Category: Financial News


In this category, Latest Financial News visitors can find everything that Traders-Paradise finds it is related to the educational material existing here. As the name suggests it is news but ONLY related to Traders-Paradise’s tutorials, courses, guides about trading, and investing.

Here the readers can find posts and articles about recession and how to overcome it. Many trading or investing strategies are explained here. For example, why to use open interest strategy when investing, or growth stock investing strategy.
Here, our experts and journalist are taking examples from the real-life. it is usually breaking news, and use them to explain what is the best solution for traders and investors over a given time or related to the particular event.
Also in Latest Financial News readers can find an explanation of, for example, ratios useful to measure the particular market conditions.

Also, Traders-Paradise gives you some clues on how to react to changes in the markets, no matter if it is the stock market, the Forex market, or any other.
The main aim of the Latest Financial Market News is to connect the real events with the theory. Traders-Paradise uses real-life examples to explain the theoretical rules of investing and trading.
Also, when some breaking out news appear Traders-paradise will write about it but at the same time, the visitors will have a comprehensive analysis of what caused that event and how to overcome it.
Traders-Paradise hopes that this category will be very useful for its visitors and that they will find it helpful.

  • Danske Bank Closed Branch in Estonia – Money Laundering Scandal Saga

    Danske Bank Closed Branch in Estonia – Money Laundering Scandal Saga

    1 min read

    Danske Bank Closed Branch in Estonia - Money Laundering Scandal Saga

    Danske Bank in Tallinn, Estonia

    Estonia ordered Danske Bank to close its local branch within months on Tuesday.

    Danish and Estonian regulators faced an EU investigation into their efforts to prevent one of the largest money laundering scandals ever.

    Danske Bank’s Estonian branch was found to have helped funnel some 200 billion euros ($226 billion) in suspicious payments from Russia, ex-Soviet states and elsewhere.

    According to OCCRP (Organized Crime and Corruption Reporting Project), Danske Bank Estonia is already implicated in other money-laundering schemes, involving billions of dollars from Azerbaijan flowing through the branch, some of which ended up in the pockets of European politicians who praised the Baku regime, a chronic human rights abuser.

    Another investigation, the Russian Laundromat, revealed that US $20–80 billion was moved out of Russia through a network of global banks, including Danske.

    Danske Bank Estonia is already implicated in other money-laundering schemes, involving billions of dollars from Azerbaijan flowing through the branch.

    This ultimatum was made public as Danish and Estonian regulators found on Tuesday they are being investigated by the European Union’s own banking watchdog.

    Laundry and run

    The Danish bank is being investigated in Estonia, the US, Denmark, the UK, and France for handling billions of dollars that flowed through its Estonian branch on behalf of non-residents from Russia and other former Soviet states between 2007 and 2015.

    One of the banks mentioned was the little-known Promsberbank, based near Moscow, that lost its license in 2015. Promsberbank collapsed in 2016 after it transpired that some three billion roubles had disappeared from its accounts.

    One of Promsberbank’s board members was Vladimir Putin’s cousin, Igor Putin. It looks he was involved in the Russian Laundromat scheme.

    The Danske Bank case focuses on money moved between 2007 and 2015. The questions about the supervision of the Danish bank were raised, prompting the EU’s executive European Commission to ask the European Banking Authority (EBA) to investigate.

    The EBA’s investigation will take two months, and if it finds a breach of EU law, it can make recommendations to the two regulators to address failings.

    Danske Bank is not alone

    Swedish television said it had uncovered documents connecting the bank to suspicious transactions with Danske in Estonia.
    And Swedbank defended its money laundering rules and controls.

    Swedbank spokesman Gabriel Francke Rodau said that fighting money laundering was one of Swedbank’s highest priorities.

    “We are comfortable with the systems and processes we have to prevent and avert money laundering. When we get signals, we act,” he said.

    The Swedish TV (SVT)  said that transactions by 50 of Swedbank’s clients should have raised red flags as they were companies with no visible operations, had unknown beneficial owners or were represented by suspected “goalkeepers”, people who only provide a front for an organization.

    “The investigation covers more than 1,000 of Swedbank’s clients in high-risk countries who are known from the money laundering scandal in Danske Bank,” SVT states on its website.

    The bottom line

    So, as we can see, criminals don’t need bitcoin to launder money.
    Traditional banks and fiat are good enough for that.

    risk disclosure

  • Facebook Accused of Behaving Like ‘digital gangsters’

    Facebook Accused of Behaving Like ‘digital gangsters’

    2 min read

    Facebook Accused of Behaving Like ‘digital gangsters’
    UK parliamentary commission has accused Facebook to act as a ”digital gangsters”.

    After 18 months, 73 witnesses, 4,350 questions, and innumerable hours of testimony, British lawmakers presented a finding on Facebook’s year. Direct from hell.

    A report from this UK body has taken direct aim at Facebook CEO Mark Zuckerberg, accusing him of “contempt.”

    A UK parliamentary committee published a report on Monday, 02/18/2019, accusing Facebook of putting profit over privacy, misleading lawmakers, and being a “digital gangster” that considers itself above the law.

    British politicians also said democracy was “at risk” from foreign countries trying to influence UK elections through social media ads.

    The new report by British lawmakers is brutal to Facebook and it’s CEO Mark Zuckerberg. They said that Facebook “intentionally and knowingly” obstructed U.K. data privacy and anti-competition laws. And that’s why it urgently needs to be regulated and investigated.

    Facebook has shown the arrogant and dishonest face.

    Mark Zuckerberg refused to present himself to the committee.

    To cite the report:

    “Facebook seems willing neither to be regulated nor scrutinized…

    Facebook intentionally and knowingly violated both data privacy and anti-competition laws …

    We consider that data transfer for value is Facebook’s business model and that Mark Zuckerberg’s statement that ‘we’ve never sold anyone’s data’ is simply untrue.”

