Weekly Smart Pills #79

Financial Markets

Cryptocurrency Market
Bitcoin (BTC) recorded significant growth this week, rising from around $94,000 to over $104,000, marking an increase of approximately 10.6%. Ethereum (ETH) also posted notable gains, climbing from around $1,800 to over $2,500, a surge of nearly 30%. These movements were driven by growing investor interest in digital assets, amid ongoing trade tensions between the United States and China.

Traditional Financial Markets
U.S. stock markets had a mixed week. The S&P 500 fell by 0.1%, the Dow Jones Industrial Average declined by 0.3%, while the Nasdaq Composite remained almost unchanged. Investors remained cautious ahead of expected trade talks between the U.S. and China. In Europe, Germany’s DAX index experienced volatility due to geopolitical uncertainties, while Italy’s FTSE MIB rose by 1.4%, reaching its highest level in over six weeks. The euro fluctuated against the U.S. dollar, ending the week around 1.125.

Economy and Regulation

During his first official visit to Brussels on the occasion of Europe Day, German Chancellor Friedrich Merz firmly rejected the idea of a permanent EU common debt, emphasizing that joint borrowing should remain an exception rather than become the norm. He expressed support for limited borrowing for defense spending, such as the €800 billion “Readiness 2030” plan, but warned against expanding this mechanism to other policy areas. Merz reiterated the importance of fiscal responsibility, raising concerns about rising debt and interest costs, while advocating for efficiency, regulatory reform, and shared solutions to avoid excessive reliance on debt. His stance paves the way for complex negotiations on the proposed EU budget for the 2028–2032 period.

The Federal Reserve has kept interest rates steady at 4.3% for the third consecutive meeting, resisting pressure from President Trump to cut borrowing costs. Fed Chair Jerome Powell warned that the simultaneous rise in inflation and unemployment, an unusual and concerning combination, puts the central bank in a difficult position. He also cautioned that Trump’s new tariffs could lead to stagflation, driving prices up while slowing growth. Although the U.S. economy remains strong, Powell stressed the need for caution, stating that the Fed would monitor developments before making further decisions. A rate cut is now considered unlikely before September.

Blockchain and Innovation

Crypto updates of the week:
The Ethereum “Pectra” upgrade was successfully implemented, enhancing the network’s scalability and efficiency.
Meanwhile, trading volumes on Arbitrum increased by 30%, reaching $500 million, confirming the growing adoption of more affordable layer-2 solutions.
In the United States, the SEC announced four new roundtable discussions to address crypto asset regulation, marking further progress toward a clearer regulatory framework.

Trends and Statistics

Highest and Lowest Paying Jobs in the UK:

• The highest-paying job is Chief Executive Officer or senior executive, with a median annual salary of £88,056, well above the national average of £37,430 (as of April 2024).

• Seven out of the top ten highest-paying roles are in executive or leadership positions, including IT, marketing, and finance directors, all earning over £86,000.

• Pilots (£80,414), medical specialists (£74,979), and school principals (£71,064) also make the top 10.

• The lowest-paying job is school crossing patrol officer or educational surveillance staff, with a median salary of £19,860, about 53% of the national average.

• Sectors like hospitality, childcare, retail, and cleaning dominate the bottom of the ranking, typically offering salaries between £20,000 and £25,000.