'separation of Powers' to Bolster National Rice Production — Mat Sabu

 Abu Dhabi has claimed the top spot in a new global ranking of cities based on the capital managed by their sovereign wealth funds, with US$1.7 trillion (S$2.2 trillion) in assets as at October.

This positions the United Arab Emirates’ capital as the largest hub for sovereign fund capital, according to a report released by Global SWF on Oct 8.

The ranking – which for the first time assesses sovereign fund assets at the city level – places Abu Dhabi ahead of Oslo, Beijing and Singapore.

Singapore, home to GIC and Temasek – ranks fourth, managing over US$1.1 trillion in such assets. The Singapore government does not publicly disclose the full size of its reserves managed by GIC.

The report noted that Abu Dhabi’s funds include multiple entities, such as the Abu Dhabi Investment Authority (Adia), Mubadala Investment Company, and ADQ.

These funds are managed under separate mandates, allowing the city to maintain distinct investment strategies, the report said.

Combined, the three institutions have invested US$36 billion globally in the first three quarters of 2024, accounting for 26 per cent of all sovereign fund investments in that period.

“Sustained high oil prices have meant healthy fiscal surpluses for Abu Dhabi since 2020, when it experienced its last stress test,” the report said.

“According to Fitch’s forecasts, if things stay the way they are, the emirate will benefit from US$60 billion in surplus in the next two years – which would flow into the already massive Adia.”

In addition to its financial assets, Abu Dhabi also leads in human capital employed by its sovereign wealth funds, with 3,107 personnel across institutions, according to the report.

Other major cities, including Singapore, Riyadh, Kuala Lumpur and Dubai, follow closely, with each employing more than 1,000 staff within their respective funds.

Globally, sovereign wealth funds managed a total of US$12.5 trillion in assets. Six cities – Abu Dhabi, Oslo, Beijing, Singapore, Riyadh and Hong Kong – account for over two-thirds of this total, the report found.

“The world ranking confirms the concentration of sovereign wealth funds in a select number of cities, underscoring the significance of these financial hubs on the global stage,” said Diego Lopez, founder and managing director of Global SWF. 

Source: Straitstimes

Market picture

The cryptocurrency market has stabilised around the $2.17 trillion level where it was a week and a day ago. The sentiment index has remained in the 49-50 (neutral) range for the fifth day, which contrasts with the near ‘extreme greed’ sentiment in the stock market. This wariness among crypto investors has often heralded stock market sell-offs. Still, this time, it could be due to sell-offs in China and expectations of new signals on the Fed’s monetary policy.

Bitcoin’s price has changed little over the past 24 hours, remaining at $62.4K, sandwiched between the 200-day moving average above and the 50-day below. Potential triggers to break out of this range could be Fed minutes or US inflation data if they lead to a reassessment of expectations in traditional markets. A technical signal could be a move out of the range delineated by the mentioned moving averages at $63.6K and $60.8K, with the potential for further movement towards a breakout.

News background

According to Bitfinex, Bitcoin’s decline from $66,500 to $60,000 last week is a ‘healthy rebuild’ that reduces the risk of a ‘sudden drop’ in the coming days and weeks.

Matrixport expects that miners’ shares may rise as their revenue stabilises after falling and lagging Bitcoin’s momentum. The daily revenue of publicly traded mining companies fell from $70 million to $31 million after the April 2024 halving.

The US Supreme Court has granted permission to sell 69,370 Bitcoins previously seized from the darknet site Silk Road. US authorities declined to comment on whether they plan to sell the bitcoins on the marketplace.

A court in the US has approved a plan to distribute payments to creditors of the collapsed FTX exchange. About 98% of creditors will receive more than $6.8bn in fiat within 60 days of the plan taking effect.

The Crypto.com exchange filed suit against the SEC after receiving a Wells notice. The agency is using the notice to report violations of the law, which is the basis for the planned civil suit.

According to Politico, Robinhood’s general counsel, Dan Gallagher, is the leading candidate to head the SEC if Donald Trump wins the U.S. presidential election. Other contenders include former CFTC Chairman Chris Giancarlo, SEC Commissioner Hester Pearce and former agency general counsel Robert Stebbins.

Crypto investors mostly favor dollar-cost averaging (DCA) when buying into the market, a survey by crypto exchange Kraken has found.

Around 83.5% of investors had used a DCA strategy, and 59% still use it as their primary way to buy crypto, according to Kraken’s survey of 1,109 crypto investors published on Oct. 7.

Dollar-cost averaging involves buying an asset at regular intervals, such as once a month, regardless of price — which Kraken’s researchers claimed can “reduce the impact of short-term price volatility and remove emotions that can cloud judgment.”

Over 46% of those surveyed said the biggest advantage to DCA is hedging against market volatility, while around a third believed it supported consistent investment habits. About 12% said DCA removed emotion from trading.

The reasons for a DCA strategy change depending on income. Those earning less than $50,000 said the biggest benefit of the strategy was that it encouraged consistent investment habits.

Those earning over $50,000 pinned reducing the impact of market volatility as a greater advantage — especially for respondents earning between $175,000 to $199,000, where nearly seven in ten believed reducing market volatility impact was the biggest DCA advantage.

However, just over 8% of respondents maintained their strategy when facing losses, with the researchers adding that those using other investment strategies “were more likely to stay the course during market turbulence.”

“Our survey found that the more an investor earns, the more confident they are about sticking to their investment strategy,” the researchers stated. 

Almost 63% of those with incomes over $100,000 said they have a “very strong” ability to stick to a trading plan when facing market fluctuations. 

The survey found that higher-income investors earning more than $100,000 were more likely to use DCA while lower-income investors — those earning under $100,000 — were more likely to try timing the market. 

