The Pitfalls of America’s Ant Army of Retail Stock Traders; Justice Department’s Antitrust Division And The Securities And Exchange Commission Sign Historic Memorandum Of Understanding

Jun 23, 2020

First Read

Hits & Takes
By John Lothian & JLN Staff

Acuiti is out with a study that says the Covid-19 crisis increases demand for exchange competition, the FIA published a COVID-19 industry sentiment survey, and the SEC wants to modernize the U.S. equity market structure as presented in a speech by the potential future US Attorney for the Southern District of New York, SEC Chairman Jay Clayton.

A new firm named Exberry has introduced a multi-asset class exchange infrastructure and appointed Magnus Almqvist as head of exchange development. This new exchange system could be a game changer for start-up small crypto exchanges. The system is purported to be robust, scalable and can grow with the organization.

Our good friends at Eventus Systems are holding a webinar titled “Reg NMS II and its Potential Impact on Exchanges, Market Surveillance and Order Routing” on July 1 at 4:15 ET. The webinar will feature the history and outcomes of Reg NMS, equities market structure reform through a surveillance lens, how Reg NMS II could affect locked/crossed markets, Rule 606 and others and finally, early industry reactions and possible paths forward.

The webinar’s speakers include Eventus Systems CEO Travis Schwab and Cboe Global Markets Head of Equities Adam Inzirillo. You can register HERE

Do you have a webinar or event you want publicized? The secret is to ask.

On Friday we are placing the order for “The World Needs Journalists” gray JLN hoodies. If you are interested in purchasing one, please email me.

Don’t miss IDX-V, starting today.

Big Shoulders coffee shop is open in the CBOT Building. A sure sign of the return of civilization is the availability of coffee for sale.

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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Glenn Havlicek: Injecting Transparency Into The World’s Biggest Little Market
JohnLothianNews.com

GLMX Technologies’ CEO talks about trading the $15 trillion repo market, one of the largest short-term credit markets in the world, and why the upcoming changeover from LIBOR to SOFR is such an important issue.

Listen to this podcast »

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Sponsored Content

 

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Exberry Launches Multi-Asset Class Exchange Infrastructure – Following The Appointment Of Magnus Almqvist As Head Of Exchange Development
Exberry
Exberry has today launched its multi-asset class exchange infrastructure designed to enable traditional, alternative and digital asset exchanges to launch, pivot and scale. Exberry’s infrastructure has been specifically developed to help boost exchanges by delivering a blend of exchange and secondary market trading technology and expertise. Built over three years by a team of seasoned exchange technology experts with a proven software engineering heritage, Exberry’s infrastructure delivers exchange capabilities applicable to every asset class and capital markets opportunity.
/bit.ly/2VcDrLQ

*****When I talked to them, I could only think about the book The Innovator’s Dilemma and how this technology could be disruptive.~JJL

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Modernizing U.S. Equity Market Structure
Chairman Jay Clayton, Brett Redfearn – SEC
Chairman Clayton:
Good afternoon and welcome to this SEC-sponsored virtual forum to discuss equity market structure. I want to begin by thanking Deborah Lucas for her kind introduction and Assistant Attorney General Makan Delrahim for giving us his insightful perspective. Promoting competition is a core objective of U.S. antitrust and securities law, and I very much appreciated hearing his insights.
/bit.ly/2CyprWu

*****The only things that will modernize the US equity market structure are big ideas and the will to see them through. I don’t see that here.~JJL

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FIA releases COVID-19 industry sentiment survey
FIA
FIA today released the results of an industry survey to gauge the sentiment of market participants on the impact of the COVID-19 pandemic on the cleared derivatives industry. The results showed that while the industry performed well during recent market volatility, there were several issues that need to be studied and addressed to strengthen the resilience of the system. These include unpredictable changes in margin, clearing operations and trade settlements during stressed market conditions. Survey respondents represented a wide range of industry sectors, including clearing firms, exchanges, CCPs, brokers, principal trading firms, technology vendors, commercial end users and additional service providers.
/bit.ly/3esRtkj

*****Nothing like a pandemic to make us think about things.~JJL

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FTSE Russell Completes Landmark Inclusion Of China A Shares
Mondovisione
FTSE Russell successfully completes phase one of China A Share inclusion into global equity benchmarks; China A Shares now constitute approximately 6% of the FTSE Emerging Index
1,051 large, medium and small-cap China A Shares now included in FTSE Emerging All Cap Index; Landmark move reflects China’s ongoing progress toward market reforms and increased access for global investors
FTSE Russell, the global index, data and analytics provider, has successfully completed the first phase of inclusion of China A Shares into its global equity indexes following the September 2018 reclassification of China A Shares to Secondary Emerging market status. The first phase, which was implemented across four separate tranches beginning in June 2019, added 25% of the investable market cap of 1,051 small, medium, and large cap China A Shares to the FTSE Emerging All Cap Index. This is the first international index provider covering different size segment of companies into the inclusion.
/bit.ly/2Vc1Lxv

*****China made the FTSE Russell cut. Can they stay in the index? We shall see.~JJL

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Monday’s Top Three
Our top story Monday was the Financial Times’ Zero-fee trading helps Citadel Securities cash in on retail boom. Chicago-based Citadel accounts for 40 of every 100 shares traded by individual investors in the US, the article says. Second was CNN’s report on the tragic story, Apparent suicide by 20-year-old Robinhood trader who saw a negative $730,000 balance prompts app to make changes. Third was a repeat from yesterday’s top three, NFA Case #: 20BCC00009, regarding LTG Trading.

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Lead Stories

The Pitfalls of America’s Ant Army of Retail Stock Traders; Asian markets dominated by retail traders tend to be more volatile, pricing is more erratic and fundamentals matter less
Mike Bird – WSJ
After many years of growing dominance by institutions, retail trading is enjoying a renaissance in the U.S. Judging by international comparisons, it is probably better if that proves temporary. The U.S. stands out even among advanced economies for its extremely large institutional-ownership share, according to Organization of Economic Cooperation and Development data, which ran to 80% of the average company at the end of 2017, compared with 11% for the category that includes retail traders.
/on.wsj.com/31bqSUW

Justice Department’s Antitrust Division And The Securities And Exchange Commission Sign Historic Memorandum Of Understanding
Department of Justice
The Department of Justice’s Antitrust Division and the Securities and Exchange Commission have signed an interagency Memorandum of Understanding (“MOU”) to foster cooperation and communication between the agencies with the aim of enhancing competition in the securities industry. Assistant Attorney General Makan Delrahim of the Antitrust Division announced the first-ever MOU between the Antitrust Division and the SEC, which was executed with SEC Chairman Jay Clayton before a discussion on equity market structure hosted by MIT’s Golub Center for Finance and Policy this afternoon.
/bit.ly/2Zftgrp

CME Group and B3 to Jointly Develop New Soybean Futures Contracts Connecting Global Participants to Brazilian Agricultural Markets
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, and B3 S.A., one of the world’s largest financial market infrastructure companies, announced an agreement to jointly develop risk management products for both Brazilian domestic and global market participants. Under the terms of the agreement, CME Group and B3 will work together to launch futures on Brazilian soybeans in Q3 2020, pending regulatory approvals.
/bit.ly/37S6Pfu

