FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is at the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018.  REUTERS/Rebecca Cook/File Photo

Fiat Chrysler to invest $250 mln in India unit to launch new SUVs

NEW DELHI, Jan 5 (Reuters) – Fiat Chrysler Automobiles NV (FCA) said on Tuesday it will invest $250 million to grow its presence in India with the launch of four new sport-utility vehicles (SUVs) under its Jeep brand over the next two years.

The investment will be made to locally manufacture a mid-size, three-row SUV, assemble the Jeep Wrangler and Jeep Cherokee vehicles in the country and launch a new version of its Jeep Compass SUV, FCA said in a statement.

FCA currently has less than a 1% share of India’s passenger vehicle market. Adding new vehicles to its portfolio is expected to help the automaker increase local sourcing of components, achieve better economies of scale, reduce costs and boost sales.

“Our new investment of $250 million will give us a competitive edge in multiple segments,” Partha Datta, managing director for FCA India said in the statement, adding that it is determined to increase locally-made components in its vehicles.

The investment comes at a time when automakers globally have been battered by the pandemic, and automakers in India have been further stung with the domestic market slowing down even ahead of this in 2019.

Japan’s Honda Motor Co has been forced to shutter one of its two plants in the country, and General Motors last month stopped producing cars in India for export after ceasing domestic sales in 2017.

India has also seen the entry of new automakers over the last couple of years including South Korea’s Kia Motors and China’s SAIC Motor Corp.

FCA will produce and assemble the new SUVs at its car plant in western India, which it jointly owns with domestic automaker Tata Motors.

FCA’s three-row SUV is expected to compete with Ford Motor’s Endeavour and Toyota Motor’s Fortuner SUVs.

The latest round takes FCA’s total investment in India to over $700 million, including $150 million in a new global tech centre.

Source: https://www.reuters.com/article/fiat-chrysler-india-investment/fiat-chrysler-to-invest-250-mln-in-india-unit-to-launch-new-suvs-idUSL4N2JF313

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Tesla, MGM and Entain, Bitcoin – 5 Things You Must Know Monday

Wall Street begins the new trading year at record highs on optimism over coronavirus vaccines; Tesla just misses 2020 deliveries goal; U.K. gaming company Entain rejects a bid of $11.1 billion from MGM Resorts; bitcoin crosses $34,000.

Here are five things you must know for Monday, Jan. 4:

1. — Stock Futures Rise as Wall Street Begins New Trading Year

Stock futures pointed to a higher open Monday as Wall Street begins the new trading year at record highs on optimism over coronavirus vaccines.

Contracts linked to the Dow Jones Industrial Average jumped 152 points, S&P 500 futures were up 17 points and Nasdaq futures rose 53 points.

Stocks closed higher Thursday, the last trading session of 2020, with the Dow and S&P 500 setting new records as a volatile year, brutally disrupted by the coronavirus pandemic, ended.

The Dow ended New Year’s Eve at 30,606, a record closing high, and the S&P 500 finished at 3,756.

The blue-chip Dow rose 7.3% in 2020, the S&P 500 gained 16.3% – at its pandemic low in March the index had been down more than 30% – and the tech-heavy Nasdaq jumped 43.6%, its best annual performance since 2009.

Traders are “perhaps a bit over-eager” but believe vaccines will “provide the ultimate economic kick-start, offering a massive booster shot to corporate profits,” said Stephen Innes of Axi. U.S. deaths from the coronavirus rose to more than 351,500.

Oil prices rose early Monday as OPEC and its allies were scheduled to meet to consider whether to increase production. West Texas Intermediate crude oil, the U.S. benchmark, was up 1.32% to $49.16 a barrel.

2. — Tesla Comes Oh So Close to 2020 Delivery Goal

Tesla  (TSLA) – Get Report was rising more than 2% in premarket trading Monday after the electric vehicle company announced over the weekend that it met its 2020 goal of producing at least half a million cars but narrowly missed its aggressive delivery target following a record year fueled by China demand for its Model 3 sedan.

Tesla delivered 180,570 of its Model S/X and Model 3/Y sedans over the three months ended in December, a 61.2% increase from the same period last year, bringing its year-end total to 499,550 and coming in just below the company’s goal of 500,000. Tesla’s year-end production total was 509,737 vehicles after a 71.4% increase in the fourth quarter to a record 179,757.

