admin@quantsalus.com

  24/7 feedback

  

News

  • 30.09.2019 | Goldman Sachs predicts massive 5G smartphone boom in 2020




    The 5G technology boom could be explosive for smartphone makers, according to Goldman Sachs. The Wall Street bank significantly increased its 5G smartphone estimates for next year. Goldman’s analyst Rod Hall pointed to his supply chain research indicating “much higher” 5G device sales than previously expected. “We are increasing our 2020 5G smartphone estimates to 120 million from 50 million as the supply chain continues to indicate much higher 5G device sales, particularly in China, than we have been forecasting,” Hall said. He suggested that 5G would only be available in limited parts of the world with Chinese network expansion delayed due to Huawei trade restrictions. The analyst, however, noted that manufacturing bottlenecks for 5G smartphone components are clearing up. While this is likely good news for Apple, according to Hall, Huawei is also expected to benefit meaningfully. “We believe Huawei’s ability to build 5G NR gNBs without US components should help to drive meaningful deployments in China in 2020 which support additional Chinese 5G device sales,” he said. Chinese tech giant Huawei, which is currently caught in the crossfire of the US-China trade war, reported that its global share of telecoms equipment expanded to 28.1 percent in the first half of this year. The company remains ahead of global rivals in the 5G market, having announced 50 commercial 5G mobile network deals.   © Global Look Press   https://quantsalus.com/about/...

    The 5G technology boom could be explosive for smartphone makers, according to Goldman Sachs. The Wall Street bank significantly increased its 5G smartphone estimates for next year.

    Goldman’s analyst Rod Hall pointed to his supply chain research indicating “much higher” 5G device sales than previously expected.

    “We are increasing our 2020 5G smartphone estimates to 120 million from 50 million as the supply chain continues to indicate much higher 5G device sales, particularly in China, than we have been forecasting,” Hall said.

    He suggested that 5G would only be available in limited parts of the world with Chinese network expansion delayed due to Huawei trade restrictions. The analyst, however, noted that manufacturing bottlenecks for 5G smartphone components are clearing up. While this is likely good news for Apple, according to Hall, Huawei is also expected to benefit meaningfully.

    “We believe Huawei’s ability to build 5G NR gNBs without US components should help to drive meaningful deployments in China in 2020 which support additional Chinese 5G device sales,” he said.

    Chinese tech giant Huawei, which is currently caught in the crossfire of the US-China trade war, reported that its global share of telecoms equipment expanded to 28.1 percent in the first half of this year. The company remains ahead of global rivals in the 5G market, having announced 50 commercial 5G mobile network deals.

     

    © Global Look Press

     

    https://quantsalus.com/about/


    29.09.2019 | Washington will NOT de-list Chinese companies from US stock markets US Treasury




    The US is not planning to blacklist Chinese companies from trading on US stock markets, according to a Department of the Treasury statement. Rumblings of a possible cut-off came on Friday and sent shivers through the markets. “The [US] administration is not contemplating blocking Chinese companies from listing shares on US stock exchanges at this time,” the US Treasury said in a statement, posted by spokeswoman Monica Crowley on her Twitter on Sunday. The statement added that the Treasury “welcome[s] investment in the United States.” According to media reports on Friday, the White House had been considering the possibility of restricting capital flows into China by limiting Chinese companies from trading on US stock exchanges. Reuters, for instance, reported this, citing a source within the government. The move, if taken, would have led to a radical escalation of already tense trade relations between the US and China. The report, first posted by Bloomberg, also rattled financial markets on Friday, sending the US benchmark S&P 500 index SPX down 0.53 percent and the Dow DJIA 0.26 percent lower, in midday trading. Chinese internet giants listed in the US were hit harder, though, with Alibaba BABA falling a whole 5 percent and Baidu BIDU nearly 4 percent. China’s currency the yuan fell by 0.4 percent against the US dollar, to its weakest against the greenback in nearly three weeks. The news comes at a sensitive time for US-China relations, as the two countries get ready for a possible resolution of their months-long trade dispute in talks set to be held in Washington on October 10, with the Chinese delegation to be led by Vice Premier Liu He.   File photo © Reuters / Brendan McDermid https://quantsalus.com/about/...

    The US is not planning to blacklist Chinese companies from trading on US stock markets, according to a Department of the Treasury statement. Rumblings of a possible cut-off came on Friday and sent shivers through the markets.

    “The [US] administration is not contemplating blocking Chinese companies from listing shares on US stock exchanges at this time,” the US Treasury said in a statement, posted by spokeswoman Monica Crowley on her Twitter on Sunday. The statement added that the Treasury “welcome[s] investment in the United States.”

    According to media reports on Friday, the White House had been considering the possibility of restricting capital flows into China by limiting Chinese companies from trading on US stock exchanges. Reuters, for instance, reported this, citing a source within the government. The move, if taken, would have led to a radical escalation of already tense trade relations between the US and China.

    The report, first posted by Bloomberg, also rattled financial markets on Friday, sending the US benchmark S&P 500 index SPX down 0.53 percent and the Dow DJIA 0.26 percent lower, in midday trading. Chinese internet giants listed in the US were hit harder, though, with Alibaba BABA falling a whole 5 percent and Baidu BIDU nearly 4 percent.

