6 min read

Exchange Invest Weekend Edition 2619: From AI to Obsolescence

Chinese IDB Data Cut; FTX and their GUBU Loans; LME get hit with a minor warrant issue in Nickel; B3 are All In On Vermiculus; Happy 160 years to Stockholm; And there's a big Swiss Imbalance in the shareholder register
Exchange Invest Newsletter
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Saturday Special: Feel Free to Share with colleagues and friends.
On this day in 1929, a mini-crash began as investors started to sell, revealing the market’s shaky foundations. For the many people playing the market with borrowed money, the day was a disaster, as margin calls wiped out their holdings. When investors sought to borrow more money, interest rates soared to 20 percent. The New York Daily News called it a “selling avalanche.”

The Week

(More) AI hypocrisy. Failed states, losing soft power & the deterioration of built-in obsolescence plus a German mega fraud retold.

In BigWorld

From Exchange Invest 2617: March 23rd, Thursday:

Today marks 2 years since the world saw how hand brake turns in a “Fast & Furious” manner are not a good way to traverse the Suez Canal, especially when you’re in charge of the 399.94 metre, 20,124 TEU, Ever Given. Incidentally, the Ever Given is in Qingdao harbour as I type, presumably resting up before a few beers to celebrate surviving its famous shuffle of 2021.

In the broader interweb, our social media is today devoting some space to that epic moment in maritime history where the world’s supply chains, already battered by Covid briefly became more pear shaped still.

You might presume Evergreen, the company which owns the Ever Given, has been suffering since its off piste excursion blocked the fast way between the Med and the Red. On the other hand, you might have discerned that with eye popping freight rates in recent times, it’s been a bit of a bumper year.

Evergreen reported a 39.82% jump in profit - a whopping $16.25 billion for FY 2022 according to The Straits Times. With consumer goods a huge driver, one might presume Evergreen staff bow to shrines honouring Alibaba/AliExpress prior to bedtime…

The Taiwanese shipping company is thus indulging in what might be called a case of “Ever Giving” bonuses. While awards depend on individual staff performance, the average is 10-11 months’ salary as a bonus for the 2022 financial year which comes on top of an up to 50 month bonus paid last December. In other words, 5 years salary as a bonus across the 3100 staff payroll! (Annual salaries at Evergreen range between $44,745 & $171,154 according to the jobs website Comparably).

True freight rates have declined sharply in recent months so 2023 bonuses might be lower but I suspect Evergreen staff will cope, particularly as they have the last laugh 2 years on from their infamous shipping problem!

IPOVID LIVESTREAM

NEXT WEEK TUESDAY:


Season 17: Episode 04
IPO-VID Livestream 100
Guest: James Block

Tuesday, March 28th: 1800 UK, 1900 CET, 1400 EST

"James Block: Examining Dirty Bubbles"
Lifelong Midwesterner, James Block is a psychiatry resident at the University of Michigan, having completed an MD/Ph.D. at Wayne State University. During medical school, he started researching cryptocurrency markets and discovered red flags concerning fraud and money laundering. This research grew into a newsletter, Dirty Bubble Media, dedicated to original investigations of various aspects of the "Dirtiest Bubble of the 21st Century."

Dirty Bubble Media has exposed and contributed to the unravelling of 2 major frauds (Celsius Network and FTX) as well as exposing potential malfeasance at Signature Bank of New York.

Watch the Stream on:

NOW ONLINE!
Season 17: Episode 03


IPO-VID Livestream 099
Guest: Colin Formosa

Tuesday, March 21st: 1800 UK, 1900 CET, 1400 EST

"Colin Formosa: Maltese Money & More"
Oft occupied, frequently pillaged, permanently trading with the Levant and Europe, Malta has a rich commercial history dating back 10000 years. That is reflected in its remarkable coinage.

