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Bitcoin Price Analysis: Pressured After 26429 Failure – 10 September 2023

Bitcoin Price Analysis:  Pressured After 26429 Failure – 10 September 2023

Bitcoin (BTC/USD) extended recent weakness early in the Asian session as the pair was pressured after peaking around the 26460.41 level, a multi-session high representing a failure to sustain a break above the 26429 area that serves as downside price objective related to selling pressure around the 27576.99 area.   Upside activity was later capped below the 25953.46 area, representing the 38.2% retracement of the depreciating range from 26460.41 to 25640.10.  Bears expect another test of the 25128.94 area, a downside price objective linked to downward pressure around the 30421.29 level, following a recent low around the 25234.76 area.   A sustained break below the 25462.40 level will elevate bearish pressure as it is a downward price objective corresponding to significant recent selling pressure around the 28184.89 area.

Stops are cited below the 24197.68 level, a downside price objective related to selling pressure around the 30222 area.   Additional price objectives below the market include the 24511, 24339, 23164, 22949, 21496, and 20702 areas.  Technical support and potential buying pressure in appreciating ranges from the 15460 and 19568.52 levels include the 23661, 22793, and 21725 levels.  Traders are observing that the 50-bar MA (4-hourly) is bearishly indicating below the 100-bar MA (4-hourly) and below the 200-bar MA (4-hourly).  Also, the 50-bar MA (hourly) is bearishly indicating below the 200-bar MA (hourly) and above the 100-bar MA (hourly).

Price activity is nearest the 50-bar MA (4-hourly) at 25944.71 and the 100-bar MA (Hourly) at 25841.33.

Technical Support is expected around 24440.41/ 23270.10/ 22769.39 with Stops expected below.

Technical Resistance is expected around 31986.16/ 32989.19/ 34658.69 with Stops expected above.  

On 4-Hourly chart, SlowK is Bearishly below SlowD while MACD is Bullishly above MACDAverage.

On 60-minute chart, SlowK is Bullishly above SlowD while MACD is Bullishly above MACDAverage.                                   

Sally Ho’s Technical Analysis
View Yesterday’s Trading Analysis

Disclaimer: Sally Ho’s Technical Analysis is provided by a third party, and for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.

#Bitcoin #Price #Analysis #Pressured #Failure #September

Bond Traders Brace for Risk Inflation Will Fuel Rate-Hike Bets

Bond traders have been ratcheting up bets that the Federal Reserve isn’t done with its interest-rate hikes just yet. Next week will help determine if they’re right.

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(Bloomberg) — Bond traders have been ratcheting up bets that the Federal Reserve isn’t done with its interest-rate hikes just yet. Next week will help determine if they’re right. 

The monthly consumer-price index report on Wednesday will provide the latest insight into how much further the central bank may need to go to pull inflation back toward its target. With the economy defying gloomy forecasts and energy prices rising, economists are forecasting the biggest monthly jump in 14 months — and the swaps market is pricing in risk that it will come in even higher than expected. 

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The figures may deliver a fresh jolt to the Treasury market, which has been whipsawed as the surprisingly strong pace of growth leaves investors bracing for monetary policy to remain tight for longer than had been anticipated. 

While signs of a cooling labor market stoked optimism that the Fed may be done, futures traders see a roughly 50% chance that it will raise rates one more time in November after holding steady at the Sept. 19-20 meeting. That’s left Treasuries on pace for a third straight annual loss as yields hover near the highest levels since before the 2008 financial crisis. 

“Next week’s CPI data could provide a little bit more color” on the likely path for the Fed, said Leslie Falconio, head of taxable fixed-income strategy at UBS Global Wealth Management. “It’s not our expectation that the Fed moves in September. But while as of right now we say they don’t move in November either — you really have to give it a 50/50 chance.” 

The pace of inflation has remained stubbornly above the Fed’s 2% target even though it has come down sharply from last year’s four-decade high. 

