The $36 Trillion Bill for Neglecting Climate and Free Trade

Nov 13, 2020

First Read

$15,261/$300,000 (5%)
Jessica Darmoni and Dayre Lashnits

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FIA Expo: Cboe’s Ed Tilly Talks Retail Investors, European Derivatives Plans
Suzanne Cosgrove – John Lothian News

Although it was a period of heightened volatility, 2020 was a big year for retail investors who jumped in as many institutional investors moved to the sidelines. Finally, over the last week and a half, those institutions are coming back in, said Ed Tilly, chairman, president and CEO of Cboe Global Markets.

To read the rest, go here.

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FIA Expo: How Small Can You Go?
Sarah Rudolph – John Lothian News

Mini and micro futures contracts at various exchanges have been gaining a lot of traction lately, presumably because of the “Robinhood effect” of retail traders coming into the markets. Our own John Lothian led a panel at FIA Expo-V Thursday titled “How Small Can You Go?” (an ironic title for a John Lothian-led panel, since anyone who has met John knows he cannot go small at all).

To read the rest, go here.

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FIA Expo: DeFi Demystified
Matt Raebel – John Lothian News

The world of blockchain and digital assets is one of tech enthusiasts. Consequently, understanding it requires significant technical knowledge, so it can be difficult to understand how a digital asset protocol works, let alone a broader technological movement like DeFi (decentralized finance). On day three of the FIA’s 2020 Expo, Bloomberg reporter Matthew Leising led a discussion about DeFi – what it is, how it works, who is using it, and how it might (or might not) be regulated.

To read the rest, go here.

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FIA Expo: Operations and Technology: Lessons learned from the pandemic
Matt Raebel – John Lothian News

Amid the COVID-19 pandemic, the financial industry has largely shifted to working from home this year. On Day Two of FIA Expo-V, executives from major institutions throughout the financial industry shared what they had learned from shifting to remote and work-from-home (WFH) business models, as well as coping with wild volatility, unprecedented trade volumes, and regulatory obstacles. Scott Andersen, the director and head of listed derivatives clearing at Societe Generale, led the discussion.

To read the rest, go here.

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FIA Expo: FIA’s Lurton: “Spoofing is something you should pay attention to.” Oyez! Oyez!
Thom Thompson – John Lothian News

Allison Lurton, Chief Legal Officer and General Counsel for FIA, was joined by two lawyers from the law firm Faegre Drinker, James Ludy and Nicholas Wendland, on Thursday morning at FIA Expo for the inevitable panel on spoofing. This one came with a refreshing twist – a focus on practical advice.

To read the rest, go here.

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FIA Expo: Lots of Ideas, But Little Agreement, As Libor Faces Deadline
Suzanne Cosgrove – John Lothian News

As the deadline for the end of the London Interbank Offered Rate (Libor) looms at the end of 2021, a host of legacy issues and alternative rate choices remain on the table, members of a FIA Expo panel on short-term interest rate rates agreed.

To read the rest, go here.

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Hits & Takes
John Lothian & JLN Staff

I would like to give a big thank you to the JLN team for all the hard work they did this week covering FIA EXPO-V’s panels and interviews. JLN for several years has had the highest number of reporters covering the EXPO and this year was no different.

Thank you especially to JLN Editor-in-Chief Sarah Rudolph, who organized the coverage assignments and edited all the JLN original content. Thank you to Suzanne Cosgrove, Matt Raebel, Thom Thompson and Jeff Bergstrom for their hard work this week, and without the normal EXPO cocktails parties to unwind.

Congratulations to the FIA team on a great week of program. Thank you to Emma Davey, Charlie Jones and Steve Adamske in particular for their great work. To move an event like EXPO from a huge in-person conference to an impactful virtual event is not an easy task. You pulled it off very well.

There is one thing I do miss about the in-person EXPO though, and that is seeing Walt Lukken scutter around the EXPO hall to say hello at many of the booths. Nothing like those photo-ops.

Riskfuel was named yesterday by the FIA as Innovator of the Year. Options AI was named the runner-up, and Wematch won the inaugural People’s Choice Award. What is amusing about the press release announcing the winners is that it had a dateline of “Chicago” as if we were holding EXPO-V there rather than virtually, in cyberspace. I guess Chicago is better than using a dateline of “Walt’s Laundry Room.”

Thank you to the panelists in my discussion yesterday about small contracts and retail trading. I particularly want to thank JJ Kinahan, who subbed for me to start the session as my internet crashed just as we were about to start. I ran the whole Zoom panel off the hotspot connection on my iPhone. Thank you also to panelists Lynnette Lim, Tom Sosnoff and Kevin Darby for their participation.

Former Lab CFTC Director Jeff Bandman was once on Jeopardy with Alex Trebek. Trebek recently passed away, so Bandman was showing on social media the autographed picture of his Jeopardy experience.

Kevin Webb is starting a new chapter of his career at the CFTC. He has left Commissioner Brian Quintenz‘s staff, where he was chief of staff, and is now working in the Office of International Affairs. Commissioner Quintenz had previously announced he was stepping down as commissioner as of October 31, 2020.

Legal ace Renato Mariotti, a former federal prosecutor, has a commentary piece in Politico titled “The Right Way to Investigate Trump Once He Leaves Office.” Let me give you two words: Special Prosecutor. And, I happen to know a guy.

Thank you to Jessica Darmoni of ErisX for her donation which nudged our JLN MarketsWiki Education GoFundMe campaign over $15K, and also to Dayre Lashnits of DTN for shooting us higher with her donation. Darmoni is a former protege here at John Lothian News who is a co-founder of WILD. Dayre Lashnits is a former NYSE LIFFE, then Euronext executive who is now with DTN. We at JLN continue to be humbled by the broad support we are receiving for our GoFundMe campaign to help preserve industry history.

I have placed another order for skyr from Gammel Gardens Creamery. Skyr has ruined Greek yogurt for me forever.

I was honored last night in a virtual meeting of the Chippewa District of Boy Scouts of America in the Three Fires Council, along with three other unit leaders, for starting girl Troop 117. The award bestowed upon me was the William D. Boyce New-Unit Organizer Award. I have now been awarded this by two different Boy Scout councils. I was previously given the award for starting an all-girl Exploring Club in the Pathway to Adventure Council.

BTW, happy Friday the 13th!

