NOTABLE MOVES 

As of Fri, Feb 8, 08:00 Singapore Time zone UTC+8

USDJPY, -0.15%, $109.81
EURUSD, -0.19%, $1.1341
GBPUSD, +0.13%, $1.2951
USDCAD, +0.70%, $1.3307
AUDUSD, -0.05%, $0.7100
NZDUSD, -0.44%, $0.6745

S&P500, -0.94%, 2,706.05
Nasdaq, -1.32%, 6,904.98
Nikkei Futures, -1.91%, 20,472.0      

CURRENCY MARKET WRAP 

• Initial claims for the week ending February 2 decreased by 19,000 to 234,000 (consensus 220,000). Continuing claims for the week ending January 26 decreased by 42,000 to 1.736 million. The key takeaway is that the labor market is still looking pretty good, as initial claims remain low.
• NEC Director Larry Kudlow told Fox Business Thursday morning that there is still “a pretty sizable distance to go in U.S. trade talks.” A White House official then told CNBC that a meeting between Trump and China’s President Xi was “highly unlikely” to happen prior to the March 1 trade deadline. Trump later confirmed that a meeting is not likely before the deadline. 
• Growth concerns resurfaced following a batch of disappointing updates from overseas: (1) the Bank of England voted unanimously to leave its key rate unchanged at 0.75% (expected) and lowered its 2019 GDP growth outlook to 1.2% from 1.7%, (2) the EU Commission cut its 2019 euro area GDP growth forecast to 1.3% from 1.9%, (3) Germany reported a 0.4% month-over- month decline in industrial production in December (expected 0.8%) and (4) the Reserve Bank of India surprisingly cut its key lending rate 25 basis points to 6.25%.
• U.S. Treasury yields declined amid the economic growth concerns. The 2-yr yield decreased six basis points to 2.47%, and the 10-yr yield decreased five basis points to 2.65%. The U.S. Dollar Index increased 0.2% to 96.54. WTI crude lost -2.4% to $52.70/bbl

STOCK MARKET WRAP 

• The S&P 500 lost -0.94% on Thursday, as recurring concerns about a slowdown in global growth and the prospects of a U.S.-China trade deal weighed on investor sentiment. In addition, an underlying sense that the market was due for a pullback also fuelled broad-based profit taking. The S&P 500 energy (-2.1%), information technology (-1.4%), and materials (-1.4%) sectors led Thursday’s retreat. Conversely, the defensive-oriented, and higher-yielding, utilities (+1.3%) and real estate (+0.8%) sectors were the lone groups to finish with gains.
• In earnings news, Twitter (TWTR 30.80, -3.36, -9.8%), Fiat Chrysler (FCAU 15.23, -2.12, -12.2%), and Tapestry (TPR 33.48, -5.83, -14.8%) all posted steep losses after the companies disappointed investors with their results. On the other hand, Chipotle Mexican Grill (CMG 585.78, +59.72) jumped 11.4% after it impressed investors with a strong report and reassuring outlook.

BLOCKCHAIN AND CRYPTOCURRENCY NEWS

State-Issued Digital Currencies Can Squeeze Banks, Says South Korea Central Bank
South Korea’s central bank issued a warning over central bank digital currencies (CBDCs) a week after saying it would not introduce one itself. CBDCs, which are also known variously as state-backed or government-backed digital currencies, involve a blockchain-based version of a country’s fiat currency either replacing or circulating in tandem with paper notes and coins. A number of governments are currently examining the feasibility of using a CBDC, while South Korea formally decided against the measure in late January. The decision came as a result of a six-month consultation process from Bank of Korea (BoK). Now, the central bank has claimed in a report that a CBDC would result in mass withdrawals of funds from private institutions, squeezing liquidity and pushing up interest rates. Seoul has opted not to make significant changes to its stance on cryptocurrency as a whole in recent weeks. 

Two Investment Firms Launch ETF Tracking Cloud Computing and Blockchain Companies
United States-based Investment management firm AdvisorShares and investments advisory company Sabretooth Advisors will jointly launch an exchange-traded fund (ETF) that tracks tech companies, including those involved with blockchain and cloud computing. ETFs are marketable securities that track a basket of assets proportionately represented in the fund’s shares. ETFs are offered on all asset classes, including traditional investments and alternative assets like commodities or currencies, also enabling investors to short markets or to gain leverage. The idea of the new AdvisorShares Sabretooth ETF (ticker: BKCH) is that entities deploying cloud computing and involved with emerging technologies like blockchain could reach increased profitability and rises in share prices within a reasonable time. Many see the emergence of cryptocurrency and blockchain ETFs, among other derivatives, as a sign that those markets are maturing.

Major Swiss Stock Exchange SIX to Launch New Blockchain-Powered Digital Exchange
Switzerland’s principal stock exchange SIX Swiss Exchange will test blockchain integration for its forthcoming parallel digital trading platform SDX in the second half of this year. SIX Swiss Exchange sees roughly 5.19 billion Swiss Francs (CHF) (~$5.18 billion) in daily turnover, and has a market capitalization of over 1.67 trillion CHF ~($1.6 trillion). CEO Jos Dijsselhof said that the company had chosen the technology for the time efficiency and improved security it can offer across all stages of stock trading and settlement. Dijsselhof added that wholly digital, blockchain-powered stock trading will not only minimize risks, but widen the range of tradable titles, affirming his ambition that SIX would succeed in building “a whole new stock market on the blockchain with completely integrated trading, handling and custody of digital assets”.  SIX expects its blockchain-based SDX digital exchange to supersede its existing marketplace within a decade.

NOTABLE MOVES 

As of Thu, Feb 7, 08:00 Singapore Time zone UTC+8

USDJPY, +0.01%, $109.99
EURUSD, -0.41%, $1.1368
GBPUSD, -0.07%, $1.2934
USDCAD, +0.71%, $1.3219
AUDUSD, -1.71%, $0.7111
NZDUSD, -1.82%, $0.6769

S&P500, -0.22%, 2,731.61
Nasdaq, -0.37%, 6,997.62
Nikkei Futures, +0.20%, 20,872.0

CURRENCY MARKET WRAP 

• U.S. Treasuries ended the day near their unchanged marks. The 2-yr yield decreased one basis point to 2.53%, and the 10-yr yield remained unchanged at 2.70%. The U.S. Dollar Index increased 0.3% to 96.38. WTI crude rose 0.4% to $53.99/bbl.
• Aussie was the biggest loser, dropping -1.71%, this was the largest decline in more than a year. After a relatively benign monetary policy statement, RBA Governor Lowe surprised investors when he said the interest rate outlook is now more evenly balanced. He added that global risks and domestic housing market consumption requires the central bank to have the budget to respond to any downturn. In doing so, he has not only ruled out a 2019 rate hike but also fuelled modest expectations for easing. With retail sales falling, service and construction activity contracting, the RBA’s cautious outlook solidified the top in Aussie.
• Kiwi had been tracking Aussie, but was heavily offered in a matter of seconds following a significantly weaker than expected employment report. Economists had been looking for the unemployment rate to rise from 3.9% to 4.1% but instead it rose to 4.3% from an upwardly revised 4% (from 3.9%) reading. Employment increased less than expected and the participation rate declined in Q4. Average hourly earnings growth also slowed to 1% from 1.4%. Although dairy prices rebounded today, this report validates the central bank’s decision to keep interest rates on hold for the foreseeable future.

