The LME debacle raises serious questions for the City of London

Jun 10, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

I head back to the U.S. tomorrow, assuming I pass my Covid test. It will be nice to be back on U.S. time.

Hazem Dawani is on to his next entrepreneurial enterprise. He is the CEO of a company in the digital content creator space as the co-founder at GigaStar (“”). GigaStar is a blockchain-based start-up platform that allows creators to sell fractional royalties of their YouTube Channel revenues and share the success of the content. Hazem had been the CEO of Predata, which was sold in July of 2021 to FiscalNote. He was also the CEO and co-founder of OptionsCity, which today is part of Exegy.

William McNeill is starting a new position as head of operations at Spartak Trading LLC. Previously, he was vice president of derivatives development at Citadel Securities and was chief of operations and compliance officer at Integral Technology LLC before that.

Ted Sturiale is starting a new position as chief revenue officer at N5 Technologies, Inc.

I have a correction. Bruce Savage’s grandfather and Jeremy Grant’s grandmother were the siblings.

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


Exchange Analytics is offering a new 2022 Futures Market Training Course costing $35. The course is designed to help traders avoid a wide range of regulatory and exchange violations, including spoofing, messaging infractions, wash sales, disruptive trading practices, market manipulation, pre-arranged trading and other transgressions. You can go here for more information and to purchase the course.~SR


Otto Nageli – The History of Financial Futures – Part One – John Lothian News

John Lothian News interviewed longtime derivatives industry executive Otto Nageli for The History of Financial Futures video series. This is part one.

Watch the video »


Otto Nageli – The History of Financial Futures – Part Two – John Lothian News

John Lothian News interviewed longtime derivatives industry executive Otto Nageli for The History of Financial Futures video series. This is part two.

Watch the video »
Explainer-SEC eyes Wall Street reforms. What is ‘PFOF’?
John McCrank – Reuters
The head of the U.S. Securities and Exchange Commission on Wednesday said the agency may propose the most wide-ranging reforms to the equities market in nearly 20 years. The proposed rules would rein in a practice called payment for order flow (PFOF), which is banned in Canada, the UK, and Australia.

**** I love a good explainer. ~JJL


A Full Return to the Office? Does ‘Never’ Work for You? Employer plans have played out like a game of chicken. Now workers are rebelling outright, and executives are trying everything to make the office worth it.
Emma Goldberg – NY Times
What Barrett Kime’s boss said on the recent video call was straightforward. Could members of his team at NBCUniversal show up on the few days a week that they were actually expected to be in the office? Rebellion ensued. Mr. Kime, a senior creative director, took himself off mute. “I was talking about how it was insane to ask people to come in more often with Covid raging,” he recalled.

****Never play chicken with employees, only three dimensional chess.~JJL


Goodie bag to promote US industry contained ‘Made in China’ gifts
The Guardian
A swag bag dished out by the American chamber of commerce to promote US industry at an international summit wasn’t quite on message – with some gifts bearing the slogan “Made in China”. Delegates and attendees at the Summit of the Americas in Los Angeles this week have been plied with all manner of freebies and samples from various groups wanting to push their agenda.

****It is important to stay on message. ~JJL


Thursday’s Top Three
Our top clicked item Thursday was the picture John took of Pat Kenny, the Most Interesting Man in the World (of Futures), being awarded for winning the Kilt Challenge at the IDX gala for Futures For Kids, after raising more than $40k for the charity. Second was Lummis, Gillibrand Introduce Legislation for Digital Assets, from Traders Magazine. And third was our MarketsWiki page for Patrick Young


MarketsWiki Stats
26,851 pages; 238,760 edits
MarketsWiki Statistics


Lead Stories

The LME debacle raises serious questions for the City of London; This episode threatens to undermine the Square Mile’s claim to ensure a level playing field
Gillian Tett – FT
A decade ago, Paul Tucker, then deputy governor of the Bank of England, issued an impassioned appeal to financiers and his fellow regulators. He wanted them to wake up to the dangers around the clearing houses that underpin exchanges. After all, he noted, three clearing institutions had failed in living memory: two, in 1974 and 1983, because of gyrations in commodity prices; and one, in 1987, when equity prices caused a Hong Kong clearing house to fail, with “devastating” market impacts. “This [Hong Kong] episode warrants more study than it has received,” Tucker noted, lamenting the complacency of the financial sector. “Had it been London, Chicago or New York, it would have entered the folklore of policy memory.”

Philippines’ Bourse Shuts Trading Floor as Punters Favor Digital
Ian C Sayson – Bloomberg
The Philippine Stock Exchange Inc will permanently close its trading floor after the pandemic hastened its migration to “floorless trading” amid a digital shift that’s changing the operations of capital markets. The ruckus of a trading floor at one of Asia’s oldest bourses, which goes back to 1927, will give way to a more “efficient and responsive” set-up to meet the “needs of the investing public,” bourse President Ramon Monzon said in a statement.

Ending Payment for Order Flow: Easier Said Than Done; The SEC might soon change retail trading, but how it plays out for brokers could be complex
Telis Demos – WSJ
Is it possible to ban payment for order flow without banning payment for order flow? That is the question that has been raised by a series of changes to stock-market rules laid out by Securities and Exchange Commission Chairman Gary Gensler this week. None of them are a straightforward prohibition of payment for order flow, or PFOF, which is the hotly-debated practice by retail brokerages like Robinhood Markets HOOD -4.18% or Charles Schwab SCHW -2.25% of sending customer orders to market-making firms such as Citadel Securities or Virtu Financial VIRT 0.76% and collecting payments from those firms in return.

The CFTC and the SEC to Battle It Out to Regulate Digital Currencies
Bob Mason – FX Empire
The Securities and Exchange Commission has been particularly vocal about the digital currency space, with several platforms paying hefty fines. Regulatory uncertainty has lingered despite the SEC’s successes in out-of-court settlements. Until now, the Howey Test remains the fallback for the SEC to claim jurisdiction on digital assets, including XRP. Such has been the uncertainty that even the SEC’s case against Ripple Lab has been ongoing since December 2020.

The world must brace itself for a further surge in oil prices; Outlook for production is bleak with Russian shortfalls hard to replace
David Sheppard – FT
JPMorgan’s chief executive Jamie Dimon thinks oil prices could surge to $175 a barrel later this year. Jeremy Weir, the head of commodity trader Trafigura, says oil could go “parabolic”. Energy Aspects, a consultancy with clients stretching from hedge funds to state energy companies, says we are facing “perhaps the most bullish oil market there ever has been”. Goldman Sachs thinks oil prices will “average” $140 a barrel in the third quarter of this year.

