LBLV Trump diagnosed with COVID-19, effects on markets 2020/02/10

LBLV provides an overview of economic news.

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The main economic news for Friday, October 2:


0:00 Trump diagnosed with COVID-19, effects on markets
1:16 Equinor to lay off almost third of employees
2:12 Kaspi's new ambitions on the London Stock Exchange
3:03 Family expenditure of Japan falls for a year


1. Trump diagnosed with COVID-19, effects on markets
Earlier Friday, President Trump confirmed on that he and his wife Melania had contracted the Covid-19 virus, just hours after his top aide, with whom he spent a lot of time this week, also tested positive. European stock markets open sharply lower on Friday amid news that US President Donald Trump has tested positive for the coronavirus. Germany's DAX futures contract was 1,2% lower, France's CAC 40 futures fell 1,4%, and the UK's FTSE 100 futures contract fell 1,3%. In addition, S&P 500 futures also fell 1.8% in Asian trading following the news, extending previous losses. Oil prices also fell on Friday amid concern about renewed Covid-19 cases affecting oil demand. US crude oil futures fell 3.6% to $ 37.33 a barrel, while the international benchmark Brent contract fell 0.9% to $ 40.55. Both contracts fell more than 3% on Thursday for the second week in a row.

2. Equinor to lay off almost third of employees
Norwegian oil and gas company Equinor plans to cut its exploration workforce by about 30% by 2023 to cut costs as the pandemic reduces oil demand. Equinor said it would like to focus on selected areas, including Norway, Brazil and the United States, when looking for new oil and gas resources, as its exploration spending has dropped by about a third from 6-7 years ago. The company previously said it plans to spend $ 1.1 billion on exploration this year, up from an initial $ 1.4 billion plan detailed in February. The planned reductions will affect “hundreds of positions” by the end of 2022, both internationally and in Norway, but will not have an immediate impact on exploration plans. Equinor, which had 21,000 employees at the end of 2019, said it will offer severance pay in some locations, while in Norway the cuts will be linked to job relocation or natural loss.

3. Kaspi's new ambitions on the London Stock Exchange
Kaspi.kz, a Kazakh banking and fintech company, said that its proposed listing on the London Stock Exchange is due this month. The company, which controls the third largest bank in Kazakhstan and operates a payments and e-commerce business, said it plans to sell new and existing shares by listing its global depositary receipts (GDRs) on the London Stock Exchange. The company did not disclose what share its shareholders intend to sell or how much they intend to raise. Earlier, sources told that his goal is $ 500-700 million. Kaspi.kz decided to try again for listing in London by selling shares, including those held by current owners, including Baring Vostok funds, Goldman Sachs, Chairman of the Board of Directors Vyacheslav Kim and management, including CEO Mikhail Lomtadze, after canceling plans for a year back.

4. Family expenditure of Japan falls for a year
Household spending in Japan is expected to fall for the 11th straight month in August, suggesting that the coronavirus crisis continues to weigh heavily on consumer confidence. Analysts say the economy is gradually recovering from its worst recession in the second quarter, but jobs and wages remain weak. There has been a general downward trend in the number of new cases of COVID-19 in Japan, but recently it appears to be back again. Household spending likely fell 6.9% in August from a year earlier, after falling 7.6% in July, according to a survey of 14 economists. Compared to the previous month, household spending is forecast to rise 3.2% in August, down from 6.5%. The government will announce data on household spending on October 9.