STOCK MARKET WRAP 

• The S&P 500 lost -0.22% on Wednesday in a lackluster trading session. The benchmark index traded with modest losses nearly the entire day with price action dictated by the underperformance of the entertainment software stocks, the outperformance of the semiconductor stocks, and an underlying sense that the market was due for a breather.
• Entertainment software stocks dragged on the communication services sector following earnings reports from Electronic Arts (EA 80.21, -12.31, -13.3%) and Take-Two Interactive (TTWO 92.53, -14.76, -13.8%). The two companies disappointed investors with quarterly guidance that was lower than expected, which reportedly fuelled competition concerns. Dow component Walt Disney (DIS 111.41, -1.25) for its part lost -1.1% despite beating earnings expectations.
• The heavily-weighted tech sector derived its relative strength from the outperformance of chip stocks. The Philadelphia Semiconductor Index rose 2.6%. It wasn’t the downside guidance for the March quarter from Microchip (MCHP 89.31, +6.07, +7.3%) and Skyworks Solutions (SWKS 84.69, +8.73, +11.5%) that pleased investors. Instead, it was Microchip’s contention that the March quarter should be a “bottom” for revenues that presumably fuelled broad-based buying interest.
• Separately, Snap (SNAP 8.59, +1.55) made headlines, surging 22.0% after the company provided a better-than-feared indication of its daily active users in its quarterly report. Specifically, the number of daily active users was sequentially flat at 186 million in the fourth quarter. Snap added that it doesn’t expect to see a sequential decline in the first quarter.

BLOCKCHAIN & CRYPTOCURRENCY NEWS 

US Crypto Exchange Coinbase Adds Bitcoin Support to Coinbase Wallet App
As explained by the crypto exchange, Coinbase Wallet is slightly different from the main app, Coinbase (or Coinbase.com). With the latter, the cryptocurrencies purchased by customer and the private keys are stored by Coinbase. With Coinbase Wallet, users stores their own crypto protected by their unique private keys. The new update for Coinbase Wallet will be rolled out for iOS and Android next week. Bitcoin support will be activated by default, as soon as users choose to receive the coin to the wallet. The users’ private keys will be encrypted on the phone using Secure Enclave technology. The announcement states that Coinbase Wallet supports both SegWit and Legacy addresses and is considering adding add Bitcoin Cash (BCH), Litecoin (LTC), and other major cryptocurrencies.

Wall Street Blockchain Alliance Joins Enterprise Blockchain Consortium R3
The Wall Street Blockchain Alliance (WSBA) has joined blockchain consortium R3 to develop applications and solutions on their Corda platform. According to a statement made by the CEO of R3, David E. Rutter, the WSBA and R3 will collaborate in order to “advocate a strategic approach to collaborating with regulatory bodies so that financial markets, and beyond can gain the full benefits of blockchain’s capabilities.” R3, an enterprise blockchain software firm with over 300 partners, has developed Corda, an open-source blockchain platform for both the private and public sectors across multiple industries.

US Crypto Exchange Coinbase Launches Paypal Withdrawals Support for EU Users
Major United States crypto exchange and wallet provider Coinbase is launching support for European Union residents to make fiat currency withdrawals to online payment system PayPal. Coinbase had first rolled out PayPal withdrawal support for U.S. users last month. The European extension of the service will reportedly apply to both E.U. residents and those living in European Free Trade Association countries — Iceland, Liechtenstein, Norway and Switzerland. Coinbase is currently looking to diversify its crypto support, as well as fiat gateways — in December, the exchange revealed it was exploring expanding its listed assets to over 30 cryptocurrencies in as many jurisdictions as regulatory authorities allow.

 NOTABLE MOVES  

As of Sat, Feb 2, 08:00 Singapore Time zone UTC+8

USDJPY, +0.57%, $109.50
EURUSD, +0,09%, $1.1457
GBPUSD, -0.09%, $1.3090
USDCAD, -0.24%, $1.3092
AUDUSD, -0.28%, $0.7253
NZDUSD, -0.29%, $0.6898

S&P500, +0.09%, 2,706.53
Nasdaq, -0.25%, 7,263.87
Nikkei Futures, -0.14%, 20,720.0

CURRENCY MARKET WRAP  

• January nonfarm payrolls increased by 304,000 (consensus 165,000), and the January ISM Manufacturing Index improved to 56.6% (consensus 54.1%) from 54.3% in December. The key takeaway from the January report is that, even with revisions that reduced total job gains in November and December by 70,000, job gains have averaged a solid 241,000 per month over the last three months, offering some data-based justification to think this economic expansion has more room to run with consumer spending providing support. The key takeaway from the ISM report is that the January increase was driven by solid growth in New Orders and Production, which suggests the U.S. manufacturing sector is holding up well despite concerns about the pace of global growth. Average Hourly Earnings m/m decreased to 0.1% (consensus 0.3%). Even though the labor market is on fire, wage growth is slowing and there’s a good chance of downward revisions next month. 
• The strong jobs data sparked selling interest in the bond market, driving yields higher. The 2-yr yield rose four basis points to 2.50%, and the 10-yr yield rose six basis points to 2.69%.

STOCK MARKET WRAP 

• Wall Street finished mixed on Friday, as investors digested better-than-expected economic data while shares of Amazon (AMZN 1626.23, -92.50, -5.4%) fell on disappointing guidance. Amazon reported fourth-quarter earnings of $6.04 a share on revenue of $72.4 billion. Analysts expected earnings of $5.65 a share on revenue of $71.88 billion, according to FactSet. It was the second consecutive holiday quarter that Amazon beat estimates, after not having done so since 2009. Amazon Web Services, though, continued to be Amazon’s profit and growth engine. The cloud-computing arm reported sales growth of 45%, to $7.43 billion from $5.11 billion, and operating income that increased 61%, to $2.18 billion from $1.35 billion.
• The S&P 500 added 0.09%, increasing its weekly gain to 1.6%. The S&P 500 energy (+1.8%), information technology (+0.6%), and financial (+0.5%) sectors outperformed the broader market. Conversely, the consumer discretionary (-1.8%) and real estate (-0.7%) sectors underperformed. The energy sector’s outsized gain was the result of higher oil prices ($55.28/bbl, +$1.51, +2.8%) and a positive reaction to earnings beats from Dow components Exxon Mobil (XOM 75.92, +2.64, +3.6%) and Chevron (CVX 118.37, +3.72, +3.2%). Fellow Dow component Merck (MRK 76.45, +2.02) rose 2.7% after it also beat earnings expectations.

BLOCKCHAIN & CRYPTOCURRENCY NEWS

US Securities Regulator Solicits Blockchain Analytics Companies for Data Review
The United States Securities and Exchange Commission (SEC) is seeking sources for blockchain data and its analysis, a statement issued by the agency revealed on Jan. 31. According to the statement, the SEC is trying to find businesses able to provide blockchain data to support its risk monitoring and compliance enforcement activity, as well as inform the commission about digital assets. Last month, the agency announced that cryptocurrencies are one of the its top examination priorities for the current year.