    In the 108-page document, lawmakers called for the making of an independent regulator for social media sites and a mandatory code of conduct that. If someone breaches it, their suggestion is – “large fines.”

    Mark Zuckerberg continually refuses to show the leadership and personal responsibility that should be expected from someone who sits at the top of one of the world’s biggest companies, says the committee.

    Damian Collins, chair of the committee, said on the committee’s website: “Mark Zuckerberg continually fails to show the levels of leadership and personal responsibility that should be expected from someone who sits at the top of one of the world’s biggest companies.”

    This was, however, not the only reason why British politicians accused Facebook of behaving like “digital gangsters” in the online world.

    “Companies like Facebook should not be allowed to behave like ‘digital gangsters’ in the online world, considering themselves to be ahead of and beyond the law,” the report said.

    “We are open to meaningful regulation and support the committee’s recommendation for electoral law reform,” Karim Palant, Facebook UK public policy manager, was quoted as saying by The Guardian.

    But, something has to be noted, the problem is bigger than just one company. Google and YouTube, which are barely mentioned in the report, play almost as important a role in the dissemination of misinformation online. And they are happy to profit from it. As the information commissioner, Elizabeth Denham has warned, we are now being sold political ideas online with the same techniques that are used to sell shoes and holidays.

    Buying the wrong ideas is less obvious than the pain of old-fashioned shoes. The political sale is much more easily made.

    There is a paradox of the amazing effectiveness of Facebook and YouTube when it comes to the distribution of ideas.

    Some people trust what they find there.

    The online channels, seem to offer intimacy to their users. But this fake intimacy is, in reality, a place where people can be more manipulated than ever before. Well, the advertisers know much more about us than they could before we entered it.
    But, Facebook wants you to know that it is turning. Its ads tell you so. Its PR hires tell you so.

    “While we still have more to do, we are not the same company we were a year ago,” Karim Palant, U.K. public policy manager at Facebook, said.

    But the report requests for significant changes to the way the UK regulates its elections and technology, including:

    • Stricter rules that will force tech firms to take down illegal content on their site
    • A code of ethics that defines “harmful content”
    • An independent regulator to oversee enforcement of that code
    • New laws around political advertising online

    The UK Culture Secretary Jeremy Wright will head to the US this week to meet with the heads of major tech firms, including Zuckerberg. Wright wants to talk about dangerous content online.

    risk disclosure

  • New Elon Musk’s AI Fake Text Generator is Too Dangerous to Release

    New Elon Musk’s AI Fake Text Generator is Too Dangerous to Release

    2 min read

    New Elon Musk’s AI Fake Text Generator is Too Dangerous to Release
    We are all aware of the problem of fake news online, and not only online.  

    Elon Musk-backed AI Company claims it made a Text Generator that’s too dangerous to release.

    What is it all about?

    The OpenAI has developed an AI system that can create such impressive fake news content. But the group is too afraid to release it publicly. Their fears are referring to misuse.

    They’re letting researchers see a small part of their work.

    So we cannot say they are hiding it completely. But, the group’s fear here is very weird.

    The developers used 40GB of data pulled from 8 million web pages to train the GPT-2 software. That’s ten times the amount of data they used for the first of GPT.

    This time they trailed dataset together by trolling through Reddit. And they were selecting links to articles that had more than three upvotes. When the training process was complete, they found that the software needs a small amount of text to continue writing.

    The software has trouble with “highly technical or esoteric types of content”. But when it comes to a more conversational type of writing it generated “reasonable samples” 50 percent of the time.

    “Our model, called GPT-2, was trained simply to predict the next word in 40GB of Internet text,” writes a new OpenAI blog. “Due to our concerns about malicious applications of the technology, we are not releasing the trained model. As an experiment in responsible disclosure, we are instead releasing a much smaller model for researchers to experiment with, as well as a technical paper.”

    AI is good but risking

    OpenAI, a nonprofit research company backed by Elon Musk, Reid Hoffman, Sam Altman, and others, says its new AI model, called GPT2 is so good and the risk of malicious use so high. That’s why they are breaking from its normal practice of releasing full research to the public. Instead, they will allow more time to discuss the ramifications of this technological discovery.

    How does it work? Here is one example.

    The software was supplied this paragraph:

    ”In a shocking finding, scientist discovered a herd of unicorns living in a remote, previously unexplored valley, in the Andes Mountains. Even more surprising to the researchers was the fact that the unicorns spoke perfect English.”

    Based on two sentences, it was able to continue writing a news story for another nine paragraphs in a fashion that could have seemingly been written by a human being.

    Here are the next few sentences that were produced by the machine:

    ”The scientist named the population, after their distinctive horn, Ovid’s Unicorn. These four-horned, silver-white unicorns were previously unknown to science.

    Now, after almost two centuries, the mystery of what sparked this odd phenomenon is finally solved.

    Dr. Jorge Pérez, an evolutionary biologist from the University of La Paz, and several companions were exploring the Andes Mountains when they found a small valley, with no other animals or humans. Pérez noticed that the valley had what appeared to be a natural fountain, surrounded by two peaks of rock and silver snow.”

    The Guardian was able to take the software for a test and tried out the first line of George Orwell’s Nineteen Eighty-Four: “It was a bright cold day in April, and the clocks were striking thirteen.”

    The AI program selected among the tone of the choices and proceeded with own dystopian science fiction:

    ”I was in my car on my way to a new job in Seattle. I put the gas in, put the key in, and then I let it run. I just imagined what the day would be like. A hundred years from now. In 2045, I was a teacher in some school in a poor part of rural China. I started with Chinese history and history of science.”

