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Nov 15, 2018

From the desk of Fernando Guzman Cavero

                                                                    Dear friends

I will not to be able too be with you tomorrow Friday 16, 2018  due to technical problems I am experiencing with my Internet Provider, Therefore I'll will be in the expectation of how they try to fix these problems. I will be back with you as soon as the problems are fixed.

Please stay tune for the updates


Nvidia plunges after missing on revenue

Jordan Novet, Lauren Feiner

Jensen Huang, CEO of Nvidia 
Rick Wilking | Reuters
Jensen Huang, CEO of Nvidia
Nvidia stock fell 15 percent Thursday after the company reported earnings for the third quarter of its 2019 fiscal year, which ended on Oct. 28. Executives will discuss the results with analysts on a conference call at 5:30 p.m. Eastern time.
Here's how the company did:
  • Earnings: $1.84 per share, excluding certain items.
  • Revenue: $3.18 billion, vs. $3.24 billion as expected by analysts, according to Refinitiv.
With respect to guidance, Nvidia said it's expecting $2.70 billion in revenue in the fiscal fourth quarter, plus us minus 2 percent, excluding certain items. That's below the Refinitiv consensus estimate of $3.40 billion.
Overall, in the fiscal third quarter revenue was up 21 percent year over year, according to a statement.
Nvidia, like most other tech stocks, was hit hard in October, which was the worst month for the Nasdaq Composite Index since 2008. The stock is now up 4 percent since the beginning of the year.
In its second-quarter earnings, the chipmaker fell short of analyst expectations on guidance despite beating on earnings and revenue estimates.
The bulk of Nvidia's revenue comes from its gaming chip segment, followed by data center revenue. The company's cryptocurrency mining products suffered a hefty decline last quarter, which is expected to continue as it has become less profitable to use graphics processing units, or GPUs, for mining, according to a recent analysis by Susquehanna.
To mine cryptocurrency, computers compete to solve complex math problems in exchange for a specific amount of bitcoin or ethereum. But as both currencies have sunk in value, so too has this segment of revenue for Nvidia.
Nvidia's gaming business segment generated $1.76 billion in revenue in the quarter, below the $1.89 billion FactSet consensus estimate.
Nvidia's data center segment came in at $792 million in revenue, lower than the $821 million estimate.
Revenue for the company's professional visualization business segment was $305 million, surpassing the $284 million estimate.
This is breaking news. Please check back for updates.
WATCH: Nvidia reports earnings on Thursday, and traders are playing for an even bigger surge

SEC Charges Giga Entertainment Media, Former Officers and Directors With Fraud in Pay-For-Download Campaign

Washington D.C., Nov. 15, 2018 —
The Securities and Exchange Commission today charged Giga Entertainment Media Inc. and five of its former officers and directors—Gary Nerlinger, Jarret Streiner, Lawrence Silver, Alfred Colucci, and Charles Noska—with fraud in connection with a scheme to mislead investors.
According to the SEC’s complaint, between February and August 2016, the company bought at least 559,662 downloads from outside marketing firms to boost the profile of the company’s mobile app, SELFEO. These firms provided Giga with a shortcut to propel its app to the top of the Apple Store download rankings. But instead of disclosing the real cause of the app’s artificial meteoric rise, the company misled its shareholders into believing that this success was due to traditional marketing tactics like billboards and radio advertisements. The complaint alleges that when the company stopped paying for downloads in August 2016, the app’s rankings on the Apple Store plummeted. Rather than come clean about the fact that the spike in downloads was a result of paid download campaigns, the company, Nerlinger, Streiner, and Colucci lied and told shareholders that the number of downloads continued to grow at the same high rate. Further, Nerlinger, Silver, Colucci, and Noska lied and falsified documents to conceal Nerlinger’s role as Giga’s de facto CEO to prevent the investors from discovering his prior criminal conviction for mail fraud.
“Exposing Giga’s fraud should remind companies that they cannot buy a crowd and then claim to be popular,” said Melissa R. Hodgman, Associate Director of Enforcement. “Tech companies can buy clicks or employ other new marketing tools to improve their on-line image, but they have to be honest with investors when touting the fruits of such efforts.”
Without admitting or denying the findings, Giga, Nerlinger, Silver, Colucci, Noska, and Streiner consented to the entry of an SEC order finding that they violated the antifraud provisions, and a finding that Giga violated registration provisions of the federal securities laws. Colucci and Noska each agreed to a $25,000 penalty, and Streiner agreed to a $15,000 penalty. The court will determine what penalty Silver will pay and what disgorgement and penalty Nerlinger will pay. In addition, Nerlinger, Silver, and Colucci each agreed to a permanent officer and director bar, and Streiner agreed to a five-year bar.
The SEC’s investigation was conducted by Christopher R. Mathews and Edward B. Gerard and supervised by J. Lee Buck II in the Washington, DC headquarters. Nicholas A. Pilgrim will serve as the trial attorney.

