Overview of TOP weekly news 25.5.2022

25 / 05 / 2022
Trading is risky and your entire investment may be at risk

Airbnb will shut domestic business in China

Airbnb Inc, a vacation rental provider, announced on Tuesday that it will cease all listings and experiences in mainland China as of 30th of July, joining a long line of Western internet platforms that have abandoned the Chinese market. The news was published on the company’s official WeChat account without any explanation for the decision. As written in the Global Times newspaper, Airbnb chose to close its domestic operation because it was too expensive and hard to run, which was compounded by the COVID-19 outbreak.

Stocks of Snap fell for 40%

Snap Inc shares fell more than 40% on Tuesday, sparking a sector-wide selloff, as the Snapchat parent issued a profit warning, signalling rough times ahead for the once-booming digital ad business.* The company’s market capitalization was expected to plummet by 15 billion USD, while shares of big online advertising and social media companies were expected to plummet by 200 billion USD. Snap announced on Monday that it expects to fail its quarterly sales and profit projections established just a month ago, and that it would have to reduce employment and expenditure.[1]

Movement of Snap’s stocks in five years period. (Source: Trading Economics) *

Stellantis and Samsung partnership

As the Chrysler-parent speeds up electric car manufacturing ambitions, Stellantis NV and Samsung announced on Tuesday that they will invest more than 2.5 billion USD in a new joint venture battery factory in Kokomo, Indiana. The project, which is set to open in 2025, will have an initial annual output capacity of 23 gigawatt hours (GWh), with a goal of increasing to 33 GWh in the coming years. The joint venture will create 1,400 new employments, with a potential investment of up to 3.1 billion USD. Indiana said that the project is eligible for at least 186.5 million USD in incentives.

Nike did not renew contracts in Russia

Nike has not renewed agreements with its largest franchisee in Russia, marking the latest major U.S. brand leave since Russian military entered Ukraine. In reaction to Moscow’s activities in Ukraine, Nike said on 3rd of March that all of its Nike-owned and operated stores in Russia would be temporarily closed, with those that remain open being run by independent partners. Up And Run has 37 locations across Russia, from St. Petersburg to Novosibirsk, with 28 of them still active according to its website. The contracts are expected to expire on 26th of May.

Apple delayed the iPhone development schedule

After China’s tight COVID-19 lockdowns delayed the timetable for at least one of the new phones, Apple Inc has urged its suppliers to speed up iPhone development. Last month, iPhone manufacturer Pegatron Corp halted operations at its Shanghai and Kunshan factories thanks to China’s zero-COVID policy. Shanghai’s financial core remains virtually paralyzed by a city-wide lockdown in its seventh week, although Beijing has increased quarantine measures. Last month, Apple predicted worsening challenges as China’s COVID-19 lockdowns stymied manufacturing and demand.

What to watch this week:

  • On Thursday there are bank holidays in France and Germany
  • On Friday, we can expect core PCE price index from USA

*Past performance is no guarantee for future results.

[1] 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.

Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.