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John Lothian Newsletter: World Leaders Meet in Paris to Overcome Divisions on Climate Change; Deutsche Börse to encourage hidden trades; Wall Street Group Pushes Trading of China’s Yuan in U.S.

First Read

All Eyes on Paris, and…Singapore
By JLN Staff

All eyes are on Paris this week, site of the recent terrorist attacks, as the city hosts the COP21 climate change talks that only potentially hold the fate of the planet in their grip. Next week, the focus for the derivatives and trading worlds will shift to Asia, where the FIA will hold its FIA Asia conference.

Our Editor-in-Chief Jim Kharouf will continue his 2015 globetrotting tour by heading to Singapore and to Hong Kong for the conference and some video production work. Jim just returned from Florida from the CME Group’s GFLC conference and has been in Brazil, Qatar and the U.K. in recent months.

John Lothian News has not been to Asia since the fall of 2008 for FIA Asia, held in Tokyo that year. John Lothian arrived in Tokyo just as the financial crisis was at its apex, with AIG and Merrill Lynch hitting the headlines. He ended up moderating a panel for FIA in the place of Chris Hehmeyer, who had the prescience to stay home when he saw the dark clouds of the financial crisis hit. Correlation is not causation, but keep an eye on the market next week just in case.

Get ready to hear more and more about Reg AT, starting with the Sway piece we put together on the subject. Don’t hesitate to use the rule’s page in MarketsReformWiki as a resource to review the debate up to the point when the CFTC issued its rule proposal. There you will find a nice summary of the rule and links to related information.

MarketsWiki Education continues to post solid numbers. We have published most of the 2015 video presentations from New York and Chicago, and we are now rolling out those from last month’s trip to London. Last week we published thoughtful presentations to “the next generation of market participants” by Cinnober Chairman Nils-Robert Persson and Adrienne Seaman, associate general counsel for CME Group, Global Premier sponsor of MarketsWiki Education. With automated trading in the news, we thought we would next release the presentation from Mark Spanbroek, veteran market maker and acting chairman of the European Principal Traders Association (EPTA).

Have a great week!

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COP21 Paris climate talks: a beginner’s guide
Pilita Clark in Paris – FT
The UN has been holding annual climate change talks for 20 years but the two-week COP21 meeting that starts in Paris on Monday is a much more significant meeting than most.
on.ft.com/1Q87ziv

***** Lots of news coming out of Paris. JLN will start to seem like JLN E/E, or so it would appear.

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The rich world must take greater responsibility for climate change
Narendra Modi – FT
Justice demands that carbon curbs should not limit poorer nations’ ability to grow, writes Narendra Modi
In the next few days in Paris, the world will decide the fate of our planet. I hope the climate conference that begins there today will produce an agreement that restores the balance between ecology and economy — between our inheritance and our obligation to the future.
on.ft.com/1HzDI1p

***** Indian Prime Minister chimes in at the start of Paris talks.

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Trying To Stop The Next Flash Crash
JohnLothianNews.com

Last week, the CFTC announced its new automated trading rules, marking a major shift on how automated trading will be developed and implemented in the coming years.
View the Story »
**Check out our updated story on automated trading regulation.

***DA: For a complete summary of the rule, and related documents, plus links to related topics, visit the rule’s page in MarketsReformWiki.

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CHRISTIAN BALE on The Big Short and meeting real-life American Psychos.
by Jessica Pressler
Adam McKay’s The Big Short — the subject of this week’s Vulture cover story — stars Christian Bale as Michael Burry, a California doctor who, despite having only one functioning eye, saw the crisis before anyone else. Here he talks about his character research, shadowing real-life subjects, and his performance in the film, hailed by Big Short author Michael Lewis as “borderline creepy.”
bit.ly/1Pnl4wl

***** The reality became a book, which now becomes a movie.

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Which countries are best at English as a second language?
By Joe Myers – World Economic Forum
English is the world’s most widely spoken language – however, of a total 1.5bn speakers, only 375m are classified as native. Therefore, around the world over 1bn people speak English as a second language, but where is proficiency highest?
bit.ly/1Nl2frh

