Weekly SmartPills #68
Financial Markets
In recent days, the cryptocurrency market has experienced notable volatility. Bitcoin (BTC) dropped by 5%, falling to $78,892.92. Ethereum (ETH) saw a more pronounced decline, dropping by 9.62%, reaching $1,617.65. These movements have been influenced by various factors, including geopolitical tensions and concerns about potential new regulations in the cryptocurrency sector. Additionally, growing economic uncertainty has contributed to increased volatility, with investors closely monitoring macroeconomic developments and the monetary policies of major central banks.
This week, major U.S. indices experienced significant losses due to the announcement of new tariffs, with the S&P 500 down by 6%, the Dow Jones by 5.5%, and the Nasdaq by 5.8%. Volatility increased across all sectors, reflecting concerns about the impact on global trade and corporate earnings. In Italy, the FTSE MIB remained stable after last week's growth, while European markets showed more caution, particularly in exportrelated sectors. High volatility was also observed in banking and industrial stocks.
Economics and Regulation President
Trump’s new tariffs will take immediate effect following their announcement, with no exemptions and a 25% duty expected on imported vehicles. The move aims to protect American workers, though global markets remain uncertain. While some analysts predict a market rebound after the announcement, others warn of prolonged volatility. The EU has signaled readiness to retaliate but prefers a negotiated solution. Major US automakers are lobbying for exclusions on low-value parts.
The EU is closely monitoring Chinese imports of steel, electronics, and renewables amid rising trade tensions and new US tariffs on Chinese goods. Officials warn of potential trade diversion, with surplus Chinese products targeting the EU market. Steel is a key concern due to China's domestic slowdown and growing global overcapacity. The Commission may consider safeguard measures if necessary. Surveillance will increase as reciprocal tariffs take effect in early April.
Blockchain and Innovation
Italian Consumer Prices - March 2025:
Italian consumer prices rose by 0.4% monthly and 2.0% annually in March 2025 (up from 1.6% in February).
Core inflation remained stable at 1.7%, while inflation excluding energy increased to 1.8%.
Goods inflation reached 1.7% (from 1.1%), and services inflation stayed at 2.4%, narrowing the gap to 0.7 percentage points.
Prices of non-regulated energy products rose from -1.9% to +1.3% annually; regulated energy prices slowed from +31.4% to +27.3%.
The harmonised index (HICP) increased by 1.6% monthly and 2.1% annually, mainly due to the end of winter clothing sales.
Trends and Statistics
Mastercard, in collaboration with JPMorgan, has integrated its Multi-Token Network (MTN) with Kinexys Digital Payments, previously known as JPM Coin. This integration aims to enhance cross-border B2B payments, offering greater transparency and speed in transactions. Additionally, Mastercard has introduced Crypto Secure, a solution designed to help issuers assess the risks associated with cryptocurrency exchanges, ensuring more secure transactions within the digital ecosystem. These developments highlight Mastercard's commitment to blockchain innovation, aiming to integrate digital payment solutions into the traditional financial system in a secure and regulatory-compliant manner.