Overview of TOP weekly news

Deutsche Bank agreed to pay the fine

Deutsche Bank agreed to pay a $ 150 million fine for non-compliance because it transferred Jeffrey Epstein’s money. The fine for Deutsche Bank is the first regulatory sanction against a financial institution in negotiations with Jeffrey Epstein. The company’s shares fell by approximately 0.6% after the announcement.

In 2016, Deutsche Bank agreed to pay a $ 7.2 billion fine for its role in the US housing crisis. Next month, Deutsche Bank’s shares traded slightly higher and a year later the share price remained almost unchanged.

Performance of Deutsche Bank’ s shares since January 2020. (source of the graph: Investing)

 

Spain’s richest man is investing in real estate

After Amancio Ortega made a fortune in the clothing industry, he turned his attention to real estate. The Spanish billionaire’s real estate assets have risen to € 15.2 billion, revealed for the first time by his company, providing him with the largest real estate portfolio among the super-rich in Europe.

The founder and owner of the fashion brand Zara last year invested 2.1 billion euros in various properties through subsidiaries of its holding Pontegadea. Ortega owns 59.3% of Inditex, the parent company of Zara. In 2019, Pontegadea had net income of € 1.8 billion, of which € 1.64 billion in dividends and € 621 million in real estate.

Ortega’s assets are valued at $ 58.5 billion, according to the Bloomberg Billionaires Index, most of which comes from its majority stake in Inditex. His assets fell by more than a fifth this year as a pandemic when Inditex had to close its stores. The company’s shares fell by 22% this year.

Is the US facing the second wave of coronavirus?

California, Hawaii, Idaho, Missouri, Montana, Oklahoma and Texas on Tuesday set a new record in the daily growth of new pandemic infections. The biggest leaps occurred in Texas and California, the two largest states in the United States, each with more than 10,000 cases. About 24 states report alarmingly high rates of infection as a percentage of diagnostic tests performed in the last week.

Further hospitalizations could put a strain on health care systems in many areas, leading to an increase in the lives lost to respiratory disease, which has so far killed more than 131,000 Americans. At least 923 of those deaths were reported on Tuesday, the largest one-day increase since June 10, but still much less than the record 2,806 registered in April.

Development of daily coronavirus cases in the USA. (Source of the graph: Worldometers)

 

Will Lemonade become the most successful IPO this year?

Lemonade’s IPO ranked among the fastest-growing companies during the first day of its listing. IPO, which belongs to the insurance company Inari Medical Inc. focused on AI saw 73% growth right after opening to $ 29 and closed the day 140% higher.

Unlike other insurance companies, Lemonade is a so-called full insurance company, which means that it assumes the risk on its balance sheet and not to transfer it to a more established insurer. This means that it has more control over what business policy it sells, but it is also a more capital-intensive business model.

Performance of the Lemonade‘s shares. (Source of the graph: Investing)

Will UK impose sanctions on Huawei?

On Wednesday, Huawei Vice President Victor Zhang said US sanctions on Huawei’s technology did not have an immediate effect on the Chinese company’s ability to ship 5G devices to the UK.

“These restrictions did not affect Huawei’s ability to deliver 5G and a fibre solution in the UK. We need to talk about the long-term impact, it takes time, it can take months,” Zhang told to reporters.

Performance of Huawei‘s shares (Source of the graph: Investing)

 

Watch this week:

Wednesday, July 8 2020

The European Union will publish the outlook for economic growth in the euro area.

Thursday, July 9 2020

The US will publish a change in applications for unemployment benefits. Analysts expect a decline in the growth of applications compared to the previous month to 1375 thousand applications for benefits.

 

Source of the text: Investing, Worldometers, Financial Times, Reuters

 

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