Wall Street Texting Habit Sticks Banks With Rare $1 Billion Bill

Jul 15, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

Today we have the complete interview Alex Teng conducted with Bill Brodsky for Episode 3 of Options Discovery. The version of the interview Alex included in Episode 3 was abridged and this is the whole interview.

The FIA has issued a Midyear Advocacy Update 2022. If only the news were more light hearted, they could have issued a Goodyear Midyear Advocacy Update.

The NFA’s Office of Professional Development announced the theme of ‘Master of Change’ for LinkedIn Learning’s monthly learning challenge. According to a NFA LinkedIn post, staff who watched “all the short videos covering the psychology of change and the importance of finding a personal voice were entered into a prize drawing.” The NFA post shared this thought on change: “Dealing with change can be challenging even in the best of times, but we can control how we deal with change by learning how to put it in proper context, creating perspective and ultimately becoming more resilient.”

Ian Meadows has started a new position as managing director of climate risk at IncubEx.

The next episode of the Smarter Markets Summer Playlist podcast presented by Abaxx and hosted by David Greely has guest Hannah Hauman, head of carbon trading at Trafigura, on July 16.

Nancy Laethem Stern, CEO and board member of Allston Holdings, was recently featured on the Aoifinn Devitt’s #fiftyfacesfocus podcast series.

Thomas McMahon of the AirCarbon Exchange (ACX) is the focus of an interview in KPMG 30 Voices 2030.

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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Complete Interview: Bill Brodsky talks options history, innovations and strategy with JLN’s Alex Teng
JohnLothianNews.com

In this video for The Spread, Alex Teng spoke with Bill Brodsky, an industry giant who led both the Chicago Mercantile Exchange and the Chicago Board Options Exchange (Cboe) during his long career.

Brodsky talked about growing up in New York City and following his father’s footsteps to Wall Street, where he became enamored of the stock market, and then buying a seat on the Cboe for $10,000 before it even opened. Eventually, a headhunter from Chicago asked him to run the CME – then called “the Merc” and he moved to Chicago and learned about futures. He later ran the Cboe for 16 years as CEO and then for several years as chairman.

Watch the video »

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How Bad Is the Omicron BA.5 Variant? Bad Enough; It’s not actually the “worst” one, but we can’t ignore it.
Mark Gongloff – Bloomberg
Night of the Living Covid
One silver lining of the interminable Covid pandemic is that it has revealed just how prepared humanity is for a zombie apocalypse. We’ve proven we can ignore any public-health menace provided it sticks around long enough.
/jlne.ws/3RBlXo8

***** I know too many people close to me with Covid. Yes, you should still be paying attention.~JJL

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Scorching Texas Weather Has Cattle Ranchers Selling Herds in ‘Panic Mode’
Michael Hirtzer – Bloomberg
Ranchers in top cattle state Texas can’t sell their herds fast enough with 100-degree Fahrenheit temperatures making it too expensive to sustain animals. Costs for feed, fertilizer and fuel have been soaring. There’s also a lack of water in the state, and little hay. That’s resulting in a firehouse of cattle getting auctioned at Texas sale barns. Emory Livestock Auction Inc., just over an hour’s drive east from Dallas, is seeing nearly quadruple normal rates with ranchers in “panic mode,” said Jack Robinson, an 83-year-old auctioneer.
/jlne.ws/3P9fTlh

*****When the steers are seared on the hoof, you know it is hot.~JJL

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ERCOT CEO says he did not expect it to be as hot as it is
Stephanie Whitfield – KHOU*11
People who have lived in Houston for a while expect hot summers, but this one has been next level. Now, the head of ERCOT has admitted to a Houston newspaper they did not expect it to be as hot as it is.
/jlne.ws/3zihAHD

****** There are a lot of air conditioners running in Houston.~JJL

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China Is Giving Off Strong Lehman Brothers Vibes; Xi keeps going missing, the economy is on the brink and people are getting restless.
Mark Gongloff – Bloomberg
An old myth is the idea of the Wasteland, about a kingdom falling into ruin due to the illness or moral depravity of its leader. It’s the basis for such entertainments as the Arthurian legends, T.S. Eliot’s most famous poem and the 1990 Steven Seagal vehicle “Marked for Death.” We’re not saying Xi Jinping is ill or morally depraved. But he did disappear from public view for nearly two weeks recently. This is normal behavior for, say, newsletter writers who live like late-era Howard Hughes, but doesn’t really meet the baseline expectation for leaders of modern countries, even authoritarian ones. Meanwhile, China is kind of falling apart.
/jlne.ws/3uQpkOp

***** Evoking Lehman vibes is the new way to get attention for financial calamity. Referring to a Steven Seagal movie is a sure-fire way of not getting attention.~JJL

***Putting Steven Seagal and T.S. Eliot in the same sentence is just weird.~SR

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Thursday’s Top Three
Our top story Thursday was John O’Brien mentored futures traders and expanded his family-owned brokerage, an obituary from The Chicago Sun-Times. Second was John Lothian’s video interview, Veteran Trader Joe Corona Shares His Best Week Trading Ever, part of JLN’s Open Outcry Traders History Project. Third was a tie between another JLN video, JLN Interviews Simplex Ceo Erik Swanson At OIC 2022, the final video in our JLN Industry Leader series from the conference, and the obituary for Jacqueline Todd Cashman from the Conboy-Westchester Funeral Home.

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MarketsWiki Stats
26,922 pages; 239,484 edits
MarketsWiki Statistics

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Lead Stories

Wall Street Texting Habit Sticks Banks With Rare $1 Billion Bill
Sridhar Natarajan, Katherine Doherty, Hannah Levitt and Matt Robinson – Bloomberg
Regulators are poised to extract about $1 billion in fines from the five biggest US investment banks for failing to monitor employees using unauthorized messaging apps. Morgan Stanley disclosed on Thursday that it expects to pay a $200 million fine, the same amount JPMorgan Chase & Co. paid as authorities use that settlement as a yardstick for the industry. Citigroup Inc., Goldman Sachs Group Inc. and Bank of America Corp. also have had advanced discussions with the regulators to each pay a similar figure, according to people with knowledge of the talks who asked not to be identified because the matter isn’t public.
/jlne.ws/3yFx1I5

JPMorgan Gold Trader Turned Whistle-Blower Lied to Authorities; Trader’s testimony key to US spoofing trial of bank managers; Defense lawyers seek to undermine credibility of John Edmonds
Eddie Spence – Bloomberg
When FBI agents knocked on the door of his Brooklyn, New York, home in August 2018, trader John Edmonds told them he didn’t know anything about gold and silver price manipulation at JPMorgan Chase & Co. That was a lie, he admitted Thursday. Edmonds, who worked at JPMorgan for about a decade, eventually pleaded guilty to conspiracy and commodities fraud and agreed to cooperate with prosecutors. He’s now a key government witness against his former boss, Michael Nowak, the longtime head of the precious-metals trading desk; gold trader Gregg Smith; and hedge funds salesman Jeffrey Ruffo.
/jlne.ws/3Pp9amE

