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On February 13th, JPMorgan strategists recommended selling two-year U.S. Treasury bonds as a "tactical" move, arguing that the U.S. economic growth outlook remains robust, making it difficult for the Federal Reserve to cut interest rates significantly. The strategist team wrote in a report, "The economic fundamentals are strong, and once Kevin Warshs nomination is confirmed and he takes over as Fed chair, it will be very difficult for him to influence the decisions of the Federal Open Market Committee (FOMC)." The U.S. will release a key inflation report on Friday, which could provide clues to the Feds next move. If it shows easing price pressures, demand for short-term, policy-sensitive Treasuries may rise. This week, Treasury yields fluctuated, influenced by a sell-off in tech stocks and strong U.S. jobs data, sparking discussions about how Warsh, Trumps nominee for next Fed chair, will handle policy.February 13th - The overnight SHIBOR was 1.2710%, down 9.70 basis points; the 7-day SHIBOR was 1.4300%, down 8.80 basis points; the 14-day SHIBOR was 1.5110%, down 7.20 basis points; the 1-month SHIBOR was 1.5500%, unchanged from the previous trading day. The 3-month SHIBOR was 1.5790%, down 0.10 basis points.On February 13th, Futures News reported that regarding refining costs, crude oil prices rose due to geopolitical risk premiums, resulting in high refining costs. Gasoline wholesale prices rebounded before the holiday, leading to a corrective improvement in the gasoline refining spread. Diesel demand remained weak, with wholesale prices hovering at low levels, causing the diesel refining spread to continue declining. As of the crude oil closing price on February 11th: the domestic gasoline refining spread was 791.74 yuan/ton, a rebound of 63.23 yuan/ton compared to the end of January; the domestic diesel refining spread was 214.31 yuan/ton, a decrease of 51.54 yuan/ton compared to the end of January. The high crude oil costs are unlikely to diminish their suppressive effect on gasoline and diesel refining spreads in the future.Huawei Chinas official Weibo account announced that the Huawei China Partner Conference 2026 will be held from March 19th to 20th.February 13th - The National Hydrogen Energy Storage and Transportation Equipment Quality Inspection and Testing Center (Guangdong) has recently received formal approval from the State Administration for Market Regulation for its establishment. The Guangdong Provincial Special Equipment Inspection and Research Institute (Guangdong Provincial Special Equipment Accident Investigation Center), under the Guangdong Provincial Administration for Market Regulation, is responsible for its construction. The establishment of this center is an important measure by the State Administration for Market Regulation to promote the construction of a manufacturing powerhouse and a quality powerhouse, marking a new stage in the high-quality development of the hydrogen energy industry in South China. Located in Foshan, a hydrogen energy industry cluster, the center will provide crucial support for the safe development, technological innovation, and standard setting of the hydrogen energy industry in the Guangdong-Hong Kong-Macao Greater Bay Area and even nationwide.

Bank of England says blockchain roll-out across all markets too challenging

Skylar Shaw

Sep 29, 2022 14:17

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According to Bank of England Deputy Governor Jon Cunliffe, using the blockchain technology that underlies cryptoassets to provide rapid trading and settlement across all financial markets is not desired given the difficulties it would provide.


The same amount of resilience that regulators anticipate from the current system must be delivered by new trading and settlement systems, according to Cunliffe.


It was not apparent how blockchain-based platforms and current technology would interact, and instantaneous settlement necessitates that money and securities be available at the moment a deal is made.


"There is just not enough time to find or fix mistakes before they are carried out. In other words, we may not desire completely instantaneous trading and settlement in all markets, Cunliffe said at a conference organized by the trade group AFME.


Since stock and bond transactions are now resolved two business days after the transaction, banks are exposed to risk and may experience significant market fluctuations during this period, which they must cover with cash for margin and capital.


In order to reduce this to one working day, the United States has set a target of March 2024, putting pressure on Europe to follow suit.


For quick trading and trade settlement to reduce costs and risks, distributed ledger technology or blockchain is already being tested in experimental programs.