Overview of TOP weekly news 16.3.2022

16 / 03 / 2022
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Tesla stops work at Shanghai factory

American electric vehicle giant, Tesla, stopped the production in Shanghai factory due to rising covid cases. China tightened the COVID restrictions, because they are facing the biggest spike in cases since the start of pandemic. Tesla in that matter decided, to stop the factory for at least two days. It is expected to have negative effect on the company, as the Shanghai factory is responsible for delivering cars to Chinese markets, as well as Germany and Japan. In February alone, it has delivered more than 56 thousand vehicles, including 33 thousand for export.

EU posted new sanctions to Russia

On Tuesday, European Union presented new package of sanctions on Russia. It included bans on Russian energy sector investments, luxury goods exports to Moscow and imports of steel products from Russia. The new actions taken also presented with freezing assets of many oligarchs, including Chelsea football club owner Roman Abramovich. More Russian and Belorussian banks were excluded from list and more assets of Russian central bank were frozen. Ban of steel export is expected to cause a damage of around 3,3 billion euros.

Pfizer-BioNTech seeks for approval

American Pfizer and its German partner BioNTech announced, that they are looking for approval by FDA for second booster shot for people aged 65 or older. The submission that they presented includes some data report from Israel, where a second booster shot is authorized for many people over the age of 18.  An analysis and data showed that second booster shot significantly decreased the number of confirmed infections and severe illness. Pfizer’s CEO has warned many times in the past, that fourth dose of vaccine will be needed to offset disappearing protection, which was gained with the third shot.

Mercedes will continue EV investments

Despite Ukraine war disruptions, German car manufacturer Mercedes announced, that they will not lower the spending on future electric vehicles, even though they are fighting with supply-chain cost pressures caused by the conflict. During the company’s opening of its first U.S. electric vehicle battery factory, Ola Kaellenius said that the company’s financial outlook for 2022 remains the same. She added that they always protect the investment into the future technology and future products. Her statement was backed up by the fact, that even during COVID, they did not see any setbacks.

Euro zone has positive outlook

European Central Bank president Lagarde said, that despite covid and war between Russia and Ukraine, Euro zone is headed for big and strong growth in this year. She added that even the continuation of rising commodity prices would not affect the growth. While the other growth scenarios are also possible, inflation is still expected to decrease progressively and settle at around the ECB’s 2% target in 2024, which was always known or taken as a healthy inflation. Many countries are trying – even before COVID, to maintain increasing inflation at around 2%.

Euro zone inflation in last 5 years. (Source: Trading Economics)

What to watch this week:

On Thursday, there will be important data from UK, regarding monetary policy summary and official bank rate as well as in EU ECB president Lagarde speech.

On Friday, we can follow European trade balance and Bank of Japan press conference.

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