Tesla said it delivered 442,511 Model 3/Ys in 2020, alongside 57,039 for its Model S/X sedan. Production figures for each were 454,932 and 54,805 units, respectively.

“In a nutshell, Tesla had a high bar to hit for 4Q and impressively exceeded the Street coming within its 500k delivery target for the year, an eye-popping performance to finish the year,” said Wedbush analyst Dan Ives. “The EV industry has massive tailwinds into 2021 which will benefit vendors across the board, with Tesla in prime position to further catapult itself in the EV landscape with China front and center.”

Tesla shares gained 2.14% to $720.77 in premarket trading.

Tesla Roars to All-Time High After Record 2020 Delivery Total

3. — Entain Rejects $11 Billion Bid From MGM Resorts

U.K. gaming company Entain rejected a bid of 8.1 billon pounds ($11.1 billion) from MGM Resorts International  (MGM) – Get Report, saying the offer undervalues the company. 

MGM’s bid of 1,383 pence a share was a 22% premium to closing price of Entain’s stock on Thursday. Shares of Entain, the owner of brands including Ladbrokes, jumped more than 28% in London. MGM shares were up slightly in premarket trading Monday.

Entain has told its shareholders to take no action with respect to MGM’s offer and has asked the Las Vegas Strip’s largest casino operator for “additional information in respect of the strategic rationale for a combination of the two companies.”

Entain, which trades on the London Stock Exchange, bills itself as one of the globe’s biggest retail online sports betting and gambling groups. It offers sports betting and casino, poker and bingo online games, and operates brands such as Ladbrokes, Coral, BetMGM, bwin, Sportingbet, Eurobet, partypoker, partycasino, Gala and Foxy Bingo. 

4. — Bitcoin Tops $34,000

Bitcoin topped $34,000 on Sunday, after hitting $30,000 for the first time in its history the day before.

Bitcoin crossed $20,000 for the first time on Dec. 16.

“Bitcoin’s rise isn’t surprising in the least – it’s been a buildup of credibility and sustainability, with strong network effects,” said Dave Balter, the CEO of Flipside Crypto, in an email to TheStreet.

The world of institutional finance “has finally taken notice” of crypto, added Balter, whose firm posts regular columns on TheStreet. 

“No one wants to be last to the dance,” he added.

The world’s largest cryptocurrency was turning lower Monday, falling as much as 17%. At last check, bitcoin traded at $30,173, according to a composite of prices compiled by Bloomberg.

When asked if the surge in bitcoin could lead to the increase in value of other crypto projects such as ethereum and litecoin – which were both up on Sunday – Balter said it was likely that this rising tide could lift all boats.

“Bitcoin does tend to create a ‘wake’ for other crypto assets to follow, so my strong belief is you’ll see rise in prices from a number of quality projects,” Balter said.

5. — This Week’s Economic Calendar

The U.S. economic calendar Monday includes Markit manufacturing PMI for December at 9:45 a.m. ET and Construction Spending for November at 10 a.m.

Economic reports later this week include the ISM Manufacturing Index, the ADP National Employment Report, weekly Jobless Claims and the official U.S. Nonfarm Payrolls report for December.

Earnings will be released this week from Micron Technology  (MU) – Get Report, Bed Bath & Beyond  (BBBY) – Get Report, Constellation Brands  (STZ) – Get Report and Walgreens Boots Alliance  (WBA) – Get Report.

Source: https://www.thestreet.com/markets/5-things-you-must-know-before-the-market-opens-monday-010421

These 2020 winning stocks can keep climbing in 2021, two traders say

Some of last year’s best market performers could continue their climbs in 2021, according to two traders.

The major averages ended 2020 in the green after falling precipitously as Covid’s economic damage set in. Several S&P 500 stocks were particular standouts:

  • Tesla, its top-performing name, advanced by more than 743%
  • Etsy soared nearly 302%
  • Nvidia climbed almost 122%
  • PayPal gained 116.5%
  • L Brands rose by over 105%

“A lot of these stocks are a little on the overbought side, but one of them is not,” said Matt Maley, chief market strategist at Miller Tabak. “That’s Nvidia.”