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The growth rate of the consumer price index is expected to have accelerated to 3.6% in August from a year earlier even as the core measure — which strips out food and energy costs — eased back to 4.3%, according to the median estimate of economists surveyed by Bloomberg. But on a month-to-month basis, the overall CPI is forecast to advance 0.6%, the biggest jump since inflation peaked in June 2022.

Fed officials have repeatedly emphasized that they remain mindful of the upside risks to inflation and may need to keep interest rates elevated even once they stop increasing them. 

New York Fed President John Williams on Thursday said that monetary policy is “in a good place,” but that officials will need to parse through data to decide on how to proceed. 

The Fed bumped its benchmark rate up in July to a range of 5.25% to 5.5%, the highest level in 22 years, after holding steady in June. Policymakers have not ruled out the possibility of another rate increase this year and Fed Chair Jerome Powell has underscored that their path will depend on incoming economic data.

What Bloomberg Economics Says…

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“We expect monthly headline CPI to accelerate to 0.6% (vs. 0.2% in July) on higher gasoline prices, with the year-over-year reading at 3.6% (vs. 3.2%). The market may conclude the Fed will have to hike more, but we think that’s the wrong takeaway.”

—Anna Wong, chief US economist

For the full note, click here

That has left the bond market on edge as each key piece of data arrives and traders seek to determine if the Fed’s rate has already peaked. There should be no comments next week by Fed officials, who normally stay quiet in the lead-up to their meetings.

The market is also trying to gauge how much the Fed may be able to ease policy next year, given the economy’s strength and lingering inflation pressures. Futures are priced for the central bank’s benchmark to end 2024 around 4.4%, well above the roughly 2.5% rate that’s seen as neutral to economic growth. 

The bond market has also contended with a flood of new debt sales to cover the swelling federal budget deficit, contributing to the upward pressure on long-term yields. And investors have been pulling back from long-dated bonds, wagering that their yields will move back above short-term ones after the Fed shifts toward easing monetary policy again. 

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The Treasury market is “now in the realm of peak US yields,” said William Marshall, head of US rates strategy at BNP Paribas. Still, any forthcoming rally in Treasuries will “not see a significant drop in longer-dated yields,” supporting a steeper yield curve into 2024, he said.

What to Watch

  • Economic data calendar
    • Sept. 11: New York Fed 1-year inflation expectations
    • Sept. 12: NFIB Small Business Optimism
    • Sept. 13: MBA mortgage applications; consumer price index; federal budget statement
    • Sept. 14: Retail sales; producer price index; initial jobless claims; business inventories
    • Sept. 15: Import/export prices; Empire manufacturing; industrial production; University of Michigan sentiment
  • Federal Reserve calendar: Central bank observes communication blackout before Sept. 19-20 policy meeting
  • Auction calendar:
    • Sept. 11: 13- and 26-week bills; 3-year notes
    • Sept. 12: 42-day cash management bills; 10-year note reopening
    • Sept. 13: 17-week bills; 30-year bonds reopening
    • Sept. 14: 4- and 8-week bills

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#Bond #Traders #Brace #Risk #Inflation #Fuel #RateHike #Bets

Texas Bitcoin Miners Forced To Stop Operations Due To Energy Crunch

Bitcoin miners in Texas are facing a temporary setback as they power down their operations in response to the state’s ongoing energy crisis. The scorching heatwave that gripped the Lone Star State forced the Electric Reliability Council of Texas (ERCOT) to take drastic measures to ensure uninterrupted power supply to its 25 million customers, accounting for a staggering 90% of the state’s grid load.

To alleviate the energy strain, ERCOT invoked emergency procedures, compelling specific power consumers, including Bitcoin miners, to curtail their energy consumption. The relentless heatwave pushed several mining outfits to temporarily suspend their operations. 

Riot Platforms and Marathon Digital are among those who recently announced a pause in their mining activities. Marathon Digital reported a 9% drop in Bitcoin production, reflecting the challenges faced by miners during this energy crisis.

