WHAT HAPPENED THIS WEEK?

 

Fast Facts

🎬The Department of Justice warned the Academy against excluding Netflix (NFLX) from its award ceremonies on Wednesday, adding greater validity to the lead streaming service’s original content.

 

📉Tesla (TSLA) announced lower than expected delivery and production numbers in the first quarter of 2019 on Thursday. The company’s stock was down 10% pre-market.

 

📈Bitcoin surpassed $5,000 this week for the first time since November, however, the push came with no apparent catalyst. Rumors surfaced that the SEC approved Bitcoin ETFs, but this announcement was quickly deemed an April Fool’s joke.

 

🛢Commodities rallied heavily this week as iron ore, crude oil, and avocados all surged on continued supply concerns.

 

🇩🇪German manufacturing fell 8.4% year-over-year in February, the largest drop in 10 years. German expansion growth was lowered from 1.9% to m0.8% following the news.

 

Nearing the Finish Line

Trade talks with China regarding the ongoing trade war seem to inching towards a deal. President Trump and Chinese Vice Premier Liu He met on Thursday in the White House, and a an agreement on core commitments is expected to be reached. Following the expected compromises, a summit between Trump and Chinese President Xi Jinping is expected to be announced in the coming days.

 

Rumors have surfaced that the proposed agreement will give China until 2025 to prove it is making good on its commitment to purchase additional commodities. Although the US has maintained its lack of trust with the negotiations, China seems keen on wrapping up the agreements in order to begin to turn around its stagnant economy.

 

Trump tweeted on Thursday that “the China and USMCA deals are moving along nicely” as investors look for additional guidance on the discussions. As usual, Trump also took the time to denounce the Fed’s past decisions to quickly raise rates in the same tweet. He pointed out the Fed’s “unnecessary and destructive actions” are fortunately not taking a toll on our seemingly strong economy. The Fed hinted at the end of its March meeting that it will not raise rates in 2019, just a couple months after its 4th rate hike in 2018 alone.

 

The trade war has been a large national issue weighing down several of the largest economies in the world, including our own. Therefore, these ongoing discussions will be important to watch closely in the coming days as they soothe out the final details of a deal.