U.K. Regulator Warns Crypto Investors Risk Losing ‘All Their Money’

Jan 11, 2021

First Read

$23,651/$300,000 (7.9%)
Matt Wolfe

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JLN Launches The History of Financial Futures Episode: Game Changers, Part II
The creation of Liffe, DTB and Eurex

By John Lothian Productions

Eleven years ago John Lothian News began work on a video series about the history of financial futures. We were motivated to get this history on video because of the death of Jack Wing, the founder of The Chicago Corporation, who was an early supporter and proponent of the financial futures products. We wanted to preserve this history in video format before those that had created financial futures all disappeared.

Too many of the early founders of financial futures are gone. But we did capture some of them, and the work on this series has continued in leaps and spurts. Today we are releasing part two of the episodes titled “Game Changers” before we launch part one, which is still a work in progress.

The series is The History of Financial Futures. The episode title is “Game Changers, Part II.” The series is about the start of the modern era of futures trading, starting with the launch of financial futures at the International Commercial Exchange in New York before the ending of the Bretton Woods system, followed by the launch of the International Monetary Market in Chicago in 1972. The latter is the exchange that ultimately succeeded, and the word of this success was spread around the world.

For the rest of this announcement and to view the video, click HERE.

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Hits & Takes
JLN Staff

The Democrats want to impeach President Donald Trump before his term is over, and his replacement on The Apprentice, Arnold Schwarzenegger, posted a viral video comparing the sacking of the Capitol to the Kristallnacht in Germany, based on his experiences growing up in Austria. He also told Mr. Trump he is Terminated.

The Week has a story titled “Trump reportedly told Kelly Loeffler he’d ‘do a number on her’ if she didn’t back Electoral College challenge.” As reported earlier here, she had announced she would object at the Georgia rally Trump spoke at, but then announced she would not.

There was an important lesson taught last week. Don’t commit a crime in a location that has more cameras than Hollywood. Just saying.

Matt Wolfe, an executive director of securities finance at the OCC, is the latest to give to the JLN MarketsWiki Education GoFundMe campaign. Thank you to Matt and all who have given and all who have yet to give. Support our efforts to preserve industry history by supporting our GoFundMe campaign.

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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Reminder: Registration is open for the FIA’s webinar, “2020 futures and options trading annual trends,” in which FIA will highlight the main trends in trading activity in 2020 in the global exchange-traded derivatives markets, with category and regional breakdowns as well as exchange and contract rankings. It takes place on January 27 at 10:30am – 11:30am ET. Visit FIA.org to register.~SR

BMV, the Mexican stock exchange, futures market and clearinghouse, announced last week that it is acting on its commitment to support ESG (environmental, social and governmental) initiatives through the Mexican Green Finance Advisory Council. MexDer’s parent organization has committed to designating a percentage of its operating income to promote project financing targeted not only toward efficient natural resource use and reducing carbon usage but also the resilience and sustainability of financial markets. Click on this link to open up a pdf where you can read the full BMV announcement. ~Thom Thompson

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Industry Leaders: Laura Morrison On Growing the ETP ‘Pie’
JohnLothianNews.com

Exchange-listed products are relatively new for Cboe Global Markets. Laura Morrison recently sat down with John Lothian News and talked about how she has expanded Cboe’s presence in the area in the last five years and what sets its listing operations apart.

Listen to the podcast »

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The Spread: It can only go up from here
JohnLothianNews.com

2020 was a lot of things, most of them pretty bad…but it was a banner year for options traders. And options exchanges!

Watch the video »

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Why We Are Introducing an Article of Impeachment; One of the authors of the impeachment article against President Trump makes his case.
David N. Cicilline – U.S. representative and a member of the House Judiciary Committee via NY Times
Since his resounding defeat in the presidential election in November, Donald Trump has done everything but concede to the democratic will of the American people. He unleashed an avalanche of lies and baseless claims of fraud — conspiracy theories that filled his supporters with a delusional belief that the election had been stolen from him. He filed a bevy of absurd lawsuits. He attempted to cajole and intimidate officials at all levels of government into subverting the election and keeping him in office. And then, running out of recourse, legitimate and illegitimate, he incited an insurrection against the government and the Constitution that he swore to uphold.
/nyti.ms/3q9IQR3

*****History continues to be made. If this occurs, President Trump would be the first president impeached twice.~JJL

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Time to stop trading conflicts that cost investors billions; The incoming US administration should end payments for routing customer orders
Carl Levin – FT
With a new administration incoming in Washington, it is time to end a conflicted practice that siphons billions out of US investors’ funds each year. The Securities and Exchange Commission needs to stop brokers from accepting payments for routing their customers’ orders to certain traders and exchanges. It is like paying a hidden, private tax on savings whether someone invests through a large mutual fund or directly through a personal brokerage account.
/on.ft.com/39egPAM

*****Carl Levin is a former U.S. Senator and chaired the committee on investigations.~JJL

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TikTok and Discord Are the New Wall Street Trading Desks; Pandemic has led to surge of day trading, helping push stocks like NIO and Tesla to records amid online buzz
Caitlin McCabe, Gunjan Banerji and Mischa Frankl-Duval – WSJ
A new army of social media-enabled day traders is helping push stocks to records and turning companies into market sensations. As trading by individual investors boomed during the coronavirus pandemic, so has the popularity of online communities where they gather. Platforms including TikTok, Twitter, YouTube, Reddit, Instagram, Facebook and messaging platform Discord have become the new Wall Street trading desks. Individual investors gather to talk about hot stocks like Tesla Inc., boast of gains and commiserate about losses.
/on.wsj.com/35xefF0

*****OK, how many of you have heard of Discord before?~JJL

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Friday’s Top Three
Our top story Friday was the Financial Times’ Stacey Cunningham, NYSE president caught up in Sino-US tension, about the NYSE’s flip-flop on delisting three Chinese telecom companies. Second was the second installment of our John Lothian News’ video interview, Bill Brodsky – The Path to Electronic Trading, Part 2. Third was The New York Times’ Wall Street Journal Editorial Urges Trump to Resign to Avoid Impeachment.

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MarketsWiki Stats
196,949,225 pages viewed; 25,052 pages; 228,826 edits
MarketsWiki Statistics

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

Recently updated pages include
Bakkt
Vela
WisdomTree
Cryptocurrency

CryptoMarketsWiki Stats

1,486 pages; 13,415 edits
CryptoMarketsWiki Statistics

Lead Stories

U.K. Regulator Warns Crypto Investors Risk Losing ‘All Their Money’
Tom Metcalf – Bloomberg
The U.K.’s financial watchdog has a stark warning for consumers looking to profit from the latest crypto boom: be ready to lose everything. “Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money,” the Financial Conduct Authority said in a statement Monday. “If consumers invest in these types of product, they should be prepared to lose all their money.”
/bloom.bg/39iTwGd

Intercontinental Exchange’s Cryptocurrency Venture to Go Public Through a SPAC; ICE’s Bakkt crypto venture plans to roll out an app for trading and making payments with digital assets
Alexander Osipovich – WSJ
Intercontinental Exchange Inc., ICE 1.57% or ICE, will take its cryptocurrency venture public by merging it with a special-purpose acquisition company, a deal that will further its goal of launching a consumer app for trading and making payments with digital assets. The venture, called Bakkt, is expected to have a valuation of $2.1 billion after completing the merger with VPC Impact Acquisition Holdings, VIH 58.31% the companies said on Monday.
/on.wsj.com/3s82RZY

