Week InReview
Friday | Sep 3, 2021
Travel rethink.
Business travel as we’ve known it is a thing of the past, with companies around the world signaling that new communications tools are making travel less of a necessity — and saving a pile of cash in the process. A Bloomberg survey of 45 large businesses in the U.S., Europe and Asia shows that 84% plan to spend less on travel after the Covid-19 pandemic. The ease and efficiency of virtual software, cost savings and lower carbon emissions were the primary reasons cited for the cutbacks. Spending on corporate trips could slide as low as $1.24 trillion by 2024, from a pre-pandemic peak in 2019 of $1.43 trillion. If you are planning a trip, here’s where you can go right now and which countries are still sealed off.

— Bloomberg
let's recap...
Photo: Getty Images
Asset managers are about to see trading costs surge under new rules meant to reduce risk in the $15.8 trillion derivatives market. Hedge funds, money managers, and insurers with more than the equivalent of $59 billion of uncleared derivatives will have to post more collateral under the penultimate phase of post-crisis regulations that took effect this week. (Bloomberg Markets | Sep 2)

There's a seismic shift underway in money markets, the equivalent of going from famine to feast. For years, the premium paid for dollars over the euro, Japanese yen, and so on in the cross-currency markets has been negative, indicating rampant demand for greenbacks. Now, these so-called cross-currency basis swaps are on the verge of turning positive in a major shift for money markets. (Bloomberg Odd Lots | Sep 2)

The supply of the safest U.S. government bonds has been cut this month after federal spending limits were reinstated, driving prices higher and reigniting problems for the money market fund industry — which has already been bailed out by the Federal Reserve once this year. Treasury bills – U.S. bonds which mature in a year or less – were already scant this year after the U.S. lengthened the average duration of its new debt issues. Supply then took another hit after Congress failed to pass legislation in July that would have allowed the Treasury department to issue new debt — known as raising the debt ceiling. (Financial Times | Sep 1)

Banning payment for order flow is “on the table” at the U.S. Securities and Exchange Commission, but pulling it off won’t be fast or easy for Chair Gary Gensler. The SEC chief rattled Wall Street this week when he hinted in an interview with Barron’s that he may be willing to prohibit brokers from getting paid to send customers’ stock orders to trading firms. The practice is deeply ingrained and has been embraced by everyone from Robinhood Markets Inc. to Charles Schwab Corp. It’s also triggered an era of free trades. (Bloomberg Law | Aug 31)

The glut of cash in U.S. interest-rate markets pushed the amount of money that investors are parking at a major central bank facility to yet another all-time high. While usage was expected to recede on Wednesday since it was the beginning of a new month, demand will eventually move higher as the deluge shows few signs of slowing. (BNN Bloomberg - Canada | Aug 31)
the cyber cafe
Photo: Kristina Blokhin via Adobe Stock
CISA and FBI: Be 'vigilant' about possible ransomware attacks over Labor Day weekend
The Cybersecurity and Infrastructure Security Agency and the FBI on Tuesday issued a security advisory for U.S. government and private sector organizations about the risk of ransomware and other attacks over the upcoming Labor Day weekend. The agencies said the alert is based on the pattern of previous holiday-weekend ransomware campaigns and is not in response to any specific intelligence on an upcoming threat.

A bad solar storm could cause an 'internet apocalypse'
Scientists have known for decades that an extreme solar storm, or coronal mass ejection, could damage electrical grids and potentially cause prolonged blackouts. The impact such a solar emission could have on internet infrastructure specifically. New research shows that the failures could be catastrophic, particularly for the undersea cables that underpin the global internet.
— Wired

Regulators tighten scrutiny of data breach disclosures by companies
Companies must pay closer attention to what they say after hackers strike, lawyers warn, as regulators crack down on inaccurate disclosures and Congress debates mandatory reporting of cybersecurity breaches. Several regulatory actions in recent weeks have focused on breach notifications, media statements and investor communications, issued by companies after incidents that watchdogs say were deceptive.
binge reading disorder
Photo: Ramesh Ravi/Pexels
Perfectionists, these are the costs of always wanting to do things better
We live in a world of rampant perfectionism. While many of us take pride in our “high standards” and “drive for excellence,” we ignore the many negative side effects perfectionism can have on our health, happiness, and productivity. So how did we get this way? And how can we fix it?

The bankers are back
The Pret Index: Latte sales show most bankers are back in the office. Pret A Manger Ltd. sold the most coffee and sandwiches in the financial districts of the City of London and Canary Wharf last week since the pandemic began, indicating that thousands of bankers, asset managers, and corporate lawyers are repopulating empty offices after months of working from home.

The rich already have a perfect way to avoid Biden’s proposed taxes.
Wealthy Americans are scrambling for places to hide from plans by Democrats to hike their taxes. Many on Wall Street think they’ve found just the thing. A niche strategy called private placement life insurance, or PPLI, was already gaining popularity among the very rich for its ability to shield fortunes from taxes. Now some advisers to the top 0.1% say it’s dominating conversations with their clients.
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