Exchange Invest 2487 Weekend Edition: Bye Bye Britain
Shock UK exports for first mover on post QE crisis, breaking banks (MC style), house bubbles, trading cards, India goes post fossil fuel…
On this day in 1987, in a bid to calm the recent frenzy in the world's financial markets, President Reagan said he would be meeting with congressional leaders to negotiate ways of reducing the budget deficit.
Exchange Invest is a unique information resource combining the day’s stories in a newsletter for investors in exchanges/financial markets infrastructure.
Exchange Invest was founded by former exchange CEO and author of the first bestselling book of fintech (“Capital Market Revolution!” FT 1999) Patrick L Young. Monday through Friday our daily paid subscriber email discusses the business of bourses of all kinds across the world.
This weekly edition is a magazine of broader macro topics as well as including our free weekly podcast which reviews the highlights of the week in the world’s market structure.
Parish Notes
Patrick Young on LinkedIn
PLY: Following on from my “40 Years of LIFFE” article celebrating London’s financial futures exchange’s anniversary, a brief primer for those who want to understand the way we ‘interfaced’ (ahem) with trade / data entry when floors were a thing…
In BigWorld
From Exchange Invest 2484: October 19th, Wednesday:
Things You Won’t Read In the Mainstream Media (Volume Umpteen+QE Multiplier of Your Choice Edition)
(AKA Why the legacies cannot understand how they are becoming irrelevant).
UK’s exports to the EU, Jan-Aug 2022
Good work by the indefatigable folks of CIBUK whose original report is here: EXCLUSIVE : Brexit Britain’s exports to the EU are up 62% already this year.
IPO-VID LIVESTREAM
NEXT WEEK TUESDAY
Season 14: Episode 04: IPO-VID Livestream 082:
October 25th: 1800 UK, 1900 CET, 1300 EST
"Christian Katz: Securitizing The Future"
Christian Katz is the CEO of Helveteq AG , an issuer of ESG transparent investment products including carbon neutral Exchange Traded Products (ETPs). He is also Founder and Managing Partner of financial consulting firm MainStrait AG and holds several board seats in the financial and technology sectors.
Previously Christian was the CEO of SIX Swiss Exchange, VP of Europe’s largest index firm STOXX and President of FESE, the Federation of European Securities Exchanges. He began his career in investment banking where he held leading positions at Goldman Sachs and JP Morgan. He holds a PhD in business administration from the University of St. Gallen in Switzerland and lives in Zurich, having worked in Hong Kong and London during much of his professional life.
Watch the Stream on:
NOW ONLINE!
Season 14: Episode 03: IPO-VID Livestream 081:
October 18th: 1800 UK, 1900 CET, 1300 EST
"Delivering New Parish Tech"
COO & Board Member of FIS (Previously Torstone Technology) , a leading global post-trade technology company for financial markets, Mack Gill is also a Director of Yaala Labs , a next-generation market infrastructure technology company. Formerly CEO at MillenniumIT, an industry-leading global capital markets software company, part of the London Stock Exchange Group Mack was previously President of SunGard Technology Services.
Watch the Stream on:
IPO-VID LIVESTREAM PODCAST
In IPO-VID Episode 071: I was joined by DataBP CEO Mark Schaedel .
Listen to Mark on "Defending The Data Economy"
EI WEEKLY PODCAST
UK CCP stress test results
Recommended by LinkedIn
Is SiX in play?
Yet more Binance revelations courtesy of Reuters
And broker results stun the market…
Victory Or Death
20 years on from the first fintech bestseller “Capital Market Revolution!"... "Victory Or Death" is a must read book for anyone interested in the intersection of Blockchain, Cryptocurrency and FinTech as part of the whole future of finance.
Macro Thoughts
Visual Capitalist
Breaking the Bank in Monte Carlo (Part 2)
A few weeks back in EI 2451 on 22nd September 2022 we discussed how “Charles Michael Schwab” is seen by some as “the man who broke the bank in Monte Carlo.”
However, it appears he is but one of several potential pretenders to this accolade.
The line itself is most famous from the British music hall song (originally "The Man that Broke the Bank at Monte Carlo") published in 1891 by Fred Gilbert, a theatrical agent with a comic song side hustle. The song was popularised by singer and comedian Charles Coborn.
Coborn would state that Gilbert's inspiration was the gambler and confidence trickster Charles Wells. His Wikipedia profile explains the ‘bank’ being broken neatly enough although leaves open the notion there may have been others who actually inspired the original song…
However it is worth noting that Wells definitively did break the ‘bank’ according to the arcane practices of the Casino in Monte Carlo.
In 1891, the oft convicted fraudster Wells sat down an 11-hour monster session of roulette. His net result from what he proclaimed was a ‘high-risk martingale’ method netted $500,000 equivalent to over $16 million today. In total Wells broke the ‘bank’ 12 times apparently doubling his stake each spin to make up for losses.
Of Interest
As always, a review of interesting reading to provoke thoughts and consideration… Not sure we agree with much of it….but it’s thought-provoking!
The Spectator
For despite the mythologies about nefarious 'neoliberals' ruling the world, the truth is that we live in economic conditions in which cronyism, collusion, and corporatism (the three 'Cs,' as I call them) are increasingly the norm in Western economies.
…Why take the greater risk of being entrepreneurial in the private economy when you can be a wealthy rent-seeker?
Conservative Woman UK
“The real damage, however, was done during Mark Carney’s tenure as Governor of the Bank of England from 2013 to 2020, and immediately after. In common with the Fed and ECB, central banks failed to normalise interest rates and end QE, creating a new normal of near-free money. This encouraged Governments to borrow in a fashion unprecedented outside wartime. British debt increased fivefold in just 15 years to an eye-watering £2,400billion (or around £85,000 per household). And if money was elastic and increasingly unrelated to real economic activity, why not just do even more? Build that school, duplicate that railway, spend £500billion locking down the economy.
…Argentina, before Peron ruined it, was one of the wealthiest nations on earth. For 70 years they have failed to recover their mojo. Yes, they have nice wine and decent food, but they stumble from one crisis to the next with the middle classes destroyed and mediocre care for the poor. Once equilibrium is lost it is hard to regain as recriminations, blame and the illusory search for utopia create discord, disharmony and decay.”
See also:
Telegraph
The 1970s showed the demographic hazards of over-taxing people and stifling their ability to set up businesses and seek a better life. We are about to learn those lessons again, and even more painfully this time.
Mint
Yahoo Finance
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You can also check out the “Reflections From Young’s Pyramid”, it illustrates the relative value of exchanges around the world.
Or the “ICE Cost of Borrowing 2020–2022” An Interest Rate Comparison, which illustrates the end of the funny money era of QE and how interest rates have already had a major lurch up from their previous region of zero to, even negative, levels.
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