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In 1789 the French revolution signaled to Europe and the rest of the world that monarchy was on its way out and new democratic age was beginning. Now, with Online Public Offerings made possible thanks to the JOBS ACT, Washio can raise capital directly from the public. So why did they not do it ?
– from a Medium blog post by Howard Marks, executive chairman at StarEngine and co-founder at Activision/Blizzard.
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What does this remind you of?
And by “this” we mean the sudden appearance of millions of Indian bank accounts which only boast balances of one-rupee each.
Any confusion as to why that would happen might be tempered by knowing that those accounts were opened as part of a massive financial inclusion plan undertaken by Modi’s government for which non-operational accounts weren’t a good look… and they were mostly opened at state owned banks.
Incentives are fun. Read more
What is fintech? -- an occasional series dedicated to discovering where the innovation in fintech really is.
- Oh you want your FX to be instant? That's extra
- We buy anything!
- The peer-to-peer scaling, matching and pricing fallacy
- Dollar re-shoring risk and fintech panaceas
- Won't somebody please think of the tax havens?
- Why fintech is a marketing story
- What is cybercrime really?
- And all because banks basically stopped knowing their customers
- Should banking be easy?
- Fintech and banking risk; cognitive dissonance de semaine
- SoFi really wants you to think it isn't a bank
- Why banks are mad about fintech
- Mind the (fintech valuation) gap
- The ghosts of fintech past
- Accounting for fintech's unknown reputation liability
- Transferwise vs the banks
- Google is very interested in doing God's work
- Hi, my name's Random Bank and I'll be your financial server today (Updated)
- Fintech paradoxes, blacklist edition
- The lifecycle of a fintech startup
- Float management isn't easy
- Decentralised courts and blockchains
- Blockchains and blood reserves
- Transferwise gets slammed for *those* ads
- Distributed ledgers, centralised logic and competition
- In other news, Skynet and tech mysticism
- It's no fun when Amex throws your startup a Curve ball
- Dear fintech firms, advertising standards are a thing. Thanks, the FCA
- The financial reserve vs real-world inventory discrepancy
- What's going on at Number26?
- What's old is new again, fintech news edition
Found scattered around a London-based fintech incubator set-up this week:
In case anyone was in any doubt…
Elsewhere on Friday,
– Your market summary: “it’s been a nice respite from the cesspit of ultra low vol, and if Macro Man’s wrong and it kicks off properly, so much the better- that’s a proper trader’s environment!”
– Aswath Damodaran on fairness options: Fix them or flush them.
– The cat ‘scam’ and the domination of the middleman.
– Meanwhile in an India where “zero-balance” accounts, amidst a financial inclusion push, were proving politically embarrassing: “So far, over 10m one-rupee accounts have been found at 34 banks, out of 240m accounts opened since 2014.”
Uber, the unicorn that likes to transform investor funds into cheap promotional giveaways and publicity stunts, is hosting a pool party this Thursday and Friday in London to drum up support for its
UberBus UberPool offer.
If you’re in the Uber London database you will have received this:
McKinsey & Co. has published a tome on the Death of Banks.
Well, they don’t actually say the end is nigh, but they do think the ranks of global mega-banks will shrink by at least half by the time the dust has settled: Read more
Fed up of blockchain hype? Or, convinced that a shared database will revolutionise the world as we know it? Or, don’t know one way or the other?
The FT’s called a debate in which both sides of the argument will be properly defended. It’s in Markets Live form. It’s at 1pm UK time today. It features Izzy vs Simon Taylor, co-founder and blockchain director of 11FS.
This is on the back of the Bank of England’s release of some more info on its Corporate Bond Purchase Scheme (CBPS) on the 12th. From that:
We will look to purchase, via the CBPS, a portfolio of up to £10bn of sterling investment grade bonds representative of issuance by firms making a material contribution to the UK economy, in order to impart broad economic stimulus. Our operations will be designed to purchase a balanced portfolio of bonds across eligible issuers and sectors, so that we purchase a representative portion of the market and do not influence the allocation of credit to particular companies or sectors of the economy. The private market will continue to decide which companies can issue in the primary market. Corporate bonds issued by firms we regulate – such as banks, building societies, and insurance companies – will not be eligible.
