NOTABLE MOVES  

USDJPY, -0.25%, $113.41.
EURUSD, +0.24%, $1.1393    .
GBPUSD, -0.30%, $1.2786.
AUDUSD, +0.22%, $0.7322.

S&P500, -0.22%, 2,737.80
Nasdaq, -0.25%, 7,273.08
Nikkei, +0.79%, 22,352.51

CURRENCY MARKET WRAP  

• In FOMC minutes, almost all Fed officials saw the need for another rate hike “fairly soon,” they also discussed the possibility of changing the language on “further gradual rate hikes.” Dollar continues to remain offered. U.S. Core PCE Price Index m/m at 0.1% vs expected 0.2%. Personal Spending m/m at 0.6% vs expected 0.4%. U.S. Treasuries finished near their unchanged marks with the benchmark 10-yr yield losing one basis point to 3.04%. Also, the U.S. Dollar Index finished flat at 96.76.
• At the start of the NY session, Euro was one of the weakest currencies (Low:1.1349) because there were reports that the US would levy tariffs on EU autos before Christmas. Concerns about the impact of the tariffs forced investors to ignore better labor data from Germany and stronger Eurozone confidence. Shortly after the NY open however, the European Commission denied those reports and the Euro recouped its losses. German Prelim CPI m/m at 0.1% vs expected 0.2%.
• Speculation that there could be a different kind of Brexit deal if the Parliament rejects PM May’s plan were erased after EU’s Chief Negotiator Barnier said that negotiations are over and that now is the time to ratify the deal. Also, PM May said that the UK will leave the EU next March, whether there’s a deal approved or not. U.K. Net Lending to Individuals m/m at 5.0B vs expected 4.5B.

STOCK MARKET WRAP  

• The S&P 500 trimmed this week’s rally by -0.22% on Thursday with market participants shifting focus to this weekend’s G-20 meeting between Trump and China President Xi Jinping. Though the market succumbed to early profit-taking from Wednesday’s Powell-driven rally, stocks gradually climbed from session lows as news wires heated up with U.S.-China trade headlines. The Wall Street Journal noted (unnamed) officials on both sides are floating the idea of forestalling any further tariffs through the spring to set the stage for a new round of talks to address changes in China’s economic policy. In addition, The South China Morning Post reported that Peter Navarro, a well-known China trade hawk, will be attending the dinner meeting between Trump and President Xi on Saturday. Navarro’s presence at the dinner table briefly unnerved investors.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Coinbase Adds Privacy-Centric Crypto Zcash to Pro Trading Exchange
Crypto exchange Coinbase Pro is adding privacy coin zcash to its listings. The platform announced that customers can transfer zcash into its professional trading platform, though as with previous additions, users can not yet purchase the token until the exchange has established enough liquidity. Deposits will be accepted for at least 12 hours after the announcement at 18:00 UTC. When trading is enabled, only Coinbase Pro users in most of the U.S., UK, European Union, Canada, Singapore and Australia will be able to access the coin. Due to the nature of the privacy coin, full support is not yet being added. As the post explains, zcash offers both transparent and shielded transaction types, which show different amounts of information about a transaction. Upon official word of the listing from Coinbase Pro, the price of zcash began a significant uptick at 18:00 UTC. Just five minutes later the cryptocurrency had jumped 15 percent to reach a 9-day high of $99.13, according to data from the Binance exchange.

Galaxy Digital Lost $136 Million in the First Three Quarters of 2018
Mike Novogratz’s crypto investment bank Galaxy Digital has lost $136 million in the first three quarters of 2018. Galaxy Digital’s realized and unrealized losses in Q3 amounted to $41 million, which when combined with the results of previous quarters, amounts to the firm being out $136 million so far this year. The firm’s share price also dropped to a record low after tumbling 55 percent this month. Founded earlier this year, the company explained that the losses were mainly due to tumbling prices of major cryptocurrencies such as Bitcoin (BTC), Ripple (XRP), and Ethereum (ETH). Earlier in November, Novogratz predicted that Bitcoin would surge to as high as “$20,000 or more” in 2019. In an interview with U.K.-based Financial News, the industry expert stated that Bitcoin can end this year at around $8,900 before “taking out” $6,800.

