Category: Top Global News

1. China’s Financial Markets Set for Calm Start After 8-Day Break

Chinese financial markets will trade for the first time this month on Friday. The Chinese yuan is up 0.7% in offshore (outside China) trading since its onshore (within China) counterpart last traded on Sept. 30, signalling more gains are ahead after the currency’s best quarter since 2008 versus the dollar. FTSE China A50 Index futures have risen 2.2% since the mainland stock market last traded. The Hang Seng China Enterprises Index, a gauge of mainland companies listed in Hong Kong, has gained 2.4% in that time.

China is unique among major economies to close its financial markets for long periods several times a year for major Chinese holidays.

2. Global Markets Advance on U.S. Stimulus Hopes

European stocks and U.S. futures rose as global markets extended a rally fueled by optimism that American lawmakers will reach a stimulus deal. The Stoxx Europe 600 Index edged higher and the MSCI Asia Pacific Index notched the fourth day of gains. The S&P 500 jumped 1.7% on Wednesday after overnight tweets from President Donald Trump advocating a part-by-part approach to the ongoing proposal for the U.S. economic stimulus package.

West Texas Intermediate crude gained 1.4% and Brent crude gained 1.5% per barrel. Gold strengthened 0.2%.

3. VP Debate: Pence Is Steady in Debate But Fails to Knock Harris Off Course

US Vice President Mike Pence’s job Wednesday night was to seem reasonable and reassuring after days of uncertainty stoked by President Donald Trump, who shook voters with his own chaotic debate performance last week and then alarmed the nation with his positive coronavirus test. In comparison, Pence’s debate performance with his Democratic opponent Kamala Harris achieved its goal. Harris landed her toughest attack of the night in the debate’s opening minutes — calling Trump’s handling of the virus “the greatest failure of any presidential administration in the history of our country.” Pence sought to defend the administration’s coronavirus response followed up with a criticism of Biden’s policies of more taxes, more regulation, banning fracking, abolishing fossil fuel, crushing American energy and economic surrender to China as a prescription for economic disaster for the U.S.

4. Ant Group Faces U.S. Resistance in Race to IPO Before Elections

Jack Ma’s (Founder of Alibaba) Ant Group has limited time to make its US market debut ahead of U.S. election. Now its bankers must fight with any potential delays coming from a debate in US Govt. over restrictions on this huge Chinese payments-based company. Discussions over how to restrict Ant — as well as Tencent’s payments systems — have accelerated among senior U.S. officials in recent week. Ant, China’s biggest payments company already has approval for its US listing but is waiting for a hearing with the Hong Kong stock exchange. That green light would need to come roughly by the middle of October if Ant aims to beat the U.S. presidential vote on Nov. 3.

Ant is said to be targeting a market valuation of $250 billion (18 lakh cr INR), which would make it one of the world’s most valuable financial firms ahead of Bank of America Corp. Its attraction rests on its reach into the pockets of more than 70 crore monthly users, most of whom are in China where the ubiquitous Alipay app offers everything from loans and travel services to food delivery.

5. Amazon Says Indian Partner Future Retail Broke Agreement After Ambani Sale Deal

Amazon agreed to purchase 49% of one of Future’s unlisted firms last year, with the right to buy into flagship Future Retail Ltd. after a period of between three and 10 years. But about two months ago, rival Reliance announced it would buy the retail, wholesale, logistics and warehousing units of the Future Group, almost doubling its footprint as India’s largest retailer. With the dispute, Amazon is going to war with Reliance in the race for India’s estimated $1 trillion (74 lakh cr INR) retail market, where online shopping is gaining ground. For Amazon, the Indian partner was crucial to strengthening its foothold after becoming the authorized online sales channel for Future Retail’s stores that sell everything from groceries to cosmetics and clothing.

6. China’s Solar Stocks Are Surging After Xi’s 2060 Carbon Pledge

China’s massive renewable energy industry has seen shares soar since President Xi Jinping announced the country aims to go carbon-neutral by 2060. The furious rally illustrates the growth potential investors see in China’s effort to go from the world’s biggest polluter to carbon neutrality. The shift could require anywhere from $5-15 trillion (400-1000 lakh crore INR) in investment, much of it in wind- and solar-power generation.

