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The rise of crypto brings more risk and regulation
As the adoption of cryptocurrencies increases, potential risks and regulations increase.
In the code Proceed from Wall Street to Main StreetInvestors and Regulators Consider Decentralized Assets as follows: Digitization of financial markets continue. In the case of blockchain, which is the backbone of cryptocurrencies Tension is rising Between the feasibility of a market solution and the introduction of management, operational, legal and regulatory credit risk, according to the S & P Global Ratings.Meanwhile, regulators around the world warn of cryptographic volatility. Risks to broader fiscal stability..
“The main reason consumers own cryptocurrencies is to make money,” Charlotte Principat, a financial services analyst at decision-making intelligence company Morning Consult, told S & P Global Market Intelligence. “As long as they can do it, they will continue to buy it and the sector will grow, even if there are more restrictions.”
According to S & P Global Market Intelligence, the global market capitalization of crypto has increased 3.5 times last year to $ 2.6 trillion and settled at about $ 2 trillion this year. And as the momentum surrounding the digital asset class grows, market participants and observers seek opportunities to participate in action while mitigating risk and establishing better oversight of developing landscapes.
Even if US and EU authorities Exploring the possibilities of digital currencies, Mainstreaming crypto assets like stablecoinAccording to the S & P Global Ratings, it was created to ensure stable value between the digital and flat worlds and may require some restrictions on its operation.
“Stablecoin is growing so fast that it can pose a financial stability risk,” Timothy Massad, a former chairman of the Commodity Futures Trading Commission, told S & P Global Market Intelligence, inside the crypto sector. The ambiguity of the structure and its rapid rise do not currently pose a significant risk to the stability of the wider market in the crypto sector, but it is the basis for proper accelerated monitoring.
These risks exist inside and outside the broader environmental and social considerations of cryptography.Cryptocurrency mining has been criticized for its significant amount of energy and emissions and is being promoted by the industry and its regulators. A more environmentally friendly way to authenticate transactions..
At the same time, market participants Industry demands for diverse participants They are usually left behind in legacy investment opportunities to join the crypto community and require different regulations than other aspects of the financial system.
“Despite being qualified, many legacy banking systems are built on those who really know you,” said the founder of the cryptocurrency education group The Stellar Global Community in Washington. Sam Sealey, Head of Digital Asset Practices for Digital Economist Think Tanks, told S & P Global Market Intelligence. “Now we have fair access to an innovative financial system that we haven’t honestly seen in human history.”
today Monday, May 9, 2022And here is the essential intelligence of today.
Written by Molly Mints.
Economy
Recession widens as more sectors report production declines and record price increases
Detailed sector PMI data compiled by S & P Global, derived from information provided by a panel of more than 30,000 companies in 45 countries, revealed the expansion of the global economic slowdown in April. Except for the recession seen in the early stages of the pandemic in early 2020, in April more sectors reported a decline in production than at any time since 2012.
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Capital market
Swedish banks face significant earnings growth from central bank rate hike plans
Sweden’s largest lenders recorded high net interest income in the first quarter of 2022 and can be expected to rise further after the country’s central bank returns interest rates to the positive territory for the first time since 2014. Key interest rates have been raised from 0% on April 28 to 0.25% and are expected to rise a few more times this year, reaching 1.8% in three years.
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International trade
Asia’s desire for unharmed US oil, despite Russia’s favorable offer
Asia’s willingness to US crude oil recorded positive growth in the first quarter, despite Russia’s favorable offer, but North American supplies will not be available until refiners are free of sanctions. With significant discounts that may face further competition in the second quarter as we continue to receive barrels from OPEC suppliers. However, analysts say that even with a significant increase in Russian crude oil inflows into Asia in the second quarter, the share of Russian crude oil in some Asian countries is traditionally small and will dramatically change trade flows. He added that there is no such thing. For example, it was less than 1% of India’s total crude oil imports in 2021.
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ESG
Power companies emphasize flexibility in the face of US solar panel toll probes
Power companies were affected by a U.S. Department of Commerce investigation, despite warnings from industry lobby activity groups that the investigation threatened nearly half of the solar capacity expected to be installed by the United States in 2022 and 2023. We continue to work on solar power projects. The team further promotes the project, ensuring the terms of the electricity purchase agreement and emphasizing the flexibility to convert capital to wind investment as needed.
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Energy and commodities
Infographic: How much Russian oil does Europe import?
Russia’s war against Ukraine has already driven more than 2 million barrels / day from the world’s second-largest oil exporter, as both sanctions and boycotts have hit the flow, according to S & P Global Commodity Insights. The collapse of Russian crude oil demand in the region has already seen Ural’s value hit a record low. The EU plans to ban Russia’s oil imports by the end of the year, which, if fully implemented, could hurt up to 3.5 million b / d of crude oil and products.
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Technology and media
Cryptographic proponents warn of the new digital divide as regulators initiate inquiries
Sam Sealey has 17 years of experience in real estate, banking money and 800s credit scores. Still, he said it was difficult to get a bank loan because he was black. So when he wanted to increase his wealth, he turned to blockchains and cryptocurrencies like Bitcoin instead of traditional financial institutions. Blockchain, a shared, immutable ledger that helps record transactions and track assets, eliminates the possibility of conscious or unconscious biases that block access to the accumulation of capital or wealth.
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