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FirstFT: SBF engineered one of the “largest financial frauds” in US history

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Sam Bankman Fred is accused of engineering “One of the largest financial frauds in American history” US prosecutors have filed criminal charges against the founder of the failed cryptocurrency exchange FTX.

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in the indictment (Read it in full here), the US Department of Justice charged Bankman-Fried with eight counts including conspiracy to commit wire fraud against customers and lenders, money laundering, and violations of campaign finance laws.

Bankman Fried, which in the Bahamas Monday evening local time, he faces years in prison if convicted. Bahamas Attorney General Ryan Bender said the country’s police forces arrested Bankman Fried after receiving “formal notification” from the US government that criminal charges had been filed and “will likely seek his extradition.”

The charges referred to a long-running scheme to embezzle deposits from stock exchange clients to pay off debts and expenses of Bankman Fried’s private trading company, Alameda Research, and make investments.

The plot lasted from 2019 — the year FTX was founded — until its collapse last month, according to the indictment. The failure of FTX in the Bahamas, once worth $32 billion, has resulted in potential billions of dollars in losses for millions of creditors, including retail investors, and sent shock waves through the crypto industry.

  • Global coding standards: Financial regulators will put in place firm steps for Regulation of the cryptocurrency industry In early 2023, the outgoing Secretary General of the Financial Stability Board told the Financial Times.

  • crypto market: investors have Withdraw over $1 billion from Binance As the world’s largest cryptocurrency exchange grapples with a crisis of confidence in digital tokens and fears that it too could be drawn into US investigations.

1. China Hits again on the chips Beijing retaliated by sweeping US export controls on chipsAnd the establishment of a dispute with the World Trade Organization and the escalation of the technical war between the two countries. China’s commerce ministry said the WTO complaint was a legal and necessary measure to defend its “legitimate rights and interests”.

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2. Paytm launched a $103 million stock repurchase plan The loss-making Indian payments company backed by SoftBank Buy back up to 8.5 billion rupees of shares, after the group’s share price has fallen by two-thirds since its initial public offering 13 months ago. It will buy back up to 10.5 million shares at 810 rupees ($9.81) each – up 50 percent from Tuesday’s closing price.

3. Hong Kong abandons restrictive covid policies HK will Some recent Covid-19 restrictions lifted that destroyed the city’s economy. From today, travelers to Hong Kong will be allowed to visit restaurants and bars for the first three days of their arrival, while residents will no longer have to scan a contact tracing app to enter public spaces.

4. Amendment of US stock trading Banks, trading companies and brokers are preparing for The biggest fix in US stock trading For nearly two decades with the issuance of plans designed to cut costs for small investors.

5. Moderna’s mRNA cancer vaccine shows promise in early trials Moderna and Merck are preparing to launch the first phase of a trial mRNA cancer vaccine After a study suggested that it could be used to treat an aggressive type of skin cancer.

next day

Japan’s industrial production figures This morning the revised Industrial Production figures for October will be released.

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General elections in Fiji When Fiji goes to the polls today for a national election, The biggest challenge to Prime Minister Frank Bainimarama It is expected to come from former Prime Minister Sitiveni Rabuka.

World Cup semi-final Morocco kicks off against France in the semi-finals of the World Cup today. The winner will face Argentina in the final on Sunday. Today’s match, however, It highlights a very special historical relationship between the two peoples.

US central bank meeting policy makers to raise benchmark interest rates by half a percentage point, breaking consecutive interest rate increases by 0.75 points.

What else do we read

Europe’s bid to catch up in the global chip race Taiwan is the world’s most advanced chip industry center. But the growing fears of Chinese military intervention in Taiwan prompted the United States, Japan and many European countries to do so The rush to stimulate the expansion of chip production in their countries – which can come with its own set of problems.

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Explanation of fusion power US Secretary of Energy Jennifer Granholm has confirmed that US scientists have achieved energy gains in a fusion reaction for the first time. But how close is this breakthrough in the energy sector to the dream of fusion energy? Energy Reporter Tom Wilson breaks it down.

Military briefing: The escalation of the air war is depleting Ukraine’s stockpile Kiev is burning its ammunition at an alarming rate as it faces Moscow in The battle of dwindling inventories. Ukraine is urging Western backers to provide more modern surface-to-air systems.

