Episode Transcript
[00:00:06] Welcome to the John Lothian News daily Update podcast for August 21, 2024. I am your host, John Lothian. This podcast is brought to you by John Lothian News, the home of Marketswickie and Marketswicky Education. Thank you for joining us. Here are the hits and takes comments from today's JLN mea culpa when I was looking for an FIA news piece yesterday, I grabbed the wrong one. I grabbed a July 18 release of FIA releases best practices for automated trading risk controls and system safeguards, rather than the one I was looking for. FIA responds to Sebi consultation on strengthening the index derivatives market this is me removing egg from my face, alright? The FIA release we should have included from August 19 says FIA has submitted a response to the securities and Exchange Board of India Sebi, their consultation on measures to strengthen the index derivatives framework for increased investor protection and market stability.
[00:01:23] In response, FIA expressed support for the underlying intent of the measures and offered several suggestions to enhance these proposals. FIA also urged SeBI to carefully consider any potential unintended consequences of the proposed measures and emphasize the importance of fostering a balanced development of Indias derivatives ecosystem.
[00:01:51] There is a non news news in the member class action lawsuit against the CME in Circuit Court of Cook County, Illinois Chancery Division. The court has cancelled the status date previously set for August 22, 2024 at 09:30 a.m. the parties are instructed to work with the court's clerk to arrange a new status date. When the price of gold traded above $2,500 an ounce and a 400 ounce bar was worth $1 million for the first time, the CBOT's old kilo contract, 32.5oz, was worth over $80,000 for the first time.
[00:02:39] Here are excerpts from in front of Fow's paywall from some recent stories investors are increasingly turning to hedge funds for heroic diversifiers, stocks that perform well in declining markets, according to Toby Goodworth of B Finance. Meanwhile, Hong Kong exchanges and clearing reported flat revenue for the first half of the year, with gains in commodities markets failing to offset declines in cash and warrants. Markets in Europe, in a review of commodity derivatives under the MiFid aims to enhance transparency and sustainability, as noted by Capco. Additionally, the World Federation of Exchanges is advocating for a cautious approach to regulating artificial intelligence to maintain a balance between safety and innovation.
[00:03:41] The Financial Times published an article titled Netflix of volunteering eases burden of corporate charity work with the sub headline new apps allow employees to help out on their own terms, but do not give non profit groups what they need. The article discusses how new apps like on hand are making corporate volunteering easier by allowing employees to choose volunteer opportunities, much like selecting a movie on Netflix. Despite many companies offering paid volunteer leave, only a small percentage of employees use it. Platforms like on hand aim to boost participation by providing convenient, flexible options. However, there is a mismatch between what companies want easy, fun activities and what charities actually need specialized skills. While these platforms can help increase volunteer engagement and serve as a recruitment tool, the real impact depends on align corporate goals with charity needs.
[00:04:45] Host and editor Raleigh Williams asks who is taking America's water in the latest episode of Climate Town. The answer might surprise you. It's a humorous look at a serious subject. Give it a view with the link in today's newsletter. Our most read stories from our previous edition of JLN Options oil options show markets Middle east worries starting to ease from Bloomberg Citi says hedge funds are using dollars for new carry trades from Bloomberg, and the market volatility has calmed down. Or has it? From Barron's 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.
[00:05:34] Here's a video from our IDX coverage breaking records and comfort zones Rama Pillai's Kilt challenge journey in a lively interview at FIA's IDX in London, John Lothianu sat down with SGX managing director Rama Pillay to discuss his participation in the FIA's IDX gala Kilt Challenge, a fundraising effort that is part of the charity event supporting futures for kids. The conversation explored Pillai's motivations, experiences and the impressive fundraising success he achieved. You can watch this video on johnlothianews.com and then here's another video from IDX. Navigating regulatory challenges an interview with CFTC Commissioner Summer Mersinger in a recent interview at FIA's IDX, John Lothianu sat down with CFTC commissioner Summer Mersinger for the JLN Industry Leaders series. The interview covered a wide range of topics relevant to the current state and future of commodity futures trading regulation. Watch this video on johnlothianews.com and then heres a special message from JLN. LaSalle street moves scouts forward fundraiser on September 25, the pathway to Adventure Council of the Boy Scouts of America is hosting the LaSalle street move scouts forward event at the Chicago Board of Trade Building. This annual tradition dating back to 1971, brings together professionals from La Salle street to support scouting in our community. The highlight of the evening will be a Pinewood derby race, you'll have the opportunity to build your own car or lease one at the event. It's a fantastic way to tap into into your competitive spirit while enjoying cocktails and delicious food with colleagues and friends. Your participation will directly benefit scouting programs that help develop leadership skills and character in our youth. There are various sponsorship levels available to suit your preferences. The event will be held at Ceres with plans to move outdoors if weather permits.