    What a story!!!

    Can you imagine what such a system could do, for example, with president candidate biography?

    The assumptions of this are why OpenAI says it’s only releasing publicly a very small portion of the GPT-2 sampling code.
    It’s not releasing any of the dataset, training code, or “GPT-2 model weights.”

    The OpenAI blog announces this:

    “We are aware that some researchers have the technical capacity to reproduce and open source of our results. We believe our release strategy limits the initial set of organizations who may choose to do this, and gives the AI community more time to have a discussion about the implications of such systems.”

    Fake news is the obvious potential downsides. The AI’s is unfiltered nature. It is trained on the internet, so it is not hard to inspire it to generate biased text, conspiracy theories and so on.

    “We need to perform experimentation to find out what they can and can’t do,” said Jack Clark, the nonprofit company’s head of policy. “If you can’t anticipate all the abilities of a model, you have to prod it to see what it can do. There are many more people than us who are better at thinking what it can do maliciously.”

    Yes, keep this AI away from using a bit more time, please.

    The bottom line

    AI, Artificial intelligence can be extremely useful for everyday life to the implementation in the stock market. A lot of modern tools we are using every day have some part of AI. It is a high-tech’s geeks dream to implement AI everywhere. But it isn’t possible. Something has to be done by humans.

     risk disclosure

  • Swedish Krona set on volatile January Inflation

    Swedish Krona set on volatile January Inflation

    2 min read

    Swedish Krona set on volatile January Inflation
    February 18, 2019
    The Swedish krona is the worst-performing significant currency this year. It faced volatility on Swedish inflation data Tuesday. It looks the markets may be underestimating the risk for a surprise.

    According to SEB AB January is the month of the year with the most volatile inflation data. But a check of one-week price fluctuations in the euro-krona exchange rate implies traders are relatively satisfied.

    One-week implied volatility in the cross is trading around 50 basis points below its one-year average. The relative premium to own exposure to short-term risks stands below par. That suggests investors can hedge themselves through insignificantly under-priced option plays.

    The Swedish krona has been damaged this year by doubt that the country’s central bank can stick to a plan to hike interest rates in the second half of the year.  Karl Steiner, a strategist at SEB said that Inflation is the second-biggest driver for the krona among Swedish data and events, after Riksbank policy announcements.

    “Stars seem to be aligning for out-sized moves in the krona considering the event risks that lie ahead,’’ said Fredrik Lockne, an options specialist at SEB. “Implicit volatility looks rather cheap, in particular over the two-week tenor which captures both inflation and growth data.’’

    January data has the obvious inclination for downside surprises in headline inflation, at 71 percent of the time over the past seven years, SEB said. Swedish consumer prices are forecast to have dropped 0.7 percent in January on a monthly basis, from a 0.4 percent rise in December, as many stores cut prices after Christmas holidays. Inflation is forecast at 2.2 percent in annual terms, versus 2.0 percent in December.

    Swedish Krona set on volatile January Inflation 1

    Image source Bloomberg: Swedish krona

    Best Exchange Rate: 10.6955 on 29/08/2018
    Worst Exchange Rate: 0 on 18/02/2019
    Mid Exchange Rate: 10.3044 on 17/07/2018

    Other currencies:

    EUR/USD

    The trend is bearish in the 1-hour chart. Intraday resistance is at 1.1341 price level. This means, as long as the price stays below 1.1341 resistance level, you should look for sell trades. If bullish candlestick closes above 1.1341 critical resistance level, then down trend is going to end.

    GBP/USD

    The trend is bearish in the 1-hour chart. Intraday resistance is at 1.2995 price level. As long as the price stays below 1.2995 resistance level, you should look for sell trades. If bullish candlestick closes above 1.2995 resistance level, which stands as critical, then down trend is going to end.

    USD/JPY

    The trend is bullish in the 1-hour chart. Intraday support is at 110.08 price level. As long as the price stays above 110.08 support level, you should look for buy trades. If bearish candlestick closes below 110.08 critical support level, then up trend is going to end.

    USD/CAD

    The trend is bullish in the 1-hour chart. Intraday support is at 1.3195 price level. So, as long as the price stays above 1.3195 support level, look for buy trades. If bearish candlestick closes below 1.3195 critical support level, then up trend is going to end.

    USD/CHF

    The trend is bearish in the 1-hour chart. Intraday resistance is present at 1.0110 price level. So, as long as the price stays below 1.0110 resistance level, look for sell trades. If bullish candlestick closes above 1.0110 critical resistance level, then down trend is going to end.

    risk disclosure

  • Wild ride: Dow Jones Rise 250 Points

    Wild ride: Dow Jones Rise 250 Points

    2 min read

    Wild ride: Dow Rise 250 Points
    Stocks rose on Friday amid increasing hopes for a U.S.-China trade deal as equities were on pace to post another solid weekly gain.

    According to CNBC, The Dow Jones Industrial Average jumped 250 points as J.P. Morgan Chase and Caterpillar outperformed. The S&P 500 gained 0.76 percent, led by financials and tech. The Nasdaq Composite advanced 0.4 percent.

    The 30-stock Dow and Nasdaq were both on pace to post their eighth consecutive weekly gain. The S&P 500, meanwhile, was on track for its seventh weekly gain in eight. The indexes were all up more than 1 percent entering Friday’s session.

    Here are the hottest things to know about stocks

    • The Dow Jones Industrial Average, S&P 500 and Nasdaq posted their fourth straight day of gains.
    • The Dow has added more than 1,000 points from Friday to Wednesday.
    • Big gainers on Wednesday included Chipotle Mexican Grill, Fossil Group and Nektar Therapeutics.
    • The Consumer Price Index rose 0.5% in January, the strongest monthly increase since January 2017.
    • The 10-year Treasury note hit 2.91%, a four-year high.

