Category: Investopia

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SEC finally approves Bitcoin ETF

Bitcoin ETF approval

After years of regulatory rejection, the U.S. Securities and Exchange Commission on Wednesday 10th January 2024 finally approved the Bitcoin EFT.

It has approved what are known as ‘spot’ Bitcoin Exchange-Traded Funds (ETFs), which can be purchased by anyone from pension funds to retail investors. This now means that some of the biggest asset managers in the world, including BlackRock and Fidelity can trade a crypto related ETF.

Now, instead of using a crypto asset exchange such as Binance, Coinbase or Kraken to purchase and hold a token like Bitcoin, traders can now trade a ‘spot’ Bitcoin ETF for direct exposure to the digital asset market.

It may also mean that investors could pay lower fees than they would if they bought the digital currency from a crypto exchange directly.

Basically, it is now cheaper than ever to buy Bitcoin – but is this positive for the long-term?

Crypto fans can now invest in Exchange-Traded Funds (ETFs) – but what exactly are they?

A Bitcoin ETF allows investors to buy a product that tracks the price of Bitcoin through the same method they already use to buy stocks and other existing products. This also reduces additional worry of managing their crypto related holdings, which typically involves maintaining a cryptocurrency wallet and a safe storage system to safeguard that investment.

But what exactly is an ETF?

ETFs are holdings or portfolios that allow investors to ‘bet’ on multiple assets, without having to buy any themselves. Traded on stock exchanges like shares, their value depends on how the overall portfolio performs in real time.

An ETF could comprise a combination of gold and silver bullion, for example, or a mixture of shares in both big technology and energy companies. Some ETFs already contain Bitcoin indirectly – but a spot Bitcoin ETF will buy the cryptocurrency directly, ‘on the spot’, at its current live price, throughout the trading day.

Bitcoin, the first cryptocurrency

Based on an idea by someone called, Satoshi Nakamoto, Bitcoin was the first cryptocurrency and remains the most valuable and famous to-date. Its price is often seen as a barometer for the whole industry of thousands of other coins (altcoins), tokens and products built on the same blockchain technology.

Art illustration of Bitcoin blockchain

And with an influx of new money, many expect a surge in interest in cryptocurrency technology in general.

How will the decision affect cryptocurrency adoption and is this decentralisation as originally intended?

Some say this decision shows the existing ‘old financial school’ establishment is finally taking Bitcoin seriously, at least as a speculative asset. For those who consider Bitcoin legitimate ‘digital gold’, what better proof could there be than the biggest wealth-management institutions flocking to buy, and now overseen by regulators?

Others say cryptocurrency is about rejecting traditional financial systems in favour of a decentralised, people-powered alternative. And investment bankers buying Bitcoin just to get rich on U.S. dollars is not what Satoshi Nakamoto had in mind.

But judging from the chatter on social media, the prevailing sentiment is expecting the new cash injection will make existing Bitcoin investors and owners rich.

What are the risks to future investors?

It is possible to lose all of your investment

The price of Bitcoin can change rapidly and often without warning or explanation – it is a volatile asset. So investors will need to be aware when investing in ETFs linked to a digital coin.

Art illustration of Bitcoin trading

But ETFs are often sold as high-risk, high-reward products anyway. It is EXTREMELY high risk – don’t do it if you don’t understand it and even if you do, or think you do – BE CAREFUL! These products can rip the shirt off your back!

Cyber-crime risk

Another potential risk is cyber-crime. Bitcoin and other cryptocurrencies have been the subject of huge and costly attacks that have seen crypto companies drained of sometimes hundreds of millions of dollars overnight. And if the likes of Blackrock become major holders of Bitcoin, their cyber-security will be tested in ways never before. Let’s hope their security systems are extremely robust.

Cost of mining coins

Another downside is the heavy cost to the environment is that Bitcoin use a massive number of powerful computers around the world, to process transactions on the blockchain ledger and to create coins – this is known as mining.

Renewable energy use is growing – but it remains to be seen how investment companies will tackle the environmental cost of Bitcoin.

Be careful

ETFs are here now – but BE CAREFUL when entering a Bitcoin related ETF trade or investment, or any type of ETF for that matter. If it goes wrong, you will lose your money, and quickly.

Your money is at HIGH risk!

Bitcoin chart as at 12pm January 11th 2024

Bitcoin chart as at 12pm January 11th 2024
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Bitcoin ETF announcement by SEC was FAKE news via an erroneous post on ‘X’

Bitcoin ETF

Bitcoin jumped briefly on Tuesday 9th January 2024 after a post on the U.S. markets SEC regulator’s ‘X’ account post said it had approved the Exchange-Traded Funds (ETF’s) in the cryptocurrency.

This was a big news event for the cryptocurrency community and for the wider investment world. Large and small investors have been eagerly awaiting this news for months. When it finally arrived, it turned out to be fake.

U.S. regulators are expected to make an announcement on the new ETF’s this week.

The Securities and Exchange Commission (SEC) later deleted the erroneous post and said its account had been ‘compromised’.

The social media platform ‘X’ refuted the accusation that its systems had been the reason for the ‘compromise’.

