A potential COVID-19 vaccine was under the spotlight - Weekly Review, September 7-11

Por: Miguel A. Rodriguez

12:42, 12 April 2021

Tesla had the worst day in its history

Monday: In Europe, the tensions between the EU and the UK regarding Brexit didn’t faze the markets. Germany30 added 0.8%, while UK100 went up 1.5%. 

EUR/GBP lost 0.6% and settled at 1.1138.

On the other side, Oil lost 1.6% to $39.5 per barrel, while Brent closed 1.4% lower at $42.06. 

Samsung and Verizon joined forces by securing a $6.64 billion deal. Samsung will provide the necessary equipment for wireless and 5G technologies. Neither of the companies provided details about the deal, but according to regulatory filings, the contract is valid until December 31, 2025. 

Australia announced that it managed to secure 3.8 million doses of the vaccine developed by AstraZeneca. Besides the vaccine from AstraZeneca, the Australian government will buy 51 million doses of the vaccine developed by the University of Queensland, if the #vaccine proves to be effective. 

The semiconductor and software developer, Broadcom, had Q2 earnings that topped the analysts’ expectations. It had revenues of $5.82 billion, with EPS of $5.40. Broadcom’s cash flow increased by 33% compared to last year’s numbers. After the report, the stock price gained more than 3%.

In Spain, two of the largest banks, Bankia and Caixabank, have the prime minister's support in closing a merger. Upon the deal, the state's stake in Bankia could drop to 14%, while Caixabank- which will be the primary entity, will have around 30%. After the news, Caixabank stock price added 0.88%. 

Tuesday: The exclusion of Tesla from the USA500 caused a sell-off in tech stocks. USA30 lost 2.25%, and USA500 fell 2.76%. TECH100 plummeted 4.11%.

Dropbox, Apple, and Google came under scrutiny of the Competition and Market Authority of Italy. The regulator seeks to see if the American companies failed to accurately inform their users about collecting and using the data provided for commercial purposes. The companies have been or are currently involved in other antitrust lawsuits against various companies or governments regarding anticompetition and antitrust practices. Following the news, each company lost between 1% and 3%.  

Japan's GDP contracted slightly higher than the 7.8% expected. The figures came in at 7.9%. This is the steepest contraction that the Cabinet Office reported in its modern history. At that time, Japan225 closed 0.8% higher, while USD/JPY traded at 106.35. 

Sanofi announced that its potential COVID-19 vaccine made in collaboration with GSK would be priced at around €10 or less. 

Wednesday: Tesla lost $80 million in market cap after its stock closed 21.06% lower by reporting the worst single-day drop. In just a week, it lost 34%. Since the beginning of the year, its stock price went up 284%. 

Slack, a lesser-known competitor of Microsoft and Zoom when it comes to video-communication, reported a 50% increase, the figures coming in at $215.9 million. Year-to-date, its stock price added 30%.

Lululemon, the American athletic apparel company, reported a net income of $86.8 million, while the revenues were $902.9 million. Following the report, the company’s stock price lost 2%.

A few days after it announced its deal with the Australian government, AstraZeneca had to halt the human trials of its COVID-19 vaccine amid an illness reported by one of the volunteers. It is unknown if the patient's condition was caused by the potential vaccine or not.

Thursday:  In Asia, the markets were mixed. HongKong45 fell 0.30% after ByteDance didn't get an extension of the purchase deadline from the Trump administration.  

Japan225 added 0.49% regardless of the disagreement between the Chief Cabinet Secretary and the Defence Minister regarding the future elections.

Australia200 gained 0.39%. 

Europe50 fell 0.65% after the European Central Bank announced that it would keep its monetary policy unchanged.  

The French luxury goods giant LVMH stepped away from the long-touted deal with Tiffany & Co. The $16 billion deal was put aside, given the financial unattractiveness caused by the pandemic on Tiffany. At the same time, Tiffany sued LVMH in an attempt to force the latter to make the deal happen. Tiffany stock price lost 6.44% after the news. 

The US Unemployment Claims came higher-than-expected. The 884,000 filings are still showing the pandemic’s damage over the economic sector. 

UPS is already getting ready for the holiday season as it is looking to hire more than 100,000 to avoid being overwhelmed by deliveries. 

Friday: Oracle announced three new deals with McDonald's, Albertson's, and Humana. The tech company will provide cloud services for the abovementioned. Year-to-date, its stock price gained 7%.  

Peloton benefited from the pandemic, as the figures of the latest financial report showed. The company had sales of $223 million, while its revenue came in at $1.46 billion. Since its last year's IPO, the stock price went up more than 260%.

The Office for National Statistics reported that the UK GDP expanded by 6.6% in July after, in June, it had an expansion of 8.7%. Despite a steady post-pandemic recovery, in Q3, the GDP could reach 17%. However, it would still be 8% lower than the pre-pandemic levels.

Sources: cnbc.com, investing.com, marketwatch.com, forexfactory.com


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