Episode Transcript
[00:00:06] Welcome to the John Lothian News Daily Update podcast for October 30, 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 U.S. treasury Secretary Janet Yellen highlighted the rise in fraud across the banking sector, noting it has become a significant, widespread issue, Bloomberg reported. Speaking at an American Bankers association event, Yellen mentioned an increase in fraud involving government checks and emphasized that the Treasury Department is leveraging artificial intelligence to improve fraud detection and response, which has significantly enhanced their efforts. The Monetary Authority of Singapore, or mas, has launched the Global Finance and Technology Network, or gftn, to reinforce Singapore's position as a global fintech leader and enhance international collaboration and financial innovation. Building on the initial phase of fintech growth focused on experimentation and regulatory sandboxes, GFTN aims to deepen collaboration in key areas like payments, asset tokenization, AI and quantum technologies. The network also intends to scale the Singapore Fintech Festival as a premier global fintech event. Ravi Menon, former MAS managing director, will chair GFTN's board, while SOP Nudu Mohanty, MAS outgoing chief fintech officer, will become GFTN's group CEO. Kenneth Gay, currently executive director at MAS, will assume the chief fintech officer role in early 2025.
[00:02:12] Google may have deep pockets, but a Russian court has gone way overboard with its fine to the technology giant, quote, for blocking pro Kremlin media outlets, unquote, the Telegraph reported. The Telegraph said, quote, judges in Moscow are seeking around 20 decillion US dollars from the technology giant, many times the estimated $100 trillion size of the global economy.
[00:02:47] The impact of this fine can be summed up in Google's statement about the astronomical sums in its last earnings statement.
[00:02:57] We do not believe these ongoing legal matters will have a material adverse effect.
[00:03:04] The most actively traded stock yesterday was djt, the Trump Media and Technology Group Corp. Which was up 8.76% and almost up 252% over the past 52 weeks, according to Yahoo Finance. The New York Post reports that the company that operates the Truth Social platform is now worth more than the latest valuation of X or Twitter, privately owned by Elon Musk. Meanwhile, Chinese investors are buying shares of Wisest Company, quote, whose Chinese name, Tuan Da Zhi Zhang, sounds like Trump wins big to Mandarin speakers, Bloomberg reported.
[00:03:55] Florida recently passed a law intended to facilitate investment in the state, but due to a drafting error it unintentionally barred major banks from selling securities, the Wall Street Journal reported. The law, effective October 1, 2024, aimed to prevent criminal actors from exploiting investors, yet inadvertently restricted any bank with past regulatory infractions from offering certain securities impacting large institutions like JP Morgan and Bank of America. After banks flagged the issue, the state used emergency powers related to recent hurricanes to temporarily the restriction. Banks have since resumed operations and a legislative fix is anticipated.
[00:04:48] We have a new host subbing for Ronan Ryan and John Ramsey for the IEX podcast. In a recent episode of Boxes and Lines, Jamie Abramson from IEX interviews Patrice Hayden Meager, founder and CEO of Milkmate, about enhancing workplace support among nursing mothers. They explore how male dominated fields like finance can improve conditions for new moms through supportive policies and facilities for pumping, aiming to create a more inclusive environment for early motherhood. Stephen Bush of the Financial Times has a review of Malcolm Gladwell's Revenge of the Tipping Point, which I will be listening to starting tomorrow on my way back to Chicago. Here are the headlines from in front of Fow's paywall From some recent stories analysis CME's clearing broker approval renews focus on US rules HKE X plans RIDA office next year to boost Middle east ties Exclusive Clear street secures Regulatory approval for UK launch and and Trade body criticizes CME Futures Commission Merchant approval Our most read stories from in front of our previous edition of Jail and Options were US Interest Rate Options Price in Republican Sweep Jump volatility from Reuters FIA statement on CME's FCM license from FIA and Aquis exchange and CBO Europe to launch Simply CT to explore bid for EU equities Consolidated Tape from CBO 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. The first stories from Bloomberg the headline Traders banned from watching World Series amid Ohtani Craze as an estimated 12% of Japan's population tunes in to watch baseball superstar Shohei Ohtani's first World Series, one group is missing out traders in Tokyo who can't view the games on their mobiles or on TV on the trading floor of Deutsche Bank AG in central Tokyo, the TVs are fixed on financial news channels, according to an employee at the German lender. Traders also also can't access their mobile phones while they're in the dealing room, leaving them with almost no way to watch the baseball championship in real time. My comment Blasphemy how do you expect male traders to replenish their testosterone if they can't watch the World Series?