SEC, Justice Department to Scrutinize Exchanges’ Market-Data Business; Partnership could provide greater scrutiny of fees charged for data
Dave Michaels and Alexander Osipovich – WSJ
Wall Street’s chief regulator and the nation’s antitrust watchdog agreed to a formal partnership that could result in greater scrutiny of the fees charged by stock exchanges for crucial market data. The Securities and Exchange Commission and the U.S. Justice Department unveiled the memorandum of understanding Monday at an event in Washington. The SEC has recently clashed with exchanges over the fees levied for their most robust data products. Now, the move to involve the Justice Department, with its authority over competitive markets, will beef up the SEC’s ability to examine whether exchanges abuse their quasi-monopoly status to overcharge for data, as a number of big banks, brokerages and trading firms allege.
/on.wsj.com/3doiOTf

Pandemic propels old-school bond traders towards an electronic future
Dhara Ranasinghe, Saikat Chatterjee – Reuters
The mammoth bond market has long been the old-school bastion of the financial world, but the COVID-19 pandemic has cast a light on its future – and it looks electronic. Well, mainly.
/reut.rs/2V80Myc

Why a Rotting Green Bay Boardwalk May Help Solve America’s Jobs Crisis; Some cities and states are looking toward a simple solution to mass unemployment: Hire workers directly.
David McCabe – NY Times
The governor of Pennsylvania wants to hire unemployed workers to help the state track the spread of the coronavirus in the fall. City Council members in Austin, Texas, voted to pay people to help with projects like preparing land for fire season.
/nyti.ms/2YYl3Ys

*****For some reason I read this the first time as Rotting Green Bay Packers.~JJL

Supreme Court Upholds SEC’s Ability to Recover Ill-Gotten Gains From Financial Fraud, With Limits; High court says penalties can’t exceed wrongdoers’ profits, should benefit victims
Dave Michaels and Brent Kendall – WSJ
The Supreme Court upheld the Securities and Exchange Commission’s ability to recover ill-gotten gains from those who commit financial fraud, but said there were limits to how far the government could go.
/on.wsj.com/3hT19Xc

Refinitiv Announces Second Annual Sustainability Report Outlining Progress Towards 2020 Targets; Pledges Ongoing Support for UN Sustainable Development Goals
Refinitiv
Building on its commitment to drive positive change through its data and insight, Refinitiv today announced its second annual sustainability report. The report highlights Refinitiv’s sustainability achievements as a transparent, responsible business and reinforces its commitments to put sustainability at the heart of its product offering and be part of an ecosystem of changemakers.
/refini.tv/2BxtbXE

Refinitiv-LSE Deal Faces EU Antitrust Probe; European Union is concerned that the $15 billion tie-up could provide undue market power
Ben Dummett and Anna Isaac – WSJ
Europe’s antitrust watchdog opened an investigation Monday into London Stock Exchange Group LSE 3.11% PLC’s planned $15 billion deal to acquire financial-data giant Refinitiv Holdings Ltd., cautioning that the proposed deal could undermine competition.
/on.wsj.com/3hTE07i

Brussels refers LSE-Refinitiv deal for full antitrust investigation; Regulators worry a combined group could offer customers preferential data services
Philip Stafford and Javier Espinoza – FT
Brussels has sent the London Stock Exchange Group’s planned $27bn takeover of Refinitiv for an in-depth antitrust investigation, with regulators concerned that a combined company could offer its customers preferential services for critical data used on global markets.
/on.ft.com/2BsuuqR

Retail Trading Surge Drives Newbie Investors to Bet Big on Gaming; New ETF focused on sports betting and gambling has amassed $78 million in assets
Michael Wursthorn – WSJ
Some sports bettors and newbie investors who have turned to the stock market for action in recent months are placing their wagers on a new gambling-themed exchange-traded fund. The Roundhill Sports Betting & iGaming ETF, BETZ -0.32% launched earlier this month, has amassed $77.5 million in assets. Most ETFs take at least three years to hit that mark—and many fail before getting there.
/on.wsj.com/319dXmk

China’s Top Liquor Maker Is Worth More Than Its Biggest Bank; Kweichow Moutai is the most valuable company listed on a mainland Chinese stock exchange
Jacky Wong – WSJ
Hitting the bottle too much during the coronavirus lockdown could be a problem. Investors in this Chinese liquor stock, however, are glowing with health.
/on.wsj.com/31a9HDg

China warned to prepare for being cut off from US dollar payment system as part of sanctions like Russia; Fang Xinghai said that as China mainly relies on the US dollar payment system in international deals, it makes it vulnerable to possible US sanctions; The US imposed sanctions on Russia due to numerous events, including the annexation of Crimea by Russia in 2014
Frank Tang – South China Morning Post
China must prepare for the risks of being cut off from the US dollar payment system in case the United States sanctions Chinese companies and banks, just like Washington did with Russian institutions, a senior Chinese financial regulator said on Monday.
/bit.ly/3i0uoYv

Hong Kong wealth managers can’t wait for new Connect programme, with Singapore ready to pounce on city’s troubles; Cross-border Wealth Management Connect seen boosting Hong Kong fund managers like stock and bond programmes; Recent updates from HKMA suggests programme launch is imminent, sources say
Enoch Yiu – South China Morning Post
Hong Kong money managers are looking forward to Wealth Management Connect in Greater Bay Area as the number of millionaires in mainland China set increases. Photo: Bloomberg
China’s plan to turn the Greater Bay Area into a hub for wealth management products will help turbocharge Hong Kong’s fund industry, giving it an invaluable edge in warding off challenges from Singapore, market players said.
/bit.ly/2V9P9qG

Electric Car Charging Stations Are Finally About to Take Off; With EV sales poised to rebound faster than traditional autos, charge point networks are suddenly an attractive investment.
Laura Millan Lombrana and Rachel Morison – Bloomberg
The electric vehicle sector has been stuck for years with a chicken-and-egg problem. Until there were extensive networks of public charging stations, a critical mass of people would never feel comfortable driving EVs—but until a critical mass of people were driving EVs, there was no sense in investing in extensive networks of public charging stations.
/bloom.bg/2ATfWAR

Funds With $3.7 Trillion Warn Brazil of Deforestation Backlash
Frances Schwartzkopff – Bloomberg
Institutional investors managing about $3.7 trillion in assets want Brazil to abandon a proposal they say will add to deforestation and violate the rights of indigenous groups in the Amazon.
/bloom.bg/3fU3vTR

Robinhood’s stuck-at-home millennial day traders ignore danger signs to push US stock benchmarks to new highs; Half of Robinhood’s new customers this year have said they are first-time investors, according to the company; More than 2 million new accounts opened in the first quarter, exceeding the number of new users at Charles Schwab, TD Ameritrade Holding and E*Trade Financial combined during that period
Bloomberg
Rich hedge fund managers are talking about it. So are not-so-rich millennials. And fast-twitch gamers, and bored sports fans and – in all likelihood – some 15-year-olds you know.
/bit.ly/3er61kd

