ECB offers ultra-cheap loans to banks
European economists have not yet estimated the damage from the pandemic. However, it is obvious that the EU governments do not have enough money to cope with the economic consequences caused by the coronavirus. They will have to resort to large financial infusions as analysts expect the deepest economic slump since the Second World War.
In such moments, developed countries usually start printing money. Thus, the EU authorities are planning to pump new money into the economy. Banks have rushed to borrow a record €1.3 trillion from the European Central Bank at negative interest rates.
“The ECB is happy to provide the liquidity to the banks which pass it on to businesses and households,” said Florian Hense, an economist at Berenberg. It is the first time that a major central bank has offered multi-year loans to banks at an interest rate below its main deposit rate.
The EU hopes that this policy will help to soften the economic blow from the outbreak. The European Commission has already prepared for a slump of 7.4% at the end of the year. The ECB’s forecasts are even gloomier. According to the worst-case scenario, the EU economy may shrink by 12%. Thus, economists have nothing to do but to wait and see whether the large-scale stimulus package is able to support the economy.
Tesla shares surge ahead of joining S&P 500
Elon Musk, a genius of our time, is poised to become the world's third-richest person. Another surge in Tesla shares pushed his fortune higher, bringing the businessman $7.6 billion.Tesla stocks edged higher following strong revenue growth and the news that the US electric car giant would be added to the S&P 500 index in December. Its shares spiked by 9% to $444.
13:48 2020-11-27 UTC+00
Huawei to sell Honor brand in face of US sanctions
The US sanctions have seriously hit Chinese smartphone manufacturer Huawei. After Trump’s administration had cut off the company’s access to global technology suppliers, Huawei decided to sell its Honor smartphone business. The company admitted that the sale of Honor division was necessary to ensure the brand’s survival.
13:48 2020-11-27 UTC+00
USD may nosedive after massive vaccination
A massive vaccination campaign may save the global economy and lead to a significant drop in the US dollar. The greenback’s future highly depends on the paces of the economic revival.Market sentiment improved amid the news about the final successful trials of coronavirus vaccines in the US and China. The global economy was looking forward to the vaccine as it may revive the international trade.
12:57 2020-11-27 UTC+00
BTC extending stunning rally amid support from central banks
Global central banks have revised their stance on crypto currencies from strong aversion to the green light. In fact, regulators are blowing a new crypto bubble. With such solid support, bitcoin is conquering historic highs, having appreciated almost 500%. This stellar rally is the catalyst for the bullish trend of other altcoins.
10:18 2020-11-27 UTC+00
Japan’s economy expands at record pace in Q3
Japan surprised the international economic community. It has fully benefited from the opportunities occurred after the lifting of restrictive measures.Thus, from July to September, Japan’s GDP soared by a record 21.4% on a yearly basis. It is the highest reading in the last 40 years. Such a surge in the economy was caused by the easing of containment measures imposed to combat the virus spread.
07:08 2020-11-27 UTC+00
Goldman Sachs sees S&P 500 reaching 4,300 by end of 2020
Growth in corporate earnings in 2021 is likely to trigger a strong rally in the US stock market. Goldman Sachs expects the S&P 500 to gain 20% from the current levels by the end of next year.According to the investment bank's report, the S&P 500 index could reach 4,300 and 4,600 points by the end of 2021 and 2020, respectively.
13:57 2020-11-26 UTC+00