The housing market in Greater Vancouver is making headlines as home prices in July surged compared to June. According to The Real Estate Board of Greater Vancouver, the composite benchmark price rose to just over $1.2 million, marking a 0.6% increase from the previous month and a 0.5% rise from the same month last year. The most exciting news comes from the sales figures, which saw a substantial 28.9% increase compared to the previous year, totaling 2,455 transactions in July. Andrew Lis, the board’s director of economics and data analytics, noted that this surge in sales is linked to the shock felt in 2022 due to the Bank of Canada’s significant rate hikes. “Last July marked the point when the Bank of Canada announced their ‘super-sized’ increase to the policy rate of one full percent, catching buyers and sellers off guard, and putting a chill on market activity at that time,” Lis said in a news release. But that’s not all! The real excitement is in the sales figures. Brace yourselves – the market saw a whopping 28.9% surge in sales compared to the previous year, totaling a jaw-dropping 2,455 transactions in July. Andrew Lis, the board’s director of economics and data analytics, can hardly contain his excitement. He explained that this surge in sales is like a phoenix rising from the ashes of 2022 when the Bank of Canada dropped a rate hike bombshell. “Last July marked the point when the Bank of Canada announced their ‘super-sized’ increase to the policy rate of one full percent, catching buyers and sellers off guard, and putting a chill on market activity at that time,” Lis said in a news release. So, folks, in the world of Vancouver real estate, it’s not just hot – it’s scorching! Don’t blink, or you might miss out on this sizzling market action!
Just a couple of hours north of Ottawa, put on a hard hat and an eye-catching orange vest, and you’re diving headfirst into the action in the race to power the new, eco-friendly era. When you think of the move towards a greener, lower emissions world, mining probably isn’t the first thing that pops into your head. But tucked away in electric vehicles, solar panels, and hydrogen fuel storage are metals and minerals sourced from places like the Lac-des-Îles mine in Quebec. Owned by Northern Graphite, this graphite mine is just one of many ventures aiming to unearth what’s now officially known as “critical minerals” – stuff that’s super crucial for the economic and strategic future of nations. Lac-des-Îles is North America’s go-to spot for graphite mining, and it’s Canada’s contribution to an industry that’s mainly dominated by China. Experts and industry enthusiasts reckon Canada has all the right cards to become a major player in the critical minerals game. But here’s the catch – it needs a bit of a makeover when it comes to investment and regulations to make that happen. For companies like Northern Graphite, the short-term solution is a big pile of cash. Hugues Jacquemin, the CEO of Northern Graphite, spilled the beans during a tour of their Quebec facility. They’re itching to open a mine in Bissett Creek, Ontario, to churn out graphite for EV batteries. The hiccup? They need a whopping $150 million to kick things off. Jacquemin explained, “No one’s willing to take on 100% of the risk. We need someone to step in alongside investors and share some of that risk. Right now, there’s no demand for battery materials in Canada or the U.S., so we need a push to get the supply chain rolling and be ready when the market comes knocking three or four years from now.” They’re counting on some big-time financial help from the federal government, although nothing’s set in stone yet. Speaking of the feds, they say they’re all in when it comes to building a critical minerals industry in Canada. They’ve even dished out their official strategy for it. Natural Resources Minister Jonathan Wilkinson spilled the beans, saying, “We need these critical minerals to navigate the energy transition and battle climate change. We’re game to work with companies, but we can’t be the only money tree.” The government’s got a few aces up its sleeve, like the Canada Growth Fund, fresh tax breaks for green investments, and some pocket change for infrastructure that’ll make these projects a breeze. But here’s the plot twist – the long wait times to get a mining project up and running in Canada have some critics groaning. For instance, Northern Graphite has held onto Bissett Creek since 