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This week, Europe is on edge as Trump’s impending tariffs create fears in China and across the eurozone. Meanwhile, ICOs are making a strong comeback in the crypto space, raising millions in seconds. And in an unexpected twist, a winning bidder is being sued by Christie’s after failing to pay for a record-breaking Chardin masterpiece.

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The Weekly Fun Fact 🤔

At a Christie's auction in June, Jean Siméon Chardin's €26.7 million still life masterpiece, Cut Melon (1760), broke several records, but the winning bidder has yet to make the payment. Nanni Bassani Antivari, an Italian investor who won the offer, is currently being sued for not paying. After months of unfulfilled promises and ignored pleas, Christie's is requesting €27.4 million, including penalties and interest. 

Even record-breaking sales aren't always guaranteed to close in the sometimes unstable world of high-stakes art auctions, as this case illustrates.

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🔴 China braces for another trade war ⚠️

With President-elect Trump’s tariff threats ranging from 10% to 60% on Chinese goods, manufacturers are preparing for tough times ahead. China's exports to the United States fell from 20% to 13% of overall exports during the 2018–19 trade war, and inflows of foreign investment dropped significantly. This time, companies are considering options like relocating production, targeting European markets, or focusing on domestic sales — all of which come with challenges. 

Business activity and consumer spending are still weak despite recent stimulus initiatives. American businesses are preparing for the shock by storing goods, as foreign CEOs in China grow increasingly pessimistic. The next trade war might be even harder to navigate.

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🟡 Central banks at a crossroads 💸

2024 will be shaped by the Federal Reserve and the European Central Bank's divergent monetary policies. While the ECB is inclined to reduce interest rates in light of Europe's disappointing performance, the Fed is cautious about rate drops due to the strong US economy.

This widening rate gap, which could exceed 2 percentage points next year, has already strengthened the dollar by 5% against the euro. As Trump prepares to re-enter office, this could spark renewed tension with the Fed, reminiscent of his first term’s clashes over trade competitiveness and currency strength.

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🟢 ICOs are back in the spotlight 🚀

Initial Coin Offerings (ICOs) — the crypto fundraising craze that peaked in 2018 — are making a comeback. In December alone, projects raised over $17 million on investment platform Echo, more than doubling November’s $7.2 million. The blockchain project MegaETH hit $4.2 million in 56 seconds, then secured another $5.8 million in just 75 seconds.

This revival signals a shift toward community-first funding, where retail investors gain early access rather than venture capitalists. With Trump’s pro-crypto stance, some expect regulatory leniency, though experts still advise caution.
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Interesting reads

Why the S&P could plunge 19%
For a while, semiconductor stocks have served as a leading indicator. The present difference between the SMH and S&P 500 might lead to a big drop.

Stocks fail to recover from Fed-fueled selloff
Global share markets fell after the Fed expressed concerns about inflation and said it will likely cut interest rates in 2025.

Central banks started a rates descent they can't finish
In 2024, interest rate reductions will be implemented, even at institutions that oppose easing. But pay attention to the subtleties.

Rise and fall of Patek Philippe’s Nautilus reflects the 2024 tumult on the market
The stratospheric Nautilus has landed back on solid ground with mid-estimate auction results this month. Does this tell us what kind of year we've just lived through?

7 charts to understand where Bitcoin is today
Here’s a collection of graphs and visuals to help you comprehend the current stage of the Bitcoin cycle and the ways it’s influencing financial markets.

🎬 It’s a wrap! From Europe’s trade worries to the revival of ICOs and an art scandal shaking the auction world, there’s no shortage of drama this week. iday! 🎄