How do I get advice for company formation?
Contact our Estate Planning desk with your details, our experts would contact you for further discussion to understand details of your requirements and would recommend you with the most suitable structure which would cover all your Assets, taking care of your legacy.
How do I open a Private Banking account through External Asset Management Desk?
In order to open a private banking account with our partnering Banks you need to get in touch with our EAM Desk, who would assess the client requirements along with KYC which is given for clearance and once the KYC is cleared, the team would recommend the client the appropriate booking centers and the recommended platform based on their specific Investment objectives.
Which countries are covered under the International Mortgage segment?
We have coverage in Mainland Europe, UK, U.A.E, Singapore, Australia and New Zealand for International Mortgages.
What are the Booking centers covered by the External Asset Management (EAM) Desk?
Below are the list of booking centers covered by our EAM desk:
Mauritius Cayman Island
Partnering custody banks are selected with a strict criteria of minimum BBB+ ratings.
Can the clients choose the issuer for investing into structured Notes?
The client would be given an option to choose between three best priced issuers after the investment idea has been discussed. The issuers are already filtered based on a minimum rating criteria by Devenir.
What are the Retirement Plan and Education planning services?
At Devenir, our team of experts advises clients on plans to help Integrate retirement plans and Education plan for Children into their regular planning through various tax advantaged accounts from our partners, helping our clients to have a tax sheltered growth and to take advantage of Bonuses, Grant Deposits available in various platforms.
How can you open a Devenir Trading account?
The account application is initiated by contacting the trading Desk in Devenir. We are required, by regulation, to verify the identity and address of all applicants and if copies of documents evidencing this information are required for your application, you will be provided with notice of this requirement and once all the KYC requirements are fulfilled, we send you a completed application form for your signature or a link for you to fill which can be signed and send to Devenir trading Desk. We would provide the instructions for submitting the documents once the online portion of the application is complete. Your application will then be reviewed for approval by our Compliance Officer which typically takes 1-2 business days assuming everything is in order. Once your account has been approved you may send funds, with the quickest being wire transfer from your bank although you may transfer assets from another brokerage account. The funding options and instructions are provided at the end of the application. There is a minimum required deposit of $20000/- to activate your account.
How do I open a Margin Account?
In order to open a margin account, you must choose Margin Account as your Account Type during the application process. If you open a cash account, you may also at a later date through Client Portal.
How do I get CFDs trading account?
Trade CFDs Alongside the Underlying Shares - Our Universal account lets you view and trade multiple asset types from the same screen. View the CFD ticker on one line and the underlying share ticker on the next. Trader Workstation, our desktop trading platform, supports stocks, options, futures, forex, metals, funds, CFDs and bonds all from the same account statement and same trading window.
Document Category Acceptable Documents (only one document per category is needed)?
Proof of Identity of the Account Holder
Please provide a current and valid document (or documents) that contains the following: full name, date and place of birth, clear photograph, signature of the holder, document number, expiration date, and country of issue. If the information required is on multiple pages, please provide copies of all of those pages.
National Identity Card
Proof of Residential Address of the Account Holder
The document must clearly list the applicant's name and the relevant address and must be less than six months old unless otherwise specified. Please provide a scanned version of a hard copy bill.
For example, a bill for electricity, gas, water, landline telephone, home broadband, or TV. Mobile phone bills are not acceptable forms of proof of address.
Council tax bill
Home insurance bill
Bank, mortgage or brokerage statement
Signed and stamped letter from your bank on the bank’s letterhead confirming address
Credit card statement (not older than six weeks)
Government issued letters or statements
For example, we would accept a property tax bill, confirmation of residential address from the local authorities or a pension statement. Must be on official government letter headed paper.
Driver’s license or national identity card
If you use your driver's license or national identification card as proof of identity, it cannot also be used as proof of address.
For HUNGARY only: ADDRESS CARD which shows the current residential address.
What are the list of countries covered by Devenir Trading platform?
Occupied Palestinian Territory
Indian Ocean Territory
British Virgin Islands
Hong Kong Special Administrative Region of China
Iceland Papua New Guinea
Antigua and Barbuda
Isle of Man
Cayman Islands Jamaica
Channel Islands and Jersey
Jordan Republic of Moldova
Kiribati Russian Federation
Saint Kitts and Nevis
Croatia Lao People`s Democratic Republic
Saint Pierre and Miquelon
Saint Vincent and the Grenadines
Bosnia and Herzegovina
Czech Republic Lesotho
Liberia San Marino
Sao Tome and Principe
Macao Special Administrative Region of China Serbia
Faeroe Islands Martinique
Falkland Islands (Malvinas)
Svalbard and Jan Mayen Islands
Federated States of Switzerland
Taiwan (Republic of China)
The former Yugoslav Republic of Macedonia
Trinidad and Tobago
Guam New Zealand
Turks and Caicos Islands
Guinea-Bissau Norfolk Island
United Arab Emirates
Northern Mariana Islands
United Republic of Tanzania
United States Virgin Islands
Wallis and Futuna Islands
What are the acceptable funding methods for Direct and Asset transfer into Devenir trading account?
Automatic Bank ACH Transfer
Bank ACH Transfer from Your Bank
Automated Customer Account Transfer Service
Account Transfer on Notification (ATON)
Online Bill Payment
US Futures Asset Transfer
Free of Payment (FOP)
European Asset Transfer
Asian Asset Transfer
What are the Lending Margins for Share CFD programs?
Standard IBKR Margin
2 x Maintenance Margin
Risk-based calculation described below (minimum 10%)
50% of Initial
Max (IBKR Initial, ESMA Initial)
Max (IBKR Maintenance, ESMA Maintenance)
1.25 x Maintenance Margin
Risk-based calculation described below (minimum 10%)
What is model portfolio structuring?
Client investments are allocated among instruments in the Model based on the Model's allocation ratios as defined by the account manager using the clients Risk profile.
How do I customize my reporting?
Our wide range of activity and risk reports, in conjunction with our advanced portfolio analysis, can help you easily track your account’s overall performance and monitor your trading activity to any level of detail. Configure our customizable, reusable reports to include the vital data you need for your unique approach to trading and investing.
What activities come under the SME merchant Banking activities?
Our merchant banking desk, covers the below activities under Merchant Banking and Corporate Finance.
Merchant Banking -
Corporate Finance -
Public Issues – Initial and Follow on Public Issues- Main Board/SME.
Preferential Allotment, Rights, and Bonus Issues.
Qualified Institutional Placements
External Commercial Borrowings
Open offer, Buy Back and delisting offer management.
Working Capital Loan
FCCB’s/ ADRs/ GDRs
Institutional Trading Platform
Joint Venture/ Outright Sale
Which exchanges are used for the SME corporate listing program?
Majority of our Debt listing is done in Frankfurt on all segments of the exchange (the Entry Standard, General Standard and Prime Standard segments) as well as Vienna Stock exchange. We also have listing facilities with other recognized stock exchanges.
How do I subscribe to Devenir Management Managed account service?
A managed account is an investment account that is owned by an individual investor and overseen by a hired professional money manager. After understanding the objective to our team if Expert Money Managers. Managed accounts are personalized investment portfolios tailored to the specific needs of the account holder.
How do I tie-up for Institutional Products?
We distribute a broad array of Alternative Investment products as direct distributors, which Includes ETFs, Hedge Funds, Structured Notes, Fund, REITS.Inorder to initiate a tie-up directly contact our Institutional desk.
How do I view the components of my Managed Portfolio?
By clicking on Managed Portfolio you can display the underlying components and their value. A Managed portfolio can invest across asset classes, including stocks, options, futures, forex, bonds and funds according to mandate. The client can choose to establish target percentage allocations or to keep them dynamic
Devenir Capital specializes in helping high net worth individuals and companies reach their personal and professional goals as we understand that people who have achieved great success have worked hard and sacrificed much to get where they are and see goals in not just financial terms. We have helped successful individuals and businesses continue to manage their wealth with smart, well-thought out investment strategies. We focus on creating and benchmarking a comprehensive wealth strategy including, but not limited to, asset management, tax strategy, business financial planning, business estate planning, corporate services, investment banking, retirement plans and insurance needs so that we can create, develop and service all our clients wealth management needs. We also specialize in distribution of Alternative investment solutions for other institutions, popularizing various investment solutions in line with market trend. We are proud of our strong relationships with expert advisors dealing with the affluent market – we work closely with some of the nation’s finest professionals and provide our investment solutions to their clients.
Information contained in this website is for informational purposes only and does not constitute a recommendation, offer, general solicitation or confirmation of terms. Investments and investment strategies discussed on this website may not be suitable for you. You should weigh any investment decision carefully after considering your specific investment objectives and financial circumstances. Information contained in this website is based upon generally available information believed to be reliable, but no representation is made as to the accuracy, timeliness or completeness of such information or that any returns indicated will be achieved. Changes to assumptions may have a material impact on returns. Price/availability is subject to change without notice. Past performance is not indicative of future results. The information contained in this website is not intended for distribution or use in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.
Summary: As the productivity of America's workforce deteriorates, compounded by stagnating participation in the labor force, automation and robotics are becoming increasingly critical technologies for employers of all sizes. Some of the largest, particularly Amazon, are now at risk of running out of workers in just a few years due to high churn rates.
Amazon has long been a leader in deploying robotics in their warehouses and other logistical operations, but just this month announced the first launch of a fully-autonomous floor unit. Walmart is continually deploying similar technologies in their distribution centers via a partnership with AI specialist Symbotic, which just went public a few weeks ago via a SPAC merger.
Related ETFs and Stocks: Global X Robotics & Artificial Intelligence ETF (BOTZ), Robo Global Robotics and Automation Index ETF (ROBO), Symbotic Inc. (SYM)
Amazon is a Beacon for Warehouse Robotics Tech
Over the course of its life, TechCrunch reports Amazon Robotics has deployed more than 520,000 robotic drive units across its fulfillment and sort centers. Their latest deployment, Proteus, may be the most transformational launch of the entire last decade, given its fully autonomous nature.
Proteus is meant to move large carts throughout its warehouses, safely navigating itself around human employees, unlike some of its past robots that has been separated into a caged area. VentureBeat notes Amazon has launched an additional warehouse system known as Cardinal, a robotic arm that can lift and move packages weighing up to 50 pounds. The company says Cardinal, which should be deployed next year, utilizes computer vision systems which let it pick out and lift individual packages, even if they’re in a pile.
