Weekly News Summary for July 10-16, 2020

Friday, July 10, 2020: France, Italy Posts Sharp Output Recovery in May

The economic rebound in Europe seemed a bit more secure after both France’s and Italy’s factory output showed major recovery in May, slightly making up for the unexpectedly weak figures from Germany released earlier this week.

France’s industrial production was up 19.6% in the month, while Italy’s output bounced back by 42.1% after facing a sharper decline due to the intensity of the coronavirus pandemic in its most industrialized provinces.

Monday, July 13, 2020: Analog Devices Aims to Merge with Maxim Integrated

Chipmaker Analog Devices Inc. is looking to merge with industry peer Maxim Integrated in all-stock agreement that will be the largest 2020 M&A deal in the US so far.

The merger could lead to the establishment of a company with a market value of about $70 billion and annual revenue of around $8 billion.

Tuesday, July 14, 2020: China’s Exports, Imports Rise in June

China’s dollar-denominated exports and imports climbed in June for the first time since the virus erupted at the start of the year, as restrictions eased and countries began to reopen their economies.

Exports in the country rose 0.5% on the year in the previous month, while imports improved 2.7%, as China took advantage of low prices to restock crude oil reserves.

Wednesday, July 15, 2020: US Stocks Up on Goldman Q2 Results, Vaccine Hopes

US stocks advanced on Wednesday, with the S&P 500 closing in on its highest in over four months after a strong quarter from Goldman Sachs Group Inc. and upbeat preliminary data for a possible COVID-19 vaccine.

Shares of the US investment banking firm gained 2.9%, as its trading revenue grew twofold in the second quarter, supported by huge increases in stock and bond markets since March, while the broader banking index inched up 2.7%.

Thursday, July 16, 2020: Oil Down as OPEC, Allies Agree to Ease Supply Cuts

Oil prices fell on Thursday after the OPEC and allies such as Russia agreed to reduce the record supply cuts from August, although the weakness was lessened by expectations over a quick rebound in US demand following the country’s huge drawdown in crude stocks.

After gaining 2% due to a decline in US crude inventories on Wednesday, Brent crude oil futures were down 0.8% to $43.42 per barrel, and the US WTI crude futures lost 1% to $40.75 a barrel.