The Big Scandal

By Felipe Nebesnyj Mon, Jul 12, 2021

Hey Scoopers,

Although closing in the red a day earlier, the stock market had a strong rebound on Friday. — More on that in the “Overall Market” section.

Beyond the overall market, a Chinese private education company has a new large stakeholder among its investors. Meanwhile, a biotech company was caught in a scandal involving its COVID-19 vaccine.— More on that in the “What’s Up?” and “What’s Down?” sections.

By the way, we have another scandal again involving BMW and Volkswagen.— More on that in the “Water Cooler” section.

But, first, here is a recap of what happened in the market yesterday:

• U.S. markets: The stock market ended in the green zone on Friday. Scroll down to the “Overall Market” section to read more.
• Cryptocurrency: Bitcoin’s price increased to $34K per coin.

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High Expectations

The stock market ended in the red zone on Thursday.

The stock market ended the day in the green zone last week.
Although slightly falling in the previous session, the markets jumped more than 1% to close the week with positive returns. The small rally came just before the Q2 earnings report season starts. As we start the new season, the banking sector traditionally releases the first reports, and analysts estimate higher-than-expected results for this season.

New Large Stakeholder

So, what happened?

Shares of TAL Education (Ticker: TAL) were up by more than 9% on Friday. Although the education company has gone through troubled moments as the Chinese government cracks down for-profit education institutions, a unit of UBS’ (Ticker: UBS) regulatory filing showed the asset management bank now holds a 4% stake in TAL. Although Chinese education stocks are not among investors’ favorites at the moment, the stake gave confidence to TAL’s stakeholders.

America’s Top Stock Cop Warns: “Do This BEFORE You Get the Vaccine.”

He predicted the coronavirus crash a month early…

He called the bottom of the crash too, on March 16.

Now, America’s top “stock cop” has an urgent warning for all Americans:

“Do this BEFORE you get the vaccine.”

Corruption Cases

So what happened?

Shares of Ocugen (Ticker: OCGN) were down by more than 3% on Friday. Although the biotech company shared positive news regarding its COVID-19 vaccine in a phase 3 trial, the news that the Brazil Supreme Court suspended a Covaxin deal dragged down Ocugen’s stock performance. According to the Brazilian regulators investigating the matter, government officials tried to close a deal to receive $1 per vaccine bought as a side payment. Although investigations have just started, the deal damaged the trust in the vaccine.

BMW & Volks Scandal

So what happened?

BMW (Ticker: BMWYY) and Volkswagen (Ticker: VWAGY) were fined more than $1 billion for colluding on cleaner tech. Last week, European regulators fined both motor companies by around 5% over their annual profits. According to the lawmakers, the two German companies colluded to avoid research and developments on emissions tech. Regulators found out about the scandal after Daimler agreed to expose the companies in exchange for immunity in the EU investigation. Volkswagen will have to pay $590 millIon. Meanwhile, BMW will have to pay more than $400 million. Had Daimler not disclosed the collusion’s information, it would have had to pay more than $900 million in fines.

If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.

About the Author

Felipe Nebesnyj is an Economics student who is passionate about the stock market and investing in the market. Originally from Brazil, he is working and studying in the U.S. and started learning about and researching the stock market at 16. Before joining Stock Card, Felipe worked on multiple stock market research projects that gave him the necessary knowledge and confidence to put into his stock market analyst career at Stock Card. Last but not least, he is an excellent violinist and enjoys video games.