👨‍⚖️ SEC Greenlights ETH ETFs, Harris Wins Dem Nomination 🇺🇸

Good Morning!

Tech giants are driving Asian markets higher, following Wall Street's rebound. TSMC and Samsung lead the charge, boosting the MSCI Asia Pacific Index. Meanwhile, the yen's flexing its muscles against the dollar, and we're all ears for Tesla and Alphabet's earnings later today. With Harris securing the Democratic nomination, we're seeing some political clarity. But the real nail-biter? This week's economic data and the Fed's favorite inflation metric.

In today’s email:

• Harris: Kamala Harris secures Democratic nomination

• Bitcoin: taking a breather here around $67k

• SEC: Approves Spot-ETH ETFs

• China: Tightening short-selling rules

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THE BIG IDEA

Canola's potential as a biofuel feedstock is attracting major investment, but political uncertainty looms

Forget your salad dressing – canola's got bigger fish to fry. This Canadian-born oilseed is making waves in the biofuel world, with energy giants and agribusinesses betting big on its potential. Chevron, Bunge, and Corteva are expanding their canola program sevenfold, while Scoular's dropping millions on a new crushing facility.

Why the buzz? Canola's oil content is double that of soybeans, making it a juicier option for renewable diesel and jet fuel. As the world looks to decarbonize heavy transport, oilseed producers are jockeying for position in this growing market.

But here's the rub:

November's election could throw a wrench in the works. A Trump win might dampen biofuel incentives, while a Harris nomination could face scrutiny over California's EV push.

Still, farmers are cautiously optimistic. Kentucky's Jed Clark, a canola newbie, sees promise in the crop's corporate backing. Plus, canola's bringing some perks to the field – boosting soil health, suppressing weeds, and even attracting photo-op seekers with its vibrant yellow blooms.

The stakes are high. By next year, the US and Canadian market for biofuel oils could hit a cool $20 billion. That's music to farmers' ears as they face income headwinds.

Canola's journey from kitchen staple to potential fuel powerhouse is a testament to agricultural innovation. Its deep roots and soil-enhancing properties make it an attractive double-cropping option, potentially yielding 2.5 times more oil than a single soybean crop.

As processing capacity ramps up and demand for low-carbon fuels grows, canola could reshape the American agricultural landscape. But success isn't guaranteed – it'll take the right mix of political support, market demand, and farmer adoption to turn this oilseed into liquid gold. For now, all eyes are on those yellow fields, waiting to see if canola can fuel America's green energy dreams.

MARKETS AT A GLANCE

TOP NEWS

Kamala Harris secures Democratic nomination and campaigns in Wisconsin, focusing on beating Trump and energizing voters

VP Harris secures Democratic nomination after Biden's exit. She's set to campaign in Wisconsin, a key battleground state. With $81 million raised since Sunday and Hollywood backing, Harris aims to reset the campaign against Trump. Her focus: portraying herself as tough on "predators" and "fraudsters." The VP pick speculation begins as Harris targets crucial swing voters.

Bond traders reassess Trump trades as Harris gains support, focusing on economic data and Fed policy ahead of key releases

The bond market's buzzing, but not just because of the political drama. Sure, Harris is gaining momentum, but we've got our eyes on the real prize: economic data and Fed policy. Yields are ticking up as we brace for a slew of auctions and crucial reports. The 'Trump trade' might be losing steam, but let's be real – it's all about the Fed's next move. Will we see rate cuts by September? The upcoming GDP and inflation data could spill the beans. So, while the political circus rolls on, we're keeping our ears to the ground for the Fed's whispers. Stay tuned, folks – the next few weeks could be a game-changer!

China tightens short-selling rules to boost faltering stock market

Beijing's cracking down on short sellers as Chinese stocks stumble. Higher collateral requirements and lending halts are the latest moves, but experts doubt their long-term impact. While controversial, short selling isn't the root issue. The real market booster? Economic recovery and improved earnings. For now, investors are watching closely, waiting for more substantial reforms.

CRYPTO

SEC approves first US spot-Ether ETFs, marking a crypto milestone

The SEC's given the green light to spot-Ether ETFs, with big names like BlackRock and Fidelity jumping in. It's a major crypto breakthrough, but don't expect Bitcoin-level hype. Analysts predict more modest inflows, citing Ether's lack of a "digital gold" narrative. The crypto world's buzzing, but the real question is: will these ETFs spark an Ether surge?

Bitcoin eyes $68,000 as China cuts rates, fueling bullish sentiment

Bitcoin's surging towards $68,000, buoyed by China's surprise rate cuts. Traders are buzzing about potential all-time highs, with some eyeing September for new records. The last resistance hurdle? The $69,000 mark. With global interest rates trending down and crypto catalysts piling up, Bitcoin bulls are charging ahead. A Trump presidency is seen as pro-crypto, while Harris' stance remains unclear. With Trump set to speak at a major Bitcoin conference, the crypto world's excited. Will we see $71,500 soon? Some analysts predict Bitcoin could soon test all-time highs, fueled by ETF inflows and bullish options activity. Stay tuned!

SEC's crypto stance remains hostile despite recent developments

Despite Ethereum ETF approval and ending the ETH 2.0 probe, the SEC's war on crypto continues. They're still pushing two key arguments: many tokens are securities, and smart contract devs are regulated intermediaries. Recent court decisions challenge SEC's stance, but Gensler may try to stay on as commissioner post-Biden. The crypto industry eagerly awaits potential policy shifts under a new administration.

GOLD

Gold dips as dollar strengthens; investors eye Fed cues and economic data

Gold hit a one-week low today, dipping to $2,394.18 per ounce. The dollar's rise is making our shiny friend less attractive to foreign buyers. Investors are playing the waiting game, eyeing upcoming U.S. economic data and Fed comments for hints on rate cuts. Last week's all-time high of $2,483.60 seems like a distant memory now.

DAILY ECONOMIC CALENDAR (ET)

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