‘Full-Blown Mania’: Stock Market Jackpot Bells Just Keep Ringing
Joanna Ossinger, Lu Wang, and Elena Popina – Bloomberg
Owning sound-alike stocks, lending for Bitcoin are paying out; Waves of bullish options buying is the ever-present backdrop
Like a slot machine paying off on every pull, the stock market’s most reliable bets lately have often been its riskiest. Go long a company that sounds like something Elon Musk mentioned in a tweet (but wasn’t)? Signal Advance Inc. just soared 12-fold. Lend money to a software maker to buy Bitcoin? A Microstrategy Inc. convertible bond is up 50% in four weeks (its option is in the money). Back up the truck on bullish options after the Nasdaq 100 doubled in 24 months? Wednesday was the fourth-busiest day ever for call trading in the U.S. (the other three were last year).
/bloom.bg/3q6MhrG

Libor Proving Hard to Kill in $200 Trillion Derivatives Market
Alex Harris and William Shaw – Bloomberg
Shift away from swaps, futures tied to key rate is slow going; Some see significant gains for SOFR benchmark usage in 2021
It’s one of the most confounding questions facing regulators in the fight to phase out the London interbank offered rate. How do you wean everyone from asset managers and traders to corporate treasurers off derivatives that are so ubiquitous, they’ve become part of the fabric of the financial system? For the better part of three years, U.S. officials have been preaching patience. Libor-based interest-rate swaps, futures and options, among the most liquid markets in the world, would gradually give way to new securities tied to new benchmarks, they said, including the Secured Overnight Financing Rate, dollar Libor’s anointed successor.
/bloom.bg/3sbEV85

Capitol Riot Prompts Some Big Banks and Companies to Pause Political Funding; JPMorgan and Citigroup to halt all PAC donations; Blue Cross and Marriott pause funding to Republicans who objected to Electoral College results
Emily Glazer, Theo Francis and Chip Cutter – WSJ
Two of the biggest U.S. banks and other corporations said they are pausing or reviewing their political action committee donations in the wake of last week’s riot at the Capitol. JPMorgan Chase & Co. and Citigroup Inc. said they are pausing all PAC donations to Republicans and Democrats in the coming months. Other companies, including the Blue Cross Blue Shield insurance group and Marriott International Inc., said they would pause donations to Republican lawmakers who objected to President-elect Joe Biden’s Electoral College win after supporters of President Trump stormed the Capitol on Wednesday.
/on.wsj.com/3sdBXA2

Money Walks; Corporate America is rethinking its political donations.
Andrew Ross Sorkin, Jason Karaian, Michael J. de la Merced, Lauren Hirsch and Ephrat Livni – NY Times
Big businesses often donate to both political parties and say that their support is tied to narrow issues of specific interest to their industries. That became increasingly fraught last week, after a pro-Trump mob stormed the Capitol and some Republican lawmakers tried to overturn Joe Biden’s win in the presidential election. A flurry of companies have since reviewed political giving via their corporate political action committees.
/nyti.ms/35w4gQl

City of London’s Plight Laid Bare as Brexit Deal Hopes Fade
Silla Brush, Harry Wilson, and Viren Vaghela – Bloomberg
Securing equivalence conflicts with moves to set own rules; U.K. to lift trading ban on Swiss shares in the first quarter
Just over a week in, the City of London is coming to a hardening realization about its post-Brexit future: a financial services accord with the European Union may be too little, too late to protect its dominant position. Negotiations are set to kick off soon to determine the outlines of regulatory co-operation between the U.K. and EU, after the industry was largely sidelined in the trade deal that marked Britain’s split from the EU on Dec. 31. A March deadline has been set and so far details — including who will head up the discussions — are scarce.
/bloom.bg/39k49Zj

Blacklisting of Chinese Stocks Prompts Banks to Delist Hundreds of Derivatives; Goldman Sachs, JPMorgan Chase, Morgan Stanley say warrants and callable bull/bear contracts, will be suspended from trading Jan. 25
Chong Koh Ping – WSJ
Goldman Sachs GS -0.54% Group Inc., JPMorgan Chase JPM 0.11% & Co. and Morgan Stanley MS 0.41% moved to delist hundreds of derivatives traded in Hong Kong, following a U.S. government ban on American investment in companies considered to be helping China’s military.
/on.wsj.com/3bzsVrj

U.S. Capitol siege a ‘wake-up call’ for democracies, top EU diplomat says
Kate Abnett – Reuters
The European Union’s top diplomat said on Sunday that last week’s siege of the U.S. Capitol exposed the dangers of allowing the degradation of democratic values to go unchecked and disinformation to spread on social media.
/yhoo.it/3sffQJC

China’s Pig Futures Sink on Debut After Long-Awaited Listing
Alfred Cang – Bloomberg
Contract to help hedge against swings caused by swine fever; Dalian exchange has taken steps to avoid trading frenzies
China’s live hog futures tumbled on their first trading day after a hotly anticipated debut as the industry looks for a safeguard against wild swings triggered by one of the world’s worst animal disease outbreaks.
/bloom.bg/35oCPba

London lost a chunk of European stock trading this week. What will it lose next?
John Detrixhe – Quartz
When the UK’s Brexit transition agreement with the EU expired this week, some EUR6 billion ($7 billion) of daily trading in EU stocks left London overnight for markets across the Channel. The question is whether this was a one-time hit or a sign that even bigger chunks of the financial sector will disappear.
/bit.ly/3hXvKn8

Economist Nellie Liang Is a Leading Contender for Senior Treasury Post; Liang, who specialized in financial stability during her career at the Fed, is being considered for the position of undersecretary for domestic finance
Nick Timiraos – WSJ
Nellie Liang, an economist who specialized in financial stability during her career at the Federal Reserve, is a leading contender for a senior post in the Biden administration’s Treasury Department, according to people familiar with the matter.
/on.wsj.com/35vzPdc

Coronavirus

WHO Expert Team to Visit China on Jan. 14 to Probe Origins of Virus
Bloomberg News
China says WHO team to arrive Jan. 14; work with local experts; Unclear if the scientific team will be allowed to visit Wuhan
China said that a World Health Organization team of experts will arrive this week to investigate the origins of the coronavirus, after the country was criticized by the health body and other nations for a lack of transparency around tracking the pathogen’s source.
/bloom.bg/39kOw3U

England at risk of health emergency, chief medical officer warns; Chris Whitty says NHS will be overwhelmed unless people obey lockdown rules
George Parker and Jim Pickard – FT
Chris Whitty, England’s chief medical officer, has warned that the nation is facing a health emergency unless people obey the new lockdown rules, as seven mass vaccination centres prepare to open this week to tackle Covid-19.
/on.ft.com/35xEKKK

Number of UK vaccination mega-centres to be expanded sevenfold; Prime minister wants 50 sites to be operating as soon as possible, Whitehall insiders say
Jim Pickard, Sebastian Payne and Anna Gross – FT
The number of UK vaccination “mega-centres” at locations such as sports stadiums and conference halls will be increased sevenfold in the coming weeks under plans being drawn up by the government.
/on.ft.com/39kGRCv

