Breaking News

TradingScreen rejects claims by shareholder group; Citigroup, Deutsche, HSBC Agree to Settlement

First Read

Hits & Takes
By JLN Staff

Care to guess what the best performing financial asset of 2017 has been? According to Macquarie as cited in this Financial Times story, it’s the metal cobalt. Cobalt is up some 80 percent this year on the back of increased demand for electric vehicles.~SD

Crain’s put out a list showing which companies won the most patents in Chicago in 2016. Trading Technologies is on there with nine. Tops by a longshot is Boeing with 1,045 (second and third go to Honeywell and Caterpillar, respectively). It’s all part of the Crain’s “Chicago’s Most Innovative Companies” spread.~SD

Asia Pacific Financial News from John Lothian News from yesterday is available HERE.~JJL

MIAX PEARL sets new daily market share record of 2.29% in September; achieves record 1.96% of OCC national volume for the month.~[JJL]]

The Chicago Cubs last night outlasted the Washington Nationals and the Cubs advanced to the National League Championship Series for the third year in a row.~JJL

It is special to have a Friday the 13th during October, so FINRA offers these four pointers on how to avoid bad financial luck.~JJL

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ED&F Man Talks Starting a Career in Global Commodities

Education.JohnLothianNews.com

Our MarketsWiki Education Intern Recruiting Event is on Monday! As our sponsor firms gear up to meet with students from all over the Midwest, we interviewed ED&F Man’s HR director, Ed McCann, about what they are looking for and what students can expect working at the firm.

Watch the video »

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Paragon Appoints Guy Taylor To Head Global PR
Paragon
Paragon Public Relations (“Paragon”), an award-winning full-service communications firm, has appointed Guy Taylor as Global Director of Public Relations. In his new role, Guy will be responsible for client relationship management, PR strategy and execution, and new business development.
/goo.gl/6K76b9

***** A great hire by Paragon. Paragon is defined in Dictionary.com as “a model or pattern of excellence or of a particular excellence or someone of exceptional merit.” Both would apply to Guy Taylor, so they nailed it!~JJL

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Wisnefski named editor of professional news at WSJ
Chris Roush – TBN
Wall Street Journal editor Gerard Baker sent out the following announcement on Wednesday: I’m delighted to announce that Stephen Wisnefski is appointed Editor, Professional News.
/goo.gl/yqfFzY

***** Nice work Steve!~JJL

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Thursday’s Top Three
Our top read stories from Thursday were led by the Financial Times’ Credit derivatives market woes deepen after ICE exit. Second went to Bloomberg’s Someone Just Lost $70,000 in a Failed ICO Purchase Attempt. A sucker born every minute. And third went to JLN’s column We All Love Data: Barchart’s Latest Move Continues The Trend Of Firms Pushing Further Into The Data Space

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Lead Stories

TradingScreen rejects claims by shareholder group; TradingScreen has rejected claims of legal action by a group calling itself TradingScreen Shareholders
John Bakie – The Trade
On 11 October, TradingScreen Shareholders released a statement claiming it was launching legal action against the firm’s chairman, Giampiero Grandi. However, a TradingScreen spokesperson said the claims made against it were untrue and the actions of its disgruntled former CEO and chairman, Philippe Buhannic. Buhannic was suspended and later dismissed from the firm last year following accusations he assaulted a member of staff.
/goo.gl/MeML9X

Citigroup, Deutsche, HSBC Agree to $132 Million Settlement in Libor Scandal
Maria Armental – WSJ
Citigroup Inc., Deutsche Bank AG, and HSBC have agreed to pay about $132 million in total to resolve accusations they rigged a lending benchmark, according to court documents.
/goo.gl/fqjUBZ

Nasdaq’s future lies in tech, data and analytics, says chief
Nicole Bullock in New York and Philip Stafford in London – Financial Times
To many Nasdaq has a clear identity — the eye-catching, fast-paced equities exchange on business TV that hosts the pioneers of the US technology industry, such as Microsoft, Google and Apple.
However, as even the company admits, this perception is a little dated. When equities profit margins were squeezed it long ago diversified into markets such as options and selling trading technology.
jlne.ws/2yk3SEw

