Day: September 13, 2022

HSBC’s CEO Explains Why Crypto Is Not in the Banking Giant’s Future – Finance Bitcoin News

 

 

Banking giant HSBC will not be offering crypto services, according to CEO Noel Quinn. Noting that HSBC is more negative on crypto than other banks, the executive stressed: “I do worry about the sustainability of the valuations of crypto.”

HSBC Will Not Get Into Crypto, CEO Says

The chief executive of HSBC, Noel Quinn, talked about his bank’s cryptocurrency stance in an interview with CNBC-TV18 last week. He confirmed:

As a bank, we’re not getting into the crypto world, crypto trading, crypto exchanges.

Emphasizing that cryptocurrencies are too volatile, the HSBC chief said: “I do worry about the sustainability of the valuations of crypto and I have done for a while. I’m not going to predict where it will go in the future.”

Quinn proceeded to explain why HSBC is more negative on crypto than other banks. He stated:

As a product, I questioned its suitability for many of the consumers in the marketplace today. So that’s why HSBC is more negative on crypto than other banks.

In May last year, Quinn told Reuters: “I view bitcoin as more of an asset class than a payments vehicle, with very difficult questions about how to value it on the balance sheet of clients because it is so volatile.”

He added: “Given the volatility, we are not into bitcoin as an asset class … We are not promoting it as an asset class within our wealth management business.”

As for stablecoins, Quinn said at the time: “For similar reasons, we’re not rushing into stablecoins.” He explained that stablecoins “do have some reserve backing behind them to address the stored value concerns, but it depends on who the sponsoring organization is, plus the structure and accessibility of the reserve.”

In April last year, HSBC Canada notified clients that its crypto policy had changed, stating that it would not facilitate the buying or exchange of products related to virtual currencies. For example, clients could no longer buy shares of Microstrategy (MSTR-US) through HSBC Invest Direct.

What do you think about the comments by HSBC CEO Noel Quinn about cryptocurrency? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

 

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

How To Make Your Airport Transfer Easier

This article breaks down the different steps that are involved in making your airport transfer a smoother and less stressful experience. From making sure you know where to go and what to expect, to know what to do if you encounter an issue along the way, this guide will be perfect for easing your mind as you head through your travels.

If you’re traveling through an airport, there’s a good chance you’ll be transferring to your final destination. But if you’re like most people, you’re probably dreading the process. Here are some tips to make your airport transfer easier: 

No matter what time of day or night it is, avoid checking in for your flight until after you’ve completed your airport transfer in Puerto Vallarta. This way, the check-in line will be shorter and you can get right on to the security checkpoint.

Image Source: Google 

Whenever possible, arrive at the airport two hours before your flight departure time. This will give you enough time to check in and get through security. 

Bring plenty of snacks, drinks, and money (in case of emergencies). And don’t forget your passport and boarding pass!

When you are picking up a new passenger at the airport, there are a few things to keep in mind. First of all, know that your new transferee will likely be tired from their long journey. It is important to be patient and understanding during the transfer process. 

Secondly, it is important to make sure that you have all of the necessary paperwork ready before picking up your new passenger. This includes their passport and visa if needed. Finally, be prepared to answer any questions your new transferee may have about their destination and arrival time.

As we all know, flying can be a bit of a hassle. Between checking in, getting your luggage, and making your way through security, it can be hard to make it to your gate on time. To make the transfer from the airport to your hotel or rental car more manageable, follow these tips: 

Arrive early and check in at the airport. This will save you time waiting in line and get you closer to your gate.

Bring a backpack full of snacks and drinks so that you don’t have to stop for anything on the way.

Pack light – you won’t have any trouble carrying what you need in one bag instead of several carry-on bags. 

Carry an electronic boarding pass so that there is no need to fumble with paper tickets at security checkpoints.

Book your transportation ahead of time – this will help avoid traffic congestion and long wait times during the rush hour.

 

Asian markets weaken as IMF, World Bank flag recession risks

By Scott Murdoch

HONG KONG (Reuters) – Asian markets were weaker on Friday as investors braced for a U.S. rate hike next week amid growing concerns of a global recession following warnings from the World Bank and the International Monetary Fund.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3% on Friday, after U.S. stocks ended the previous session with mild losses. The index is down 4.1% so far this month.

Australian shares were down 0.94% on Friday, while Japan's Nikkei stock index slipped 1.2%.

Hong Kong's Hang Seng Index was down 1.1% while China's CSI300 Index was 0.86% lower.

The weaker session followed broad declines across the major U.S equities markets.

