Episode Transcript
[00:00:00] Foreign welcome to the John Lothian News Daily Update podcast for March 7, 2025. I am your host, John Lothian. If you're not subscribed to the John Lothian Newsletter, you can do so on johnlothiannews.com follow us on marketswiki.com, linkedIn, Facebook, Instagram and Bluesky. Let's dive in. Here are the hits and takes comments from today's JLN Commerce Secretary Howard Lutnick, longtime bond trader, should understand inflation better than most. Yet his recent comments dismissing the inflationary impact of tariffs reveal a disingenuous stance that misleads the American public. By claiming that inflation only comes from government spending printing money and that tariffs have no role in driving up costs, Lotnick ignores basic economic realities and the concerns of businesses already warning that they will pass higher costs on to consumers. His comparison of China's deflation and India's inflation to justify US Trade policy is deeply flawed, failing to account for China's economic struggles and India's ongoing battle with rising prices. Lutnick wasn't chosen for his deep connections to American businesses, but for his ability to sell Trump's economic agenda, no matter how detached from reality it is. While the Federal Reserve's beige book and supply chain data show clear links between tariffs and rising costs, Lutnick brushes aside business concerns as mere whining.
[00:01:50] His Wall street salesmanship, honed at Cantor Fitzgerald, a firm known for trading government bonds rather than engaging with Main street businesses, doesn't translate to the leadership needed at Commerce in a time economic uncertainty. Businesses need honesty and competence, not spin, and Lutnick's refusal to acknowledge basic economic principles only worsens instability.
[00:02:18] SBA administrator and former ICE executive and former US Senator Kelly Loeffler announced the closure of six regional Small Business Administration offices, including Chicago's Loop location, citing the city's sanctuary status as a reason for the movement, the Chicago Sun Times reported. This decision follows President Trump's push for stricter immigration policies, with Loeffler stating that SBA loan applicants must now verify U.S. citizenship to prevent taxpayer funded support for undocumented immigrants, while the agency claims services will remain unaffected. Business advocates warn that the closure will disrupt access to essential resources for small businesses, harming local economies and entrepreneurs who rely on SBA programs. The Chicago business community strongly opposes the decision, emphasizing that small businesses should not be caught in political battles. Elliot Richardson of the Small Business Advocacy Council and Tasha Brown of Small Business Majority argue that losing an SBA office in a city with over 100,000 businesses will make it harder for entrepreneurs to access funding and guidance. Jacqueline Jackson, an SBA backed Kilwins franchise owner, credits the agency for her business success and warns that removing these offices is a major setback for small businesses and their communities. Critics urge the SBA to reconsider, citing the economic harm and loss of support for entrepreneurs who fuel local job creation and growth.
[00:04:11] Nasdaq President Tal Cohen has written a commentary that goes along with the lead story. In his commentary titled the Markets Never Sleep Should Trading, Cohen explains that Nasdaq is exploring the introduction of 24 hour trading five days a week, aiming to expand global investor access and enhance market opportunities. With foreign holdings of US equities reaching 17 trillion doll billion and increasing participation from APAC investors, demand for round the clock trading is rising. However, concerns about liquidity, volatility and corporate issuer reservations highlight the need for careful planning. Nasdaq emphasizes that industry wide coordination, regulatory engagement and technological resilience are essential to ensure stability and trust. While overnight trading already exists in alternative venues, Nasdaq seeks to formalize and improve the experience, leveraging its expertise to create a seamless, transparent and efficient 24 hour trading ecosystem by the second half of 2026. Pending regulatory approval, CFTC Commissioner Summer K. Mersinger and SEC Commissioner Hester M. Pierce will participate in a fireside chat at the Alternative Investment Management Association's Global Policy and Regulatory Forum on 3-11-20 from 4:35pm to 5:10pm Eastern Daylight Time. The discussion will take place at Convene, 117 W. 46th St. New York, NY and will focus on key regulatory and policy issues affecting alternative investments. A global shortage of antimoney, a critical metal used in munitions batteries and flame retardants, may worsen as the US And Europe replenish weapons stockpiles depleted by the Ukraine war, Bloomberg reported. Prices have surged nearly 300% amid China's export restrictions, exacerbating supply concerns in an industry dominated by China, Russia and Tajikistan, which control 87% of global production. While this could spell trouble for defense and high tech industries, it presents an opportunity for new Western supply chains, with Australia's Larvodo Resour set to launch a major anti money mine next year. Depending on your perspective, this could be bad news for manufacturers and military planners facing higher costs or good news for Western miners seeking to reduce dependence on geopolitical rivals. If you're in