Cryptocurrency, Market Summary

2 min Market Summary: 20 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

  • There were no notable prints on Monday. Treasuries advanced amid the market sell-off, extending the recent decline in yields. The 2-yr yield lost three basis points to 2.77%, and the 10-yr yield lost two basis points to 3.06% , 19 basis points lower from its November high. Overseas, the Asia-Pacific Communications Summit concluded on Sunday without the release of a joint communique due to the ongoing trade disagreement between United States and China. Elsewhere, Chairman of Renault-Nissan-Mitsubishi Carlos Ghosn was arrested in Japan for alleged financial violations. The U.S. Dollar Index declined -0.3% to 96.21. USDJPY down -0.24%, $112.45.
  • Euro up 0.35%, $1.1454. Sterling’s risk-off in early London trading was fuelled by headlines indicating that the amount of no-confidence letters submitted were up to 40, but there was no confirmation on those beyond the 26 public backers. UK PM May warned Tories that a no-confidence vote on her will equal a no-deal Brexit. May said that removing her from her post would lead to a delay in Brexit, making talks more difficult. Sterling recovered to finish up 0.16%, $1.2856.
  • S&P 500 down -1.66%, 2,690.73. Nasdaq down -3.26%, 6,642.92. Nikkei up 0.65%, 21,821.16.
  • The S&P information technology sector (-3.8%) was the main problem on Monday. It has been prone to liquidation efforts that have aimed to reduce exposure to a crowded sector running into concerns about a cyclical slowdown, valuations, and increased regulatory scrutiny. The tech group underperforms the 11 S&P sectors in November with a monthly loss of -5.5%.
  • Apple (AAPL 185.86, -7.67, -4.0%) shares took a hit after a Wall Street Journal report indicated the company cut its production orders for all three new iPhones it launched in September. Regarding the iPhone XR, Apple reportedly slashed its production plan by up to a third of the approximately 70 million units it had asked some suppliers to produce between September and February. Apple stock has been under pressure since providing a disappointing outlook for the holiday quarter on November 1. Negative sentiment surrounding Apple trickled down to its suppliers and chip stocks in general. Suppliers Qorvo (QRVO 63.15, -3.17, -4.8%), Lumentum (LITE 39.44, -3.08, -5.0%), and Skyworks Solutions (SWKS 70.76, -2.19, -3.0%), all of which that cut their guidance this month over presumed weakened demand for iPhones, greatly underperformed.
  • Similarly, the Philadelphia Semiconductor Index posted a loss of 3.9%, in which NVIDIA (NVDA 144.70, -19.73) extended its post-earnings decline with a steep loss of -12.0%. Facebook (FB 131.55, -7.98, -5.7%), Netflix (NFLX 270.60, -15.61, -5.5%), Alphabet (GOOG 1020.00, -41.49, -3.9%), and Amazon (AMZN 1512.29, -81.12, -5.1%) also suffered notable losses, helping pull the communication services (-2.6%) and consumer discretionary (-2.7%) sectors lower. Facebook shares continued to struggle amid on-going negative publicity surrounding the social network. Zuckerberg was reportedly not happy with COO Sheryl Sandberg for the reaction to the Cambridge Analytical scandal, according to a WSJ report. Also in the report, Zuckerberg’s newly-adopted, aggressive leadership style has not fared well with key executives, some of whom have resigned. In other news, CNBC reported that China regulators approved Dow component Walt Disney’s (DIS 115.42, -0.77, -0.7%) acquisition of 21st Century Fox (FOXA 48.91, +0.75, +1.6%) on Monday. China’s unconditional approval joins conditional agreements already made from the U.S. and EU, though the deal still needs regulatory consent from several more countries.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Korea’s largest power provider KEPCO will use blockchain and other innovative energy solutions to develop its next-generation micro grid (MG). KEPCO’s new “Open MG” will use blockchain and other technologies to improve energy infrastructure, particularly for the local hydrogen economy. It will focus on decentralization, decarbonization and digitalization. KEPCO’s Open MG will draw on an “additional fuel cell” as a power source in order to increase energy self-reliance and efficiency, and without the emission of greenhouse gases. Using international standard technology, the MG is expected to be more interoperable, thereby preventing “system bottleneck” and fragmentation in the industry. Allegedly, KEPCO intends to develop the Open MG at full-scale and create the “first” mega-wattage (MW)-scale micro grid in Korea.
Bitcoin dropped below $5,000, more precisely, fell to $4,981 for the first time in over 13 months on Monday. That’s the lowest figure since Oct. 12, 2017, and as of press time, the price has recovered somewhat to $5,048 – still signifying a decline of more than 9 percent. Many cryptocurrencies are faring worse than BTC, including the likes of ether (ETH), litecoin (LTC) and EOS, all of which are posting 24-hour losses above 10 percent. ETH fell to $155 earlier today, the lowest level since July 16, 2017, as per CoinMarketCap. Meanwhile, XRP, the second-largest cryptocurrency as per market capitalization, is reporting a 6.5 percent drop. According to data from OnChainFX, some of the biggest losses of the day include Aragon, LBRY Credits and ZClassic, all of which have seen price declines in excess of 20 percent in the past day. The bearish weekly close has likely set the tone for a drop below $5,000. In the short-run, however, BTC may defend that psychological support level, courtesy of the oversold conditions on the daily chart.
Major NGO, the Russian Authors’ Society (RAO) will launch a blockchain-based financial platform for intellectual property-secured loans. The project is at its final stages of development and is set to be launched in the first quarter of 2019. The platform intends to bring together potential intellectual property rightsholders and investors that are ready to provide loan funds. RAO’s general director Alexander Sukhotin noted that the upcoming blockchain-enabled platform will not be limited by type of intellectual property, but will include patents, musical works, and visual art. At the current stage, the company is looking for experts that to evaluate various forms of ownership.
Cryptocurrency, Market Summary