Vaccine makers prepare for game of Covid cat and mouse; Manufacturers and regulators need to be ready if shots prove less effective against any new variant
Hannah Kuchler – FT
Vaccine makers and medicine regulators are sketching out plans in case the mutating coronavirus turns vaccine development into a game of cat and mouse.
/on.ft.com/39jpXnS

Algorithms and the coronavirus pandemic; Backlash grows over governments’ use of automated decision making tools
Siddharth Venkataramakrishnan – FT
“This year we are going to put our trust in teachers rather than algorithms,” Gavin Williamson, the British education secretary, announced on Wednesday. The government is eager to avoid a repeat of last year’s fiasco over exams in England’s schools. With tests cancelled because of the disruption caused by coronavirus, Ofqual, the government department in charge of examinations, had created an algorithm which was meant to stop grade inflation by standardising teachers’ assessed grades.
/on.ft.com/35uvRBw

Cut the vaccine red tape but keep the checks and balances; During the pandemic executives have thrilled at the speed they can move after discarding old bureaucratic habits
Andrew Hill – FT
Michael Rosen, the children’s author, spent weeks on a ventilator during the first phase of coronavirus last year, emerging weakened, disabled, but alive. While he was in an induced coma, medical staff and technicians were racing to produce better ways to help Covid-hit patients.
/on.ft.com/2LcrhB7

The attack on the Capitol may have also been a superspreader event; Lawmakers may have been exposed to the coronavirus during Wednesday’s riot.
Cameron Peters – VOX
Congress’s attending physician warned House members on Sunday that they may have been exposed to the coronavirus last week, after evacuating from the House chamber when pro-Trump insurrectionists stormed the US Capitol.
/bit.ly/3q7Nnn1

Japan Says It Found New Coronavirus Variant Similar to U.K. Strain
Shoko Oda – Bloomberg
New variant has similarities to U.K., South Africa strains; Japan’s authorities investigating infectiousness of new strain
Japan’s National Institute of Infectious Diseases said authorities have found a new strain of the coronavirus in four passengers arriving from Brazil. The new variant has similarities to strains found in the U.K. and South Africa, the NIID said in a statement on Sunday. The information about the new variant is limited to its genetic make-up, and it’s difficult to immediately determine how infectious the strain is or the effectiveness of current vaccines against it, the institute said.
/bloom.bg/2MLbbyA

Exchanges, OTC and Clearing

CME Eurodollars Retain Crown As Most Traded Futures Contract By Notional Value – CME’s Eurodollar Is 2020’s Most Active Futures Contract By Notional Value Of Contracts Traded, Even As Equity Index Futures Soar In Popularity
MondoVisione
CME’s Eurodollar future retained its place as the world’s most traded contract by notional value of contracts traded last year despite a slump in trading in the third quarter, a report by COEX Partners has found.
bit.ly/2HVHUvv

Annual verification of Due Diligence of Eurex Deutschland Exchange Participants; Eurex Circular 003/21 Annual verification of Due Diligence of Eurex Deutschland Exchange Participants
Eurex
Eurex Deutschland needs to verify that all exchange participants are compliant with the admission criteria of Eurex Deutschland on an annual basis.
/bit.ly/2XutwlF

HQLAx closes EUR 14.4 million Series B financing from BNY Mellon, Goldman Sachs, BNP Paribas Securities Services, Citigroup and shareholders Deutsche Börse
Deutsche Börse Group
HQLA x has successfully completed a strategic investment round of EUR 14.4 million. This was carried out under the direction of BNY Mellon, Goldman Sachs, BNP Paribas Securities Services and Citigroup and with the participation of Deutsche Börse Group as a long-term strategic partner. The funding is an important step for the HQLA x platform to move closer to its goal of helping the industry overcome fragmented collateral pools in Europe. To this end, networking with leading triparty agents, depositaries and market participants is being expanded.
/bit.ly/2LG9F0l

LCH achieves strong volumes in 2020
LCH
Services demonstrated operational resilience throughout unprecedented market conditions; Continued to deliver innovations including launch of new products and services; Continued leadership on global reference rate reform
LCH, a leading global clearing house, today announced that its services continued to demonstrate operational resilience, delivering strong volumes throughout 2020. LCH also continued to support global regulatory reform of reference rates and launched a number of new products and services to support effective risk management and capital efficiencies.
/bit.ly/3i5K4do

ICE Benchmark Administration Launches ICE Term SONIA Reference Rates as a Benchmark for Use in Financial Instruments
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announces that ICE Benchmark Administration Limited (IBA) has today launched its ICE Term SONIA Reference Rates as a benchmark for use in financial instruments by licensees.
/bit.ly/38A328w

Intercontinental Exchange Announces Bakkt to Become a Publicly Traded Company via Merger with VPC Impact Acquisition Holdings
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announced that Bakkt Holdings, LLC (“Bakkt”), the transformative digital asset marketplace launched in 2018 by ICE and a marquee group of investors and strategic partners, has entered into a definitive agreement to combine with VPC Impact Acquisition Holdings (NASDAQ: VIH), a special purpose acquisition company sponsored by Victory Park Capital (“VPC”).
/bit.ly/3oDoX4r

New Product Summary: Initial Listing of the Japan Crude Cocktail (Detailed) Yen Denominated Futures and the LNG Japan/Korea Marker (Platts) Yen Denominated Futures Contracts – Effective: February 8, 2021
CME Group
Initial Listing of the Japan Crude Cocktail (Detailed) Yen Denominated Futures and the LNG Japan/Korea Marker (Platts) Yen Denominated Futures Contracts.
/bit.ly/3i4DyDK

New Product Summary: Initial Listing of Four (4) Japanese Electricity Futures Contracts – Effective: February 8, 2021
CME Group
Initial Listing of Four (4) Japanese Electricity Futures Contracts.
/bit.ly/38ytJe3

Retiring of Legacy Collateral Inventory Report – Effective: February 22, 2021
CME Group
CME Clearing produces 3 different collateral inventory reports and they are made available to Clearing Members at the completion of each settlement cycle. Effective February 22, 2021 the legacy file with filename ‘CmeEodCollat[CMF].csv’ will no longer be produced. Going forward, Clearing Members can use either the CAI500 Asset Inventory Trial Balance report available on EREP or the Collateral On Deposit report published in each Clearing Member’s directory on the Clearing Member SFTP server.
/bit.ly/2LGaG8F

Opening remarks by Tan Boon Gin, CEO of SGX RegCo, at the 2H FY2021 media briefing
SGX
1. Good afternoon and Happy New Year!
2. You may recall that when I first joined SGX, I spoke about what the ideal market should look like from the regulator’s perspective.
/bit.ly/3oB9Fgu

SGX reports market statistics for December 2020
SGX
Investor demand for ETFs grows in 2020; Highest monthly volume of commodity derivatives traded since March 2020
Singapore Exchange (SGX) today released its market statistics for December 2020. The rollout of COVID-19 vaccines in major economies bolstered optimism of a global recovery, while exchange-traded funds (ETF) were a bright spark for the year, reflecting broadening investor demand for convenient and cost-effective index exposure.
/bit.ly/2LdAxVG

