Morgan Stanley CEO Rejects Dimon: “Bitcoin Is Certainly More Than A Fad”

Two weeks after JPMorgan CEO Jamie Dimon's now infamous "Bitcoin is a fraud" comments, Morgan Stanley CEO James Gorman told The Wall Street Journal today that Dimon is wrong and "Bitcoin is certainly more than a fad… the concept of an anonymous currency is an interesting concept."

Gorman added that Bitcoin faces questions over regulation and entry barriers… "There is a government risk to it… I don't think it should be illegal."

 

Full WSJ interview with Gorman below… (forward to 57:00 for bitcoin discussion)

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Mattis Targeted By Taliban Rocket Attack At Afghan Airport

Defense Secretary James Mattis was the target of a failed rocket attack near a key Afghanistan airport Wednesday, the Taliban said, though the attack occurred after he had left the airport. Hours after Mattis landed, as many as 40 rockets were fired at Kabul’s Hamid Karzai International Airport from an unknown location and landed in an open area, according to Najib Danish, spokesman for the Afghan Interior Ministry. US military officials added that a barrage of up to 40 rounds of munitions hit the airport, including 29 rocket-propelled grenades.

According to CNN, Mattis and NATO Secretary General Jens Stoltenberg had already left the airport at the time of the incident, Danish said. No one was injured.

No U.S. personnel were injured, but a spokesperson for the Afghan Interior Ministry said five Afghan civilians were wounded in the attack. According to media reports, Kabul airport chief Yaqub Rassouli said airplane hangars and some helicopters were also damaged.

The Taliban, which claimed responsibility for the attack, said that Mattis was the target. ISIS has now also claimed the attack. A Taliban spokesman tweeted that the attack was aimed at the secretary’s plane.

Afghan President Ashraf Ghani said at a press conference that his country’s special forces are “dealing with” the incident. Mattis, standing with Ghani, called the attack a “criminal act by terrorists.”

 “It’s designed to go after generally innocent people to make some sort of statement,” the U.S. defense chief said. “This is a classic definition of what the Taliban are up to right now. It defines their approach to how they see their role here and if in fact this is what they have done, they will find the Afghan security forces continuing on the offensive against them in every district of the country right now. So it is what it is, but it’s also the reason why we band together, and we don’t question what we’re doing here.”

This was Mattis’s first trip to Afghanistan since President Donald Trump announced a new South Asia strategy that will send an additional 3,000 U.S. troops to the country. There are approximately 11,000 U.S. forces there now advising and assisting the Afghan military’s fight against the Taliban, as well as adding additional firepower to the counterterrorism mission against ISIS and Al Qaeda.

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Germany’s Finance Minister Schauble Out, To Become Bundestag Speaker

The main who made “nein” a household word everywhere, and especially Greece, will no longer be in charge of Europe’s biggest economy.

As part of the fallout from Sunday’s disastrous, for the CDU election, election which will see Merkel govern in a three-way coalition with the minor German parties, it was expected that Germany’s iconic finance minister Wolfgang Schauble would be kicked out of his post. It also means that Germany’s pro-business, low-tax FDP, whose support Merkel is likely to need, will be put in charge of the coveted finance ministry position.

That was confirmed moments ago by the dpa, which reported that Schauble is to step aside from the German finance ministry position he has held since 2009, to become president of the German Bundestag, or lower house of parliament.

According to Bild, Angela Merkel and Volker Kauder, the leader of the CDU-CSU conservative bloc in the Bundestag, asked Schauble to take over the role which has been vacant since the departure of the veteran CDU MP Norbert Lammert. Schaeuble will be nominated by CDU-led caucus at next meeting Oct. 17 and Schaeuble would take up the post when next Bundestag meets next month.

Schäuble has been the longest-serving MP in the Bundestag, first elected some 45 years ago.

While the move may seem a gentle form of retirement for the cranky finmin, the FT notes that the role of managing debate in the Bundestag “will become much harder with the arrival of the anti-immigration Alternative for Germany which won 13 per cent of the vote and 94 parliamentary seats.”

Speaking at Schaeuble’s 75th birthday celebration last week, Merkel paid tribute to his 45 years as a member of parliament, but gave no clear signal that she wanted to retain him in the post after the election.

Confined to a wheelchair since being shot at an election rally in 1990, Schaeuble is widely respected in Germany as a steward of the nation’s finances, and enjoyed Merkel’s strong support during the euro zone debt crisis, which almost tore the currency bloc apart. But he is a hate figure in Greece and other parts of southern Europe for his insistence on austerity at a time of deep recession in return for euro zone bailout loans.

