 All right, very good morning is Wednesday the 20th of October and as you can see here The S&P 500 has had a hey a five-day up streak and in fact that is the longest streak we've had since August What could possibly go wrong? That being said then we'll talk a little bit about the equities Space we're also going to talk about Netflix earnings Which got a bit of a squig game boost last night and we also had the Bitcoin ETF Debut where volumes topped 1 billion marking one of the biggest ETF launches in history We've also got some Fed commentary update on the reconciliation bill in the US and we've got all of your data China, what's the latest expectation around a triple R cut? We've also got Rishi Sunak UK Chancellor Said to be thinking of in the coming budget slashing the tax charge on UK banks We've already had UK CPI out, which was actually a touch soft and unexpected And then we'll look at the day ahead. So that's what's on the agenda But before I begin with looking at the charts and the overall sentiment for this morning Don't forget if you're a student whether college undergrad graduate or masters Check out amplify me.com If you haven't already done so you can book yourself onto one of our free open public simulations to go through our Latest technology as a market maker sales trader or a hedge fund manager and to see how you perform Based on your performance metrics alone, not your background or where you study or what your static study So really great opportunity to get some hands-on practical experience. I know for students It's kind of a bit of a chicken or egg scenario. How do you get experience when you don't have any experience? So hopefully this really fits that void and then also you can sign up and get access as well for free to our Portal which on the hub looks a little bit like this and you can see I did a video last night on the Bitcoin ETF debut But here there's lots of cool stuff as well that you can access some market analysis Industry speakers that I interview and also I've been updating quite a lot on the careers section in the last couple of days So I did a conversation here about what is a virtual assessment center mock interviews things of that nature So definitely worth checking out Otherwise, let's get straight to business then so what exactly is going on this morning and pretty flat open for the dollar index And so that's respected in the major pairs roughly trading trading near unchanged Cables had a little bit of a downtick as you can see here as we've gone through 7 a.m. This morning as I mentioned UK CPI was a touch soft and expected coming in at 3.1 percent in September against the expectation of 3.2 So just coming back down towards the low end of its APAC range and the pivot level in the futures at 137 83 otherwise then Equity index futures are slightly negative and you can see here that's just down about 50 getting close proximity to testing the lower Bound of the opening trade from yesterday morning in the futures market the Nasdaq We managed to close above quite a key level which we were watching yesterday, which was that 15 347 that rectangle you can see here on the daily chart And so be interested to see whether or not now that provides a bit of a flaw for price whether or not we could push higher or Consolidate from here But that was quite a key inflection point as you can see over recent weeks trading activity But looking on a 30 minute as you can see we have Moderated in the gains over the course of the APAC session and just finding a bit of near-term support around the pivot Which was Asia Pacific low as well as a support point and previous resistance level from the prior session before the break higher that we saw on Tuesdays trade elsewhere oil just very much in consolidation mode for the time being after that Big run-up that we've had so really defined by 81 83 price handles for the time being as you can see here being fairly well Respected and we're trading about mid-range of that at the moment and then t-notes Pretty flat touch lower down two and a half ticks slight uptick in yield seen in the overnight session But let's get straight to a couple of headlines and gonna start off with Bitcoin I did put out a specific video on this last night So if you're interested just check that out on the on the YouTube channel or on the Amplify me hub Otherwise in summary pro shares Bitcoin strategy exchange-traded fund This was a kind of a watershed moment for crypto A lot of commentators have been saying there's been well overdue in having a Bitcoin related ETF and volumes topped 1 billion US dollars on their first day ranking the investment vehicle as one of the top ETF launches that we've ever had in in history Bitcoin then as such Getting a little bit of a bump higher as well Perhaps some concerns about a buy the rumor sell the fact type because this Pro-share launch has been in the pipeline for some time It already had the kind of weekend approval from the SEC Gensler And so perhaps there's going to be a little bit of a fading of that run-up that we've had quite aggressively in Bitcoin through October There was a little bit of that at the open But then it's continued to push up and now we're literally within striking distance of record highs again In Bitcoin as you can see here from this chart trading According to Bloomberg did appear though to be dominated by smaller investors and high-frequency trading firms Noting the absence of any large block trades. So if anyone's new to markets What that's basically saying is that a block trade is just generally a large order. So instead of an individual trading One Bitcoin it could be then an institution coming in and they're buying nominal multiple tens hundred millions dollars worth in size known as blocks and so you can identify generally the market participants in play and the fact that there's Lack of large block trades would suggest a lack of institutional take up on that first day, but quite frankly, I don't find that too Surprising it's like anything whether it's an ETF a single stock every time a new IPO or product launch There's always going to be a degree of uncertainty and volatility around the day of release And so I think I don't think that's too surprising. It's just a bit of a safety mechanism I think on the institutional side to let the dust settle before then committing but overall long-term This is a very positive thing in terms of crypto adoption We've got more launches expected from like likes of grayscale and Valkyrie I think of other Bitcoin related ETFs and so I'm sure over the longer term The Bitcoin balls will be will be happy But otherwise quit look elsewhere Netflix their earnings came out after market And they did see a bit of a jump initially about 4% before moderating that move a little bit The stock is up some 18% on the year and has trailed the S&P a little bit But why did the company move higher? Well for Netflix It's all about subscriber numbers and subscriber growth and they had actually their strongest