Huobi Cryptocurrency Exchange Launches Derivative Market
Singapore-based cryptocurrency exchange Huobi has launched the Huobi Derivative Market (Huobi DM). Huobi presented its new platform at the Cryptofrontiers conference in New York City today, stressing that the Huobi DM allows customers engage in cryptocurrency contract trading on both rising and falling cryptocurrency prices. The platforum purportedly provides tools for hedging and controlling risk and uncertainty. Contract trading allows users to purchase and sell digital currencies at predetermined prices at specified times in the future, giving investors and traders an opportunity to open both long and short positions. Huobi notes that Huobi DM is currently in beta testing and is not available for customers in the U.S., Singapore, Israel, Malaysia, and Hong Kong, among others. Under Chinese law, any company with more than three Communist Party member employees must set up its own branch, while until recently, the practice was mostly confined to state enterprises. Huobi thus became evidently the first cryptocurrency industry business to embrace the tradition.

NOTABLE MOVES  

USDJPY, +0.18%, $113.80.
EURUSD, -0.27%, $1.1297.
GBPUSD, -0.72%, $1.2742.
USDCAD, +0.35%, $1.3298.

S&P500, +0.33%, 2,682.17
Nasdaq, +0.01%, 7,082.70
Nikkei, +0.64%, 21,952.40

CURRENCY MARKET WRAP  

• U.S. Prelim GDP q/q at 3.5% vs expected 3.6%. Fed Chair Powell said he sees current interest rates “just below” neutral. That proved to be a rally point because the language Powell used early last month indicated a view that the fed funds rate was “a long way from neutral.” Powell added that there is no preset policy path, and the Fed will be data-dependent in its decision making, which pleased investors. By highlighting risks, though, that included previous rate increases, trade disputes, and Brexit/EU political uncertainty, the market chose to read between the lines that the Fed chair isn’t wedded to three rate hikes in 2019. Powell’s perceived dovish remarks sent bond yields and the dollar lower. The U.S. Dollar Index dropped -0.6% to 96.84, trading offered against the G7. The 2-yr yield fell three basis points to 2.80%, and the 10-yr yield slipped one basis point to 3.04%.
• Regarding trade disputes, investors remain hopeful that some kind of agreement can be struck between the U.S. and China to forestall further protectionist trade measures. There is a burgeoning belief that Trump might aim to keep a floor of support under the stock market by striking a more conciliatory tone in his Saturday meeting with China Xi Jinping. Nevertheless, it remains a speculative trade given Trump’s tough-minded tariff position.
• In Brexit, Sterling was bid during mid-European session following headlines that UK FinMin Hammond indicated that if the Parliament blocks May’s plan, a Norway-style deal will be considered. The movement seemed counter intuitive, rather than reflecting the market’s hope for a solution than an actual end to the Brexit drama. He also cited that a no-deal Brexit could still happen and could mean the economy will be 7.7% smaller in 15 years time than if the UK stays in the EU. PM May’s spokesperson responded by saying that the economy would continue to grow in all Brexit scenarios, as all of them are being prepared by the UK government.

STOCK MARKET WRAP  

• The S&P 500 confidently extended weekly gains by 2.3% on Wednesday after Fed Chair Powell said he sees current interest rates “just below” neutral. That proved to be a rally point because the language Powell used early last month indicated a view that the fed funds rate was “a long way from neutral.”
• The tech sector welcomed a solid showing from heavyweights Apple (AAPL 180.94, +6.70), Microsoft (MSFT 111.12, +3.98), Visa (V 141.38, +5.47), and MasterCard (MA 202.28, +9.30), which rose between 3.7% and 4.8%. Amazon (AMZN 1677.75, +96.33) and UnitedHealth (UNH 280.95, +9.80) jumped 6.1% and 3.6%, respectively, with the latter rising to a record close. In earnings, Salesforce (CRM 140.64, +13.10) and Burlington Stores (BURL 167.56, +19.00) jumped 10.3% and 12.8%, respectively, after releasing upbeat reports. On the other hand, Tiffany & Co (TIF 92.54, -12.41) fell -11.8% after the company missed revenue expectations due to weaker spending among Chinese tourists.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

NOTABLE MOVES  

USDJPY, +0.18%, $113.80.           
EURUSD, -0.27%, $1.1297.          
GBPUSD, -0.72%, $1.2742.
USDCAD, +0.35%, $1.3298.

