Fixing The Unfixable?: EI Weekend 2962
Ideological capture? FT’s problem solving failures. Staying ahead of the curve, meh? Demise of a famous dog, the life of a remarkable raven
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 2020, UBS launched SARON-based Swiss franc mortgages, and phased out LIBOR.
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MACRO THOUGHTS
The Growth Of A $1,000 Equity Investment, By Stock Market
Visual Capitalist
IN BIGWORLD
From Exchange Invest 2959: Wednesday, May 8th:
FESE along with EBF and EFAMA have issued an interesting Oliver Wyman written report about the future of EU Capital markets. A good read and a pleasant 16 pages make it approachable in a world of bigger, boring verbosity being far too commonplace.
Anyway, PLY has made much in recent months of the shocking example of the 15-year plunge of the EU economy. The Eurozone and the US were roughly at parity in 2008 ($14.2 trillion versus $14.8 trillion on a “current prices basis” — source Le Monde). By 2023 the Eurozone GDP was just over $15 trillion while the US GDP was $26.9.
Rem: Growth over 15 years of EU as a whole, 9%, USA: 86%.
The FESE report notes how EU equity market capitalisation has grown 2016–2022 by 48–66% of GDP whereas the US with far superior economic growth has leapt from 104% to 157% of GDP! Liquidity (turnover velocity) was constant in the US at 145% of GDP whereas in the EU it declined from 68% to 52%.
US pension, insurance, and household assets are 6X US GDP whereas even in the largest EU economies, they are barely 2–3X in France, Germany, and Spain. There are some bright spots. Whereas USA is 622% of GDP, In Europe, EU market leaders include Denmark (654%) and Sweden (483%) — which of course fall in the epicentre of the Nasdaq SME stock listing centre of excellence.
In capital market direct investments, the US sits at 288% of GDP compared to 40% to 100% of GDP in EU nations. Indirect allocation is a whopping 525% of US GDP versus 130–200% in the major EU nations.
The fascinating part is if the EU matched the US, that would mean an additional €35 trillion of capital in Germany, Italy and Spain alone albeit the equity market capitalization of the entire European Union was €13 trillion in 2022.
NEXT TUESDAY: IPO-VID LIVESTREAM
Guest: Thapelo Tsheole
May 14th, 2024
1700 UK, 1800 CET, 1200 EST
Watch the stream on:
LinkedIn | Youtube | Live on X — Link TBN
“Botswana Rising with Thapelo Tsheole”
After over 8 years in charge of the Botswana Stock Exchange, Thapelo Tsheole was recently announced as the new CEO of the Rwanda Capital Markets Authority. Join us for a fascinating discussion on this dynamic economy and its financial markets.
EXCHANGE INVEST WEEKLY PODCAST
All Weather Excellence Says Leading Exchanges Grow More Than 20% In Q1,
There’s A Dash of Spring MOU Madness In The Air,
While Europe’s Leading Financial Industry Bodies Warn The Flywheel Needs To Turn.
The Exchange Invest Weekly Podcast 244
BITCARNAGE
Poetic Justice?
A frequent complaint in Bitcarnage has been the lack of self awareness of those involved in the crypto V1.0 economy. The metaphoric peak may have been reached this week — for I doubt it was self-irony — when Patrick Gruhn, the Former FTX Europe Head Paid $1.5M For Gold Watch Recovered From Titanic / Former FTX Executive Pays $1.5 Million For Gold Watch Recovered From Titanic (Coindesk / WSJ) apparently with funds from the sales of his companies not from running FTX. The watch once belonged to hapless honeymooner John Jacob Astor IV.
Meanwhile, there is a sense of shock about the CZ sentence after all the talk of at least 18 months from various quarters — Bitcarnage team included! Cointribune discusses the issue in Crypto: Why Was CZ’s Sentence So Light? Meanwhile, it’s time to give up the wheeling and dealing for a while at least: Former Binance CEO Changpeng Zhao Says He Will Remain Passive Holder Of Crypto After Receiving Prison Sentence (The Daily HODL).
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.