As MRP has previously noted, Amazon begun its automation drive in 2012 with the acquisition of material handling technology company Kiva Systems for $678 million. The company followed that with the launch of its own cloud-based robotics platform, AWS RoboMaker, and an additional purchase of warehouse robotics startup Canvas Technology Inc. in 2019.
Robotics has become an even more critical pursuit for Amazon in the past couple of years – particularly in the wake of COVID-19 and a resulting boom in ecommerce. Increased demand for delivery of goods was so immense during the worst of the pandemic that that the company was forced to hire hundreds of thousands of new workers in the span of a few months, spending more than $500 million to increase wages in 2020.
Decline of the American Workforce Advances Automation
A rising problem for Amazon, however, is that they are simply running out of workers – making their deployment of automation technologies like robotics ever more critical.
Internal research from the company, obtained by Vox’s Recode and reported on earlier this month, found that Amazon could run out of employees to hire by 2024. This is due to the company’s high level of turnover (or churn), meant to capitalize on the efficiency of fresh employees and eliminate complacency or fatigue that could weigh down longer-term employees. Unfortunately for Amazon, that strategy has managed to cut through the equivalent of its entire front-line workforce year after year.
Recode notes Amazon’s attrition rate was 123% in 2019, jumping to 159% in 2020. That was significantly higher than turnover rates across the broader US transportation and warehouse sectors at 46% and 59%, respectively, in 2019 and 2020, according to Bureau of Labor Statistics (BLS) estimates.
It’s not just Amazon that’s running up against a wall in the labor market. Even firms with regular levels of churn are facing continual issues with sufficient staffing levels. Total nonfarm job openings in the US, also known as job openings and labor turnover (JOLTS) and measured by the BLS, were only slightly off all-time highs at 11.4 million in April – the most recent month of data that has been reported.
A major cause for this shortage of workers across the board is a persistently subdued participation rate in the US labor force. Prior to the pandemic, the participation rate – the number of people in the labor force as a percentage of the civilian noninstitutional population – was 63.4%. That compares to just 62.3% in May 2022; a difference of more than -200,000 workers. Essentially, over the course of more than two years, the labor force has not recovered to pre-pandemic levels while the economy has. Even prior to the pandemic, the participation rate had been in decline for two decades, falling nearly continuously from a peak of 67.3% in February 2000.
Additionally, nonfarm labor productivity in the US tumbled by an annualized -7.3% in the first quarter of 2022. That sudden decline was the steepest contraction in labor productivity in nearly 75 years. The decline was driven by lower output, sliding -2.4%, despite a 5.4% gain in hours worked. Compounding the decline in productivity, unit labor costs in the US nonfarm business sector surged by 12.6% in in Q1. Throughout the past year, unit labor costs increased 8.2%, the largest annual increase since Q3 1982.
Judging by this latest array of data, labor is increasingly expensive and scarcer, while simultaneously becoming less productive. Given that trend, automation may not only be a preferable solution for many occupations, it could become a necessity.
Walmart Deploying Bots, Startups Raising Cash
Amazon is not the only major ecommerce retailer expected to continue scaling up its use of robots. Gartner predicts that 75% of large enterprises will have adopted some form of intralogistics smart robots in their warehouse operations by 2026.
In May, Walmart expanded its partnership with AI supply chain tech group Symbotic, rolling out the group’s pipeline of robotic solutions and software automation platforms at all 42 of its regional distribution centers. Per IoT World Today, Symbotic’s system features mobile robots that can move stock, and robotic arms to pack and unpack items, processing 1,700 cases per hour.
Symbotic, which was backed by Softbank and others to the tune of a $5.5 billion dollar valuation, just concluded a SPAC merger to take the company public that raised $725 million. Its equity valuation was also boosted to $10 billion by the end of the company’s first day of trading on June 8. Along with Walmart, which now owns an 11% stake in the company, the Financial Times reports Symbotic serves Albertsons, C&S, and others, reporting a $11.4 billion backlog of committed sales.
Smaller startups around the world, like Poland’s Nomagic, continue to pick up consistent fundraising rounds. TechCrunch reports Nomagic has developed a robotic arm that can identify and pick out an item from an unordered selection (say, from objects in a box) and then move or pack it into another place. The company recently raised $22 million.
In China, warehouse automation firm Hai Robotics has announced a $100 million series D+ funding round. That cash was piled onto an additional $215 million raised throughout 5 prior fundraising efforts. The company’s Haipick bot uses autonomous case-handling robotic systems (ACR) to store and retrieve up to eight cases at a time in tall, narrow storage aisles. By condensing aisles, Modern Shipper writes that the Hai system is able to increase storage density between 80% and 130% while improving warehouse efficiency by as much as four times.
Summary: Nearly two months ago, MRP highlighted rising demand for commercial satellite imagery and associated data from three key firms in the industry. At the end of May, all three of the firms we highlighted, Maxar, BlackSky, and Planet Labs, were recipients of billions of dollars' worth of new federal contracts spread out over the next decade.
The conflict in Ukraine has served as an "internet moment" for geospatial intelligence that can be utilized inside and outside of wartime by media and government agencies alike, providing a much-improved ability to visualize and map out training grounds, armored vehicles, and troop movements. BlackSky saw revenue nearly double in the first quarter of this year while Maxar cut its net loss by 92%.
Related ETF & Stocks: SPDR S&P Aerospace & Defense ETF (XAR), Maxar Technologies Inc. (MAXR), BlackSky Technology Inc. (BKSY), Planet Labs PBC (PL)
On April 26, MRP highlighted the key role satellite imagery is playing in the US’s monitoring of Russia’s attack on Ukraine. Government agencies and media sources alike have been bombarding satellite companies for photographs, 3D mapping, and other data, prompting the firms to expedite the expansion of their constellations. This was referred to as geospatial intelligence’s “internet moment” by Bill Rozier, the vice president of marketing at publicly traded satellite imagery provider BlackSky.
Just about a month later, on May 25, the US National Reconnaissance Office (NRO) announced they’d be funding three firms with billions of dollars in defense contracts throughout the next decade as part of its Electro-Optical Commercial Layer (EOCL) program. Each of those chosen firms, Maxar Technologies Inc., BlackSky Technology Inc., and Planet Labs, were direct focuses of our April intelligence briefing on this budding industry.
Maxar, in a securities filing, said its 10-year EOCL contract is worth up to $3.24 billion, with a five-year base contract of $1.5 billion and optional contracts worth up to $1.74 billion. BlackSky’s contract is valued at up to $1.02 billion over 10 years. Planet was more secretive about the value of its deal with the NRO since it is currently in a quiet period in its lead up to their quarterly earnings call. More details should be available on June 14 when they report.
As TechCrunch writes, commercial imaging capabilities in orbit have likely outstripped many assets put in place over the last few decades by the NRO. It’s not particularly feasible to launch a new, “secret” constellation that provides the level of coverage those providers do, so they’re just going to pay for the kind of high-level access the companies always knew would be valuable.
Use Cases Demonstrated in Ukraine
Uses for satellite monitoring have been plentiful throughout the last year, even long before the formal invasion of Ukraine began. As far back as June of 2021, when MRP first began covering Russia’s buildup of their troops in the southwest of the country near the border of Ukraine, satellite images were instrumental in helping the government agencies and media outlets observe Russian training sites, armored vehicles, and other military footprints. By the end of the year, Maxar had already locked up more than $100 million in new defense and intelligence contracts.
Just before Russian troops begun their invasion of Ukraine, The Wall Street Journal notes satellites were detailing the Kremlin’s plans. When Mr. Putin said his troops massing at the border were pulling back, satellites showed the opposite, and that Russia had built a bridge from Belarus for tanks to cross a river into Ukraine. Planet Labs was able to spot the bridge because its fleet of roughly 200 satellites scan all of Ukraine once a day, Planet co-founder and Chief Executive Will Marshall told the Journal.
Space News has reported the NRO and the National Geospatial Intelligence Agency more than doubled their purchases of commercial electro-optical imagery over Ukraine since the conflict started. Since the start of the year, Axios reports Maxar has been cited by the media more than 54,000 times. Much of this data is also being made available to Ukraine to aid their military operations.
As we highlighted in April, satellite imagery has also been used to ascertain more a more accurate number of military and civilian casualties. For example, Maxar’s satellite photographs helped confirm ground-level footage showing bodies in the streets of Bucha, a suburb of Kiev, as well as grave trenches and other evidence in the city that may be indicative of what US President Joe Biden has referred to as “war crimes”. As WIRED Magazine writes, a new government-funded Conflict Observatory, partnered with Yale University’s Humanitarian Research Lab, the Smithsonian Cultural Rescue Initiative, and several other private firms will use open-source investigation techniques and satellite imagery from the National Geospatial-Intelligence Agency's commercial contracts with private companies to continue collecting evidence of possible war crimes.
Earnings and Valuations
Though revenue is booming and profitability improving for satellite imagery firms, valuations in the sector have been deteriorating for some time. The aforementioned NRO contracts provided a quick boost to share prices, but most remain well-off of previous highs reached in autumn 2021.
Per CNBC, Maxar reported $405 million in first quarter revenue for 2022, up slightly from a year prior, with an adjusted EBITDA profit of $84 million, a 25% increase. Maxar’s order backlog fell 14% from the fourth quarter to $1.6 billion. On a per-share basis, Seeking Alpha notes the Westminster, Colorado-based company posted a per share loss of -$0.10, but net loss was trimmed to -$7 million from -$84 million a year ago. Maxar has been the best performing stock in this industry, mostly keeping pace with the S&P 500 over the last 8 months.
BlackSky reported record revenue of $13.9 million in the first quarter, up a whopping 91% from the prior year period. Adjusted EBITDA showed a loss of -$9.5 million, a 53% improvement YoY. BlackSky’s full year 2022 guidance projects revenue between $58 million and $62 million – but Via Satellite notes that is down significantly from when the company first announced plans to go public in February 2021 and projected $114 million in revenue for 2022. Since BlackSky completed its SPAC merger with Osprey Technology Acquisition Corp. on September 9, 2021, the stock has plummeted roughly 80%.
As we mentioned earlier, Planet Labs will post their latest quarterly results next week.
Summary: Ethereum is closing in on a major milestone as part of its ETH 2.0 upgrade that will cut energy usage by 99% and issuance of the blockchain's native token, Ether, by 90%. After several prolonged delays, a "merging" of Ethereum's current main chain and the "beacon" chain of ETH 2.0 is now expected to take place between August and October of this year. This will initiate the use of a new proof-of-stake consensus on Ethereum, effectively squeezing miners out of the equation and replacing them with "validators".