S&P500, +0.33%, 2,682.17
Nasdaq, +0.01%, 7,082.70
Nikkei, +0.64%, 21,952.40 

CURRENCY MARKET WRAP  

• Dollar was bid against the G7 after Fed Vice Chairman Richard Clarida said he backed gradual rate hikes with an eventual move towards neutral rates. U.S. CB Consumer Confidence at 135.7 vs expected 136.2. Consumer confidence remains at historically strong levels due in large part to positive views on the labor market. The 2-yr yield was unchanged at 2.83%, and the 10-yr yield decreased two basis points to 3.06%.
• Euro continues to be offered over worries about German auto tariffs.
• In Brexit, speculation that the deal won’t get approvals and comments from ex-defence secretary Sir Michael Fallon undermined Sterling. Sir Michael’s decision to come out against the deal is a blow to the prime minister who is struggling to muster support in Parliament for it. He cited, “My fear is that this deal gives us the worst of all worlds,” he said. No guarantee of smooth trade in the future and no ability to reduce the tariffs that we need to conclude trade deals with the rest of the world.”

STOCK MARKET WRAP  

• The stock market was able to shrug off early angst caused by Trump reiterating his hard-nosed tariff stance. Trump’s comments struck concerns that his G-20 meeting with President Xi Jinping at the end of the week might not meaningfully ease trade tensions between the two countries. Trump said in a Wall Street Journal interview that it is “highly unlikely” he will refrain from raising a 10% tariff on $200 billion of Chinese goods to 25%, effective January 1. He added, too, that if China and the U.S. don’t make a deal he will move ahead with a plan to place a tariff of 10% or 25% on an additional $267 billion of imported Chinese goods, which would possibly include iPhones and laptop computers. White House economic advisor Larry Kudlow followed up with his disappointment in China talks thus far and stated that talks between Trump and President Xi will occur on Saturday evening. He added that Trump will make up his mind on the $267 billion tariff tranche at the end of the meeting.
• Apple (AAPL 174.24, -0.38, -0.2%) never traded in positive territory after the Trump’s comments reminded investors that tariffs remain a headwind for the company. Microsoft (MSFT 107.14, +0.67, +0.6%) helped lift the heavily-weighted information technology sector (+0.2%), and chip stocks also rose, with the Philadelphia Semiconductor Index up 0.2%. General Motors (GM 36.69, -0.96) fell -2.6% after Trump tweeted he is disappointed in GM and is looking to cut all of its subsidies. Trump’s frustration stemmed from GM’s decision to close plants in Ohio, Michigan, and Maryland but not those in Mexico or China. The White House is hopeful that General Motors will make some adjustments and does not believe GM’s job layoffs will impact the overall economy.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Fake Developer Sneaks Malicious Code into BitPay’s Copay Wallet

Allegedly, the Copay wallet from U.S.-based bitcoin payments processor BitPay has been compromised by a hacker. The malware was deployed on versions 5.0.2 through 5.1.0 of its Copay and BitPay wallet apps, and could potentially be used to capture private keys to steal bitcoin and bitcoin cash. The firm is asking users to not run or open the Copay wallet if they are using versions from 5.0.2 to 5.1.0. It has now released an updated version (5.2.0) without the malicious code for all Copay and BitPay wallet users that will be available in app stores “momentarily.” Users should first update their affected wallets (5.0.2-5.1.0) and then send all funds from affected wallets to a brand new wallet on version 5.2.0, using the Send Max feature to initiate transactions of all funds. The attack was reportedly commited by a supposed developer called Right9ctrl who took over maintenance of the NodeJS library from its author who no longer had time for the work.

Ten Blockchain, Fintech Firms Launch Association to Make ‘Code of Conduct’ for Crypto

Ten financial and tech firms have established an Association for Digital Asset Markets (ADAM) to create a “code of conduct” for the cryptocurrency sector. Among ADAM’s founding members are Mike Novogratz’s crypto merchant bank Galaxy Digital, global financial services firm BTIG, fintech firm Paxos – of recently-launched stablecoin PAX – and crypto liquidity solutions provider GSR. ADAM will focus on working with regulators to seek “comprehensive standards” for digital asset market participants which will encompass trading, custody, clearing and settlement in the sector, and to provide a framework for “ethical conduct” and “professionalism.” ADAM’s code of conduct will be established to work as a “complement” to existing laws and regulations in order to “accelerate fair and orderly digital asset markets where innovators and capital can transact with confidence.”

