Bitcoin bulls join forces with Wall Street
A new era of crypto trading is expected to begin today after the SEC finally approved the creation of a new exchange-traded fund that will allow investors to more easily buy and sell Bitcoin.
The regulator yesterday authorized 11 fund managers – including Wall Street fund giants BlackRock and VanEck and smaller companies like Grayscale and Valkyrie – to start offering new crypto investment products.
In anticipation of the decision, companies have been Aggressively Cut Your Management Fees To get quick profits. “The fundamental change is that there is a lot more money coming into this asset class,” Paul Grewal, chief legal counsel at crypto exchange Coinbase, told DealBook. Matthew Siegel, head of digital asset research at VanEck, called it a “historic” moment.
Bitcoin reached 21-month high this week, as crypto boosters ignored a series of high-profile bankruptcies and sweeping legal action against some of the sector’s biggest players. That said, the price of the cryptocurrency barely budged this morning, trading below $47,000, bringing the market cap of the digital token to nearly $920 billion.
How big can the market be? Not surprisingly, crypto buyers and those offering Bitcoin ETFs think the possibilities are limitless. Grewal said investors could pour billions of dollars into digital asset markets in the short term and trillions of dollars over time.
But some people outside the sector also see a reason for growth, “We expect further price gains in the current year,” Deutsche Bank researchers Marion Labouré and Cassidy Ainsworth-Grace wrote in a note to investors today. He said an influx of institutional investors and new crypto-trading regulation is expected, including the European UnionCould boost the market for digital assets.
SEC approval gives crypto a seal of legitimacy. SEC Chairman and frequent critic of the asset Gary Gensler said the new Bitcoin investment products will feature familiar investor protections. For example, fund providers must file public registration statements and periodic financial filings.
But he warned that this approval is not an endorsement. “Bitcoin is primarily a speculative, volatile asset that is also used for illicit activities, including ransomware, money laundering, sanction evasion, and terrorist financing,” he said in a statement. cathy woodOne of Bitcoin’s most vocal champions, whose firm yesterday won approval for a Bitcoin ETF, said Gensler has “slandered” the sector.
Is There a Next Ethereum Fund? The industry and its lobbyists in Washington believe Bitcoin ETF approval will lead to similar funds for other cryptocurrencies. VanEck has a pending application for an ETF tied to Ethereum, the second-largest crypto asset by market capitalization.
What’s going on over here
Natural gas giants agree to alliance. Chesapeake Energy said it would acquire Southwestern Energy in an all-stock deal valued at $7.4 billion, making it one of the nation’s largest energy producers. It is the latest big deal in the oil and gas sector in recent months, even as low oil prices are hurting the industry’s profits.
Tech giants have announced a new wave of layoffs. Amazon It said it would cut hundreds of jobs across its Prime Video and studios businesses, and cut more than a third of the workforce at streaming platform Twitch. And Google cut hundreds of jobs as it looks to cut costs and double down on artificial intelligence.
Chris Christie drops out of presidential race. The vocal Trump opponent suspended his long-running campaign yesterday. But comments dismissive of his Republican rivals, captured on hot mic – Christie said Nikki Haley was “about to be smoked” – appeared to undermine his efforts to stop Donald Trump. (Haley and Ron DeSantis sparred in another debate while Trump participated in a town hall event on Fox News.)
Alaska Airlines has grounded Boeing’s 737 Max 9 planes. The company said it would not resume flights using the planes until at least Saturday. The FAA said Tuesday that the initial rules provided by Boeing needed to be revised, after which the airline was awaiting instructions on how to inspect its planes.
Skydance Media is said to be bidding for Shari Redstone’s National Entertainment. Skydance CEO David Ellison has been in talks with investors, including his father and Oracle founder Larry Ellison. All-cash bid for Paramount Global’s parent group, according to the Wall Street Journal. If successful, the group would reportedly consider merging Paramount with Skydance, the studio behind “Top Gun: Maverick.”
What to watch for this earnings season?
Heading into third-quarter earnings in early October, stocks were surging as investors worried about persistently high inflation and rising oil prices. They were surprised by a strong batch of results that helped lead an impressive year-end rally for the S&P 500.
With fourth-quarter earnings announcements starting tomorrow — first up are Bank of America, BlackRock and JPMorgan Chase — Wall Street is hoping to extend those impressive gains. Here’s what to see.
Analysts have forecast modest growth. While profit is expected to rise for the second consecutive quarter in the three months to December 31, bottom-line growth on an annual basis is estimated at only 1.3 per cent. According to FactSet, And this will largely come from only two sectors, technology and utilities.