Unconfirmed: CoinLab Increases Mt. Gox Claim from $75 Million to $16 Billion
Bitcoin business incubator CoinLab has reportedly filed a 1.7 trillion JPY ($16 billion) claim against the now-defunct cryptocurrency exchange Mt. Gox, according to an alleged photo of the filing document posted on Reddit on Feb. 1. As Cointelegraph reported in its Mt. Gox recap in March last year, in 2013, CoinLab, a former business partner of the exchange, sued the company for $75 million, claiming breach of contract. The contract stipulated that CoinLab would take over the American customers of Mt. Gox, but it never happened.

Bitcoin Futures Expired Last Week, Did It Affect $10 Billion Plunge of Crypto Markets?
On Jan. 29, the valuation of the crypto market plunged by more than $10 billion within a 48-hour period, from $121 billion to $111 billion. Major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) recorded losses in the range of 5 to 10 percent against the United States dollar, demonstrating poor momentum. Throughout the past several months, the cryptocurrency market has demonstrated volatility in a low price range, unable to break out of key resistance levels.

NOTABLE MOVES 

As of Fri, Feb 1, 08:00 Singapore Time zone UTC+8

USDJPY, -0.18%, $108.83
EURUSD, -0.27%, $1.1447
GBPUSD, -0.05%, $1.3110
USDCAD, -0.15%, $1.3129
AUDUSD, +0.33%, $0.7271
NZDUSD, +0.30%, $0.6915

S&P500, +0.86%, 2,704.12
Nasdaq, +1.37%, 7,281.74
Nikkei Futures, +0.76%, 20,767.0    

CURRENCY MARKET WRAP 

• The Employment Cost Index showed compensation costs for civilian workers increased 0.7% (consensus +0.8%), seasonally adjusted, in the fourth quarter, down from 0.8% in the third quarter. Wages and salaries, which comprise about 70% of compensation costs, increased 0.6%, while benefit costs jumped 0.7%. The key takeaway from the report is that it showed an acceleration in the growth of wages and salaries for civilian workers, which increased 3.1% for the 12 months ending in December 2018, versus 2.5% for the 12-month period ending in December 2017.
• The Treasury market seems to be pricing in a softer economic outlook, which has been reflected in the sharp drop in yields following Wednesday’s FOMC decision and Fed Chair Powell’s press conference. After which, both the 2-yr yield and the 10-yr yield decreased four basis points Wednesday, the 2-yr yield fell seven basis points to 2.46% today while the 10-yr yield fell six basis points to 2.64%. The U.S. Dollar Index increased 0.2% to 95.57.
• The Euro did poke through the key 1.1500 level, but the rally stalled and reversed after horrid German Retail Sales data which saw a decline of -2.1% YoY vs a consensus expectation of 1.5% YoY gain. This was the sharpest monthly drop since 2007 and a clear warning that the German consumer is tightening the purse strings even as the overall labor markets are at multi-year lows in unemployment. 

STOCK MARKET WRAP 

• The S&P 500 gained 0.86% on Thursday, as another batch of better-than-feared earnings added to the optimism surrounding U.S.-China trade relations and a dovish-minded Fed. The Dow Jones Industrial Average, however, lost -0.1% due in large part to negative price action in Microsoft (MSFT 104.43, -1.95, -1.8%), Visa (V 135.01, -2.59, -1.9%), and DowDuPont (DWDP 53.81, -5.47, -9.2%) following their earnings reports. The S&P 500 communication services sector was easily the best-performing group on Thursday, rising 3.7% on the strength of Facebook (FB 166.69, +16.27, +10.8%) and Charter Communications (CHTR 331.05, +41.14, +14.2%). The utilities (+2.1%) and consumer staples (+1.8%) sectors also outperformed the broader market.
• General Electric (GE 10.16, +1.06) was another headline stock, climbing 11.7%, after the company beat revenue expectations and pleased investors with a $4.9 billion free cash flow figure and a lower-than-expected $1.5 billion settlement with the Department of Justice.

BLOCKCHAIN & CRYPTOCURRENCY NEWS 

South Korean Fintech Firm Launches ‘First’ Won-Backed Stablecoin

South Korea-based fintech firm BxB Inc. has launched the first supposed stablecoin backed by the Korean won. There was an initial beta soft launch of the coin on Airswap, a decentralized exchange platform, before the tokens were released on the global and Korean exchange. The coin, KRWb, is reportedly the first stablecoin produced in South Korea to be backed by the national currency, the won. The coin is purportedly supported with the won at a 1:1 ratio. BxB Inc purportedly managed the mining and burning of KWRb in order to better assure liquidity via an Ethereum-based smart contract process using a multi-signature checkpoint and a third party auditor. The initial deposit of 400 million won ($360,000) was collateralized to the equivalent value of KRWb tokens. The funds were generated by BxB Inc, as well as investment from Singapore-based BxB Capital PTE Ltd. KRW will reportedly be available globally to any user to an ERC-20 compatible service. Users do not need access to the won in order to transact with the KRWb. BxB Inc. is reported to be in ongoing discussions with South Korean and global exchanges, including plans to announce additional listings during Q1 2019. The KRWb is live on three exchanges.

Danish Government’s Energinet Signals Iota Deal to Improve Energy Sector Offerings

Danish state-owned energy company Energinet has expanded its partnership with distributed ledger network Iota to investigate use of its technology in new areas. Energinet, which is an independent enterprise under Denmark’s Climate and Energy Ministry, wants to examine how it could leverage Iota’s Tangle technology in the energy and Internet of Things (IoT) markets. The two entities have worked together on a data marketplace initiative since late 2017, a larger project involving other companies. Iota’s product offering is specifically geared to IoT, and Energinet looks to create new solutions based on IoT for emerging phenomena, such as green energy and electric vehicles. This collaboration will include services applicable to Energy and adjacent areas such as smart cities, smart buildings and mobility. This week, Japanese IT giant Fujitsu announced it had completed a trial of blockchain technology with a Japanese energy supplier aimed at improving shared electricity structures.

Ethereum-Based ‘Wrapped’ Token Backed by Bitcoin Launches

Wrapped Bitcoin (WBTC), an Ethereum (ETH)-based token backed by Bitcoin (BTC), has launched today, Jan. 31, according to a press release on the network’s website. The currency is a joint initiative by blockchain security firm BitGo, Kyber Network liquidity protocol and others. BitGo announced the development of the coin backed 1:1 with Bitcoin in October 2018. A statement by the firm then said that Wrapped Bitcoin will provide users with a “wide variety of new decentralized use cases including on decentralized exchanges (DEXs), as collateral for stablecoins or lending, for payments and flexible smart contracts within the Ethereum ecosystem.” WBTC is an ERC-20 token, which are tokens designed and used solely on the Ethereum platform that make the streamline the creation of new tokens. ERC-20 tokens provide a sort of template by which developers can build a new token, sparing them from coding a new crypto from the ground up. Wrapped Bitcoin will purportedly allow for new applications and use cases for Bitcoin on the Ethereum network. All WBTC smart contracts have been audited by third-party firms and the proof of reserve is showing an exact 1:1 ratio of minted WBTC to BTC is observable on-chain.