2 min Market Summary: 19 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

  • Dollar was broadly weaker against the G7 on Friday. In U.S., Fed’s Clarida thinks the central-bank is getting closer to a neutral rate, which is a contrasting view from Powell in October who said the Fed is still a “long way from neutral.” The Fed-sensitive 2-yr yield subsequently dropped six basis points to 2.80%, and the benchmark 10-yr yield lost four basis points to 3.07%. The Dollar lost -0.5% to 96.46. USDJPY down -0.71%, $112.83.
  • E.U. Final CPI y/y inline at 2.2%. Euro up 0.81%, 1.1420. In Brexit developments, the European Commission has proposed 31 December 2022 as the ultimate end date for any extension to the post-Brexit transition period. May told Sky News’s Ridge on Sunday it had been a “tough week” but that she would not be distracted. She added that the next seven days “are going to be critical” for the UK’s future. Sterling up 0.49%, $1.2839. Canadian Manufacturing Sales m/m at 0.2% vs expected 0.1%. USDCAD down -0.24%, 1.3146.
  • S&P 500 up 0.22%, 2,736.27. Nasdaq down -0.15%, 7,247.87. Nikkei down -0.57%, 21,680.34. The S&P 500 chipped in a 0.22% gain on Friday after Trump again signaled China’s desire to make a deal on trade. He said that China sent a “large” list of things they’re willing to do, but the list is not yet in-line with the President’s standards. Nevertheless, the market, desperate for a positive solution on trade, reacted positively to the comments. Disappointing guidance from chipmakers, however, kept gains in check. Facebook (FB 139.53, -4.32) weighed on the communication services sector (-0.4%) with a loss of -3.0%. On-going negative publicity surrounding the company has helped pull the stock back to its lowest level since April 2017. Also, Amazon (AMZN 159.41, -26.03, -1.6%) and retail companies dragged on the lagging consumer discretionary sector (-0.5%).


BLOCKCHAIN & CRYPTOCURRENCY NEWS  

SEC Settles Securities Registration Charges Against 2 ICO Startups
Two cryptocurrency startups have agreed to register their initial coin offering (ICO) tokens as securities after settling charges with the U.S. Securities and Exchange Commission. The SEC’s Friday announcement centered on two firms: CarrierEQ Inc., also known as Airfox, and Paragon Coin Inc., both of which conducted token sales last year. Airfox raised $15 million through its sale, while Paragon raised $12 million, according to statements. The U.S. securities regulator contended that neither startup registered their ICOs as securities offerings, and neither qualified for registration exemptions. In addition to registering their tokens as securities, both companies will refund investors, file periodic reports to the SEC and pay $250,000 apiece in penalties. Friday’s announcement comes on the heels of the SEC revealing settled charges against Zachary Coburn, founder of the decentralized exchange EtherDelta, with running an unregistered securities exchange.

ECB Official Decries Bitcoin as ‘Evil Spawn’ of Financial Crisis, Ripple Consolidates Lawsuits
Benoit Coeure, an executive board member of the ECB, has issued a critical appraisal of bitcoin and cryptocurrency in general. He described them as “the evil spawn of the financial crisis” in a recent speech at the Bank for International Settlements in Basel. Coeure was also dismissive of the prospect of central bank-issued virtual currencies becoming a reality within the next 10 years. Ripple Labs has moved to consolidate three ongoing class-action lawsuits the company faces into a single federal suit. Various lawyers have described the move as “slick” and exhibiting “tactical brilliance.” The suits were filed by David Oconer, Vladi Zakinov and Avner Greenwald. The combined number of plaintiffs involved in all of the cases exceeds 100. Police in Tokyo have arrested eight men for their alleged involvement in a pyramid scheme that duped roughly 6,000 investors out of an estimated 7.8 billion yen ($68.4 million) worth of cryptocurrency. The individuals are suspected of violating Japan’s Financial Instruments and Exchange Act by failing to register their business operations with the relevant authorities.

International Charity Oxfam Formally Launches Blockchain Rice Tracker in Cambodia
International charity Oxfam officially launched its BlocRice blockchain supply chain solution for Cambodian rice. BlocRice, which aims to use smart contracts to provide transparency and security between rice growers and purchasers in the Netherlands, has been under development and should expand to 5,000 farms by 2022. The increased automation and visibility of individual farmers should in turn allow them to set higher prices and avoid economic disadvantages. BlocRice promotes the use of such digital contracts as tools for social and economic empowerment. The application of blockchain technology is expected to enhance the negotiation power of small-scale farmers in their rice value chains, who are usually poor primary producers.

Cryptocurrency, Earnings, Market Summary

2 min Market Summary: 16 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

  • U.S. Core Retail Sales m/m at 0.7% vs expected 0.5%. Retail Sales m/m at 0.8% vs expected 0.6%. Philly Fed Manufacturing Index at 12.9 vs expected 20.1. U.S. Treasuries gave up early gains, returning yields to their unchanged marks. The benchmark 10-yr yield finished flat at 3.12%. USDJPY down -0.04%, $113.57.
  • Press reports indicated that Italian League economic adviser Borghi is making waves about Italy possibly leaving the eurozone if the Italian League wins a majority in the next election. Euro up 0.12%, $1.1324.
  • Brexit secretary Dominic Raab, and several other ministers, resigned a day after UK Prime Minister Theresa May received cabinet approval for her draft withdrawal statement. The resignations put pressure on May’s leadership position and the fate of the Brexit plan in the British Parliament. U.K. Retail Sales m/m at -0.5% vs expected 0.2%.Sterling dropped -1.77%, $1.2766.
  • WTI crude rose for the second straight session, adding 0.5% to $56.44/bbl, though is still well-off its October 3 high of $76.90/bbl. Also, the EIA’s weekly crude oil inventory report showed that U.S. crude stockpiles rose by a higher-than-expected 10.3 million barrels last week. USDCAD down -0.50%, $1.3173.
  • Aussie Employment Change at 32.8K vs expected 19.9K. Unemployment Rate at 5.0% vs expected 5.1%. Aussie up 0.47%, $0.7271.
  • S&P 500 up 1.06%, 2,730.20. Nasdaq up 1.78%, 6,890.45. Nikkei down -0.20%, 21,803.62.
  • U.S.-China trade optimism and strength from tech stocks, particularly Apple (AAPL 191.41, +4.61, +2.5%), contributed to the broader market overcoming its morning struggles. More news surrounding U.S-China trade developments helped fuel an afternoon rally. A Financial Times report suggested that China and the U.S. are trying to reach a trade truce ahead of the G-20 meeting at the end of the month. This should not be seen as anything particularly new, though, since similar reports were out earlier in the week. Commerce Secretary Wilbur Ross chimed in, and believes the G-20 meeting will be a ‘big picture’ meeting and he does not expect a deal by the end of the year. Nevertheless, the positive response caught some participants off guard and probably prompted some short-covering action. The trade-sensitive industrials sector finished with gain of 1.3%. Apple showed some resiliency after entering the session with a monthly loss of 14.7%. Morgan Stanley defended the stock, saying that it is currently a buying opportunity; the company also sees a price target of $253/share and is ‘Overweight’ on the stock. Also within the tech space, chipmakers put on a good showing, as the Philadelphia Semiconductor Index gained 3.3%, extending its winning streak to three sessions.  Of note, Warren Buffet’s Berkshire Hathaway (BRK.B 217.38, +1.35, +0.6%) disclosed that it initiated new positions in some financial companies including JPMorgan and also increased its positions in Bank of America and other notable financial companies. In earnings, Dow components Wal-Mart (WMT 99.54, -1.99, -2.0%) and Cisco Systems (CSCO 46.77, +2.44, +5.5%) reported upbeat reports but finished mixed. Wal-Mart beat earnings estimates and raised its 2019 fiscal year guidance, and Cisco beat top and bottom lines estimates. Nvidia (NVDA 168.45, -33.94, -16.77%) plummeted as much as 16% during after-hours trading Thursday after the company missed on revenue due in large part to an inventory overhang for mid-range gaming GPUs.
 