    Stocks ended with sharp gains on Wednesday, February 14, after falling earlier in the session following reading on U.S. consumer inflation.

    The Dow Jones jumped

    The Dow Jones Industrial Average jumped 253 points or 1.03%. The S&P 500 rose 1.34% and the Nasdaq was up 1.86% as technology shares outperformed.

    The leading gainers on the Dow Wednesday were Nike Inc. (NKE – Get Report), Cisco Systems Inc. (CSCO – Get Report) and JPMorgan Chase & Co. (JPM – Get Report). They rose 3%, 2% and 2.3%, respectively.

    Daniel Deming, managing director at KKM Financial said: “I am a bit surprised the market has been able to maintain this upward trajectory at the level that it has… We had a little hiccup last week, but that was quickly priced out of the market. That tells me there is still money trying to seek a higher return, or at least take on more risk.”

    What did cause this Dow Jones jump

    Chinese President Xi Jinping said trade talks between the U.S. and China will continue next week in Washington. This comes after a U.S. trade delegation which was led by Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer visited Beijing this week.

    China and the U.S. are trying to hit a deal before a March deadline. If they don’t reach a deal by then, additional U.S. tariffs on Chinese goods could take effect. President Donald Trump, still, is considering pushing back the deadline by 60 days to give negotiators more time to reach a deal.

     

    Core inflation in the US in January rose 0.3%.

    Wall Street will be looking to the data to help it gain signs about the pace and trajectory of interest rate hikes from the Federal Reserve.

    “This is a strong number. What’s going to be interesting is how financial markets react,” said Luke Bartholomew, investment strategist at Aberdeen Standard Investments.

    “There’s a risk that this could pour fuel on the fire of last week’s market selloff.”

    Bartholomew added that the “Fed is now very likely to follow through on its plan to raise rates again in March.”

    The 10-year Treasury note yield rose to 2.91% on Wednesday, a four-year high.

    The Cboe’s Volatility Index often referred to as the “fear gauge,” fell back below 20.

    U.S. retail sales in January fell 0.3%, but economists had expected a gain of 0.2%. It looks like a not good hint.

    The Friday moves come after the Dow and S&P 500 fell on much weaker-than-forecast retail sales numbers.

    On the data front Friday, industrial production for January fell 0.6 percent. Economists, however, expected an increase of 0.3 percent. They failed once more.

    Consumer sentiment data are scheduled for release later on Friday.

    risk disclosure

  • Nasdaq’s loophole in rules is under investigation

    Nasdaq’s loophole in rules is under investigation

    2 min read

    Nasdaq’s loophole in rules is under investigation 3
    According to The Wall Street Journal,  Nasdaq’s loophole in rules is under scrutiny after a roller-coaster ride in the stock of one small company highlighted how firms can go public without ample shares to trade.

    So, what happened?

    Phunware Inc., a software company preparing to launch its own cryptocurrency, climbed about 3,750% over six trading days to hit an intraday high of $550 a share on January 10. Only 144,000 shares were eligible to freely trade during that period, according to the company. The stock closed at $113.41 on Tuesday.

    Nasdaq’s loophole in the rules 

    Nasdaq’s rules require companies listed on the exchange to have at least one million publicly held shares. The problem is that can incorporate shares which are restricted from trading. Such shares are those owned by employees or early investors who may be required to hold the stock for a period before selling.

    The important fact is that Phunware, Inc. has not issued dividends in more than one year.

    The important fact is that Phunware Inc. has not issued dividends in more than one year.

    Their stock has been volatile due to the small supply of shares that can be freely traded.

    Take a look at the chart below.

    Nasdaq’s loophole in rules is under investigation

    Image: screenshots from Finance Yahoo

    As soon as this week, Nasdaq will move to close the loophole by proposing to exclude restricted shares from the number that firms need to qualify for a listing, according to Nasdaq spokesman Joe Christinat. The Securities and Exchange Commission would need to approve the rule change.

    What really is Nasdaq’s loophole

    Shares of Phunware (NASDAQ: PHUN) rose 1,988% higher in January, according to data from S&P Global Market Intelligence. The provider of development tools for mobile apps, including a unique blockchain-based security token known as PhunCoin, started the month as a penny stock with a $310 million market cap.

    By the end of January, Phunware’s stock closed at nearly $300 per share and a total market value of $9 billion.

    Nasdaq’s loophole in rules is under investigation 2

    Image: screenshots from Finance Yahoo

    The surge started with Phunware establishing its merger with capital investment firm Stellar Acquisition III. The deal led Phunware onto the public markets after a decade of operations as a private company. During the period of two and a half years, they were collecting funds of Stellar Acquisition’s capital to use without a clear purpose.

    Actually, Phunware went public through an unusual backdoor combination.

    Blank-check company

    The Austin-based company merged with a blank-check company that already had a listing on the Nasdaq. Blank-check companies, they are also called special purpose acquisition companies, or SPACs. Their purpose is to raise money from public investors with the goal of using the proceeds to acquire an existing business. The arrangement has gained recognition in the past several years, and Nasdaq is the most popular exchange for blank-check listings.

    Share prices continued to soar as Phunware announced a handful of new patents and developer programs. That programs topped off by a launch platform for a public version of PhunCoin and a blockchain partnership with the powerful IBM.
    The stock has settled down a bit in February and is now trading just 752% higher since the new year.

    The rule change needs approval

    Nasdaq’s loophole has to be closed. The Securities and Exchange Commission would need to approve the rule change. “It shows a need for rethinking these rules,” said James Angel, a finance professor at Georgetown University whose research focuses on securities markets, in his statement for The Wall Street Journal. “We need to have enough shares in public circulation so we don’t have dislocations like we have seen here with Phunware.”