Robinhood’s sad story, sorry
Chris Skinner’s Blog
I was sitting and thinking that I’ve been a bit negative in my recent posts. I don’t like being negative as I’m an optimist. So I determined that today I must write a cheerful story … whoops! failed. Instead, I woke up to the news that a young man had committed suicide possibly due to a FinTech app. The app is Robin Hood, a visionary start-up in the USA who I have admired from afar. It’s a standout start-up valued at $8.3 billion after a funding round in April 2020, mid-coronavirus crisis, making it one of the most valuable FinTech firms in the world.
/bit.ly/3duAk8m

Conduct risks stalk banks in Libor transition; As replacement rate concerns become more pressing, firms fear Libor lawsuits and regulatory wrath
James Ryder – Risk.net
Lions and tigers and bears, oh my. A terrible trifecta of operational, legal and conduct risks could be lying in wait for unsuspecting banks on the Libor transition road. Financial institutions should prepare themselves for these half-hidden hazards, say op risk experts – or face brutal consequences.
/bit.ly/3erIzDB

ICE appoints new corporate risk officer; Joanne Rowe takes on the corporate risk officer role at ICE as Kevin McClear becomes president of ICE Clear US.
Kiays Khalil – The Trade
The Intercontinental Exchange (ICE) has appointed Joanne Rowe as its new corporate risk officer following Kevin McClear’s promotion to President of ICE Clear US.
/bit.ly/2YqENET

Coronavirus

Kayak’s CEO on How Business Travel May Never Recover; Co-founder Steve Hafner says consumers are at least beginning to think about flying again and restaurants are selling every table they can.
Jason Kelly, Carol A Massar – Bloomberg
As co-founder and CEO of travel search engine Kayak Software Corp., Steve Hafner was on a plane every other day. Covid-19 has grounded him. But he sees some positives.
/bloom.bg/2V9WrKS

The U.S. has hamstrung itself’: How America became the new Italy on coronavirus;While Trump touted America’s reopening and watched infections climb, European leaders maintained strict rules and drove cases down.
Dan Diamond, Sarah Wheaton – Politico
Three months ago, public health officials feared that America would be swamped by Covid-19 like Italy. Today, the U.S. would be lucky to swap its coronavirus crisis for theirs.
/politi.co/2You0er

Pence Warns of Young People Testing Positive as Hot Spots Worsen
Joe Carroll and Jennifer Kay – Bloomberg
‘Unacceptable’ jump in positive tests prompts Texas mask plea; Miami’s mayor delays return of movie theaters and nightclubs
Vice President Mike Pence told governors Monday that government health experts were worried that more young people are testing positive for the coronavirus around the country. Pence’s comments, confirmed by someone who listened to the call, echoed concerns voiced by Texas Governor Greg Abbott, who signaled he may halt or reverse the state’s economic reopening if the Covid-19 contagion continues to expand at what he called an “unacceptable rate.”
/bloom.bg/37QLT8S

Virus Surge Jolts Prospects for World Economy
Enda Curran – Bloomberg
Easing of virus lockdowns had spurred a rebound in activity; But without a vaccine, consumers are set to remain nervousBeijing Outbreak Shows Covid-19’s Insidious Ability to Hide
Bloomberg News
Capital’s cluster may have festered for weeks, official says; Cases show challenge of eradicating virus without a vaccine
Sign up for Next China, a weekly email on where the nation stands now and where it’s going next. Just as Beijing looked poised to claim victory over the coronavirus, a 52-year-old man with fever and chills showed how the pandemic can come roaring back from apparent obscurity.
/bloom.bg/3g1VNYf

America Swallowed the Key to Escaping the Pandemic; Oops. Did we need that?
Mark Gongloff – Bloomberg
We Have the Coronavirus Tools
America is like a player trapped in a deadly escape room who has been given a cheat sheet with instructions for how to leave. Instead of following the instructions, America eats the cheat sheet and then shuffles dumbly around the room, risking death at every turn.
/bloom.bg/2AUtxYC

CityLab Daily: How the Coronavirus Recovery Is Changing Cities
Linda Poon – Bloomberg
Coming to a city near you: U.S. cities are beginning to emerge from coronavirus lockdowns, but even with the threat of contagion lingering (and in some places growing), how we work, travel, eat and play is changing in ways both subtle and dramatic. The urban streetscape may also be transformed as people and businesses demand more space to properly engage in social distancing — thus posing one of the great design challenges of the recovery period for already built-up, congested cities.
/bloom.bg/2V7buVF

Coronavirus cases soar in big countries, especially Brazil, WHO says
Stephanie Nebehay, John Revill – Reuters
Coronavirus cases are soaring in several major countries at the same time, with “worrying increases” in Latin America, especially Brazil, the World Health Organization (WHO) said on Monday.
/reut.rs/2Z2hIaM

‘Do I need to be here?’: Some New Yorkers decide to pack up and leave
Maria Caspani, Angela Moore – Reuters
Rebekah Rosler and her husband did not intend to leave Manhattan for good in March when they packed up their three children and headed 50 miles north to wait out the coronavirus pandemic in her parents’ vacant home in upstate New York.
/reut.rs/3fVNU6B

Korea’s Swiss Debt Gets Boost From Virus Success, UBS Says
Kyungji Cho – Bloomberg
Korea is second-biggest overseas issuer of franc company debt; Investors feel Korea has virus relatively under control: UBS
The Korea-Swiss bond connection looks here to stay.South Korea has over the years been one of the biggest overseas sources of corporate notes denominated in Swiss franc, as its issuers have found borrowing costs in the currency to often be favorable and investors have been keen to diversify into company debt of a highly-rated Asian nation.
/bloom.bg/3hTHMxu

Covid-19 crisis increases demand for exchange competition; Acuiti study into changing attitudes finds increased demand for exchange competition and margin efficiencies
Acuiti
Demand for greater competition between derivatives exchanges has been strengthened by the Covid-19 crisis, a whitepaper by Acuiti has found. The whitepaper, Execution, clearing and competition in a post-Covid world, was produced in partnership with CurveGlobal Markets and based on a survey of 88 senior executives from across the global derivatives market.
/bit.ly/37TFBVN

As States Reopen, Workers, Executives Want Government to Make Masks Mandatory; Companies seek to avoid playing the heavy with customers as state and local rules vary
Katherine Sayre and Alison Sider – WSJ
Business executives and front-line workers are pushing government officials to require customers to wear masks, a step that could allow companies to avoid alienating a portion of the public.
/on.wsj.com/2YqIniv

A Multibillion-Dollar Opportunity: Virus-Proofing the New Office; Tech, catering and design companies are rushing to sell employers on fever scanners, box lunches and office floor-planning apps for social distancing. But it’s too soon to tell if they will work.
Natasha Singer and Julie Creswell – NY Times
Truework, an income verification start-up, recently introduced software to help employers keep track of their workers’ health status.
/nyti.ms/2B13TBn

