EU attacks again, cannabis market and Republicans

١١ نوفمبر ٢٠٢٠

After the euphoria that reigned in the financial markets related to the news from Pfizer (according to data analysed by Reuters, nearly $2 trillion changing hands on Monday), the markets calmed down somewhat on Tuesday. Both new pandemic records and the statement by Republicans that they support Trump's desire to challenge the election results returned to reality. Markets took this as a hint that the Republicans are unlikely to become much more compliant after the elections, and the Democratic edition of the stimulus bill will not be able to pass in a short time.

Weak data from ZEW on business sentiments in the Eurozone and Germany, as well as EU threats to impose new taxes on digital companies, also did not contribute to the growth of optimism. In addition, the European Commission launched an attack on Amazon, accusing the company of "distortion of competition", illegal data collection, misuse and other deadly and not very deadly sins.

The change of power in the United States means quite a lot of tectonic and not so much shifts in the financial markets and not only. We have already written that the stocks of cannabis producers may again be in the spotlight, as it was already in the fall of 2017, when Canada legalized cannabis in the country.

In the end of 2017 the shares of companies like Canopy Growth, Aurora Cannabis, GW pharmaceuticals have grown exponentially in a matter of months. So over the last month, the first two have already added about 100% to their October prices and, apparently, this may be just the beginning.

The US House of Representatives is set to vote in December to legalize the use of cannabis. At the same time, in a number of states, during the latest elections, referendums were also held on the legalization of medical or recreational marijuana. Since the vote was successful, there is reason to expect the opening of one of the largest cannabis markets in the world. And this cannot but lead to an increase in the shares of companies that are world leaders in the production of marijuana: Canopy Growth and Aurora Cannabis.