We Already Have the World’s Most Efficient Carbon Capture Technology

Aug 2, 2019

First Read

Hits & Takes
JLN Staff

Jonny Aucamp and his son Oliver will be riding (cycling) for a great charity called 40tude that is making great strides in raising awareness and seeding research into treatments for colon cancer. Please support their fundraising efforts.~JJL

Since 2015, more than 98 percent of Susquehanna International Group’s broker dealer allocations by gross securities value came from its Susquehanna Securities, G1 Execution Services and Susquehanna Investment Group entities.~SD

FINRA CAT published its industry member onboarding guide.~SD

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CME Group Averaged 16.6 Million Contracts Per Day in July 2019, Up 23% from July 2018
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, reached average daily volume (ADV) of 16.6 million contracts during July 2019, up 23% from July 2018. Open interest (OI) at the end of July was 139 million contracts, up 20% from year-end 2018 and up 15% from July 2018.
/jlne.ws/2Kpz4H4

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Thursday’s Top Three
Bringing a new angle to physical delivery, our top story of the day was the Crain’s Chicago Business piece on Cboe Global Markets moving from its headquarters a few blocks west to the old Chicago Post Office building, in Cboe nears deal to move to Post Office. Second was Thom Thompson’s JLN piece What is going on at LedgerX?. Third was the Petition requesting that the Securities and Exchange Commission deny registration to Jon S. Corzine and JDC-JSC L.P.

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Lead Stories

We Already Have the World’s Most Efficient Carbon Capture Technology; Empress trees mature several times faster than your average oak or pine and absorb about 103 tons of carbon a year per acre.
Emily Chasan – Bloomberg
To help battle global warming, companies around the world are expected to spend billions of dollars over the next decade building devices aimed at sucking carbon from the atmosphere. The thing is, Mother Nature already made one. While each acre of most tree species can capture and store 1.1 to 9.5 metric tons of carbon dioxide a year, an acre of empress trees can absorb 103. “The tree has a very Jack and the Beanstalk energy to it,” says Wendy Burton, whose 15-year-old Mesa, Ariz.-based timber company, World Tree, has planted more than 1,000 acres of empress.
/jlne.ws/339W31I

LSE’s $27 Billion Refinitiv Deal Creates Trading Powerhouse
Viren Vaghela – Bloomberg
Shares jumped about 8% as it outlines details of transaction
Exchanges operator will take on a $13.5 billion bridge loan
London Stock Exchange Group Plc agreed to snap up Refinitiv in a $27 billion blockbuster deal, betting on a future dominated by data as the three-century-old exchange seeks to extend its global reach. Shares in LSE rose as much as 8% after the exchange operator unveiled details of the transaction for the data and trading provider, which Chief Executive Officer David Schwimmer said fulfilled his ambitions to expand the group further into analytics and the buy-side industry.
/jlne.ws/2K9opkR

Germany’s Whole Yield Curve Dives Below 0% for the First Time
John Ainger – Bloomberg
Nation becomes the largest economy to have all negative yields; Trump’s threat of new tariffs has fueled the latest rally
German 30-year bonds rallied to send yields across the whole of its debt market below 0% for the first time after President Donald Trump ratcheted up the U.S. trade war with China.
/jlne.ws/336hwbH

The CEO of Nasdaq Wants You to Know the Company Isn’t Just About Stocks; Adena Friedman on trading, companies staying private, and her intern days.
Carol A Masar and Jason Kelly – Bloomberg
The CEO of Nasdaq wants you to know the company is more than a stock exchange, even if it’s where about 20% of U.S. equity trades are made. “Complacency is the killer of every great company,” she tells Carol Massar and Jason Kelly.
/jlne.ws/338u566

Exchange operator Cboe profit beats on options and futures trade
Reuters
Cboe Global Markets Inc (CBOE.Z) beat analysts’ estimates for quarterly profit on Friday, as strength in the exchange operator’s options and futures business offset a softer trading environment in other areas.
/jlne.ws/332Z6IZ

