August 2020 - Page 34 of 46 - Financial Occultist

Will the economic recovery eventually live up to the hype?

ZEW

One of the above charts is not a “V”. And therein lies a potential longer-term problem that market participants will have to consider down the road.

As we move on from Q2 to Q3, the expectation is that ‘the worst is behind us’ when it comes to the pandemic and the economic fallout from the virus crisis.

While that will certainly be true, what it doesn’t say is that the economic recovery and the path towards “normalisation” may perhaps take much longer than anticipated.

Russia president Putin says have approved first Russian-produced coronavirus vaccine

11-Aug-20 03:15 pm

Analysis

Anirudh Sethi

Putin says that his daughter has been vaccinated from the coronavirus

Says that Russian health ministry has approved coronavirus vaccine developed by Moscow’s Gamaleya Institute
Says hopes Russia will start mass production of coronavirus vaccine

Take what you will and believe what you want from the headlines above, but this may lay the groundwork for other countries to start prepping their own “breakthroughs” sooner rather than later. As with everything related to the pandemic thus far, all it takes is for one country to set a precedent and the others will take that as an opportunity to follow.

Hong Kong goods to be labelled ‘Made in China’ for export to the US after 25 September – report

11-Aug-20 11:29 am

Analysis

Anirudh Sethi

SCMP reports on the matter

The report cites a draft US government notice, as to saying that goods made in Hong Kong for export to the US will have to be labelled as ‘Made in China’ after 25 September.

Adding that the move will see Hong Kong companies be subject to the same trade tariffs levied on mainland Chinese exporters.

Despite the move, this isn’t likely to have a significant impact considering Hong Kong has always been a “transit” hub as it serves as a logistical gateway to mainland China for goods coming in and out of the country.

So, this will likely expand the existing $550 billion of US tariffs on Chinese goods but not by a whole lot. That said, the move here is more symbolic more than anything else.

For the US, it is all about sending a message to China that they are dissatisfied with how the whole Hong Kong saga has panned out over the past few months.

EU’s top credit rating can survive €750bn stimulus, say ratings agencies

11-Aug-20 09:30 am

Analysis

Anirudh Sethi

Moody’s and Fitch both say triple AAA status not under threat

Financial Times with the article, the gist of which is:

EU’s plan to issue €750bn of bonds to fund its Covid-19 recovery poses no immediate threat to the bloc’s credit rating despite big divisions between member states on how to pay the money back.

“Pay the money back”. How quaint.

Link to the FT for more (may be gated)

Trump evacuated from White House press briefing room by US Secret Service

11-Aug-20 05:28 am

Analysis

Anirudh Sethi

Trump was taken out of the room shortly after the press conference began.

A person interrupted the President to inform him of something
The President was then escorted from the briefing
Briefing room has been locked down

Updated – reports of shots fired outside the White House

Trump was taken out of the room shortly after the press conference began.

Explosion reported on Iraqi-Kuwait border, targeted at US military base

11-Aug-20 05:24 am

Analysis

Anirudh Sethi

Iraqi security sources reported via Reuters

Explosion reported on the Iraqi-Kuwait border, near a crossing point
the explosion was caused by Shi’ite militia targeting a US military ~~base~~ military convoy

iraq kuwait

Dow closes at the highest level since February 24, and just 2.6% from unchanged on the year

11-Aug-20 05:20 am

Anirudh Sethi

Dow and S&P are up for the 7 days in a row

The Dow industrial average led the way for stocks to the upside with a 1.3% gain.

The Dow index close at the highest level since February 24th and is just 2.6% from unchanged on the year.
Both the Dow and S&P have closed higher for 7 consecutive days.
The S&P index is the longest winning streak since April 2019.
The Dow’s winning streak is the longest since September 2019.
The S&P is less than 1% away from an all-time high close
The NASDAQ index closed lower on the day and is on a 2 day losing streak.

The final numbers are showing:

S&P index up 9.21 points or 0.27% at 3360.49. The high price reached 3363.29. The low price extended to 3335.44
NASDAQ index fell 42.67 points or -0.39% to 10968.35. The high was up at 11,040.25 while the low extended to 10,849.46
the Dow industrial average rose 357.96 points or 1.3% to 27791.44. The high price reached 27803.86. The low price extended to 27488.21.

The biggest winners in the Dow included: