NOTABLE MOVES
- U.S. Core PCE Price Index m/m at 0.2% vs expected 0.1%. Personal Spending m/m inline at 0.4%. Treasury yields closed slightly higher with the 2-yr yield and 10-yr yield adding one basis point each to 2.82% and 3.09%, respectively. USDJPY up 0.35%, $112.32.
- Chancellor Angela Merkel announced on Monday that she won’t be seeking re-election as head of the CDU. The decision follows disappointing results over the weekend for her party in a regional election. Her plan, however, is to remain Chancellor until 2021, after which time she will not pursue any other political posts. Euro down -0.20%, $1.1376. U.K. Net Lending to Individuals m/m at 4.7B vs expected 4.1B. Sterling down -0.23%, $1.2802. USDCAD up 0.24%, $1.3130.
- S&P 500 down -0.66%, 2,641.25. Nasdaq down -2.02%, 6,713.90. Nikkei down -0.16%, 21,149.80.
- Continued tech weakness shook investor confidence, and reports of another possible round of Chinese tariffs helped accelerate losses in the afternoon (EST). Bloomberg reported that the White House is preparing to announce tariffs on all remaining Chinese imports if talks next month between Trump and Xi Jinping fail to ease the trade war. Facebook (FB 152.09, -3.28, -2.3%), Alphabet (GOOG 1020.08, -51.39, -4.8%) and Netflix (NFLX 284.97, -14.86, -5.0%) dragged the communication services sector lower, while consumer discretionary component Amazon (AMZN 1538.88, -103.93) extended its post-earnings losses, losing -6.3%. Also, the world’s largest tech company, Apple (AAPL 212.24, -4.06), lost -1.9%.
- Meanwhile, in Asia, China is reportedly considering a 50% cut in its tax on car purchases. Shares of Ford Motor (F 9.28, +0.30) and General Motors (GM 33.13, +0.48) benefited from the reports, gaining 3.3% and 1.5%, respectively.
BLOCKCHAIN & CRYPTOCURRENCY NEWS
Singapore: Major Utility Company Launches Blockchain-Based Solar Energy Marketplace
SP Group, a major corporation providing electricity and gas transmission in Singapore, has launched a blockchain-powered renewable energy certificate (REC) marketplace. The platform was unveiled at the ASEAN Energy Business Forum held in Singapore this week. The press release notes that SP Group plans to use blockchain to help the company increase transparency and efficiency. The first contracts have already been signed with global real estate developer CDL and multinational banking corporation DBS Bank. Three solar energy sellers — Cleantech Solar Asia, LYS Energy Solutions and Katoen Natie Singapore — are also joining the marketplace.
World’s Largest Diamond Producer Alrosa Joins De Beers’ Blockchain Pilot
The world’s largest diamond mining firm, Russia’s Alrosa, has joined the pilot of fellow industry giant De Beers’ diamond supply chain blockchain platform “Tracr,” mining industry news outlet. Alrosa is the world’s largest producer of raw diamonds in carat terms. Tracr, whose pilot was first announced in January, aims to improve transparency and consumer trust across the diamond value chain from mine to retail. The solution works by creating a digital certificate for each diamond that records key attributes and transactions. The data is stored immutably on the blockchain, allowing buyers to verify that diamonds they purchase are natural and conflict-free. The Tracr blockchain initiative is designed to complement existing regulations and schemes that already function to foster industry confidence in diamonds’ provenance and quality, such as the Kimberley Process Certification Scheme, World Diamond Council System of Warranties, and Responsible Jewellery Council Code of Practices. h
IT Firm Fujitsu Builds Blockchain Settlement Trial Infrastructure for Nine Japanese Banks
Japanese multinational IT equipment and services company Fujitsu will build an interbank settlement platform using blockchain technology as part of a joint project with nine domestic banks. As part of the development, the platform will use an unnamed “digital currency” to make settlements. Fujitsu will additionally leverage the P2P money transfer platform it developed in (the) fiscal (year) 2017 with three major banks to generate the money transfers to other banks that will trigger interbank funds transfer settlement. By participating in this project, Fujitsu aims to establish a new platform that utilizes cutting-edge technology to help realize a cashless society.