AI Special #2: EI Weekend 2985
A second AI special as we cherrypick some more thought provoking reading after our EI Weekend special #1 garnered a lot of interest.
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 Young. Monday through Friday our daily paid subscriber email discusses the business of bourses of all kinds across the world.
On this day in 2010, France officially opened up its online gaming market, granting 17 licenses to 11 operators three days before the start of the soccer World Cup in South Africa. Online betting on horses, sport and poker was legalized.
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MACRO THOUGHTS
ESMA Provides Guidance To Firms Using Artificial Intelligence In Investment Services
ESMA
PLY: Interesting diversification of macro thoughts here. The ESMA (EU financial regulator) is far newer and reflects the blob rushing to get its thoughts in pre-emptively. The trouble remains the EU holding a precautionary principle has already resulted in a world’s first law which doesn’t require a lot of AI training to conclude — a stupid law as it essentially precludes innovative thought in the usual hope of preventing damage to the EU status quo and thus ensures the EU can become a worse than Argentina economic outcome (pre-Milei).
IN BIGWORLD
From Exchange Invest 2978: Wednesday, May 31st:
“But it is clear that expectations for Biden in the 2024 debates will be so very low that, unless he falls over and soils himself, his backers in the media will talk about how energetic and strong he is. That’s the bar for leadership of the free world, folks.”
…Freddy Gray in The Spectator ‘Trump vs Biden Could Be The Worst Presidential Debate In History”
In other Bigworld’s this week, there was a lot about elections: Disappointment for Modi in India although he has achieved a record-equalling third term with his allies, devastation for the once almighty ANC in South Africa and a mega majority for the nominated successor to AMLO as Mexican President who won a landslide. The UK meanwhile has an election looming on July 4th between the essentially centre left PM Sunak (who is doomed to defeat thanks to maintaining the utility of a chocolate teapot) and the even further left Labour leader Keir Starmer. CEO “ODD” had previously nailed his colours to the Labour mast as some form of fuzzy advisor while his LSEG predecessor Xavier Rolet mentioned this week a bailout of the LSEG with government deregulation is urgently required — #goodluckwiththat.
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Guest: Steve Zwick
June 4th, 2024
1700 UK, 1800 CET, 1200 EST
A former futures broker / trader, Steve Zwick writes about the economics of sustainable development and the interplay between land-use / climate change — subjects he developed a fascination for in a 30-year career that brought him from Chicago’s trading pits and led to subsistence farms in rural parts of Kenya, Vietnam, and Brazil.
Watch the stream on:
LinkedIn | Youtube | X | Facebook
EXCHANGE INVEST WEEKLY PODCAST
T+1 Is A Thing In The World’s Biggest Market,
FESE Published Their Checklist Manifesto,
Euronext Completes GRSS Takeover,
As New York Is The Epicenter of Bourse Country Cool.
The Exchange Invest Weekly Podcast 248
BITCARNAGE
Burn After Reading?
The Coen Brothers’ 2008 spy tale “Burn After Reading” remains a sublimely brilliant caper / farce of hubris, incomprehension and above all, human quirks… At the epicentre of the tale is John Malkovich painfully penning a sublimely stuffy tale of his spy escapades in the form of a memoir (JM’s pronunciation of “Me-mmm-OI-r” rings in my ears).
Now, it looks as if the crypto kiddies are getting in on the act. I can only presume (Former FTX Executive Ryan Salame Writing Memoir About SBF’s Crypto Exchange — Cryptonews) Ryan Salame’s tale can be longer, or at least better edited than CZ’s as RS has the better part of 8 years to craft his mem-oir as opposed to the scant 4 months for CZ (QV EI 2970). Not that I expect CZ is complaining.
If you enjoyed this excerpt you may be interested to know that you can read Bitcarnage every day in Exchange Invest.
Alternatively, if you want to follow Bitcarnage — the daily update on happenings in the world of crypto and digital assets, then you can find Bitcarnage as a standalone on Substack.
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!
PLY: Probably not, big state Britain was already back under the useless clump of the blob under the rubbish regime of the past 14 years and of course the Blair faux-risorgimento that ran before it. However, now a hard left government under the odious former chief prosecutor Keir Starmer is nailed on to win the next election… it’s not just the threat to AI.
PLY: Quite a mega stat, Intel expected to end this year with $20 billion less in revenue than 2021.
PLY: Not specifically touting AI BUT the key here is the microsurgery robots are coming for a country club member near you… It won’t kill surgery per se BUT the possibility of having a much lower error rate for quasi-uniform simpler procedures is likely to become a 100% bot-surgeon monopoly. Even complex surgery will increasingly be robotic albeit with some human oversight. The opportunity for ML and AI processes in engineering all the way through health is vast and that’s going to be a big upper middle class crusher.
The Biggest AI Marketing Mistakes And How Brands Can Avoid Them
Ad Age
PLY: Media is fascinating BTW. The likes of the News Corp are busy licensing their content which is training AI BUT the problem is the old thesis of garbage in, garbage out. Therefore for headline news, it’s probably okay for AI but in specialist news?
Let’s just say the AI PLY is not currently under trial…
PLY: However in research, we love AI BUT like interns, it’s vital you check the work as AI is not utterly reliable (see the Wired article above), or in the next tale:
PLY: Some of course might say that therefore the market which ought to be terrified are supermarket tabloids which never much troubled themselves with reality or indeed, the truth?
PLY: Isn’t the LSEG already leading in this regard? I mean their Group CEO is a personality prototype, right?
PLY: See also all of the above — and think out of the box…
Still interested? Check out our previous EI Weekend AI Special FYI, part 1 was EI 2856, January 6th, 2024.
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Books worth reading:
FINANCE BOOK OF THE WEEK
Huge thanks to reader Paul Conn for his recommendation of this week’s book of the week: “Co-Intelligence: Living and Working with AI” by Ethan Mollick shows what it means to think and work together with smart machines, and why it’s imperative that we master that skill.
Get the book here.
*Paid link, as an Amazon Associate, Exchange Invest earns from qualifying purchases.
Suggestions welcome if you would like to nominate a book for us to cover!
Our next Book of the week will be unveiled Saturday in the EI Weekend Edition.
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VICTORY OR DEATH
Victory Or Death” is a must-read book for anyone interested in the intersection of Blockchain, Cryptocurrency and FinTech giving a holistic view of the future of markets.
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LAST WORD
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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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