LBLV provides an overview of economic news.
Website LBLV is available at – https://lblv.com/
The main economic news for Tuesday, June 9:
1. Shares rise amid strong data and optimistic mood
Global stock market rose on Tuesday amid investors’ hopes of a relatively quick global economic recovery and strong data from the world’s biggest economy. European markets are expected to open higher, with pan-European Euro Stoxx 50 futures adding 0.4% and DAX futures rising 0.3%. The big bout of optimism for equity markets came last week after U.S. unemployment rate showed a surprise decline, sending Wall Street benchmarks surging with the Nasdaq closing at a record level on Monday. Overnight, the Dow jumped 1.7%, the S&P 500 soared 1.20% and the Nasdaq Composite rose 1.13%. MSCI’s broadest index of Asia-Pacific shares outside of Japan increased for a ninth straight session, marking its longest winning streak since early 2018. The index traded 1% higher at a three-month peak, while Japan’s Nikkei went against the trend with 0.6% drop.
2. France plans to finance aerospace industry
On Tuesday, France’s government members, including Economy Minister Bruno Le Maire, announced a 15-billion-euro ($16.9 billion) support package for its aerospace industry, referring to slump in air travel demand due to the coronavirus pandemic. The plan includes an investment fund starting at 500 million euros with a target of 1 billion to boost the development of medium-sized suppliers, and 300 million euros of other aid to help aerospace sub-contractors modernize their plants. The country also set to invest 1.5 billion euros over three years to support research into new environmentally friendly aviation technology, of which 300 million will be available this year.
3. Electric jet startup Lilium becomes a “unicorn”
A German startup Lilium, which is making an all-electric passenger jet, became a billion-dollar “unicorn” after raising $35 million from Baillie Gifford & Co. – the largest investor in Tesla Inc. after its billionaire owner Elon Musk. The company’s new funding came with a post-money valuation of more than a billion dollars. Lilium stated on Tuesday that the new money brings the startup’s total investment to date to more than $375 million. Daniel Wiegand, Lilium ‘s chief executive officer, said the company’s mission is to create a transportation system that will be accessible to everyone and not just to be used as a toy for the rich. At the moment, Munich-based firm employs more than 450 people and plans to continue to grow with additional hires.
4. China creates new petrochemical complex
China aims to shut down capacity of half a million barrels per day shared among small, independent refiners to make way for a giant complex that should spur economic recovery from the coronavirus crisis. China, the world’s largest oil consumer after the United States, last week unveiled the plan to create a $20 billion Yulong Petrochemical complex. The planned 400,000 barrel-per-day (bpd) refinery and 3 million ton-per-year ethylene plant in Yantai, weighted towards petrochemical production whose demand is expected to be relatively robust, has already get a state approval. That has prompted Shandong to accelerate a plan to close 500,000 bpd over the next two-to-three years, which amounts to 20% of hub’s capacity, made up of more than 60 small plants.