[00:07:53] Here's another story. This is one you heard earlier. Russian Court finds Google 2010 I can't even say it. $22 in fines.
[00:08:10] Don't hold your breath, Putin. This is from the Register.
[00:08:15] A Russian court has ruled that Google owes Russia media stations around US$20 in fines for blocking their content, and the fines could get bigger. To put that in perspective, the World bank estimates that global GDP is around 100 trillion, which is peanuts compared to the prospective fine. Google might be one of the most valuable businesses on planet, but even if Sundar Pichai rummages around the back of the sofa, he won't be able to raise the funds to pay the penalty. Jeff Bergstrom's comment the comic strip kind of puts this in perspective. They use a bigger number, but close enough, I think, to get the point across. How ridiculous this is.
[00:09:08] There's a link for the comic strip.
[00:09:11] Here's another story. This one's from Bloomberg. The headline in Red Blue America Hard Lessons about the Color of money for two financial advisors just 15 minutes away from each other in South Carolina, betting on blue and red America seemed like a surefire way to make money in the thick of culture wars, with companies taking stances on guns and abortion equality and climate change. Jason Britton and Adam Curran both got the same idea investment funds tailored to people's politics. Britain, 47, went after Democrats launching his Exchange Traded fund during the last presidential election to invest in the S&P 500 without the GOP. He named his fund ETF Democratic Large Cap Core Ticker. Demz Curran, 41, followed two years later with a fund for God fearing flag waving conservatives seeking to avoid woke companies. His ETF God Blessed America Ticker with a nod to the south, y'all.
[00:10:27] My comment Mr. Market does not care about politics. Here are the top three stories from Tuesday's jln. Our top story Tuesday was Equus Exchange and CBOE Europe to launch Simplicity to Explore bid and EU equities. Consolidated tape from CBO Global Markets. Second was the 14 best wine openers, according to Sommeliers and Restaurateurs from the Wall Street Journal. Third was my ex post on LinkedIn announcing that its newest options exchange, My Ex Sapphire, officially crossed the 1 million contract milestone. Here are the top three stories from the lead section of today's JLN. The first story is from Bloomberg. CME wins futures commission merchant approval sparking backlash CME Group Inc. Won approval to operate its own Futures Commission merchant, a move that received swift criticism from market participants. The Chicago based exchange operator said it received approval from the National Futures association to establish an fcm, according to a statement Tuesday. While CME says it remains committed to the FCM model, which is responsible for accepting orders to buy or sell futures contracts, options on futures and money to complete customer orders, there is potential for change. As our industry continues to evolve, our FCM will ensure CME Group is in a strong position to quickly adapt to our clients changing business needs, chief Executive Terry Duffy said in the statement. Here's another story, this one from Bloomberg the headline Super Tycoon Kong Ray Threatens Another Halt of Taiwan Exchange the most powerful typhoon in almost six decades threatening to barrel across Taiwan this late in the year has raised the prospect of another suspension of the island's $2.5 trillion stock exchange by a storm. Super Typhoon Kong Ray has intensified as it skirts the Philippines and tracks towards Taiwan, where it's expected to make landfall on Thursday afternoon. The storm has maximum sustained wind of 125 knots. That's 23032 kilometers per hour, according to the US Navy Joint Typhoon Warning Center.
[00:13:18] And then finally one more story. This is also from Bloomberg the headline traders $10,000 spoofing profit haunts Nomura Clients have dumped Nomura from underwriting corporate bonds at 8:45am On a spring day in 2021, Nomura Holdings Inc. Trader began a series of complex transactions over five hours on the Osaka exchange that would earn Japan's largest securities firm next to nothing. But it cost dearly. Using a tactic called layering, a version of spoofing, the trader offered to sell derivatives linked to more than a billion dollars worth of Japanese government bonds, only to subsequently cancel positions as rivals cut their own prices. In response, the traders snapped up the cheaper contracts and then resold them.
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[00:15:04] Have a great day and stay safe and treat people the same way you want to be treated with respect, equality and justice. Goodbye. This podcast has been produced by Andrew Lothian.
