Musk to crypto blow, AT&T and Discovery, recovery in China – what’s happening in the markets? By Investing.com


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Yazar: Geoffrey Smith

Investing.com – Elon Musk has hit cryptocurrencies and stocks by wreaking havoc on Bitcoin. AT&T and Discovery are on the verge of combining their media assets. The momentum for recovery in the Chinese economy is slowing, and the UK is taking the biggest step in economic normalization as a new Covid-19 species has just hit its shores.

Here’s what you need to know in financial markets on Monday, May 17th.

1. Musk stirred up the crypto world

Elon Musk hinted through Twitter that Tesla (NASDAQ 🙂 could sell all or part of its assets. In a subsequent tweet, Musk said that Bitcoin does not sell Bitcoin, but does not intend to do much to reclaim the spirit of most digital currencies.

Musk reiterated his newly felt dissatisfaction with Bitcoin’s environmental impacts, particularly coal, which played a key role in the mining industry. He also stated that DogeCoin is in a better position to mainstream Doge as a form of payment, saying it will “take power” if it adopts the approach to faster processing that Bitcoin’s closed community rejected nearly three years ago.

Bitcoin fell 7.3% to $ 45,389. However, other major cryptocurrencies also fell. DogeCoin lost 4.3%.

2. to dream of a new broadcast giant

According to various reports, AT&T is on the verge of merging the WarnerMedia unit with Discovery. With this merger, a new publishing giant worth 150 billion dollars will be created.

WarnerMedia, home to HBO, CNN and Warner Brothers movie studios, accounts for almost half of AT&T’s $ 230 billion. Discovery’s market value of $ 18 billion is largely due to its successful attempts to air unwritten cooking and home remodeling shows. If this had happened a few months ago, the deal would have made a nice return for Bill Hwang’s Archegos Capital, which placed a large and highly leveraged bet on Discovery.

Little details were given on the structure of the deal, but AT&T has the potential to create significant value for shareholders, whose returns have declined due to the enormous burden of their marriage to TimeWarner in 2016.

Another stock that might be of interest to create value is owned by JD (NASDAQ :). Com. The logistics division said it aims to raise its 10% stake in Hong Kong to $ 3.4 billion through going public.

3.Exchanges that are unstable due to sales in crypto will open low

US exchanges will open the week with a cautious sentiment in the face of crypto sales, which could be a harbinger of evil for other high beta assets such as tech stocks.

It dropped 100 points, fell 0.3% and experienced similar declines.

Apart from the crypto issue; The emergence of a new and higher contagious new strain of coronavirus in India has raised new doubts about the way the world economy is reopened. Singapore closed most schools while Taiwan closed its borders to foreign passengers. In the UK, London mayor Sadiq Khan reportedly said there were more than 400 new species-induced cases in London alone.

4. Recovery in China is normalizing, housing boom continues

As can be seen from the data shared in the Asian session, the process of China’s liberation from the epidemic is calming. The year-over-year industrial production growth reading met expectations, falling from 24.5% growth in April to 20%, while retail sales growth declined larger and fell from 34.2% to 17.7%.

These figures are a taste of what western data might look like, but the steadily high levels of processing in the country’s refineries show that the short-term dynamics have not lost great momentum.

China’s housing market continues to flood. Housing prices in the city saw the biggest increase in eight months in April.

5. Britain reopens as a new Covid-19 strain has just set foot on land

Britain took the biggest step towards economic normalization by significantly loosening the restrictions on business and social life. While the indoor hospitality sector reopens, albeit with limited capacity, it is now possible for many families to come together.

The ban on international travel, which is not a primary priority, was also lifted, but the fact that Britain is few countries on the ‘green destination list’ indicates a weak start to the tourist season. Ryanair was unable to provide an official guide for the new fiscal year after reporting its biggest annual loss ever in March.

The reopening process is taking place amid signs that the new Indian-type Covid-19 virus is spreading within the UK community.

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