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Video: High Frequency Trading 101: A defense of HFTs in markets
Capital Markets
<p>People often criticize high frequency traders for abandoning the market when things get tough. "There's a lot of myths around that," says Bill Harts, CEO of Modern Market Initiatives, a spokesman for the industry. In an interview with NexChange Harts says data suggest HFTs play in creating liquidity -- though some market analysts say the case is clear-cut.</p>
Video: Bill Harts defends HFT role in August market upset, proposes new rules
Capital Markets
<p>Bill Harts, CEO of Modern Market Initiative says HFTs are some of the biggest market makers for ETFs providing liquidity. HFTs play a controversial role in the markets and in this interview with NexChange, Harts defends their role. He also outlines suggestions on how to prevent the kind of volatility that roiled the markets on August 24.</p> <p>&nbsp;</p> <p>&nbsp;</p>
Weekend Scan: Crackdown sparks China rout; vital U.S. employment data loom
Capital Markets
<p>November 28, 2015</p> <p>Chinese shares fell more than 5% on Friday after industrial sector concerns and a renewed crackdown on the Mainland spooked investors. The Shanghai Composite index and the CSI300 both saw their biggest one-day declines since the turmoil seen over the Summer. China also reported a 4.6% drop in profits among large industrial firms. </p> <p>But, the rout did not carry through to other major equity markets, which ended modestly lower. The Dow took a small hit Friday during the short trading day, falling 0.1%. The Nasdaq added 0.2%, and the S&amp;P 500 was largely unmoved. The Stoxx Europe 600 was down 0.2%, after ending Thursday with a three-month high. The dollar and bonds ended higher this week and oil tumbled.</p> <p>In the week ahead, global markets are likely to be driven by  a number of major macro developments. The European Central Bank (ECB)  is poised to expand its easing program and cut its already negative deposit rate, meanwhile U.S. jobs report will be coming out on Friday. It will be among the most important information the Federal Reserve will consider when it meets on December 15. </p> <p>Here's what else you need to know:</p> <p>Chinese dredging firm delays IPO over South China Sea work.  CCCC Dredging, the world’s largest dredging firm, has delayed a planned initial public offering in Hong Kong over queries from the city’s stock exchange about dredging work done for Beijing in disputed territory in the South China Sea. Wall Street Journal </p> <p>Indian villagers blame Coca-Cola for water shortage. Eighteen village councils in northern India are demanding a local Coca-Cola bottling plant be prohibited from extracting water from the ground, claiming its over usage has led to water scarcity in the area. SCMP</p> <p>Japan to resume whaling in Antarctic. Japan has decided to resume hunting whales in the Antarctic after a break of more than a year, despite  an International Court of Justice (ICJ) ruling for Japan to cease all whaling. BBC</p> <p>Moscow beefs up Syria defences. Russia has strengthened its anti-aircraft defences by moving a cruiser towards the coast and deploying new missiles at its main base. The move follows a row over Turkey's downing of a Russian combat jet on Tuesday. BBC </p> <p>Three killed at Planned Parenthood clinic in the U.S. A police officer and two civilians were killed on Friday after an hours-long shooting standoff at a Planned Parenthood clinic in Colorado Springs. The male shooter was armed with a long gun and also brought into the building several suspected explosive devices. Washington Post </p> <p>Brazil to file $5.3B suit against dam owners. Brazil’s government said it is preparing to sue mining giants Vale SA, BHP Billiton and their joint venture Samarco Mineração SA in response to a catastrophic dam failure earlier this month. A civil suit is expected to filed on Monday. Wall Street Journal (paywall)</p> <p>Barclays fined by British regulators. The bank will pay 72 million pounds for "failing to minimize risk" around a product used for clients in 2011 and 2012. Regulators say the anti-money-laundering control failings are related to a 1.88 billion pound deal used for rich clients. Wall Street Journal (paywall)</p> <p>Suicide bombing hits Nigeria. A male suicide bomber attacked a procession of Shi'ite Muslims in Kano, killing 21 people and wounding many more. Reuters<br /> You won’t believe this…<br /> The so-called Islamic State turned in rubber ducks. The new internet meme is turning the violent terrorists into cute rubber ducks. In a bid to "castrate" the group, netizens are photoshopping jihadists with features of the popular bath toy. The Mirror </p> <p>Eight-legged visitor puts Sydney police on high alert. Sounds of a woman screaming hysterically, a man yelling “I’m going to kill you, you're dead! Die, Die” and furniture being tossed around, caused frightened neighbours to call police with reports of a violent dispute. But when New South Wales police rushed to the address at 2 a.m., they found the frightened occupants had been chasing a ver