Fake post

The fake news post appeared on the SEC’s official X account shortly after 16:00 Washington time (21:00 GMT). It said the regulator ‘grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.’ The post was immediately on the general social media radar and business news outlets.

SEC’s chair Gary Gensler quickly posted a message correcting the erroneous announcement on his personal ‘X’ account: “The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot Bitcoin exchange-traded products.”

‘The SEC has determined that there was unauthorized access to and activity on the @SECGov x.com account by an unknown party for a brief period of time shortly after 4 pm ET. and that the unauthorized access has been terminated,’ it was reported.

Bitcoin jumped

Bitcoin jumped to touch $48,000 (£37,800) immediately after the erroneous post before falling back to around $45,500

Bitcoin jumped to ouch $48,000 (£37,800) immediately after the erroneous post before falling back to around $45,000

Investors are eagerly anticipating an SEC announcement on the potential approval of spot Bitcoin ETFs, which is expected this week.

It would mark a key milestone for the cryptocurrency market in gaining acceptance to mainstream financial markets.

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Congratulations to NEXT

UK High Street

The bumper festive period led to the High Street giant to raise its profit forecast by 5% to £960m for 2024. NEXT has about 460 outlets in the UK and Ireland.

The company also expects sales to grow by 3% in 2024/25 but warned that attacks on shipping in the Red Sea could cause delays and disruptions to its stock supply.

NEXT’s full price sales were up 5.7% in the nine weeks to 30th December, £38 million ahead of its previous guidance of 2%.

The company’s share price closed at: 8146.00 on 29th December 2023, as of 4th January 2024 the share price was: 8550.

Three months share price data for NEXT.

Is this an indication of better news for the UK high street in general?

Congratulations NEXT.

UK retail sales hit 2023 low – see report.

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Mark Zuckerberg sold nearly half a billion of Meta stock in November and December 2023

Social Media

Mark Zuckerberg, the CEO and cofounder of Meta Platforms Inc., sold some $190 million worth of Meta shares in November 2023, and another $238 million in December 2023. 

These were his first stock sales since 2021, when he sold $2.9 billion worth of shares. 

Meta Platforms is one of the leading social media and technology companies in the world with its flagship platform Facebook.

Its stock price has surged by 166% in 2023, making it one of the best-performing stocks among the so-called ‘Magnificent Seven’ group of tech giants. Meta has also rebranded itself as a metaverse company, aiming to create a virtual reality platform that connects people across its various apps and devices.

Philanthropic – The Giving Pledge

Zuckerberg and his wife, Priscilla Chan, have pledged to donate 99% of their Meta shares to charitable causes during their lifetimes, as part of the Giving Pledge initiative started by Warren Buffett and Bill Gates. 

They have also established the Chan Zuckerberg Initiative, a philanthropic organization that focuses on education, health, science, and justice.

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Bitcoin smashes through $45,000 as crypto rally continues into 2024

Bitcoin

Bitcoin surged Monday and Tuesday 1st and 2nd January 2024, climbing above $45,000 to hit its highest level in nearly 21 months, as the rally in cryptocurrencies continues. Other cryptocurrencies have joined in the rally, with Ether and Solana both rising.

Traders are anticipating the potential approval of a bitcoin exchange-traded fund (ETF) in the U.S., as well as the upcoming Bitcoin ‘halving’ due to happen in May 2024.

Bitcoin 3 year chart

Bitcoin 3 year chart
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Some of the stock market’s biggest gains in 2023 came not from crypto but from crypto related businesses

Cryptocurrency

For true cryptocurrency bulls, the most lucrative investments in 2023 were in the stock market.

While Bitcoin rallied over 150% for the year, shares of Coinbase, Marathon Digital, MicroStrategy and the Grayscale Bitcoin Trust, which are all tied closely to the digital currency, did substantially better, rising more than 300% in value. Bitcoin miner Marathon Digital soared some 688%.

Outperform

Not only have these stocks outperformed primary cryptocurrency, but they’ve been among the biggest gainers across the whole U.S. stock market. In the universe of publicly traded U.S. businesses with a market value of at least $5 billion, the four Bitcoin-tied stocks were among the eight best performers, according to analysts.

Boom or bust?

The crypto boom represents a major recovery from 2022, when coin prices plummeted, taking related equities down with them. A year highlighted by hedge fund collapses, crypto lender failures and crippling losses at miners was punctuated in November 2022, when crypto exchange FTX spiralled into bankruptcy, leading to the arrest of founder Sam Bankman-Fried on fraud charges.

Guilty of fraud
A jury in New York convicted Bankman-Fried on seven criminal counts

Bankman-Fried conviction

In 2023, a New York jury convicted Bankman-Fried on seven criminal counts, setting the 31-year-old former billionaire up for a possible long-stretch behind bars. Weeks later, Changpeng Zhao (CZ), founder of crypto exchange Binance, pleaded guilty and stepped down as the company’s CEO as part of a $4.3 billion settlement with the Department of Justice. He faces a possible prison sentence of 18 months or longer.

By the time of Bankman-Fried’s conviction and Zhao’s plea deal, the damage to the broader crypto market had mostly been realised, and investors were looking to the future. One of the biggest drivers for bitcoin this year was an easing of the Federal Reserve’s interest rate hikes, which created a more attractive case for riskier assets, but only marginally.