    China’s currency the yuan fell by 0.4 percent against the US dollar, to its weakest against the greenback in nearly three weeks.

    The news comes at a sensitive time for US-China relations, as the two countries get ready for a possible resolution of their months-long trade dispute in talks set to be held in Washington on October 10, with the Chinese delegation to be led by Vice Premier Liu He.

     


    28.09.2019 | Old-school way: Apple will showcase its movies in cinemas to attract producers & beat rivals




    Tech giant Apple plans to show its own feature-length films in cinemas before they appear on its new streaming TV service in order to attract big names to the company’s new venture, according to reports. The Wall Street Journal reported on Friday that Apple’s management arrived at the decision in an attempt to attract top directors and producers, as well as to strike a blow in the competition with the established streaming giant, Netflix. Citing anonymous sources within the company, the report states that Apple representatives have already made proposals to the management of several large American cinema chains. They have also held consultations on the matter with leading experts in the entertainment industry. The company’s board, headquartered in Cupertino, California, is planning to run films produced by Apple for several weeks in theaters before they appear on its streaming service, Apple TV+, which was announced earlier this month. The WSJ states that Netflix, Apple’s main rival in the field, often faces difficulties in negotiating with cinema networks because it insists that its movie premieres are held simultaneously in cinemas and on the online platform – an approach with which large US film distributors fundamentally disagree. Apple, on the other hand, is unlikely to face any such problems if it agrees to give cinemas an exclusive run of its productions. During its presentation on September 10, the company management announced that the Apple TV+ streaming video service would be available from November 1. Apple expects to broadcast films, shows and series of its own production on this platform. Excerpts from some of these productions were shown at the TV+ presentation. Among Apple’s first major theatrical releases will be Sofia Coppola’s ‘On the Rocks,’ starring Rashida Jones and Bill Murray. The company expects a mid-2020 release after a potential premiere at a high-profile event like the Cannes Film Festival. The tech giant has also been in talks with distributors about a documentary called ‘The Elephant Queen,’ which it plans to release later this year. Apple wants it to air in cinemas so that it is eligible for awards consideration. Although Apple TV+ will reportedly initially offer a rather small number of original shows, unlike rivals Netflix, Amazon and Walt Disney Co., it plans to compete with the established players by charging lower prices. TV+ is the latest addition to Apple’s extensive line of products and services, ranging from iPhone smartphones and iPad tablets to iMac computers, MacBook laptops, iPod music players and other high-tech equipment. The digital corporation is one of the largest in the world. Its market capitalization in the fall of 2018 exceeded $1 trillion, before slightly decreasing since to some $990 billion amid market instability.   File photo © Reuters / Beawiharta https://quantsalus.com/rules/...

    Tech giant Apple plans to show its own feature-length films in cinemas before they appear on its new streaming TV service in order to attract big names to the company’s new venture, according to reports.

    The Wall Street Journal reported on Friday that Apple’s management arrived at the decision in an attempt to attract top directors and producers, as well as to strike a blow in the competition with the established streaming giant, Netflix.

    Citing anonymous sources within the company, the report states that Apple representatives have already made proposals to the management of several large American cinema chains. They have also held consultations on the matter with leading experts in the entertainment industry.

    The company’s board, headquartered in Cupertino, California, is planning to run films produced by Apple for several weeks in theaters before they appear on its streaming service, Apple TV+, which was announced earlier this month.

    The WSJ states that Netflix, Apple’s main rival in the field, often faces difficulties in negotiating with cinema networks because it insists that its movie premieres are held simultaneously in cinemas and on the online platform – an approach with which large US film distributors fundamentally disagree. Apple, on the other hand, is unlikely to face any such problems if it agrees to give cinemas an exclusive run of its productions.

    During its presentation on September 10, the company management announced that the Apple TV+ streaming video service would be available from November 1. Apple expects to broadcast films, shows and series of its own production on this platform.

    Excerpts from some of these productions were shown at the TV+ presentation. Among Apple’s first major theatrical releases will be Sofia Coppola’s ‘On the Rocks,’ starring Rashida Jones and Bill Murray. The company expects a mid-2020 release after a potential premiere at a high-profile event like the Cannes Film Festival.

    The tech giant has also been in talks with distributors about a documentary called ‘The Elephant Queen,’ which it plans to release later this year. Apple wants it to air in cinemas so that it is eligible for awards consideration.

    Although Apple TV+ will reportedly initially offer a rather small number of original shows, unlike rivals Netflix, Amazon and Walt Disney Co., it plans to compete with the established players by charging lower prices.

    TV+ is the latest addition to Apple’s extensive line of products and services, ranging from iPhone smartphones and iPad tablets to iMac computers, MacBook laptops, iPod music players and other high-tech equipment. The digital corporation is one of the largest in the world. Its market capitalization in the fall of 2018 exceeded $1 trillion, before slightly decreasing since to some $990 billion amid market instability.