EU FX I Currencies: British Brexit turmoil spooks investors, boosts dollar, yen


The dollar jumped and traders bought into the safe-haven yen on Thursday after Britain's Brexit deal with the European Union was plunged into uncertainty, spooking investors across currency markets.
The resignation of a series of British ministers in opposition to the newly-agreed Brexit withdrawal deal sent sterling plummeting more than one percent.
It also dragged the euro into negative territory as investors took fright at turmoil in one of the euro zone's biggest trading partners.
The dollar index, which measures the buck against major currencies, rose 0.19 percent to 96.98. The yen fell 0.07 percent to 113.53 against the dollar and was down 0.17 percent versus the euro.
Both currencies are sought out as safe places to park your cash in times of market flux.
"The dollar is benefiting from the sterling crash," said Manuel Oliveri, FX strategist at Credit Agricole.
Bond investors scrambled for safety, piling into German government debt.
British Prime Minister Theresa May had said she won the backing of her senior ministers for an EU divorce deal on Wednesday but many in her government are unconvinced.
Raab's resignation leaves May battling for survival as well as trying to win over her Conservative Party to support the EU withdrawal agreement.
The euro, was up 0.28 percent to $1.1338.
Sterling shed 1.59 percent versus the dollar to $1.2788 and 1.82 percent versus the euro to 1.1275.
The pound recovered slightly as May sought to sell the benefits of the deal in a speech to the British parliament.
"May has survived resignations before but coming on the back of her final deal, this could be far more damaging if others walk as well," said Craig Erlam, an analyst at OANDA.
"More worrying could be reports that enough letters may have been collected to trigger a leadership challenge. There's no guarantee this would be successful but you have to think that there is at least a belief that there's enough support."
Analysts said the dollar's gains on the back of the sterling slump were contained after some cautious comments about the economic outlook from Federal Reserve chairman Jerome Powell overnight.
Reports out of Italy that Prime Minister Giuseppe Conte was looking to work with the EU over his government's 2019 budget, which has been rejected by Brussels, to avert massive fines had earlier helped support Italian government bond markets and the euro.
The Australian dollar jumped 0.64 percent to $0.728 after upbeat jobs data. The New Zealand dollar rose 0.53 percent.
Both later gave up some of those gains as investors turned more cautious about taking on risk in currency markets following sterling's slide lower.

US bond yields hold steady after Powell comments

Spriha Srivastava

U.S. government debt yieldsheld steady Thursday following comments from Federal Reserve Chairman Jerome Powell.
The yield on the benchmark 10-year Treasury note was lower at 3.119 percent, while the yield on the 30-year Treasury bond was slightly higher at 3.372 percent. Bond yields move inversely to prices.
Sentiment across the globe has improved on reports that China has delivered a written response to U.S. trade demands. U.S. government sources told Reuters Wednesday that China had sent a response to U.S. demands on the ongoing trade negotiation, giving hopes to investors that the two sides might bring an end to the spat.
Sterling plunged by over 1 percent against the dollar Thursday morning after U.K. Brexit Secretary Dominic Raab resigned from his post. This piles yet more pressure on U.K. Prime Minister Theresa May as she tries to get her draft Brexit agreement through Parliament.

Oil Price at Close Report: Oil ekes out a gain, settling at $56.46, despite big jump in US crude stockpiles.

Oil futures rose on Thursday, steadying after this week's steep losses as fuel stockpile declines in the United States helped offset concerns about a potentially oversupplied market next year.
Prices have also been supported by OPEC signaling possible output cuts in 2019.
Brent crude oil futures rose 42 cents to $66.54 a barrel by 2:22 p.m. ET, while U.S. crude futures ended Thursday's session 21 cents higher at $56.46.
Prices pared gains after data from the U.S. Energy Information Administration showed crude inventories jumped 10.3 million barrels in last week, the biggest weekly build since February 2017. Analysts in a Reuters poll had expected an increase of 3.2 million barrels.
Gasoline stocks fell 1.4 million barrels, while distillate stockpiles drew down by 3.6 million barrels, the EIA data showed.
"Product draws are helping to offset some of the bearish brunt of a double-digit build - both gasoline and distillate show a jump in implied demand," said Matt Smith, director of commodity research at ClipperData.
OPEC, led by Saudi Arabia, is considering a cut of up to 1.4 million barrels per day (bpd) next year to avoid the kind of build in global inventories that prompted the oil price to crash between 2014 and 2016.
"Oil prices shrug the (EIA) data off so far," Commerzbank commodities analyst Carsten Fritsch said. "One explanation could be that a substantial production cut by OPEC becomes more likely."
Earlier in the day, two-high ranking Russian sources told Reuters that Russia wants to stay out of any oil-production cuts being touted by some of its partners in the OPEC-led supply pact.
"(A cut) helps, but based on my balances, I think we'll need to see 1.5 million bpd at least for the first half of the year. Words aren't going to work. The market is going to need to see action as well," said ING commodities strategist Warren Patterson.
The International Energy Agency and OPEC this week warned of a sizeable surplus at least in the first half of 2019, and possibly beyond, given the pace of growth in non-OPEC production and slower demand in heavy consumers such as China and India.
The oil price has lost about a quarter of its value in only six weeks, pressured by a slowing global economy and soaring crude output led by the United States.
"Asian refiners and consumers we speak with are mentioning initial concerns of slowing demand," said Mike Corley, president of Mercatus Energy Advisors.
U.S. bank Morgan Stanley said on Wednesday that China's economic "conditions deteriorated materially" in the third quarter of 2018, while analysts at Capital Economics said China's "near-term economic outlook still remains downbeat".
China is the world's biggest oil importer and the second-largest crude consumer.
WATCH:Here's what drives the price of oil