Jul 29 2020 0
Goldman Sachs, Credit Suisse, the Coronavirus. Today we see all the big players showing up. Let's check out the current world's situation so that we can plan our trading strategies for the near future.
Goldman Sachs warning on the Dollar
Goldman Sachs has noted the growing concern about inflation in the US by giving a bold warning that the dollar is in danger of losing its position as a world reserve currency. With Congress ending the meeting with another fiscal stimulus to bolster the devastated economy, the Federal Reserve increased its balance sheet to about 2.8 thousand. billion dollars this year, Goldman Sachs strategists warned that US policy is causing "currency devaluation concerns" that could end the dollar's dominance as a currency. Leading money on the global forex market.
Although this is a minority view among most financial circles - and Goldman analysts do not say they believe it will happen - through this we can capture that stressful emotions have entered the market this month: Investors are worried that this massive money printing will trigger inflation in the coming years.
Reform from Credit Suisse
Credit Suisse is about to announce a comprehensive overhaul of its business as Chief Executive Thomas Gottstein seeks to tighten control and increase investment bank performance. The Swiss lending bank plans to merge its investment bank and capital market unit - which has suffered losses in recent quarters - into a global market trading unit that is slowly reviving. The bank also hopes to combine risk and compliance units, but has not specified them because of privacy issues. These changes are part of an overhaul that Gottstein is calculating to increase profits at the securities unit while tightening risk monitoring after the lender is involved in a series of agreements involving infamous companies. These are also the first signs of the Swiss executives putting their mark on the lending bank as they seek to overcome a significant spying incident. The bank may announce changes as soon as Thursday, when it reports second quarter results.
High time of trading
Asian stocks are ready to follow US stocks to go down before the Federal Reserve policy meeting. Treasury bonds gained. The futures markets in Japan, Hong Kong and Australia all fell. The S&P 500 had previously slipped because the results were worse than the estimates for McDonald, 3M and Harley-Davidson had caused their stock to plummet. Pfizer shares rose after the drugmaker raised its earnings forecast and started a post-trial trial of the coronavirus vaccine with its German counterpart. Some of the world's largest companies are releasing earnings reports this week and investors are looking for clues as to whether the global revival of Covid-19 will ruin the revival in favor. profits of businesses and the economy or not. The Federal Reserve has extended most emergency loan programs for an additional three months, until the end of 2020. A decline in US consumer confidence has added evidence that the pace of recovery is cooling off when the virus interrupts reopening in some states.
About the outbreak
In two states struggling with the U.S., California and Arizona, the rate of infection has slowed, but the state of Florida has reported record deaths. The American Federation of Teachers has authorized its members to go on strike if schools reopen without appropriate safety measures. He is considering ways to narrow the restrictive rules imposed on the country that relies on tourism - Spain - after encountering a backlash from Madrid.
Beijing has confirmed a new case after weeks without any cases, while Hong Kong is considering delaying legislative elections. Malaysia and Tokyo also saw an increase in infections. Vietnam is fighting a sudden outbreak. Speaking of vaccines, Moderna's anti-Covid-19 candidate showed resistance to viruses in an experiment on 16 monkeys, an encouraging step on the road to protecting people against pandemics. Pfizer is preparing for the viability of the new strain of coronavirus, leading to the long-term need for a seasonal injection for protection against Covid-19.