- U.S. spy chiefs face Congress amid spying rift with Europe (Reuters)
- Deutsche Bank income hit by €1.2bn of legal provisions (FT)
- China's second tapering attempt fails: China central bank seeks to reassure money markets after rate spike (Reuters)
- UBS Takes Action Against Staff in Foreign-Exchange Probe (WSJ)
- Saudi Arabia frees man jailed for Mohammad tweets (Reuters)
- Tax Revolts Hit Hollande as Farmers, Soccer Clubs Protest (BBG)
- German parliament to meet over U.S. spying scandal (Reuters)
- Google Nears Smartwatch Launch (WSJ)
- How to end gridlock in DC? Pork projects (Reuters)
- UBS ordered to increase capital reserves (FT)
Usually what goes up normally ends up coming back down to Earth with a damn great thud. Well, that was long ago with good old Isaac Newton and the apple story.
The world's first Bitcoin ATM will be ready for use this week at a coffee shop in Vancouver, Canada. Created by Las Vegas based Robocoin, the new ATM in Vancouver will allow users to turn bitcoins directly into Canadian dollars, or turn Canadian dollars into bitcoins. As The Telegraph reports, the ATM first scans the user's palm to ensure security and transfers are limited to CAD$3,000 per day. Until now, the currency existed only on the web but the introduction of these ATMs brings bitcoin-as-cash usage closer. The RoboCoin kiosks are expected to make the process of buying and selling Bitcoins much easier says Jordan Kelley, the company's chief executive. "Our goal is to make Bitcoin truly grandma-friendly," says Kelley. This is especially notable in light of President Obama asking Eric Schmidt if "Bitcoin is anything he has to worry about?"
With even the Federal Reserve throwing doubt on the veracity (or usefulness) of the 'official' unemployment data (having finally caught on to the reality we have highlighted for a number of years), Petr Pinkhasov has created a more 'real' unemployment index reflecting the reality of every day for the average American...
Supermarkets, healthcare and education are next in line for technological upheaval. We look at the best ways to profit from upcoming changes.
Of course, the "relentless" rise hasn't been for two months this time.......it's been for nearly five years. And I can tell you, reporting directly from the heart of the Silicon Valley, the zeitgeist around here is 1999 and 2007 compressed together and supercharged.
When three weeks ago, the FBI arrested Ross William Ulbricht - the creator of the now shutdown Bitcoin-only "alternative" marketplace Silk Road also known as Dread Pirate Roberts, some were surprised that the Feds only confiscated about $3.6 million worth in Bitcoins from Ulbrecht. Proving all doubters wrong, and that creating the first "libertarian" marketplace not subject to any rules and regulations, not to mention fiat monetary constraints, actually does pay quite well, moments ago it was revealed that Federal prosecutors had found an additional $29 million, or 144,336 BitCoins, belonging to the Dread Pirate. According to Reuters, the booty was discovered on "computer hardware" belonging to Ulbricht. The repossessed electronic money, whose encryption technologies seem to leave a bit to be desired, has now been impounded and will likely remain on the FBI's hard disks indefinitely.
As the 'diplomatic' debacle continues to rage between the US and Europe (most loudly France and Germany) over the Obama administration's ongoing eavesdropping on its allies' cell phones, Reuters reports that (state-backed) Deutsche Telekom is calling for German comms companies to cooperate to shield local internet traffic from foreign intelligence services. "It is internationally without precedent that the internet traffic of a developed country bypasses the servers of another country," notes one academic, warning that if more countries wall themselves off, it could lead to a troubling "Balkanisation" of the Internet, crippling the openness and efficiency that have made the web a source of economic growth. Despite Obama's denials, the situation is not fading away, and Germany and France continue to demand a "no spying" agreement.