 
 

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

 

The government of South Korea’s Gyeongbuk province has launched a “Blockchain Special Committee” with the goal of creating a blockchain hub in the region, inviting 40 domestic and foreign experts in the industry to consult on the project. Gyeongbuk province will work with the special committee, composed of domestic and international experts, to preemptively respond and establish strategies, in order to nurture the blockchain industry. The Committee’s establishment is not the region’s first venture into blockchain. This summer, the province’s government announced plans to issue its own local cryptocurrency, dubbed Gyeongbuk Coin, which will reportedly be accepted by merchants across the region.

Major Russian Art Gallery Tretyakov Launches Blockchain-Based Art Patronage Project

The prestigious State Tretyakov Gallery in Moscow, Russia, is launching a blockchain-based art patronage scheme. The project, dubbed “My Tretyakov,” allows individuals or enterprises to make a private donation to contribute to the digitization of an item from the gallery’s collection, thereby become the artwork’s patron. According to a press statement from the gallery – the donation amount is still under discussion. The system randomly selects which storage unit (electronic copy of an object of art) will be considered digitized using this cartridge, and links the name to the object. The connection of the name or company name to the digitized exhibit is fixed using blockchain technology. My Tretyakov initiative represents a new form of public involvement in art.

Spanish Telecoms Operator Partners With IBM to Manage International Calls With Blockchain

IBM and major Spanish telecommunications firm Telefónica have partnered to apply blockchain technology to managing international mobile phone call traffic. The collaboration aims to streamline certain Telefónica business processes and address various challenges in the field, including the reliability and transparency of information registered from different networks when routing international calls. The project will also help Telefónica identify fraudulent activity as well as address issues like dispute resolution, commercial loss due to uncollected revenues, or discrepancies in information. Telefónica plans to use the IBM Blockchain Platform for tracking the certainty and traceability of each international call and related data, such as origin, destination, and duration. The platform will be applied in building a network of peers consisting of operators, service providers, vendors, and other parties. IBM subsequently confirmed the partnership with Telefónica.

Cryptocurrency, Earnings, Market Summary

2 min Market Summary: 15 Nov 2018

Posted on by TrackRecord Trading

  NOTABLE MOVES  

  • U.S. CPI m/m inline at 0.3%. Core CPI m/m inline at 0.2%. Japanese Prelim GDP q/q inline at -0.3%. USDJPY down -0.22%, $113.56. The 2-yr yield lost two basis points to 2.86%, and the 10-yr yield lost three basis points to 3.12%.
  • Italy stuck to its 2019 budget with a 2.4% deficit target and a growth forecast of 1.5%. The EU Commission is expected to give an update on Italy next Wednesday, Nov 21st. German Prelim GDP q/q at -0.2% vs expected -0.1%. Euro up 0.19%, $1.1312.
  • In Brexit news, UK Prime Minister Theresa May announced that her cabinet has approved the draft withdrawal agreement, but that draft is still subject to British Parliament and EU approval. The 585-page draft withdrawal agreement has now been published, alongside a shorter statement setting out what the UK and EU’s future relations will look like. U.K. CPI y/y at 2.4% vs expected 2.5%. PPI Input m/m at 0.8% vs expected 0.6%. Sterling up 0.08%, $1.2984.
  • Chinese Fixed Asset Investment ytd/y at 5.7% vs expected 5.5%. Industrial Production y/y at 5.9% vs expected 5.8%. Aussie Wage Price Index q/q inline at 0.6%. Aussie up 0.21%, $0.7233.
  • Aussie Wage Price Index q/q inline at 0.6%. Aussie popped in early Asian session on the back of strong numbers. Employment Change at 32.8K vs expected 19.9K. Unemployment Rate at 5.0% vs expected 5.1%. Aussie up 0.21%, $0.7233.
  • S&P 500 down -0.76%, 2,701.58. Nasdaq down -0.89%, 6,769.87. Nikkei up 0.16%, 21,846.48.
  • Stocks rallied at the open after the October CPI reading showed consumer prices rose 0.3% as expected last month, but soon fell back amid continued Apple (AAPL 186.80, -5.43) weakness and following a regulatory reminder from Congresswoman Maxine Waters. Waters, who is set to take over the House Financial Services Committee this January, vowed that the days of weakening regulations will be coming to an end. Waters’ comments should not be seen as a surprise though, as it was understood this would likely be the case following the midterm election results. Apple dropped -2.8%, extending its monthly losses to -14.7%, after being downgraded to ‘Neutral’ from ‘Buy’ at Guggenheim on Thursday.
  • Chip stocks, however, extended Tuesday’s rebound, pushing the Philadelphia Semiconductor Index higher by 0.4%. In earnings, Macy’s (M 33.22, -2.57) fell -7.2% despite beating profit estimates and raising its earnings guidance for its fiscal 2019 year. Cannabis stocks Canopy Growth (CGC 34.30, -4.18, -10.9%) and Tilray (TLRY 102.34, -9.21, -8.3%) also dropped after reporting. Canopy missed revenue estimates, while Tilray beat earnings estimates but its revenue was at the low end of its upside pre-announcement.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

