HONG KONG, May 9 (Reuters) – Bitcoin fell to its lowest level since January on Monday as slumping equity markets continued to hurt cryptocurrencies, which are currently trading in line with so-called riskier assets like tech stocks.
Bitcoin dropped to as low as $33,266 in morning trade, testing the January low of $32,951. A fall below that level would be it lowest since July last year.
It then steadied to trade around $33,500, down 1.4%.
“I think everything within crypto is still classed as a risk asset, and similar to what we’ve seen with the Nasdaq, most crypto currencies are getting pummelled,” said Matt Dibb, COO of Singapore-based crypto platform Stack Funds
The tech heavy Nasdaq (.IXIC) fell 1.5% last week, and has lost 22% year to date, hurt by the prospect of persistent inflation forcing the U.S. Federal Reserve to hike rates despite slowing growth. Nasdaq futures were down a further 0.8% in Asia trade on Monday morning. MKTS-GLOB
Dibb said other factors in the decline over the weekend – bitcoin closed on Friday around $36,000 – were the crypto market’s notoriously low liquidity over the weekends, and also short lived fears that algorithmic stablecoin called Terra USD (UST) could lose its peg to the dollar.
Stablecoins are digital tokens pegged to other traditional assets, often the U.S. dollar.
UST is closely watched by the crypto community both because of the novel way in which it maintains its 1:1 dollar peg, and because its founders have set out plans to build a reserve of $10 billion worth of bitcoin to back the stablecoin, meaning volatility in UST could potentially spill over into bitcoin markets.
Ether, the world’s second largest cryptocurrency, which underpins the ethereum network, fell as low as $2,421 on Monday, its lowest since late February.
Canada's inflation rate inches up again, to new 31-year high of 6.8% – CBC News
The cost of living continues to rise at the fastest pace in decades, with Canada’s official inflation rate rising at a 6.8 per cent annual pace in April, a new 31-year high.
Statistics Canada reported on Wednesday that the cost of living crept higher mainly because of increases in the cost of food and shelter. Food prices have risen by 9.7 per cent in the past year, while shelter costs are up by 7.4 per cent.
Global factors, including the war in Ukraine disrupting the price and supply of grains, as well as outbreaks of bird flu and extreme weather events in the United States, are combining to drive up the cost of meat and produce.
Among the increases:
- Fresh vegetables, up 8.2 per cent
- Fresh fruit, up 10 per cent
- Meat, up 10.1 per cent
- Bread, up 12.2 per cent
- Coffee, up 13.7 per cent
- Pasta, up 19.6 per cent.
“Rising food prices are a global issue, and we can directly correlate those increases to what’s happening in Ukraine,” economist Royce Mendes with financial services conglomerate Desjardins told CBC News in an interview on Wednesday.
“Food is shipped from all over the world to Canada,” Mendes said, “and our weakening dollar makes it more expensive to import.”
Gasoline has been a major driver of inflation of late, but pump prices actually fell by 0.7 per cent in April after spiking by more than 11 per cent the previous month. Compared to where they were a year ago, gas prices are still up by more than a third, however.
Economists had been expecting the overall inflation figure to ease slightly from March’s 6.7 per cent level, but instead it went slightly higher. That’s a troubling sign that inflation has yet to peak, even though it’s at its highest level since 1991.
The U.S. has also seen its inflation rate skyrocket in recent months, but numbers for April suggest that the wave may have crested there, with the official figure cooling to 8.3 per cent in April from 8.5 per cent in March.
“Core inflation has been accelerating in Canada for a few months now, in contrast to the U.S.,” Mendes said. “What went up still isn’t coming down in Canadian inflation, and might not any time soon.”
The high inflation number makes it even more likely that the Bank of Canada will hike its benchmark interest rate at its next policy meeting in early June.
If Elon Musk scraps Twitter deal, here's what may happen to the stock – Yahoo Canada Finance
Twitter investors should brace for an all-out crash in the stock price if Tesla CEO Elon Musk abandons his bid for the social media platform, warns one veteran tech analyst.
“In the absence of a bid, we would not be surprised to see the stock find a floor at $22.50,” said Jefferies analyst Brent Thill said Tuesday in a new note to clients. Such a price would be about 40% lower than Twitter’s current trading level.
Musk’s outstanding deal for Twitter is for $54.20 a share.
The path is being cut for that price put forth by Thill for Twitter shares, by Musk’s own doing.
In an early morning Tweet, Musk said “Yesterday, Twitter’s CEO publicly refused to show proof of <5%,” adding that “this deal cannot move forward until he does.”
The new tweet from Musk arrives after a tense exchange on the social media platform on Monday.
Twitter CEO Parag Agrawal wrote a long tweet thread to try to counter Musk’s claims the platform was chock full of fake accounts.
