Day: September 14, 2020

Precious Metals Monday 14-09-2020
Forex News

Precious Metals Monday 14-09-2020

Gold Gold prices continue to hold within the recent range which has formed following the correction from the 2076.12 highs. The recent pause in the US Dollar sell off has seen gold losing upside momentum over recent weeks though, with the Fed having recently outlined its adjusted inflation targeting strategy, there is still plenty of scope for further upside in gold. The Fed confirmed that it will no longer be targeting 2% inflation as a hard level and will instead look to achieve an average of 2% inflation, allowing inflation to run above that as necessary. This means that the market will no longer be expecting the Fed to raise rates as inflation approaches 2% and consequently means that the minimum threshold for raising rates has now be increased. On the data front, gold prices have al...
No one can refuse China’s digital currency, says central bank exec – Cointelegraph
Currencies

No one can refuse China’s digital currency, says central bank exec – Cointelegraph

China’s central bank digital currency (CBDC) known as the digital yuan should be regulated in line with cash-related laws, according to a senior exec at the country’s central bank. In an opinion article on Sept. 14, Fan Yifei, a deputy governor of the People's Bank of China (PBoC), outlined the major regulatory principles for the operation of the digital yuan. the digital representation of the official currency of the People’s Republic of China. According to Fan, the digital renminbi is legally compensatory to the traditional fiat currency. In the article, the deputy governor outlined that the digital RMB is “mainly positioned” as M0, which means that the digital currency is part of the supply of paper notes and coins. As such, the digital RMB “needs to comply with laws ...
Whales can now use Bitcoin to purchase private jets
Crypto News

Whales can now use Bitcoin to purchase private jets

A private aircraft sales company has started allowing customers to purchase any of their multi-million dollar jets using Bitcoin. According to a Sept. 13 report from news outlet Business Insider, U.S.-based Aviatrade is currently selling an upgraded 2014 Gulfstream G650ER for $40 million — roughly 3,750 Bitcoin (BTC) as of this writing. Billionaires including Amazon’s Jeff Bezos and Tesla CEO Elon Musk reportedly own the same model, which is capable of traveling up to 7,500 nautical miles, or roughly the distance between Los Angeles and Sydney. "We accept Bitcoin as payment for all bizjet [business jet] purchases,” states Aviatrade’s website. Aviatrade president Philip Rushton said that using fiat to purchase a private aircraft would be subject to cross-border restrictions in some cou...
ITI Q1 results: Net loss widens to Rs 102 cr
Stock News

ITI Q1 results: Net loss widens to Rs 102 cr

NEW DELHI: State-run telecom gear maker ITI Limited on Monday reported widening of its consolidated loss to Rs 102 crore for the June quarter, hit by the COVID-19 crisis. The company had posted a loss of Rs 61 crore in the corresponding period of the preceding fiscal. "The company has estimated from internal sources that there is a decrease of around more than 50 per cent in turnover... due to COVID-19. The recent Pandemic outbreak has brought about economic disruptions and uncertainties and ascertaining its impact is difficult," ITI said in a BSE filing. Consolidated revenue rose marginally to Rs 173.83 crore from Rs 170.59 crore in Q1 2019-20. "The impact of any future events and developments emerging out of COVID-19 pandemic, if any, and occurring after the approval of financial re...
What will arise from today’s ‘creative destruction’?
Investing

What will arise from today’s ‘creative destruction’?

It’s back to school season, and that invariably reminds me of my own education and all that I enjoyed learning when I was in school. One class that I found particularly thought-provoking was a business school class on the history of entrepreneurship. Interestingly, the curriculum started with Joseph Schumpeter, the economist who introduced the concept of “creative destruction,” which Schumpeter developed based on the theories of Karl Marx. Not surprisingly, I have thought a lot about Schumpeter’s views throughout the pandemic. By way of definition, Schumpeter describes creative destruction as the “process of industrial mutation that continuously revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” 1 Simply put, out of pain...
“Ultra-dovish” Fed Bias may Eventually Hide some Bullish Surprise for USD
Forex News