Lee Bratcher, President of the Texas Blockchain Council, shed light on the situation, stating:

“We have consistently been seeing 90% plus curtailment of Bitcoin mining each day this week that power conditions tightened.”

Bratcher emphasized that only essential power for office buildings and backup systems remained unaffected.

Financial Ramifications For Bitcoin Miners

Analysts are closely monitoring the impact of the energy crisis on Bitcoin miners, and the results are concerning. JPMorgan Chase recently reported a 21% decline in the market capitalization of the largest crypto mining firms in the United States during the month of August. Riot, one of the prominent players in the industry, suffered the most significant setback, with a 39% drop in market capitalization over the same period.

Bitcoin market cap at $503 billion on the weekly chart:

While Riot’s stock has seen gains this year, it has mirrored Bitcoin’s tumultuous journey, witnessing a substantial drop in value since its peak in 2021 when the mining firm’s shares were valued at $71.33 each. Today, the stock trades at a fraction of that, standing at just $11.10.

Insights And Implications

The temporary shutdown of Bitcoin mining operations in Texas highlights the vulnerabilities of cryptocurrency mining in regions susceptible to extreme weather conditions. The energy crisis underscores the importance of developing sustainable energy solutions for the cryptocurrency industry, which has faced criticism for its carbon footprint in recent years.

As Bitcoin miners grapple with the energy crisis in Texas, it raises questions about the long-term viability of mining operations in areas prone to climate-related challenges. Additionally, the financial repercussions observed among mining firms may prompt industry leaders to reconsider their strategies and seek more energy-efficient alternatives.

The temporary halt of Bitcoin mining operations in Texas serves as a stark reminder of the interplay between cryptocurrency and the broader energy landscape. 

Featured image from Mister Sparky

#Texas #Bitcoin #Miners #Forced #Stop #Operations #Due #Energy #Crunch

SoftBank’s $50bn Arm IPO more than five times oversubscribed, bankers say

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SoftBank’s $50bn flotation of Arm is more than five times oversubscribed, according to bankers pitching investors on the biggest initial public offering in nearly two years, as the UK-based chip designer forecast accelerating revenue growth boosted by the artificial intelligence boom.

Despite investor concerns about a drop in profits in Arm’s most recent quarter amid a smartphone industry slowdown and the company’s exposure to multiple risks in China, advisers working on the Nasdaq listing said there was “little price sensitivity among investors”, many of whom would be forced to buy because of Arm’s inclusion in indices.

Brokers from the 28-strong army of banks selling Arm’s IPO gathered more than 100 of the world’s biggest fund managers at a New York hotel this week to convince them that this was their chance to be big winners in AI.

“AI is going to be everywhere and it all runs on Arm,” Rene Haas, the SoftBank-owned chip designer’s chief executive, told prospective investors in a pitch video seen by the Financial Times.

Arm executives projected revenue growth would accelerate after a flat year in 2023, as it increased the royalties it is paid by smartphone makers, said people who attended the roadshow. Arm indicated it could achieve revenue growth of at least 20 per cent in the financial year ending March 2025, ahead of analysts’ expectations, these people said.

“You expect the numbers to be presented in the rosiest terms, and so they were,” said one fund manager.

Column chart of Revenues plateau and profits fall as smartphone market declines showing Arm’s growth slows ahead of IPO

Earlier this week, Arm set an initial price range of $47-$51 per share, raising up to $4.9bn for its parent SoftBank and valuing the Cambridge-based company at up to $52bn.

Masayoshi Son, SoftBank’s founder, paid $32bn to buy Arm in 2016. According to people familiar with his thinking, Arm’s valuation when it starts trading in New York next week may be less important than the listing itself.

Limiting the initial listing to the sale of a small stake is not uncommon in tech IPOs. But analysts say SoftBank’s plan to hold on to most of its shares in Arm and use them to borrow money could restrict the supply over the longer term to increase its value.

Arm’s core market of smartphone chips has stagnated this year but it is hoping for growth from AI and data centre customers, despite playing only a peripheral role in the technology required to build the kinds of large language models that power ChatGPT and other generative AI systems.