Fintech

Goldman Sachs eyes growth in cash management technology; Finance chief Stephen Scherr says a tool the bank built to solve a problem of its own is now being marketed to third parties
Laura Noonan – FT
For more than five years Goldman Sachs has been recasting itself as a technology company as well as a bank, so it is little surprise that Stephen Scherr, chief financial officer, sees tech as core to his professional objectives.
/on.ft.com/35vwydJ

IHS Markit expands regulatory reporting offering with Cappitech acquisition; The two firms have collaborated since 2019 when IHS Markit selected Cappitech’s platform for its securities financing transactions regulation (SFTR) solution.
Annabel Smith – The Trade
Data and analytics provider IHS Markit has expanded its regulatory reporting offering with the acquisition of compliance technology firm Cappitech.
/bit.ly/35vzmHN

Cryptocurrencies

Bitcoin’s Biggest Plunge Since March Shakes Faith in Crypto Boom
Eric Lam – Bloomberg
The cryptocurrency pared losses after a sharp tumble; Renewed price volatility evokes memories of 2017 bubble
A steep selloff in Bitcoin is fueling concern that the cryptocurrency bubble may be about to burst. Bitcoin slid as much as 21% over Sunday and Monday in the biggest two-day slide since March. While the digital token recovered some of the losses during the European session, it was still down for the day.
/bloom.bg/3q6j2oQ

JPMorgan Strategists Say U.S. ETF Could Sap Bitcoin Price
Joanna Ossinger – Bloomberg
Strategists mull implications if Bitcoin ETF gets green light; They say such a fund could impact the linchpin Grayscale trust
U.S. approval of a Bitcoin exchange-traded fund could weigh on the digital coin’s price in the short term, according to JPMorgan Chase & Co. That’s because competition from such a vehicle could spark outflows from the Grayscale Bitcoin Trust, the world’s largest traded cryptocurrency fund. The ETF would erode the Grayscale trust’s effective monopoly, sparking outflows and a slide in its premium to net asset value — which in turn could hurt Bitcoin’s price, strategists led by Nikolaos Panigirtzoglou wrote in a note.
/bloom.bg/3q6O4Nq

Morgan Stanley Unit Boosts Stake in Bitcoin-Loving MicroStrategy
Joanna Ossinger – Bloomberg
Morgan Stanley’s investment management arm boosted a stake in Bitcoin vehicle MicroStrategy Inc. to more than 10% late last year. The bank unit held 792,627 shares of MicroStrategy by the end of December, according to a filing with the U.S. Securities and Exchange Commission on Friday. The 10.9% stake had a value of roughly $420 million based on the day’s closing price.
/bloom.bg/3sejB1J

Crypto industry fears impact of proposed Treasury rule; Critics warn US requirement on policing digital currencies is ‘midnight rulemaking’ and would hurt privacy rights
Miles Kruppa and Hannah Murphy – FT
A planned new US Treasury rule aimed at stamping out illicit cryptocurrency transactions has drawn strong opposition from the industry, setting up a battle that threatens to cast a shadow over the recent digital currency boom.
/on.ft.com/3semVtJ

U.K. Regulator Warns Crypto Investors Risk Losing ‘All Their Money’
Tom Metcalf – Bloomberg
The U.K.’s financial watchdog has a stark warning for consumers looking to profit from the latest crypto boom: be ready to lose everything. “Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money,” the Financial Conduct Authority said in a statement Monday. “If consumers invest in these types of product, they should be prepared to lose all their money.”
bloom.bg/39AZLp9

Block.one CTO Daniel Larimer announces resignation
Frank Chaparro – The Block
Daniel Larimer, the chief technology officer of crypto project Block.one, announced his resignation on Sunday. In a blog post, Larimer said that he resigned from the project at the end of last year, noting that “all good things must come to an end.” Block.one, which is the firm behind the EOS blockchain, raised $4 billion to build out a rival to Ethereum. Larimer has been with the company since April 2017. “I will continue on my mission to create free market, voluntary solutions for securing life, liberty, property, and justice for all,” Larimer wrote. “I do not know exactly what is next, but I am leaning toward building more censorship resistant technologies.”
bit.ly/3oubiwx

Chinese Bank Trials Digital Yuan Services at ATMs: Report
Tanzeel Akhtar – Coindesk
The Agricultural Bank of China is said to have enabled a number of ATMs around the city of Shenzhen to offer trial services for the digital yuan. AgBank, one of the “big four” Chinese banks, is allowing customers to deposit and withdraw digital yuan to or from their current or savings accounts, according to a report from Shenzhen Daily on Sunday. The news comes as Shenzhen is holding its second digital currency lottery – a public trial that is giving away 20 million digital yuan (worth around $3 million). According to the report, AgBank is establishing an office dedicated to innovation around the digital yuan in Shenzhen.
bit.ly/2Xu8wvh

Revolut Applies for U.K. Banking License
Stefania Spezzati – Bloomberg
Revolut Ltd., one of Europe’s largest startups, has asked U.K. regulators for a full banking license to fuel expansion beyond its fintech roots. The license would enable Revolut to offer overdrafts, loans and deposit accounts, it said in a statement Monday. The firm would also be covered by the U.K.’s Financial Services Compensation Scheme, which protects customer deposits of 85,000 pounds ($114,700) or below if a business goes bust. Launched in 2015 by Nikolay Storonsky, Revolut offers a growing number of services through its app, including a prepaid debit card with no overseas transaction fees, foreign currency transfers, budgeting tools and cryptocurrency trading. The company was valued at $5.5 billion in a private fundraising round last year.
bloom.bg/3i3sfLP

Intercontinental Exchange’s Cryptocurrency Venture to Go Public Through a SPAC
Alexander Osipovich – WSJ
Intercontinental Exchange Inc., or ICE, will take its cryptocurrency venture public by merging it with a special-purpose acquisition company, a deal that will further its goal of launching a consumer app for trading and making payments with digital assets. The venture, called Bakkt, is expected to have a valuation of $2.1 billion after completing the merger with VPC Impact Acquisition Holdings, the companies said on Monday. The deal brings together two of the hottest plays in today’s markets: crypto and SPACs. Bitcoin, the biggest digital currency, last week surged above $40,000 for the first time, and SPACs had their biggest year ever in 2020, raising a record $83 billion in new listings, according to data provider SPACInsider. SPACs, also called blank-check companies, are vehicles that go public to raise cash for mergers and acquisitions.
on.wsj.com/2XvVcqo

NYDIG acquires Digital Assets Data as crypto M&A looks poised to pick up
Frank Chaparro – The Block
Bitcoin custody and trading services provider NYDIG announced Monday that it has acquired crypto data firm Digital Assets Data ahead of a bigger push to expand its platform. NYDIG is not as well-known as some more retail facing exchanges like Coinbase or Kraken, but the firm counts more than $4 billion in assets under management and operates a business that spans prime brokerage, corporate treasury, and custody services, as per its website. NYDIG made headlines in December when insurance giant Mass Mutual said that it had invested $5 million in the company, and utilized NYDIG services to acquire $100 million worth of bitcoin for its general insurance account. Digital Assets Data has raised more than $9 million from venture investors, including Morgan Creek Digital, Digital Currency Group, and North Island. In 2020, the firm’s co-founder and chief operating officer—Kurt Fenstermacher—departed the firm, according to his LinkedIn.
bit.ly/2XI28kt

