Hello and welcome to the IC’s daily blog, rounding up the biggest business stories that may affect your portfolio.
Coinbase’s market valuation soared north of $75bn yesterday on its first day of trading on America’s Nasdaq exchange, marking a landmark inflection point for cryptocurrency and the broader digital asset sphere.
The largest crypto platform in the US undertook its hotly anticipated IPO via a direct listing. The group has ridden the crest of the crypto-craze in recent months, its fortunes closely tied with two of the largest cryptocurrencies - bitcoin and ethereum, both of which had surged to record highs in recent days but also saw some selling activity later on Wednesday.
Questions remain about how exactly Coinbase and crypto-assets should be priced, amid concerns that the soaring value of these speculative investments could signal bubble territory.
Last month James Norrington explored how blockchain, the technology underpinning cryptocurrency trading, is breaking and remaking the financial system. Here, Oliver Telling looks at the pros and cons of investing in the ‘unreal economy’ of non-fungible tokens (NFTs). For an explainer about this strange and complex (to say the least) world, have a read of the IC’s guide to cryptocurrencies.
Elsewhere, the vaccine saga hasn’t become any less complicated for Oxford university and AstraZeneca (AZN: Buy, 11 Feb 2021) with Denmark fully ceasing their Covid-19 jab roll-out. The country’s decision follows rising concerns about a suspected but extremely rare side-effect of blood clotting, which prompted the UK to offer all adults under 30 an alternative shot last week.
Oxford Biomedica (OXB), which posted full-year numbers this morning, is helping to manufacture the Astra vaccine in question via its ‘Oxbox’ facility in Oxford. The group delivered revenue growth of almost two-fifths last year.
Meanwhile, US banks earnings have started to roll in with JP Morgan (US:JPM) beating expectations yesterday, achieving a rise of almost 400 per cent in quarterly profits to $14.3bn. Chief executive Jamie Dimon said consumers now have more in their savings accounts, and are “coiled” and “ready to go”.
Yet US indices sold off yesterday after strong recent trading, boosted by continued expectation crushing financials from the biggest banks on Wall Street. It seems minds among US traders are shifting to consider whether the seemingly rapid economic bounce-back might actually require the Federal Reserve to tighten before its previously signalled ultra-loose timetable kicks in.
Read our take on all this morning’s top stories in our blog below.