Bill Gates is still the daddy in Silicon Valley
Lifestyle
<p>Bill Gates may have long since stepped down from the helm at Microsoft but the company’s 60-year-old co-founder still ranks as the most powerful figure in tech, according to Business Insider.</p> <p>The billionaire philanthropist came out top in a list of tech’s 20 most powerful figures. The list was judged on four criteria: economic power, command, newsworthiness, and impact.</p> <p>Amazon’s Jeff Bezos took the second spot, unsurprising considering the brouhaha he inspired this week with a single tweet, which managed to thoroughly rile Tesla and Space X founder Elon Musk (#6). Third place was handed to Google’s Larry Page.</p> <p>The list is relatively youthful. Bill Gates is the most senior figure to make the list while 31-year-old Facebook founder Mark Zuckerberg (#4) is the most junior, followed by 39-year-old Uber founder Travis Kalanick (#15). Unfortunately, the list is almost exclusively male but for Hewlett Packard CEO Meg Whitman (#14) and IBM CEO Ginni Rometty (#12).</p> <p>The only non-Americans to crack to list are Robin Li (#11), Jack Ma (#6), and Ma Huateng (#13), founders of China’s BATs (Baidu, Alibaba, Tencent), respectively.</p>
Infographic: Battle of the titans, Carl Icahn vs. Bill Ackman
Hedge Funds
<p>Battle of the titans: Carl Icahn vs. Bill Ackman. [INFOGRAPHIC]</p> <p>This story first appeared in ValueWalk<br /> Photo: Thomson20192</p>
Data geeks say mobile shopping set record -- can we believe anything else they say?
Capital Markets
<p>Online purchases are dominating Black Friday, as more holiday shoppers opt out of the craze of in-person shopping.</p> <p>U.S. stores still reported massive lines and physical altercations over sale items, but the shopping seems much tamer this year than years past. By 11 a.m. ET Friday, Adobe reported a 15% boost in online sales growth, with sales hitting $822,250,000.</p> <p>That sounds pretty good. But not according to one Wall Street note.</p> <p>"We believe Thanksgiving shopping was a bust," analysts at Suntrust Robinson Humphrey said in a research note. "Members of our team who went to the malls first had no problem finding parking or navigating stores."</p> <p>The National Retail Federation, estimates that about 135.8 million Americans will shop between Thursday and Sunday, compared with 133.7 million last year, reports BBC. Analysts predict that as much as 20% of holiday shopping will be done Thanksgiving weekend, reports Reuters.</p> <p>Many shoppers started Thursday in-store, rather than waiting until Black Friday, draining the Friday sales numbers. In New York, Macy's said that 15,000 shoppers waited outside the Manhattan store to rush in Thursday night.</p> <p>But really, just ignore these numbers, FiveThirtyEight says. Everyone wants to predict where holiday shopping is going, and it's too early to tell. Nearly a fifth of retail sales, which makes up about 70% of the U.S. economy, comes during November and December. Early Black Friday numbers are usually just driven by visual estimates of how full stores and mall parking lots are. And even if the Black Friday numbers were a accurate, they rarely predict the rest of holiday spending.<br /> Photo: Mark Hillary<br /> &nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p>
Daily Scan: Nasdaq up 0.2%; Black Friday shopping goes online
Capital Markets
<p>Updated through the day</p> <p>The Dow took a small hit Friday during the short trading day, falling 0.1%. The Nasdaq added 0.2%, and the S&amp;P 500 was largely unmoved. For the week, stocks ended modestly higher. Global shares took a tumble Friday in response to a fresh regulatory crackdown in China. The Shanghai Composite index fell by 5.48%, dragging most of the region down with it. CITIC Securities, China's biggest brokerage and rival Guosen Securities are under investigation by Chinese regulators for possible violations of securities supervision and management regulations. The Stoxx Europe 600 was down 0.2%, after ending Thursday with a three-month high. The dollar and bonds ended higher this week and oil tumbled. Next week brings us the emperor of all data points: The jobs report for November. Fasten your seatbelts.