Market Wrap

Market Wrap: UK government advised to help prevent poor diets, Elon Musk 'hates' being CEO of Tesla

Andrew Saks, Friday, 16 July 2021

Estimated reading time: 6 minutes

ETX Capital Market Wrap

National Food Strategy report calls for historic reforms of the food system – including prescribed vegetables and a tax on salt and sugar

Sugar and salt tax: breaking the 'junk food cycle'

In 1949, English dystopian writer George Orwell made enough predictions about the method of government in the future that he wrote an amusing but horrifying novel about it. For many who have read it, the only inaccuracy was the date – it should have been titled '2020/21'.

This week, Henry Dimbleby, Eton-educated founder of fast-food chain Leon (and friend of many senior UK government officials) has advised those senior officials that a 'tax' should be levied on high-calorie food and drink products. The businessman led a National Food Strategy report, an independent review of the food we eat.

In what can be seen as a case of the pot calling the kettle black, Mr Dimbleby's statements had no bearing on the price of major food producing company stocks. Instead, Kellogg's and Nestle – both owners of some of Britain's largest brands – rose nicely in the markets.

By the way, we're now on Telegram! Join our channel and stay ahead of the markets.

Elon Musk wants his P45, yet Tesla stock soars

Fickle-yet-calculated technology disruptor Elon Musk has had a go at the media again, saying that he does not like his job as CEO of Tesla but the company “would die” if he stepped down.

That may seem bizarre on the face of it, but analysing it a bit further, it is not that odd at all. This is a man who looks for the next 'thing' all the time. He is an innovator and influencer, and a man who manages to move markets in 24-hours by sums of money larger than some countries' annual GDP.

This can be seen as another of Musk's clever dialogues – he propagated it in the US and European news and Tesla shares are up as a result. Confidence in Tesla is once again back in the hands of the unpredictable which is, to a large extent, representative of today's world.

It's interesting that Musk claimed to not enjoy being Tesla CEO, considering the company's success is a large contributor to his fame and rise to being one of the richest men in the world.

Whenever he opens his mouth, even if it is derogatory, the markets move. In this case, just as the last case, the price of what he talked about went up.

♪"And the words of the prophets were written on the stock market walls"♪

In the early 1980s, Canadian rock band Rush became famous for a fabulous experimental fusion of rock, reggae and pop when their single 'The Spirit of Radio' hit the charts.

On Monday, the spirit of radio was clearly very much alive and well. NASDAQ-listed MediaCo Holding became a stock market star, its share price rising by a remarkable 300% on Monday morning to $17 per share – a five-year high by a huge margin.

In the era of internet radio, television and interactive media, the value of legacy media firms has been relatively stagnant. However, this week began with MDIA seeing a 311% percent rise over the previous trading day's price and a 188% rise over the past five years.

Mark your calendars (times below are in UK time)

At 10am on Monday July 19, the construction output figures for May will be announced and are expected to be down 2.17%. Then at 2pm, France's three, six and 12-month BTF auctions will be revealed – estimated to be approximately down by 0.64%.

Just into Tuesday at 12.50am, Japan will announce its exports on a year-on-year basis for June, expected to be 49.6%. At 7am, Germany will reveal its PPI index figures for June – assumed to be 7.2% and up considerably from May's 6.4%. Then at 4.30pm, New Zealand will announce its Global Dairy Trade Price Index, expected to be a negative figure of 3.6%.

On Wednesday, Japan will reveal its trade balance for June, which at an estimated -189 billion yen is a stark contrast to the positive 460 billion figure in May. Later that day, at 3.30pm, it will be confirmed that US crude oil imports are down by 1.59 million barrels.

Thursday will see the announcement of Japan's foreign bond buying figures – a negative figure of 1217.8 billion yen is likely.

Finally, at 1.30pm on Friday, Canada's core retail sales will be confirmed. The numbers are set to be down 5.7% for May and have declined by 7.2% on a year-on-year basis.


Share article

Trading Platforms

Access thousands of markets and trading opportunities with our award-winning trading technology.

Discover Platforms

Trading Courses

New to trading? Our free courses will give you a comprehensive introduction to all the fundamentals of trading.

Free Courses

Trading Webinars

Take part in our free basics or advanced online trading courses to enhance your trading knowledge.

Free Webinars

About ETX Capital

ETX Capital is a trusted trading provider that offers innovative technology and tailor-made services for all areas of electronic trading across commodities, equities, forex, and indices.