The late-night bankruptcy filing of Genesis Global Capital LLC last week marked the end of an era for crypto lenders that tried to bring the centuries-old business model of banking to the digital-currency space.
Many of the biggest names in crypto lending have failed in the past half-year, highlighting the shaky foundations, risky practices and lack of regulation in the sector. Now, millions of depositors who parked savings with such lenders are in limbo as they hope to get back some portion of their money in slow-moving bankruptcy proceedings.
Microsoft Faces the Highest Bar in Tech
Microsoft might be planning to do more with less. Investors expect it to do a lot more.
The software giant is heading into its second fiscal quarter earnings report on Tuesday facing a slumping PC market, a slowing corporate software market and even unclear demand for its once-hot cloud computing services.
Crypto Banks Borrow Billions From Home-Loan Banks to Plug Shortfalls
Two of the biggest banks to cryptocurrency companies are rushing to stem a flood of customer withdrawals by borrowing billions of dollars from Federal Home Loan Banks, the system originally designed to support mortgage lending in the 1930s.
Signature Bank tapped its local home-loan bank for nearly $10 billion in the fourth quarter, among the largest such borrowings by any bank since early 2020, according to securities filings. Silvergate Capital Corp., a competing lender that shifted its business toward crypto a decade ago, received at least $3.6 billion.
Tesla, Microsoft Are Headlining First Busy Earnings Week of 2023
Microsoft Corp., Tesla Inc. and Johnson & Johnson headline the first busy earnings week of 2023 as investors search for insight into the global economy in the midst of growing concern over a possible recession.
Other companies set to issue their latest quarterly reports include the telecom companies AT&T Inc. and Verizon Communications Inc.; Visa Inc. and American Express Co.; and airlines including Southwest Airlines Co.
How Apple Has So Far Avoided Layoffs: Lean Hiring, No Free Lunches
Layoffs have hit the tech industry hard-except at Apple Inc.
The world's largest company has so far avoided the job cuts rippling through peers including Microsoft Corp., Google, Meta Platforms Inc. and Amazon.com Inc.
Fed Sets Course for Milder Interest-Rate Rise in February
Federal Reserve officials are preparing to slow interest-rate increases for the second straight meeting and debate how much higher to raise them after gaining more confidence inflation will ease further this year.
They could begin deliberating at the Jan. 31-Feb. 1 gathering how much more softening in labor demand, spending and inflation they would need to see before pausing rate rises this spring.
Debt Ceiling Looms Over Capitol as Congress Returns to Work
WASHINGTON-A deeply divided Congress will return to work this week, pushing ahead with partisan priorities in the Senate and House while also gearing up for a fight over how lawmakers will address raising the debt ceiling before a potential default later this year.
The Senate, narrowly controlled by Democrats as it opens its new session, is expected to focus primarily on confirming President Biden's executive and judicial nominees in the coming weeks. Immigration is emerging as one area of possible compromise after a group led by Sen. Kyrsten Sinema (I., Ariz.) and Sen. John Cornyn (R., Texas) co-hosted a bipartisan delegation of senators to the Texas and Arizona borders during the January recess.
China's Reopening Complicates Global Fight Against Inflation
HONG KONG-Just when signs point to easing inflation worldwide, China's economic reopening after years of strict pandemic controls is raising questions about whether it could spur costs higher again.
Many economists aren't too worried, but say the initial uncertainty will complicate matters for the Federal Reserve and other central banks that have been raising interest rates to fight inflation by slowing economic growth.
U.S. Treasurys at 'critical point': Stocks, bonds correlation shifts as fixed-income market flashes recession warning
Bonds and stocks may be getting back to their usual relationship, a plus for investors with a traditional mix of assets in their portfolios amid fears that the U.S. faces a recession this year.
"The bottom line is the correlation now has shifted back to a more traditional one, where stocks and bonds do not necessarily move together, " said Kathy Jones, chief fixed-income strategist at Charles Schwab, in a phone interview. "It is good for the 60-40 portfolio because the point of that is to have diversification."
Janet Yellen Dismisses Minting $1 Trillion Coin to Avoid Default
LUSAKA, Zambia-Treasury Secretary Janet Yellen said the Federal Reserve likely wouldn't accept a $1 trillion platinum coin if the Biden administration tried to mint one to avoid breaching the debt limit, dismissing an idea that has been floated to circumvent Congress on the issue.
