Market Loop - Ukraine's grain gets freed up

EUROPE
Ukraine's grain gets freed up

What happened?
On Friday Ukraine and Russia signed an agreement to reopen three key Ukrainian ports, in an attempt to avoid plunging the globe into a catastrophic food crisis.

Catch-up: Ukraine’s Black Sea ports have been blocked by Russia's military since the war began, halting around 90% of Ukrainian grain exports and causing prices to skyrocket. 

The agreement, brokered by Turkey (perhaps the only country friendly with Russia and Ukraine), will restore shipments to their pre-war capacity. 

Ukraine’s ports are expected to be fully operational within a few weeks and will stay that way for at least 120 days, before the deal is up for renewal.

Ukraine’s ships will be closely monitored by a base in Istanbul and granted safe passage on their way to Turkey’s Bosphorus Strait, before setting sail for global markets.

Why it matters: Ukraine is responsible for 10% of the world’s wheat and (in conjunction with Russia) 12% of all calories exported—shuttered ports have had an outsized impact on global hunger (in the last two years, the number of food-insecure people has more than doubled). The deal also marks the first time the two warring nations have publicly signed an agreement. 
 
Bottom line: The UN’s secretary-general said last month that there is “no effective solution to the global food crisis without reintegrating Ukraine’s food production.” 

CRYPTO
Barclays takes stake in $2bn crypto firm

Barclays is on the verge of multi-million pound investment in Copper, a British crypto firm, according to reports over the weekend from Sky News.

Founded in 2018 Copper provides services to institutional investors like asset managers who want to trade in crypto assets. The company is also advised by former chancellor Phillip Hammond. 

The crypto firm was reported to be angling for a valuation of over $3bn in its latest capital raise but has since scaled back the plans to $2bn amidst the crisis that has wiped more than $2tn of the value of the sector.

Barclays has often had a checkered past with the crypto industry including denying its services to big name exchanges like Binance and Coinbase. But in 2015 it became the first UK bank to support crypto by persuading charities to accept cryptocurrency as a form of donations.

Zooming out: Copper's funding round comes amid a turbulent time for the crypto industry. This year the main currency Bitcoin has lost almost half its value and in recent months a raft of crypto firms have announced job cuts and scaled back growth plans.