New York Regulators Have Granted Their 14th Crypto License
The New York State Department of Financial Services (DFS) has just issued a new BitLicense to the New York Digital Investment Group (NYDIG), allowing it to offer crypto-related services in the Empire State. Allegedly, DFS has granted its virtual currency license to the company, allowing NYDIG to offer liquidity and asset management services to New York residents. DFS has also granted the NYDIG Trust Company, a subsidiary to the main entity, permission to operate as a limited purpose trust company. As such, NYDIG is now able to offer custody and trade execution services, including services for bitcoin, bitcoin cash, ether, XRP and litecoin. These services include self-custody, contracting with a third party to offer custodial services or contracting with NYDIG Trust or NYDIG Execution directly for custody services. NYDIG becomes the 14th institution to receive the virtual currency license, which has now been awarded to payments startups, crypto exchanges and a bitcoin ATM firm, among others.
$5 Trln FX Settlement Giant CLS to Launch Blockchain-Based Netting Service ‘Within Days’
Forex exchange (FX) settlement giant CLS will launch soon its IBM blockchain-powered netting service according to Chief Strategy Officer (CSO) Alan Manquard. CLS Group, which reportedly settles on average $5 trillion in payment instructions daily, is a U.S. FX settlement service supplier with high-profile members that include Goldman Sachs, JPMorgan, Barclays, and Citigroup. The netting service involves offsetting and the determination of the value of multiple positions or payments due to be exchanged between the parties accounting for factors such as the currency volatility caused by differences in time zones. In such cases, the service is used to fix the remuneration a given party is owed. The tech giant’s Hyperledger-based blockchain can tackle the 2.9 million daily transactions that are estimated to result in an average of 25,000 disputes per year, locking up around $100 million. It is also expected to reduce the time taken for dispute resolution from forty days to under ten.
Japan: Tokyo Police Arrest 8 Men Allegedly Involved in $68 Million Crypto Pyramid Scheme
Tokyo police have arrested eight men that are suspected of collecting a total amount of $68.4 million in cash and cryptocurrency using a pyramid scheme. The suspects claimed to run a U.S. investment company dubbed “Sener,” conducting seminars with foreign speakers. Allegedly, the suspects received cash and Bitcoin (BTC) from about 6,000 people in 44 prefectures, including Tokyo. A group lawsuit was filed at the Tokyo District Court by 73 victims of the fraud, seeking approximately $3.2 million in damages. Six persons have already admitted to the allegations, while two others deny them. The investigators believe the suspects tried to avoid prosecution by using cryptocurrencies, as they are in a “gray zone.” However, although digital currencies are not considered as securities that are under the jurisdiction of current law, they can be regulated depending on the structure of the investment.
Cryptocurrency, Market Summary

2 min Market Summary: 14 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

  • There were no notable prints out of the U.S. on Tuesday. U.S. Treasuries jumped, pushing yields lower across the curve. The 2-yr yield lost five basis points to 2.88%, and the 10-yr yield lost four basis points to 3.15%. USDJPY down -0.03%, $113.80.
  • In the E.U. there were reports that Italy has agreed on a 2.4% budget deficit for next year and maintain a 1.5% growth target. Prime minister Giuseppe Conte hopes the resubmission to the EU will be at least partially conciliatory. German ZEW Economic Sentiment at -24.1 vs expected -24.2. Euro up 0.83%, $1.1311.
  • Sterling popped on headlines indicating that the EU and the UK reached a deal on the Irish border issue. Prime Minister May met with her ministers yesterday, the cabinet and EU meets separately today and the withdrawal agreement could be made public before the end of the week. U.K. Average Earnings Index 3m/y inline at 3.0%. Unemployment Rate at 4.1% vs expected 4.0%. Sterling up 1.28%, $1.3014.
  • S&P 500 down -0.15%, 2,722.18. Nasdaq up 0.03%, 6,830.91. Nikkei down -2.06%, 21,810.52.
  • The benchmark S&P500 index climbed as high as 1.0% amid early U.S.-China trade optimism, but energy stocks eventually led the broader market lower as oil prices tanked. WTI crude fell -7.0% to $55.67/bbl, extending its losing streak to 12 straight sessions and settling at its lowest level since November 2017. Crude extended losses in the wake of OPEC’s monthly supply report, in which it cut its 2019 oil demand forecast for the fourth consecutive month. Likewise, the oil-sensitive energy sector dropped -2.4%, and energy component Haliburton (HAL 32.27, -1.89) surrendered -5.5%. Apple (AAPL 192.23, -1.94) lost -1.0% amid another guidance warning from one of its suppliers, Qorvo (QRVO 63.65, -0.15, -0.2%), which cut its guidance due to “recent demand changes for flagship smartphones.”

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Chinese City in Hunan Province Launches Blockchain Platform for Real Estate Data
The Chinese city of Loudi has launched a blockchain platform to store real estate data. The platform is backed by land, tax and real estate departments in the city, which is located in central Hunan province. Starting Nov. 15, the new system will let citizens avoid lines and other bureaucratic processes when submitting documents to the above-listed departments. The first real estate electronic voucher was also issued in the city via the new blockchain-based system. According to a report, blockchain has been actively tested in the sphere of real estate globally, especially in issuing digital mortgages to reduce paperwork and increase interoperability between different institutions.
Australia’s CSIRO, CommBank Complete ‘Smart Money’ Blockchain Trial
The Commonwealth Scientific and Industrial Research Organization’s (CSIRO) Data61 division and Commonwealth Bank of Australia (CommBank) have completed a successful trial of a prototype blockchain app that aims to make money “smart.” The app is based on a blockchain token coded with smart contracts allowing participants and service providers to execute payments based on pre-defined conditions, such as who can spend which funds by what deadline. CSIRO and CommBank believe that if the prototype was developed and implemented at a full scale across Australia, it could save “hundreds of millions of dollars annually,” estimating that users of the app could potentially save 1–15 hours per week and 0.3–0.8 percent of annual revenue.
Amex Files Patent for Blockchain System to Match Images of Receipts With Stored Records
Financial services giant American Express (Amex) has filed a patent for a blockchain-based system to capture and transmit the image of a receipt. Financial services giant American Express (Amex) has filed a patent for a blockchain-based system to capture and transmit the image of a receipt. First, the system lets a user with a mobile device capture the image of a receipt. The system then, via “optical character recognition,” deciphers the image and matches it with “related records,” namely transaction history. The blockchain structure may include a distributed database that maintains a growing list of data records. The blockchain may provide enhanced security because each block may hold individual transactions and the results of any blockchain executables.
Charts of the Week, The Week Ahead