America Is Reopening. Coronavirus Tracing Apps Aren’t Ready.; Smartphone apps meant to track where people have traveled or whom they have been near are mostly buggy, little-used or not ready for major rollouts, raising concerns as restrictions lift and infections rise
Rolfe Winkler and Patience Haggin – WSJ
Local officials in Teton County, Wyo., home to Yellowstone National Park and resort town Jackson Hole, want to prevent a new wave of coronavirus cases as the area reopens. They decided to lean on technology.
/on.wsj.com/2BwnrgY

Job Recruitment Adopts Social Distancing as Coronavirus Alters Practices; Employers rethink how they hire, trying remote onboarding and curbside job fairs to reduce risks
James T. Areddy – WSJ
Jeffrey Cyr wheeled his white Honda sedan into a parking space near a microbrewery and a taco joint at a strip mall here around midday recently. Instead of food, jobs were on the menu.
/on.wsj.com/31aiuoS

Capital relief trades make slow comeback from; Covid slump European synthetic credit risk transfer market now more expensive for banks
Samuel Wilkes – Risk.net
Synthetic securitisation deals transferring credit risk from banks’ loan books to buy-side firms are making a slow comeback from a coronavirus-induced slump, and dealers are finding the market has become more expensive for issuers.
/bit.ly/2Z2b8RC

Sanofi Targets Speedier Approval of Coronavirus Vaccine
Thomas Mulier and James Paton – Bloomberg
French drugmaker sees nod for first shot early next year; Sanofi, Translate Bio are in vaccine pact for Covid-19, flu
French drugmaker Sanofi expects to win approval for a Covid-19 vaccine in the first half of next year as it strengthens a pact with Translate Bio Inc. to develop other shots in a deal that could be valued at as much as $2.3 billion.
/bloom.bg/318zhIU

Design Hacks Will Dominate the Coronavirus Recovery Landscape; Caution tape. Painted circles. Plastic dividers. The most impactful coronavirus designs are coming from mostly nonprofessionals adapting urban space on the fly.
Amanda Kolson Hurley – Bloomberg
At Old Takoma Ace Hardware in Takoma Park, Md., a garish jumble of plastic barriers, signs, and floor markings faces customers a few steps inside the front door. Orange cones mark off the queueing area for the cash registers. A yellow “Wet Floor” tent sign is partly covered by a drawing of an arrow pointing left, with the instruction ENTER. On the tile floor, arrows and brackets (indicating where to stand) are outlined in fluorescent duct tape. “ATTENTION CUSTOMERS,” reads a notice stuck to one of the cones.
/bloom.bg/3fQybFA

Exchanges, OTC and Clearing

LSEG faces scrutiny of Refinitiv acquisition due to trading and clearing competition concerns; Concerns around European government bond trading, derivatives trading and clearing, and market data have been voiced as LSEG and Refinitiv deal faces investigation.
Hayley McDowell – The Trade3
The European Commission has opened an investigation into the London Stock Exchange Group’s (LSEG) $27 billion acquisition of Refinitiv, due to concerns that the mega-merger will dampen competition in trading and clearing.
/bit.ly/3er3xm9

Intercontinental Exchange Appoints Joanne Rowe Corporate Risk Officer
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that Joanne Rowe, currently the Corporate Risk Officer for ICE’s North American Exchanges, has been named ICE’s Corporate Risk Officer, leading the team that manages the company’s global enterprise risk management program and related functions. Rowe succeeds Kevin McClear, who last week was appointed President of ICE Clear U.S.
/bit.ly/2VcA1bY

SIX Swiss Exchange – New: Risk-Based Audit Of Participants
Mondovisione
All participants of SIX Swiss Exchange AG were previously required to submit an annual audit report to SIX Exchange Regulation AG (“SER”) regarding compliance with certain provisions contained in regulations of SIX Swiss Exchange AG in particular with regard to market conduct rules . SER is now reforming this requirement within the new framework of a risk- based approach.
/bit.ly/3hVmEa4

Nigerian Stock Exchange Raises A Toast To Guinness Nigeria At 70 Years
Mondovisione
Guinness Nigeria Plc, one of the pioneer companies to be listed on The Nigerian Stock Exchange (NSE or The Exchange), in the Beer and Beverage Industry, marked its 70th anniversary celebration with a Closing Gong ceremony at the Exchange on Monday, 22 June 2020. To commemorate the anniversary, the CEO of the iconic brand Mr. Baker Magunda, was given the privilege to sound the digital Closing Gong of the NSE.
/bit.ly/2ASgKWD

London Stock Exchange Group: Update On The European Commission Review Related To The Planned All Share Acquisition Of Refinitiv
Mondovisione
On 1 August 2019, London Stock Exchange Group plc (LSEG) announced that it had reached definitive terms to acquire Refinitiv in an all share transaction for a total enterprise value of approximately US$27 billion (as at 1 August 2019) (the Transaction).
/bit.ly/2V9xAak

London Stock Exchange Group: Price Monitoring Extension
Mondovisione
The auction call period has been extended in this security by 5 minutes. Auction call extensions give London Stock Exchange electronic order book users a further opportunity to review the prices and sizes of orders entered in an individual security’s auction call before the execution occurs. A price monitoring extension is activated when the matching process would have otherwise resulted in an execution price that is a pre-determined percentage above or below the price of the most recent automated execution today.
/bit.ly/2Bsm6HT

London Stock Exchange plc appointments
London Stock Exchange Group
London Stock Exchange Group (LSEG) today announces changes to the Board of London Stock Exchange plc, a wholly owned subsidiary of London Stock Exchange Group plc. Michael Findlay has been appointed Non-Executive Chair of London Stock Exchange plc, as of 24 June. Michael Findlay has worked in financial services for over thirty years and brings deep capital markets and corporate experience, having held senior positions at Bank of America Merrill Lynch, Moelis & Company LLP and UBS. His current directorships include Non-Executive Director and Chair of the Audit & Risk Committee of Royal Mail plc and Chair of Morgan Sindall Group plc.
/bit.ly/2zWAzvm

London Stock Exchange Group: Second Price Monitoring Extension
Mondovisione
A second and final Price Monitoring Extension has been activated in this security. The auction call period is extended in this security for a further 5 minutes.
/bit.ly/2V6gOc0

Nigerian Stock Exchange Upgrades Data Portal (X-DataPortal) To Further Improve Access To The Market
Mondovisione
The Nigerian Stock Exchange (NSE or The Exchange) is pleased to announce the upgrade of its Data Portal (X-DataPortal) on Monday, 22 June 2020. The revamped X-DataPortal, accessible via https://dataportal.nse.com.ng, provides a more efficient, user-friendly experience for subscribers. The new features include data products, subscription management, payment gateway integration and a lot more.
/bit.ly/2YoJ7Ew

London lands $1.8bn listing of Chinese insurer via Shanghai link; Much-heralded connection between the two exchanges held up by stormy markets and low liquidity
Philip Stafford and Camilla Hodgson – FT
China Pacific Insurance has completed London’s second largest stock listing of the year, boosting a flagship programme to connect the biggest equity markets in Europe and China.
/on.ft.com/3erIkbF