NOTABLE MOVES 

As of Thu, Jan 31, 08:00 Singapore Time zone UTC+8

USDJPY, -0.40%, $108.96
EURUSD, +0.50%, $1.1489
GBPUSD, +0.40%, $1.3122
USDCAD, -0.93%, $1.3144
AUDUSD, +1.36%, $0.7254
NZDUSD, +0.89%, $0.6895

S&P500, +1.55%, 2,681.05
Nasdaq, +2.20%, 7,183.08
Nikkei Futures, +1.13%, 20,862.5    

CURRENCY MARKET WRAP 

• The ADP National Employment Report showed an increase of 213,000 in January (consensus 180,000), and the December reading was revised to 263,000 (from 271,000).
• The FOMC voted unanimously to keep the fed funds rate unchanged at a target range of 2.25% to 2.50%, as expected. The S&P 500 more than doubled its gains from 0.8% to 1.7% in the time between the FOMC releasing its policy directive at 2:00 p.m. ET and Fed Chair Powell’s follow-up press conference at 2:30 p.m. ET to explain the FOMC’s thinking. The underlying message from that decision, and Powell’s press conference, is that the market need not fear the Fed (for the time being), as the Fed is content to be patient with its policy approach and is open to curtailing its balance sheet normalization effort if necessary. The Fed’s dovishness sent U.S. Treasuries in the belly of the curve to session highs. Longer-dated Treasuries were less affected. The 2-yr yield, which was up as much as two basis points, decreased four basis points to 2.53%. The 10-yr yield, which was up as much as two basis points, decreased two basis points to 2.70%. The U.S. Dollar Index also fell on the news, losing -0.4% to 95.43.
• Meanwhile trade talks aren’t going anywhere. Trump is under pressure to make a deal but with the Huawei charges, it is not clear how serious he really is. US and China plan to hold one to two more rounds of talks before the March 1 deadline.
• Aussie was bid on the back of better than expected inflation data. Although consumer price growth slowed year over year, the decline was less than expected thanks to a 0.5% increase in quarterly growth (Australia CPI q/q  0.5% vs expected 0.4%). The Reserve Bank said the next move in rates will be higher and this latest report supports their positive bias.

STOCK MARKET WRAP 

• The S&P 500 began the day comfortably higher as Apple’s (AAPL 165.25, +10.57, +6.8%) better-than-feared earnings and Boeing’s (BA 387.72, +22.81, +6.3%) impressive report fuelled broad-based buying interest. The benchmark index then added as much as 1.9% after the Federal Reserve provided some market-friendly commentary before finishing up 1.55%.
• Specifically, Apple reported in-line Q1 results and guided Q2 revenue that was towards the low end of expectations, yet that was apparently enough to placate investors who found some comfort in the solid growth reported for the company’s services business. Boeing for its part exceeded Q4 revenue and earnings estimates by a wide margin and issued upbeat FY19 guidance.
• Advanced Micro Devices (AMD 23.09, +3.84) joined Apple with a better-than-feared report, which catapulted the stock 20.0%, and provided strong support for the Philadelphia Semiconductor Index (+2.9%) and the heavily-weighted information technology sector.
• Alibaba (166.82, +6.34%) reported EPS of $1.77 compared to $1.67 expected, and revenue of $17 billion vs $17.7 billion expected for its fiscal third quarter ended Dec. 31. Revenue from its cloud-computing business increased 84% from the year-ago period to $962 million. Revenue from its core e-commerce operation rose 40% to $14.95 billion. Alibaba said it ended the quarter with 699 million mobile monthly active users, up 33 million from the previous quarter.
• Facebook (167.74, +11.52%) posted a solid earnings and revenue beat for the fourth quarter, and investors applauded, sending shares up as much as 11% in after-hours trading. The social network giant reported EPS of $2.38 compared to $2.18 expected, while revenue of $16.9 billion beat estimates for $16.4 billion. Daily active users rose 9% to 1.52 billion, in-line with consensus. After several quarters of declining or flat user growth in Canada and the U.S., Facebook said it added 1 million daily members in those territories.

BLOCKCHAIN & CRYPTOCURRENCY UPDATES 

Japanese IT Giant Fujitsu Completes Test of Blockchain Electricity Sharing Project

Japanese IT firm Fujitsu has successfully trialed a blockchain-based solution to address inefficiencies in electricity surplus management. Fujitsu, which partnered with local power distribution company ENERES, used blockchain to increase the success rates of power sharing, which is administered through a process known as Demand Response (DR). An agreement between utilities companies and consumers, DR aims to anticipate periods of peak demand by ensuring surplus power is available to those who need it. Fujitsu has now devised a system in which electricity consumers can efficiently exchange among themselves the electricity surpluses they have produced through their own electricity generation or power savings. The move is not the first venture into blockchain for Fujitsu, which launched a blockchain-based loyalty scheme for the retail sector in June last year, followed by plans for settlement infrastructure for nine Japanese banks in October.

SWIFT CEO Reveals Plans to Integrate Blockchain Consortium R3 Tech

Major global banking payments network SWIFT has revealed it plans to integrate technology from enterprise blockchain software firm R3. Speaking at the Paris Fintech Forum on Jan. 30, CEO Gottfried Leibbrandt said SWIFT would be formally announcing its plans for a Proof-of-Concept (PoC) with R3. Leibbrandt was reportedly participating in the panel alongside Brad Garlinghouse, CEO of Ripple — which has long touted itself as a blockchain competitor to SWIFT’s global interbank network, with Garlinghouse just recently commenting that “what we are doing on a day-to-day basis is in fact taking over SWIFT.” SWIFT last year took part in several blockchain pilots, but has not to date substantially rehauled its legacy wire transfer architecture.

US Blockchain Firm Introduces Wallet for Digital Assets and Securities

San Francisco-based blockchain firm TokenSoft has rolled out a beta version of its wallet for digital assets and digital securities. The new product called Knox Wallet provides cold storage and a self-custody platform for managing multiple assets, including both cryptocurrencies such as Bitcoin (ETH) and Ethereum (ETH), as well as tokenized assets such as real estate, equity, or debt. The wallet is now undergoing a testing phase, while the general availability launch is set for the first quarter of 2019. Back in December, TokenSoft invested in a broker-dealer that is compliant with the United States Securities and Exchange Commission (SEC). The investment purportedly enabled TokenSoft to offer issuers the option to host a token sale themselves or work with a broker-dealer to carry out the sale on their behalf.

NOTABLE MOVES 

As of Wed, Jan 30, 08:00 Singapore Time zone UTC+8

USDJPY, +0.07%, $109.43
EURUSD, -0.01%, $1.1433
GBPUSD, -0.71%, $1.3070
USDCAD, +0.03%, $1.3268
AUDUSD, -0.16%, $0.7154
NZDUSD, -0.04%, $0.6827

S&P500, -0.15%, 2,640.00
Nasdaq, -0.81%, 7,028.29
Nikkei Futures, +0.21%, 20,682.5

CURRENCY MARKET WRAP 

• The Conference Board’s Consumer Confidence Index dropped to 120.2 in January (consensus 125) from a downwardly revised 126.6 (from 128.1) in December. The key takeaway from the report is that it showed that the outlook among consumers was dampened by the volatility in financial markets and the government shutdown, which threatens to register in consumer spending data that would be a drag on first quarter GDP.
• U.S. Treasuries edged higher, pushing yields lower across the curve. The 2-yr yield decreased one basis point to 2.57%, and the 10-yr yield decreased three basis points to 2.71%. The U.S. Dollar Index gained 0.1% to 95.82. WTI crude rose 2.4% to $53.22/bbl.
• UK Parliament backed an amendment to renegotiate a Brexit deal, according to Bloomberg. The outcome produced little effect on U.S. markets, but the voting was seen as a victory for UK Prime Minister Theresa May. The offset to the news is that the EU has said the Brexit deal is not renegotiable, particularly with respect to the Irish backstop worked out previously in the Withdrawal Agreement.

