The John Lothian Daily Update is a podcast turning the daily JLN hits and takes comments, our original content and the stories and quips in the top box of First Read into a daily podcast.
Hits & Takes
I don’t recommend this as an investment technique, but if you are a billionaire I guess you can do what you want. Bloomberg has a story titled “Billionaire Took Psychedelics, Got Bitcoin and Is Now Into SPACs; German investor Christian Angermayer has made a fortune on the risky and faddish. His portfolio includes crypto, weed and space travel.” — Bloomberg
Here is some good news. JPMorgan CEO Jamie Dimon doesn’t expect stocks to crash anytime soon – but warns against ignoring Warren Buffett and trying to time the market. — Insider
The MarketsMedia 2021 Markets Choice Award winners have been announced. You will have to click on the link to find out who won. — MarketsMedia
Don’t forget to register for Eurex’s webinar titled “Finding smarter ways to interact with today’s FX futures liquidity” on April 28 at 9:30 a.m. CT. The webinar features representatives from Eurex, Flow Traders, MASA Capital, RCM-X and economist Marc Chandler for a soup-to-nuts discussion across the entire FX trade cycle. Capture FX trade recommendations, ensure you are utilizing the most efficient FX products & implementation processes, and maximize your access to new pools of deeper reliable FX liquidity. Register HERE.
Katten financial markets and funds partner Paul McCurdy will participate in the “Banding Together: Reddit, Robinhood and Regulatory Response to Market Populism” webinar on Thursday, May, 6. Panelists will discuss the events of earlier in the year, when a band of retail investors shook financial markets by driving up shares and creating a short squeeze for hedge funds. — Katten
This summer, the LME will be adding a UBC scrap contract to their aluminium suite. Join their webinar on May 5 at 16:00 BST with Argus Media to find out more about the UBC recycling industry, price development and their drive to support the circular economy. — LME
Who has less oxygen, India’s hospitals or the missing Indonesian submarine? O2 is more precious than we think. — Bloomberg
It was a year ago that bleach injections were considered as a way to fight the COVID-19 pandemic. We have come a long way since then, though I do wonder if bleach injections cause blood clots. — Politico
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Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
The Depository Trust & Clearing Corporation (DTCC) this week published a white paper that looked at how capital markets operations responded during the COVID-19 pandemic, as well as where firms are focused in a post-pandemic future. Among the findings was evidence that cash fixed income and cash equities were the most impacted by pandemic-related market volatility. Some 30 percent to 35 percent of buy-side and the sell-side firms reported operational post-trade processing challenges, the research found. Read the paper, “Managing through a Pandemic: The Impact of COVID-19 on Capital Markets Operations,” here.~SC
MIT Economics Professor Daron Acemoglu to Receive CME Group-MSRI Prize in Innovative Quantitative Applications; Panel of leading economists to discuss perils and promise of big data
CME Group, the world’s leading and most diverse derivatives marketplace, and the Mathematical Sciences Research Institute (MSRI), announced its 15th Innovative Quantitative Applications Prize recipient. Daron Acemoglu, Institute Professor at the Massachusetts Institute of Technology (MIT), is the 2020 CME Group-MSRI Prize winner for his work in economics and mathematics. A virtual event honoring Acemoglu will be hosted by CME Group on May 5, 2021 at 10:00 a.m. CT.
*****It was nice to see Leo Melamed quoted in this CME Group press release.~JJL
U.S. SEC picks first woman of color to lead enforcement
Chris Prentice – Reuters
The U.S. Securities and Exchange Commission on Thursday named former federal prosecutor Alex Oh as its new head of enforcement, the first woman of color to lead the division, which plays a crucial role in policing U.S. financial markets. The appointment of Oh, a native of Seoul who moved to Maryland when she was 11, is the first big move under Chair Gary Gensler and comes amid a diversity push by President Joe Biden’s administration.
The destructive green fantasy of the bitcoin fanatics; Imagine bitcoin has no environmental problem — it’s easy if you try.
Jamie Powell and Jemima Kelly – FT
You have probably heard it said that bitcoin is really bad for the environment. You might have heard it said that mining it — i.e., the computer processing that is required to produce new “coins” — is more energy-intensive than [insert increasingly large nation state]. It’s one of the major issues that crypto sceptics— crypto FUDsters, if you will — have with it, in fact.
*****Is ‘bitcoin fanatic’ redundant?~JJL
Robinhood, Three Friends and the Fortune That Got Away; A trio of school photographers in California fell into the online trading frenzy last year, emboldened by dreams, early wins and a circle of online cohorts
Rachel Louise Ensign – FT
Chris Garcia set up a second monitor at his desk in mid-January to display his Robinhood Markets Inc. brokerage account. He turned to it often, watching his balance grow to $23,400, more than four times his initial investment. Mr. Garcia, a 32-year-old school photographer, made more money in a few days from the market than a month’s work at his day job.
*****Interesting story, worth the read.~JJL
Biden Wants the Richest to Help Out the Rest
Michael Winfrey – WSJ
After one of the most prosperous decades in history for U.S. investors, President Joe Biden is ready to make the richest share their wealth. He plans to propose almost doubling the capital gains tax rate for those who earn $1 million or more, ending a century-old precedent of taxing investments less relative to wages and salaries, Laura Davison and Allyson Versprille report.
*****When much is given, much will be required.~JJL
Thursday’s Top Three
The most-clicked story on Thursday was an announcement of industry news, R.J. O’Brien Promotes Christopher Bove to Chief Compliance Officer. The second was from the Financial Times, Vaccines are working: charts that show the Covid endgame. And the third was from Bloomberg, Work From Home to Lift Productivity by 5% in Post-Pandemic U.S.