Bitcoin halving due May 2024 & ETF’s

Prices were also bolstered by the upcoming Bitcoin halving, which takes place every four years and is scheduled for May 2024. In the halving process, the reward for mining is cut in half, capping the supply of bitcoin.

Additional buying was sparked by the potential for a flurry of bitcoin exchange-traded funds popping up in the new year.

Marathon

Among companies closely tied to Bitcoin, the best-performing stock this year was Marathon, a mining firm that just eclipsed that market cap level last week thanks to a 125% surge in December as of Tuesday’s close. On Wednesday, the shares surged another 15%.

Last year at this time, Marathon was hanging on by a thread. The company was in the midst of a quarter that ended with a loss of almost $400 million on sales of just $28.4 million because of tumbling bitcoin prices

Mining

Bitcoin mining is an expensive operation because of the high energy costs required to operate the supercomputers. A drop in bitcoin prices means a sharp reduction in the money producers make selling the coins they mine, even as their energy bills get little relief.

Outside of the mining universe, the best-performing crypto stock in the U.S. this year is Coinbase, which has soared some 386% into 2023 year end.

Coinbase

As the only major publicly traded crypto exchange in the U.S., Coinbase has long been a popular way to buy and trade cryptocurrencies in its home market. But with the struggles at Binance, the largest exchange in the world, Coinbase picked up useful market share during non-U.S. trading hours, according to a report from research firm Kaiko in late November 2023.

Crypto
Binance is still open for business (Art illustration of a fictitious crypto trading room)

Shortly after Zhao’s plea deal, Coinbase CEO Brian Armstrong reportedly said that the news amounted to ‘a vindication of the long-term strategy that we’ve taken to focus on compliance, make sure we were building a trusted company.’

Coinbase’s revenue and stock price are still way below where they were during the heyday of crypto trading in 2021, when retail investors were jumping into the market to buy all sorts of digital currencies, including gimmicks like Dogecoin.

But the business has stabilized following drastic cost-cutting measures starting last year and extending into early 2023.

Will 2024 be an outstanding year for crypto?

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Tesla recalls two million cars in U.S. and faces head-on challenge by China’s BYD for world’s top electric car-maker

EV & hybrid sales up for BYD

Tesla recalled more than two million cars in December 2023 after the U.S. regulator found its driver assistance system, Autopilot, was partly defective, it was reported.

It follows a two-year investigation into crashes which occurred when the tech was in use. The recall applies to almost every Tesla sold in the U.S. since the Autopilot feature was launched in 2015.

The update happens automatically and does not require a visit to a dealership or garage but is still referred to by the U.S. regulator as a recall.

The UK Driver and Vehicle Standards Agency reportedly said it was not aware of any safety issues involving Teslas in the UK, noting that cars sold in the UK are not equipped with all of the same features as cars in the U.S.

Chinese company, Build Your Dreams (BYD), has moved another step closer to over-taking Tesla as the world’s biggest-selling manufacturer of electric vehicles.

The firm said on Monday it had sold a record 526,000 battery-only vehicles in the last three months of 2023, aided by more than a 70% surge in sales in December 2023.

Tesla is scheduled to release its latest quarterly vehicle production and delivery figures before Wall Street opens on Tuesday.

For the year, BYD said it had sold more than 3 million new energy vehicles (NEVs), which includes battery-only vehicles and hybrids. Almost 1.6 million of its total sales were battery-only vehicles, the firm said.

Industry analysts have forecast that Tesla sold around 483,000 electric vehicles in the last three months of 2023 and 1.82 million for the year as a whole.

Tesla 3 year share chart

Tesla 3 year chart
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Sudden sell-off confounds analysts – is it profit taking or economic woe?

Wall Street

The Nasdaq and Dow hit new all-time highs in recent days and the S&P 500 is hot on their heels.

After nine straight days of gains, Wall Street suddenly reversed an hour and a half before the closing bell on Wednesday 20th December 2023.

The sell-off expanded into Asia overnight, with Japan’s Nikkei 225 leading losses, before stocks across Europe also slid into the red on the Thursday morning, 21st December 2023.

Some indicated Wednesday’s sell-off was as simple as investors taking profits after a nine-day mini bull run, in the absence of any obvious catalyst and with U.S. stocks widely seen as overbought.

Other market analysts pointed to a high volume of zero-day options trading as the death knell for the winning streak.

Time left for a Santa rally?

Markets have been on a tear in recent eeks and months, maybe it’s time for a breather. But some suggest U.S. equities are overbought in general – so, is this something more discerning?

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Intel unveils new AI chip

AI micro chip

Intel’s new chip will go head-to-head with Nvidia and AMD

Intel unveiled new computer microchips on Thursday 14th December 2023, including Gaudi3, a chip for generative AI software.

Intel also announced Core Ultra chips, designed for Windows laptops and PCs, and new fifth-generation Xeon server chips. Intel’s server and PC processors include specialized AI parts called NPUs that can be used to run AI programs faster.

AI race

AI models, like OpenAI’s ChatGPT, run on Nvidia GPUs in the cloud. It’s one reason Nvidia stock has been up nearly 230% year to date while Intel shares have risen 68%. And it’s why companies like AMD and, now Intel, have announced chips that they hope will attract AI companies away from Nvidia’s dominant position in the market.

