DTI’S WEEKLY DIGEST [13/19 JUNE]
#MACRO #FINANCE
Fed Holds Interest Rates Steady.
The possibility of Brexit was one of the factors that led the US Federal Reserve to keep interest rates on hold, Chair Janet Yellen said.
Global interest rates are their lowest for 5,000 years, according to Bank of America, but central banks could still cut them further.
Brexit. China’s economy slowing. The US presidential election. Record-low bond yields. Stocks looking wobbly at record highs.
And in response to all of this uncertainty, investors have ramped up their holdings of good old fashioned cash.
According to Bank of America Merrill Lynch’s latest fund manager survey, investors surveyed by the firm now have 5.7% of their net holdings in cash, the highest percentage since November 2001.
According to a Goldman Sachs Group Inc. estimate, if Treasury yields rise unexpectedly by 1 percentage point, bondholders would lose $1 trillion.
Greece gets $8.4 bln bailout aid from eurozone.
“This is a welcome breath of oxygen for the Greek economy,” because the country is in urgent need of the fresh money from Europe to service two debt payments to the European Central Bank next month.
#CHINA
McKinsey: China Spends More on Infrastructure Than the U.S. and Europe Combined.
Chinese E-commerce company JD.com launches drone deliveries to rural areas.
China spent $470bn to maintain confidence in yuan. Central bank felt pressure to stabilise currency even after pledging to reduce intervention
#COMMODITIES
IEA: Increasing Asian demand and world-wide disruptions to oil production could eat away today’s oil glut by the end of 2016.
Kenya, the world’s biggest exporter of black tea, is considering introducing the world’s first futures contracts for the leaves to help stabilize prices and enable growers to guarantee income from their production.
The number of jobs lost as a result of the downturn in the UK oil and gas sector could top 120,000 by the end of this year, according to Oil & Gas UK report.
#INTERESTING
UBS Wealth Management Americas (WMA) and tech company SigFig has formed a “strategic alliance” to develop digital technology for UBS WMA, its financial advisors and their clients.
According to central bank the Riksbank, cash transactions in Sweden made up barely 2% of the value of all payments made last year — a figure some see dropping to 0.5% by 2020. In shops, cash is now used for barely 20% of transactions, half the number five years ago, and way below the global average of 75%.
Microsoft to Acquire LinkedIn for $26.2 Billion.
Shares of LinkedIn surged 47 percent after the announcement to near $193, while Microsoft’s stock was down 3.2 percent.
Twitter has invested $70 million into the music streaming service SoundCloud.
People use WeChat to pay rent, locate parking, invest, make a doctor’s appointment, find a one-night stand, donate to charity. It’s actually a lot of trouble not to use WeChat when you’re there, and socially weird, like refusing to wear shoes.
*In our previous Digest #74, we told you about MoneyTalk Telegram app, which was launched by Tinkoff Bank. It may be a russian analog of WeChart.
NASA Announces New Electric Airplane.
#OPINION [dti in media]
DTI managing partner Alexander Butmanov at Stock Exchange #98 at Euronews on 13 June 2016: “Fed Funds Futures may help investors predict a federal reserve rate hike”.
Alex Butmanov, Managing Partner, Founder & CEO at Dream Team investments, advised to use Fed Funds Futures to predict a federal reserve rate hike. Besides, Alex Butmanov gave trading ideas on SnP, Oil (ETF) and USDRUB. To discover it and to count yourself among the first to be able to take advantage of this opportunity, just see this video.