As Gas Prices Near $5 a Gallon, Record Fuel Costs Upend Businesses, U.S. Economy; High energy costs alter buying patterns across airline, auto, food and other industries
Collin Eaton, David Harrison and Doug Cameron – WSJ
As U.S. gasoline prices approach a record average of $5 a gallon, fuel costs are rippling through almost every corner of business, with signs emerging that the rising expenses are beginning to alter consumer behavior. The price of regular gasoline averaged about $4.986 on Friday, up around 22 ½ cents from the prior week and nearly $2-a-gallon higher compared with this time last year, according to AAA. The steady climb in prices comes as the U.S. economy’s recovery from the pandemic has let loose pent-up demand for travel, by road and by air, and with many returning to work commutes.

SEC’s Revamp of Stock-Trading Rules Faces Criticism From Wall Street; Agency considers requiring brokerages to route individual investors’ stock orders into auctions
Paul Kiernan and Alexander Osipovich – WSJ
Brokerages and trading firms pushed back forcefully against Securities and Exchange Commission Chairman Gary Gensler’s proposed changes to U.S. stock-trading rules, saying the market is functioning well for ordinary investors. Mr. Gensler outlined the potential changes Wednesday and was greeted with skepticism from an array of financial-industry executives who said the SEC’s far-reaching plans are unnecessary. A top executive with Robinhood Markets Inc. argued that individual investors are winners in the current system, enjoying benefits such as zero-commission trades.

SEC floats rules to bring ‘full and fair competition’ to U.S. stock market
Brian Cheung – Yahoo!Finance
The Securities and Exchange Commission announced Wednesday that it wants to shake up the way orders to buy and sell stocks are handled after being placed on popular platforms like Robinhood (HOOD) and TD Ameritrade. Following a review of the meme stock frenzy that boosted shares of Gamestop (GME) in early 2021, the SEC now says it wants to implement reforms that would make retail trading more “fair and competitive.” One reform under consideration: requiring the wholesalers that actually execute trades, like Citadel Securities and Virtu Financial (VIRT), to compete with each other on an order-by-order basis. “All the folks on the Reddit posts, those are our clients. And they’re not getting the full benefit of full and fair competition when they put a retail market order in right now,” SEC Chair Gary Gensler told reporters Wednesday.

State Street denies interest in buying Credit Suisse
Brenna Hughes Neghaiwi – Reuters
State Street Corp (STT.N) said on Thursday it is not looking to buy Credit Suisse (CSGN.S), in its first outright dismissal of a Wednesday morning report that it was seeking a deal. U.S.-listed shares in Credit Suisse were last trading down 3.7% after falling as much as 8.4% following reports of the U.S. company’s denial. State Street shares were last up 0.2% after spiking as much as 3% higher. Credit Suisse shares had spiked higher on Wednesday afternoon and State Street shares lost ground, with traders citing a report by Swiss financial news blog Inside Paradeplatz that U.S-based State Street was planning a takeover bid for the troubled lender, though many in the industry expressed doubts about the claim.

Deloitte Explores Splitting Auditing, Consulting Arms, Following Ernst & Young; Deloitte would be second Big Four firm to divide the businesses, potentially spinning off consulting arm
Jean Eaglesham and Corrie Driebusch – WSJ
Deloitte is exploring a plan to split its global audit and consulting practices, following an effort by fellow Big Four accounting firm Ernst & Young to potentially spin off its consulting arm, according to people familiar with the matter. The moves would mark the biggest shake-up in the accounting industry in decades, handing windfalls to tens of thousands of the firms’ partners and creating two new consulting giants and two stripped-down auditing firms. Deloitte reached out to investment bankers at Goldman Sachs Group Inc. after news broke of rival EY’s potential world-wide split, the people familiar with the matter said. Goldman and JPMorgan Chase & Co. are advising EY on its possible restructuring, the people said.

Credit Suisse CEO Calls Takeover Talk ‘Really Stupid’; Thomas Gottstein is under pressure from investors to show the bank has a credible strategy after scandals, financial losses
Margot Patrick – WSJ
Credit Suisse CS -5.09% Group AG Chief Executive Thomas Gottstein said a report that the bank could be taken over by State Street Corp. STT -1.30% was “really stupid” and that the lender can repair itself. The CEO is under pressure from investors to show that the bank has a credible strategy after a spate of scandals and financial losses. On Wednesday, Credit Suisse warned it is likely to report its third consecutive quarterly loss because of a sharp fall in investment-banking deals such as companies raising new stock and bonds. It said it would speed up cost-cutting plans.

EU Wheat Harvest Is Under Threat, Further Straining Global Supplies Stressed by Ukraine; Closely watched grains report cites dry weather in Europe for weaker-than-expected forecast
Yusuf Khan – WSJ
The European Union faces a disappointing wheat harvest this year, dimming hopes that one of the world’s biggest producers might help fill a widening global grain gap left by the war in Ukraine. Ukraine is one of the world’s biggest wheat producers and exporters, and Russia’s invasion has sent forecasts of how much grain the country can produce and export tumbling. That has roiled grains markets, threatened food shortages in swaths of the developing world and boosted prices sharply for food staples in rich countries.

Responsible Financial Innovation Act: A Proposed Digital Asset Regulation With Implications for Products and Regulatory Frameworks
Austin L. Stanton, Andrew J. Sioson, David E. Teitelbaum, Michael E. Borden, Lilya Tessler – Sidley
On June 7, 2022, Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., introduced the Responsible Financial Innovation Act (RFIA), the first comprehensive legislative proposal to create a regulatory framework for digital assets in the United States. Specifically, the RFIA consists of 70 pages of proposed legislation that touches on tax, securities, commodities, consumer protection, payments, and banking laws and provides guidance on how federal agencies should interact with one another when considering digital assets. Further, the RFIA provides rules that allow for the issuance of payment stablecoins.

Ukraine Invasion

Putin says Russia will not mothball oil wells despite West’s import ban
Russian President Vladimir Putin said on Thursday that Russian companies will not block off their oil wells despite the West’s efforts to lessen its dependence on energy supplies from Moscow. The United States introduced its embargo on Russian imports in March just days after Moscow sent its troops into Ukraine, while the European Union agreed last month in principle to gradually cut 90% of its oil imports from Russia by the end of this year.

US general says Elon Musk’s Starlink has ‘totally destroyed Putin’s information campaign’
Grace Kay – Insider
Starlink, the satellite-internet service from SpaceX, has been crucial part of Ukraine’s defense against Russia, according to a US official and Ukrainian military members. From sending coordinates for artillery strikes against Russia to broadcasting Ukraine President Volodymyr Zelenskyy’s speeches across the world, US Brigadier General Steven Butow told Politico that SpaceX’s Starlink services have been indispensable to the Ukrainian military. The general has worked closely with SpaceX as the director of the space portfolio at the defense innovation unit. “The strategic impact is, it totally destroyed [Vladimir] Putin’s information campaign,” Butow told the publication. “He never, to this day, has been able to silence Zelenskyy.”