Gaudi3 will compete with Nvidia’s H100, the main choice among companies that build huge factories of the chips to power AI applications, and AMD’s forthcoming MI300X, when it starts shipping to customers in 2024.

CEO Gelsinger

‘We’ve been seeing the excitement with generative AI, the star of the show for 2023,’ Intel CEO Pat Gelsinger reportedly said at a launch event in New York where he announced Gaudi3 along other chips focused on AI applications.

Intel upping the anti with its Gaudi AI chip. The AI PC to become the new AI start of 2024 and beyond!

‘We think the AI PC will be the star of the show for the upcoming year,’ Gelsinger added. And that’s where Intel’s new Core Ultra processors, also announced on Thursday, will come into play.

Let the battle commence.

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Bitcoin demonstrates its volatility after early December rally

Bitcoin

A $5000 fall in 24 hours.

Bitcoin fell 7% Monday 11th December 2023 after touching $45,000 demonstrating its aptitude for volatility. A $5000 fall in 24 hours.

The move comes after a 12% tear for Bitcoin in December 2023 as expectations grew that the U.S. could soon approve its first spot bitcoin ETF.

Bitcoin has been on a steady climb in recent weeks, following a long period of market apathy that witnessed the price trade in a narrow range for months.

Bitcoin price as of Tuesday 12th December 2023

Bitcoin is a volatile investment – be VERY careful.

The sudden pullback triggered a spike in liquidations. Bitcoin: $146 million in long liquidations on Monday, and Ether: $100 million.

Other Altcoins such as: ADA, XRP fell in unison.

Bitcoin’s volatility will likely see it climb back to the $45,000 level quite quickly.

NOTE: Bitcoin can damage your wealth. Do your research!

Remember: RESEARCH! RESEARCH! RESEARCH!

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Central banks and geopolitics could keep gold demand hot in 2024, World Gold Council says

Gold

World Gold Council

The two most significant events for gold demand in 2023 were the collapse of Silicon Valley Bank and the Hamas attack on Israel, the World Gold Council (WGC) said, estimating that geopolitics added between 3% and 6% to gold’s performance over the year.

The WGC estimated that central bank demand added 10% or more to gold’s performance in 2023 and said even if 2024 does not reach the same heights, above-trend buying should still offer an extra boost to gold prices.

The precious metal broke through $2,100 per ounce on Monday 4th December 2023 in intra-day trading, before moderating slightly. Spot gold prices were hovering at around $2,030 per ounce Friday 8th December 2023.

Gold price year to date chart

What is the World Gold Council

The World Gold Council (WGC) is a market development organization for the gold industry. It works across all parts of the industry, from gold mining to investment, with the aim of stimulating and sustaining demand for gold. The council sets standards, strengthens markets, and shapes the global conversation about gold. It was established to promote the use of and demand for gold through marketing, research, and lobbying. 

The council includes 33 members, many of which are gold mining companies.

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Meta and Microsoft say they will buy AMD’s new AI chip – Wall Street loves Artificial Intelligence

AI microchips

Meta, OpenAI, and Microsoft said they will use AMD’s newest AI chip, the Instinct MI300X.

An indication that tech companies want alternatives to the expensive Nvidia graphics processors that have been essential for artificial intelligence (AI).

If the MI300X is good enough and inexpensive enough when it starts shipping early next year, it will likely lower costs for developing AI models.

AMD CEO Lisa Su projected the market for AI chips will amount to $400 billion or more in 2027, and she said she hopes AMD has a sizable part of that market.

Wall Street rallies on AMD and Google AI news

Wall Street resumed its rally after a short break as technology giants intensified their AI race, pushing up tech stocks.

When you witness Google launching a new AI model (Gemini) and AMD chasing a slice of the hot AI chip market, you know a pre-Christmas cheer will wash over investors.

To think, just a handful of years ago, other than in Science Fiction novels, the term ‘artificial intelligence’ didn’t exist in our vocabulary and now it is becoming more and more integrated with our day-to-day lives.

Stock markets love it. AI is fast becoming a business necessity and not just an option.

AI chip image
Wall Streets love affair with AI – how long will it last?
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Google releases Gemini, its latest AI venture

Chatbot

Pressure mounts on the Google to demonstrate how it plans monetize AI.

Google has launched its largest and most capable (by its own admission) artificial intelligence (AI) model on Wednesday 6th December 2023 pressure mounts on the company to answer how it’ll monetize AI.

Gemini

The large language model Gemini will include a suite of three different sizes: Gemini Ultra, its largest, most capable category; Gemini Pro, which scales across a wide range of tasks; and Gemini Nano, which it will use for specific tasks and mobile devices.

Cloud

Google is reportedly planning to licence Gemini to clients through Google Cloud to use in their own applications. Developers and enterprise customers can access Gemini Pro via the Gemini API in Google AI Studio or Google Cloud Vertex AI.

Android

Android developers will also be able to build with Gemini Nano. Gemini will also be used to power Google products like its Bard Chatbot and Search Generative Experience, which tries to answer search queries with conversational-style text.

