Happy Friday, readers. The West's sanctions on Russia continue to batter the Russian economy, and crypto is playing a role. Plus, Richard Branson has been accused of pocketing millions in a new Virgin Galactic lawsuit.
Let's get into it.
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1. JPMorgan said the collapse of Russia's currency will boost crypto. In the wake of the ruble's plunge, bitcoin transactions denominated in the Russian currency have spiked.
Meanwhile, about $1.5 billion flowed into stablecoins since Russia's invasion of Ukraine, sending their share of the overall cryptocurrency market to a record high of 10%. Stablecoins are a primary facilitator of fiat-to-crypto conversions. JPMorgan noted that citizens of Venezuela, Brazil, and Turkey have made a similar rush to crypto in recent years.
Russian citizens have lost significant purchasing power as a result of sanctions, and have flocked to banks to withdraw dollars or other currencies as domestic cash loses value.
On Friday, markets were rattled again after Russian forces captured Ukraine's largest nuclear power plant, sparking fears of potential nuclear disaster that sent oil back above $110 a barrel and battered European stocks.
The West's sanctions have devastated Russia's economy to such an extent that both Moody's and Fitch slashed the country's credit rating to "junk," a downgrade of six notches.
The downgrades signal are a warning to investors that Russia is at high risk of defaulting on its debts, echoing the sentiment of the international banking lobby that this week warned a default is "extremely likely" if the Ukraine crisis persists.
In other news:
2. European shares are plunging and US futures are sharply lower. Russian forces seized Ukraine's biggest nuclear power plant, which has seen volatility surge. Here's what's happening across the markets today.
3. Earnings on deck: Atlas Technical Consultants, RF Capital Group, and Ensign Energy Services, all reporting.
4. UBS shared which sectors that investors should buy stocks in as the Russia-Ukraine crisis heats up. While 2022 has been a rough year in the market, UBS investment chiefs gave their investing advice for a volatile landscape — and why they still see upside for the S&P 500.
5. Russian stocks are "uninvestable" and will be removed from indexes at MSCI and FTSE Russell. Before announcing the decision, the index providers consulted advisory committees, asset managers, and exchanges. London also scrapped trading in Russian shares.
6. Richard Branson and Chamath Palihapitiya are being sued for allegedly covering up flaws in Virgin Galactic's spaceships and pocketing millions by dumping shares. The lawsuit alleges that both individuals took advantage of an "artificially inflated" stock price while knowing the ships were defective. The shareholder who filed the suit now seeks damages from the company's leaders.
7. Meme investing is going to war against Russia. Ukraine has capitalized on dogecoin, Elon Musk, and NFTs to support its military efforts. "Now even meme can support our army and save lives from Russian invaders," Ukraine's Vice Prime Minister tweeted.
8. This 29-year-old made $271,000 in 2021 with online freelance platforms like Fiverr. Before that, she quit her job on a whim and didn't have any savings, but has since been able to go from charging $5 for a writing gig to making well over six figures annually.
9. A real estate investor with over 100 rental units shared his "4, 3, 2, 1" strategy that anyone can use to start investing in properties. Anyone who has patience can use real estate as a way to bolster their wealth, he explained. "It's a skill that can be learned."
10. The wildest pandemic-era economic indicator is suddenly boring. The number of Americans filing for unemployment is nearing pre-pandemic levels — here's why that's a good sign for the US economy.
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Curated by Phil Rosen in New York. (Feedback or tips? Email [email protected] or tweet @philrosenn.)