Overview of TOP weekly news

France wants to implement new regulation

France is considering approving a new law preventing the exchange of a new mobile phone by telecommunications operators. The reason is to reduce the environmental impact caused by telecommunications equipment.

French telecommunications operators such as Orange, Altice Europe, or Bouygues Telecoms are currently offering new customers a brand new smartphone in exchange for contractual obligations for a period of up to two years.

The French government official said: “We are ready to take new measures. The goal is clearly to extend the life of the terminals,” he added in connection with smartphones.

It is estimated by law to reduce up to 75% of the negative environmental impacts of the digital sector coming from the manufacture of equipment. These include CO2 emissions and consumption of water and other natural resources.

EU inflation has risen

According to the latest data released by Eurostat, year-on-year inflation in the European Union rose sharply to 1.2 percent in January, after a six-month period of slow growth. Eurozone countries, where after five months of their decline, inflation reached 0.9 percent.

On closer inspection, inflation rates were highest in Poland (3.6 percent), Hungary (2.9 percent), and the Czech Republic (2.2 percent) in January. In contrast, Greece had the lowest inflation (-2.4 percent), followed by Slovenia (-0.9 percent) and Cyprus (-0.8 percent).

It should be noted, however, that despite positive news, inflation is below the European Central Bank’s target of rising prices below 2 percent in the medium term. Last year, the ECB took a series of measures to support inflation and the economy, which is under pressure from the crisis caused by the spread of a new type of coronavirus. The ECB also indicated possible further stimulus measures as the outlook worsens due to the ongoing pandemic.

Bank of America expects oil prices to rise

Bank of America (BofA) has announced an increased outlook for the price of Brent crude in 2021 by $10 to $60 a barrel. BofA also predicts this year’s West Texas Intermediate (WTI) oil price at an average of $57 per barrel.* This is due to limited supplies due to production constraints in Texas and OPEC+ and unrivaled global monetary incentives.

Brent oil prices could reach $70 a barrel in the short term in the second quarter.* Likely release of lockdowns, positive economic forecasts for economic recovery and lower production as US oil supplies were constrained by deep frosts in Texas.

“Texas’ severe frosts over the past week are expected to reduce global inventories by another 50 million barrels, further boosting (oil) prices,” BofA said.

British stocks fell

Thanks to the positive statement of the British Prime Minister Boris Johnson on the development of the pandemic associated with the economic recovery, the British currency, as well as the shares reacted positively. These statements were overshadowed by the publication of labor market developments in December, which showed that unemployment had reached its highest level in five years. Unemployment was also associated with a further decline in employment of 114,000 in the last three months.

 

Performance of index FTSE 250 (Source of the graph: Tradingview) [1]  

The sale of bitcoin is an issue for Tesla

Tesla shares correlated with the development of the price of bitcoin after the announcement of the purchase of bitcoin for $1.5 billion. However, Tesla shares remain high after starting at a price of about $85 per share in 2020 and then reaching $900 on January 25.[2]

Tesla’s main drivers are retail and institutional investor demand, also thanks to ESG’s high rating (environment, social affairs, and governance).

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

Watch this week:

Thursday, February 18, 2021

The US will publish GDP developments in the fourth quarter. Analysts expect 4.2% quarter-on-quarter growth.*

Friday, February 19, 2021

Japan will publish the development of retail sales. Expectations are a 2.6% decline on a year-on-year basis. *

France will publish GDP growth for the fourth quarter. Analysts expect a 1.3% decline on a quarter-on-quarter basis. *

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

[1,2,3] Past performance is no guarantee of future results

*     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 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.

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