In a video circulated to potential investors during the roadshow, which began on Tuesday, Haas pointed to an expected boost from the AI wave that has propelled chipmaker Nvidia to a $1.2tn valuation this year.

“Our opportunity is boundless, because everything today is a computer and with the advent of the AI era, the world’s computing needs are insatiable,” the Arm chief said as he summed up his pitch.

Jensen Huang, Nvidia’s founder and chief executive, also starred in the video. He declared Nvidia’s new Grace Hopper AI “super chip” would “not be possible if not for the nature of the Arm architecture, the incredible performance of the Arm CPU and the IP business model”.

Jensen Huang, Nvidia CEO, holding one of its chips
Jensen Huang, Nvidia chief executive, appeared in Arm’s roadshow video © AFP via Getty Images

However, some fund managers on the receiving end of the Arm charm offensive said the sheer number of bankers involved in the IPO was itself a red flag.

“The fact that everyone is coming to us with their Arm pitch feels like something that happens at the end of a cycle when it is difficult to sell a story,” said an asset manager at one global technology fund. “It’s not good optics if this is supposed to be the start of the AI cycle.”

A few weeks ago, bankers were privately pushing the idea that SoftBank would be selling 10 per cent of Arm at a level that valued the whole company at as much as $70bn. Some analysts countered it was hard to argue Arm was worth more than $40bn.

Then last month, in a surprise deal, SoftBank bought a 25 per cent stake in Arm from its own Vision Fund in a transaction which valued Arm at $64bn.

David Gibson, at MST Financial, said the huge platoon of bankers on the IPO “have done a good job in stating the high $60bn-$70bn valuation initially and then reducing it now to $50bn or so, and hence creating the perception the IPO has value and investors should participate”.

One person involved in the preparations for the IPO said Son was keen to push ahead with the listing but he also had an equally strong interest in making sure his exposure to Arm was not reduced.

As well as retaining more than 90 per cent of a company that Son believes will underpin the future of computing, SoftBank will also be able to lean on the newly listed company as a big source of financing.

In its recent “defensive” mode, SoftBank sold down its stake in the Chinese ecommerce giant Alibaba — the company in which Son was a ground-floor investor and whose expansion from minnow to whale has fuelled his reputation as a tech visionary.

In the eyes of many SoftBank shareholders, the company was able to use Alibaba shares and its ability to borrow against them, as a readily available ATM.

“SoftBank has been wanting to monetise Arm for years,” said Kirk Boodry, an analyst at Astris Advisory. “Arm is a quality asset, with punchy revenues and good margins. They can hold on to and still have the cash to use in other areas — in that respect it’s a perfect replacement for Alibaba.”

Additional reporting by Kana Inagaki in Tokyo, Nicholas Megaw, Eric Platt and Madison Darbyshire in New York, Harriet Agnew in London and Richard Waters in San Francisco

#SoftBanks #50bn #Arm #IPO #times #oversubscribed #bankers

India vs Pakistan Free Live Streaming, Asia Cup 2023 Super 4: When and where to watch IND VS PAK match live on TV, Mobile Apps

India vs Pakistan Free Live Streaming, Asia Cup 2023 Super 4: As the Super 4 for the ongoing Asia Cup kicks off, fans are anxiously awaiting the ultimate clash between arch-rivals India and Pakistan that will be played this Sunday, September 10, at the R. Premadasa International Cricket Stadium in Colombo. The match is set to start at 3:00 PM IST. 

Pakistan has already won its first match of the Super 4 against Bangladesh on Wednesday, September 6. They easily chased down a target of 194 in 39.3 overs, winning the match by 7 wickets. Babar Azam’s men are in stellar form, showing their prowess with both bat and ball during the whole tournament.

Team India, on the other hand, are in a shaky situation. The collapse of the top-order during the first match against Pakistan and the comparatively poor bowling performance in the match against Nepal have created concerns regarding the overall performance of the squad.

