Element ONE

Issuer: ELEMENT ONE LTD 
ISIN Number: VGG299771086
Issue Description: USD CL B SHS
ISO CFI: CICXXX

In June 2020 Element ONE Fund showed a negative result -1,97%.

SP500

In June, the US stock market showed almost neutral dynamics, increasing only by 0.47%. During that, the maximum was $3,227; the minimum was $2,988.

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The world demand for the USD also continued to decline in June. In June, the US stock market showed almost neutral dynamics, increasing only by 0.47%. During that, the maximum was $3,227; the minimum was $2,988.

The world demand for the USD also continued to decline in June.
The US Dollar Index Futures was down to 0.93% and closed at 97.35.
The Russian ruble has fallen in price against the dollar.
The USD / RUB currency pair added 1.47%.
The US Dollar Index Futures was down to 0.93% and closed at 97.35.
The Russian ruble has fallen in price against the dollar.
The USD / RUB currency pair added 1.47%.

Labor market

USA, unemployment rate (May): 11,1%

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RUS, unemployment rate (May): 6,1%.

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World trade

IMF: 2020 forecast for world trade is -11.9%.

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The balance sheets of global central banks are collectively just under $22 trillion.

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Oil



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The oil market showed an upward dynamic. The cost of Brent oil rose by 11.53% - from $35.21 to $39.27.

OPEC retained its forecast for a drop in global oil demand in 2020 at 9.1 million barrels per day.

OPEC also retained its forecast for a fall in oil production in the United States in 2020 by 1.13 million – around 11.1 million barrels per day.

Russia: oil production from June 1st to June 28th = 8.52 million barrels per day (quota - 8.49 million).

Norway has no plans to cut oil production

Sanctions

• The United States announced new sanctions against Syria.
• Trump signed into law sanctions against Chinese officials for actions against Hong Kong; China plans countermeasures.
• The European Union has extended the sanctions on Crimea for another year.

Trade wars

• US Treasury Secretary Stephen Mnuchin does not rule out a complete break in economic relations with China.
• The US is imposing tariffs on aluminum from Canada.
• India plans to introduce tariffs on Chinese goods.
• The United States has tightened restrictions on technology exports to Russia.

Geopolitics

• Yemen army reports a massive attack on Saudi Arabia.
• Russia continues to strengthen the western grouping of forces in response to the fact that NATO countries are strengthening their air defense and missile defense systems.
• China is deploying troops to the border with India. In Delhi, soldiers were allowed to shoot the Chinese to kill.

Crisis

The Fed continues to print money to save the stock market. Trump approves the introduction of a new package of support for the US economy, which could go to Congress in July.
The Fed plans to expand its credit program for non-profit organizations.
Since the beginning of 2020, large companies in the United States have filed 111 bankruptcy claims.
Morgan Stanley: The US federal budget is facing the highest deficit since 1943.

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JPMorgan: The current recession is the deepest and shortest in 100 years.

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Comments from the officials

• Jerome Powell, Fed Chairman:
1) huge uncertainty about the speed of economic recovery;
2) we will use all the tools to save the economy;
3) low rates will persist for an extended period.

• Donald Trump, President of the United States:
There should be negative rates in the United States.

• Larry Kudlow, White House Economic Advisor:
All indicators speak of a V-shaped US economic recovery.

Gold

In June, the price of gold increased by 2.90% - from $1,749.8 to $1,800.5.

691The overall commodity market, represented by the Invesco DB Commodity Index Tracking Fund (ETF), rose by 4.94%, from 11.73 to 12.31.

610

COVID-19

In June, the number of infections increased worldwide as restrictions were lifted.

The head of WHO: the worst is yet to come, the global growth of infections is accelerating, we expect a vaccine by the end of 2021.

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Element ONE Fund

In June, public ideas of the fund analysts showed excellent returns.

On June 3, with a result of 30.67%, the shares of Restaurant Brands International Inc. (NYSE: QSR) were partially sold.

On June 5,Disney (NYSE:DIS) shares reached a target price of $125. The final result was 23.76%

On June 5, after the stop loss was set at NOK 450,Salmar (OSL: SALM). shares were liquidated. The yield was + 0.65%. 

At the end of the month, the Breakwave Dry Bulk Shipping (NYSE:BDRY) exchange-traded fund for freight showed a result of more than + 46%, third of the positions were closed. 

The positive results allowed our team to rise on the invest-idei.ru analyst rating. Raison Asset Management is tied for 5th place with Amaday by Raison.

Despite the excellent performance of individual ideas and public trading, the fund's shares showed negative dynamics in June, closing the month at $1,605.03, losing 1.97%.
We are worried about the increase in the total number of infected with COVID-19 and are actively hedging positions, as we believe that even the first wave of the pandemic is not over yet. In the current conditions of increased volatility, the cost of risk reduction is quite high, which affects the final profitability.