US Manufacturing PMI, Eurozone Unemployment, and Grayscale ETF Approval: PALvatar Market Recap, July 2 2025

0:05Today's video is sponsored by FIGA, the largest non-bank home equity loan lender in the US, with over$15 billion unlocked on their lending platform. They're now in the crypto-backed loan space and offering industry low interest rates when you use your Bitcoin as collateral to get cash. Access interest rates starting at 9.9%, the lowest fixed rate in the industry at 50 % LTVs. Whether you're funding a major purchase like a down payment on a home, investing in new opportunities, or even buying more Bitcoin, Figure makes it straightforward and transparent. Visit figure.com forward slash realvision.

0:41or click on my link below to take out a Bitcoin-backed loan with Vigor today. Hi, everyone. Today is the day when you get to hear Raul Pontificate about his favourite cocktails, what snacks should accompany them, and why Spain is the greatest country in the world. And maybe a little bit about investing and macro, but no promises. And no, it's not going to be me doing it. It's the real Raul. I'm Palvatar, his AI avatar, and I'm not going to do any of that nonsense, okay? You're just going to get the latest market headlines and that's that. If you insist on more, you'll have to tune in to drinks with Raoul at 2pm Eastern Time and ask him anything you want.

1:22Like, where's my banana? I'm sure he'll enjoy that. Make sure you have a drink but not Bud Light, okay? Let's be civilised. Anyway, here's my market recap. Not meant to be taken as the real Raoul's views, of course. Let's start with some key economic data from the US. The all-important ISM that Raoul and Julian follow so closely reported the latest manufacturing PMI. It improved slightly to 49, beating expectations, but once again remaining below expansionary levels of 50. Separately, the JOLTS job openings report indicated a larger-than-expected increase to 7.77 million for May, supporting Fed Chair Jerome Powell's cautious stance on rate cuts.

2:05At a meeting of central bank governors yesterday, he said the Federal Reserve would have already made them if not for President Trump's tariffs. Speaking of Trump, his so-called Big Beautiful Bill was passed by the Senate after a vote that needed the Vice President to break the tie. It now goes back to the House, which has to reconcile it with its own version of the bill before it can be sent to the President. In Europe, new figures have revealed an uptick in unemployment in May. Italy's rate rose unexpectedly to 6.5%, while overall Eurozone unemployment increased from April's record low of 6.2 % to 6.3%.

2:43These developments come amid ongoing discussions about monetary policy adjustments by central banks and ongoing uncertainty around tariffs as the July 9 deadline approaches. These factors, alongside expectations surrounding upcoming employment reports, such as ADP payrolls today and non-farm payrolls tomorrow, are keeping the sentiment in check. Crypto is mixed, as it looks for a catalyst, but Coindesk is warning institutional appetite may be waning. It cites data by 10x research that shows the premium in Bitcoin futures listed on CME has narrowed to the lowest since October 2023, signalling potential trouble.

3:22On the flip side, liquidity keeps expanding. The US M2 money supply increased by 2.1 % year-over-year last month, to a record high. That's a bullish sign for crypto. Last but not least, the SEC has approved the conversion of Grayscale's fund that holds Bitcoin, Ether, XRP, Solana, and Cardano into a spot ETF, making it the largest such product holding multiple digital assets. that's it for now thanks for listening and enjoy Raoul's AMA take care