Yazar: Geoffrey Smith
Investing.com – Increasing Covid-19 cases in Europe, India and South America have raised fears that the global economic recovery will be delayed, although AstraZeneca shared the results of its optimistic vaccine trials in North and South America. President Erdogan interest rates after the central bank to end the task manager for the increase was very upset Turkey and the Turkish lira exchange; Gamestop reports its earnings; A major rail merger is on the agenda and Saudi Aramco is borrowing heavily to protect the $ 75 billion in dividends.
Here’s what you need to know in financial markets on Monday, March 22nd.
1. US trial results clear AstraZeneca as European vaccine contention deepens
AstraZeneca (LON 🙂 removed a major obstacle to the licensing of the vaccine in the US as the UK and the EU approached each other to block vaccine exports.
The UK-Sweden company said in an experiment conducted on 32,000 volunteers in the USA, the vaccine was 79% effective in preventing Covid-19 symptoms and 100% effective in death and hospital treatments. The test results also did not reveal a problem with blood clotting disease. With this concern, many EU countries stopped distributing vaccines earlier this month.
On the day of these news, Germany is preparing to join France to tighten quarantine measures and extend until mid-April in response to the increase in new infections in the past two weeks.
Outside of Europe, India shared the highest daily deaths in two months, while new infections in Brazil and Chile set an all-time record. Bumps have also been seen in the US reopening process, with fights between large crowds of Spring Break tourists that led to the declaration of a state of emergency in Miami Beach.
2.The third time luck turned for CPR
Canadian Pacific (NYSE 🙂 finally succeeded in getting the US rail operator to merge, creating the first rail operator to link the three major markets in North America.
CPR and Kansas City Southern (KCS) (NYSE 🙂 said they had reached an agreement valuing KCS’s debt and equity of $ 25 billion. The merger still needs antitrust clearance. KCS rejected the $ 20 billion bid made by Blackstone (NYSE 🙂 and Global Infrastructure Partners in September.
Blackstone dealt with another purchase over the weekend; In order to acquire Crown Resorts (ASX :), a troubled Australian casino operator offered Crown shareholders a $ 6.2 billion deal to exit a company besieged by money laundering claims
Semiconductor stocks may be of interest. A fire at a factory of Renesas Electronics (T 🙂 in Japan threatened to increase the current chip shortage around the world.
3. Stock markets will mostly open low; eyes on GameStop wins
The bad news on the Covid-19 front gave tech stocks an additional leg for recovery and for cyclicals to regress. Markets around the world are repricing their bets upon re-opening. US Treasury yields fell to 1.68% se.
As a result, it fell by 85 points in pre-market trade and fell 0.1%. increased by 0.5%.
Among the stocks that may be in the spotlight is GameStop (NYSE :), which will report quarterly. It will be the first update since the legendary short position squeeze at the beginning of the year.
Analysts expect $ 88 million in revenue versus $ 2.2 billion in revenue. Other stocks of interest will be Tesla (NASDAQ :), for which Cathie Wood set a new target price of $ 3,000 by 2025. February will be announced and Fed’s Randy Quarles, Mary Daly and Michelle Bowman will speak.
4. Mobility in Turkey
Turkey’s financial markets, Prime Minister Recep Tayyip Erdogan last week the central bank chief Naci Ağbal the impeachment of then entered into recession mode. Ağbal had raised interest rates just two days ago.
Erdogan’s intervention revealed fears of a return to previous economic policy that tolerated massive currency devaluation and high inflation. Erdogan brought in Naci Ağbal last year, in a process that seemed to be a definitive return to more traditional economic policies.
The dollar gained more than 10% against early trade, but kept its height ‘only’ at 9.8% after government officials denied claims that the country would implement capital controls to support the currency.
stock index fell 9.2% Turkey’s government debt has reached its highest level since 2019, rising over 16%.
5. Aramco keeps its dividends, it comes with a price
Saudi Aramco (SE :), the world’s largest oil company, said it will keep its dividend payment for 2020 at $ 75 billion. However, due to the epidemic, there was a big drop in his profits.
The decision says less about the outlook for the global oil industry than the Saudi budget based on dividend payments for most of Aramco’s resources. Free cash flow has dropped to $ 49 billion, which means the company will borrow to cover the deficit.
Crude oil prices fluctuated on Monday, with doubts about summer tourism in the northern hemisphere. futures remained steady at $ 61.45, up 0.1% to $ 64.59.