****** I want to know who speaks English more, the U.S. or the U.K.?

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Lead Stories

World Leaders Meet in Paris to Overcome Divisions on Climate Change
By WILLIAM HOROBIN and WILLIAM MAULDIN – WSJ
Tough negotiations lie ahead between rich and poor economies, high polluters and countries already suffering from rising temperatures
World leaders converged on Paris on Monday for international climate talks amid an unprecedented security lockdown, two weeks after gunmen and suicide bombers killed 130 people in a string of terror attacks.
on.wsj.com/21otV4v

Deutsche Börse to encourage hidden trades
Philip Stafford – FT
Deutsche Börse is to follow in the footsteps of the London Stock Exchange Group by encouraging investors to trade large blocks of shares hidden from public view without breaching new rules on controversial “dark pools”.
on.ft.com/1TfZfwm

Momentum Is Growing for a Climate Deal in Paris
Alex Morales – Bloomberg
At least 177 nations have submitted pledges on climate change
Disagreement remains on finance, review mechanism, legal form
More than 140 world leaders including U.S. President Barack Obama and Xi Jinping of China are gathering in Paris for France’s biggest diplomatic event since 1948, striving to reach the first truly global deal to curb greenhouse gases.
bloom.bg/1lpAenI

Wall Street Group Pushes Trading of China’s Yuan in U.S.; Michael Bloomberg, Henry Paulson, Timothy Geithner are group members
By JUSTIN BAER – WSJ
Michael Bloomberg and an all-star cast of former top U.S. officials are leading a push to bring the trading of China’s currency to Wall Street.
on.wsj.com/1MZfRVz

Europe needs a sense of strategic direction to survive
Wolfgang Munchau – FT
Too many major events are occurring simultaneously: soon we will need a database to keep track
Take three statements by the three of Europe’s most senior politicians last week, and then do the maths.
on.ft.com/1LIkSQz

Fed to take up ‘too big to fail’ emergency lending curb
Reuters
The Federal Reserve Board will consider on Monday a proposal to curb its emergency lending powers, a change demanded by Congress after the central bank’s controversial decision to aid AIG (AIG.N), Citigroup (C.N) and others in 2008.
reut.rs/1lpzpew

HKEx expands product portfolio for future growth
Charles Li, HKEx
As we near the end of 2015, we are already starting to look ahead to what next year will bring. This year was a major milestone in capital market development in Mainland China as we experienced the first full year of Shanghai-Hong Kong Stock Connect. This major market innovation is not only bringing new liquidity to Shanghai and Hong Kong, it is also subtly altering the ecology and investment demands in the two markets.
bit.ly/1Nl2UsE

Obama: COP21 Paris Climate Talks Could Be ‘Turning Point’ For Planet
Bloomberg
U.S. President Barack Obama told an unprecedented gathering of world leaders in Paris that talks in the French capital could help deliver a lasting global climate deal.
bloom.bg/1OztzRD

COP21 Paris climate talks: billionaires join forces in energy push
Barney Jopson in Washington – FT
Bill Gates has joined forces with Jeff Bezos, Jack Ma, Mukesh Ambani and a roll call of other billionaires in a push for billions of dollars of new private and public investment in “clean energy”.
on.ft.com/1NibwMs

Behind China’s Evolution From Climate Deal Holdout to Leader
Bloomberg News
Pollution backlash at home leads to closure of coal plants
Energy use set to decline on shift away from heavy industry
Back in 2009, China was a reluctant partner during major climate negotiations in Copenhagen that eventually collapsed amid recriminations between rich and poor nations. This time around the world’s biggest polluter is regarded as a driving force behind what could be a comprehensive deal at a world climate summit in Paris.
bloom.bg/1Ozuamf

Banks embrace ‘the age of asset management’
FT
“The age of asset management is upon us,” said Andrew Haldane, chief economist of the Bank of England, in a speech that became the talking point of the financial industry 18 months ago.
on.ft.com/1Ozsjhu

The Silk Road Affair: Power, Pop and a Bunch of Billionaires
Stephanie Baker – Bloomberg
Even in post-Soviet Uzbekistan, an ancient crossroads where torture and bribery allegations are endemic, Gulnara Karimova, the president’s Harvard-educated daughter, stood out for her ruthlessness.
bloom.bg/1RgqNn5

The folly of the fiscal break-even oil price
Michael Levi – FT
Last summer, when oil prices were still above $100 a barrel, people had a theory for why they would never fall much below that number.
on.ft.com/1lTRz8R

