The most important news of the last week 19.7.2021
Industrial commodities have increased in value
The first half of the year generated an increase in the value of industrial metals by up to a quarter. Aluminum grew in price by 23%, copper rose by 22%. Palladium rose with in price almost 13%. Gold and silver remained in negative numbers, but fundamentally they remain strong. The growing economy after a long lockdown brings a recovery in production, which increases demand for commodities.
Renault is increasing sales
Renault on Friday announced information about an increase in vehicle sales by 18.7%. Under the leadership of CEO Luca de Meo, the car manufacturer is pushing for the production of electric vehicles and at the same time adjusts costs by focusing on a smaller but more profitable range. For the company, this means that this strategy works for them and with the recovery of demand follows an increase. Renault's head of sales, Fabrice Cambolive, has announced that models such as the hybrid versions of the Clio are selling effectively, allowing for price increases.
5 years Renault performance chart. (Source: Investing.com)
Global leaders have reached an agreement
Global leaders met in Venice to support a "fight" against multinational companies that benefit from shifting tax liability to tax havens. The aim is to create a "more stable and fairer international tax architecture." German Finance Minister Olaf Scholz supported the plan, which includes the introduction of a global minimum income tax of 15 percent. The G20 is expected to approve the plan at the G-20 Summit in October.
China reports slowdown
In the middle of the week, Chinese stocks fell, specifically in China, Hong Kong, Seoul and Tokyo. The overall slowdown in economic growth has slowed, and investor concerns persist despite positive news from the Chinese central bank. It reduced the minimum reserve requirements. Tensions in China-US trade relations, the announcement of rising US consumer prices and rising inflation also contributed negatively.
Sources: Investing, Reuters, Bloomberg
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