STAYING GROUNDED
Cryptocurrency markets, including Bitcoin (BTC), are currently stable as investors await the upcoming Federal Open Market Committee (FOMC) meeting begins today. Let’s remember that the Fed is widely expected to reduce interest rates, and as of this morning there is a 67% predicted probability of a 50 basis points reduction, as indicated by the 30-Day Fed Funds futures prices. Furthermore, traders on Polymarket are assigning a 57% likelihood of a 50+ basis points decrease and a 41% possibility of a 25 basis points decrease. Consequently, Bitcoin’s price remains just below the $58,500 mark, with the CoinDesk 20 (CD20) showing a slight increase, trading above 1,800. Moreover, daily inflows into Bitcoin exchange-traded funds (ETFs) have reached $12.9 million, with a significant portion directed towards BlackRock’s IBIT. Furthermore, despite some fluctuations, the overall market appears relatively steady, with notable movements seen in XRP, SUI, and Fantom’s FTM, the latter experiencing a 10.5% increase attributed to an optimistic response to the project’s impending re-branding as Sonic.
SURPRISING SURGE
In August, retail sales in the U.S. unexpectedly increased by 0.1%, driven mainly by a surge in online purchases that overshadowed mixed results at brick-and-mortar stores. This rise follows a 1.1% gain in July, as reported by the Commerce Department this morning. Nonetheless, despite the overall increase, some sectors such as electronics, clothing, and furniture experienced a decline in sales, while gasoline service stations saw a decrease in receipts due to lower fuel prices. The data also revealed that control-group sales, used to calculate GDP, rose by 0.3% in August, indicating continued strong household demand. Moreover, it is worth remarking that while there are concerns about a potential slowdown in hiring and wage growth, the solid retail sales figures suggest that the economy is still on a stable path.
GROWTH ALLIANCE
Intel’s shares increased by over 7% following the announcement of a significant collaboration between CEO Pat Gelsinger and Amazon Web Services (AWS) for manufacturing custom semiconductors for artificial intelligence computing. This partnership, valued at multibillion dollars and spanning multiple years, will leverage Intel’s advanced 18A chipmaking technology to create fabric chips. Gelsinger’s strategic focus on efficiency and streamlining operations is evident in the decision to postpone new factory construction in Germany and Poland while remaining committed to expanding in the U.S. Moreover, it is worth remarking that the move aims to position Intel as a leading player in the semiconductor industry amidst ongoing challenges and the need to cut costs. Additionally, Intel’s pursuit of partnerships and investments, including potential government funding for chip production for defense, reflects a broader effort to regain market confidence and compete with industry giants like Nvidia.
RECORD-BREAKING LAUNCHES
In the first eight months of this year, there has been a surge in the launch of new global ETFs, driven by increasing demand from investors and advisors seeking a broader range of investment products. According to data from ETFGI, a total of 1,192 new ETFs were introduced, surpassing the previous record set in 2021. The leading ETF issuers were BlackRock Inc.’s iShares and Global X, with the U.S., Asia Pacific, and Europe being the regions with the highest number of new funds. Notably, actively managed ETFs were the most popular among the new products, followed by equity and fixed income offerings. In addition, cryptocurrency ETFs, such as the iShares Bitcoin Trust, have experienced significant growth in assets under management. Nevertheless, it is worth noting that despite the high number of new launches, there were also 347 closures, indicating the competitive nature of the ETF market. Overall, the global ETF industry has reached a record $13.9 trillion in assets, with products listed on numerous exchanges worldwide.
INTERNATIONAL NEWS
Hedge funds are increasing their presence in Japan by hiring more traders due to recent changes in the economy and policies. Companies like Brevan Howard and Millennium Management are bringing in new talent to take advantage of trading opportunities created by fluctuations in the market. The Bank of Japan’s decision to raise interest rates and the yen’s rise against the dollar have made the market more unpredictable, leading to losses for some hedge funds. By adding experienced traders to their teams, these firms hope to navigate through these challenges and make profitable trades based on different global monetary policies.