China is home to the most solar panels and wind turbines in the world and is also the leading manufacturer of both. Its companies are technology leaders in photovoltaic panels, which are seen as the leading source of future power. Government officials are already considering proposals to accelerate the adoption of clean energy, which would boost installations of solar and wind, in its next five-year plan, which begins in 2021.

7. More developing nations struggling to repay Chinese loans

Countries could face years of negotiations to rework their debt with China as a growing number of loans run into trouble following decades of aggressive lending by the world’s largest official creditor. Chinese lenders lack coordination and don’t follow standard relief terms to renegotiate the debt. An unprecedented global downturn brought about by the coronavirus pandemic is making it increasingly difficult for developing nations to repay private creditors and Chinese lenders. Chinese banks are unlikely to write off debts and may instead opt to delay principal repayments and extend the loan timelines.

8. Democrat Win in the U.S. Could Boost Asian Stocks

A Democrat win in next month’s U.S. election would boost Asian equity markets, while reducing the allure of the region’s bonds, according to money managers and strategists. A Joe Biden victory along with Democrats winning control of both houses of Congress is likely to create a substantial fiscal stimulus, benefiting Asian stocks by reviving the U.S. economy and trade flows, and a marked reduction in uncertainty currently facing businesses due to the trade war between U.S. and China.

9. Activists Protest at Adani’s Australian Mines against Water Plan

Adani Group’s mining arm in Australian continues to face protests even after the group has claimed that it has met the job commitments for the project. Early Thursday, a group of activists staged a protest at Adani’s Carmichael coal project’s rail corridor challenging the water use plan of the project by pumping water from the Suttor River. One of the protestors chained himself to the cattle grid along the road near the railway corridor attached to the project to stop work. Adani Mining reported that anti-coal activists interfered with their utility vehicles carrying workers to the railway construction site in Central Queensland; its employees were attacked and intimidated. 

10. Samsung to post 35% Increase in third-quarter profit as smartphone sales recover

Samsung Electronics Co Ltd’s September-quarter profit likely surged more than 30%, fuelled by strong smartphone sales and a rush order of memory chips from Huawei. Samsung, the world’s biggest memory chip supplier, is scheduled to announce preliminary July-September operating profit and revenue on Thursday. Profit likely rose 35% year-on-year.

While Samsung’s overall chip business was muted, orders from Chinese smartphone maker Huawei propped up sales. Huawei is said to have built stockpiles before U.S. sanctions from mid-September prevented it from buying chips made using U.S. technology without a license. Samsung’s smartphone profit, which accounted for one-third of earnings last year, jumped as handset demand rebounded after the COVID-19 pandemic reduced sales in the first half of 2020. Third-quarter smartphone shipments likely rose 48% compared to second-quarter sales.

1. Trump’s Tweets Shake Global Markets Again

Global markets were shaky in the early hours of Wednesday after President Donald Trump unleashed 40+ conflicting Twitter posts. Most Asian currencies crept lower amid uncertainty over the next round of U.S. stimulus. Trump’s tweets and retweets are boosting market volatility, which has already picked up this month after Trump tested positive for coronavirus as investors worry about the existing uncertainty surrounding the U.S. elections. 

2. U.S. Faces a New Wave of Economic Pain as Trump Halts Aid Talks

President Donald Trump stunned campaign advisers and allies in Congress by single-handedly halting any chance of a fresh coronavirus stimulus, making himself responsible of the blame for any more layoffs and market losses in the final weeks before the election. Trump’s decision ensures that Americans won’t receive stimulus checks before Election Day or an extension of at least $400 (INR 30,000) a week in unemployment benefits, funding for coronavirus testing and contact tracing and vaccine distribution. Earlier, it was intended to provide aid for specific industries including restaurants, live entertainment venues and airlines, as well as rental, mortgage, and food assistance for ordinary Americans impacted by the virus. The S&P 500 Index declined 1.4%, the largest drop in almost two weeks. The Dow Jones Industrial Average declined 1.3%. The Nasdaq Composite Index dipped 1.6%. The Nasdaq 100 Index sank 1.9%.

