The UK economy has defied all odds and posted an impressive 0.2% growth despite projections that it would contract in Q2.
The growth came as household expenditure rose in tandem with manufacturing output.
Economists still fear the effects of high-interest rates are not fed through, and pain is yet to be lifted from British markets.
UK economy has seen a surprise 0.2% growth in Q2 as manufacturing output and household expenditure rose though the effects of high-interest rates are still shaking the markets.
UK posts a Q2 2023 surprise growth
The UK has been on the verge of a reversed economic growth this year following its January 2020 Brexit and the post covid 19 economic challenges. The country has been battling high inflation rates of up to 12%, which has necessitated the introduction of tighter banking measures.
The BoE has hiked interest rates making borrowing more expensive for nationals and investors in Britain. While the interest rates are working to bring down the inflation levels, the economy has been hit by pain in its markets. More and more households cannot afford to pay their mortgages, while businesses have been cutting their expenditures.
These economic outlooks were expected to drag the UK economy into contraction in Q2, only to bounce back with an impressive 0.2%. The jump is due to increased manufacturing output and spending rates.
The economy expanded by 0.5% in June, beating a forecast of 0.2% and monthly GDP growth of 0.1% in May and 0.2% in April. Manufacturing output grew by an impressive 1.6%, production followed by 0.7%, and services posted a fair 0.1% growth.
On Friday, the Office for National Statistics report said that the strong growth in household and government consumption in terms of expenditure faced price pressure over three months though it was moderated in the previous quarter.
Recession bloodbath fears still looming
Though the UK economy still has ‘legs, ’ the effects of high-interest rates are not necessarily over. BoE hiked rates by 25 basis points in August to 5.25%, and inflation is still running wild, meaning further hikes will be necessary. The UK inflation rates are the highest, around 7.9%, which means the government will not meet its 2% target for the year till Q4 2024.
As such, policymakers will observe the market ahead of the September rate hike decision meeting. Ruth Gregory, deputy chief U.K. economist at Capital Economics, said in a Friday note that the consultancy still forecasts a mild recession for the country later in the year as the impact of higher interest rates is felt.
Keep watching Fintech Express for updates on this and other fintech-related developments.
Coinbase layer 2 network Base set a new record yet after hitting 136,000 daily users on AUG 10
On the same day, about 30% of the users were new.
Coinbase layer 2 network Base has registered an impressive 136K users in a day despite the exchange being under US SEC investigations and legal battles.
Coinbase layer 2 network Base gaining traction despite legal troubles
On-chain analytics show that over 136K users accessed the Coinbase layer 2 network Base on August 10, just a day after its launch, a record performance for a new blockchain.
Nearly 42,000 users accessed the network for the first time on August 10 though its record high for new users was on July 31 when it hit the registered 60,000 mark. Data from Cryptorank.io show that the blockchain stood as the 4th largest in daily transactions among layer 2 networks, just behind zkSync Era, Arbitrum, and Optimism.
Base Now Ranks 4th in Daily TPS Among Layer 2 Solutions 🔵#Base Layer 2 launched its mainnet yesterday and is showing robust growth in active users and transactions. Now it ranks 4th by daily TPS (Transaction per second). pic.twitter.com/pnYF0tk7b0
The network launched on August 9 officially and has been pulling numbers despite the exchange being in a legal battle with the US SEC. It is being charged for acting as a securities broker despite not having had the chance to register ‘fully’ with the regulator regarding the complainants in the past.
However, the case is still far from being determined. Keep watching Fintech Express for details and updates as soon as they happen.
According to US laws, the US SEC is bound to give a decision regarding the approval process of an ETF 45 days after the initial filing. This week will see the end of those days regarding a group of Bitcoin spot ETFs filed with the regulator.
Galaxy Digital CEO Mike Novogratz expects this week’s decision to be an announcement of an approval delay but to be approved in the next 4 to 6 months.
The clock is ticking for US SEC to make its stand publicly on Bitcoin Spot ETFs, as 45 days are since a series of Bitcoin Spot ETFs were filed with the regulator at the end of this week. Consequently, Galaxy Digital CEO Mike Novogratz thinks the most likely decision would be a delayed response, but markets might see an active Bitcoin Spot ETF in the next 4 to 6 months.
A step closer to the US SEC Bitcoin Spot ETF decision?
Bitcoin has taken international markets by storm prompting big asset managers like BlackRock to soften their hearts and warm up to the idea and innovation behind the coin. In June, BlackRock led a series of traditional finance institutions to file for Bitcoin spot ETFs.
This week will see 45 days that the US SEC has to respond to the filings end. As such, it is expected to issue an official statement regarding the filings. However, as seen before, the regulator always takes its time before making such decisions, given there is a large number of filings at the moment.
Both Ethereum and Bitcoin spot ETF filings from TradFi institutions now have a count of over 20. As such, the US SEC would likely choose to delay the decision to approve any of them at this point.
Consecutive approval in 2024?