    Phunware recorded revenue of $19.1m and a net loss of $2.6m during the six months ended June 30, 2018. But, Phunware lost $25.9m in 2017. Before the merger, its auditor, Marcum, said that there was “substantial doubt” about its ability to remain solvent.

    Phunware is not a unique case.

    Some other lightly traded stocks that emerged from deals with Nasdaq-listed blank-check companies have also experienced wild price swings.

    Organogenesis Holdings, a developer of surgical and sports medicine products, resumed trading January 8 after merging with a SPAC late last year. The stock opened the following day at $15.60 a share and rose to an intraday high of $310.90 before closing at $82.35. Just 28,209 shares changed hands that day, according to FactSet.

    A large portion of Organogenesis’ shares was restricted and unavailable for immediate trading after the company’s merger with Avista Healthcare Public Acquisition.

    About 4 million Organogenesis shares were unrestricted on Jan. 8. Since then the number has risen to approximately 19 million, said Organogenesis spokeswoman, but she declined to comment on trading activity in the company’s stock.

    The market is still getting excited about crypto

    Phunware’s surge is proof positive that the market still can get excited about blockchain tools and cryptocurrency stocks. But we don’t have any actual business results available for this company yet. Is it an empty bubble with zero long-term value.? Or are we are witnesses of a future titan in the mobile app development market? Only time will tell. It is smart to stay on the sidelines until we know more about the new company’s business plans.

    The bottom line

    Truth is that blank-cheque companies are risky for investors because of their lack of operating history. But they are charming to exchanges, which compete for SPAC initial public offerings. About two years ago Nasdaq proposed to correct its rules to make it easier for blank-check companies to list on the exchange. But, facing shaded examples, Nasdaq ended up withdrawing the proposal last year.

    Phunware, together with its managers and early investors, are now preparing to make available an additional 21 million shares, which would significantly increase the float of the stock, according to a regulatory filing made on February 5.

    risk disclosure

  • Pound falls on Brexit stage fright and BoE Decision

    Pound falls on Brexit stage fright and BoE Decision

    2 min read

    Pound falls on Brexit stage fright and BoE Decision 1

    The Sterling pound yesterday dropped below 2-week lows in the early London session.

    The investors priced-in Brexit uncertainty ahead of a crucial meeting between Theresa May and the European Commission President.

    The GBP/USD currency pair dropped to new 2.5-week lows following the Bank of England‘s interest rate decision in the mid-European session.

    The GBP/USD currency pair yesterday dropped to a low of 1.2855 following the BoE rate decision before rallying to a high of 1.2997 on Mark Carney‘s balanced comments.

    Sterling is trading little changed at around mid 1.2900 before the UK Prime Minister Theresa May reaches Dublin to meet her Irish counterpart and discuss the problematical border plan.

    Cable (GBPUSD, often referred to as “The Cable”) tested fresh lows in the mid-1.2800s on Thursday. Although running to recover some ground later and close the day with small gains. It was a small drop in open interest and a decent raise in volume.

    There is a potential continuation of the bounce, which will leave at the same time occasional dips shallow.

    At the time of writing, the Pound was down 0.02% at $1.2932.

    Pound falls on Brexit stage fright and BoE Decision

    image Pound falls source Yahoo Finance

    The 4 hours chart shows that the pair quickly recovered above its 200 EMA, although it has already tested levels below it. A bearish 20 SMA keeps capping the upside, while technical indicators have recovered from oversold levels, now losing upward strength within negative levels, indicating that the risk of an upward extension remains limited. The pair would need to surpass the 1.3040 resistance to be able to extend its gains toward the 1.3100 price zone, yet as long as Brexit uncertainty prevails, the most likely scenario is sellers taking their chances on spikes above 1.3000.

    Support levels:  1.2925 1.2880 1.2835
    Resistance levels: 1.2995 1.3040 1.3090

    What about shares?

    UK shares were having a good day on Tuesday, with the FTSE 100 has gone from strength to strength as the morning has progressed.

    Shortly before midday, the UK’s benchmark share index was up 106.95 points, or 1.5%, at 7,141.08.

    The index was given a lift early on by BP’s better-than-expected results, which have pushed the oil giant’s shares up more than 5%.

    Shares were also boosted after the pound fell back in the wake of the disappointing survey of the UK services sector.
    Currently, rate is $1 = £0.7728.

    Shares often rise when sterling falls. The weaker currency lifts the value of companies’ overseas earnings when they are brought back to the UK and converted back into pounds.

    Governor Carney’s said on Thursday, that further rate hikes should not be priced out of the Pound.

    Focus returns to Brexit and whether Theresa May can find more support for concessions to deliver a deal pleasant to Parliament.

    All options are still on the table

    With the UK government still working its way to the UK parliament with the Brexit agreement approval, the Brexit uncertainty is set for the next weeks. The 2019 GBP/USD forecast highly depend on the result of the Brexit deal going forward. All options are still on the table leaving different GBP/USD scenarios all applicable.

    Sterling could fall past 1.2000 level that historically frames the bottom and serves as a territory of rebound for GBP/USD in case of hard Brexit. The reasonable solution for all interested parties in the UK parliament, the UK government and in the EU should be to avoid the scenario of no-deal Brexit. That would throw the UK economy and Sterling into confusion with the Bank of England saying the bottom for Sterling would be some 25% lower.

    Also, no transition Brexit would realize an unfavorable scenario for Sterling with falling to the lowest level since 1985 of 1.0700. Such scenarios are still considered doubtful. Should such scenarios develop, it is almost a sure shot for traders while buying GBP/USD at historical or/and cyclical lows.

    The chance of the UK finally making some kind of Brexit deal with the European Union is still the mainstream scenario for the UK and for GBP/USD.