“Ultra-dovish” Fed Bias may Eventually Hide some Bullish Surprise for USD

The biggest event of this week is undoubtedly September Fed decision and mostly importantly Fedspeak. It is expected that the Fed leaves policy settings unchanged. The fact of transition to the new framework of inflation targeting has already been priced in, but here are possible parts of the meeting where surprises may pop: “Operational” details of the framework. Powell, speaking at Jackson Hole, was very sparing of details (in line with the event format), leaving them for monetary policy meetings. Investors will be looking for hints of time limits for low interest rate environment or a possible link to certain economic outcomes (for example, achieving unemployment of 2%). Repeating of vague wordings will be likely bullish for USD. Expectations of GDP, inflation, interest rates ...
FATF hints at Binance as example of an exchange avoiding regulation
Crypto News

FATF hints at Binance as example of an exchange avoiding regulation

A new report by the Financial Action Task Force, or FATF, details a series of red flags that can help identify illicit activity involving cryptocurrencies. Among them are a general set of guidelines involving exchanges in jurisdictions with weaker regulations, where Binance is seemingly singled out for often moving to avoid stronger regulatory oversight. The report, published on Sept. 14, lists a variety of red flags for spotting money laundering or terrorism financing, grouped by categories. Most red flags cited are commonly seen in traditional finance as well: young or old people suddenly transacting for huge sums of value, or transfers split into many chunks just below the reporting threshold, for example. In the section relating to geographical risk, however, the report clearly sta...
Oracle confirms deal with TikTok-owner ByteDance to become ‘trusted technology provider’
Business news

Oracle confirms deal with TikTok-owner ByteDance to become ‘trusted technology provider’

Oracle on Monday confirmed it has struck a deal with ByteDance, the Chinese owner of popular video-sharing app TikTok, weeks after the Trump administration ordered a TikTok divestiture in the United States. The deal still needs U.S. government approval. "Oracle confirms Secretary Mnuchin's statement that it is part of the proposal submitted by ByteDance to the Treasury Department over the weekend in which Oracle will serve as the trusted technology provider," Oracle said Monday. Earlier on CNBC, Mnuchin said the U.S. government plans to review the deal this week. "I will just say from our standpoint, we'll need to make sure that the code is, one, secure, Americans' data is secure, that the phones are secure and we'll be looking to have discussions with Oracle over the next few ...
The Craziest Stock Market Scandals of all Time
Online Trading

The Craziest Stock Market Scandals of all Time

Whether it’s an orchestrated short squeeze, an outright fraud, or insider trading, the stock market is wrought with scandal and controversy. And the kicker is that the public only hears about a tiny fraction of them.  Consider how many OTC pump and dump or insider trading schemes occur every week without anyone, but the parties involved hearing about it.  Today, we’re going to review some of the more interesting narratives and stories in the stock market in recent memory. Porsche Attempts to Takeover Volkswagen: The Biggest Short Squeeze of All Time Back in 2005, German sports car manufacturer Porsche announced that they were attempting to acquire competitor Volkswagen. Over the following few years, Porsche acquired a large portion of Volkswagen’s public float, pushing the p...
SFBs’ growth to more than halve to 10-15% in FY21: Icra
Stock News

SFBs’ growth to more than halve to 10-15% in FY21: Icra

KOLKATA: Small finance banks may face losses cumulatively in FY21 as their growth is projected to more than halve to 10-15 per cent as compared with 30 per cent last financial year, credit rating firm ICRA said. The loss at consolidated level may be due to their elevated operating costs and high credit costs of around 3.5 per cent-4 per cent. ICRA has projected an equity requirement of Rs 5,000-6,000 crore for these banks if they like to achieve a CAGR of 15-20 per cent till FY2023 and to absorb expected losses and maintain gearing levels at 7-8 times. “SFBs would need external capital not only to manage Covid-19 related credit costs and medium term growth but also to manage the regulations related to reducing promoter shareholding below 40 per cent," ICRA's head for financial sector r...