Overview of TOP weekly news

Hedge funds have a new target

After a fight broke out in the market between David and Goliath on highly short-lived companies like GameStop or AMC, the fight shifted to Canadian oil miners. According to published data from the market regulator, hedge funds have increased their short positions in Canadian silver mining stocks while retail bets on their growth.

The largest percentage changes were recorded for First Majestic Silver (+ 60.5%) Corp, Pan American Silver (+ 30.7%) and Wheaton Precious Metals, Fortuna Silver Mines and Silvercorp Metals Inc, which also recorded double-digit growth. [1]

Short positions in Panamericane rose to 35.9% from 3.3%, while Fortuna silver mines rose to 36.6% from 2.2% and Silvercorp Metals Inc to 23.1% from 1.4%.[2]

[1] Past performance is no guarantee of future results.

[2] Past performance is no guarantee of future results.

European Union Recovery Plan

“I expect the Member States to ratify the recovery plan in time because it is in their interest for it to do so that the Commission can go and collect money on the markets,” said Head of European Commission Ursula von der Leyen.

Risks that may slow down the creation of a recovery plan are emerging due to the Italian political crisis. Reassurance in the EU could be provided by AstraZeneca, which is to provide 40 million doses of anti-COVID vaccines over the next two months and offset the slowdown in deliveries during the first quarter.

According to Leyen, 70% of Europe’s adults should be vaccinated by the summer, and we can also expect 300 million doses of Pfizer, Moderna and AstraZeneca vaccines in the second quarter. The possibility of 80 million doses from Johnson & Johnson and Curevac is also opening up.

Positive outlook for the US economy

According to the Congressional Budget Office (CBO), the United States economy is expected to grow 4.6 per cent this year after a 3.5 per cent decline last year. With this statement, the CBO increased its outlook by 0.6% from the previous 4%. The outlook focused on vaccination against COVID-19 but has not yet included the expected $ 1.9 billion stimulus to support the economy.

“Vaccination is expected to significantly reduce the number of new cases of COVID-19, a disease that causes coronavirus. It is expected to reduce social distances as a result,” said CBO in the report.

The CBO predicts a reduction in unemployment to 5.7% from 8.1% last year, and the pre-pandemic level of unemployment could not be reached until 2024. On the other hand, the CBO expects economic growth to slow to 2.9% next year and 2.2 % in 2023.

BP made a loss for the first time in 10 years

The oil company BP reported a loss of $5.7 billion last year. The reason was the declining demand for oil as well as fuel consumption, which decreased throughout the year. On the other hand, the company surprised with a profit of $115 billion in the last quarter of 2020.

Performance of BP’s shares (Source of the graph: Tradingview)

Panasonic expects profit growth

Panasonic increased its full-year operating profit forecast by more than half on Tuesday after streamlining operations and reviving sales. Expectations have risen from the original 150 billion to 230 billion yen.

The company’s positive outlook is also supported by the development of a battery cell designed by Tesla. According to Panasonic, the battery should halve the cost of the battery and increase battery production by a hundred times by 2030.

Performance of Panasonic’s shares (Source of the graph: Tradingview)

Watch this week:

Thursday, February 4, 2021

The United Kingdom will discuss the amount of QE as well as the change in the base interest rate during the BOE meeting. *

Friday, February 5, 2021

Australia will entrust the development of retail sales in December. Month-on-month sales fell 4.2% in November. *

The US will announce the entrustment of unemployment developments in January. Analysts expect unchanged unemployment at 6.7%. *

Source of the text: Investing, Zerohedge, Financial Times, Reuters, Tradingview

  • Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.

Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.