Test awaits LSE when euphoria over $27bn Refinitiv deal passes; The UK stock exchange group’s purchase of data and trading group has been welcomed, but execution will be key
Cat Rutter Pooley and Arash Massoudi – FT
David Schwimmer, the chief executive of the London Stock Exchange Group, could hardly have written a better script.
/jlne.ws/2Kk45fF

Citadel adds traders to profit from central bank stimulus shifts; Three new managers will join the $32bn hedge fund to help capitalise on looser policy
Laurence Fletcher – FT
Hedge fund Citadel has boosted its team specialising in bonds and currencies with three new fund managers, as it seeks to capitalise on the market opportunities thrown up by dramatic central bank shifts towards looser monetary policy.
/jlne.ws/2KqiEyu

PanXchange Launches Industry’s First Institutional Grade Industrial Hemp Exchange
John D’Antona Jr. – Traders Magazine
PanXchange, a physical commodities OTC market structure solutions provider, today announced the launch of the industry’s first institutional-grade industrial hemp exchange. The marketplace will allow producers, processors, trade houses and end-users to participate in a transparent and efficient cash market for industrial hemp products and will ultimately pave the way for the creation of hemp derivatives contracts.
/jlne.ws/2KcFtqt

BNP Paribas says Deutsche Bank prime brokerage transition will be finalised by summer 2020
Hayley McDowell – The Trade
BNP Paribas has said the transition of Deutsche Bank’s prime brokerage and electronic equities units will likely be finalised by summer next year, despite Deutsche Bank’s hopes that the deal will be completed by the end of 2019.
/jlne.ws/2K9rDVw

US buy-side commission pool plummets as MiFID II and rise of passive investing bites; TABB Group finds that the buy-side’s US commission pool has declined 42% since 2015.
Hayley McDowell – The Trade
The rise of passive investing and research unbundling under MiFID II in Europe has hit institutional equities in the US, with research showing that buy-side firms have significantly reduced their commission pool over the last few years.
/jlne.ws/339A8Yb

Mark Gorton Steps Down From Helm of HFT Firm Tower Research
Max Abelson and Matthew Leising
Albert An, who joined in 2016, succeeds him as chief executive; Tower is one of the oldest high-frequency firms in the U.S.
Mark Gorton is stepping down from the helm of Tower Research Capital, the high-frequency trading giant he founded two decades ago.
/jlne.ws/2KqoK1Q

Hong Kong’s Government Faces Resistance From Within as Dissent Spreads; Organizers expect more than 1,000 civil servants to attend a rally despite the threat of consequences
Joyu Wang – A contentious extradition bill, the police’s handling of weekslong protests and city officials’ limited response to the public’s concerns have provoked a rare wave of dissent from within the government’s own ranks—civil servants, who are supposed to maintain political neutrality.
/jlne.ws/338DpH8

Exchanges, OTC and Clearing

Cboe Global Markets Reports Results for Second Quarter 2019
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the second quarter of 2019.
/jlne.ws/3379MpK

Cboe Introduces New Small Retail Broker Distribution Program for U.S. Equities Market Data
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), one of the world’s largest exchange holding companies, today announced it has launched a new Small Retail Broker Distribution Program which aims to broaden access to U.S. equities market data for individual investors.
/jlne.ws/2ywXlpi

OCC July Cleared Volume Up 7.9 Percent; Highest Total Volume Ever for July
BusinessWire
OCC, the world’s largest equity derivatives clearing organization, announced today that total cleared contract volume in July reached 403,483,838 contracts, a 7.9 percent increase compared to last July, and the highest total volume for July in OCC’s history. OCC’s year-to-date average daily cleared contract volume is 19,358,621, down 5.8 percent compared to 2018’s record-breaking pace.
/jlne.ws/2YzWjn3

SEBI mulls weather, freight derivatives
Ashish Rukhaiyar – The Hindu
For the first time ever, the Securities and Exchange Board of India (SEBI) is actively examining the feasibility of allowing derivatives contracts based on intangibles such as weather or freight in the Indian commodity segment.
/jlne.ws/2K8VQUM

