Episode Transcript
[00:00:06] Welcome to the John Lothian News daily Update podcast for April 2, 2024. I am your host, John Lothian. This podcast is brought to you by John Lothian News, the home of markets Wiki and Marketswickie Education. Thank you for joining us. Here are the hits and takes cabinets from today's JLN.
[00:00:26] My father worked for General Electric when he graduated from college, first in Cleveland, Ohio, then in Chicago. I have always paid attention to General Electric as a result, and since the early days of the pandemic when I became one of the many new stock traders, I have owned General Electric off and on. I currently own shares in General Electric, or I used to. Today I own shares in GE Aerospace, Ge Vernova, and GE Healthcare, the three companies Ge spun out of. GE was a great company and back when my father worked for it, they sponsored a television show called General Electric Theater that was hosted by Ronald Reagan and broadcast on CB's radio and television. Former president Reagan used to make visits to the various GE offices around the country, and one day stopped in my father's Chicago office. He made a speech stepping up on a box provided for him by an aide, even though he stood over six foot at the time. Reagan had gray in his hair, my father said along the side of his head. During his presidency, Reagan was famous for his black hair with no gray hair. Journalists were convinced he colored his hair. However, when some enterprising journalist grabbed some samples of his hair from the floor of the White House barber shop after he had a haircut and had it examined, there was no evidence of coloring. This only proved that Reagan was coloring his hair grey back when he was doing General Electric theater, supposedly so he could get more mature roles. The Wall Street Journal has a story by text and picture of the history of General Electric titled the Breakup. 230 years in the making, GE makes its final split with the sub headline it once financed mortgages and sold light bulbs. Now a shrunken General Electric will focus on jet engines.
[00:02:36] Japan Exchange Group shared on LinkedIn that a total of 191 companies in Japan announced stock splits in the fiscal year ended on Sunday, up about 60% from the previous year, lowering the barrier to entry for retail investors by reducing prices.
[00:02:56] Smarter markets conducted interviews with industry leaders at the FIA Boca conference, including Walt Lucan, president and CEO of FIA. Sergei Nazarov, co founder of Chainlink Prezmik Korolewski, global head of market development at fast markets Maureen Downs, co founder and CFO of Connemara Technologies Ruval Ruz, co founder and CEO of digital asset Anthony Crudely, host of futures radio show William L. Havander, chief growth officer of BML Technologies, and Joe Reat, chief commercial officer of Amex Exchange and Clearinghouse. Insights from these discussions provide valuable guidance for navigating challenges and seizing opportunities in the futures industry. You can listen to the interviews with a link in Todays newsletter Ezra Klein of the New York Times has a 75 minutes podcast titled how should I be using AI right now? Theres a link in todays newsletter for this. Also, Steve Lohr of the New York Times has a story titled how one tech skeptic decided AI might benefit the middle class with the sub headline. David Otter, an MIT economist and tech contrarian, argues that AI is fundamentally different from past waves of computerization.
[00:04:30] Debbie Carlson has a story in chief investment officer titled regulating the robots with the sub headline current SEC proposals seen as overreaching, but industry watchers see benefits if changes are made. Anthony Payne, head of relationship management and market access at London Metal Exchange, is still looking for support for his run with friends in the half marathon on April 7 for Cancer Research UK. You can find out more and donate with a link in today's newsletter. The monthly update from Sustainable stock Exchanges initiative includes news and updates from its members and covers SSE initiative events, workshops through SSE Academy exchange updates, regulator and standard setter news, ESG indices and products, gender equality and executive moves. Among the news the United Nations SSC welcomed 30 official supporters, comprising 22 nations and eight market participants. Among the new supporters are AVN, AMro Clearing, Bloomberg, CBO, CME Group, Euronext, Hong Kong Exchanges, Intercontinental Exchange, New York Stock Exchange, Johannesburg Stock Exchange, London Stock Exchange Group, Nasdaq and Singapore Exchange Group. Read and subscribe to the SSE update with the link in today's newsletter. Our most read stories from our previous edition of JLN options were creating an 11% dividend on Amazon stock. Using options from the Globe and Mail crash or soar, traders are preparing for stock market extremes. From Bloomberg and canadian annual Derivatives Conference 2024 from Eventbrite. Subscribe to the free JLN Options newsletter with a link in today's JLN. Here are more stories from the first read section of today's JLN.