This notice outlines in more detail how we decide what constitutes a material contribution to the UK economy, and how our operations have been designed to ensure our purchases are representative across the eligible set of bonds. Operational details are included in the Market Notice.
This is the FT's business and economics news podcast produced in New York. FT hosts and guests discuss new topics each week - and with more wonkiness, humour and irreverence than you'll find anywhere else.
- Introducing Alphachat, the FT Alphaville podcast
- Alphachat: Sal Arnuk on high frequency trading
- Alphachat returns
- Snap Alphachat: Cyprus edition
- Alphachat: the cunning plan edition
- Alphachat: Dragons of Ljubljana edition
- Alphachat: that dang negativity edition
- Alphachat: Lee Buchheit edition, featuring Lee Buchheit
- Abenomics gets the Alphachat podcast treatment
- Alphachat podcast: Noah Smith on the Japanese economy
- Alphachat podcast: Manmohan Singh on collateral chains
- Alphachat: Michael Pettis edition (well, the second one)
- Alphachat: those fracking robots edition
- Alphachat: MF Global nostalgia edition
- Alphachat: When bank capital sleeps with the fishes
- Alphachat podcast: Diane Coyle, Tyler Cowen, and the econ books of the year
- Alphachat: the podcast moment, and some recommendations
- Alphachat: the artisanal economy, Treasury flash crash (still not) explained, campaign Twitter spats
- Alphachat: The Fifa scandal, a big week for tech, and Gawker
- Alphachat: Nikkei buys the FT, Gillian Tett's forthcoming new book, and an Alphavillain returns from Greece
- Alphachat: reader Q&A, bank analyst destiny, Puerto Rican default and the Canadian elections
- Alphachat: the problems of indexed investing, "People's QE", and old media invests in new
- Alphachat: the Chinese economy, and the dodgy Flibanserin (fine, the "female Viagra")
- Alphachat podcast: Joe Stiglitz on minimum wage, monetary policy, TPP and more
- Alphachat podcast: The promise (and the risks) of drones
- Alphachat podcast: Youtube stars, a terrible Republican debate, and the Fed holds (sorry)
- FT Alphachat podcast: Robert Shiller, Martin Wolf, and a tough week for biotech
- Alphachat: Anne-Marie Slaughter on gender equality, invisible Xi, and Emily Parker on the Internet in Cuba
- Alphachat: Vox-pop from the #FTPubQuiz, Jack Dorsey's return to Twitter, and Martin Wolf on secular stagnation
- Alphachat: the podcasting biz; AB InBev to buy SABMiller; and the problem with foolproofing the economy
- Alphachat: Bernanke's book, the TV landscape, and the Canadian election
- Alphachat: Pharma madness (Valeant, Pfizer-Allergan), and a few Angus Deaton clips
- Alphachat: Jon Stewart to HBO, Soros bails on Gross, tech for the aging, and our longform suggestions
- Alphachat: The power of talk and mythical startup valuations
- Alphachat: Robots, artificial intelligence and a sluggish shopping season
- Alphachat: The US SUV boom, Jamaica’s IMF success and a chat with Reihan Salam
- Alphachat: The future of BlackBerry, the renminbi, and George Lucas’s gift to Chicago
- Alphachat: What happens after rates rise, the shrinking middle class and pay equity
- Alphachat: the life of a dissident Cuban economist; a Mexico-US free travel zone; "Hamilton"!
