How to start the week: analytics and forecasts — 31.08.2020

Fundamental analysis and forecasts for the future


US Federal Reserve Chairman Jerome Powell spoke about changes in the regulator’s policy on inflation, as well as focusing on the labor market.


Must know

US Federal Reserve Chairman Jerome Powell announced the easing of the regulator’s policy on inflation. The market expected to hear such words, so the reaction was constrained. Nonetheless, economists say the era of low interest rates will continue for many years to come.

The split between Apple and Tesla shares, which led to the renewal of capitalization records for these companies, can now become a strategy for attracting investments for other companies.

The election race in the United States can be officially considered begun, since Donald Trump became the Republican candidate. With little time left until the election itself, Trump is renewing criticism of companies creating jobs abroad and offering tax breaks for those intending to return.

Shinzo Abe, the record-holder of tenure as Prime Minister of Japan, has announced his resignation amid health problems. The country now has to not only meet a new prime minister, but also cope with COVID-19 outbreaks.

The oil market was dominated by news about the storm “Laura”, which paralyzed the mining of black gold in the Gulf of Mexico, as well as some US states. The decline in production was the main factor behind the rise in oil prices, but the effect of the event was fully won back by the weekend.


A fundamental view


There is information that the European aviation regulator will begin test flights of the Boeing 737 MAX on September 7. Earlier, the scandalous model successfully passed a similar procedure in the United States.

If all goes well, this news could be a signal for traders to buy an asset.

Recall that the production shortcomings of the Boeing 737 MAX were the cause of two plane crashes at once. After that, the American aviation regulator banned the operation of this model.


The company intends to cut the number of employees by 4,000. Employees from Canada and Puerto Rico will be offered a voluntary layoff package. Despite the fact that according to preliminary estimates, Coca-Cola will have to pay $ 350-550 million, cutting costs may lead to an increase in demand for these shares.


Investment holding Fidelity announced the launch of a Bitcoin fund managed by the head of Fidelity Consulting, Peter Jubber. The minimum investment in the fund is $ 100,000.

The demand for bitcoin from reputable financial institutions could lead to additional interest among private investors.


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