Singapore’s Exposure to Energy Crisis Seen in Wild Price Spike; Wholesale electricity prices jumped to highest in a decade; Volatility presents more strain to beleaguered power retailers
Nicholas Swee Yang Lua – Bloomberg
A spike in Singapore’s wholesale electricity price to the highest level in a decade highlights the nation’s vulnerability to the global energy crisis, putting further strain on beleaguered power retailers. The cost of one megawatt-hour soared to S$4,499.93 ($3,207) for about 30 minutes on Monday night, more than 13 times the daily average. That’s just below the price cap of S$4,500, which was last reached in 2012, according to Energy Market Co., the market operator.
/jlne.ws/3RBKAkI

SEC scrutinises Elon Musk tweet over $44bn Twitter takeover bid; US securities regulator asks why Tesla chief did not notify investors before saying deal ‘cannot move forward’ over bots
Hannah Murphy – FT
The US Securities and Exchange Commission is examining a tweet by Elon Musk related to his $44bn takeover bid for Twitter, as scrutiny grows over his efforts to extricate himself from the deal. According to regulatory filings, SEC mergers and acquisitions officials sent Musk’s lawyers a letter about a May 17 tweet in which he said that his takeover of the social media company “cannot move forward”, citing concerns over the number of spam and fake accounts on the platform.
/jlne.ws/3aJOG9J

Celsius Owes Users More Than $4.7 Billion; CEO Alex Mashinsky said the cryptocurrency lender can partly cure its roughly $1.2 billion deficit using newly minted bitcoins
Soma Biswas and Vicky Ge Huang – WSJ
Celsius Network LLC has a roughly $1.2 billion hole in its balance sheet, with the majority of its liabilities owed to the cryptocurrency lender’s users, according to a Thursday filing by Chief Executive Alex Mashinsky. Of Celsius’s $5.5 billion in total liabilities, more than $4.7 billion is owed to Celsius’s users, according to the declaration Mr. Mashinsky submitted to bankruptcy court. Users deposited their cryptocurrencies on the platform in exchange for high yields, and Celsius lent out and invested user deposits. Celsius stopped all customer withdrawals a month before it filed for bankruptcy, finding that as the value of cryptocurrencies collapsed, it would be detrimental to the business to allow the withdrawals to continue as normal, according to Mr. Mashinsky.
/jlne.ws/3o66VJG

Coinbase May Drop From Ranks of Top Crypto Exchanges as Volume Falls; The exchange continues to lose market share this month: Mizuho; All that could weigh on Coinbase’s profitability, say analysts
Olga Kharif – Bloomberg
Coinbase Global Inc. is falling out of the coveted list of the world’s top 10 digital-asset exchanges by volume as the markets battle crypto winter. The latest data for this month so far shows the firm is now the 14th largest exchange, down from the fourth-biggest in late 2021, according to Mizuho Securities USA LLC.
/jlne.ws/3OozVXP

India’s Crypto Industry Advocacy Body Disbanded
Amitoj Singh – Coindesk
The Blockchain and Crypto Assets Council (BACC), the only advocacy body representing the interests of India’s crypto industry, has been disbanded by its parent organization, the Internet and Mobile Association of India (IAMAI), according to an official statement sent over WhatsApp.
/jlne.ws/3aJGrdN

Crypto voices: investors speak about the market shock; UK retail savers caught in the turmoil talk of gains and losses, and the lessons learnt
Joshua Oliver – FT
Criminals using bitcoin on the Silk Road, the online black market for illegal goods like drugs and weapons, have tainted the cryptoasset’s reputation for years. But for Neil Baker, it was the bust of the Silk Road by law enforcement officers that first led him to become a crypto investor.
/jlne.ws/3PdqbAP

A $1.9 Trillion Options Expiration Is Crucial Moment for Stock Hedgers
Lu Wang – Bloomberg
As if another inflation shock and earnings drama at big banks weren’t enough for stock investors, Friday brings a critical moment where many option traders must decide their next move on hedging.
/jlne.ws/3AQkggA

Google Parent Alphabet Names Goldman Sachs Veteran to Board; Marty Chavez will add finance know-how to technology giant; The move is Alphabet’s first board change since 2020
Mark Bergen and Sridhar Natarajan – Bloomberg
Wall Street veteran Marty Chavez is joining the board of Google parent Alphabet Inc., adding significant finance muscle to the technology giant. Chavez, a vice chairman and partner with Sixth Street Partners, has worked as an investor and software executive but is best known for his 20-year tenure at Goldman Sachs Group Inc. John Hennessy, Alphabet’s chairman, welcomed Chavez in a statement as “an accomplished technologist, entrepreneur and investor.”
/jlne.ws/3o61WbD

Alan Howard’s adventures in cryptoland; Media-shy hedge fund billionaire has quietly been building a digital assets empire
Joshua Oliver and Laurence Fletcher – FT
Cryptocurrency-based trivia games, horseracing non-fungible tokens and privacy specialists are all part of a large and growing digital assets empire that media-shy hedge fund billionaire Alan Howard has quietly been building.
/jlne.ws/3IFX0nj

Ukraine Invasion

Russia Aims to Take Control of Oil Pricing by Creating Benchmark; Oil-trading on national platform to start in October: document; G-7 price cap plan reinforced need for Russian benchmark
Bloomberg News
Russia’s government has made a plan to create a national oil benchmark next year, as it seeks to protect itself from efforts by the West to restrict the flow of petrodollars to the country. Key Russian ministries, domestic oil producers and the central bank plan to launch oil trading on a national platform in October, according to a document seen by Bloomberg News. Russia will work to attract foreign partners to buy oil, with the aim of achieving sufficient trading volumes to establish a pricing benchmark between March and July of 2023, according to the plan.
/jlne.ws/3c5yYpA

Why Russia’s War in Ukraine Means a Hungrier World
Ott Tammik and Megan Durisin – Bloomberg
The surge in food prices that followed the outbreak of war in Ukraine underlined the country’s pivotal role in feeding the planet. By disrupting exports of Ukrainian wheat, corn, barley and oilseeds, the conflict has stoked a hunger crisis in poorer nations and contributed to a surge in inflation in the developed world. The prolonged fighting was decimating Ukrainian farm incomes and destroying infrastructure, making it increasingly unlikely that production will bounce back to normal when peace returns.
/jlne.ws/3PwpH8E

Ukrainian military strikes with Western arms disrupt Russian supply lines – general
Reuters Staff
Ukraine is using Western-supplied long-range weapons and 155mm “smart” shells to hit Russian ammo dumps and supply lines, forcing Moscow to rethink how it supplies fuel and ammunition to the front line, a Ukrainian general said on Thursday.
/jlne.ws/3o7VnFM