     


    26.09.2019 | House Intelligence Committee releases whistleblower report on Trump-Zelensky call




    The whistleblower complaint that led to the impeachment inquiry against US President Donald Trump has been released. In it, the leaker admits he did not actually hear the phone call at the center of the scandal. Released by the House Intelligence Committee on Thursday, the complaint details the circumstances surrounding Trump’s July phone call with Ukrainian President Volodymyr Zelensky. Democrats argue that Trump attempted to pressure Zelensky into reopening a corruption investigation into 2020 candidate Joe Biden’s son Hunter, and his business dealings in the country. The complaint reveals little new about the call itself. In it, the whistleblower – believed to be a member of the intelligence community – admitted that they had not actually been privy to the call, but went on secondhand accounts from those who were. They also detailed a series of contacts between US and Ukrainian officials, some pertaining to the investigation into Hunter Biden’s business dealings. Though Trump himself released a transcript of the call on Wednesday – which did not reveal a quid-pro-quo arrangement as Democrats alleged – the party has still pressed ahead with an impeachment inquiry. As the complaint was released, the committee prepared to interview Acting Director of National Intelligence Joseph Maguire about his handling of the complaint. According to the whistleblower, Trump’s mention of the investigation in the phone call amounted to soliciting “interference from a foreign country in the 2020 US election.” Accompanying the report was a letter from Maguire, who said the complaint “appears credible” and determined it to be an “urgent concern.” President Trump responded angrily to the release, accusing Democrats of “trying to destroy the Republican party and all that it stands for.” THE DEMOCRATS ARE TRYING TO DESTROY THE REPUBLICAN PARTY AND ALL THAT IT STANDS FOR. STICK TOGETHER, PLAY THEIR GAME, AND FIGHT HARD REPUBLICANS. OUR COUNTRY IS AT STAKE! The complaint adds little of value to the Democrats’ case against Trump. Much of it is built on the concerns of anonymous officials who viewed the call as a “flagrant” abuse of office. The whistleblower also expressed concern that the White House apparently attempted to block the release of the call transcript. However, Trump’s release of the record on Wednesday rendered this concern moot. Much of the whistleblower's story surrounding the call is built on media reports. According to one of these reports, Ukrainian officials close to Zelensky claimed to have “evidence” that other officials in Kiev had “interfered” with the 2016 US election on behalf of the Democratic Party. Another report alleged that Trump’s lawyer, Rudy Giuliani, planned to travel to Kiev to pressure Zelensky to investigate this supposed “evidence.”  Giuliani’s trip never happened, and these reports, alongside the whistleblower’s “general understanding of the state of affairs” make up the bulk of the complaint. Also cited as evidence against Trump is his statement to ABC’s George Stephanopoulos earlier this summer, in which he said that he would “listen” to dirt on his political rivals from a foreign country. The president later said: “They all do it, they always have, and that’s the way it is.” Whether the transcript will be enough to sustain an impeachment inquiry against Trump remains to be seen. Unless House Intelligence Committee Chairman Adam Schiff (D-California) can solicit more damaging information from the whistleblower in a committee hearing, the call transcript itself remains the only piece of hard evidence against Trump, but doesn’t detail the level of abuse the whistleblower alleged. Furthermore, while a majority of House members back impeaching Trump, the American public does not share their opinion. A Quinnipiac University poll released on Wednesday shows that only 37 percent of voters support impeachment, the vast majority of them Democrats. Though many Democrats long to see Trump impeached and removed from office, more fear that impeachment would strengthen the president’s chances come 2020, and would give credence to his argument that the effort to remove him is “the single greatest witch hunt in American history.”   A pro-impeachment demonstrator in New York © Reuters / Lucas Jackson   https://quantsalus.com/contacts/...

    The whistleblower complaint that led to the impeachment inquiry against US President Donald Trump has been released. In it, the leaker admits he did not actually hear the phone call at the center of the scandal.

    Released by the House Intelligence Committee on Thursday, the complaint details the circumstances surrounding Trump’s July phone call with Ukrainian President Volodymyr Zelensky. Democrats argue that Trump attempted to pressure Zelensky into reopening a corruption investigation into 2020 candidate Joe Biden’s son Hunter, and his business dealings in the country.

    The complaint reveals little new about the call itself. In it, the whistleblower – believed to be a member of the intelligence community – admitted that they had not actually been privy to the call, but went on secondhand accounts from those who were. They also detailed a series of contacts between US and Ukrainian officials, some pertaining to the investigation into Hunter Biden’s business dealings.

    Though Trump himself released a transcript of the call on Wednesday – which did not reveal a quid-pro-quo arrangement as Democrats alleged – the party has still pressed ahead with an impeachment inquiry. As the complaint was released, the committee prepared to interview Acting Director of National Intelligence Joseph Maguire about his handling of the complaint.

    According to the whistleblower, Trump’s mention of the investigation in the phone call amounted to soliciting “interference from a foreign country in the 2020 US election.”

    Accompanying the report was a letter from Maguire, who said the complaint “appears credible” and determined it to be an “urgent concern.”

    President Trump responded angrily to the release, accusing Democrats of “trying to destroy the Republican party and all that it stands for.”

    THE DEMOCRATS ARE TRYING TO DESTROY THE REPUBLICAN PARTY AND ALL THAT IT STANDS FOR. STICK TOGETHER, PLAY THEIR GAME, AND FIGHT HARD REPUBLICANS. OUR COUNTRY IS AT STAKE!

    The complaint adds little of value to the Democrats’ case against Trump. Much of it is built on the concerns of anonymous officials who viewed the call as a “flagrant” abuse of office. The whistleblower also expressed concern that the White House apparently attempted to block the release of the call transcript. However, Trump’s release of the record on Wednesday rendered this concern moot.