Bahrain Finance Training Institute Launches ‘Blockchain Academy

The Bahrain Institute of Banking and Finance (BIBF) is launching the country’s first “Blockchain Academy,” by approval of the Specific Council for Vocational Training. The training program is designed to prepare participants to earn the international qualification of Certified Blockchain Professional C|BP and was developed by the BIBF and Dubai-based training firm MyLearning Key. The C|BP Certification is consisted of three competency areas in blockchain technology; development, implementation, and strategy. The new initiative aims to support businesses and organizations as they adopt new technologies like blockchain.

NOTABLE MOVES  

USDJPY, +0.52%, $113.50.
EURUSD, -0.04%, $1.1333.
GBPUSD, -0.00%, $1.2813.
USDCAD, +0.20%, $1.3254.
NZDUSD, +0.04%, $0.6775.

S&P500, +1.55%, 2,673.45
Nasdaq, +2.06%, 7,081.85
Nikkei, +0.69%, 21,795.28

CURRENCY MARKET WRAP  

• There were no U.S. prints on Monday. The 2-yr yield added one basis point to 2.83%, and the 10-yr yield added two basis points to 3.07%. Also, the U.S. Dollar Index rose 0.1% to 97.05.
• German Ifo Business Climate at 102.0 vs expected 102.3. Italy’s MIB showed relative strength (+2.8%) amid reports that Italian officials indicated a willingness to lower next year’s deficit target of 2.4%. However, this report follows weekend remarks from Italy’s Deputy Prime Minister Matteo Salvini, who said he would bring down the government if the deficit target is changed.
• EU leaders have approved the Brexit Withdrawal agreement, Sterling ended the day unchanged because investors know that the big challenge now is Parliament. Prime Minister May needs 320 votes to pass the Brexit deal and there are 650 seats in Parliament. She should have at least 316 conservative votes but there’s almost no chance that she’ll get any of the 10 DUP votes so her job will be to convince members of the opposition Labour party to support her deal.
• N.Z. Retail Sales q/q at 0.0% vs expected 1.0%. Core Retail Sales q/q at 0.4% vs expected 1.5%.

STOCK MARKET WRAP  

• Amazon (AMZN 1581.33, +79.27, +5.3%) and retail stocks led the broad-based advance from what many considered to be short-term oversold conditions. Reports of record online Black Friday sales and encouraging forecasts for Cyber Monday sales contributed to the upbeat investor sentiment within the top-performing consumer discretionary sector (+2.6%). Adobe Analytics reported that online Black Friday sales surged 23.6% to a record $6.22 billion and expected a 17.6% year-over-year growth of $7.8 billion on Cyber Monday.
• The S&P SPDR Retail ETF (XRT 45.75, +0.87) rose 2.0%. Facebook (FB 136.38, +4.65, +3.5%), Alphabet (GOOG 1048.62, +24.74, +2.4%), Netflix (NFLX 261.43, +2.61, +1.0%), and Apple (AAPL 174.62, +2.33, +1.4%) all sported healthy gains. Apple was able to shrug off midday losses to finish near its session high.
• In other corporate news, General Motors (GM 37.65, +1.72, +4.8%) announced additional restructuring plans that will result in a 15% reduction of its salaried staff and possibly the closure of five of its North American plants. Trump said to reporters that he told GM executives he is unhappy with the job cuts and is hopeful that “something else will replace the GM plants in Ohio”.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

NOTABLE MOVES  

USDJPY, +0.01%, $112.95.
EURUSD, -0.59%, $1.1341.
GBPUSD, -0.50%, $1.2814.
USDCAD, +0.36%, $1.3237.

S&P500, -0.66%, 2,632.56
Nasdaq, -0.48%, 6,938.98
Nikkei (Bank Holiday)