Younger investors aged between 18 and 29 also preferred riskier strategies, with half opting to try and time the market.

Kraken noted that older investors aged over 45 kept the closest eye on crypto markets, with two-thirds checking markets more often than traditional investments compared to only a third of those aged 18 to 29 who did the same.

The Kraken team said dollar-cost averaging is “not perfect” but claimed it could reduce the stress of timing the market and offset emotional decision-making.

Source: COINTELEGRAPH

Source: Euronews

The rise of financial technology (fintech) and artificial intelligence (AI) in today’s rapidly changing world presents both opportunities and challenges, such as the use of AI in credit scoring that has raised concerns about algorithm bias and the possibility of unfair lending practices.

As such, Malaysia’s Association of Development Finance Institutions (Adfim) chairman Izwan Zainuddin believes clear governance frameworks are necessary to ensure responsible innovation in the digital age.

“Initiatives to leverage digital tools for greater transparency, such as the governance in glance system, are critical to navigate the evolving landscape,” he said in his opening remarks at the National Conference on Integrity and Governance 2024 here on Wednesday. 

Furthermore, he said that strong governance is critical for establishing trust and confidence in the financial sector, as communities and investors demand transparency and accountability in all proposed projects and programmes. 

“So, we must lead by example, setting the highest standard for ourselves and our industry. Recent market fluctuations, from volatility in the global technology sector, to concerns about data privacy and cyber security, have highlighted the critical need for sound risk management and ethical practices,” he said.

Besides that, Izwan stated that upholding these values is critical, as financial institutions and entrepreneurs navigate increasingly complex regulatory landscapes, following the introduction of the Malaysian Code on Corporate Governance, which was issued by the Securities Commission (SC) in 2021.

He said that this improved best practice aligns corporate governance with today’s realities, with a focus on sustainability, board diversity, diversity and investor stewardship. 

“In addition to the mission corporate governance code, the SC is also currently seeking public feedback on its draft governance code, especially for the micro, small and medium enterprises (MSMEs) sector.

“This is an opportunity because MSMEs account is 97.4% of the country’s business establishments and they play an important role in our economy, and the next code, which will be launched very soon, will focus on clear accountability and the management of long-term risks tailored to the specific needs and challenges of MSMEs,” he added.

Therefore, by bringing together industry leaders, government officials, and experts, Izwan, who is also Perbadanan Usahawan Nasional Bhd chief executive officer, hopes that the two-day conference will provide an opportunity for collaboration and innovation, and set a new benchmark on governance and integrity among development finance institutions and relevant stakeholders.

Source: The edge markets

Gold price (XAU/USD) extends its losing streak for the sixth consecutive trading day on Wednesday. The precious metal has been battered by the upbeat US Dollar (USD), which has strengthened as traders are pricing out another Federal Reserve (Fed) larger-than-usual interest rate cut of 50 basis points (bps) in their next meeting in November.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, has extended its upside to near 102.70. An appreciation in the US Dollar makes investment in the Gold price an expensive bet for investors. 

Meanwhile, 10-year US Treasury yields drop to near 4.02% in Wednesday’s European session but is close to a more than two-month high. Higher yields on interest-bearing assets increase the opportunity cost of holding an investment in non-yielding assets, such as Gold. 

Traders have priced out Fed large rate cut bets as upbeat United States (US) Nonfarm Payrolls (NFP) data for September reduced the risk of an economic slowdown. The US job report showed that labor demand remained robust, the Unemployment Rate decelerated, and wage growth was stronger than expected.

However, the downside in Gold price is expected to remain limited due to escalating tensions in the Middle East region. The war between Israel and Iran-backed-Hezbollah intensified after the former killed Hezbollah leader Hassan Nasrallah and his subsequent replacements. Historically, the appeal of precious metals, such as Gold, improved amid geopolitical woes.

Daily digest market movers: Gold price drops as US Dollar extends upside

Gold price is expected to remain on tenterhooks with investors focusing on the Federal Open Market Committee (FOMC) Minutes of the September meeting, which will be published at 18:00 GMT. The FOMC Minutes will provide a detailed explanation behind the hefty rate cut and fresh cues about inflation and the economic outlook.

In September’s meeting, the Federal Reserve started the policy-easing cycle after maintaining a restrictive policy stance for more than two and a half years. Fed officials almost unanimously (with only Michelle Bowman dissenting) voted for a sizable rate cut of 50 bps as they were more concerned about reviving job growth, with confidence that inflation is on track to return sustainably to the bank’s target of 2%.

This week, investors will pay close attention to the US Consumer Price Index (CPI) data for September, which will be released on Thursday. Economists estimate the annual core CPI – which excludes volatile food and energy prices – to have grown steadily by 3.2%. Annual headline CPI is expected to have decelerated further to 2.3% from 2.5% in August.

The inflation data will significantly influence market expectations for the Fed’s interest rate outlook for the remainder of the year. According to the CME FedWatch tool, 30-day Federal Fund Futures pricing data shows that there will be a 25-bps interest rate cut in each of the two meetings remaining this year.

Technical Analysis: Gold price falls to near $2,610

Gold price extends its correction to near $2,610 from its all-time high of $2,685 as profit-booking remains intact. However, the overall trend of the Gold price remains bullish as the 20- and 50-day Exponential Moving Averages (EMAs) at $2,615 and $2,550, respectively, are sloping higher.

Upward-sloping trendline from the April 12 high of $2,431.60 will act as major support for the Gold price bulls.

The 14-day Relative Strength Index (RSI) falls into the 40.00-60.00 range, suggesting a weakening of momentum. However, the upside trend remains intact.

Source: FXSTREET