Today's big stories

The International Energy Agency lowered its global oil demand forecast
eToro’s best stockpickers shared six mistakes they made so you don’t have to – Read Now
Bankrupt payments firm Wirecard will be kicked out of Germany’s major stock market index

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Gone AWOiL

What’s Going On Here?

After months spent looking high and very, very low for global oil demand, the International Energy Agency (IEA) slashed its forecasts for the slippery elixir on Thursday (tweet this).

What Does This Mean?

No prizes for guessing what’s to blame for the IEA’s bad mood: the pandemic-driven collapse in demand has ravaged oil prices, and the agency can’t see an easy journey back. Not least because there’s still such low demand for jet fuel: data suggests it’s a long way off what it'd normally be at this time of year in North America and Europe, and even worse in regions like Latin America where the virus is spreading like wildfire. And if globetrotters and holidaymakers keep passing up on those vacations of a lifetime, that low demand won’t be rebounding any time soon…

Why Should I Care?

For markets: On the OPEC+ side...
The price of oil is still a long way below pre-COVID levels, but the situation has improved since OPEC+ – the group of oil-producing countries and its allies – agreed to temporarily reduce oil production in April. That cut in supply should, at least in theory, help balance out lower demand and spur oil prices higher. But with that languishing demand expected to continue, the group’s ongoing cooperation will be essential if they want to keep prices propped up. And for a group notorious for its infighting, that’s not exactly a given.

The bigger picture: Can’t catch a break.
The IEA’s shift comes hot on the heels of an abysmal quarter for big oil companies, several of which swung to losses from profitability a year ago. Low oil prices, after all, cause havoc for oil companies that earn their livings from extracting the commodity and selling it on. If the agency is right and demand is slow to bounce back, oil investors banking on the industry’s speedy recovery may be forced to think again.

Take action: Three ways to play falling oil demand.

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2/3 Premium

How Not To Invest

What’s Going On Here?

Some of eToro’s best-performing investors this week shared six lessons they’ve learned about what not to do – and even seasoned Finimizers may want to pay attention.

Get the full story with Finimize Premium

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3/3

The Sunken Place

What’s Going On Here?

German fintech Wirecard has been told to get out… get out… of the country’s key stock market index next week so that someone else can take its spot.

What Does This Mean?

Back in June, Wirecard revealed that $2 billion of cash it claimed to have was missing – only to eventually concede that the money probably never existed in the first place. The company duly filed for insolvency, effectively admitting it didn’t have enough cash to meet its obligations.

Fast forward to Wednesday, and Deutsche Börse – the German stock exchange that also owns the country’s key stock market index of its 30 biggest companies – decided to give its rules a shake-up. Rather than wait for a regularly scheduled “rebalancing” – in which companies whose valuations have risen significantly swap places with those that have fallen – insolvent firms can now be booted out and replaced within a matter of days. And that’s exactly what’ll happen to Wirecard next week.

Why Should I Care?

For markets: Delivery Hero or Delivery Vigilante?
The biggest companies in any country are often described as “blue-chip”, given their reputation for operating profitably in times good and bad. Germany’s all-star group includes industrial conglomerate Siemens and software giant SAP, both of which analysts reckon are about to be joined by food delivery platform and lockdown beneficiary Delivery Hero. But some investors are skeptical: Delivery Hero’s never turned a profit, so its inclusion would arguably lower the resilience of the entire group.

Zooming out: Guilt trip.
Wirecard’s former CEO and a few other execs accused of fraud were arrested last month, but its chief operating officer managed to evade capture. German police even launched a widespread search for him on Wednesday, while Interpol added his name to its wanted list. Given all the hullabaloo, it’s perhaps no surprise Deutsche Börse wanted to distance itself from the company. Let’s just hope there are no skeletons in any more German industry stalwarts' closets…

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💬 Quote of the day

“I’d never met coffee that wasn’t wonderful. It was just a matter of how wonderful it was.”

– Laurell K. Hamilton (an American writer)

Tweet this

👶 They grow up so fast

Just look at China’s millennials: one moment they’re running around getting scrapes on their knees, the next they’re fundamentally reshaping the global economy. We’re so proud we’ve organized an event in their baby-faced honor.

🇬🇧 UK: The Pathway to Homeownership – 5.30pm UK Time, August 15th
🇭🇰 Hong Kong: The Rise of Young China – 9pm Hong Kong Time, August 18th
🇦🇪 UAE: Is The Worst Over For Oil? – 5pm Dubai Time, August 20th
🇬🇧 UK: Create your Financial Fitness Plan – 2.30pm UK Time, August 26th
🇩🇪 Germany: The Rise of Sustainable Investment – 11am Berlin Time, August 27th
🇬🇧 UK: Build Your Own Investment Portfolio – 11am UK Time, August 28th

📚 What we're reading

Floppy disks won’t die (Gizmodo)
Will we take the right lesssons from COVID? (National Geographic)
Scientists find 33 year-old star, loves avocado (Futurism)

👻 Oil gets a little bit more frightening

Today's big stories

Gone AWOiL

What’s Going On Here?

What Does This Mean?

Why Should I Care?

How Not To Invest

🎁 A treat from Crypto.com

The Sunken Place

What’s Going On Here?

What Does This Mean?

Why Should I Care?

👶 They grow up so fast

Older messages

💸 Extra Tesla shares for you

👑 Aramco loses its crown

🚫 America puts WeChat on notice

🎉 New Events: Fashion’s New Style, The Racial Wealth Gap, & The Pathway to Homeownership

💉 Investors don't want a coronavirus cure

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