After rising ~$3,000 on the Grayscale news, prices just fell $1,000 in a matter on minutes
In less than a day, Bitcoin has shed nearly all the gains it made from Grayscale Investment's court victory against the United States Securities regulator. On Aug. 29, Bitcoin popped to a two-week high after a judge ruled that the Securities and Exchange Commission was “arbitrary and capricious” when it rejected Grayscale’s spot Bitcoin ETF application. However, the SEC’s Aug. 31 decision to delay seven pending spot Bitcoin ETF applications sent Bitcoin’s price downward — falling nearly 5% in the 24 hours to 12 am UTC Sep. 1. This could brutal move coud also be a sign of drying liquidity in the market. This is indeed the 4th "flash-crash" happening on bitcoin this year Source: Cointelegraph, The Kobeissi Letter
The KBW Bank Index fell by 8.8% in August, the weakest bank in the index is Citi with a -13.4% decline
Source: Bloomberg, HolgerZ
The world's richest universities
💰Of the 25 wealthiest schools worldwide🌍, only 2 are not from the United States. 💰As of 2022, the University of Texas System had an endowment value of $69 B, making it the wealthiest university in the world🤑. Source: Genuine Impact / Chris Quinn
PCE Deflator, the FOMC's favorite inflation number, show a rise as expected with the YoY at 3.3% (from 3%) and the core at 4.2% (from 4.1%)
Jobless claims at 228k (235k expected) showing continued strength ahead of Friday's NFP report Source: Ole S.Hansen
Disinflation pause?
Eurozone inflation remained stuck at 5.3% in Aug, higher than the 5.1% that economists expected. Core inflation, which excl volatile energy, food, alcohol & tobacco prices & closely watched by ECB as measure of underlying inflation, tumbled to 5.3% in Aug from 5.5% in July, matching expectations. Source: HolgerZ, Bloomberg
Pernod Ricard approaching major support level
Pernod Ricard (RI FP) is down 17% since April highs. It's now approaching major support level 174-180. Keep an eye on it. Source : Bloomberg
We are now seeing the widest spread between mortgage rates and 30-year risk-free rates in history
Should we see this as another barometer of credit tightness in the system? Source: Crescat Capital, Bloomberg
Recent Developments in the AT1/CoCo Bond Market: ZKB Unexpectedly Skips an AT1 Call!
After the Credit Suisse turmoil, the AT1/CoCo bond market is witnessing intriguing dynamics as Zürcher Kantonal Bank (ZKB) takes an unexpected turn by choosing to bypass an AT1 call. In a landscape where banks are carefully navigating refinancing challenges, this move adds a new layer of complexity to the market. ZKB's decision to forego the AT1 call comes in the wake of Banco Santander's similar choice, signaling a trend toward cautious financial strategies in the face of fluctuating market conditions. These recent developments are shedding light on the intricate decision-making processes that banks are employing to balance their financial stability and growth prospects.
