial acquisitions of smaller medical businesses, deals that U.S. antitrust regulators say often unfairly reduce competition and harm patients.
/jlne.ws/3xdvRXw

Britain Poised to Offer Eli Lilly’s Weight-Loss Drug to Patients; Draft guidance recommends use in patients with BMI over 35; Lilly could potentially have wider access to the NHS than Novo
Ashleigh Furlong – Bloomberg
Eli Lilly & Co.’s Mounjaro is being recommended for weight loss for some UK patients with obesity, in draft guidance that could see the National Health Service offer a rival drug to Novo Nordisk A/S’s hit treatment Wegovy. Patients with a body mass index of at least 35 and at least one weight-related co-morbidity should take Mounjaro, according to the UK’s drug cost regulator.
/jlne.ws/3Vs5lmI

Regions

Singapore Seeks Bids for More Gas Power Plants to Meet Demand
Sing Yee Ong – Bloomberg
Singapore is looking for companies to build two new power plants by 2030 to meet its growing energy needs. The Energy Market Authority launched a request for proposals to build, own and operate two hydrogen-ready gas-fired power plants, with capacity of at least 600 megawatts each, that will be ready for operations in 2029 and 2030, it said in a statement. Separately, Singapore requested bids last year to build a power plant by 2028.
/jlne.ws/3Vr1Nkw

Creditors file lawsuit against defaulted Chinese developer’s state shareholder
Xie Yu – Reuters
A group of creditors of China South City (1668.HK) has filed a lawsuit in Hong Kong against the developer’s biggest state-owned shareholder to recover $1.4 billion, according to a court filing and a source familiar with the matter. The lawsuit is the first such case against a Chinese state shareholder of a developer for recovery of payments owed to creditors under the keepwell provision since the property sector tipped into a debt crisis in 2021.
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‘Bar is high’ for China deals, says EQT’s Asia private equity chair; Jean Salata, who oversees EUR40bn in assets, says dealmaking opportunities are better in India and Japan
Kaye Wiggins – Financial Times
The “bar is high” for investing in China and there are greater deal opportunities in India and Japan, the chair of private equity firm EQT’s Asia business said after raising a regional buyout fund. Jean Salata, the founder of Barings Private Equity Asia, which Stockholm-based EQT bought in 2022, said that as it considered potential deals in mainland China, it was not clear how easily it might later sell or list those companies.
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Naira Seen Benefiting as Forward FX Contract Pressure Shrinks; Nigerian currency slipped almost 10% against dollar last week; Price volatility is key concern in Nigeria FX market, RMB says
Emele Onu – Bloomberg
Nigeria’s naira should benefit in coming months from a let-up in pressure from forward central bank foreign exchange contracts, after the market absorbed the equivalent of $1.3 billion last week. That’s the verdict of Rand Merchant Bank in Lagos, which estimates outstanding forward contracts will total just $198 million between now and December. “We expect the pressure on the naira to ease going into the second half of the year,” said RMB’s Ademola Olayiwola. “We expect some stability in the forex market.”
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Zimbabwe’s ZiG Crackdown Against Street Dealers Is Good News for Bankers; Demand for foreign-exchange services grow, bankers group says; ZiG maintains stability with 1.9% gain since debuting in April
Ray Ndlovu – Bloomberg
A monthlong-drive by Zimbabwean authorities to stifle the unofficial market in their new gold-backed currency is driving the business off the streets and into the bank. Zimbabwe has imposed fines for not doing transactions at the official exchange rate of the ZiG, which stands for Zimbabwe Gold. The unit was introduced in April and is the southern African nation’s sixth attempt in 15 years to stand up a stable local currency.
/jlne.ws/459Lufc

Mexican peso, ETFs slammed after ruling party’s election win. Here’s what’s worrying investors; Mexico ETFs suffer worst day in over 4 years as investors fear Morena party’s majority in Congress paves way for constitutional reforms
Isabel Wang – MarketWatch
Exchange-traded funds that track Mexican equities suffered their biggest daily decline in over four years on Monday, after Claudia Sheinbaum’s victory in Mexico’s presidential election sparked investor concerns that her party’s landslide win could lead to constitutional changes.
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Brazil’s economy forecast to have picked up pace in first quarter
Gabriel Burin – Reuters
Brazil’s economy is forecast to have picked up pace in the first quarter of the year, a Reuters poll showed, driven by an increase in federal outlays that added to stronger household spending and private investment. The acceleration would mark a noticeable improvement over the second half of 2023, when the economy stalled as consumption and capital spending lagged under the effect of very high interest rates, which have since been lowered.
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The Stock Market Has Rarely Been This Sleepy

Lead Stories The Stock Market Has Rarely Been This Sleepy Gunjan Banerji - The Wall Street Journal It's eerily calm out there in the stock market. The Cboe Volatility Index, or VIX, dropped below 12 last week, a nearly five-year low. The gauge, based on options prices...

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