Russia says West risks ‘direct military clash’ over cyber attacks
Russia warned the West on Thursday that cyber attacks against its infrastructure risked leading to direct military confrontation, and that attempts to challenge Moscow in the cyber sphere would be met with targeted countermeasures. The warning comes after Russia’s housing ministry website appeared to be hacked over the weekend, with an internet search for the site leading to a “Glory to Ukraine” sign in Ukrainian. In a statement, the foreign ministry said that Russia’s critical infrastructure and state institutions were being hit by cyberattacks and pointed to figures in the United States and Ukraine as being responsible. “Rest assured, Russia will not leave aggressive actions unanswered,” it said. “All our steps will be measured, targeted, in accordance with our legislation and international law.”

Europe Has a $450 Billion Weapon Against Putin It’s Not Using; In a war largely waged via energy prices, the continent is unilaterally disarming.
Mark Gongloff – Bloomberg
Imagine you’re defending your home against a zombie invasion and have several Zombie-Removing Robots in your possession. The robots are noisy and leak poison all over the place, and sometimes they knock over the TV. At the same time, they are very effective at removing zombies. Do you:

Exchanges, OTC and Clearing

DTCC Unveils Technology Resilience Principles
Shanny Basar – MarketsMedia
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, outlined enhanced resilience measures that financial firms should consider adopting to ensure the continued safety of the financial markets amid an increasingly complex technology landscape.

The IBEX® Gender Equality Index adds 17 new companies and already comprises 45 constituents
The first index to measure Spanish listed companies’ gender equality outperforms the IBEX 35® by four percentage points so far this year

Decrease of the Minimum Price Increment for all of the E-mini S&P
Select Sector Index Futures and the Dow Jones US Real Estate Index
Futures for Transactions Executed on CME ClearPort
CME Group
Effective Sunday, June 26, 2022, for trade date Monday, June 27, 2022, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. and The Board of Trade of the City of Chicago Inc. (collectively, the “Exchanges”) will decrease the minimum price increment for all of the Emini S&P 500 Select Sector Stock Index Futures and the Dow Jones US Real Estate Index Futures contracts (the “Contracts”) for transactions conducted via CME ClearPort as more specifically described

Miami International Holdings and Lukka Enter into Strategic Alliance to Jointly Develop and Launch Crypto Derivatives
Miami International Holdings, Inc. (MIH), owner of Miami International Securities Exchange, LLC (MIAX®), MIAX PEARL, LLC (MIAX Pearl®), MIAX Emerald, LLC (MIAX Emerald®), Minneapolis Grain Exchange, LLC (MGEXTM), and Bermuda Stock Exchange (BSXTM), and Lukka Inc. (Lukka™) announced today that they have entered into a strategic alliance to jointly develop and launch a suite of proprietary crypto derivatives on MIH exchange platforms based on Lukka-supplied crypto data

TAIFEX to Launch Semiconductor & Shipping and Transportation Sector Futures, Facilitating Trading in Strategic Industries
The Taiwan Futures Exchange (TAIFEX) is set to launch Taiwan Semiconductor 30
Futures (SOF) and Shipping and Transportation Sector Futures (SHF) on 27 June 2022
in response to heightened market demand for industry-specific risk management tools
and further expand its sector derivatives offerings.

June Newsletter
News and Events

CME Globex Notices: June 6, 2022
CME Group
Topics in this issue include: Critical System Updates; Product Launches; Product Changes.

CME STP Notices: June 9, 2022
CME Group
Topics in this issue include:
New – Hybrid Transfer support in CME STP- August 28 NEW
New – Hybrid Transfer support in CME STP FIX – August 28 NEW

ETD Revolution: Building in Flexibility for the Next Generation of ETD Products
First published on DerivSource the 9th June 2022.
In a DerivSource commentary, Markus Schiller, project lead and Thomas Winter, head of Trading Design, discuss how Eurex is revolutionising its ETD infrastructure to build a scalable and future-proof platform capable of supporting the trading needs of today and tomorrow. They explore changes that enable initiatives that directly benefit both buy and sell-side market participants: better basis trading, delta neutral volatility strategies in single stock options and an improved setup for weekly options.

Euronext announces June 2022 quarterly review results of the CAC 40 ESG®
Euronext today announced the results of the quarterly review for the CAC 40 ESG® index, which will be implemented after markets close on Friday 17 June 2022 and will be effective from Monday 20 June 2022.

Euronext announces June 2022 quarterly review results of the BEL® Family
Euronext today announced the results of the quarterly review for the BEL 20®, BEL Mid® and BEL Small® indices, which will be implemented after markets close on Friday 17 June 2022 and will be effective from Monday 20 June 2022.

Euronext announces quarterly review results of the PSI®
Euronext today announced the results of the quarterly review for the PSI®, which will be implemented after markets close on Friday 17 June 2022 and will be effective from Monday 20 June 2022.

Euronext announces June 2022 quarterly review results of the CAC® Family
Euronext today announced the results of the quarterly review for the CAC® family indices, which will be implemented after markets close on Friday 17 June 2022 and will be effective from Monday 20 June 2022.

Euronext announces June 2022 quarterly review results of the ISEQ® Family
Euronext today announced the results of the quarterly review for the ISEQ 20®, ISEQ 20® Capped and ISEQ® Small, which will be implemented after markets close on Friday 17 June 2022 and will be effective from Monday 20 June 2022.

Euronext announces June 2022 quarterly review results of the CAC 40 ESG®
Euronext today announced the results of the quarterly review for the CAC 40 ESG® index, which will be implemented after markets close on Friday 17 June 2022 and will be effective from Monday 20 June 2022.

Cash Liquidity Provider Incentive Program for Currency Derivative Products in 2022
Hong Kong Futures Exchange Limited (“the Exchange” or “HKFE”) is pleased to announce the Cash Liquidity Provider Incentive (“Cash LP”) Program for trading USD/CNH Futures, Mini USD/CNH Futures, USD/CNH Options and INR/USD Futures contracts from 4 July 2022 (T session) to 30 December 2022 (T session)1

Fast Interface for New Issuance (FINI): API Technical Workshop
Hong Kong Exchanges and Clearing Limited (HKEX) commits working in partnership with its
stakeholders to build the Marketplace of the Future. As the development of FINI progresses,
HKEX has published the FINI implementation plan and a several of technical guides on the FINI
Webpage in May 2022 to ensure market readiness and a smooth transition for all IPO market

Change of Central Contract Month for 10-year JGB Futures Trading
Concerning 10-year JGB Futures, since the trading volume of the September 2022 contract (second contract month) surpassed that of the June 2022 contract (nearest contract month) in today’s auction market, the central contract month pertaining to temporary trading halt (Circuit Breaker rule) is as follows from June 13, 2022 (trading day).

Please be Aware of Suspicious Emails Claiming to be from Tokyo Commodity Exchange
We are aware of the circulation of suspicious emails pretending to be from a Tokyo Commodity Exchange employee or department. These emails are not related to JPX Group in any way.

Special Constituents Change in S&P/KRX Exchange Index
There will be special constituents change in S&P/KRX Exchange Index effective from June 20th, 2022.

