Weekly Smart Pills #82
Financial Markets
Cryptocurrency Market
Bitcoin (BTC) hit a new all-time high above $110,000 this week, driven by growing optimism around cryptocurrency regulations in the United States and improving macroeconomic conditions. Ethereum (ETH) also posted significant gains, trading around $2,650. The price surge is attributed to increased institutional investment and the easing of global trade tensions.
Traditional Financial Markets
U.S. stock markets saw declines this week following the resurgence of trade tensions. The Dow Jones Industrial Average dropped by 256 points (0.6%), the Nasdaq lost nearly 200 points (1%), and the S&P 500 fell by 0.7%. These losses came after President Trump threatened to impose tariffs on the European Union and Apple. In Europe, Germany’s DAX index reached a new all-time high of 24,340.09 points on June 4, marking a 22.0% increase since the beginning of the year. Italy’s FTSE MIB closed at 40,074.47 points on the same day. The euro fluctuated against the U.S. dollar, trading between 1.123 and 1.145 over the week.
Economy and Regulation
Trump announced that the U.S. would double tariffs on steel and aluminum imports to 50% to boost domestic production and reduce reliance on China. He cited a $14 billion investment deal between U.S. Steel and Japan’s Nippon Steel, although it has not yet been finalized. Some workers welcomed the measure, but critics warned about potential negative impacts on the global economy. Details of the deal and the ownership structure remain unclear.
A federal court blocked Trump from using emergency powers to impose broad tariffs, ruling that the 1977 law does not authorize such action. In response, markets rallied, with futures on the S&P 500 and Dow rising and gains recorded across Asia. Japan and South Korea, both heavily targeted by U.S. tariffs, particularly benefited. The Trump administration has filed an appeal, leaving the future of the tariffs uncertain. Investors are now awaiting further developments, supported by strong corporate earnings and easing global tensions.
Blockchain and Innovation
In a significant move, the Moscow Exchange launched Bitcoin futures trading for qualified investors. This initiative aims to enhance market sophistication and liquidity by offering futures contracts denominated in U.S. dollars and settled in rubles, based on the price of a Bitcoin ETF trust. The first batch of contracts is set to expire in September 2025. This development marks an important step in integrating cryptocurrency derivatives into Russia’s traditional financial markets.
Trends and Statistics
Pensions in Europe:
In 2022, the average annual pension per beneficiary in the EU was €16,138, ranging from €3,611 in Bulgaria to €31,385 in Luxembourg, with Iceland leading at €35,959.
Nordic countries (Norway, Denmark, Sweden, Finland) recorded the highest pensions, while non-EU countries Albania (€1,648) and Turkey (€2,942) had the lowest.
Pension disparities narrow when adjusted for purchasing power parity (PPP): the nominal EU gap (8.8 times) decreases to 3.5 times after adjustment; Austria leads with 21,162 PPP, while Slovakia is lowest at 5,978 PPP.
Pensions decreased in euro terms in only three countries, Turkey, Ireland, and Greece, while Bulgaria posted the highest increase at 33%.
Women in the EU receive on average 26.1% less pension than men, and 5.3% of women receive no pension at all.
