Above the Fold

Discord Between Russia and Ukraine Continues to Rattle Markets

Aside from the obvious humanitarian impact a full-on conflict would have, the escalating tensions in the region have investors scrambling to reposition their risk exposure as President Biden warned of a likely attack by Putin-led Russian forces late last week. Emboldened by diplomatic support from China, rising energy prices (by which Russia mostly benefits), and a want (by Putin) to gain back control in the region lost at the end of the Cold War, the communist nation is pumping propaganda through its media machine to gain sympathy and cause to move forward. 

Russia has a fair amount to lose if it moves forward with an invasion, but Vladimir Putin wants to ensure that Ukraine does not become part of NATO (The North Atlantic Treaty Organization). Putin has been very vocal about NATO’s growing influence in eastern Europe and how he believes it threatens Russia’s national security. The growing likelihood of an attack has triggered an exodus from riskier equities, while money flows into Treasuries, and commodities such as gold and crude oil. In a bid to keep diplomacy moving forward, the U.S. Secretary of State is set to meet with the Russian foreign minister and a possible summit between Biden and Putin could follow (if Russia does not invade). 

Several NATO members could impose sanctions against the communist nation that would greatly affect its financial system, foreign assets of Russian oligarchs and even halt the implementation of Nord Stream 2 — a large, new pipeline that transports natural gas from Russia to Europe. The latter would most certainly send record gas prices even higher.  

Three Things 

1. Influencers and Digital Scammers Beware – The cryptocurrency boom has led to a myriad of scams and schemes that have defrauded millions of would-be investors out of untold amounts of cash. But a recent appeals court ruling, stemming from the pyramid-on-Ponzi scheme, BitConnect, has essentially ruled that individuals who promote unregistered (and unsavory) securities digitally can be held accountable, just as they would using traditional means. Of course, the question of the classification of cryptos remains in question.  
2. Apple, Amazon and Google Have a Kumbaya Moment – If you’re at all interested in tech, it’s likely there’s some sort of smart device in your home. From media players like Amazon’s Echo, to Google’s Nest Thermostat, or maybe an Apple HomePod, these devices can (arguably) make our lives easier. The problem is that different devices from different makers often need different apps to operate. To help solve that problem, several tech giants have agreed to use a new, common standard, called “Matter,” which will enable different gadgets from different manufacturers to be controlled by just about any app. Matter will roll out later this year and will be supported by many legacy devices as well. 
3. SpaceX, We Have a Problem … Elon Musk and his companies Tesla and SpaceX have all made substantial investments in Texas, from factories and corporate facilities to a rocket launch site in Boca Chica, Texas. But SpaceX’s mega spacecraft project, Starship, may have to move the rocket’s orbital launches to Florida due to environmental concerns. Starship is the tallest rocket ever built, and is designed to land, intact, back at its launch site. NASA is already planning on using it to take astronauts to the moon and beyond. 

Did You Know? 

Welcome, Florida!

After years of negotiations, it was on this day, back in 1819, that U.S. Secretary of State John Quincy Adams signed the Florida Purchase Treaty to acquire the old province of Florida from Spain. The Spaniards’ colonization of the peninsula dates back to 1565 in St. Augustine. The British gained control of the region in 1763, but returned it to Spain in 1783 at the end of the American Revolution. The state was finally admitted into the union in 1845.