Collateral Liquidity 22 035 LME Clear Haircut Circular June 2022
LME Clear Members are advised that new margin collateral haircuts have been set

Moscow Exchange acquired a stake in the Potok investment platform
The Moscow Exchange, represented by its subsidiary MB Innovations, has become a shareholder of the Potok investment platform . As part of the deal, the Moscow Exchange acquired a minority stake in Potok.Holding LLC, the holding company that owns the Potok platform.

Cessation of
Alternative measures and reporting delays
In March 2020, given the possible constraints associated with the pandemic, the Division published guidance to Participants relating to certain regulatory requirements (Circular 043-20) and granting additional reporting delays (Circular 049-20). The Division has since extended the period for which these regulatory requirements and additional reporting delays applied.

Nasdaq Announces End-of-Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date May 31, 2022
At the end of the settlement date of May 31, 2022, short interest in 3,405 Nasdaq Global MarketSM securities totaled 10,398,950,775 shares compared with 10,514,410,818 shares in 3,405 Global Market issues reported for the prior settlement date of May 13, 2022. The end-of-May short interest represent 2.70 days average daily Nasdaq Global Market share volume for the reporting period, compared with 2.49 days for the prior reporting period.

SGX Group reports market statistics for May 2022
Derivatives volume rises amid optimism over China recovery
Securities daily average value climbs
Singapore Exchange (SGX Group) today released its market statistics for May 2022. Derivatives volume rose amid broad optimism over China’s economic recovery alongside higher volatility in global markets.

TMX Group Welcomes the Global Mining Community Back to the PDAC Convention
TMX Group
TMX Group, the global exchange leader in mining, is pleased to welcome back delegates to Toronto for the 2022 Prospectors and Developers Association of Canada’s (PDAC) Annual Convention, taking place from June 13-15 and online from June 28-29. Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) are home to almost half of the world’s public mining companies, and will mark this year’s return to in-person events with a series of market opening and closing ceremonies throughout the week, featuring delegations from the world’s most prominent mining jurisdictions.


China Weighs Reviving Jack Ma’s Ant IPO as Crackdown Eases; Beijing is close to issuing license that clears path for IPO; Securities watchdog has set up team to review listing plan
Bloomberg News
Chinese financial regulators have started early stage discussions on a potential revival of Ant Group Co.’s initial public offering, according to people familiar with the matter, one of the clearest signs yet that authorities are dialing back a crackdown on the tech industry that began with the scuttling of the world’s biggest listing almost two years ago.

China Regulator Says Not Conducting Work on Ant IPO Revival; CSRC says it backs listings of qualified platform firms; Regulators in early stage talks on Ant, people familiar say
Lulu Yilun Chen – Bloomberg
China’s securities watchdog said it’s not conducting a review and research work on an Ant Group Co. initial public offering. The China Securities Regulatory Commission issued a statement on Thursday in response to a Bloomberg report that regulators are holding early stage discussions on a revival of the fintech company’s listing. The CSRC added that it supports platform companies that meet qualifications to list in mainland China and overseas. Bloomberg reported earlier that Chinese financial regulators have started early stage discussions on a potential revival of Ant’s listing, citing people familiar with the matter.

Carbon Bank launches the future of payments for Africa with Zero Buy Now Pay Later (BNPL)
African Business
Carbon (, a credit led Pan-African digital bank today released Carbon Zero: ( , a buy now, pay later web app which helps customers spread the cost of purchases into interest-free instalments, in-store or online. Since its inception in late 2021, Carbon Zero has generated ?2.3 billion in requests from 41,000 customers who have applied for a spending limit.

Fintechs delay IPO plans, focus on profitability amid recession fears
Ryan Browne – CNBC
Financial technology companies are putting IPO plans on hold and cutting expenses as fears of an impending recession cause a shift in how investors view the market.
At the Money 20/20 conference in Amsterdam, bosses of major fintech players sounded the alarm about the impact of a deteriorating macroeconomic climate on fundraising and valuations.


China is a threat to future of the internet and could force a ‘moment of reckoning’, UK spy chief says; Deputy director of strategy at GCHQ warns West is facing ‘moment of reckoning’
Victoria Allen – Daily Mail
One of the UK’s spy chiefs said yesterday that China was threatening the future of the internet and the West was facing a ‘moment of reckoning’. The deputy director of strategy at GCHQ, who was named only as Ann S, told Cheltenham Science Festival: ‘We in the West have been fortunate that a lot of the technology which has driven the internet has been informed by Western liberal values, democratic values, but that is not going to be the picture going forward.

Job cuts hit cybersecurity firms despite surging growth from attacks
Ari Levy and Jordan Novet – CNBC
Nothing has lowered Cybereason’s expectations for growth. Rather, the continuing rise in ransomware attacks has forced its clients to bolster spending on security systems, putting the security software company ahead of schedule when it comes to revenue.
But Cybereason is cutting costs anyway, confirming last week that it’s laying off 10% of its workforce, or about 100 employees. The reductions follow the dramatic swing in the economy this year and the beating that software stocks have taken on the public market.

Winning Cybersecurity Stocks From Q1 Earnings
Beth Kindig – Forbes
The market has indiscriminately penalized tech stocks across the board and cybersecurity stocks are simply caught in the cross fire. Q1 earnings proved that cybersecurity stocks are insulated from supply chain issues and remain a number one priority across corporate budgets. Specifically, cybersecurity-related companies reported top line and bottom line beats plus a handful raised guidance while consumer-related tech and less cash efficient cloud verticals lowered or missed guidance this past quarter.

Rising cybersecurity risks of remote work drive banks to try new tech
Carter Pape – American Banker
Bank security technology teams have grown more worried about the threat of data leakage as they respond to increasingly sophisticated cyberattacks against their remote employees, and they’re stepping up their responses to these threats.
In a recent survey conducted by the CyberRisk Alliance, more than a third of the 1,100 cybersecurity and IT professional respondents said “attack through remote worker connections” was the cyber threat they were most concerned about for the next 12 months. This was preceded only by data leakage (49%) and ransomware (39%).

At the RSA Conference, Jobs Still Key to The Cybersecurity Crisis
R. Scott Raynovich – Forbes
This week at the RSA Security conference in San Francisco, an estimated 20,000 professionals came to survey the cybersecurity landscape. The irony is that more professionals are needed to plug the gaps in the cybersecurity labor crisis.
As attack vectors, threats, and data infiltration hit new highs, the cybersecurity industry is struggling with an ongoing job crisis, lacking skilled workers to fill vacancies – with an estimated 2.7 million jobs unfilled, according to the (ISC)² Cybersecurity Workforce Study.

Cybersecurity names top driver of legal disputes
Madeline Lauver – Security Magazine
A survey of over 250 U.S. general counsel and litigation leaders found that cybersecurity and data protection are likely to become top drivers of legal disputes in 2022 and beyond.