Regulatory

Citic, Haitong, Guosen Probed on Alleged Margin-Trading Breaches
Bloomberg News
China’s regulators investigating brokerages after summer rout
Firms suspected of breaching rules on signing client contracts
China’s securities regulator is investigating Citic Securities Co., Haitong Securities Co. and Guosen Securities Co. over alleged breaches of rules on margin and short-selling contracts.
bloom.bg/1TnezZ1

At Wells Fargo, How Far Did Bank’s Sales Culture Go?; Regulators examine whether San Francisco-based lender pushed employees too hard to meet quotas
By EMILY GLAZER – WSJ
Wells Fargo & Co. has long been the envy of Wall Street for its ability to get customers to load up on multiple products and services.
on.wsj.com/1LInP3A

Farewell listing agreement, welcome new regulation; From December 1, companies will have to deal with disclosure of material information
Jayshree P Upadhyay – Business Standard
Starting December 1, listing agreements between listed entities and exchanges will become redundant, as the contractual agreements between the two will be replaced by a listing regulation. The Securities and Exchange Board of India (Sebi) had in November last year cleared the listing regulation and companies would need to be compliant with these from the beginning of next month.
bit.ly/1TnkAEZ

Improper delegation of authorised activities – a notice for financial adviser firms and their advisers
UK FCA
Firms that are approached to delegate their regulated activities, such as providing pension switching advice, to an unauthorised third party need to be aware of the serious implications that may arise as a result of entering into this type of arrangement.
bit.ly/1IjD9Zo

CP15/40: Financial Services Compensation Scheme: changes to the Compensation sourcebook
UK FCA
In this paper we consult on proposed changes to some of the rules in our Compensation sourcebook (COMP) that govern the operation of the Financial Services Compensation Scheme (FSCS).
bit.ly/1PVSCl7

Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
SEC

    • BATS: Notice of Filing of a Proposed Rule Change to Adopt Rule 11.27 Regarding the Data Collection Requirements of the Tick Size Pilot Program (Release No. 34-76524; File No. SR-BATS-2015-102; November 25, 2015); see also Exhibit 5

 

  • NYSEMKT: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Establishing Fees for the NYSE MKT Integrated Feed (Release No. 34-76525; File No. SR-NYSEMKT-2015-95; November 25, 2015); see also Exhibit 5
    jlne.ws/1eCTnOv

    Exchanges & Trading Facilities

    Euronext Pursues Commitment To SRI With New Version Of Its Low Carbon 100 Europe Index
    Press Release
    Euronext, the eurozone’s leading exchange, today announced a major change in the methodology used for its Low Carbon 100 Europe Index, revolutionising the traditional approach to assessing companies’ CO2 emissions. This new method is based on a more efficient means of measuring the energy performance of businesses, and offers investors a unique index-based solution.
    bit.ly/1Nidnkf

    Foreign investors pitch to expedite listing of NSE, BSE
    According to them, listing of the bourses will help various public sector entities and others who have invested there
    Press Trust of India – Business Standard
    Large foreign investors including Goldman Sachs, Temasek and Morgan Stanley have approached the government to expedite the process for listing of top stock exchanges BSE and NSE, where they hold significant stakes.
    bit.ly/1Tg2jbU

    Report on Initial Public Offering Applications, Delisting and Suspensions; (As at 30 November 2015)
    HKEX
    bit.ly/1SrEz4D

    SGX reprimands Sunvic Chemical Holdings Limited
    SGX
    Public reprimand: breaches of Listing Rules
    bit.ly/1SrEfTm

    NYSE Is Delisting National Bank of Greece After 91% Plunge
    Alex Longley – Bloomberg
    The New York Stock Exchange is delisting American depositary receipts of National Bank of Greece SA after they lost 91 percent of their value this year.
    bloom.bg/1lpyM4w

    The IEX Exchange: Look Before You Leap
    John Comerford – Instinet via Tabb Forum
    IEX ATS’s steady rise has demonstrated that there must be something fundamentally valuable about its offering. But converting IEX to an exchange involves more than applying its novel ATS business model to a broader market, and agency broker Instinet wonders whether its clients would be better served by IEX in its present form rather than as an exchange.
    bit.ly/1Ivddox

    Hedge Funds & Managed Futures

    Here’s How to Spy on the Market’s Biggest Movers and Shakers…
    By Greg Guenthner
    Having a rough year? Quit whining, you pansy. At least you’re not Bill Ackman…
    bit.ly/1YCYOQx