“Just another check” As the recession deepens in the West, the investment by the National Bank of Saudi Arabia is seen by some as a A harbinger of more upcoming expenses, as oil-rich countries hesitated bailouts during the financial crisis more than 10 years ago. But a month after the deal with Credit Suisse was announced, the SNB chief is still agitated by the interest.

Crypto Winter: Will My Investments Ever Recover? More than a million cryptocurrency investors around the world will be wiped out due to the collapse of the FTX cryptocurrency exchange. on me This episode is from the Money Clinic podcastJoin Claer Barrett, the FT’s digital assets correspondent and US financial commentator, to discuss what the crash means for the future of cryptocurrency.

Backpacker

For relaxing and rejuvenating experiences that are truly worth treating someone special to, check out these experiences Five amazing spa treatments in London gift this season.

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Climate chart: an explanation – Learn about the most important weather data for the week. Participation over here

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Economic

We need to pay more attention to skewed economic signals

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The writer is chair of Queen’s College, Cambridge and advisor to Allianz and Gramercy

Inflation was the dominant economic and financial issue of 2022 for most countries around the world, especially for advanced economies that have a consequential impact on the global economy and markets.

The effects have been seen in declining living standards, increasing inequality, increasing borrowing costs, stock and bond market losses, and occasional financial mishaps (fortunately small and so far contained).

In this new year, recession, both actual and feared, has joined inflation in the driving seat of the global economy and is likely to replace it. It’s a development that makes the global economy and investment portfolios subject to a wide range of possible outcomes — something that a growing number of bond investors seem to be aware of more than their equity counterparts.

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International Monetary Fund iYou will likely review soon Her economic growth forecasts again, predicting that “a third of the world will be hit by recession this year”. What is particularly notable to me about these worsening global prospects is not only that the world’s three major economic regions – China, the European Union and the United States – are slowing down together, but also that this is happening for different reasons.

In China, a chaotic exit from the wrong Covid-19 policy is undermining demand and causing more supply disruptions. Such headwinds to domestic and global economic well-being will continue as long as China fails to improve the coverage and effectiveness of its vaccination efforts. The strength and sustainability of the subsequent recovery will also require that the country more vigorously renew a growth model that can no longer rely on greater globalization.

The European Union continues to deal with energy supply disruptions as the Russian invasion of Ukraine continues. Strengthening inventory management and reorientation of energy supplies is well advanced in many countries. However, it is not yet sufficient to lift immediate constraints on growth, let alone resolve long-term structural headwinds.

The United States has the least problematic view. The headwinds to growth are due to the Fed’s struggle to contain inflation after mischaracterizing rate increases as fleeting and then initially being too timid to adjust monetary policy.

The Fed’s shift to an aggressive front-load of interest rate hikes came too late to prevent the spread of inflation in the services sector and wages. As such, inflation is likely to remain stubborn at around 4 percent, be less sensitive to interest rate policies and expose the economy to greater risk for accidents from additional policy errors that undermine growth.

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The uncertainties facing each of these three economic areas suggest that analysts should be more careful in reassuring us that recessionary pressures will be “short and shallow”. They need to be open, if only to avoid repeating the mistake of prematurely dismissing inflation as transient.

This is especially important because these diverse drivers of recessionary risk make financial fragility more threatening and policy shifts more difficult, including potentially Japan. Get out of interest rate control Policy. The range of possible outcomes is extraordinarily large.

On the one hand, a better policy response, including improving the supply response and protecting the most vulnerable populations, can counteract the global economic slowdown and, in the case of the United States, avert a recession.

On the other hand, additional policy errors and market turmoil can lead to self-reinforcing vicious cycles with rising inflation and rising interest rates, weakening credit and compressed earnings, and stressing market performance.

Judging by market prices, more bond investors are better understanding this, including by refusing to follow the Fed’s interest rate guidance this year. Instead of a sustainable path to higher rates for 2023, they believe recessionary pressures will lead to cuts later this year. If true, government bonds would provide the yield and potential for badly missed portfolio risk mitigation in 2022.

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However, parts of the stock market is still weakly bearish pricing. Reconciling these different scenarios is more important than investors. Without better alignment within markets and with policy signals, the positive economic and financial outcomes we all desire will be no less likely. They will also be challenged by the risk of more unpleasant outcomes at a time of less economic and human resilience.