Fintech

Why the future of financial markets is in the cloud
Brad Peterson, Lars Ottergard – Fortune
Think of critical infrastructure, and sectors such as telecommunications, agriculture, and construction likely come to mind, as physical assets such as networks, farms, roads, and bridges keep economies humming. But the financial services industry is also among this cohort, according to the Department of Homeland Security. As such, the onus is on the sector to invest in the future well-being of our economy. After all, well-functioning markets connect companies and people to the capital, information, and technology they need to foster innovation, generate more jobs, and drive GDP growth worldwide.
/bit.ly/2Nnrmzg

INTL FCStone significantly expands relationship with Eventus Systems for market surveillance in EMEA region
Eventus Systems
Eventus Systems, Inc., a multi-award winning global trade surveillance and risk management software platform provider, today announced that INTL FCStone Ltd., the London-based European subsidiary of Fortune 500 company INTL FCStone Inc., will deploy the firm’s Validus platform for market surveillance activities throughout the Europe, Middle East and Africa (EMEA) region.
/prn.to/2Npwz9D

Japanese Supercomputer Is Crowned World’s Speediest; In the race for the most powerful computers, Fugaku, a Japanese supercomputer, recently beat American and Chinese machines.
Don Clark – NY Times
China and the United States are locked in a contest to develop the world’s most powerful computers. Now a massive machine in Japan has topped them both.
/nyti.ms/3hPyN0h

Wirecard Scandal Makes Tech Investing Even More Expensive; There is no reason to doubt the accounting of other European fintech companies, but there is reason to doubt some frothy valuations
Stephen Wilmot – WSJ
The pickings were slim for European tech investors even before the accounting scandal at Wirecard. Now it is even harder to find suitably scaled stocks at a sensible price. Shares in the fallen German fintech star plunged another 36% on Monday morning after the company said there is a “prevailing likelihood” that the EUR1.9 billion ($2.1 billion) in cash balances that it couldn’t find last week doesn’t exist. Business partners in countries where Wirecard doesn’t have its own license to operate have provided the bulk of profits in recent years, according to a damning KPMG special audit published in late April. These profits are looking increasingly fictitious.
/on.wsj.com/317qyXi

Wirecard’s Former CEO Markus Braun Is Arrested; Prosecutors say he was arrested on suspicion of presenting false information
Paul J. Davies and Ruth Bender – WSJ
Wirecard AG’s recently departed chief executive, Markus Braun, was arrested by police, days after the German payments company revealed a $2 billion hole in its books.
/on.wsj.com/3hTAhqk

Wirecard Scandal Could Give Fintech a Bad Name; Moving money from point A to point B for a small fee shouldn’t be exciting. It’s time to make sure all the proper controls are in place.
Lionel Laurent – Bloomberg
The spectacular blowup of German fintech darling Wirecard AG, which has seen $12 billion wiped off its market value in three days, is making some old-school bankers feel good about themselves.
/bloom.bg/3fQneEe

Wirecard’s Braun Has to Unwind Shares Pledged as Collateral
Eyk Henning and Steven Arons – Bloomberg
Braun pledged 4.2 million shares to secure the loan in 2017; Wirecard’s shares lost almost three-fourths of value last week
Wirecard AG’s former boss Markus Braun is unwinding a large portion of the shares he owns in the embattled payments processor, a stake he financed by borrowing against the stock’s value, according to a person familiar with the matter.
/bloom.bg/3199dNy

UBS Head of Tech: How Virtual Desktops Keep Workers Plugged in During the Pandemic; The Swiss bank’s A3 system offers a blueprint for remote working as the industry looks to life beyond coronavirus.
Joanna Wright – Waters Technology
In the 1980s, Italian drinks brand Martini promoted itself with the slogan: “Any time, any place, anywhere.” Banking giant UBS is channeling a similar spirit for its remote working setup.
/bit.ly/2YreZIU

OpenDoor launches anonymous order book for on-the-run US treasuries; Anonymous order book has been established at OpenDoor amid concerns around information leakage during the recent market volatility.
Hayley McDowell – The Trade
US-based OpenDoor Securities has launched an all-to-all anonymous order book for on-the-run (OTR) US treasuries in response to concerns around liquidity and information leakage during times of stress on traditional venues.
/bit.ly/2Bxr7yS

Cryptocurrencies

India Must Not Drop Out of Crypto Arms Race; Banning digital currency will strengthen strategic rival China and make millions of families poorer.
Andy Mukherjee – Bloomberg
Talk about cutting off the nose to spite the face: For a second time, India wants to ban cryptocurrencies. Harnessing the power of tokens residing on distributed ledgers can save the world’s biggest recipient of money transfers billions of dollars annually. Regulating digital assets and allowing the industry to grow can also keep India in the reckoning as both China and Silicon Valley try to reshape the global payments industry.
/bloom.bg/2NnZQl6

‘Big 4’ Auditor KPMG Launches Crypto Asset Management Tools
Nikhilesh De – Coindesk
KPMG has built a suite of tools designed to help both traditional financial companies and fintech startups provide tightly managed crypto-asset services. Targeting institutional clients, the new KPMG Chain Fusion product lets customers manage their data in compliance with regulations around financial reporting, security and processing needs. The suite allows these customers to collect and organize data from both traditional systems as well as blockchain databases, the company announced Monday.
/bit.ly/3fP8KUV

Crypto Exchanges Must Stop Acting Like Casinos in Wake of Robinhood Suicide: bitFlyer COO
Paddy Baker – Coindesk
The suicide of a 20-year-old Robinhood trader should be a wake-up call for cryptocurrency exchanges that put revenue above customer protection, said a U.S. exec at one of the world’s largest such venues. Many exchanges were designed to encourage users to trade as frequently as possible, often with money they don’t have, and resembled casinos more than responsible trading platforms, said Joel Edgerton, chief operating officer at bitFlyer U.S. “There are too many exchanges that are run like casinos and exploit their customers,” he said.
/bit.ly/2Z0o4az

PayPal to Reportedly Support Cryptocurrency Direct Transactions
Aziz Abdel-Qader – Finance Magnates
Online-payments giant PayPal Holdings is looking to explicitly unleash cryptocurrencies onto its client base that reportedly boasts over 320 million people. According to a report by CoinDesk, three sources have confirmed to the crypto industry publication that PayPal and its affiliated platform Venmo will allow their users to “directly” buy and sell several cryptocurrencies, though which coins they will support are yet to be revealed.
/bit.ly/3hShCLm

In Banking First, ING Develops FATF-Friendly Protocol for Tracking Crypto Transfers
Ian Allison – Coindesk
ING Bank, the Netherlands-based lender with a penchant for blockchain, has developed a protocol to assist with the Financial Action Task Force’s Travel Rule requirement for crypto exchanges and firms dealing in digital assets. The solution initiated by ING – currently dubbed the Travel Rule Protocol or TRP – has also been backed by Standard Chartered Bank, Fidelity Digital Assets and BitGo, plus a gaggle of other familiar firms from the crypto space.
/bit.ly/3dkX6j6

BitMEX parent leads $3.5 million Series A for crypto options exchange Sparrow
Yogita Khatri – The Block
Crypto options trading platform Sparrow has raised $3.5 million in Series A funding. BitMEX parent HDR Group led the round, with participation from venture firms Signum Capital, Du Capital and FinLab EOS VC. Singapore-based Sparrow offers bitcoin (BTC) and ether (ETH) options, which are settled via smart contracts. The exchange said its options are more liquid than over-the-counter (OTC) options and more customizable than exchange-traded options.
/bit.ly/3fP9dq9