Yahoo U: What are stablecoins?
Brad Smith – Yahoo!Finance
In a cryptocurrency world dominated by price swings, some risk-averse investors seek a digital asset with more stability. Enter the stablecoin, a type of token that is designed to carry a fixed value. Stablecoins are intended to be — and largely have been — less susceptible to volatility because they are backed by another asset. The fixed value, in theory, is a ballast against dramatic day-to-day fluctuations like those seen in other cryptos like bitcoin (BTC-USD) and ethereum (ETH-USD).

Expensive DeFi Hacks Are the Price of Doing Business in Crypto; Attacks on decentralized finance are increasingly sophisticated — and threaten to send investors packing.
Victoria Vergolina – Bloomberg
In March of 2022, hackers stole about $600 million from a crypto network. It was one of the biggest exploits of this asset class to date, and left many investors shaken. Can a decentralized financial system work if investors get spooked when significant assets are lost? This episode features a roundtable discussion with Bloomberg reporter Olga Kharif and Bloomberg opinion columnist Parmy Olson about the scope and the effect these attacks are having on the decentralized financial marketplace.

Recruits From Some of Wall Street’s Biggest Banks; Coinbase CEO Brian Armstrong at the Company’s Event In India
Misyrlena Egkolfopoulou – Bloomberg
Individuals from at least 10 of the biggest financial firms left Wall Street to join Coinbase Global Inc. only to have the company rescind their employment offers. Goldman Sachs Group Inc., Morgan Stanley, BlackRock Inc., Wells Fargo & Co. and Citigroup Inc. were among the firms that people departed to join Coinbase, according to a talent directory posted by the company. They’re part of a group who last week received an email from the largest US cryptocurrency exchange rescinding offers and announcing a freeze on hiring for the “foreseeable future.”

Huobi Global unveils blockchain ecosystem investment arm Ivy Blocks to spur industry development
Huobi Global
Huobi Global, one of the world’s leading digital asset exchanges, today announced the launch of Ivy Blocks, a new and exciting DeFi and web 3.0 blockchain ecosystem investment arm. Ivy Blocks will focus on identifying and investing in promising blockchain projects to help unlock their growth potential, serving to boost innovation and development in the DeFi and web 3.0 world. With its multi-billion dollar war chest, Ivy Blocks will be well-placed to take advantage of unique opportunities in cryptocurrency markets globally.


Yellen Says Crypto Is ‘Very Risky’ Option for Retirement Savers; Treasury chief says Congress could act to limit options; Authority would be based on tax advantages for saving plans
Christopher Condon – Bloomberg
US Treasury Secretary Janet Yellen said that crytocurrency assets are a “very risky” choice to include in the retirement plans of average savers, and that it would be reasonable for Congress to address the danger. “It’s not something that I would recommend to most people who are saving for their retirement,” Yellen said Thursday in Washington at an event organized by the New York Times. “To me it’s very risky investment.”

Jan. 6 Committee Lays Out Case Against Donald Trump in First Public Hearing; Panel presents witnesses, video clips and previously unseen footage in bid to connect dots to the former president
Scott Patterson – WSJ
The House select committee investigating the Jan. 6, 2021, attack on the Capitol held a prime-time session Thursday evening aimed at convincing a divided nation that former President Donald Trump’s claims of a stolen election incited his followers to try to interrupt the peaceful transfer of power.

How a D.C. Bureaucrat Amassed Power Over Businesses, Banks and Consumers; Rohit Chopra nominally heads only the Consumer Financial Protection Bureau but has gained substantial clout at the FDIC and FTC as well, embracing tactics some other policy makers view as out of bounds
Ryan Tracy and Andrew Ackerman – WSJ
One of America’s most powerful regulators of business and finance has, at first glance, a relatively small job. Rohit Chopra’s title is director of the Consumer Financial Protection Bureau, which regulates consumer finance. From that perch, he has built substantial sway at the Federal Deposit Insurance Corp., which oversees about 5,000 banks, and the Federal Trade Commission, the antitrust watchdog.

Regulate stablecoins. Please! It is time for regulators to get creative and use their current powers to act
Sheila Bair – FT
Everything old is new again and there is nothing new about a financial venture that tells investors something is a safe bet when it is not. So it was with last month’s all-too-predictable meltdown in terra, a so-called stablecoin cryptocurrency that issuers had promised would maintain a value pegged to the US dollar but backed that promise with little more than an algorithmic wing and a prayer.

Plans to curb corporate crime put forward to UK government; Law Commission’s suggestions include widening scope for attributing criminal liability
Jane Croft – FT
Proposals to overhaul the law to make it easier to prosecute companies and hold them to account for committing crimes have been put forward to the UK government by the independent agency that reviews legislation. The Law Commission submitted on Friday several possible options to reform the laws governing corporate criminal liability in England and Wales, including widening the scope for attributing criminal liability.

City economist picked to be lord mayor of London in 2023; Michael Mainelli chosen by the City of London’s Court of Aldermen ahead of Alison Gowman
Daniel Thomas – FT
The City has picked Michael Mainelli, an economist and former accountant, to become lord mayor of London in 2023 following a secret ballot held by a group of grandees of the Square Mile. The City of London Corporation’s Court of Aldermen has voted to elect Mainelli to the post, according to people familiar with the situation, which comes with a long list of ceremonial duties in welcoming overseas visitors to the UK and promoting the City around the world.

Britain under Boris Johnson has abandoned ideals of political leadership; The prime minister has declared himself exempt from ethical norms but without any sense of a wider mission
Jesse Norman – FT
On Monday morning I found myself in the very distressing position of publishing a letter of no confidence in the prime minister, Boris Johnson, a man I have known and greatly liked for more than 40 years. My objections are not restricted to the recent scandals of partygate, but relate to a much wider range of serious concerns including policy, approach to government and treatment of the British constitution. All are contrary to a decent, proper conservatism.


U.S. SEC opens probe against Ericsson over 2019 Iraq bribery report
Supantha Mukherjee – Reuters
Ericsson said on Thursday that the U.S. securities regulator has opened an investigation concerning the matters described in the company’s 2019 Iraq investigation report. The Swedish telecom equipment maker said it was fully cooperating with the United States Securities and Exchange Commission (SEC) and it was too early to determine or predict the outcome of the investigation. Ericsson disclosed in February that an internal investigation had found it may have made payments to the Islamic State militant group in Iraq – misconduct it said “started at least back in 2011.”

Business isn’t waiting for regulations before investing in crypto
Jennifer Schonberger – Yahoo!Finance
Big business isn’t waiting on Washington to regulate crypto. They’re already figuring out how to use crypto to improve operations — all within current laws. “They’re saying how do we do this in bounds?” Rob Massey, partner and global tax leader at Deloitte & Touche, which advises businesses on how to comply with regulations, told Yahoo Finance. “There are demands coming from customers; the business wants to move forward, let’s figure it out…They want to do this now.” Their efforts come as Deloitte execs and their clients closely watch the outcome of President Joe Biden’s executive order on regulating crypto, the bipartisan proposal introduced this week by Sens. Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY), and the various agencies’ reports on crypto that are due out this fall.

