Daily Brief - 10 Jan 2024

Bitcoin swings sharply after fake ETF approval news amid SEC’s X account hack

The US Securities and Exchange Commission's (SEC) Twitter account was recently hacked, leading to false information about the approval of a Bitcoin ETF. This misinformation briefly increased Bitcoin's value and has now sparked a US investigation into the security breach. The SEC, with law enforcement, is looking into how their account was compromised. The irony is, the SEC, known for its strict cybersecurity stance, fell victim to such an incident. This situation comes just as the SEC is expected to make decisions on several Bitcoin ETF applications. The hack has also led to questions and demands for explanations from political figures.

BlackRock warns on UK bond market turbulence ahead of election year

BlackRock is warning of potential risks in the UK bond market due to increased spending promises by political parties in the upcoming election. The focus is on the fiscal policies of the Conservative and Labour parties, as Prime Minister Rishi Sunak has announced an election for the latter half of the year. The company highlights concerns about "bond vigilantes," investors who sell bonds in response to policies they see as causing inflation. This comes after the UK bond market experienced turmoil in 2022 due to unfunded tax cut promises. BlackRock is currently maintaining a neutral stance on UK government bonds and stocks, amidst expectations of Bank of England rate cuts and ongoing economic challenges in the UK.

Boeing CEO emotionally admits mistakes after 737 Max incident

Boeing's CEO, Dave Calhoun, emotionally acknowledged the company's mistakes during a meeting, following a safety incident with a 737 Max 9 aircraft. The incident, where a door plug ejected mid-flight, led to the grounding of 171 of these planes for safety checks. This comes after previous issues with the 737 Max, including two fatal crashes. The CEO emphasised transparency and safety as top priorities. Boeing is now revising instructions for inspections in response to feedback. This situation has raised concerns among airlines and analysts about Boeing's quality control and the 737 Max's reputation.