Vanguard Ran Its Digital Asset-Backed Securities Pilot in 40 Minutes
Nathan DiCamillo – Coindesk
The full life of a digital asset-backed security (ABS) on a blockchain can be settled in 40 minutes versus the 10 to 14 days it would take in a paper-based setting. That was the outcome of a pilot first revealed June 11 by mutual fund giant Vanguard in partnership with blockchain startup Symbiont, Citi, BNY Mellon, State Street and an unnamed ABS issuer. The goal of the project: to see if the decades-old Wall Street practice of repackaging contractual debt – be it car loans, mortgages or credit card debt – into bonds sold to investors, known as securitization, can be simplified.
/bit.ly/2CvFK6h

Crypto data platform CoinGecko introduces reward system for users
Yogita Khatri – The Block
Crypto market data aggregator CoinGecko has launched a new reward system for its users. Called Candy, the reward system provides loyalty points to users who log in to CoinGecko’s website daily. “You can think of Candy as similar to Reddit karma points, where we reward users for usage,” CoinGecko co-founder and COO Bobby Ong told The Block.
/bit.ly/319Db44

Ripple Affiliate Coins.ph Joins New Remittance Network Reaching Unbanked Filipinos
Sebastian Sinclair – Coindesk
UnionBank of the Philippines has built out a network it says will make it easier for people without access to financial services to receive money from abroad. The bank – the country’s tenth largest by assets – announced on Tuesday that it’s launching 11,000 cash-out remittance counters across the archipelago, including in rural or remote areas where citizens may have access to banking services. The counters provide points of contact with the bank’s financial services ranging from smartphone app to full remittance hubs.
/bit.ly/3dqExtK

Cred Taps Former NSA, Western Union Bosses for Leadership Team
Sandali Handagama – Coindesk
Decentralized lending platform Cred has welcomed former National Security Agency computer scientist Bethany De Lude and Western Union executive Daniel Goldstein as chief information security officer (CISO) and chief technology officer (CTO) respectively, the firm announced Monday.
/bit.ly/3emWsmq

Crypto Exchanges Must Stop Acting Like Casinos in Wake of Robinhood Suicide: bitFlyer COO
Paddy Baker – Coindesk
The suicide of a 20-year-old Robinhood trader should be a wake-up call for cryptocurrency exchanges that put revenue above customer protection, said a U.S. exec at one of the world’s largest such venues.
/bit.ly/2Z0o4az

Fed Economists Call Fears of Original Libra Stablecoin ‘Overstated’
Danny Nelson – Coindesk
Economists at the Federal Reserve said an earlier version of Libra, the Facebook-linked stablecoin frequently targeted by lawmakers and central bankers as an economic wrecking ball, was unlikely to have lived up to its sovereign currency-killer hype.
/bit.ly/2VanCpf

Politics

CityLab Daily: Avenging the Tulsa Race Massacre with Hip Hop
Linda Poon – Bloomberg
A history lesson: In 1921, the Greenwood neighborhood in Tulsa, Oklahoma, was the site of one of America’s bloodiest massacres, Taylor Hosking writes:
/bloom.bg/3i3NUDo

The Right Approach to Outreach in a Time of Social Upheaval; Check in, listen, and lead the change, say experts in diversity and inclusion.
Sarah Green Carmichael – Bloomberg Businessweek
The protests that followed the police killing of George Floyd. The continued outbreaks of a disease that’s seeing Blacks die at more than twice the rate of Whites. Black unemployment numbers reaching new highs. “It’s a perfect storm to unearth the racial inequities that have been happening in our society,” says Maysa Akbar, assistant clinical professor at the Yale School of Medicine and author of the forthcoming Beyond Ally: The Pursuit of Racial Justice. “Good leaders right now would consider that their employees of color are going through the most traumatizing time.”
/bloom.bg/319khKA

$1 Trillion Task at BOE Is Daunting Ambition for Bailey Era
Brian Swint and Eddie Spence – Bloomberg
‘It’s going to be very tricky,’ says fund manager Athey; Bailey replaced Carney as governor 100 days ago on Tuesday
Andrew Bailey is wagering that the Bank of England can eventually achieve a stimulus withdrawal that neither his predecessors nor his counterparts ever really dreamed was possible.
/bloom.bg/2YV6956

The Risk of ‘Overnight Ruin’
NY Times
The S.E.C.’s new headache
Jay Clayton, the nation’s top securities regulator, was thrust into a political firestorm over the weekend. He was unexpectedly nominated as the next U.S. attorney for the Southern District of New York, amid the controversial firing of Geoffrey Berman from that role. It leaves Mr. Clayton — and the S.E.C. — facing questions about what comes next.
/nyti.ms/2Va08jI

Trump team weighs a CDC scrubbing to deflect mounting criticism; With Trump under fire for his handling of the outbreak, his advisers are eyeing the federal bureaucracy for other culprits ahead of the election.
Nancy Cook, Adam Cancryn – Politico
White House officials are putting a target on the Centers for Disease Control and Prevention, positioning the agency as a coronavirus scapegoat as cases surge in many states and the U.S. falls behind other nations that are taming the pandemic.
/politi.co/2B1ijS2

Trump’s Polls Are Plunging But It’s Too Early to Count Him Out
Joshua Green – Bloomberg
Hit by pandemic, economy could already be rebounding; Joe Biden could push voters away with his age or blunders
With the nation reeling from the Covid-19 pandemic, a recession that’s thrown 20 million people out of work, and waves of protests against police violence, nearly every recent poll shows President Donald Trump headed to defeat in November. And Trump’s sparsely attended rally in Oklahoma last weekend did little to indicate those polls are missing a hidden groundswell of support.
/bloom.bg/31agmNU

How Structural Racism Has Shaped the Fed’s Leadership; Black candidates face higher hurdles to get the top jobs.
Narayana Kocherlakota – Bloomberg
One manifestation of structural racism in America is that Black people must achieve vastly superior qualifications to obtain leadership roles. Sadly, the U.S. Federal Reserve is no exception.
/bloom.bg/2B2GAXJ

Trump and Barr Discard Law, Morality and Honor; The dismissal of a federal prosecutor investigating matters close to the president is both shocking and unsurprising.
Timothy L. O’Brien – Bloomberg
As the U.S. Attorney in Manhattan, Geoffrey Berman sat atop one of the most powerful and independent perches in federal law enforcement. His office has long held dominion over the most significant white-collar crime cases in the country. It has taken on terrorists and organized crime. And sometimes it has investigated or prosecuted people close to the president of the United States.
/bloom.bg/2YoREY4

Bill Barr Should Have Lost His Job This Weekend; The attorney general undermined the rule of law by forcing out Geoffrey Berman, the United States attorney in Manhattan.
Preet Bharara – NY Times
Geoffrey S. Berman, the U.S. attorney for the Southern District of New York, at a news conference in 2018.Credit…Jeenah Moon for The New York Times
President Trump has long made clear that, for him, “rule of law” is a limited-utility slogan. By word and deed, he has demonstrated his belief that the law exists to serve him, personally and politically.
/nyti.ms/2YqPE1N