ARK Invest’s CEO Cathie Woods has called on the US SEC to approve all Bitcoin spot ETFs consecutively to avoid giving any company a market advantage over the other, given that most TradFi competitors have filed for similar assets. Her remarks called on the US SEC to ensure that no companies get a competitive advantage to make the markets fairer, as approving these assets may open the door to further mainstream adoption.
While this is possible, it still needs more time to become a reality. Galaxy Digital CEO thinks it could take 4 to 6 months for the regulator to approve these assets despite its 45 days to respond per US securities law ending this week. That pushes the possible approval dates to 2024.
According to "contacts" from inside BlackRock and Invesco spot Bitcoin ETF approval a matter of "when, not if" likely in "four to six months" — Galaxy CEO Mike Novogratz on earnings call this morning pic.twitter.com/TIhHC7xnHI
However, none of the above possibilities are guaranteed as no insider or official information from the regulator has been made public yet. Keep watching Fintech Express for updates on this story as soon as it happens.
Disney has reportedly created a task force to study how AI can be used to cut costs in the studio.
The development comes when Writers and Actors are on strike due to payment concerns and AI threats to their job security.
House of Mouse CEO Bob Iger has reportedly given the green light to create an AI task force to explore how AI can be used to cut costs in the company. The development comes at a time when the AI industry is blooming. Other companies like Netflix have also previously advertised for high-interest AI position(s).
Bob Iger brings together an AI task force as the WGA strike continues
A Reuters report indicates that a popular entertainment studio, Disney Studios, has created an Artificial Intelligence (AI) Taskforce to explore the best ways to employ the technology in edging out the competition, improving products, and cutting operational costs.
The report indicates that three insiders have vouched for the information, with one saying that competition is a key point in the recent decision by Disney that risks adding fuel to the continuing writers’ and actors’ strike.
House of Mouse has 11 job openings that seek to add AI and machine learning knowledgeable persons to its team and serve in different company branches spanning Walt Disney Studios, engineering, and theme parks.
Other studios like Netflix have also been advertising for highly paid AI-related positions, a key pressure point in the ongoing Hollywood strike involving anyone represented by the Screen Actors Guild, an American Federation of Television and Radio Artists. This strike seeks to add more revenue to the participants from the studios and ban the use of AI to safeguard their jobs; however, no real settlement has been reached yet.
Keep watching Fintech Express for updates on technology and other Fintech-related developments.
The Monetary Authority of Singapore released a report indicting a plan to commit S$150 M to explore and support emerging FinTech solutions like Web3.
This report comes at a time when the MAS has been increasing its efforts in regulating and boosting the blockchain industry in the region and via international cooperation with authorities like UK FCA.
On August 7, 2023, the Monetary Authority of Singapore released a report announcing that it committed 150 million Singaporean dollars to explore emerging Financial Technology innovations. This plan progresses the efforts by the regulator to foster the growth of the blockchain industry in the region.
Monetary Authority of Singapore to explore Web 3 and other Fintech innovations
The renewed Financial Sector Technology and Innovation Scheme (FSTI 3.0) seeks to accelerate and strengthen the country’s innovative culture by supporting cutting-edge projects.
An excerpt from the report reads:
FSTI 3.0 seeks to accelerate and strengthen innovation by supporting projects that involve cutting-edge technologies or with a regional nexus while doubling down on the Monetary Authority of Singapore’s commitment to promoting a vibrant technology ecosystem for the financial sector.
According to the report, the new FSTI 3.0 will include 3 new tracks, namely: “The enhanced Centre of Excellence track, formerly known as Labs Track, Innovation Acceleration Track, and Environmental and Social Governance (ESG) FinTech track.” it will also continue to support the advanced capability development in key areas like Artificial Intelligence and Data Analytics (AIDA) and Regulation Technology (RegTech).
The blog announcement said that the Monetary Authority of Singapore would mainly “focus on promoting AIDA adoption in smaller financial firms” and support the need of “less digitally mature firms” seeking to acquire RegTech solutions.
It also noted that applicants “will also be required to devote resources to talent developments” to strengthen the Singaporean FinTech talent pool. Regarding the new turn of events, Mr. Ravi Menon, the Managing Director at the Monetary Authority of Singapore, explained that it has always been in the interest of MAS to support the FinTech industry, and it looks forward to continuing its vision via the FSTI 3.0.
“Since 2015, the Financial Sector Development Fund (FSDF) has awarded $340 million as part of the FSTI program to drive the adoption of technology and innovation in the financial sector.
Transformative technology projects that MAS has piloted with the industry include SGFinDex, Project Orchid’s Purpose Bound Money, Project Veritas’ Responsible AI, green and sustainable finance through Project Greenprint, as well as large payment initiatives such as the cross-border payment linkage with Thailand.
Notably, FSTI 1.0 and 2.0 helped strengthen the digital capabilities of financial institutions, which served them and their customers through the COVID pandemic. With FSTI 3.0, we look forward to continued collaboration with the industry to advance purposeful financial innovation.” He said.
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