Week InReview

Friday | Mar 31, 2023

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It's a tie.

London, NYC tied as world's top financial center. Photo: Hollie Adams | Bloomberg

London has lost its sole lead as the world’s top global financial center, according to research by the City of London Corporation that will add to concerns over the competitiveness of the Square Mile. London and New York have tied for the top spot, according to benchmarking data by the City’s governing body. This marks the first year that the UK capital has not been the clear leader as other financial centers have grown faster.


— Financial Times

let's recap...

World’s favorite risk-free asset is looking riskier after SVB

Look deeper into the latest US banking crisis, and the cause may come as a surprise to anyone still thinking in terms of the crash of 2008. It wasn’t dodgy loans to impecunious homebuyers that sank Silicon Valley Bank. It was a stash of what are thought to be the safest securities on Earth: US Treasuries. (Bloomberg Businessweek - The Big Take | Mar 29)


Distress in office market spreads to high-end buildings

Defaults and vacancies are on the rise at high-end office buildings, in the latest sign that remote work and rising interest rates are spreading pain to more corners of the commercial real-estate market. For much of the pandemic, buildings in central locations that feature modern amenities fared better than their less-pricey peers. Some even were able to increase rents while older, cheaper buildings saw surging vacancy rates and plummeting values. Now, these so-called class-A properties, whose rents generally fall into a city’s top quartile, are increasingly coming under pressure. (The Wall Street Journal | Mar 28)


Fed official: Bank rules under review in wake of SVB failure

The Federal Reserve’s bank supervisors warned Silicon Valley Bank’s management as early as the fall of 2021 of risks stemming from its unusual business model, a top Fed official said Tuesday, but its managers failed to take the steps necessary to fix the problems. The Fed official, Michael Barr, the nation’s top banking regulator, said during a Senate Banking Committee hearing that the Fed is considering whether stronger bank rules are needed to prevent a similar failure in the future. (Associated Press | Mar 28)


Banking crisis raises concerns about hidden leverage in the system

As traders rush to identify where the next bout of volatility will come from, some watchdogs think the answer may be buried in the huge pile of hidden leverage that’s been quietly built over the past decade. More than a dozen regulators, bankers, asset managers, and former central bank officials interviewed by Bloomberg News say shadow debt and its links to lenders are becoming a major cause for concern as rising interest rates send tremors through financial markets. (Bloomberg Markets | Mar 27)


Banking crisis raises concerns about hidden leverage in system

As traders rush to identify where the next bout of volatility will come from, some watchdogs think the answer may be buried in the huge pile of hidden leverage that’s been quietly built over the past decade. Loans have been layered up during era of low interest rates. Deeper probes, stress tests likely after recent bank turmoil. (Bloomberg Markets | Mar 27)

the cyber cafe

Illustration: Abbr.Project | Wired

Bots for good

Bots mentioned in the cybersecurity context are usually computers hijacked by hackers to send denial-of-service attacks. Not today. Microsoft created a cyber assistant with ChatGPT bot technology, designed to help security teams detect breaches and analyze data. The Security Copilot is one in a series of tools Microsoft is augmenting with ChatGPT AI services.

— Reuters


US spy agency cyber chief warns TikTok is China’s ‘Trojan Horse’

Rob Joyce, the head of the US National Security Agency’s cybersecurity arm, said popular video-sharing app TikTok is China’s “Trojan horse” and poses a long-term, strategic cybersecurity concern. Joyce said it was critical that the US government monitor TikTok’s Chinese parent ByteDance Ltd. to avoid a security incident “five, 10 or 20” years down the line, as opposed to an imminent, “tactical” threat. 

— Bloomberg Technology | Cybersecurity


CIOs build new bonds with CISOs

As cybersecurity attacks directed at enterprises continue to evolve, some corporate technology leaders are elevating the roles of their chief information security officers and stressing the importance of directly communicating to their boards of directors how cybersecurity risk can impact their business.

— The Wall Street Journal

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binge reading disorder

Watchmaker Panerai said its Submersible eLAB-ID was 98.6% recycled by weight . Photo: Panerai

Luxury watches search for a different kind of green

The luxury-watch industry appears to be waking up. Strategies vary: last year, IWC hired supermodel Gisele Bündchen as an environmental and community-projects adviser, Chopard’s watches contain only so-called ethical gold from traceable sources, while Panerai and Breitling have replaced wooden boxes with lower-impact packaging.

— Time


We're nowhere near reaching the maximum human life span

Scientists have long debated the greatest possible age of a person, with previous studies placing the limit at up to 150 years. In a new study, researchers say they've uncovered evidence that this longevity record will be broken within the next four decades. However, not everyone agrees with the team's conclusions, according to experts.

— LiveScience


The best password managers to secure your digital life

Password managers are the vegetables of the internet. We know they’re good for us, but most of us are happier snacking on the password equivalent of junk food. A password manager offers convenience and, more importantly, helps you create better passwords, which makes your online existence less vulnerable to password-based attacks.

— Wired

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