Archives of “October 31, 2019” day

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Top officials in 20 countries had phone data stolen via WhatsApp – report

  
  Analysis

WhatsApp hacked to spy on top officials

Senior government officials in at least 20 US-allied countries had their phones taken over by spies exploiting vulnerabilities in WhatsApp, according to a Reuters report.
A ‘significant’ portion of the victims were high-profile government and military officials in a breach that could have broad political consequences. Officials in the US, UAE, Bahrain, Mexico, Pakistan and India were among those targted.
It’s not clear who the perpetrator of the attack was but WhatsApp filed a lawsuit this week against Israeli hacking tool developer NSO Group, who they say built and sold a hacking platform that was used to hack into the phones of 1400 users.

Trump takes another shot at the Federal Reserve

  
Analysis, Politics
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Trump with the usual stuff

People are VERY disappointed in Jay Powell and the Federal Reserve. The Fed has called it wrong from the beginning, too fast, too slow. They even tightened in the beginning. Others are running circles around them and laughing all the way to the bank. Dollar & Rates are hurting..our manufacturers. We should have lower interest rates than Germany, Japan and all others. We are now, by far, the biggest and strongest Country, but the Fed puts us at a competitive disadvantage. China is not our problem, the Federal Reserve is! We will win anyway.
If you’ve been watching CNBC lately, it sure sounds like Jim Cramer is making a real pitch to be the next Fed chair. There was also talk about turfing Powell after the election in a move that would undoubtedly cause a legal fight.

China reportedly said to doubt long-term trade deal is possible with Trump

  
Analysis, Politics
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China said to be unwilling to budge on big structural changes

The Bloomberg report says that China is casting doubts about reaching a comprehensive long-term trade deal with the US, blaming Trump’s impulsive nature and the risk that he may back out of even the limited deal that both sides are about to sign in the coming weeks.
Adding that Chinese officials have warned that they won’t budge on structural issues either, citing people familiar with the matter. Further noting that China is demanding an end to tariffs in order to begin any talks for “Phase Two”.

Risk trades are taking a bit of a hit with USD/JPY quickly down to a low of 108.35 as equities and bond yields fall as the headlines hit.

This doesn’t mean that a “Phase One” deal is off but it certainly highlights that what both sides are working towards in November is essentially pointless in the grand scheme of things. The trade war is merely put on ice, it doesn’t mean it is over.
And as mentioned before, China has loosely made vague promises on its currency and IP protection during the “Phase One” talks. I don’t think it is any surprise that they are not looking to make firm commitments on those matters and that is what we are seeing.
Let’s see if we will get any official word on this matter in the sessions ahead or if US and Chinese officials will rebuke the report above.

Nikkei 225 closes higher by 0.37% at 22,927.04

  
Analysis, Global Indices

Japanese stocks climb amid mixed mood in Asia

Nikkei 31-10

The Nikkei closes higher again today as investors continue to chase the 23,000 mark following gains in Wall St overnight. Apple and Facebook earnings also beat out expectations and that is helping out with the risk mood among equities as well.

The Hang Seng is trading 0.9% higher but the Shanghai Composite is down by 0.4% near session lows at the moment, as Chinese PMI data earlier in the day showed further signs of economic struggle.

The overall risk mood continues to hold more steady with US futures near flat levels while bond yields are slightly higher, more so on the short-end of the curve. USD/JPY remains a little weaker at 108.68 with dollar weakness at play there.

Powell Q&A: It would take a ‘material reassessment’ of outlook to shift stance

  
  Analysis
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Powell comments to reporters:

Powell
He emphasized ‘material’ 3-4 times.
  • Risks to the outlook have shifted more positively
  • Says he was generally referring to less uncertainty on trade
  • Consumer facing companies say consumers doing well
  • Economy has been resilient to winds blowing this year
  • Today’s business investment in GDP was weak
  • We generally hike because we see inflation moving up, we don’t see that now
  • Inflation expectations are quite central to its framework
  • If we were to have a sustained reduction in trade tensions, it would bode well but I wouldn’t expect immediate effects; it would take time
  • Significant inflation rise needed before any rate hike
  • There is a big and growing difference in rural and urban outcomes
  • GM strikes likely too ‘a couple tenths’ off growth this quarter but is likely to return
  • Policy is ‘somewhat accommodative’ in my estimation
  • Not seeing asset bubbles, monitoring
  • We think liquidity in the financial system is ample but we’re working to make it move more-freely
The dollar initially rallied but everything reversed when Powell said that it would take a significant rise in inflation before they start hiking again. That was a strong message they’ll be on the sidelines.
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