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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Murphy & McGonigle Named Securities Regulation ‘Law Firm of the Year’ by U.S. News – Best Lawyers; Financial Services Legal Powerhouse is First Boutique to Earn Prestigious Recognition
Murphy & McGonigle
Financial services law firm Murphy & McGonigle announces today it has been named “Law Firm of the Year” for Securities Regulation in the 2021 Edition of U.S. News – Best Lawyers “Best Law Firms.” The prestigious recognition is bestowed on only one firm in the United States annually.
/bit.ly/36xPyb8

***** Our friends at M&M are happy today.~JJL

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Riskfuel named FIA Innovator of the Year; Options AI is the runner-up and Wematch wins the People’s Choice Award
FIA
FIA announced today that Riskfuel has been named the FIA Innovator of the Year. In addition, Options AI was named the runner-up, and Wematch won the inaugural People’s Choice Award.
/bit.ly/2GWL45f

***** I like the name Riskfuel, but really, my risk does not need any extra help.~JJL

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Ivy League Nixes Next Sports Season as Virus Rages Across U.S.
Janet Lorin – Bloomberg
The Ivy League athletic conference is canceling its winter sports season, as the Covid-19 pandemic forces schools to rethink in-person activities while infections are rising across the U.S.
/bloom.bg/36tdEEd

*****There goes the fencing season!~JJL

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Some Grocers Bring Back Purchase Limits as Covid-19 Cases Rise; Retailers say there is higher demand for some staples, but shoppers aren’t stockpiling as much as they did in the spring
Jaewon Kang and Annie Gasparro – WSJ
Grocery stores are reinstating purchase limits on items like paper towels or soap for the first time since the spring, as consumers stock up on staples amid rising Covid-19 cases. With people staying at home more, retailers say there is renewed demand for paper products and frozen foods. Stores also are reporting new shortages in staple cooking ingredients like butter and spices.
/on.wsj.com/32EmMo8

*****I am stocked up on pancake mix. It was mostly a lack of communication, not strategic.~JJL

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This is a massive failure of character among Republicans — with evangelicals out in front
Michael Gerson – Washington Post
One of the better speeches I helped produce for George W.?Bush was never given. On election night 2000 — standing outside in the rain, at an Austin victory rally that never happened — I had the copy of a concession speech in my pocket. As I remember it, the first lines were: “I have just talked to my opponent, who is no longer my opponent. He is the president-elect of the United States.”
/wapo.st/36uy1ks

*****An important read for those who have the ability of self-reflection. If not, don’t bother.~JJL

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Swiss to ban deducting bribes from taxes starting in 2022
John Miller – Reuters
Swiss companies will no longer be able to deduct bribes paid to private individuals from their taxes, Switzerland’s government said on Wednesday, according to an update of tax laws due to take effect on Jan. 1, 2022. Beyond bribes, costs from financing criminal activities or money paid in return for a crime to be committed will also no longer be tax deductible once the legislation takes effect after next year, the government said.
/reut.rs/3eYcLXP

*****This is nice of the government not to underwrite bribes anymore.~JJL

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CryptoMarketsWiki Coin of the Week: Ethereum
Ethereum’s digital DeFi ecosystem shut down temporarily as an unplanned fork split the Ethereum blockchain’s transaction history. The issue was caused by a bug in a recent upgrade to Ethereum’s code related to Go Ethereum, also commonly referred to as “Geth.” Ironically, the Geth update was done to prevent this exact kind of bug.
bit.ly/2EFAxGN

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Thursday’s Top Three
Our most read story on Thursday was the Global Investor Group’s story, Goldman Sachs in talks to buy Trading Technologies – sources. Second was the worrisome story from Bloomberg, How a Covid-19 Vaccine Could End Up Helping the Virus Spread. Third, from Yahoo Finance, was Nasdaq, Other Exchanges To Meet Texas Governor Next Week To Explore Relocation Out Of New Jersey.

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MarketsWiki Stats
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CryptoMarketsWiki Website»
CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.Recently Updated Pages

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Lead Stories

The $36 Trillion Bill for Neglecting Climate and Free Trade
Tom Orlik, Bjorn Van Roye, Maeva Cousin, Johanna Jeansson and Jamie Rush – Bloomberg
In the Covid crisis, governments have struggled to find the right national policies—and also to coordinate an effective global response. They’ll have to do better when it comes to confronting the biggest challenges of the age: rising temperatures and a fracturing world economy. Taken together, rapid action against rising temperatures and a renewed commitment to globalization would put the world economy on track for 2050 output of $185 trillion. Delaying moves to cut carbon emissions, and allowing cross-border ties to fray, could cap it at $149 trillion—the equivalent of kissing goodbye to the entire GDP of the U.S. and China last year.
/bloom.bg/3njD79Q

Preet Bharara Is SEC Candidate for Biden Administration, Putting Bankers on Edge
Benjamin Bain and Robert Schmidt – Bloomberg
Joe Biden’s presidential transition has barely started but already banks and investment firms are anxious about two names they fear are in the running to lead the U.S. Securities and Exchange Commission.
The uneasiness started late last week, when news broke that Gary Gensler — a scourge of Wall Street when he led the Commodity Futures Trading Commission — had been tapped to examine financial regulators for the president-elect. That fueled concerns that Gensler himself might be in line for the top job at the SEC or another agency he’s reviewing.
/bloom.bg/2IpEQfb

Goldman Sachs’s 60 New Partners Are the Happiest People on Wall Street Today; Bankers elevated Thursday are a slightly more diverse group than in years past
Liz Hoffman – WSJ
Goldman Sachs Group Inc. GS -1.62% promoted 60 bankers into its partnership on Thursday, the fewest in two decades as Chief Executive David Solomon tries to restore the somewhat faded luster of Wall Street’s most elite club.
/on.wsj.com/35oQdfJ

Line of Inquiry: John H. Cochrane on how to prevent financial crises
Chicago Booth Review
Many economists and policy makers agree the US financial system has gotten safer since the 2008-10 financial crisis. But is it safe enough? John H. Cochrane, senior fellow of the Hoover Institution at Stanford University and distinguished senior fellow at Chicago Booth, says what’s made us safer is the obligation of banks to hold more capital—but they still don’t hold enough to make us immune from crisis. Cochrane suggests offering the most well-capitalized banks a regulatory reward—namely, less regulation—and keeping the regulatory pressure on those banks that prefer to remain highly leveraged. Making banks even safer should be a priority, Cochrane says, because the next crisis may well be more severe, and more difficult to resolve.
/bit.ly/2IwoeCc

The top contenders to run Biden’s financial agencies
Pete Schroeder, Michelle Price, Katanga Johnson – Reuters
Democratic U.S. President-elect Joe Biden’s team has tapped a mix of progressives and centrist policy experts, including former derivatives market regulator Gary Gensler, to work on a transition plan for financial industry oversight.
/reut.rs/38GbcwU

Goldman Sachs highlights diversity in new partner class
Matt Scuffham, Noor Zainab Hussain – Reuters
Goldman Sachs Group Inc has invited 60 executives to become partners as of Jan. 1, nearly half of them from diverse backgrounds, the bank said on Thursday.
/reut.rs/2IxclMs