STOCK MARKET WRAP 

• Wall Street closed on a mixed note on Tuesday, with the S&P 500 losing -0.15%, ahead of a big batch of earnings reports. The S&P 500 communication services (-1.1%), information technology (-1.0%), and consumer discretionary (-0.8%) sectors underperformed the broader market. Conversely, the industrials (+1.4%), materials (+1.1%), and real estate (+0.8%) sectors outperformed.
• Dow component 3M (MMM 196.95, +3.75, +1.9%) for its part lowered its fiscal 2019 guidance, in part due to slowing segments in China. The stock outperformed, though, helped by an earnings beat and by the view that its guidance cut was better than feared. Fellow Dow components Pfizer(PFE 40.77, +1.24, +3.1%) and Verizon (VZ 53.28, -1.79, -3.3%) also reported better-than-expected profit estimates and issued underwhelming guidance. Pfizer guided fiscal 2019 earnings and revenue below consensus, and Verizon issued mixed guidance for fiscal 2019. In other earnings news, Xerox (XRX 27.07, +2.77, +11.4%), Corning (GLW 33.72, +3.36, +11.1%), andWhirlpool (WHR 136.49, +12.03, +9.7%) all climbed after impressing investors with their corporate results.
• Apple shares jump after barely beating on earnings. Earnings per share for the December quarter came in at $4.18, slightly above a $4.17 consensus. Revenue came in at $84.3 billion, above an $83.97 billion consensus after the tech giant forecast on Jan. 2 that it expected revenue of about $84 billion, roughly $7 billion less than expected, largely due to disappointing sales in China. For the March quarter, Apple said it expects revenue of $55 billion to $59 billion, slightly less than a $58.98 billion consensus.
• Revenue for the company’s services segment — that includes Apple Pay, Apple Music and iCloud storage — topped $10.9 billion. Marking a 19% YoY increase. Apple reported a gross margin in its services segment of 62.8%. A growth rate of 19% for the category is at the lower end of recent growth rate. Apple grew services revenue year over year by 17% last quarter, and 18% in the year-ago quarter, but has seen growth rates as high as 34% within the last year and a half. Chief Financial Officer Luca Maestri said on the company’s earnings call that Apple now has 900 million installed iPhones in use around the world, and 1.4 billion total installed devices. Apple indicated it will start reporting installed device numbers on a more regular basis. Shares were rose 5.3% to $163.27 after-hours on Tuesday.

BLOCKCHAIN & CRYPTOCURRENCY NEWS 

Nvidia Decreases Q4 Revenue Estimates Citing Crypto Mining Decline, Conditions in China

Taiwan-based computer hardware producer Nvidia updated its financial estimates for Q4 for the fiscal year of 2019. The company is reflecting weaker forecasted sales in its gaming and data center platforms, which comes from excess mid-range channel inventory following the slump in cryptocurrency markets. Q4 revenue is expected to be at $ 2.20 billion, opposed to the previous projection of $2.70 billion according to a statement released by Nvidia on Jan 28. Jensen Huang, Nvidia founder and CEO, said in the press release, “Q4 was an extraordinary, unusually turbulent, and disappointing quarter.” In addition to a lack of crypto-related business, Nvidia also cites “deteriorating conditions” in China as a indicator of lower-than-expected revenue from gaming GPU sales in Q4. The company had experienced a massive sell-off of stocks at the end of 2018, which sank the company’s stock price by 54 percent.

Desktop Crypto Asset Manager Ledger Live Launches Mobile App Version

French cryptocurrency hardware wallet manufacturer Ledger has released a dedicated mobile app for some of its products. Dubbed Ledger Live, the app previously available for desktop is now available for Android and iOS mobile devices, the company reports. The app allows users of Ledger Nano X wallets to use their wallet without the need for a cable via their mobile device and a Bluetooth connection. The company promised full functionality would roll out to all users at a later date, but in the case of Nano S, they would have to use an Android phone to communicate with their wallet. In the future, Ledger Nano S users (Android smartphones only) will be able to transact as well through the use of an OTG cable. Ledger’s app shares some similarities with competitor offerings such as Trezor’s Bridge interface, which the company rolled out across its wallet family last year.

BitTorrent Tokens Sold Out in Under 15 Minutes, Netting Over $7 Mln

The BitTorrent token (BTT) sale on the Binance Launchpad platform concluded, netting $7.1 million dollars with the sale of 50 billion tokens in under 15 minutes. Binance announced the conclusion of the sale in an official blog post. BitTorrent is a protocol for peer-to-peer file sharing, allowing users to distribute files such as music or videos over the internet.BTT is based on a Tron TRC-10 token, and will be used on the platform to “transact in computing resources shared between BitTorrent clients and any other participating service requesters and service providers.“The BitTorrent tokens were sold in two simultaneous sessions on Binance Launchpad, one for buyers using Binance’s native token, Binance Coin (BNB), and the other for buyers using Tron (TRX). Each token was priced at $0.00012. Binance CEO and founder Changpeng Zhao said that the sale would have ended much sooner, had technical issues not surfaced on the Launchpad website.

NOTABLE MOVES 

As of Tue, Jan 29, 08:00 Singapore Time zone UTC+8

USDJPY, -0.14%, $109.26
EURUSD, +0.15%, $1.1430
GBPUSD, -0.39%, $1.3156
USDCAD, +0.30%, $1.3262
AUDUSD, -0.19%, $0.7165
NZDUSD, -0.10%, $0.6832

S&P500, -0.78%, 2,643.85
Nasdaq, -1.11%, 7,085.69
Nikkei Futures, -1.04%, 20,525.0        

CURRENCY MARKET WRAP 

• There were no notable prints on Monday. This week however, is shaping up to be a busy week of big happenings that will include a swarm of earnings reports, U.S-China trade talks, another vote on the Brexit plan in the UK Parliament, an FOMC meeting and press conference, and the January employment report.
• U.S. Treasuries did not stray too far from their unchanged marks throughout the day despite the slide in equities. The lack of a flight-to-safety bid was indicative of a stock market succumbing to profit taking rather than panic selling. The 2-yr yield decreased two basis points to 2.58%, and the 10-yr yield decreased one basis point to 2.74%. The U.S. Dollar Index lost -0.10% to 95.75.

STOCK MARKET WRAP 

• The S&P 500 declined as much as 1.5% on Monday, as warnings from Caterpillar (CAT 124.37, -12.49, -9.1%) and NVIDIA (NVDA 138.01, -22.14, -13.8%) catalyzed early selling efforts.  The benchmark index, however, ended the day down -0.78% and finished near its best levels of the session. The S&P 500 information technology (-1.4%), communication services (-1.2%), and health care (-1.1%) sectors underperformed the broader market. Conversely, the real estate (+1.0%) and consumer staples (+0.5%) sectors were the lone groups to finish in the green. Specifically, Caterpillar came up well short of Q4 earnings estimates and issued fiscal 2019 earnings guidance below expectations. NVIDIA lowered its fiscal Q4 revenue guidance below consensus, citing weaker-than-expected sales in segments like gaming and datacenter.
• While buyers were largely absent during the morning trade, they returned in the afternoon session and helped the major indices pare their losses in what has become a familiar buy-the-dip trade.

