Bitcoin looks like speeded-up unicorn hype 7 Dec 2017 A sheen of futurism, fear of missing out, a lack of fundamental value, and an inability of big backers to sell without crashing the market are factors pumping up the digital currency’s price. It’s like accelerated startup funding rounds. The danger is a Theranos-like bloodbath.
ICO bust heralds U.S. crypto-currency rules chaos 4 Dec 2017 The SEC has taken its first action against a coin offering, alleging the perpetrators fraudulently raised $15 mln. The CFTC, though, just gave the green light to bitcoin futures. The growing regulatory discord on virtual currencies increases the risks to investors.
Wall St poised to stop worrying and love bitcoin 1 Dec 2017 Crypto-currencies are set to take center stage. Mike Novogratz is launching a hedge fund, exchanges are teeing up futures contracts, big banks are likely to enter the fray and even the Fed is taking notice. It may end in tears, but the industry won’t ignore a $300 bln market.
Guest view: Bitcoin bubble obscures real worth 30 Nov 2017 Crypto-currencies are like South Sea Company shares: unanalyzable, but here to stay. For one thing, they offer a government-proof store of wealth. For another, real technological advances exist along with the scams. More stable prices are, however, needed for long-term value.
Hadas: Bitcoin at $10,000 is even more dangerous 29 Nov 2017 The crypto-currency is on the verge of turning respectable, but a futures market cannot cure its faults. It is economic nonsense, socially irresponsible and an incoherent vote for cultural nihilism. Then there is the unadulterated greed. Disaster can't come soon enough.
The Exchange: Mike Novogratz 15 Nov 2017 From Goldman Sachs partner to Fortress founder and now bitcoin trader, the chief executive of Galaxy Investment Partners has something of a Midas touch. He swings by Times Square to talk about how he's making a killing with a new hedge fund betting on crypto-currencies.
UK economy will share Theresa May’s pain 13 Nov 2017 The Prime Minister is facing growing challenges to her leadership from the ruling party’s pro- and anti-EU factions. Political disarray increases the risks that leaving the European Union will do serious economic harm. A softer Brexit is growing harder to deliver.
Goldman imports Chinese money to lift U.S. trade 9 Nov 2017 The investment bank unveiled a plan to invest $5 bln in American manufacturers with Beijing sovereign fund CIC. In effect, pricey capital generated from trade deficits will go to help the heartland export to China. It's a rich idea to present an anti-globalist U.S. president.
Abe best off keeping Trump out of economic rough 3 Nov 2017 The Japanese premier has established an uncommonly good rapport with his U.S. counterpart. At their upcoming meetings, including on the golf course, Shinzo Abe would be well-served focusing on North Korea. Trade and currency matters only risk creating a momentum-slowing wedge.
ICOs validate old-school “follow the money” mantra 19 Oct 2017 One of the biggest so-called initial coin offerings to date, $230 mln for what are known as tezzies, has led to a spat between its architects and a Swiss foundation that controls the digital cash. Where crowd-funding and crypto-currencies meet IPOs, traditional motivations apply.
Sliding peso flashes warning sign over Philippines 6 Oct 2017 The peso’s slide to 11-year lows reflects concerns about President Rodrigo Duterte’s priorities. His brutal drug war, erratic leadership and vague economic plans could send Asia’s worst-performing currency even lower as Manila’s balance sheet deteriorates and inflation rises.
Crypto-currencies’ strength becomes their weakness 29 Sep 2017 Freedom from regulation was the big draw of bitcoin, ether and the like. But exchanges established to trade them often lack basic controls on identity, fraud, tech and even volume. Without fixes, digital currencies will stay on the financial fringe, prone to crime and bubbles.
Crypto-currencies can’t salvage hedge-fund junkies 27 Sep 2017 One-time star manager Mike Novogratz is pinning a comeback on digital coins. Their volatility is alluring when tranquil markets are depressing industry returns. But as the former Fortress executive knows, that can be a trap. He was burned by a bad Swiss franc bet two years ago.
Trump’s new Democrat friends put China on notice 26 Sep 2017 The U.S. president touted his common ground with congressional minority leaders Chuck Schumer and Nancy Pelosi when it comes to Beijing. They talk tougher on currency manipulation and trade than some in the White House. Their chumminess could put more economic pressure on China.
Hadas: Crypto-currencies presage new monetary era 21 Sep 2017 No, bitcoin and its peers won’t become an electronic version of the gold standard. Rather, the speculation surrounding them indicates a financial system out of control. If the frenzy ends in a crash, it’s a chance to revive the old idea of a centrally controlled money supply.
What Carney can learn from Yellen 21 Sep 2017 Fed Chair Janet Yellen showed rate-setters can shock markets even when they stick to the script. That’s a lesson for the Bank of England’s Mark Carney, who has talked up a rate rise this year. Like her, he may have to hike without having solved a host of economic puzzles.
Asia bulls gather to enjoy a justified gloat 15 Sep 2017 Record numbers assembled at CLSA's investor forum in Hong Kong, where the Chinese-backed brokerage made the case for Asia. Soaring markets make the region an easy sell; even guest Steve Bannon sounded impressed. The risks are that China stumbles, or America gets its act together.
Thai baht races ahead of economic upgrades 12 Sep 2017 The Thai currency is near 28-month highs, buoyed by a growing current-account surplus, a weak dollar and attractive yields. But Thailand’s military rulers are doing little to improve the real economy. Asia’s best-performing currency could fall foul of economic gravity.
Beijing prepares to stand yuan policy on head 11 Sep 2017 Having spent years fighting off capital outflows, China is getting worried about inflows into a runaway yuan. Excessive currency strength could hurt exports and complicate deleveraging. Capping the rally without confusing the market will be quite a trick.
Review: Bank of England’s present echoes in past 8 Sep 2017 The Old Lady has evolved from government lender to modern central bank, but familiar themes recur in David Kynaston’s vivid history. Arguments over independence, monetary policy, bank bailouts and the City of London’s future are as timeworn as the institution itself.