The first iteration of this merge is scheduled to begin next week on Ethereum test networks, continuing development throughout the next few months. There is already more than $23 billion worth of Ether now deposited in the ETH 2.0 staking contract, indicating just how much anticipation there is for the launch of the upgrade.
Related Assets: Ethereum (ETH-USD), Grayscale Ethereum Trust (ETHE)
After numerous delays, the largest Ethereum network upgrade to date, referred to as ETH 2.0, is finally moving ahead at full speed.
As MRP previously defined it in our original report on the blockchain network, Ethereum is a decentralized, open-source blockchain featuring smart contract functionality and serves as the largest platform for other tokens to be built out on top of. Other popular cryptocurrencies like ChainLink (LINK), Uniswap (UNI), USD Coin (USDC) and many others are Ethereum tokens built on the ERC-20 standard, making them compatible with Ethereum’s main network (mainnet).
Ethereum’s Native token, Ether (ETH) has long been the second largest cryptocurrency behind Bitcoin, now making up 19% of the entire cryptocurrency market. ETH’s current exchange rate in USD terms is equivalent to about $1825 as of this writing, generating a market cap of $220.6 billion. A significant part of ETH’s growth has been its presence as the leading blockchain for decentralized finance (DeFi) protocols, blockchain developers’ quest to offer banking services without the necessity of actually needing traditional banking institutions, as well as non-fungible tokens (NFTs), which MRP has previously covered in detail.
Ethereum Shifts from Mining to Staking
Following speculation that a long-awaited upgrade to ETH 2.0 will likely be solidified by a “merging” of the current Ethereum blockchain and the ETH 2.0 "beacon" chain within the August - October period of this year. This merge is a major milestone that will mark a point of no return on the Ethereum network. The key difference between these two chains is that Ethereum’s current mainnet is secured by a proof-of-work (PoW) consensus (commonly known as mining), whereas the ETH 2.0 chain is secured by a proof-of-stake consensus (PoS).
Under PoS, “mining” will no longer be required, with miners’ responsibility to validate blocks of transactions on the blockchain being taken over by “validators”. For a more in-depth explanation of mining, please see our recent intelligence briefing, Bitcoin Mining Activity, Adoption of Sustainable Energy Capacity Swells toward All-Time Highs. Miners can still attempt to mine blocks on Ethereum, but with much higher difficulty and, therefore, much higher costs.
Switching to a PoS protocol may also cut Ethereum’s energy usage by 99%, allowing the network to scale to 100,000 transactions per second. It will also eliminate environmental concerns that have surrounded PoW in recent years. MRP has done extensive work rebutting such concerns, primarily concerning Bitcoin mining, but the criticism will likely persist for some time. The merge will is also expected to cut the issuance of ETH by about 90%. Unlike other cryptocurrencies like Bitcoin, ETH has no hard-capped supply and could theoretically expand infinitely. Less ETH in circulation means, of course, less supply and higher demand, which should push the price of the coin up.
Validators Prepare to Propose Blocks
As the name suggests, validators are stakeholders who have at least 32 ETH ($58,400) deposited into the ETH 2.0 staking contract and are assigned a certain share of Ethereum network transactions to validate. As Consensys writes, Ethereum’s PoS blockchain, the beacon chain, is built on a unit of time called the slot. Every 12 seconds, a validator gets chosen to be the block proposer. Once a block of transactions is minted and propagated, an attester committee of validators vote for this block to be part of the canonical chain. If the committee votes in favor of the proposed blocks, the transactions within the block are validated.
Just as miners receive rewards for solving blocks, validators will be issued a reward for proposing blocks. Technically, ETH 2.0’s PoS mechanism and beacon chain have been running the ETH 2.0 deposit contract since December 2020. That contract now has more than 12.76 million ETH ($23 billion) deposited, representing more than 10% of ETH’s circulating supply, and earning an APR of 4.67% according to StakingRewards.com.
Smaller investors who do not have the required 32 ETH to become validators will not be left out in the cold, however. Staking pools, a sum of deposits varying in size that combine to exceed the 32 ETH threshold, have been set up across the crypto space, allowing virtually any amount of ETH to be deposited into the staking contract. The pool then pays out fractional levels of interest, reflective of each participant’s share of the pool. Lido is one of the most popular decentralized staking pools, with deposits on Ethereum worth more than $7.68 billion.
Staked ETH deposits are currently locked into the ETH 2.0 staking contract and can only be withdrawn after phase 1.5 of the network upgrade goes live sometime after the merge. At this time, there is no official date for implementation of phase 1.5, but it is expected to go live sometime in 2022.
Ropsten Merge Imminent, ETH 2.0 Nears 75% Completion
On May 30, Ethereum announced the launch of a new beacon chain on the Ropsten network, Ethereum’s oldest test network (testnet), to provide consensus. Ropsten’s shift to PoS is expected to be completed on June 8, and will be the first step toward the broader merge on the mainnet. Because of its highly close resemblance with the ETH main chain, developers can run real-time experiments on it before adding the updates to the mainnet. According to a blog post by Ethereum: “After the Ropsten transition, two more testnets (Goerli and Sepolia) will be transitioned to proof-of-stake before focus shifts to mainnet.”
Per StakingRewards.com, 61 closed tasks on Ethereum’s GitHub repository indicates 74.39% progress on the ETH 2.0 upgrade. MRP will continue to update our research on ETH 2.0 throughout the summer as the merge gets closer. For all of our research on digital assets and blockchain in one place, see our Weekly Crypto Wrap – delivered every Friday morning.
Summary: Q1 data shows gold demand started the year off strong. However, prices for the precious metal have backed off from their 2022 highs as the Fed begins to tighten up monetary policy. The Dollar has risen strongly on the back of the Fed's plans for several months, depressing the price of gold further.
The minutes from the FOMC's most recent gathering, released yesterday, show the central bank gearing up for two more 50bps rate hikes following one this month. Surprisingly, that release failed to move the Dollar, which could indicate a significant amount of front-running by traders already pricing in a 2% upper limit on the Fed Funds rate. If inflation continues to hold strong, despite the Fed's tightening regime, that could be a positive signal for gold prices moving forward.
Related ETF: SPDR Gold Shares (GLD)
Though all of 2021, central banks added 463 tons of gold to global reserves, an 82% jump YoY. Buying slowed toward the end of the year, but Schiff Gold reports global central banks have begun to re-accelerate their buying this year. Net gold holdings increased by 83.8 tons in Q1 2022, more than doubling the 41.2-ton expansion of central bank gold reserves in the previous quarter.
The World Gold Council reports physical gold demand (excluding OTC) increased 34% YoY to 1,234 tons, the largest increase since Q4 2018 and 19% above the five-year average of 1,039 tons. Meanwhile, gold ETFs had their strongest quarterly inflows since Q3 2020.
That strong demand, largely spurred on by geopolitical uncertainty, helped gold prices start the year strong. Gold crossed the $2,050 per oz threshold in March for the first time since 2020 but has since then weakened by about 10%.
Still, ETF inflows continued into April, as global gold ETFs registered net inflows of 43 tons (equivalent to $3 billion) – a fourth consecutive month of positive flows. Additionally, CNBC reports the Central Bank of Russia resumed gold purchases in their domestic metals market after a two-year absence.
According to Charles-Henry Monchau, chief investment officer at Switzerland-based Syz Bank, Russia resumed gold purchases at a fixed price of ₽5,000 per gram (₽141,748 or $2,268 per oz) between March 28 and June 30. However, given the Ruble’s rapid appreciation throughout the past several months, touching a seven year high versus the US Dollar (USD) in recent days, Russia has said they will renegotiate that price.
Part of the reason for gold prices being restrained below all-time highs, despite solid demand in the market, is the fact that the metal is priced and traded in US Dollars. Aside from the Ruble, the Dollar has been rising rapidly versus virtually all major currencies, pushing the USD Index (DXY) to 20-year highs this month. Over the last year, gold has slumped about -3% in Dollar terms, but if you were to price gold in Euro, the precious metal is up close to 11%.
The swelling of the Dollar will likely need to be broken before gold can resume any significant move higher.
Part of that will be tied to the US Federal Reserve’s plans in the months ahead as tightening monetary policy typically coincides with a stronger currency. Surprisingly, the greenback hardly moved yesterday after the release of minutes from the FOMC’s May meeting. Following the largest rate hike in 22 years at 50 bps, a majority of policymakers “judged that 50 basis point increases in the target range would likely be appropriate at the next couple of meetings”, according to the minutes.
At first glance, that seems like a very hawkish sentiment that would push the upper limit of the Fed Funds rate up to 2% for the first time since late 2019. However, the rate hikes were qualified by a need to “expedite” policy to make sure the central bank is “well positioned later this year to assess the effects of policy firming and the extent to which economic developments warranted policy adjustments.”
The Fed did not discuss the downside risk to economic growth presented by higher rates at length, but their apparent desire to re-assess policy toward the end of the year may be signaling a need to front-load rates now and begin backing off as the year progresses. That would line up well with Fed Chairman Jerome Powell’s previous comments noting there was “something in the idea of front-end loading”. More recently, St Louis Fed President James Bullard has said that front-loading could perhaps lead to the central bank “lowering the policy rate” by 2023. However, that would be contingent upon the Fed getting inflation back toward their long-term target of 2%.
With the Dollar refusing to budge on the minutes release, one could conclude that many traders are front-running expected rate hikes and the Dollar trade has already come close to its peak. If a potential rise in the Fed Funds rate to 2% is already priced into the DXY, that could mean most of the downside is also priced in for gold.
As we noted in our most recent Viewpoint report, Stagflation At Best, MRP still sees significant potential for inflation to continue gathering momentum and remain elevated for some time. We did see a slight decline in the YoY change in the CPI, falling from 8.5% in March to 8.3% in April, but it’s important to remember the “fakeout” move in the June-August period of 2021 when gains in the CPI last begun to subside, falling from 5.3% to 5.2%. That is, before inflation exploded another 63% higher.
Even if inflation has not peaked, we believe that it will be some time before inflation approaches 2% again. According to the Fed’s preferred inflation gauge, the core PCE, YoY inflation is 5.2%. Consistent monthly prints as low as 0.2% through the end of the year would keep the YoY change in that index above 2.8% by December 2022.
If we do continue to see persistently high inflation, in spite of higher rates, that will likely re-ignite the appeal of gold as a hedge against it. It would also likely push down the Dollar, bolstering gold’s market price further. Like the great Nobel economist Milton Friedman, our belief is that “inflation is always and everywhere a monetary phenomenon”. In that vein, we expect the Fed will struggle to clear out the trillions of dollars they have injected into the economy throughout the last two years.