HKEX Welcomes Public Consultation by SSE & SZSE on WVR-Related Rules Changes
HKEX
The Stock Exchange of Hong Kong (SEHK), the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE) have reached consensus on the criteria for Hong Kong listed companies with weighted voting rights (WVR) to be included for the first time in Southbound Trading of Stock Connect.
/jlne.ws/339B9zt

Exchange Publishes Consultation Paper on Codification of General Waivers and Principles relating to IPOs and Listed Issuers and Minor Rule Amendments
HKEX
Consultation seeks views on the proposed codification of new rules and amendments; Part of Exchange’s ongoing commitment to enhance listing process in Hong Kong
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) published Consultation Paper on Codification of General Waivers and Principles relating to IPOs and Listed Issuers and Minor Rule Amendments (Consultation Paper).
/jlne.ws/2KnztK8

LSE-Refinitiv: two years and $27bn make all the difference; After failed Deutsche Börse merger, strategy and leadership seem transformed
Matthew Vincent – FT
November 2017: London Stock Exchange, having had a £21bn merger with Deutsche Börse blocked by regulators over concerns it would take too much of the clearing market — which, with capital markets business, still provides most of its revenue — parts company with chief executive Xavier Rolet after a row over his future between the board and a shareholder.
/jlne.ws/2KigqAY

Welcome to the new LSE: the ‘everything store’ of markets; UK exchange’s $27bn takeover of Eikon terminal owner Refinitiv is one that regulators should look at
Jonathan Guthrie – FT
Three decades ago, a salesman from New York showed a bunch of City hacks a thing called a Bloomberg terminal. “This is the future,” he informed us. “Interesting”, we said, blowing cigarette smoke all over him and wondering when we could escape for two-bottle lunches, “but we’ve already got Reuters.”
/jlne.ws/331Dk8p

LSE-Refinitiv: reading the runes from a TV theme tune; David Schwimmer will hope he does not stick to the script of his namesake’s show ‘Friends’
Patrick Jenkins – FT
David Schwimmer: among Friends
When the boss of the London Stock Exchange became front-page news and the spotlight shone on its little-known chief executive, how many colleagues went up to the dazzled David Schwimmer and quipped: “So no one told you life was gonna be this way.” They probably won’t have added: “Your job’s a joke” (running the LSE is quite a big deal) or “you’re broke” (he gets paid £5m a year). But yes, as fans of Friends will appreciate, the boss of the LSE, who on Thursday confirmed the acquisition of the old Thomson Reuters data business Refinitiv, shares a name with the actor who plays Ross. Here’s hoping the rest of the theme tune doesn’t play out for Schwimmer as he pursues his acquisition-based growth strategy: “It’s like you’re always stuck in second gear, When it hasn’t been your day, your week, your month, Or even your year.” Clap, clap, clap, clap.
/jlne.ws/336NVyY

Foreword by Tan Boon Gin for the third edition of the Governance Index for Trusts 2019
SGX
This latest edition of GIFT has again shown that REITs and trusts are leading the way in improving on their performance, especially in terms of governance aspects.
/jlne.ws/2KqmkAi

MGEX Reports Final July Volume Statistics
MGEX
/jlne.ws/2MzJRB9

Fintech

Digging Deeper: FactSet KYC
A-Team Insight Blog
Earlier this month, financial and software data specialist FactSet expanded its compliance capabilities with FactSet KYC, a cloud-based application aiming to assist clients to streamline their KYC and AML due diligence responsibilities. Combining robotic process automation with deep-dive data analytics, the launch marks a bid by the firm to break into a new customer segment and boost its compliance management product suite.
/jlne.ws/2KaVRrr

Axioma partners with OpenFin to host portfolio risk management dashboard application; Axioma is due to launch three of its products on OpenFin’s operating system, the first being a portfolio risk management dashboard application.
Madeline Sherratt – The Trade
Risk analytics provider Axioma has partnered with OpenFin to migrate its technology solutions for portfolio managers to the latter’s operating system.
/jlne.ws/336S7ic