SEC Investigating UST Stablecoin Blowup in Fresh Threat to Terra; Probe looks into marketing of token also known as TerraUSD; Last month’s implosion among biggest busts in crypto history
Matt Robinson – Bloomberg
The US Securities and Exchange Commission is investigating whether the marketing of the TerraUSD stablecoin before it crashed last month violated federal investor-protection regulations, according to a person familiar with the matter. SEC enforcement attorneys are looking into whether Terraform Labs, the firm behind the coin also known as UST, broke rules for securities and investment products, said the person who asked not to be named discussing the confidential probe. The stablecoin was supposed to maintain a 1-to-1 peg to the US dollar through an algorithm and trading in a related token called Luna.

CohnReznick to Pay $1.9 million in SEC Settlement Over Audit Issues; The regulator accused the audit and advisory firm of improper conduct related to work for collapsed crypto company Longfin
Richard Vanderford- WSJ
CohnReznick LLP has agreed to pay $1.9 million to resolve Securities and Exchange Commission charges accusing the audit and advisory firm of improper professional conduct in connection with its audit of Longfin Corp., a cryptocurrency company accused of fraud by the regulator.

U.K. to Embrace Stricter Standards Around Sanctions Enforcement; The country’s sanctions enforcement agency no longer will have to prove a company knew or should have known it was in breach of sanctions
Dylan Tokar – WSJ
The U.K. is set to begin stricter enforcement of the country’s economic sanctions measures next week following legislation passed in the wake of Russia’s invasion of Ukraine. Starting June 15, the U.K.’s Office of Financial Sanctions Implementation won’t have to prove that companies or individuals who violate the country’s sanctions measures knew or should have known they were violating the rules.

Speech: Remarks Before the Investor Advisory Committee
SEC – Chair Gary Gensler
Thank you for that introduction, Christopher. Good morning. It is great to join the Investor Advisory Committee (IAC) today. As is customary, I’d like to note that my views are my own, and I’m not speaking on behalf of the Commission or Securities and Exchange Commission staff.

Speech: Remarks at Meeting of the SEC Investor Advisory Committee
Commissioner Hester Peirce
Thank you, Christopher [Mirabile] and the other members of the Committee, for once more taking time out of your busy lives to serve American investors through your participation on the Investor Advisory Committee. I want to begin by saying a special “Good morning” to the eight newest members of the IAC, well described by Christopher as “an influx of new talent.” We received hundreds of applications in response to our call for candidates and, having reviewed many of the resumes and statements of interest myself, I can attest to the depth of talent from which we had to choose, and you see that reflected in today’s new members. Welcome. I look forward to working with each of you in the coming years.

Benjamin Heath Cooper pleads guilty to market manipulation
Benjamin Heath Cooper of Brighton-Le-Sands, New South Wales, has pleaded guilty to conspiring to manipulate the price of shares in Quantum Resources Limited.

Cyber safety a company culture matter
ASIC – Greg Yanco, Executive Director, Markets
Listed businesses must be ready to respond when their operations are threatened by online criminals.
Earlier this year, the World Economic Forum released its annual Global Risks Report 2022. Failure of cyber security measures was the number one risk for Australian executives, even before Russia’s invasion of Ukraine and the resultant increase in global instability.

Speech: Innovation & Regulation: Partners in the success of Financial Services
Speech by Jessica Rusu, FCA Chief Data, Information and Intelligence Officer, at Money20/20 Amsterdam.

Court Convicts Former Chief Financial Officer of SGX-listed Company for Insider Trading and Acquiring Benefits from Criminal Conduct
Mr Tan Chee Keong (Mr Tan) was today convicted and sentenced to 3 months and 2 weeks’ imprisonment for insider trading and acquiring benefits from criminal conduct. At the time of the commission of the offence, Mr Tan was the Chief Financial Officer of Broadway Industrial Group Limited (BIGL), a company listed on the Mainboard of the Singapore Exchange1.

SFC proposes amendments to the Securities and Futures Ordinance to strengthen enforcement
The Securities and Futures Commission (SFC) today launched a two-month consultation on proposed enforcement-related amendments to the Securities and Futures Ordinance (SFO) (Note 1) to enable it to take more effective enforcement action.

Caution to Investors against dealing with unregulated platforms offering Algorithmic Trading
It has come to the notice of Securities and Exchange Board of India (SEBI) that many unregulated platforms are offering investors Algorithmic Trading services/facilities to automate their trades. Strategies are being marketed with “claims” of huge return on investment along with “ratings” assigned to the strategies and claims that similar returns would be earned in the future. Investors are cautioned that these platforms are unregulated and thus there is no investor grievance redressal mechanism covering their activities.Investors are therefore cautioned against dealing with such unregulated platforms and cautioned against sharing any sensitive personal details with such platforms.

Investing and Trading

America’s Inequality Problem Just Improved for the First Time in a Generation; The collective wealth of the bottom 50% of households has nearly doubled in two years. Can the fragile gains continue?
Ben Steverman – Bloomberg
So far, 2022 is on quite a roll: war, inflation, market selloffs, recession worries, virus lockdowns in China, and record-breaking consumer pessimism in the US, plus a new book by inequality expert Thomas Piketty spotlighting the unfairness of it all. Amid all the gloom, the most unequal of the world’s leading economies has gotten less so. The poorest half of Americans—the much-discussed but largely powerless US working class—are in the strongest financial position in a generation.

SPAC Fire Sales Stick Investors With Deeply Discounted Buyouts
Bailey Lipschultz – Bloomberg
Investors who piled into SPACs at the height of the industry’s mania with dreams of triple-digit returns are facing a harsh reality: They may get bought out for little more than pennies on the dollar.

Facebook just changed its ticker symbol
Alexandra Garfinkle – Yahoo!Finance
On Thursday, Facebook parent Meta Platforms (FB) officially changed its ticker to “META” to reflect its new focus on the metaverse. It’s a decisive step in the company’s effort to shed traces of its old name. While a number of tech companies have undergone name changes in recent years, Meta’s re-brand was especially notable, not only for the size of the company, but for the contentious circumstances in which it announced it would go from Facebook to Meta Platforms. In October 2021, Facebook announced it would become Meta weeks after whistleblower Frances Haugen’s bombshell allegations hit the news. Haugen, a former product manager at the company, said that Facebook knew the extent to which its platforms were used to spread disinformation and hate, and chose to do nothing, prioritizing its profits.

Trafigura posts record half-year profit as commodities volatility intensifies; One of world’s biggest traders says fallout from Ukraine war has also created strains
David Sheppard and Tom Wilson – FT
Trafigura reported record half-year profits as volatility and disruption in commodity markets, exacerbated by the war in Ukraine, supercharge earnings for the world’s biggest traders. The group’s net profit for the six months to the end of March was $2.7bn, up 27 per cent from last year, with the company trading a record volume of oil and metals, its two key divisions. The results offer the first glimpse of how some of the largest commodity traders have fared as a result of soaring prices and the redrawing of trade flows following Russia’s invasion of Ukraine.

