Hi! I’ll be posting a weekly series of news summaries with a bit of analysis on what’s next. I’d be happy to hear your thoughts in the comments.

Source: https://www.vecteezy.com/vector-art/350820-vector-news-icon

Here’s a rundown of what happened last week:

Key takeaway

Corona virus infections are reaching new highs, leading various states to pause their reopening efforts and in some cases return to the initial lockdown strategy. The restriction and lack of unbiased and timely coronavirus updates from the White House’s infectious disease expert- Dr Anthony Fauci in media appearances is feeding into the public misinformation that drives people to act carelessly for their public and personal health. Solution? #WearAMask #BePatient #ProtectOthersAndYourself

Key takeaway

The original NAFTA trade agreement with the US, Canada, and Mexico leaned heavily on the WTO, with both adding amendments to fix issues found after signing. NAFTA was strongly backed up by WTO in terms of trade with eventually 80% of trade between Mexico and US falling under WTO coverage, not exactly the intended purpose of NAFTA. The USMCA was meant to be a separate trade agreement, or replacement if you will from the WTO. The final agreement seems to suggest once again the overlap between both agreements, leading to suggest the USMCA is more complimentary than a standalone agreement as the US President told the public.

Key takeaway

Both the Dow Jones Industrial Average and S&P 500 futures are set to open slightly in the green tomorrow, but investors are cautious with concerns about the effect of the Coronavirus on the world economy and the stages of recovery. Investors will be particularly watching 3 upcoming earnings reports that could post insights;

Demand in the construction industry — Distributor MSC Industrial Direct

Consumer trends — Levi Strauss, and Simply Good Foods

US employment — Paychex (Payroll and HR company)

Retail demand — Bed, Bath & Beyond, and Walgreens Boots Alliance

Key takeaway

The appetite for IPOs has slowly returned after an IPO drought for the past 6 months. Although both startups seems to still be loss-making investors seem to believe in the scale and technology stack to drive growth and a path to profitability. It will be a long game to see if these startups will keep their high stock price or find a deflation.

Facebook has recently lost many big companies that form a part of their advertising revenue due to Facebook’s handling of political misinformation and hate speech. Younger people, a prime audience for Facebook are flocking to other Facebook properties (e.g. Instagram) and competitors such as TikTok. It remains to be seen if Facebook can win back their larger customers and their end users with changes to its platform or whether other startups steal away users, advertisers, and ultimately advertising money.

#Technews #Stockmarkets #IPO2020 #Startups #Politics2020