Here’s the pitch deck that’s helping Arcus raise millions from top VCs
Nick Bastone – Business Insider
While Arcus CEO Edrizio De La Cruz was studying at the University of Pennsylvania’s Wharton Business School, he was also trying to come up with startup idea that he could pursue upon graduation. Through his brainstorming sessions, De La Cruz kept returning to the same, central theme that he had faced throughout his life — trying to make ends meet financially.
/jlne.ws/2KoflYB

Meet The Mega Fintechs: Nine UK Businesses That Are Super-Charging Funding
David Prosser, Contributor – Forbes
The UK’s fintech sector raised more money in the first half of the year than in any equivalent period on record – a remarkable £1.7bn according to data just release by the growth company market analyst Beauhurst. The sector raised so much money that 2019 is already a record year for investment in UK fintechs.
/jlne.ws/2KkwyCa

Cryptocurrencies

What Happened: Why the First Physical Bitcoin Futures Haven’t Launched
Nikhilesh De – Coindesk
UPDATE (August 1, 2019, 19:30 UTC): LedgerX press representative Ryan Gorman told CoinDesk he will no longer be representing the company as of Thursday over ‘concerns’ about the events of the last 24 hours.
/jlne.ws/2KjvRJl

Walmart Wants to Patent a Stablecoin That Looks a Lot Like Facebook Libra
Daniel Palmer – Coindesk
Retail giant Walmart has applied for a cryptocurrency patent that bears some similarities to the Libra token proposed by Facebook in mid-June.
/jlne.ws/2KilzsM

Why We Need New Legislation For Cryptocurrencies: Q&A With Institutional Trading Firm CEO Jennifer Campbell
Jeff Kauflin – Forbes
Jennifer Campbell is cofounder and co-CEO of Tagomi, a prime brokerage for crypto assets that helps investors make large trades, in sizes ranging from hundreds of thousands of dollars to tens of millions. Since its 2018 founding, Tagomi has raised $28 million in venture capital from investors like Peter Thiel’s Founder’s Fund and $400 million crypto fund Paradigm. It has 200 institutional clients trading on its platform and is based in New York.
/jlne.ws/2KilEN6

Coders Are Trying to Connect Bitcoin’s Lightning Network to Ethereum
Alyssa Hertig – Coindesk
While bitcoin and ethereum enthusiasts might not always get along, one enterprising gaming startup is attempting to bring the two cryptocurrencies closer together.
/jlne.ws/2KiGA6K

Coinbase CEO Armstrong Says Crypto Is Path to Financial Inclusion
Daniel Kuhn – Coindesk
Coinbase CEO Brian Armstrong wants to build an open financial system. As part of the company’s roadmap outlined during an open house, Armstrong said his firm would continue to take a leading role in the development and dissemination of blockchain technology to get “100 million or more people to start [using] cryptocurrency.”
/jlne.ws/339EKgX

Former Japan central banker warns Facebook’s Libra may undermine monetary policy
Leika Kihara, Takahiko Wada – Reuters
Central banks may see the impact of their monetary policies diminish significantly if Facebook’s Libra cryptocurrency becomes widely used in their countries, a former Bank of Japan executive warned on Friday.
/jlne.ws/33aOqYT

ICE CEO: Bakkt Will Launch Bitcoin Futures In ‘Very Near Future’
Nikhilesh De – Coindesk
Bitcoin futures platform Bakkt is gearing up to launch soon, the head of its parent firm said Thursday, although he did not set a firm timeline.
Intercontinental Exchange (ICE) CEO Jeffrey Sprecher, speaking during a quarterly earnings call, said Bakkt is “working to develop a regulated ecosystem that services the evolving needs of [participants] around the world,” adding:
“Subject to final regulatory approvals, we plan to launch our physically settled bitcoin futures in the very near future.”
/jlne.ws/2Ymbrco

Politics

Trump: U.S. will hit $300 billion worth of Chinese goods with 10% tariff
Reuters
U.S. President Donald Trump said on Thursday he would impose an additional 10% tariff on $300 billion worth of Chinese imports starting Sept. 1, as talks aimed at easing tensions between the world’s two largest economies continue.
/jlne.ws/2KhBWWr