Almost half Goldman Sachs’ new partners are women or minorities; Chief executive David Solomon makes fewer promotions in Wall Street’s biennial ritual
Laura Noonan – FT
Women and ethnic minorities make up almost half of the new crop of Goldman Sachs partners, lessening the dominance of white men at one of Wall Street’s most exclusive clubs in a year when admissions fell to their lowest level in decades.
/on.ft.com/35vsdYJ

London gold body warns trade centres over ethical sourcing; Bullion industry group threatens to blacklist suppliers that do not meet OECD standards
Henry Sanderson – FT
London’s gold market association has warned countries that are centres for trading the yellow metal that they risk being blacklisted as suppliers unless they ensure gold entering the market is responsibly sourced. The London Bullion Market Association wrote to countries including the United Arab Emirates, the US, UK and Switzerland saying there was a risk unethical gold was entering global markets.
/on.ft.com/36s3dAI

Investors Flock to SPACs, Where Risks Lurk and Track Records Are Poor; Backers tout blank-check companies for their potential to grow quickly through acquisitions, but investor protections are limited
Alexander Osipovich and Dave Michaels – WSJ
Startups in buzzy sectors such as cannabis, electric vehicles, online gambling and space travel are going public using a structure that offers outsize potential rewards to backers while bypassing some safeguards of a traditional initial public offering.
/on.wsj.com/3ppqWKm

Beijing Attacks America’s New Investment Blacklist; ‘The Chinese side urges the U.S. side to correctly view China’s policy of military-civilian integration and development’
Chong Koh Ping, Dan Strumpf and Frances Yoon – WSJ
Beijing condemned a move by President Trump to block American investments in some key Chinese companies, following a steep selloff in shares of several of the targets. The executive order, signed Thursday, bars American companies and individuals from investing in 31 companies identified by the U.S. as aiding the modernization of the People’s Liberation Army as well as China’s intelligence and security services.
/on.wsj.com/3nnUc2C

Almost half Goldman Sachs’ new partners are women or minorities; Chief executive David Solomon makes fewer promotions in Wall Street’s biennial ritual
Laura Noonan – FT
Women and ethnic minorities make up almost half of the new crop of Goldman Sachs partners, lessening the dominance of white men at one of Wall Street’s most exclusive clubs in a year when admissions fell to their lowest level in decades.
/on.ft.com/35vsdYJ

China’s President Xi Jinping Personally Scuttled Jack Ma’s Ant IPO; Senior government leaders were furious about wealthy entrepreneur’s criticisms of regulators; rebuke was the culmination of years of tense relations
Jing Yang and Lingling Wei – WSJ
Chinese President Xi Jinping personally made the decision to halt the initial public offering of Ant Group, which would have been the world’s biggest, after controlling shareholder Jack Ma infuriated government leaders, according to Chinese officials with knowledge of the matter.
/on.wsj.com/3lqpghy

Airbnb To Weigh 2021 Listing on Silicon Valley Exchange
Crystal Tse, Olivia Carville, and Lananh Nguyen – Bloomberg
It’s in talks to be the first company to list on new exchange; Decision on ESG listing would come in 2021 at earliest
Airbnb Inc., which is planning an initial public offering this year on the Nasdaq, may also list its shares in 2021 on an upstart trading venue for companies committed to environmental, social and corporate governance values, according to people with knowledge of the matter.
/bloom.bg/2IB4SMr

The Spac sponsor bonanza; FT analysis shows backers of cash shells earn billions in what Ackman calls ‘one of the greatest gigs’
Ortenca Aliaj and Sujeet Indap and Miles Kruppa – FT
In June, a group of investors led by the former Citigroup investment banker Michael Klein reaped more than $60m from a $25,000 investment. The stunning return was achieved in less than two years. More impressive still: it was only a partial sale and their remaining stake is worth about $400m.
/on.ft.com/36y1Tw7

Executives have no excuse for dumping stock; Pfizer chief’s explanation for selling $5.6m of shares on the day of the vaccine news does not wash
Tom Braithwaite – FT
When Pfizer and German partner BioNTech announced on Monday that their Covid-19 vaccine was highly effective, global stocks soared. Shares in Pfizer rose 7 per cent and chief executive Albert Bourla sold $5.6m of stock at a whisker from the company’s all-time high.
/on.ft.com/3py3LOn

ELP SI market share battle heats up as Citadel Securities takes top spot in Europe; Figures from Rosenblatt Securities show that 2020 has been a crucial year in the ELP SI landscape as volumes continue to concentrate among the four largest venues.
Hayley McDowell – The Trade
Citadel Securities has become Europe’s largest electronic liquidity provider systematic internaliser (ELP SI) in a shake-up of the landscape this year, according to figures from Rosenblatt Securities seen by The TRADE.
/bit.ly/3f7UIPn

DERIVATIVES SOFR trading tails off after ‘big bang’ boost; Volumes peak, then slow down on CCPs’ shift to new RFR, but remain above 2020 averages
Ben St. Clair – Risk.net
Swaps trading in the secured overnight financing rate (SOFR) hit new highs, then fell away in the two weeks after the so-called ‘big bang’ shift, when it became the discount rate of choice for cleared US dollar derivatives. These modest trading volumes have nonetheless remained above the lifetime average of the SOFR swaps market, which saw its first recorded trade in July 2018.
/bit.ly/3eQ7Qsd

Coronavirus

France Holds Fast on Lockdown as Hospitalizations Rise
Tara Patel and Rudy Ruitenberg – Bloomberg
French PM Jean Castex says too soon to reopen many stores; France seeing some early signs virus is coming under control
Sign up here for our daily coronavirus newsletter on what you need to know, and subscribe to our Covid-19 podcast for the latest news and analysis. French coronavirus victims needing hospital treatment rose to a record, stiffening the government’s resistance to easing lockdown restrictions early.
/bloom.bg/38DOTYs

US coronavirus cases hit record as Chicago tightens restrictions; Mayor of nation’s third-largest city urges residents to scale back Thanksgiving celebrations
Matthew Rocco – FT
The US tallied more than 100,000 new coronavirus cases for a ninth straight day, hitting a record high as Chicago urged residents to stay at home as much as possible and scale back Thanksgiving celebrations.
/on.ft.com/2GWOxkp

Why Covid-19 kills certain patients, especially men, revealed in ‘breakthrough finding’
Liz Szabo, Kaiser Health News- NBC News
Dr. Megan Ranney has learned a lot about Covid-19 since she began treating patients with the disease in the emergency department in February. But there’s one question she still can’t answer: What makes some patients so much sicker than others?
/yhoo.it/3nlyNHb

