In this week’s recap, we find several relevant and decisive events for the world economy, such as the approval of the stimulus package for coronavirus in the US for a value of $1.9T dollars. During the week, US equities were steadily lower as investors sought less risky assets, yet they rallied strongly on Friday. Global stocks were mixed.
Oil prices surge to the highest level in 14 months on Friday, as OPEC & its allies extend production cuts for another month, despite a recent price surge, thus choosing to limit supply, until the global economic recovery is more firmly established. Its supply cut amounts to nearly 8M barrels per day, including the extra 1M Saudi contribution. (U.S.) +2.98% at $65.73 & (Brent) +3.16% at $68.85.
The U.S. to soon have to settle a Bitcoin issue with a decision that could have far-reaching implications, for the virtual currency industry. Concerns last-minute rules proposed by the outgoing Trump administration that would create new requirements for financial services firms to record the identities of holders, to lessen attempts to use Bitcoin & other cryptocurrencies for money laundering or to finance illegal activities. If adopted, could cause cryptocurrency prices to plunge.
Tesla’s market share in the critical European battery-electric-vehicle is crumbling. Volkswagen Group actually sold the most electric vehicles of any firm, in the key European market, during January 2021. In 2019, Tesla sold over 109K vehicles, making up 31% of the European EV market, in 2020 it was just 13%. At the same time, China is now reclaiming top ranking in the global Electrical Vehicle race.
UK-EU trade deal still with no vote date; General Motors further increases production cuts due to semiconductor shortages; Texas Governor Allows Businesses to Open at 100% Capacity; Zoom shares rose earlier in the week after Q4 results topped estimates; the number of Americans filing new claims for unemployment benefits rose last week.