Russia Strikes Residential, Business District in Ukraine’s Vinnytsia City; Attack kills at least 23 people and comes as Moscow appears to be doubling down on long-range missile attacks and airstrikes
Alan Cullison, Bertrand Benoit – WSJ
A Russian missile strike on a city in central Ukraine killed at least 23 people Thursday, as Moscow continued to push a ground invasion that in recent days has appeared to lose momentum. Three rockets hit a business center and residential buildings, local officials said. Footage of the city after the strike showed burning cars and injured or dead civilians. At least 90 people sought medical attention, officials said.
/jlne.ws/3AS7Wwg

Ukraine: US crypto investor reported held by separatists
BBC
The US state department has said it is aware of reports an American national living in Ukraine is being held captive by pro-Russian separatists. Suedi Murekezi, 35, a Rwandan-born crypto investor, is said to have been arrested last month in the Russian-occupied port city of Kherson. Friends and family say the US Air Force veteran has been falsely accused of joining pro-Ukraine protests. He is reportedly in the same jail as two US fighters captured last month.
/jlne.ws/3z8UXoK

EU Set to Propose New Russia Sanctions, Fixes to Earlier Actions
Alberto Nardelli and Natalia Drozdiak – Bloomberg
The European Union is set Friday to propose a new slate of penalties targeting Russia for its invasion of Ukraine, as well as actions to tighten previously approved sanctions packages, according to people familiar with the matter.
/jlne.ws/3PsWPxP

EU cuts down Russian coal imports ahead of bloc-wide ban; Move to limit reliance on fuel from sanctioned country adds to fears about energy crisis
Shotaro Tani and Neil Hume – FT
The EU has drastically scaled back its imports of Russian thermal coal ahead of a full ban next month, compounding fears over an intensifying energy crisis in the bloc. Just 1.7mn tonnes of Russian coal, used for power generation, were shipped by sea to the EU in June, a decline of 48 per cent compared with May as western powers extended their punitive measures against Moscow following its invasion of Ukraine. That marked the biggest monthly drop since at least 2019, according to commodity consultants CRU. Europe receives most of its coal through the port of Rotterdam.
/jlne.ws/3aEkeO7

Ukraine’s Allies Ask Whether Western Arms Will Let Kyiv Turn Tide Against Russia
Daniel Michaels, Warren P. Strobel, Gordon Lubold – WSJ
Advanced Western weapons have boosted Ukraine’s fortunes in battling Russia’s invasion recently, but it remains unclear whether those arms will enable Kyiv to turn the tide and avoid a prolonged, grinding stalemate, say Western officials. U.S. Himars mobile rocket launchers and other systems from France, the U.K., Germany and Poland have begun scoring direct hits on Russian bases far behind front lines, including spectacular detonations of ammunition depots. The strikes are critical because Russian troops have gained ground in eastern Ukraine over recent weeks by firing large amounts of artillery in fairly concentrated areas.
/jlne.ws/3IE7Vy0

Chinese Firms Are Selling Russia Goods Its Military Needs to Keep Fighting in Ukraine; Rising exports of microchips, aluminum oxide, other dual-use items undermine Western push to stall Russian war effort
Brian Spegele – WSJ
Chinese exports to Russia of microchips and other electronic components and raw materials, some with military applications, have increased since Moscow’s invasion of Ukraine, complicating efforts by the U.S. and Western allies to isolate the country’s economy and cripple its military.
/jlne.ws/3yMhhDr

Exchanges, OTC and Clearing

Hedge fund Elliott, Jane Street invoke Human Rights in LME nickel lawsuit
Kirstin Ridley and Pratima Desai – Reuters
U.S. hedge fund Elliott Associates and Jane Street Global Trading are invoking the Human Rights Act as they seek to sue the London Metal Exchange (LME) for a combined $472 million over its decision to cancel nickel trades in March.
The nickel trading debacle is the biggest crisis to hit the world’s oldest metals forum in decades.
/jlne.ws/3aFGxmJ

Bursa Malaysia Derivatives inks MoU with the Shanghai Futures Exchange and Shanghai International Energy Exchange
Surin Murugiah – theedgemarkets.com
Bursa Malaysia Derivatives Bhd, the Shanghai Futures Exchange (SHFE) and the Shanghai International Energy Exchange (INE) have inked a memorandum of understanding (MoU) to strengthen existing business partnership. In a statement on Thursday (July 14), Bursa Malaysia said the MoU will commit the named exchanges to share information and best practices pertaining to product development, market operations, and in the areas of common interest for all three markets. Bursa Malaysia Derivatives chief executive officer (CEO) Samuel Ho said the signing of this MoU is a positive development that will lay the groundwork for a long-term relationship between Bursa Malaysia Derivatives, SHFE and INE.
/bit.ly/3uRc5Nk

CME Globex Notices: July 11, 2022
CME Group
Topics in this issue include: Critical System Updates; Product Launches; Product Changes; Events and Announcements.
/bit.ly/3PtPFJY

EBS Market on CME Globex Notice
CME Group
Topics in this issue include: Critical Information; Critical System Information
Update – EBS Market OFF-SEF/OFF-MTF NDF Migration
As previously announced, EBS is restructuring the EBS Market off-SEF NDF venue effective Sunday, August 7 (trade date Monday, August 8), pending regulatory approval. All EBS Market off-SEF/off-MTF NDFs will be migrated to off-SEF/on-MTF UK-regulated multi-lateral trading facility (“MTF”) operated by BrokerTec Europe Limited, which is authorized and regulated by the UK Financial Conduct Authority.
/bit.ly/3RrfAUe

CME STP Notices: July 14, 2022
CME Group
Topics in this issue include: CME STP Hybrid Transfer support in CME STP- August 28; CME STP FIX; Hybrid Transfer support in CME STP FIX – August 28.
/bit.ly/3ckjb6F

Eurex Quarterly Equity News Q2/2022; Single Stock Futures show strong growth in Q2; Market wrap-up
Eurex
Based on the high volatility in equity and interest rate markets in the course of Q2, the focus of investors was rather on benchmark index and interest rate derivatives compared to single stock underlyings. We observed less activity nearly across all country segments on a quarter-to-quarter basis compared to last year. The Swiss and Austrian segment showed slight growth in terms of traded contracts. On a single name comparison the financial segment was again in the lead with Credit Suisse, Deutsche Bank, Commerzbank, UBS, Crédit Agricole and Zurich Insurance Group within the top 10 most traded single equity options. In contrary to the options segment, the single stock futures segment, beside the French and Italian underlyings, showed strong growth numbers across all country segments.
/bit.ly/3IHXklz

New TAIFEX CEO Took Office
TAIFEX
On June 28, the Taiwan Futures Exchange (TAIFEX) Board Members elected Mr. Chien-Lung Chou as the company’s new CEO. Mr. Chou joined TAIFEX in 2010, and prior to the new role, he served as TAIFEX’s Senior Executive Vice President since 2017, overseeing system development and computer operation of the Exchange. Prior to TAIFEX, Mr. Chou served at the Taiwan Stock Exchange (TWSE), and was in charge of trading system development for over two decades.
/bit.ly/3aCLm0c

