Overview of TOP weekly news 28.10.2020

28 / 10 / 2020
Trading is risky and your entire investment may be at risk

Impact of the US election on markets

The US economy is the largest in the world and has long set the direction for the world. On this basis, it can be concluded that the results of the US presidential election will not only affect the economic situation in the United States but will also significantly affect the financial markets and economic prospects in Europe.

Berenberg’s chief economist, Holger Schmieding, said the current political situation in the US was a “serious risk” to the European economy. The outcome of the next week’s election could lead to “serious uncertainty and widespread street protests” in the United States.

Many economists have changed that Donald Trump could start a trade war with Europe if re-elected. The impact of the disruption of relations would have an impact not only on the European Union but also on America. According to Schmieding, the problems for Europe might not only be completed by the victory of Donald Trump but also of the Democratic candidate Joe Biden.

TikTok agrees with Shopify

Canadian Shopify has agreed with TikTok to continue shopping while browsing short videos on TikTok. With this move, Shopify has added TikTok to its partner portfolio, which includes other social sites including Facebook, Instagram, and Pinterest, as well as Amazon, Google and Walmart’s marketplace. Shopify retailers who already use TikTok include The Knot Pillow, Brooklyn Tea and Adwoa Beauty.

The Chinese app will align with social media rivals such as Facebook, as some US brands on Instagram may offer direct payments combined with photo sharing from last year.

Satish Kanwar, who heads Shopify’s Channels, said TikTok quickly became popular with retailers with a large “influential” audience.

Incredible IPO Ant Group

Jack Ma, the founder of Alibaba, listed the world’s largest IPO, Ant, by selling new shares on the Hong Kong and Shanghai stock exchanges worth $34 billion. Ant grew out of the payment system that powered Alibaba’s online marketplace

It is now emerging that the world’s financial and economic centre is moving east. The world economy is beginning to focus on technology from old sources of commodity-based wealth. Ant Group has hit the largest IPO in history, the IPO of the Saudi national oil company Saudi Aramco.

Performance of the Alibaba’s shares (Source of the graph: Investing)

Acquisition of AMD

Advanced Micro Devices will buy chipmaker Xilinx for $35 billion. The agreement, due by the end of 2021, would create a combined company with 13,000 engineers and annual R&D spending worth more than $2.7 billion. On the other hand, the acquisition is expected to save for $300 million in 18 months.

AMD estimates that analysts will intensify the fight with Intel for a larger share of the market to produce chips used in data centres.

Performance of the AMD’s shares (Source of the graph: Investing)

BP was positively surprised by the results

The British oil company BP, after losing $6.7 billion, reported a profit of $86 million in the third quarter. Analysts expected the oil company to lose $120 million.

On the other hand, the margin in the refining segment is very low, due to the price of oil, which recovered only slowly. Demand for fuels, especially aviation, is weak due to the pandemic. The company warned that the recovery from the effects of the Covid-19 pandemic remains uncertain, which is negatively affecting oil demand and refining profits.

Performance of the BP’s shares (Source of the graph: Investing)

Watch this week:

Thursday, October 29, 2020

The Bank of Japan will decide on the main interest rate. An unchanged rate of the current -0.1% is expected.

Friday, October 30, 2020

The United States will publish GDP growth for the third quarter. GDP growth is expected to be 31% in the third quarter on the quarterly base.

The European Central Bank shall decide on the deposit rate. Analysts expect the interest rate to remain unchanged at -0.5%.

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

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.