Recap May 16: Crisis 2020: Stocks fall on 2nd wave fears (Recap Ep071)

05/17/20 • 12 min

In this week, the main topic was the fears about the 2nd wave of coronavirus infections, which gripped financial markets, especially after a sobering warning from the World Health Organization that the coronavirus may never go away. Investors facing steep losses, due to the pandemic-driven shakeout in assets over the past few months, besides, they need to contend with renewed U.S.- China trade tensions. A rapid economic recovery seems ever more elusive with rising domestic unemployment.

Bitcoin -0.9% to $9619.00 in the U.S. pre-market, lower to $9,475.52 in the late morning on Friday, 05/15/2020, for a daily gain of 1.51%, but a weekly loss of 4.34%, despite the halving taking place earlier in the week, which is supposed to reduce the future supply of coins.

Dramatic shifts in U.S. consumer behavior is reflecting the unprecedented turmoil in the economy, caused by the pandemic. Americans are now slashing their spending, hoarding cash & shrinking their credit card balance, as they fear their jobs may well disappear during the present coronavirus pandemic.

France has summoned Venezuela’s envoy over accusations President Maduro’s government has been harassing its embassy in Caracas, including by cutting water & electricity to the ambassador’s residence. France is among many nations that no longer recognize Maduro’s disputed 2018 re-election & consider opposition leader Juan Guaido, to be Venezuela’s rightful president.

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Recap May 9: Warren Buffett loses $50 billion – Record unemployment (Recap Ep070)

In this week’s recap, one of the most important news was the loss of more than $50 billion by Berkshire-Hathaway in the 1st quarter, its worst quarter in a decade, with its CEO Warren Buffett admitting the $6.5B recently divested investment in the airlines, was a mistake. However, the firm still retains $137B of cash on hand, with a market capitalization of some $444B.

World shares rose on Thursday after China’s exports came in far stronger than expected, suggesting an economic recovery there was already underway thus supporting global growth in the process, but the dollar fell from 2-week highs as millions more Americans became jobless.

U.S. Treasury will borrow a record $3 trillion in Q2 to subsidize economic rescue efforts due to the corona-virus. That’s in addition to Q1 borrowing of $477 billion & an anticipated $677 billion for Q3. All the massive deficit spending (national debt is near $25 trillion) has some analysts worried about a potential debt crisis.

A key U.S. April jobs report to show a historic surge in unemployment later today, due to coronavirus pandemic induced, the government ordered lock-downs. Data are likely to indicate a loss of a staggering 22M last month, in what will be the steepest plunge in payrolls, since the Great Depression of the 1930s.

International Energy Agency bets on green hydrogen; China and US resume talks on phase 1 of their trade deal; Uber’s shares go up; Norway’s central bank cuts interest rates again; Lord & Taylor is preparing to liquidate its inventory; 2 U.S. citizens have been detained in Venezuela; The U.K. reports the highest official death rate from coronavirus in Europe.

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Recap May 24: Contagion in Amazon – Earth’s magnetic field failing (Recap Ep072)

In this week’s recap, we found that the US stock markets were full of ups and downs, as at the beginning of the week the markets rose driven by a promising test of the coronavirus vaccine, but fell again midweek due to some reports skeptical of this vaccine, which added to the new wave of coronavirus outbreaks.

Oil has a 4th weekly gain in price totaling 13%, despite a 2% dip on Friday. Investors are weighing improving supply fundamentals versus doubts surrounding China’s true economic recovery, as the country abandons this year’s growth target. Major energy producers continue to scale back production. U.S. explorers put down another 21 oil rigs, bringing the total to the lowest level since 2009.

Crispin Odey, one of Europe’s highest-profile hedge fund managers, says that governments may well ban private gold ownership, if they lose control of inflation, as a result of the coronavirus crisis. He believes they will do this, if they feel the need to create a stable unit of account for world trade.

More Americans filing for unemployment benefits; New national security legislation on Hong Kong; Taiwan Semiconductor Stops Huawei Orders; an ultra-rare species of bee was spotted in Florida; Brazil becomes the 4th largest coronavirus outbreak in the world; Japan is officially in a recession.

The post Recap May 24: Contagion in Amazon – Earth’s magnetic field failing (Recap Ep072) appeared first on Investing & Day Trading Education: Day Trading Academy.