The most important news from last week

SpaceX Sells $373 Million Worth of Bitcoin 

Aerospace company SpaceX has reportedly sold around $373 million worth of Bitcoin that it had acquired since 2021. The Wall Street Journal reported on August 17 that the company had initially recorded $373 million worth of Bitcoin on its balance sheet in the years 2021 and 2022. However, the company has since sold its Bitcoin holdings. The report also revealed that SpaceX's financial documents indicated significant expenses, with about $5.4 billion spent on property, equipment acquisition, research, and development in 2021 and 2022.

Gold Hits 5-Month Low Amid Rising US Treasury Yields and Strong Dollar

Gold prices hit a five-month low due to rising U.S. Treasury yields and a strong dollar. With gold around $1,800, uncertainty remains about its hold at $1,900. Economist Adam Button notes the impact of high Treasury yields (4.30%) versus gold's 0% yield, signalling investor preference. * Gold might find support at $1,820-$1,830, but a potential breakdown loom.[1] Gold futures for December closed at $1,915.20, down 0.7%. Spot gold was at $1,888.53, down 0.3% by 15:30 ET. *

Chart 1 gold price development over five years

Walmart's International Ventures Thrive 

Walmart's Q2 results beat expectations, driven by strong U.S. consumer spending. Surprisingly, its international business thrived too, with a 13.3% sales jump across 19 countries, the best since 2016. Notable growth was seen in Mexico (10% sales rise), India (Flipkart's double-digit growth), and China (22% sales increase) despite its economic challenges. * The success was attributed to revamped Sam's Club stores in China. CEO Judith McKenna, who led this success, will retire in Jan 2024.

Delta and American Airlines Expanding China Flights 

Delta Air Lines and American Airlines are set to increase flight frequencies to China in response to high travel demand in the Asia-Pacific region. The Biden administration's recent announcement indicates that the United States and China will approve a doubling of the current allowed passenger flight count between the two countries. American Airlines will initiate daily service from Dallas-Fort Worth to Shanghai Pudong International Airport starting in January. Meanwhile, Delta Air Lines plans to offer 10 weekly flights to Shanghai Pudong International Airport from its Seattle and Detroit hubs. This move aims to cater to the strong demand for travel and allow convenient connections within China through Delta's partnership with China Eastern Airlines.

Euro Zone Inflation Slows Further 

Euro zone inflation has continued to slow down, with underlying price pressures also showing signs of peaking, according to Eurostat data. This reduces the pressure on the European Central Bank (ECB) to keep raising interest rates after a rapid series of rate hikes. In July, consumer prices increased by 5.3%, down from 5.5% in June. Excluding food and energy, the closely monitored underlying inflation remained flat at 5.5%. Services inflation increased slightly to 5.6%. The ECB's dilemma on rates persists as strong underlying price pressures clash with stagnating economic growth and falling investment. Markets anticipate another rate hike to 4% this year, though not necessarily in September.[2]

* Past performance is no guarantee of future results

[1,2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.