Market Report 29th June 2020
My round up of what has happened in the markets for the past week.
Intu, the company owning 14 shopping malls in England and Scotland went into administration as shops failed to pay their rent on their units. Intu reportedly received on 13% of the quarterly rents due.
The collapse of Wirecard with their assets being frozen worldwide by regulators has major global repercussions. Wirecard provides a money processing platform and risk management system to so many international companies , pre-paid credit cards, mobile phone payments and online shopping carts that the fallout and losses to consumers could be enormous.
The IMF (International Monetary Fund) issued a warning to share investors about a 2nd Coronavirus Wave as it believes investors and trades have lost all reality and share markets are not reflecting the true economic situation
Facebook took a hammering on share markets on Friday. It lost USD56 billion in value as leading companies withdrew advertising from Facebook over its failure to control hate speech
Amazon purchases start up company Zoox for $1.2 billion as it continues its acquisitions into the autonomous vehicles market.
Gold – following the IMF warning about the share market the Gold World Council recorded 975,000 ounces of gold was bought through EFTs in 1 day of trading. A record. This resulted in gold hitting its highest value since 2012
Silver – ration remains high at 08.51 meaning silver continues to be undervalued and still offers good investment opportunities
Oil – prices which had been recovery since Covid-19 lockdown collapse having reached $40 a barrel pulled back to $38 a barrel on Friday. This was due to US increases in virus numbers causing governors in 2 US states (Florida and Texas) to start reinstating lockdown measures. Texas announced the closure of bars, cafes and restaurants.
California passed legislation forcing all trucks to have zero emissions by 2035. This will be implemented through incremental steps starting in 2024.
The global economy remains fragile and extremely volatile. For me, physical holdings of gold and silver bullions still remain the best investment options at present.
For more information about bullion investing watch the video below