IPO-VID LIVESTREAM PODCAST
In this episode, we chat with Roland Bellegarde, former Group EVP at Euronext and NYSE Euronext, and current Senior Advisor to the Group CEO of the Saudi Tadawul Group about the exciting developments happening in the Saudi Capital Markets.
🎧 Click here for different podcast sources:
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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!
It Rarely Pays To Be Ahead Of Your Time
The Spectator
“For sheer argument’s sake, let’s suppose that the computer modelling-driven construct proves wrong-headed. If we didn’t fully acknowledge that Galileo was spot-on for 359 years, how long could it take for man-made ‘global boiling’ to be declared a busted flush? Vast are the vested interests in this latest belief system, which flatters our transitory species as capable of dialling the average temperature of our whole planet up or down. Frankly, I can’t see this dogma being officially de-bunked during my lifetime, even if we quietly suspect for years that it’s hogwash. The ‘deniers’ will keep getting called names and losing their jobs. If it turns out that the sceptics were right, no one will ever thank them or apologise, just as vindicated lockdown sceptics get little credit today.
I have my own depressing theory. It’s credibly to our evolutionary advantage to be conformists. At any given time, your chances of survival are greater if you parrot exactly what other people around you are saying and claim to believe exactly what everyone else around you claims to believe. None of this marching to a different drummer! Don’t call attention to yourself; just try to blend in. Even in secular societies, heretics are in statistically high danger of defenestration or immolation, if only metaphorically.”
The Sad, Sad Story Of Laika, The Space Dog, And Her One-Way Trip Into Orbit
At the Smithsonian
The Era Of The Unfixable Problem
FT
PLY: Everything wrong with society in one column — the FT exemplifies the whataboutery that becomes a world where the political class is incapable and the educated stupid class have abandoned common sense, practicality and execution of any coherent plan — hence the flawed “unfixable problem” thesis which is actually a reflection of incapable leadership.
The Financial Times: Ideologically Captured
James Esses
““At the FT, we believe that focusing on D&I will create a positive impact on our culture, on our products and on the communities we reach and represent. The Toolkit then talks staff through the various ways in which promoting D&I will boost profitability, relevance and sales. It is abundantly clear what is expected from staff by their senior management.”
PLY: Perhaps there is a solution to those “unfixable problems” after all? #AskingForAFriend
Jimmy The Raven: The Wild History Of Hollywood’s Hottest Animal Actor
Empire Online
PLY: Given the woeful management of society, if only Jimmy the Raven were alive he might be an ideal actorial heir to Ronald Reagan as US President.
IPO-VID NOW ONLINE
Guest: Brian Hyndman
May 07th, 2024
1700 UK, 1800 CET, 1200 EST
Watch the stream on:
LinkedIn | Youtube | X | Facebook
“Blue Ocean — A New Market Tide”
Brian Hyndman is the President and CEO of BOT.
Previously, Brian was the SVP of Global Information Services for The NASDAQ OMX Group, Inc. Prior to this he served as SVP of Transaction Services responsible for managing operations of Nasdaq’s U.S. equities trading platforms.
Prior to joining NASDAQ in 2004, Mr. Hyndman was the President of BRUT, an ECN that was eventually sold to NASDAQ in 2004.
BOOKS WORTH READING:
Finance Book Of The Week
In response to reader’s queries, we have added a book of the week column to the EI weekend edition — interesting books pertaining to exchanges and markets, investment et al.
-Anybody can sign up for EI Weekend for free at ExchangeInvest.com.
This week’s book was written by John Hulsman.
“The Last Best Hope: A History of American Realism” is a brilliant exploration of American history and contemporary conservative politics that provides a practical, realist foreign policy for a new age of American politics.
Least you haven’t already read him, John Hulsman is that thing we love in geopolitical analysis — a winner, not a windbag. His record is second to none in accurately assessing outcomes and that makes The Last Best Hope a must-read as the NeoCon delusion dies and the failures of Democratic foreign policy are writ large from the fringes of the US border outwards into the world. It’s time for realism — read this book.
*Paid link, as an Amazon Associate, Exchange Invest earns from qualifying purchases.
Get the book here.
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.
*Paid link, as an Amazon Associate, Exchange Invest earns from qualifying purchases.
LAST WORD
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