Global Demand for Bitcoin Shifts Wildly in Response to Regulation
Camila Russo and Blacki Migliozzi – Bloomberg
By many measures, digital currencies are as strong as ever. Bitcoin prices, up more than 400 percent this year, eclipsed $5,000 on Thursday. While Bitcoin is far and away the largest cryptocurrency, 11 other coins have a market cap in excess of $1 billion, reflecting increasingly diverse trading options.
/goo.gl/aMEcEX

Where Gold Trade Goes If London Loses Its Grip
Eddie Van Der Walt and Ranjeetha Pakiam – Bloomberg
London is facing challenges on multiple fronts to its centuries-old status as the place where the world trades gold. Two U.S.-based exchanges, CME Group Inc. and Intercontinental Exchange Inc., have created new ways of buying and selling precious metals. So has the London Metal Exchange. Trade volume in New York is rising, and China, where most of the metal ends up, is giving investors new ways to bet on gold’s price. All of this is a threat to London’s over-the-counter market, historically the leading player in global trade of bullion.
/goo.gl/FuPo5E

Hong Kong Exchange Plans to Seek Trading Tax Cut, Source Says
Benjamin Robertson – Bloomberg
Any change might boost algorithmic trading in equity market; New government seen as supportive to financial services
Hong Kong’s exchange operator is considering asking the government to remove or reduce a trading tax on stock transactions, as part of a review of the levy, according to a person familiar with the bourse’s thinking.
/goo.gl/zPbYNK

IMF Identifies Nine Big Banks Likely to Struggle With Profitability; Projects Deutsche Bank, Citi, Barclays and others could deliver subpar profits by 2019
Josh Zumbrun – WSJ
The International Monetary Fund said some of the world’s largest financial institutions—including Deutsche Bank AG DB -1.30% , Citigroup Inc., C -3.43% Barclays BCS 0.59% PLC and a few Japanese institutions—could struggle in coming years to remain sufficiently profitable.
/goo.gl/XKtqch

Securities regulator reviewing application for Nasdaq stock exchange in Canada
Herald News
New York-based Nasdaq Inc. said Thursday it has applied to operate an exchange in Canada, a move that could bring foreign competition to a market currently dominated by the TMX Group, operator of the Toronto Stock Exchange.
/goo.gl/YW42ZA

Nasdaq Inc. said Thursday it has applied to operate an exchange in Canada
Financial Post
Nasdaq Inc. said Thursday it has applied to operate an exchange in Canada, a move that could bring foreign competition to a market currently dominated by the TMX Group, putting new pressure on the operator of the Toronto Stock Exchange.
/goo.gl/nGVzCt

EU leaders to block Brexit trade talks at October summit
Alex Barker, Mehreen Khan and Jim Brunsden in Brussels – Financial Times
EU leaders will refuse to open talks with the UK on post-Brexit trade relations at next week’s summit due to a lack of progress on a divorce settlement, dealing a blow to British efforts to break a deadlock in negotiations..
jlne.ws/2yjTFbi

Fed’s Bullard warns bank regulators are ‘complacent’ over fintech risks
Michelle Price, Howard Schneider – Reuters
U.S. banking regulators must accelerate efforts to address the risks posed by fintech companies to the banking sector which could be “eviscerated” by these innovative new players, St. Louis Fed President James Bullard said on Thursday.
jlne.ws/2xBNYl2

The Treasury Report: Implications for the U.S. Treasury Market
Jim Greco – Trading Places
The U.S. Department of the Treasury published its eagerly anticipated second report on the Trump administration’s “Core Principles” on financial regulation. As a reminder, those Core Principles were defined in the original executive order signed two weeks after Trump’s inauguration and are a conservative grab bag of “preventing bailouts” and “moral hazards”…
jlne.ws/2gy4blM

Scaredy CAT
Michael Friedman – Trillium
In the past week, a coordinated effort has been launched, by members of Congress and by the exchanges who wrote the CAT plan in the first place, to delay the deployment of the Consolidated Audit Trail. The stated grounds for a delay are that the SEC—which is neither building nor hosting the CAT—has recently revealed its imperfect track record on cybersecurity with its EDGAR corporate filing system. These arguments are either wrong or misguided, for several reasons.
jlne.ws/2yk2u4w