Regulation

Effective date for NFA rule amendments related to NFA’s penalties and other disciplinary procedures
NFA
NFA Compliance Rule 3-14 sets forth the types of penalties that an NFA disciplinary panel may impose at the conclusion of an NFA disciplinary proceeding. NFA recently amended this rule to increase the maximum monetary penalty to $500,000 per rule violation. This increase is intended to further deter violations of NFA requirements and provide NFA’s disciplinary panels with the flexibility needed in assessing penalties. NFA also made several other minor amendments to its disciplinary procedures set forth in Part 3 of its Compliance Rules. These amendments will become effective on August 31, 2020.
/bit.ly/2YZWTg6

New Zealand Financial Markets Authority Files Proceedings Against CLSAP NZ (Formerly KVB Kunlun) For Alleged Anti-Money Laundering Breaches
Mondovisione
The Financial Markets Authority (FMA) has filed civil High Court proceedings against CLSA Premium New Zealand Limited (CLSAP NZ) for alleged breaches of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act.
/bit.ly/317se2Z

ASIC reports on decisions to cut red tape – October 2019 to March 2020
ASIC
ASIC has helped the law work better for business by granting over 600 applications for relief between 1 October 2019 and 31 March 2020. ASIC’s latest report, Overview of decisions on relief applications (October 2019 to March 2020) (REP 664), outlines decisions on relief applications and highlights ASIC’s efforts to reduce red-tape and achieve a practical, positive outcome for companies seeking regulatory flexibility, without harming stakeholders.
/bit.ly/2YYoWfX

Former Melbourne director Avrohom Kimelman charged with insider trading
ASIC
Former director Mr Avrohom Mordechai Kimelman of St Kilda East appeared on 23 June 2020 in the Magistrates’ Court of Victoria at Melbourne charged with insider trading offences. Mr Kimelman has been charged with four counts of procuring the acquisition of shares in Quantum Resources Ltd (Quantum) while in possession of inside information, and four counts of applying for shares in Quantum while in possession of inside information.
/bit.ly/2V8BPTB

Changes in Latitudes, Changes in Attitudes: Enforcement Cooperation in Financial Markets
Department of Justice
Good afternoon. Thank you for hosting this discussion today. I’m pleased that we were able to reschedule this event, which was originally scheduled for April and at MIT, and that we now have the opportunity to engage in this important conversation. I am even more pleased to be joined today by my esteemed friends at the SEC, Chairman Jay Clayton and Director of the Division of Trading and Markets, Brett Redfearn.
/bit.ly/3esexj7

FCA seeks industry views on a new prudential regime for UK investment firms
UK FCA
The FCA has today published a discussion paper on a prudential regime for UK investment firms. This marks the first step in introducing a set of prudential rules for investment firms to better reflect their business models and the risk of harm they pose to consumers and markets.
/bit.ly/2YZSJ7Y

FCA statement on planned amendments to the Benchmarks Regulation
UK FCA
The FCA welcomes the Government’s announcement today(link is external) that it intends to bring forward legislation to amend the Benchmarks Regulation (BMR) to give the FCA enhanced powers. These could help manage and direct an orderly wind-down of critical benchmarks such as LIBOR, and, in particular, help deal with the problem identified by the Sterling Risk Free Rate Working Group(link is external) of ‘tough legacy’ contracts that cannot transition from LIBOR.
/bit.ly/3185Kir

Firms to prepare for phased move to FCA’s new data collection platform RegData
UK FCA
We are now preparing to gradually move firms across to our new data collection platform, which replaces Gabriel.
/bit.ly/3emsSxy

My Smart Bonds
UK FCA
We believe this firm has been providing financial services or products in the UK without our authorisation. Find out why to be especially wary of dealing with this unauthorised firm and how to protect yourself from scammers.
/bit.ly/2V9V92x

Esma’s move on hedge fund leverage worries industry; Critics say proposed guidelines rely on patchy data and inconsistent calculations
Olesya Dmitracova – Risk.net
On March 27, in the middle of the worst economic crisis in generations, Europe’s securities regulator published a proposal that, according to one hedge fund lobbyist, could upend the business models of scores of firms.
/bit.ly/318B2Wz

Investing and Trading

Kinks Linger in America’s Food System With Pigs Still Piling Up
Isis Almeida – Bloomberg
Kraft had to find new suppliers of CO2 as ethanol plants shut; ‘It will take a long time before things get back to normal’
The obvious obstacles in America’s food-supply chain — from shuttered meat plants to restocking delays and panic buying — have largely dissipated. But shock waves remain.
/bloom.bg/3eqXIFj

Market Exuberance Set to Be Challenged as Global Risks Intensify
William Shaw, Michael Msika, and Vassilis Karamanis – Bloomberg
Currency market underpricing risk, Nomura’s Rochester says; AllianceBernstein takes profit in credit before furlough ends
Markets may be headed for a wake-up call as scenarios that investors brushed aside to fuel a global rally move closer to reality.
/bloom.bg/31bwU82

Are We In The Mother Of All Bubbles?
Stephen Chen – Forbes
I help people achieve a secure retirement and financial independence.
This has been a hard year for retirement savers. The National Bureau of Economic Research says the U.S. entered a recession in late February, and some estimates say 2020 will see a six percent contraction in GDP. But you look at the stock market and see a totally different story. From its mid-February top of 3386, the S&P 500 is down just 8 percent as of this writing. That means it’s at the same level it was at in December of 2019. How is that possible?
/bit.ly/3hML714

Bank of England Wants to Remove the QE Punch Bowl; For a central banker in febrile times, Andrew Bailey is sending out some bold signals on reducing the BOE’s balance sheet.
Marcus Ashworth – Bloomberg
The Bank of England is taking a risk by highlighting an exit strategy from its pandemic bond-buying program even before the U.K. has emerged from lockdown. If the economy fails to pick up, the bank could be forced into an embarrassing U-turn.
/bloom.bg/3hT2cqi

Institutions

French Banks Warned Heavy Corporate Debt Creates a Systemic Risk
William Horobin and Alexandre Rajbhandari – Bloomberg
Top risk comes from surge in company debts in crisis; Bank of France also sees higher risks from markets, low rates
Risks in France’s financial system have reached systemic levels and are set to rise further after the coronavirus shuttered the economy and firms loaded up on debt, according to the central bank.
/bloom.bg/3hTIZop

Ariel’s Rogers Says Companies Must Back Up Equality Talk
Annie Massa – Bloomberg
Companies are asking for advice and truly listening, he says; Rogers says current protest movement carries echoes of 1968
John Rogers, co-chief executive officer of Ariel Investments, said that companies must “really execute” on diversity plans, and back up their broad statements about race with meaningful steps.
/bloom.bg/2BuYYbK

INTL FCStone extends Eventus surveillance system to operations in Europe; Following the implementation of the Eventus surveillance platform in the US, INTL FCStone has expanded its relationship to deploy the system in Europe.
Kiays Khalil – The Trade
INTL FCStone has expanded its relationship with Eventus Systems by deploying the firm’s flagship Validus surveillance platform to its operations in Europe, Middle East and Africa (EMEA).
/bit.ly/37TWkZ4

