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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/feb/02/markets-us-jobs-bitcoin-uk-construction-deutsche-bank-business-live
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| Markets await US jobs report, as Bitcoin drops again - business live | Markets await US jobs report, as Bitcoin drops again - business live |
| (35 minutes later) | |
| Here’s Naeem Aslam of Think Markets on bitcoin’s decline: | |
| Bitcoin below 10K tells you only one message which is the upward momentum has died out and the odds are that we would continue to consolidate or grind lower. | |
| Connor Campbell of SpreadEx agrees that bitcoin is firmly on the back foot. | |
| The biggest story this Friday didn’t belong to the traditional markets, however, but Bitcoin. Opening Monday at $11700 – remember at its 2017 it hit $20000 – it is now struggling to keep its head above $8400, following a week that dealt blow after blow to the cryptocurrency. | |
| First there was the introduction of new regulations on anonymous trading accounts in South Korea, one of Bitcoin’s biggest markets, followed by reports that Facebook would be banning cryptocurrency adverts on its site. Now comes the news that Bitcoin’s pre-Christmas rise is being investigated by the US Commodity Futures Trading Commission for market manipulation, closing out a horrible few days for the previously ascendant product. | |
| Deutsche Bank has been fined $70m (£49m) by US regulators for attempting to rig a benchmark for interest-rate derivatives and other financial instruments. | |
| The bank agreed the settlement with the Commodity Futures Trading Commission after investigators found traders sought to manipulate rates from 2007 until May 2012. | |
| It is alleged the bank’s staff knew they were breaking the law, with one trader telling a broker that “a lot of people would actually do jail time” if practices were exposed. | |
| James McDonald, the CFTC’s director of enforcement, said: | |
| “There is no room in our markets for manipulation. We will continue to work hard to stamp it out, wherever we find it.” | |
| A spokesperson for Deutsche Bank said it had co-operated with the investigation and had “undertaken significant efforts to remediate benchmark-related activities”. | |
| Mike van Dulken of Accendo Markets reckons bitcoin is following a familiar pattern: | |
| The old Bubble chart suggests Bitcoin past fear, headed towards capitulation pic.twitter.com/Nw01pngFVi | |
| Miles Eakers, chief market analyst at Centtrip, says Bitcoin has made a “woeful” start to the new year. | Miles Eakers, chief market analyst at Centtrip, says Bitcoin has made a “woeful” start to the new year. |
| “The drop followed comments made by India’s Minister of Finance, Arun Jaitley, that the Indian government ‘does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system’. | “The drop followed comments made by India’s Minister of Finance, Arun Jaitley, that the Indian government ‘does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system’. |
| “We anticipate there will be more of such protectionist regulation. This is likely to put Bitcoin under more strain, causing it to drop to the $8000 a coin level.” | “We anticipate there will be more of such protectionist regulation. This is likely to put Bitcoin under more strain, causing it to drop to the $8000 a coin level.” |
| January was a cruel month for digital currency fans, and February isn’t turning out much better. | January was a cruel month for digital currency fans, and February isn’t turning out much better. |
| Bitcoin has fallen by 5% this morning to $8,521, its lowest level since late November. That means it’s lost more than half its value since peaking near $20,000 in the week before Christmas. | Bitcoin has fallen by 5% this morning to $8,521, its lowest level since late November. That means it’s lost more than half its value since peaking near $20,000 in the week before Christmas. |
| The selloff follows reports that American regulators are investigating whether last autumn’s price surge had been caused by market manipulation. | The selloff follows reports that American regulators are investigating whether last autumn’s price surge had been caused by market manipulation. |
| According to Bloomberg, the US Commodity Futures Trading Commission has been investigating the Bitfinex exchange and a cryptocurrency company called Tether. | According to Bloomberg, the US Commodity Futures Trading Commission has been investigating the Bitfinex exchange and a cryptocurrency company called Tether. |
| Fortune Magazine has a good explanation: | Fortune Magazine has a good explanation: |
| Specifically, regulators are curious about Bitfinex’s relationship with virtual currency Tether, which the exchange claims is pegged to the dollar. So in theory, one dollar equals one Tether. | Specifically, regulators are curious about Bitfinex’s relationship with virtual currency Tether, which the exchange claims is pegged to the dollar. So in theory, one dollar equals one Tether. |