Summary: Steel stocks have been a rollercoaster in 2022, but the latest news out of the US and China heralds the potential for another breakout on rising infrastructure spending. Though global steel demand will rise only slightly this year after seeing strong gains in 2021, 2023 is likely to be a year of resurgence.
Following US Steel Corp.'s record first quarter, optimism is high among steel producers with mills in America - set to get exclusive access to hundreds of billions of dollars in stimulus spending over the next several years. China will also be launching a wave of industrial stimulus in the coming months, focused on reviving their economy after months of restrictive COVID lockdowns.
Related ETFs & Stocks: VanEck Steel ETF (SLX), Materials Select Sector SPDR Fund (XLB), United States Steel Corporation (X)
In April, the World Steel Association forecast steel demand would grow by 0.4% in 2022 to reach 1,840.2 million tonnes after increasing by 2.7% in 2021. In 2023 steel demand is expected to accelerate further, growing by 2.2% to reach 1,881.4 million tonnes.
Last month, The Biden administration gave a boost to steel mills operating in the US, mandating that American steel be used in infrastructure projects receiving federal funding. More specifically, guidance provided by the White House required 100% US-made iron, steel, and construction materials to be used, as well as at least 55% other manufactured products by cost. Those requirements went into effect on May 14 and Barron’s reports they should provide US steel plants with about 10 million tons of new steel demand from government-led projects – equivalent to roughly 10% of total US demand.
Six months after the signing of President Biden’s $1 trillion infrastructure package, the government said earlier this week that there are 4,300 projects underway with more than $110 billion in funding announced.
Late last month, US Steel Corp. predicted a “best-ever” second quarter on tap, due to growing steel demand from automakers to construction firms. That came after sales for the quarter surged 43% to $5.23 billion, earning the firm a record quarterly profit of $882 million.
Bloomberg notes the company’s upbeat tone echoes Nucor Corp., Cleveland-Cliffs Inc. and Steel Dynamics, which all expressed optimistic sentiments about the market after reporting stronger-than-expected demand.
US Industrial production rose 1.1% MoM in April, bouncing back from a smaller gain of 0.9% in the prior month. Median forecasts in a Bloomberg survey of economists called for an 0.5% gain. On a YoY basis, industrial production increased 6.4%. Capacity utilization at factories increased to a 15-year high of 79.2%, the Fed’s report showed.
The US isn’t the only country leaning on an infrastructure drive to re-accelerate economic growth.
As MRP wrote earlier this month, Chinese President Xi Jinping has called for an “all-out” effort to boost infrastructure last week. While no specific spending increases were mentioned, CNN notes infrastructure investment has already risen by 8.5% in the first quarter of 2022 YoY. Prior to the proclamation, local governments had already drawn up lists of thousands of “major projects” by early April to be initiated this year. Bloomberg reports planned investment for 2022 amounts to at least ¥14.8 trillion ($2.3 trillion). A re-acceleration of Chinese industrial activity could help prices of base metals rebound after a broad weakening of futures across the past few months.
China's crude steel output picked up in April, rising 5.1%, as the world's biggest steel producer made 92.78 million tonnes of the metal last month, data from the National Bureau of Statistics (NBS) showed on Monday. However, that output remained down 5.2% from the same month last year. In the first four months, China made 336.15 million tonnes of the metal, down 10.3% YoY.
Unfortunately, as we wait on the initiation of China’s infrastructure projects, that supply has met relatively underwhelming demand thus far. China's factory activity contracted at its fastest in 26 months last month, as the official Purchasing Managers’ Index (PMI) for manufacturing fell to 47.4 in April from 49.5 in March. April marked a second straight month of contraction as the index fell below the base level of 50.
Satellite images from Four Squares Technology, cited by Bloomberg, show the area of new construction in China’s three main economic belts around the cities of Shenzhen, Shanghai and Beijing fell 57% YoY in March, according to Four Squares. In the belt around Shanghai, the area of new construction fell 83% in the period.
Any sign of faltering demand from China, the world’s largest consumer of commodities, is going to reverberate throughout base metals and processed metallurgical products. Prices for those goods have slumped broadly, punishing mining and steelmaker stocks throughout the past couple of months. Since the start of April, the Materials Select Sector SPDR Fund (XLB) and VanEck Steel ETF (SLX) are down -8% and -18% after a strong start to the year for each.
However, as broad infrastructure spending in the US and China begins to take effect as the year rolls on, and Chinese COVID lockdown measures begin to ease, that should present a boon for steelmakers.
Like the US, Western Europe will likely be relying more heavily on local steel producers due to falling output from Ukraine – typically the world’s 13th largest producer of steel products and the 5th largest exporter to the European Union (EU). Though the EU has proposed suspending tariffs on all Ukrainian goods (including steel) for one year, the Russian invasion has crippled the country’s industrial capacity. Russia has been an even larger supplier but it is becoming increasingly difficult to maintain that relationship with European nations.
Summary: The war in Ukraine has materially disrupted the export and transportation of agricultural commodities, stoking fears of a global food crisis that could drive millions into famine. Recent setbacks in crop production are further ratcheting up food prices that have already been stoked by severe inflation and climate change.
Vertical farming technology could present a long-term solution to future catastrophes like this and may be implemented at an accelerated rate throughout the next decade. Indoor farms are able to operate 365 days a year, allowing for stable output regardless of weather patterns or harvest cycles. These farms require only a fraction of the water use of traditional farming and can be constructed in urban areas, limiting transportation time and costs. Investor interest in these farms is likely to rise further as a global food crisis looms.
Related Stocks: Invesco DB Agriculture Fund (DBA), Hydrofarm Holdings Group, Inc. (HYFM), AppHarvest, Inc. (APPH), CubicFarm Systems Corp. (CUBXF)
Global Food Crisis Fears Spread, Shortages Persist and Inflation Rises
A multitude of factors converging at the same time has the world concerned about food supply-chains and affordability, prompting some world leaders to address the potential of a global food crisis.
One of those factors affecting food production is climate change, specifically the ongoing drought depleting crop yields. MRP has repeatedly reported on the situation, yet the outlook continues to worsen as the summer season rapidly approaches.
According to AP News, climate experts reported that March was the third-straight month of below-average rainfall across the United States. In the Pacific Northwest, experts are predicting that the region will experience the driest summer on record, with 71% of the area already covered in drought.
State governments are telling farmers in both California and Oregon that they will be receiving a fraction of the water allocation they normally do, the third straight year that farmers will struggle to produce strong yields in the face of dwindling water supplies.
In Arizona, CNBC notes that farmers take up roughly three-quarters of the state’s water supply to irrigate their crops. However, water cutbacks have led some farmers to sell their land to solar developers or leave farms completely empty and conserve any water they have on hand.
This issue is not unique to just the United States. In China, unpredictable weather events caused by climate change have damaged 30 million acres worth of crops last year, pushing up the price of food. These events are only forecast to occur more frequently, which has led the Chinese government to push for stronger food security, per Bloomberg.
Meanwhile, the Russian invasion of Ukraine has only intensified the crisis. Scientific American writes that the ongoing conflict between the two countries, coupled with more frequent and intense climate disruptions, could combine to create a worldwide food crisis.
As MRP has recently highlighted, Russia and Ukraine account for a significant portion of the world’s agricultural needs and fertilizer supply, both of which are significantly limited as the war drags on.
Egypt, Turkey, Indonesia and Bangladesh are the top importers of wheat from Russia and Ukraine. Nearly 50 countries, including some of the world’s poorest countries, depend on those two sources for more than 30 percent of their wheat needs, according to the U.N. Food and Agriculture Organization.
The war has made virtually every component of the global food supply chain more expensive. Supermarket prices around the world are expected rise as much as 20%, while at least 44 million people are at risk of famine, per The Week. Russia’s invasion has created “catastrophe on top of a catastrophe”, notes the UN World Food Program.
Some experts have an even worse outlook. Soaring food prices could send more than a quarter of a billion people in poverty this year, says Oxfam International. The latest warning has caused US Treasury Secretary Janet Yellen to convene a meeting of top international financial officials to discuss the potential global food-security crisis, which she has called “an urgent concern.”
While short-term solutions to the food crisis have yet to reveal themselves, avoiding a similar situation in the future is just as important to solve. Part of that solution is increasing the investment put into the development of vertical farming technology, a process that generates higher crop yields with much less waste.
Vertical Farming Technology and Food Security
Vertical farming has seen its adoption rapidly accelerate over the last few years, yet it still remains a niche part of the agricultural industry. MRP last reported on hydroponic systems back in January, noting that further investment is key to boosting vertical farming development, which now appears crucial to avoiding future food crises.
Farmers around the world will have to increase their crop yields by 70% over the next 30 years to meet the demand from rising populations, doing so with much less water supply.
Yields can be maximized with indoor farms as they are able to operate 365 days a year, while traditional farming methods are limited based off harvesting cycles and weather patterns. Additionally, since these structures are vertical, the number of crops grown per acre is significantly higher. Utilizing vertical indoor cultivation methods, crops can be grown with roughly 10% of the water that is demanded by field-grown crops, per Produce Grower.
MIT Technology Review found that Smart Acres, a vertical farming startup based in Abu Dhabi, can produced 20 times the greens in a year that traditional farming methods would on the same square meters of land.
While most vertical farms start out with just leafy greens, many are beginning to expand their operations to other crops, including strawberries and tomatoes. EcoWatch notes that the process is currently very energy intensive and unprofitable for farms that try to produce grains and wheat.
However, Senthold Asseng, agriculture professor at the University of Munich, finds it “quite conceivable to increase the global mean annual per-hectare wheat yield by a factor of 6000” if the technology continues to develop.
The New York Times recently reported on vertical farming, stating that venture capitalists continue to be drawn toward these startups as supply-chain disruptions facing the agriculture industry and climate change are significantly hampering crop yields.
Per a report from ResearchandMarkets.com, the total value of the vertical farming industry is expected to reach $9.7 billion worldwide, up from just $3.1 billion in 2021. The number of deals in the sector accelerated last year as well, reaching 33 transactions worth roughly $960 million in 2021, up from $484 million in 2019.
With food scarcity and affordability concerns spreading around the globe, vertical farming provides an environmentally friendly solution to achieving higher yields and much less water consumption. The technology has its drawbacks, including high startup costs and energy intensiveness that have weighed on profitability, yet investment continues to pile into the industry and climate friendly initiatives could help lessen the cost of energy put into these farms.
As climate change accelerates and the war in Ukraine drags on, vertical farming is likely to see greater investor interest as a global food crisis looms.
