Business Growth, Bitcoin and Rat Poison, Microsoft

24. Juni 2021

Yesterday's data on business activity in Europe and the United States showed that the economies of these regions are doing very well. For example, the Eurozone Purchasing Managers' Indices showed that the private sector in the euro area is growing at the fastest pace in 15 years. The figure for the UK was even higher. At the same time, survey data indicate a sharp increase in production costs in the country. Which again leads us to talk about inflation.

Today this topic is # 1 for Britain because the Bank of England is to announce the results of its meeting. Moreover, there is a formal reason for worries: inflation in the country has already exceeded the target of the Central Bank. But the excess is minimal, but the number of new cases of covid diseases is growing (increased 8 (!) Times over the past couple of months), so the Bank of England is unlikely to take anything or announce measures to tighten monetary policy in the foreseeable future.

One of the consequences of ultra-soft monetary policy on the part of the world's leading central banks was the capitalization of Microsoft, which this week exceeded $ 2 trillion. Only Apple has more. There are now only two members of the two-trillion-dollar club: Apple and Microsoft.

JPMorgan, meanwhile, has continued the tradition of beating cryptocurrencies in recent weeks. According to surveys conducted by the company, only 10% of institutional investment companies trade in cryptocurrencies, with almost half of them calling this asset class "rat poison" or considering cryptocurrencies to be a temporary phenomenon.