“We suspend over half a million spam accounts every day, usually before any of you even see them on Twitter,” Agrawal said in the 13-tweet thread. “We also lock millions of accounts each week that we suspect may be spam — if they can’t pass human verification challenges (captchas, phone verification, etc).”
Musk responded with a poop emoji.
Musk, the world’s richest person on paper, then followed up 14 minutes later with: “So how do advertisers know what they’re getting for their money? This is fundamental to the financial health of Twitter.”
Thill says Musk is simply trying to negotiate a lower price for Twitter. A fair value for Twitter in light of the rout in tech stocks in recent months would be $42 a share, Thill estimates.
Other analysts on Wall Street think a deal doesn’t get done.
“The chances of a deal ultimately getting done is not looking good now and it’s likely a 60%+ chance from our view Musk ultimately walks from the deal and pays the breakup fee,” Wedbush tech analyst Dan Ives said in a note to clients.
Why You Can’t Just Order Baby Formula From Canada – Lifehacker
With baby formula continuing to be in short supply, parents of infants are looking for creative ways to get their hands on that precious Enfamil—but a simple, seemingly ingenious solution that’s going viral right now will not work as described. The suggestion that’s spreading on Facebook and Twitter advises parents to go to Amazon and change their account’s country from the U.S. to Canada.
The claim is that if you do this, you will be rewarded with all kinds of baby formula-purchasing options—because Canada doesn’t have a major formula shortage. The problem, however, comes when you want to get the formula (or anything else) actually delivered from Amazon Canada. The company will only ship products within Canada, so unless you have a friend in Manitoba, it’s not going to work.
Amazon’s shipping restrictions page says:
Certain restrictions prevent us from shipping certain products to all geographical locations. Restrictions for specific items may require the purchaser to provide additional information in order to ship the item.
You might be able to find a third-party formula shipper on Amazon, but this is expensive in terms of shipping costs, and it might not be legal, depending on the kind of formula being imported.
The FDA’s role in all this
The larger issue of why the U.S. as a nation doesn’t import more baby formula is more complicated than Amazon’s rules. Only about 2% of the U.S.’s formula comes from foreign sources. February’s recall from major manufacturer Abbott threw off our delicate national formula supply chain, and correcting the problem presents some serious challenges.
If it was some other commodity, maybe more could have been imported quickly, but we’re particular about our baby formula. Formula has to meet the FDA’s nutritional standards and other requirements to be sold here. While European brands of formula generally meet or exceed the FDA’s nutritional requirements, (so much so that there’s a black market for foreign formula) the packaging and other aspects of the products are a different story.
The recall and FDA approval is only part of the story—the rest is economics.
Tariffs and dairy protection
In order to protect the U.S. dairy farming industry and U.S. formula manufacturers, the tariff on importing baby formula is set at 17.5% for most kinds of infant formula. The recently revamped NAFTA agreement actually raised the cost of importing Canadian formula, discouraging anyone from building a new plant there, and making it costly to import any excess from Canadian factories.
Light at the end of the tunnel?
While there’s no way to change tariffs quickly, the government is taking other steps to try to end the crisis. The FDA this week announced plans to ease the shortage through loosening up some of its rules (but not the ones covering nutritional requirements), and Abbot today announced its facility should be back online, with new safety standards in place, in a couple weeks.
Canada's inflation rate inches up again, to new 31-year high of 6.8% – CBC News
One for the books: 2022 Politics and the Pen – Ottawa Business Journal
Russia closing CBC's Moscow bureau in retaliation for Canada banning Russian state TV – CBC.ca
Silver investment demand jumped 12% in 2019
Europe kicks off vaccination programs | All media content | DW | 27.12.2020 – Deutsche Welle
Global Media Markets, 2015-2020, 2020-2025F, 2030F – TV and Radio Broadcasting, Film and Music, Information Services, Web Content, Search Portals And Social Media, Print Media, & Cable – GlobeNewswire
News14 hours ago
Ghosts of History Arise
Tech18 hours ago
Apple Podcasts Update Enables Annual Subscriptions – PCMag
Science22 hours ago
Peek-a-Boo Moon: Astronaut on Space Station Captures Spectacular Photos of the Lunar Eclipse – SciTechDaily
Economy23 hours ago
Opinion: Tokenization, not crypto, is the future for Canada's digital economy – The Globe and Mail
News13 hours ago
US’ easing of travel and remittances to Cuba met with contention
Tech5 hours ago
Apple iOS 15.5 Release: Should You Upgrade? – Forbes
Science23 hours ago
African scientists and technology could drive future black hole discoveries – The Conversation Africa
News23 hours ago
Monarchists criticize Canada's 'lacklustre' and 'embarrassing' Platinum Jubilee plans – CBC News