    Much of the whistleblower's story surrounding the call is built on media reports. According to one of these reports, Ukrainian officials close to Zelensky claimed to have “evidence” that other officials in Kiev had “interfered” with the 2016 US election on behalf of the Democratic Party. Another report alleged that Trump’s lawyer, Rudy Giuliani, planned to travel to Kiev to pressure Zelensky to investigate this supposed “evidence.” 

    Giuliani’s trip never happened, and these reports, alongside the whistleblower’s “general understanding of the state of affairs” make up the bulk of the complaint.

    Also cited as evidence against Trump is his statement to ABC’s George Stephanopoulos earlier this summer, in which he said that he would “listen” to dirt on his political rivals from a foreign country. The president later said: “They all do it, they always have, and that’s the way it is.”

    Whether the transcript will be enough to sustain an impeachment inquiry against Trump remains to be seen. Unless House Intelligence Committee Chairman Adam Schiff (D-California) can solicit more damaging information from the whistleblower in a committee hearing, the call transcript itself remains the only piece of hard evidence against Trump, but doesn’t detail the level of abuse the whistleblower alleged.

    Furthermore, while a majority of House members back impeaching Trump, the American public does not share their opinion. A Quinnipiac University poll released on Wednesday shows that only 37 percent of voters support impeachment, the vast majority of them Democrats.

    Though many Democrats long to see Trump impeached and removed from office, more fear that impeachment would strengthen the president’s chances come 2020, and would give credence to his argument that the effort to remove him is “the single greatest witch hunt in American history.”

     

    A pro-impeachment demonstrator in New York © Reuters / Lucas Jackson

     

    https://quantsalus.com/contacts/


    25.09.2019 | Facebook to buy startup that lets people control computers with their mind




    Social media giant Facebook has agreed to acquire New York neural interface startup CTRL-Labs for up to a reported $1 billion. The company develops software allowing users to control computer devices with their brain. Facebook is seeking “more natural, intuitive ways” to work with different devices and wants to build “this kind of technology at scale,” the company’s vice-president of augmented reality and virtual reality divisions, Andrew Bosworth, said in a post on Monday announcing the acquisition. CTRL-Labs will join the company’s Reality Labs team, a division formerly known as Oculus Research, which focuses on AR and VR technology. While the financial terms of the deal have not been revealed, media reports claim that the tech startup cost the social media giant between $500 million and $1 billion, which could make it one of Facebook’s most substantial acquisitions in the last 5 years. In his post, Bosworth mentioned CTRL-Labs’ flagship product - a wristband that measures neuron activity to transmit it into computer input. However, the device does not exactly read your mind, it decodes electrical impulses that come from muscle fibers as they move and translates them into a digital signal your device can understand. “Technology like this has the potential to open up new creative possibilities and reimagine 19th century inventions in a 21st century world,” the vice-president said. “This is how our interactions in VR and AR can one day look. It can change the way we connect.” CTRL-Labs was founded in 2015 by Thomas Reardon and Patrick Kaifosh, both PhDs in neuroscience. Reardon told Forbes that he considered the bracelet a “universal controller for all your interactions with technology.” In February, the startup drew interest from other tech giants, as it raised $28 million from Alphabet GV and Amazon Alexa Fund.   FILE PHOTO © Global Look Press / Jan Haas   https://quantsalus.com/faq/...

    Social media giant Facebook has agreed to acquire New York neural interface startup CTRL-Labs for up to a reported $1 billion. The company develops software allowing users to control computer devices with their brain.

    Facebook is seeking “more natural, intuitive ways” to work with different devices and wants to build “this kind of technology at scale,” the company’s vice-president of augmented reality and virtual reality divisions, Andrew Bosworth, said in a post on Monday announcing the acquisition. CTRL-Labs will join the company’s Reality Labs team, a division formerly known as Oculus Research, which focuses on AR and VR technology.

    While the financial terms of the deal have not been revealed, media reports claim that the tech startup cost the social media giant between $500 million and $1 billion, which could make it one of Facebook’s most substantial acquisitions in the last 5 years.

    In his post, Bosworth mentioned CTRL-Labs’ flagship product - a wristband that measures neuron activity to transmit it into computer input. However, the device does not exactly read your mind, it decodes electrical impulses that come from muscle fibers as they move and translates them into a digital signal your device can understand.

    “Technology like this has the potential to open up new creative possibilities and reimagine 19th century inventions in a 21st century world,” the vice-president said. “This is how our interactions in VR and AR can one day look. It can change the way we connect.”

    CTRL-Labs was founded in 2015 by Thomas Reardon and Patrick Kaifosh, both PhDs in neuroscience. Reardon told Forbes that he considered the bracelet a “universal controller for all your interactions with technology.” In February, the startup drew interest from other tech giants, as it raised $28 million from Alphabet GV and Amazon Alexa Fund.