This Market’s Running on Hope, Not Profits; Investors are citing strong earnings as the reason for this year’s rise in stocks. But their bull case is hard to justify
James Mackintosh – WSJ
Believers in the bull market have been making a one-word case for why this year’s rise in stocks is justified: earnings. With profits on a roll and the world economy in synchronized growth mode, what’s not to like?
/goo.gl/W6V6m5

Renaissance co-founder’s tips for quant, VC career success
efinancialcareers.com
When you hear the name Howard Morgan, it should make you think of Jim Simons, founder of quant hedge fund giant Renaissance Technologies. In the 1980s, Morgan – who has a PhD in operations research from Cornell – moved out of the upper echelons of academia to co-found the buy-side firm. He ended up breaking off on his own and cementing his legacy as a legendary venture capitalist and angel investor. He admits that alternative investment career paths – and the buy side in general – today are much different from when he got his start.
jlne.ws/2ykt2TS

FCA Defends Changing Listing Rules to Cater for Aramco IPO
Suzi Ring – Bloomberg
FCA chief says regulator met with Saudi Aramco this year; Watchdog facing queries from lawmakers over motive for changes
The U.K. markets regulator defended a possible move to change listing rules that would make it easier for Saudi Aramco to go public in London, in what may become the world’s largest initial public offering.
/goo.gl/tPRPgZ

Mifid price war over research raises legal question; Falling cost of research under new EU regulations could fall foul of inducement rules
Hannah Murphy – FT
Banks and brokers are locked in a cut-throat price war that has sent the cost of investment research plunging, raising concerns that asset managers could breach EU inducement rules if they agree to pay extremely low prices.
/goo.gl/fvgZwb

Exchanges, OTC and Clearing

CurveGlobal set to expand US presence with new hire
Louisa Chender – Global Investor Group
The LSE Group-owned rates platform CurveGlobal has appointed Catherine Eckhouse to head-up its business development in the United States, FOW has learned.
The move comes as the interest rate futures trading platform seeks to increase US participation, just after the first anniversary of its launch in September 2016.
jlne.ws/2yjvlWE

CME plans no more changes to cattle contract for now
Tom Polansek – Reuters
CME Group Inc (CME.O) plans no further moves to reduce volatility in its cattle futures market, after making a series of changes to rein in wild price swings that drove away hedgers, a managing director said on Wednesday.
/goo.gl/SZ7JdW

Eurex Market-on-Close Futures on EURO STOXX 50 Index Futures: Introduction of a Designated Market-Making scheme
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG took the following decision effective 30 October 2017
/goo.gl/SANmrW

Withdrawal of admission of 13 Single Stock Futures and two equity options
Eurex
Effective 16 October 2017, the Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG decided to withdraw admission to trading of 13 Single Stock Futures and two equity options according to the attachment.
/goo.gl/TZiKXb

Deutsche Boerse CEO discussed merger with Finance Minister before share purchase: report
Reuters Staff
The head of Deutsche Boerse (DB1Gn.DE) met with the German government to discuss a possible merger with London Stock Exchange (LSE.L) before he made a share purchase that sparked an insider trading investigation, according to a magazine report.
/goo.gl/TV9LHK

RBI proposes currency trading platform for retail customers
Business Standard News
The Reserve Bank of India (RBI) on Thursday proposed retail customers’ access to the currency trading platform, and that prices should be in line with the inter-bank market through an in-built mechanism on the platform.
jlne.ws/2yjHb3b

Voltabox AG has been listed on the Frankfurt Stock Exchange since today; First prize: 30.00 Euro / investors use subscription options via the stock market
Deutsche Börse
Voltabox AG has been listed in the Prime Standard on the Frankfurt Stock Exchange since today. A total of around 15 million shares were admitted to trading. The first exchange price was EUR 30.00.
/goo.gl/DR1dGN