    Forget Going Public, U.S. Companies Want to Get Bought; Market fears and a booming M&A market have firms cutting IPO plans
    By TELIS DEMOS and CORRIE DRIEBUSCH – FT
    U.S. companies are dropping initial public offerings and selling themselves at the highest rate in three years. This underscores the gap between volatile financial markets and a booming merger business.
    on.wsj.com/1XrtOFT

    Noble Group’s liquidity squeeze in the spotlight
    Neil Hume and David Sheppard – FT
    Trader strives to preserve investment grade rating by raising $500m from investors or asset sale
    When Noble Group chief executive Yusuf Alireza unveiled third-quarter results on November 12, he was keen to highlight the progress made since Asia’s biggest commodity trader found itself at the centre of an accounting storm.
    on.ft.com/1IuV9L9

    After Career at UBS and Citigroup, Emmanuel Starts Hedge Fund
    Bei Hu – Bloomberg
    Emmanuel’s EFM started trading of global growth stock fund
    EFM’s fund to open to outside investor money on Jan. 1
    Jeff Emmanuel is breaking into the hedge-fund industry after a career spanning equity research, deal making and investment banking at Citigroup Inc. and UBS Group AG.
    bloom.bg/1Ozs8mj

    Forex forecasts focus on policy fallout
    Roger Blitz – FT
    The currency market forecast looks reasonably clear from here, but it will not be long before the weather turns.
    on.ft.com/1QP5XvA

    Boom or bust, private equity has strength to survive through the cycle
    By Paul Hodkinson – Financial News
    It is no surprise that people have begun to predict a dismal period for private equity. Although the industry hates to admit it, history shows it is prone to cycles and that these are closely linked to the stock market.
    bit.ly/1TfYsMa

    There’s a Big Drop in U.S. Treasury Debt Supply Coming in 2016
    Liz McCormick – Bloomberg
    Wall Street bond dealers predict 26% decrease in net issuance
    Drop-off may keep a lid on long-term U.S. yields as Fed looms
    Lost in the debate over the U.S. Treasury market’s resilience as the Federal Reserve starts to raise interest rates is one simple fact: supply is falling — and fast.
    bloom.bg/1Tnhsce

    World’s Biggest Pension Fund Loses $64 Billion Amid Equity Rout
    Anna Kitanaka – Bloomberg
    GPIF lost 8 trillion yen on Japanese, foreign stock holdings
    Fund posts worst return in comparable data starting 2008
    The world’s biggest pension fund posted its worst quarterly loss since at least 2008 after a global stock rout in August and September wiped $64 billion off the Japanese asset manager’s investments.
    bloom.bg/21otg33

    Think of Debt as Pollution
    By Clive Crook – BloombergView
    There are so many works on the global financial crisis by now that it’s getting harder to justify any more, but Adair Turner’s new book, “Between Debt and the Devil,” is definitely worth your time. (Bloomberg View recently published two excerpts.)
    bv.ms/1TnhQYj

    Iron ore prices keep crashing, adding to global growth fears
    By Victor Reklaitis – MarketWatch
    Stackers stand next to piles of iron ore in Malaysia last year.
    It’s another ugly day for iron ore, with analysts fretting about a big round number falling by the wayside.
    on.mktw.net/1LIodit

    Banks & Brokers

    Deutsche Bank Stops Taking On Some Clients During Review
    Nicholas Comfort – Bloomberg
    Bank will suspend new products in some riskier locations
    Firm to complete procedures before working with new customers
    Deutsche Bank AG said the management board will review its procedures for bringing on new customers as co-Chief Executive Officer John Cryan seeks to tighten controls and avoid a repeat of regulatory investigations of the lender.
    bloom.bg/1MPMAP2

    Deutsche Bank created complex tax avoidance strategies
    Gina Chon in Washington and Joe Leahy in São Paulo – FT
    Deutsche Bank has been devising complex international tax avoidance strategies for some of its largest corporate clients, even as G20 governments and the OECD attempt to close loopholes involving moving money to other jurisdictions.
    on.ft.com/1Nl2OS2