subscriber growth of the year Thanks, of course to the popularity of squid game as we know 142 million member households have started watching squid game and I was reading at the weekend what it means by started I think it just mean as long as someone's watched two minutes at least of an episode It qualifies then there's having watched squid game So that's how that figure is measured and it does mean then as we know and it's been well talked about It makes it the most viewed new show in Netflix history So company added 4.38 million subscribers in Q3 Expectations were for just 3.72 million The question mark goes then of course is this is always the way of which Netflix earnings tend to go It's kind of you get these big numbers kind of like when the pandemic set in and everyone was locked at home Netflix Subscriber numbers went through the roof But obviously the only way from there is it to go down or the momentum to slow at least because we're not going to Permanently remain in lockdown. So unless they start pulling out some squids Every couple of months, which is unlikely to be the case that you have such extreme global worldwide success The company now Again, it goes into that chicken and egg scenario Do they need to pump in more money to get more chance of then having another successful hit The one thing for sure is foreign film investment, particularly in the Far East is probably going to increase for that firm going forward All right, just going through the other headlines A Fed Speaker Waller has come out and said the Fed should begin tapering and bomb buying program next month Though interest rates increases are probably still some time off and it's the latter that's quite important again Splitting out the two so that the market doesn't get too ahead of itself that meaning that the commencement of tapering which we're very much expecting in literally Two weeks less than that time at beginning of November meeting flat to be formalized Does not mean that they're going to be hiking rates anytime soon. That's still some way off So not not really too new in that respect, but worth being aware of And then US politics haven't heard much about this in a while, but I thought I'd update you because as you can see Joe's looking a little bit strained and tired at the moment But White House and Democrats are nearing a deal on reconciliation package And it could be announced in the coming days Although the top line number is yet to be agreed and so just giving a bit of background context on this both the Senate Of course and the House have passed a strict party line votes the budget reconciliation for the full year 2022 That authorizes the budget reconciliation bill of up to $3.5 trillion of course, this is what we've seen before a few weeks ago, but there has been internal Agreement among Democrats There's never been I should say internal agreement with the Democrats about the specific and exact size and shape of that legislation And so Democrats need unanimous support in the Senate and near unanimous support in the House To get a reconciliation bill enacted Pelosi is implicitly assuming a breakthrough in these in this stalemate by October 31st enabling the infrastructure bill then to come To vote so quite a lot of moving parts here. It's kind of one thing About the passage of these bills that has to go through various different levels of approval And although they might have approved it on a top level to that amount Which kind of gives the market a bit of a sigh of relief that these things are moving forward There's still various sticking points then to get this over the line. So we continue to monitor The other thing we had last night overnight as I said oils in a bit of consolidation mode at the moment and the latest API crude oil infantry data hasn't really had a much in a way of a degree of impact The headline figure came in showing a build of 3.3 million slightly large and expected cushing draw though the opposite down two and a half Gasoline was a drawdown of three and a half million a deeper drawdown than expected It's a little bit of a mixed bag there and that will be the prelude then for the DOE numbers. We'll get a bit later on today Final two articles to be aware of our headlines You've got in China a lot of talk of course recently about somewhat economic slowdown That we've been seeing COVID outbreaks across different provinces and so on and that China might well go down the route of further reserve requirement ratio cuts in order to free up more liquidity for the banking system However, the PpoC's house newspaper Came out overnight and basically said the expectations for the triple R cut have eased Financial system liquidity is reasonably ample meaning that that triple R cut may not be necessary And the fact that that is coming out of the PpoC's house paper The way things work in China. They're pretty explicit either via the PpoC or state-run media If that's what they say, that's what they mean. There's there's no grey in between. So Looks like triple R is off for the time being The Chinese Yuan briefly did rise to its highest point against the dollar In more than four and a half months overnight After the central bank set a much stronger daily fixing for the currency And then in the UK finally the chancellor Rishi Sunak Will slash a tax surcharge on bank profits by more than 60% in next week's budget in an effort to keep The city of London competitive in the post-proxy environment The chancellor will cut the surcharge from 8% to 3% from April 2023 according to people Briefed on the budget. So this is not formal This is what's being speculated according to those familiar with the talks But as ever no smoke without fire and so this is probably very much the case And so be interested to see how UK banks perform today and then wrapping things up on the calendar We've already had the UK CPI data So the HICP numbers coming out of the eurozone at 10 o'clock of final reading So not expecting too much from that. So that takes us into the afternoon We have CAD inflation, but no real major US data And then we get the oil inventories at 3 30 this afternoon From a speaker's point of view ECB's elders and speaks at 828 50 and that's London time this morning And then there's a Fed event on racism the economy and the wealth division Includes Fed voting members Bostick Evans and non-voting members Bullard and kashkari And they'll all be speaking at the same event from 5 p.m. London time today Feds quals and feds bullards speak again at 6 and 6 45 Fixed income supply coming out of UK Germany and 24 billion dollar 20 20 year bond auction the US 6 p.m. And then from an earnings perspective Yeah, some of the bigger names in the US Biogen Verizon in Switzerland you get Nestle Roche You've also got the chip maker as ML as ML worth looking out for as well this morning ahead of the cash equity Open in Europe and that is it. So I'll let you guys get on with the day Thanks for listening and I'll see you same time tomorrow. Take care