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.