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On October 28th, Kevin Thozet, a member of the investment committee at French asset management firm Carmignac, stated in a report that the US inflation rate remains significantly higher than the Federal Reserves 2% target, and from an economic data perspective alone, another rate hike by the Fed would not be unreasonable. Therefore, he believes the reasons why the Fed might keep rates unchanged on Wednesday need to be examined from other angles. Thozet stated, "Financial conditions have tightened, the stock market is experiencing volatility, and pressure is beginning to appear on the fringes of the credit market." These factors provide justification for the Fed to pause rate hikes, but this does not necessarily mean that the Fed will shift to a more accommodative monetary policy stance.On October 28, US President Donald Trump stated that a meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky would be arranged "soon." Trump told reporters that day, "Were making a lot of progress on the Russia-Ukraine issue. A meeting will be arranged very soon, and I think we can make a lot of progress."On October 28th, Citigroup released a research report stating that ASMPT (00522.HK)s third-quarter results were largely in line with expectations. Driven by advanced packaging, mainstream SEMI business, and SMT, revenue reached HK$5.247 billion, a 49% year-on-year increase and a 6% quarter-on-quarter increase, meeting the previous guidance of US$630 million to US$690 million. Net profit was HK$533 million, lower than the market expectation of HK$578 million, but still in line with Citigroups estimates. Management expects fourth-quarter revenue to be between US$670 million and US$730 million, implying a midpoint of approximately 38% year-on-year growth, about 9% higher than market expectations, and the lower limit is also higher than market expectations. Citigroup reiterated its "Buy" rating on ASMPT with a target price of HK$250, optimistic about the demand for advanced packaging supported by order trends.UBS: Investor sentiment remains cautious amid heightened macroeconomic volatility, geopolitical tensions, and political uncertainty (including in the United States).UBS Group: Plans to complete a $3 billion share buyback program before announcing fourth-quarter results; it had already repurchased $1.8 billion worth of shares in the third quarter.

Bitcoin Lightning Network-Based Strike Can Rival Visa – MS

Cory Russell

Apr 25, 2022 09:49

Morgan Stanley is optimistic about the bitcoin Lightning Network's potential as a consumer payment option.


They believe Strike, a Lightning Network-based payment technology, can compete with or even outperform Visa in the digital payments market.


Strike has partnered with Shopify and NCR, the world's leading supplier of point-of-sale payment solutions.


Morgan Stanley published a new analysis on the Lightning Network, bitcoin's Layer 2 fast payment system, and its potential to enable a "long-term move towards payments and settlements utilizing digital and cryptocurrencies rather than fiat currencies like the US dollar."


Morgan Stanley's positive analysis on the Lightning Network's potential for broader adoption comes after Strike, a US-based digital payments platform built on top of bitcoin's Lightning Network, announced earlier this month a new integration agreement with e-commerce giant Shopify.


Customers who paid in bitcoin will now be able to receive payments in US dollars from US Shopify businesses. Strike has announced collaborations with NCR, the world's leading supplier of point-of-sale (PoS) payment services.

Morgan Stanley Believes That Lightning Network Will Be Able to Compete With Visa

Morgan Stanley outlined why it believes Strike, a Lightning Network-based digital payment network, can compete with or perhaps exceed Visa in its recent study.


Morgan Stanley observes that "in essence, Strike is directly competing with Visa Direct, which provides real-time settlement," adding that "the primary distinction for merchants will be paid a significantly lower transaction cost."


"The customer advantage is that they may, if they choose, host their bitcoin on a private, secure network, enabling an element of secrecy connected with their transaction," the bank says.


Morgan Stanley emphasizes the importance of Strike's cooperation with NCR. "NCR software is used by one in every six PoS devices worldwide," the bank says, "so this news is important even if just a tiny percentage of retail businesses opt to add crypto capabilities."

Cons of Making Bitcoin Payments

The Morgan Stanley analysis points out some of the disadvantages of utilizing a bitcoin-based payment system, such as the cryptocurrency's underlying volatility on a day-to-day basis, which makes forecasting future buying power problematic.


Meanwhile, Morgan Stanley says that existing tax regulations, which require users to pay capital gains taxes on cryptocurrencies they sell, are a barrier to greater acceptance of bitcoin as a widely used means of exchange.


The bank, on the other hand, mentions the Virtual Currency Tax Fairness Act, which has been introduced in the US Congress. If passed, the law would exclude personal bitcoin transactions from taxation as long as the profits are less than $200.


Morgan Stanley, on the other hand, cautions that this plan may meet criticism, particularly from anti-crypto members of Congress, since it serves to establish bitcoin (and other cryptocurrencies) as credible alternatives to the US currency.


The Morgan Stanley analysis "suggests we are at the beginning of an age when more and more people may opt to pay for items using Bitcoin and cryptocurrencies over time," according to Alex Gladstein, who summarized it on Twitter.

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