3. SoftBank Shares Climb to 20-Year High

SoftBank Group Corp. (a Japanese conglomerate with huge investments in major startups such as Oyo, Paytm, Grab, etc.) shares climbed to their highest in two decades, a sign of recovery from a rocky year marked by setbacks from the coronavirus and losses at startups such as WeWork. After a record fall in its share price in March 2020, SoftBank sold of $42.6 billion (INR 3 lakh crore) in assets to buy back its own stock. Softbank has unloaded its major shares in Alibaba, T-Mobile US Inc. among others, and sold chip designer ARM Ltd. to Nvidia Corp. earlier this year.

4. Apple to Hold Online Event to Unveil 5G iPhones on Oct. 13

Apple plans to reveal four redesigned iPhones with 5G wireless capability, upgraded cameras, faster processors and a wider range of screen sizes. The introduction of the new iPhones is occurring about a month later than usual after the company faced final testing and production delays due to the Covid-19 pandemic. The smartphone generates about half of Apple’s revenue and is the central driver of sales for AirPods, Apple Watches, and online subscription services.

5. Oil Falls After Stimulus Talks End And Stockpiles Seen Swelling

West Texas Intermediate for November dropped 1.8% and Brent for December settlement slid 1.4% after news broke out that U.S. President Trump intends to postpone talks about economic aid until after the elections, and an industry report signalling U.S. crude stockpiles rose for the first time in four weeks.

6. Italy’s New Trick to increase Consumer Spending by PM’s Tax Capture Trick

Italian Prime Minister Giuseppe Conte is about to embark on the country’s most experimental stimulus of the coronavirus crisis yet by pushing citizens to use digital methods of payment — and reduce tax avoidance as a result. Since Italians use credit cards much less than their euro-area peers, his government is working on a measure to refund 10% of payment card transactions, refunding a maximum of 300 euros (INR 26,000) per person, in a stimulus that runs until 2022. As a bonus, participating consumers will also qualify for a lottery with a prize pot totalling INR 1700 cr.

7. Eurozone braces for Economic Downturn in Upcoming Winter

German manufacturers unexpectedly cut production, underlining the risks resurgent infections pose for the economic recovery. Industrial output declined 0.2% in August following three consecutive gains. Economists had predicted an increase of 1.5%.

The French economy is set to slow in the last three months of the year as uncertainty and the risk of lockdowns stifle investment and consumer spending in the euro area’s second-largest economy.

Record new cases of Covid-19 are reigniting concerns about Poland’s economic outlook and strengthening the argument for the Central bank to leave the interest rate at 0.1%, economists say Polish interest rate won’t be raised until 2022.

The rapidly rising Covid-19 infection rate in Europe has pushed for fresh measures to combat the virus. This has led to lower forecasts for the euro area through winter.

8. Malaysia Outbreak Shows How Mishandled Elections Can Turn Deadly

For months, Malaysia appeared to have contained the coronavirus outbreak. On Tuesday, Malaysia logged a record 691 daily cases, with a third of them coming from Sabah — a state on the island of Borneo that held elections last month. Politicians from the federal capital campaigned in the state without adhering to social-distancing guidelines.​ The swift resurgence shows how election campaigns can trigger virus flareups if handled improperly.

9. Thai Citizens Oppose International Tourism on Virus Fears

A majority of Thais don’t agree with the government plan to reopen its borders to foreign tourists, citing lack of confidence in the government to avoid the second wave of the virus once the country reopens to international tourists. The tourism-reliant nation proposed to open its borders to provide some relief to the industry struggling to survive a six-month period without international visitors.