The Dow Jones Industrial Average fell 173.27 points, or 0.56%, to 30,961.82, the S&P 500 lost 44.66 points, or 1.13%, to 3,901.35 and the Nasdaq Composite dropped 167.32 points, or 1.43%, to 11,552.36.

The global economic outlook remains downbeat and some countries are expected to slip into recession in 2023, but it is too early to say if there will be a widespread global recession, the IMF said on Thursday .

The IMF in July revised down global growth to 3.2% in 2022 and 2.9% in 2023. It will release a new outlook next month.

In comparison, the World Bank said the world could be edging towards a global recession in 2023 as central banks across the world simultaneously hike interest rates to combat persistent inflation.

The world's three largest economies – the United States, China, and the euro zone – have been slowing sharply, and even a "moderate hit to the global economy over the next year could tip it into recession,", it said.

Indermit Gill, the World Bank's chief economist, said on Thursday he was concerned about "generalized stagflation," a period of low growth and high inflation, in the global economy, noting the bank had pared back forecasts for a majority of countries.

In Asian trade, the yield on benchmark 10-year Treasury notes stood at 3.4509% compared with its U.S. close of 3.459% on Thursday.

The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 3.871% compared with a U.S. close of 3.873%.

Two-year Treasury yields hit a new 15-year high after mixed U.S retail sales and jobless claims data, which analysts said reinforced the case for aggressive Federal Reserve rate hikes.

Markets are currently fully pricing in a 75 basis point rate hike next week, economists said.

"Equities and other risk-sensitive markets struggle as it becomes clear that US inflation pressures are well embedded and that risks to the fed funds rate lie to the upside," ANZ economists said on Friday.

The dollar dropped 0.4% against the yen to 142.95 .

The euro was up 0.1% on the day at $1.0006, having lost 0.51% in a month, while the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up at 109.59.

U.S. crude ticked up 0.14% to $85.22 a barrel. Brent crude rose to $90.98 per barrel.

 

35 state plans on EV infrastructure get approval ahead of schedule

.

35 state plans on EV infrastructure get approval ahead of schedule

The Biden administration on Wednesday approved more than two-thirds of the electric vehicle charging infrastructure plans submitted by states, the District of Columbia and Puerto Rico ahead of schedule.

Thirty-five of the 52 EV infrastructure deployment plans submitted by states are now approved as part of the National Electric Vehicle Infrastructure Formula Program. NEVI was created and funded by the $1 trillion infrastructure law enacted in November.

The program makes $5 billion available over the next five years to help states achieve Biden’s goal of 500,000 EV charging stations across the U.S. by 2030.

States with plans now approved can gain access to more than $900 million in funding in 2022-23 to build EV chargers across roughly 53,000 miles of U.S. highway, according to the Federal Highway Administration.

States had until Aug. 1 to submit EV infrastructure deployment plans to the Joint Office of Energy and Transportation, created by the U.S. Energy and Transportation departments in December to assist with planning and implementation of a national EV charging network, including distributing funds to states.

— Audrey LaForest

What you need to know

EV charging issues deter renters, condo dwellers from electric purchases: A 2022 J.D. Power study found 34 percent of car shoppers lack access to home EV charging.

Tesla is sued by drivers over alleged false Autopilot, Full Self-Driving claims: Plaintiffs say Tesla wanted to ‘generate excitement’ about its vehicles, attract investments, boost sales, avoid bankruptcy.

Biden declares ‘Detroit is back’ as he touts EVs: The president said the Inflation Reduction Act will make new and used EVs more affordable.

Laura Chace

SHIFT PODCAST: Laura Chace touts technology’s role in thwarting traffic deaths (Episode 165)

 

The president and CEO of ITS America details the life-saving potential of V2X technology, explains why it’s taking so long to bring connected-car tech to the market, and urges a fresh mindset on the concept of infrastructure.

Listen to the Podcast >

 

Roundup

Magna tests self-driving delivery bot on Michigan roads as the supplier looks for new revenue streams in mobility.

Argo AI — backed by Ford and Volkswagen — will provide a set of self-driving technologies to companies for ride-hailing and delivery services.

China’s U.S. ambassador: Don’t cut China out of EV chain.

Mitsubishi Outlander PHEV loses eligibility for $7,500 federal EV incentive under new rules.

Mcity, the University of Michigan’s autonomous-vehicle test facility, was awarded $5 million from the National Science Foundation for virtual-reality expansion.

Brain food

Rivian added almost $3 billion to its market capitalization in a day, and all it took was a fairly bare-bones deal with a potential rival.

