Record debt from 2020

Published on: 19-Jul-2020
Category: Trading
Last updated: 19-Jul-2020

Record debt from 2020

The corona crisis has already led to some record values ??in the economy. Low prices, high prices and global debt are currently leading to unprecedented levels. In the first quarter of the current year, according to the banking association Institute of International Finance (IIF), debt rose to $ 258 trillion, which is 331 percent of annual economic output. At the end of last year, debt was 320 percent of the world's gross domestic product.

There was a record bond issue in the second quarter. While the volume reached $ 12.5 trillion this year, it averaged $ 5.5 trillion last quarter. Bond purchases are complemented by additional government aid of $ 16 trillion.

Even if the debt continues to rise, there are profiteers during the crisis. This includes Amazon. The Mail order company has increased its share price by 80 percent since March and is still looking for new investments. The group recently joined the start-up Zoox, which operates in the field of autonomous driving. In addition to technology, Zoox also wants to build its own cars. These are vehicles without a steering wheel, but with a pre-installed route that was originally intended for local public transport. However, the technology is also conceivable for Amazon's logistics and would offer the group more independence from parcel deliverers. Amazon boss Jeff Bezos also wants to work with Zoox to enable competitive goods delivery that can keep up with Google's Waymo.

Another original winner of the crisis who is now unable to meet high expectations is Netflix. The streaming service recorded a course gain of 50 percent in the first half of 2020 and a total of 193 million paid memberships by June. Revenue increased a quarter to $ 6.2 billion year on year, and revenue doubled to $ 720 million. From March to June, Netflix had 10.1 million new paying customers. This exceeded their own forecasts, but did not meet investors' expectations. During the lockdown and exit restrictions, the streaming provider did not reach the numbers that made the price so high.



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