Jackson Hole takes center stage, Buffett gets approval and IPO success for Shanghai United Imaging

Jackson Hole Dominates Trading Week – Powell Speech Expected Friday

All attention this week is on Jackson Hole. The Fed Chair will speak at the Fed Symposium on Friday. Buffett receives takeover approval. Berkshire Hathaway can buy up to 50% of Occidental Petroleum. The seventh Chinese IPO success in a row. Shanghai United Imaging up 75% on day one.

On Monday, Asian trading was dominated by price losses. The bulls can only assert themselves in the Chinese stock market. In contrast, we see the biggest losses in Seoul and Taipei. The futures market is moving in the red before the opening of the European pre-exchange. The DAX future is seen -0.37% lower at 13,484 points.

Trading on Friday confirmed the weakening sentiment. All German benchmarks closed in the red, with the SDAX leading the list of losers with a loss of -2.30% to 12,653.93 points. The Small Cap Index was also the biggest loser of the week. Closely followed by the MDAX, which fell by -1.98% to 26,984.97 points on Friday. The DAX lost -1.12% to 13,544.52 points and the TecDAX recorded the smallest losses with a daily minus of -0.93% to 3,109.61 points.

The same picture also on Wall Street. The US benchmarks started the weekend with losses on the last trading day. Here it was the risk-on assets that lost the most. The Nasdaq Composite Index fell -2.01% to 12,705.21 points, also the biggest loser of the week. The S&P 500 Index fell -1.29% to 4,228.48 points and the Dow Jones Industrial Average Index fell -0.86% to 33,706.74 points.

Jackson Hole dominates the appointment calendar

Representatives of the world’s major central banks will meet this week in Jackson Hole, Kansas for an annual symposium. The event is traditionally hosted by the Federal Reserve of Kansas City and this year the focus will be entirely on Fed Chair Jerome Powell’s remarks and speeches. Powell’s keynote address is expected Friday morning at 10:00 a.m. EST.

Buffett receives takeover approval

Warren Buffett has prevailed. The Federal Energy Regulatory Commission his investment vehicle Berkshire Hathaway (US0846707026) Permission granted up to 50% Occidental Petroleum (US6745991058) to buy up. Buffett already had a more than 20% position in Occidental in the stock market. In 2019, the billionaire had already helped the company acquire Anadarko Petroleum. The current interest in Occidental stems from their advanced CO2 storage strategy, which the US government plans to heavily promote in the future.

Occidental Petroleum Corp.

Shanghai United Imaging with successful IPO

Beijing’s strategy is working. The Communist Party had long prepared for the best Chinese companies to have their primary listings on a Chinese stock exchange in the future. The aim was to break the power of Wall Street. A successful endeavor. With Shanghai United Imaging, the seventh Chinese company with an issue volume of more than the equivalent of 1 billion US dollars went public today. And the shares of the medical technology group, which is in direct competition with Siemens Healthineers (DE000SHL1006) stands, achieved a jump in price of 75% on the first day of trading.

daily appointments

No important appointments on Monday.

22.08.2022 – Mikey Fritz

Signature - Mikey Fritz

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