Fed Pick Shelton Says Other Countries Are ‘Cheating’ by Devaluing Currencies; Shelton likens current situation to ‘beggar thy neighbor’ economic policies of the 1930s
Paul Kiernan – WSJ
One of President Trump’s latest picks for the Federal Reserve Board, conservative economic commentator Judy Shelton, said foreign countries are devaluing their currencies to prop up their economies.
/jlne.ws/2KkTYan

Trump Is Pushing China Ever Closer to the Edge
Enda Curran – Bloomberg
Where do we go from here? Only days after the U.S. and China described their first return to the trade negotiating table since May as constructive, Donald Trump shattered the truce by announcing new 10% tariffs on Chinese goods ranging from smartphones to children’s clothing.
/jlne.ws/337mBk0

Stock Traders Have Theories About the Timing of Trump’s Tariff Tweet
Elena Popina and Vildana Hajric – Bloomberg
Equities plunge after president adds tariffs on China goods; Escalation comes day after first rate cut in a decade
A day after posting its first 1% loss in two months, the S&P 500 posted its first 1% reversal of the year, with Thursday’s recovery from Jerome Powell’s press conference torpedoed by a Donald Trump tariff tweet.
/jlne.ws/336LPiA

Boris Johnson’s U.K. Majority Cut to One After Special-Election Defeat
Thomas Penny and Joe Mayes – Bloomberg
Pro-EU parties stood aside to help Liberal Democrats win; Result cements resurgence for anti-Brexit Liberal Democrats
The anti-Brexit Liberal Democrats won a by-election in Brecon and Radnorshire, reducing Prime Minister Boris Johnson’s House of Commons majority to a single seat and making his balancing act more difficult as he seeks to deliver Brexit by Oct. 31.
/jlne.ws/337stty

Trump imposes new sanctions on Russia over Skripal poisoning; Financial restrictions are connected to alleged assassination attempt in UK last year
Demetri Sevastopulo and Henry Foy – FT
US president Donald Trump has imposed sanctions on Russia in response to an alleged assassination attempt on a former Russian double agent in the UK, as Congress pressures his administration to take a harsher stance towards Moscow.
/jlne.ws/3330uLH

Regulation

Fed Examined Amazon’s Cloud in New Scrutiny for Tech; Visit was made in April to Amazon facility in Virginia
Liz Hoffman, Dana Mattioli and Ryan Tracy – WSJ
The Federal Reserve conducted a formal examination this spring of an Amazon.com Inc. facility in Virginia, the first of what is expected to be ongoing oversight of giant cloud providers that have become repositories of sensitive banking information, people familiar with the matter said.
/jlne.ws/2KxHlZV

Watchdog poised to clean up pension transfers market; Contingent charging ban among package of FCA measures
Josephine Cumbo – FT
The City watchdog this week announced plans to ban a popular charging model used by pension transfer advisers, said to be fuelling a £2bn a year mis-selling scandal.
/jlne.ws/2KgiB8c

ASIC Regtech Monitoring Financial Promotions: Demonstration and Symposium
ASiC
Opening statement by Commissioner Cathie Armour at the ASIC Regtech Monitoring Financial Promotions: Demonstration and Symposium, Friday 2 August 2019
/jlne.ws/2Kml1SB

ASIC consults on sunsetting class order for changing scheme constitutions
ASIC
ASIC has today released a consultation paper proposing to remake class order, [CO 09/552] Changing scheme constitutions, on changing the constitution of registered schemes. The class order is due to expire (‘sunset’) on 1 October 2019.
/jlne.ws/2KkboUB

SEC Charges Brixmor Property Group Inc. and Former Senior Executives with Accounting Fraud
SEC
The Securities and Exchange Commission today charged Brixmor Property Group Inc., a publicly-traded real estate investment trust, and four former senior executives with fraud in connection with a scheme to manipulate a key non-GAAP metric relied on by analysts and investors to evaluate the company’s financial performance.
/jlne.ws/332YAL3

Chairman Tarbert Assumes Sponsorship of the CFTC’s Agricultural Advisory Committee
CFTC
The U.S. Commodity Futures Trading Commission today announced that Chairman Heath P. Tarbert will sponsor the CFTC’s Agricultural Advisory Committee (AAC). The AAC was created in 1985 to advise the Commission on issues involving the trading of agricultural commodity futures and options and facilitate communications between the CFTC, the agricultural community, and agriculture-related organizations.
/jlne.ws/338B7Ik