2012, and it’s still not in business. Wilkinson admitted that while a typical mining project takes around 12 to 15 years, it’s still too long. They’re aiming for something closer to five or six years. Ian London, the executive director of the Canadian Critical Minerals and Materials Alliance, said Canada’s got the pieces of the puzzle, but there’s more work to be done. He added that “prospective customers want operating facilities, not aspirations.” The rocky road to mining also comes with some environmental and Indigenous community speed bumps. On the green front, groups like Environmental Defence worry that mining projects could spell disaster for the environment. They say it’s crucial to strike a balance between unlocking emissions-cutting tech like EVs and preserving the environment. The role of Indigenous communities in these projects is another tricky bit. Some communities, like the Neskantaga First Nation, say they weren’t properly consulted and have protested certain projects. Mark Podlasly, from the First Nations Major Projects Coalition, said Indigenous voices should be included from day one in decisions about projects. Lastly, mining’s reputation isn’t exactly sparkling. Canadian companies often face criticism for their overseas operations. Kirsty Liddicoat, COO of Northern Graphite, noted that the industry needs a bit of a makeover when it comes to social acceptance and attracting talent. She said, “Mining as an industry is poorly understood and doesn’t have the best reputation. We need to attract the brightest minds to help tackle the world’s biggest problems and make this shift.” So, while the journey to secure critical minerals is filled with twists and turns, one thing’s for sure – it’s one heck of a ride! 🚀🌍
Mon Technicien, the IT services wizards, have turned up the fun factor for their 30 employees. Now, they’re handing out golden tickets to their very own 930-square-meter island in the Laurentian Mountains. Why? Because Sylvain Dion, the head honcho at Mon Technicien, decided it was time to level up their employee benefits game. Dion said, “We saw the chance and we pounced on it!” And sure, the island might be the crown jewel of their perks, but it’s all part of their grand plan to keep their team grinning from ear to ear and absolutely loving their jobs. So, what’s the scoop on this island escape? Picture a cozy two-bedroom cabin that’s big enough to host eight people, complete with a barbecue, a pedal boat, a dinghy, and a whole bunch of water sports gear. It’s like a dream hideaway, just about 550 meters from the mainland. Now, on the facilities: they’ve got an outhouse with a composting toilet, but hold onto your flip-flops because Dion promised they’re giving it a major upgrade. And there’s this gas-powered energy system, but guess what? They’re swapping that out for some cool eco-friendly solar panels. Now, about the price tag of this paradise, Dion’s keeping that locked away like a treasure chest. But here’s the deal for their employees, or as they like to call them, “players.” They can use an internal system to book the cabin, and even though they don’t pay upfront for their island stays, it’s still on the taxman’s radar. Another sweet part: any work-related trips, like team getaways, come at no cost to the employees. But of course, there’s always a small bump in the road, according to Dion: getting to the island. Right now, they’ve got a handful of little watercraft for ferrying folks back and forth, but they’re eyeing a pontoon or a bigger boat. Oh, and yeah, employees will need some licenses to captain those. Despite this little transport hiccup, this island oasis has been a hit, especially with the public. Dion mentioned, “Whenever we mention ‘island,’ everyone’s eyes light up like it’s a magic show!” And even though Mon Technicien has never had trouble getting top talent (they just added 10 more to the team), Dion’s pretty sure that offering private island adventures will make them even more irresistible. “It’s going to be a game-changer for attracting talent,” he said. “We’re totally gonna ride this wave!” 🏝️😎 Regenerate
