Episode Transcript
[00:00:06] Welcome to the John Lothian News Daily Update podcast for October 21, 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 Sir Bryan Williamson died last Thursday morning, sources have shared with me. The former two time chairman of the London International Financial Futures and Options Exchange was reported not to be feeling well for a couple of days and saw his doctor ahead of a planned hip operation. He felt unwell quickly after the appointment and suffered a severe heart attack shortly thereafter. A source shared no details about any services are available at this time. We will share them when they become available.
[00:01:04] Williamson was a 2007 inductee into the FIA hall of Fame. He is featured in the JLN video series the History of Financial Game Changers Part 2. He is the first person you see on the screen speaking in an interview conducted by the veteran journalist John Perry back in 2011. We launched the series at the time, contracting with Perry to interview the early heads of the European exchanges because we were afraid of losing their stories. It was the death of former Chicago Corp. CEO Jack Wing in August of 2011 that spurred us into action and launched our historical video work.
[00:01:49] When I return to Illinois at the beginning of November, I will look for the raw video from the interview we did with Williamson and see if we can repackage it as a standalone interview or podcast Human activity has disrupted the global water cycle for the first time in human history, creating a growing crisis that threatens economies, food production and lives, according to a report by the Global Commission on the Economics of CNN reported. The combination of poor land and water management, along with the climate crisis has placed unprecedented stress on the system that moves water around the Earth. Nearly 3 billion people already face water scarcity, with risk to 50% of global food production and potential GDP losses of up to 15% in low income countries by 2050. The report highlights the importance of both blue water lakes, rivers and aquifers, and green water moisture in soils and plants, both vital to the water cycle and under threat due to human damage, climate change and ecosystem destruction. The crisis is compounded by increased water demand as people require around 4,000 liters per day for a dignified life, far more than most regions can provide sustainably. The report urges global governments to treat the water cycle as a collective resource, requiring better management and significant cuts in pollution. It also calls for rethinking how water is valued in economies to prevent waste and ensure sustainable use.
[00:03:46] The leg to stand on also Rocktoberfest event in Chicago raised over three hundred hundred thousand dollars, contributing to a combined total of over one million for the Chicago and New York events. The event featured performances from several bands including the Alto All Stars, August sun from KRM 22, Bad Dads from CBO, Blue Sky highway from CME Group, Hive of Scum and Villainy from the University of Illinois, Loyola University Fitant Advisors and Alpine Capital Advisors. The operators from ADM is also All Stars London Biscuits and Groovy from bitstamp, Kerosene, the Mixaphors and Wild Oats duo from imc. Corporate sponsors included ADM Investor Services, Belvedere Trading, CME Group, occ, SIBO Global Markets, Wedbush Securities, Geneva Trading, Battlefin Advantage Futures Bar Chart, Gate 39, IMC Trading, ION Janice Henderson Group, KRM22, Macquarie Group, MyEx Exchange Group, Prime Trading, RCM Alternatives, RJ O'Brien and XR Trading.
[00:05:15] Sharon Bowen, Chair of the NYSE, Director of Intercontinental Exchange and former CFTC Commissioner, received the Distinguished Alumni Award from the Northwestern University Pritzker School of Law during the school's Alumni Awards celebration. Bowen was among 21 distinguished alumni who were recognized during the program, which recognized their contributions to the law school community and the legal profession. Will be starting a new position as an advisor at BPX Digital Securities Exchange. He shared on LinkedIn. CBO Global Markets Executive Vice President and COO Chris Isaacson was named by Ingram's magazine as one of Kansas City's 250 most influential business leaders in 2024. Also named to the list was Dave Cummings, the owner of Tradebot Systems and the founder of BATS Trading. The Chiefs Patrick Mahomes was also on the list. Here are some headlines from in front of Fow's paywall from some recent stories ICE eyes done away U.S. treasury clearing mode BOE sets January 2026 deadline for new bank capital rules CME confirms U.S. treasury clearing plans amid competition ICE hopes to submit U.S. treasury clearing filing in early 2025 and AI is boosting productivity and why that matter matters. If you don't believe me, maybe you might listen to Paul Krugman. While my comments last week on tariffs were not directed at any particular political party or candidate, The Nobel winning economist Krugman has strongly criticized former President Donald Trump's proposal to significantly increase tariffs, including a 60% tariff on Chinese imports. In a recent opinion piece reported by Benzinga, Krugman warned that such high tariffs could undo 90 years of economic progress, citing the Smoot Hawley Tariff act era. As a comparison, he argued that Trump's tariff plan would harm the US Economy by raising living costs, reducing exports and making the economy less efficient while disproportionately affecting middle and lower income families. Krugman also expressed concern that these tariffs could increase global poverty and potentially ignite global conflict.
[00:08:01] Our most read stories from our previous edition of Jail and Options Were Risky ETF Krew Grabs Wall Street Limelight with Long Short Bets from Bloomberg. The prime brokerage pie is growing, which means bigger slices for everyone from the Trade and ex Freeport Gas Trader Sizer Starts Energy Focused Hedge Fund from Bloomberg. Subscribe to the Free GLN Options newsletter with a link in today's gln.
