Here are the top 10 highlights for this week.
1. Have Tencent Shares Bottomed Out After Losing $150B This Year?
2. Lyft Is Trying To Beat Uber To The IPO Punch
3. TED Talk: How I Learned To Read AND Trade Stocks In Prison
Financial literacy is empowering. More than being touted as skill, it’s a lifestyle. Take it from Curtis “Wall Street” Carroll. As an incarcerated individual, Caroll knows the power of a dollar. While in prison, he taught himself how to read and trade stocks, and now he shares a simple, powerful message: we all need to be more savvy with our money.
4. How To Hustle Your Way To $150M Like 50 Cent
From New York’s boroughs, rap mogul 50 Cent has hustled his way through building a media empire and creating a fortune through his aggressive business mentality. Here’s how he did it.
5. Cannabis Scorecard: Top 5 Stocks Gained Over 15% This Month
With cannabis stocks beating the stock market by a whopping 221% this year, the industry is riding a high. Here, we look at the top 5 marijuana stocks and their performance this month.
6. Uber, Lyft And Top VCs Are Pouring Billions Into ‘Micromobility’—Here’s Why
Nowadays, to Uber somewhere has pretty much become a verb in the English language. But less than 10 years ago, no one even knew what Uber was. And Uber is rumored to be worth $120B on the public markets, should they IPO in the near future.
This might be the reason investors are flocking to bike – and scooter-sharing startups in the so-called “micromobility space.”
7. This $15B E-Cigarette Startup Is The Fastest Growing In History
The global startup space continues to attract investments. Venture Capitalists are pouring in big money into companies that have a huge total available market (or TAM). The latest to join the growing list is e-cigarette startup Juul.
8. NBA Star Chris Paul: ‘Here’s How I Deal With Change’
Over recent years, NBA’s star basketball player Chris Paul had to cope with a lot of changes that were thrown his way. Despite winning multiple accolades, and ranking third across NBA’s history, Paul tells he dealt with a lot of anxiety and learnt to deal with the changes.
9. How To Launch Your Business In Less Than 30 Days
Got a great business idea that you think might be the next big thing? Despite the uncertainty and the risks tagged to becoming an entrepreneur, you wouldn’t know until you try. Besides, it takes less than a month to launch a product or service. Here’s how you make that happen.
10. Battle Of The Stocks: Canopy Growth Vs Aurora Cannabis
The Most Hyped Startup Is Now Worth $45B
Co-working rental startup WeWork has secured an additional $3B in funding from SoftBank, at a valuation worth nearly $45B. In a surprising move, SoftBank’s latest investment will more than double the startup’s valuation from the $20B figure it clinched during its last financing round.
The valuation will also drive a global co-working behemoth, bigger than Airbnb, PWC, SpaceX, or Ford Motor, making it the second most-valuable startup in the United States after Uber.
The capital injection comes at a time when WeWork’s losses are on a steady climb, recently ballooning to $2B on an annual basis. The investment from SoftBank, the startup’s largest investor, will also increase its cash pile and commitments to almost $6.4B.
Critics, however, claim that the valuation is highly inflated compared to other real estate players in the market, and remarked the startup might face an issue if their earnings fail to justify the excessive valuation.
Despite the possibility of headwinds in the short-term, WeWork’s vice-chairman Michael Gross was positive on the company’s long-term growth.
“Our view is that there is tremendous wind at our back — we are the only serious global player out there,” he said. “Our growth is actually accelerating as our product offering continues to go deeper and reach not just small-sized companies but Fortune 500 companies and everything in between.”
The Rise Of Algorithmic Trading: How Manned Trading Desks Are Seeing Their Demise
One of the last human points of resistance to the algorithmic take-over of professional trading can be found in the fixed-income trading desk.
The deft relationship business is known for having participants with Ivy League pedigrees and a lacrosse playing background, a data point that a machine learning algorithm recently used when making hiring recommendations.
