Episode Transcript
[00:00:06] Welcome to the John Lothian News daily Update podcast for April 10, 2024. I am your host, John Lothian. This podcast is brought to you by John Lothian News, the home of markets wiki and Marketswiki Education. Thank you for joining us. Here are the hits and takes cabinets from today's GLN.
[00:00:26] CibO Global Markets released an article titled debunking options myths on April 9, 2024. Aiming to dispel misconceptions surrounding options trading. The article challenges common myths such as the belief that options trading is only for seasoned professionals, emphasizing that options are accessible and beneficial to a wide range of investors. CBO highlights the history and evolution of options trading, particularly focusing on the rise of same day expiry options and their benefits for investors. Additionally, the article discusses the role of short to dated options in portfolio management, income generation and speculation. While emphasizing the importance of education and informed decision making in options trading, CBO advocates for the recognition of options as valuable and versatile financial tools that can benefit investors of all levels of experience.
[00:01:39] One of the examples in the CBO piece is using options rather than single name equities, especially in volatile market opportunities. There's a story today from Bloomberg with exactly that recommendation titled JPMorgan says use cheap options to bet on chinese stocks. In this case, JPMorgan is recommending buying indices rather than single name options, but the theory is the same. But it is an example of the theory being put into practice. Esma has published a risk analysis article on financial innovation titled Crypto Assets, Market Structure and EU relevance. The article examines patterns in crypto asset secondary markets, noting their growth over the past decade and associated risks highlighted by ESMa. It aims to compare crypto asset trading with traditional financial markets, identifying risk to consumers, market order and financial stability. The analysis supports EU's mica regulation. Crypto asset prices are volatile, with boom bust cycles often co moving with equity markets. Market capitalization and trading volumes are concentrated in a few assets, with most transactions occurring within the crypto system. USD and South Korean won dominate fiat currency involvement with minimal euro transactions. Despite mica trading volumes are concentrated in a few exchanges, with liquidity higher in larger exchanges. Identifying order flow, origin and exchange location remains challenging. Around 55% of trading volume occurs in EU licensed crypto exchanges, but many transactions likely happen outside the EU.
[00:03:49] Mark your calendars join us on Friday, June 14 for the annual Citi MND Network Cricket Day, dedicated to raising funds for the Motor Neuron Disease MND association. The event will take place at Blackheath Cricket Club, the Rectory Field, Charlton Road, Blackheath London SE 37 Ey.
[00:04:18] Six teams, including KRM, 22, ICE, ABN, AMro Bank, NV Trading Technologies and Stonex Group Inc. Will compete for the prestigious David Setters Trophy. Play kicks off mid morning and the bar will open around noon. Don't miss out on this opportunity to support a worthy cause while enjoying some thrilling cricket action. For inquiries, call zero 208-858-1578 I shop at Costco and also own some stock in the company because I believe in owning what you use. However, I have not gone to Costco to buy gold bars or silver coins, though it is selling 1oz. Bars made of nearly pure 24 karat gold priced at about $2,000 have made the company about 100 million to $200 million, Wells Fargo said in a research report. USA Today reported the warehouse retailer expanded into the metal market beyond gold by offering non refundable tubes of 25 1oz Canada maple leaf silver coins priced at around $680, which quickly sold out online.
[00:05:45] Maybe now we know another reason why gold is going up increased distribution and sales of coins.
[00:05:53] Anna Halgren is starting a new position as director of product marketing at Nasdaq. She was formerly co head of marketing and communications at Snober.
[00:06:05] Helena Stenbaum is starting a new position as senior manager, retention marketing, financial technology and Nasdaq. She was previously marketing and event manager at Nasdaq Technology.