Hold on just a second or two, not everyone’s jumping on the Nvidia earnings bandwagon, and here’s why one analyst thinks this chip maker is “totally over the top.” So, Nvidia just dropped their Q2 earnings bombshell, raking in a crazy $13.5 billion in revenue, and their stock did a happy dance with a 7% jump. But before you go thinking they hit the jackpot, hold up! David Trainer, the big cheese over at research firm New Constructs, isn’t buying the hype. He’s basically saying Nvidia’s stock is off the charts, like that time Tesla went to the moon. You know, when the market slaps a massive price tag on a company without batting an eye. Sure, Nvidia’s doing some pretty cool stuff, but Trainer’s got a point – their price tag is sky-high. According to him, for Nvidia to be worth what it is now, they’d have to grow their revenue by 20% every year for the next quarter-century. That’s like trying to catch a unicorn on a skateboard. And here’s another thing to keep in mind: Trainer thinks Nvidia won’t be the only player in the AI game forever. He’s predicting more competition down the road. So, while they’re the big shots right now with their H100 GPUs, there’s no guarantee they’ll stay on top of the AI world. Trainer’s pretty much waving a big red flag, saying, “Buying Nvidia at this price? Not a smart move.” He thinks the wild valuation happened way too fast, thanks to a lot of “fear of missing out” in the market. And as we all know, that usually doesn’t end well for investors. Nvidia’s been on a rollercoaster ride, becoming one of the AI leaders, and their stock shot up by 229% this year. But remember what happened to Tesla in 2021? It soared to the moon and then came crashing back down. Nobody wants a repeat of that. Oh, and by the way, some other Wall Street folks are side-eyeing the tech stock rally this year, especially the AI craze. Bank of America’s even saying it might be a mini-bubble about to burst. So, the moral of the story? Stay cool, folks, and don’t get swept up in the hype.
Market watchers! It’s time to kick off the week with a look at what’s happening in the Asian markets. And guess what? We’ve got a tech rally that’s got everyone talking. Tech Rally Sparks Optimism: Asian equities made quite an entrance this Tuesday, riding high on the coattails of a massive tech rally. Wall Street’s recent bounce-back certainly added fuel to the fire, although it’s worth noting that the bond market wasn’t as enthusiastic. Mixed Bag of Results: Across the board, most major indexes in Asia saw gains. The Hang Seng Index, in particular, seems ready to snap a seven-day losing streak. But, it wasn’t all rainbows and sunshine. Down in Australia, shares stayed relatively flat. Why? Well, it seems BHP Group Ltd. decided to steal the spotlight by reporting a 37% plunge in full-year profit. Ouch! Electric Dreams: Electric vehicle enthusiasts, this one’s for you! Shares of Asian electric vehicle makers were on the rise. Why? Because Tesla Inc. had its best day since March, and that positivity seemed to be contagious. Financial Stocks Feeling the Heat: On the flip side, financial stocks might be in for a rough ride. S&P Global Ratings decided to downgrade the ratings of five US lenders. The reason? A “tough” environment due to higher interest rates. So, don’t be surprised if the financial sector takes a hit. US Stock Futures: Not-So-Smooth Sailing: Over in Asia, US stock futures weren’t exactly in party mode. They seemed a bit hesitant after the S&P 500 Index put the brakes on a four-day losing streak, while the Nasdaq 100 Index posted a respectable 1.7% gain. Meanwhile, SoftBank Group Corp.’s semiconductor unit Arm made some waves with its plan for a massive US initial public offering. Time to keep an eye on that one! Yield Watch: The bond market had a bit of a rollercoaster day. After a bit of a selloff on Monday, Treasury yields decided to play it cool. But there’s a catch – investors are eagerly awaiting a speech later in the week from Federal Reserve Chair Jerome Powell. Signs of a strong economy have folks betting on higher interest rates. Yields in the Spotlight: Speaking of yields, the yield on 10-year inflation-protected Treasuries recently broke the 2% mark for the first time since 2009. It didn’t stop there – 10-year notes without that inflation protection also reached levels last seen in 2007. Looks like the bond market’s in for an interesting ride. Currency Matters: What’s happening in the currency world? The dollar didn’t have the best day, weakening against its Group-of-10 peers. Meanwhile, the yen made a comeback (but not too close to the levels that prompted last year’s yen-buying intervention). Keep an ear out for potential comments from currency officials. Yuan Gains: China’s offshore yuan, on the other hand, made some gains. The