Good morning and welcome to our continued coverage of the global economy, financial markets, the eurozone and business.
Stock markets have rallied this week and European markets are poised to open higher again amid optimism about the US stimulus package, the launch of covid-19 vaccines, the company’s positive results and Oil prices close to a one-year high. In Asia, the Nikkei closed 1% higher while the Australian market rose 0.9%.
Yesterday, Democrats in the United States Congress took the first steps to advance the $ 1.9 trillion coronavirus aid plan proposed by President Joe Biden without the support of Republicans.
Last night Amazon announced in a surprise move that its chief executive, Jeff Bezos, will resign. He founded the company in 1994 and made it one of the largest in the world, accumulating a fortune of $ 185 billion. Bezos, who will remain CEO, will hand over the reins to Andy Jassy, who runs Amazon Web Services, the fast-growing cloud computing business. The news came as Amazon revealed fourth-quarter results … it has thrived through the pandemic and made sales of more than $ 100 billion for the first time between October and December.
Google parent company Alphabet had a better-than-expected fourth quarter, bolstered by a rebound in ad spend over the holiday season.
Also in the US, regulators will meet to discuss whether stricter rules are needed after the business mania involving GameStop and other actions. The head of the U.S. Securities and Exchange Commission will meet with Treasury Secretary Janet Yellen and the heads of the Federal Reserve and the Commodity Futures Trading Commission as soon as tomorrow, an official told Reuters. of the Treasury.
Share on GameStop It fell 60% to $ 90 on Wall Street yesterday as the trading frenzy sparked by small investors, which sent stocks soaring and cost hedge funds billions of dollars, petered out. The Texas-based video game store chain has been the focal point of a battle of small merchants, using online forums such as Reddit, which have been buying GameStop, AMC Entertainment, and other stocks to take on Wall Street hedge funds. who have bet. these stocks fall in value.
Silver It has also been caught up in the trading frenzy sparked by Reddit chat room posts and surged more than 10% to $ 30.03 an ounce for the first time in eight years on Monday, but was also pulled yesterday. It fell more than 8% below $ 27 an ounce. This morning, it was up nearly 1% to $ 26.86.
Questions have been raised about the trading restrictions imposed by the Robinhood trading app on stocks like GameStop last week. Last night it emerged that US Senator Elizabeth Warren wrote to Vladimir Tenev, Robinhood’s chief executive, to ask about the company’s relationship with large hedge funds and other financial institutions. The letter is Here.
American billionaire businessman and investor Mark Cuban yesterday joined a “Ask Me Anything” session hosted by Reddit’s WallStreetBets. “True to form, he didn’t hold back,” Bloomberg reported.
The billionaire has been among a group of prominent financial heavyweights, including Chamath Palihapitiya and Cameron and Tyler Winlevoss, to side with retail traders in what they see as a battle between Main Street and Wall Street.
During the talk, Cuban encouraged the forum to maintain its GameStop Corp. stocks if they could afford it, and predicted that institutional funds would step in again for a second round of shorts from the video game retailer. The serial entrepreneur and reality TV star said GameStop headlines should learn a lesson from Bitcoin investors who held onto the cryptocurrency when its price plummeted in 2017.
“I have no doubt that there are funds and big players who have re-shorted these stocks thinking they are smarter than everyone at WSB,” said Cuban, who does not own the shares. “I know you will hate to hear this, but the lower it goes, the more powerful the WSB will be to buy back the stock.”
CNBC sees this as a good opportunity to teach your kids to invest.
Later today: a series of business surveys for service sectors in major European countries, UK and US, as well as inflation data for the eurozone.
- 8:15 am GMT: Spain IHS Markit Services PMI for January
- 8:45 am GMT: January Composite PMI and Italy Services
- 8:50 am GMT: France end of services and January composite PMI
- 8:55 am GMT: Germany Composite and Services PMI January End
- 9:00 am GMT: Eurozone services and January composite PMI end
- 9:30 am GMT: UK Services and Final January Composite PMI
- 10:00 am GMT: Eurozone inflation for January
- 1:15 pm GMT: US ADP Job Change For January
- 3:00 pm GMT: January ISM Non-Manufacturing Survey
George is Digismak’s reported cum editor with 13 years of experience in Journalism