BLOCKCHAIN & CRYPTOCURRENCY NEWS

NYSE Operator Partners With Blockstream to Launch Crypto Tracking Tool for Investors

The Intercontinental Exchange (ICE) has partnered with major global blockchain firm Blockstream to launch its Cryptocurrency Data Feed product. Founded in 2000 in the United States, the Intercontinental Exchange is a global company that owns exchanges for financial commodity markets and operates 23 global exchanges, including the New York Stock Exchange (NYSE). According to the announcement, ICE’s new crypto data service enables real-time and historical data for more than 60 cryptocurrencies from major trading markets and exchanges worldwide. The new partnership intends to provide global investors with a comprehensive tool to monitor data for the most actively and widely traded cryptocurrencies. The new service is backed by ICE’s Secure Financial Transaction Infrastructure (SFTI) tool, which claims to eliminate downtime for investors and enable immediate notifications in case of an emergency.

Belarus’ Largest Bank Considers Setting up Crypto Exchange, Says Chairman of Board

Belarusbank, the largest bank in Belarus, is considering setting up a crypto exchange. According to the bank’s chairman of the board Viktor Ananich, efforts are now being made to explore the possibility of setting up a cryptocurrency exchange. Ananich claimed that digitization is one of the most important focuses of Belarusbank in 2019, noting that the bank is also working with mobile carriers, aiming to expand its services. The chairman emphasized that the banking sector should keep up with the digital industry, as the space is evolving very fast. Owned by the State Property Committee of Belarus, Belarusbank is the leading banking institution in the country, according to its volume of equity, assets, loans and deposits. Belarusbank was reportedly estimated to have $13.51 billion in operating assets in 2017. On Jan. 15, reportedly the first crypto trading platform that allows users to purchase tokenized traditional assets such as shares and gold with cryptocurrencies was launched in Belarus. The project is backed by two firms, Larnabel Ventures and VP Capital. By Jan. 16, the platform reportedly issued 150 various types of tokens, while the company expects to eventually list 10,000 types of assets.

South Korea Report: Major Exchanges Join Forces to Combat Money Laundering

Four major South Korean cryptocurrency exchanges have reportedly joined their forces in order to combat money laundering. Bithumb, Upbit, Korbit and Coinone have established a hotline where users can share information on any unusual trading or payments that could possibly be related to crimes, such as pyramid schemes. According to an anonymous representative of one of the operators, the exchanges will thereby be able to instantly check any suspicious transactions and immediately block the related accounts.

NOTABLE MOVES  

As of Sat, Jan 26, 08:00 Singapore Time zone UTC+8

USDJPY, -0.08%, $109.55.
EURUSD, +0.96%, $1.1415    
GBPUSD, +1.05%, $1.3203
USDCAD, -0.97%, $1.3219
AUDUSD, +1.24%, $0.7183
NZDUSD, +1.12%, $0.6839    

S&P500, +0.85%, 2,664.76    
Nasdaq, +1.29%, 7,164.86                     
Nikkei Futures, +1.07%, 20,780.0  

CURRENCY MARKET WRAP  

• After being shutdown for 35 days, Trump announced on Friday that a deal has been reached to reopen the government for 3 weeks until February 15th. In this time, he expects both Democrats and Republicans to work together on a Homeland Security package that will include funding for border walls. The agreement will include back pay for furloughed workers, which is good news but the debate on the wall will resume in a few weeks and having gotten what they wanted with very little concessions, the Democrats won’t turn around and support border funding easily. Risk currencies rallied after Trump’s announcement but the Dollar pulled back as investors will look forward to a barrage of economic releases that should confirm the slowing economy.
  
• U.S. Treasuries ended the day on a lower note, pushing the 2-yr yield and the 10-yr yield up four basis points each to 2.60% and 2.75%, respectively. The U.S. Dollar Index fell -0.9% to 95.75, pulled back by a rebound in the euro. WTI crude rose 0.9% to $53.62/bbl.

STOCK MARKET WRAP 

• The S&P 500 gained 0.9% on Friday as positive-sounding headlines, which included the temporary reopening of the government, helped lift investor sentiment. Friday’s gains helped pare the benchmark index’s weekly losses to 0.2%. Nine of the 11 S&P 500 sectors closed the day in positive territory with the cyclical materials (+1.9%), information technology (+1.5%), and industrial (+1.3%) groups setting the pace. Conversely, the utilities (-1.3%) and consumer staples (-0.2%) sectors were the lone groups to finish in the red.
• Stocks jumped at the open on initial speculation that a deal to reopen the government was imminent; hope the Federal Reserve may be getting close to the end of its balance sheet normalization effort; and a contention from Treasury Secretary Mnuchin that the U.S. is making progress with China trade talks. Notably, news hit in the afternoon session that an agreement had been struck to provide funding, minus border security funding, to re-open the government through February 15.  Negotiations over border security funding will take place in the interim, and a failure to reach a compromise on that front could result in another shutdown or a declaration of a national emergency in order to secure funding. The market’s response to the news was relatively muted, partially because it had already priced in some type of an agreement, and partially because it realizes it is only a temporary solution.
• The Philadelphia Semiconductor Index was a notable area of strength on Friday, rising 2.2% after its best session in nearly 10 years the day before. A disappointing earnings report from Intel (INTC 47.04, -2.72, -5.5%) did not dampen buying interest in the group, but it did hurt the stock. In other earnings news, Western Digital (WDC 43.16, +3.02) rose 7.5% with an upbeat outlook for the second half of 2019 offsetting weaker-than-expected quarterly earnings and guidance. In addition, Starbucks (SBUX 67.09, +2.35, +3.6%) impressed investors with its fiscal first quarter report and full-year outlook.

BLOCKCHAIN & CRYPTOCURRENCY NEWS

SBI Crypto Subsidiary Supports Crypto Mobile Wallet in $15 Million Funding Round

Cryptocurrency mobile wallet BRD has raised $15 million in a Series B financing round supported by SBI Crypto Investment. SBI Crypto Investment, a subsidiary of the Tokyo-based SBI Holdings, contributed to the funding, which BRD states will help to accelerate international expansion and scale its technology platform. According to the press release BRD announced the availability of cryptocurrency purchases through the use of SEPA transfers in the European market through a partnership with crypto payment provider Coinify. SBI Group is a financial based conglomerate based out of Japan that was established in 1999 and provides a broad range of financial services from securities to banking and insurance. Last week, SBI Holdings had announced an undisclosed investment in crypto firm Breadwinner AG, which is the developer of the BRD mobile crypto wallet. The press release notes that BRD is available in over 170 countries and has 1.8 million mobile users in total, with a total of $55 million raised in funding and $6 billion in assets kept on its platform.