December trading volumes for Bitcoin futures and options surpassed the previous month’s all time highs
MK Manoylov – The Block
In 2020, December eclipsed November for all-time highs in bitcoin future and options trading volumes, according to data organized by The Block. Bitcoin futures trading volumes reached $1.06 trillion in December, increasing 21.6% from November. Binance had the most futures trading volume for bitcoin at 27.9%, followed by Huobi (22.8%) and OKEx (15.4%).
bit.ly/3sdcDdm

Bitcoin Plummets as Miners Sell Inventory, Spot Markets Panic
Omkar Godbole – Coindesk
Bitcoin fell sharply early on Monday, having failed to establish a foothold above $40,000 over the weekend. Over the last 24 hours, the cryptocurrency declined by more than $8,000 to $32,400, an over 20% fall from levels over $40,800 late on Sunday (UTC). The cryptocurrency was last seen changing hands up slightly near $35,380 – still down 13.6% on a 24-hour basis.
/bit.ly/3q7N2kf

Politics

Democrats Eye Fast Trump Impeachment Days Before Biden Sworn In
Billy House and Steven T. Dennis – Bloomberg
Pelosi says House will vote to impeach Trump unless Pence acts; Speaker says ‘urgency’ required after storming of Capitol
House Speaker Nancy Pelosi is readying Democrats for a lightning-fast second impeachment of President Donald Trump this week that risks consuming Congress in a bitter political fight just as President-elect Joe Biden’s administration is attempting to get off the ground.
/bloom.bg/39p9ZZk

Goldman, JPMorgan, Citi Suspend Political Donations
Yueqi Yang and Sridhar Natarajan – Bloomberg
Marriott severs ties with GOP senators who objected results; Other corporations said to be reviewing contribution policies
Goldman Sachs Group Inc., Citigroup Inc., Morgan Stanley and JPMorgan Chase & Co. plan to pause all political contributions, joining a growing list of companies changing or reviewing their donation policies in the aftermath of riots at the Capitol in the past week.
/bloom.bg/35sjqWO

US senators balk at Trump impeachment over Capitol siege; More Republicans call for president to stand down but decline to back Democratic efforts to impeach him
Kiran Stacey – FT
A push by Democrats in Congress to impeach Donald Trump for a second time is running into resistance in the US Senate, with senior lawmakers on both sides of the aisle voicing their opposition.
/on.ft.com/35vt7Un

Bitcoin has ambitions for gold’s role; After years of hostility to cryptocurrencies, central banks will permit them a limited role
Gavyn Davies – FT
Investors in bitcoin and other cryptocurrencies have enjoyed a phenomenal run, but they are now worried that Janet Yellen’s arrival as US Treasury secretary may herald a new era of hostility from regulators and central banks towards what boosters call “libertarian” forms of digital money.
/on.ft.com/3sh8bdu

Stripe Stops Processing Payments for Trump Campaign Website; Financial-technology company’s move follows last week’s riot at the Capitol
AnnaMaria Andriotis, Peter Rudegeair and Emily Glazer – WSJ
Stripe Inc. will no longer process payments for President Trump’s campaign website following last week’s riot at the Capitol, according to people familiar with the matter. The financial-technology company handles card payments for millions of online businesses and e-commerce platforms, including Mr. Trump’s campaign website and online fundraising apparatus. Stripe is cutting off the president’s campaign account for violating its policies against encouraging violence, the people said.
/on.wsj.com/3sd3JfW

New York Gets Boost With Sen. Chuck Schumer’s Rise to Majority Leader; Position will give Brooklyn Democrat the ability to steer funding and push policies that are of local concern
Jimmy Vielkind – WSJ
Leaders in business, labor and government across New York are cheering U.S. Sen. Chuck Schumer’s coming elevation to majority leader after Democrats won two runoff elections in Georgia. Mr. Schumer, a 70-year-old Brooklyn Democrat, first won elected office in 1974 and was elected to the Senate in 1998. He will become the first New Yorker to serve as U.S. Senate majority leader later this month.
/on.wsj.com/35xez6G

TikTok banned Trump before Trump could ban TikTok
Fortune
/bit.ly/2LfrAeu

Merkel’s Party Must Finally Settle on a New Leader and Is Torn
Arne Delfs and Raymond Colitt – Bloomberg
Three lackluster candidates are vying to lead Germany’s CDU; Party’s turbulence stems from a succession plan that failed
Angela Merkel has been a pillar of stability for Germany and the western world for the better part of two decades, but the party that kept her in charge of Europe’s biggest economy is grappling with the power vacuum she’s leaving behind.
/bloom.bg/2MKIcuK

Can Twitter Survive Banning Donald Trump? The social media platform and its rivals are right to banish the president, but it makes Twitter’s future decidedly more complicated.
Tae Kim – Bloomberg
Twitter Inc. has done something that was once thought unimaginable. It shut down one of its biggest attractions — Donald Trump’s account — and in doing so also canceled a sitting U.S. president.
/bloom.bg/2Lp88vN

Bans on Parler and Trump Show Big Tech’s Power Over Web Conversation
Sarah Frier – Bloomberg
Google, Apple, Amazon pull tech support for rogue social app; Downloads had surged after president was kicked off Twitter
As Facebook Inc. and Twitter Inc. banished users and groups supporting the violent mobs at the U.S. Capitol last week — including President Donald Trump himself — downloads surged for a less restrictive social media app called Parler. But in an effort to prevent further riot organizing, Google Inc. and Apple Inc. booted Parler from their app stores, and Amazon.com Inc. shut off its web services.
/bloom.bg/3bs8MmM

Schumer Warns of Potential for Additional Attacks by Extremist Groups
Sebastian Tong – Bloomberg
Senate Democratic Leader Chuck Schumer warned that extremist groups could be planning further attacks following their storming of the Capitol on Wednesday and called on the Federal Bureau of Investigation to remain on guard.
/bloom.bg/3bzGEOR

Billionaires Who Championed Trump Have Now Gone Largely Quiet
By Anders Melin and Devon Pendleton – Bloomberg
Of two-dozen wealthy Trump supporters, few had anything to say; Stephen Schwarzman, Ronald Lauder condemned the violence
They bankrolled Donald Trump. They applauded his tax cuts. They cheered as the stock market soared. Now, the sound coming from some of the president’s wealthiest donors is this: silence.
/bloom.bg/3sgJ8HN

Former Goldman Sachs CEO Lloyd Blankfein says Wall Street turned a blind eye to risks posed by Trump
Kevin Shalvey – Business insider
Lloyd Blankfein, the ex-chair and CEO of Goldman Sachs, has criticized Wall Street for turning a blind eye to the risks posed by a Donald Trump presidency, saying collectively we “put a clothespin on our nose.”
/bit.ly/39kgddc

Regulation

SEC Charges Deutsche Bank With FCPA Violations Related to Third-Party Intermediaries
SEC
The Securities and Exchange Commission today announced charges against Deutsche Bank AG for violations of the Foreign Corrupt Practices Act (FCPA). As part of coordinated resolutions with the SEC and the Department of Justice, Deutsche Bank has agreed to pay more than $120 million, which includes more than $43 million to settle the SEC’s charges. According to the SEC’s order, Deutsche Bank engaged foreign officials, their relatives, and their associates as third-party intermediaries, business development consultants, and finders to obtain and retain global business. The order finds that Deutsche Bank lacked sufficient internal accounting controls related to the use and payment of such intermediaries, resulting in approximately $7 million in bribe payments or payments for unknown, undocumented, or unauthorized services. The order further finds that these payments were inaccurately recorded as legitimate business expenses and involved invoices and documentation falsified by Deutsche Bank employees.
bit.ly/3hZ08NW