    A no-deal Brexit is still not the most probable scenario for the UK economy going into 2019. The UK parliament stands in deep opposition to the Brexit deal agreed by the government.

    The ruling Conservative party is divided profoundly.

    risk disclosure

  • QuadrigaCX CEO died – no one has access to cold storage

    QuadrigaCX CEO died – no one has access to cold storage

    QuadrigaCX CEO died - no one has access to cold storage 3
    Founder of QuadrigaCX, 30-year-old Gerald Cotten, unexpectedly had died in December while in India, from Crohn’s disease. He reportedly had sole access to the cold wallet. QuadrigaCX owes its customers $190 million and cannot access most of the funds.

    According to a Jan. 31 affidavits filed by his widow Jennifer Robertson and dug up by Coindesk, Cotten had sole access to most of the exchange’s $190 million worth of crypto held in cold storage.

    No one appears to be able to access QuadrigaCX

    Because when he died, Cotten took the keys with him.

    QuadrigaCX CEO died - no one has access to cold storage 1

    His death is a very sad moment for the family, big loss, of course. But customers are in sorrow, too.

    In a sworn affidavit filed Jan. 31 with the Nova Scotia Supreme Court, Jennifer Robertson, identified as the widow of QuadrigaCX founder Gerald Cotten, said the exchange owes its customers roughly $250 million CAD ($190 million) in both cryptocurrency and fiat.

    The customers of QuadrigaCX seem to be really worried as the Canadian crypto exchange can no longer access its cold storage and it owes its customers nearly $190 million, according to a report by CoinDesk.

    QuadrigaCX went offline a few days ago.

    Initially, it was thought that routine maintenance was the cause of the sudden malfunction. But now it seems that there is something bigger behind. Bigger than what was initially thought. Reddit users are saying it is just another ‘Exit Scam’.

    However, Quadriga users, are now concerned that the unannounced downtime for the QuadrigaCX website, is a sign that something might be very wrong with the crypto exchange.

    Users correspond

    Some Reddit users asked if QuadrigaCX shouldn’t have let their customers know before taking its site down. Another Reddit user speculated as to whether the exchange had gone bankrupt due to an inability to find a suitable bank to host an account and facilitate transfers.

    Reddit users are asking for proof of death, while one user claimed that the exchange, most likely, couldn’t access assets in cold storage, as the keys were only known to Cotten.
    QuadrigaCX CEO died - no one has access to cold storage
    According to the affidavit, the cryptocurrency exchange holds nearly 26,500 Bitcoin ($92.3 million USD), 11,000 Bitcoin Cash ($1.3 million), 11,000 Bitcoin Cash  SV ($707,000), 35,000 Bitcoin Gold ($352,000), nearly 200,000 Litecoin ($6.5 million) and about 430,000 Ether ($46 million), amounting to nearly $147 million.

    Speaking about the current difficult situation, Jennifer Robertson said, “The normal procedure was that QuadrigaCX founder and CEO Gerald Cotten would move the majority of the coins to cold storage as a way to protect the coins from hacking or other virtual theft.”

    She also added that the sole responsibility of handling the funds remained with Gerald Cotten and no one else has access to the exchange’s cold wallet.

    The board of the company encouraged its customers.

    They stated that the issue is being handled in the best possible way and an affidavit has been filed in the Nova Scotia Court requesting the authority to appoint a third party to help the exchange in finding a solution for the problem.

    If the application for creditor protection is accepted by the Courts, then the court might give QuadrigaCX at least 30 days of protection from its creditors.

    There is also a possibility that some of Quadriga funds are being stored on other exchanges, though this has not been confirmed.

    The Courts will rule on the request for creditor protection on February 5.

    Seems a bit suspicious that Gerald Cotten was the only one that had access to these coins. It is really hard to believe.

    But the whole enigma about crypto exchange QuadrigaCX become weirder because they claimed they used multi-sign wallets.

    It looks entirely as the result of poor governance and processes and that’s why we need regulated exchanges.

     

  • CRISIS – Analysts Have BLACK FORECAST FOR 2019

    CRISIS – Analysts Have BLACK FORECAST FOR 2019

    CRISIS - BLACK FORECAST FOR 2019Analysts have black predictions for the coming year. The crisis is knocking the door.

    By Traders-Paradise Team

    We will face the worst crisis, which is the analysts’ prediction. Here is the selection of their statements.

    “The European Union is about to implode this year.” investor Mitch Feierstein has predicted in a New Year episode of the Keiser Report. He also unveils which country will become the next Greece. The answer is surprising.

    This year will be hard for Europe not only due to Brexit. The other member states could also bring the bloc down, according to Feierstein. “Nationwide protests in France are only the first sign of looming wider unrest,” the analyst stated to Russia Today.

    “You are gonna see global unrest. I think you’ll it as a feature in Italy when the EU tries to bully them,” the British-American investor noted, citing infective “draconian austerity measures.”

    But, not only Italy but also France could follow the fate of debt-ridden Greece, Feierstein warned. He noted the low approval rating of President Emmanuel Macron, rising unemployment, and huge wealth inequality in the country.

    “Italy has got four trillion in loans they said there are not going repay… France has got a similar situation but they’ve got civil unrest with the population burning down Paris. So one of them will leave,” he predicted.

    Both countries have been breaking EU budget rules.

    After just one year of compliance in 2018, Paris announced that its budget deficit for 2019 is set to be 0.2 percent higher than the three percent threshold that the bloc’s rules allow. Brussels agreed to tolerate the breach. The same as it had been doing so for almost a decade before Macron’s presidency.

    Italy has also been at loggerheads with the 28-nation union. Last year, the EU Commission wanted to put Italy in an economic disciplinary program over a serious breach of EU regulations on debt. The standoff between Rome and Brussels was settled only in mid-December when Italy agreed to a budget deal despite domestic criticism from the opposition.

