Overview of TOP weekly news 30.12.2020

30 / 12 / 2020
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What to expect from the Brexit?

An agreement between the EU and Britain was reached at the last minute on Christmas Day, and Britain will definitively end its alliance with the European Union from 2021. By the end of the year, it is still in the so-called transitional period, when it must comply with EU rules, the form of which, however, is no longer affected. According to the AP, British companies are currently studying the new agreement on 1240 pages of the main text and another 800 pages of annexes.

From January 1, 2021, according to Gove, there will be “practical and procedural changes” that both entrepreneurs and travellers should prepare for. “The time for these final preparations is very short,” the minister warned.

The agreement reached guarantees that trade between Britain and the EU will not be burdened by trade tariffs. Gove also said that entrepreneurs have to prepare for problems in trade after 31 December, as both British and Union companies expect much more bureaucracy in their mutual trade.

Covid-19 helped Amazon

As a result of the spread of the Covid-19 pandemic, Amazon’s profit increased by $100 billion in shopping in the first quarter. Another segment of the company that has seen a significant increase is advertising. Today, more and more marketers are selling in the huge Amazon market, who want to excel, investing large sums in advertising. The advertising division is growing faster than the retail, cloud computing and Prime subscription divisions.

According to FactSet, Amazon’s revenue from a segment other than the shopping segment in 2020 represents revenue of $21 billion, an increase of 47 per cent over the previous year. Its rapid growth also helps Amazon to differentiate from Google’s dominant online advertising player.

“We still expect solid, if not strong, growth by traditional Google standards in years 2020 and 2021 – but for Amazon, it is starting to be core growth,” said Andrew Lipsman, chief analyst at eMarketer.

Russia is reducing state support

The Russian government has announced a reduction in state support for the economy in 2021. On the other hand, rising costs of servicing rising government debt are expected due to the response to the COVID-19 pandemic and the slump in oil prices, according to Finance Minister Anton Siluanov.

Siluanov also said that additional Russian state expenditures to support the economy reached 4.5% of GDP this year and will be reduced to 1% of GDP in 2021. However, the State Development Bank VEB can still purchase preference shares of Russian railways to provide them with funds for its investment program.

In 2020, Russia more than doubled its domestic loans, increased some taxes, and increased government spending. To gain support for the economy, Russia had to relax its budgetary rule, which protects the economy from external shocks.

Novavax is close to vaccine approval

Novavax is launching the latest Covid-19 vaccine tests in the United States and Mexico. Vaccine development has been supported by up to $1.6 billion by the Trump government’s Warp Speed ​​program. The Maryland-based biotechnology company will launch an experiment at 115 places on Monday to attract up to 30,000 participants. Two-thirds will receive the vaccine, the remaining third will receive the placebo.

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

Ryanair restricts shareholders’ voting rights

From 1 January, Ryanair will limit the voting rights of British shareholders to secure. The reason is that it remains the majority owner of the EU and retains full licensing and flight rights in the bloc. The company approved the restriction of British shareholders last year, subject to the terms of the final agreement on Britain’s relations after Brexit with the European Union.

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

Watch this week:

Thursday, December 31, 2020

The US will publish initial unemployment claims. Analysts expect a slight increase in applications to 833 thousand in December.

China will publish the manufacturing PMI index. A slight decrease of 0.1 points to 52.1 points is expected in December.

Friday, January 1, 2021

The markets will be closed due to the New Year’s holiday.

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

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