Calls grow for dealers to unbundle US Treasury clearing

Securities and Exchange Commission chairman Gary Gensler has added his voice to growing calls to unbundle client clearing and execution services for US Treasury securities.

New rules adopted by the SEC last December will require most US Treasury cash trades to be centrally cleared from the end of next year, with repos following suit in June 2026. 

Currently, most buy-side firms rely on dealers to submit trades to the Fixed Income Clearing Corporation, which has a monopoly on US Treasury clearing

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S&P 500 and Nasdaq Composite close at record highs

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Who Rules the Waves? U.S. and Chinese Fleets, by Tonnage

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June 5, 2024

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Who Rules the Waves? U.S. and Chinese Fleets, by Tonnage

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

China’s third aircraft carrier recently began its sea trials, and there are reports that the People’s Liberation Army (PLA) Navy already has more ships than the United States, just how do these superpower rivals stack up, ton for ton?

This graphic from Chris Dickert looks at the Chinese and U.S. navies by tonnage using data from the International Institute for Security Studies.

Key Takeaways The U.S. Navy has over 3.6 million (U.S.) tons of ships in its fleet, more than seven times the size China’s combined fleets of less than half a million tons. While China boasts the largest number of ships, 875 between both the PLA Navy and the Chinese Coast Guard, against the U.S. Navy’s 364, they are generally smaller and less advanced than their U.S. counterparts. The Chinese Coast Guard has received many of the PLA Navy’s older ships, however the vast majority of their ships are patrol and coastal combatants that average 156 tons apiece and aren’t able to sail far from China’s coast. Even as the U.S. Navy edges out the PLA Navy across the board, China does hold a 2:1 edge in tonnage of landing ships and craft, reflecting the Asian superpower’s stated policy goal of reunifying Taiwan with the mainland. BranchShip TypeNumberTonnage (U.S. short ton) PLA NavyLanding Crafts781,789 PLA NavyLanding Ships5228,410 PLA NavyPrincipal Amphibious Ships1165,000 PLA NavyAircraft Carriers2137,500 PLA NavyCruisers813,000 PLA NavyDestroyer4270,480 PLA NavyFrigates4913,810 PLA NavyStrategic1230,000 PLA NavyTactical4727,219 U.S. NavyAmphibious396,050 U.S. NavyLanding Craft14111,692 U.S. NavyPrincipal Amphibious Ships31843,580 U.S. NavyAircraft Carriers111,100,000 U.S. NavyCruisers15159,390 U.S. NavyDestroyer73619,964 U.S. NavyFrigates2477,600 U.S. NavyStrategic14262,500 U.S. NavyTactical52431,124 China Coast GuardLanding Ships24,800 China Coast GuardLogistics and Support2711,085 China Coast GuardPatrol and Coastal Combatants54585,425 1,2394,090,418

Ocado Has Been Demoted From The FTSE 100. Should I Buy its Shares?

Online supermarket Ocado (OCDO) has suffered a humiliating demotion from the UK’s blue-chip index, but Morningstar analysts point out the company is significantly undervalued, and that its core business thesis is still sound despite high levels of uncertainty.

Once a darling of the UK stock market, Ocado shares have witnessed a protracted fall from grace since February 2021, when the pandemic was causing huge – and initially beneficial – disruption to shopping in the UK. Its booting from the UK’s largest index begs now questions for the fund managers who celebrated its rise, but also directly impacts passive funds tracking the FTSE 100. The latter will now have to automatically sell the online grocer.

Key Morningstar Metrics for Ocado 

• Fair Value Estimate: £9.20;
• Morningstar Rating: ★★★★★;
• Morningstar Economic Moat Rating: N/A;
• Morningstar Uncertainty Rating: Very High.

Why Has Ocado Been Demoted From The FTSE 100?

At a market capitalization just under £3 billion, it’s no longer valuable enough to make the cut. Ocado shares currently trade at £3.53, compared to a £28 peak at the height of the pandemic. So far in 2024, they have fallen a whopping 52.18%. The numbers also look negative over longer time periods. Over three and five years to 5 June 2024, shares have dived 81.2% and 68.2%, respectively.