FINRA Board Appoints Deborah Bailey and Kathryn Ruemmler as Newest Governors
Ray Pellecchia – FINRA
The FINRA Board of Governors has appointed Deborah Bailey and Kathryn Ruemmler as new Governors. Bailey will serve as a public member, and Ruemmler as an industry member. Bailey is the former Managing Director with KPMG’s Financial Services Regulatory Practice, where she served as the U.S. and Global Leader for Regulatory Solutions Development. Prior to joining KPMG, she spent five years at Deloitte, where she launched and led a new practice that melded banking and securities into a single focus area. Prior to her consulting career, Bailey was Deputy Director of Bank Supervision and Regulation at the Federal Reserve and reported directly to Federal Reserve Chairman Ben Bernanke during and after the financial crisis, helping steer banking regulations and supervisory practices to restore confidence and maintain the health of the financial system.
bit.ly/3nCZvuy

FINRA Board Appoints Deborah Bailey and Kathryn Ruemmler as Newest Governors
FINRA
The FINRA Board of Governors has appointed Deborah Bailey and Kathryn Ruemmler as new Governors. Bailey will serve as a public member, and Ruemmler as an industry member.
/bit.ly/3nCZvuy

SEC Charges Deutsche Bank With FCPA Violations Related to Third-Party Intermediaries
SEC
The Securities and Exchange Commission today announced charges against Deutsche Bank AG for violations of the Foreign Corrupt Practices Act (FCPA). As part of coordinated resolutions with the SEC and the Department of Justice, Deutsche Bank has agreed to pay more than $120 million, which includes more than $43 million to settle the SEC’s charges.
/bit.ly/3hZ08NW

The final countdown: Completing sterling LIBOR transition by end-2021
UK FCA
After many years of preparation, 2021 is the critical year for firms to complete their transition away from LIBOR. The LIBOR administrator, ICE Benchmark Administration, is consulting on ceasing publication of all sterling LIBOR settings at the end of 2021, leaving just one year for firms to remove their remaining reliance on these benchmarks.
/bit.ly/3s9RdOt

Investing and Trading

The Hot Alternative Investments to Watch in 2021; Whisky, music and the great outdoors are just some of the other ways to put your money to work.
Edward Robinson, Charlie Wells – Bloomberg
Art, wine, jewelry, classic cars… These are the alternative assets affluent investors often buy when they want to diversify their holdings and have some fun collecting beautiful objects.
/bloom.bg/35ukKIQ

Elon Musk Debates How to Give Away World’s Biggest Fortune
Devon Pendleton and Ben Steverman – Bloomberg
Tesla CEO turns to Twitter for advice on how he should donate; Musk signed Giving Pledge but trails many other rich donors
Elon Musk is not only the world’s richest person, he lays claim to the biggest net worth ever recorded: $209.3 billion as of Friday. What he does with it will be closely watched.
/bloom.bg/3saUY66

Stock markets’ extreme valuation gaps divide veteran investors; Oaktree’s Howard Marks says valuation metrics unhelpful, after GMO’s Jeremy Grantham warns investors off tech stocks
Eric Platt and Katie Martin – FT
Two high-profile investors have offered differing strategies to deal with the dizzying valuation gap between growth stocks and beaten-up sectors: trust in bargains, or set aside traditional valuations.
/on.ft.com/3q2LKH8

Direct indexing allows investors to pick and mix; Fund management industry bets on new products that allow customisation but also broad market exposure
Billy Nauman
In the last two decades, consumers have learned to love customisation. Spotify playlists have supplanted CDs. Streaming video apps like Netflix are quickly doing the same to cable television. The question is whether this trend will hit the investment industry.
/on.ft.com/3sowuXg

Jim Bob Moffett, Co-Founder of Copper Giant Freeport, Dies at 82
Annie Lee – Bloomberg
Long-time Freeport chairman stepped down from role in 2015; Freeport mines include one of world’s top copper-gold deposits
James Robert “Jim Bob” Moffett, the former chairman and chief executive officer of Freeport-McMoRan Inc., has died. He was 82. No cause was given in the statement released by the world’s largest listed copper producer.
/bloom.bg/3q7RShf

Young American Adults Top $10 Trillion in Assets for First Time
Alexandre Tanzi – Bloomberg
But millennials also burdened by more than $4 trillion in debt; Younger Americans hold $800 billion in private-business equity
Despite the pandemic-induced recession of 2020, America’s young adults doubled their assets over the past four years, new data from the Federal Reserve show.
/bloom.bg/3bpL0rH

The ‘Small-Cap Effect’ Isn’t Dead, After All; New research finds that the tendency of smaller stocks to outperform large-caps over time still exists, but almost exclusively within the S&P 500 itself
Mark Hulbert – WSJ
Contrary to reports in recent years that the small-cap effect has disappeared, it’s actually alive and well. We’ve just been looking for it in all the wrong places.
/on.wsj.com/2MVu7eb

Environmental, Social and Corporate Governance

Prince of Wales to Unveil Earth Charter to Boost Green Business
Stuart Biggs – Bloomberg
Prince Charles to give speech to One Planet Summit on Monday; Aim to encourage companies to commit to sustainable future
The Prince of Wales will unveil a “Terra Carta” or Earth Charter to give businesses a roadmap to move to a sustainable future by 2030.
/bloom.bg/2MIkW0r

Shell case puts spotlight on energy groups’ role in climate change; If successful, the legal action in the Netherlands could force companies to accelerate the shift to cleaner fuels
Anjli Raval – FT
It is five years since the Netherlands lost a court action forcing it to cut its greenhouse gas emissions. It was the first time a government had been compelled by law to take action on climate change and was upheld by an appeals court in 2019, meaning that Dutch authorities have to reduce emissions by 25 per cent compared with 1990 levels.
/on.ft.com/39i9BMs

IEA chief: Net zero by 2050 plan for energy sector is coming; Global tracking and accountability will be required to address climate change
Fatih Birol – FT
Our climate challenge is an energy challenge. The energy that powers our daily lives produces three-quarters of global emissions. Making all of that energy carbon-neutral by 2050 is a Herculean undertaking for our economies and societies that goes well beyond simply setting long-range targets.
/on.ft.com/35uc05E

US climate finance is approaching a leapfrog moment; This year will be a chance to take global leadership of the issue with an American approach
Sarah Bloom Raskin – FT
The US has long been criticised for lagging behind the rest of the world on tackling climate change. But with the Federal Reserve having recently joined other central banks to support the Paris climate goals and an engaged new administration on the horizon, 2021 could be a chance for the US to leapfrog into global leadership by embracing the potential of America’s complex financial regulatory system.
/on.ft.com/35rMNsw

