Bitcoin has sailed past $16,000, its meteoric rise unabated, putting on more than +26% growth in the last 24 hours alone. Over the last 12 months Bitcoin has appreciated more than +2,000%. The volatility of the currency means increasing issues in valuing it at the point of exchange. Economists continue to warn Bitcoin is a toxic, speculative bubble.
“I’ve never seen a chart of a security where the price really has a vertical pattern to it. And bitcoin is the most vertical of any pattern I’ve ever seen in my career,” ex Morgan Stanley analyst Stephen Roach told CNBC.
Considering the pressure on a EU-UK Brexit deal it was an unusually light news day helping sterling re-gain some of its lost value against the dollar. At near 4pm the pound was +0.18% higher at 1.3415 and +0.32% higher against the euro at 1.138. Against the yen the pound rose almost +0.60%.
However there’s some warning noises – from Citi, for example – that even if political EU-UK progress is made this week or next, a drag-anchor on sterling remains very much present given medium term UK political risk: the on-going in-fighting of the Conservative Cabinet plus the outside possibility of a Corbyn administration. That is in addition to the likliehood of strong eurozone growth, putting more pressure on the pound-to-euro exchange rate.
- UK FTSE 100 7,320.75 -0.37%
- Dow 24,183.28 +0.18%
- S&P 500 2,635.15 +0.22%
- Nasdaq 6,819.46 +0.64%
- Nikkei 225 22,498.03 +1.45%
- DAX 13,034.62 +0.28%
- CAC 40 5,381.21 +0.13%
- Gold 1,255.80 -0.81%
- Oil WTI 56.44 +0.86%
GE announces 12,000 jobs to go
Earlier General Electric announced it was slashing 12,000 jobs across its global workforce, in essence sacking close to 20% of its employees. It’s thought more than 1,000 UK jobs could be on the cutting block. GE says it hopes to save $1bn in costs in the next year as it finds ways to manage lower fossil fuel power demand. GE shares has climbed almost +2% to $18.01 at 4.30pm London time.
GE described the decision as “painful but necessary”. The company says it's responding “to the disruption in the power market, which is driving significantly lower volumes in products and services“. Russell Stokes, CEO, said "GE Power will remain a work in progress in 2018. We expect market challenges to continue, but this plan will position us for 2019 and beyond.”