Week InReview
Friday | Jan 24, 2020
Many Davoses at Davos

"And then there is the hidden Davos: the private, off-the-record events organized by the World Economic Forum. These secretive invite-only meetings are held under the Chatham House rule, a strict guideline that protects the anonymity of participants in order to facilitate frank discussion. These, along with the equally confidential bilateral meetings held between participants in corridors and hotel lobbies, is the Davos with the potential to usher in great social changes.

"In the hidden Davos opposing social forces, activists and elites, can put their egos and personas aside to speak freely and find common cause for joint action on the global crises that impact us all – from income inequality to climate change. It is here that the argument can be made that elites must stop suppressing protest and instead harness the creative energy of social movements to achieve great changes. The Forum is perhaps the only place on earth where these opportunities for fraternization are possible."

—  Bloomberg Opinion
in case you missed it...
The surge in ETFs and portfolio trading is shaking up U.S. fixed income. Bond trading was once the highly lucrative domain of investment banks — from the heyday of Salomon Brothers in the 1980s to Goldman Sachs’ high-octane business of the past two decades. But now a new generation of lightning-fast, computer-savvy trading firms is providing alternative places for fund managers to trade. (Financial Times | Jan 23)

The Financial Stability Oversight Council's updated guidelines for assessing financial stability risks take an activities-based approach, which is a departure from the 2012 guidelines. The new guidelines use entity designations only as a last resort. (The Columbia Law School Blue Sky Blog | Jan 23)

Investors are reviewing the market impact from previous viral outbreaks, including SARS, swine flu and Ebola, to predict the effect of the coronavirus outbreak. Markets have usually fallen, then rebounded quickly, in such episodes, although outbreaks have been known to inflict significant economic damage. (The Wall Street Journal | Jan 22)

Trade finance has historically been dominated by banks — but some powerhouses are dialing back. The interest from some of the world’s biggest money managers signals a potential revival for growth in global trade. (The Wall Street Journal | Jan 22)

U.S. regulators have halted a plan to test whether delayed disclosure of corporate bond trades would boost market liquidity after a powerful group of investors, including Vanguard Group Inc., Citadel, and AQR Capital Management, slammed the proposal. (Bloomberg Markets | Jan 22)
the cyber cafe
Cyber attack on a bank could affect chunk of system: NY Fed
A cyber attack on one of the biggest U.S. banks could affect the liquidity of almost 40% of the nation’s banking system, an analysis by the Federal Reserve Bank of New York found.

Cybersecurity 2050: hackers to tap smart cities and deep fakes
Growing connectivity widens scope for large-scale attacks while artificial intelligence will exploit users. AI is a key part of cyber security’s future development. However, such technology is a double-edged sword. Hackers use the same technology to find weak spots.

Report: Geopolitics plays growing role in cyberattacks
Cyberattacks launched by foreign governments rose 42% last year, with geopolitical conflicts playing a larger role, security vendor Radware reports. Public and private entities are suffering from declining security budgets and a shortage of qualified workers.
—  CIO Dive  
binge reading disorder
What to buy for the year of the rat?
68 ways to celebrate Chinese New Year of the Rat, whether you’re looking for a present or spending your hongbao haul.

Got stress? The link between stress and gray hair
For a long time, society has perpetuated the idea that stress causes people's hair to turn gray. However, until recently, the science behind why was unclear. Researchers at Harvard have discovered acute stress causes the sympathetic nervous system to release large amounts of norepinephrine. The neurotransmitter, in turn, causes damage to stem cells linked to production of hair pigment.

'Homeland' declassified: Battles, backlash, CIA meetings and a secret call with Edward Snowden
Claire Danes, Mandy Patinkin, Damian Lewis and the creators of the era-defining Showtime drama  – now entering its eighth and final season – reveal in The Hollywood Reporter’s oral history never-told tales of a show that smashed records, captivated presidents and predicted everything from terrorist attacks to Russian election hacks.
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