People’s Bank of China boosted its fixing on the currency to tackle yuan bears head-on. Hawkish Hold: Powell will speak Friday at the Kansas City Fed’s Jackson Hole Economic Policy Symposium after officials last month lifted rates to a range of 5.25% to 5.5%, the highest level in 22 years. Minutes from the gathering showed policymakers still saw significant risks that inflation could remain higher than they expect — which could keep rates elevated. Market Minds at Odds: Wall Street’s top strategists can’t seem to agree on the US stock market’s future. Morgan Stanley’s Michael Wilson has a bearish outlook, suggesting that sentiment could take a hit if people start doubting the economy’s resilience. Meanwhile, Goldman Sachs’ David Kostin is a bit more optimistic, believing there’s room for investors to hop on the bandwagon if the economy keeps cruising along. Oil and Gold: In the world of commodities, oil held steady, even as supply seemed to be on the upswing. Concerns about demand in China, a major oil importer, are still lingering. Meanwhile, gold didn’t make much of a fuss. Key Events This Week: There’s plenty on the calendar to watch out for this week, including US existing home sales, Eurozone S&P Global Services & Manufacturing PMI, and speeches from Fed Chair Jerome Powell and ECB President Christine Lagarde at the Jackson Hole conference. Market Snapshot: Stocks: S&P 500 futures were little changed as of 10:36 a.m. Tokyo time. The S&P 500 rose 0.7%. Nasdaq 100 futures were little changed. The Nasdaq 100 rose 1.7%. Japan’s Topix index rose 0.7%. Hong Kong’s Hang Seng Index rose 0.6%. China’s Shanghai Composite Index rose 0.4%. Australia’s S&P/ASX 200 Index was little changed. Currencies: The Bloomberg Dollar Spot Index was little changed. The euro rose 0.1% to $1.0907. The Japanese yen was little changed at 146.12 per dollar. The offshore yuan rose 0.2% to 7.2749 per dollar. The Australian dollar was little changed at $0.6420. Cryptocurrencies: Bitcoin fell 0.2% to $26,065.25. Ether fell 0.4% to $1,664.78. Bonds: The yield on 10-year Treasuries was little changed at 4.34%. Japan’s 10-year yield advanced one basis point to 0.655%. Australia’s 10-year yield advanced three basis points to 4.29%. Commodities: West Texas Intermediate crude rose 0.1% to $80.81 a barrel. Spot gold was little changed. This story was produced with the assistance of Bloomberg Automation. With assistance from Rita Nazareth and Brett Miller. Most Read from Bloomberg Businessweek Never Mind Shrinking Households, Builders Are Adding Bedrooms ‘Don’t You Remember Me?’ The Crypto Hell on the Other Side of a Spam Text GOP Presidential Hopeful Ramaswamy Sued Over Strive’s Practices Sam’s Club’s War Against Costco Started With $1.38 Hot Dog Combo The Legendary, Wildly Profitable QQQ Fund Makes No Money for Its Owner
Hey there, finance enthusiasts! Big news in the real estate world – SL Green Realty Corp. just got a bit of a shake-up from the folks over at Fitch Ratings. Let’s dive into the details and see what’s cooking. Ratings Shuffle: So, Fitch Ratings did some shuffling around, and SL Green Realty Corp. (SLG) and its subsidiary, SL Green Operating Partnership, L.P., got hit with a downgrade. The ratings went from ‘BBB-‘ to ‘BB+’. Ouch. And that’s not all – the outlook for these ratings turned negative too. Double ouch. Term Loan Talk: But wait, there’s more! Fitch also slapped a ‘BB+’ rating on SL Green Operating Partnership’s $425 million term loan. This loan’s got an October 2023 deadline with a nifty six-month extension option that stretches to April 2024. Low Asset Coverage Woes: Fitch’s reasoning behind the downgrade seems to be centered on SLG’s low unencumbered asset coverage of unsecured debt (UA/UD). This fancy term basically means how much property value SLG has to back up its unsecured debts. Since the COVID-19 pandemic, this number’s been hanging out below 2.0x, which isn’t exactly giving Fitch warm fuzzies. And guess what? SLG’s shift to an asset management model didn’t exactly help matters. The Good Stuff: But it’s not all gloomy clouds. SLG does have some points in its favor. It’s got some strong credit strengths, like a top-notch New York office portfolio with solid tenants and high occupancy rates. Plus, it’s got backup in the form of institutional lenders and investors. Not too shabby, right? What Lies Ahead: So, what’s the future look like for SLG? Fitch thinks it’s all about getting that UA/UD ratio up to the 2.0x mark. That’s the magic number for Fitch to start feeling good again. And SLG needs to prove it can handle its debts while navigating the ever-changing world of NYC office leasing. No small feat, that’s for sure. The Bottom Line: Downgrades and outlook shifts might not be the news SLG wanted, but there’s always a chance to bounce back. As the real estate market evolves and office dynamics change, SLG’s journey to better ratings might just be a matter of time. So, buckle up, because the world of finance keeps on turning! FinancialPress.com
