The great crypto debate


The noise

  • US Natural Gas futures surged to the highest amount in more than a week after winter stockpiles of the furnace and power plant fuel expanded less than expected, heightening concerns about adequate supplies going into peak-demand season.

  • Arabica coffee prices in Brazil, the world’s biggest producer and exporter burst through another fresh record high on signs of persistent export disruptions and plunging production. Futures are up more than 60% this year amid adverse weather in top shipping delays and reports that some growers in Columbia are defaulting on sales. Association.

  • Speaking at the third quarter balance sheet meeting of Morgan Stanley, one of the world’s leading investment banks, CEO James Gorman said that cryptocurrencies are permanent. Gorman said, “I don’t think crypto is a fad. Cryptocurrencies are not going anywhere.”

The numbers

The-Numbers-18-10-21.PNG


The nuance

This weeks US inflation report once more beat expectations as reported inflation in the US continued to rise, now sitting at 5.4% year over year. Recent weeks have seen the debate over transitory vs persistent inflation being resolved, with major company’s such as Bank of America's CEO stating "Inflation is clearly not temporary".

Meanwhile 10,000 employees at Deere have gone on strike to secure wage gains, seeking to capitalise on the rapidly rising food prices which are spurring demand for the companies agricultural machinery. The 27% rise in money provided by the Federal government in its food stamp program, which happened in October is unlikely to change the course.

The market seems to have accepted that the FED will taper its asset purchases, starting in November and finishing in June next year. Supply chain problems persist as a consequence of the excess demand facilitated by the inflation created over the past 18 months.

The next two weeks will allow companies to update investors what steps they have taken to manage the issues and shed some light on who is able to pass on price increases and who is seeing margins get squeezed.

 

Quote of the week

“Jeff Bezos’ Blue Origin successfully blasted William Shatner — the Canadian actor who famously played Captain Kirk in the original “Star Trek” TV series — to the edge of space Wednesday morning.“

Jeff Bezos’ Blue Origin successfully blasted William Shatner — the Canadian actor who famously played Captain Kirk in the original “Star Trek” TV series — to the edge of space Wednesday morning. The sci-fi actor, 90, is officially the oldest person to have ever travelled to space — even topping the record set by Wally Funk, 82, earlier this year on Blue Origin’s first crewed flight.

“Everybody in the world. Everybody needs to see,” Shatner said through tears to Bezos after returning to the Earth.

“It’s just — there is Mother Earth, life and comfort down there and up there,” he said pointing up, “is it just death? I don’t know.”

“What you see is black and what you see down there is light”.

Source: The New York Post


Phil Smeaton
Chief Investment Officer


All investment views are presented for information purposes only and are not a personal recommendation to buy or sell. Past performance is not a reliable indicator of future returns, investing involves risk and the value of investments and the income from them, may fall as well as rise and are not guranteed. Investors may not get back the original amount invested.

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