Canada and craving bourbon or California wine, you may be out of luck. In retaliation for President Trump's tariffs on Canadian exports, provinces across Canada have begun pulling American and alcohol from liquor store shelves, the New York Times reports Ontario alone removed 3,600 US products, with other provinces following suit. While some private liquor stores may still carry American brands, the move has fueled a grassroots push to buy Canadian made products. Whether this is economic patriotism or an overreaction depends on your perspective, but for now, don't expect to find your favorite US spirits or wines easily north of the border a 1987 radio address by Ronald Reagan in which he criticizes tariffs and promotes free trade has gone viral among bankers and business executives, including J.P. morgan CEO Jamie Dimon, who has reportedly been sharing it internally, the New York Post reported. The video has struck a chord with Wall Street Democrats. Nostalg, nostalgic for a time when conservatism aligned with globalist business interests. However, the selectively edited clip omits a key moment where Reagan announced tariffs on Japan for trade agreement violations, undermining the intended message. For some, invoking Reagan is seen as a strategic way to push back against Trump's tariffs policies, offering a Republican friendly argument against protectionism. The core message Reagan delivered delivers about tariffs is right on the mark though. The Stack Fund Scholarship is now accepting applications for the 20252026 academic year. Offering financial support to Chicago area high school seniors and college students, the scholarship is open to all applicants, regardless of STAC Affiliation. Last year, 21 local students received awards. For more details, go to a link in today's newsletter. Here are the headlines from in front of fow's Paywall from some recent stories. ICE Hits Uribor Volume record after European rate shift SGX Monthly volumes boosted by US trade related volatility US bond clearing delay allows time to tackle operational issues FinTech BGC taps Tradition's agency broking head for senior London role Volatility to drive growth as Marex reports record year CEO Lowett and analysis KRM 22 winning key clients for Trading limits Manager Paul Cosenza, the chairman and CEO of Nodal Exchange, joined FIA President and CEO Walt Luken in a FIA Market Voice podcast. You can listen to it with a link in today's newsletter. Cameron Smith, global head of trading and co president of the Texas Stock Exchange, is recruiting on LinkedIn for people who like startup environments, are interested in living in Dallas and think they can contribute to its success.
[00:10:42] RJ O'Brien will hold its 29th annual IB conference in 14 days and they are welcoming non RJO introducing brokers to attend. Contact Jerry Corcoran if you are interested.
[00:10:56] Our most read stories from our previous edition of JLN options were FIA releases Findings from Derivatives Industry Survey from FIA Options Traders Pile into Bearish Bets on popular ETF from the Wall Street Journal and investors question Trump put as Tariffs Rattle stock Markets From Reuters subscribe to the free JLN Options newsletter with the link in today's gln. Here are more stories from the First Read section of today's jln.
[00:11:30] Here's a message from our friends at Vermiculous Veritrade, the trading system built for leading marketplaces Vermiculous Trading System Veritrade is the result of decades of experience from a team that has built and delivered cutting edge solutions for the world's largest exchanges. The system is the most advanced on the market today, built to adapt to the rapid changes in the trading industry and designed for those who want to stay ahead of the competition at a lower cost. Veritrade is designed to handle all asset classes with high availability, meeting the demands of the modern trading world. Engineered for ultra low latency, deterministic order matching and seamless scalability, it's built to keep you ahead of the curve. Whether implemented on premises or in the cloud, Veritrade offers unmatched flexibility with real time risk management and seamless integration with existing systems. Built on a microservices architecture with a dual zone design, Veritrade enables continuous innovation while ensuring the high reliability that modern trading demands. With 24. 7 support for effortless upgrades, the system is designed to evolve with the future of markets across all asset classes and is delivered on time and on budget. You can learn more with the link in today's newsletter. We also have a new episode of Futures Discovery. Reading your statement futures discovery episode 19 today we're diving into the intricate world of reading your statement, a topic that can shape the flow of your futures trading journey. You can watch this episode on johnlothiannews.com Here's a story from Bloomberg. The headline yes, Fortune tops $63 billion overtaking Wall Street Rivals Last March, Jeff Yass resigned himself to Donald Trump being the Republican candidate for president and went all in. The poker loving trader invited Trump to speak at a Club for Growth event after the conservative group had shunned the former president in favor of his rivals during the primaries. It came at a crucial time for Trump, who was still dealing with the costs of mult lawsuits and didn't yet have the backing of the world's richest man, Elon Musk. My comment TikTok yes has $63 billion Tik Tok Here's a press release from Celia AB.