Some Biden administration officials and Democrats on Capitol Hill have discussed the possibility that the Treasury could use an obscure law authorizing platinum coins in the event of a potential default. Under the proposed scheme, the Treasury would mint a $1 trillion coin and deposit it at the Fed, and then draw the money to pay the country's bills.
Investors Plow Into Renewables, but Projects Aren't Getting Built
Even as developers plan an unprecedented number of grid-scale wind and solar installations, project construction is plummeting across the U.S.
Despite billions of dollars in federal tax credits up for grabs and investors eager to fund clean energy projects, the pace of development has ground to a crawl and many renewables plans face an uncertain path to completion. Supply-chain snags, long waits to connect to the grid and challenging regulatory and political environments across the country are contributing to the slowdown, analysts and companies say.
The Offshore Oil Business Is Gushing Again
The $1.2 billion Deepwater Titan sat idle in a Singaporean shipyard for five years, looking like an abandoned cruise ship with a derrick attached to its deck. Soon this vessel that spans nearly three football fields will depart for the deepest waters of the Gulf of Mexico, where its crew will be able to drill 8 miles below the seafloor in search of oil for Chevron Corp.
The hunt for offshore petroleum is on again, fueled by a surge in global demand for energy, supply disruptions triggered by the war in Ukraine and crude prices that remain above prepandemic levels. Other giant rigs such as Titan that were dormant near the end of the last decade are also now operating in deep waters along the coast of Brazil, while rigs lacking propulsion are mining shallower waters in the Middle East after hitching rides to that part of the world on tugboats.
The Ultimate Contrarian Indicator to Start the Year
The mood among the world's financial elite as they gathered in the mountain resort of Davos, Switzerland, is typically a useful investment indicator: However they feel, do the opposite.
Not so much this year. The bankers, executives and politicians were more optimistic, but only relative to how pessimistic they were feeling a few months ago. Just like the markets, they have had a bit of a rally, but are still down in the dumps compared with this time a year ago. They are also puzzled by the same uncertainties that trouble investors.
String of Classified Document Discoveries Seen Tarnishing White House
WASHINGTON-Democrats expressed concern Sunday that multiple discoveries of classified documents at President Biden's private home and a former office will overshadow his agenda and open the door to more Republican-led investigations in the House as lawmakers return to Washington.
The Justice Department searched Mr. Biden's home in Wilmington, Del., for more than 12 hours Friday, an examination that caused authorities to take possession of additional items with classified markings and some related materials, according to a statement released late Saturday by Mr. Biden's personal attorney Bob Bauer.
Jeff Zients to Be Named White House Chief of Staff
WASHINGTON-President Biden is planning to name Jeff Zients, an investor and former Obama administration official who led the White House's Covid-19 response, to be his next chief of staff, according to people familiar with the decision.
Ron Klain, Mr. Biden's current chief of staff, is expected to step down in the coming weeks after more than two years on the job. The Washington Post earlier reported that Mr. Zients was expected to replace him. Mr. Zients didn't respond to requests for comment, and the White House declined to comment.
Ukraine War Lands Europe's Leaders in a Battle of Wills
Europe is winning its energy war with Russia. The region's economy and politics are proving more stable than its leaders feared earlier in their confrontation with Moscow. Now the question facing them is whether they want Ukraine to win the shooting war.
The rift between Germany and many of its North Atlantic Treaty Organization allies, including the U.S., over whether to supply Kyiv with German-made Leopard 2 tanks reflects continuing differences among Western leaders over the stakes and risks of Russia's war on Ukraine.
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Earnings:
None scheduled
Economic Calendar (ET):
0830 Dec New Housing Price Index
Stocks to Watch:
CryptoBlox To Acquire Digital Mining Infrastructure Company; Entered Into 'Arm's Length' Definitive Shr Purchase Agreement, Dated Jan 17, With CryptoTherm and 1289048 B.C. Ltd. to Acquire 100% of the Outstanding Shrs of CryptoTherm Manufacturing
Fission Uranium Hired Jeff Pryznyk as Environmental Manager; Pryznyk Replaces Aaron MacDonell, Who Resigned to Pursue Other Opportunities
(MORE TO FOLLOW) Dow Jones Newswires
01-23-23 0621ET