Nvidia’s relative strength chart showed the stock getting “very overbought” in late August, Maley said on CNBC’s “Trading Nation.” When a stock’s relative strength index rises above 70, it is often interpreted as a signal of a possible pullback.

“Instead of really pulling back, it’s seen a nice sideways correction and that’s taken its RSI chart down to neutral territory down in the mid-50s. So, that’s great,” Maley said Thursday. “Whether the market sees a little bit of a pullback next year or if it even rallies straight from here, this one, I think, is going to have the most upside as we move through 2021.”

In the same CNBC interview, New Street Advisors Group founder and CEO Delano Saporu had his eye on PayPal and Etsy.

He expects the expansion of “digital payment solutions” to continue to fuel PayPal’s climb, and for Etsy, he likes its unique offering.

“I think they’re not trying to be Amazon. They’re looking for customization,” he said. “They’re looking for people that want something more specific, and they found a niche in that role, and I think Etsy still continues to move higher on momentum.”

Source: https://www.cnbc.com/2021/01/04/these-2020-winning-stocks-can-keep-climbing-in-2021-two-traders-say.html

How does the stock market perform after a 1% drop — or worse — to start a year?

The stock market kicked off 2021 on the backfoot after briefly flirting with record highs at the start of Monday’s action, amid rising COVID-19 infections and variants of the virus raising worries among investors about the prospects for the global economic recovery.

The Dow Jones Industrial Average DJIA, -1.25%, closed down 383 points, or 1.3%, for its worst start since 2016; while the S&P 500 index SPX, -1.48% and the Nasdaq Composite Index COMP, -1.47% were down about 1.5% to start the new year.

Check outDow, S&P 500 slide after briefly hitting record high in 2021

However, the sharp selling in the stock market shouldn’t to be taken as an omen of what’s ahead for Wall Street after a stellar rebound in 2020, if history is any guide.

The Dow, for example, has registered 18 occasions in which the blue-chip benchmark has declined by at least 1% on the first trading day of the year, and that has resulted only in seven overall declines in January, or almost 40% of that limited sample size. The index also finished down about 40% of the time for the calendar year, Dow Jones Market Data shows.

DOW JONES MARKET DATA

For the S&P 500, meanwhile, of the 12 times that it has fallen by at least 1% to start January, it has declined 42% of the time, or five times, for the rest of the month and the calendar year.

DOW JONES MARKET DATA

Meanwhile, the Nasdaq Composite has declined 57% of the time, or four of the seven times that it has opened a calendar year with a drop of 1% or more.

The slide for U.S. equities comes as hospitalizations in the U.S. jumped to a record Sunday. Meanwhile, governments across Europe are extending lockdowns, including the U.K., where Prime Minister Boris Johnson said that he will impose a national lockdown until February to try to slow the spread of the viral outbreak.

Meanwhile, investors are anxious about Tuesday’s Georgia runoff races, which will determine whether Republicans are able to hold on to control in the Senate. In recent days, betting markets have shown the Republican lead shrinking, pointing to what will likely be a tight race.

A Democratic victory could boost equities by raising expectations for more aggressive fiscal stimulus measures this year, on top of the billions of dollars deployed already by Congress.

Strategists caution that it is important not to read too much into stock movement so early in a year, particularly one that hinges on the effective response to the worst pandemic in a century.

“The first day doesn’t necessarily set the tone for the rest of the year, though,” wrote Lindsey Bell, chief investment strategist at Ally Invest.

“The S&P 500’s best year in recent history — 1995 — started with a small decline on the first day. It’s a 50/50 chance that the market will be up or down following a first-day decline,” she wrote.

Source: https://www.marketwatch.com/story/how-does-the-stock-market-perform-after-a-1-drop-or-worse-to-start-a-year-11609794758?mod=newsviewer_click

Ripple, which uses cryptocurrency for cross-border payments, is now valued at $10 billion

  • Ripple says it’s raised a $200 million investment round that values the blockchain firm at $10 billion.
  • The company uses XRP to facilitate cross-border transactions for its network of financial institutions.

Blockchain start-up Ripple says it’s raised a $200 million investment round, lifting its valuation to a huge $10 billion.