[00:06:21] Nasdaqs report 2023 global net zero found that 88% of companies feel internal and external pressure to set a net zero target as part of their climate change efforts. The independent study examined how companies are structuring and resourcing their sustainability teams, crafting their ESG and climate risk mitigation strategies, accessing barriers to and drivers of their sustainability agendas and planning their technology investment plans. Learn more and download the report with a link in today's newsletter. Our most read stories from our previous edition of JLN options were VIx remains above 15 even as market moves muted from market Watch the bitcoin halving is coming how are options traders position from Cointelegraph and stock market rally has likely reached a tipping point following spike in Wall Street's fear gate. From Market Watch subscribe to the free JLN Options newsletter with the link in today's JLN. Here are more stories from the first reads section of today's JLN. Here's a video from our FIA Boca coverage industry analyst Larry Tabb discusses cryptocurrency and market dynamics at FIA Futures conference at the FIA International Futures conference in Boca Raton, Florida. John Lothian News conducted an interview with Larry Tabb of Bloomberg Intelligence as part of the JLN Industry Leader video series sponsored by Wedbush. Tab, known for his expertise in industry and market analysis, shared his insights into cryptocurrencies, artificial intelligence, equity options growth, and increased demand for us equities during non traditional market hours.
[00:08:21] You can watch this video on johnlothiannews.com and then heres another video from our FIA Boca coverage. This one is with Stefan Bujna of Euronext. Euronext CEO Bujna discusses AI, Brexit and ESG at FIA conference Stefan Buzhner says you cannot afford to be late to AI, but also that exchange matching engine operators need to be precise, not roughly correct. The Euronext CEO spoke to John Lodia, news at the FIA International Futures Industry Conference, Boca Raton, Florida, as part of the JLN Industry Leaders series sponsored by Wedbush. Bujna pulled no punches in addressing the impact of AI, Brexit, geopolitical risks, cybersecurity threats, and staying competitive. You watch this video on johnlothiannews.com. Heres a story from the Financial Times. The headline OpenAI and meta ready new AI models capable of reasoning upgrades are part of a new wave of large language models being released this year. OpenAI and Meta are on the brink of releasing new artificial intelligence models that they say will be capable of reasoning and planning critical steps towards achieving superhuman cognition machines. This week, executives at OpenAI and Meta signaled that they are preparing to launch the next versions of their large language models, the systems that power generative AI applications such as jet, GBT.
[00:10:11] My comment theirs is not to reason why, theirs but to do and die. Into the valley of Death rode the 600 cannon to the right of them, cannon to the left of them, cannon in front of them volleyed and thundered, stormed at with shot and shell. Boldly they rode and well into the jaws of death, into the mouth of hell, rode the 600 from Alfred Lord Tennyson.
[00:10:47] Heres another story, this one from the BBC the headline retiring in your sixties is becoming an impossible goal is 75. The new 65 people are living longer and daily life is getting more expensive. It may be time to rethink the timeline for leaving the workplace. Handing in your proverbial badge as a sexagenarian has been the goal for many workers around the world. Turning 65 would open a golden portal to retirement. Yet increasingly, the idea of stepping away from the workforce in your sixties doesn't seem realistic or even sensible for many people, especially now. Some major financial figure heads agree. My comment I think this is right? My retirement goal is 72, when I can start to receive Social Security and may be old enough to be cute again.
[00:11:48] Here's another story, this one from Bloomberg. The headline how a pioneering blackjack master beats the odds of aging legendary gambler and hedge fund manager Edward Thorpe, 91, shares what he's learned about exercise, diet and managing risk in all areas of life. The mathematics professor and hedge fund manager Edward Thorpe rocketed to fame in the early 1960s by showing readers how to best casinos in blackjack. His book, Beat the dealer laid out a groundbreaking system of card counting followed by guidelines to roulette and other gambling games. Thorpe also invented or perfected a number of quantitative hedge fund strategies being used today, and he delivered 30 years of 20% annual returns for the hedge funds he operated with only a handful of down months, none large.
[00:12:52] My comment his success is just like in the markets he thinks for himself.