Fintech

Fresh Scrutiny of Alibaba Sends China Tech Stocks Into Tailspin; Company execs reportedly called in to discuss data breach; Report helped send Hang Seng Tech Index 3.2% lower on Friday
Charlotte Yang and Jeanny Yu – Bloomberg
Investors in China’s tech shares just got another reminder that regulatory scrutiny into the sector is unlikely to go away anytime soon despite a concerted effort by authorities to shore up a flagging economy. On Friday, Alibaba Group Holding Ltd.’s stock tumbled 6% on a report that company executives had been questioned in relation to the country’s largest known cybersecurity breach. The Hang Seng Tech Index slumped 3.2%, taking its weekly drop to 7.7% which was the largest decline for the period in over two months.
/jlne.ws/3Ooxe8F

Venture capital’s delayed rendezvous with reality; The sector, and investors, may be trying to maintain business as usual — but a messy unwinding is under way
Richard Waters – FT
The venture capital bubble is facing a slow and messy unwinding. After a historic boom that puts even the tech bubble of the 1990s into the shade, an adjustment to more rational conditions has started. But structural factors and the psychology of private markets make it hard to tell how long this will take — or what will emerge on the other side.
/jlne.ws/3IFHN5E

Pico secures $200 million investment from Golden Gate Capital; The capital will be used by the firm to pursue M&A opportunities and to improve its data offering and market coverage.
Wesley Bray – The Trade
Infrastructure and technology provider Pico has secured a $200 million strategic investment from private equity investment firm Golden Gate Capital. The firm said it will use the additional capital to build out its infrastructure and data offering, as well as its market coverage across regions and asset classes.
/jlne.ws/3cefaAv

Cybersecurity

TikTok Use by Military Poses Security Risk, US Regulator Testifies; FCC member Carr says location data may flow to Beijing; TikTok ‘pervasive’ on personal devices, Carr tells House panel
Todd Shields and Alex Barinka – Bloomberg
US military members are risking national security with their use of the TikTok social-media service, according to a federal communications regulator who has been pushing for the video-sharing app to be removed from online stores.
/jlne.ws/3RxMyT2

TikTok resists calls to preserve Ukraine content for war crime investigations; The Chinese-owned video app is a trove of digital intelligence that lawyers are attempting to mine and archive
Madhumita Murgia – FT
TikTok is resisting calls to preserve and hand over access to its content for war crime investigations, as lawyers and activists warn the Chinese-owned app is a major data challenge in prosecuting atrocities in Russia’s invasion of Ukraine.
/jlne.ws/3IJUooK

Facebook Users Will Be Able to Have Up to Five Profiles; Profiles don’t need to include user’s real name and identity; Meta hopes more profiles increase interactions and posts
Kurt Wagner – Bloomberg
Meta Platforms Inc. will start letting more users create multiple profiles with their Facebook accounts, the company’s latest attempt to encourage posting and sharing on its social network.
/jlne.ws/3IDWFSj

Cryptocurrencies

Celsius Discloses $1.19 Billion Deficit in Bankruptcy Filing; Firm may sell assets or consider investment from third party; CEO says company made some ‘poor’ asset deployment decisions
Yueqi Yang – Bloomberg
Bankrupt cryptocurrency lender Celsius Network Ltd. disclosed more details on its collapse, including that it has a $1.19 billion deficit on its balance sheet. The platform held about $4.3 billion of assets against $5.5 billion of liabilities as of Wednesday, according to a court filing. It suffered from a series of unexpected losses, including losing 35,000 of Ether tokens due to the misplacement of “keys” by its staking service provider StakeHound.
/jlne.ws/3PylaST

SEC Weighs Waiving Some Rules to Regulate Crypto, Gensler Says; Disclosures can be tailored for digital firms, he says; Crypto industry facing headwinds from market downturn
Lydia Beyoud and Yueqi Yang – Bloomberg
Wall Street’s top regulator may use its authority to exempt crypto companies from certain securities laws to help the industry come into compliance, Securities and Exchange Commission Chair Gary Gensler said Thursday.
/jlne.ws/3IHIThn

Crypto Trading Volume Tumbled in June to the Lowest Since 2020; Spot trading volumes across all centralized coins drop 27.5%; Retail investors likely waiting for first leg up again: TIAA
Enrique Roces – Bloomberg
Cryptocurrency trading volumes have plummeted amid a dreadful first half of the year for the industry. Spot and derivatives volumes have declined across exchanges, falling more than 15% since May to around $4.2 trillion and reaching the lowest since January of last year. The month of June alone saw spot volumes drop nearly 28% to $1.41 trillion as Bitcoin tumbled, the lowest since December 2020, according to data compiled by CryptoCompare.
/jlne.ws/3uRInYr

Crypto Deal Delay Casts Doubts Over Thai Bank’s Makeover; SCB still in discussions with regulators on Bitkub acquisition; Bitkub was fined in May and June for breaches of market rules
Anuchit Nguyen – Bloomberg
A delayed deal between Thailand’s oldest bank and its largest cryptocurrency exchange is raising doubts about the 115-year-old financial group’s ambition to become a regional fintech powerhouse. Bangkok-listed SCB X Pcl agreed to acquire a majority stake in Bitkub Online Co. for 17.9 billion baht ($490 million) at the peak of crypto craze in November, with a target to wrap up the deal earlier this year. But SCB last week said there’s still due diligence to be carried out amid discussions with regulators.
/jlne.ws/3AWkNxw

Crypto Exchange CoinFlex Set to Allow Limited Withdrawals; Exchange to reset operations to permit withdrawls July 15; Users will be permitted to make withdrawls up to 10%
Immanual John Milton – Bloomberg
CoinFlex will allow users to take out a limited portion of their balances after pausing withdrawals last month due to a counterparty failing to make a margin call. The crypto exchange said it will cancel pending withdrawals at 1am ET on July 15 and then close down trading on the platform, according to a July 14 blog post. Following the shutdown, users will be able to withdraw up to 10% of their balances, while the remainder will be blocked, it said.
/jlne.ws/3Pf03pg

China Banks Report $312 Million of Bad Loans in Mortgage Boycott
Lisa Du – Bloomberg
China’s banks have detailed 2.11 billion yuan ($312 million) of loans at risk to the increasing number of homebuyers refusing to pay mortgages on unfinished homes, as fears grow over a potential spillover into the wider financial sector.
/jlne.ws/3aFZ5TL

Brazil’s Largest Private Bank Itaú to Launch Tokenization Platform
Rodrigo Tolotti – Coindesk
This article is adapted from CoinDesk Brasil, a partnership between CoinDesk and InfoMoney, one of Brazil’s leading financial news publications. Follow CoinDesk Brasil on Twitter. Itaú Unibanco, Brazil’s largest private bank, plans to launch an asset tokenization platform that transforms traditional finance products into tokens and also offers crypto custody services for its customers, the company announced Thursday.
/jlne.ws/3z6T1Np