Six tech giants were the biggest winners in the last quarter. According to Bank of America, Alphabet, Amazon, Apple, Meta, Microsoft and Nvidia are expected to register a combined growth of 56 percent year-on-year.
But with the global economy showing signs of slowing down, some on Wall Street are predicting a repeat of Big Tech’s 2023 stock gains. “It’s another year of underwhelming returns for the select few megacap tech companies that drive stock market returns,” David Bahnsen, chief investment officer at The Bahnsen Group, wrote to investors yesterday.
Doubts are looming about Apple. Last week, analysts at Barclays and Piper Sandler Tech giant downgraded Concerns over slow iPhone sales and questions about its business in China.
It’s a mixed picture for banks. The sharp decline in Treasury yields last quarter was “quite positive” for lenders’ capital holdings, Sean Ryan, FactSet vice president and director of banking and specialty finance, wrote in a research note.
But continued weakness in their investment banking businesses and the uncertain corporate real estate market will again weigh on earnings, he said. For signs of the health of households and the broader business sector, keep an eye on updates on their loan business and particularly loan-loss provisions.
“It is not clear to us whether we are talking about re-establishing safe passage into the Red Sea in a few days, weeks or months.”
, Vincent ClerkCEO of shipping giant AP Moller-Maersk. He warned in The Financial Times that attacks on commercial traffic by Iran-backed Houthi forces, which have forced some companies to reroute ships around Africa, could harm global growth.
Disney’s Latest Domestic Headache
Disney already faces a number of challenges, including pressure from activist investor Nelson Peltz and questions about its business strategy and succession planning.
Now it’s dealing with the headache of ESPN, which generates a large portion of its profits because of one of the sports network’s big new stars.
Dusty Center on Pat McAfee, An NFL bookmaker turned shock jock who was bought by ESPN in a deal last year from betting company FanDuel It is reportedly worth $85 million, (A personal pitch from Disney CEO Bob Iger apparently helped seal the deal.)
But McAfee has an unusual position at ESPN: He’s an employee who appears on college football and NFL shows and, when it comes to his own daily show, he’s a contractor. That means the network has less control over it, reports Kevin Draper of The Times.
What happened: First, New York Jets quarterback Aaron Rodgers, who frequently appears on McAfee’s show, reported that late-night comedian Jimmy Kimmel — one of the biggest stars at Disney-owned ABC — had ties to Jeffrey Epstein. . (Kimmel, whose name has not been revealed in recently uncovered court records related to the late sex offender, has threatened to sue Rodgers.)
After the New York Post published ineffective rating data As for McAfee’s show, the host then accused Norby Williamson, a senior ESPN executive, of leaking information. McAfee called Williamson, long known as the network’s internal talent disciplinarian, a “rat.”
McAfee represents a dilemma for Disney. His public clash with colleagues was highly unusual, as was giving Rodgers the opportunity to challenge another ABC star. Former ESPN star Jemele Hill said there is “no offensive crime” greater than the “talent-on-talent” offense on the network. (McAfee has apologized for the episode with Rodgers and the quarterback, who later said that he had apologized just kiddingWill not appear on the show for the remainder of the NFL season.)
But given his popularity among young sports fans, Disney is betting that McAfee is a bridge to the future. ESPN noted on January 5 that McAfee’s show gained popularity. 886,000 average viewers per episode on his network, YouTube and TikTok in December, and is believed to be bringing Generation Z audiences to other shows.
Two caveats: According to The New York Post, on ESPN alone, McAfee has lost 48 percent of his core audience. And ESPN only licenses McAfee’s shows, meaning the network doesn’t get any cut of the revenue collected from other platforms.
The entertainment world has other concerns too. In negotiations with ESPN over NBA media rights, the league may push to show more games on ABC, meaning the two networks could be further integrated. But more controversy at ESPN could make that process fraught.
Hewlett Packard Enterprise shares fall nearly 9 percent after announcing $14 billion deal Buy Juniper Networks, communication equipment and service providers. (WSJ)
Advertising giant WPP is reportedly considering its divestment options 40 percent stake in Kantar, market data company. (Bloomberg)
What’s next for Comcast? brian robertsOne of the media industry’s biggest deal makers? (puck)
best among the rest
“is from America ultra-processed diet she is wrong? Big Food Fights Back.” (WSJ)
nick sabanOne of the most successful coaches in the history of college football is retiring from the University of Alabama. (athletic)
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