Summary: Shipping markets have been thrown into disarray once again, this time being slammed with a double whammy. Just as the Omicron variant began to fade and COVID-19 restrictions eased, the Russian invasion of Ukraine brought about a new wave of disruptions, complicating global shipping markets once again. Additionally, COVID-19 cases have begun ramping up China, specifically in Shanghai where port operations have slowed and created significant backlogs.
While these supply-chain disruptions have previously sent global shipping rates soaring, rates have remained relatively flat in recent months. Global ports, excluding China, have seen the number of ships waiting off the coast decline year-to-date, and a constant rise in inventories could point toward weakening global demand. Supply-chain disruptions are forecast to continue through the end of the year, but the effect on global shipping markets may be more depressed than in prior years.
Related ETF and Stocks: SonicShares Global Shipping ETF (BOAT), Danaos Corporation (DAC), A.P. Møller – Mærsk A/S (AMKBY), COSCO SHIPPING Holdings ADR (CICOY)
Russian Invasion and Shanghai Lockdown Complicates Global Shipping
The global shipping industry is heading into its third-straight year of constant supply-chain struggles, and while disruptions were originally projected to ease throughout the year, the Russian invasion of Ukraine has upended shipping logistics once more.
The three largest container shipping lines, Maersk, CMA CGM and MSC, have completely suspended operations to and from Russia after the country initially invaded Ukraine, which is expected to cause a major decline in shipments if no alternatives are found soon.
Bloomberg reports that Russia imports and exports combined total roughly 3% of the global containerized trade. While that may seem insignificant, Maersk, the world’s second largest container shipper, owns 31% of Russian port operator Global Ports, which is being slammed with restrictions and sanctions.
Swiss-based MSC, the world’s largest shipping company, announced that it has implemented a temporary stoppage of all cargo bookings in and around the Baltics and Black Sea, per Reuters.
According to Business Standard, at the start of the conflict over 100 ships were stranded in the Black Sea, with five of them being struck with missiles resulting in casualties. As full-scale conflict rages on between Russia and Ukraine, global shipping lines are likely to remain extremely cautious about sailing around the area.
Not only has the war in Ukraine disrupted shipping logistics, but COVID-19 disruptions have created significant backlogs once again.
In Shanghai, home to the world’s busiest port for container traffic, a massive outbreak of COVID-19 caused China to enact a city-wide lockdown, causing significant supply disruptions with transport and logistics under severe pressure, Barclays Bank economist Jian Chang stated.
Seko Logistics announced that the disruptions in Shanghai have caused an 80% decrease in container pickups from outside the lockdown area, creating enormous backlogs and slowing ship transfers, per FreightWaves.
These backlogs are not limited to just Shanghai, either. Terminals at the Chinese Port of Ningbo, the world’s busiest in terms of cargo tonnage, are experiencing equipment shortages amid freight diversions from Shanghai, adding to the level of cargo on docks that cannot be transported.
While ports in Shanghai remain operational, CNN notes that the COVID-19 outbreak has caused the number of vessels waiting to load or discharge skyrocket to a record high at the end of March.
Shipping disruptions have typically led to higher freight rates which have propelled the shipping industry to record-breaking profits in 2021, a trend that MRP has continually highlighted, most recently in February.
While ongoing supply-chain struggles have kept freight rates historically elevated, they have mostly declined year-to-date, which could point toward a decrease in global demand for goods.
Freight Rates Yet to Rise, Inventory Build Up Could Mean Falling Demand
As previously mentioned, the cost of shipping has exponentially risen since the start of the pandemic. In early April 2020, the Freightos Baltic Index (FBX), which measures the average cost of shipping 40-foot containers across 12 major maritime trade lanes, was priced at roughly $1,467 per 40-foot container.
In September 2021, the index climbed as high $11,109 per container, nearly 10-times as high as the start of the pandemic. However, rates may have reached their peak.
Since September, the FBX has fallen roughly 16%, hitting a three-month low of $9,280 per 40-foot container for the week ended April 8th.
The FBX is not the only freight rate index that has shown significant declines in recent months. The Drewry World Container Index, which uses 8 route-specific indices, has fallen 22% to $8,042 per 40-foot container after peaking in mid-September. Despite the recent fall, the index remains roughly 64% higher than a year ago.
The steady decline can be attributed to a multitude of factors. Maritime Executive reports that the drop in rates has many experts questioning if rates have peaked due to low demand and full inventories. Shabise Levy, CEO of Shifl, a shipping technology platform, points out that the decline could also be due to the fact there has been a decrease in sales as China enters its traditional pot-Chinese New Year lean season.
According to Shifl’s analysis, trans-Pacific container spot rates between China and the US East and West coast ports were down by nearly half between January and March 2022.
Outside of China, ship backlogs are also easing at some ports. The Marine Exchange of Southern California recently reported that the number of container ships waiting off the coast of California reached a new low at the beginning of April, down roughly 66% since January.
While freight rates stalling at elevated levels is not necessarily a bad thing for global shippers, a buildup of inventories and falling global demand could be.
US wholesale inventories rose 2.5% in February, matching a record monthly increase set previously in December 2021, and most economists see further inventories increases throughout the year.
Zac Rogers, professors of supply chain management at Colorado State University, told MarketPlace that many large retailers still have plenty of inventory because they looked to stock up when supply chains were more congested last year. Retailers aren’t placing their normal orders for goods that they typically do in the spring since they have left over inventory from last winter.
Consumer spending has also begun to retreat to typical pre-COVID levels amid strong inflation, while retailers are slowing their orders in the face of high fuel prices in the trucking industry.
Bank of America also recently downgraded nine transport stocks “on demand concerns and pricing declines”, FreightWaves notes, which may have a knock-on effect on the ocean freight industry.
Freight volume has also slowed in the Port of Los Angeles, heading down to 0% annual growth after hitting 20% annual growth in container shipping last year, per Bloomberg.
It appears likely that shipping rates have reached their peak, but those costs are expected to remain significantly elevated compared to pre-pandemic levels throughout the year. Demand for ocean freight soared as supply-chain struggles caused retailers to scramble and pay premiums to receive their goods on time, but the recent build up in inventories could signal a slowdown in demand and keep rates cooling off.
Global shippers are still primed to rake in strong revenue in 2022, but it is increasingly unlikely that these recent disruptions lead to record-setting profits after last year’s blowout performance.
Summary: Video game investments tripled in 2021 to a record $38.5 billion and the remarkable pace of dealmaking looks primed to continue through 2022. Following Microsoft’s acquisition of Activision-Blizzard for nearly $70 billion in January, Sony has made two key acquisitions of their own, expanding their video game portfolio. Sony is also revamping its PlayStation subscription service to compete with Microsoft’s Xbox Game Pass, both of which should keep consumers tied to the platforms and boost profits.
Sales in the video game industry appear to have plateaued thus far in 2022, with overall spending showing slight declines year-over-year. However, spending remains significantly above pre-pandemic levels, meaning the rise in demand for video games is being sustained thus far. Metaverse and blockchain technologies have also boosted investor interest in gaming, a trend that is set to continue throughout the year.
Related ETF & Stocks: Wedbush ETFMG Video Game Tech ETF (GAMR), Microsoft Corporation (MSFT), Sony Group Corporation (SONY)
Video Game Deals Pick Up Steam, Microsoft & Sony Ramp Up Competition
Investment into video games and game-related technologies soared to a record high in 2021 and could have further room to run this year.
A report from DDM Games Investment Review found that total game-related investments jumped from 406 deals worth $13.2 billion in 2020 to an astounding 765 deals totaling $38.5 billion in 2021. IPOs also surged in 2021 from $20.6 billion raised in 10 IPOs in 2020 to $109.4 billion over 35 IPOs raised last year.
Forbes notes that the DDM report typically comes in earlier, yet the delay this year was caused by a massive influx of blockchain-related game investment in the last quarter of the year. However, even without those blockchain investments, the video game industry still would have shattered 2020’s record performance.
Joe Minton, president of DDM, found that 50 percent of all transactions in gaming in the fourth quarter of 2021 were investment transactions for blockchain gaming, which he notes as “astonishing”. Minton believes that dealmaking in 2022 is almost certain to continue at prodigious levels in 2022 based off of record pandemic revenues, record-levels of consolidation and increased interest in the metaverse and blockchain technologies.
MRP highlighted Microsoft’s massive acquisition of Activision Blizzard in an all-cash deal valued at roughly $70 billion back in January, and since then dealmaking has continued at a strong pace. Following Microsoft’s blockbuster deal, Sony agreed to purchase videogame maker Bungie for $3.6 billion at the end of January.
The deal activity gives console makers additional ways to compete against each other and gain an edge as they can provide content from these game developers exclusively for their customers at launch or through a subscription service. Jefferies analyst Andrew Uerkwitz believes that Sony and Microsoft are in a “multiyear arms race of sorts for talent and developers”.
More recently, Sony has purchased Haven Studios, another video game developer, for an undisclosed amount that will strengthen Sony’s exclusive video game portfolio.
Both Microsoft and Sony are also shifting some focus toward subscription services. Microsoft has already introduced its Xbox Game Pass, which has amassed more than 25 million subscribers. Bloomberg has called it a sort of Netflix for video games, which has helped Microsoft outperform Sony in the streaming market thus far.
CNBC reports that Sony is now launching a new gaming subscription service to try and narrow the gap between itself and Microsoft, which is set to arrive in June. Sony said the new tier-based subscription service represents a major evolution for PlayStation consoles, noting that the subscription service has grown tremendously over the last decade.
Activity in the sector highlights the sustained rise of the video game industry. While some of the heights set during the pandemic over the last two years may not be reached, the sector has clearly proved itself as more than a pandemic fad and is likely to see increased investor interest in the coming years.
Video Game Sales Still Elevated, Metaverse Boosts Interest
Video game sales have seen slight year-over-year declines over the last few months after a record-shattering 2021 came to an end. Per the most recent NPD Group report, February 2022 consumer spending on video games fell 6% year-over-year to $4.4 billion. Year-to-date spending is also down 4% compared to the same period last year, coming in at $9.1 billion thus far.
The biggest drag on sales has been hardware, as Microsoft and Sony continue to struggle with supply-chain disruptions despite still riding high demand for new consoles carrying over from last year, VentureBeat notes.
However, it must be noted that despite the recent declines, NPD group states that sales are still up historically over previous years. Spending on video games in the US totaled roughly $44.9 billion in 2019, $56.9 billion in 2020 and $60.4 billion in 2021, illustrating the fact spending is still significantly elevated when compared to pre-pandemic levels.
