Overview of Top weekly news 16.2.2022

16 / 02 / 2022
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Tensions between Russia and Ukraine

USA firmly believes that Russia can attack Ukraine any time now. If that will be the case, Europe and US already said they will put sanctions over Russia – the biggest one for now seems closing or limitation of North Stream 2 pipeline. Markets are already reacting to situation on the East of Europe, however if things escalade, we can expect following things. JP Morgan made analysis, that in event of war, price of oil could reach 120 dollars per barrel. If natural gas export will be stopped or limited, Europe will have to find new ways to import it – typical supply and demand situation. Other metals such as aluminium, titanium, etc. are expected to be on the rise also, as Russia is exporting them as well. [1]

Earning reports in USA

Earnings releases season of American companies is slowly finishing, as we can see that every day there will be less companies reporting them. So far, around 75% companies reported better earnings than expected, including all the firms in FAANG. (Facebook, Apple, Amazon, Netflix and Google). Facebook, however, had a correction, as it reported fewer active users as expected. As for upcoming results of known companies, in February there will be releases:

15.2. – Airbnb, Roblox, Devon

16.2. – Nvidia, Cisco, Shopify

17.2. – Walmart, Barclays PLC, Orange, Palantir

23.2. – Booking

24.2. – Alibaba, Moderna, Dell

UK inflation rate hits new 30-year high

January’s inflation at 5,5% is the highest it has been in the country for past 30 years. Bank of England has imposed consecutive interest rate hikes for the first time since 2004 to battle inflation. They have also raised expectation for peak percentage, which is now expected to be at 7,25% in April, previously projected at 6%. The largest effect was seen on energy, fuel and food, also second-hand cars. The only question remaining now is, if interest rates will be higher for 25 or 50 basis points. [2]

Virgin Galactic stock jumped 32%

Virgin Galactic, company that will perform commercial space flights, has opened ticket sales. As it was revealed last year, ticket prices start at 450.000 USD and there are 3 different offerings. In the past decade however, they have already had reservations for 600 seats, which costed between 200.000 and 250.000 USD each. Now, prices are regular as well the needed deposit of 150.000 USD. As this are amazing news for the company, stock shot up for 32%. This is after a year of constant falling (almost 80%) as company delayed the beginning of commercial spaceflights. *

*Performance of Virgin Galactic Holdings Inc. (Source: www.investing.com)

[1,2] 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 of 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.

* Past performance is no guarantee of future results.

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