     

    FILE PHOTO © Global Look Press / Jan Haas

     

    https://quantsalus.com/faq/


    18.09.2019 | Huawei to invest $1.5bn in its developer program




    The Chinese tech company Huawei said on Wednesday that it will offer more than $1 billion in investment over the next five years to attract global developers. The offer is part of the company’s broader computing strategy, which includes investing in basic research around its products to support new technology such as artificial intelligence. The firm also said it will make its hardware and software more readily available to its customers and partners. Huawei announced its developer program four years ago. The company says it has supported more than 1.3 million developers since then, as well as 14,000 independent software vendors around the world. According to Huawei’s Deputy Chairman Ken Hu, the company wants to expand that program to another five million developers. It also wants to help partners “develop the next generation of intelligent applications and solutions.” Ken Hu said: “The future of computing is a massive market worth more than $2 trillion,” adding: “We’ll keep investing.” Huawei is currently caught in the crossfire of the US-China trade war. In May, the US placed Huawei on its so-called “Entity List,” effectively barring American companies from doing business with the Chinese tech giant. Washington accused the Huawei of being a threat to its national security and foreign policy interests. Despite the challenges, the Shenzhen-based company reported that its global share of telecoms equipment expanded to 28.1 percent in the first half of this year. It also remains ahead of global rivals in the 5G market, having announced 50 commercial 5G mobile network deals.   © AFP / Fred Dufour   https://quantsalus.com/about/...

    The Chinese tech company Huawei said on Wednesday that it will offer more than $1 billion in investment over the next five years to attract global developers.

    The offer is part of the company’s broader computing strategy, which includes investing in basic research around its products to support new technology such as artificial intelligence. The firm also said it will make its hardware and software more readily available to its customers and partners.

    Huawei announced its developer program four years ago. The company says it has supported more than 1.3 million developers since then, as well as 14,000 independent software vendors around the world.

    According to Huawei’s Deputy Chairman Ken Hu, the company wants to expand that program to another five million developers. It also wants to help partners “develop the next generation of intelligent applications and solutions.”

    Ken Hu said: “The future of computing is a massive market worth more than $2 trillion,” adding: “We’ll keep investing.”

    Huawei is currently caught in the crossfire of the US-China trade war. In May, the US placed Huawei on its so-called “Entity List,” effectively barring American companies from doing business with the Chinese tech giant. Washington accused the Huawei of being a threat to its national security and foreign policy interests.

    Despite the challenges, the Shenzhen-based company reported that its global share of telecoms equipment expanded to 28.1 percent in the first half of this year. It also remains ahead of global rivals in the 5G market, having announced 50 commercial 5G mobile network deals.

     

    © AFP / Fred Dufour

     

    https://quantsalus.com/about/


    14.09.2019 | Oil prices may slump heavily in 2020




    OPEC and its partners will not deepen their oil production cut yet but will discuss the topic again in December. This is what Saudi Arabia’s newly appointed Energy Minister Abdulaziz bin Salman told media after this week’s meeting of the Joint Ministerial Monitoring Committee. A discussion, however, may not be enough. OPEC may be forced to decide to cut deeper to prevent a major slump in prices. When OPEC agreed to cut 1.2 million bpd from the global market in December last year, benchmark prices reacted without much enthusiasm. In hindsight, this was a harbinger of tough times. Although prices rallied in the beginning of the second quarter of the year with Brent topping $70 a barrel, the rally was brief and correction followed soon enough. OPEC has been overcomplying with its production quotas. US sanctions against Venezuela and, to a lesser extent Iran, have helped this. And yet, prices have failed to rise again and stay higher. Brent has been hovering around $60 (€54) a barrel and WTI has been rangebound between $50 (€45) and $58 (€53). And now, prices are due to fall even further if demand forecasts from some of the world’s top energy agencies are correct. Bloomberg’s Julian Lee warned this week even tougher times were ahead for the oil-producing cartel and its partners next year as oil demand slowed down, according to the Energy Information Administration and OPEC itself. Indeed, in its latest Short-Term Energy Outlook, the EIA forecast global demand for liquid fuels would rise by 900,000 bpd on average for full-2019. That’s down from an earlier forecast of a demand growth rate of 1.3 million bpd. The international Energy Agency, for its part, forecast average demand growth this year would be 1.1 million bpd, unchanged from its earlier monthly estimate, and in 2020, it would accelerate to 1.3 million bpd. OPEC, interestingly, is the most pessimistic about demand. For this year, the group expects this at 1.02 million bpd, with a slight improvement to 1.08 million bpd next year. Slow demand growth is bad enough when you sacrifice market share growth for higher prices. Yet coupled with rising production from places you cannot control, the news becomes really bad. Besides the obvious wrench in OPEC’s works, US shale, production growth is imminent in Norway and Brazil as well. In the US, OPEC expects production to grow by 1.8 million bpd this year, which is substantially higher than the EIA’s forecast for domestic production growth, at 1.2 million bpd. The IEA, for its part, sees the US and Norway boosting production by a combined 1 million bpd in the second half of this year, with Brazil adding another 130,000 bpd. To add insult to injury, more of the additional U.S. oil being pumped in the shale patch is going to reach international markets as some 2 million bpd of new pipeline capacity enters into operation. Against this backdrop, OPEC’s limited options become clear. The cartel has two choices, and nobody is talking about the second one: a repeat of the pump-them-to-death approach that brought on the 2014 price collapse. The reason nobody is talking about it is that OPEC members lack sufficient financial buffers to withstand another price collapse unscathed. This leaves them with one choice: cut production more. Yet there is a problem with this, too. Russia has repeatedly signaled it is not too fond of more cuts. Moscow has been consistent in its general support for supply controls but reluctant to comply fully with these controls not least because it can do just fine with lower oil. The Russian central bank recently said it had stipulated a price of $25 per barrel of crude in a risk scenario for next year. That’s some pretty nutritious food for thought for Russia’s partners in the cuts.   File Photo © Reuters / Vasily Fedosenko   https://quantsalus.com/rules/...