Trade Opportunities: AUDJPY, EURCAD

Posted on by TrackRecord Trading

AUD/JPY Daily Candlesticks & Ichimoku Chart   SHORT 
With the bearish close on Fri, shorting AUD/JPY with a stop above the recent highs gives us a good risk vs reward short based on the daily chart.

 

EUR/CAD Daily Candlesticks & Ichimoku Chart   SHORT 
Last week, EUR/CAD tried to test the bottom of the daily Ichimoku clouds and failed. The close also resulted in a bearish candle. The recent two previous occasions when this occurred resulted in sell-offs in the days after. There’s a good chance that EUR/CAD will test new lows soon. (Note: EUR/CAD has reached our short term target yesterday and profits taken – after this chart was sent to our subscribers. Will look to sell again on rallies as we foresee EUR/CAD to continue moving lower)

 

Vee, our Founder/CIO highlights patterns/formations on selected chart(s) every week which may have the potential to turn into trading opportunities. These charts are extracts of our weekly subscription product – “CIO’s Week Ahead Update” which provides analysis for the week ahead, first sent out on Monday of the week.

Let us know what you think in the comments below!

Disclaimer: The views and opinions expressed in this material do not constitute a recommendation by TrackRecord Pte. Ltd. that any particular investment, security, transaction or investment strategy is suitable for any specific person. No part of this material may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of TrackRecord Pte. Ltd

Cryptocurrency, Market Summary

2 min Market Summary: 13 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

  • U.S and Canadian banks were on holiday on Monday. Data was light out of the G7 countries. Japanese PPI y/y at 2.9% vs expected 2.8%. Prelim Machine Tool Orders y/y at -1.1% vs previous 2.9%. Risk-Aversion in capital markets continues on Monday. USDJPY down -0.14%, $113.69.
  • Euro fell right after London’s opening amid mounting tensions about the Italian budget rejection by the EU commission last week. Italy has until this Tuesday to resubmit a fiscal plan that complies with EU rules or could face economic sanctions. Euro dropped -0.88%, $1.1224.
  • Sterling got a boost from an FT news, which indicated that EU’s Chief Negotiator Barnier said that main elements of Brexit treaty text was ready, but resumed its decline after the market realized the Irish border issue remains unsolved. Sterling down -0.65%, $1.2854.
  • S&P 500 down -1.97%, 2,726.22. Nasdaq down -2.78%, 7,200.87. Nikkei down -3.30%, 21,534.52.
  • Apple (AAPL 194.17, -10.30, -5.0%) and semiconductor companies dragged on the broader market. The rout in the information technology sector (-3.5%) underpinned the benchmark index’s retreat below its 200-day moving average (2762.39) and wiped out monthly gains for the tech-sensitive Nasdaq Composite, which lost -2.78% on Monday. The market decline was triggered by Apple supplier Lumentum (LITE 37.50, -18.45, -33.0%) cutting its guidance due to a large, unnamed customer requesting to reduce shipments of laser diodes for 3D sensing. It is widely assumed that Apple is the customer in question, as it accounted for 30% of LITE’s fiscal 2018 net revenue and uses laser diodes for its iPhone Face ID technology. This marks the second Apple supplier in as many weeks to have issued guidance warnings. Chip stocks, subsequently, posted heavy losses, as the Philadelphia Semiconductor Index dropped -4.4%. Unsurprisingly, Apple chip suppliers Qorvo (QRVO 63.80, -4.35, -6.4%), Skyworks Solutions (SWKS 72.84, -3.82, -5.0%), and Cirrus Logic (CRUS 35.64, -5.74, -13.9%) underperformed. Meanwhile, notable chipmaker NVIDIA (NVDA 189.54, -16.13) erased yearly gains with a loss of -7.8%, and Advanced Micro Devices (AMD 19.03, -2.00) lost -9.5%. The lack of investor confidence in growth stocks also manifested itself in the other FANG names. Facebook (FB 141.55, -3.41, -2.4%), Alphabet (GOOG 1038.63, -27.52, -2.6%), and Netflix (NFLX 294.07, -9.40, -3.1%) weighed on the communication services (-1.5%) sector, and Amazon (AMZN 1636.85, -75.58, -4.1%) led the consumer discretionary sector (-2.3%) lower. General Electric (GE 7.99, -0.59) struggles continued with a loss of -6.9%. CEO Larry Culp said the company’s biggest priority is to bring down leverage levels and has plenty of opportunity to do that through asset sales.
  • Goldman Sachs (GS 206.05, -16.60) fell -7.5%. The investment management company is reportedly being pressed by Malaysia for a full refund of around $600 million over alleged fraudulent activity regarding the 1MDB investment fund Goldman Sachs set up for it.
  • In energy, Saudi Arabia announced it will reduce its oil exports in December by 500,000 barrels a day due to a seasonal slowdown in demand. The world’s largest oil exporter also thinks a 1 million barrel per day cut by oil producers from October production levels might be necessary.Trump, in turn, tweeted his opposition to OPEC’s desire to cut oil production, saying that oil prices should be lower based on supply. President Trump’s tweet dampened an early WTI crude rebound, which backpedaled 0.5% to settle at $59.84/bbl

 

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Major Oil Firms, Banks Partner to Launch Blockchain Platform for Energy Commodity Trading

Major oil companies BP, Shell, and Equinor have united with large banks and trading houses to launch a blockchain-driven platform Vakt for energy commodity trading. Vakt also includes banks ABN Amro, ING, and Societe Generale, along with trading houses Gunvor, Koch Supply & Trading, and Mercuria. The blockchain solution, first announced in November 2017, will enable major industry players to move from “cumbersome” paperwork to smart contracts, thereby helping to reduce time spent on operations and make trading more efficient. A platform similar to Vakt already exists in Switzerland, where a group of major global banks, trading firms, and a leading energy company launched a joint venture, dubbed komgo SA, to oversee a new blockchain-based platform for financing the trading of commodities.