Last mile

Despite a bevy of recent problems in its home market of San Francisco, General Motors-backed Cruise said it will expand its robotaxi service to Phoenix and Austin, Texas.

 

Ethereum merge actually happened – and just in time to spare the Nvidia RTX 4090

Audio player loading…

The long anticipated “merge” event for the Ethereum blockchain is finally happening, and it’s a great day for any gamers out there looking to get the next-gen Nvidia Lovelace graphics cards (such as the Nvidia GeForce RTX 4090) that we’re anticipating in the next few weeks.

Ethereum is the world’s second-largest cryptocurrency after Bitcoin, and it has been an especially troublesome one for PC gamers. The cryptocoin is mined using something known as “proof-of-work”, which requires a computer to solve an intractable mathematical problem in order to generate a token.

That problem gets exponentially harder as time goes on by design, requiring ever more powerful computers to solve the problem. The solution that Ethereum miners came up with was taking the best graphics cards on the market over the past two years and using them in mining operations large and small.

Demand for Nvidia Ampere graphics cards especially was always going to be high after they launched in late 2020, but actually finding one in stock has been nearly impossible over the past two years as scalpers used bots to buy up stock to resell at inflated prices. 

Cryptominers, who were in this for the Ethereum, were apparently ok with buying up these graphics cards at inflated prices, which just fueled the graphics card shortage. Even the best cheap graphics cards weren’t spared, as five and six year old cards disappeared off store shelves to drive a cryptobubble.

All of this, meanwhile, has been turning math into carbon emissions at a frightening rate, and cryptomining now uses as much energy as a small industrialized country in Europe. This has prompted Ethereum’s move to Proof-of-Stake, which uses a different system for validating blockchain transactions that doesn’t require burning through algorithms for years on end.

That is the so-called merge that happened on September 15, and Ethereum is now off the Proof-of-Work model. Former Ethereum miners who dumped tens and hundreds of thousands of dollars into GPU mining operations are now looking for other proof-of-work coins to mine instead, including a hard-forking of the Ethereum blockchain into a totally different cryptocurrency called Ethereum Proof of Work, according to Coindesk (opens in new tab), or ETHW.

Meanwhile, Bitcoin – which primarily uses specialized ASICs to mine that cryptocurrency – will still hum along as usual, and has no intention of moving to the new proof-of-stake system.

Analysis: Will the merge save Nvidia’s Lovelace launch?

(Image credit: Nvidia)

The timing for the Ethereum merge couldn’t have come at a better time for PC gamers. In less than a week, we are expecting the announcement of the Nvidia RTX 4090 and possibly the Nvidia RTX 4080 as well, and these cards will still be ripe targets for cryptominers looking to up their hashrates.

But other than Ethereum and Bitcoin, there simply aren’t other coins that are likely to entice large scale miners, and the proof, as it were, has been in falling graphics card prices and increased inventories. If proof of work had a real future, these cards would still be purchased as they were before.

Now, things could change, obviously, and another NFT or decentralized finance project could bloom like tulips on a Dutch shore and drive the next bubble, but with our current economic environment, inflation, and an energy crisis, it’s not likely to happen in the near future. This takes a major buyer off the market for graphics cards for the next generation of graphics cards, so while these cards will sell out immediately, gamers stand a much better chance of getting one this time around. 

Americans Spent More on This One Thing in 2021 Than Food, Healthcare, Education, and Clothing…COMBINED

You want to know how bad of shape we are in as a country? You’re not going to believe this.

According to the most recent consumer spending data from the Bureau of Labor Statistics, we as Americans spent more money on paying taxes than we spent on food, or healthcare, or education, or clothing…COMBINED!

According to the report, we spent about 25% of our money on freaking taxes!

The report goes into detail to give a breakdown of how the average American spent their money on these items.

The average American household spent an average of $8,289.28 on food, another $5,451.61 on healthcare, $1,226.14 on education, and $1,754.39 on clothing totaling up to $16,721.42 for the average household. But when you compare that to the average amount of taxes paid, it’s just barely less than the average of $16,729.73.

This is the sad state that our country is in. We spend entirely too much in taxes. Our government just throws away money. We know this because Rand Paul releases reports every year detailing some of the ridiculous things that the government spends our tax money on.

They are on a “use it or lose it” sort of system it seems, and they wouldn’t dare dream of giving us our money back that they didn’t use.

I can still remember back in 2019 when I first reported on this sort of behavior.

Nearly $500 million was spent on new furniture which included a Wexford leather club chair for nearly $10,000.

A $12,000 foosball table, $50,000 worth of ski equipment, and $1.7 million on tubas and trombones (your guess is as good as mine on why they felt the need to spend that much money on instruments).