Further, demand for video games has not substantially waned, hardware disruptions are simply the biggest factor weighing video game sales.
A survey conducted by LoopMe and researcher IDC found that 63% of global consumers said they have increased their gameplay time, with the findings indicating that 75% of the gains in mobile gaming activity will be a part of the new normal in consumer behavior.
A report from Deloitte recently found that more than 80% of both men and women in the US play video games, with half of smartphone owners saying they play a game on their phone daily. 49% of US video game players have stated playing video games has taken time away from other entertainment activities.
Additionally, the rise of the metaverse will continue to be a significant driver of growth in the long-term for the gaming industry. Deloitte recently stated that younger generations are behaving in a way that suggests they will live their lives online and embrace the metaverse. Of the 23% of US gamers that have attended a live in-game event, which are common on metaverse platforms, 82% of them made a purchase because of that event, with 65% of purchases being digital goods and 34% physical merchandise. Deloitte sees this as a steady blurring of the lines between real and virtual worlds, a good sign for video game manufacturers looking to capitalize on the metaverse.
After video game investments shattered records last year, the pace of deal making in the industry is already off to a strong start in 2022 and should spark additional interest in the sector throughout the year. Video game giants Microsoft and Sony are likely to continue looking to acquire video game developers and boost their gaming portfolios and capitalize on the sustained rise in demand for video games.
The number of consumers spending time playing video games remains elevated compared to pre-pandemic norms and the development of the metaverse should keep the gaming industry incredibly relevant in the coming years.
MRP added LONG Video Games to our list of themes on November 23, 2021, after it became clear that strong video game sales were much more than a pandemic phase. Additionally, major tech and gaming companies continued to take an interest in metaverse technology, a trend that is likely to continue over the next few years.
Since adding LONG Video Games to our list of themes, the Wedbush ETFMG Video Game Tech ETF (GAMR) has returned -17%, underperforming the S&P 500 decline of -2% over that same period.
Summary: Countries around the world are setting aside massive amounts of funding for green hydrogen projects, aiming to develop a new alternative to fossil fuels. Germany is working on acquiring significant supplies of green and blue hydrogen in the Middle East as it weens off of Russian natural gas supplies. Green hydrogen is increasingly cost-competitive with rising oil and natural gas prices.China, the world’s largest emitter of greenhouse gases, recently outlined plans to significantly increase their green hydrogen production by 2025 to meet the rising demand for renewable energy. Meanwhile, the US is beginning construction on the world’s largest green hydrogen project in Texas, likely to spur additional investment into the development of green hydrogen as demand for the alternative fuel rises.
Related ETF & Stocks: Global X Hydrogen ETF (HYDR), FuelCell Energy, Inc. (FCEL), Plug Power Inc. (PLUG)
Interest in Hydrogen Energy Ramps Up in Response to Russian Invasion, Climate Goals
Demand for hydrogen energy is primed to receive a significant boost as the European Union continues to look for ways to ween off Russian oil and natural gas imports. While hydrogen is not the only solution to counter the energy crisis, it is likely to play an increasingly important role in the renewable energy transition that should accelerate throughout the decade.
There are three main forms of hydrogen energy. Gray hydrogen, generated from natural gas, is not carbon neutral and has yet to see an uptick in demand as prices have soared alongside oil and natural gas. Blue hydrogen, produced from natural gas, yet the carbon emissions are captured and stored, meaning it is commonly referred to as carbon neutral or low carbon.
Green hydrogen, meanwhile, is produced by using excess renewable energy like solar and wind, and is viewed by many sectors as the key to harmonizing the intermittency of renewables, which is key for the EU to move through a rocky energy transition.
Plug Power CEO Andy Marsh recently told Yahoo Finance that the Russia-Ukraine war will accelerate the shift to green hydrogen and other forms of renewable energy.
Similarly, BloombergNEF and Rystad Energy reported that the global conflict is opening the door for additional investment into the green hydrogen resources. Per PV Magazine, Rystad believes the war in Ukraine has “turbocharged” the green hydrogen production sector, with green hydrogen becoming much more cost-competitive than its blue and gray counterparts.
The EU has already announced plans for a €300 million funding package for hydrogen development, and there are several European countries looking to boost their investment as well.
Germany Vice-Chancellor Robert Habeck recently went to visit the Middle East in hopes of securing supplies of natural gas, as well as green and blue hydrogen. According to Maritime Executive, Germany was able to obtain more shipments of natural gas from Qatar while also signing long-term agreements with the UAE for green and blue hydrogen.
Habeck said the agreement will strengthen their achievement of climate goals through the addition of green hydrogen from solar energy, while also helping their energy security as the hydrogen shipments will begin this year.
Khaleej Times recently wrote that the UAE could become one of the biggest suppliers of hydrogen to Europe as more and more countries look for renewable energy sources in the coming years.
The news comes after Germany has already set aside $5.9 billion for domestic green hydrogen production and $1.7 billion internationally. Further, Reuters reports that Germany will be providing equipment for Finland’s first ever green hydrogen plant, which is expected to reduced Finland’s carbon emission by 40,000 tons per year over the next decade.
However, the rise of green hydrogen is not limited to Europe, as both the US and China have made significant strides in the development of green hydrogen projects and initiatives.
In the United States, airlines have been exploring ways to replace jet fuel with cleaner alternatives. Hydrogen fuel is a viable long-term solution for the aviation industry to curb their carbon emissions, and interest in this option has picked up in recent weeks.
Canary Media reports that Delta Air Lines and Airbus Co. announced a partnership last week to explore the development of hydrogen-powered aircraft, a “very meaningful” first step in the path toward hydrogen aviation.
Similarly, US startup Green Hydrogen International revealed plans to construct the world’s largest green hydrogen project in Texas earlier this month, powered by solar and wind energy. The 60GW hydrogen project is currently looking to use green hydrogen to power SpaceX rockets, but it also will be positioned to capitalize on the growing demand for hydrogen across the United States.
China, a global leader in green hydrogen production, has also updated their strategies to further the growth of the hydrogen energy industry. Per Recharge News, China has unveiled a national 2025 target for green hydrogen, with plans to produce 100,000-200,000 tons over the next few years. That target will be crucial in limiting the country’s carbon emissions and push it closer to its carbon neutral goals.
Green hydrogen will remain a key part of the global renewable energy transition, and the latest developments surrounding the Russian invasion of Ukraine are only accelerating its adoption. With Germany, China and the United States all announcing new green hydrogen projects, it’s likely additional countries will follow suit and spark a sustained rise in demand for green hydrogen production.
Summary: The airline industry's recovery appears to be accelerating as travel demand comes roaring back. Despite rising jet fuel prices putting upward pressure on ticket prices, travelers are willing to spend more as they look to unleash a wealth of pent-up demand. COVID-19 cases in the United States have been subsiding for several months, further bolstering positive sentiment towards travel and leisure spending.
February bookings for US travel recently surpassed pre-pandemic levels and, if fuel costs stabilize, the upcoming summer season could one of the strongest ever. Delta Air Lines has announced the company is experiencing unparalleled demand for its services while United Air has recovered 70% of its 2019 business travel operations. The aviation industry appears confident in its ability to post strong revenue figures in the first half of the year, even though the second half of the year remains more questionable for some of the top US carriers.
Related ETFs: Defiance Hotel, Airline, and Cruise ETF (CRUZ), U.S. Global Jets ETF (JETS)
Travel Demand to Come Roaring Back in the First Half
As fears surrounding the COVID-19 pandemic begin to subside following Omicron’s momentous rise and subsequent fall, consumers appear ready to unleash their pent-up demand for travel and leisure.
According to a recent survey from Tripadvisor, 45% of Americans are planning to travel this March and April, including 68% of Gen Z travelers. That number will climb higher as the summer season rapidly approaches, as 68% of American adults will vacation this summer, per another survey by The Vacationeer.
The Vacationeer found that 25% of respondents say they intend to ‘revenge travel’, likely spending more money than ever before after being stripped of the opportunity to vacation over the last two years.
The aviation industry looks primed to receive a significant boost from consumers ready to spend big on travel plans. Reuters recently reported that US carriers are experiencing an “unparalleled” increase in demand which has resulted in Delta Air Lines reporting the highest ticket sales in the company’s history last week.
Delta’s competitors United Airlines and American Airlines also stated demand for their services is higher than it has ever been, noting that business traffic is rebounding faster than expected.
According to The Hill, American Airlines CEO Doug Parker said that the carrier recently had multiple days of sales that were 15% higher than previous records, showing travel demand could be nearing multi-year highs.
Last month, domestic flight bookings surpassed pre-pandemic levels for the first time, with travelers spending $6.6 billion on flights in February, 6% higher than the same month in 2019. Katherine Estep, spokesperson for Airlines for America, noted that travelers have been eager to book tickets as “COVID-related restrictions in all 50 states have been lifted”, which is likely to increase the number of consumers returning to the skies.
Recent developments have the airline industry rethinking their first-quarter forecasts. Per CNBC, Delta expects its total first-quarter sales to come in at 78% of 2019 levels, up from its January forecast for a recovery as little as 72% of 2019 levels. American Airlines also expects its first-quarter revenue to be just 17% below the same quarter in 2019, an improved forecast from a 22% drop off predicted in January.
United Airlines said bookings for future travel have improved “close to 40 points since the first week of 2022” while business traffic has increased more than 30 points since the peak of the Omicron impact in January 2022.
Southwest Airlines, meanwhile, has recovered the strongest thus far, raising its revenue outlook to as much as 92% of 2019 levels.
This first half of 2022 looks promising enough to jumpstart a recovery across the airline industry, yet there are still some key headwinds that the sector will have to overcome to keep those profits high in the second half of the year.
Rising Fuel Costs Yet to Hamper Demand But Threats Remain
Data from the International Air Transport Association (IATA) shows that jet fuel prices have now climbed to $135 a barrel in March 2022, up from roughly $70 a barrel in March 2021 and $15 a barrel at the depths of the pandemic two years prior.
In response to higher fuel costs, airlines have increased their ticket prices and passed the extra cost onto consumers. For now, that has yet to dampen consumer appetite for travel.
BBC News reports that Delta is planning on introducing fuel surcharges on international flights, which account for 35% of its business, and increase US ticket prices. Ticket prices could rise anywhere from 5% to 10% just from jet fuel costs alone, yet airlines are confident that demand for travel will remain strong through these increases.
Delta President Glen Hauenstein has said the airline has had no issues covering the rising fuel costs thus far given the surge in bookings, and he remains very confident in the company’s ability to recapture 100% of the fuel price run up in the second quarter through the end of the summer, notes USA Today.