[00:08:34] Here are more stories from the First Read section of today's JLN. Here's a story from Gallup Media confidence in US matches 2016 record low the 32% of Americans who say they must trust the US mass media a great deal or a fair amount to report the news in full. Fair and accurate ways ties Gallup's lowest historical reading previously recorded in 2016. Although trust in media currently matches the historical low, it was statistically similar in 2021 36% and 2022. 34%. Another 29% of US adults have not very much, unquote trust, while A record high 39% register quote none at all, unquote this nearly 4 in 10Americans who completely lack confidence in the media is the highest on record by 1 percentage point. It is 12 points higher than the 2016 reading, which came amid sharp criticism of the media from then presidential candidate Donald Trump, making the current assessment of the media the grimmest in Gallup's history. In 2016, US adults were most likely to say they had not very much trust 41% my comment my confidence in the US is at record highs. Here's another story, this one from Bloomberg. The headline Gold Hits Fresh Record on Mideast Fears and Election Uncertainty.
[00:10:16] Gold extended its rally to a fresh record high amid tensions in the Middle east and as traders look toward the US presidential election. Bullion rose as much as 0.6%, having breached the $2,700 an ounce threshold on Friday, with analysts attributing gains to haven demand amid uncertainty around the outcome of the US Election and ongoing worries over the Middle East. Israel has been discussing its attack on Iran after a Hezbollah drone exploded near Prime Minister Benjamin Netanyahu's private home at the weekend.
[00:10:57] My comment Time to buy more gold or buy puts for the post election sell off another trip to Costco for sure. Here's another story, this one from the Wall Street Journal the headline industry the hit show about finance leaves bankers scratching their heads. The dramas Wall street fans spot typos in spreadsheets puzzle over bank failure caused by ESG investing.
[00:11:26] The blockbuster TV show industry is full of sex, drugs and high finance. But Wall street types auditing this past season's plot find the details aren't quite adding up. The HBO series has become a hit, with most fans tuning in for the personal drama between the twenty something protagonists. Finance nerds who have spent hours toiling in the drudgery of bank banking are more intrigued by the perplexing operations at the fictional bank purepoint and company. My comment if I was approached by a bank named Peerpoint & Co. I would immediately think it was a scam bank using traditional industry names to create familiarity. Nice job hbo.
[00:12:13] Here's another story, this one from Here are the top three stories from Friday's JLN. Our top story Friday was gold tops $2700 for the first time to extend record breaking run from Bloomberg. Second was US high grade credit spreads fall to lowest level since 2005. Also from Bloomberg. Third was the SEC's Alabama man arrested for Role in Securities and Exchange Commission X account hack, about a man who was arrested for conspiring with others to hack the SEC's X account and Premium prematurely announced the approval of Bitcoin exchange traded funds. Here are the top three stories from the lead section of today's jln. The first stories from the Financial Times the headline How Susquehanna's Jeff Yass Mastered the Options Game Obsession with odds spawned a trading giant and shaped the industry's approach to markets. Jeff Yass used to see options trading as a game. Now he sees it as a mission from God. The billionaire co founder of Susquehanna International Group has claimed he was a socialist during his student days at the State University of New York. But now he talks about capitalism with the zeal of a convert. Throughout history, the money lenders have always been viewed with suspicion, he told a student group dedicated to the promotion of free markets in 2021. When you're against finance, you're fundamentally against all human progress. Having flown under the radar for years, Yass has recently gained prominence as a major donor to Republican political candidates and as one of the largest investors in ByteDance, the Chinese owner of TikTok. But despite the newfound scrutiny, less attention has been paid to the trading business at the heart of SIG's mission.
[00:14:17] Here's another story this one from the Wall Street Journal, the headline behind many Powerful Women on Wall Street A Doting House Husband, More Men are Staying Home to facilitate the complex juggle of family life and their wives Suzanne Donahoe, a top executive at the private equity firm EQT, started the month of September with a 10 day business trip through Asia and Europe. Back in New York, her husband, Matt Donahoe, was helping their three teenagers begin a new school year. That was no simple task. The Donahoe children are close in age. Each goes to a different school and has different extracurricular activities. Matt drove their 13 year old to hockey practices in New Jersey and took all three children to Boston for a tournament. In between, there were groceries to buy, meals to prepare, and homework to assist with.
[00:15:18] Here's another story, this one from the New York Times Headline why Chinese Are Rushing Into a Casino Stock Market Steps to Bolster the Economy has set off a stock buying frenzy. Our columnist spoke to Chinese investors about why they are jumping in, knowing the risks. They call China's stock market a casino, yet they are rushing in. They are betting money that the government really does want to finally crawl out of the hole it has dug. They are speculating, looking for short term gains with a great degree of uneasiness. A flurry of policies by Beijing in recent weeks meant to stimulate the domestic economy has spurred Chinese middle class to invest more in stocks, prompting the country's biggest rally since 2008. 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 upon 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 Lilian Newsletter, email yet, you can Enjoy a complimentary 90 day trial by visiting john lothianws.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.
