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FTX executives are turning on each other. A filing yesterday revealed that days before the bankruptcy filing co-CEO Ryan Salame told authorities that SBF may have committed fraud by sending FTX customer funds to his hedge fund Alameda.
Prices as of 4 pm EST, 12/14/22; % YTD
MARKET UPDATE European Central Bank
- Raised its key interest rate by 0.5%
- Highest rate since 2009
Bank of England
- Raised its key interest rate by 0.5%
The U.S. Fed has more work to do to fight inflation
- Yesterday, as expected, Jay Powell raised the Fed Funds rate by 0.5%
- The range is now 4.25% to 4.5%
- The target rate is 5% in 2023, so one hike of 50 or two hikes of 25 expected in 2023
- The target rate is 4.1% in 2024
- Higher for longer interest rates
China
- Weaker than expected economic data
- Industrial production +2.2% vs. street at 3.5%
- Retail sales -5.9% vs. street -4.0%
- Property investment -9.8% vs. street -9.2%
- China injected 650 billion Yuan in the banking, more than 500B expected
Crude 76.20 -1.4%
- Partial restart of the Keystone pipeline
- Lack of timeline for full restart of the southern leg of Keystone
Tesla (NASDAQ: TSLA (NASDAQ:TSLA))
- Elon Musk sold another $3.58 billion shares
- Brings his total sale to $40 billion to fund his Twitter purchase
Apple (NASDAQ: NASDAQ:AAPL)
- Foxconn (SS:601138) is easing most COVID restrictions at its plant in Zhengzhou
TikTok
- Senate passed legislation that would ban federal employees from using TikTok on gov’t devices
- Legislation still needs to pass the House
Earnings
- Lennar (NYSE: LEN) -3%
- Jabil (NYSE: JBL)
CRYPTO UPDATE MetaMask x PayPal (NASDAQ: NASDAQ:PYPL)
- MetaMask added PayPal integration to wallet
- US users will be able to purchase Ethereum from app
- Should reduce onboarding friction
- PayPal users have been able to buy/sell crypto since 2020
US bill targets self-custody wallets
- Financial Crimes Enforcement Network (FinCEN)
- Would expand KYC (Know Your Customer) requirements
- Crypto wallet providers, miners, validators, others would be treated as “money service businesses”
- Would also require anti-money laundering programs
- Prohibits use of digital asset mixers (like Tornado Cash)
CZ says “99% of people” will lose crypto in self-custody
- Meanwhile, Binance withdrawals totaled ~$3 billion on Tuesday alone
Crypto Fear & Greed
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