Singapore’s Central Bank, SGX Develop Blockchain Settlement System

The Monetary Authority of Singapore (MAS) and the country’s stock exchange, Singapore Exchange (SGX), have developed a settlement system for tokenized assets that can work across different blockchains. The newly completed delivery versus payment (DvP) system utilizes smart contracts to simplify post-trade processes and shorten the settlement cycle. The purpose is to simplify for financial institutions to carry out the simultaneous exchange and final settlement of tokenized digital currencies and securities as required under DvP. The new system is also an extension of Project Ubin, which started life in November 2016 as a collaborative project by MAS and Singapore’s financial services industry to explore blockchain tech for clearing and settlement of payments and securities.

Combined Class-Action Lawsuit Against Ripple Moves to Federal Court

Attorneys for Ripple Labs and its affiliated defendants filed to move a consolidated class-action lawsuit from its previous venue at the San Mateo Superior Court to the U.S. District Court, Northern District of California. In addition to the request to change the venue, Ripple’s attorneys hinted at the company’s defense against the suit, which alleges that the XRP token is a security issued by Ripple. The consolidated class action combines previous class-action lawsuits filed by plaintiffs Avner Greenwald, David Oconer and Vladi Zakinov. The defendants now include Ripple Labs and its subsidiary XRP II, as well as Bradley Garlinghouse, Christian Larsen, Ron Will, Antoinette O’Gorman, Eric van Miltenburg, Susan Athey, Zoe Cruz, Ken Kurson, Ben Lawsky, Anja Manuel and Takashi Okita. Plaintiffs will file a motion to remand the case back to the San Mateo Superior Court. The next deadline for Ripple to respond to the complaint itself will either be two weeks from the date the motion to remand is denied (if it is denied) or two weeks from when the San Mateo court receives the case (if the motion to remand is approved).

Cryptocurrency, Market Summary

2 min Market Summary: 12 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

  • U.S PPI m/m at 0.6% vs expected 0.2%. Core PPI m/m at 0.5% vs expected 0.2%. The report fuelled concerns about pass-through inflation to the consumer, which have been a concern by numerous companies during the third quarter earnings-reporting when they mentioned about higher input costs and increasing prices. A pullback in the stock market following the midterm elections spike stoked risk-off sentiment on Friday. 2-yr yield lost four basis points to 2.93%, and the 10-yr yield lost five basis points to 3.19%. USDJPY down -0.20%, $113.83.
  • Political woes kept weighing on European currencies, with no-deal Brexit weighing on Sterling, and tensions between Italy and the EU Commission on the Euro. Italy’s Finance Minister Giovanni Tria reiterated that the country will maintain the planned 2019 budget, despite the EU threat of sanctions, as the coalition government wants to boost the local economy. Euro down -0.24%, $1.1336. U.K. GDP m/m at 0.0% vs expected 0.1%. Also weighing on Sterling was the resignation of Jo Johnson, the Transport minister and brother of Boris Johnson. U.K. Manufacturing Production m/m at 0.2% vs expected 0.1%. U.K. Prelim GDP q/q inline at 0.6%. Sterling down -0.65%, $1.2976.
  • WTI crude fell -0.9% to settle at $60.16/bbl. Friday’s loss has extended its decline to -21.8% from its Oct 3 four-year high. USDCAD up 0.45%, $1.3211.
  • S&P 500 down -0.92%, 2,781.01. Nasdaq down -1.67%, 7,039.15. Nikkei down -1.05%, 22,250.25.
  • Chip stocks dragged on the lagging tech sector, as key Apple supplier Skyworks Solutions (SWKS 766.66, -6.74) fell -8.1% after it issued below-consensus top and bottom line guidance for its fiscal first quarter. Its guidance has extended a trend within the semiconductor industry that has warned of slowing chip demand. The Philadelphia Semiconductor Index lost -1.9%. Walt Disney (DIS 118.00, +2.00, +1.7%) rose after an upbeat earnings report, while General Electric (GE 8.58, -0.52, -5.7%) took a hit after JPMorgan cut its price target on the stock to $6 from $10. In response, the former Dow component responded that it is a “fundamentally strong company with a sound liquidity position,” according to a CNBC report.
  • In trade news, White House National Trade Council Director Peter Navarro made some combative comments against CEOs for pushing Trump to make a trade deal with China and stated a trade deal will be on the president’s terms. Separately, Trump has reportedly been telling associates that he wants to replace Commerce Secretary Wilbur Ross by the end of the year.

 

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

 
 
Private blockchains, such as interbanking platforms set to share information on customers, could be suitable with new E.U. privacy rules. The General Data Protection Regulation (GDPR) act came into effect this May. According to the law, all data controllers have to respect citizens’ rights in terms of keeping and transferring their private information. In case a data controller fails to do so, the potential fines are set as €20 million (about $22 million) or four percent of global turnover/revenues, whichever is higher. Crypto-related technologies could fall under these rules and be treated as “controllers,” given that they publicly store private information about E.U. citizens in the chain and allow third parties to operate it. However, blockchain operators could be treated like “processors” instead, the same as the companies behind cloud technologies who act on behalf of users rather than control their data. This is mostly applicable for Blockchain-as-a-Service (BaaS) offerings, where a third party provides the supporting infrastructure for the network while users store their data and control it personally. The researchers urge the European Data Protection Board, an independent regulatory body behind GDPR, to issue clearer guidance on the application of data protection law to various common blockchain models. 
 