Brothers Build $22 Billion Fortune on Hope for Covid-19 Vaccine
Benjamin Stupples and Devon Pendleton – Bloomberg
Struengmann twins own almost half of firm working on vaccine; They’ve added $8 billion to fortunes as BioNTech soared
The stock rally sparked by Pfizer Inc.’s promising Covid-19 vaccine trial results boosted many investors’ fortunes, but none so dramatically as a pair of German brothers.
/bloom.bg/3nnP66u

GlaxoSmithKline CEO Says Vaccine Makers Staking Reputations on Covid-19
Thomas Mulier and Thomas Buckley – Bloomberg
‘World will pay a high price’ if any vaccines fail: Walmsley; CEO sees Covid race permanently accelerating drug discovery
Vaccine makers have a lot at stake if any of the shots designed to protect against Covid-19 fail, according to Emma Walmsley, chief executive officer of GlaxoSmithKline Plc. The industry’s commitment will help ensure that the shots that do make it to the market are safe after a one-year development cycle, which is a fraction of the normal time needed, the head of the world’s largest vaccine maker said.
/bloom.bg/3ptSjDo

Denmark’s mink farmers count cost of botched cull; Plan to curb mutated form of coronavirus has descended into legal and political farce
Richard Milne – FT
Jens Wistoft was halfway through killing his life’s work this week when he stopped. The Danish mink farmer had put more than 10,000 of his mink in boxes to be gassed after being ordered to do so last week by the government in Copenhagen over worries that a mutated form of coronavirus could threaten the effectiveness of future vaccines.
/on.ft.com/38B50WR

Why Wisconsin is in ‘crisis mode’ amid surging coronavirus cases
Emily DeCiccio – CNBC
Dr. Paul Casey, emergency department medical director at Bellin Hospital in Green Bay, Wisconsin, told CNBC that his state was in “crisis mode” as one in three Badger State residents has the coronavirus.
/cnb.cx/32D9EzB

An influential Covid-19 model projects the US death toll could reach 439,000 by March 1
Health’s Shelby, Lin Erdman – CNN
An influential Covid-19 model is projecting that 438,941 people will have died from Covid-19 by March 1, 2021. The projection is from the the team at the Institute for Health Metrics and Evaluation (IHME) at the University of Washington School of Medicine. They said the new figure accounts for a reduced infection fatality rate.
/cnn.it/32Ep4DK

Chicago and Detroit told to hunker down as pandemic surges
Brendan O’Brien, Maria Caspani – Reuters
Chicago’s mayor issued a month-long stay-at-home advisory on Thursday, and Detroit’s public schools called a halt to in-person instruction to curb the spread of the coronavirus as more than a dozen U.S. states reported a doubling of new COVID-19 cases in the last two weeks.
/reut.rs/3pqmAmp

A Third of the World’s Air Routes Have Been Lost Due to Covid
Angus Whitley – Bloomberg
Lost routes thrust aviation’s economic miracle into reverse; Some services may be gone for good, making travel tougher
Before the coronavirus, a decades-long aviation boom spawned a network of nearly 50,000 air routes that traversed the world. In less than a year, the pandemic has wiped almost a third of them off the map.
/bloom.bg/32J0K3T

At dinner parties and game nights, casual American life is fueling the coronavirus surge as daily cases exceed 150,000
Karin Brulliard – Washington Post
A record-breaking surge in U.S. coronavirus cases is being driven to a significant degree by casual occasions that may feel deceptively safe, officials and scientists warn — dinner parties, game nights, sleepovers and carpools.
/wapo.st/36v7YJK

Exchanges, OTC and Clearing

Block trading surges as Turquoise Plato sets new daily record; Investors traded EUR1.42 billion?via Turquoise Plato Block Discovery up from the previous daily record of EUR1.23 billion in March.
Annabel Smith – The Trade
The Turquoise Plato anonymous block trading platform from the London Stock Exchange Group (LSEG) has set a new daily record this month following a surge in market volatility.
/bit.ly/2IzGVVv

Euronext announces its financial calendar for 2021
Euronext
Euronext, the leading pan-European market infrastructure, today announced its financial calendar for 2021, set as follows:
/bit.ly/35rFcu6

triBalance Completes First FX SA-CCR Optimization Cycle
CME Group
TriOptima, a leading infrastructure service that helps to lower costs and to mitigate risk in OTC derivatives markets, announced the completion of its first triBalance FX cycle optimizing exposures for clients who calculate their leverage ratio capital requirements under the Standardized Approach for Measuring Counterparty Credit Risk (SA-CCR). Bilateral and cleared initial margin exposures were simultaneously optimized in the FX cycle that took place on October 29, 2020.
/bit.ly/38Idw6m

Performance Bond Requirements: Agriculture, Equities, Freight, FX, Metals – Effective November 13, 2020
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below. The rates will be effective after the close of business on 11/13/2020.
/bit.ly/36x4F4H

Performance Bond Requirements: Energy, Agriculture, Interest Rates – Effective November 13, 2020
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below
/bit.ly/3poKUFa

CME STP Notices: November 12, 2020
CME Group
CME STP
Changes to Time Unit of the Original Trade for Weekly Options – December 2020
Update – CME STP Support of BrokerTec Markets – January 18, 2021 UPDATE
Update – BrokerTec Stream on CME STP – February 1, 2021 UPDATE
CME STP FIXML API Connectivity Documentation
/bit.ly/3nj30GQ

CME Globex Notices: November 9, 2020
CME Group
Critical System Updates
iLink 2 on MSGW Decommission – February 26, 2021
Update on Order Routing and Front-End Audit Trail Requirements for iLink 3
iLink Enhancements for Location ID and Displayed Quantity – This Week
Update – Removal of Korea Exchange (KRX) Markets on CME Globex – December 18 UPDATE
iLink 3 SBE Schema Update – January 24, 2021
Phase 1 CME FX Link Enhancements – February 21, 2021
Phase 1 CME FX Link Enhancements: Drop Copy Impact – February 21, 2021
/bit.ly/3pu2nwa

ABS and SGX RegCo enhance due diligence standards
SGX
The Association of Banks in Singapore (ABS) announced today an enhancement of the ABS Listings Due Diligence Guidelines, which have been revised in close collaboration with Singapore Exchange Regulation (SGX RegCo) to raise standards of due diligence conducted on companies planning to list on Singapore Exchange (SGX).
/bit.ly/3prTIu4

Next release of FX and Securities markets systems
MOEX
The next release of the FX and Securities markets trading and clearing systems is scheduled for 14 December 2020.
/bit.ly/3nmrKOA

B3 Announces Results For The Third Quarter Of 2020
Mondovisione
Brasil, Bolsa, Balcão (“B3” or “Company”; ticker: B3SA3) reports today its third quarter 2020 (3Q20) earnings. Total revenues reached R$2,535.5 million, a 48.6% increase over the same period of the previous year (3Q19), while recurring EBITDA totaled R$1,665.7 million, up by 50.1% year-over-year (yoy). The company’s recurring net income1 totaled R$1,143.2 million.
/bit.ly/32Ic6Fg