IRS Raises Mileage Rates as Gas Prices Increase; Rare midyear change sets rate for tax purposes at 62.5 cents a mile
Richard Rubin – Bloomberg
The Internal Revenue Service raised the mileage rate used for calculating business tax deductions for vehicle use, making a rare midyear change in response to increasing gasoline prices. The new rate for the final six months of 2022 will be 62.5 cents a mile, up from 58.5 cents a mile, which itself was a 2.5 cent increase from 2021.

Environmental, Social and Corporate Governance

Bond Investors Still Buy Debt From Nations With Lower ESG Scores Than Russia
Greg Ritchie – Bloomberg
Ethical investors aren’t learning the lessons from a forced divestment of Russian assets as they continue to buy the government debt of autocratic nations, according to data provider Verisk Maplecroft. Fifteen countries commonly included in sovereign debt funds have a worse environmental, social and governance (ESG) score than Russia, according to the firm’s ratings. Two of these, Turkey and Egypt, are more heavily weighted in typical portfolios than Russia was.

Fuel Demand Destruction Is Happening at Most Expensive US Spots
Chunzi Xu – Bloomberg
Gasoline demand destruction is happening in parts of the US that are seeing the highest prices at the pump. “In terms of demand destruction…we’re starting to see some erosion in volume in the low single-digits,” said Darren Rebelez, chief executive officer of fuel distributor Casey’s General Stores Inc. in a conference call on Wednesday. Casey’s, which operates mainly in the Midwest, sees a wide gap between the Chicago area, where prices are approaching $6 a gallon and the other end of the spectrum where gasoline costs nearly $2 a gallon less, Rebelez says.

Pipelines unclogged, but Canadian crude now faces U.S. Gulf Coast glut
Nia Williams and Arathy Somasekhar – Reuters
After long being deeply discounted for years because of a lack of pipelines, Canadian heavy crude is finally trading like a “North American” grade, moving in tandem with U.S. sour crudes sold on the Gulf Coast after Enbridge Inc expanded its Line 3 pipeline late last year. Unfortunately for Canadian producers, the Gulf is awash in sour crude thanks to Washington’s largest-ever release from the Strategic Petroleum Reserve (SPR) that will amount to 180 million barrels over a six-month period, in an attempt to tame high fuel prices after Russia’s invasion of Ukraine. Millions of barrels of sour crude are flooding the market from storage caverns in Louisiana and Texas. Heavy grades like Mars and Poseidon at the U.S. Gulf Coast, the world’s largest heavy crude refining center, are languishing.

Massive Antarctica Glaciers Have Melted the Most in at Least 5,500 Years; The Thwaites and Pine Island glaciers have shrunk at an unprecedented rate that is likely irreversible.
Laura Millan Lombrana – Bloomberg
The Thwaites and Pine Island glaciers have experienced unprecedented ice loss over the past 5,500 years, according to new scientific research, suggesting the retreat could be irreversible. The two glaciers, both part of the west Antarctic ice sheet, originated in the mid-Holocene period, roughly 7,000 to 5,000 years ago, and have remained stable until very recently, according to research just published in Nature Geoscience. That part of Antarctica is retreating and thinning quickly, with the two glaciers melting underneath given deep, warm currents.

Wealthiest Green Entrepreneurs Lose $141 Billion as Market Turns; The biggest clean tech tycoons have lost more of their collective net worth than any other group
Danny Lee, Sheryl Tian Tong Lee, and Venus Feng – Bloomberg
Not long ago, demand for renewable energy, electric vehicles and all kinds of greener technologies was creating wealth beyond measure. Now the richest people in green sectors are seeing their billions evaporate. The 15 groups of moguls on Bloomberg’s “Green Billionaires” list, which includes the world’s richest person, Elon Musk, have seen their collective fortunes drop by $141 billion over the past seven months, wiping out roughly one-quarter of their net worth. The 15 biggest tech billionaires, a list that also includes Musk, have by comparison lost 23% of their worth, while the world’s top 500 richest tycoons have lost 14% of their wealth over the same period.

US gas heartland woos foreign buyers as Europe’s energy crisis deepens; Ukraine war sharpens focus on energy security during shale tour led by producer EQT
Myles McCormick – FT
Over the roar of hydraulic fracturing machinery, the boss of America’s biggest natural gas producer weaves through a gaggle of foreign diplomats, sprinkling fine grains of sand into their hands. Kitted out in company-branded hard hat and shirt, Toby Rice, chief executive of EQT, is in sales mode as he glad-hands dignitaries in the Pennsylvania sunshine.


Goldman Executives’ Names to Stay Secret in Gender Pay Case; Judge rejects attempt by former workers to unseal names; Bank says naming executives would violate their privacy
Bob Van Voris – Bloomberg
The names of two Goldman Sachs Group Inc. executives mentioned in years-old internal complaints won’t be made public in one of Wall Street’s biggest gender discrimination lawsuits. US Magistrate Judge Robert Lehrburger Thursday rejected an attempt by a class of former female employees who sued the bank to unseal the identities and other information about one current and one former executive who were named in internal complaints almost two decades ago.

Hedge Funds Maverick, Lone Pine Have Dropped About 30% This Year; Both hedge funds likely stung by the rout in technology stocks; Halvorsen’s Viking slid 9% through May, outperforming peers
Katherine Burton – Bloomberg
Lee Ainslie and Steve Mandel’s hedge funds tumbled by roughly a third this year, joining other Tiger Cubs stung by the slide in technology stocks. Ainslie’s main hedge fund at Maverick Capital dropped 32.5% through May, according to people familiar with the results. Among its largest first-quarter bets were stakes in South Korean e-commerce giant Coupang Inc. and Inc. Both wagers would have been among its biggest losers if the firm continued to hold the stocks through last month.

Tourmaline Partners expands global trading team with two appointments; Based in London and Sydney, incoming traders bring over 25 years’ experience each to the firm, having previously served at BTIG and Vantage Capital Markets, respectively.
Wesley Bray – The Trade
Trading solutions provider Tourmaline Partners has made two key hires in London and Sydney, as part of its expansion of global trading experts. Gareth Pickard joins the firm as senior European equities and derivatives trader, based in London. Meanwhile, James Gleeson comes onboard as a managing director and will focus on business development as well as trading in the APAC region – based in Sydney.

DNB Asset Management names new head of index linked strategies; Incoming executive previously spent almost 13 years collectively at Norges Bank Investment Management, and founded Auka Capital.
Annabel Smith – The Trade
Nordic asset manager DNB Asset Management has appointed a new head of index linked strategies from Norges Bank Investment Management (NBIM), The TRADE can reveal. Eivind Aukrust has joined DNB Asset Management after six and a half years at NBIM, according to an update on his social media.

