Overview of TOP weekly news
The European Union is introducing tariffs
Following an annual survey, the European Commission has come to the preliminary view that Amazon has infringed EU competition rules by using non-public sales data that it collects on its website to inform its products and services.
“We need to ensure that dual-market platforms with market power, such as Amazon, do not distort competition. Data on the activities of third-party vendors should not be used for Amazon’s benefit if it acts as a competitor to those competitors, “said Margrethe Vestager, who oversees EU competition policy, which outlined two areas of concern for the world’s dominant retailer.
As a result, Amazon will be fined antitrust for treating 150,000 European traders.
Jeff Bezos promised an investigation and told Congress he was not happy with getting to the bottom of things.
Slow recovery of economies
Evercore ISI surveyed across thirty sectors. According to the survey, the situation is improving in each of them, but to a different extent. The worst affected sectors are still air transport, where improvements are minimal, but on the other hand, for example, road freight transport has seen great improvements.
The Chinese economy is said to be the strongest in the world and expects to grow by more than 8% next year. This will also help the world economy, but it could be slowed down by the ongoing trade war between China and the United States. That may not change even if Joe Biden is elected US president. In any case, China was the first country to be affected by the virus and also the first country to emerge from the crisis.
The negative impact of the U.S election
Hedge funds turned out to have raised stakes against Canadian energy companies ahead of Tuesday’s U.S presidential election. Oil demand could fall as Democratic party candidate Joe Biden has won a battle with incumbent President Donald Trump.
Biden has set out a series of environmental plans that include the will to move from the oil industry to renewables.
Rob Romero, Connective Capital’s portfolio manager, said: “I think Biden would support a more interventional policy in the economy that favours renewable energy so that demand for Canadian energy could be called into question. For example, gas and liquid projects would receive less support and enforcement of environmental legislation would be strengthened. ”
The struggle of shareholders and society
Shareholders of Unibail Rodamco Westfield voted against the planned issue of rights to existing holders of equity securities worth EUR 3.5 billion. The rejection followed strong opposition from a consortium led by French billionaire Xavier Niel and Leon Bressler, the company’s former CEO. The consortium stated that Unibail did not need to issue rights to meet its financial obligations by 2023 and that it would destroy the value of the group’s stake.
Performance of Unibail Rodamco Westfield’s shares (Source of the graph: Tradingview)
Eli Lilly got permission
The U.S. Food and Drug Administration has granted Eli Lilly the first emergency use permit for treatment with anti-Covid-19 antibodies, which a pharmacist says will help vulnerable people avoid hospitalization. Treatment designed to strengthen patients’ immune systems with engineered antibodies is the first drug developed for use in the early stages of the disease. It will be given to people with difficulty and the elderly.
Performance of Eli Lilly’s shares (Source of the graph: Tradingview)
Watch this week:
Thursday, November 12, 2020
The United States will publish the development of the CPI core index. The index should grow by 0.1% on a month-on-month basis in October
France will publish CPI inflation in October. Analysts expect a 0.1% decline on a month-on-month basis.
Friday, November 13, 2020
The euro area will publish GDP developments in the third quarter. 12.7% growth is expected after an 11.8% decline on a quarter-on-quarter basis in the third quarter.
Source of the text: Investing, Zerohedge, Financial Times, Reuters, Tradingview