Every day from Monday to Friday, we offer you a selection of financial news from the leading Italian financial magazines.
Here is an overview today, May 11, 2022
Bitcoin, Ethereum, Dogecoin fall after inflation reports
- The major digital currencies on the market have had a sharp slump, too Ethereum down by more than 10%. At the time of publication, the global market value of cryptocurrency fell by 10.25% to $ 1.3 trillion.
- The 10-year government interest rate rose 3.1 points to 3.025% on Wednesday; 2-year government bonds, which are an indicator of the Federal Reserve’s interest rate outlook, reached a three-year high of 2.858%, according to a Reuters report.
- Risk assets lost ground after the Inflation Report: The S&P 500 and NASDAQ indices fell by 1.65% and 3.2%, respectively, on Wednesday.
- Bitcoin has fallen below the psychologically important threshold of $ 30,000.
- “Bitcoin is still very vulnerable to additional selling pressures and could suffer further technical sales if the $ 28,500 level is broken,” he said. Edward Moyasenior market analyst at OANDAin a note seen by Benzinga.
Madonna launches her NFT collection with Beeple
- These NFTs will contain a 3D avatar of Madonna, without clothes, which gives birth to children in different environments. The collection is called “The Mother of Creation”.
- The singer said that she and Beeple started collaborating on the project over a year ago.
- The NFTs went out to auction starting at 18:00 ET on Wednesday on SuperRare; The proceeds from the auction will go to charities The Voices of Children Foundation, The City of Joy and Black Mama’s Bail Out.
The sun 24 hours
Ukraine, the latest news
- The United States voted in favor of a new $ 40 billion package in support of Ukraine. Four actions against Russia and Belarus have also been approved, despite opposition from some Republicans. Russia was excluded from the G20, from Basel and from the Financial Stability Board. Japan is also launching a new sanctions package.
- Mario Draghi, from the speech for the Atlantic Council award in Washington: “Ukraine needs a Marshall Plan for Reconstruction”, and again, the war in Ukraine: “threatens our prosperity and our energy security. But as it has done so many times in its great history , Italy has regained momentum and we are ready to do our part with the Europeans and with the transatlantic allies to go beyond this tragic moment and restore peace.
- 18 missiles hit the town of Komyshuvakha in the Zaporizhzhia region. Governor Staruck reported on Telegram that the missiles would be fired at residential areas in the city.
Lagarde goes hawk: ECB ready to rise in July
- The first increase was announced yesterday by ECB President Christine Lagarde in a speech in Ljubljana. Lagarde announced that the first ECB rate hike will come “just a few weeks after” the end of the net purchases of the app (asset purchase program), indicating the beginning of the first quarter, but also leaving an opening for the pigeons who want the first hike in September .
- The question of the size of the rise is also open, which may be 0.25 in July and 0.25 in September or 0.50 in September and zero in July.
Hydrogen boilers, supply chain to save
- Veneto at the forefront of the energy transition, also to save the 7,000 jobs in the heating industry. The President of Confindustria Vicenza Laura Dalla Vecchia comments on the comparison between the region and Cupertino as follows: “Energy Cupertino, in all respects, already exists. It is the only region in Europe that has companies, research and development centers, know-how, technical “skills and universities that can open a new energy path in heating. We are unique on a technical level. To find comparable skills, you have to go to Japan”.
- The goal for the more than 40 companies in the area is to reduce emissions in a short time, give time to develop new products without opening the doors to competition and defend skills and jobs in the area.
- Baxi, which produces 3,000 boilers a day, has recently started a new production line (to add to the existing 14) of hydrogen boilers. BDR Thermea Group, to which Baxi belongs, has set a goal of an average reduction of 30% (compared to 2019) of CO2 e-emissions due to the use of the product by 2030.
MF – Milan Finance
Risk runs Piazza Affari
- While the ten-year BTP return reached 3%, the risk-free interest rate also rises, with Intesa Sanpaolo analysts updating it to 2.5%. Also on the equity risk premium, the risk premium for equities, which reaches 7.25%, in line with that for Eurostoxx 600. One of the factors triggering the explosion of the risk premium is imported inflation, at sustained levels, largely due to bottlenecks in the supply chain.
- Current inflation, at 8.3% better in the United States and 7.5% in Europe, is directly reminiscent of the 1980s.
Draghi, I do not see a recession
- President Mario Draghi explains that Italy is carrying on the acquired growth in 2021 and is not at risk of recession. The Prime Minister: “The indicators are confused. The first quarter went better than expected. In a first phase the estimates were better, in a second phase worse, in the end we hit a middle ground”. And again: “it is a situation of great uncertainty but we can not say that it will go to the worst in the whole economy. It is clear that nervous markets are increasing uncertainty and damage ”.
- Awareness is now of the fact that the game is played around the need to raise interest rates to hold back inflation, but not raise them too much so as not to throw countries into a recession. Draghi continues: “I have seen Lagardi’s statements and you are fully aware.
- Finally, the Prime Minister assured that he would work with President Biden to bring down oil prices in the United States and gas prices in Europe, while the government will continue to intervene to support young people and the poorest.