CFTC’s Division of Market Oversight Extends Time-Limited No-Action Relief from Certain Position Aggregation Requirements
CFTC
The U.S. Commodity Futures Trading Commission’s Division of Market Oversight (DMO) today announced that it has issued a no-action letter extending, until August 12, 2022, the relief provided in CFTC Letter 17-37, which would have expired on August 12, 2019. This no-action letter continues to provide relief to market participants from certain position aggregation requirements in CFTC Regulation 150.4, including by:
/jlne.ws/338Yhhu

Investing and Trading

Negative gas prices are set to stay in an industry based on faith; The shortage of pipeline is nearly over but then overcapacity will bite
John Dizard – FT
In Europe there are negative interest rates on government and some corporate debt, which pays for redundant bureaucracies and favoured zombie industries.
/jlne.ws/3330awd

Renewable energy push barely dents fossil fuel dependence; Coal, oil and gas still expected to contribute 85% of primary power supply by 2040
Anjli Raval and Leslie Hook – FT
Unprecedented efforts to install renewable power capacity have only translated into meeting 2 per cent of global energy demand, meaning the world’s overwhelming reliance on fossil fuels shows no sign of abating.
/jlne.ws/2KoTxvR

Short sellers are increasing bets that cannabis stocks will fall
Ciara Linnane – MarketWatch
Rise in short interest comes even as shorts lose money and have to cope with high borrow costs relative to overall market, says S3
Short sellers, or those betting stocks will fall, have steadily increased their exposure to the cannabis sector this year with short interest in the top 20 most shorted stocks climbing 78% to $1.89 billion, according to financial analytics firm S3 Partners.
/jlne.ws/2YA0Ppv

Institutions

Why banks are not invited to the European market party; Investors fret about impact of ECB easing plans on the region’s lenders
Tommy Stubbington – FT
Investors have spent the past six weeks gearing up for Mario Draghi’s last stand. Since the European Central Bank president hinted in a speech in mid-June that he plans to end his tenure with a package of fresh stimulus measures, markets have been in party mode, with eurozone stocks and bonds chalking up big gains. One sector, however, has been notably absent from the festivities: the region’s banks.
/jlne.ws/2Kk86kd

RBS warns over long-term profitability targets; UK state-owned bank announces special dividend despite tough mortgage market
Nicholas Megaw – FT
Royal Bank of Scotland warned on Friday that it was “very unlikely” to hit its longer-term profitability targets after a tough second quarter that saw its revenues hit by intense competition for mortgages.
/jlne.ws/2KjrP3F

Credit Agricole Lifts Capital as Investment Banking Slumps
Dale Crofts – Bloomberg
Unit lender’s investment bank sees 20% decline in profit; Key ROTE profit target declines, though is still within range
Credit Agricole SA followed competitor Societe Generale SA in strengthening its capital buffers, even though slower investment banking activity weighed on second-quarter earnings.
/jlne.ws/338Tug0

Banks could reap $100 million in fees from LSE-Refinitiv deal
Pamela Barbaglia – Reuters
A pool of ten investment banks working on the London Stock Exchange Group’s $27 billion purchase of financial-data business Refinitiv could reap advisory fees of up to $100 million, according to industry estimates.
/jlne.ws/2Zvnd0A

Regions

Coffee baron death fuels India Inc anger over government crackdown on wrongdoing
Aftab Ahmed, Aditya Kalra – Reuters
The apparent suicide of India’s coffee baron V.G. Siddhartha, under investigation by tax authorities, has inflamed anger towards the government among business leaders who feel it is going too far in its crackdown on fraud and tax evasion.
/jlne.ws/2T0s47r

GrainCorp shares fall as company warns of full-year loss; Agriculture group has been hit by drought in eastern Australia
Daniel Shane – FT
Shares in Australian agricultural group GrainCorp fell on Friday after the company warned that it was likely to post a loss in this year, as it battles drought in the country and global trade tensions.
/jlne.ws/2Ke6gBe