However, the middle-order bolstered by the keeper-batsman Ishan Kishan and vice captain Hardik Pandya during the game against Pakistan, and the top-order performances by the talented Shubman Gill and skipper Rohit Sharma against Nepal, have given hopes that India can put up a great fight against their arch-rivals.

The group stage match between India and Pakistan was washed off due to the rain, leaving fans disappointed. However, the officials have mentioned that the weather conditions in Colombo will improve and the rain will not hamper the proceedings during the business end of the tournament. 

India vs Pakistan Free Live Streaming, Asia Cup 2023 Super 4: When will IND vs PAK will be played? Timings in IST

IND vs PAK Asia Cup Super 4 match will be played on Sunday, September 10 at 3:00 PM (IST).

India vs Pakistan Free Live Streaming, Asia Cup 2023 Super 4:Where to watch IND vs PAK Super 4 broadcast on TV?

IND vs PAK Asia Cup Super 4 match will be broadcast on the Star Sports Network.

India vs Pakistan Free Live Streaming, Asia Cup 2023 Super 4: Where to watch IND vs PAK Super 4 Free live streaming

Fans can watch the live streaming of the IND vs PAK Asia Cup Super 4 match on the Disney+ Hotstar app and website.

India vs Pakistan Free Live Streaming, Asia Cup 2023 Super 4: Head-to-Head in the Asia Cup

India has faced Pakistan 18 times in the Asia Cup. India has won nine matches out of the 18 played, and Pakistan has won six.

India vs Pakistan Free Live Streaming, Asia Cup 2023 Super 4: Squad Details, Probable XIs

India Squad: Rohit Sharma (Captain), Shubman Gill, Virat Kohli, Shreyas Iyer, Suryakumar Yadav, Tilak Varma, KL Rahul, Ishan Kishan, Hardik Pandya (Vice Captain), Ravindra Jadeja, Shardul Thakur, Axar Patel, Kuldeep Yadav, Jasprit Bumrah, Mohd. Shami, Mohd. Siraj, Prasidh Krishna

Travelling stand-by player: Sanju Samson

Probable XI: Rohit Sharma (captain), Hardik Pandya, Shubman Gill, Virat Kohli, Suryakumar Yadav, Ishan Kishan, Ravindra Jadeja, Kuldeep Yadav, Jasprit Bumrah, Mohd. Shami, Mohd. Siraj

Pakistan Squad: Babar Azam (captain), Abdullah Shafique, Fakhar Zaman, Imam-ul-Haq, Salman Ali Agha, Iftikhar Ahmed, Tayyab Tahir, Mohammad Rizwan, Mohammad Haris, Shadab Khan, Mohammad Nawaz, Usama Mir, Faheem Ashraf, Haris Rauf, Mohammad Wasim Jr, Naseem Shah, Shaheen Afridi.

Probable XI: Fakhar Zaman, Imam-ul-Haq, Babar Azam (captain), Mohammad Rizwan, Agha Salman, Iftikhar Ahmed, Mohammad Nawaz, Naseem Shah, Shaheen Shah Afridi, Haris Rauf 

#India #Pakistan #Free #Live #Streaming #Asia #Cup #Super #watch #IND #PAK #match #live #Mobile #Apps

Linus Financial Settles With SEC Out of Court

Linus Financial, a Nashville-based crypto platform, has settled its dispute with the SEC out of court. Previously, the project offered pooled crypto investment opportunities to its users in exchange for fiat.

However, the firm voluntarily winded down its operations when a similar firm got into hot water with the securities regulator over a nearly identical product.

Unregistered Securities Offering

Many of the SEC’s recent lawsuits – the most high-profile one being the case against Ripple – focused on the sale of tokens that the agency believes should be classified as securities. However, in this case, the Commission referred to the interest-garnering accounts themselves as the point of friction.

According to a press release submitted by the U.S. regulator, Linus Interest Accounts were “offered and sold as securities and did not qualify for an exemption from SEC registration.”

