Markets

Sep 16th 2023 - ₹2,203,049.00

Year to Date - 54.92%

Since Jan 1st 2022 - 40.61%

Sep 16th 2023 - ₹135,836.00

Year to Date - 31.37%

Since Jan 1st 2022 - 53.96%

Market Summary

Macro

• US Retailers Face Labor Challenges and Supply Chain Disruptions: US retailers plan to hire the fewest seasonal workers since 2008 due to labor costs and uncertainty, expecting just 410,000 jobs, impacting holiday sales. Additionally, US manufacturing production edged up 0.1% in August, but strikes at auto factories could disrupt supply chains and affect inflation. Consumer inflation expectations have eased slightly, awaiting the Federal Reserve's upcoming policy meeting.
  

• Federal Reserve's Interest Rate Outlook and Housing Concerns: The Federal Reserve is expected to maintain interest rates at the current range of 5.25%-5.50%, with rate cuts not likely until at least Q2 2024. Economic factors such as CPI data and job market conditions will influence the decision, potentially delaying rate cuts due to high housing costs.

• China's Decreasing Unemployment and Strong Retail Growth: In August 2023, China's surveyed urban unemployment rate decreased to 5.2%, down from July's 5.3%, returning to June's 16-month low. Additionally, retail sales surged, growing by 4.6% year-on-year, surpassing market expectations of 3.0%, marking the eighth consecutive month of growth and the strongest pace since May. Furthermore, industrial production showed robust performance, expanding by 4.5% year-on-year, exceeding forecasts of 3.9%, and representing the fastest pace in industrial output since April, driven by increased manufacturing activity.

Digital Assets

• Approval for FTX Digital Asset Sale: A bankruptcy court has granted approval for the sale of FTX digital assets, which will occur in weekly batches through an investment adviser and predefined guidelines. Notably, this sale does not include Bitcoin, Ether, and certain insider-affiliated tokens, which can be sold separately by FTX after a 10-day notice. These sales are not expected to significantly impact the markets. FTX currently holds $833 million worth of Bitcoin and Ether, with $3.4 billion held in Digital Assets A, comprising assets like Solana, Aptos, and more.

• Franklin Templeton's Spot Bitcoin ETF Application: Asset manager Franklin Templeton has applied to the United States Securities and Exchange Commission (SEC) for permission to launch a spot Bitcoin exchange-traded fund (ETF). The proposed fund would operate as a trust, with Coinbase responsible for BTC custody and The Bank of New York Mellon serving as the cash custodian and administrator. With $1.5 trillion in assets under management, Franklin Templeton joins several other asset managers awaiting regulatory approval for similar spot ETFs.

• Overall, digital assets were broadly in a range during the week and US equities were slightly lower on the week.

Interesting Finds

• As Newfound Research turned 15 last month, Corey Hoffstein, the founder, shared his heartfelt reflections and 15 invaluable lessons, ideas, and frameworks that have shaped his thinking over these remarkable 15 years. Read the full article to discover the valuable lessons that have contributed to Corey's success here.

• Looking to build better habits in your life? The following James Clear article is packed with inspiring one-sentence stories from real people who have successfully transformed their habits. Discover how people quit smoking, improved their health, eliminated bad habits, and cultivated good ones. Read here.

Quote of the week

“We’re still in the fax era of global payments.” - David Marcus, former PayPal executive and co-founder Lightspark

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.