</p> <p>Here's what else you need to know:</p> <p>Thanksgiving shopping crowds “good, not great.” Turnout for the early Thanksgiving weekend sales in stores were tame Black Friday as many customers turned to online deals. The National Retail Federation estimates that about 135.8 million Americans will shop between Thursday and Sunday, compared with 133.7 million last year. BBC</p> <p>Barclays fined by British regulators. The bank will pay 72 million pounds for "failing to minimize risk" around a product used for clients in 2011 and 2012. Regulators say the anti-money-laundering control failings are related to a 1.88 billion pound deal used for rich clients. Wall Street Journal (paywall)</p> <p>Suicide bombing hits Nigeria. A male suicide bomber attacked a procession of Shi'ite Muslims in Kano, killing 21 people and wounding many more. Reuters</p> <p>Washington Redskins tick everyone off, again. The National Football League team tweeted a "Happy Thanksgiving" with their Native American logo. People that are already angry about the team's name being racist immediately called foul on the team for sending such a message on a day commemorating the genocide of Native Americans as the Pilgrims colonized America. Red flag on that play. Talking Points Memo</p> <p>Banks will still pay big bonuses – to the chosen few. Reports may be rife that investment banks will be slashing bonuses, but for the banks’ golden boys – or girls – things are a little different: “The world has changed quite a bit, even if bonuses are down…the best jockeys will be protected.” Financial Times (paywall)</p> <p>Sarkozy veers right. Speaking to supporters in Alsace, former French president Nicolas Sarkozy blamed multiculturalism for the Paris attacks and called for the return of “eternal France,” saying “there is no French identity, no happy identity in a multicultural society.” Financial Times (paywall)</p> <p>China’s industrial profits drop for the fifth-straight month. Industrial profits from the Middle Kingdom dipped 4.6% year on year in October, well below the previous month’s 0.1% decline. Falling sales, rising costs, and decreasing margins in the oil, steel, and coal industries all added to the disappointment. Reuters</p> <p>Russia threatens to pull out of coalition. Russia said it will pull out of the US-led coalition fighting Islamic State in Syria if there was any repeat of the shooting down of its fighter jet by Turkey. The Guardian</p> <p>Four senior KPMG partners arrested in Belfast. KPMG has placed four of its senior partners on administrative leave after they were arrested in Northern Ireland in connection with an investigation into alleged tax evasion. Financial Times (paywall)</p> <p>China defends coal use ahead of Paris climate summit. China's special envoy on climate change, Xie Zhenhua, has defended the country's decision to build more coal-fired power plants. With two-thirds of its energy still generated by coal, China produces and consumes almost as much of the fossil fuel as the rest of the world combined. CNN<br /> You won’t believe this…<br /> Bike for 50 minutes to kill those two cups of mashed potatoes. Curious about the damage Thanksgiving did to your diet? BuzzFeed put together an easy guide to burning calo
People Moves: Ex-JPMorgan banker to be Argentinian finance minister
Capital Markets
<p>Former JPMorgan banker to be Argentinian finance minister. Alfonso Prat-Gay will likely become the finance minister for the new Argentinian government. Prat-Gay confirmed he will be a member of the cabinet, but did not say which position yet. Prat-Gray previously served as president of the Argentinian central bank, as well as the head of emerging market research at JPMorgan Chase. He also founded asset management firm Tilton Capital. Chicago Tribune</p> <p>&nbsp;</p> <p>&nbsp;<br /> Photo: ©iStock.com/ooyoo<br /> &nbsp;</p>
People Moves: Elliott Management names co-CEO
Hedge Funds
<p>Elliott Management adds co-CEO. After decades of being run by founder Paul Singer, Elliott Management is adding a partner to help run the hedge fund. Jonathan Pollock joined the firm 26 years ago after answering an employment ad in the Wall Street Journal. Pollock's promotion is a strong indication that Singer will someday step down. New York Times (paywall)<br /> Photo: ©iStock.com/ooyoo<br /> &nbsp;</p>
People Moves: BlackRock names EM debt director; JPMorgan hires analyst
Asset Management
<p>BlackRock names emerging market debt director. Jack Deino will be responsible for corporate portfolio management based in New York. Deino was most recently head of emerging market debt at Invesco. Pensions &amp; Investments</p> <p>JPMorgan Asset Management appoints analyst. Paul Levene joins the firm as capital structure analyst in the convertible bonds and capital structure team in London. He previously worked as a senior analyst at Ferox Capital.</p> <p>Dutch asset manager halves management team. MN is cutting its management team from eight to four. Rene van de Kieft will serve as the new chief executive, Henri den Boer will be head of pensions operations and insurance, and Gerald Cartigny will be head of asset management. The firm will also be appointing a head of finance, risk and IT. Paul Versteeg, current director of investments, and Walter Mutsaers, head of client relations, will leave the firm. Investments &amp; Pensions Europe<br /> Photo: ©iStock.com/ooyoo<br /> &nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p>