Hey there, folks! Let’s talk solar energy, where the sun’s not the only thing shining bright. The Solar Energy Industries Association (SEIA) has set a big goal: by 2030, the solar energy industry needs to triple its workforce to meet the growing demand. But here’s the twist – a lot of those new workers will be fresh faces with little to no solar experience. Will White, the solar whiz at Fluke, spilled the beans on what’s happening behind the scenes. Now, this might sound like a tall order. But Will White knows a thing or two. He’s a solar applications specialist at Fluke and has been part of the solar education scene at Solar Energy International. In a chat, he spilled some secrets about how the industry is training up newbies. Guess what? Most of the newbies stepping into the solar scene are learning the ropes on the job. Yep, they’re diving straight into hands-on training, but here’s the twist – the training varies a lot from company to company. It’s like one company’s solar boot camp might be totally different from another’s. SEIA is trying to solve the training puzzle by creating a set of industry standards. Think of it as the playbook everyone can follow. From solar training to operations and maintenance, these standards aim to bring consistency to the table. White’s all for it: “Something we’re definitely lacking at this point,” he said. With rules in place, solar training could become smoother than ever. But what’s the big deal with proper training, you ask? Well, White’s got the answer. When solar workers get formal training, they understand the whole process better. It’s like knowing why you’re plugging things in and what they actually do. This leads to better quality and lower maintenance costs in the long run. Plus, it helps the industry shed its old rep for shaky quality. Now, let’s talk about the solar boom. The Inflation Reduction Act kicked things into overdrive, and renewable energy projects are popping up like daisies. Solar companies are growing faster than weeds in spring, and they need a bigger workforce to match. This is where you come in! According to the Interstate Renewable Energy Council, 44% of solar employers are having a hard time finding qualified candidates. Yep, the demand is sky-high, and that’s where you come in. If you’re tired of your regular gig and looking for a career upgrade, the solar industry is welcoming newcomers with open arms. Plus, it’s not just about getting a job; it’s about stepping onto a career path. But here’s the thing – the entry bar is low. Soft skills like showing up on time and being eager to learn are more important than having tons of solar know-how. That’s why good on-the-job training is a game-changer. Some companies offer in-house apprentice programs with a mix of hands-on work and classroom time. Others take a more hands-off approach. And if you’re wondering where to get solar training, there are options galore. Solar Energy International, HeatSpring, and the Midwest Renewable Energy Association have been teaching the solar ropes for ages. Community colleges, trade schools, and even unions like the International Brotherhood of Electrical Workers are joining the fun. Everyone wants to make sure you’re ready for the solar spotlight. But hey, there’s a snag. The Inflation Reduction Act requires a chunk of labor on certain projects to be done by registered apprentices to score tax credits. The problem? There might not be enough apprentices to go around. Will White even calls this requirement a “double-edged sword.” There’s a hiccup in getting solar installers officially registered as apprentices. Sounds like a puzzle, right? But here’s the bottom line – solar’s the place to be. Whether you’re switching gears or starting fresh, the industry is waiting for you. With training standards on the horizon, it’s a golden opportunity to learn and shine in the solar spotlight. FinancialPress.com Inc.