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Facebook Expects To Turn Over 3,000 “Russia Ads” To Congress In The Coming Days

After leaking details about the controversial “Russia ads” to the media earlier this week (a decision we presume was made to save investigators the trouble of leaking it themselves), Facebook has revealed to the Financial Times that it expects to finally turn over the more than 3,000 Russia-bought political ads to US lawmakers in the coming days.

Facebook conceded earlier this month that the ads were, in fact, purchased by a Russia-linked troll farm after initially denying the story to the press, an announcement that outraged Democratic lawmakers and members of the so-called "resistence", who eagerly proclaimed that they may have finally found the "smoking gun" to prove Russia intended to meddle in the US presidential election. The company last week promised to turn the ads over to Congressional investigators, who in turn would share them with Special Counsel Robert Mueller and his team.

However, the leaks earlier this week revealed that political messages contained in the ads fell across the political spectrum, including ads that were pro- and anti-Black Lives Matter, ads that advocated second-amendment rights, and ads that were pro-life. Lawmakers and media outlets claimed that the ads were meant to "sow dischord" in the US, without explaining exactly how political ad copy that sounds virtually indistinguishable from ads run by other political groups would accomplish this.

According to the FT, three people familiar with Facebook’s contacts with Congress said the company has already shown investigators a few “inflammatory” ads seemingly designed to stir-up passions over issues such as the right to bear arms and police brutality against African-Americans. Facebook has been rushing to try and have the ads ready for investigators by the end of the week, but there is a chance the exchange will slip into next week, the people said. The Russians ad buyers were “not Republicans or Democrats”, said one person familiar with conversations between Facebook and Congress. “Their goal was to sow division. They were very good at picking up on the fault cracks in American life.  Other ads sought to tap into anti-Muslim sentiment, hoping to encourage people to “like” pages that would then deliver a stream of provocative content into their Facebook news feeds, they said.

Of course, readers should take this with a grain of salt. As one anonymous Facebook employee reportedly told the FT, the content of the ads isn't what's important (…what?).

“It’s the groups, the accounts, the pages,” said another person. “I don’t think any of us should get spun up too much around the axle on ads. The ads could be a conduit to a much broader set of content.”

Facebook indicated that it did not want to release the ads to the public because of obligations to protect user information – though it's unclear why the company couldn't just redact any sensitive information. Mark Warner, the Democratic vice-chairman of the Senate intelligence committee, has said he wanted “to find a way” to make some public (a Washington reporter who finds him or herself in the right place at the right time might end up with a juicy scoop).

Facebook has said that Russian actors had spent at least $100,000 on roughly 3,000 ads posted on the site between June 2015 and May 2017.

In what's becoming a discouraging trend, another anonymous Facebook employee tried to explain exactly how the ads influenced the election by using a clumsy metaphor instead of concrete details.

The ads supporting gun rights, a primarily Republican cause, and Black Lives Matter, a movement inspired by police killings and more popular with Democrats, suggest a goal of stirring up issues that cause some of the most furious disagreements in America.

 

“The goal is not to make everyone in America believe the grass is purple,” said another person familiar with contacts between Facebook and Congress. “It’s to make some segment of the population think it’s pink, make some segment think it’s green and make some segment think it’s yellow. It’s to undermine the ability to reach consensus on everything.”

In the latest sign that the Russian ad-buy witch hunt is expanding to encapsulate all Sillicon Valley firms that sell advertising, FT reports that Twitter, another platform for political ads, is being sucked into the storm. Its representatives are set to testify to the Senate intelligence committee behind closed doors on Thursday, said an aide to Warner. Richard Burr, the committee’s Republican chairman, has said Facebook should testify in public as part of his probe into Russian election meddling. Warner said this week that the “million-dollar question” was how Russians knew who to target on Facebook with their ads.

“Did they know this just by following political news in America? Did they geo-target both geography and by demographics in ways that at least at first blush appear pretty sophisticated?”“These are the kind of questions that we need to get answered.”

As reminder, Facebook directed the FT to its statement issued earlier this month that the vast majority of the 3,000 ads did not refer specifically to the presidential election and appeared to focus on “amplifying divisive social and political messages across the ideological spectrum."

The bottom line is, with Congressional investigators about to receive the entire cache of ads, expect more leaks in the near future.