Exchange Reports on Listed Issuers’ Corporate Governance Practices and Launches Third Director Training Webcasts
HKEX
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) published the findings of its latest review of listed issuers’ corporate governance practices. The review involved analysing the disclosures made by 1,428 issuers (approximately 72 per cent of all issuers listed as at 31 December 2016) in their 2016 annual reports, covering the financial period from 1 January to 31 December 2016.
/goo.gl/HS8BmR

Fintech

MiFID II Transaction Reporting with Born Technology’s CrossCheck
Born Technology
In response to industry demand for a turnkey MiFID II reporting solution, Born Technology’s CrossCheck™ now delivers Transaction Reports to EU Regulators.
jlne.ws/2xBAoOU

Coinbase is launching instant purchases and ditching the 3-5 day wait period
Fitz Tepper – TechCrunch
Coinbase just announced that users can instantly purchase cryptocurrency and have it be funded from a U.S bank account.
/goo.gl/C4otXu

Singapore central bank, bank association, Accenture in blockchain tie-up
Gertrude Chavez-Dreyfuss – Reuters
U.S. consulting company Accenture (ACN.N) said on Thursday it has been appointed by the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) to manage and develop a blockchain-based platform for interbank payments.
/goo.gl/7fsKoc

Thales Announces Spin-off of Fintech Unit; Theorem Streamlines Middle-to-Back Office Workflows
Press Release
In response to the growing need and demand for technology in the derivatives space, Thales Trading Solutions LLC (“Thales”) today, announced a spin-off of its technology platform via a new venture, Theorem Technologies, as part of Thales’ strategic growth plan.

Financial institutions AI provider MioTech picks up $7 mln Series A
PE Hub
Hong Kong-based MioTech, an artificial intelligence provider for financial institutions, has raised $7 million in Series A funding. Horizons Ventures led the round with participation from other investors that included ZhenFund.
jlne.ws/2xC025S

SWIFT Tests Shows Blockchain Has Potential For Global Liquidity Optimisation – New Paper Highlights Initial Findings From Proof Of Concept To Improve Real-Time Nostro Reconciliation, Part Of SWIFT’s gpi Initiative
Mondovisione
SWIFT has published an interim report on the proof of concept (PoC) for real-time Nostro reconciliation using a SWIFT-developed distributed ledger technology (DLT) sandbox with 33 global transaction banks, as part of its SWIFT gpi service.
/goo.gl/cfkdmT

Politics

‘Objective analysis’ or ‘an absurdity’? Life as Trump’s top economist.
Damian Paletta – Washington Post
President Trump has tasked his top economist with winning one of the most important arguments in politics right now: convincing voters and lawmakers that it’s workers who would be the big winners in the president’s plan to cut the corporate tax rate.
Whether Kevin Hassett, Trump’s newly minted chairman of the Council of Economic Advisers, can successfully make that sales pitch will go a long way toward determining whether Trump’s massive tax cut plan ends in success or failure.
jlne.ws/2xBCyOm

The Case Against Free-Market Capitalism
Ngaire Woods – Project Syndicate
Oxford – Free-market capitalism is on trial. In the United Kingdom, Labour Party leader Jeremy Corbyn accuses neoliberalism of increasing homelessness, throwing children into poverty, and causing wages to fall below subsistence level. For the defense, Conservative Prime Minister Theresa May cites the immense potential of an open, innovative, free-market economy. Similar “proceedings” are taking place around the world.
jlne.ws/2yjEY7Q

Political Stalemate Buoys Municipal Bonds; Relatively scant issuance this year also helps the market for city and state debt
By Heather Gillers – WSJ
Inaction in Washington has been a boon for municipal-bond investors this year.
/goo.gl/QFw1Hi

Regulation

SEC Announces Whistleblower Award Of More Than A Million Dollars
SEC
The Securities and Exchange Commission today announced that a whistleblower has earned an award of more than $1 million for providing the SEC with new information and substantial corroborating documentation of a securities law violation by a registered entity that impacted retail customers.
/goo.gl/koML5D

Citadel registers as systematic internaliser; Market maker will become an equities SI in order to meet demand for additional sources of liquidity.
By John Bakie – The Trade
Citadel Securities has announced it has applied to become a systematic internaliser (SI) in Europe.
/goo.gl/aNSEUg