| Tether has become a popular way for some investors to buy Bitcoin on exchanges. But the CFTC’s probe feeds into worries that Tether may not be actually backed by the dollar, as Bitfinex has provided little proof of the relationship, critics say. That hazy relationship has fueled concerns that Bitfinex may be simply creating Tether coins out of thin air and using Tether to buy Bitcoin—thereby propping up the price of the latter asset. | Tether has become a popular way for some investors to buy Bitcoin on exchanges. But the CFTC’s probe feeds into worries that Tether may not be actually backed by the dollar, as Bitfinex has provided little proof of the relationship, critics say. That hazy relationship has fueled concerns that Bitfinex may be simply creating Tether coins out of thin air and using Tether to buy Bitcoin—thereby propping up the price of the latter asset. |
| Digital currencies have also been hit by the news that Facebook is banning all adverts for cryptocurrencies. India’s finance minister added to their woes, by saying his country doesn’t accept cryptocurrencies as legal tender and pledging to fight their use for “illegitimate activities”. | Digital currencies have also been hit by the news that Facebook is banning all adverts for cryptocurrencies. India’s finance minister added to their woes, by saying his country doesn’t accept cryptocurrencies as legal tender and pledging to fight their use for “illegitimate activities”. |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| Today we discover how America’s labour market is faring, when January’s non-farm payroll is released. | Today we discover how America’s labour market is faring, when January’s non-farm payroll is released. |
| Economists predict that around 180,000 new jobs were created last month, up from December’s disappointing 148,000 (which might get revised today). That should leave the jobless rate at just 4.1%, which is a 17-year low, although it could possibly drop to just 4.0%. If so, expect some gleeful tweeting from President Trump...... | Economists predict that around 180,000 new jobs were created last month, up from December’s disappointing 148,000 (which might get revised today). That should leave the jobless rate at just 4.1%, which is a 17-year low, although it could possibly drop to just 4.0%. If so, expect some gleeful tweeting from President Trump...... |
| The key issue, though, is whether wage growth picked up. It could rise to 2.6% from last month’s 2.5%, which could fuel expectations of higher inflation in America. | The key issue, though, is whether wage growth picked up. It could rise to 2.6% from last month’s 2.5%, which could fuel expectations of higher inflation in America. |
| Andrew Hunter of Capital Economics says: | Andrew Hunter of Capital Economics says: |
| The tightening labour market is yet to put much upward pressure on wage growth, but with core inflation now starting to rebound we suspect that average hourly earnings will not be far behind. | The tightening labour market is yet to put much upward pressure on wage growth, but with core inflation now starting to rebound we suspect that average hourly earnings will not be far behind. |
| Signs of inflationary pressures have already been hitting the bond market in recent days, sending prices down and yields to their highest level in several years. So we could see more action there today. | Signs of inflationary pressures have already been hitting the bond market in recent days, sending prices down and yields to their highest level in several years. So we could see more action there today. |
| Meanwhile in the UK, we get a new health check on Britain’s building sector. Markit’s Construction PMI report is expected to show that growth slowed a little in January. | Meanwhile in the UK, we get a new health check on Britain’s building sector. Markit’s Construction PMI report is expected to show that growth slowed a little in January. |
| We’ve also got financial results from BT and Germany’s Deutsche Bank (more shortly....) | We’ve also got financial results from BT and Germany’s Deutsche Bank (more shortly....) |
| European stock markets are expected to open a little lower, led by Germany’s Dax. | European stock markets are expected to open a little lower, led by Germany’s Dax. |
| European Opening CallsFTSE100 is expected to open 5 points lower at 7,485DAX is expected to open 63 points lower at 12,940CAC40 is expected to open 9 points lower at 5,445 | European Opening CallsFTSE100 is expected to open 5 points lower at 7,485DAX is expected to open 63 points lower at 12,940CAC40 is expected to open 9 points lower at 5,445 |
| Here’s the agenda. | Here’s the agenda. |
| 9.30am GMT: UK Construction PMI for January | 9.30am GMT: UK Construction PMI for January |
| 1.30pm GMT: US non-farm payroll jobs report | 1.30pm GMT: US non-farm payroll jobs report |
| 3pm GMT: University of Michigan’s survey of US consumer sentiment | 3pm GMT: University of Michigan’s survey of US consumer sentiment |