“This underperformance is due to intense competition in the UK grocery market and a cost-of-living crisis, which traditional brick-and-mortar supermarkets were able to manage more effectively,” Morningstar director of equity research Ioannis Pontikis says.

The resulting falls in Ocado’s share price mean that its market capitalisation (the value of its shares multiplied by the number of shares on issue for sale and purchase) robs it of its status as one of the UK’s 100 biggest companies.

Ocado has been slow to make good on proposed business deals. The biggest of its tie-ups – with premium clothes retailer and food distributor Marks & Spencer (MKS) – appears to be benefiting the latter more than the former. Over the last 12 months, shares in M&S are up over 65% to £31.00.

The pair is also yet to agree on the final payment M&S owes for its 50% stake in Ocado Retail, which it bought in 2019. M&S has argued it should not pay the remaining £190 million it originally owed Ocado because the business has not hit certain performance targets. Ocado chief executive Tim Steiner is now threatening legal action.

Twin headwinds of a cost of living crisis and

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Charted: Countries Offering Digital Nomad Visas

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June 5, 2024 Graphics/Design:

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Charted: Countries Offering Digital Nomad Visas

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

A digital nomad visa allows individuals to live and work remotely in a foreign country for an extended period, usually six months to a year. It’s often accessible to self-employed or remote workers employed by entities outside the host country.

This graphic shows the countries that offer digital nomad visas as of May 2024. The data comes from various visa programs around the world and was compiled by CNBC.

Dozens of Options to Work Abroad

Over 40 countries offer digital nomad visas.

Mexico and El Salvador offer the longest visas, with a duration of four years. In El Salvador, however, the worker has to apply for an extension to obtain the maximum length of stay.

CountryRegionMax Length of Stay (months) 🇸🇻 El SalvadorAmericas48 🇲🇽 MexicoAmericas48 🇨🇾 CyprusEurope36 🇬🇷 GreeceEurope36 🇦🇬 Antigua and BarbudaAmericas24 🇨🇷 Costa RicaAmericas24 🇨🇴 ColombiaAmericas24 🇪🇨 EcuadorAmericas24 🇭🇺 HungaryEurope24 🇱🇻 LatviaEurope24 🇳🇴 NorwayEurope24 🇷🇴 RomaniaEurope24 🇩🇲 DominicaAmericas18 🇵🇦 PanamaAmericas18 🇭🇷 CroatiaEurope18 🇦🇮 AnguillaAmericas12 🇧🇸 The BahamasAmericas12 🇧🇧 BarbadosAmericas12 🇧🇲 BermudaAmericas12 🇧🇷 BrazilAmericas12 🇨🇼 CuraçaoAmericas12 🇬🇩 GrenadaAmericas12 🇲🇸 MontserratAmericas12 🇱🇨 Saint LuciaAmericas12 🇺🇾 UruguayAmericas12 🇦🇱 AlbaniaEurope12 🇨🇿 Czech RepublicEurope12 🇪🇪 EstoniaEurope12 🇬🇪 GeorgiaEurope12 🇮🇹 ItalyEurope12 🇲🇹 MaltaEurope12 🇵🇹 PortugalEurope12 🇪🇸 SpainEurope12 🇲🇾 MalaysiaMiddle East and Asia12 🇰🇷 South KoreaMiddle East and Asia12 🇹🇷 TürkiyeMiddle East and Asia12 🇦🇪 United Arab EmiratesAfrica12 🇨🇻 Cape VerdeAfrica12 🇧🇿 BelizeAmericas6 🇨🇦 CanadaAmericas6 🇮🇸 IcelandEurope6 🇲🇺 MauritiusAfrica6 🇸🇨 SeychellesAfrica6 🇳🇦 NamibiaAfrica6

Iceland, with a minimum income requirement of $85,000 per individual per year, and Belize, with

St James’s Place uses AI to spot and help ‘vulnerable’ customers

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Investors pull cash from ESG funds as performance lags

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