    JP Morgan leaves bonus pool unchanged from 2014 – Bloomberg
    Reuters
    JPMorgan Chase & Co is leaving its bonus pool for bankers and traders nearly unchanged from 2014, Bloomberg reported, citing people familiar with the matter.
    reut.rs/1PVNa1H

    Punish errant bankers – or we are doomed to repeat the past; Seven years on from the chaos of the financial crisis the senior managers of our banks seem to be off the hook. But as the charge sheet of wrongdoing grows ever longer a former regulator says it’s time to demand proper accountability.
    Robert Jenkins – The Independent
    I had the honour to serve at the Bank of England’s Financial Policy Committee between 2011 and 2013.
    ind.pn/1OpRXHb

    Clearing & Settlement

    OTC Clear welcomes Standard Chartered as its first UK Clearing Member
    HKEx
    OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx) that provides clearing services for over-the-counter, or OTC, derivatives, welcomes Standard Chartered Bank as its newest clearing member today (Monday).
    bit.ly/1Q87Amr

    LME Clear demonstrates innovative approach with launch of new services
    LME
    Metals industry able to post warrants as collateral for first time
    Successful launch of new trade-compression service
    Smooth upgrade of real-time system, LMEmercury
    LME Clear, the clearing house for the London Metal Exchange (LME) market, today announces the successful launch of two new services: trade compression and the ability to post metals warrants as collateral.
    (NO LINK)

    CLS and Markit Offer Cross Currency Swaps FX Settlement
    John D’Antona Jr. – Traders Magazine
    Traders who execute trades in cross currency swaps can now clear a new way.
    CLS Group (CLS), a provider of risk mitigation and operational services for the global foreign exchange (FX) market, and Markit, a vendor of financial information services, announced the launch of a new FX settlement service for the cross currency swaps market.
    bit.ly/1lTRkKP

    Fractured European Payment System Creates Opportunity For Bitcoin
    The Merkle
    Transferring value around the world is being faced with a lot of scrutiny from both consumers and regulators all over the world. In the current traditional financial world, sending money across country borders is proving to be quite a challenge. The European Payments Council showcased their proposal for a pan-European instant credit transfer scheme for the SEPA zone.
    bit.ly/1NifxjU

    BME Clearing Launches A New Segment For Clearing Interest Rate Swaps – The Interest Rate Swaps Market Is The Largest Globally, With Open Interest Exceeding 270 Trillion Euros
    Press Release
    This new segment is launched in response to the new regulation regarding the “clearing obligation”, which will make it compulsory for financial firms, insurance companies and other non-financial institutions to clear through a CCP all the Interest Rate Swaps with certain features. BME Clearing will cover all the Euro-denominated contracts affected by the new regulation.
    bit.ly/1Nif7dl

    Joint Ventures: Market Utilities Embrace Innovation
    Institutional Investor
    Lines are blurring between old-line, fixed function utilities and aggressively commercial business models.
    bit.ly/1NifMvj

    Indexes & Products

    Banks Supplant Oil, Destroying S&P 500 Profit Growth Outlook
    Bloomberg Business
    The two-quarter retreat in Standard & Poor’s 500 Index earnings is about to become a three-quarter swoon, and this time it isn’t just because of plunging energy prices. Bank profit estimates are falling at the fastest pace in four years, bringing the overall forecast for S&P 500 earnings in the fourth quarter to a decline of 5.6 percent, compared with a gain of 1.4 percent as recently as August. Financial institutions are exerting an ever-increasing drag on analyst projections: what had been expected to be a 16 percent surge in their October-to-December income has narrowed to less than 1 percent.
    bloom.bg/1NigIQl

    Santa Claus & Small Caps: Russell 2000(R) Index Historical Returns Suggest Holiday Lift for Small Companies
    US small-cap stocks have had a positive return between November 20 (or closest market day close) and year-end in 18 of the last 20 years. US large-cap stocks have also had great success at year end, also showing a positive return in 18 of the last 20 years. Yet the “Santa Claus Effect” has been more pronounced in small caps versus large caps, with the Russell 2000 averaging a 5.6% increase between November 20 and year-end over the last 20 years compared to a 3.4% average increase in the Russell 1000 over the same time period.
    mwne.ws/1NigNn9

    Corruption Probe Plagues Brazil ETF
    ETF Trends
    Brazilian assets have been under pressure as a corruption scandal at state-run oil giant Petroleo Brasileiro impeded government efforts to curb a rising budget deficit and slow inflation. The troubles also dragged on the Brazilian real currency, the world’s worst-performing major currency this year after touching a record low of 4.25 per dollar back in September.
    bit.ly/1NihnkS

