Episode Transcript
[00:00:06] Welcome to the John Lothian News Daily Update podcast for May 24, 2024. I am your host, John Lothian. This podcast is brought to you by John Lothian News the home of markets wiki and markets wiki Education. Thank you for joining us. Here are the hits and takes comments from today's JLN the message from Wednesdays earning from Nvidia is that while some customers may have said they are waiting for the next upgraded chip, the rest of the world is not waiting and wanted anything they could find on the shelves at Nvidia. The opportunity costs of delayed infrastructure enhancement could be substantial, making immediate action a strategic necessity. Let's just say everyone wants one of Jamie Dimon's printing presses right now.
[00:00:58] Join the LBMA LPPM London Bullion Market Association, London Platinum and Palladium Market Global Precious Metal Conference 2024 from October Diplomat in Miami, Florida. Enjoy high profile speakers, engaging panel sessions and exceptional networking opportunities. Keynote addresses on October 14 will feature Gideon rose of the Council on Foreign Relations and Sir Sherrard Cowper Coles of HSBC holdings. Register using a link in Todays newsletter with a special 10% discount for John Lothian News readers using code reader ten off.
[00:01:48] Secure your discounted room at the diplomat early the Financial Times editorial board has a commentary that highlights the urgent need for the improved financial education in UK schools, as detailed in a recent parliamentary education committee report. Despite the launch of the FT financial literacy and Inclusion campaign in 2021 all, only 33% of primary and 39% of secondary students receive financial education. The quality of current programs is inadequate, with financial literacy often overlooked or poorly implemented. The report recommends appointing financial literacy coordinators, enhancing curriculum quality, and making financial education compulsory for students up to age 18. To address these issues, sufficient recruitment and training of maths teachers are essential. Labor's potential curriculum review offers a long term solution to embedding financial literacy in education.
[00:02:59] The New York Times is reporting that Kubosu, the shiba Inu who helped define the doge meme, has died at the age of 18. The Times said the dog, whose face helped spread the popular doge meme and later became the logo of the dogecoin cryptocurrency, died on Friday.
[00:03:23] Yesterday was a very busy day. Too busy. My morning routine was disrupted by a trip to O'Hare International Airport to drop my wife off for the first leg of her journey to a transatlantic cruise on the Queen Mary two with their brothers, Jeff Berkstrom and Brian Howard and Brian's husband, Brad Dougherty. They are all successfully cruising the Atlantic. Later that morning, I rushed downtown for a video shoot where I met Patrick Lothian, who is in town to man the cameras. With Jeff out of town, extra responsibilities are doled out to cover his and amidst the flurry of activity yesterday, we never published JLN options. Thus we will not have the top three previous JLN option stories today. Look for JLN's options today the FIA released its April ETD volume report, saying that worldwide volume of exchange traded derivatives reached 15.19 billion contracts in April, up 2.4% from March 2024 and up 89.9% from April 2023. Options trading continues to gain in popularity, reaching 12.57 billion contracts in April, up by more than 109% from last year, with most of that trading taking place in the Asia Pacific region. Global trading of futures reached 2.62 billion contracts in April, up 30.3% from the same month last year. On a year to date basis, volume in the first four months of of the year was 63.1 billion contracts, up 77.5% from the first months of 2023. The majority of that increase came from equity contracts. Here are more stories from the first read section of today's JLN. Here's our sponsored content contribution from our friends at FTSE. Russell Russell 2000 index quarterly chart book, May 2024 and rusle reconstitution the Russell 2000 index provides live index tracking data with historical performance dating back to January 1984. Academic and practitioner research confirms that large cap stocks behave differently to small cap stocks and performance is variable. There are sub periods during which the Russell 1000 outperforms the Russell 2000 and vice versa. Quarterly performance assessments provide valuable data points for understanding market sentiment and us economic activity. View the report with a link in today's newsletter. The Russell Us indices are designed to reflect the ever changing us equity market, and the annual reconstitution process is critical to maintaining accurate representation. The schedule for annual reconstitution of the Russell US indices suite is set for Friday, June 28. The newly reconstituted indices will take effect after the market closes on the same day, Friday, June 28, 2024. For more information, visit a link in today's newsletter here's another story. This is a video we shot at Boca Futures hall of famers Moore and Heinz reflect on trading careers in JLN interview Robert Moore and James Hines, two veteran traders recently inducted into the FIA hall of Fame, reflected on their decades long partnership and evolution in the industry. In an interview with John Lothian News Watch this video on johnlothiannews.com dot. Then here's another video from boca crypto.com aims to revolutionize financial services eyes expansion beyond core customer base. The future of Crypto.com involves bringing cryptocurrency into every wallet and becoming a one stop shop for financial services, according to two Crypto.com executives interviewed at the FIAs annual Boca Raton, Florida, conference in March. Watch this video on johnlothianews.com dot. Heres a story from CNN. The headline Elon Musk says AI will take all our jobs Elon Musk says artificial intelligence will take all our jobs, and thats not necessarily a bad thing.
