Bitcoin Buyers Could Shift Toward ETFs to Counter Security Issues — Market Talk
0913 GMT - Bitcoin buyers could move toward exchange-traded funds to counter security threats instead of buying directly, says Franklin Templeton's head of crypto, Christopher Perkins. The digital assets sector endured its biggest ever breach following the $6.3 billion hack into crypto exchange Binance on Oct. 29. "We've had a lot of issues with security across the industry," he says. "What we're seeing is even some of the most sophisticated crypto whales noting the danger and leveraging an intermediary." Despite the security threats, Perkins says the era of "stagecoach robberies" in the crypto industry is coming to an end. ([email protected])0859 GMT - Attention is on the U.S. consumer price index data due to be released on Tuesday, and the producer price index data due on Friday, after last week's U.S. jobs data came in stronger than expected. Investors have raised their expectations of the U.S. Federal Reserve increasing interest rates in December to a 81% chance currently, from 73% before the jobs data were released, LSEG data show. The inflation data could offer clues on the possible pace of future Fed rate hikes, Mizuho's Evelyne Gomez-Liechti says in a note. ([email protected])0831 GMT - U.S. and Europe credit spreads could face high volatility in the near-term due to uncertainty around the AI industry, Societe Generale's Juan Valencia says in a note. Nonetheless, credit assets are favorable over the long-term as companies continue to post strong earnings and corporate debt levels remain manageable, Valencia says. Investors fear that the AI sector could face tighter regulation after Democrats gained control of the U.S. Senate and House of Representatives in last week's midterm elections. ([email protected])0829 GMT - The cryptocurrency world is about to face the largest challenge to encryption in its history, according to Christopher Perkins, Franklin Templeton's head of crypto. Developments in quantum computing and artificial intelligence mean computer capabilities will soon be able to break public-key encryption, and the security of digital assets including bitcoin could collapse. "The time is now, and the threat is real," he says. "We're also seeing great progress across crypto ecosystems in putting forth postquantum cryptography solutions." The U.S. government set a deadline of Dec. 31, 2030 for federal agencies to move high-value assets to postquantum cryptography. ([email protected])0829 GMT - China's tighter tax enforcement is likely to continue over the next few years, Goldman Sachs says in a research note. Falling land sales revenue and elevated government debt have increased the need for new revenue in recent years. Despite slower real GDP growth, on-year tax revenue growth for the first nine months of 2026 rose to 6.1% from 0.8% for 2025. "We believe tax revenue increases are therefore likely to remain a structural trend over the coming years and decades," GS says. However, significant, broad-based tax rate hikes are unlikely, the bank adds. ([email protected])0822 GMT - Eurozone government bond yields edge lower in opening trade, as markets tentatively stabilize amid a fall in oil prices. The current quiet pattern of trade contrasts with last week when the Democrats' sweep in the U.S. midterm election prompted sharp falls in yields, before Friday's robust employment data led to rises. "Short-term global bond yields remain on a downward trajectory if oil prices continue to decline despite a stronger-than-expected U.S. labor market report released on Friday," Danske Bank's Jens Peter Sorensen says in a note. The 10-year German Bund yield falls 0.3 basis points to 3.244%, according to Tradeweb. ([email protected])0821 GMT - Yields on U.K. government bonds, or gilts, decline as lower oil prices ease inflation fears. Brent crude falls 1.6% to $96.8 a barrel as ongoing negotiations around the U.S.-Iran conflict raise prospects of an end to the war. The drop in oil prices is helping government bond yields to fall. Ten-year gilt yields fall 1.3 basis points to last trade at 5.138%, Tradeweb data show. ([email protected])0811 GMT - Fixed income investments look appealing as they offer favorable returns and diversification, Edmond de Rothschild Asset Management's analysts say in a note. Stock markets faced a sharp selloff last week due to concerns about a slowdown in AI investment following the Democratic sweep in U.S. midterm elections. Government bonds rallied as investors moved funds away from risk assets to safe-haven investments. "We have also reinforced fixed income exposure: carry and diversification now look interesting." ([email protected])0806 GMT - The Philippines economy grew at a slower pace in 3Q but there are welcome signs that the drag from the corruption scandal is ending, says Capital Economics' Gareth Leather. The main factor behind the slowdown was household spending, reflecting the squeeze from higher energy prices. Other parts of the 3Q release were more encouraging, including exports. While the government is moving to restart stalled infrastructure projects, fiscal policy is likely to be tightened to curb a rising debt-to-GDP ratio, Leather says. And while the worst may be over for investment, recovery is likely to be slow as tepid business confidence holds back spending by companies. CE expects GDP growth of around 3.0% this year. That weakness backs its view that the central bank is probably done tightening despite higher inflation. ([email protected])0801 GMT - Investor appetite for corporate bonds remains strong as companies supply more debt. Volkswagen issued around two billion euros ($2.2 billion) in the euro credit market, attracting over 16 billion euros in offers, a sign of strong investor demand, Edmond de Rothschild Asset Management analysts say in a note. Meta also issued $15 billion in dollar bonds and about $10 billion in debut euro bonds. ([email protected])0751 GMT - Euro credit spreads tightened last week even as corporate debt issuance remained heavy. Meta raised nine billion euros ($10 billion) in its debut euro bond sale last week. Last week's Democratic victory in the U.S. midterm elections raised prospects of de-escalation in the U.S.-Iran conflict, calming investor nerves. Euro investment-grade credit spreads tightened two basis points to 102bps, CreditSights analysts say in a note. ([email protected])0740 GMT - The euro could depreciate as the political and fiscal challenges in France could weigh on the currency, Convera analysts say in a note. The early departure of European Central Bank President Christine Lagarde also adds uncertainty, they say. "The euro's broader backdrop remains weak, however, leaving little for the ECB to offer in terms of support." The euro rises 0.3% to $1.1169. ([email protected])