Overview of TOP weekly news 16.12.2020

16 / 12 / 2020
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Will the EU divide technology monopolies?

The EU has threatened to divide large technology companies if they repeatedly act anti-competitive. The EU’s goal is to combat unfair competition in the sector, and the Digital Services Act will force technology companies to take more responsibility for illegal behaviour on their platforms. After the EU publishes the bill, the European Parliament and the Council of Ministers will vote.

If the investigation of the giants shows systematic and uneconomical behaviour that further strengthens society’s position, the EU can take any remedy and ensure compliance. If the law is passed, it will be the first major reform in twenty years aimed at technology companies.

The most interesting point of the law is fine, which, if imposed three times in five years, will allow the EU to proceed to the structural separation of their business.

Citigroup has appointed a new global leader

Derek Hafer will be the new head of global distribution portfolio trading. Portfolio trading involves combining several bonds into one trading package. In addition to the position, Hafer will assume the position of the global leader in electronic client connectivity and macro business in North America. The main reason is the popularity gained by portfolio trading during the coronavirus market volatility.

Hafer has been with Citigroup since 2005. He started as a trader and subsequently headed US investment-grade credit trading since 2014.

“Over the past 18 months, portfolio trading has grown rapidly in credit flow markets and has become one of the major changes leading to our industry. We expect this trend to continue, “Citigroup told Reuters.

Will a new largest insurance broker be created?

The company, which is the second-largest insurance intermediary in the world, has submitted an offer to acquire a third intermediary. Aon’s bid gave Willis Towers a $30 billion bid to create the world’s largest insurance broker. The acquisition would surpass the leader of Marsh & McLennan Companies Inc.

Analysts said it was likely to provoke deep regulatory control. The European Commission also plans to review the acquisition following a preliminary review on 21 December.

Aon has no plans to give up the agreement and accuses the EU of distorting competition. The two companies have already combined insurance contracts for clients, in which several insurance providers are involved, for everything from airlines to major sporting events.

Gas pays for the weather

“Natural gas futures are higher mainly due to favourable weather conditions, which indicate a shift to lower temperatures at the end of December,” said Robert DiDona of Energy Ventures Analysis.

Earlier this month, the drop in natural gas futures was caused by weather patterns, which suggested that “December could end among the warmest in history.”

Performance of NatGas futures (Source of the graph: Tradingview)

The test flight failed

A test flight of a Virgin Galactic supersonic rocket plane fired into the upper atmosphere during the test flight, but after ascending to 40,000 feet, the spacecraft made an unexpected turn home rather than firing at the sky. The positive of this failed flight is that the aircraft landed safely, and the crew was not injured.


Performance of Virgin Galactic’s shares (Source of the graph: Tradingview)

Watch this week:

Thursday, December 17, 2020

The US will publish an increase in new applications for unemployment benefits. 800,000 new applications are expected.

The Bank of England will publish the decision on the main interest rate. Unchanged 10 basis points are expected.

Friday, December 18, 2020

Germany will publish the German Ifo corporate climate index for December. A slight decrease of 0.7 points to 90 points is expected.

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

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