What a week for bitcoin, flying from record to record with a mid-week high of $93,000. The largest cryptocurrency is now the world's 8th largest asset in terms of market capitalisation, surpassing silver at $1.74 trillion.

Back in 2017, Blackrock Chairman Larry Fink was highly sceptical of cryptocurrencies, at one point calling bitcoin an “index of money laundering”. He has since categorically changed his mind, declaring in 2023 that bitcoin could revolutionise finance. In the 1st quarter of this year, Blackrock obtained SEC approval in the USA to launch their first ETF (exchange-traded fund) on bitcoin. This ETF is breaking all records in terms of fundraising, reaching $40 billion in assets under management in record time. This is the most successful ETF of all time in terms of the speed with which it has reached this level of assets under management. The chart below compares the evolution of assets under management of Blackrock's iShares Bitcoin ETF (IBIT in orange) with other highly successful ETFs (Vanguard S&P 500, iShares Core MSCI EAFE ETF and iShares Core MSCI Emerging Markets ETF).

Donald Trump announced on 14November that he was appointing Robert F. Kennedy Jr, a former vaccine-sceptic lawyer known for propagating conspiracy theories, as Secretary of Health.

Over the past 4 weeks, some pharmaceutical stocks have plummeted as markets began to anticipate such a nomination. The official announcement of his appointment only accelerated the fall. Over one month, Moderna fell by -30.6%, Novavax by -42.7% and BioNTech by -11.9%, as investors feared a radical change in US healthcare policy.

RFK Jr, who has questioned traditional medical practices and pledged to streamline the FDA, says he will refocus health agencies on nutrition and the fight against chronic diseases.

President Trump, meanwhile, has declared, “For too long, Americans have been crushed by the industrial food complex and drug companies.”

The United States now represents 74% of the global MSCI market capitalisation, marking a new historical record.

The U.S. inflation report for October aligned with consensus expectations. The 12-month CPI accelerated to 2.6% in October, up from 2.4% in September. Core CPI (excluding energy and food) remained steady at 3.3%.

The housing price index rose by +4.9% year-on-year, while transportation prices stabilised at +8.2%. Wage and rent inflation remain stubbornly high, keeping service price increases difficult to slow.

Since the 50-basis-point rate cut in September, the Federal Reserve now faces a unique set of challenges:

1. China is stimulating its economy through fiscal and monetary measures.
2. The new U.S. administration is pushing for economic growth through tax cuts and infrastructure spending, leading to increased debt and inflationary pressures.
3. Additional tariffs and reduced immigration are also expected to fuel inflation further.

What could this mean for long-term bond yields in the coming months?

President-elect Donald Trump announced on12 November , his plan to appoint Elon Musk, CEO of Tesla, SpaceX, and X, alongside Republican businessman Vivek Ramaswamy, to head a newly created Ministry of Government Efficiency. “Together, these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies,” he declared.

The U.S. government currently employs approximately 23,470,000 workers following a hiring spree before the presidential election. If Musk applied the same 80% layoff rate as he did at Twitter/X, 18,776,000 public sector employees would lose their jobs…. - a figure that is, of course, unrealistic.

The size and diversity of Africa is amazing! It's essential to recognise that the continent encompasses a vast array of economies and social landscapes, from the most industrialised economies like South Africa (GDP per capita of around $7,000) to middle-income countries like Morocco and Egypt. On the other side of the spectrum, nations like Burundi (with one of the lowest per capita GDPs, around $250) highlight the profound economic disparities.