Overview of TOP weekly news
Trump’s plan to move production to the United States
In his last statement, US President Donald Trump promised to create ten million jobs in the United States in ten months. The unemployment rate fell to 10.2% from 11.1 percent in June but remained well above pre-pandemic levels.
At a meeting with his supporters in the state of Minnesota on Monday, Trump said on Monday, “We will end our dependence on China.” which outsource work to a Chinese subcontractor to cut them off from government contracts.
The president predicted that the US economy, if re-elected, would recover significantly from the slump caused by the Covid-19 pandemic. “What we do together is nothing less than an economic miracle. We have built the hugest economy in world history and now I have to do it again, “he added.
He will not see a recovery in the US
In a statement to CNBC, Economist Jeffrey Sachs said the United States had no clear policy in place to end the country’s epidemic. China has succeeded, and it is now undergoing a V-shaped recovery, which he said is certainly not the case in the United States.
According to Mr Sachs, we are living in an extremely special time, where technology and the geopolitical situation are changing. “We are in the digital world, while the physical world is changing rapidly.” As a result, the US economy will lose millions of jobs in the long run because it will not simply return to the norm we were used to before the pandemic.
Looking at the stock market, Sachs said the Fed pumped a lot of money into the economy, repeating what it did after 2008. Smaller companies, restaurants, small businesses, and similar businesses are not doing well, but the stock market is about other companies. They are doing well, in large part because they are connected to the Internet and benefit from technological advances.
The S&P 500 index closed at new highs
US stocks closed at new highs on Tuesday after the March slump, revived by central bank stimuli that removed all market losses caused by the coronavirus pandemic. The index was pulled by several large technology companies, which took the S&P 500 to new historical levels. Amazon grew by more than 4% that day; Google’s parent company, Alphabet, grew by 2.7%.
Apple, Microsoft, Facebook and the top five stocks in the S&P 500 together account for a quarter of the growth since half of sales at the end of March. “Growth and technology companies have performed incredibly well in the pandemic,” said Meghan Shue, Wilmington Trust’s chief investment strategist. “We think it’s probably too much – there’s a lot of optimism in the market right now.”
Performance of index S&P 500 (Source of the graph: Tradingview)
The world’s largest hotel operator is facing lawsuits
Marriott International is facing a lawsuit in London filed by millions of former hotel guests seeking compensation after their personal data was challenged in one of the biggest data breaches in history. Marriott announced to the FBI in 2018 that hackers had access to their hotel booking database in Starwood.
Martin Bryant, the founder of Big Revolution’s technology and media consulting firm, is the lead representative of the plaintiffs, who hacked more than 300 million records from Marriott’s global database, including passport and credit card information, between 2014 and 2018. “I hope that this case will raise awareness of the value of our personal data, result in fair compensation … and also alert other data owners that they must store our data responsibly,” he said in a statement.
Performance of Marriott International’s value (Source of the graph: Tradingview)
Iron ore has included a growth trend
Chinese demand for steelmaking raw materials is pushing the price of iron ore up, on the other hand, with increasing mining production, there is a risk of a slowdown. Demand for ore was driven by a Chinese stimulus to support its pandemic-affected economy and disrupted supplies that limited raw material production.
Analysts at ING Bank NV said: “Demand for iron ore in China is likely to remain strong, although uncertainty about Brazil’s supply has also supported the market in recent months. But as these uncertainties subside, we would expect prices to ease. ”
China’s economic stimulus has raised hopes for a revival of follow-up activities and strengthened the outlook for iron ore demand. Crude steel production in July recorded a third growing month of demand at 90 million tonnes and is expected to exceed 1 billion tonnes this year.
Performance of futures contract iron ore (Source of the graph: Tradingview)
Watch this week:
Thursday, August 20, 2020
The United States will publish applications for unemployment benefits for newly registered Americans. Analysts expect a positive decline from 963 thousand to 925 thousand inhabitants.
Friday, August 21, 2020
The eurozone publishes the PMI index for August. Analysts expect an increase in production, but a slight decline in the services sector. However, both indexes are to remain above the level of 50 points – the zone of contraction of the economy.
The United States will publish the development of sales of existing homes. Analysts expect an increase in July compared to June to 5.38 million.
Source of the text: Investing, Zerohedge, Financial Times, Reuters, Tradingview