"It's still magic even if you know how it's done." – Terry Pratchett ||
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Programming note: The daily newsletter will not publish on Tuesday, April 25, since I have to be away from my desk for most of the day – apologies! 🌿
WHAT I’M WATCHING
MiCA is now law. This is a very big deal. More on this below.
SocGen is issuing a stablecoin. It’s not the first bank to do so, but it is the first G-SIB (Global Systemically Important Banks, ie. too big to fail), and what’s more, it’s doing so on Ethereum. More on this below.
Signs of an economic slowdown - again? Still? Finally? The mood feels as if economic data doesn’t matter any more. More on this below.
Not playing with you any more. President Biden is apparently going to sign an executive order in the coming weeks that will limit American investment in parts of China’s economy. This is in spite of strong US investor interest in China – yesterday’s debut of China-based U Power Ltd. saw shares soar 620%. It is also in spite of a statement earlier this week by the president of the Eurogroup, an association of euro-area finance ministers, that engagement with China was essential for the global economy. While China is not in the top ranks of direct investors in US businesses (those positions are occupied by Japan, Germany, Canada, the United Kingdom, Ireland and France), it is the second largest holder of US treasuries, at almost $870 billion. So you can imagine the market chaos if China decided to retaliate…
MARKETS
In waiting mode…
Yesterday, we saw further evidence that economic data is conforming to the slowing activity narrative, and yet markets are barely taking notice.
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