• SPAC Sinkhole: The number of SPAC stock listings dropped 79% from the first quarter of this year to the second. Two of the reasons for this plummet are: 1) the SEC has questioned the accounting and financial projection practices of SPACs and 2) the post-IPO performance of SPACs has been disappointing with the IPOX SPAC Index dropping 28% since it hit its high in February.
• Asian interest rates: South Korea is now the first major Asian economy to raise its interest rate since the pandemic started. The rate was raised from 0.5% to 0.75% in the hope of cooling the rapid rise in home prices and household debt.  This is an important for two reasons. Not only will it increase the borrowing cost in Asia’s fourth largest economy but it could lead to a decrease US treasury purchases by foreign investors as they will now find more attractive yields elsewhere.
• ESG looking for love: In the five years following the Paris Climate Accords, the 60 largest banks increased their investments in coal, oil, and gas by close to $4 trillion. This is compared to providing just over $200 billion in bonds and loans to various renewable projects. This could be a concern for investors as the activism and interest in ESG gains momentum over the next several years.
• Get out of my (water) way:The twin ports of Los Angeles and Long Beach are the largest water gateways for trade between the US and Asia. As of Friday, there were 44 container carriers that were anchored outside the ports and waiting for entry space. This is the highest number of ships waiting to enter since the pandemic started, displaying how labor shortages, a lack of supporting inland transportation supply, and the covid virus continue to create issues for the economy.