Ultra

Gemini Ultra is reportedly the first model to outperform human experts on MMLU (massive multitask language understanding), which uses a combination of 57 subjects such as math, physics, history, law, medicine and ethics for testing both world knowledge and problem-solving abilities, the company said in a blog post Wednesday 6th December 2023. 

It can supposedly understand nuance and reasoning in complex subjects.

Advanced

The company gave examples demonstrating Gemini being able to take a screenshot of a chart and analyse hundreds of pages from research and then updating the chart.

Another example was analyzing a photo of a person’s math homework and identifying correct answers and pointing out incorrect ones.

The future is artificial.

Definition of the word Gemini: Constellation, Astrological Sign or Twins in Latin.

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Bitcoin marches on through $40,000

Bitcoin surges

Bitcoin extended its rally overnight, climbing past the $41,000 level for the first time since May 2022.

The price of Bitcoin quickly soared above $41,000 easily taking out $40,000. The cryptocurrency is up around 13% over the past month and up more than 130% year to date. But the price of Bitcoin is down more than 40% from its all-time high in 2021.

In November 2023, analysts reportedly said Bitcoin could soar to as high as $150,000 in 2025, as it rides a new bull cycle. Other altcoins are available, as they too ride the coat tails of Bitcoin’s encouraging move. Be aware though, Bitcoin is a volatile asset and as such is subject to dramatic moves in either direction. BE CAREFUL!

Bitcoin price snapshot 09:35GMT 4th December 2023

Why is Bitcoin on a tear?

Cryptocurrency industry analysts have suggested this bull-run could lead to fresh all-time highs in 2024 above $100,000.

Excitement around a Bitcoin ETF being approved in the U.S. in 2024 as well as the process of Bitcoin halving due in April 2024 is fueling this rally in cryptocurrencies.

Many also say the crypto industry is enjoying a market climb due to the FTX case and the Binance settlement with the U.S. Department of Justice (DoJ) as the two outstanding issues that were holding up the crypto market were resloved.

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Gold soars to a new record December 2023

Gold price

Gold was on a tear overnight 3rd December 2023 ripping to a new all-time intra-day high of 2135.

Gold prices are on course to hit fresh highs in 2024 and could remain above $2,000 levels, analysts predict. Geopolitical uncertainty, a likely weaker U.S. dollar and possible interest rate cuts are cited as the drivers.

Prices of the precious metal have risen for two consecutive months. Gold tends to perform well during periods of economic and geopolitical uncertainty due to its status as a reliable store of value.

Gold price 5 day 2023

Gold soars to a new record December 2023

Gold price 1 month 2023

Gold soars to a new record December 2023

Gold at $2500?

It has been estimated that gold prices could reach up to $2,200 by the end of 2024. Some have even suggested it could go as high as $2,500.

This was the highest level ever recorded since the gold price began to be tracked in 1970.

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Robinhood, the stock trading app to launch in UK

Robinhood app

Online investments app Robinhood said Thursday 30th November 2023 that it’s set to launch its platform in the U.K. in early 2024, marking the company’s third attempt at cracking international expansion.

Features on offer by the firm include the ability to choose from 6,000 U.S. stocks including Tesla, Amazon and Apple, and 24-hour trading five days a week. However, Robinhood will not offer U.K. stocks to begin with but will look to add them as it brings more products into the platform later. The U.K. version won’t include options and other derivatives at launch, either.

FCA warned of ‘gamification’

The FCA has previously warned about ‘gamification’ of investments, something the U.S. Securities and Exchange Commission is also worried about. Companies are obligated to respect consumer standards set out by the regulator.

Regulators are concerned brokerage apps like Robinhood and eToro, which engage retail investors with stimulating features like colourful graphics, push notifications, and a game-like interface, may encourage excessive trading that harms investors but is profitable for the market-makers.

Safeguards

Customer cash will be held in segregated accounts protected by U.S. Federal Deposit Insurance Commission insurance, Robinhood said, rather than the U.K. Financial Services Compensation Scheme. Robinhood users will be able to make a 5% annual yield on cash held in their accounts.

This will be the third attempt by Robinhood to launch in the UK.

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Elon Musk and his ‘X’-rated comment

Tweet!

It has been a turbulent time at Twitter since Musk’s acquisition and the subsequent renaming of the company to X.

X is a subsidiary of X Holdings Corp., which is owned by Elon Musk. X has faced several issues and controversies since its inception, such as advertiser boycott, declining user base, staff layoffs, and more recently accusations of antisemitism and even more recently of a profane outburst levelled against X advertisers.

What a mess

Elon Musk launches attack on X advertisers in a profanity-laced outburst.

Musk has slammed advertisers that have left X, warning they will kill the social media platform. At an event in New York, he accused companies that have joined an advertising boycott of the site formerly known as Twitter of trying to blackmail him.

Musk tells X (Twitter) advertisers to go ‘f**k yourselves,’ but admits it will die without them: Despite this, Musk refused to accept responsibility for the impact of his statements on X’s ability to do business. 

Instead, the billionaire insisted that if X (Twitter) went under, the blame would be entirely on the advertisers who fled as opposed to his decisions as its owner which more likely pushed them away.