    November’s Worst Commodity Nightmare
    S&P Dow Jones Indices
    Unfortunately for commodities, there’s no waking up from this nightmare. It’s real. Since 1970, the S&P GSCI has never seen a Nov. with as many as 21 negative commodities. After a glimmer of hope in Oct., only 3 commodities, sugar, cotton and cocoa are on track to be positive in Nov. In other words, for every one commodity that is positive, seven are negative in Nov., 2015.
    bit.ly/1NihrB1

    Technology

    How Technology Will Transform Retirement; Get ready for a new array of devices and services that will make it easier to work, stay healthy, live at home and remain connected to friends and family
    By JOSEPH F. COUGHLIN – WSJ
    For the next generation of retirees, the question that will trump all others will be a simple one: How do you add life to longer lives?
    on.wsj.com/1NDulQG

    Swatch, Visa launch pay-by-wrist watch venture
    Reuters
    Swiss watchmaker Swatch SA, Visa Inc and Visa Europe have launched a project that lets Visa cardholders in the United States, Switzerland and Brazil make payments with Swatch’s new “pay-by-the-wrist” Swatch Bellamy watch.
    reut.rs/1QP9MAQ

    Banking and Fintech: An Uncommon Partnership
    The Financial Brand
    A survey of senior bankers and fintech executives provides a unique perspective on the strengths and weaknesses of the current players and the impact of potential transformation of the retail banking industry over the next several years.
    bit.ly/1NihHjr

    Hong Kong, Singapore unlocking their fintech potential
    AsiaOne Asia News
    Fintech is largely an American and European phenomenon, with Silicon Valley, New York and London dominating the global landscape. Asia accounted for only 6 per cent of total 2014 investment, but the region is quickly moving to foster its own fintech ecosystems.
    bit.ly/1NihP2D

    Enforcement

    Danbury Man Convicted of Defrauding Investors
    U.S. Attorney’s Office – FBI
    Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal jury in New Haven today found IAN PARKER BICK, 20, of Danbury, guilty of fraud and money laundering offenses stemming from his operation of Ponzi scheme. The trial before U.S. District Judge Jeffrey Alker Meyer began on November 6.
    1.usa.gov/1LIlVQm

    Environmental & Energy

    Paris Climate Talks Avoid Scientists’ Idea of ‘Carbon Budget’
    By JUSTIN GILLIS – NY Times
    After two decades of talks that failed to slow the relentless pace of global warming, negotiators from almost 200 countries are widely expected to sign a deal in the next two weeks to take concrete steps to cut emissions.
    nyti.ms/1OpUvVV

    Climate change march: 40,000 take to the streets in Sydney – video
    The Guardian
    Ahead of the COP21 climate conference in Paris, an estimated 40,000 festive protesters marched in Sydney on Sunday calling on Australia to play a lead role in brokering binding carbon emissions targets for the world to keep global temperature rise below 2C. The marchers, who ranged in age from the very young to the elderly, were among more than 600,000 people who took to the streets in 175 countries around the world to call for a strong deal in Paris
    bit.ly/1Nib4xL

    Norway urges EU assurances on gas output
    Christian Oliver in Brussels – FT
    Norway, the EU’s most reliable external supplier of gas, is seeking assurances that the bloc will remain committed to the fuel for decades to come so that it can attract investments to build new undersea pipelines from the Arctic.
    on.ft.com/1IjsQoo

    COP21 Paris climate talks: US solar tax credit debate heats up
    Ed Crooks in New York – FT
    As President Barack Obama arrives in Paris for the climate talks, a centrepiece of his country’s renewable energy strategy is under debate at home.
    on.ft.com/1lTRy4C

    OPEC Rivals Become Unwitting Allies in Push for Oil-Market Share
    Grant Smith – Bloomberg
    Iran’s planned ramp-up of exports plays into Saudi strategy
    OPEC likely to keep production policy on Dec. 4, survey shows
    Almost by accident, OPEC adversaries Saudi Arabia and Iran are about to work as a team.
    bloom.bg/1SrGqGy