Hey folks, brace yourselves for some big trade drama! The US and China are going toe-to-toe in the solar trade game, and it’s about to send shockwaves through the market. The US Commerce Department is all set to drop the final verdict on whether some Chinese manufacturers are sneaking around tariffs by assembling solar gear in other Asian countries and then shipping it to the US. Hold onto your solar panels – this could mean major changes for billions of dollars in trade! Okay, let’s break it down. After a marathon 17-month investigation, the Commerce Department’s ready to lay down the law. They’ve got their eyes on exporters in Cambodia, Malaysia, Thailand, and Vietnam, suspecting them of sidestepping duties aimed at keeping Chinese solar pricing fair and square. If they’re caught red-handed, these exporters might have to fork out antidumping and countervailing duties as high as a whopping 254%, starting next June. Ouch! Now, you might wonder if there’s any room for last-minute surprises in the final verdict. According to the experts, don’t hold your breath. Timothy Fox from ClearView Energy Partners put it bluntly: “We’ve long regarded Commerce as a protectionist agency, and it rarely deviates from the preliminary finding significantly.” Translation: expect the hammer to drop. But why should you care? Well, this ruling could speed up a race already underway – renewable developers trying to break away from China’s solar supply chains. With allegations of forced labor and concerns about solar gear tied to Xinjiang, things have been heating up. Companies like First Solar Inc. and Qcells North America could score big as they ramp up US manufacturing. Remember that two-year grace period President Joe Biden handed out? It’s giving renewable developers and solar importers time to prep for new duties. Some shifted their focus to European markets as they stocked up on duty-free gear. However, the US still leans heavily on imports from Southeast Asia, which provides about 75% of US solar modules. And let’s be real – domestic manufacturing alone won’t cut it. Abigail Ross Hopper, the boss at the Solar Energy Industries Association, hit the nail on the head: “A decision in line with the preliminary determination would undoubtedly slow America’s clean energy growth and cause the United States to miss out on new jobs and investment.” But hold on, there’s a silver lining. BloombergNEF analyst Pol Lezcano says there’s plenty of solar goods – over 50 gigawatts annually – from the US, Southeast Asia, and India to meet domestic demand between 2024 and 2030. Looks like there’s still hope for a sunny future! As the Commerce Department gears up for the final ruling, there are a few question marks hanging in the air. Will they tighten the rules for importing solar modules? And what about silicon wafers? These little things are crucial for making solar cells and modules. Some folks are concerned that loopholes might sneak in, making way for duty-free imports. So, buckle up, folks! The US-China solar showdown is about to rewrite the rulebook for billions in trade. Will solar power triumph or hit a roadblock? Stay tuned as this solar saga unfolds. By FinancialPress.com Inc., August 17, 2023
North Dakota Governor and long-shot Republican presidential candidate Doug Burgum said the massive stimulus from the $1.2 trillion infrastructure package that President Joe Biden signed will far outstrip the ability of the US Federal Reserve to curb inflation through higher interest rates. “The Fed plays an important role. But right now we can keep raising interest rates but with all this Biden infrastructure money coming to the state, I see it as governor,” Burgum told Bloomberg Television’s “Balance of Power” on Thursday. “We could end up with high interest rates that choke the private sector and still don’t solve the inflation problem.” Burgum said bids on North Dakota highway projects are coming in 30% higher because of inflation. That federal spending, he added, crowds out investment by companies. He declined to follow the lead of rivals like former President Donald Trump and Florida Governor Ron DeSantis in their criticism of Fed Chairman Jay Powell. While Trump told Fox News he wouldn’t reappoint Powell, Burgum refused to speculate about future appointments. Earlier: Burgum Makes Republican Debate With Help of Polls and Gift Cards The 