Secretary General of the recently established Malta Numismatic Society, Colin Formosa is a Master Mariner by education and Marine pilot by profession where he shepherds ships at the busy Grand Harbour of Valletta and the Malta Freeport (which handles circa 3 million TEUs PA).

Join us for a fun discussion of banknotes, tokens, jetons, medals, seals, dies & weights related to the Maltese Islands and beyond!

Watch the Stream on:

IPO-VID Livestream Podcast

In IPO-VID Episode 090: Patrick Young was joined by the former CEO of both @Dubai Gold & Commodities Exchange and #DCCC, Les Male.

Enjoy this discussion and learn more about "Developing Commodity Exchanges.

Available in different podcast sources:

EI WEEKLY PODCAST

Chinese IDB Data Cut

FTX and their GUBU Loans

LME get hit with a minor warrant issue in Nickel

B3 are All In On Vermiculus

Happy 160 years to Stockholm

And there's a big Swiss Imbalance in the shareholder register

The Exchange Invest Weekly Podcast 186

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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.

Available worldwide.

Parish Notes

An excerpt from Exchange Invest 2616:

While a lot of folks are vexed about there being “No Go” on the “Co Cos” (see Matt Levine this week Money Stuff: UBS Got Credit Suisse For Almost Nothing and here), in the bourse parish this makes an interesting situation. Last time we checked in, last October 17th (EI 2482), I noted Credit Suisse was preparing asset sales and that likely meant a divestment of SiX shares.

If you want to stay ahead of the exchange curve, you need the bourse business daily, Exchange Invest - DM us to subscribe.

Bitcarnage

I had not noticed it was ‘national promote a lost cause week’ as that might explain the next headline but then again Coinbase are acutely capable of forlornly chasing fleeing horses a sound T+several post stable bolt repo: Coinbase Submits Petition To SEC Explaining That Staking Is Not Securities (Cointelegraph).

At least we can agree on this statement of the obvious: Coinbase: ChatGPT Doesn’t Meet Accuracy Requirements For Integration Into Security Review Process (Cryptoslate). In a non crypto story in a similar vein, I note somebody from the Telegraph asked ChatGPT for a stock portfolio. It’s down at least 24% after 3 months which is a giddy level of failure that at least imputes some element of organisation along the way to such a dire result. Maybe those folks behind the Cramer / Invest Cramer stock picking ETFs will consider a similar ChatGPT ETP brace?

In the spirit of agreeing with Coinbase staff today, here’s a zero brainer: Coinbase Chief Legal Officer: What FTX Did Was ‘Flat-Out Fraud’ (Decrypt). …We merely await the judge’s decision on this.

Everyday we cover the ongoing turmoil of BTC, crypto et al in our daily "Bitcarnage" section of Exchange Invest, for more details on a free trial to our premium newsletter of the bourse business delivered to your Inbox daily, DM a reply to this newsletter saying "30 day trial, please."

Macro Thoughts

China’s Financial Overhaul Brings More Power To The Party, With US$58 Trillion In Assets At Stake
South China Morning Post

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!

Crypto-Linked Bank Failures Fuel Regulation Debate
ZAWYA

Ai Hypocrites Can’t Be Allowed To Destroy Property Rights
The Telegraph

What Happens When A State Fails
The Spectator

How The Biggest Fraud In German History Unravelled
The New Yorker

Why Everything You Buy Is Worse Now
Vox

'Russia Has Lost Its Soft Power': How War In Ukraine Destabilises Old Soviet Allies
The Guardian

Last Word

Catch up on Monday for Exchange Invest 2620...

The future continues in the water cooler of the bourse business…

- Patrick

Exchange Invest is "the exchange of information" in market structure worldwide.

Exchange Invest Daily is the benchmark newsletter about exchanges and market structure, read by the leading figures in the 'parish' across the world.

Patrick L Young wrote the original fintech book, "Capital Market Revolution!" (FT PH 1999) and has, alongside many entrepreneurial endeavours, been an exchange CEO.