Here are five things you need to know this morning:
Bitcoin surges on Trump comments: The world’s largest cryptocurrency is trading higher this morning after a weekend speech by Donald Trump where the U.S. presidential candidate said he wants to make America the crypto capital of the world. Trump said he will make the U.S. a “crypto superpower” if he returns to the White House, promising to fill regulatory bodies with more crypto-friendly individuals. He also floated a new idea in proposing that the U.S. government should not sell crypto assets it seizes in criminal cases and instead keep them as the basis for what he called a strategic bitcoin stockpile — similar to what Uncle Sam does with crude oil. Bitcoin is up by almost three per cent this morning and is within about $4,000 of the record high of nearly US$74,000 it hit in March.
McDonald’s sales fall for first time since 2020: Sales at McDonald’s failed to grow for the first time since 2020 last quarter, the fast food giant revealed this morning in earnings that missed analyst expectations for revenue and profit. Same-store sales fell in every one of the company’s markets, including the U.S., where a decline in foot traffic was partially offset by higher prices. The company’s shares have lost 15 per cent of their value so far this year.
Doubts cast over Maduro’s narrow, unofficial Venezuelan election win: The votes have been cast and tallied in Venezuela and long-time incumbent Nicolas Maduro is claiming victory with a slim majority of ballots. Government numbers suggest Maduro took just over 51 per cent of votes cast compared to 44 per cent for rival Edmundo González. That’s a razor thin margin of victory by the standards of such things, and the opposition and international observers are dubious. Opposition leader María Corina Machado, who was barred from running herself, said her coalition had gained access to 40% of the tabulated votes and had González winning 70 per cent of the vote. The U.S. has “serious concerns that the result announced does not reflect the will or the votes of the Venezuelan people,” U.S. Secretary of State Antony Blinken said Monday, while Chilean President Gabriel Boric called the results “difficult to believe.” The main impact on investors from the Venezuelan vote will be in as much as it influences the global crude market, where Venezuela is a major producer. But the country’s output has collapsed in recent years compared to where it was when Maduro succeeded the late Hugo Chavez in 2013. Venezuelan bonds fell almost one cent to just over 20 cents on the dollar, a sign of just how much of a problem the country has with international investors.
Oil price trades near 6-week low: Speaking of oil, the price of the North American crude oil benchmark known as West Texas Intermediate is trading near its lowest point in six weeks. Upbeat consumption numbers out of Beijing, combined with ever higher tensions in the Middle East have not been enough to offset longer term concerns about supply and demand. Two major events that could move oil this week are the U.S. Federal Reserve decision on Wednesday followed by an OPEC meeting on Thursday but neither event is expected to move things significantly for the energy commodity that is looking increasingly rangebound this year.
Deadpool movie opens to best box office tally of the year: Walt Disney Co.’s Deadpool & Wolverine took in US$205 million at the box office in the U.S. and Canada this weekend, the biggest debut of the year so far and the best ever for an R-rated movie. The superhero movie took in twice as much as 2019’s Joker did in its opening weekend, the current box office leader for an R-rated movie. The bonanza is good news for Disney, where the film division hasn’t turned a profit since 2022. It’s also good news for cinema chains like AMC, Cineworld and Canada’s Cineplex.