Episode Transcript
[00:00:06] Welcome to the John Lothian News Daily Update podcast for November 11, 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 DRW's Don Wilson is the latest to get the Financial Times new Titans of Wall street treatment in the series about the secretive firms that have conquered trading. While Don is just a man, he is a trading God to many in the industry thus deserving of the title titan, Don is more than just trading or the smartest man in trading. As the FT article suggests, he is an industry leader. For some, he is the industry leader. He is also a yachtsman. And if you've been paying attention, those two things are intricately linked to the history of trading in Chicago. Bitcoin has soared above a new record price of $82,000 after breaching $80,000 over the weekend. Buoyed by a post US election enthusiasm for the incoming pro crypto Trump administration, even Dogecoin has joined the party. Bloomberg reported it had rallied 50% in the past five days.
[00:01:39] Germany's benchmark boon, once the gold standard for European sovereign debt, is losing its prime status amid rising yields and market shifts, Bloomberg reports. Traditionally, the safest European investment boons now reflect Germany's economic strains, such as soaring energy costs and diminished exports to China, which led to the recent government collapse. Notably, 10 year boom yields have surpassed those of interest rate swaps, a rare phenomenon indicating growing fiscal pressures. Factors like the European Central Bank's tapering of quantitative easing, increased boon availability and a narrowing yield gap with countries like Italy point to Germany's shifting debt profile. This devaluation suggests that future economic stability may hinge on constitutional changes to Germany's strict debt laws, potentially enabling greater borrowing to boost its economy.
[00:02:47] On Veterans Day, Observed annually on November 11, financial markets in the US operate on varied schedules. The US stock markets, including the New York Stock Exchange and NASDAQ Stock Market, remain open during their regular trading hours from 9:30am to 4:00pm Eastern Time. In contrast, the bond markets, including U.S. treasury securities, are closed in observation observance of the holiday. This divergence allows equity trading to proceed uninterrupted while fixed income markets pause for the day. Additionally, most banks and federal offices are closed on Veterans Day, affecting certain financial services and government operations.
[00:03:36] The Financial Times published a special report on managing climate change today that examines key issues at the UN COP 29 talks in Baku where negotiators aim to set a new climate finance target. Battle lines drawn on climate Finance ahead of COP 29 covers countries efforts to agree on funding against global warming Should a petro state be allowed to host cop? Questions the Azerbaijan's hosting suitability Women fight to have a voice in climate negotiations Highlights female leaders pushing for inclusion after an all male organizing committee Bilateral trade's hint at global carbon market agreement Discusses progress towards a global carbon framework Time is running out for the world to meet climate targets Warns of delays in climate action and EU braced for blows from all sides in March to meet net zero goals examines challenges the EU faces as it pursues emission cuts amid limited U.S. support FOW changed the location of where it displays its news stories on its website. They are now on the Insights page. Here are the headlines from in front of fow's paywall from the Insights page from some recent stories LCH adds Commerce bank to Forex Clear as clearing member Eurox lists US tech and banking stock options after US election analysis financial firms lacking AI governance oversight report HKEx welcomes successful first period of weekly options and analysis Broad based growth drives benchmark adoption in CME Energy Suite Registration is open for the 2025 Asset Derivatives Forum to be held 2-12-14 in Orlando, Florida hosted by FIA and SISMA's Asset Management Group. FT correspondent Harry Dempsey is starting a new position as Tokyo Correspondent after five years years of covering commodities in London. He will focus on covering corporate Japan.
[00:06:13] Good guy Ray McKenzie announced his new role as Senior Business development executive at Quant16. Quant16 empowers Fortune 100 companies and government entities to make faster data driven decisions through market driven FPA as a Service with monetizable AI based in Chicago. Ray said in a LinkedIn post that he looks forward to connecting soon with industry colleagues to share more about Quant16's innovative approach.
[00:06:48] Our most read stories from our previous edition of JLN Options trading and currency options surged to record after Trump victory from Bloomberg Treasury Volatility gauge slumps after markets navigate election and fed from MarketWatch and why it's easier to call US elections than pick stocks from the Financial Times. Here are more stories from the first Read section of today's jln. Here's a sponsored content entry from our friends at JPX FIA Forum Tokyo 2024 held at JPX Together with FIA and FIA Japan, OSES successfully hosted the FIA Tokyo Forum on October 10, 2024 at the Tokyo Stock Exchange. The event welcomed over 220 attendees representing more than 100 companies. The program opened with remarks from Mr. Nakaso, Chairman of Fin City Tokyo, and Mr. Yokoyama, President and CEO of OSE.