10. Netflix Wins India Legal Battle on Rogue Billionaires Series

Netflix Inc. won the right to stream a series featuring Indian tycoons who ran into trouble with the law, a victory that may boost its efforts to offer more local content in a crucial emerging market with a high chance of media censorship. “Bad Boy Billionaires: India” is a series that documents the stories of Vijay Mallya, Nirav Modi and Subrata Roy, founder-owner of the realty-to-shadow financier group, Sahara India, and B. Ramalinga Raju, of Satyam Computer Services Ltd. Netflix is aiming for a larger slice of the biggest open market in Asia, India, with more than 500 million smartphones users.

1. Trump’s reckless return to White House amidst warnings

The White House has become a breeding ground for viral contagion with at least 11 of the President’s staff either contracting the virus or — in the case of his daughter Ivanka — are working from home. Entire suites of offices sit vacant as Trump’s staff try to isolate him. There have been reports that his dramatic return was a desperate attempt to show strength and resilience of his candidature for the upcoming elections, but in reality, many medical commentators suggest the treatment he is undergoing is meant for severe strains of COVID-19.

2. The debate between the U.S. Vice Presidential candidates to take place tomorrow

A week after Trump and Democratic nominee Joe Biden had a combative and chaotic debate, Vice Presidential nominees Mike Pence and Indian-American Kamala Harris will meet tomorrow at Salt Lake City under dramatically different circumstances. With President Donald Trump fresh out of the hospital but still battling the coronavirus, both Pence and Harris will have to reassure voters that they can step into the presidency if either of their Presidential candidates become unfit to run the country.

3. Indian Rupee Gains Momentum against the US Dollar

During the pandemic, the reduced imports into the country resulted in shrinking trade deficits, along with $6.5 billion (INR 48,000 cr) foreign investments to purchase India’s underpriced stocks have led to a current account surplus, steadily helping it advance by more than 2% against the dollar in the third quarter.

4. Pandemic Rebound: Europe Stocks Slip After Recent Rally

European stocks pulled back from a two-week high and U.S. futures retreated after a rally yesterday when President Donald Trump left the hospital. The Stoxx Europe 600 Index fell 0.2%.
Germany’s new coronavirus cases jumped the most since mid-April, highlighting Europe’s struggles to keep the pandemic in check. Italy’s government is set to order stricter public measures.

5. Covid-19 Making a Dangerous Comeback in Most Parts of U.S.

Covid-19 is spreading again across most of the U.S., especially in rural America and smaller cities and raising tensions in New York City. Experts warn that school reopenings and upcoming colder weather may cause the situation to rapidly deteriorate. Similar concerns are emerging in Canada.

6. Oil Prices Rise on US Fed Stimulus Optimism

Oil rose further after the biggest gain since May on growing optimism for more U.S. fiscal stimulus. Oil futures added 1.2%, following Monday’s surge above $39 (INR 2900) a barrel. Crude rose on Monday as part of a broader market relief rally and aided by a strike in Norway that has shut fields and is curbing flows. Normalization of life in China where people are vacationing during the Golden Week holiday displayed China’s confidence in its economic rebound and public health measures, aided in positive demand for oil. But the outlook for global oil demand remains patchy with stricter lockdowns coming into force in parts of Europe.

7. 50 Crore Travelers Show China’s Economy Moving Past COVID

With the Covid-19 pandemic largely under control in China, the Golden Week holiday is putting on display the country’s confidence in its economic rebound and its public health measures. Through the first four days of the week-long holiday that started Oct. 1, some 42.5 crore people travelled domestically. The surge of activity stands in stark contrast to the rest of the world — the global tourism industry is expected to lose at least $1.2 trillion (INR 88 lakh cr!) in 2020.

8. Central Bankers Pivot From Rescue to Recovery After Record Recession

All central banks across the world have raced to the rescue by reducing interest rates and providing easing as the coronavirus triggered the steep global slump. Now, many monetary policymakers are standing by to do more if needed while signalling they keep interest rates on hold and stimulus programs in place for years to come to ensure the economies recover.

9. Australia Launches Fiscal Policy to Revive Employment

Australia unveiled a multi-pronged fiscal plan that increases its cash deficit (net debt of a country) by $153 billion (INR 11,200 cr), or 11% of its GDP to tackle the 8% unemployment rate – the highest ever in the last 22 years. S&P Global Ratings cut Australia’s AAA credit rating outlook to negative stating the pandemic and stimulus packages may still not revive the economy.