Nigerian Stock Exchange Triggers Circuit Breaker, Records Highest Daily Gain In Over Five Years
Mondovisione
The Nigerian Stock Exchange (NSE or The Exchange) All Share Index (ASI) posted its largest daily gain in more than five years on Thursday, 12 November 2020. The ASI rose beyond the set threshold of 5%, triggering a 30-minute trading halt of all stocks for the first time since the circuit breaker was introduced in 2016.
/bit.ly/32GwB4W

EEX To Launch Cash-Settled Gas Futures On The European Gas Spot Index (EGSI) – New Products To Be Launched Together With Spark Spreads Thereby Linking The Gas And Power Markets Of EEX
Mondovisione
The European Energy Exchange (EEX) plans to launch cash-settled Gas Futures on the European Gas Spot Index (EGSI) as well as associated cash-settled Spark Spreads within the first quarter of 2021.
/bit.ly/3ptiTfw

EEX Sets New Record In Japanese Power Futures – EEX To Extend Fee Waiver In Recognition Of Huge Efforts From The Market
Mondovisione
The European Energy Exchange (EEX) has recorded its highest trading volume to date in Japanese Power Futures. Throughout the month of October, EEX achieved a total traded volume of 111 GWh, thereby setting a new monthly record.
/bit.ly/38Fn5mI

Fintech

First electronic SOFR?vs EFFR?swap compression trade?executed on Bloomberg SEF; The electronic basis swap compression trade was executed on the Bloomberg SEF, which offers trading in credit default swaps, interest rate swaps, and FX derivatives.
Annabel Smith – The Trade
Market participants have executed the first electronic SOFR versus effective federal funds rate (EFFR) basis swap compression trade on Bloomberg’s swap execution facility (BSEF).
/bit.ly/35scR7b

RJ O’Brien adopts?post-trade platform?from Broadridge for exchange-traded derivatives; The platform from Broadridge will provide R?J O’Brien with a single solution for all asset classes supported by the firm globally.?
Annabel Smith – The Trade
Futures broker and clearing firm, RJ O’Brien, has become the first client to adopt Broadridge Financial Solutions’?post-trade platform to simplify?its exchange
/bit.ly/3lwP2R2

Barchart Awarded Best Buy-Side Commodities Trading Platform by WatersTechnology
Barchart
Barchart, the leader in commodity data, today announces that its flagship commodity trading platform cmdtyView, has been named the Best Buy-Side Commodities Trading Platform by WatersTechnology. The Buy-Side Technology Awards recognize market-leading platforms and technologies that help buy-side firms manage their workflows more efficiently and effectively.
/bit.ly/36t5xHz

Cryptocurrencies

Lagarde Says Her ‘Hunch’ Is That ECB Will Adopt Digital Currency
Alexander Weber – Bloomberg
European Central Bank President Christine Lagarde signaled that her institution could create a digital currency within years in what would be a dramatic change to the euro zone’s financial sector.
/bloom.bg/3pwIGUv

Bitcoin’s Options Market Shows Strongest Bullish Mood on Record
Omkar Godbole – Coindesk
Bitcoin’s options market is in the midst of its strongest bullish sentiment on record as the cryptocurrency rallies to three-year highs. The six-month put-call skew, or the spread between prices claimed by put options and call options expiring in six months, fell to a life-time low of -21.6% early Thursday, according to data source Skew. A call option gives the holder the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option gives the right to sell.
/bit.ly/3nmzUGs

Deutsche Bank says central bank digital currencies will replace cash in the long run
Yogita Khatri – The Block
Central bank digital currencies (CBDCs) will replace cash in the long term, according to Deutsche Bank’s research team. The bank said the coronavirus pandemic has accelerated the use of digital payments over cash, and the trend will eventually lead to CBDCs taking over cash.
/bit.ly/3nlqsTL

Fed vice chair says the U.S. central bank is still in ‘early stages’ of a possible CBDC
Aislinn Keely – The Block
The Federal Reserve is still in the early stages of investigating the viability of a digital dollar. During Thursday’s House Financial Services Committee hearing, Randal Quarles, Vice Chair for Supervision at the Fed, said the central bank’s stance on a digital currency is still in the formative stages.
/bit.ly/2Ip451a

$300M in Bitcoin Flow to Binance From Huobi as China Gets Tougher on Exchanges
Muyao Shen – Coindesk
As the Chinese government cracks down on several crypto exchanges catering to traders based in China, many of those customers – and their bitcoin – have been making their way to Binance over the past few days. Bitcoin flows to Binance from Huobi reached an all-time high since the Huobi chief operating officer, Robin Zhu, allegedly went missing on Nov. 2. According to data provided by CryptoQuant, a total number of 18,652 bitcoin, worth nearly $300 million, was transferred from Huobi to Binance from that day until Nov. 11.
/bit.ly/2Ip4bWA

PayPal says it’s opening up crypto services to all eligible U.S. users
Michael McSweeney – The Block
PayPal said Thursday that it is opening up its nascent cryptocurrency services to all eligible U.S. users. “We are pleased to announce that all eligible PayPal accountholders in the U.S. can now buy, hold and sell cryptocurrency directly with PayPal,” the firm said in a statement. The move follows disclosures of high demand from PayPal’s leadership. On an earnings call earlier this month, PayPal CEO Daniel Schulman remarked that “our base is very eager for us to offer these capabilities” and that the firm’s waiting list was bigger than expected.
/bit.ly/32I8uTI

DeFi project Akropolis exploited for over $2 million
Aislinn Keely – The Block
Decentralized finance (DeFi) protocol Akropolis lost $2 million in DAI in an exploit on Thursday morning. According to an update from the Akropolis team, a post-mortem analysis is forthcoming, and the team is exploring ways to reimburse those affected. Akropolis is a DeFi lending and savings service provider that enables users to take out loans and generate yield on cryptocurrency deposits. The savings portion of the service, which utilizes Curve protocol, was exploited in the attack earlier in the day.
/bit.ly/3ku8igW

No longer a currency, is bitcoin the digital equivalent of gold? As its performance and attractiveness as a means of payment declined, bitcoin has turned into a store of value, writes Alessandro Lanteri
London School of Economics and Political Science
In the past few years, bitcoin has become equally famous and infamous worldwide thanks to the media hype that followed its rising and falling evaluations. From a historical high of $19,650 in mid-December 2017, it crashed to just $3,200 one year later, and subsequently recovered to reach $7,000 in mid-December 2019. Quite a ride! Yet, the most interesting changes in bitcoin run deeper than valuation swings.
/bit.ly/3nmzDDo