In order to qualify as a security, a financial product must pass the Howey Test, marking it as a financial investment, with a reasonable expectation of profit in a common enterprise to be derived from the efforts of others. Since all that Linus’ users had to do was buy an investment account to benefit from the firms’ trading services, the SEC ruled that the accounts in question qualified as securities.

No Penalties Due to Cooperation

Fortunately for Linus Financial, the SEC has agreed to suspend penalties for the unregistered offering in return for a cease-and-desist order signed by the crypto platform.

According to Stacey Bogert, the Associate Director of the SEC’s Enforcement Division, the SEC’s course of action should encourage other firms in the industry to cooperate when necessary.

“The SEC will continue to hold companies accountable for failing to comply with federal securities laws. But we also want to encourage companies to cooperate and take prompt corrective action when problems arise. Today’s settlement provides a valuable message to other market participants about the importance of cooperation and remediation.”

Linus Financial, who had been offering these accounts since March 2020, winded down its operations in late March 2022, shortly after the SEC announced charges against an unnamed crypto asset investment product similar to the one it offered.

At the time, Linus voluntarily suspended the sale of accounts to new users and guided their existing ones to wind down and close their accounts within a month.


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#Linus #Financial #Settles #SEC #Court

Warren Buffett wrote to Leon Cooperman about stock buybacks, taxing the rich, and the presidency. Here are the 3 messages, from Cooperman’s new memoir

Leon Cooperman

Leon Cooperman.Jeff Zelevansky/Reuters

  • Warren Buffett wrote to Leon Cooperman about stock buybacks, taxing the rich, and Henry Singleton.

  • When Cooperman was mulling a presidential run, Buffett joked he could “deliver Nebraska” for him.

  • Cooperman shared a trio of messages he received from Buffett in his newly published memoir.

Warren Buffett wrote to Leon Cooperman about subjects ranging from Henry Singleton and Teledyne to stock buybacks, income taxes, and Cooperman’s potential presidential bid.

Cooperman, the former CEO of Goldman Sachs’ asset management division, shared three missives from Buffett in his newly published memoir: “From the Bronx to Wall Street: My Fifty Years in Finance and Philanthropy.”

Here are the three messages and the context around them:

1. Dear editor

Cooperman, who converted his Omega Advisors hedge fund into a family office in 2018, penned an open letter to the editor of Business Week in 1982. He was annoyed by the magazine’s critical profile of Henry Singleton, the cofounder and CEO of Teledyne.

In his letter, the billionaire investor trumpeted Singleton’s skill at growing his conglomerate through acquisitions, and driving performance at Teledyne’s subsidiaries. Cooperman also praised the industrialist for buying back stock at attractive prices, investing the spare cash from Teledyne’s insurance business into stocks, and building the company’s cash reserves.

Buffett wrote him a note after reading the letter, which Cooperman still keeps framed in his office:

Dear Lee,

I always enjoy both the quality of your writing and the quality of your thinking. Your letter to Business Week regarding Teledyne was 100% on the mark.

Best regards,


2. Buybacks, good and bad

Cooperman praised Singleton again at a value-investing event in 2007. He pointed to the Teledyne chief as an example of an executive who conducted buybacks the correct way, as he only repurchased shares at a discount to their intrinsic value.

Buffett wrote to Cooperman after his speech to express his agreement:

Henry was a manager that all investors, CEOs, would be CEOs, and MBA students should study. In the end he was 100% rational and there are very few CEOs  about whom I can make that statement. The stock repurchase situation is fascinating to me. That’s because the answer is so simple. You do it when you are buying dollar bills at a clear cut and significant discount and only then. 

As a general observation I would say that most companies that repurchased shares thirty years ago were doing it for the right reasons and most companies doing it now are wrong when doing so. Time after time I see managers who are attempting to be ‘fashionable’ or, perhaps subconsciously, hoping to support their stock. 

Loews is a great example of a company that has always repurchased shares for the right reason. I could give examples of the reverse, but I try to follow the dictum ‘praise by name, criticize by category.’