67-year-old governor was elected to a second term in 2020 with the help of an endorsement from Trump, who said he was “doing a phenomenal job” and was a “true conservative.” But Burgum has largely avoided talking about the former president and frontrunner, comparing the Republican primaries to a corporate job interview and said a large pool of candidates was good for the process. In fact, he thinks it should be enlarged. He’s one of eight candidates who has qualified for the first debate in Milwaukee Wednesday. “That’s a pretty small pool. If this were the private sector, we’d be reposting,” he said. Burgum acknowledged that he has the lowest name recognition of any candidate to qualify for the debate, polling at no higher than 1% in national polls. He’s performing better in the early primary states of Iowa and New Hampshire, where his campaign and affiliated super political action committee have spent nearly $11 million on advertisements. He became a billionaire after selling his company, then called Great Plains Software, to Microsoft in 2001, but said he can’t entirely self-finance his campaign and needs a broad base of donors. He is also the co-founder of Arthur Ventures, a software venture capital group named for his hometown of Arthur, North Dakota. His business experience is one of the key selling points of his campaign. Burgum is perhaps best known for qualifying for the debate after reaching the 40,000-donor threshold with the help of an unusual $20 gift card giveaway with every $1 donated. Burgum said it was an “entrepreneurial way” to meet the debate requirements and that he’d do it again, arguing it’s better to give $20 to supporters than $100 to political consultants. He’s running in the Republican primaries on a campaign mantra of “economy, energy policy and national security.” As far as foreign policy, he said sanctions against Russia have been a failure because they’ve effectively given China a 20% discount on Russian oil. “If you sanction something and only less than half the world’s economy goes along with you, it’s not really a sanction,” he said. “We’re subsidizing our No. 1 competitor. We’re in a cold war with China, and we’re in an actual proxy war with Russia, and some of these policies are benefiting our adversaries.” North Dakota is an energy-producing state, and Burgum champions domestic energy production as a way to grow the economy. “If you cared about the environment you would want every ounce of energy produced in our country because we can do it cleaner, better and safer,” he said. “The energy policies are empowering dictators. (FinancialPress.com Inc.) — Thu, August 17, 2023 at 3:46 p.m. PDT
Bitcoin Takes a Dive Below $26,000: Storm Clouds Gather for Crypto Crypto-watchers, hold onto your hats! Bitcoin just pulled a disappearing act, slipping below $26,000 for the first time in two whole months. It’s like the digital darling of the financial world took a sudden dive, leaving everyone scratching their heads. So, what’s the deal? Turns out, risk aversion is playing referee in the cryptocurrency ring. As if that wasn’t enough, global government bond yields are skyrocketing to levels not seen in about 15 years. It’s like a double whammy, and Bitcoin seems to be caught in the crossfire. Edward Moya, the wise senior market analyst at Oanda, broke it down: “When you throw in what is happening in the bond market, it becomes easy for Bitcoin prices to soften.” In other words, when traditional markets are going all topsy-turvy, Bitcoin’s not immune to the chaos. The drop has pretty much erased the gains Bitcoin made after BlackRock made waves with its unexpected filing for a Bitcoin ETF on June 15. Remember that? It felt like Bitcoin was the golden child, surging 72% in the first quarter. But since March waved goodbye, it’s been a rocky ride – a 9% decline is no joke. And let’s not forget the wild 64% fall last year, thanks to some industry drama and bankruptcies. As of 5:55 p.m. in New York, the biggest kid on the crypto block lost around 9% and landed at $26,338. At one point, it even brushed against $25,314 – that’s the lowest it’s been since June 16. Ouch. Michael Safai, the guy with his finger on the pulse at quantitative trading firm Dexterity Capital, put it simply: “There aren’t enough good headlines coming out of crypto to get people excited.” But here’s the twist – rising interest rates and shaky risk appetite are pushing non-crypto folks towards the safe zone of assets. And hold on tight, because the rollercoaster didn’t stop there. Other cryptocurrencies were down in the dumps too. Ether? Down about 6%. Cardano and Solana? Well, their tokens tried to ride the high, but eventually gave in and erased their earlier gains. Looks like the crypto party’s getting a reality check. The excitement’s taking a back seat while traditional finance does its dance. As the crypto scene navigates this storm, keep your eyes peeled – who knows what’s next in this wild ride. By FinancialPress.com Inc., August 17, 2023
