NOTABLE MOVES  

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

 

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

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

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

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