Wellness Exchange

Pandemic’s origins obscured by lack of Chinese data – WHO panel
Jennifer Rigby – Reuters
The World Health Organization said on Thursday its latest investigation into the origins of COVID-19 was inconclusive, largely because data from China is missing, another blow to its years-long effort to determine how the pandemic began. The report from the WHO expert panel said all available data showed the novel coronavirus that causes COVID-19 probably came from animals, likely bats, a similar conclusion to the U.N. agency’s previous work on the topic in 2021 that followed a trip to China. The missing data, especially from China, where the first cases were reported in December 2019, meant it was not possible to identify exactly how the virus was first transmitted to humans. The findings are likely to add to doubts it will be possible to determine how and where the virus emerged.

Can I Trust My Rapid Covid-19 Test if It Says I’m Negative?; You’ve repeatedly tested negative on rapid tests despite having symptoms and recent exposure. Here’s what to do next.
Sumathi Reddy – WSJ
When my 14-year-old son had a sore throat and congestion recently, I whipped out a Covid-19 rapid antigen test. Negative. The next day I tested him again. Negative. Days later when his friend tested positive for Covid-19 and my son still had cold symptoms, we tested again. Negative again. Could I safely assume he was Covid-19 free? It’s a question many people are asking now as Omicron subvariants circulate alongside colds, allergies and other viruses. With Americans largely returning to prepandemic habits, and precautions such as mask mandates dropped, many people have come to rely on rapid testing to avoid spreading the virus. But with so many people having symptoms and still testing negative, it’s hard to know whether to trust the results. A positive test has ramifications well beyond validating symptoms, potentially keeping you out of work or your children out of school.

UK ‘Plans to Burn’ £4 Billion of Unusable Covid Protective Gear; Watchdog slams ‘shameful’ waste of British taxpayers’ money; Disposal costs are unclear, Public Accounts Committee warns
Emily Ashton – Bloomberg
Boris Johnson’s government spent £4 billion ($5 billion) on unusable personal protective equipment during the pandemic and now “plans to burn significant volumes” of it, Parliament’s spending watchdog found.

It’s Time to Get Biofuels Out of Your Gas Tank; Blending mandates were supposed to help tackle emissions. In practice, plant-derived alternatives are starting to become an impediment.
David Fickling – Bloomberg
The global trade in the cheapest foods is grinding to a halt. In April, Indonesia temporarily banned exports of palm oil, cutting off India from one of its biggest sources of imported nutrition. India, in its turn last month, set a ceiling on exports of sugar, helping to keep more calories in the domestic market. Sugar is now hovering around its highest price in five years, while palm oil and soybean oil are at record levels.


Saudis Cut Oil Flows to China While Meeting Most Asian Requests
Sharon Cho and Debjit Chakraborty – Bloomberg
Saudi Arabia will provide some Chinese buyers with less crude than they asked for next month, while fulfilling requests from many other customers in Asia after OPEC+ pledged to speed up production hikes. Japan, South Korea, Thailand and India will get the oil volumes they had sought, with some even getting extra supplies, according to refinery officials who asked not to be identified as the information is private. State-run marketer Saudi Aramco typically doesn’t provide buyers a reason why volumes are cut.

Expected Xi Visit to Hong Kong Boosts Optimism in City’s Stocks; Hang Seng China index beating all major gauges since mid May; President could endorse Hong Kong in a speech, professor says
Sofia Horta e Costa and Kari Soo Lindberg – Bloomberg
Hong Kong’s stocks are already rebounding at the fastest pace in the world, and a possible visit by Chinese President Xi Jinping in a few weeks may provide even more buying momentum. Signs are growing that Xi will join a July 1 ceremony to swear in new leader John Lee as well as celebrate 25 years of Chinese rule following the handover from Britain in 1997. The South China Morning Post reported this week that Hong Kong is preparing to isolate some 1,000 people involved in the city’s handover anniversary in anticipation of a Xi’s arrival, including Lee and current leader Carrie Lam. A Hong Kong school is asking some students to undergo a week-long hotel quarantine to greet visiting dignitaries.

Japan to tap vast pension fund in drive to create more start-ups; Drive to pump money into early-stage companies is part of prime minister’s ‘new capitalism’ agenda
Antoni Slodkowski and Eri Sugiura – FT
Japan plans to tap the $1.5tn might of the world’s biggest pension fund to build a desperately needed domestic start-up culture after decades of failure by the country’s financial sector. Unveiling the “grand design” of Prime Minister Fumio Kishida’s “new capitalism” agenda, his cabinet this week announced a push for the huge Government Pension Investment Fund to increase funding for start-ups.

US energy envoy asks India to restrain Russian oil purchases
Crude shipments have flowed to Asia as west shuns cargoes in response to Ukraine war
Derek Brower – FT
The Biden administration’s leading international energy adviser has called on India not to go “too far” as it increases imports of discounted Russian crude that has lost buyers in Europe.

Food Export Bans in Asia Prompt Fears of More Protectionism
Mike Ives – NY Times
As Russia’s invasion of Ukraine helped push global agricultural prices to soaring heights, some Asian governments restricted the export of products they viewed as essential to domestic food security.
For Indonesia it was cooking oil. For India, wheat. And for Malaysia, chickens.
The bans have a political logic: Leaders do not want to be blamed for allowing staple commodities to be sold abroad at the expense of low-income consumers at home.
But the bans risk hurting farmers and producers, and one concern is that the current cycle of protectionism could lead

‘Super deductor’ tax break fails to boost UK business investment; FT analysis shows negligible impact on a slump that began after 2016 Brexit referendum
Valentina Romei – FT
When Rishi Sunak launched a consultation last month into replacing the temporary capital spending allowance that runs out next year, the chancellor said he wanted to build on the “momentum” of what he has called the “biggest two-year business tax cut in modern British history.”


Facebook Rethinks News Deals, and Publishers Stand to Lose Millions in Payments; Social-media company pays more than $10 million a year to a handful of news organizations to feature their content on its news tab
Alexandra Bruell and Keach Hagey – WSJ
Meta Platforms Inc.’s Facebook is re-examining its commitment to paying for news, people familiar with the matter said, prompting some news organizations to prepare for a potential revenue shortfall of tens of millions of dollars. The company has paid average annual fees of more than $15 million to the Washington Post, just over $20 million to the New York Times, and more than $10 million to The Wall Street Journal, according to people familiar with the matter. The Journal fee is part of a broader Facebook News deal largely negotiated by parent company Dow Jones & Co., including annual compensation worth more than $20 million, people familiar with the partnership said.

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The Spread

Past JLN Newsletters

Crypto: ‘Blockchain is hype’ – MPs warned

Crypto: ‘Blockchain is hype’ – MPs warned

First Read Hits & Takes John Lothian & JLN Staff Today we have two videos from my coverage of FIA's IDX in London, which I conducted in the Eurex branded lounge area outside The Brewery's doors. The first is with FIA Europe Head Bruce Savage, whom I literally...

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