Global Financial Stability Report Update, January 2021: Vaccines Inoculate Markets, but Policy Support Is Still Needed

The Global Financial Stability Update at a Glance

Approval and rollout of vaccines have boosted expectations of a global recovery and lifted risk asset prices, despite rising COVID-19 cases and softening economic activity in late 2020.

Until vaccines are widely available, the market rally and the economic recovery remain predicated on continued monetary and fiscal policy support. Inequitable distribution of vaccines risks exacerbating financial vulnerabilities, especially for frontier market economies.

An ongoing rebound of portfolio flows provides better financing options for emerging market economies facing large rollover needs in 2021.

Policy accommodation has mitigated liquidity strains so far, but solvency pressures may resurface in the near future, especially in riskier segments of credit markets and sectors hit hard by the pandemic. Credit concerns and profitability challenges in the low-interest-rate environment may weigh on banks’ ability and willingness to lend in the future.

Policymakers should continue to provide support until a sustainable recovery takes hold: under-delivery may jeopardize the healing of the global economy. However, with investors betting on a persistent policy backstop and a sense of complacency permeating markets as asset valuations rise further, policymakers should be cognizant of the risks of a market correction.

With monetary policy anticipated to remain accommodative in coming years, policymakers should address rising vulnerabilities to avoid putting growth at risk in the medium term.

FULL SOURCE via International Monetary Fund

[RISEABOVE.NEWS EXCLUSIVE] WallStreetBets “Guide For Dummies”

For the last few Weeks the immensely hilarious antics of the Reddit Sub Thread community WALLSTREETBETS has caused a massive commotion in the world of Stocks and Media.

Now if all of this goes over your head we are going to give you the low down of what has been going on, how this has happened and what some ramifications of this could be as well as some absolutely priceless memetic wizardry and humour taken form the threads surrounding it all.

For an understanding in the foundation of what is happening find below a superb breakdown of the technicals from Ben Shapiro

On Thursday the news of this started hitting the mainstream media in the UK sending social media into a frenzy of information, from people totting stocks and different crypto currencies to an absolute barrage of memes and people loosing their shit on videos and posts. All of this and one trading app sitting right in the middle of it all.

 

WallStreetBets has made the news before with similar episodes like the “HERTZ” shenanigans in 2020 and has been around for a while but this time turning its attention to GameStop as well as AMC, Nokia, Blackberry and others. A few tweets from The richest man in the public world Elon Musk and boom, WallStreetBets grew at least 4 million members in days and the fun got real. 

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Whilst the Hedge Fund Big shots had already been playing with the stocks of GameStop after deciding it was too high, the insane volume of purchase from the Reddit community sent the share prices sky high. A plea was seemingly made to the underbelly of Wall Street , The media turned on the community saying phrases such as “HACK” and even calling the Redditors “WHITE SUPREMACISTS”.

The RobinHood app as well Charles Schwab, TD Ameritrade and Webull limited or even froze the buying of shares to users and even according to some sources closing out customers positions for them for seemingly lower price than the current level, even the NASDAQ stopped the market on GameStop due to chatter on social media, and Discord banning WallStreetBets on their platform saying that talking about investing is wrong? something the financial gurus have done since the game began.

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Whilst there is speculation of their being a bigger play in all of this there is a very clear example of what seems to be deliberate illegal market manipulation by wall street players in a defence against this play by the WallStreetBets community there is also a huge call across the investment world that there is nothing wrong with what the Redditors have done and it is all giving the hedge funds a taste of their own medicine with their own tactics. 

Not only has the WallStreetBets gang taken on the big boys with the Gamestop stock they have also turned their stance to other areas of the finance market such as silver causing silver price to rise by 4% on friday after an earlier announcement on the reddit board.  

Whilst the game continues the questions continue, Where next? Who is behind this? Is it really just as it seems, The common man having his day? As this story unfolds we imagine the true story of all the players may come to light and hopefully the people trying to stop this turning of tables will be thwarted, with a quick up-shoot in millionaires this week and some amazing stories of “kid millionaires” its defiantly a rollercoaster that has not stopped giving. 

Here are some choice memes and screenshots of the stories antics-

The longer this goes on the more money the billionaires that play with the lives of normal people for profit loose money, this may have bigger outcomes for the money system as an whole and there seems to be a huge push to a decentralised monetary financial system that can help rid the world of these corrupt money guys.

Once the truth is made clear the entire world should come down on the people who played bad roles in this episode, play your part by using this report which will in turn help control the evils of the corporate stock markets in future.  

SEC Report: https://www.sec.gov/oiea/Complaint.html

 

Find out more follow RISEABOVE.NEWS for future updates as this story unfolds

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Big Tech, Corporate Media Smears WallStreetBets as Racist!

Calling Reddit stock nerds “white supremacists” is surely peak “everyone I don’t like is a Nazi.”

The Wall Street Journal is now describing WallStreetBets – the Reddit community that is taking on corrupt hedge funds – as “straight up white supremacists.”

Deplatforming works!

Yeah, it works great for the financial elite.

