Jul. 6 Markets Report: Power Snatch Bids
Today's report is brought to you by the letter 'P.' Prices are dropping, projections are down, and peace is fading. Let's add a 'parachute' to that list because the economy is entering freefall.
Updated Jul 7, 2022
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News of the day
News of the day
The new iron veil
- Russian troops have withdrawn from Snake Island where, in February, a Ukrainian soldier famously told a Russian warship to "go fuck yourself."
- Sweden and Finland got one step closer to NATO as 30 members of the military alliance met in Madrid to sign off on the Nordic countries' accession protocols.
- Germany experiences its first monthly trade deficit since 1991 as record inflation hits the Euro which slid to 20-year lows against the US dollar.
Scotus breaking precedents
- The U.S. Supreme Court continues to strike down judicial precedents in the wake of Roe v Wade being overturned.
- SCOTUS ruled to cut the Environmental Protection Agency's authority to limit carbon emissions from power plants, further weakening federal climate change regulations.
- The high court also decided to subordinate Tribal law enforcement jurisdiction to the federal government, thus undermining Indigenous sovereignty according to Native law experts.
Stocks & Bonds
Stocks & Bonds
- Monetary policies in leading global economies are expected to tighten to gear up for the recession looming over the coming year—they're all aiming to take down inflation.
- Swiss franc inflation rate reaches a 29-year high at 3.4% and prompts the Swiss National Bank to hike the interest rate for the first time in 15 years. The SNB doesn't expect the inflation rate to return within its target range until the first quarter of 2025.
- Markets correct following the Fourth of July long weekend as the Dow, S&P 500, and NASDAQ all slide.
- Credit Suisse lowered its S&P 500 end-of-year target to 4,300 from 4,900—an adjustment the investment bank claims was made to reflect the impact of inflation and not in anticipation of a recession.
- Silicon Valley braces itself for a tech downturn as a tougher fundraising environment and more expensive capital has put pressure on companies to turn a profit.
- Energy: -4.32%
- Real Estate: -2.29%
- Health Care: -2.47%
- Telecom: -0.46%
Archer Daniels Midland Co.:
- Coinbase allegedly signed a million-dollar contract with the Department of Homeland Security (DHS) to provide geo-tracking and other user data to the U.S. Immigration and Customs Enforcement Agency (ICE).
- Financially troubled crypto lender Vauld freezes user deposits and withdrawals just weeks after competing crypto lending platform Celsius halted operations.
- Crypto brokerage Voyager Digital suspended all trading, deposits, and withdrawals before receiving a $500 million line of credit from Sam Bankman-Fried-owned Alameda Research firm.
- Bankman-Fried, founder of the FTX crypto exchange, also issued a $250 million credit line to the embattled crypto lending platform Blockfi.
- Lazarus, a hacker group with ties to North Korea, is allegedly behind an exploit that drained $100 million in crypto assets from Harmony's Horizon Bridge.
Blue Chip Cryptos
- Bitcoin's price dropped 37.9% last month, making June 2022 BTC's worst-performing month since 2011.
- Glassnode reported that Bitcoin holders, both large and small, are accumulating the cryptocurrency while miners are pressured to sell as they struggle to realize profits.
- The Rocketpool decentralized liquid staking protocol reached the 200,000 ETH milestone—illustrating both confidence in Ethereum's proof of stake future and a demand for decentralization.
- HTC launched a Web3 smartphone with Ethereum and Polygon blockchain integrations. Dubbed the Desire 22 Pro, the device features VR and metaverse capabilities and is a competitor to Saga, Solana's Web3 phone.
NFTs & Metaverse
NFTs & Metaverse
- EU Lawmakers set their sights on NFTs as they propose licensure requirements for digital asset marketplaces so that such platforms adhere to anti-money laundering laws.
- Leading Chinese tech firms introduce self-imposed KYC requirements for NFT trading after the government tentatively ruled to not include NFTs in its 2021 crypto crackdown.
- The Meta-owned social media platform Facebook is beginning to support NFT integration for Ethereum and Polygon. Meta plans to expand its web3 wallet support to the Solana and Flow blockchains, too.
- The Ethereum Name Service domain 000.eth was sold on Sunday for 300 ETH, or $320,000. This makes it the second-most valuable ENS domain following paradigm.eth which sold in October 2021 for 420 ETH, or about $1.5 million at the time.
NFTs in Sports
- Vincenzo Sospiri Racing (VSR), a GT racing team officially sponsored by Lamborghini, announced that they're partnering with the Go2NFT platform to launch a program that will certify racecar parts using NFTs.
- The Web3 fantasy soccer game on Ethereum called Sorare saw a near 8x increase in 24-hour sales volume after signing PSG star forward Kylian Mbappe as its first player ambassador.
- U.S. patent filings by global sports apparel brand Nike reveal the company's intentions to integrate virtual objects into video games—suggesting the brand will sell NFT representations of its clothing. This isn't surprising coming from the brand that, last April, created Cryptokicks, a collection of 20,000 NFT sneakers. One of of the virtual kicks even sold for $134,000.
The six figure shoe
- While housing supply increases sharply by nearly 20%, real estate prices aren't dropping like it's hot. Housing prices stay flat as real estate demand wanes.
- Summertime is bringing a post-pandemic resurgence in the luxury rentals market, making prices higher at desirable seasonal locations. If you want to get in on the action with your own income property, check out Roofstock.
- Housing got 30% more expensive than last year but Fed rate hikes could lead to a correction in the real estate market, Redfin's chief economist Daryl Fairweather suspects.
- However, Fairweather warned that higher interest rates combined with recession fears could raise building costs and strangle the market's housing supply.
- The price of WTI Crude oil dips below $100—the benchmark indicating lessened demand for petroleum products follows unprecedentedly high gasoline prices.
- Brent Crude prices saw a significant decrease despite labor strikes by Norwegian offshore workers threatening supply.
- Political unrest in Libya has hurt the OPEC member's chances of achieving its production quota.
- Electric car prices are up across the board as the average price hits $54,000. This means EVs are, on average, about $10,000 more expensive than their gas-powered counterparts.