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.

 

 

 

 

 

 

All emails include an unsubscribe link. You can opt-out at any time. ​See our privacy policy.

2. Johnson & Johnson (#jnj)

Johnson & Johnson is set to post its earnings tomorrow and investors are rooting against them. Many analysts believe that even if the company has blowout results that beat expectations, the ongoing litigation against the company over allegations of Asbestos in its baby powder will rule the day. However, the markets have been known to pull some interesting surprises out of the bag. So watch this one closely!

 

 

 

 

 

 

 

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 are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

Download on the App Store           Download on Google Play

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 are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

Share This