NYSE Arca Files Paperwork for Bitwise Bitcoin ETF Approval

Bitwise Asset Management announced its intention to launch the ETF earlier this month. If approved, it would be the first bitcoin ETF to make it to market in the U.S. At the time, the company said NYSE Arca would file the 19b-4 rule change proposal in the near future. NYSE Arca indeed filed the form the same day, but it is not listed on any SEC website, possibly due to the ongoing U.S. government shutdown. As a result, the document went largely unnoticed, despite being posted on NYSE Arca’s own website. The Exchange believes that the proposed rule change is designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest. Previous bitcoin ETF proposals have been withdrawn or rejected, with Cboe most recently pulling its joint effort with VanEck and SolidX earlier this week. VanEck CEO Jan van Eck cited the government shutdown as a key reason for this, explaining that the companies were having conversations with the SEC prior to the shutdown, but that these conversations had ceased. He said that the companies would re-file after the government re-opens.

Fifteen Alleged Operators of $8 Million Crypto Scam Arrested in Taiwan

Police in New Taipei, Taiwan, have arrested fifteen suspects for allegedly running a cryptocurrency scam that earned them millions of dollars. The arrested suspects have been reportedly charged with fraud, and the case has been handed over to the Taipei District Prosecutors Office. The group allegedly defrauded over 30 people in the country of nearly NT$250 million (equivalent to about $8.16 million). They promoted IBCoin, an Ethereum (ETH) ERC20 token aiming to be a means of payment for the adult entertainment industry, according to its promotional material. The alleged fraudsters reportedly also publicized the scheme on Facebook, posting pictures of expensive cars and luxurious lifestyles to lure in new victims. According to the Criminal Investigation Bureau (CIB), no victim has ever seen any return on their investment and the token has no real value since “there are currently no known companies that trade or deal in IBCoins.”

NOTABLE MOVES 

As of Fri, Jan 25, 08:00 Singapore Time zone UTC+8

USDJPY, +0.00%, $109.60
EURUSD, -0.59%, $1.1314
GBPUSD, +0.39%, $1.3120
USDCAD, +0.08%, $0.6762
AUDUSD, -0.70%, $0.7092
NZDUSD, -0.37%, $0.6762

S&P500, +0.14%, 2,642.33
Nasdaq, +0.68%, 7,073.46
Nikkei Futures, -0.01%, 20,557.0    

CURRENCY MARKET WRAP 

• The US Senate has rejected two bills to end the government shutdown, leaving no end in sight to the record-breaking closure of federal agencies. The Republican legislation failed by 50-47 and the Democratic bill followed suit by 52-44. Both measures were long shots, needing 60 votes to pass. Afterwards, Trump told reporters at the White House that he would only sign a bill if it included a “down payment” on a border barrier.
• Weekly initial claims decreased by 13,000 to 199,000 (consensus 219,000) for the week ending January 19. That is the lowest level of initial claims since November 15, 1969. Continuing claims for the week ending January 12 dropped by 24,000 to 1.713 million. The key takeaway from the report is that the low level of initial claims is reflective of a tight labor market.
• U.S. Treasuries ended on a higher note, pushing yields lower across the curve. The 2-yr yield decreased three basis points to 2.56%, and the 10-yr yield decreased four basis points to 2.71%. The U.S. Dollar Index rose 0.4% to 96.53, benefiting at the expense of the euro, which fell on the back of Draghi’s cautious remarks. WTI crude rose 1.0% to $53.15/bbl.
• ECB’s Draghi, whose term ends in October, acknowledged on Thursday that the euro zone’s economic risks have moved to the downside. Draghi commented, “We were unanimous about acknowledging the weaker momentum and changing the balance of risk for growth.” Although there was no change in policy at Thursday’s ECB meeting, Draghi signalled the bank would react should the data continue to disappoint. The ECB gave no indication of whether it was preparing to cut interest rates, saying its governing council “expects the key ECB interest rates to remain at their present levels at least through the summer of 2019”. Eurozone growth fell to its lowest level in four years in the third quarter, with the region’s economy expanding by just 0.2 per cent. The bank had hoped in mid-December that the weakness would prove temporary. However, almost all of the data published since then has been disappointing. Thursday’s PMI data provided more signs that growth would not rebound in the fourth quarter, suggesting the economy faced more pervasive problems than initially thought.
• Elsewhere, the Aussie flipped on traders after the positive labor data release (21.6K vs Consensus 17.3K) was offset by news that NAB, one Australia’s four big banks is raising interest rates which would make mortgages more expensive and further depress the already slumping housing market. 

STOCK MARKET WRAP 

• The S&P 500 eked out a gain of 0.14% on Thursday as it wavered between small gains and losses throughout the day. Another round of better-than-expected corporate earnings coupled with ongoing global growth concerns contributed to a mixed session on Wall Street.
• Some discouraging commentary from Commerce Secretary Wilbur Ross and European Central Bank President Mario Draghi helped temper buying interest. Specifically, Ross said the U.S. and China are still “miles and miles” from reaching a trade deal, and Draghi acknowledged that significant stimulus is still needed for the eurozone. These comments stirred concerns about the pace of future economic growth, which in turn stirred concerns about the pace of future earnings growth.
• The Philadelphia Semiconductor Index was a notable pocket of strength on Thursday, rising 5.7% on the back of some strong earnings reports. Heavyweight component Texas Instruments (TXN 102.09, +6.60) rose 6.9%, while Lam Research (LRCX 161.20, +21.87, +15.7%), Xilinx (106.06, +16.51, +18.4%), and Teradyne (TER 36.04, +4.11, +12.9%) each surged well over 10% following their earnings reports. In addition, better-than-feared earnings and guidance from the transport stocks, particularly the airlines, helped lift the Dow Jones Transportation Average (+1.1%) and the industrial sector.
• American Airlines (AAL 33.66, +2.01, +6.4%), Southwest Air (LUV 54.21, +3.19, +6.3%), JetBlue (JBLU 18.12, +0.88, +5.1%), and Union Pacific (UNP 160.34, +6.01, +3.9%) all beat earnings and revenue estimates.
• McCormick (MKC 124.35, -14.65) ] dropped -10.5% after it missed Q4 top and bottom-line estimates and guided fiscal 2019 earnings and revenue below consensus. Its poor performance was a huge drag on the consumer staples sector (-1.3%). PG&E (PCG 13.95, +5.96, +74.6%) surged late in the day on a report that a California investigation cleared the company from issues surrounding the 2017 Tubbs wildfire.

BLOCKCHAIN & CRYPTOCURRENCY NEWS

Singapore’s Monetary Authority Halts Local STO Due to Regulatory Violations

The Monetary Authority of Singapore (MAS) has prevented a local initial coin offering (ICO) from launching a security token offering (STO) in the country. Under the current rules, all STOs have to comply with Singapore’s securities laws and are obliged to register with the MAS. In case the owners want the offering to fall under an exemption, they should be aware of conditions, including advertising restrictions, the MAS notes. The issuer of the halted, unnamed STO intended to rely on the exemption that would allow them to launch an offering without registering with the MAS. However, the issuer failed to comply with the advertising prohibition and posted a promotional article to LinkedIn. Shortly after the MAS warning, the issuer has temporarily suspended the STO. The MAS has also warned investors about the risks linked with token offerings, such as possible price speculation, the possibility of fraud and the lack of a proven track record from the companies. The financial authority urges customers to evaluate these risks before investing money.