Behind the Editor’s Desk at Bloomberg Crypto; Crypto editors are on call 24 hours a day, seven days a week. Because Bitcoin never sleeps.
Victoria Vergolina – Bloomberg
Every day, around the world, the reporters and editors who cover crypto at Bloomberg wake up (often at the crack of dawn) and start figuring out how to tackle the biggest and most important news events of the day. Crypto is a 24/7 asset class: It doesn’t stop trading, and it doesn’t take holidays. It’s the news team’s job to assess both the big trends and the small moments, and to figure out how to translate those into stories (and podcast episodes). In this episode, you’ll get to meet three of Bloomberg’s crypto editors, folks who are making decisions all day long about how we approach this asset class: Beth Williams and Dave Liedtka, both based in New York, and Philip Lagerkranser, who’s based in Zurich.
/jlne.ws/3IFTCc5

EquitiesFirst revealed as mysterious debtor to troubled crypto firm Celsius; Specialist finance group owes $439mn to digital assets lender
Kadhim Shubber – FT
A mysterious debtor to Celsius Network referenced in the crypto lender’s bankruptcy filings is EquitiesFirst, a specialist finance company best known for lending cash to executives secured against their stock holdings. Celsius chief executive Alex Mashinsky on Thursday said in a court filing his company was owed $439mn by a “private lending platform” that he did not identify. Two people familiar with the matter said the platform was EquitiesFirst.
/jlne.ws/3PhO4r2

NFT Marketplace OpenSea Cuts 20% of Staff as Crypto Job Losses Deepen; The NFT marketplace is the largest by trading volume; Other crypto firms like Coinbase and Gemini have cut staff
Hannah Miller – Bloomberg
OpenSea, the world’s largest marketplace for nonfungible tokens, is cutting about 20% of its staff, the latest in a series of layoffs that’s rocked the crypto industry as digital-asset prices continue to plummet.
/jlne.ws/3AQBfiK

Politics

Sen. Tom Cotton targets ESG investing: BlackRock is a ‘climate cartel’
CNBC
Sen. Tom Cotton (R-AR) on BlackRock joins ‘Squawk Box’ to discuss BlackRock’s ESG ambitions, and how he plans to investigate Wall Street executives who sign on what he’s calling a ‘climate cartel.’
/bit.ly/3yGDGSo

Britain’s Aspiring Leaders Are Far Too Quiet on Brexit; Why are Boris Johnson’s would-be successors so reluctant to say what they plan to do about the UK’s future relations with Europe?
Clive Crook – Bloomberg
The strangest thing about the turmoil surrounding UK Prime Minister Boris Johnson’s removal is the sustained lack of interest in Britain’s biggest and most pressing problem. Johnson bungled Brexit, and the country could be paying the price for years. His trade agreement with the European Union is broken and in danger of collapsing – threatening severe consequences for an economy already reeling from high inflation and slowing growth. Yet one too many petty scandals, not Brexit mismanagement, is what brought him down. As the competition to succeed him plays out, Britain’s future relations with Europe barely rate a mention.
/jlne.ws/3RBwQ9u

Italy Risks Political Collapse as Draghi Urged to Rebuild Unity; Draghi’s resignation offer was rejected by Italy’s president; The prime minister will now work to verify coalition support
Alessandro Speciale and Chiara Albanese – Bloomberg
With Italy on the brink of chaos, Mario Draghi has less than a week to forge some difficult compromises with the populists in his government that have reluctantly backed him for the past 18 months.
/jlne.ws/3REbqbV

Draghi Turmoil Is Bad News for Italy; His attempted resignation comes at the worst possible time for the country. But the safest path for Italy is for him to stay put.
Maria Tadeo – Bloomberg
Much of Europe assumed Italy had ushered in a new dawn when Mario Draghi was appointed prime minister on Feb. 13, 2021. On Thursday, however, not quite a year and a half later, the Draghi era entered its twilight.
/jlne.ws/3PcfQFe

Regulation

SEC Chair Mulls Waiving Some Crypto Regulation Rules
Martin Young – FX Empire
Securities and Exchange Commission (SEC) chair Gary Gensler said that crypto companies might be exempt from certain securities laws in order to help them come into regulatory compliance. His comments came during an interview on July 14 when he said, “We do have robust authorities from Congress to use our exemptive authorities that we can tailor.”
/jlne.ws/3IJhtIc

Statement of Commissioner Kristin Johnson Regarding New RED List Entities; CFTC’s RED List Warns U.S. Consumers: Be Aware and Take Care
CFTC
Today, the CFTC adds the names of 34 unregistered foreign entities to its Registration Deficient (RED) List. [See CFTC Press Release No. 8555-22] The CFTC created the RED List in 2015 in an effort to increase transparency and identify foreign entities that may be operating in regulated markets without being properly registered.
/jlne.ws/3vdYm3t

SEC seeks to ease barriers for investors’ ESG proposals; Proposal comes amid record levels of shareholder-driven votes and as Republicans ramp up criticisms of the agency
Ellen Meyers – Roll Call
The Securities and Exchange Commission on Wednesday proposed expanding investors’ ability to resubmit proposals on environmental, social and governance issues as the 2022 proxy season sees record levels of votes and Republicans ramp up criticisms of the agency. The agency voted 3-2 to propose amending a provision known as Rule 14a-8, to require companies to jump through additional hoops when seeking to prevent shareholders from voting on corporate proposals. If finalized, the changes would likely make it much harder for companies to avoid votes on ESG matters in the future.
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CFTC Adds 34 Unregistered Foreign Entities to RED List; The Registration Deficient List (RED List) New Additions Bring Total to Just Over 200
CFTC
Washington, D.C. — As part of the Commodity Futures Trading Commission’s ongoing efforts to protect Americans from fraud, today the CFTC added another 34 unregistered foreign entities to its Registration Deficient List (RED List). Launched in 2015, CFTC’s RED List now has 202 entities. [See CFTC Press Release No. 7224-15]
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Reminder – FINRA Data Feeds Protocol and Retransmission Changes
FINRA
Beginning in early December 2022, FINRA will introduce changes to the Trade Data Dissemination Service (TDDS 2.0).1 These changes are being made in concert with FINRA’s technical infrastructure upgrade, and TDDS clients should plan to accommodate them.
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National Study by FINRA Foundation Finds U.S. Adults’ Financial Capability Has Generally Grown Despite Pandemic Disruption
FINRA
On many measures of financial capability, U.S. adults generally fared better in 2021 than in the decade leading up to the pandemic, according to the FINRA Investor Education Foundation’s nationwide, triennial study, published today. However, the research also shows that Americans’ financial wellbeing remains uneven across different demographic groups.
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Createathon – Our Innovation Pipeline
FINRA
Since we launched Createathon in 2015, we’ve generated competitive and cutting-edge ideas driven by creative inspirational themes like House that Data Built, Unconventional Thinking, Machine Ready, Wired Together! and Remote & Ready.
/jlne.ws/3PeMJkA