Best regards, 


3. Delivering Nebraska and taxing the rich

Cooperman briefly mulled a presidential run in 2011. He drew up a nine-point platform that included pulling American troops out of Iraq and Afghanistan, rebuilding US infrastructure, deregulating the domestic energy industry, and reining in government spending.

The veteran investor also took aim at people earning over $500,000 a year, proposing they should face a 10% income surcharge for three years. Cooperman sent his plan to Buffett, and directly asked the Berkshire chief what he thought the maximum tax rate on the highest-earning people in the US should be.

Buffett voiced his support for both Cooperman 2012 and a minimum tax in his reply:

Dear Lee: 

If you run for president, I can deliver Nebraska. Just let me know when to gear up.

There are two possible approaches to increasing the rates on those having taxable $1 million or more with a second step-up at $10 million. One would be to increase the rate at $1 million by five points and at $10 million at ten points.

Another approach would certainly be to have a minimum tax (counting both income tax and payroll taxes paid by or on behalf of the taxpayer) of, say, 30% at $1 million and, say, 35% at $10 million. The latter tax would hit me much harder and I lean toward it. Just changing the marginal rate would hardly hit me at all.

Let me know your thoughts. Whatever they are, you’ve still got my vote. 


Read the original article on Business Insider

#Warren #Buffett #wrote #Leon #Cooperman #stock #buybacks #taxing #rich #presidency #messages #Coopermans #memoir

AMLO’s Flagship Projects Drive Big Boost in Mexico’s 2024 Budget

President Andres Manuel Lopez Obrador’s big projects are a driving force behind the Mexican government’s plans to boost spending and widen the budget gap in 2024, consolidating his legacy before the next presidential election.

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(Bloomberg) — President Andres Manuel Lopez Obrador’s big projects are a driving force behind the Mexican government’s plans to boost spending and widen the budget gap in 2024, consolidating his legacy before the next presidential election. 

Under the Finance Ministry’s budget proposal, spending would increase 4.3% in real terms next year, or 9.3% nominally, to 9 trillion pesos ($512 billion). The fiscal deficit would widen to an estimated 4.9% of gross domestic product, the biggest since 1988 — a reflection of AMLO’s projects such as the Maya Train, the ocean-connecting Tehuantepec Isthmus rail link, social programs and his growing support for Pemex, the highly indebted state oil company.

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Read more: Mexico Plans Biggest Budget Gap in 36 Years as AMLO Ends Term

Here are some of the detailed allocations in the budget draft sent to Congress on Friday:

Maya train 

Billed as the government’s principal “priority project” for 2024, it’s set to receive 120 billion pesos, bringing the total to 368.5 billion pesos in budget drafts since 2019. But actual spending to date is 515.8 billion pesos according to the Mexican Institute for Competitiveness (IMCO), a think tank that says the train will cost 3.3 times more than originally budgeted. The government says the train will boost tourism and economically benefit “all Mexican regions.”


The government envisages a 2024 budget surplus of 145 billion pesos for Pemex to help it meet 2024 debt service obligations that the company estimated at about $11.2 billion in a presentation in June.

The government contribution is subject to a Pemex commitment to maintain a moderate debt, which is now the highest of any oil major, reaching $110.5 billion at the end of June. The Finance Ministry also wants that “as far as possible” the balance of Pemex’s public debt shows a reduction compared to the previous year.

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The government also proposed a reduction of 5 percentage points in the company’s profit sharing duty payments to 35%, so the company receives a greater share of oil income.

Mexico’s support will considerably help Pemex to meet its maturities for 2024, Barclays strategist Gabriel Casillas said in a note. The DUC reduction to 35% from 40% could free up about $2.5 billion in cash for the oil company. Combined with the $8.2 billion capital injection, Pemex could receive as much as $10.7 billion in government help, he said. 

“It is our take that this budget proposal is supportive to have a swift and smooth transition to the next administration,” Casillas said in the report. 

Lopez Obrador’s increased support for Pemex aligns with his nationalist energy policy and preference for fossil fuel over cleaner energy. 