His message to advertisers leaving X of: ‘Go f**k yourself’ – didn’t help matters as he admits responding to anti-Semitic post on X was one of the most foolish things he’s done on the platform.

Elon Musk is reported to have said on Wednesday 29th November 2023 that he regretted his November 15th tweet allegedly endorsing an anti-Semitic conspiracy theory.

Is the death knell of X and of a $44 billion investment?

Musk should be a force for good in the world – could that still happen?

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Could gold prices reach new all-time highs in 2024?

Gold a safe haven

Some expect gold to above climb $2,500

Gold prices are on track to rally to all-time highs in 2024 on the back of interest rates increases, inflation fear, looming recessionary concerns and geo-political unrest.

The precious metal is always sought after as a safe haven asset. The gold price hit a record intraday high of $2,072.5 on 7th August 2020, according to data. Some analysts say it could surpass that level and push beyond the record.

Another positive driver for gold is an anticipated peak in Fed rate hiking cycle as well as upcoming topping out of U.S. dollar strength.

Gold usually performs well during uncertain times

  • Gold tends to perform well in periods of economic uncertainty such as recessions and stagflation due to its status as a reliable store of value.
  • Gold is often used as a hedge against inflation.
  • Any type of recessionary move would be positive for gold.
  • Gold should trade higher when interest rates stop rising and the dollar retreats.
  • As interest rates rise, demand for gold drops as alternative investments like bonds become more appealing and yield better returns. These may now have peaked.
  • Gold prices tend to have an inverse relationship with interest rates.
  • Central bank purchases of gold have been consistently strong, alongside consumer demand for the precious metal.

Gold price year on year

  • Some analysts are particularly bullish on gold and have called for a target of $2,500 by the end of next year.
  • There has been a return of physical gold jewellery demand from China and India as both economies improve and retail spending returns.
  • First quarter gold jewellery demand in China was reported just shy of 200 tons. Analysts project more than 700 tons of jewellery demand from China by the end of 2023.
  • Chinese retail gold demand has been resilient in 2023 even as consumption of other commodities remained weak.

The target is $2,500 by the end of 2024

Much of this has to do with the fact that recessionary forces may take hold beginning early in 2024.

Let’s watch and see.

NOTE: This is not investment advice!

You must, as always do your own careful research before making an investment.

REMEMBER: RESEARCH! RESEARCH! RESEARCH!

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Is the shine returning for gold as investors place bets on rate cuts?

Gold

Gold prices on Monday 27th November 2023 climbed to a more than six-month high as the U.S. dollar weakened.

Investors, it is reported, have placed their bets, suggesting the Federal Reserve is finished with interest rate hikes.

Gold was up around 0.52% at $2,012 per ounce in early afternoon trading (London time). It reached a high of $2,017.82 earlier in the day. Gold futures for December 2023 hit $2,018.90 according to analysts’ data.

CME Fed watch tool

The dollar index, a measure of the greenback against major currencies, was 0.13% lower as markets price in a more than 90% chance the Fed will hold rates at its next two meetings.

Analysts at Goldman Sachs reportedly said that the outlook for 2024 is that gold’s ‘shine is returning’.

The potential upside in gold prices will be closely tied to U.S. real rates and dollar moves.

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Who’s now in charge at Binance?

Crypto

Binance is still open for business and is now being run by, Richard Teng. But who is the new boss of Binance?

Mr Teng, from Singapore joined Binance just over two years ago as the chief executive of the Singapore business. That was the year when Binance came under a Justice Department investigation, and as regulatory scrutiny of the company and Zhao intensified. Richard Teng was rapidly climbing the ranks in the background.

He only stayed in his original position as the Singapore CEO for five months, according to his LinkedIn page, before he was promoted to regional head of Europe, Asia and the Middle East and North Africa in April 2023.

Mr Teng later moved to become head of regional markets in May 2023 before he was appointed to the top job on Tuesday 21st November 2023.

In announcing his successor, Mr Zhao called Mr Teng a ‘highly qualified leader‘, adding that ‘with over three decades of financial services and regulatory experience, he will navigate the company through its next period of growth’.

Traditional financial background

Prior to joining Binance, Mr Teng worked in the more traditional financial sectors as a director of corporate finance at the Monetary Authority of Singapore (MAS) and a chief regulatory officer of the Singapore Exchange (SGX). He then moved on to the become chief executive of the Abu Dhabi Global Market (ADGM), an international financial centre in the United Arab Emirates, where he stayed for six years. The ADGM regulates the trading of digital assets.

In a statement on Wednesday 22nd November 2023, Mr Teng said he was honoured to take this position, adding that he would focus on reassuring Binance’s 150 million users about ‘the financial strength, security and safety of the company’.

Despite this, Mr Teng has reiterated that Binance is ‘here to stay‘, adding that company’s foundation stands ‘stronger than ever’.

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Nvidia’s AI chip boom continues, latest figures show

Nvidia AI chip

Nvidia’s revenue grew 206% from year 2022 during the quarter ending 29th October 2023, according to data from Nvidia.

Net income, at $9.24 billion, or $3.71 per share, was up from $680 million, in the same quarter of 2022.