    But Mitch Feierstein is not alone.

    The economist Nouriel Roubini, also known as Dr. Doom also warns that we are in the midst of a new asset bubble that could end in a crash bigger than that in 2008.

    He made a list of 10 reasons why the world is at the threshold of a new crisis. Almost each of them begins and ends with a single name – Donald Trampa. But also insults on his account.

    As the first reason for the new crisis, Nouriel recognizes the fiscal-stimulus policies that are currently pushing the annual US growth rate above its 2% potential are unsustainable. His opinion is that by 2020, the stimulus will run out, and a modest fiscal drag will pull growth from 3% to slightly below 2%.

    Second, the US economy is now overheating, and inflation is rising above target. The US Federal Reserve will thus continue to raise the federal funds rate from its current 2% to at least 3.5% by 2020. That will likely push up short- and long-term interest rates as well as the US dollar.

    “The inflation is also increasing in other key economies, and rising oil prices are contributing to additional inflationary pressures. That means the other major central banks will follow the Fed toward monetary-policy normalization, which will reduce global liquidity and put upward pressure on interest rates.” – wrote Nouriel for The Guardian in September last year.

    In his explanation he wrote further:“… once a correction occurs, the risk of illiquidity and fire sales/undershooting will become more severe. There are reduced market-making and warehousing activities by broker-dealers. Excessive high-frequency/algorithmic trading will raise the likelihood of “flash crashes.” And fixed-income instruments have become more concentrated in open-ended exchange-traded and dedicated credit funds.”

    A new recession wave is coming

    Joze Mencinger,  Slovenian lawyer, economist, and politician, believes that the world is waiting for a new wave of economic instability. He is also called the architect of the Slovenian transition.  

    “Lately most of the crisis has been due to a lack of demand, because, mankind has no problem on the supply side, we have a problem on the demand side. We can simply say that the production of a car is cheaper than its sale,” Mencinger believes.

    If there is just one question in this test: is the world awaiting a new crisis? It is frightening, but these economists would complete a positive answer.

    There are many indications that growth will slow down. And this is in a way accepted today by IMF and World Bank officials in projections for next years.

    Contrary to these catastrophic forecasts, we have to notice. In order to make a recession, employment usually falls, and growth becomes negative, industrial production falls. All of these indicators are still strong and do not indicate that we are entering a recession. Of course, there are some events that can lead to it and this should be followed.

    The American stock market killed by a strong word

    December events on the US stock market are, of course, something to be watched.

    It all began before the Catholic Christmas when American brokers had the worst Christmas Day ever. The stock indices seemed to have been riding on the roller-cruiser because they returned to the highest level since 2009 the next day. Blumberg described this situation as bizarre.

    The financial sector overlooks the real sector. Because in the real sector there are no such swings.

    And it looks that the term ”bizarre” is just fine.

    It seems that in December last year the US stock market killed a too strong word. The market did not come as a result of the fact that the US Federal Reserve Administration raised interest rates. From the tightening of the monetary policy, the much worse exchange was a “verbal delict”.

    The market is always sensitive to what the officials of powerful states declare.

    And perhaps officials today are not completely aware of this, but their word affects the markets. This is not a new phenomenon. This is well known and therefore traditionally central bankers give very careful statements. The fact is that their word is analyzed and evaluated by the investment public. It can affect the movement of prices in the financial market.

    The bubble pops off in one place, but the crisis arrives everywhere

    Big crises are like blowing balloons. The bubble that began to swell at the end of December soon vanished.

    And it’s just when the indexes have come close to nearly 20 percent. This is considered a border, after which what investors call “bear market”. This means that the stock market is on a descending path and that the bad days are coming. Fortunately, this time it did not happen.

    But, unlike in 2008, the governments had the policy tools needed to prevent a free fall.

    ”The policymakers who must confront the next downturn will have their hands tied while overall debt levels are higher than during the previous crisis. When it comes, the next crisis and recession could be even more severe and prolonged than the last”, pointed Nouriel Roubini.

    The truth is one if we enter the new crisis. People around the world will pay these costs, and this will guarantee profits primarily to the super-rich. After all, they own property. Whether it is a state tax, an increase in the purchase price of goods and services, or any fees for services.

    With the cut of costs, the rest of the welfare state will make this enormous debt will pay billions of the people by their work and their mostly poor income.

     

  • Mass exodus if May allows no-deal Brexit?

    Mass exodus if May allows no-deal Brexit?

    3 min read

    Brexit deal, is it to be or not to be? 7
    More and more of British companies have already triggered emergency plans to manage with a no-deal Brexit. If the UK crashes out of the EU. Many of them will move operations abroad, claim the British Chambers of Commerce.

    It said that in recent days alone, it had been told that 35 firms had activated plans to move operations out of the UK, or were stockpiling goods to combat the worst effects of Brexit.

    It looks that many companies had acted to protect themselves since May’s Brexit deal was decisively rejected by MPs in the Commons earlier this month.

    The worst effects of a no-deal Brexit

    Actually, it has seen a sharp increase in companies taking actions to try and protect themselves from the worst effects of a no-deal Brexit. No deal has gone from being one of several possible scenarios to a firm date in the diary.

    Last week the Airbus, Europe’s largest aerospace manufacturer, which employs 14,000 people in the UK and supports another 110,000 through supply chains, warned of potentially disastrous effects of no deal on its UK activities.

    Tom Enders, the boss of Airbus, said: “Please don’t listen to the Brexiters’ madness, which asserts that because we have huge plants here we will not move and we will always be here. They are wrong.”