Hey there, currency watchers! Buckle up because the US dollar is on the move again, and traders are doubling down on a wild hunch – that US interest rates will keep dancing above inflation for a long while, giving the dollar a ticket to ride to new highs against other major currencies. Picture this: the 10-year real yield, a number that’s got inflation taken into account, just hit about 1.82% during Monday’s New York trading. That’s a level it hasn’t flirted with since way back in 2009. And guess what? The appeal of getting some good old positive returns is pulling money right back into the greenback. It’s like that cool friend who vanished for a while and suddenly made a rad comeback, rallying about 3% from its low point last month. Wait, there’s more! The not-so-boring nominal Treasury yields are also getting in on the action. The 10-year rate even made a quick jump past 4.21%, something it hasn’t done since last November. And the reason? Traders are starting to think that maybe, just maybe, the Federal Reserve might not be in a hurry to chop interest rates next year. The result? The dollar’s flexing its muscles against other currencies, hitting its highest this year against the offshore yuan and making a power move towards 145.58 yen. That’s like inching close to a level that made Japan’s central bank step in last year to give their yen a boost. Goldman Sachs and friends, including Kamakshya Trivedi, had this to say: “It is hard for the dollar to go down meaningfully when the market is focused on either US outperformance or higher US yields.” In simpler words, when everyone’s hyped about the US economy doing well or interest rates going up, the dollar tends to party. But hold up – this wasn’t exactly what everyone expected. See, as the Federal Reserve was getting ready to ease up on the gas pedal, the dollar was supposed to slow down too. Not this time though. Despite the Fed’s plans, the dollar’s tapping into its inner superhero thanks to its strong economy vibes. Guess what else is shaking up? Hedge funds are getting rid of their bets against the dollar. People who bet that the dollar would go down are kinda regretting it now. There’s this gauge that measures how investors feel about the dollar – it’s like the dollar mood ring – and it’s showing the most positivity since, well, late March. In the other corner of the ring, we’ve got some folks in suits – policymakers. They’re sweating over inflation and how to get it back in line. Prices of stuff like natural gas and crude oil shot up, waving red flags of inflation. Plus, there’s this whole thing about more and more debt being issued, putting a weight on the market. Even the legendary Bill Gross joined the chat. He basically said that US debt is way too overpriced, suggesting the fair price for those 10-year Treasury notes should be around 4.5%. Monday saw a bunch of short-term bonds getting a popularity boost, driving up nominal yields. Big finance players were throwing their corporate bonds into the mix. Oh, and don’t miss this nugget – the Commodity Futures Trading Commission spilled the beans last week. Those bets against the dollar? They’re at the lowest they’ve been in eight weeks. Peter Chatwell from Mizuho International Plc had a zinger too: “Real rates in the US are very attractive globally, and it can only be a movement of the herd which suggests that shorting the dollar was a really productive venture at this point.” So, whether you’re a trader or just someone who likes a good currency drama, the dollar’s definitely strutting its stuff. With changing yields, a feisty economy, and shifting vibes in the air, the dollar’s story is far from over. Keep your eyes peeled! Originally Published on Bloomberg, August 17, 2023 Compose: