Episode Transcript
[00:00:14] Welcome to the John Lothian News Daily Update podcast for January 8, 2025. I am your host John Lothian. If you are not subscribed to the John Lothian Newsletter, you can do so on johnlothiannews.com follow us on marketswiki.com, linkedIn, Facebook, Instagram X and threads. Let's dive in. Here are the hits and takes Comments from today's JLN News broke this morning that Intercontinental Exchange has acquired the American Financial Exchange, or afx, which renews the relationship between ICE President of Fixed Income and Data Services Chris Edmonds and AFX CEO John Shea. The two were colleagues at International Derivatives Clearing Group LLC, where Edmunds was CEO from 2008 to 2009 and Shea was a founder and Chief marketing officer from 2007 to 2012. AFX, the exchange founded by Richard Sandor, was owned by Seven Ridge, who acquired it from Sandor and other shareholders. This would be the second Sandor founded exchange that ICE has purchased after they bought The Climate Exchange plc, operator of the European Climate Exchange or ECX, the Chicago Climate Exchange or CCX, and the Chicago Climate Futures Exchange, or CCFE in 2010. JLN recently interviewed Shea and this is not the first time a company has been purchased shortly after a positive story about it has been published in jln. Tomorrow, the US Stock markets will be closed for the national day of mourning for the funeral of former President Jimmy Carter. The bond market will be open, but with reduced hours.
[00:02:18] Consult your Exchange website for the specific markets you are trading and its hours of operation for tomorrow. We will publish JLN tomorrow but not JLN Options and the staff will have a given day, which means they will get the rest of the day off after publishing the newsletter. President Elect Donald Trump has proposed a sweeping foreign policy shift focused on US Territorial expansion, suggesting the annexation of Canada, control of Greenland and reclaiming the Panama Canal. The the Wall Street Journal reported. At a press conference, Trump described using economic and military force to achieve these goals, framing them as vital for US Economic security and countering Chinese and Russian influence. While advisors viewed the rhetoric as a negotiating tactic, critics including former officials like Chuck Hagel warn of damaging US Alliances and emboldening adversaries. Trump's comments also include provocative ideas such as renaming the Gulf of Mexico, signaling a potential break from bipartisan foreign policy traditions.
[00:03:38] Also, Facebook founder Mark Zuckerberg was killed in a free clown car accident, it was reported on Facebook.
[00:03:47] And the Wall Street Journal reported that Meta announced the end of fact checking on Facebook and Instagram, citing a commitment to restoring free express and simplifying content policies. Meta will replace fact checkers with a user driven community note system similar to Elon Musk's X platform. The move aligns with efforts to rebuild ties with the incoming Trump administration, including a $1 million donation to Trump's inaugural fund and appointments like Joel Kaplan and UFC President Dana White to key positions.
[00:04:26] Critics such as the Anti Defamation League argue the change prioritizes profits over responsibility, while advertisers remain supportive due to Meta's strong roi. Zuckerberg, who is still alive and well, emphasized a cultural shift towards prioritizing speech over censorship. Ron Filer, an industry veteran and professor of law and director of the center on Financial Services Law at New York Law School, is the latest contributor to the MarketsWiki Education GoFundMe campaign, giving $1,000 yesterday. Thank you Ron for your generosity in supporting our efforts to preserve industry history with our various video projects. With Ron's contribution, we have now raised $80,627 from 227 donations on the GoFundMe site.
[00:05:27] Here are the headlines from in front of Fow's paywall from some recent stories. ICE targets US regional banks with AFX acquisition Commodity price shocks to drive central bank policy bis EEX ends 2024 sharply with volumes up 33% in December. CBOE expands dispersion index plans Metaras Advisors and Analysis US Treasury Clearing will be delayed under Trump Greenwich and CFTC chair Benham latest to resign following Trump victory We are down to Paul in the Group Peter, Paul and Mary After Peter Yarrow died on Tuesday at the age of 86, the New York Times reported. The only living member of the group is Noel Paul Stookey. Mary Travers died in 2009 at the age of 72. Also surviving the group is Puff the Magic Dragon, who is still living in the land of Hanalee. In the latest entry of the Frontrunner, Mike Harris, a newcomer to Chicago, approaches seasoned trader Lena Caldwell outside the CBOT building, impressed by her skill in the trading pit. Despite her initial dismissiveness, Lena allows Mike to walk with her, leading to a spirited exchange filled with banter and laughs as they explore Chicago landmarks from Millennium park to the Chicago River. Their connection deepens over dinner, culminating in a kiss and a night together at Lena's upscale apartment. The following morning, Mike quietly explores Lena's luxurious space, revealing glimpses of her well traveled and affluent life through photographs and decor. While she sleeps, he reflects by the window overlooking Lake Michigan, signaling the start of a complicated relationship between the ambitious traitor and the enigmatic woman he admires. See today's complete entry of auditions and the complete script to date of the frontrunner with a link in today's newsletter. Our most read stories from our previous edition of JLN Options were CBOE Global Markets and Maturious Advisors llc. Collaborate on New US Equity Index first of four in Planned Dispersion Product suite from CBOE fidelity to convert $180 million bond index funds into ETF from the financial Times and currency options trading is skyrocketing as polit up and bets from Bloomberg. 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. Here's a video from our FIA Expo coverage. Memex CEO Jonathan Kellner showcases data driven technology transforming market infrastructure Jonathan Kellner, CEO of Memex, highlighted the company's data centric approach and robust technology infrastructure in an interview with John Lothian, News at FIA Expo. Memex leverages its architecture to harness data, effectively enhancing market surveillance and ensuring integrity through advanced tools like artificial intelligence, kellner said.