Author Paul Joseph Watson

via SUMMIT NEWS

How Reddit posters made millions as Wall Street lost billions on GameStop’s wild stock ride

A meteoric rise in the share price of GameStop has trained the eyes of stock market watchers on a fast-growing Reddit discussion board called Wallstreetbets, where it appears that 20-somethings armed with cheap and easy stock-trading apps like Robinhood, MooMoo and TradeStation are targeting stocks to soar and hedge funds for takedowns.https://3dc00e668014e464f56e9abf709e0851.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html

The drama has sent GameStop shares up nearly 2,000% in the past month. On Wednesday, the stock price of the troubled retailer of video games soared yet again, this time up more than $200, to surpass $350 a share.

While GameStop shares have been a favorite of Wallstreetbets members, the money-losing company has been closing stores and been a target of hedge funds and so-called short-sellers who wager that the shares of particular companies will fall.

Wallstreetbets posters have fought back by vowing never to sell, egging each other on to buy more shares and attacking critics of their favorite stock. Andrew Left, a noted short-seller who had predicted GameStop’s demise, last week stopped commenting on the company, saying his family had been threatened.

Now, Wallstreetbets members appear to be widening their aim to focus on other companies that, much like GameStop, the rest of Wall Street has left for dead. Shares of former phone maker Blackberry, LaCroix seltzer owner National Beverage and troubled movie chain AMC have also soared after mentions on the Reddit board. 

At a time when viral online movements are having a growing influence on real-world events, including the deadly storming of the Capitol on January 6, some are describing the Wallstreetbets saga as the stock market’s conspiracy-peddling equivalent. Wallstreetbets is Occupy Wall Street meets QAnon, goes the thinking. Its posters talk about taking revenge on the hedge funds they insist have secretly controlled Wall Street and hail their recent triumphs as a win for the 99%.

“Hedge fund managers live in the past, and continue to look down upon the retail investors,” wrote one Wallstreetbets commenter on Wednesday. “This is the world they want to live in. This was the past.”

FULL SOURCE via CBS News

REDDIT THREAD – https://www.reddit.com/r/wallstreetbets/

GT Voice: UK faces battle to keep London at heart of global finance

By Global Times Jan 19, 2021

Pressure is mounting on the UK financial service providers as the EU seeks to strengthen its financial standing and promote the euro’s role in the world which has long been eclipsed by the predominance of the US dollar.

Should the EU want the euro to compete with the greenback, it needs a financial system to match it, Markus Ferber, a senior member of the European Parliament, said on Monday, noting that, “We need a clear step-by-step master plan that helps key financial sector businesses move from the UK to the EU.”

Given these developments, EU is set to unveil a plan to strengthen the euro’s international role, the remarks by the senior EU lawmaker’s reflect a rising call within the EU for reduced reliance on Europe’s biggest financial center London post-Brexit. 

While the UK’s financial sector is highly competitive and it is up to individual companies to decide whether to move businesses to EU countries, it is undeniable that London’s status as a global financial hub is under unprecedented siege, due to the post-Brexit uncertainty and an intensifying market turbulence that is set to come.

Although the UK and the EU reached a last-minute Brexit trade deal, the British economy still faces significant difficulties and rising uncertainty. At a time when most parts of the country remain under lockdown due to the surging COVID-19 cases, the UK is in a quagmire when it needs urgently to stabilize a rapidly faltering economy while expanding its own trading network post-Brexit.

FULL SOURCE ARTICLE via Global News

Biotech’s Price Tag Is Crazy but Not Insane

A biotechnology startup is poised to go public with a roughly $10 billion price tag a year before it begins human clinical trials for its drug candidates. That isn’t as crazy as it sounds.

Sana Biotechnology, which is developing cell-engineering platforms that it says could change the way many diseases are treated, plans to sell $150 million of stock in a coming initial public offering, the company said in a securities filing last week. While it is unknown how many shares it plans to sell, investors are expecting a valuation of between $9 billion and $12 billion.

The Sana IPO is arriving as biotech stocks are near records. A broad index of small and midsize biotech firms has rallied about 60% in the past year. And Sana won’t be delivering on its promises anytime soon: Clinical trials in humans for its drug candidates won’t begin until 2022.

FULL SOURCE ARTICLE BELOW

https://www.wsj.com/articles/biotechs-price-tag-is-crazy-but-not-insane-11610974801

Banking heir Benjamin de Rothschild dies at 57

Benjamin de Rothschild, who oversaw the banking empire started by his father in 1953, has died. He was 57.

The Edmond de Rothschild Group, the company he was chairman of, said that de Rothschild died of a heart attack Friday afternoon at his home in Pregny, Switzerland.

Since 1997, Benjamin de Rothschild headed the banking group, which was named after his father. Today, Edmond de Rothschild Group says it manages assets worth 160 billion euros, or $190 billion.

Forbes magazine estimates de Rothschild’s net worth at $1.5 billion. He is a descendent of the Rothschild family, which has a nearly 300-year history running European banks.

https://www.independent.co.uk/news/banking-heir-benjamin-de-rothschild-dies-at-57-father-new-york-ap-assets-home-b1788431.html?utm_content=Echobox&utm_medium=Social&utm_source=Facebook&fbclid=IwAR3Qp5ejQpUOIwKEaS9eC8aoN-JAV8OXrZ4zm3LdQOMG3VeBTG-fJ1lv0JI#Echobox=1610900527