Financial News Flashcards
UK Economic Growth
- sharpest fall in GDP in 2nd quarter compared with last 3 months of 2019 of any G7 nation
- on course to record-breaking economic recovery in 3rd quarter, fuelled by consumers who are spending again after the coronavirus lockdown and a planned reopening of schools
Apple
- $2 trillion valuation
- stock split (four-for-one)
- Dow Jones is price weighted, so Apple’s influence will be diminished (12% –> 3%)
Dow Jones Industrial Average removed…
- ExxonMobil
- Raytheon
- Pfizer
Dow Jones Industrial Average added…
- Salesforce (cloud-based sales automation software)
- Amgen (biotechnology company)
- Honeywell International (industrial goods conglomerate)
Dow Jones shift due to…
To compensate for Apple’s stock split reducing weight of tech companies
How is Dow unlike other S&P indices?
company weightings calculated according to its constituents’ share prices, not market capitalization
Which is more to financial markets– Dow Jones or S&P 500?
S&P 500: market cap-weighted
Dow Jones: looked to by households
European equities climbed because…
data showed Germany’s historic economic collapse was less severe than feared and business sentiment has continued to brighten.
European equity climb also boosted…
the euro.
Optimism surrounding a coronavirus vaccine has contributed to…
a rise in share prices for some airlines (Delta), cruise owners (Carnival), retailers (Kohl’s)
Lack of progress in Brexit talks…
drop in pound and euro
Wirecard replaced in Germany’s DAX 30 by…
Delivery Hero (food delivery platforms company)
What is Delivery Hero?
Berlin-based food delivery platforms company operating across Europe, Asia, the Americas, and the Middle East and Africa
- replaced Wirecard in DAX 30
Problem with food delivery companies?
chronic lack of profitability
Why is Delivery Hero unusual in DAX 30?
not very blue chip… has yet to pay dividends
- unclear whether it will be able to become profitable