Queensland financial adviser banned for failing to act in clients’ best interests
ASIC
The Australian Securities and Investments Commission (ASIC) has banned financial adviser Drew Grosskreutz from providing financial services for three years.
/goo.gl/9UwHBf

Insider trading suspect out of U.S. jail as judge weighs ‘Jekyll & Hyde’ risk
Nate Raymond – Reuters
A former Akebia Therapeutics Inc employee accused of insider trading was released from jail on Thursday despite a judge’s concern that the man’s “Dr. Jekyll and Mr. Hyde” tendencies could lead him to violate his bail conditions.
jlne.ws/2ykdIGe

SEC to Review Guggenheim’s Bob Diamond-Linked Investments
By Matt Robinson and Sonali Basak – Bloomberg
SEC questioning if ties make Guggenheim investments improper; Rules restrict firms from investing in related entities
U.S. regulators are reviewing whether Guggenheim Partners inappropriately steered client money into Bob Diamond’s businesses, said two people familiar with the matter.
/goo.gl/zhKwfM

FESE Response To The ESMA Consultations On Prospectus Regulation
Mondovisione
FESE fully supports the European Commission’s Capital Markets Union (CMU) project, and its goal to strengthen the European economy and ensure easier access to markets for all companies, including growth companies which are the backbone and engine of the economy.
/goo.gl/SUjeiJ

Bloomberg, Trax Among First Approved as ARMs; Financial Conduct Authority has started issuing approvals to entities that applied to act as ARMs under Mifid II.
Jamie Hyman – Waters Technology
Trax, a subsidiary of MarketAxess Holdings, and Bloomberg have both announced that they have received FCA approval to operate as ARMs. Both companies have also been authorized to act as an Approved Publication Arrangement (APA), which is an entity permitted to publish post-trade transparency reports on behalf of investment firms to help them meet their reporting obligations under Mifid II. The regulator released the approved list of APAs in August.
/goo.gl/2Hdm7J

Securities Commission Malaysia: Malaysians Should Start Planning And Investing For The Future
Mondovisione
InvestSmart® Fest 2017, an initiative by Securities Commission Malaysia (SC), was officiated by Yang Berhormat Brig. Jeneral Khairy Jamaluddin Abu Bakar, Minister of Youth and Sports Malaysia at the Kuala Lumpur Convention Centre this morning.
/goo.gl/WBp6YK

Meet the New Stock Market Regulators: Marx and Mao; The chief of China’s securities regulator urges his fellow regulators to revisit classic Communist texts
WSJ
Karl Marx and Mao Zedong aren’t normally top of the reading pile for stock market regulators. They are in China.
/goo.gl/Xs5DZj

Investing and Trading

The Stock Market Cares About More Than Just Taxes
Akane Otani – WSJ
Republicans’ latest attempt to push through a tax plan hasn’t given an outsized boost to the shares of companies expected to benefit the most from it.
Since September, President Donald Trump and GOP leaders have been working to garner support for a tax overhaul that includes slashing corporate tax rates to 20% from the current 35%, ending estate taxes and introducing incentives for business investment.
jlne.ws/2yk4bza

US crude exports drive physical derivatives demand
Argus Media
Surging US crude exports are boosting interest in physically delivered contracts as global participants seek greater price discovery in key US Gulf coast markets, a CME official said.
Open interest in Argus WTI Midland contracts is approaching 300mn bl, while open interest in WTI Houston — which represents the physical value of light sweet Permian field-grade quality crude at the water — is close to 90mn bl. This represents an 80pc and an almost six-fold increase in open interest in the two grades, respectively, since the beginning of 2017.
/goo.gl/p9fejF

Say Goodbye to $30 Oil as Supply Glut Is Mostly Gone, Says Platts
Alison Sider – WSJ
OPEC might be closer to working off a supply glut than it thinks, says Gary Ross, head of global oil analytics at S&P Global Platts.
Brent crude, the global benchmark, is likely to top its 2017 high of $59.02 a barrel before the year’s end, Mr. Ross predicted speaking to reporters at a conference in New York.
jlne.ws/2ykaS4g