[00:07:51] It's an opportunity to network, have fun and make a difference. You can register at www.tinyurl.com LaSalle four Scouts here's a story from Bloomberg the headline majority of fintech partner banks report losses over compliance some sponsor banks are reporting losses of $1 million or more over 25% of FDIC action directed at sponsor banks in 2024. In the age of digital banking, an increasing number of financial technology companies are partnering with small and mid sized sponsor banks to provide services, but not without a cost. An estimated 75% of such sponsor banks have suffered losses of $100,000 or more as a result of compliance violations, according to identity risk management platform Aloist 2024 state of embedded finance report. That includes fines associated with regulatory enforcement actions against the banks as well as direct financial losses associated with the compliance failures. My comment you need to know the rules and play by them.
[00:09:11] Here's another story, this one from CNBC. The headline Starbucks new CEO will super commute 1000 miles from California to Seattle office instead of relocating. Newly appointed Starbucks CEO Brian Nickel wont be required to relocate to the companys headquarters in Seattle when he joins the coffee giant next month. Instead, Starbucks says Nichols can live in his home in Newport Beach, California, and commute to Starbucks head office 1000 miles away on a corporate jet, according to the new CEO's offer letter, which was made public in an SEC filing last week. My comment I used to super commute, but only from Wisconsin. Here's another story, this one from Crane Chicago business the headline a Lincoln park mansion was once listed at $50 million. Here is what it sold for eight years later. A palatial home on Burling street sold today for $15.25 million, the highest home price in the Chicago area so far in 2024, and the year's only sale? Over $10 million. Even so, the sale comes at a loss in the tens of millions of dollars for Richard and Michaela Parrillo, who built the 25,000 square foot mansion on eight city lots in 2010. The Parillos first put the mansion up for sale at $50 million in December 2016, but had cut the asking price by more than half, to 23.5 million by the time it went under contract to buyers in July. The sale price is just a little more than 30% of the perillos asking price from eight years ago and about 65% of their final asking price.
[00:11:13] The sellers put more than $65 million into this mansion, including the land. The buyers bought it for less than the price of the land.
[00:11:23] Here's a story from the Wall Street Journal. The headline from grain to glass Diagio sustainability chief takes holistic approach to net zero Ewan Andrews says growing up in the Scottish Borders distilled in him a love of the environment that brings to his role at the maker of Johnnie Walker whiskey and Guinness beer. If you're one of the world's foremost makers of alcoholic drinks, supplies of clean, fresh water are paramount to this survival of your business. Little wonder then, that the chief sustainability officer of Diageo, the company behind the world famous brands including Johnnie Walker Whiskey and Guinness Beer, says that most of his sleepless nights are spent worrying about water wastage. My comment net zero is not adding up like it used to. Here are the top three stories from Wednesday's JLN. Our top clicked item Tuesday was FIA releases best practices for automated trading risk controls and system safeguards from the FIA. Sorry about that. 1 second was city traders depend on Bloomberg, but there is a new plot to smash its dominance from the Telegraph. Third was the obituary for Dennis Murray, which was our top story on Monday. Here are the top three stories from the lead section of today's JLN. The first story is from Bloomberg. The headline bond traders amassing historic level of risk on rate cut bet bond traders are taking on a record amount of risk as they bet big on a Treasury market rally. Fueled by expectations the Federal Reserve will embark on its first interest rate cut in more than four years. The number of leveraged positions in treasury futures has risen to an all time high ahead of the central banks annual economic symposium in Jackson Hole, Wyoming, which will commence on Thursday. At the event, Fed chair Jerome Powell will speak and provide more insights into the central banks monetary policy path for the rest of the year. Here's another story, this one from Reuters. The headline Hong Kong bourse logs first profit rise in three quarters ipos pick up Hong Kong's borse has booked its first profit increase in three quarters, marking record revenue and income for the April June period as new listings and trading activity picked up. Net income for Hong Kong exchanges and clearing climbed 9% from a year earlier to hk$3.16 billion. That's $405 million, while revenue rose 7%.
[00:14:26] Here's one more story, this one from the Financial Times. The headline gold hits record highs as investors bet on rate cuts us and european buyers position for lower borrowing costs after sitting out much of the precious metals rally, western investors have piled back into gold as they position for us interest rate cuts this year, helping to drive prices to record highs this week. Prices reached $2,531 per troy ounce in Tuesdays trading, taking gold's gains for the year to more than a fifth, boosted by purchases by institutional investors and bullish hedge fund bets.
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