With an algorithmic transition, profit margins are being squeezed as human relationships are becoming less important. Benchmarking the transition are new hiring mandates at some of the largest banks, a recent Greenwich Associates report pointed out.
Relationships and fundamental market understanding are less important, the report noted, and algorithmic experience and data science skills are now in demand.
In this emerging environment, what are best practices for an integration framework?
When combining fundamental investment thinking with quantitative thinking unique conflicts often arise. Fundamental, discretionary fund managers often creatively connect non-correlated dots and sometimes challenge consensus thinking.
Quantitative logic, on the other hand, is often driven by if-then Boolean logic at its core and looks for mathematical consensus to guide decisions. Mixing these two disciplines can be like expecting oil and water to enjoy each other’s company.
“Relationships and balance sheet still matter, of course,” Greenwich Associates Managing Director Kevin McPartland wrote in a report title that highlights a dichotomy, “Trust and Data Drive Fixed-Income Dealer Growth.”
Trust is a human concept and data is often associated with empirical, mathematically discovered understanding is the point where a melding of the minds might occur.
The integration of the two highlights the new path forward. “But the ability to manage both in a more quantitatively driven way can mean the difference between profit growth and a year-on-year decline,” McPartland observed.
Technology is increasingly becoming an important feature on bond trading desks, particularly for sell-side banks. Fully 91% of bulge bracket banks said automating parts of the trading process was one of their “top technology priorities for 2018,” the Greenwich Associates report pointed out.
Only 44% of middle market participants, meanwhile, felt the same. This group was having slightly more difficulty “complying with new/changing regulations” and was more focused on improving client management tools and data.
Knowing what technology to integrate so as to deliver a near-term positive return on investment while positioning the firm for a longer-term shift in intelligent automation can prove challenging and, itself, might have variables that don’t easily fit into a math formula.
“Assessing the process of tech integration is always a challenge because no technology is perfect, but it is often much better than human performance,” said Evan Schnidman, CEO and Co-Founder, Prattle, a firm that uses machine learning techniques to analyze human speech patterns to provide a market edge.
“Electronic equities trading has proven to be highly reliable, but very rare missteps can have catastrophic cascading effects. With bond trading, and any other technology-driven process in financial services, it is vital to build appropriate circuit breakers and human checkpoints. Simply, technology is a valuable tool, but humans still need to be in the loop.”
When integrating technology into a bond trading workflow it is important to set proper expectations that can be measured on a project plan timeline.
Often times expecting the unexpected is a discretionary skill that requires understanding technology’s limits.
“The best practice in tech integration is to remember that technology will not solve all of your problems, but it may be able to streamline the human workflow and optimize decision making,” Schnidman said. “If institutions keep that in mind, they are likely to adopt technology more readily, thereby making each additional innovation less jarring from a tech integration standpoint.”
With technological change coming at an increasingly rapid pace, the imperative is in understand what aspects of human trading can be modeled and what should remain discretionary.
“Instead of fully relying on quantitative approach at the beginning, it is a good starting point to integrate the output of quants and AI models in the human decision making process of position taking and dealing,” said Tsuyoshi Yokokawa, founder and CEO of San Francisco based Alpaca Markets, a firm that in parts helps integrate quantitative trading models into fundamental trading methodologies.
As the last refuge of human-based trading turns algorithmic, the processes and methodologies that drive these projects are likely to determine success or failure to a large degree.
In bond trading, the sell side is taking a different approach to that of the middle market.
Alibaba’s Singles Day Records $31B Sales, Trumps Amazon’s Biggest Day
Chinese tech and e-commerce behemoth, Alibaba, saw its one-day shopping event draw sales worth over $31B, setting a new record for the company. Labelled as its Singles Day event, the day records sales that’s bigger than Black Friday and Cyber Monday combined.
The record sales in under 24 hours dwarfs the $4B in sales Alibaba’s rival Amazon garnered during its Prime Day sale earlier this year.
Here’s why Alibaba’s CEO believes the sale is a huge winner for the company.