Markets

Market Summary

Macro

• US July employment report showed unemployment rate at 3.5% with 187,000 nonfarm jobs added - slightly below expectations. The report confirmed that the US economy was doing fine and there was no recession underway.

  Fitch downgraded US long term ratings to AA+ from AAA - to reflect the expected deterioration in fiscal (government income vs expenditure) & government balance sheet (total debt levels).

  
  Key report this week is the July US Consumer Inflation data to be released on August 10, Thursday.

• RBI Governor Shaktikanta Das will announce the India interest rate decision on Thursday, August 10. Markets are expecting RBI not to change interest rates and retain a hawkish stance in this meeting.

Digital Assets

• Crypto exchange Coinbase surpassed Q2 revenue estimates, reporting $663 million in net revenue due to its custody deal with BlackRock and institutional focus. Adjusted EBITDA was $194 million, up from a loss in 2022. Non-trading revenue surpassed trading revenue at $335.4 million.

  Coinbase's CEO aims to focus on non-trading areas, emphasizing scalability, regulatory clarity, and driving crypto utility. The exchange remains confident in winning its court case with the SEC.
  

• India, as the current G20 president, supports the global crypto framework proposed by the Financial Stability Board (FSB) and calls for addressing digital asset risks in developing economies.

  In their presidency note, India suggests emphasizing developing countries and generating risk awareness, extending the regulatory approach beyond G20. The IMF and FSB will release a Synthesis Paper at the end of August as a roadmap for consideration.

  The FSB's July guidelines advocate segregating clients' digital assets from platforms' funds and requiring stablecoin issuers to obtain a national license in each jurisdiction they operate.

Interesting Finds

• Goldman Sachs economists predict that AI investment could surpass the impact of electricity and personal computers on the American economy.

  By 2025, AI could attract $200 billion in global investments, with the United States contributing significantly. Generative AI, exemplified by technologies like OpenAI's ChatGPT, holds enormous economic potential and may boost global labor productivity.

  Don't miss this insightful report on the potential economic boom powered by AI - read it here
  

• Stalled dealmaking and exits have jammed the capital flywheel for Private Equity & Venture capital, putting a premium on liquidity.

  
  The first-half 2023 results continue the trend of macro uncertainty impacting investments, exits, and fund-raising. Top funds are actively seeking ways to return more capital to limited partners, while the industry faces pressure to reignite activity amidst rising interest rates and geopolitical turbulence
  

  Learn how the private equity sector is responding to these challenges and uncover the growing exit imperative and liquidity concerns - here

Regards,

The BrownRice Capital Team

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a 
solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.