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OECD Member States Suffer a 9.8% Economic Shrinkage in Q2 2020

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OECD Member States Suffer a 9.8% Economic Shrinkage in Q2 2020 WORLD MSCI WORLD INDEX MARKET S 2.71% ▲ Aliko Dangote Africa’s Money for Nothing: The scien - Black Sea & Eurasia Coun - richest man tists, fraudsters and politicians tries in the Spotlight The founder of industrial conglomerate A fresh take on high finance by US ac- Politics, Economy, Capital Markets, Dangote Group is building Africa’s ademic and science writer Thomas Lev- Unemployment Rates, News largest oil refinery (p.16) enson (p.5) & Data (p.10-11) GERMANY: Thousands took to the streets of Berlin on Saturday to rally against USA : President Donald Trump accepted the Republican coronavirus restrictions, which according to protesters infringe on basic rights and Party's nomination for a second term on Thursday, joining a freedoms. Similar protests took place in other European cities including London, general-election contest against Joseph R. Biden Jr. Paris, Vienna and Zurich. D C E O : e c r u o S JAPAN : Prime Minister Shinzo Abe announced his resignation OECD: Following the introduction of Covid-19 containment measures across the world since March on Friday for health reasons. The 2020, real GDP in the OECD area showed a dramatic fall. end of the era of Abenomics? OECD member states suffer a 9.8% economic shrinkage in Q2 2020 he Organisation for Economic Co-operation and Growing restrictions on the movement of people and lock - Development (OECD) said on Wednesday that its downs in Europe and North America hit the service sector T 37 mainly wealthy member states took 9.8% hit hard, particularly industries that involve physical interac - to GDP in the second quarter of 2020. This is the tions such as retail trade, leisure and hospitality, recreation largest drop ever recorded for the OECD area, significantly and transportation services. The adverse effects of pro - MIDDLE EAST: US Secretary larger than the (minus) 2.3% recorded in the first quarter longed restrictions on economic activities in developed of State Mike Pompeo ended a of 2009, at the height of the financial crisis. Among the economies spill over to developing countries via trade and Middle East tour on Thursday major economies of the G7 states, all of which are OECD investment channels. But the coronavirus crisis worsened without a single state agreeing members, Britain suffered the worst GDP fall, at 20.4%. preexisting conditions of the world economy. to normalisation with Israel. 2.P WORLD MARKETS DASHBOARD 2.18 % 2.59 % 3.2 6 % 3.3 9 % -0.64 % 0.61 % -2.14 % -0.79 % 2.10 % 1.14 % INDICES CAC40 DJIA S&P500 NASDAQ FTSE100 BOVESPA MERVAL IPC DAX TSXCOMP One stop-shop for Market Watchers ( pages 02 & 15 ) See at a glance the weekly performance of main indices of world stock markets. All figures refer to the performance during Aug.24- 28, 2020 (weekly % change). World Markets undertakes all reason - able efforts to ensure the data included in this section was correct at the time of publication. For corrections send an email at: [email protected] EUROPE 1. AUSTRIA ATX 2.66% 2. BELGIUM BEL20 2.29% 3. BULGARIA SOFIX -0.60% 4. CROATIA CROBEX 0.47% 5. CYPRUS CYMAIN -0.60% 6. CZECH REPUBLIC PX 1.27% 7. DENMARK OMXC20 -0.31% 8. ESTONIA OMX TR -0.96% 9. FRANCE CAC40 2.18% 10.GERMANY DAX 2.10% 11.GREECE ATHEX AGD 0.19% 12.HUNGARY BUX -3.33% AMERICAS 13.ITALY FTSE MIB 0.74% 14.LITHUANIA OMX V 0.98% 1. ARGENTINA: MERVAL -2.14% 15.NETHERLANDS AEX -1.69% 2. BRAZIL: BOVESPA 0.61% 16.NORWAY HEX 0.31% 3. CANADA:TSX COMP 1.14% 17.POLAND WIG20 0.50% 4. CHILE: IPSA -3.03% 18PORTUGAL PSI20 -0.03% 5. COLOMBIA: COLCAP 3.37% 19.ROMANIA BET 1.17% 6. JAMAICA: JSE COMP -4.51% 20.RUSSIA MOEX -0.52% 7. MEXICO:IPC -0.79% 21.SPAIN IBEX35 2.16% 8. PERU: S&P LIMA GENERAL 0.79% 22.SWEDEN OMXS30 1.34% 9. VENEZUELA IBC 2.20% 23.SWITZERLAND SMI -0.53% 24.UK FTSE100 -0.64% 10.USA: S&P 500 3.26% 11.USA: DJIA 2.59% 12.USA:NASDAQ 3.39% TORONTO ( TMX ) VIENNA ( ATX ) Toronto, Canada (TMX) Vienna, Austria (ATX) John McKenzie appointed new CEO H1 brings volatility, high turnover TMX Group Limited on Aug. 17 of the TMX Group Limited In the first half of 2020, a period same time, ATX expanded its announced that it has appointed Board of Directors. Mr. McKen - of global uncertainty, equity market share, attracting 1,020 John McKenzie to lead the organ - zie brings more than 25 years of turnover on Vienna Stock Ex - new bond listings since the be - ization as its Chief Executive Of - valuable leadership experience to change (ATX) developed posi - ginning of the year Thus, the ficer(CEO). Mr. McKenzie, who his new role, including 20 years tively: at EUR 39.18 bn, it is number of new bonds listed more assumes the role