 
 
Singapore Exchange Limited (SGX), along with the Monetary Authority of Singapore (MAS), have successfully tested the use of blockchain technology for tokenized assets settlement. The partners have developed a blockchain-driven solution for Delivery versus Payment (DvP) capabilities, a settlement procedure where the buyer’s payment for securities is due at the time of delivery. Reportedly, this could increase operational efficiency and reduce settlement risks. The technology could further help automate DvP settlement processes by using smart contracts. Tinku Gupta, Head of Technology at SGX, also revealed that the exchange has filed its first-ever patent. 
 
 
 
Vietnam’s Ministry of Justice has submitted а report to the government in Hanoi that contains a review of the current legislation and an assessment of cryptocurrency-related business activities in the country. The authors of the document have also made a number of proposals about changes they consider necessary. Three alternative aproaches can be considered: the first approach, referred to as “floating,” involves the implementation of a relatively lax regulatory regime, the second called “prohibiting” is pretty much self-explanatory and the third option is to legalize digital asset transactions under certain conditions. Relevant ministries and departments will build an appropriate legal framework to govern digital assets and currencies after the executive power chooses the trend it wants to follow. However, Vietnamese authorities have not taken a final decision on cryptocurrencies yet. The country’s central bank has clearly stated that it does not recognize them as legal tender and has also supported a suspension of imports of mining equipment which the country’s Finance Ministry proposed. 
Cryptocurrency, Earnings, Market Summary

2 min Market Summary: 9 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

  • U.S. Unemployment Claims in line at 214K. In its statement, the FOMC said it expects further gradual rate hikes that are consistent with sustained economic growth, strong labor market conditions, and inflation near its symmetric 2% target over the medium term. The Fed’s statement didn’t derail expectations for another rate hike in December, which would be the fourth hike in 2018. Consequently, the yield on the Fed-sensitive 2-yr Treasury note jumped four basis points to 2.97%, its highest level since June 2008. Also, the benchmark 10-yr yield added two basis points to 3.23%. USDJPY up 0.38%, $113.96.
  • German Trade Balance at 17.6B vs expected 18.2B. Euro down -0.51%, $1.1368. The EU convenes on November 23rd to discuss Britain’s exit from the European Union and according to a times political report, an agreement could be made as early as next week. Sterling down -0.46%, $1.3066.
  • S&P 500 down -0.25%, 2,806.83. Nasdaq down -0.62%, 7,158.59. Nikkei up 1.82%, 22,486.92.
  • The market retreated on Thursday, on the heels of FOMC’s decision as the expectations for yet another hike in December remains intact. The benchmark index traded slightly below its flat line leading up to the Committee’s statement release, and sharply dropped to session lows before recouping some losses. In the latest batch of Q3 earnings reports, lower guidance overshadowed better-than-expected profits for many names. For instance, Perrigo (PRGO 62.88, -12.26, -16.3%), Qualcomm (QCOM 58.05, -5.16, -8.2%), Wynn Resorts (WYNN 99.02, -14.97, -13.1%), Square (SQ 75.23, -7.46, -9.0%), and D.R. Horton (DHI 34.22, -3.37, -9.0%) all beat earnings estimates but barred significant losses after lowering profit or revenue guidance below consensus.

 

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Japan’s Shinsei Bank, Nippon Wealth Form Business Alliance with Blockchain Startup ConsenSys
Japan’s Shinsei Bank has signed a Memorandum of Understanding (MoU) with blockchain startup ConsenSys to widen its exploration of the technology’s applications for finance. The MoU entails a business alliance between Shinsei Bank, Hong Kong-based restricted license bank Nippon Wealth, Singaporean private equity fund Tribay Capital, and ConsenSys. The alliance between the four entities will focus on exploring the use of ConsenSys’ decentralized applications (DApps) to develop new financial products and services, with Nippon Wealth spearheading a study of blockchain infrastructure and protocols for the banking sector. The alliance means that Tribay Capital will become a new shareholder of Nippon, with Shinsei Bank nonetheless remaining its majority shareholder, retaining 50 percent of shareholder rights.

BBVA Puts $150 Million Syndicated Loan on Ethereum Blockchain
Spanish banking giant BBVA has completed a pilot that put a syndicated loan for $150 million on the blockchain.Tthe bank arranged the loan for Red Electrica, Spain’s national electrical grid operator with co-lenders Japan’s Mitsubishi UFJ Financial Group and France’s BNP Paribas. In a traditional syndicated loan process, banks rely on faxes to share complex information, which not only delays the process, but is also expensive. Blockchain is seen as a means to help banks exchange information at near real-time, reducing the loan process from a couple of weeks to a day or two. Cutting out manual processes also slashes operational costs. The BBVA planes to conduct more blockchain pilots for syndicated loans in the future. The bank has explored blockchain tech in the past, as well.

Huobi Opens Office in Russia, Plans Startup Accelerator and Mining Hotels
Huobi Global Senior Director Edward Chen and Andrei Grachev, head of the Russian office, announced the launch date during the Blockchain Life conference in Saint Petersburg this week. The branch will provide 24-hour online support and maintain a call center with Russian-speaking account managers. Huobi, which is currently the third-largest cryptocurrency exchange by daily trading volume, plans to establish an accelerator for blockchain projects. Huobi’s office will also launch an educational program that will focus on cryptocurrency and distributed ledger technologies. The exchange will cooperate with leading Russian universities and other organizations on the initiative. Students will be trained in the specifics of digital asset management and taught about the automated and algorithmic trading services offered by Huobi. The Singapore-based company also intends to participate in the development of so-called mining hotels in Russia. The news about the Russian office comes after Huobi’s recent announcement of plans to expand its operations into new cryptocurrency markets around the world, including Africa, South Asia and the Middle East.