    Asia-Pacific

    China’s shadow banking risk shifts to booming bond market
    By Nathaniel Taplin and Engen Tham – Reuters
    A year after China’s financial regulators squared up to the systemic perils of “shadow banking”, the threat is shifting to a booming corporate bond market, and risky borrowers’ debt is finding its way into products aimed at retail investors.
    reut.rs/1Xrunzx

    China Plans to Shake Up Electricity Pricing; Planned reforms could lower relatively high power prices in China
    By BRIAN SPEGELE – WSJ
    China’s government on Monday took aim at the nation’s grid companies with a plan to introduce more competition into its power sector that could ultimately lower electricity prices for Chinese factories.
    on.wsj.com/1Tg1BeJ

    HK must leverage on internet to expand China presence
    EJ Insight
    Alibaba vice chairman Joseph Tsai said at a recent forum in Hong Kong that the city is lagging behind the mainland in internet development. China has huge regional disparities and imbalances. Only the internet can reach different areas and communities in such a vast country.
    bit.ly/1NiiTDq

    Mainland China bond issuance falls as dim sum bond at lowest in five years
    South China Morning Post
    Mainland China’s international bond issuance declined this year for the first time since the 2008 financial crisis, while dim sum bond issuance has dropped to a five-year low, according to data company Dealogic.
    bit.ly/1NiiX6f

    Singapore as India’s financial hub?
    Hellenic Shipping News Worldwide
    Hong Kong has played a major role in the evolution of China’s markets and economy. For India, it can be Singapore
    bit.ly/1Nij3e0

    A third of Singapore firms lack confidence in their ability to detect cyber attacks: survey, Companies & Markets News & Top Stories
    The Straits Times
    At least a third of Singapore organisations lack confidence in their ability to detect cyber attacks, going by a recent survey on Monday. This is in line with the global figure, which stands at 36 per cent.
    bit.ly/1Nij6Xl

    Frontier Markets

    Fighter-Jet Dispute Between Russia and Turkey Disrupts Wheat Trade; Russian authorities began suspending exports to Turkey one day after allowing ships to leave
    By ED BALLARD – WSJ
    LONDON—Agricultural dealers said shipments of wheat to Turkey from key Russian ports were put on hold amid continued tensions between the two countries.
    on.wsj.com/1TnfqJ7

    Energy-rich Russia pays little attention to climate change
    By KATHERINE JACOBSEN – AP
    When forest fires roared through Siberia this summer, so vast that the smoke blocked vast Lake Baikal from satellite view, Russian officials blamed the blazes on arsonists and disorganized fire crews. Environmentalists say there was another culprit: global warming.
    bit.ly/1MZhGSs

    Nationwide protest over stock limits on pulses; Traders threaten to stop buying, seek release of seized stocks
    Dilip Kumar Jha – Business Standard
    Traders have threatened to stop trading in protest against stock limits on pulses and raids on their warehouses.
    bit.ly/1SrFmTa

    Iran’s Mines Could Bring in Even More Cash Than Crude
    Ladane Nasseri – Bloomberg
    Metals discovered from exploration worth about $700 billion
    Copper, steel, lead and cement among Iran’s mining resources
    Iran, OPEC’s fifth-largest crude producer, has potential to generate more revenue from mining than it does from crude if the government puts more focus on developing the metals sector, according to Mojtaba Khosrowtaj, first deputy minister in charge of trade at Iran’s Ministry of Industry, Mine and Trade.
    bloom.bg/1OzsA3M

    Emerging-Market Defaults Rise After Asia’s Debt Pileup; Emerging-market corporate defaults hit their highest level in six years
    By ANJANI TRIVEDI – WSJ
    A Chinese fishing company’s failure to repay its lenders this month could prove to be a drop in an ocean of emerging-market corporate-debt defaults, as economic conditions worsen for companies that have spent years piling up their borrowing.
    on.wsj.com/1Nl4rip

    Sebi likely to unveil electronic platform for corporate bonds
    Jayshree P Upadhyay & Anup Roy – Business Standard
    Currently, close to 90% of bond issuances happen through the private route, which leaves little room for regulatory oversight
    The Securities and Exchange Board of India (Sebi) is set to announce a platform for online sale of privately placed corporate debt.
    bit.ly/1SrHt9z

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About Author

Doug Ashburn is a former editor-at-large of John Lothian News. He left in late 2016 and is now the managing editor of T3 Custom.