The company’s data centre revenue came in at: $14.51 billion, up a massive 279% and above consensus of $12.97 billion. Half of the data centre revenue came from cloud infrastructure providers such as Amazon, and the other from consumer internet and large companies, Nvidia said. Healthy uptake also came from clouds that specialized in renting out GPUs to clients.

Earnings: $4.02 per share, adjusted, vs. $3.37 per share expected

Revenue: $18.12 billion, vs. $16.18 billion expected

The gaming segment contributed $2.86 billion, up 81% and higher than the $2.68 billion general consensus. Nvidia’s future guidance suggested $20 billion in revenue for Q4, implying a nearly 231% revenue growth.

Year on year Nvidia share price movement.

Year on year Nvidia share price movement – Nov 2022 – Nov 2023

During the quarter, Nvidia announced the GH200 GPU, which has more memory than the current H100 and an additional Arm processor onboard. The H100 is expensive and in demand. Nvidia said Australia-based Iris Energy, an owner of bitcoin mining data centers, was buying 248 H100s for $10 million, which works out around $40,000 each.

Nvidia’s revenue grew 206% year over year during the quarter ending 29th October 2023, according to data from Nvidia.

Nvidia share price moved down 1% in after-hours trading on Tuesday 21st November 2023 after the reporting fiscal Q3 results that surpassed predictions. But the company called for a negative impact in the next quarter because of export restrictions affecting sales to organizations in China and other countries.

‘We expect that our sales to these destinations decline significantly in the Q4 2024, though we believe the decline will be more than offset by strong growth in other regions’, Nvidia reported.

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OpenAI saga continues – I’m in, I’m out, I’m back. Altman is back after getting the sack!

OpenAI

At the speed of AI, the story at OpenAI moves at lightning speed.

Hundreds of OpenAI employees signed a letter demanding the OpenAI board resign or face an employee exodus to Sam Altman’s new venture at Microsoft ‘imminently‘.

The board then attempted to negotiate Altman’s return, but those talks were unsuccessful.

At the touch of a button – resignation letter sent to the OpenAI board of directors

To the Board of Directors at OpenAI

OpenAI is the world’s leading AI company. We, the employees of OpenAI, have developed the best models and pushed the field to new frontiers. Our work on AI safety and governance shapes global norms. The products we built are used by millions of people around the world. Until now, the company we work for and cherish has never been in a stronger position.

The process through which you terminated Sam Altman and removed Greg Brockman from the board has jeopardized all of this work and undermined our mission and company. Your conduct has made it clear you did not have the competence to oversee OpenAI.

When we all unexpectedly learned of your decision, the leadership team of OpenAI acted swiftly to stabilize the company. They carefully listened to your concerns and tried to cooperate with you on all grounds. Despite many requests for specific facts for your allegations, you have never provided any written evidence. They also increasingly realized you were not capable of carrying out your duties, and were negotiating in bad faith.

The leadership team suggested that the most stabilizing path forward – the one that would best serve our mission, company, stakeholders, employees and the public – would be for you to resign and put in place a qualified board that could lead the company forward in stability. Leadership worked with you around the clock to find a mutually agreeable outcome. Yet within two days of your initial decision, you again replaced interim CEO Mira Murati against the best interests of the company. You also informed the leadership team that allowing the company to be destroyed “would be consistent with the mission.”

Your actions have made it obvious that you are incapable of overseeing OpenAI. We are unable to work for or with people that lack competence, judgement and care for our mission and employees. We, the undersigned, may choose to resign from OpenAI and join the newly announced Microsoft subsidiary run by Sam Altman and Greg Brockman. Microsoft has assured us that there are positions for all OpenAI employees at this new subsidiary should we choose to join. We will take this step imminently, unless all current board members resign, and the board appoints two new lead independent directors, such as Bret Taylor and Will Hurd, and reinstates Sam Altman and Greg Brockman.”

In just 5 days

  • Sam Altman sacked from OpenAI.
  • Altman appears to move to Microsoft.
  • OpenAI staff revolt.
  • No confidence in OpenAI board.
  • Space for staff to move to Microsoft and create new AI company under Altman’s leadership.
  • OpenAI mass employee resignation letter emerges.
  • Microsoft CEO Nadella says OpenAI governance needs to change no matter where Altman ends up.
  • Altman back at OpenAI after board changes.

Now, Altman is back after getting the sack.

So, is all OK at OpenAI? I asked CHATGPT the question, here is the answer…

Searching for: OpenAI news

Generating answers for you…OpenAI

It seems that there is some turmoil at OpenAI, the company behind ChatGPT. According to the latest news, the former CEO Sam Altman, who was ousted and hired by Microsoft last week, has made a stunning return to OpenAI as the CEO again1. The company also announced a new board of directors, including Bret Taylor, the former chair of Twitter1. This comes after a series of protests and resignations from OpenAI employees, who were unhappy with the direction and culture of the company2. OpenAI also unveiled new models and products at its DevDay event, such as GPT-4 Turbo, Assistants API, GPT-4 Turbo with Vision, and DALL·E 3 API3. These are some of the developments that have been happening at OpenAI recently. I hope this answers your question. 😊

There you have it, sacked and now back!