Regions

Defying Dire Predictions, China Is the Bubble That Never Pops; The country’s rapid rebound from the coronavirus means it’s poised for another year of growth while the U.S. contracts.
Tom Orlik – Bloomberg
Don’t tell President Trump, but China is winning. The U.S. has thousands of new Covid-19 cases a day. China’s reported daily case count is down to double digits. The U.S. is braced for an historic 6% contraction in gross domestic product. China’s rapid rebound means it’s poised for another year of growth—and a speedier catch-up in the race to overtake the U.S. as the world’s biggest economy. America’s international standing has seldom been lower. From the corridors of the World Health Organization to the protest-ridden streets of Hong Kong, China’s global clout increases.
/bloom.bg/2YYf5a0

Culture of Inflating Oil Reserves Helped Stoke U.S. Shale Boom; As the industry reels from the pandemic, some question whether oil reserves were as rich as some companies estimated.
Rachel Adams-Heard – Bloomberg
America’s shale revolution grew out of a well-orchestrated dance. For almost a decade, producers wooed investors by touting rosy estimates of how much crude oil they could profitably drill, and investors forked over money.
/bloom.bg/2YTE3XK

Forestry Giant Discovers Downside of Planting Millions of Trees; Chile’s $408 million subsidy program reduced native forests and made little difference to carbon capture
Laura Millan Lombrana – Bloomberg
A multi-decade state program to subsidize tree planting in one of South America’s wealthiest nations led to a loss of biodiversity and did little to increase the forests’ capacity to capture greenhouse gases.
/bloom.bg/2NjffDo

S. Africa Looks to Green Infrastructure Bond to Spur Growth
Antony Sguazzin – Bloomberg
Bond is one option in drive to mobilize private sector funding; President Ramaphosa to announce project funding commitments
South Africa’s government is considering selling a green infrastructure bond worth tens of billions of rand as part of its biggest drive ever to kickstart private investment in projects ranging from energy to water reticulation.
/bloom.bg/31kPlYf

China Tech Firms Face Backlash Over Beijing’s Policies; India said it would prohibit state-run telecom companies from buying Chinese equipment after 20 of its soldiers died in a border clash
Liza Lin – WSJ
For years, foreign companies and governments have accused Beijing of wielding access to the Chinese market as a diplomatic weapon, using boycotts and commercial penalties to punish perceived political slights. Now, Chinese companies are getting a taste of what it is like to be on the other side.
/on.wsj.com/2YYlmT3

Chinese Energy Company Defaults on Dollar Bonds; Hilong Holding, with $165 million in bonds that came due Monday, joins list of Chinese companies defaulting on offshore debt this year
Xie Yu – WSJ
Hilong Holding Ltd., 1623 2.06% a provider of oil-field services and equipment, said it wouldn’t be able to repay holders of a maturing dollar bond—the latest offshore default by a Chinese borrower.
/on.wsj.com/2CBMQXb

Nigerians Bid to Sue Shell in U.K. Over Oil-Spill Pollution
William Clowes and Laura Hurst – Bloomberg
Residents want to use 2019 ruling to access U.K. courts; Shell says compensation lawsuit should take place in Nigeria
Thousands of Nigerians are asking British judges to give them permission to sue Royal Dutch Shell Plc in London over environmental damage caused by oil spills 3,000 miles away in Africa.
/bloom.bg/31bnKsa

Indulgences Are Out, Durables Are In for Virus-Scarred Shoppers; Consumer behavior in China and South Korea as the pandemic eased offers clues to how Americans will act.
Shuli Ren – Bloomberg
The renewed coronavirus outbreaks in China and South Korea threaten to put the countries back into a soft lockdown. But East Asia did have a few months of calm. Bars and restaurants were open, as were gyms. The experience of these early movers may give us some clues on where the pent-up demand is in the U.S. So what were those lucky Asians spending their money on?
/bloom.bg/2Z50gSO

OPEC+ Laggards Fall in Line With Push for Compensatory Oil Cuts
Grant Smith and Javier Blas – Bloomberg
Nigeria, Angola, Gabon, Brunei submit plans to OPEC in Vienna; Nations pumped above OPEC+ quotas along with Iraq, Kazakhstan
OPEC+ nations that had been pumping more oil than their quotas allow for are starting to fall in line and provide details to other members of the cartel on how they’ll make extra reductions to compensate.
/bloom.bg/2YZrV7U

China, India Agree to Cool Down Tensions Along Disputed Border
Sudhi Ranjan Sen – Bloomberg
China and India have agreed to deescalate tensions on their disputed Himalayan border, after a weeks-long standoff boiled over into the worst military clash between the two nations in 45 years.
/bloom.bg/3hVAkSb

Brexit

It’s been four years since the Brexit vote: everything and nothing has changed
Anand Menon – The Guardian
On this day in 2016, 72% of the UK’s electorate headed to the polls in the EU referendum. Four years on, one can hardly fail to be struck by the subsequent transformation of politics. Yet the consequences in terms of substantive policy have been significantly more limited. Brexit, to date, has changed everything and nothing.
/bit.ly/2NnqACm

Japan Seeks Closure in Post-Brexit U.K. Trade Talks by End-July
Toru Fujioka – Bloomberg
Japan is aiming to conclude its current trade negotiations with the U.K. by the end of next month, according to a Japanese government official familiar with the talks. While the time frame sounds very short for a trade negotiation, the two sides aren’t starting from scratch because they already have an economic partnership agreement, the official said.
/bloom.bg/2NouLhq

Britain sets out approach to regulatory standards post-Brexit
Sarah Young – Reuters
Britain set out how it intends to approach regulatory issues in the financial services sector now that it has left the European Union, saying that it would make reforms to maintain the soundness of capital markets and manage future risks. “The government is announcing how it intends to legislate for updated prudential rules to reflect international Basel standards and a new regime for investment firms,” Britain said in a statement issued by the Treasury on Tuesday.
/reut.rs/37TUck2

Miscellaneous

Prestigious Wine Organization Drops Use of Term ‘Master’; The organization, the Court of Master Sommeliers, Americas, wants to be more inclusive. Some black wine experts say the recent changes aren’t enough.
Christina Morales – WSJ
A prestigious wine organization will stop its common use of “master” with a sommelier’s surname as part of an effort to be more inclusive and to help diversify the wine industry.
/nyti.ms/2YV3pok

Maurice Harris Is a Superstar. Can He Bend Capitalism to His Talents? He’s a star florist. He’s got a design show, an Instagram presence and a cafe. He’s a visual artist and an entrepreneur. Will he make it through the year?
Molly Creeden – NY Times
Every few days, the florist Maurice Harris goes to his local Home Depot in Los Angeles to get supplies for renovation projects that rarely have anything to do with flowers. “I have a bachelor’s degree from YouTube University,” he joked, of the how-to videos that taught him to install a kitchen sink and pound decomposed granite into the ground.
/nyti.ms/3fQjFh6

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