The main events of the world financial market: 11 — may 17, 2020

The world economy, cryptocurrencies, precious metals and raw materials — the weekly report company news Xcritical.

Economy

Calculated according to national standards annual inflation in Italy in April was fixed at zero level after the March value of 0.1%. Consumer prices relative to March rose by 0.1%. These final data are published by the Italian Agency Istat. These data were in line with preliminary estimates. The Ministry reported that the main cause of the slowdown in consumer inflation in the country was the decline in energy prices. Inflation, not taking into account the cost of food, alcohol and energy, made last month 1%. The tempo is accelerated relative to the March figure of 0.8%.

A preliminary estimate of the statistical office Destatis pointed to the fastest since January-March 2009 GDP decline of Germany. The German economy fell by 2.2% on the previous quarter, when there was a decrease of 0.1%, which is a sign of entering into a recession. The economists also suggested a reduction of GDP by 2.2%. Compared to the same period of the previous year, the German economy fell by 2.3%, while economists had forecast a decline of 2% over the last twelve months.

The Bank of Mexico held a regular meeting of the Board of governors, which adopted the decision to reduce the level of interbank interest rates by 50 points to 5.5%. It coincided with expectations of analysts. In a statement, the Mexican Central Bank noted that the economy faced a serious challenge against the backdrop of negative consequences due to the spread of the coronavirus. Besides stopping economic activity and shock in the financial sector in Mexico increased the risks associated with the dynamics of inflation. In this situation all members of the Board of governors supported the proposal to reduce the rate.

According to a report published by the Department of economic and social Affairs of the United Nations in the next two years, the loss of the global economy can reach 8.5 trillion dollars. Thus, the entire growth for the last 4 years will be destroyed by the negative effects from the spread of the coronavirus. Such a sharp economic decline was not observed in the world with a 30-ies of the last century. Department experts anticipate a decline in gross domestic product in developing countries by the end of this year by 5%. With a favorable scenario for further developments in the next year these countries will be able only to compensate for the loss of 2020.

Cryptocurrency

The Visa applied for a patent on “digital Fiat currency», which will have the benefits of cryptocurrency, but to produce “centralized body”. In a patent application published by the Office of patents and trademarks United States emphasized that cryptocurrencies have a number of certain advantages over Fiat money and Visa want to combine the strengths of both payment methods. One of the main differences of the new digital Fiat currency Visa calls the issue of such currency exclusively "Central authority” that will “to maintain control over the monetary system”. That is, it can be a separately created authority and the Central Bank.

American cryptocurrency exchange Coinbase announced that most of its users who first bought bitcoins, then buy and other cryptocurrencies. As reported by analysts Coinbase, investors are buying bitcoin, and then invest in other crypto currencies, while interest in Aldona increased while “bullish”. Bitcoin remains the dominant asset, but trade volumes are growing Althingi during volatility in the market. For the first time, a trend analysts found during the growth of bitcoins in 2017, then he became even more pronounced.

The banking giant JPMorgan began to provide services to cryptocurrency exchanges. First Bank's customers have become American markets Coinbase and Gemini. According to the publication The Wall Street Journal, citing "sources familiar with the situation”, stock exchanges Coinbase and Gemini were the first customers of the Bank operating in the cryptocurrency industry. The company received approval for opening accounts at JPMorgan last month, and in may began processing operations and transactions.

the precious Metals and raw

From the beginning of year gold has risen in price for 10%, but in the second half of April to replace the bull trend would flat metal was trading near the mark of $1 700. However, the potential for further price growth still remains due to the high demand for safe-haven assets, contrary to the observed “rally” in the stock market. Even if the initiative of the U.S. Congress will save the American economy, the expectations for other developed and developing countries is still extremely pessimistic.

According to analysts at Scotiabank, the decline of interest in the jewelry and decrease in the activity of Central Banks will lead to a reduction in aggregate demand in 2020 to 39 million ounces. Growth in investment demand is estimated at 12.3 million ounces per annum. The Bank concludes that the decline in the need for physical gold is three times higher than the increase in investment interest. Thus, the fair gold price should be now around $ 1,350 per ounce. Despite this, the quotations increased from the beginning of the year by 11% and traded around $ 1,700 amid the global economic crisis. In Scotiabank conclude that the price can close the gap immediately after the first signs of recovery from the economic hole.

The Ministry of energy of Saudi Arabia charged the oil company Saudi Aramco to reduce production in June by an additional 1 million barrels per day. Thus, next month in Saudi Arabia will produce a little less than 7.5 million barrels a day. This is approximately 40% less than in April. The Ministry stressed that in this way trying to encourage the members of OPEC and other producing countries to fully implement their commitments and to provide additional reduction to stabilise the world oil market. Bloomberg said that if Saudi Arabia will meet its promises, that oil production in the country will fall to its lowest level since 2002.

other

The Japanese authorities intend to support the large and medium-sized companies, giving them additional capital to withstand the impact of the pandemic coronavirus. Reuters, citing the official, who asked to remain anonymous, reports that with this purpose the Japanese government is developing a scheme that will allow government to offer creditors subordinated loans or receive preference shares. These measures will help the Japanese companies to avoid reducing the credit ratings. It is planned that the scheme will be financed from the budget, which has been further approved for this fiscal year that started in April.

BMW CEO Oliver Zipse, speaking at a shareholders ' meeting in an online format, said it expects a very slow recovery of car markets in the US and Europe, as the pandemic coronavirus has caused this area significant damage, breaking of the supply chain and sharply weakening demand. He noted that the only market giving a hope for development, is China, where the recovery of production started earlier, and in April there is already a good level of sales of passenger cars class «luxury». In February, when China was at the height of the AIDS epidemic, sales of the carmaker fell by 88%. In April their volume grew by 14%.

Aviakontserna Boeing continues to experience serious problems. According to Dow Jones, the number of orders for aircraft fell to 4834 units. The indicator drop below the level of 5,000 units is observed in the company for the first time in 7 years. In April, Boeing has not received any new order. However, several major leasing companies took the decision to revoke the previously made orders for the troubled aircraft model 737 MAX. The main competitor Boeing the European Airbus aviakontserna things a little better. In April, he has received 9 new aircraft orders.

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Source: finversia.ru

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