David Fuller and Eoin Treacy's Comment of the Day
Category - General

    Deutsche Bank Leaders Were Warned of Compliance Lapses

    This article by Greg Farrell and Steven Arons for Bloomberg may be of interest to subscribers. Here is a section:

    BuzzFeed also reported that a team from Deutsche Bank’s audit division conducted a review of the Moscow operation in 2014 and gave the office a “green” rating. Christian Sewing, now the bank’s chief executive officer, was global head of audit at the time, though he had no “direct or indirect involvement” in that probe, a Deutsche Bank spokesperson told BuzzFeed.

    Sewing oversaw an internal investigation of the mirror trades the following year, which led to the lender shuttering its securities unit in the country. Achleitner appointed him CEO three years later.

    BuzzFeed wrote that the volume of Russian money flowing into the U.S. financial system was so big that a team of experts at Bank of America raised the issue at a meeting with Deutsche Bank in London in early 2016. The issue was eventually escalated within Bank of America and one of its senior managers raised the issue with Achleitner himself. Bank of America in February of that year filed a suspicious activity report with the U.S. Treasury Department.

    Deutsche Bank in a statement cast doubt over some element of that report, saying in Germany’s two-tier board system, it wouldn’t have been the role of the supervisory board chairman to get involved in the matter. Instead, it was the chairman of the management board -- John Cryan at the time -- who had a meeting with a Bank of America executive.

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    Snowflake Melts Investor Hearts Like Most Tech IPOs This Year

    This article by Deniz Besiroglu and Dimitri Quemard for Bloomberg may be of interest to subscribers. Here is a section:

    All 12 companies have increased in value since they started trading. The largest increase was Schrodinger Inc. (229.7%), followed by BigCommerce Holdings Inc. (212.3%) and nCino Inc. (143.7%). Shares in Snowflake, the year’s largest U.S. technology IPO, has doubled from its offer price of $120 per share.

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    Chapter 6: The Big Cycle of China and Its Currency

    This chapter of Ray Dalio’s evolving book “The Changing World Order” will be of interest to anyone monitoring China’s evolution. Here is a section:

    As a result of their longer history and their more intensive studying of it, the Chinese are much more interested in evolving well over much longer time frames than Americans, who are much more interested in making quick hits—i.e., the Chinese are more strategic than Americans, who are more tactical.  The arc that Chinese leaders pay the most attention to is well over a hundred years long (because that’s how long good dynasties last) and they understand that the typical arc of development has different multidecade phases in it, and they plan for them.  For example, the first phase, which occurred under Mao, was when the revolution took place, control of the country was won, and power and institutions were solidified.  The second phase of building wealth, power, and cohesiveness without threatening the leading world power (i.e., the United States) occurred under Deng and his successors up to Xi.  The third phase of building on these accomplishments and moving China toward where it has set out to be on the 100th anniversary of the People’s Republic of China (PRC) in 2049—which is to be “a modern socialist country that is prosperous, strong, democratic, culturally advanced, and harmonious,” which would make the Chinese economy about twice the size of the US economy[4]—is occurring under Xi and his successors.  Nearer-term goals and ways for getting toward these goals are set out in nearer-term plans like the Made in China 2025 plan,[5] Xi’s new China Standards 2035 plan, and the usual five-year plans.[6] 

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    U.K. Imposes Further Curbs as Coronavirus Infections Surge

    This article by Alex Morales and Emily Ashton for Bloomberg may be of interest to subscribers. Here is a section:

    Hancock said the country faces a “big moment” but emphasized a second lockdown “is not the proposal that’s on the table.” Asked if scientists are saying schools and business don’t need to be closed, he replied: “that’s right.”

    “The strategy is to keep the virus down as much as is possible, whilst protecting education and the economy and doing everything we possibly can for the cavalry that’s on the horizon,” he said, referring to efforts to develop Covid-19 vaccines, new testing technologies and treatments.

    Much is riding on the government’s test-and-trace program, which officials regard as vital to keep infection rates down and to give people confidence to return to work. But the system is failing to meet key targets, including on the rapid turnaround of tests and the number of people deemed at risk of contracting the virus who are contacted.

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    CME's First Water Futures Contract Is Coming With West on Fire

    This article by Elizabeth Elkin for Bloomberg may be of interest to subscribers. Here is a section:

    “It’s really a unique mechanism for investors themselves and California to be able to at the very least understand and price the risk and potentially hedge the risk of water price volatility,” said Carter Malloy, founder and chief executive officer of AcreTrader, a farmland investing platform.

    “The crucial thing is right now we have very little visibility” on what water prices will look like in the future, he said.

    Water preservation and distribution could become increasingly attractive as investors like Jeff Ubben, who recently launched Inclusive Capital Partners, look to tackle problems ranging from environmental damage to food scarcity through their funds.

    Climate advocates have warned in recent years for the potential of water wars as competition increases between needs from agriculture, energy and growing cities. Food production in particular could be vulnerable as drought makes it increasingly difficult to grow crops in many parts of the world and farmers balance water and land needs with protecting forest in places like Brazil’s Amazon.

    “Food is going to be a flash point” in the world going forward as climate change makes production more challenging, Carter Roberts, chief executive officer of World Wildlife Fund, said in an interview at the Bloomberg Green Festival this week.

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    Email of the day - on how I manage my personal portfolio

    Is my impression that you are not a big investor or trader for you report little change or positions. Is this right? How big is your organization? The impression is you do everything yourself, if so, that is quite remarkable, you are a renaissance man indeed!

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