The fact consumers have yet to postpone their travel plans in the face of rising ticket prices bodes well for the aviation industry’s recovery. With the summer season rapidly approaching, fliers are expected to spend more than ever before which will send airline revenues closer to pre-pandemic levels.
However, there are still some threats that may derail the sector’s recovery. JetBlue remains cautious about the outlook for travel demand in the second half of the year, primarily due to persistent high inflation and the expectations of higher interest rates, per Reuters.
Further, if oil prices were to continue to rise throughout the year, depending on how volatile markets stay surrounding the conflict between Russia and Ukraine, airlines’ profitability would take a hit.
For now, airlines appear primed to report impressive profits in the first half of 2022 on unprecedented consumer demand for travel and strong pricing power. The aviation industry’s recovery has certainly been a bumpy one since the depths of the pandemic, but it now looks like clear skies for US carriers as pent-up demand for leisure and travel can finally be unleashed.
Loan waiver demands for the industry are unrealistic. India, and its banks, can’t afford .
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Privacy & Security
Personal Information We May Collect
Personal Information” is information that identifies you as an individual or relates to an identifiable person, including your name, telephone number, postal address and email address.
How We May Collect Personal Information
We and our service providers may collect Personal Information in a variety of ways, including:
Through the Services: We may collect Personal Information through the Services, e.g., when you contact us or request more information about a service or product.
How We May Use Personal Information
We may use Personal Information:
To respond to your inquiries and fulfill your requests, such as to respond to your requests for additional information about our products or services.
To send administrative information to you, for example, information regarding the Services and changes to our terms, conditions and policies.
To send you marketing communications that we believe may be of interest to you.
To personalize your experience on the Services by presenting products and offers tailored to you.
For our business purposes, such as data analysis, audits, fraud monitoring and prevention, developing new products, enhancing, improving or modifying our Services, identifying usage trends, determining the effectiveness of our promotional campaigns and operating and expanding our business activities.
As we believe to be necessary or appropriate:
under applicable law, including laws outside your country of residence;
to comply with legal process;
to respond to requests from public and government authorities, including public and government authorities outside your country of residence;
to enforce our terms and conditions;
to protect our operations or those of any of our affiliates;
to protect our rights, privacy, safety or property, and/or that of our affiliates, you or others; and
to allow us to pursue available remedies or limit the damages that we may sustain.
How Personal Information May Be Disclosed
Your Personal Information may be disclosed:
To our third party service providers who provide services such as website hosting, data analysis, payment processing, order fulfillment, information technology and related infrastructure provision, customer service, email delivery, auditing and other services.
To third parties, to permit them to send you marketing communications, consistent with your choices.
To a third party in the event of any reorganization, merger, sale, joint venture, assignment, transfer or other disposition of all or any portion of our business, assets or stock (including in connection with any bankruptcy or similar proceedings).
As we believe to be necessary or appropriate:
under applicable law, including laws outside your country of residence;
to comply with legal process;
to respond to requests from public and government authorities, including public and government authorities outside your country of residence;
to enforce our terms and conditions;
to protect our operations or those of any of our affiliates;
to protect our rights, privacy, safety or property, and/or that of our affiliates, you or others; and
to allow us to pursue available remedies or limit the damages that we may sustain.
Other Information We May Collect
“Other Information” is any information that does not reveal your specific identity or does not directly relate to an individual, such as:
Browser and device information
Information collected through cookies, pixel tags and other technologies
Demographic information and other information provided by you
If we are required to treat Other Information as Personal Information under applicable law, then we may use it for the purposes for which we use and disclose Personal Information as detailed in this Policy.
How We May Collect Other Information
We and our third party service providers may collect Other Information in a variety of ways, including:
Through your browser or device: Certain information is collected by most browsers or automatically through your device, such as your Media Access Control (MAC) address, computer type (Windows or Macintosh), screen resolution, operating system name and version, device manufacturer and model, language, Internet browser type and version and the name and version of the Services you are using. We use this information to ensure that the Services function properly.
Using pixel tags and other similar technologies: Pixel tags (also known as web beacons and clear GIFs) may be used in connection with some Services to, among other things, track the actions of users of the Services (including email recipients), measure the success of our marketing campaigns and compile statistics about usage of the Services and response rates.
IP Address: Your IP address is a number that is automatically assigned to the computer that you are using by your Internet Service Provider (ISP). An IP address may be identified and logged automatically in our server log files whenever a user accesses the Services, along with the time of the visit and the page(s) that were visited. Collecting IP addresses is standard practice and is done automatically by many websites, applications and other services. We use IP addresses for purposes such as calculating usage levels, diagnosing server problems and administering the Services. We may also derive your approximate location from your IP address.
Physical Location: We may collect the physical location of your device by, for example, using satellite, cell phone tower or WiFi signals. We may use your device’s physical location to provide you with personalized location-based services and content. We may also share your device’s physical location, combined with information about what advertisements you viewed and other information we collect, with our marketing partners to enable them to provide you with more personalized content and to study the effectiveness of advertising campaigns. In some instances, you may be permitted to allow or deny such uses and/or sharing of your device’s location, but if you do, we and/or our marketing partners may not be able to provide you with the applicable personalized services and content.
From you: Information such as your preferred means of communication is collected when you voluntarily provide it.
By aggregating information: Aggregated Personal Information does not personally identify you or any other user of the Services (for example, we may aggregate Personal Information to calculate the percentage of our users who have a particular telephone area code).
How We May Use and Disclose Other Information
We may use and disclose Other Information for any purpose, except where we are required to do otherwise under applicable law. In some instances, we may combine Other Information with Personal Information (such as combining your name with your location). If we do, we will treat the combined information as Personal Information as long as it is combined.
We seek to use reasonable organizational, technical and administrative measures to protect Personal Information within our organization. Unfortunately, no data transmission or storage system can be guaranteed to be 100% secure, but there are steps you can take to protect your Personal Information.
Ensure you are on the right site: Check that you are on the real Devenir capital Ltd. website before you sign in by checking the browser bar for a valid certificate.
Monitor your account activity: Checking your account activity frequently can help to prevent or detect fraud earlier.
Password management: Use passwords that are long in length and complex in nature. Complexity is achieved by using a combination of upper and lower case letters, numbers, and special characters. A passphrase of longer length adds more complexity to a password. Do not reuse passwords across accounts or websites, or share your password with anyone. Devenir Capital Ltd. will never ask for your password.
If you have reason to believe that your interaction with us is no longer secure (for example, if you feel that the security of your account has been compromised), please immediately notify us in accordance with the “Contacting Us” section below.
CHOICES AND ACCESS
Your choices regarding our use and disclosure of your Personal Information
We give you many choices regarding our use and disclosure of your Personal Information for marketing purposes. You may opt-out from:
Receiving electronic communications from us: If you no longer want to receive marketing-related emails from us on a going-forward basis, you may opt-out by following the instructions at the bottom of each email or contacting us.
Our sharing of your Personal Information with affiliates for their direct marketing purposes: If you would prefer that we not share your Personal Information on a going-forward basis with our affiliates for their direct marketing purposes, you may opt-out of this sharing by contacting us.
Our sharing of your Personal Information with unaffiliated third parties for their direct marketing purposes: If you would prefer that we not share your Personal Information on a going-forward basis with unaffiliated third parties for their direct marketing purposes, you may opt-out of this sharing by contacting us.
We will try to comply with your request(s) as soon as reasonably practicable. Please note that if you opt-out of receiving marketing-related emails from us, we may still send you important administrative messages, from which you cannot opt-out.
USE OF SERVICES BY MINORS
The Services are not directed to individuals under the age of thirteen (13), and we request that they not provide Personal Information through the Services.
The Services are controlled and operated by us from Mauritius and are not intended to subject us to the laws or jurisdiction of any country or territory. Your Personal Information may be stored and processed in any country where we have facilities or in which we engage service providers, and by using the Services you consent to the transfer of information to countries outside of your country of residence, including the United States, which may have data protection rules that are different from those of your country.
Unless we reach out to you and specifically request certain information from you, which we may do on occasion, including, for example, in order to comply with applicable law or regulation, we ask that you not send us, and you not disclose, any sensitive Personal Information (e.g., social security numbers, credit card information, information related to racial or ethnic origin, political opinions, religion or other beliefs, health, biometrics or genetic characteristics or criminal background).
Terms & Conditions
PLEASE READ THESE TERMS OF SERVICE CAREFULLY. Your use of the Site (as defined below) constitutes your consent to this Agreement (as defined below).
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The information contained in this Site is for informational purposes only, and does not constitute a solicitation, an offer, or a recommendation to buy or sell any investment instruments, to effect any transactions, or to conclude any legal act of any kind whatsoever. Unauthorized use of the Site and Devenir Capitals systems, including but not limited to unauthorized entry into Devenir Capital Ltd. systems, misuse of passwords or misuse of any information posted on the Site is strictly prohibited. We do not, and does not intend to, provide investment, legal, audit or tax advice through or in connection with this Site, and does not represent that any investments, securities or services discussed on this Site are suitable for any investor. Investments and investment strategies discussed on this Site may not be suitable for you. You should weigh any investment decision carefully after considering your specific investment objectives and financial circumstances. When making a decision about your investments, you should also seek the advice of a professional financial advisor.
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Harvest or collect information about users of the Site.
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Remove any copyright, trademark or other proprietary rights notice from the Site.
Frame or mirror any portion of the Site, or otherwise incorporate any portion of the Site into any product or service, without Devenir Capital ltd. express prior written consent.
Systematically download and store Site content.
Use any robot, spider, site search/retrieval application or other manual or automatic device to retrieve, index, “scrape,” “data mine” or otherwise gather Site content, or reproduce or circumvent the navigational structure or presentation of the Site, without Devenir capital’s Ltd.express prior written consent. Notwithstanding the foregoing, and subject to compliance with any instructions posted in the robots.txt file located in the Site’s root directory, Devenir Capital Ltd. grants to the operators of public search engines permission to use spiders to copy materials from the Site for the sole purpose of (and solely to the extent necessary for) creating publicly available, searchable indices of such materials, but not caches or archives of such materials. Devenir Capital Ltd. reserves the right to revoke such permission either generally or in specific cases, at any time and without notice. You are responsible for obtaining, maintaining and paying for all hardware and all telecommunications and other services needed for you to use the Site.