[00:09:13] Also see video interviews with Siram Krishnan of the National Stock Exchange and Joe Corona of matrix executions on johnlothiannews.com Here's a story from the Hill the headline Musk asks his followers if the US should liberate the people of Britain from their tyrannical government Tech billionaire Elon Musk on Monday asked his followers on the social platform Axe, which he owns, if the US should liberate the people of Britain from their tyrannical government.
[00:09:52] America should liberate the people of Britain from their tyrannical government.
[00:09:57] Musk captioned a post with a poll on X as highlighted by Mediate, with users able to click yes or no. The UK Prime Minister Ker Dahmer recently condemned the quote, lies and misinformation undermining his country's democracy and his record. Following continued attacks by Musk, the tech billionaire has recently sought to use the power of his social media network to promote far right movements in the UK and Germany. In the past few days, Musk has boosted populist and anti immigrant figures in the UK and Germany, where he has significant business investments. He has pushed for new UK elections, gone after Starmer and voice support for far right figures in the countries such as anti immigrant Tommy Robinson. Here's my comment. Musk is going to get us in a war with the UK while Trump is going to get the US in a war with Denmark, Panama and Canada. Next, both of them will be insulting the Duchy of Grand. Fenwick here's another story, this one from the Wall Street Journal CFTC Chairman to step down when Trump takes Office Rostam Benham has sought a leading role for the CFTC in regulating the cryptocurrency market. Commodity Futures Trading Commission Chairman Rostam Benham said he would step down from his position on January 20 as the country's top derivatives market regulator prepares for a second Trump term. Benham, a Democrat who has served as the CFTC chairman since 2022.
[00:11:42] He previously served as a commissioner between 2017 and 2021 and was named acting chairman in 2021 after his predecessor, Heath Tarbert, resigned when President Biden took office. My comment you knew Chairman Bennett will step down on January 20th already, as he told you in the video interview he did with JLN at FIA Expo in November. Here are the top three stories from Tuesday's jln. Our top clicked item Tuesday was Commodity Derivatives Regulation Where Do We Go From Here? An event taking place today at 10:00am Eastern Time in which CFTC Chairman Rostam Benham will discuss his thoughts on the future of commodity derivatives regulation and the regulatory future for cryptocurrencies from Brookings. Second was CBO Global Markets Reports Trading Volume for December and full year 2024, a CBO press release. Third was the page for the GoFundMe campaign for markets, Wiki Education Video Series and John Lothian News. Here are the top three stories from the lead section of today's jln. The first is a press release from ice. ICE Acquires American Financial Exchange AFX Intercontinental Exchange Inc. A leading global provider of technology and data, today announced that it has acquired the American Financial Exchange, or afx, an electronic exchange for direct lending and borrowing for American banks and financial institutions. Ice has acquired 100% of AFX from Sevenridge. The acquisition is not expected to have a material impact On Ice's 2025 financial results or On Ice's deleveraging or capital return plans. AFX becoming part of ICE marks an extraordinary opportunity for AFX, and we are confident that ICE's leadership will amplify AFX's success and its purpose to serve regional and local American banks by creating a transparent, robust and efficient interbank lending ecosystem, said Carsten Kettinger, CEO at Seven Ridge.
[00:14:13] Here's another story, this one from Bloomberg. The headline India Considers lifting ban on Trade in some Crop Futures India is considering revoking a three year ban on futures trading in seven farm commodities, including wheat and unprocessed rice after studies found the steps were counterproductive, according to a person with knowledge of the matter. A government panel recommended ending the suspension after the findings showed that restrictions imposed in 2021 to tame costs had instead disrupted market price discovery, the person said, asking not to be identified as the discussions are private. Local crop rates have also stabilized following fresh harvests, the person said. Here's another story, this one from the Wall Street Journal. The headline Cocoa farmers uproot their plants despite record prices, bad weather, failed government policies and a fast spreading virus reduce output from the world's top cocoa growing countries Cocoa was the best performing commodity in 2024, outpacing even bitcoin, but that hasn't stopped farmers from abandoning the crop. Farmers in the top cocoa producing region of the world are reseeding their lands because of a mixture of bad weather, failed government policies, many of which were aimed at helping farmers, and a fast moving virus that has ravaged their plants. The result is higher prices for chocolate lovers and a steep drop in production from Ivory coast and Ghana, the traditional cocoa behemoths of West Africa.
[00:16:09] Here's one more story for you. Market Sound alarm over deflationary spiral in China Investors are increasingly concerned that China risks sliding into an economic malaise that could last decades. This is from Bloomberg. The Story investors in China's $11 trillion government bond market have never been so pessimistic about the world's second largest economy, with some now piling into bets on a deflationary spiral mirroring Japan's in the 1990s. Yields on Chinese sovereign bonds maturing in 10 years have tumbled in recent weeks to all time lows, creating an unprecedented 300 basis point gap with US peers despite a slew of economic stimulus measures announced by President Xi Jinping's government.
[00:17:08] If you enjoyed this episode, please leave us a review on your preferred listening platform. This podcast has been 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.
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