- Alphachat: The FT's US newsroom wraps up the year, looks ahead
- Alphachat: America's eBay for guns, the gadgets of CES, and predictions for 2016
- Alphachat: whether Davos matters, the end of privacy, and the economics of aging
- Alphachat: cyber-security, Detroit vs Silicon Valley, and markets mayhem
- Alphachat: Mauboussin on short-termism; millenials staying put; Perella vs Kramer
- Alphachat: Michael Pettis on the Chinese economy, plus the US election and conservative talk radio
- Alphachat: the legacy of China's one-child policy; and the fall of Theranos
- Our chat with Michael Pettis (updated with full transcript)
- Alphachat: Super Tuesday, money in politics, and what happened to the "libertarian moment"?
- Alphachat: dodgy corporate jet use, NGDP targeting, and the battle over IEX
- Alphachat: the Cuban economy, and Caroline Freund on emerging-market billionaires
- Alphachat: the psychology and study of expertise; and the future for Disney
- Alphachat: alternative data mining, earnings season, and Meb Faber on hedge funds
- Alphachat: Under-appreciated moments in economic history; mid-career switches; "The Age of Stagnation"
- When countries go bankrupt
- How Greece restructured its debt, and a Jamaican success story
- Alphachat: behavioural economics at work; positional goods
- Alphachat: oil and savings; and tax havens in... South Dakota?
- Alphachat: private equity's mark-to-fantasy problem, and the political economy of gangster states
- Alphachat: Guy Debelle on the Fed, China, and FX
- Alphachat: hedge fund problems, performance and personalities
- Alphachat: merging with our longform podcast; responding to listeners; Heather Boushey on the economics of work and life
- Alphachat: McDonald's as community center, the two Americas, and the reputation of Wall Street workers
- Alphachat: Alan Taylor on financialisation, business cycles, and crises; and a mid-year review
- Alphachat: Fact-checking Brexit claims with Tim Harford
- Alphachat: Vox-pop from Camp Alphaville; "Overrated/Underrated" with Tyler Cowen; and the JPM pay bump
- Alphachat guide: the tradeoffs of city life, and a new era for the business of mixed martial arts
- Podcast: Gavyn Davies and Tyler Cowen on the productivity puzzle
- Heidi Williams and the economics of gene sequencing, patent design, and innovation incentives
- Podcast: Alphachat's inaugural film review tackles Tron and Tron Legacy
- Alphachat: the egregiously protectionist dairy racket in... Canada?
- Alphachat: the problem with drug pricing
- Alphachat bonus episode: Arlie Russell Hochschild's guide to Trumpland
- Alphachat: Dan Drezner on forecasting the next-gen political economy
- Alphachat: Tina Fordham on pricing in the risk of Trump vs Clinton
Elsewhere on Wednesday,
– To reiterate, the elephant chart is an amazing chart.
– “It’s not a cult. It’s America. A family man returns to his hometown to discover he’s the last person in town who’s not part of a massive pyramid scheme. And everyone– EVERYONE – wants him in”
– When VCs meet a mortgage market.
Bayer sweetens its offer for Monsanto to just under $130 a share Read more
People tend to get worked up about the idea of Wall Street mining the trails of data we all leave on the internet for investment ideas.
The first and most obvious reason is that privacy issues are always contentious. You’d think it’d be a windfall for hedge funds if MasterCard or Visa started selling them data on trends in customer purchases (while the card providers sell some data, hedge funds haven’t cracked that yet, as far as we know). While the information obtained in data-mining isn’t supposed to be traceable to individuals, how would a company fully scrub that of any signs of consumers’ identities? Read more
Uber, the ride hailing app, is the archetypal billion dollar unicorn.
How it’s managed to convince investors it’s worth $62.5bn, however, is the real mystery, given its model is arguably neither innovative or viable. Read more
It has been called China’s Great Ball of Money, the vector through which bubbles come and pass.
Of course any particular bubble is not the beginning. There is no beginning in a China which is more and more interconnected, meaning its risks and excesses flow as easily as that giant ball of money.
… asset price appreciation seems to be worryingly unstoppable. Especially, housing market indicators continued to show a brisk momentum in sales and prices, but a muted construction recovery. Even the officials at the central bank admitted that there is a bubble.