[00:14:09] Celia strengthens team with Head of Marketing and Communications Industry veteran Join sillage to fuel continued growth and global expansion Celia ab, a leading provider of innovative surveillance and risk management solutions for financial industry, today announced the appointment of Frederick Backlin for the role as the company's Head of Marketing and communications. Baclin brings a wealth of experience in building and leading marketing and communications functions at successful B2B companies, primarily in the telecom and fintech sectors. Celia has always been and will always be a technology focused company, says Miko Anderson, CEO of celia. With approximately 90% of our employees dedicated to R and D and delivery, we've built a strong foundation of innovation and expertise as we enter the next phase of our growth journey. With exciting opportunities in both our traditional surveillance business and our emerging risk management offering, we recognize the importance of strengthening our team with enhanced expertise across various areas. Frederic's proven track record in building and scaling marketing and communication functions make him a valuable addition to Unquote My comment this is a brilliant hire by Celia to bring Sonober's former head of marketing and communications, Frederick Backlin, into the company. Backlin was terrific at Zenober and one of my favorite people to work with at a company full of terrific people. Here's another story, this one from Bloomberg. The headline Peter Thiel's Deep Ties to Trump Top Ranks.
[00:15:56] The Tech Magnet has many links to the new Trump administration and the cost slashing effort led by Elon Musk. A billionaire tech entrepreneur who used his wealth and influence in Silicon Valley to help Donald Trump win the presidency, has deep connections to the new administration's efforts to remake the government. His name Peter Thiel. While Elon Musk and a crew of longtime employees and young accolades have been fanning out across Washington under the banner of the Department of Government Efficiency. More than a dozen people with ties to Thiel, including current and former employees of his companies, as well as people who have helped to manage his fortune or benefited from his investments in charitable giving, have been folded into the Trump administration.
[00:16:48] My comment Peter Thiel is a walking contradiction, a libertarian who rails against government overreach, yet whose company, Palantir, thrives on government contracts with intelligence agencies. He preaches free market principles but dismisses competition as, quote, a loser's game, arguing that monopolies are the true goal of businesses. While most tech leaders push for open markets, Thiels champions control, believing that dominance, not innovation, is what drives success. His mix of anti government rhetoric and deep, deep entanglement with federal agencies makes him one of Silicon Valley's most paradoxical and influential figures.
[00:17:38] Here's a story from the Wall Street Journal. The headline Trump's tariffs are no, quote, emergency unquote. The president invokes a law that doesn't give him power to impose sweeping tariffs. Someone should sue. This is from the editorial board. President Trump delayed his Mexico Canada tariffs again on Thursday, this time for another month. He's treating the North American economy as a personal plaything as markets gyrate with each presidential whim. It's doubtful Mr. Trump even has the power to impose these tariffs, and we hope his afflatus gets a legal challenge. The Constitution gives power over trade to Congress, which for most of US History wrote tariff law. That changed after the catastrophe of the 1930 Smoot Hawley tariff. As Congress said, stop us before we kill the economy again, and ceded authority to the president to negotiate bilateral trade deals. It ceded more power after World War II.
[00:18:46] My comment will someone please challenge the legality of President Trump's phony emergency use of tariffs? Here are the top three stories from the previous JLN Thursday's top three Our top clicked item Thursday was FIA Releases findings from Derivatives Industry Survey from the Futures Industry Association. It was also top in jail and options. Second was a tie between they were the watchdogs. Within days of taking office, President Trump fired 16 inspector generals from across the federal government. An opinion piece from the New York Times and Demist Annual Report outlined successes of 2024 from the FIA. Third was February 2025 monthly volume data from the OCC.
[00:19:39] Here are the top three stories from the lead section of today's JLN. The first is from Bloomberg. The headline NASDAQ Joins Exchanges Seeking to offer Round the Clock Trade trading, Nasdaq Inc. Plans to offer 24 hour trading on its equities exchange, the latest venue. Seeking to capitalize on growing demand for US Stocks, the second largest US Exchange operator plans to enable the extended trading five days a week, according to Nasdaq President Tal Cohen. It expects to start round the clock trading in the second half of 2026, pending regulatory approval and alignment with the rest of the industry, cohen said in a post on LinkedIn. Here's another story from Bloomberg. The headline Citadel Securities $9.7 billion trading revenue passes Barclays. Citadel securities reported its largest ever trading hall, surpassing the tally at some of Europe's biggest banks. To cement itself among the world's trading behemoths. Full year trading revenue rose 55% to US$9.7 billion from previous year, according to people familiar with the matter who asked not to be identified discussing private information that topped a previous record of $7.5 billion, set in 2022.
[00:21:07] Then here's the last story, this one from the block. The headline President Trump signs order to establish Strategic Bitcoin Reserve will hold as store of value akin to Fort Knox Less than a week after announcing his administration's push for a crypto strategic res, US President Donald Trump signed an executive order to establish a strategic Bitcoin reserve on Thursday night. The reserve will be capitalized with bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings, the White House AI and crypto czar David Sachs wrote in a post on X. This means it will not cost taxpayers a dimensional if you enjoyed this episode, please leave us a review on your preferred listening platform. This podcast is brought to you by John Lothian News, the home of Markets Wiki and Markets Wiki Education. Thank you for joining us. Have a great day and stay safe and treat people the same way you want to be treated with respect, equality and justice. This has been John Lothian Goodbye. This podcast has been produced by John Lothian.