30 Years Ago: Lessons From the 1987 Market Crash; Black Monday’s greatest legacies may be market circuit breakers and the value of diversification.
By Debbie Carlson – US News
Stock markets are sitting at record highs now, but 30 years ago, Wall Street suffered its biggest crash ever. On Oct. 19, 1987, the Dow Jones industrial average lost 22.6 percent of its value in a single day, a percentage drop twice as much as any single day in the 1929 stock market crash. Because of its severity, Black Monday stands out even for people who don’t follow financial markets regularly.
/goo.gl/7n8ozo

Currency traders have already worn out their 2017 trading themes
By Anneken Tappe – WSJ
Tighter monetary policy, U.S. tax-cut prospects and European growth are among the ideas that have driven currency trading in 2017. But with less than three months to go before the end of the year, traders are wondering if those themes are largely played out.
/goo.gl/nKNjQ7

Opinion: Why Jesse Livermore, who made a mint in the Crash of 1929, would buy bitcoin today
By Brett Arends – MarketWatch
Buy bitcoin. That’s not my advice. It’s the advice of one of Wall Street’s most famous traders and speculators, Jesse Livermore. And he’s been dead for 77 years.
/goo.gl/qBM62D

We’re About to Fall Behind the Great Depression
David Leonhardt – NY Times
Since the first rumblings of the financial crisis, in 2007, people have comforted themselves by looking back to the Great Depression and thinking about how much worse things could be. It’s true, too. Our modern economic crisis has been far less severe than the Depression.
/goo.gl/bCk7LV

Record $6.6bn flows into global equity funds; Investors increase appetite for geographical diversification
Joe Rennison in New York – FT
Investors poured a record amount of money into global equity funds over the past week, as a host of regional risks, coupled with broad economic growth, increased their appetite for geographical diversification.
/goo.gl/T7xomB

Institutions

Justifying Brokers in an Unbundled World
Ian Mawdsley, Thomson Reuters via TABB Forum
MiFID II unbundling rules require buy-side firms to report in quantitative and qualitative terms on why they chose a broker for a trade. Access to liquidity and access to quality executions, coupled with the appropriate investment in the associated technologies, will be major factors in which brokers make the list. But the high-touch desk will also continue to play a part – acting more like an execution consultant, however, than like a sales trader.
/goo.gl/VM2sv2

Standard Chartered chairman urges U.S. to preserve bank resolution regime
Michelle Price, Pete Schroeder – Reuters
The chairman of British bank Standard Chartered [STANB.UL] called on U.S. policymakers to preserve a key post-crisis power that allows bank regulators to wind down a failing lender, even as the Trump administration looks to slash red tape across the financial sector.
/goo.gl/hu7x7c

Star Fidelity Manager Gavin Baker Fired Over Sexual Harassment Allegations; A spokesman says he ‘strenuously’ denies any ‘supposed’ allegations
By Kirsten Grind, Sarah Krouse and Jim Oberman – WSJ
A star stock picker at the mutual-fund giant Fidelity Investments was fired last month for allegedly sexually harassing a junior female employee, according to an attorney for the woman and other people familiar with the matter.
/goo.gl/mFprp8

Event-Driven Hedge Fund Melqart Plans to Stop Taking New Money
By Suzy Waite and Nishant Kumar – Bloomberg
London-based fund is said to manage more than $600 million; Fund started in 2015 by Michel Massoud, formerly of Cheyne
Melqart Asset Management (UK), a London-based hedge fund started by Michel Massoud, is preparing to close its fund to new money after assets rose to more than $600 million, according to a person familiar with the matter.
/goo.gl/ubmguZ

BofA Posts Best Profit in Six Years as Rising Rates Lift Revenue
By Laura J Keller – Bloomberg
Trading revenue falls 15%, fueled by slump in fixed income; Net income climbs 13% to $5.59 billion, beating estimates
Brian Moynihan’s efforts to boost Bank of America Corp. profit through cost cutting finally got some help from interest rates.
/goo.gl/mG1geB