Read More: Pemex Gets Billions for Debt Payment in Mexico Draft Budget

Isthmus of Tehuantepec

The corridor for the Isthmus of Tehuantepec, a strip of land that separates the Pacific Ocean and the Gulf of Mexico, would get 21.1 billion pesos in 2024, almost triple the funding level in last year’s spending plan. AMLO’s goal is to reduce travel time between the Pacific and the Gulf of Mexico by 70%, according to the document. 

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Lopez Obrador views the corridor as an alternative to the saturated Panama Canal, which is dealing with shrinking water levels. AMLO also wants southern Mexico to compete with the north as foreign companies expand operations closer to the US.

Retirement benefits

But the biggest chunk of the priority projects is for public retirement benefits, rising to a proposed 465 billion pesos from an approved 336 billion pesos this year — a 38% increase that’s the biggest in AMLO’s administration since the 2021 budget plan. Increased spending on social programs is a key selling point of his leftist government and an anchor of his popularity.  

It could also be a boon for Claudia Sheinbaum, the governing Morena party’s candidate in the June 2 election and a close AMLO ally.

—With assistance from Michael O’Boyle and Amy Stillman.

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#AMLOs #Flagship #Projects #Drive #Big #Boost #Mexicos #Budget

Whale Unloads 762-B At A Loss

PEPE, the meme coin that has garnered a cult following in the cryptocurrency world, made headlines once again as an anonymous whale, rumored to go by the name “Alleged Mattfurie,” executed a huge transaction. 

According to a new PEPE price update,  this enigmatic figure exchanged a staggering 726 billion PEPE tokens for approximately 345.7 Ethereum (ETH). What’s more, the acquired ETH swiftly found its way to the Coinbase exchange, adding intrigue to an already sensational move.

As of the latest data from CoinGecko, PEPE is currently valued at $0.00000078, with a 24-hour slump of 2.8% and a marginal seven-day loss of 0.1%. However, the impact of this whale behavior is sending ripples through the meme coin’s market dynamics.

PEPE’s price saw a brief 3.48% rise on September 7th, but it quickly dropped back to $0.0000007857. This likely indicates that a significant PEPE holder sold their 762 billion tokens at a loss.

PEPE Price Conundrum: Caught In A Triangle

PEPE’s journey in the world of cryptocurrencies has been nothing short of remarkable. It has not only become a symbol of internet culture but also a fascinating experiment in the world of decentralized finance. 

PEPEUSDT trading at $0.00000078 on the weekend chart:

While the PEPE token continues to capture the imagination of traders, its price appears to be tightly ensnared within a converging triangular pattern. A separate report suggests that as long as this pattern remains intact, the coin’s price may persist in moving laterally over the coming days. This predicament leaves traders in a precarious position.

For traders with a bearish outlook on PEPE, the recent whale transaction may present an enticing opportunity. Some are considering the possibility of short-selling the coin, anticipating a potential breakdown. If this bearish sentiment takes hold, the report notes that PEPE’s price could tumble by as much as 10%, potentially retesting the psychological support level at $0.0000007.

Insights And Speculation Abound

The sudden influx of PEPE coins into the market has raised several questions about its potential impact. The cryptocurrency market, known for its unpredictability, continues to offer intrigue and speculation, with events like Alleged Mattfurie’s massive PEPE token exchange sparking intense discussions. 

PEPE seven-day price action. Source: Coingecko

While some view it as a simple profit-taking move, others see it as a signal of larger market shifts. The meme coin space, in particular, thrives on such dramatic twists, and PEPE enthusiasts remain divided on the implications of this whale’s actions.

In the world of cryptocurrency, where every move is scrutinized and analyzed, the PEPE whale’s exchange of 726 billion tokens for Ethereum serves as a reminder of the volatility and excitement that come with these digital assets.

As PEPE continues to occupy a unique niche in the crypto landscape, observers and traders alike eagerly await the next chapter in this ever-evolving story.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from The Currency Analytics

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