[00:12:59] That was the first thing I was taught about trading. Here are the top three stories from Tuesdays JLN our top story Tuesday was I am worried Fed president issues incredible bitcoin price prediction amid shock inflation warning from Forbes. Second was Simone, the AI that nearly took down a bank, an April Fools Day story from risk.net dot. Third was Citadel security moves data and algorithm testing to Google Cloud from the Financial Times here are the top six stories from the lead section of today's JLN. The first stories from the Wall Street Journal. The headline the merchant banker who could win the Masters, Stuart Haggistad is a player unlike any other. The 33 year old amateur will compete at Augusta national this week, then head back to his day job on Wall Street. Stuart Haggistad had a compelling reason to ask the merchant bank where he works. For some time off this week, he was going to the masters. What separates him from everyone else on Wall street, jetting down to Augusta national, is that he's not there to take in the action at the first major of the season. Haggistad is actually playing in it in the 89 man field at golf's most prestigious tournament. Hagastad is a player unlike any other. He has a business degree and works full time as an associate at BDT and MSD Partners, an investment and advisory firm that has more than $60 billion in assets under management. But once he shuts down his computer at the end of the day, he finds time to play golf.
[00:14:59] Here's another story, this one from Bloomberg. The headline carbon credits market to get a huge boost as rules relaxed. SBTI says carbon credits can now be used to reduce scope three emissions carbon Markets Watch said it strongly condemns the decision.
[00:15:22] The world's main verifier of corporate climate targets will let companies use carbon credits to reduce the full scope of their emissions, relaxing earlier guidelines and galvanizing a controversial market for green finance. The United nations backed science based Targets initiative said it will allow the use of credits to cut emissions from value chains, otherwise known as scope three, according to a statement on its website.
[00:15:54] Here's another story, this one from Reuters. The headline crypto trading concentration in considerable, considerable concern, says EU Watchdog.
[00:16:08] The high concentration in crypto trading, with binance alone accounting for more than half of the market, raises concern about the impact a failure or malfunction would have on the sector, the EU security watchdog said on Wednesday.
[00:16:26] While this might be advantageous from an efficiency standpoint due to economies of scale, it raises considerable concerns regarding the implications of a failure or malfunction at a major asset or exchange for the wider crypto ecosystem, Asma said in a detailed overview of the market. Here's another story, this one from the Financial Times. The headline era of bribes is over, says commodity trading chiefs CEO of Trafigura, Vital and Gunvor say they have learned lessons from the 2010s scandals. The days of handing out bribes to secure commodity contracts are over, the heads of the world's biggest trading company said, after a series of us bribery scandals put the sector under intense scrutiny. Speaking at the FT commodities Global summit in Lausanne, the heads of vital, Trifigura and Gunfoor each said they had overhauled trading and compliance processes since the that bribery and corruption has no place in commodity trading today.
[00:17:51] Here's another story, this one from the Wall Street Journal. The headline banks strike back against private credit Wall street banks are gaining back ground against non bank lenders when it comes to financing deals. Don't count out the big Wall street banks quite yet. A big narrative in recent years has been that Americas biggest deposit taking investment banks are losing ground to their non bank rivals, the likes of Blackstone and Apollo Global. One worry for banks was that private credit, meaning in this context, lending directly to businesses by alternative asset fund managers, insurers and others, was going to eat into investment banks business originating loans and distributing them to investors.
[00:18:41] Here's another story, this one from Bloomberg. The headline NYSE executive says handful of AI startups are exploring ipos several artificial intelligence startups are looking into the process of going public, according to an executive at the New York Stock Exchange. As the market for tech listings gained steam, I'd say that majority of the companies that are truly pure play AI focused are still mostly financing themselves in private markets, Michael Harris, global head of capital markets at NYSE, said at the informations private capital conference on Tuesday. But we have seen a handful of companies that are at least exploring going through the process.
[00:19:37] 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 Lithian newsletter, email yet, you can enjoy a complimentary 90 day trial by visiting johnlothiannews.com trial. Thank you for your valued support.
[00:20:17] 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.