The fundraising was led by New York investment company Tetragon, Ripple said Friday, while Japan’s SBI Holdings and Virginia-based venture capital firm Route 66 Ventures also invested.

Founded in 2012, Ripple rose to fame in late 2017 as the value of XRP, a cryptocurrency used by the firm, skyrocketed in value alongside a multitude of other virtual coins.

The company uses XRP to facilitate cross-border transactions for its network of financial institutions, while it also employs an interbank messaging system — think of it as a blockchain-based alternative to Swift — that’s used by banks to send money around the world.

“We are in a strong financial position to execute against our vision,” said Ripple CEO Brad Garlinghouse in a statement. “As others in the blockchain space have slowed their growth or even shut down, we have accelerated our momentum and industry leadership throughout 2019.”

While XRP rose in excess of $3 back in January 2018, the world’s third-largest digital currency has since pulled back significantly and currently sits at around 19 cents. The cryptocurrency was up over 3% Friday on the back of Ripple’s funding news.

Ripple sources a significant portion of its income from selling its holdings in XRP. According to industry outlet The Block, Ripple has sold $260 million worth of the cryptocurrency over the last year. The other big chunk of its revenue comes from deals with banks and financial institutions that use its blockchain technology for money transfers.

Ripple says it now has over 300 financial services customers globally. The firm has signed partnership deals with giants in the industry ranging from Santander to American Express.

Digital currencies hit the headlines this year after a brutal sell-off among such assets in 2018, with big companies like Facebook and J.P. Morgan making moves in the space. Facebook in particular has caught the attention of both investors and regulators, after it released proposals for its ambitious cryptocurrency project Libra.

Link:
https://www.cnbc.com/2019/12/20/ripple-creator-of-xrp-crypotocurrency-is-now-valued-at-10-billion.html

California Man Makes $2.8 Million Trading Stocks From Home—How?

Kyle Dennis was $80,000 in debt and working with his mom at a California real estate office when he decided to invest $15,000—nearly every penny he had to his name—in the stock market. With his entry-level job paying him only $35,000/year, this choice was a huge risk that he couldn’t afford to fail.

What happened next would be hard to believe—if it wasn’t true.

In 2012, Kyle graduated college with $80,000 in debt and no job offers in sight. He asked his mom to get him a job at the real estate office, and after several months of saving a few hundred dollars a month, he realized he was never going to climb out of debt at such a slow rate. As a Biology major from UCLA, he knew his passion for science would never land him the comfortable life he always dreamed of either.

But he had one last idea. One that seemed crazy, but had a chance of working.

At the office, Kyle worked next to a man who traded stocks on the side, so he was learning a lot about the market.Kyle had never been much of an investor. In fact, before this, he had never owned a stock in his life. He didn’t know anything about trading at all. But a few days before making his timely move, he had discovered a ​webinar by Jason Bond​ that revealed 3 simple stock trading strategies anybody could use.

The strategies were really simple,” Kyle told us in an interview. “They didn’t involve any math or anything… All it took was access to basic information that was free on the internet.”

After watching the webinar and discovering the secrets contained in it, Kyle decided to go for it. He invested all the money he had slowly saved in the markets.

In a single day, he saw his trading account grow. A few days later, as the trading became more natural to him, the gains became even bigger.

We had to verify this to be certain, but after seeing Kyle’s tax returns and trading account profits, we are shocked to report that he did, in fact, make $838,000 in profits the year he joined Jason’s service and mastered the lessons he was taught — more than enough to pay off his college debt in full.

In just 2 short years, Kyle turned his original $15,000 investment into a whopping $2.8 million, and won a Porsche from Jason Bond, who promised to buy a Porsche for his first three students who crossed the million-dollar profit mark (sorry, he’s all out of Porsches).

Jason Bond’s stock trading webinar is completely free to watch. Most people who watch the webinar are not financial professionals or even experienced traders. In an interview, Bond told us that many of the people who watch it are teachers, postal workers and retirees.

Our recommendation: ​Sign up for Jason Bond’s next training event​ today.

We have received word that it could be taken down at any time because the level of interest is much higher than what Bond initially anticipated, due to the fact that it’s free of charge right now.

