SVET Reports
Monday's Markets Update (January 15, 2024)
On Monday, Martin Luther King Jr. Day saw BTC and ETH trading flat at $42.7K and $2.5K, respectively, as markets remained closed. In the EU, stocks were marginally in the red as regional industrial production fell. In commodities, natural gas prices corrected slightly after a sudden +20% surge due to weather reports showing the Arctic front engulfing North America.
Details
Crypto
Morgan Stanley's analysis (source) highlights the significance of CBDCs and stablecoins in global finance. The interaction of traditional fiat currencies, Bitcoin, e-money, and stablecoins will shape international trade and finance. CBDC-enabled smart contracts offer innovative solutions, signaling a transformative shift in global finance.
Solana-based memecoins continue to attract over-hyped investors (source). Myra - another Solana-based dog coin surged almost 69,000% within 24 hours of trading, aiming to join Solana's top memecoins such as Bonk and dogwifhat. Dubbed as "the woman behind MYRO," the meme cryptocurrency has seen over $4.5M in trading volume.
Digital asset investment products saw US$1.18bn inflows last week, with trading volumes at a record high of US$17.5bn (source). The US had US$1.24bn of inflows, while minor outflows were seen in Europe. This inflow did not break the record set at the launch of the futures-based Bitcoin ETFs.
World Markets
Euro Area industrial production fell by 6.8% in November 2023, Eurostat surpassing market forecasts and marking the ninth straight month of decline. The average from 1991 to 2023 was 0.99%, with a high of 41.70% in April 2021 and a low of -28.30% in April 2020.
In November 2023, the Euro Area trade surplus was EUR 20.3 billion (Eurostat), with imports falling by 16.7% and exports decreasing by 4.7%. The European Union also had a trade surplus of EUR 25.5 billion, with imports declining by 16.1% and exports remaining stable. Notably, trade deficit narrowed with Russia and China.
The CAC 40 index dropped 0.72% to close at 7,411 amid cautious sentiment in Europe. Investors are monitoring global economic and monetary policy outlook, with attention on the World Economic Forum in Davos. Hopes for accommodative borrowing conditions were dampened by suggestions that the ECB might refrain from cutting interest rates this year.
Commodities
US natural gas futures fell 5% to $3.15/MMBtu on Monday, after a 14.5% increase last week. Traders are closely monitoring weather and demand forecasts due to a bitter Arctic cold front engulfing North America , with record-breaking low temperatures expected. However, gas in storage currently exceeds the seasonal average by 11.6%, and meteorologists forecast warmer temperatures for Jan. 22-26 in the US.
Comment: World Economic Forum 2024 - Analyzing Key Themes and Unaddressed Realities.
The World Economic Forum 2024 is set to tackle four major themes: the Fractured World, Jobs, AI, and Climate.
The first theme delves into geopolitical tensions, with a spotlight on conflicts in Ukraine and the Middle East. The US election's potential impact adds a layer of uncertainty.
The second theme explores concerns about job displacement due to automation, rising inequality, and issues of inclusion. A notable session on crypto, titled "Clear-Eyed about Crypto," hints at anticipated calls for more stringent regulations.
The third theme, AI, encompasses various tech-related topics (the Tokenization Economy, TradeTech's Trillion-Dollar Promise, Quantum's Black Swan, The Battle for Chips, Biology as Consumer Technology, etc), raising questions about the role of technology in shaping our future.
The fourth theme, Climate Change is addressed with usual topics like Brazil's Sustainable Transformation and Working in Harmony with Nature.
However, amidst these discussions, a critical question emerges: How can meaningful change occur within the current centralized economic regime controlled by misanthropic megalomaniacs?
One glaring omission in the forum's agenda is a lack of self-reflection and acknowledgment of responsibility for the issues they aim to address. The Forum appears hesitant to confront the systemic problems that may contribute to global challenges. Moreover, the absence of discourse on altering governance mechanisms, particularly the concentration of presidential authorities, raises concerns.
The oversight of the World Economic Forum is not addressing the root causes of the challenges discussed. There's the reluctance to consider alternatives to the current governance structures, which are central to the chaotic state of affairs worldwide. Obviously, things may worsen before improving.