Payments Provider BitPay Rolls Out Cryptocurrency Payroll Service
Sebastian Sinclair – Coindesk
Payments provider BitPay has launched a new service enabling businesses to pay employees, contractors, customers and vendors en-masse with cryptocurrency. Announced Friday, BitPay Send is a payout service with a focus on international and gig-economy companies looking to pay multiple recipients online simultaneously. “Blockchain payment adoption is growing because it offers an easy way to send and receive payments on a global scale,” said BitPay CEO Stephen Pair.
/bit.ly/3lu5fGO

Blockchain analysis startup Chainalysis launches new service for managing seized crypto
Michael McSweeney – The Block
Blockchain analytics firm Chainalysis has launched a new service aimed at governments and law enforcement agencies looking to handle, monitor and dispose of seized crypto assets. The new service is being offered in partnership with Asset Reality, a consulting firm that specializes in asset realization services for public and private sector clients.
/bit.ly/2IwXWzt

Binance Launches Ethereum Mining Pool with Competitive Fees
Arnab Shome – Finance Magnates
Expanding from the cryptocurrency exchange business, Binance has launched an Ethereum mining pool on Tuesday. This move came only seven months after the crypto exchange giant launched a Bitcoin mining pool, which gained over 11 percent of the total hash rate in the Bitcoin network.
/bit.ly/3eYaHPz

Politics

Trump CFO’s Family Tax Records Reviewed by New York Authorities
Caleb Melby – Bloomberg
Weisselberg’s son received perks such as years of free rent; Many of the benefits have tax implications, legal experts say
New York’s attorney general continues to gather information about President Donald Trump’s business, obtaining financial records this month from the family of the Trump Organization’s CFO that could provide further insights into the company’s operations and tax strategies.
/bloom.bg/32Hh2Kr

Dominic Cummings Quits as U.K. Prime Minister’s Top Aide
Tim Ross and Alex Morales – Bloomberg
Dominic Cummings had said he wanted to be ‘largely redundant’; Johnson’s spin doctor and Cummings ally resigned Wednesday
Dominic Cummings quit as Boris Johnson’s most powerful aide and will leave by the end of the year, a person familiar with the matter said. The news will plunge the prime minister’s leadership into crisis at a critical time for the U.K. as it navigates the closing stages of Brexit. Cummings earlier told the BBC’s Laura Kuenssberg that his position “hasn’t changed” since he wrote in January that he wanted to be “largely redundant” within a year.
/bloom.bg/38Cwc7z

Trump Bans Investments in Firms Controlled by China Military
Justin Sink – Bloomberg
Executive order latest White House bid to pressure China; Order says China is ‘exploiting’ U.S. capital for its military
Donald Trump signed an order prohibiting U.S. investments in Chinese firms determined to be owned or controlled by the country’s military, the latest bid by the White House to pressure Beijing over what the president has described as abusive business practices.
/bloom.bg/38EMY5R

Twitter Says Labels and Warnings Slowed Spread of False Election Claims; Labels and warning messages on tweets that Twitter deemed misleading appeared to decrease the spread of misinformation
Georgia Wells – WSJ
Twitter Inc. TWTR -1.88% plans to continue its policy of labeling what it deems misleading information, despite persistent criticism from President Trump and other conservatives that it silences their commentary on the election.
/on.wsj.com/2UjV7V6

Lael Brainard, the internationalist in line for top Treasury job; Appointment by Joe Biden would smash glass ceiling at department that has never been run by a woman
James Politi – FT
In the summer of 2008, Lael Brainard, then a vice-president at the Brookings Institution think-tank, warned that US leadership on the international economic stage was in danger of faltering.
/on.ft.com/36Bggjc

Labour calls for UK pension funds to be carbon neutral by 2050; Opposition party in push to align retirement schemes with Paris climate agreement
Josephine Cumbo – FT
UK pension schemes would be compelled to be carbon neutral by 2050 under a push by the Labour opposition party to force asset managers to step up their efforts on climate change.
/on.ft.com/32XIlR5

A Republican Senate Would Be Bad for Business; What’s bad for America would be bad for corporations, too.
Paul Krugman – NY Times
So the blue wave fell short of expectations. Joe Biden will be the next president, but unless Democrats pull off an upset in the Georgia Senate runoffs — which, to be fair, they might, given the remarkable strength of their organizing efforts there — Mitch McConnell will still be the Senate majority leader.
/nyti.ms/2Ixpzc5

Trump’s War on Fox News Just Latest Threat for Resilient Network
Gerry Smith and Christopher Palmeri – Bloomberg
President attacks channel in tweets, reportedly plans rival; Newsmax tries to lure viewers by not calling race for Biden
Fox News faces an array of challenges after President Donald Trump leaves office: a potential ratings decline, Trump’s tweets attacking the network, and the threat that he could start a rival media outlet.
/bloom.bg/3nlBqc6

Law Firm Stops Representing Trump Campaign in Pennsylvania Suit; Porter Wright said in a court filing that it would no longer represent the campaign in a federal lawsuit alleging widespread voter irregularities.
David Enrich, Jessica Silver-Greenberg and Rachel Abrams – NY Times
Porter Wright Morris & Arthur, the law firm leading the Trump campaign’s efforts to cast doubt on the presidential election results in Pennsylvania, abruptly withdrew from a federal lawsuit that it filed days earlier on behalf of President Trump.
/nyti.ms/2JWNtho

Trump Silent on Virus Surge as Cases and Deaths Rise Sharply
Josh Wingrove and Emma Court – Bloomberg
Trump hasn’t addressed surge, won’t trigger Biden transition; Hospitalizations hit record as pandemic projected to get worse
President Donald Trump has stayed silent as the U.S. coronavirus outbreak rages anew, a leadership vacuum that leaves governors and health authorities to grapple with record numbers of new cases and hospitalizations.
/bloom.bg/36C1ed2

Joe Biden’s chief of staff pick has had a long career in venture capital.
Lauren Hirsch and Andrew Ross Sorkin – NY Times
President-elect Joseph R. Biden Jr. tapped Ron Klain to be his White House chief of staff. Mr. Klain is a veteran Democratic operative who first worked with Mr. Biden in 1989, when Mr. Biden was a senator from Delaware. He later served as Mr. Biden’s chief of staff when he was vice president, helping oversee the 2009 economic rescue package, and later acting as President Barack Obama’s “Ebola czar.”
/nyti.ms/32EHh4a

Regulation

2020 in review and COVID-19 recovery; Speech by Sean Hughes, ASIC Commissioner, at the Australian Retail Credit Association Conference, 13 November 2020.
ASIC
Thank you for the introduction Mike and good morning everyone. I would like to acknowledge the Traditional Owners of the lands upon which we meet; and pay my respects to Elders past, present and emerging.
/bit.ly/3pn0Urg

