Japan Sold 80 Tons of Gold

17/12/2020

For the last nine months, oil reached its high on Thursday, according to the government report on the US crude stockpiles downgrade the previous week. Two factors are influencing it: the US stimulus bill and the Asian demand for oil-product consumption. The US administration is almost to enter into the agreement on a $900 billion virus relief package that will stimulate oil prices. The news headlines from recently have been strongly advocating the oil industry. 

For the time being, Japan sold 80 tons of gold to another government branch to provide a financial incentive in frames of the stimulus package to overcome the COVID-19 pandemic-induced crisis. The country's economy is suffering due to the debt and reduced tax revenue, and now, the finance minister has to find a way to deal with the consequences of the health emergency. One solution involves the central bank -  by selling the portion of dollar reserves to the Bank of Japan. With the received yen, the branch purchased gold from another department of the ministry overseeing the debt management. This unusual arrangement of the gold sale helped to gain 500 billion yen.  

The deal testifies to the complexity of managing the public debt in Japan's industrial world; the budget deficit has increased after the fiscal spending in the past twenty years. 

Based on the statistical figures that came on Thursday, 17.12.2020, car sales in Europe declined by 13.5 percent in November; the same picture was seen in October.

The coronavirus pandemic has affected the continent's largest markets. Sales of Renault (PA: Rena) and Volkswagen (DE: VOWG-p) dropped by 14 percent each, while PSA reported a fall of 12 percent.

The market cap of luxury automakers significantly decreased in November. Daimler (OTC: DDAIF) has plunged by 15.5 percent and BMW, by 8 percent.