There was also nearly $5 million on spent on fine dining for lobster and crab.

As the year wrapped up, the federal agencies felt the need to celebrate by splurging on luxury food items. The Department of Defense spent $2.3 million on snow crab, Alaskan king crab, and crab legs and claws, plus another $2.3 million was spent on lobster tail. Additionally, agencies spent nearly $300,000 on steak (ribeye, top sirloin, and flank).

A stockpile of guns and ammunition costing $800 million, with purchases at regulatory agencies like the Environmental Protection Agency (EPA) and the Small Business Administration (SBA).

The government absolutely wastes our money. Our government is absolutely crooked and full of thieves who steal our money and live the high-life while we struggle to make ends meet.

 

Adobe to Buy Design Platform Figma in $20 Billion All-Cash Deal

 

Video Source: CNBC Television on YouTube

 

Adobe Systems Inc. (Nasdaq: ADBE) reported mixed fiscal 2022 third-quarter results. While earnings surpassed expectations, revenues met Wall Street forecasts. However, the company issued a weaker than anticipated Q4 revenue outlook. In the meanwhile, the software giant confirmed that it is acquiring design platform provider Figma in a cash and stock deal worth $20 billion. The stock of Adobe closed Thursday’s trading at $309.13, down $62.39 or 16.79% from its prior close.

The San Jose, California-based company reported third-quarter revenues of $4.43 billion, an increase of 12.4% from $3.94 billion in a similar quarter last year.

For the quarter that ended September 2, 2022, Adobe posted a net income of $1.14 billion, or $2.42 per share, down from $1.21 billion, or $2.52 a share, in the quarter that ended September 3, 2021.

Excluding stock-based and deferred compensation expenses and amortization of intangibles, among others, the company recorded a 3Q 2022 non-GAAP net income of $1.595 billion, or $3.40 per share, compared with $1.496 billion, or $3.11 a share, in 3Q 2021.

Analysts surveyed by Refinitiv had anticipated Adobe to report adjusted earnings of $3.33 per share on revenues of $4.43 billion.

Commenting on the quarterly results, Shantanu Narayen, chairman and CEO, of Adobe, said, “Fueled by our groundbreaking technology, track record of creating and leading categories and consistent execution, Adobe delivered another record quarter.” 

Segment wise,

  • Subscription revenues grew by 12.90% y-o-y to $4.129 billion.
  • Product revenues were $126 million, compared with $119 million last year.
  • Services and other revenues increased to $179 million, from $159 million.

Looking ahead, Adobe expects Q4 revenues of $4.52 billion. The company also projects 4Q 2022 GAAP and non-GAAP earnings of $2.44 and $3.50, respectively. Analysts surveyed by Thomson Reuters anticipate the company to post adjusted earnings of $3.45 per share on revenues of $4.58 billion.

In a separate announcement, the company revealed that it had inked an agreement to buy out collaborative design platform provider Figma for roughly $20 billion in stock and cash. The company acknowledged that it will have to arrange external financing for the acquisition, which is expected to close in 2023, subject to receiving relevant regulatory approvals.

Adobe also disclosed that under the takeover deal, Figma’s CEO and staff would be offered 6 million shares, which cannot be sold for four years from the time of deal closure.

Following the completion of the aforesaid deal, Dylan Field, co-founder and CEO of Figma, will continue to manage the company as usual. In addition, Field will report to David Wadhwani, President of Adobe’s digital media division.

Figma, established a decade ago, offers cloud-based design solutions. Notably, the software facilitates real-time collaboration between various teams. In certain areas, the firm competes with Adobe’s products (the XD program, for instance). Figma, which commands gross margins of 90%, claims to have 4 million users.

Interestingly, Figma was assessed to be worth $10 billion in June 2021, when it successfully received $200 million in funding. Adobe has pointed out that Figma’s addressable market will be $16.50 billion in three years.

Following the acquisition, Adobe intends to incorporate some of Figma’s solutions (video and photography-related features) in its products.

Adobe’s CEO has stated that Figma will add roughly $200 million in net ARR in 2022 and exceed “$400 million in total ARR exiting 2022.”

The mixed quarterly results, lower-than-anticipated Q4 revenue outlook, and Figma acquisition news are expected to keep the stock of Adobe range-bound with a slight bearish bias in the short term.

Technically, the stock has formed a negative gap in the price chart. This indicates that bears have the upper hand. Additionally, the stock is trading below its 50-day moving average while the Chaikin money flow indicator is showing a negative reading. Therefore, we anticipate the stock to remain in a downtrend in the days ahead.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.