A guide to making climate-friendly investment returns; Useful primer on how to take some personal control over where you put your money
Stephen Jones – FT
What is not to like about a digestible 200-page book that offers the reader power to “help to combat climate change and feel a sense of control in an uncertain world”? When I cannot even get my local council to deliver the special bags required to take away the recycling generated by a family of five living in London under severe Covid restrictions, power is what I need.
/on.ft.com/39ARG3N

State Street to insist companies disclose diversity data; Asset manager will vote against those who do not reveal racial and ethnic make-up of boards
Billy Nauman – FT
State Street’s $3.1tn investment arm will start voting against directors of big companies that fail to disclose the racial and ethnic make-up of their boards, a move that will increase the mounting pressure on corporations to diversify their leadership.
/on.ft.com/35uEUlS

HSBC targeted by shareholders over fossil fuel financing; Investors file resolution demanding bank publishes strategy and targets
Attracta Mooney and Stephen Morris – FT
HSBC is under fire for financing the fossil fuel industry after a group of investors including Amundi and Man Group filed a climate resolution ahead of the bank’s annual meeting in April.
/on.ft.com/3btCY0Y

Institutions

Investors warm to US bank stocks in 2021; Sector has lagged well behind broader market in recent years, but vaccines era has delivered support
Robert Armstrong – FT
Bank stocks, stuck in the investment doghouse for years, are back in favour, gaining further support after Senate run-off races last week that flipped control to the Democratic party.
/on.ft.com/3q9attA

One in 20 ETFs axed in 2020 after failing to build scale; Issuers’ appetite for new launches meant the total number of funds still grew by 318
Steve Johnson – FT
More than one in 20 exchange traded funds were axed last year as surging inflows failed to lift all boats, but issuers’ enthusiasm for new launches remained undimmed.
/on.ft.com/35vh7T0

US banks to delist hundreds of HK-listed products under Trump rules; Goldman Sachs, JPMorgan and Morgan Stanley among groups reacting to executive order on China investment
Colby Smith and Thomas Hale – FT
JPMorgan, Morgan Stanley and Goldman Sachs are set to delist 500 structured products listed on Hong Kong’s stock exchange, as the fallout from President Donald Trump’s executive order barring investment in companies with alleged links to China’s military widens.
/on.ft.com/2Ln4pyD

Regions

U.K. Urged to Act Fast to Save 250,000 Small Firms in Pandemic
Stuart Biggs – Bloomberg
Business lobby group says more support needed in new lockdown; Warning comes as U.K. economy heads for double-dip recession
At least 250,000 small companies in the U.K. are set to close in 2021 unless the government provides more assistance, threatening a further blow to an economy heading for a double-dip recession.
/bloom.bg/39p06L8

China Has a Huge Wealth-Gap Problem — and It’s Getting Worse
Sharon Chen – Bloomberg
China’s economy could become the world’s biggest within the decade. It’s also one of the most unequal — a problem only made worse by the pandemic. For the majority of people in China who aren’t born into the elite, it’s becoming harder to climb the social ladder. As is often the case when countries develop, the rich can give their children a leg up using two common pathways to upward mobility: education and property ownership.
/bloom.bg/35twKu9

China Plans to Let Banks Sell Soured Personal Loans to Ease Risks
Bloomberg News
Trial program may start as soon as this month: people; Non-performing personal loans estimated at 1 trillion yuan
China plans to allow some commercial banks to start selling soured personal loans to distressed asset managers as soon as this month, according to people familiar with the matter.
/bloom.bg/2MKppQe

Canary Wharf: does the east London office district have a future? Hub faces test of being able to adapt as pandemic threatens to cut employees’ ties to the workplace
George Hammond – FT
Before the November lockdown in England, things were looking up for Canary Wharf. Up to a fifth of the 120,000 employees who work in the east London office district were travelling in each day, propping up local food and retail businesses and stoking optimism about a steady return to work.
/on.ft.com/3bznAAh

Pork prices climb in Taiwan after shoppers reject US imports; Tsai Ing-wen’s attempt to secure trade deal has been upended by fears over feed additive
Kathrin Hille – FT
Taiwanese consumers are turning away from imported pork, driving up prices and frustrating meat producers’ hopes that the liberalisation of the country’s pork market would offer new opportunities for US suppliers.
/on.ft.com/39n0f1W

China will vie to become world financial centre, says Ray Dalio; Bridgewater founder calls 2020 a ‘defining year’ for country’s financial markets
Robin Wigglesworth – FT
China will emerge as a rival to New York and London as the world’s financial centre, according to Bridgewater founder Ray Dalio, who is betting heavily on what would be an epochal shift in the global economy.
/on.ft.com/39pSY1r

Cold Snap Sparks Record Rise in Natural Gas Prices in Asia; Traders are struggling to secure enough vessels to transport LNG from the U.S. Gulf Coast to Asia in time to meet rampant demand
Natural-gas prices since the end of 2019
Joe Wallace – WSJ
A blast of cold weather in northeast Asia and a shortage of ships for transporting gas have sparked a scramble for cargoes of liquefied natural gas, igniting a steep rise in prices. Prices for LNG shipped to China, Japan and South Korea, all major importers, have surged from record lows to all-time highs in less than a year. The regional price benchmark assessed by S&P Global Platts rose to $21.453 per million British thermal units on Friday, and has shot up 42% so far in 2021.
/on.wsj.com/35usKJS

U.K. to Lift Swiss Share-Trading Ban Following Brexit
Leonard Kehnscherper – Bloomberg
The U.K. is set to reverse a ban on trading in Swiss shares following its exit from the European Union. The Treasury plans to put legislation to lawmakers in the coming days that will take effect three weeks later if approved, according to a spokesman. The story was first reported by the Financial Times. “Once in force, the Swiss State Secretariat for International Financial Matters have indicated they will reciprocate by removing restrictions on U.K. trading venues,” the spokesman said. The move has been expected. In September, the U.K. confirmed it would introduce the legislation as soon as its equivalence powers came into effect. Exchange operator Cboe Europe has said it’s planning to reintroduce Swiss-listed securities in the U.K. once British and Swiss mutual recognition is implemented.
bloom.bg/3qcaqgG

Are Tax-Efficient Funds Worth It? We crunched the numbers. The upshot: The returns may not be worth the tax savings.
Derek Horstmeyer – WSJ
Investors whose top concern is minimizing taxes often turn to “tax managed”—or “tax efficient”—mutual funds. But the returns they get may not be worth the tax savings. In recent research, we found that tax-managed funds underperformed similar funds that weren’t tax managed by about 0.09 percentage point a year on average, over the 10 years ended Dec. 1, 2020. That is largely due to the higher fees the tax-managed funds carry, but in many cases their managers also performed significantly worse than their peers at the other funds.
/on.wsj.com/39q8fiN

New Zealand central bank says its data system was breached
Reuters Staff
The Reserve Bank of New Zealand said on Sunday that it was responding with urgency to a breach of one of its data systems.
/reut.rs/3sgiBdq

Brexit

Brexit can mean London loses even if the EU doesn’t gain; Perversely, some City trading will be routed through Chicago or New York
Patrick Jenkins – FT
When he addressed 250 business leaders on a rah-rah Zoom call last week, Prime Minister Boris Johnson did his best to make up for past missteps. In a relentlessly upbeat 45 minutes, he went out of his way to convince those present that business sectors feeling neglected in the Brexit negotiations — particularly financial services — would be a future priority. Finance was an industry of strategic importance for the UK, he told them, and he was determined to champion it.
/on.ft.com/2LcqKPD

