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Contents Click on the links below to get to the stuff you really really want. USA – Surge in virus cases; Trade threats against Europe; Oil prices slump; Shares and bond yields tumble (#USA) UK – IMF predictions of worse recession add to woes (#UK) Continental Europe – Same (#Europe) Elsewhere – Same here too (#Elsewhere) WTF – Rallying the troops (#WTF) Links (#Useful) Numbers (#Numbers) Ts & Cs (#Ts+Cs)
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USA
The surge in virus cases could no longer be ignored. The numbers of new cases in the likes of Florida and Texas are not make believe and irrelevant, they’re real and deadly. Trump and his lackeys have indicated that the lockdown is to be lifted and won’t be reinstated. So a rise in virus cases presents the US with two forces that don’t seem to care: Trump’s administration and the virus.
Further attempts at distracting voters were being churned out by the administration. The latest salvo was aimed at European countries with a new round of tariffs focusing on exports from the US, France, Germany and Spain – the biggest economies in Europe.
Meanwhile, the latest bout of economic data showed that total mortgage applications had fallen.
Guess what, stocks and bond yields slumped. The S&P 500 closed 2.6% lower with energy stocks (oil-related due to oil prices falling on anticipated lower demand) leading the falls while the more defensive stuff (that generally moves less either up or down) such as utilities fell the least.
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UK
Rising virus cases and threats of trade sanctions from the US had a predictable effect beyond the US. UK stocks tanked with the FTSE 100 and FTSE 250 both slumping by around 3.0% on the day.
In case folk hadn’t got the message, the International Monetary Fund chimed in with depressing predictions of global recession numbers that were worse than folk had been expecting to date.
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Continental Europe
Same as the UK. Euro Stoxx 50 and German DAX both down by 3.0% or more.
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Elsewhere
It’s much the same story across the Asia Pacific region this morning with energy stocks leading declines and the more defensive stocks falling by less, but still falling.
National benchmark indices are generally down by at least 1.0% as folk worry about virus resurgence (including in Australia) and pointless trade spats.
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WTF (What’s The Fact?)
Rallying the troops
You might have noticed that a certain US citizen has been running political rallies over recent days. Funnily enough, they’ve not been well attended.
There is an after-effect, a bunch of secret service staff are having to be quarantined as a precaution. The worry is that their brains will be melted by repeated exposure to breath-taking stupidity.
In all seriousness, two agents have been confirmed as having the virus after attending the rally. So we now wait to see how many ordinary folk who attended the rally also come down with the virus.
The bizarre reality is that Trump is gathering his most loyal supporters and making them ill. I never thought I’d fully support him in an endeavour, but this one seems water-tight.
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Links
Investopedia (www.investopedia.com/dictionary/) – Loads of free explanations of financial terms including some helpful videos. Not 100% accurate, but a good starting point Guffipedia (ig.ft.com/sites/guffipedia/) – Lucy Kellaway of the FT has collected some painful examples of corporate people disappearing up their own analogies Guardian (www.theguardian.com) – Free to access website with a couple of decent columnists (e.g. Nils Pratley and Larry Elliott) Times of India (timesofindia.indiatimes.com) – Why use five words when 37 will do? Daily Mail (www.theatlantic.com/magazine/archive/2016/07/the-war-on-stupid-people/485618) – Click it. I dare you.
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———————————————————— IMPORTANT This is my opinion. Yes I read a lot and share what I’ve read with you, but this content remains my opinion. It’s NOT advice. If you take my advice – don’t take my advice. Any decisions you make about investments, your hairstyle or whether or not to eat marzipan are entirely at your own behest. If you are too stupid to recognise the devil’s ear wax when you see it, then you’re on your own.
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