Airbnb doubles in debut

GURU WISDOM

“Get busy living or get busy dying.” — Stephen King

MARKETS

*Daily closing price
↗ EUR/USD    1.2072        (+0.47%)
↗ GBP/USD    1.3305        (-0.68%)
↗ USD/JPY    104.25        (+0.04%)
↘ S&P 500    3668.10    (-0.13%)
↘ Hang Seng    26,410.10    (-0.35%)
↘ Gold        1814.81    (-0.13%)
↗ Oil (Brent)    50.38        (+3.11%)
↘ Bitcoin    19,137        (-2.79%)
 

NEWS

 

Airbnb

Airbnb entered public markets for the first time on Thursday and the company was warmly welcomed. The stock shot higher by 112%, giving it a market capitalisation of $86.5 billion. The shares opened at $146, more than double the $68 share price set in the IPO. The investor optimism going into the IPO flew in the face of huge troubles facing the travel and leisure sector because of the pandemic. The market cap exceeds direct competitor booking.com as well as hotel chains like Marriot and Hilton. There is a belief that the stock will eventually join the S&P 500, akin to what Tesla will achieve later this month. 
 

EU fiscal

Hungary and Poland lifted their veto over the EU budget and recovery fund, helping the euro gain on the day despite the downward pressure from the ECB decision to ease monetary policy. The compromise allows Poland and Hungary a way to contest any decision that they were breaking the ‘rule of law’ provision for receiving funds. Under the new provision the two countries will be able to seek a ruling from the ECJ if funds get withheld for ‘rule of law’ violations. The passing of the deal opens up a huge wave of cash to lift European nations out of recession caused by the pandemic.
 

FDA approval

The next piece of the puzzle has happened in the US for turning around the coronavirus. An FDA advisory panel has approved the emergency use of the Pfizer / BioNTech covid-19 vaccine. This is generally seen as a sign the agency overall will approve it.
 

DAY AHEAD 

*Times in GMT
07:00    EUR    Germany Harmonized Index of Consumer Prices (YoY)(Nov)     -0.7 %    -0.7 %
13:30    USD    Producer Price Index (MoM)(Nov)                 0.2 %    0.3 %    
15:00    USD    Michigan Consumer Sentiment Index(Dec) PREL          76.5    76.9