ESMA Identifies Costs and Performance Data Quality as New Union Strategic Supervisory Priorities
ESMA
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, using its new convergence powers, has identified costs and performance for retail investment products and market data quality as the Union Strategic Supervisory Priorities for national competent authorities (NCAs).
/bit.ly/2Itlvct

ESMA tells fund managers to improve readiness for future adverse shocks
ESMA
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published a Report on the preparedness of investment funds with significant exposures to corporate debt and real estate assets, for potential future adverse liquidity and valuation shocks. The Report identifies five priority areas for action which would enhance the preparedness of these fund categories.
/bit.ly/3kuyKXy

Avoid Bad Financial Luck This Friday the 13th With These 4 Tips
FINRA
This Friday the 13th, you might be taking some extra precautions to ward off bad luck, perhaps carrying around your rabbit’s foot or other good luck charm. But how about taking some extra precautions when it comes to your financial situation?
/bit.ly/2UodCrt

Mike Willis Named Associate Director in Division of Economic and Risk Analysis
SEC
The Securities and Exchange Commission today announced that it has named Mike Willis as an Associate Director in the Division of Economic and Risk Analysis (DERA). Mr. Willis will lead DERA’s newly created Office of Data Science and Innovation, which provides the Commission and its staff with expertise on data analytics, risk assessment, and structured disclosure. He will oversee the development of data analytics tools to enhance program data quality and information. Mr. Willis will coordinate with other offices and divisions to address structured machine-readable open data in rulemaking, analytics, dissemination and other areas. He will also oversee data ingestion and work with the SEC’s Chief Data Officer and others within the agency to develop a unified vision of data ingestion, analysis, visualization and use.
/bit.ly/3eVBtZ2

Statement on Staff Bulletin Related to Risks Associated with Offshore Omnibus Accounts Transacting in “Penny Stocks” and other Low-Priced U.S. Securities
Chairman Jay Clayton – SEC
Today, the Division of Trading and Markets published a staff bulletin highlighting for broker-dealers various risks to our markets and our investors arising from certain transactions in “penny stocks” and other low-priced securities. In particular, the Commission has found that wrongdoers engage in fraud and other illicit activities involving low-priced securities through omnibus accounts maintained by foreign financial institutions. The staff bulletin reminds broker-dealers of common fact patterns and red flags and discusses their obligations in such circumstances under the Bank Secrecy Act, Rule 17a-8 under the Securities Exchange Act of 1934, Section 5 of the Securities Act of 1933, and FINRA rules.
/bit.ly/3lsuyJr

What’s New on the SEC Website; November 12, 2020
SEC
jlne.ws/1JoVeWA

Effective date for amendments to Part 3 of NFA’s Compliance Rules allowing virtual hearings
NFA
Part 3 of NFA’s Compliance Rules sets forth the compliance procedures that control NFA’s disciplinary processes. NFA recently amended these rules to specify that an NFA Hearing Panel has the authority to order a virtual hearing in extraordinary circumstances where an in-person hearing is not feasible, such as the ongoing COVID-19 pandemic.
/bit.ly/3eXgjcY

FCM and IB Members—FinCEN reissues and updates its list of FATF-identified jurisdictions with AML/CFT deficiencies
NFA
On November 6, 2020, the Financial Crimes Enforcement Network (FinCEN) issued an Advisory announcing that the Financial Action Task Force (FATF) reissued its list of jurisdictions with strategic AML/CFT deficiencies, with updates to two jurisdictions. NFA Member FCMs and IBs should review this Advisory to ensure that their AML programs have the most current information on FATF-identified jurisdictions with AML/CFT deficiencies and revise their AML programs accordingly. A copy of the Advisory is available on FinCEN’s website.
/bit.ly/3eSa61Q

Statement on certain FCA work in light of coronavirus and changing market conditions
UK FCA
We are providing an update on work that we intend to either stop or postpone in light of the ongoing impact of coronavirus and economic conditions. These changes will allow us to focus our resources on the most urgent work where we can make the most immediate difference to consumers and markets.
/bit.ly/3lsM2oN

UK watchdog proposes to censure Carillion for being ‘reckless’
Reuters Staff
Collapsed builder Carillion and some of its executive directors were “reckless” in failing to ensure that public announcements did not mislead investors, Britain’s Financial Conduct Authority said on Friday.
/reut.rs/3eX5Myt

Investing and Trading

Nio Stock Surge Tops 1,000% as Tesla’s China Nemesis Gains Speed
Bloomberg News
After teetering on brink, Nio has won early fans for its SUVs; But competition is getting tougher with Tesla Model Y looming
A year ago, Nio Inc.’s dwindling cash and sputtering sales had the electric-car upstart on the brink of doom. Fast forward, and the stock’s 11-fold gain in 2020 has pushed the Chinese company’s market value past General Motors Co.
/bloom.bg/35rPY3E

Investors should take heed of the inflation chatter; Don’t be blindly addicted to free money and risk a shock when conditions change
Gillian Tett – FT
There are two pieces of good news to celebrate in markets this week. The first is obvious: a fairly effective vaccine for Covid-19 is emerging from Pfizer and BioNTech. Anthony Fauci, the leading US infectious diseases expert, told the Financial Times he expects a second one soon, too.
/on.ft.com/3neZQDO

Markets’ Worst Tail Risk Is a Furry Mammal; Danish mink embody the troubling prospect of a virus that mutates in animals and then jumps back to humans.
John Authers – Bloomberg
Uncertainty, Pre-Vaccine and Post-Vaccine
The post-election world is growing a little clearer, even if it is still not, alas, the post-Covid world. Thursday offered the inspiring online spectacle of three powerful central bankers — Andrew Bailey of the Bank of England, Christine Lagarde of the European Central Bank and Jerome Powell of the Federal Reserve — undergoing a grilling from my former colleague Roula Khalaf, the editor of the Financial Times.
/bloom.bg/32CIwRq

Turkey farmers fear that, this year, they’ve bred too many big birds; The pandemic will entail more, smaller Thanksgiving and holiday gatherings — and more anxious first-time cooks. The Butterball hotline is primed to field a flock of queries.
Laura Reiley – Washington Post
It is among Norman Rockwell’s most recognized paintings, known alternately as “Freedom from Want” or “The Thanksgiving Picture.” The aproned matriarch proffering the burnished bird, extended family leaning in toward chafing dish and wobbly aspic.
/wapo.st/3niIBSc

Environmental, Social and Corporate Governance

Why Fund Managers Started Worrying About Biodiversity
Alastair Marsh – Bloomberg
The natural world is in crisis: Global wildlife populations have declined by an estimated two-thirds on average in the past 50 years, up to 1 million species are thought to face extinction and many of the earth’s ecosystems are badly damaged. The destruction of the planet’s biodiversity, the result of human activity from deforestation to pollution, isn’t only troubling for conservationists and wildlife lovers. It also poses huge economic risks.
/bloom.bg/2IyUB39