Link:
https://ragingbull.com/california-man-makes-2-8-million-trading-stocks-home-gemini/?utm_source=Gemini&utm_medium=Finance&utm_term=Yahoo&utm_campaign=jbp-webinar-desktop-US-371346088&utm_content=34541190329&refsrc=10155

Latest Bitcoin price and analysis (BTC to USD)

Bitcoin (BTC) is currently trading at around $7,315 following a steep decline in price since Monday.

Over the past 24 hours, though, BTC increased by a whopping 6%.

As we enter 2020 Bitcoin seems to be still consolidating below its 20-day EMA. Even though we’re still on a clear bearish trend, price seems to have stabilised above $7,000.

Will Bitcoin maintain its positive price action and start its recovery towards $10,000 soon?

Let’s take a look at Bitcoin’s chart, courtesy of TradingView.

Since the massive bull market that took Bitcoin close to $14,000 earlier last year, BTC has been dropping in value following a downtrend that was only broken in late October 2019, when BTC surprisingly broke through a number of key resistance levels (around the 200-day, 50-day, and 20-day EMAs).

Bitcoin is still around 40% down from October’s high of $10,350.

If the $6,700 level was to be broken, the next stop for BTC, if the volume profile is to be believed, is just above $5,000.

Over the last quarter of the year, volume was also showing signs of weakness. During most of the period, volume stayed below $20 billion.

Until we see a clear reversal of key signals such as volume and volatility, I’m not expecting massive changes to BTC price-action.

If you’re looking to accumulate, this seems to be an amazing opportunity.

The current Bitcoin trend

Earlier this week, I underlined that within the next three to five weeks, we could see a major reversal after a period of serious accumulation by ‘hodlers’. I’m personally expecting a big move either up or down soon.

Volume has remained similar to last week’s and 30% above last month’s. This means we could be starting to enter the end of the short-term accumulation cycle and price action could either pump or dump.

For the time being, as mentioned above, there’s a chance it can go either way. As long as the price continues to record lower lows, that’s a bearish sign. I’m patiently waiting for a reversal signal.

Hence the upwards movement today could mean a shift in sentiment – even though it is too early to tell.

For the time being, it seems we already found the bottom during 2019 and could be making way for a mid-term move to the upside.

Will the trend reverse soon?

As veteran traders and investors usually say, smart money “buys when there’s blood on the streets”. I’ve been saying for the past month that I’m waiting for major drops to make new entries. Moments like these are highly welcomed and appreciated.

I strongly believe Bitcoin to be a long-term store of value, especially as traditional markets continue to show weaknesses.

How can the markets continue to push higher throughout the year after the ECB’s recent rate cuts, the continuous share buybacks from huge corporations, or the inverted bond yield shoving investors away towards riskier assets?

In addition, repo market activity – as in loans from central banks to commercial and investment banks – has spiked to new monthly records. That adds up to another signal of weakness for the general economy.

We shouldn’t forget the Bitcoin halving is coming in May 2020, which will put extra positive pressure on price, as the number of Bitcoin minted per block, halves.

The key aspect of the halving event is to understand if it is already priced-in by miners. I personally doubt it, since most people (and businesses) have a short-term mindset. In addition, miners’ behaviour shows there’s additional specialisation with better hardware being developed and released. Not only would that make the hash rate go up, it would also diminish profitability for the entire mining space. Hence, I see miners pushing for lower prices until the halving takes place. The harder it is to mine until the halving, the more miners will drop leaving more room for profits for the players who stay.

In conclusion, investors and traders should pay attention to the overall economic panorama, as it will most likely be a major catalyst for worldwide BTC adoption.

Safe trades!

Current live Bitcoin pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest Bitcoin price. Pricing is also available in a range of different currency equivalents:

US Dollar – BTCtoUSD

British Pound Sterling – BTCtoGBP

Japanese Yen – BTCtoJPY

Euro – BTCtoEUR

Australian Dollar – BTCtoAUD

Russian Rouble – BTCtoRUB

About Bitcoin

In August 2008, the domain name bitcoin.org was registered. On 31st October 2008, a paper was published called “Bitcoin: A Peer-to-Peer Electronic Cash System”. This was authored by Satoshi Nakamoto, the inventor of Bitcoin. To date, no one knows who this person, or people, are.

