📈 Oil Prices Surge

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Major oil-producing countries such as Saudi Arabia, Iraq, and some Gulf states have announced unexpected cuts in their oil production. This decision has resulted in higher oil prices, upsetting the US & allies who have already been battling inflation for the past year.

In other news, a Chinese bank based in Rio de Janeiro is set to connect to China's cross-border interbank payment system to facilitate trade settlements between China and Brazil, essentially ditching the dollar. And in North Korea, there is currently a food crisis with analysts predicting that North Korea might fully restore cross-border trade with China as early as mid-year.

Markets

Opec oil producers announce surprise cut in output (3 minute read)
Major oil-producing countries, including Saudi Arabia, Iraq, and some Gulf states, have recently announced unexpected cuts in their oil production, a move that is likely to result in higher oil prices. These countries have reduced output in an attempt to stabilize the market. The US, on the other hand, has been calling for increased oil production to keep energy prices low. High energy and fuel prices in the past have contributed to inflation, increasing the cost of living for many households. Some experts are predicting that oil prices may increase by as much as $3-$10 per barrel due to these cuts. The US National Security Council has expressed its concerns, stating that cuts are not advisable in the current market situation.

China and Brazil reach RMB-based trade deal (5 minute read)
A Chinese bank based in Rio de Janeiro is going to connect to China's cross-border interbank payment system (CIPS) to help with trade settlements between China and Brazil. The connection will allow for direct exchange between Brazilian real and Chinese yuan, making commercial transactions between the two countries more affordable, which is all part of a larger deal between China and Brazil to use their own currencies instead of the US dollar for trade transactions. This move towards renminbi clearing arrangements was solidified in February when the People's Bank of China and the Brazilian central bank signed a memorandum of cooperation.

North Korea’s food crisis could push Pyongyang to resume cross-border flow in coming months (6 minute read)
North Korea is facing a food crisis and needs to import rice, grain, flour, sugar, and cooking oil. With its borders largely closed to China and Russia for the past three years, the country's economy has been suffering, and food shortages are becoming more severe. Analysts predict that North Korea might fully restore cross-border trade with China as early as mid-year, even though it has not yet relaxed its COVID-19 restrictions like its neighbor. The cross-border trade rail link with China resumed in January 2020, but cargo trucks have been unable to cross the border, which normally accounts for 70% of bilateral trade. However, bilateral trade between China and North Korea has risen by 142.8% year on year to US$327.4 million in January and February, despite the virus-related restrictions.

Investing

China's venture investing had a rough 2022 (2 minute read)
China's startup scene took a bit of a hit in 2022 amidst rising tensions with the U.S. and the ongoing pandemic woes. The previous decade saw China's tech companies rise to prominence, but the last year saw venture dollars invested in China plummet from $136.2 billion across 7,486 deals in 2021 to $69.5 billion across 6,186 deals in 2022.

The Good & Bad of Investing in the Stock Market (2 minute read)
In the stock market, one cannot expect to enjoy the benefits without taking on some level of risk. Even though the market can be volatile in the short term, it can also be an exciting place to invest, as the data shows. According to historical records, the stock market has generated positive returns in 75% of all rolling one-year periods. To better understand the concept, it may be helpful to explore various degrees of performance over these one-year periods, rather than just focusing on positive or negative returns.

Money

Income & Happiness: Your Mindset Matters (8 minute read)
Previous research has shown that money can buy happiness, but it's not quite that simple. A recent article explored the relationship between income and happiness, and found that while there is a correlation, it's not a perfect one. The data suggests that after a certain point, increasing income doesn't necessarily lead to more happiness. Further examination revealed that expectations and comparisons with others may play a significant role in how income affects our overall well-being.

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