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March 26: More Bank Failures now in Germany, War against Crypto, Food Shortages To Get Worse (Recap ep220)

In today’s recap, Marcello talks about how the banking crisis is affecting Europe as well; Deutshce Bank’s shares had a rough week after the cost of insuring the bank’s debt against the risk of default; Coinbase is seing its shares plunge again due to recent government statements on enforcement action for violations of federal securities laws; California has lost billions of dollars of food due to recent floods; Spain is likely to halve its olive oil output.

Germany’s largest bank Deutsche Bank shares tumbled on Friday after the cost of insuring the bank’s debt against the risk of default surged to over 4-year highs, highlighting concerns among investors about the stability of Europe’s banks. Deutsche shares, which have lost more than a 20% of their value so far this month, fell by as much as -14.9% on Friday to their lowest in 5 months. The shares ended down -4.30% at $9.23. The bank has seen $3B wiped off its market value in the space of just 1 week.
Coinbase Global engaging in tech & financial products & services, offers crypto-powered technologies saw shares -8% on Wednesday & -14.05% Thursday at $66.30, after it said in a regulatory filing it received a Wells Notice from the U.S. SEC stating it had made a preliminary determination to recommend an enforcement action against the largest U.S. crypto exchange for violations of federal securities laws. The stock +87.34% in 2023, but is still down -64.49% y/y, with a market cap of $17.5B.
World’s largest olive oil producer, Spain, is likely to halve its output this year vs 2022 due to drought, pushing prices up. Spain usually supplies about 40% of the global output. Heatwaves & severe drought in Spain & in number 2 & 4 producers Italy & Portugal have reduced stocks. Only EU’s 3rd largest producer, Greece, not hit by the weather conditions, was expecting higher production, though not enough to offset the decline in Spain. Estimates at least 10% less olive oil available worldwide this year,
Deutsche WertpapierService Bank AG (dwpbank), a German securities processing giant that manages over 5.3M securities accounts, announced the launch of its new platform, wpNex, that enables over 1,200 affiliated banks to offer Bitcoin trading to its retail customers. Financial planning advisory corporation MLP Banking AG is taking advantage of the opportunity to become the 1st to offer crypto trading to its customers.
As California’s onslaught of rain, wind & mountain snow subsided, downed power lines from Tuesday’s storm leftover 92K homes & businesses without electricity Wed. while lingering floods kept 14K people under evacuation orders. Nearly 48K others statewide warned to be ready to flee to higher ground, if swollen streams overflow their banks or storm-weakened levees fail. California’s exceptionally wet winter is an abrupt change for a state preoccupied in the past few years by drought & wildfires.
India is set to eclipse China as the most important driver of global growth & therefore oil demand & potentially the last major economy driven by fossil fuels, as the world shifts to a greener future. A swelling population, which has already surpassed that of China, will help to underpin that growth along with consumption trends. India’s transition from traditional gasoline & diesel-fueled transport is expected to lag other regions, whereas China’s adoption of electric vehicles is already skyrocketing.
Fitch Ratings on Friday cut Argentina’s foreign currency rating to “C” from “CCC-” citing an “imminent” default after the country ordered public sector bodies to sell or exchange their holdings of some sovereign dollar bonds. A presidential decree said on Thursday that public sector bodies would have to sell or auction 5 local law dollar bonds maturing between 2029 & 2041, & to swap 7 foreign law dollar bonds for peso debt.

The visit by Chinese President Xi, his 1st to Russia since Putin invaded Ukraine just over a year ago, marked a political win for both leaders; Shares of GameStop surged +35.24% on Wednesday at $23.87, after the gaming retailer posted a quarterly profit for the 1st time in 2 years with net profits at $48.2M.

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