Global Central Banks All Hiking - Apple (NASDAQ:AAPL), Jabil (NYSE:JBL)

Good Morning Everyone!

FTX executives are turning on each other. A filing yesterday revealed that days before the bankruptcy filing co-CEO Ryan Salame told authorities that SBF may have committed fraud by sending FTX customer funds to his hedge fund Alameda.

Prices as of 4 pm EST, 12/14/22; % YTD

MARKET UPDATE

European Central Bank

Raised its key interest rate by 0.5%
Highest rate since 2009

Bank of England

Raised its key interest rate by 0.5%

The U.S. Fed has more work to do to fight inflation

Yesterday, as expected, Jay Powell raised the Fed Funds rate by 0.5%
The range is now 4.25% to 4.5%
The target rate is 5% in 2023, so one hike of 50 or two hikes of 25 expected in 2023
The target rate is 4.1% in 2024
Higher for longer interest rates

China

Weaker than expected economic data
Industrial production +2.2% vs. street at 3.5%
Retail sales -5.9% vs. street -4.0%
Property investment -9.8% vs. street -9.2%
China injected 650 billion Yuan in the banking, more than 500B expected

Crude 76.20 -1.4%

Partial restart of the Keystone pipeline
Lack of timeline for full restart of the southern leg of Keystone

Tesla (NASDAQ:TSLA)

Elon Musk sold another $3.58 billion shares
Brings his total sale to $40 billion to fund his Twitter purchase

Apple (NASDAQ:AAPL)

Foxconn is easing most COVID restrictions at its plant in Zhengzhou

TikTok

Senate passed legislation that would ban federal employees from using TikTok on gov’t devices
Legislation still needs to pass the House

Earnings

Lennar (NYSE:LEN) -3%
Jabil (NYSE:JBL)

CRYPTO UPDATE

MetaMask x PayPal (NASDAQ:PYPL)

MetaMask added PayPal integration to wallet
US users will be able to purchase Ethereum from app
Should reduce onboarding friction
PayPal users have been able to buy/sell crypto since 2020

US bill targets self-custody wallets

Financial Crimes Enforcement Network (FinCEN)
Would expand KYC (Know Your Customer) requirements
Crypto wallet providers, miners, validators, others would be treated as “money service businesses”
Would also require anti-money laundering programs
Prohibits use of digital asset mixers (like Tornado Cash)

CZ says “99% of people” will lose crypto in self-custody