    OPEC and its partners will not deepen their oil production cut yet but will discuss the topic again in December.

    This is what Saudi Arabia’s newly appointed Energy Minister Abdulaziz bin Salman told media after this week’s meeting of the Joint Ministerial Monitoring Committee. A discussion, however, may not be enough. OPEC may be forced to decide to cut deeper to prevent a major slump in prices.

    When OPEC agreed to cut 1.2 million bpd from the global market in December last year, benchmark prices reacted without much enthusiasm. In hindsight, this was a harbinger of tough times. Although prices rallied in the beginning of the second quarter of the year with Brent topping $70 a barrel, the rally was brief and correction followed soon enough.

    OPEC has been overcomplying with its production quotas. US sanctions against Venezuela and, to a lesser extent Iran, have helped this. And yet, prices have failed to rise again and stay higher. Brent has been hovering around $60 (€54) a barrel and WTI has been rangebound between $50 (€45) and $58 (€53). And now, prices are due to fall even further if demand forecasts from some of the world’s top energy agencies are correct.

    Bloomberg’s Julian Lee warned this week even tougher times were ahead for the oil-producing cartel and its partners next year as oil demand slowed down, according to the Energy Information Administration and OPEC itself.

    Indeed, in its latest Short-Term Energy Outlook, the EIA forecast global demand for liquid fuels would rise by 900,000 bpd on average for full-2019. That’s down from an earlier forecast of a demand growth rate of 1.3 million bpd.

    The international Energy Agency, for its part, forecast average demand growth this year would be 1.1 million bpd, unchanged from its earlier monthly estimate, and in 2020, it would accelerate to 1.3 million bpd.

    OPEC, interestingly, is the most pessimistic about demand. For this year, the group expects this at 1.02 million bpd, with a slight improvement to 1.08 million bpd next year.

    Slow demand growth is bad enough when you sacrifice market share growth for higher prices. Yet coupled with rising production from places you cannot control, the news becomes really bad.

    Besides the obvious wrench in OPEC’s works, US shale, production growth is imminent in Norway and Brazil as well. In the US, OPEC expects production to grow by 1.8 million bpd this year, which is substantially higher than the EIA’s forecast for domestic production growth, at 1.2 million bpd. The IEA, for its part, sees the US and Norway boosting production by a combined 1 million bpd in the second half of this year, with Brazil adding another 130,000 bpd.

    To add insult to injury, more of the additional U.S. oil being pumped in the shale patch is going to reach international markets as some 2 million bpd of new pipeline capacity enters into operation.

    Against this backdrop, OPEC’s limited options become clear. The cartel has two choices, and nobody is talking about the second one: a repeat of the pump-them-to-death approach that brought on the 2014 price collapse. The reason nobody is talking about it is that OPEC members lack sufficient financial buffers to withstand another price collapse unscathed. This leaves them with one choice: cut production more.

    Yet there is a problem with this, too. Russia has repeatedly signaled it is not too fond of more cuts. Moscow has been consistent in its general support for supply controls but reluctant to comply fully with these controls not least because it can do just fine with lower oil. The Russian central bank recently said it had stipulated a price of $25 per barrel of crude in a risk scenario for next year. That’s some pretty nutritious food for thought for Russia’s partners in the cuts.

     

    File Photo © Reuters / Vasily Fedosenko

     

    https://quantsalus.com/rules/


    12.09.2019 | France vows to block development of Facebooks Libra cryptocurrency on European soil




    The French Finance Ministry has deemed Facebook’s Libra digital currency too risky to be authorized for development in Europe. “All these concerns about Libra are serious. I therefore want to say with plenty of clarity: In these conditions we cannot authorize the development of Libra on European soil,” Bruno Le Maire said while speaking at an OECD conference in Paris on Thursday. He cited systemic risks which the new digital coin may pose for the European market. These include financial risks, risks for the sovereignty of other nations’ currencies, and the potential for abuse of market dominance. Le Maire has already voiced his negative sentiment regarding the new cryptocurrency ever since Facebook unveiled the project in June. Among other things, he named issues with money laundering and terrorism financing, which could potentially arise once the coin is launched into circulation. The minister also said he had spoken with European Central Bank President Mario Draghi and Christine Lagarde, the ECB’s next chief, about creating a “public digital currency” apparently to counterpose Libra and the likes of it. Unlike central bank-backed currencies, Libra is to be regulated by an independent non-profit organization based in Switzerland dubbed the Libra Association. As it revealed on Wednesday, the Libra Association will apply for a payments license in Switzerland in a step confirming the country has been chosen to host Libra’s main supervisory authority. Facebook, along with 27 other companies like PayPal, Visa and Mastercard, is a founding member of the Libra Association. According to the founders, the main goal of the Libra project is to enable fast and low-cost payments and money transfers for people around the world. Facebook also previously noted the Libra is to be backed up by traditional currencies held in bank accounts, which is expected to enhance confidence in the new digital coin. Facebook’s intention to launch its own cryptocurrency has been met with concern and skepticism in many countries, as well as in crypto circles. Prior to France, authorities in the UK, the US, and Russia had also expressed concerns that Libra could create risks for the global financial system due to uncontrolled capital flows. However, the new ryptocurrency is expected to launch on a global scale in the first quarter of 2020, if approved by regulators.     https://quantsalus.com/contacts/...