[00:08:00] Those introductions were followed by two engaging panel discussions and an insightful address by Mr. Ito, Commissioner of the Financial Services Agency. During the panel discussions, industry leaders from global exchanges and brokerages shared their perspectives on the Japanese market and their development plans. They also explored practical applications of OSE's recent innovations in the interest rates market, including the newly launched three month ton of futures. Mr. Kazuhisa Kakazaki, executive Officer of OSE Tocom, joined a panel to discuss JPX's product advancements. He highlighted developments such as the three month Tono futures, Tokom electricity futures and the revival of the single stock options market. For further details, refer to a link in today's newsletter.
[00:09:03] Here's a story from the Telegraph the headline Chinese Owned Vineyards in France for Sale at Knockdown Prices. Just a few years ago, Chateau Le Tour Leguins was the multimillion euro flagship in a brave new era of Chinese owned winemaking. Now the winery 30 miles southwest of Bordeaux is abandoned, decaying and back on the market for a fraction of its value. It's just one of dozens of Chinese owned vineyards up for sale at knockdown rates as China loses its taste for imported wine and the dream of cashing in big on turns sour for scores of Beijing and Shanghai based investors.
[00:09:55] My comment for those future US Expats looking for something to do, here's an opportunity.
[00:10:02] Here's another story, this one from the Wall Street Journal. The headline Hedge Funds Hit by Armageddon Sense Brighter future After Trump win a string of busted deals has hit the venerable hedge fund industry strategy of merger arbitrage. It's been a rough year for betting on big takeovers. Now some in the hedge fund industry hope President Elect Donald Trump could breathe new life into the business by giving American corporations more freedom to pursue major deals. The optimism is already evident in surging stock prices for some companies like Discover Financial Services that are pursuing combinations. It is part of a broader optimism across Wall street about potentially lucrative opportunities under a second Trump term. My comment your word of the day is Armageddon.
[00:11:02] Here are the top three stories from Friday's gln. Our top story Friday was Jeffrey Carter's column in Points and Figures titled Should Exchanges own their own Commission Merchants? About CME Group receiving permission from the CFTC to create its own futures Commission merchant. Second was analysis Marix expects no competitive threat from cme, broking approval from fow. Third was America needs to Catch up on regulatory clarity for crypto assets. An interview with CFTC Commissioner Carolyn Pham on cnbc. Here are the top three stories from the lead section of today's gln. The first story is from the Financial Times mentioned earlier. The headline is Chicago's Don Wilson the Smartest man in Trading from cleaning up after Lehman Brothers to early bets on Bitcoin, DRW has become an industry colossus. As Lehman Brothers hurtled towards bankruptcy in September 2008, the executives at the world's largest derivatives exchange found themselves in a race against time. Find a new home for the failed bank's trading book or face more cascading chaos in an early harbinger of a new era for markets. The winner of the bidding war for layman's bets on currencies, agricultural commodities and interest rates was not one of Wall Street's big banks, but a secretive Chicago trading firm called drw, whose founder exuded a quiet but unshakable confidence.
[00:12:49] Call me anytime, any day or night. I will give you a price on whatever portfolio you want, don Wilson told a senior CME executive multiple times ahead of the crisis.
[00:13:03] Here's another story, this one from Bloomberg. The headline Swiss exchange buys UK's Aquus in biggest acquisition since 2020 Offer is at 120% premium to Aquus closing share price Six says deal will help expansion beyond home markets Switzerland's exchange operator Six Group AG agreed to buy Aquis Exchange, a UK based trading exchange and data provider, in a deal with an enterprise value of approximately 194 million pounds or 250 million US dollars. The offer is for 727 pence in cash per Acwa's share, representing a 120% premium to Friday's closing price. It has been unanimously recommended by Aquus directors. According to a statement on Monday, Aqua shares were trading at 705 pence as of 9:02am in London.
[00:14:17] Here's another story, this one from the Wall Street Journal. The headline the Crypto world is preparing for a Renaissance under Trump. Bitcoin prices surged to a record Sunday, hitting $80,000 for the Bernie Moreno was celebrating Tuesday night at Le Center, a banquet center in the Cleveland suburbs, when he got a call from Brian Armstrong, Brad Garlinghouse and a handful of other crypto executives. The Republican had just defeated three term Senator Sherrod Brown, the head of the Senate Banking Committee and one of the largest cryptocurrencies critics on Capitol Hill. The executives wanted to congratulate Moreno. We're grateful for your attentive listening to the John Lothian News Daily Update, please spread the word about our podcast among your friends. We would greatly appreciate it if you could spare a moment to leave a review on Apple Podcasts or whatever platform on which you access this podcast. Your reviews play a crucial role in introducing our content to new listeners. Also, if you haven't subscribed to the daily John Lothian Newsletter, email yet, you can Enjoy a complimentary 90 day trial by visiting john lothiannews.com trial thank you for your valued support. 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 Andrew Lothian.