Behind Erdogan’s Strange Ideas About Interest Rates
Onur Ant – Bloomberg
Turkey’s President Recep Tayyip Erdogan doesn’t like it when the country’s banks charge people relatively heavily to borrow money. That alone doesn’t make him unusual for a politician, given that cheap money can garner electoral support. What makes Erdogan extraordinary is his unorthodox argument for low interest rates and his determination to bring them about by wresting control of monetary policy from theoretically independent central bankers.
/jlne.ws/336hWih

Poland Mulls Helping Banks as EU Ruling on Swiss Loans Looms
Maciej Martewicz and Adrian Krajewski – Bloomberg
Bank stocks extend losses as EU verdict may trigger provisions; Financial regulators monitoring situation, no decisions made
Poland is considering ways to help banks if the European Union’s top court rules against them in a case regarding potentially abusive clauses in their foreign-currency mortgage agreements.
/jlne.ws/339WmJU

JPMorgan Is Banking on Pent-Up Demand to Reignite Turkey IPOs
Asli Kandemir and Ercan Ersoy – Bloomberg
Lender’s Turkey chief sees more deals as inflation, rates drop; Investors need to see signs of predictability, Bagriacik says
JPMorgan Chase & Co. expects Turkey’s capital markets to come back to life as inflation and interest rates decline, reigniting investor interest as the economy stabilizes.
/jlne.ws/336hAYZ

Climate Change Made Europe’s Heatwave Even Hotter; Human-driven emissions added up to 5.4 degrees Fahrenheit to the extreme weather event.
Eric Roston – Bloomberg
Heat scorched Western Europe this July, in what will likely be confirmed as the hottest month in recorded history, the UN’s World Meteorological Organization said Thursday.
/jlne.ws/336ffwZ

Chinese Auditors Are on the Hook After Clients Are Caught Cooking the Books; Dozens of Chinese companies put their fundraising plans on hold as Beijing steps up scrutiny of accounting firms
WSJ
An accounting scandal has disrupted dozens of initial public offerings and other fundraising plans in China, intensifying investor concerns about the amount of trust they can place in audited financial results in the country.
/jlne.ws/337rNV2

Brexit

Boris Johnson’s new envoy delivers tough Brexit message to Brussels; David Frost’s arrival as replacement for Olly Robbins marks start of abrasive new phase
Mehreen Khan and George Parker – FT
Boris Johnson’s new envoy to Brussels has told EU counterparts the UK will leave the bloc on October 31 “whatever the circumstances” in the first meeting between the new government’s team and the European Commission.
/jlne.ws/2Ke5AMc

Many U.K. Companies Are Taking Their Chances With a No-Deal Brexit; Boris Johnson is pledging to get Britain ready for a hard exit from the EU, but small businesses are doing little to prepare.
Allison Ingersoll and Joe Mayes – Bloomberg
When a potential cliff-edge Brexit loomed last spring, Albion Stone Plc stockpiled equipment and materials as a precaution against disruptions. Not this time around.
/jlne.ws/335g89g

Boris Johnson’s premiership is hanging by a thread
Luke McGee – CNN
Boris Johnson’s job just got even harder.
The UK Prime Minister’s first full week in office ended on a very sour note, when one of his own lawmakers was robbed of their parliamentary seat in a special election. Despite a surge for his Conservative party in opinion polls, breathless reports of a “Boris bounce” appear to have been premature.
/jlne.ws/2LWSDK1

Miscellaneous

How Europe’s winemakers take on climate change; Vineyards choose different grapes and planting style to adapt to rising temperatures
Ian Mount – FT
Climate change has drawn a line between past and future at the Viña Mayor winery in Spain’s Ribera del Duero region near Madrid.
/jlne.ws/2Kj6x5Z

AI lie detector developed for airport security; Virtual border guard that asks travellers questions and assesses their answers trialled in airports
Camilla Hodgson – FT
A group of researchers are quietly commercialising an artificial intelligence-driven lie detector, which they hope will be the future of airport security.
/jlne.ws/2KiGFaE

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