Novogratz’s Galaxy Digital to Raise $250 Million to Offer Crypto Loans

Mike Novogratz’s crypto merchant bank Galaxy Digital is reportedly raising at least $250 million to offer loans to crypto-related firms, according to an unconfirmed report published by American news site Business Insider. Citing two unnamed people familiar with the matter, the news outlet claims that Galaxy Digital is purportedly planning to close the first fundraising round for its crypto credit fund in March. Galaxy’s lenders will be able to get their loans by using crypto assets, real estate and crypto mining hardware as deposits. Two anonymous individuals also noted that Galaxy decided to launch its own fund after seeing an increased demand for crypto lending services from firms amidst the bear market in 2018. Founded by former Goldman Sachs partner Michael Novogratz, Galaxy Digital is already lending to crypto businesses using its own balance sheet. Recently, Novogratz — who is both Galaxy’s founder and CEO — has increased his shares of the company by up to 79.3 percent of ordinary shares assuming their conversion, which reportedly amounts to 221.2 million ordinary shares.

Samsung’s Previously Denied Ethereum Wallet Surfaces in Allegedly Leaked Galaxy S10 Images

Images allegedly portraying the upcoming smartphone Samsung Galaxy S10 showing a “Samsung Blockchain Keystore” app surfaced on Twitter on Jan. 23. The reportedly leaked photos feature only an Ethereum (ETH) wallet option in the “supported cryptocurrencies” list. Even if those images portrait real software that will be present on the upcoming smartphone, it may gain support for other cryptos as the development continues before the launch. The leak seemingly confirms the rumors that Samsung has plans to offer a cryptocurrency cold wallet on this smartphone, an addition that had been denied in December last year. Samsung applied for a trademark in the United Kingdom for a cryptocurrency wallet. However, after the aforementioned trademark application, a senior executive at Samsung said in an interview with computing magazine JAX that decentralization is a more important phenomenon than blockchain.

NOTABLE MOVES 

As of Thu, Jan 24, 08:00 Singapore Time zone UTC+8

USDJPY, +0.15%, $109.54
EURUSD, +0.20%, $1.1381
GBPUSD, +0.92%, $1.3077
USDCAD, -0.09%, $1.3342
AUDUSD, +0.29%, $0.7144
NZDUSD, +0.60%, $0.6791

S&P500, +0.22%, 2,638.70
Nasdaq, +0.08%, 7,025.77
Nikkei Futures, -0.31%, 20,497.0

CURRENCY MARKET WRAP 

• As we head into day 34 of the U.S. government shutdown, the battle in Washington is heated. Trump said he plans to go ahead with delivering his State of Union Address next week but House Speaker Nancy Pelosi refused to allow him to deliver the speech from the House chamber (its usual venue) while the government is in shutdown. Today the Senate is scheduled to vote on Trump’s latest proposal and a short term spending bill from the Democrats that would help reopen the government until February 8th. Considering that neither party has a majority and both resist the other’s proposals, these votes are widely expected to fail leading to a continued shutdown. In the unlikely scenario that one passes, the Dollar will react positively.
• U.S. Treasuries ended on a lower note, although the bulk of the session saw a steady climb off opening lows. The 2-yr yield increased two basis points to 2.59%, and the 10-yr yield increased three basis points to 2.76%. The U.S. Dollar Index lost -0.2% to 96.12. WTI crude lost -0.8% to $52.63/bbl.
• BoJ kept its QQE with yield curve control and its forward guidance unchanged. At the same time, it cut the inflation outlook significantly by 0.5pp in the fiscal year (Apr-Mar) 2019. The growth outlook was also cut but only for the current fiscal year whereas the FY 2019 and FY 2020 forecasts were revised slightly upwards. On the recent global development, the BoJ kept the sentence ‘overseas economies have continued to grow firmly on the whole’. This highlights that the BoJ expects the current global slowdown to be temporary and the recent weak Japanese export figures to bounce back once a trade agreement has been reached between the US and China.

STOCK MARKET WRAP 

• The S&P 500 gained 0.22% on Wednesday in what was an uneven day of trading. The benchmark index was up as much as 0.8% shortly after the start of trading, lost as much as -0.8% by midday, and teetered around its flat line for most of the afternoon. Most S&P 500 sectors finished higher with consumer staples (+1.2%) and utilities (+1.1%) outperforming. Conversely, the energy (-1.0%) and material (-0.7%) sectors underperformed the broader market and were the lone sectors ending with a loss.
• Stocks had rallied at the open on some earnings beats and reassuring guidance from Dow components IBM (IBM 132.89, +10.37, +8.5%), Procter & Gamble (PG 94.84, +4.40, +4.9%), and United Technologies (UTX 117.04, +5.98, +5.4%).

BLOCKCHAIN & CRYPTOCURRENCY NEWS

UK Financial Regulator Releases Consultation Paper on Crypto
The United Kingdom’s financial regulator has published a consultation paper titled “Guidance on Cryptoassets”. The stated goal of the Financial Conduct Authority’s (FCA) paper on cryptocurrency is to provide more regulatory clarity on the subject for market participants. The consultation period on crypto, which the paper initiates, is scheduled to end on April 5, 2019, after which a policy statement with final guidance is set to be released. In its introduction to the paper, the FCA declares that the final version is meant to “help market participants to understand whether the cryptoassets they use are within the regulatory perimeter.”  In the paper, the FCA outlines various possible definitions of crypto assets and applicable U.K. laws.  In particular, the guidance paper notes that crypto assets could be considered “Specified Investments” under the state’s Regulated Activities Order (RAO) or “Financial Instruments” regulated by the Markets in Financial Instruments Directive II. The FCA’s crypto asset guidance places cryptocurrencies into three potential categories, namely exchange tokens, security tokens and utility tokens. So-called exchange tokens, the regulator writers, are those “not issued or backed by any central authority and are intended and designed to be used as a means of exchange.”

Hong Kong Hardware Manufacturer Releases Mining GPU for New Privacy-Oriented Coin
Hong Kong-based computer hardware manufacturer Sapphire has announced a new graphics card for mining the recently-launched GRIN Coin, according to an official press release published on Jan. 22. GRIN, which was released earlier this month, is a privacy-oriented token that is touted as a fully decentralized and democratized digital asset. The token is based on mimblewimble technology, which in theory grants users in the network with solid anonymity, by encrypting the value of a transaction using “blinding factors.” The new graphics processing unit (GPU) from Sapphire will purportedly be able to solve the Cuckoo Cycle algorithm which forms the basis of Grin’s proof-of-work (PoW). The GPU is not currently available for sale, but will eventually be released on the company’s website.

US: Pennsylvania Rules That Crypto Exchanges, ATMs Are Not Money Transmitters
The American state of Pennsylvania has clarified that cryptocurrency exchanges do not fall subject to the Money Transmitter Act (MTA), according to a Department of Banking and Securities (DoBS) document. The document clarifies crypto exchanges thus do not require a license to offer their services to Pennsylvania residents. The MTA — otherwise referred to as the Money Transmission Business Licensing Law — provides that “[n]o person shall engage in the business of transmitting money by means of a transmittal instrument for a fee or other consideration with or on behalf of an individual without first having obtained a license from the [DoBS]. According to the document, digital currencies such as Bitcoin (BTC) are not deemed to be “money” under the MTA — which is defined as being “currency or legal tender or any other product that is generally recognized as a medium of exchange.The document also clarifies that in regard to crypto kiosks, ATMs and vending machines — regardless of whether they enable one-or two-way deposits and exchange of crypto and fiat — no money transmission is deemed to be involved, as there is no transfer of money to a third party.