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you have all rights necessary to grant the licenses granted in this section;
Your Submissions are complete and accurate; and
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10. LIMITATION OF LIABILITY. Devenir Capital Ltd. will not be liable for any indirect, incidental, consequential, special, exemplary or punitive damages of any kind arising out of or in connection with the site or this agreement, under any contract, tort (including negligence), strict liability or other theory, including damages for loss of profits, use or data, loss of other intangibles, loss of security of submissions (including unauthorized interception by third parties of any submissions), even if advised in advance of the possibility of such damages or losses. without limiting the foregoing, Devenir Capital Ltd. will not be liable for damages of any kind resulting from your use of or inability to use the site (including any interruptions, defect or delays in your ability to use the site) or from any resources or third party resources, including from any virus or malicious code or other defect in the site or files that may be transmitted in connection therewith even if Devenir Capital Ltd. or representatives thereof are advised of the possibility of such damages, losses or expenses. your sole and exclusive remedy for dissatisfaction with the site or any resources or third party resources is to stop using the site.
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(a) your use of, or activities in connection with, the Site (including Your Submissions); and
(b) any violation or alleged violation of this Agreement by you.
12. Termination. This Agreement is effective until terminated. Devenir Capital Ltd. may terminate or suspend your use of the Site at any time and without prior notice, for any or no reason, including if Devenir Capital Ltd. believes that you have violated or acted inconsistently with the letter or spirit of this Agreement. Upon any such termination or suspension, your right to use the Site will immediately cease, and Devenir Capital Ltd. may, without liability to you or any third party, immediately delete Your Submissions, without any obligation to provide any further access to Your Submissions.
13. Governing Law;< Jurisdiction. This Agreement is governed by and shall be construed in accordance with the laws of FSC Mauritius.
14. Filtering. We hereby notify you that parental control protections (such as computer hardware, software or filtering services) are commercially available that may assist you in limiting access to material that is harmful to minors. Information identifying current providers of such protections is available from https://en.wikipedia.org/wiki/Comparison_of_content-control_software_and_providers. Please note that Devenir Capital Ltd. does not endorse the above website or any of the products or services listed on such site, such site is a Third Party Resource (and is subject to separate terms and conditions) and any use of such site is at your own risk.
15. Information or Complaints If you have a question or complaint regarding the Site, please contact us at our contact information. Please note that e-mail communications will not necessarily be secure; accordingly you should not include credit card information or other sensitive information in your e-mail correspondence with us.
16. Miscellaneous. This Agreement does not, and shall not be construed to, create any partnership, joint venture, employer-employee, agency or franchisor-franchisee relationship between you and Devenir Capital Ltd. If any provision of this Agreement is found to be unlawful, void or for any reason unenforceable, that provision will be deemed severable from this Agreement and will not affect the validity and enforceability of any remaining provision. You may not assign, transfer or sublicense any or all of your rights or obligations under this Agreement without our express prior written consent. We may assign, transfer or sublicense any or all of our rights or obligations under this Agreement without restriction. No waiver by either party of any breach or default under this Agreement will be deemed to be a waiver of any preceding or subsequent breach or default. Any heading, caption or section title contained herein is for convenience only, and in no way defines or explains any section or provision. All terms defined in the singular shall have the same meanings when used in the plural, where appropriate and unless otherwise specified. Any use of the term “including” or variations thereof in this Agreement shall be construed as if followed by the phrase “without limitation.” This Agreement, including any terms and conditions incorporated herein, is the entire agreement between you and Devenir Capital Ltd. relating to the subject matter hereof, and supersedes any and all prior or contemporaneous written or oral agreements or understandings between you and Devenir Capital Ltd. relating to such subject matter. For clarity, nothing in this Agreement amends or modifies, or has any effect upon, the terms and conditions of any separate agreement that you may have entered into
with Devenir Capital Ltd. that does not relate to the subject matter of this Agreement or
with any third party. Notices to you (including notices of changes to this Agreement) may be made via posting to the Site or by e-mail (including in each case via links), or by regular mail. Without limitation, a printed version of this Agreement and of any notice given in electronic form shall be admissible in judicial or administrative proceedings based upon or relating to this Agreement to the same extent and subject to the same conditions as other business documents and records originally generated and maintained in printed form. Devenir Capital Ltd. will not be responsible for any failure to fulfill any obligation due to any cause beyond its control.
General Disclosures and Disclaimers
Information contained in this website is for informational purposes only and does not constitute a recommendation, offer, general solicitation or confirmation of terms. Investments and investment strategies discussed on this website may not be suitable for you. You should weigh any investment decision carefully after considering your specific investment objectives and financial circumstances. Information contained in this website is based upon generally available information believed to be reliable, but no representation is made as to the accuracy, timeliness or completeness of such information or that any returns indicated will be achieved. Changes to assumptions may have a material impact on returns. Price/availability is subject to change without notice. Past performance is not indicative of future results.
The information contained in this website is not intended for distribution or use in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Representatives of Devenir Capital Ltd. may only conduct business in jurisdictions where they are licensed or exempt from the licensing requirements. Clients should contact a Devenir Capital representative in their home jurisdiction unless governing law permits otherwise.
Anti-Money Laundering Disclosures
Company Status with Regulators
Devenir Capital is a Mauritius FSC regulated GBL company.
Anti-Money Laundering Program
The policy of Devenir Capital Ltd. is to prohibit and actively prevent money laundering and any activity that facilitates money laundering or the funding of terrorist or criminal activities. Money laundering is generally defined as engaging in acts designed to conceal or disguise the true origins of criminally derived proceeds so that the unlawful proceeds appear to have been derived from legitimate origins or constitute legitimate assets. The Devenir Capital Ltd., Anti-Money Laundering (“AML”) Program has been designed to comply with legal and regulatory requirements, by:
Including procedures that can be reasonably expected to detect and cause the reporting of suspicious transactions and the implementing regulations thereunder;
Providing for independent testing for compliance to be conducted by appropriate staff or by a qualified outside party;
Designating individuals responsible for implementing and monitoring the day-to-day operation and internal controls of the AML Program; and,
Providing for ongoing training of appropriate staff.
Customer Identification Program
In compliance with anti-money laundering requirements, Devenir Capital Ltd. has developed and implemented a Customer Identification Program (“CIP”) to identify and verify the identity of customers that open new accounts. The purpose of the CIP process is to ensure that Devenir Capital has taken reasonable efforts to determine the identity of its customers through documentary and or non-documentary means.
Order Handling and Trading Disclosures
FINRA Rule 5310 – Best Execution
In any equity transaction for a customer, Devenir Capital Ltd. will use reasonable care in seeking to obtain the most advantageous terms reasonably available under the circumstances for the execution of a customer’s order. In determining where to send customers’ orders Devenir Capital Ltd. takes into consideration in, among other things, the size and type of order, the terms and instructions of the order, the trading characteristics of the security, the character of the market for the security, the accessibility of quotations, transaction costs, the opportunity for price or size improvement, the speed of execution, the availability of efficient and reliable order handling systems, the level of service provided by the market venue and the customer’s overall objectives with respect to the market conditions at the time of the order. Devenir Capital Ltd. regularly reviews transactions for quality of execution.
Extended Trading Hours
FINRA Rule 2265 requires that Devenir Capital disclose to you the following potential risks if you engage in equities transactions during extended trading hours (4:00pm – 9:29:59am Eastern Standard Time)
Risk of Lower Liquidity. Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular trading hours. As a result, your order may only be partially executed, or not at all.
Risk of Higher Volatility. Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular trading hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price when engaging in extended hours trading than you would during regular trading hours.
Risk of Changing Prices. The prices of securities traded in extended hours trading may not reflect the prices either at the end of regular trading hours, or upon the opening the next morning. As a result, you may receive an inferior price when engaging in extended hours trading than you would during regular trading hours.
Risk of Unlinked Markets. Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours trading system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended hours trading system than you would in another extended hours trading system.
Risk of News Announcements. Normally, issuers make news announcements that may affect the price of their securities after regular trading hours. Similarly, important financial information is frequently announced outside of regular trading hours. In extended hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.
Risk of Wider Spreads. The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in extended hours trading may result in wider than normal spreads for a particular security
Business Continuity Disclosure
Devenir Capital Ltd. has developed and implemented a Business Continuity Plan (“BCP”) designed to address and mitigate the potential consequences of a significant business disruption.
Our BCP is intended to permit the temporary continuation of the key parts of our business despite the occurrence of a significant business disruption with a goal of recovering the key aspects of our business within twenty four hours or less. Our BCP also is designed to safeguard employees, protect our books and records, and provide ready access for our clients to any securities and/or funds in the custody of our partnering bank depositories in the event that we are unable to achieve a timely recovery.
Our BCP tries to anticipate the various types of events that could interfere with our ability to operate on a normal basis. Staff have been assigned to specific recovery responsibilities and trained in special procedures to be followed should an event occur that could cause a disruption to occur. Devenir Capital Ltd. has deployed an overlapping communications triangle that connects three geographically diverse locations to ensure flexibility and redundancy in our ability to communicate internally and externally. All mission critical systems have been duplicated in each of our data centers with data backed up electronically on a near synchronized basis at locations over 700 miles apart and also duplicated in physical form and sent to secure off-site facilities at the end of each business day. We also have deployed redundant communication lines from multiple locations with industry utilities, information providers, and clearing organizations. We have established alternative methods to communicate with our employees, clients and regulators.
We believe that our BCP meets or exceeds all industry standards and regulatory requirements. We further believe that we have implemented reasonable and prudent measures to overcome or at least mitigate the consequences of an event that would otherwise interfere with the normal course of our business. However, because it is not possible to anticipate the nature, scope, impact and consequence of every possible business disruption, Devenir capital Ltd. does not represent or guaranty that it will be able to continue or resume business operations within any specified period of time under all circumstances.
Devenir Capital Alternative Investments (“DCAI”)
This website provides general information about DCAI and its investment strategies. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Investments and investment strategies discussed on this website may not be suitable for you. You should weigh any investment decision carefully after considering your specific investment objectives and financial circumstances.
All information is current as of the date of this material and is subject to change without notice. Any views or opinions expressed may not reflect those of Devenir Capital as a whole. DCAI products and services may not be available in all jurisdictions or to all client types. Investing entails risks, including possible loss of principal. Investments in hedge funds and alternative investments are speculative and generally involve a higher degree of risk than more traditional investments. Investments in hedge funds and alternative investments are intended for sophisticated investors. Indexes are unmanaged and are not available for direct investment. Past performance is not indicative of future results.
Information contained in this website is based upon generally available information believed to be reliable, but no representation is made as to the accuracy, timeliness or completeness of such information or that any returns indicated will be achieved. Changes to assumptions may have a material impact on returns.