Weekly SmartPills #66
Financial Markets
This week, the cryptocurrency market experienced notable fluctuations. Bitcoin (BTC) decreased by 1.68%, settling at $82,852.8, with a trading volume of $11.36 billion. Ethereum (ETH) saw a sharper decline of 2.48%, closing at $1,884.2, accompanied by a trading volume of $3.83 billion. These downward trends are attributed to investor unease regarding potential slowing economic growth and concerns over new U.S. tariffs potentially increasing inflation and hindering growth.
Traditional financial markets showed modest gains this week. The SPDR S&P 500 ETF Trust (SPY) closed at $562.81, marking a 2.07% increase over the previous week. Similarly, the Vanguard FTSE Europe ETF (VGK) rose by 2.07%, ending at $72.46. These movements suggest cautious optimism among investors, despite ongoing global economic uncertainties.
Economics and Regulation
Germany’s next chancellor, Friedrich Merz, secured a landmark deal to ease borrowing limits, unlocking €500 billion for defence and infrastructure. Markets surged, with the euro rising and German stocks rallying, as investors anticipated economic growth. The agreement exempts defence spending beyond 1% of GDP from debt limits and includes €100 billion for climate projects. Analysts revised GDP forecasts upward, but concerns emerged about inflation and potential ECB rate hikes. The move marks a major shift in Germany’s fiscal policy, with broad implications for the eurozone economy.
Italy’s national statistics institute, Istat, warned that U.S. tariffs on EU products could significantly impact the Italian economy. In 2024, over 48% of Italy’s exports went outside the EU, a higher share than Germany, France, and Spain. The U.S. accounted for about 10% of Italy’s total exports and over 20% of its non-EU trade. The tariffs could disrupt key sectors, potentially weakening Italy’s export-driven growth.
Blockchain and Innovation
This week, we highlight the launch of DeepLink Protocol (DLC), a decentralized cloud gaming platform. MEXC has introduced spot and futures trading for DLC, offering 16,000,000 DLC tokens and $149,000 USDT to fuel the project's growth. DeepLink aims to revolutionize the gaming industry by leveraging blockchain technology to provide decentralized cloud gaming services, potentially enhancing the efficiency and accessibility of gaming experiences.
Trends and Statistics
In 2023, women in the EU earned 12% less than men, making €88 for every €100 earned by men, down from a 16% gap in 2013. The gender pay gap ranged from -0.7% in Luxembourg (where women earned slightly more) to 19% in Latvia, with Austria and Czechia at €82 per €100. Among top economies, Germany had a €82 per €100 gap, the UK €86, France €88, Spain €91, and Italy €98, making Italy one of the most equal. The employment rate gap between men and women in the EU was 10 percentage points, with men at 80.9% and women at 70.9%, reaching over 18 percentage points in Italy, Greece, and Romania. Women work more total hours than men due to unpaid labor, face sectoral segregation, and hold fewer leadership roles, with only 27% of top media editors and fewer than 10% of CEOs being women