Markets

Aug 26th 2023 - ₹2,149,189.00

Year to Date - 51.14%

Since Jan 1st 2022 - -42.07%

Aug 26th 2023 - ₹136,215.00

Year to Date - 31.74%

Since Jan 1st 2022 - -53.83%

Market Summary

Macro

• India and UAE have taken a significant step in bilateral trade by conducting transactions in Indian Rupees. Indian Oil Corp has made the first payment in Indian Rupees to Abu Dhabi National Oil Company (ADNOC) for the purchase of one million barrels of oil.
  

  Bilateral trade between India and UAE reached $84.5 billion in 2022/23, and India intends to pursue similar local currency arrangements with other countries to boost exports in a slowing global trade environment.

• In his recent speech at the economic policy symposium in Jackson Hole, Chair Jerome H. Powell emphasized the US Federal Reserve's commitment to tackling inflation. Powell noted that while inflation has eased from its peak, it remains too high. The Fed has tightened its policies over the past year and is ready to raise rates further if necessary.

• The yield on the 10-year U.S. Treasury has reached its highest point since 2007, standing at 4.35%, with the 2-year Treasury also rising to 5%. This increase is causing concern among investors about the possibility of longer-lasting high interest rates. This follows 11 interest rate hikes since early 2022, aimed at curbing inflation and stabilizing the economy.

  In other news, China's central bank made a smaller-than-expected cut to its one-year loan prime rate while keeping the five-year rate unchanged
  amid concerns about its economy.

• The Week Ahead: Friday Sep 1 - US Employment Report for August. The consensus is for 187,000 jobs added, and for the unemployment rate to be unchanged at 3.5%.

Digital Assets

• Crypto stayed range bound during the week with alt-coins underperforming.

• Mystery solved: A previously unidentified Bitcoin wallet that rapidly amassed $3 billion in the past three months has been revealed as belonging to Robinhood: Jump Trading Custody, according to blockchain intelligence platform Arkham Intelligence.
  

  This wallet had sparked speculation in the crypto community, with some suggesting it might be a crypto exchange or even BlackRock, although without concrete evidence. Now, it's confirmed as Robinhood's, making it the third-largest Bitcoin wallet globally, after Binance and Bitfinex cold wallets.

• PayPal's new stablecoin, PayPal USD (PYUSD), is facing challenges in gaining widespread adoption. Data from blockchain analytics firm Nansen reveals that approximately 90% of PYUSD is held in wallets controlled by Paxos Trust, the stablecoin's issuer.
  

  Crypto exchange wallets hold about 7% of the total supply, with balances on platforms like Kraken, Gate.io, and Crypto.com. However, "smart money" investors have shown negligible interest. Despite high initial expectations for PYUSD to introduce cryptocurrencies to the masses, usage among PayPal's 350 million users worldwide remains limited.

Interesting Finds

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  Tune in to explore Rey's remarkable experiences working with elite clients, whose combined wealth exceeds $400 billion. Gain valuable lessons on money, success, and happiness, and learn how Rey turns the seemingly impossible into reality. Listen 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.