For over a year, India's regulator sorted through billions of trades to map Jane Street’s strategies. In this week’s India Edition, @menakadoshi goes behind the scenes to show how SEBI built its case against the trading firm (Free read) https://t.co/HRjeLJiO4I ...

India's high-frequency trading bonanza saw global firms make outsized profits for years. But the authorities' crackdown on Jane Street suggests the windfall may be coming to an end https://t.co/s2H8mDlJNM ...

Summary of Key Points from the Conference Call Industry and Company Involvement - The conference call primarily discusses the economic outlook and investment strategies related to various sectors, including US Financials, Asia Economics, and Latin America Equity Strategy, as presented by Morgan Stanley Research. Core Insights and Arguments US Economics - There is no expectation for a significant acceleration in core inflation due to oil prices, with a 10% rise in oil prices resulting in only a 3 basis point increase in core prices over three months [6][9] - Headline prices may increase by 35 basis points after a similar shock, primarily affecting the energy component of the Consumer Price Index (CPI) [6][9] Asia Economics - Asia's oil burden is below its long-term average, suggesting that the impact of oil price spikes should be manageable [10][12] - If oil prices exceed US$85 per barrel, there may be risks of delayed rate cuts by policymakers in Asia [10][12] US Financials - The forecast for capital markets activity has been raised due to strengthening market conditions, with M&A, Equity Capital Markets (ECM), and Debt Capital Markets (DCM) expected to return to three-decade averages by 2027 [18][20] - The new forecasts indicate a multi-year increase in capital market volumes even under bear case scenarios [18][20] US Strategy - A moderate slowdown in US GDP growth is already priced into the equity market, and soft macro data should not disrupt equity prices unless labor market data deteriorates sharply [23][30] - The correlation between equity returns and bond yields has turned negative, indicating a potential "bad is good" environment [23][30] Global Cross-Asset Strategy - Section 899 of the One Big, Beautiful Bill Act could have significant implications for foreign investment in US assets, with US liabilities to foreign entities totaling US$39.8 trillion as of December 2024 [31][36] - The largest holders of US securities are EU entities, which could be affected by the broad interpretation of Section 899 [31][36] Japan Equity Strategy - There is a limited risk of Japan being designated as a "discriminatory foreign country" under Section 899, but sectors like Financials, Autos, and Trading Companies may face indirect risks [37][40] Latin America Equity Strategy - Global investors are currently underweight in emerging market equities, and a shift to an equal-weight position could lead to significant inflows into Latin American markets, with estimates of inflows reaching US$40 billion for Brazil and US$14 billion for Mexico [51][54] Other Important Insights - The demand for US stocks has declined recently, but this is not alarming based on monthly data, indicating a potential shift towards international equity funds [41][43] - The overall size of the US stock market is expected to continue attracting inflows, albeit at a reduced rate [41][43] This summary encapsulates the key points discussed in the conference call, highlighting the economic outlook and investment strategies across various sectors and regions.

Core Viewpoint - Flow Traders is preparing for its 2Q 2025 results, highlighting increased market trading volumes and volatility across various asset classes, which positively impacted its business performance [2][10]. Market Environment - Market trading volumes and volatility increased in the second quarter across most asset classes and regions, with significant increases in early April, followed by a return to normal levels in May and June [3]. - In Equity, trading volumes and volatility increased across all regions compared to the same period a year ago and the first quarter [3]. - Fixed Income market trading volumes also saw an increase year-on-year and quarter-on-quarter, while volatility remained relatively flat [3]. - Digital Assets experienced a slight year-on-year increase in trading volumes but a significant decrease compared to the first quarter, with volatility declining meaningfully [3]. Equity Market Insights - European exchanges such as Euronext, Deutsche Börse, and the London Stock Exchange reported double-digit increases in trading volumes year-on-year and quarter-on-quarter, particularly in April [4]. - In the Americas, both Nasdaq and NYSE also saw double-digit increases in trading volumes [4]. - APAC exchanges, including Hong Kong, Tokyo, and Shanghai, experienced double-digit volume increases compared to the same period last year, though less pronounced than in the first quarter [4]. Volatility Trends - Volatility indicators such as VSTOXX in Europe, VIX in the Americas, and JNIV in Japan showed double-digit increases compared to the same period last year and the first quarter [5]. - The VHSI in Hong Kong increased year-on-year but remained flat quarter-on-quarter [5]. Fixed Income Insights - Fixed Income trading volumes increased by double digits across most products on Tradeweb and MarketAxess compared to the same period last year and the first quarter, although the magnitude was smaller than in Equity [6]. - Fixed income volatility, as indicated by the MOVE index, saw slight increases both year-on-year and quarter-on-quarter [6]. Digital Assets Performance - Bitcoin trading volumes increased slightly year-on-year but decreased by double digits quarter-on-quarter, with volatility also declining significantly [7]. ETP Market Volumes - Flow Traders reported a 53% year-on-year increase in On and Off Exchange Value Traded in EMEA, 43% in the Americas, 78% in APAC, and 48% globally [8]. - Average volatility, as indicated by the VIX, was up 77% quarter-to-date compared to the same period last year [8]. Impact on Flow Traders - The increase in trading volumes and volatility positively contributed to Flow Traders' Net Trading Income (NTI) compared to the same period last year [10]. - NTI performance was comparable to the first quarter, as volumes and volatility returned to normal levels in May and June after a surge in early April [10]. - All regions showed improvement compared to the same period last year, with the Americas also improving compared to the first quarter [10].

Group 1 - Marubeni has experienced a significant rally of over 35% since March 2023 [1] Group 2 - The analyst has a background in IT and focuses on providing differentiated insights for investing and trading [2] - The analyst emphasizes a moderate approach to investment, particularly after experiencing losses during the Global Financial Crisis [2] - The analyst covers various themes including automated supply chains, Generative AI, and the deflationary nature of software [2]

Core Viewpoint - The breakdown in board governance at Phillips 66 has hindered the company's ability to deliver value to shareholders, necessitating a change in leadership and strategic focus to maximize long-term value [1][3][4]. Company Strategy and Governance - Phillips 66 has pursued a strategy that emphasizes midstream assets alongside its refining business, which has not yielded value for shareholders compared to more streamlined peers [4]. - A stronger board is needed to question the current business structure and initiate a review of alternatives to unlock shareholder value [4]. Leadership and Board Composition - Elliott Investment Management's nominees are expected to bring independence and expertise to the Phillips 66 board, fostering a culture that prioritizes long-term value creation [1][5]. - The current board lacks the necessary independence and expertise to effectively challenge management's assumptions and decisions [3]. Shareholder Considerations - A significant number of retail shareholders, including retirees and employees, rely on Phillips 66 for their financial goals, highlighting the need for a board committed to maximizing shareholder value [5]. - The engagement with Elliott Investment Management aims to ensure that management is held accountable and that the interests of all shareholders are prioritized [1][5]. Leadership Background - Gregory J. Goff, a 40-year veteran in the energy industry, emphasizes the potential for Phillips 66 to regain its stature through operational and strategic changes [2][7]. - Goff has a history of successful management and transformation in energy-related businesses, including leadership roles at Andeavor and ConocoPhillips [8].