    The French Finance Ministry has deemed Facebook’s Libra digital currency too risky to be authorized for development in Europe.

    All these concerns about Libra are serious. I therefore want to say with plenty of clarity: In these conditions we cannot authorize the development of Libra on European soil,” Bruno Le Maire said while speaking at an OECD conference in Paris on Thursday. He cited systemic risks which the new digital coin may pose for the European market. These include financial risks, risks for the sovereignty of other nations’ currencies, and the potential for abuse of market dominance.

    Le Maire has already voiced his negative sentiment regarding the new cryptocurrency ever since Facebook unveiled the project in June. Among other things, he named issues with money laundering and terrorism financing, which could potentially arise once the coin is launched into circulation. The minister also said he had spoken with European Central Bank President Mario Draghi and Christine Lagarde, the ECB’s next chief, about creating a “public digital currency” apparently to counterpose Libra and the likes of it.

    Unlike central bank-backed currencies, Libra is to be regulated by an independent non-profit organization based in Switzerland dubbed the Libra Association. As it revealed on Wednesday, the Libra Association will apply for a payments license in Switzerland in a step confirming the country has been chosen to host Libra’s main supervisory authority.

    Facebook, along with 27 other companies like PayPal, Visa and Mastercard, is a founding member of the Libra Association. According to the founders, the main goal of the Libra project is to enable fast and low-cost payments and money transfers for people around the world. Facebook also previously noted the Libra is to be backed up by traditional currencies held in bank accounts, which is expected to enhance confidence in the new digital coin.

    Facebook’s intention to launch its own cryptocurrency has been met with concern and skepticism in many countries, as well as in crypto circles. Prior to France, authorities in the UK, the US, and Russia had also expressed concerns that Libra could create risks for the global financial system due to uncontrolled capital flows. However, the new ryptocurrency is expected to launch on a global scale in the first quarter of 2020, if approved by regulators.

     

     

    https://quantsalus.com/contacts/


    11.09.2019 | Gold Prices Hover Around $1,500 Ahead of ECB Meeting




    Investing.com -- Gold prices hovered around $1,500 a troy ounce in early trading in New York on Wednesday, as disappointing news on the trade front and a recovery in global bond yields kept buyers sidelined. By 10:25 AM ET, gold futures for delivery on the Comex exchange were at $1,500.85 a troy ounce, up 0.1% on the day, while spot gold prices were up 0.6% at 1,494.24. Silver futures were flat at $18.18 an ounce, while platinum futures were the best performing haven metal, gaining 1.0% to $946.30 an ounce. In the absence of dramatic macro news, buyers were content to sit on their hands ahead of the European Central Bank’s policy meeting on Thursday. The ECB is widely expected to rejoin the global trend of monetary policy easing, although traders have pared their bets in recent days after several top ECB officials voiced concern about resuming large-scale bond purchases, while others have fretted that an aggressive move now would tie the hands of incoming President Christine Lagarde. Lagarde is due to succeed Mario Draghi as president in November. Against that backdrop, German 10-year government yields have rebounded to -0.55% from a record low of -0.74% last month, while the U.S. 10-year Treasury note hit a four-week high of 1.75% earlier Wednesday. U.K. gilt yields have also risen as the risk of a disorderly Brexit at the end of October has receded, while the confirmation of a new Italian government has also pre-empted another big political risk that had weighed on investors’ minds during the summer. All those developments tend to hurt gold, which offers no nominal return. The ECB’s meeting will be a warm-up to the Federal Reserve’s own policy meeting next week, where traders expect another 25 basis point cut to the target range for Fed funds. Fresh pressure from President Donald Trump, who tweeted earlier Wednesday that “boneheads” at the Fed should cut to “ZERO, or below”, had little impact on prices. Last week, it had been the turn of both China and Russia to ease monetary policy, the latter cutting its key rate to a five-year low of 7.00%, and the former cutting reserve requirements for banks. Holger Schmieding, chief economist at Berenberg Bank in Berlin, said in a recent note he expects the ECB to cut to its deposit rate by 20 basis points to -0.6%, to resume bond purchases at a level of 30 billion euros ($34 billion) a month for a year and to rule out any rise in interest rates until at least the second half of next year. He also expects measure to alleviate the pain of negative interest rates for the banking sector, which is struggling to earn profits and strengthen its collective balance sheet in the negative interest rate environment.   © Reuters.   https://quantsalus.com/faq/...

    Investing.com -- Gold prices hovered around $1,500 a troy ounce in early trading in New York on Wednesday, as disappointing news on the trade front and a recovery in global bond yields kept buyers sidelined.

    By 10:25 AM ET, gold futures for delivery on the Comex exchange were at $1,500.85 a troy ounce, up 0.1% on the day, while spot gold prices were up 0.6% at 1,494.24.