[00:08:18] Probably none of us will have a job, Musk said about AI at a tech conference on Thursday. While speaking remotely via webcam at Vivatech 2024 in Paris, Musk described a future where jobs will be optional. If you want to do a job that's kind of like a hobby, you can do a job, Musk said. But otherwise AI and the robots will provide any goods and services that you want. My comment I wonder what artificial intelligence will have to say about the increase in suicide rates.
[00:08:56] Here's another story, this one from Bloomberg. The headline a hedge fund volatility trade risks getting crushed by the crowd a once niche stock trade beloved by hedge funds and volatility players has ballooned into one of the biggest option strategies on Wall street, stirring fears it will get crushed by its own popularity. Known as dispersion, it's traditionally been the preserve of banking, trading desks and fast money players like capstone investment Advisors and one river asset management. But it's been luring new cash in the post pandemic era as a market riven by rising interest rates has boosted performance.
[00:09:43] My comment are you the roadrunner or the wile E. Coyote? Sometimes there are enough coyotes that even the smartest roadrunner gets crushed by an anvil from time to time.
[00:09:58] Here's another story, this one from the Wall Street Journal. The headline behind the scenes of Scarlett Johansson's battle with OpenAI spat between star and Sam Altman's company shows why Hollywood is worried about how artist work is used in the age of generative AI.
[00:10:18] Scarlett Johansson's powerful Hollywood agent, Brian Lord, wanted answers when he made an urgent call to Sam Altman last week. What do you think you're doing? Altman's artificial intelligence powerhouse, OpenAI, had for months unsuccessfully courted Johansson, who memorably voiced an AI assistant for the 2013 film her. Last September, Johansson turned down an offer to work with OpenAI and voice a new assistant feature.
[00:10:54] This wins the prize for the best headline of the day, even if it was probably written by AI. Here are the top three stories from Thursdays JLN our top clicked item Thursday was Simon Rostron's post on LinkedIn about the twice daily LBMA gold auction price ending the week at an all time record high of $2,402.60. 2nd was the proprietary trading management insight report, second quarter 2024 from acuity.
[00:11:33] Third was the Gregory Meyer post on LinkedIn sharing that he is starting a new position as us consumer editor at the Financial Times. Here are the top three stories from the lead section of today's JLN. The first story is press release from the Commodity Futures Trading Commission. The headline CFTC orders JP Morgan to pay $200 million for supervision failures CFTC finds JPMorgan failed to surveil billions of client orders on a US designated contract market.
[00:12:12] The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against JP Morgan Securities LLC, a registered futures commission merchant and a swap dealer for failing diligently to supervise its business as a CFTC registrant, resulting in JPMorgan failing to capture billions of orders in its surveillance systems. JPMorgan admits the facts in the order in sections two scope of surveillance data gaps and three causes of surveillance data gaps. Acknowledges that its conduct in those sections violated the CFTC regulations and otherwise neither admits nor denies the facts.
[00:13:04] Here's another story, this one from Yahoo Finance. The headline SEC green lights exchanges to list ETF's still needs to approve money manager filings regulators have given a green light to the NYSE and the Nasdaq to list eight exchange traded funds that hold ether, but they still have not given approval to money managers that want to issue the new products. The move from the securities and Exchange Commission is the first major step towards allowing the ETF's to trade. The SEC will need to approve s one forms from the money managers filings needed to publicly offer new securities for the actual fund to begin trading.
[00:13:58] Here's another story from the Wall Street Journal. The headline Nvidia keeps its old chips selling hot worries about showdown and sales ahead of major chip upgrade look, misplaced patience might be the one thing Nvidia can afford these days. Luckily for the chipmaker, it doesn't look like it will need to. Ahead of Nvidia's fiscal first quarter results Wednesday afternoon, there was a growing fear among investors that major customers such as Google, Amazon.com and Microsoft could curb their orders for the latest generation of the company's artificial intelligence systems to await the launch of a new line later this year. Nvidia previewed those new systems under the name Blackwell.
[00:14:49] Its developers conference two months ago to great acclaim, but noted that they wouldnt ship until near the end of the year. Hence worries about an air pocket in demand that might hurt near term sales and a stock price that has more than tripled in value over the past twelve months and made Nvidia worth more than $2.4 trillion. We're grateful for your attentive listening to the John Lithia news daily update. Please spread the word about our podcast among your friends.
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