Speedbumps Ahead 🚧 Malaysian Crypto Battle 😯

by | 14 Jan, 2019

 

1. Speedbumps Ahead  

The word on everyone’s mind this week is volatility, volatility & more volatility. With an inordinate amount of important announcements on the cards this week, the markets are sure to be shaken up a bit. So hold on tight!

Asian markets kicked off the week in the red after disappointing Chinese trade data spooked investors into sell-off mode. Both exports and imports fell by more than was expected in the world’s second largest economy, dampening the positive sentiment of the last two weeks.

Ahead of the UK’s Brexit vote Theresa May has warned of a higher likelihood of a no-Brexit than no-deal, should her plans be voted down tomorrow. However, many investors are brushing her remarks off as scare tactics to add pressure on voters to approve her deal. The expectation is for MP’s to still vote overwhelmingly against her deal. But only time will tell.

The US shutdown has now become the longest in history as President Trump continues to hold government employees’ salaries and important data to ransom over his border wall financing. Investor stress levels are climbing as the economic impacts start looming into view.

Earnings season starts today with the big US investment banks and Netflix due to post reports. After a rough fourth quarter, investors are likely to be wary of some disappointing results from the big names.

So, keep your wits about you this week. It may get bumpy!

 

2. Malaysian Crypto Battle

The Malaysian government is still on the fence about legalising cryptocurrency and the regulations surrounding the wild west landscape of Initial Coin Offerings (ICOs). Come on guys, what’s the hold up?

The government has been in talks with its central bank since December, but no clear result has come to light. This leaves crypto, “neither legal, nor illegal” according to Federal Territories Minister, Khalid Abdul Samad.

The fuss over legality has come about as a result of the first blockchain backed political fundraising ICO, called Harapan Coin. Whilst some are touting the benefits of such fundraising and federal payment mechanisms, others have concerns about the government’s eagerness to adopt “trendy, but untested schemes.”

The fear is that involving federal payments such as licenses, fines, summonses and political donations will lend itself to corruption and political misuse. Well, they’re not wrong there!

Whilst the brakes have been put on for now, the Territories Minister has said the battle is far from over and that crypto has an important part to play in Malaysia’s future. Let’s see if he’s right.

Today we are watching…

1. Citigroup (#citi)

Citigroup is set to post its Q4 earnings today which are likely to set the tone for the entire banking sector this week. Citi’s shares have recovered some of their 30% decline that started in October. However, rough global conditions may have taken their toll on banks in the final quarter. The earnings per share estimate is $1.55 and revenue estimate is $17.56 billion. Keep your eyes peeled for this result. It’s a big one!

2. Netflix (#netflx)

Investors are gearing up for Netflix’s earnings which are due to be published on Thursday and could send it through the roof or floor depending on the outcome. Since Christmas the stock has been on an unstoppable 45% bull-run fueled by its smash hit, Bird Box. However, markets are expecting weaker earnings data that may push its share price lower, but a surprise earning beat would allow the bull-run to carry on.

 

 

 

 

 

 

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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