effective imme - in increasingly senior executive more than one-fifth higher com - than tripled compared to the first diately, also becomes a member positions at TMX Group. pared to the previous year. At the half of 2019. P.2 24-30 Aug. 2020 WORLD MARKETS WEEKLY IN FOCUS P. 3 OIL flat, Gold Brent crude futures, posted a weekly gain of near 1.6% while WTI futures booked holds gains a near 1.5% gain, the 4th straight week of gains. Goldbooked a near 1.3% rise on the week. Brent crude futures for October, set to ex - pire on Friday, ended nearly flat at $45.05 per barrel while WTI crude ended slightly $ 1.964 lower around $43 a barrel as Hurricane $ 45.05 $ 43.0 28 /08/2020 Laura made landfall in Louisiana and 28 /08/2020 28 /08/ 2020 Texas but did not caused widespread dam - age. Gold prices rose around 1.8% to $1,964 an ounce on Friday as concerns about the global economycontinue to sup - port the precious metal. from the Editor RED GREEN KEY OPINIONS Money to the few ,for the DIVIDENDS FUNDS rest “let them Global dividend payments Companies have raised $65.5 eat cake” plunged $108 billion to $382 bil - billion through initial public of - ferings (IPOs) and high-yield arkets opened the week with lion in the second quarter of the Jackso nHole year, fund manager Janus Hen - bond issuances globally so far in great enthusiasm and by August, the highest for that M Wednesday, the MSCI World derson said in a report published Summit 2020 on Monday, equating to a 22% month in at least 10 years, ac - Index hit a record. Encouraged by cording to Refinitiv data. signs US-China remain commited to year-on-year drop which will be the phase one trade deal and liquidity the worst since at least 2009. packages, investors embraced the DEPOSITS risk-on mood and stocks flew high. PROFITS The Federal Reserve Bank of The much-anticipated Jackson Hole T Kansas City’s annual monetary Economic Policy Symposium policy symposium was not held in brought some reassurance Bank deposits in the U.S. climbed the mountain resort of Jackson Hole, that central banks will U.S. bank profits were down by over $1 trillion for the second Wyoming, this year. Instead, the 70% from a year prior in the sec - likely continue to let the straight quarter in Q2, according bank hosted a virtual meeting on ond quarter of 2020 the Federal markets-friendly monetary to the Federal Deposit Insurance Aug. 27-28. Here's what central Deposit Insurance Corporation Kyriaki policy settings in place for Corporation which said the in - bankers said: Balkoudi said. The FDIC also reported that dustry has “very strong” capital longer. Some companies Editor will keep getting money to the level of loans that are more and liquidity levels. than 90 days past due had risen keep the lights on while others are 16% in the last quarter. Jerome Powell forced to get out of business. It will take "a couple of A group of multimillionaires are STOCKS years" before people who hoarding cash at unprecedented lev - REAL ESTATE lost their jobs as a result of els and as the month comes to an end the coronavirus will be and the economic and social effects back at work. It will be ChiNext, a Nasdaq-like board of coronavirus continue to be felt, on the Shenzhen Stock Ex - hardest for those who lost stocks continue to march higher. Wall Sovereign wealth funds (SWFs) change, debuted new rules on jobs in entertainment, hospitality and Street flourishes while Main Street invested $4.4 bn in the sector in Monday. Eighteen stech firms aviation to return to work. struggles. Almost six months after a the first seven months of 2020, 65% down from the same period took advantage of the new rules record 6.9 million Americans filed and began trading. By market for unemployment benefits in March, a year ago, according to previ - Michelle Bowman ously unpublished data provided close, their stocks had popped initial jobless claims continue to run more than 200% on average. The Federal Reserve above one million per week. to Reuters by Global SWF. Governor stated she ex - Everything is bad, and yet somehow pects the US economic the stock market is good. Economic REVENUE BONDS recovery from the coron - experts say there are technical and avirus crisis to be "slow policy reasons why stock prices and uneven." today don’t reflect the "real" econ - omy. Globally, media owners’ adver - The August 17-27 Reuters poll Still, the improvement in economic tising revenue will decrease this of 35 fund managers and chief Philip Lane indicators from quite-depressed lev - year by $42 billion, or 7.2 per - investment officers in the U.S., The member of the els has made the stock market’s dra - cent, to $540 billion, according Europe, Britain and Japan sug - ECB's (ECB) Executive matic surge off the March lows seem to a report from Magna.
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