Cryptocurrency, Earnings, Market Summary

2 Min Market Summary: 8 Nov 2018

Posted on by TrackRecord Trading
  NOTABLE MOVES  
  • U.S. Total outstanding consumer credit increased by $11.0 billion in September after increasing an upwardly revised $22.8 billion (from $20.1 billion) in August. The report reflects a deceleration in credit expansion that could contribute to concerns about the U.S. economy hitting/nearing peak growth. U.S. Treasuries finished roughly flat with the 10-yr yield unchanged at 3.21%. Japanese Average Cash Earnings y/y at 1.1% vs expected 1.2%. The G7 currencies had a subdued showing in light of the midterm elections. USDJPY up 0.11%, $113.57.
  • German Industrial Production m/m at 0.2% vs expected 0.0%. Euro up 0.05%, $1.1433. Brexit-related headlines kept coming, but the Irish border issue remains unsolved.  Sterling up 0.22%, $1.3127.
  • Canadian Ivey PMI at 61.8 vs expected 50.9. WTI crude lost 0.9% to settle at $61.65/bbl, extending its recent decline to nearly 20.0% from its four-year high last month. The Energy Information Administration reported a weekly crude inventory build of 5.8 million barrels last week, marking the seventh consecutive week of stockpile builds. USDCAD down -0.05%, $1.3117.
  • RBNZ kept the official cash rate at 1.75% (expected). The central bank expects to keep it at this level into 2020. “No. We are not taking a rate cut off the table,” Orr cited. “I think it would be pointless to do that, to remove an option. What we are saying is we are very data dependent, data-driven around how our projections unfold. The risks to the downside remain,” he said. Despite Orr’s comments, the market is now sees a 54% chance of a rate hike in March 2020 versus 28% prior to today’s statement. N.Z Inflation Expectations q/q at 2.0%. The FX market did not react much to RBNZ as Kiwi was already up 0.62% on the day, at 0.6780 (mainly due to yesterday’s strong employment numbers)
  • S&P 500 up 2.12%, 2,813.89. Nasdaq up 3.07%, 7,203.13. Nikkei down -0.28%, 22,085.80.
  • Wednesday’s stock market advance follows the conclusion of U.S. congressional midterm elections that produced a split Congress. The prevailing assumption in the market was that a newly divided Congress would preserve market-friendly policies, namely the tax cut and deregulation efforts. Trump also mentioned on Wednesday bipartisan efforts to work with the Democrats in the House on infrastructure, trade, and lowering drug costs. Health care companies rose with the belief that a split Congress would also make it unlikely that it will fully repeal the Affordable Care Act. On a related note, heavily-weighted health care component Humana (HUM 353.98, +22.17) jumped 6.7% after it reported above-consensus earnings and raised its guidance. Apple (AAPL 209.95, +6.18, +3.0%), Microsoft (MSFT 111.96, +4.24, +3.9%), Visa (V 144.78, +3.99, +2.8%), and MasterCard (MA 208.24, +9.09, +4.6%) all provided the sector a much-needed lift.
  • Within the consumer discretionary group, Amazon (AMZN 1755.49, +112.68) carried the sector with an impressive gain of 6.9%. Amazon announced Wednesday it has launched Amazon Music for Mexico. Additionally, Amazon announced Alexa’s launch for Mexico. Beginning in mid-November when Echo devices ship, customers will be introduced to new voice features in Spanish with Alexa.
  • Of note, pot stocks surged after Attorney General Jeff Sessions resigned his post effective immediately per Trump’s request.  Sessions was an influential critic of legalizing marijuana and served as roadblock to advance the national conversation. Well-known cannabis companies Tilray (TLRY 139.60, +32.74) and Canopy Growth (CGC 46.07, +3.48) rose 30.6% and 8.2%, respectively. Cannabis stocks were already on the rise after several more states voted to legalize recreational or medical marijuana. Michigan became the 10th state to legalize its recreational use, and Utah and Missouri passed initiatives to join 31 other states that already legalize its medical use.

 

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Trading Platform eToro Unveils Blockchain Solution to Tackle Economic Disparity

Trading platform eToro has recently unveiled blockchain-driven social project GoodDollar to tackle global wealth inequality. GoodDollar had been presented at Web Summit held this week in Lisbon, Portugal. According to the release, eToro has invested $1 million of its funds to the project and is seeking for more partners to join the initiative. The project’s main goal is to provide economic tools for people who are unbanked or disenfranchised, creating non-speculative cryptocurrency that aims to find ways to reduce wealth inequality on a global scale. The decentralized solution will establish a direct ownership connection between identity and the currency, thus helping to get funds directly without the interference of middlemen. Trading platform eToro is also launching its own cryptocurrency wallet that will at first provide support for Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC).

Blockchain Firm Upgrades App in Quest to Reduce Fatal Air Accidents

A fledgling blockchain-based company Areon, which aims to improve flight safety will launch an upgraded version of its app for pilots software that has been designed to replace the old-fashioned paper logbooks currently used by aviation enthusiasts and professionals. Aeron estimates that 57 percent of aviation accidents can be attributed to human factors and says it is possible for pilots to manipulate records and exaggerate their experience, while airlines may underreport flight hours to save on maintenance costs. In March, Aeron launched the first iteration of its mobile app for pilots on Apple’s App Store and Google Play – enabling them to record their flight hours on blockchain instead of paper and earn the full confidence of prospective employers and aviation authorities. This month, new features are being added so the pilots can create and submit flight plans – detailing the intended route and other flight details, bringing convenience to the pilots of small aircraft and flight school students. Aeron also introduced a new platform called CryptoBonusMiles (CBM), which will enable frequent flyers to collect bonus miles in a single unified wallet and receive crypto rewards whenever they hop on a plane, in addition to the perks they receive from conventional loyalty programs offered by major airlines.

US Election Sees Crypto-Friendly Politicians Win Governor Races

The U.S. 2018 midterm elections saw crypto-friendly lawmakers securing governorships in three states, while maintaining two others. Mark Gordon won his election in Wyoming, already an increasingly blockchain-friendly state, while Gina Raimondo and Greg Abbott won re-election in Rhode Island and Texas, respectively. Polis, in particular, was a member of the Congressional Blockchain Caucus in the U.S. House of Representatives and has vocally called for the U.S. to take a leadership role in integrating and regulating the space. His platform even included a number of initiatives he intends to push for revolving around the technology, including improving digital voter protection and using blockchain to digitize government records and make them more transparent. Former California Lieutenant Governor and now Governor-elect Gavin Newsom is also in favor of formally allowing data stored on a blockchain to be admissible in court. Texas Governor Abbott, who secure re-election on Tuesday, previously accepted bitcoin donations as well.