Multipolar Market

2024-06-29 00:01:28 Saudi Arabia Joins mBridge Platform, an International Central Bank Digital Currency (CBDC) Project

After three years of development, the joint project of several major central banks (Thailand, UAE, Saudi Arabia, China/Hong Kong) and the Bank for International Settlements (BIS) has reached the stage of a minimally viable product. The multi-currency blockchain platform, created by the Chinese Research Institute of Digital Currency, operates on a distributed ledger technology (DLT) network compatible with Ethereum. It is designed for real-time cross-border payments (multi-CBDC). In January, the first real transaction on the platform took place between the UAE and China.

In the future, mBridge could address issues of financial accessibility, high costs, and slow settlements in various jurisdictions, including countries under external restrictions. Currently, the mBridge project includes over 26 countries and international financial institutions as observers. In 2023, several Western experts stated that creating an alternative settlement infrastructure based on wholesale CBDCs threatens the dominance of dollar financial institutions and could reduce the effectiveness of sanction pressure policies. Forbes highlights that Saudi Arabia, a leading oil supplier to China, could use mBridge for commodity settlements bypassing the US dollar amid Beijing's "currency transition" policy.

BIS confirmed that in June, the Saudi Central Bank joined mBridge as a full member. The project is actively inviting new participants, including commercial banks and private sector representatives, to join the platform. Thanks to DLT technologies, it can serve as a testbed. It is expected that new use cases will be proposed based on the pilot's results. Since the beginning of the year, at least nine Chinese banks and tech giant Tencent (owner of China's leading mobile payment system WeChat Pay) have confirmed their participation in platform trials.

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2024-06-28 23:00:41 A Clear Example of Why Productivity Growth in Developed Economies Has Stagnated or Grown Very Slowly

This is because over 70% of workers are employed in the service sector, which is very difficult to intensify in terms of labor productivity. For instance, a doctor is unlikely to perform more surgeries in the same amount of time.

In some service sectors, productivity is actually dramatically falling—as shown in this graph of labor productivity in the pet care industry in the US. From 2004 to 2021, labor productivity in this segment dropped by a total of 30.1%, or 2.1% per year. Meanwhile, from 2004 to 2021, both employment and hours worked increased by an average of 7.7% per year.

One explanation for this is that in the past, most dogs in the US were placed in kennels with many other animals when their owners were away. Now, people often hire a dedicated person to care for one or two dogs. This has significantly increased the number of person-hours worked per dog.

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2024-06-28 21:00:44 Solana ETF on the Horizon?

Finally, some have filed an application to create a Solana ETF: VanEck and 21Shares.

They believe that SOL is a digital commodity just like BTC or ETH and plan to launch a spot ETF directly, bypassing the futures-based approach previously seen with BTC and ETH.

Here's the current status:

- Spot Bitcoin ETF: Approved and launched earlier this year
- Spot Ethereum ETF: Approved and expected to launch in early autumn (approximately)
- Spot Solana ETF: Application filed, awaiting response from the SEC

The launch of a Solana ETF is not expected anytime soon. An optimistic forecast would be 2025, considering the regulatory challenges.

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2024-06-28 20:00:30 Gazprom Launches Satellite Production

The assembly of spacecraft at "Gazprom SPKA" will begin operations in July, and by 2025, the enterprise plans to produce two satellites per week.

Gazprom will manufacture communication satellites and Earth remote sensing satellites.

If these satellites were powered by nuclear reactors, the only thing that could make this news more Russian would be a bear.

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2024-06-28 17:00:57 CATL Successfully Tested Its Batteries in a Civilian Electric Airplane

The pioneer was a small airliner weighing 4 tons, equipped with semi-solid batteries with an energy density of 500 Wh/kg.

CATL claims that by 2027-2028, it will launch an 8-ton aircraft with a range of 2000 to 3000 km.

If this happens, Boeing and Airbus should prepare, as a dozen companies will likely start building battery-powered airplanes.

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2024-06-27 14:01:33 Dispelling Myths About the Russian Economy: Specially for Commentators

While mineral extraction plays a significant role in Russia's GDP structure, its share varies. In 2023, the sector's contribution to GDP declined, not for the first time though.

Russia's industrial production is growing, with the main driver being manufacturing rather than mineral extraction. From January to May 2024, mineral extraction showed a slight increase of 0.1% year-on-year, while manufacturing grew by 8.8%.

The production of computers, electronics, and optical products grew by 39% year-on-year, indicating significant growth rates and pointing to economic diversification.

Over the past five years, mineral extraction has decreased by 2.2%, whereas manufacturing has increased by 29.6% during the same period, showing a gradual reduction in the economy's dependence on the raw materials sector.

The largest contributions to industrial production growth came from the production of computers and optical products, fabricated metal products, and motor vehicles.

Thus, the dependence of the Russian economy on mineral extraction is gradually decreasing, giving way to manufacturing and high-tech industries.

Sources:
- Rosstat
- TAdviser
- Bankiros

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2024-06-27 00:01:36 Reuters: Russia's Oil and Gas Revenues Grew by More Than 50%

In June of last year, revenues amounted to ₽529 billion. This year, the expected revenue is ₽814 billion. For May 2024, earnings were ₽794 billion compared to ₽529 billion a year earlier.

Overall, for January-April 2024, oil and gas revenues in the budget increased by 82% and are comparable to the record levels of 2022. Reuters explains this phenomenon as being due to the ineffective G7 price caps and the increased prices caused by Western sanctions.

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2024-06-26 23:00:26 Money Continues to Flow from the EU to the US

Volkswagen is investing up to $5 billion in the American car manufacturer Rivian.

This involves a joint venture where the two automakers will share technologies and create a unified electric vehicle platform. However, they will continue to produce cars under their own brands. Naturally, this will take place in the US, not in the EU.

Volkswagen has been facing significant issues with the development of its electric vehicles, including reliability, software, and production costs. The company has tried developing in-house, acquiring startups, and negotiating with Chinese manufacturers, but these efforts have not been successful.

Congratulations to the United States though!

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2024-06-26 22:02:01 Why is South Asia the most promising region in the world?

How is the US trying to shape the region for itself in 2024?

How are new trade routes and military conflicts around the world making South Asia a major geopolitical center of power?

Find the answers on the Gaganauts of Geopolitics channel, the NUMBER 1 source on Telegram for South Asian news.


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2024-06-26 21:00:27 Electric Vehicle Sales Growth in the US Slows Down

We recall that Biden set a goal to reach 50% of electric vehicles among all new sales by 2030. Last year, their share was only 9.5%.

It seems these electric vehicles are quite an expensive pleasure. They are expensive themselves, have high loan payments, there are concerns about range, and the charging infrastructure is lacking.

In 2024, only five new electric models priced under $40,000 have appeared on the American market.

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