[00:06:31] Here's a story from the Financial Times. The headline we need to talk about Brexit the UK's 2016 vote to leave the EU was the most dramatic political and economic decision for generations. But as the country prepares for a general election, it is no longer on the political agenda. This film examines why no political party wants to talk about it, why Brexit remains the elephant in the room for british business and how it could actually work better.
[00:07:04] I am so tired of talking about Brexit. How about we just write about it or show a video? Heres another story, this one from CNBC the headline 25% of Gen Zers say theyll need a therapist to deal with tax filing stress. Here is the first step to take to make it easier. Taxes arent enjoyable for people of any age, but they can be particularly stressful for younger generations, many of whom may have never filed before. In fact, one in four Gen Z taxpayers said theyll need a therapist to deal with it stress of tax filing season, according to a recent cash app taxes survey. Additionally, 54% said filing taxes is either brought them to tears in the past or expected to this year. My comment it is not just Jen Zers. The IR's this year asked me for the basis of my investment in John J. Lothian and company leading all the way back to 2003. That was fun. Here are the top three stories from Mondays GlN our top story Monday was US treasury identified cybersecurity risks and challenges of AI in financial services from Monitor daily. Second was Leo Malama discusses AI China US relations and literary ventures at FIA International Futures Industry Conference. A John Lothian news video interview from FIA Boca 2024 3rd was appointment of the director of the Financial Research center from the Financial services Agency about the employment of Doctor Yanagawa Noriyuki, professor of graduate School of Economics, University of Tokyo. Here are the top three stories from the lead section of today's JLN. The first story is from Reuters. The headline GE completes three way split, breaking off from its storied past, General Electric on Tuesday completed its breakup into three companies, marking the end of an era for the industrial conglomerate pioneer that was once a symbol of american business power. The industrial giants, aerospace and energy businesses will begin trading on the New York Stock Exchange as separate entities on Tuesday, more than a year after its healthcare business began trading on the Nasdaq. Here's another story, this one from the trade the headline trade web wins bid to supply electronic trading platforms to European Central bank deal includes two framework agreements to supply electronic platforms for a variety of bonds, treasuries and interest rate swaps. Tradeweb has won the bid to supply electronic trading platforms to the European Central bank for the next four years. As part of the deal, the fixed income platform provider will provide etps for the central bank and other Eurosystem national central banks.
[00:10:19] The term of the contract is four years, with the option to extend twice for an additional two years tradewebs etps will cover the trading of euro denominated bonds, us treasuries, japanese government bonds, USD and euro denominated supernationals, sovereign and agency bonds, and us dollar and japanese yen denominated interest rate swaps.
[00:10:47] Here's another story, this one one from Bloomberg. The headline the bank run of 2023 could easily happen again. Regulators have yet to address the systems vulnerability to sudden depositor withdrawals. Ever since the demise of Silicon Valley bank in March 2023, regulators have been focused primarily on increasing loss absorbing capital at the largest us financial institutions. Much less attention has been paid to the problem that precipitated last springs banking crisis, banks vulnerability to sudden depositor withdrawals. The SVB debacle exposed three weaknesses. First, depositors pulled their money much faster than assumed by requirements such as the liquidity coverage ratio, intended to ensure that banks have enough cash and easy to sell assets to survive 30 days of withdrawals. Second, the Federal Reserve couldn't provide sufficient emergency discount window loans because banks hadn't pledged enough collateral to the Fed. Third, uninsured depositors had ample reason to run because they couldn't be sure the government would make them whole. Such bailouts can happen only after a bank fails and regulators judge that the situation is bad enough to invoke the systemic risk exception.
[00:12:12] 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 Lydia newsletter, email yet, you can enjoy a complimentary 90 day trial by visiting johnlothianews.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.