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Supreme Court Stays Georgia Execution, ACLU Sues ICE Over Pregnant Detainees, Police Finally Solve Creepy-Clown Murder: A.M. Links

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Durables Goods Orders Bounce After July Collapse, Aircraft Orders To The Rescue Again

Following July's collapse in Durable Goods Orders (post-Boeing hangover), hope was high for a rebound in August (despite Harvey and Irma's impact) and preliminary data showed a better than expected 1.7% MoM rise.

July's plunge was the worst since Aug 2014's post-Boeing hangover… August preliminary data showed a 1.7% rise (against expectations of a 1.0% gain).

 

Among the biggest drivers of this rebound was non-defense aircraft orders which jumped 44.8% MoM

 

And finally, just a quick reminder that fun-durr-mentals don't matter (for now)…

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Small & Micro Caps strong of late, breaking out!

 

Year to date, Small and Micro Caps stocks don’t have a ton to brag about when compared to the S&P 500, as both are lagging by several percentage points.

Below looks at the performance of them to the broad market over the past 30-days, which reflects that both of them are much stronger of late.

small and micro caps compared to S&P 500 chris kimble post

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Small Caps and Micro Caps have been creating look-alike patterns for the past few years, reflected in the chart below-

weekly chart of small cap and micro caps chris kimble chart

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Both are attempting to break out of a sideways trading range of late at (1). Potential that both have created a base over the past 9-months, to push higher off of.

The price action of late is positive for both and could send a positive message to the broad market as well. Stock market bulls want to see a breakout continue. They would get caution message of both would get back into the blue shaded trading range.

This chart is updated weekly to Sector and Premium Members.

 

 

The Power of the Pattern at work to save people time, improve decision-making & results.   

We identify high probability big pattern reversals and breakouts in global indices, sectors, commodities, several metals and select individual stocks

Send us an email if you would like to see sample reports or a trial period to test drive our Premium or Weekly Research

 

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Call us Toll free 877-721-7217 international 714-941-9381

 

Website: KIMBLECHARTINGSOLUTIONS.COM

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Bitcoin Soars Back Above $4100 As ECB Admits “No Power To Regulate Cryptocurrencies”

Cryptocurrencies are extending their post-China-crackdown gains, with Bitcoin spiking back above $4100 this morning. A number of catalysts have been posited, from chatter of Mike Novogratz new fund to talk of Japan's shift to virtual currency before the Olympics in 2020. However, most chatter revolves around Mario Draghi's admission that The ECB is powerless to regulate or prohibit cryptocurrencies.

Bitcoin is back at key support/resistance…

 

In fact, most of the crypto space is higher this morning…

 

As CoinTelegraph reports, Mario Draghi, the erstwhile president of the European Central Bank (ECB) made some startling comments during his presentation yesterday at the Hearing of the Committee on Economic and Monetary Affairs.

When asked about cryptocurrency regulations or bans, similar to the political decisions the Chinese central government has enforced, Draghi made it clear that there is no way to ban Bitcoin, or to even regulate it, saying:

“It would actually not be in our powers to prohibit and regulate them. We have to ask what effects cryptocurrencies have on the economy.”

He added that they are still far too immature to be considered a viable payment methodology – a conclusion that was reached by the ECB in tandem with the Central Bank of Japan last week.

Additionally, banks in Japan are considering creating a digital currency, the J-Coin, intended to eliminate cash as a payment option. CoinTelegraph reports that the news broke through an article indicating that the coin is being planned with the blessing of financial regulators for before the 2020 Olympic Games in Tokyo and is intended to streamline the financial system.

Recently, Japan has once again become the largest Bitcoin exchange market with 50.75 percent market share of the global Bitcoin exchange market.

But Japan is currently functioning as a 70 percent cash economy – a figure that by far exceeds most developed nations where digital transactions have taken the place of cash. These cash transactions create far more cost in the financial world than digital transactions.

The J-Coin is intended to function in tandem with the Yen, rather than replacing it. The coin would be exchanged at a one-to-one ratio. The service for the coin would be offered freely but would be a means of tracking transactions that is far more complex in a cash-based society.

The coin will likely see release in the coming years, though the infrastructure of the system is not yet clear. It may be based on Blockchain technology, but the specifics are as yet unreleased. Recent reports from the Bank of Japan indicate that it does not consider Blockchain technology ‘mature’ enough to handle transactions.

The suggestion of a government cryptocurrency falls in line with the idea that governments around the world are seeking to start their own proprietary cryptocurrencies.