The paper outlined a method of using a P2P network for electronic transactions without “relying on trust”. On 3rd January 2009, the Bitcoin network came into existence. Nakamoto mined block number “0” (or the “genesis block”), which had a reward of 50 Bitcoins.

More Bitcoin news and information

If you want to find out more information about Bitcoin or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started.

As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.

The post Latest Bitcoin price and analysis (BTC to USD) appeared first on Coin Rivet.

Link:
https://finance.yahoo.com/news/latest-bitcoin-price-analysis-btc-130455108.html?guccounter=1

Say Goodbye to Banking as We Know It

China is poised to launch the first national digital currency. There will be no counting the disruption.  

So is China readying its own Bitcoin? Banish the thought.

It’s far bigger than that. Yes, just like any other cryptocurrency — or for that matter, cigarettes in prisoners-of-war camps — the upcoming digital yuan will be “tokenized” money. But the similarity ends there. The crypto yuan, which may be on offer as soon as 2020, will be fully backed by the central bank of the world’s second-largest economy, drawing its value from the Chinese state’s ability to impose taxes in perpetuity. Other national authorities are bound to embrace this powerful idea.     

Little is known about the digital yuan except that it’s been in the works for five years and Beijing is nearly ready to roll. The consensus is that the token will be a private blockchain, a peer-to-peer network for sharing information and validating transactions, with the People’s Bank of China in control of who gets to participate. To begin with, the currency will be supplied via the banking system and replace some part of physical cash. That won’t be hard, given the ubiquitous presence of Chinese QR code-based digital wallets such as Alipay and WeChat Pay.

It may start small, but the digital yuan can disrupt both traditional banking and the post-Bretton Woods system of floating exchange rates that the world has lived with since 1973. No wonder that for China, “blockchain and the yuan digital currency are a national strategic priority — almost at the level of the internet,” says Sanford C. Bernstein & Co. fintech analyst Gautam Chhugani.  

Ever since the advent of the 17th-century goldsmith-banker in London, the most crucial thing in banking has been the ledger, a repository of irrefutable records to establish trust in situations where it doesn’t exist. When Peter in Vancouver agrees to send money to Paul in Singapore, they’re forced to use a chain of interlinked intermediaries because there’s no ledger in the world with both of them on it. Blockchain’s distributed ledgers make trust irrelevant. Paul devises a secret code, and shares its encrypted version with Peter, who uses it to create a digital contract to pay Paul. A cumbersome and expensive network of correspondent banks becomes redundant, especially when it comes to the $124 trillion businesses move across borders annually. Imagine the productivity boost; picture the threat to lenders. 

China isn’t the only one experimenting. Fast, cheap cross-border payment settlement is one application of JPMorgan Chase & Co.’s Quorum, an Ethereum-based platform on which the Monetary Authority of Singapore is running Project Ubin, an exploration into central bank digital money. These are early days, but if blockchain technology shows promise in handling a large number of transactions simultaneously, then digital currencies could become substitutes not just for physical cash but also for bank reserves.

That’s when the game changes. Reserves at a central bank are maintained by deposit-taking lenders. A digital yuan — or Singapore dollar or Indian rupee — could bypass this system and allow any holder of the currency to have a deposit at the central bank, potentially making the state the monopoly supplier of money to retail customers. As Agustin Carstens, the general manager at the Bank for International Settlement, noted recently, “If the central bank becomes everybody’s deposit-taker, it may find itself becoming everybody’s lender too.”

But why would central banks want to demote their own banking systems? One answer, looking at Europe and Japan, is that negative interest rates are doing that anyway. Lenders are starved of profit because while the central bank charges them for keeping money on deposit, they can’t as easily pass on those negative interest rates to their own depositors. If the global economy gets mired in long-term stagnation, official digital currencies will at least be an efficient way of monetary easing without involving banks.

The other, more concrete, reason may be that technological progress is making the status quo untenable. It’s no coincidence that China hastened its national cryptocurrency after Facebook Inc. announced the Libra project, which was touted as an alternative dollar. Perhaps that was fanciful, and the Libra has hit a wall of regulatory concerns. But if they’re offered like Spotify gift cards at the local 7-Eleven, there will be demand for tokens that are acceptable across borders, stable in value against baskets of national currencies, and can be used in global trade and investing. Someone in Silicon Valley will eventually succeed, blowing away the fig leaf of monetary sovereignty in emerging markets in the process.