Goldman explores Weinstein stake options as board faces scrutiny; Scrutiny grows over studio directors’ knowledge of sexual harassment claims
Shannon Bond in New York – FT
Goldman Sachs is exploring options for its small stake in The Weinstein Company and some of the film studio’s projects are in jeopardy as the fallout from the sexual harassment firestorm engulfing disgraced movie mogul Harvey Weinstein spreads across Hollywood and the business community.
/goo.gl/KVjr3G

Regions

Hong Kong Slaps Banker With Ban for Mobile Phone, WeChat Use
By Carrie Hong – Bloomberg
Hong Kong’s securities watchdog banned a brokerage employee from the industry for four months for the manner in which he used his mobile phone and Tencent Holdings Ltd.’s WeChat to take orders from clients.
/goo.gl/qvHwQd

Japan Inc. Scandals Build a Case for Corporate Reform; Bureaucrats, of all people, are leading the way in shaking up the country’s hidebound companies.
By Noah Smith – Bloomberg
Another big scandal is rocking corporate Japan. This time it’s Kobe Steel Ltd., a major producer, which has confessed to faking data on the quality of its materials. Everything from bullet trains to cars to U.S.-made airliners could be affected. It’s doubtful that the scandal will wreak lasting damage on Japan’s reputation for top-notch manufacturing quality — after all, every country’s industrial giants suffer this sort of debacle from time to time. But Kobe Steel does show that Japanese companies need better corporate governance. Along with recent accounting scandals and another cover-up at Toyota Motor Corp., as well as falsified data at airbag maker Takata Corp., the incident shows that Japanese companies need to work harder to catch these problems earlier, instead of just apologizing after it’s too late.
/goo.gl/Nb3PNT

Spain considers change to constitution as way out of crisis; Debate would be how to amend founding document of democracy — and who to ask
Tony Barber in Madrid – FT
Just as Catalonia’s secession crisis threatened to tip Spain over the edge this week, a handful of government and opposition politicians in Madrid met in secret to find a formula for breaking the deadlock.
/goo.gl/tpSrGY

Ghana Cocoa Regulator Is Said to Face $280 Million Shortfall
By Ekow Dontoh – Bloomberg
Regulator will cut buying agent fees to curb expenses; World’s No. 2 producer to keep farmers’ pay unchanged
Ghana’s cocoa regulator is facing a 1.25 billion ($285 million) cedis budget shortfall for the new harvest as the world’s second-biggest producer of the beans plans to keep farmer pay unchanged even after global prices slumped, according to two people familiar with the matter.
/goo.gl/5F9hQ7

FIA Japan Newsletter October 2017 Edition Released
FIA Japan
Futures Industry Association of Japan has released newsletter October 2017 edition. please access the following URL.
/goo.gl/hwx9oN

Brexit

JP Morgan may up headcount in Paris as part of Brexit planning; The move to add 60 people would depend on the results of negotiations between the UK and the European Union
Katherine Chinglinsky – Independent
JPMorgan Chase may increase headcount in Paris by about 60 people as part of its planning for Brexit, according to a person briefed on the discussions.
/goo.gl/m5N5fi

Miscellaneous

Marijuana Growers Risk Being Wiped Out by California Fires
Jennifer Kaplan – Bloomberg
Industry representative says at least six farms destroyed
Uninsured and unbanked, cannabis farmers face tough road back
For many businesses in northern California, it will take years to rebuild from the wildfires that have decimated the region. For many legal cannabis growers, the destruction could be insurmountable.
/goo.gl/9h2ZNu

Twitter Is Crawling With Bots and Lacks Incentive to Expel Them; A researcher finds 1,600 bots tweeting extremist posts in U.S. elections also spread anti-Macron sentiment in France
Selina Wang – Bloomberg
On Wednesday, the exterior of Twitter’s San Francisco headquarters bore an eerie message: “Ban Russian Bots.” Someone— the company doesn’t know who— projected the demand onto the side of its building.
/goo.gl/So5Rhz

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About Author

Bergstrom is chief information officer of John J. Lothian & Co. He edits MarketsWiki and JLN Options.