Weekly Market Update - 26 December 2022

SBF Bail Package

Sam Bankman-Fried was released on a $250 million bail package — which includes a personal recognizance bond secured by his parents’ house in California — after making his first US court appearance to face fraud charges over the collapse of FTX. Federal prosecutor Nicholas Roos said is one of the largest pretrial bonds in US history, and its size will “severely restrict” Bankman-Fried’s movement. His bond must be signed by his parents and two other people with “considerable” assets by Jan. 5.

Source: Bloomberg

Chinese Cases Soaring

China’s soaring Covid infections are keeping people home and causing a slump in travel and economic activity. Subway passenger numbers have plummeted recently in cities including Shanghai and Guangzhou as infections surged. Congestion levels across 15 major cities are 56% below the level in January 2021, according to the benchmark used in an index compiled by BloombergNEF based on Baidu traffic data. “Many would-be consumers will likely stay home and forgo certain activities to avoid exposure to the virus,” said Jesse Wheeler, economic analyst at Morning Consult.

Source: Bloomberg

Government Funding Bill

The US Senate passed a $1.7 trillion government funding bill that includes more aid for Ukraine and changes to the way presidential elections are counted. Passage of the bill funneling $47 billion toward Ukraine’s defense effort against Russia came a day after Ukrainian President Volodymyr Zelenskiy addressed Congress. The bill — a victory for Democrats — now heads to the House, where Republican leaders are urging their members to oppose it. They argue they should be allowed to write their own funding plan and enact deep spending cuts in January when they take over the majority.

Source: Bloomberg