Immediate Annuities: Money Now and for the Rest of Your Life … for a Price
FINRA
Some dream of spending their golden years in exotic locations, indulging in exciting trips to ancient ruins and sampling spicy, local cuisine. But when it comes to retirement savings, even the most adventurous seniors may still consider something routinely described as “plain vanilla”: a fixed immediate annuity.
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Improving the Shareholder Proposal Process: Statement on Proposed Amendments to Rule 14a-8
Commissioner Allison Lee – SEC
Shareholder proposals represent a key mechanism for shareholders to engage with management, put issues of importance on the proxy ballot, and generally enhance oversight and accountability. Through this process, shareholders have introduced significant improvements in corporate governance including majority vote rules for the election of directors, elimination of staggered board terms, limits on poison pills that serve to entrench management, and requirements for independent board chairs. Indeed shareholder proposals have often been a catalyst for pivotal corporate governance reforms. And shareholder-proponents have been early and leading voices – bellwethers for management – on significant issues such as climate risk, workforce diversity, and political spending disclosure.
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Protecting the Independence of the Proxy Voting Process: Statement on Amendments Governing Proxy Voting Advice
Commissioner Allison Lee – SEC
The free and fair exercise of shareholder voting rights is essential to a well-functioning system of corporate democracy, one that helps ensure that shareholders can exercise appropriate oversight of the companies they own. As shareholders increasingly vote through institutional asset managers, proxy advisors play a unique and important role in informing that process and enabling shareholders to protect their interests and their capital.
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Statement on Adoption of Amendments to Proxy Rules Governing Proxy Voting Advice & Proposal of Amendments to Rule 14a-8
Commission Caroline A. Crenshaw – SEC
In the past, corporate democracy was traditionally exercised in-person at an annual meeting. At these meetings, company shareholders gathered together physically, in a room, to cast their votes on a variety of issues ranging from the election of directors to employee working conditions.[1] Today, with two years of COVID telework and remote technology under our belt, that may seem as antiquated as my parents’ landline rotary phone. The majority of shareholders now vote through the grant of proxy in advance of the meeting, electronically. In other words, they fill out a ballot, or someone, like their investment adviser, does so on their behalf through an electronic vote management system.[2] This process, as a whole, is generally referred to as the proxy process and, over time, the corporation’s proxy materials have become, as the D.C. Circuit acknowledged, “the forum for shareholder suffrage.”[3]
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U-Turn: Comments on Proxy Voting Advice
Commissioner Hester Peirce – SEC
Thank you, Mr. Chair. I appreciate the staff’s diligence, graciousness, professionalism, and hard work throughout this rulemaking process. Staff’s valuable time, however, could have been put to better use. For example, staff could have worked immediately on addressing outstanding issues around proxy plumbing and, in several years, on conducting a retrospective review of the 2020 Rules.[1] Instead, the request made of the staff was a difficult and pointless one—find a way to redo a freshly adopted rule without any new information to suggest that such a rewrite is warranted. I am sorry that I cannot support the resulting rule.[2]
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Exclusion Preclusion: Statement on the Shareholder Proposals Proposal
Commissioner Hester Peirce – SEC
Thank you, Mr. Chair. As you just heard, this recommendation[1] concerns Exchange Act Rule 14a-8, the rule that governs when public companies must include shareholder proposals in their proxy statements. We last amended this rule less than two years ago[2] and have yet to experience a full proxy season with these changes in effect. The September 2020 amendments recalibrated the rule to balance the benefit of allowing shareholder proposals to be included in a company’s proxy materials with the reality that consideration of such proposals consumes company and shareholder resources.
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Statement on Proposed Amendments for Substantial Implementation, Duplication, and Resubmission of Shareholder Proposals under Exchange Act Rule 14a-8
Commissioner Mark T. Uyeda – SEC
Thank you, Chair Gensler. The Rule[1] being discussed today was so recently amended[2] that the Commission has not had the chance to determine the effects of those changes. It is not clear why the Commission needs to rush to change this Rule.[3] As the release notes “some effects of the 2020 amendments on the number of proposals submitted and included in companies’ proxy statements may not yet be realized.”[4] The release also acknowledges that “[b]ecause the 2022 proxy season is ongoing . . . the information on the current practices . . . is incomplete.”[5] It begs the question – why not simply wait another 90 days to evaluate the data from the 2022 proxy season and then decide whether to proceed with a proposal?
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Statement on Final Rule Amendments on Proxy Voting Advice
Commissioner Mark T. Uyeda – SEC
Thank you, Chair Gensler. Today, we are considering an amendment to the rules governing the practices of businesses providing proxy voting advice. I want to acknowledge the efforts of the staff in the Divisions of Corporation Finance, Investment Management, and Economic and Risk Analysis and the Office of the General Counsel. I appreciate the briefings and assistance during the past two weeks to ensure that my office had the resources and materials required to evaluate the rule and its corresponding impacts in a short amount of time.
/jlne.ws/3yLhvdM

Be prepared
Commissioner Danielle Press – ASIC
A recent federal court decision is a timely reminder for company directors about cybersecurity risk oversight and disclosure obligations, writes ASIC Commissioner Danielle Press.
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How the UK will regulate for the future
UK FCA
Speech by Nikhil Rathi, our Chief Executive, delivered at the Peterson Institute for International Economics.
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FCA fines The TJM Partnership Limited (in liquidation) £2 million for serious financial crime control failings in relation to cum-ex trading
UK FCA
The FCA has fined The TJM Partnership Limited (in liquidation) £2,038,700 for failing to ensure it had effective systems and controls to identify and reduce the risk of financial crime and money laundering in its business. This is the third case brought by the FCA in relation to cum-ex trading and the largest fine so far. This reflects the multiple examples of serious misconduct over a lengthy period.
/jlne.ws/3RCr5Ir

Publication of “Supervisory Guidance on Climate-related Risk Management and Client Engagement”
FSA Japan
In response to the recommendations prescribed in a report published by the Expert Panel on Sustainable Finance(EPSF) in June 2021, the FSA published the finalized “Supervisory Guidance on Climate-related Risk Management and Client Engagement”.
*On July 2022, the EPSF published its second Report “Financial systems that open up a new sustainable society”
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Court Convicts Ms Lee Ying Hui for Carrying on Fund Management without a Capital Markets Services Licence
Monetary Authority of Singapore
Ms Lee Ying Hui (Lee) was today convicted and fined $20,000 for carrying out fund management business without a capital markets services licence. Ms Lee pleaded guilty to the charge under section 82 of the Securities and Futures Act (SFA). Between December 2017 and June 2022, Ms Lee made arrangements with six investors to trade on their behalf in their personal trading accounts. The trades conducted by Ms Lee were in leveraged foreign exchange and futures contracts. The total investment amount was $127,500.
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SFC welcomes re-appointment of Non-Executive Directors
SFC – Hong Kong
The Securities and Futures Commission (SFC) welcomes the re-appointment by the Financial Secretary of Dr James C Lin and Mr Victor Dawes, SC as Non-Executive Directors for a term of two years, effective from 1 August 2022 (Notes 1 & 2). “Dr Lin and Mr Dawes have been making valuable contributions to the SFC since joining the Board. I look forward to continue working with them in their new term,” said Mr Tim Lui, the SFC’s chairman.
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Bank of America Fined $225 Million for Deceptive Practices in Card Program; Regulators accused bank of consumer harm, violations of law; Company says it partnered with states to help identify fraud
Katherine Doherty – Bloomberg
Bank of America Corp. was fined $225 million by regulators for unfair and deceptive practices related to a prepaid card program to distribute unemployment insurance and other public-benefit payments amid the pandemic.
/jlne.ws/3AQKfEy

