Day: 4 October 2023

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Ripple obtains full licence to operate in Singapore

XRP Ripple Digital Coin

XRP

Cryptocurrency company Ripple said on Wednesday 4th October 2023 that it has obtained a full licence to operate in Singapore, its Asia-Pacific headquarters since 2017.

‘We have hired exceptional talent and local leadership, doubling headcount over the past year and plan to continue growing our presence in a progressive jurisdiction like Singapore,‘ CEO Brad Garlinghouse said in a statement.

It comes as Ripple continues to fight with the U.S. Securities and Exchange Commission (SEC) over a lawsuit.

The new development comes less than four months after the Monetary Authority of Singapore granted an ‘initial in-principle’ approval in June 2023. With the full licence, Ripple will continue to provide regulated crypto payment services in Singapore.

Over 90% of Ripple’s business is outside of the U.S., and Singapore – and to a larger degree Asia Pacific – is one of its fastest growing region.

XRP Ripple Crypto digital coin and cross border payment system

The XRP ripple crypto coin is a digital currency that is used to facilitate fast and low-cost cross-border payments on the Ripple network.

The Ripple network is a decentralized system of servers that connects banks, payment providers, digital asset exchanges, and corporates. The XRP coin acts as a bridge currency between different fiat currencies and other digital assets.

The XRP coin has a fixed supply of 100 billion units and is distributed by Ripple Labs, the company behind the Ripple network.

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‘We shape our buildings; thereafter, they shape us.’

Liberty

Winston Churchill 1874 – 1965

Sir Winston Leonard Spencer Churchill

He was a British statesman, soldier, and writer who served as Prime Minister of the United Kingdom twice, from 1940 to 1945 during the Second World War, and again from 1951 to 1955.

Great statesman

He is considered one of the best-known, and some say one of the greatest statesman of the 20th century. He was also a Nobel Prize winner in literature for his speeches and books. 

He is famous for his inspiring quotes, such as ‘Never give in, never give in, never, never, never, never—in nothing, great or small, large or petty—never give in except to convictions of honour and good sense.‘

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Nikkei 225 all time high of 1989

Nikkei 225 all time high of 1989

The Nikkei 225 index, is a stock market index for the Tokyo Stock Exchange. 

The Nikkei 225 reached its all-time high on 29 December 1989, during the peak of the Japanese asset price bubble, when it reached an intra-day high of 38,957.44, before closing at 38,915.87. This was after a decade-long bull run throughout the 1980s, when the index grew sixfold.

Since then, the index has never surpassed this level, and has experienced several periods of decline and stagnation. As of October 4, 2023, the index closed at 30,526.88, down by 2.28% from the previous day and 8389 points off its all-time high.

Will it ever breach the high of 1989?

Nikkei 225 all time high of 1989
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Dow drops to 33000!

Dow Jones Industrial Average (Dow) performance on 3rd October 2023.

The Dow fell more than 400 points, turning negative for the year. The main reason for the drop was the surge in U.S. Treasury yields, which reached their highest levels in 16 years.

Higher yields mean higher borrowing costs for businesses and consumers, which could hurt the economic recovery and the housing market.

S&P 500 on 3rd October 2023

Nasdaq on 3rd October 2023

The tech-heavy Nasdaq Composite gained a 0.7% on October 3rd, 2023, as some investors saw an opportunity to buy some of the high-growth stocks that had been under pressure recently.

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Einstein was right with his theory about antimatter and gravity

Einstein theory

According to recent news and scientific reports, Einstein was right again about how antimatter responds to gravity.

Antimatter is the opposite of ordinary matter, and it is very rare in the natural universe. Scientists have created antimatter in the laboratory and observed its behaviour under controlled conditions.

Antihydrogen Laser Physics Apparatus (ALPHA)

One of the experiments that tested Einstein’s theory of general relativity was the Antihydrogen Laser Physics Apparatus (ALPHA) at CERN in Switzerland.

The researchers used antihydrogen, which is the antimatter counterpart of hydrogen, the lightest element. They showed that antihydrogen falls downward due to gravity, just like ordinary hydrogen. 

This confirms that matter and antimatter react to gravity in a similar way, as predicted by Einstein more than a hundred years ago.

Thank you Albert.

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U.S. stock market volatility continues

Yields

The stock market has been experiencing some volatility and uncertainty in September and October 2023, as investors fret about inflation, interest rates, and the possibility of a U.S. recession.

Main facts affecting the current stock market

The month of October has produced some severe stock market crashes over the past century, such as the Bank Panic of 1907, the Wall Street Crash of 1929, and Black Monday 1987.

October has also marked the start of several major long-term stock market rallies, such as Black Monday itself and the 2002 nadir of the Nasdaq-100 after the bursting of the dot-com bubble.

The S&P 500 dropped 4.5% in September 2023 and finished the third quarter in the red.

The U.S. Treasury yield curve has been inverted for months – which is a historically strong recession indicator.

The Fed maintained interest rates at the current target range of between 5.25% and 5.5% in September 2023, but signalled that it may need to raise rates again to combat inflation.

The consumer price index gained 3.7% year-over-year in August 2023, down from peak inflation levels of 9.1% in June 2022 but still well above the Fed’s 2% long-term target.

The bond market is currently pricing in an 81.7% chance the Fed will choose not to raise rates again on 1st November 2023.

Wall Street closed down on 3rd October 2023 as the yield on the U.S. 10-year treasury rose to 4.80%, reaching its highest level since 2007.

The Dow Jones Industrial Average was down at 33002, Tuesday 3rd October 2023.

Stocks fell as investors pulled money from equities and moved it to the hot bond market.

International markets also faced significant turmoil, sending mini shockwaves through global financial centres, which reverberated in equities.

The dollar rose to the highest since December and is heading towards the twelfth positive week in a row.

Uncertainty

Uncertainty in the U.S. political system is having a major affect too. Especially with the ousting of the speaker and the real fear of a government shutdown looming large.

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U.S. Treasury yields chase 5% at 16 year high!

U.S. yields up

Highest yields since 2007

The U.S. Treasury yields are the interest rates that the U.S. government pays to borrow money. The 10-year and 30-year Treasury yields are the most widely followed indicators of the long-term health of the U.S. economy and the expectations of inflation and growth.

10 year yield at 4.80%

According to the latest data, the 10-year Treasury yield surged to 4.80% on Tuesday, 3rd October 2023, which is the highest level since 12th October 2007. 

30 year yield at 4.79

The 30-year Treasury yield rose to 4.79% on Monday, 2nd October 2023, which is the highest since 6th April 2010.

The main reasons for the rise in the Treasury yields

The strong U.S. economic data that showed that the labour market remains hot and the manufacturing sector rebounded in September 2023.

The Federal Reserve’s ‘higher for longer’ mantra signalled that the central bank would keep raising rates until inflation is under control.

The reduced demand for safe-haven assets as the U.S. government averted a shutdown over the weekend by passing a short-term stopgap funding measure.

Uncertainty at the heart of the U.S. political system.

The implications of higher Treasury yields

The higher borrowing costs could weigh on the economic growth and consumer spending in the future.

Higher inflation expectations could erode the purchasing power of the fixed-income investors and increase the risk of a bond market sell-off.

The higher interest rate differential could attract more foreign capital inflows into the U.S. dollar and strengthen its value against other currencies.

The Fed makes and ‘unmakes’ the economy!

Remember… the Fed said inflation was transitory.

Why?

How could they get it so wrong?