The changes won’t end with banking and monetary arrangements. Token transactions will be pseudonymous: If the central bank wants to see who’s spending where, it can. Anonymity disappears when cash does. While that will make life difficult for money launderers and terrorists, it could also become a tool to punish political activism. Meanwhile, currency as a foreign policy weapon loses some sting. Pariah states will covet a crypto they can access by circumventing banks that are terrified of flouting Western sanctions. As Harvard University economist Kenneth Rogoff notes, technology “is on the verge of disrupting America’s ability to leverage faith in its currency to pursue its broader national interests.”

A roller-coaster decade — not just for for banking and money but also for privacy and politics — may just be beginning. 

Link:
https://www.bloomberg.com/opinion/articles/2019-12-29/china-has-edge-over-silicon-valley-to-end-banking-as-we-know-it?cmpid=socialflow-facebook-business&utm_medium=social&utm_campaign=socialflow-organic&utm_source=facebook&utm_content=asia

Bitcoin’s Price is Up More Than $1K Since Bakkt Futures News

Put simply, BTC futures trading on Bakkt will not rely upon unregulated spot markets for settlement prices and the party will receive delivery of bitcoins from the Bakkt Digital Asset Warehouse at the end of the contract period.

Many observers, including cryptocurrency analyst and trader Scott Melker, are of the opinion that Bakkt’s physically-delivered futures product will open the floodgates for the institutional money and is a long-term bullish development for bitcoin.

Asian markets mixed after latest trade developments, China sets key rate lower

Hong Kong (CNN Business)Asian markets were mixed Tuesday as China took the next, critical step in a long-awaited money management reform, and as the United States gave the Chinese tech company Huawei a slight reprieve in Washington’s ongoing trade war with Beijing.

China’s Shanghai Composite Index (SHCOMP) edged up 0.2%, following a 2.1% gain the day before.

Hong Kong’s Hang Seng Index (HSI) slightly retreated in early trading, down 0.2%. The indexrallied 2.2% on Monday,its biggest daily gain in two months.

On Tuesday morning the People’s Bank of China set its new Loan Prime Rate at 4.25% — slightly lower than its existing benchmark one-year lending rate, which hasn’t changed in years. The LPR is a replacement that is meant to better reflect changes in market rates, and make it cheaper and easier for companies to borrow. Analysts have described the measure as effectively a rate cut.

The LPR will be set on the 20th of each month and serve as a new guidance rate for Chinese banks to price their loans to clients.

“While this should nudge banks to reduce lending rates slightly, the impact on economic activity will be marginal,” wrote analysts from Capital Economics in a research note Tuesday, adding that unlike a benchmark cut, “it will only feed through to borrowing costs on new loans, not outstanding ones.

“The upshot, they added, is that China’s central bank “still has work to do.

“Asian markets also had a chance to consider news from Washington on Monday that the US government would add more than 45 new businesses associated with Huawei to an export blacklist.

At the same time, the government said it was renewing a temporary license that allows companies in the United States to sell products to Huawei in some cases. The renewal lasts for 90 days and went into effect on Monday.

“While it is not unexpected, the extension for the easing of Huawei sanctions had added to the relief for markets at the start of the week,” wrote Jingyi Pan, a market strategist for IG Group, in a research note. She pointed out that US stocks in particular edged higher.

But Ken Cheung Kin Tai, chief foreign exchange strategist for Asia at Mizuho Bank in Hong Kong, said the extension on the reprieve signaled a “procrastination” of the US-China trade talks, rather than offering a resolution.

Japan’s Nikkei 225 (N225) rose 0.4%. South Korea’s Kospi (KOSPI) was up about 0.5%. Japan has approved shipments of a high-tech material to South Korea for the second time since imposing export restrictions last month, Reuters reported Tuesday.

Australia’s S&P/ASX 200 gained 0.8%, extending a 1% rise on Monday. The Australian central bank released on Tuesday the minutes of its policy meeting for August. It showed the policymakers believe it’s “reasonable” for interest rates to stay low for an extended period to support economic growth.

Link:
https://edition.cnn.com/2019/08/19/investing/asian-market-latest/index.html