Accounting firms ordered to explain how they stop staff cheating in exams; UK watchdog’s intervention follows fines for Big Four firms in US, Australia and Canada
Michael O’Dwyer – FT
The UK accounting watchdog has ordered the biggest audit firms to explain how they prevent staff cheating on professional exams after regulators clamped down on the practice following a series of scandals in the US, Canada and Australia.
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Investing and Trading

UST Co-Founder Targets $1 Billion Funding for Tech Investment; Pillai’s McLaren SV sees opportunities in India and overseas; Firm has invested $300 million to date, sponsored US SPAC
Baiju Kalesh – Bloomberg
The investment firm led by the Indian co-founder of technology services company UST is looking to raise about $1 billion to invest in startups and private equity opportunities in Asia’s third-largest economy and beyond. McLaren Strategic Ventures has started preliminary roadshows and has seen good interest from family offices and Middle Eastern state investors, chairman Sajan Pillai, 54, told Bloomberg News in an interview in Mumbai.
/jlne.ws/3RBITDS

Who Has the Stomach — Or Obstinacy — to Stand Against the Dollar? The often-asserted decline of US influence will have to wait, again.
Daniel Moss – Bloomberg
It’s getting harder for some emerging markets to hide from the dollar’s rampage. Staying on the sidelines or going slow while US interest rates climb risks further degradation of already weakened currencies — and a consequent worsening of inflation at home. To stand against this tide requires fortitude anf, perhaps, more than a touch of obstinacy.
/jlne.ws/3PhCDzC

Global Natural-Gas Markets Are Getting Scared; LNG spot market prices could have much further to go if Russia closes its pipeline to Germany
Rochelle Toplensky – WSJ
Europe’s natural-gas markets are starting to digest the real possibility of Vladimir Putin cutting off supplies to Germany. If the Russian President really does close the taps, though, things would get much uglier. What do you expect to happen with the price of gas in coming months? Join the conversation below. The cost of liquefied natural gas—Europe’s alternative to Russian pipeline gas—to be delivered to the region this year has more than doubled in the past month to around $50 per million British thermal units, or MMBtu. Prices for delivery in the years ahead have also successively crept up as traders bet on gas shortages in Europe until significant new LNG supplies come online.
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The era of the Great Exasperation arrives for investors; It is hard to imagine what form online cheerleading for the stock market might now take
Katie Martin – FT
The Great Moderation is dead, and the obituaries are now rolling in. The past 30 years or so may not have felt like the best of times for investors. The financial crisis of 2008 was no fun, for instance, and even the Greek debt crisis tested nerves, to take just a couple of recent blow-ups. But in retrospect it was a golden period.
/jlne.ws/3yAr2Ew

Emmanuel Roman: ‘Markets are a very complicated Impressionist painting’; The famously literary Pimco chief on generational luck in finance, where you find ideas, and the art of investing in good times — and bad times
Alec Russell – FT
Emmanuel “Manny” Roman is waiting for me at his table in Marino, an old Italian family restaurant in Hollywood. I am a few minutes late. If anyone has an excuse to be late, it is my guest, the chief executive of Pimco, the giant fund manager. It has some $2tn of assets under management and the markets are in turmoil. I am hotfoot, I explain, from the Getty Museum, on the far side of town.
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Environmental, Social and Corporate Governance

Going Electric Doesn’t Have To Be So Complicated; India battery swapping stations could prove to be a model for other emerging markets struggling to meet their green promises.
Anjani Trivedi – Bloomberg
It may not have enough electric vehicles, powerpacks or the capital, but India has found a way towards mass electrification: swap batteries. The solution, where empty batteries can be exchanged for charged-up ones, is still in nascent stages in China, the world’s largest EV market, where it is anchored in strong government policy. Elsewhere, it hasn’t quite taken off. But for India, it could help leap-frog the nation’s bid to reduce transport emissions and boost its electric footprint.
/jlne.ws/3PxWjin

Texas’ Power Grid Is Straining — And It’s Not Even August; The state’s energy provider has resorted to asking people to cut back on air conditioning, but bigger measures are needed to take pressure off the grid.
Liam Denning – Bloomberg
Breaking: It’s hot in Texas. Actually, though, it is really hot in Texas: Note: Difference in Texas’ actual cooling degree days compared with averages observed from 1981-2010. Positive numbers indicate warmer-than-usual conditions. Since May, the heat has been fairly persistent. On a cumulative basis, Texas’ “cooling degree days” — an index of how sweaty conditions are, essentially — are running almost a third higher than normal.
/jlne.ws/3Oc1q6u

EU Backs $14 Billion Hydrogen Power Project to Help Cut Carbon; Fifteen-nation project gets state-aid approval from EU; Plans involve around 5 billion euros of public support
John Ainger – Bloomberg
The European Union took a step toward accelerating its deployment of hydrogen across the bloc, by approving a 15-nation project to help produce the fuel seen as critical to decarbonizing heavy industry.
/jlne.ws/3RBUl2k

Big Oil’s Influx of Cash Opens Door to Major Clean-Energy Deals; Europe’s majors discuss turbo-charging net-zero plans with M&A; Potential targets include Iberdrola, Orsted and SSE Renewables
Laura Hurst and Dinesh Nair – Bloomberg
Europe’s oil and gas giants, flush with cash from soaring prices, are considering whether to turbo charge their transition to clean energy with multibillion-dollar acquisitions of major renewable energy producers.
/jlne.ws/3ASbVsF

Video: ESG Reporting & Communicating ESG Performance
COLE LIPSKY – Mergers & Acquisitions
Laurel Peacock, head of ESG, NGP Energy Capital Management, leads a panel of speakers for Mergers & Acquisitions’ 2022 Innovators in ESG SPEAK event. This panel discusses strategies pertaining to the reporting and communicating of ESG data and metrics. Watch the video to hear from Jill Montera, VP of strategic initiatives, Altvia, and Lauren Winkler, senior director of ESG, The Green Cities Company.
/bit.ly/3uNxfvS

Institutions

FTSE Russell introduces FTSE Canada Sustainable Investment Fixed Income (SIFI) Indexes
FTSE Russell
FTSE Russell, a leading global index, data, and analytics provider announced the introduction of a new series of sustainable fixed income indexes. These are designed to enable greater choice for Canadian investors seeking to calibrate their exposure to fossil fuels as the low carbon transition accelerates and invest in areas related to green and broader sustainability topics that are underserved by current indexes within the Canadian fixed income market.
/jlne.ws/3aFkSLt