Fed’s Powell Says Central Banks Must Help Address Climate Change
Christopher Condon – Bloomberg
Federal Reserve Chair Jerome Powell said the U.S. central bank has been cooperating with its counterparts around the world to address risks presented by climate change.
/bloom.bg/2K6q8tV

U.S. agency again delays key permit for first major U.S. offshore wind farm
Nichola Groom – Reuters
A federal agency said on Thursday it has again delayed a long-awaited environmental study crucial to permitting the first major U.S. offshore wind project, but final approval of the project is expected by mid-January.
/reut.rs/3ptduoP

Institutions

JPMorgan to Reveal Bankers Who Approved Suspicious Transfers
Jonathan Browning – Bloomberg
Nigeria sued bank in London over $875 million in transfers; Nigeria says bank managers expressed concerns before payments
JPMorgan Chase & Co. agreed to identify any bank officials who signed off on $875 million of transfers to a former Nigerian oil minister, after the government said that some of the lender’s own managers expressed
/bloom.bg/3lsRIPF

Stock Funds Get Record $44.5 Billion Inflows on Vaccine Optimism
Ksenia Galouchko – Bloomberg
U.S. funds dominated additions with inflows into large-caps; Vaccine news fuels investments into energy, financials
Stock funds attracted a record amount in a busy week that included Joe Biden’s election victory and promising results for a coronavirus vaccine.
/bloom.bg/3nnQtSG

Investment trusts stay on course through the pandemic; The attraction of steady dividends has led to a resurgence in popularity in recent months
Madison Darbyshire – FT
Fund managers running investment trusts have had a torrid year. With the pandemic shaking markets, the average discount to asset values — a key performance measure — has widened from a historic low of just 1.3 per cent at the end of 2019, shortly before Covid-19 struck, to around 7 per cent at the end of last month, according to the Association of Investment Companies (AIC), the industry body.
/on.ft.com/2Iyjkon

Cut-throat ETF price war is over, industry professionals say; EY survey reveals a jump in the proportion who believe fees are as low as they can go
Steve Johnson – FT
A cut-throat price war that has caused fees for mainstream exchange traded funds to sink to unprecedented lows may have now run its course, industry professionals believe.
/on.ft.com/2K6tGwf

The $5tn club: Merger mania sweeps asset management industry; Only half of investment houses will still exist by 2030 as size becomes crucial to success, research predicts
Chris Flood – FT
Ten titans that each oversee more than $5tn will emerge as the asset management industry’s dominant players by the end of the decade as size becomes a critical driver of success for investment companies globally.
/on.ft.com/36sGRPw

Regions

Zambia Stares Down the Default Barrel With Key Creditors to Vote
Matthew Hill – Bloomberg
Country has already missed interest due on $1 billion of bonds; Grace period after skipped payment expires later today
Zambia faces a crucial vote that could see it become the first African country to default on sovereign debt payments since the outbreak of the coronavirus was declared a global pandemic almost eight months ago.
/bloom.bg/2UmNcX9

The World Should Watch Japan’s Attempts to Save Its Struggling Banks; Low, zero and negative interest rates make banking a low-profit game. Japan’s attempts to get its lenders to merge and cut costs are worth paying attention to.
Mike Bird – WSJ
Japan is trying to encourage mergers among its ailing regional banks by introducing a sweetener for those that cut costs. Other advanced economies should pay attention: Rock-bottom interest rates mean Japan’s present is likely to be their future.
/on.wsj.com/2IxSHjs

South Korea Sounds Alarm on Stock Market Bubble Amid Retail Boom
Heejin Kim – Bloomberg
Government says individuals could suffer losses on volatility; Comment follows 137% jump in preferred stock before delisting
South Korea issued a warning over signs of a bubble in the nation’s stock market, one of the world’s top performers this year amid a record surge in retail investing spurred by easy money and pandemic free time.
/bloom.bg/2K4Mtbg

China’s President Xi Jinping Personally Scuttled Jack Ma’s Ant IPO; Senior government leaders were furious about wealthy entrepreneur’s criticisms of regulators; rebuke was the culmination of years of tense relations
Jing Yang and Lingling Wei – WSJ
Chinese President Xi Jinping personally made the decision to halt the initial public offering of Ant Group, which would have been the world’s biggest, after controlling shareholder Jack Ma infuriated government leaders, according to Chinese officials with knowledge of the matter.
/on.wsj.com/3nyotMf

Brexit

City regulator warns on three Brexit ‘cliff-edge’ risks; UK-EU trade deal may not offset disruption to financial services on January 1, says FCA director
Matthew Vincent – FT
The UK financial regulator’s head of Brexit preparations has warned that banks and investment groups still face three “cliff-edge” risks when the transition period for leaving the EU expires in seven weeks.
/on.ft.com/3lt98fd

Brexit standoff blamed on No 10 infighting over Cummings’ departure
Daniel Boffey – The Guardian
A standoff in the Brexit negotiations has been blamed on the factional infighting in Downing Street, as Dominic Cummings confirmed he will leave the government by Christmas. Manfred Weber, the leader of the largest party in the European parliament and a political ally of the German chancellor, Angela Merkel, lamented the “chaotic situation” at the heart of No 10. Cummings, Boris Johnson’s most powerful aide and former Vote Leave campaign director, confirmed on Thursday evening after days of speculation he would leave Downing Street.
/bit.ly/38GWEgu

Brexit Talks Hit Make-Your-Mind-Up Time as Deadlines Pass
Ian Wishart, Alberto Nardelli, and Dara Doyle – Bloomberg
European Union officials say it’s make-your-mind-up time for Boris Johnson. Does he want a trade deal with the bloc, or not? Another week of negotiations — one that was supposed to be decisive — will end Friday with little progress made in the main areas of disagreement, according to three EU officials familiar with the situation. While both sides can see what a final agreement would look like, Brussels officials insist that reaching one will require the U.K. prime minister to move first, a stance their British counterparts reject.
/bloom.bg/3eUwZSq

Miscellaneous

RV Owners Take to the Road With ‘Covid Campers’; Suffering from cabin fever, travelers are looking for safe ways to work away from home and see new places, too
Heidi Mitchell – Bloomberg
Earlier this year, Nate Luebbe came up with a new way to work from home: bring his home to where he worked. The Seattle photographer, who often had to travel three hours each way to shoots, bought an old ski shuttle for $15,000 and had it outfitted into a space where he could rest and work instead of driving home—complete with solar panels, a battery bank, a full kitchen and toilet, outdoor shower, sleeping quarters and desk space.
/on.wsj.com/32G15Ed

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