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Economic

Macro hedge funds end 2022 higher, investors say, while many others take big losses By Reuters

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© Reuters. FILE PHOTO: Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York City, US, January 5, 2023. REUTERS/Andrew Kelly

By Svea Herbst Baylis

NEW YORK (Reuters) – Some hedge funds betting on macroeconomic trends have boasted of double and even triple-digit gains for 2022, while other high-profile companies that have long been on technology stocks have suffered heavy losses in volatile markets, investors said.

Rokos Capital, run by Chris Rokos and one of a handful of so-called global macro companies, gained 51% last year. Fund investors this week, who asked not to be identified, said Brevan Howard Asset Management, the company where Rokos once worked, posted a gain of 20.14% and Caxton Associates returned 16.73%.

Haider Capital Management’s Haider Jupiter Fund rose 193%, an investor said.

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Data from hedge fund research showed that many macro managers have avoided crumbling stock markets that have been rocked by rapid interest rate increases and geopolitical turmoil, including the war in Ukraine, to rank among the best performers in the hedge fund industry. The company’s macro index rose 14.2% while the general index of hedge funds fell 4.25%, its first loss since 2018.

Equity hedge funds, where the bulk of the industry’s roughly $3.7 trillion in assets are invested, fared worse with a loss of 10.4%, according to HFR data. And while that beat the broader stock market’s loss of 19.4%, some high-profile funds posted even bigger losses.

Tiger Global Management lost 56% while Whale Rock Capital Management ended the year with a 43% loss and Maverick Capital lost 23%. Coatue Management ended 2022 with a loss of 19%.

But not all companies that bet on technology stocks suffered. John Thaler JAT Capital finished the year with a 3.7% gain after fees after a 33% increase in 2021 and a 46% gain in 2020.

Sculptor Capital Management (NYSE::), where founder Dan Och is fighting the company’s current CEO in court over his salary increase, posted a 13% drop.

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David Einhorn’s Greenlight Capital, which bet that Elon Musk would be forced to buy Twitter, ended the year up 37% while Rick Sandler’s Eminence Capital rose 7%.

A number of so-called multi-manager companies where teams of portfolio managers bet on a variety of sectors also boast positive returns and have been able to deliver on their promise that hedge funds can deliver better returns in distressed markets.

Balyasny’s Atlas Fund (NYSE: Enhanced) gained 9.7%, while Point72 Asset Management gained 10%. Millennium Management gained 12% while Carlson Capital ended the year with a 7% gain.

Representatives for the companies either did not respond to requests for comment or declined to comment.

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German automakers point to easing supply chain problems

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Sales at BMW and Mercedes-Benz jumped in the final months of 2022 as the German premium auto brands indicated supply chain problems plaguing the industry were abating.

Automakers around the world have experienced parts shortages since the pandemic, especially semiconductors, leaving many of them with large fleets of incomplete vehicles that can’t be delivered to customers.

BMW and Mercedes each said their full-year vehicle deliveries fell last year by 4.8 percent and 1 percent, respectively, due to Suppliers Bottlenecks as well as lockdowns in China and the war in Ukraine.

But supply pressures eased in the last quarter of the year, as BMW recorded a 10.6 percent jump in sales, with 651,798 vehicles delivered, and Mercedes fulfilling 540,800 orders, up 17 percent from the same period in 2022.

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BMW He said the main effects of supply chain bottlenecks and continued lockdowns were felt in the first six months of the year, adding that “sales were steadily picking up in the second half.”

Mercedes boss Ula Kallenius told the Financial Times last week that the list of problems in the auto supply chain was declining, but added that long waits for cars would continue into 2023.

“One chip is enough to be vital [ . . .] Missing, and then you can’t finish the car, even if you have everything else.

Both brands recorded strong sales growth electric car. Mercedes, which last week announced a plan to build 10,000 charging docks, said EV shipments grew 124 percent to 117,800 last year compared with its predecessor.

Similarly, BMW reported strong growth in electric vehicle sales, with deliveries of fully electric vehicles doubling last year to 215,755.

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Analysts at Bank of America said that sales of electric vehicles, including hybrid cars, reached a historic peak last November, with 1.1 million units sold. They attributed this largely to the upcoming phase-out of customer subsidies in Germany.

Participate in Mercedes BMW and BMW prices held steady Tuesday morning as investors priced in an image of an improving showing.

Rolls-Royce, a subsidiary of BMW, announced Monday that sales have hit a 119-year record, driven by strong demand in the United States, its largest market.

The luxury brand has been largely unaffected by the semiconductor pressure, mainly because it makes relatively few compounds and therefore needs fewer chips.

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