    UK exporters need access to the EU’s customs union

    Ever since the vote to leave the EU in 2016, business groups including the BCC and the Confederation of British Industry have lobbied ministers, arguing that UK exporters need access to the EU’s customs union. Because it allows goods to be imported tariff-free.

    The CEO of Airbus, the global leader in aviation, clearly warned that Brexit threatens to destroy the developmental life in the UK. He urged the British to “not listen to the madness of Brexit’s supporters,” who argue that Airbus will remain forever in the UK because there are huge factories in that country.

    Airbus has more than 14,000 employees in the UK. Another 110,000 people work in related activities.

    Britain should leave the EU on March 29th.

    The Dutch authorities have announced that they are in contact with more than 250 foreign companies planning to move to the Netherlands due to the UK leaving the European Union.

    “It is not so easy to move huge factories to other parts of the world, but the Airplane Industry is a long-term business. We will redirect investments quickly in case there is no agreement on Brexit with the European Union. Do not be misled, because a lot of countries are barely waiting to be opened factories of Airbus parts there”, said CEO of Airbus Tom Enders.

    But the prime minister May has insisted that the UK must leave both the customs union and EU single market. And that the referendum result of 2016 is to be fully respected.

    YOU WOULD LIKE TO READ Brexit deal, is it to be or not to be?

    Political debates about no-deal Brexit

    Labour MP Yvette Cooper has revealed to the Observer that two major employers in her West Yorkshire constituency had written to her. They are warning of the damaging effects of no deal on their UK operations. Burberry, the luxury goods manufacturer, employs 750 people in Castleford and Haribo, the confectioner, 700 across her constituency.

    Cooper is pushing for a Commons amendment that would pave the way for Brexit to be delayed until the end of this year. It looks that MPs may need to work longer and lose their February half-term break if Brexit is to be delivered on time.

    The extra hours will be needed to get its legislation onto the statute book before the planned 29 March exit.

    Theresa May will seek backing for her deal in another Commons vote on Tuesday.

    Commons leader Andrea Leadsom described bids by MPs to prevent a no deal as a “thinly veiled attempt to stop Brexit”.

    Writing in the Sunday Times, she said this would be an act of “constitutional self-harm”.

    The UK is due to leave the EU at 23:00 GMT on 29 March and the prime minister has faced repeated calls to rule out the prospect of leaving without a deal if no agreement can be reached.

    There is a grave concern about a bill, proposed by Labour MP Yvette Cooper. It could extend Article 50 – which triggers the UK’s withdrawal from the EU by nine months. That means the prime minister has to secure a deal by the end of February.

    The Queen does not show any political views but…

    The British Queen has called on citizens to find “common language” and respect “different points of view”.

    Commentators say the remarks are considered the debate about the Brexit, while deputies will have to vote again next week on an agreement to leave the European Union.

    BBC journalist who follows the royal family, Nicholas Bichel, believes that there is no doubt that the queen “sends a message”.
    The Queen, as head of state, remains neutral in political matters and usually does not express her views on the controversial issues.

    However, speaking at the event marking the 100th anniversary of the Sandringham Women’s Institute in Norfolk, the queen said: “The continued emphasis on patience, friendship, a strong community-focus and considering the needs of others are as important today as they were when the group was founded all those years ago.

    Of course, every generation faces fresh challenges and opportunities. As we look for new answers in the modern age, I for one prefer the tried and tested recipes, like speaking well of each other and respecting different points of view; coming together to seek out the common ground, and never losing sight of the bigger picture. To me, these approaches are timeless, and I commend them to everyone.”

    The queen’s call touched the same questions as her Christmas message, in which she invited people to treat others with respect, “even when there are deepest differences.”

    The Brexit rises tensions on the once-bloodiest border in Europe

    Thousands of people travel every day for over an hour and a half across the Irish Sea to the United Kingdom. This is not only an important commercial line but an important cultural connection for many in Northern Ireland, which now directly depends on the parliamentary majority Theresa May.

    The city Larne shows its loyalty to London. The roads through the nearby villages are painted in the colors of the crown. Local Unionists the Irish, angry opponents of Catholic Irish, have their MP, Sammy Wilson.

    “We have strong historical ties with the rest of the United Kingdom for hundreds of years. It’s a common faith, a common language, and we will not give up on that,” he said.

    Unionists, who support the government Theresa May, refuse to support her proposal for Brexit if their relationship with the rest of Britain become more difficult. And the prime minister has not given them a satisfactory proposal so far.

    The main concern of the Unionists is whether the peace agreement for Northern Ireland which has ended decades of bloodshed will be respected.

    May is facing the problem that Wilson is not ready for a compromise.

    Their interests would be satisfied if they would leave the EU without an agreement. Then, they could say that this item has been removed from the agenda.

    Wilson argues that the Union’s insistence on the status of the border is a violation of the terms of the peace agreement.

    “This would mean that our laws are written in Brussels, not London. In other words, we would be constitutionally separate from the rest of the United Kingdom, which is a breach of the Belfast agreement,” said Wilson.

    The MPs also proposed a number of amendments with alternative proposals, which include postponing the deadline for abandoning the EU on March 29, in order to avoid issuance prior to reaching an agreement.

    Many MPs fear that leaving the EU without a formal withdrawal agreement would cause chaos in ports and business disturbances, although some supporters of Brexit support this option, and believe that this view is excessive.

    YOU WOULD LIKE TO READ The Brexit deal that risks “letting the British people down”

    Another amendment concerns the escape and ensuring that the border between Northern Ireland and the Republic of Ireland will not be returned.

    Both the UK and the EU believe that restitution of border controls could jeopardize the peace process, but Brexit’s advocates are afraid that the safeguard mechanism could connect Britain with EU rules for an indefinite period without any declaration of them.

    Risk Disclosure (read carefully!)