Hedge Fund That Apologized for China Losses Rebounds 17% in June
Bei Hu – Bloomberg
Brilliance Asset Management’s hedge funds scored double-digit gains in June as Chinese stocks rebounded, partially recovering from a stretch of losses that led to an apology from the firm’s founder last year.
/jlne.ws/3PaAOV3

UBS, Citi Among Banks Hit by Asia Rich Clients’ Pullback; Credit Suisse also facing regional decline in wealth revenue; China’s crackdown on private enterprise has roiled markets
Denise Wee and Ambereen Choudhury – Bloomberg
A slump in client trading activity in Asia is threatening to slow a lucrative earner for the world’s biggest wealth managers. UBS Group AG and Citigroup Inc. are among banks whose wealth revenues for the region likely declined by double digits in the first half, people familiar with the matter estimated, asking not to be identified discussing private information. Credit Suisse Group AG, which last month warned that results in the second quarter were impacted by clients pulling back, is poised for a similar drop, the people said.
/jlne.ws/3OeK0Gu

Dimensional’s conversion of mutual funds into ETFs pays off; The first four such vehicles notch up $4.2bn in a year while mutual funds outflows hit $14bn
Beagan Wilcox Volz – FT
Dimensional Fund Advisors’ decision to convert a number of mutual funds into exchange traded funds has been vindicated after the first four such vehicles pulled in $4.2bn in a year even as the company’s mutual funds bled $14bn.
/jlne.ws/3cj1xA7

Wells Fargo Quarterly Profit Declines 48%; Revenue fell 16% to $17.03 billion, below expectations
Orla McCaffrey – WSJ
Wells Fargo WFC & Co. said Friday that its second-quarter profit declined 48%. The San Francisco-based bank said it made $3.12 billion in the quarter, down from $6.04 billion a year ago. Per-share earnings totaled 74 cents, below the 80 cents expected from analysts polled by FactSet.
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BlackRock Profit Falls 22%; The firm’s assets under management decreased to $8.5 trillion, from $9.6 trillion in the first quarter
Angel Au-Yeung – WSJ
BlackRock Inc. said Friday that its second-quarter profit fell 22% amid a bruising market downturn. The world’s largest asset manager reported net income of $1.08 billion, down from $1.38 billion in the same period a year earlier.
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Wellness Exchange

Many try to return to normal from COVID, but disabled people face a different reality
Shruti Rajkumar – NPR
Beth Kenny is immunocompromised but found a routine that worked for their family during the pandemic, leaning into safe protocols to protect themselves from COVID-19. Kenny’s wife could pick up the groceries, and social distancing measures and vaccines allowed their family to do activities together outside safely. And the precautions helped Kenny’s wife safely ride the bus and go to the library with their child Vyla without putting their family’s health at risk.
/jlne.ws/3AMJaxI

People Under the Age of 40 Face Higher Health Risks From Alcohol, Study Finds
Ella Pickover – Bloomberg
Drinking more than a small shot glass of beer a day could pose risks to health for men under the age of 40, a study suggests as researchers urged younger adults to steer clear of alcohol. And a safe daily limit for women aged 39 and under is the equivalent of two tablespoons’ worth of wine, or 100ml of beer, the research suggests.
/jlne.ws/3o3mBgH

Coronavirus sub-variant ‘Centaurus’ spreads across India and parts of Europe; Strain has been detected in Germany, the Netherlands, Japan, the UK and the US
Donato Paolo Mancini – FT
An Omicron sub-variant that is spreading rapidly in India and has been detected in several European countries may be better than other coronavirus strains at overcoming immunity provided by prior infection and vaccines.
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Regions

China Traders Pile Into Carry Trades While Easy Money Lasts
Tania Chen – Bloomberg
Easy liquidity conditions in China are fueling a lucrative carry trade in bonds, with traders betting the gains will be sustained despite signs the central bank is moving toward normalizing monetary policy.
/jlne.ws/3RwKJ93

Mortgage Risk Sparks Record Losing Streak for China Banks
John Cheng – Bloomberg
Investors are offloading Chinese financial stocks at a pace unseen over concerns about the declining quality of home loans. Thursday’s 2% decline in the CSI 300 Financials Index was its 10th straight drop, the longest losing streak since the gauge was formed in 2005. Credit Suisse Group AG said the nation’s banks are facing an “unprecedented challenge” after home buyers in more than 50 Chinese cities refused to pay mortgages, while worries deepened over protests related to a rural lending scandal.
/jlne.ws/3uTS2h9

Is China Stumbling Into Its Own Mortgage Crisis? A rapidly spreading protest — borrowers refusing to make payments on unfinished homes — threatens to rattle the financial system.
Shuli Ren – Bloomberg
It is spreading like wildfire. Homebuyers in China are refusing to pay the mortgage on properties they’ve bought but that their financially strapped developers can’t finish. Some say that they will only resume payments when construction restarts.
/jlne.ws/3aNLtps

A political addiction to cheap Russian gas has brought Uniper low; Successive German administrations have prioritised cheap energy and neglected alternatives
Joe Miller – FT
The cast of characters is familiar. The boss of a critical company howling calamity, in this case played by Klaus-Dieter Maubach, CEO of German energy company Uniper; a major shareholder refusing to dig further into its own pockets, in the form of Finland’s Fortum; and a chorus of politicians protesting that taxpayers should not have to pay for the sins of speculators in the capital markets.
/jlne.ws/3o7ncOe

Some Analysts See a Currency Crisis in Chile’s Peso Slump; Peso slid 4% Thursday as rate hike failed to reassure market
Chile’s going through ‘full-fledged currency crisis’: NatWest
Maria Elena Vizcaino – Bloomberg
A slump in the Chilean peso is reaching crisis proportions, damaging the reputation of a nation once touted as a beacon of light in otherwise murky emerging markets. The peso has lost more than a fifth of its value since the start of June, hitting repeated record lows, under the weight of a strong US currency, weakening copper prices and concern over the writing of a new constitution. The currency tumbled 4% on Thursday, the day after the central bank hiked interest rates to the highest since 1998.
/jlne.ws/3IIgJ5L

Miscellaneous

Recruiters Are Burned Out, And Gen Z Job Demands Aren’t Helping; Hiring professionals are exasperated by bold pay requirements and fickleness from young job applicants amid Great Resignation turbulence.
Arianne Cohen – Bloomberg
After a frustrating year of trying to find and place job candidates amid the turbulence of the Great Resignation, recruiters and hiring managers say they are burned out — and some of them point to the over-the-top demands and fickleness of young applicants as a key source of tension.
/jlne.ws/3RE5rUv

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The Spread

Volatility Spike Brews in Charts Signaling Test for Equity FOMO

Lead Stories Volatility Spike Brews in Charts Signaling Test for Equity FOMO Akshay Chinchalkar - Bloomberg Rising volatility may be about to test the US stock market's 13% jump from June lows. That's the picture painted by technical charts looking at the Cboe...

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