We may have avoided no-deal, but this is still Brexit tier 3
William Keegan – The Guardian
Donald Trump’s starring role in the storming of the Capitol on Wednesday marked a fitting end to the courtship of the US president by Boris Johnson. Just think: before the president lost convincingly to Joe Biden, our prime minister – a master of procrastination and prevarication – was holding out for a Trump victory and a world-beating UK-US trade deal, which might well have involved a no-deal Brexit. Johnson enthusiasts tell us what a brilliant tactic it was for the prime minister to take the negotiations with the EU to 11th hour, but the likelihood is that a deal of some sort was only decided on when the US option disappeared. As it is, the deal is most certainly thin, as described by Labour Leader Sir Keir Starmer: it does not cover the 80% of our economy accounted for by services, and involves massive increases in bureaucratic form-filling for businesses from manufacturers to road hauliers and wine merchants, not to mention British citizens in general. It particularly hurts the young, who are overwhelmingly against Brexit.
bit.ly/39kWkT5

Labour’s Starmer Rules Out Seeking to Renegotiate Brexit Deal
Stuart Biggs – Bloomberg
Britain’s opposition leader, Keir Starmer, said there’s no case for the U.K. to seek to rejoin the European Union and that his Labour Party won’t try to reintroduce the freedom of movement that was ended by Brexit. Speaking to the BBC on Sunday, Starmer reiterated his criticism of Prime Minister Boris Johnson’s “thin” trade agreement with the bloc and said his party voted for it to prevent the chaos of a no-deal divorce. A future Labour government would have to work within the terms of the treaty rather than try to reopen negotiations with the EU, he said. The comments reflect the juggling act facing Starmer, who campaigned for the U.K. to stay in the bloc and as Labour’s Brexit spokesman pledged to defend key aspects of EU membership including freedom of movement.
bloom.bg/3seIydv

Scottish nationalists demand billions in ‘Brexit compensation’ for Scotland
Reuters Staff
The pro-independence Scottish National Party (SNP) demanded on Sunday that Prime Minister Boris Johnson pay billions of pounds in compensation to Scotland for the mounting costs and disruption of Brexit. Brexit has strained the bonds that tie together the United Kingdom: England and Wales voted to leave but London, Northern Ireland and Scotland voted to stay. The SNP, which wants independence for Scotland and is pushing for a second referendum, said Scottish fishermen faced grave disruption due to Brexit. Johnson’s Conservatives “must apologise to Scottish businesses and pay compensation to Scotland for the long-term damage they are doing to our economy – costing us billions in lost trade and growth,” said Ian Blackford, the SNP’s leader in the British parliament.
reut.rs/39mW5qB

UN envoy: Britain is `gung ho’ about world role after Brexit
Edith M. Lederer – AP News
Britain’s new U.N. ambassador says the government is feeling “gung ho” about continuing its role as an important player on the world stage despite its exit from the European Union. Barbara Woodward pointed to the United Kingdom’s permanent seat on the powerful U.N. Security Council, its presidency this year of the Group of Seven major industrialized nations, its membership in the Group of 20 leading economic powers and NATO, and its hosting of the next United Nations global climate summit in Glasgow, Scotland, in November. “Don’t underestimate the power of the relationship with the EU,” she stressed in an interview with The Associated Press this past week. “There’s a lot of values and principles which we share with European partners which I think will stand us in good stead.”
bit.ly/3q9SJOF

Brexit UK should aim to be a global broker, not a great power, says report
Patrick Wintour – The Guardian
Britain will fail if it seeks to reincarnate itself after Brexit as a mini-great power, and should focus instead on being a global broker for solutions to specific challenges such as climate change, cybersecurity, global health and human rights, a major report has proposed. The report by Robin Niblett, the director general of Britain’s leading foreign policy thinktank Chatham House, coincides with the 75th anniversary of the first meeting of the UN general assembly in London. It also warns that the UK will be making a mistake if it seeks to set itself up as a rival to the European Union on foreign policy, since it will need EU cooperation to meet many objectives. Niblett urges the UK not to indulge in nostalgic fantasies about individual glory or Global Britain. “Britain will fail if it now tries to reincarnate itself as an independently influential miniature great power,” he writes. “It should focus instead on being an enabler of positive international outcomes.”
bit.ly/3q9SMtP

Brexit Drags U.K. Below U.S. in Global Business Location Ranking
Iain Rogers – Bloomberg
Britain is significantly less attractive as an international business location because of Brexit but remains well positioned compared with other major economies, according to a German study. The U.K. slipped behind the U.S. to second place in the latest ranking published by Germany’s Foundation for Family Businesses, though it remains ahead of the rest of its Group of Seven partners. Canada was fourth, followed by Germany in 17th, France in 18th, Japan in 20th and Italy in 21st and final spot. “Brexit has been a major liability for the U.K.,” the authors of the study wrote. “Future British governments have a long road ahead if they wish to regain its economic dynamism, as promised by Brexit advocates.”
bloom.bg/38ym9zZ

Understanding Brexit’s 20th-Century Roots; Brexiteers’ streak of patriotic superiority dates directly to 1945.
By Brooke Sample – Bloomberg
Britain has just completed the process of quitting the European Union, a major act of foreign policy that most of the world finds bewildering and considers ill-advised.
/bloom.bg/3seLl6s

Miscellaneous

PGA Cancels Agreement to Hold Championship at Trump’s Golf Club
Linus Chua – Bloomberg
The PGA of America said its board voted to terminate an agreement to host next year’s PGA Championship at a golf course owned by President Donald Trump in New Jersey. “It’s become clear that conducting the PGA championship at Trump Bedminster would be detrimental to the PGA of America brand and would put at risk the PGA’s ability to deliver our many programs and sustain the longevity of our mission,” Jim Richerson, PGA of America’s president, said in a video message.
/bloom.bg/35vdKLQ

Andy Haldane: Bring charities out of the technological dark ages; Incentives like a ‘digital civic passport’ can recognise voluntary action and encourage wider participation in civic service
Andy Haldane – FT
The Covid crisis has challenged every part of the economy, none more so than the charity sector. It has also challenged every individual in society, especially those already facing disadvantage.
/on.ft.com/39pQsbv

Is this the end of the wallet? An increasingly cashless society, combined with Covid-19, raises existential questions about the accessory
Jamie Waters – FT
When London went into lockdown last March, so did my beloved wallet: a perfectly lovely, palm-sized amalgam of buttery navy leather and neat white stitching courtesy of the Australian accessories brand Bellroy. It was parked in the top drawer of my bedside table. And there it has remained ever since.
/on.ft.com/3bpscsB

Charities set for £800m boost from expansion of UK dormant asset fund; Scheme will now include a range of financial products, not just unused bank and building accounts
Robert Wright – FT
Ministers expect more than £800m to be released to UK charities and other good causes under an expansion of a scheme that seizes money from dormant accounts.
/on.ft.com/3bFQw9R

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First Read $26,851/$300,000 (9.0%) Denise Knabjian ++++ Hits & Takes JLN Staff The U.S. has surpassed the 25 million Covid-19 infections level, according to data reported Sunday by Johns Hopkins University. JPX has signed a memorandum of understanding, or MOU,...

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