CURRENCY MARKET WRAP  

• There were no notable U.S. prints on Friday. The 2-yr yield added one basis point to 2.83%, while the 10-yr yield shed one basis point to 3.05%. Dollar remained bid on Friday amid European political woes and risk-aversion in capital markets.
• Tensions between Italy and the EU Commission continued weighing on the Euro. Italian PM Di Maio reiterated that the country is not willing to make changes to key reforms within the budget. November Markit indexes indicated that the region’s growth continues shrinking. German Flash Services PMI at 53.3 vs expected 54.6.German Flash Manufacturing PMI at 51.6 vs expected 52.3. E.U. Flash Manufacturing PMI at 51.5 vs expected 52.0. Flash Services PMI at 53.1 vs expected 53.6.
• Sterling was offered on Friday ahead of a busy Brexit weekend in Brussels. Over the weekend, EU leaders have approved an agreement on the UK’s withdrawal and future relations – insisting it is the “best and only deal possible”. The UK Parliament is expected to vote on the deal on 12 December, but its approval is far from guaranteed. Labour, the Lib Dems, the SNP, the DUP and many Conservatives MPs are set to vote against it. May has appealed to the public to get behind the agreement – saying that although it involved compromises, it was a “good deal that unlocks a bright future for the UK”.
• Canadian inflation also ticked higher, but BoC seen keeping rates steady. Statistics Canada said the annual inflation rate edged up to 2.4% from 2.2% in September. Analysts in a Reuters poll had forecasted it would stay at 2.2%. Canadian CPI m/m at 0.3% vs expected 0.1%. Core Retail Sales m/m at 0.1% vs expected 0.3%.
• WTI crude fell -6.1% to $51.28/bbl, extending its decline to -33.3% from its October 3 high. A Wall Street Journal report indicated that Saudi Arabia and OPEC are considering a disguised production cut to satisfy  Trump. Specifically, OPEC would retain current output targets, first set in 2016, which would imply a production pullback because Saudi Arabia is allegedly overproducing by nearly 1 million barrels a day.

STOCK MARKET WRAP  

• The S&P 500 lost -0.66% on Friday in what was a shortened, low-volume trading day on Wall Street. Friday’s volatile session extended the benchmark index’s weekly losses to -3.8%. FAANG stocks also struggled on Friday with Facebook (FB 131.73, -3.09, -2.3%) and Apple (AAPL 172.29, -4.49, -2.5%) leading the retreat. Apple reportedly resumed production of its 2017 iPhone X amid shrinking demand for its 2018 iPhone X Max model, according to IBN; and has also reportedly lowered the price of its iPhone XR in Japan to increase sales, according to the WSJ. Facebook and Apple shares dropped over -5.0% and 10.0%, respectively, last week.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

The SEC’s Recent Rulings Are More About Exchanges Than ICOs

Last week the SEC reached settlements with AirFox and Paragon in its first cases brought purely for lack of registration, rather than for fraudulent activity. In characteristic overreaction, the market seemed to assume that ICOs were now “over.” As a result, an SEC director revealed that the agency plans to release “plain English” guidance for when a token is and is not a security. The SEC announced a settlement with the founder of EtherDelta, a “decentralized exchange” for ethereum-based tokens, who had been accused of knowingly breaking securities laws by neither registering the platform with the SEC nor operating under an exemption. This was the SEC’s first enforcement action against a token exchange for failing to register. In its statement, the SEC outlines what exactly is considered an “exchange,” and under what circumstances a token trading venue would be required to register.

Bitcoininfo.ru Wins Court Case Against Ban

The owner of Bitcoininfo.ru has won an appeal against a ruling to block the cryptocurrency website. A court in Saint Petersburg has decided that access should be restored and that Nikolay Tonkoshkurov should be compensated for the unlawful actions of the prosecutors and judges who presided over the case. Experts claim the decision may set a precedent in Russia, where hundreds of websites with similar content have been blocked over the past few years. In March 2018, the Saint Petersburg City Court struck down a ban on 40 other Bitcoin-related sites offering information and exchange services, but the Bitcoininfo.ru case was the first to reach the Supreme Court. This is also the first time a government institution has been ordered to pay compensation to a defendant for abusing its authority in the digital space. Bitcoininfo.ru currently redirects to the Cryptorussia.ru domain, which hosts the same content as the original website, including news about cryptocurrencies, information about the legal framework for the crypto sector and the applicable tax regime, as well as exchange rates for major digital coins in both U.S. dollars and Russian rubles.

US Dept. of Defense Research Arm to Host Permissionless Blockchain Workshop

The U.S. Defense Advanced Research Projects Agency (DARPA) will host a two-day blockchain workshop in February, according to an official request for information (RFI). DARPA, the research arm of the U.S. Department of Defense, is looking to to investigate technologies for distributed consensus. As stated in the five-page RFI released by the agency’s Information Innovation Office (I2O), “of particular interest to DARPA are so-called ‘permissionless’ distributed consensus protocols.” Permissionless systems are described in the paper as protocols “where any individual may join in the computation.” The RFI also recognizes the potential of blockchain technology for data security and storage “resilience” for the government department stating “Technologies for distributed consensus protocols have been revolutionized by their prominent role in cryptocurrency and blockchain technologies. These technologies have dramatic implications for the security and resilience of critical data storage and computation tasks, including for the Department of Defense.”

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  

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.