Crypto-route, IPP, SEC probe into Musk

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By Geoffrey Smith – The world’s largest stablecoin,, falters as the cryptocurrency route deepens. The US producer price index for April is ready, the day after another worrying consumer inflation report. Shares need to extend the losses to a sixth day, and even solid streaming gains can’t help Walt disney (SNEEZE:). The SEC is examining Elon Musk’s late statements in its takeover bid on Twitter (NYSE :), and oil has fallen amid a general decline in risk assets. Here’s what you need to know in the financial markets on Thursday, May 12th.

1. Tether falters as the cryptocurrency route deepens

The world’s largest stable coin fell on Thursday to below its 1: 1 fictitious bond against the dollar as global cryptocurrency sales deepen.

Tether fell as low as 93.35 cents in early trading in Europe – more than 6.5% below par – but made up for most of its losses after Tether’s chief technology officer Paolo Ardoino said in a Twitter interview that the majority of Tether’s reserves are now held in risk-free US government bonds. He added that the Tether network responded to the request for redemption “without sweat.”

Demand for redemption is exploding as cryptocurrency investors head for the exit following the fall in assets linked to, a stable currency that was broadly backed by cryptocurrency and algorithmic trading. fell more than 12% to its lowest level since December 2020, while falling more than 22%. The only recipient of the move has been a stack coin that, like Tether, is backed by dollar reserves.

2. PPIs and unemployment benefits are expected

The last act of the US inflation drama is expected at 2.30pm with the release in April. Analysts expect producer prices to rise by only 0.5%, a slowdown from the 1.4% increase in March. This should bring the PPI down to 10.7% from 11.2%.

The figures come the day after the monthly consumer price inflation report showed a mixed picture with sharp rises in travel demand and further solid rises in food and housing prices, but with price reductions for the kind of goods – especially used cars – that were in such demand a year ago.

At the same time, the Ministry of Labor will also publish this week’s figures for unemployment applications. Initial Asks is expected to be just below the 200,000 level despite a surprisingly strong rise in the past week.

Stocks should expand their losses; Disney down despite streaming wins

US equities are set to extend their opening losses, unable to dispel fears of declining growth as central banks around the world act to combat runaway inflation (except in China, where declining growth is the result of a property crisis and clumsy management of pandemic).

At 13.15 it had fallen 207 points, or 0.7%, while it was a fall of 0.8% and 1.2%.

Among the stocks likely to receive particular attention is Walt Disney, which is expected to open down nearly 5% to its lowest level in two years, in response to below-expected results after Wednesday. And this is despite the fact that its Disney + streaming network – which is getting a lot of attention after Netflix’s (NASDAQ 🙂 subscriber decline in the first quarter – added nearly 8 million new subscribers, which is far above expectations.

Any disappointment in Mouse House should pale in comparison to Softbank (TYO :), which lost $ 13 billion in the just-concluded financial year due to massive write-downs of some of its holdings, such as people-carrier Didi Global (NYSE):), its Singaporean counterpart Grab (NASDAQ 🙂 and food delivery company DoorDash (NYSE:). Softbank shares fell 8% in Tokyo last night.

4. SEC investigates Musk’s Twitter allegations – WSJ

The Securities and Exchange Commission (SEC) is investigating Elon Musk’s late publication of its shareholding on Twitter, according to the Wall Street Journal, which quoted people familiar with the matter last Wednesday.

Musk revealed the extent of his purchases 10 days later than SEC rules allow. This allowed him to buy more shares without notifying others.

This news will hardly help ease Musk’s planned acquisition of the social media platform, given its already controversial political dimension. The complicated process is also the continuing decline in the value of Tesla (NASDAQ: 🙂 shares, which Musk had intended to pledge as part of its redemption loan. The Twitter stock is expected to open at $ 45.26, the lowest level since Musk made its bid to take the company privately to $ 54.20 per share.

5. Oil down, but the IEA warns that fuel markets remain tight

Crude oil prices fell on Wednesday, escaping the global fear of growth that weighed on risky assets around the world.

Around 1:20 p.m., the price of 1.6% was down to $ 104.02 a barrel, while the price fell 1.5% to $ 105.87 a barrel.

In a monthly report on the state of the oil market released earlier, the International Energy Agency kept its forecast for global supply and demand fairly stable, but warned that global fuel markets could come under further pressure in the coming months as Chinese demand rises from a series of new COVID lockdowns.

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