On Monday, Google rolled out three new initiatives to ensure the openness of the Internet and access to the service -- even in the face of government crackdowns on the web. As Foreign Policy notes, one of those tools is a proxy plug-in -- creatively titled uProxy -- that uses a peer-to-peer system to create secure Internet connections. Another tool, Project Shield, promises to protect human rights organizations and NGOs from so-called DDoS attacks, which take down a website by directing a flood of traffic toward it and overwhelming it or rendering it unusable. The last project rolled out this week is something called the Digital Attack Map, which is embedded below. It's a fascinating, interactive map that monitors DDoS attacks around the world -- an effort Google hopes will raise awareness about the problem.
Historical data tells us that the unemployment falls when the confidence ratio is high. Now, there are three ways for a government to increase that confidence ratio: 1) increase debt; 2) sell off gold; and/or 3) pray for the price of gold to fall (obviously in a non-manipulative manner that doesn't direct profits to favoured entities). The fall in confidence that we observed in the latter half of the last decade was entirely due to the rising price of gold. Look at what that did to the unemployment rate! Clearly the fault of gold-bugs and conspiracy theorists. The rising price of gold completely overrode the excellent work of the Government in driving up the country's debt.
- Despite budget win, Obama has weak hand with Congress (Reuters)
- Carney Brings In McKinsey for Bank of England Strategy Rethink (BBG)
- Bill Gates Buys Stake in Spanish Construction Company FCC (WSJ)
- Jerusalem Mayor Barkat Seeks New Term in Race Arabs Sitting Out (BBG)
- J.P. Morgan Aimed to Limit Damage (WSJ)
- EU Lawmakers Reject Draghi Call for Bank Bondholder Clemency (BBG)
- Wall Street Profits May Halve in Second Half (WSJ)
- Petrobras-led group wins Brazil oil auction with minimum bid (Reuters)
- Apple to Refresh IPads Amid Challenges for Tablet Share (BBG)
- Italy plans to offer guarantees on govt bond derivatives (Reuters)
- Berkshire Beats Apple as Favorite Stock of Tiger 21 Group (BBG)
Presented with little comment aside to note that Google (3rd largest market cap in the S&P 500) is now up 13% on the day... (at $1007.40)
- Republican Civil War Erupts: Business Groups v. Tea Party (BBG)
- Budget fight leaves Boehner 'damaged' but still standing (Reuters)
- Madoff Was Like a God, Wizard of Oz, Lawyers Tell Jury (BBG) - just like Bernanke
- Republicans press U.S. officials over Obamacare snags (Reuters)
- Brilliant: Fed Unlikely to Trim Bond Buying in October (Hilsenrath)
- More brilliant: Fed could taper as early as December (FT)
- Russia Roofing Billionaires Seen Among Country’s Youngest (BBG)
- Ford's Mulally won't dismiss Boeing, Microsoft speculation (Reuters)
- China reverses first-half slowdown (FT)
- NY Fed’s Fired Goldman Examiner Makes Weird Case (BBG)
While the US economic data reporting machinery slowly starts churning again following the "reactivation" of government, last night it was China 's turn to report a slew of goalseeked economic items. Q3 GDP (+7.8% yoy), Industrial Production (+10.2% yoy), Fixed Asset Investments (+20.2% YTD yoy) and Retail sales (+13.3% yoy) for September all came in broadly in line with market consensus. The economy grew at a faster pace on a sequential basis with Q3 growth being 0.3ppts higher than Q2. Nonetheless, many observers forecast yoy Q4 GDP growth to decline due to the end of inventory restocking and the fade out of a major credit stimulus in the prior quarter, even as total Chinese debt continues to push ever higher into bubble territory.Speaking of China, however, it is worth noting that overnight the Chinese Yuan rose to the highest level against the dollar in 20 years. This happens as the USD tumbles to nearly a year low, which incidentally is the theme of the overnight session: the ongoing dollar poundage is reverberating across the globe, and the resulting unleashing of global funding carry trades looks set to take the S&P (and everything else) to fresh record highs on the back of even more generous Fed Kool Aid expectations.