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Apple Hits Another Production Snag On iPhone X

Another day, another headache for Apple, which according to the WSJ has hit a new production snag on its new iPhone X over a pair of components dubbed Romeo and Juliet, which is adding to worries about extended product shortages when sales begin in early November.

According to Nikkei, which first reported the glitch, Problems with production of 3-D sensors for facial recognition are still plaguing Apple’s premium iPhone X. Apple introduced contoversial facial recognition to unlock phones and to authenticate payments for the first time with the iPhone X. It’s also the cause of the latest snag as makers of 3-D sensor parts are still struggling to reach a satisfactory level of output, and to boost their yield rate.

As the WSJ reports, the “Romeo and Juliet” components are critical parts of the new facial-recognition system.

It has taken more time to assemble the Romeo modules than the Juliet modules, they said, creating an imbalance in supply. That has served as a bottleneck for the iPhone X’s mass production, according to one person, which could possibly crimp supplies beyond typical initial shortfalls when the phone is released Nov. 3.

 

The Romeo and Juliet modules at the center of the latest delay are two critical parts of Apple’s facial-recognition system, which is based on 3-D sensor technology. The Romeo module features a dot projector that uses a laser to beam 30,000 infrared dots across the user’s face, essentially mapping its unique characteristics. The Juliet module includes the infrared camera that reads that pattern.

The problem is that there weren’t enough “Romeos” to go with the number of “Juliets” on hand. The Romeo module is assembled by LG Innotek and Sharp.

The production problems are the latest glitch as Apple and its suppliers rush to load the flashy new features into the flagship model that carries high stakes for Apple. The first problems emerged earlier this summer and involved the iPhone X’s screens, which are using organic light-emitting diode, or OLED, technology. Then there was a hiccup during Apple’s launch event Sept. 12, when the iPhone X failed to fully unlock the first time the company’s top software executive used it before the audience. Apple later said the Face ID technology had been inadvertently disabled beforehand.

Besides the facial-recognition system, difficulties involving the OLED screen have also made the iPhone X road to production bumpy. Apple initially hoped to equip the iPhone X with the Touch ID function, which allows users to open the phone by scanning their fingerprint. But incorporating the scanner into the new OLED display proved problematic, and Apple eventually scrapped the scanner on the new phones. The episode contributed to iPhone X sales being pushed back til November, people familiar with the matter said.

While the Journal reports that Apple’s plan to launch the iPhone in more than 55 countries Nov. 3 suggests it is confident it can meet demand. But as Sanford C. Bernstein analyst Toni Sacconaghi said in a recent note, “if iPhone X availability issues persist beyond November 15 and into the holiday season, we could see some frustrated iPhone users consider switching to other offerings,” possibly weakening sales estimates, Sacconaghi said.

Meanwhile, with the iPhone X still more than a month away from reaching consumers, initial appetite for the iPhone 8 and iPhone 8 Plus appears to be weak according to Nikkei. Some recent reports suggest that the delayed shipment may have dampened demand as well. “One of the sources said that demand for the iPhone 8 and iPhone 8 Plus appears to be weaker than that of their predecessors, but did not provide figures.”

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SCOTUS Shouldn’t Let Fear of Sex Offenders Trump Justice: New at Reason

According to the U.S. Supreme Court, locking up sex offenders after they have completed their sentences is not punishment, and neither is branding them as dangerous outcasts for the rest of their lives. Two cases the Court could soon agree to hear give it an opportunity to reconsider, or at least qualify, those counterintuitive conclusions, Jacob Sullum writes.

Karsjens v. Piper is a challenge to the Minnesota Sex Offender Program (MSOP), which since 1994 has confined more than 700 people who were deemed too “sexually dangerous” to release after serving their prison terms. Although these detainees are supposedly patients rather than inmates, in more than two decades only one of them has ever been judged well enough to regain his freedom.

Another case pending before the Supreme Court, Snyder v. Doe, is an appeal of a 2016 decision in which the U.S. Court of Appeals for the 6th Circuit ruled that Michigan’s Sex Offender Registration Act, ostensibly a form of civil regulation aimed at protecting public safety, is so punitive that its requirements cannot be applied retroactively without violating the constitutional ban on ex post facto laws. The 6th Circuit noted that the law “has grown into a byzantine code governing in minute detail the lives of the state’s sex offenders,” including onerous restrictions on where they may live, work, and “loiter.”

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