Overview of TOP weekly news

German exports recorded significant growth

Germany has recorded significant export growth due to growth in exports to China and the US, despite the extension of the lockdown in Germany aimed at suppressing several COVID-19 cases.

The trade surplus of Europe’s largest economy has thus risen to €16.1 billion. According to the Federal Statistical Office, seasonally adjusted exports rose slightly by 0.1% after a 2.3% increase in November. On the other hand, imports decreased by 0.1% after increasing by 5.4% in the previous month.

Thus, Germany did not plunge into contraction in December due to strong demand from China, which helped export-oriented producers overcome the COVID-19 pandemic. Year-on-year, exports to China increased by 11.6% and to the USA increased by 8.4%. Exports to the United Kingdom decreased by 3.3% in December and imports from the United Kingdom decreased by 11.4%.

Germany has lowered its GDP growth forecast to 3% for 2020, a significant revision from the autumn’s estimate of 4.4%. The economy is unlikely to reach its pre-pandemic level until mid-2022. [1]

Stock markets have seen the longest growth

Positive optimism can be observed due to vaccination optimism as well as new monetary and fiscal stimulus. As a result, stock markets in America are breaking records every day, and the S&P 500 rose for the seventh session in a row and closed again at new all-time highs.

We are also optimistic about commodities, as oil has hit $60 a barrel for the first time since January 2020. [2] Optimism has also spread to the banking sector, which is benefiting from the increase in longer yields and a steeper yield curve. Market inflation expectations in the US have already reached their five-year highs.

Looking at Europe, we cannot talk about such positive prospects associated with the coronavirus in terms of the dynamics of the number of infections and terms of the onset of vaccination. Recent reports suggest that AstraZeneca is far less effective against the South African variant of the virus.

Great ride of Reddit

Reddit has doubled its market capitalization to $6 billion thanks to a new round of financing. The Reddit platform came to the attention of retail investors, who contributed to the growth of GameStop. According to GameStop, Reddit earned $250 million through funding in the last round, while it was previously valued at $3 billion after the last round of funding in February 2019.

“It’s a good fundraiser,” Reddit CEO Steve Huffman said in an interview. “The awards are very high at the moment.” Collecting money will never hurt when there is an opportunity and Reddit has had a strong year. ”

Apple’s supplier resumes production

One of Apple’s major Indian suppliers, Wistron has announced the resumption of operations at its factory in southern India. The reason for closing the company during the last year was a strike of employees after non-payment of wages. As a result, workers destroyed assets as well as iPhones on December 12, costing millions. However, Wistron is working hard to raise standards for workers.

Performance of Wistron’s shares (Source of the graph: Tradingview) [3]

Nissan disappointed with the results

Japanese carmaker Nissan announced its financial results on Tuesday. The company recorded an operating loss of $1.26 billion over the past nine months to December 31. This is a significant decline, with a profit of $0.52 billion over the same period a year ago.

Performance of Nissan’s shares (Source of the graph: Tradingview) [4]

Watch this week:

Thursday, February 11, 2021

The ECB will publish its economic outlook for the current and future years. *

The US will publish the    Initial Jobless Claims. Analysts expect 757,000 new applications after 779,000. *

Friday, February 12, 2021

The United Kingdom will publish GDP for the fourth quarter. Analysts expect a decline of 8.1% on year-on-year base. *

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.

 

[1] 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.

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

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

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

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