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Nvidia stock closes at all-time high

AI chip image

Nvidia stock closes at all-time high, a day before earnings

Shares of Nvidia closed up 2.3% at an all-time high of $504 on Monday 20th November 2023. The record comes ahead of the company’s Q3 results due Tuesday 21st November 2023, when analysts are expecting to see revenue growth of over 170%.

And, if that’s not enough, the forecast for Q4, according to some analysts, is likely to show a number close to 200% growth.

Nvidia is still by far the market leader in GPUs for AI, but high prices and competition are fast becoming an issue.

Can Nvidia continue the AI ride and hold this remarkable market share position?

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Fired OpenAI co-founder Sam Altman to lead Microsoft’s new AI team

AI robot and human

Sam Altman, the former CEO of OpenAI, who was fired last week in a controversial board decision. 

According to the latest reports, Altman is joining Microsoft to lead a new AI research team that will focus on advanced and ethical AI development.

Altman is a well-known entrepreneur and investor who has been involved in several AI-related projects.

He was one of the co-founders of OpenAI, a research organization that aims to create artificial general intelligence (AGI) that can ‘benefit humanity without causing harm’ or being controlled by a few elite players.

Leadership and ideology clash

However, Altman’s vision and style clashed with some of the board members and researchers at OpenAI, who reportedly accused him of being too ambitious, secretive, and authoritarian. They also reportedly claimed that he was pursuing a dangerous goal of creating artificial superintelligence (ASI).

The disagreements escalated when Altman announced a partnership with Microsoft in 2023, which gave Microsoft exclusive access to OpenAI’s GPT-4 Turbo model, a powerful natural language processing system that can generate realistic text on any given topic. 

Some of the OpenAI staff and community members reportedly felt let-down by this deal, which they saw as a violation of OpenAI’s original mission of creating and sharing ‘AI for the common good’.

On Friday 17th November 2023, the board of OpenAI voted to remove Altman as CEO, citing irreconcilable differences and lack of trust. He was replaced by Emmett Shear, the former CEO of Twitch, who promised to restore transparency and collaboration at OpenAI.

Altman to join Microsoft

Altman did not comment on his dismissal. However, on Monday 20th November 2023, he rocked the AI world by announcing he was joining Microsoft as the head of a new AI research team.

He reportedly said that he was excited to work with Microsoft’s talented people and that he would continue to pursue his vision of creating beneficial and ethical AI for humanity. 

Altman’s move to Microsoft has sparked mixed opinions from the AI community. Some have praised him for his innovation and courage, others have criticized him for his arrogance and recklessness.

There were reports over weekend suggesting employees and investors including Microsoft were pushing for Mr Altman to be reinstated. Some employees resigned in support of Altman.

Some have expressed concern about the potential impact of his new role on the future of AI development and regulation.

Where do OpenAI, Microsoft and the AI go from here?

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Microsoft announces custom AI chip November 2023

Art impression of AI chip

Microsoft is working on its own artificial intelligence chip, code-named Athena, that could compete with Nvidia’s products.

The company introduced two new microchips.

The first, its Maia 100 artificial intelligence chip, could compete with Nvidia’s highly sought-after AI graphics processing units.

The second, a Cobalt 100 Arm chip, is aimed at general computing tasks and could compete with Intel processors.

The chip is designed for training large language models (LLM’s) like ChatGPT and powering AI applications. Microsoft has been developing the chip since 2019 using Taiwan Semiconductor’s 5-nanometer process.  The chip is currently being tested by a small select group of Microsoft and OpenAI employees.

Long-term objective

Microsoft’s objective is to reduce its dependency on third-party hardware providers and to customize its AI infrastructure for its own projects.

Microsoft has invested billions in OpenAI, which makes ChatGPT, to enhance its position in the AI field. The Athena chip could also enable Microsoft to add AI capabilities to its Office products and GitHub, but it has already achieved this using the OpenAI system.

Microsoft has not announced when the chip will be available to the public or to its Azure cloud customers.

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U.S. inflation flat for October from September 2023, core CPI hits two-year low giving a boost to equities

U.S. inflation flat in October - trending down.

U.S. Inflation was flat in October from the previous month, providing a positive sign that high prices are finally easing their tight grip on the U.S. economy. Is this also a green light for the Federal Reserve to stop raising interest rates.

The consumer price index (CPI) was flat in October 2023 from the previous month but up 3.2% from a year ago. Both were below analysts’ estimates, sparking a major stock market rally.

Excluding volatile food and energy prices, the core CPI rose 0.2% and 4%, against the forecast of 0.3% and 4.1%. The annual rate was the smallest increase since September 2021.

The flat reading on the headline CPI came as energy prices declined 2.5% for the month, offsetting a 0.3% increase in the food index.

Traders do not anticipate that the Fed will raise interest rates in December 2023, according to data from the CME Group.

Traders do not anticipate that the Fed will raise interest rates in December 2023, according to data from the CME Group.

U.S. Treasury yields fall

U.S. Treasury yields fell on Tuesday 14th November 2023 as key inflation data showed a surprisingly ‘soft’ change in prices last month.

The 10-year Treasury yield fell to about 4.45%. The 2-year Treasury yield fell more to under 4.9%.

Good data

Inflation stabilising, yields falling and equities up – are the stars aligning for a stock market rally leading into Christmas 2023?