    Silver futures were flat at $18.18 an ounce, while platinum futures were the best performing haven metal, gaining 1.0% to $946.30 an ounce.

    In the absence of dramatic macro news, buyers were content to sit on their hands ahead of the European Central Bank’s policy meeting on Thursday.

    The ECB is widely expected to rejoin the global trend of monetary policy easing, although traders have pared their bets in recent days after several top ECB officials voiced concern about resuming large-scale bond purchases, while others have fretted that an aggressive move now would tie the hands of incoming President Christine Lagarde.

    Lagarde is due to succeed Mario Draghi as president in November.

    Against that backdrop, German 10-year government yields have rebounded to -0.55% from a record low of -0.74% last month, while the U.S. 10-year Treasury note hit a four-week high of 1.75% earlier Wednesday. U.K. gilt yields have also risen as the risk of a disorderly Brexit at the end of October has receded, while the confirmation of a new Italian government has also pre-empted another big political risk that had weighed on investors’ minds during the summer.

    All those developments tend to hurt gold, which offers no nominal return.

    The ECB’s meeting will be a warm-up to the Federal Reserve’s own policy meeting next week, where traders expect another 25 basis point cut to the target range for Fed funds. Fresh pressure from President Donald Trump, who tweeted earlier Wednesday that “boneheads” at the Fed should cut to “ZERO, or below”, had little impact on prices.

    Last week, it had been the turn of both China and Russia to ease monetary policy, the latter cutting its key rate to a five-year low of 7.00%, and the former cutting reserve requirements for banks.

    Holger Schmieding, chief economist at Berenberg Bank in Berlin, said in a recent note he expects the ECB to cut to its deposit rate by 20 basis points to -0.6%, to resume bond purchases at a level of 30 billion euros ($34 billion) a month for a year and to rule out any rise in interest rates until at least the second half of next year. He also expects measure to alleviate the pain of negative interest rates for the banking sector, which is struggling to earn profits and strengthen its collective balance sheet in the negative interest rate environment.

     

    © Reuters.

     

    https://quantsalus.com/faq/


    10.09.2019 | Tech Leads Stocks Lower; Yields Extend Push Higher




    (Bloomberg) -- Technology, health care and consumer shares led U.S. equities lower. Yields on most Treasury notes rose. The three main U.S. indexes opened with modest declines. The Stoxx Europe 600 Index dropped a second day, led by food and beverage and health-care shares. The pound fluctuated as embattled British Prime Minister Boris Johnson insisted he won’t ask for another Brexit delay, while U.K. wage and unemployment data beat estimates. Most euro-zone sovereign bonds nudged lower as European Central Bank officials prepare to meet. Treasuries added to declines from Monday. The recent pullback in the bond rally “is a correction to an outsized move in yields during August, not a turn in the trend,” Kit Juckes, chief global FX strategist at Societe Generale (PA:SOGN) SA, wrote in his daily note. “Last Friday’s U.S. labor market data show, clearly enough for me, that the U.S. economy is slowing slowly but steadily as the global trade slowdown infects it.” Investors are awaiting the ECB’s policy decisions on Thursday and those next week by the Federal Reserve and Bank of England as they assess how much monetary easing may be looming. On the foreign-trade front, China removed one more hurdle for foreign investment into its capital markets on Tuesday. Elsewhere, oil extended gains to the highest level in almost six weeks as Saudi Arabia’s new energy minister signaled his commitment to production cuts ahead of an OPEC+ meeting later this week. Gold headed for its fourth day of declines, sinking close to $1,490 an ounce.   © Reuters. Tech Leads Stocks Lower; Yields Extend Push Higher: Markets Wrap   https://quantsalus.com/contacts/...

    (Bloomberg) -- Technology, health care and consumer shares led U.S. equities lower. Yields on most Treasury notes rose.

    The three main U.S. indexes opened with modest declines. The Stoxx Europe 600 Index dropped a second day, led by food and beverage and health-care shares. The pound fluctuated as embattled British Prime Minister Boris Johnson insisted he won’t ask for another Brexit delay, while U.K. wage and unemployment data beat estimates. Most euro-zone sovereign bonds nudged lower as European Central Bank officials prepare to meet. Treasuries added to declines from Monday.

    The recent pullback in the bond rally “is a correction to an outsized move in yields during August, not a turn in the trend,” Kit Juckes, chief global FX strategist at Societe Generale (PA:SOGN) SA, wrote in his daily note. “Last Friday’s U.S. labor market data show, clearly enough for me, that the U.S. economy is slowing slowly but steadily as the global trade slowdown infects it.”

    Investors are awaiting the ECB’s policy decisions on Thursday and those next week by the Federal Reserve and Bank of England as they assess how much monetary easing may be looming. On the foreign-trade front, China removed one more hurdle for foreign investment into its capital markets on Tuesday.

    Elsewhere, oil extended gains to the highest level in almost six weeks as Saudi Arabia’s new energy minister signaled his commitment to production cuts ahead of an OPEC+ meeting later this week. Gold headed for its fourth day of declines, sinking close to $1,490 an ounce.

     

    © Reuters. Tech Leads Stocks Lower; Yields Extend Push Higher: Markets Wrap

     

    https://quantsalus.com/contacts/


    Pages: 1 [2] | 3 | 4