US GDP shrank by 0.6% in Q2
Following a quarterly decline of 1.6% in Q1, the US economy shrank by an annualized 0.6% in Q2 2022. This matches the second estimate and proves the US had, in fact, entered a recession. US stock indices continue to dive lower.
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The annual inflation rate in Euro Area fell from 8.5% in February to 6.9% in March. Netherlands’s inflation tumbled from 8% to 4.4%. French inflation eased from 6.3% to 5.6%. Poland’s inflation dropped from 18.4% to 16.2%. Austria’s inflation fell from 10.9% to 9.1%.
Inflation levels in EU mostly drop
The result of the annual inflation rate in Spain surprised, dropping from 6% in February to 3.3% in March. This is very close to the central bank’s goal. Germany’s inflation also fell, from 8.7% to 7.4%, a little above the estimated 7.3%. Belgium’s inflation held steady at 6.6%.
Charles Schwab is facing risks due to unrealized losses of over $29 billion on its balance sheet from 2022. As a result, Schwab shares have lost over a quarter of their value since March 8, with some analysts expecting earnings to suffer. The company’s CEO, Walt Bettinger, said the company is healthy and prepared to withstand the turmoil.
BoE lifts interest rates again
The Bank of England lifted the UK’s interest rates by 25 bps, the eleventh rate hike in a row. The interest rates were increased from 4% to 4.25%, reaching 15-year highs, with the aim of bringing inflation down.
SNB raises interest rates to 1.5%
The Swiss National Bank joined the Fed with another rate hike of 50 bps. The interest rates were increased from 1% to 1.5%, the highest since 2008. The central bank suggested more rate hikes could occur this year.
Fed raised interest rates by 25 bps
The Federal Reserve raised interest rates by 25 bps as expected, from 4.75% to 5%. The news pushed Bitcoin to $29,000 and Nasdaq close to $13,000.
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Justin Sun to buy 41.5k BTC from gov
The US government is about to sell 41,500 bitcoins connected to Silk Road this year. Tron’s CEO, Justin Sun, offered to buy it all in an OTC deal to minimize the impact on the crypto market, asking for a 10% discount.
Virgin Orbit ceases operations
Virgin Orbit Holdings closed indefinitely due to cash-crunch concerns that have crippled many other tech businesses. Due to its inability to get funding, the company announced it was reducing 85% of its personnel as well. The stock (VORB) fell 42% as a result, down 98% from its peak of $10.
Boerse Stuttgart gains crypto license
Boerse Stuttgart, one of the largest German stock exchanges, entered the crypto world. It has received a license as a crypto custodian from Germany’s financial regulator (BaFin). This license allows the exchange of custody and trading of digital assets for its clients.
The annual inflation rate in Euro Area fell from 8.5% in February to 6.9% in March. Netherlands’s inflation tumbled from 8% to 4.4%. French inflation eased from 6.3% to 5.6%. Poland’s inflation dropped from 18.4% to 16.2%. Austria’s inflation fell from 10.9% to 9.1%.
Ledger raises $109 million from VCs
Crypto company Ledger has raised $109 million in the Series C round. This funding round put the company’s valuation at $1.4 billion. Some of the investors in the round included Cathay Innovation, True Global Ventures, Digital Finance Group and VaynerFund.
UBS CEO, Ralph Hamers. is stepping down on April 5th after the company acquired financially troubled Credit Suisse. Sergio Ermotti is about to succeed Hamers, who was UBS’ CEO from 2011 to 2020.