Overview of TOP weekly news
Trump admitted defeat
After a long refusal to defeat, Donald Trump said his administration would admit defeat and start working with Joe Biden’s team. The Republican team will thus admit defeat and the transfer of power can begin. On the other hand, the current president has pledged to continue to challenge his electoral loss.
Trump said on Twitter: “I will do what I need concerning the original protocols.” He also added: “I told my team to do the same” and added that it was “in the best interests of our country”.
Trump has so far faced increasing pressure from U.S. business leaders, who signed the opening letter on Monday (Larry Fink of BlackRock, David Solomon of Goldman Sachs and more than 160 executives). The letter, organized by a non-profit partnership for New York City, mentioned that the delay in the transition threatens the US response to the coronavirus pandemic.
France will approve a new security law
A new security law passed by the French National Assembly aims to strengthen police powers and limit the way photos identifying individual police officers can be shared online or in the press. The proposal is one of President Emmanuel Macron’s laws aimed at combating crime and terrorism.
The law sparked demonstrations near the National Assembly in Paris. The reason was said to have prevented the media from investigating frequent cases of police brutality.
The new law is expected to increase Macron’s current presidency among voters. The right-wing political party Les Républicains in the assembly “very certainly” supported the law, but the left-wing party accused Macron of turning to the far right in his parliament only for seeking re-election in the next presidential election, which will take place in 2022.
Companies are secured against Brexit
Companies and regulators have begun last-minute approvals to minimize disruption when the UK finally leaves the EU next month and its single market. France responded by closing a trading hub for Goldman Sachs and a dual listing for a dedicated FTSE 100 Segro.
Based on this, Goldman Sacks plans to set up a hub for Sigma X (a private European stock market). FTSE 100 Segro listed its entire share capital on the Euronext Paris stock exchange. The company wanted to protect its holding structure after the end of the transitional scheduled for January 1.
John Berrigan, the European Commission’s chief financial services official, said the end of the transition period would “necessarily be a fragmentation event”. He also added: “We need to keep repeating our message to market participants to get ready.”
Can we expect Chinese growth to continue?
According to Chinese Prime Minister Li Keqiang, the outlook for economic activity in the country next year will return extremely positive. GDP growth should also be in the range before the coronavirus pandemic.
“The Chinese economy can grow positively this year and we expect (economic) operations to recover to a reasonable extent next year,” Li told a news conference with leaders from six major international economic and financial organizations.
Performance of the Shanghai Composite index (Source of the graph: Tradingview)
Gold fell below $ 1,800
The risk-on mood in the market and the likelihood that at least one vaccine, and possibly all three, will be brought to life before Christmas will negatively affect the development of gold. The United States has also said it is likely to begin vaccination with Pfizer Inc. Another report is that Trump has finally allowed an official presidential transition to take place, despite previously refusing to allow incoming President Joe Biden’s administration access to critical government departments.
Performance of the Gold (Source of the graph: Tradingview)
Watch this week:
Thursday, November 26, 2020
The United States will announce new home sales developments in October. Analysts expect growth to 970 thousand from 959 thousand on a month-on-month basis.
The United States will publish developments in private consumption in October. Analysts expect 0.4% growth on a month-on-month basis.
Friday, November 27, 2020
Germany will publish GfK’s German consumer climate in November. It is expected to fall to -5 points from the current -3.1 points.
Source of the text: Investing, Zerohedge, Financial Times, Reuters, Tradingview