10. Singapore Races to Open its Borders: Worried about its Future

Upset after the record losses at the nation’s airlines and a drop of 98.5% traffic at Changi Airport (once Asia’s third busiest airport), the government says it can’t afford to wait a year or two for a vaccine to become widely available. The revival plan has an impact on hundreds of thousands of jobs, its location as an air transport hub, economic survival and Singapore’s relevance to the world.

BONUS: The Ultra-Rich Are Using Giant Home Loans to Raise Cheap Capital 🤯

Across major cities in the world, the ultra-rich have taken to mortgage their high-value real estate and properties to obtain hundreds of millions of dollars as capital from banks at tiny interest rates of 2-3%, reduced rates that came into effect due to the ongoing pandemic. The cost of capital in such cases is multi-fold cheaper than taking out personal or business loans. These funds are subsequently invested in stocks and financial assets that provide two to three times more return rate than the underlying interest rate on the loans.

Trump’s Improving Health Causes Global Markets to Calm

Stock markets rose on Monday on hopes that President Donald Trump could be discharged from hospital as early as Monday, easing some of the political uncertainty that shook global markets in the previous session. Doctors treating Trump have reported that they are pleased with the progress of his recovery. Australian stocks .AXJO jumped 2.37% for the biggest daily gain in almost two weeks. Japan’s Nikkei .N225 rose 1.39%. China’s financial markets are closed for a public holiday.

Euro zone economic recovery in danger as COVID-19 resurgence hits service industries

The euro zone’s economic recovery faltered in September with growing evidence that sectors and countries in the bloc are diverging as a resurgence of the coronavirus forces the reimposition of restrictions on activity. To support the bloc’s economy, the European Central Bank plans to make 1.35 trillion euros of additional pandemic-related asset purchases and the European Union has announced a 750 billion euro recovery fund due to kick in next year.

India and S.Africa ask WTO to waive rules to aid COVID-19 drug production

India and South Africa want the World Trade Organization (WTO) to waive intellectual property rules to make it easier for developing countries to produce or import COVID-19 drugs. The two countries called on the global trade body to waive parts of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which governs patents, trademarks, copyright and other intellectual property rules globally. This is important so that drugs will be made available promptly, in sufficient quantities and at an affordable price in the developing nations which are disproportionately affected by the pandemic.

Trump Cracks Down on H1-B Visas. Indian Firms May Benefit.

As the H1-B eligibility norms get tougher with additional federal review and new obligations for companies that bring in foreign workers to the US, there is an increasing possibility that such work may be relocated from the US to India – owing to India’s talent pool and economical pay scales.

AirAsia Shuts Shop in Japan, Hints at Shutting Operations in India

AirAsia, one of South-East Asia’s most popular budget airline carrier, has decided to cease all operations in Japan. The highly challenging operating conditions in the COVID-19 pandemic had aggravated their cash burn to unsustainable levels. AirAsia, once a poster-child of low-cost global air travel, is seeking to raise $600 million by the end of the year to stay afloat.

World’s Second-Biggest Chain Suspends Operations in the US and UK.

Cineworld, the world’s second-biggest cinema chain, said today it would temporarily shut all of its 536 Regal theatres in the U.S. and its 127 Cineworld and Picturehouse theatres in the United States and the UK, a move that would impact 45,000 jobs, as it deals with a significant downturn in the industry brought on by the coronavirus crisis.

U.K. Fears Economic Downturn From COVID-19 Resurgence and BREXIT with no Trade Deal

The combination of the emerging wave of COVID-19 cases and a failure to secure a post-Brexit trade deal with the European Union could cost the United Kingdom around 134 billion pounds ($174 billion) each year in lost GDP for the next decade, research by law firm Baker & McKenzie showed. Prime Minister Boris Johnson has set Oct. 15 as a deadline for clinching a post-Brexit trade deal which would kick in when the United Kingdom leaves informal EU membership at the end of this year.

Long term Jobelessness to Aggravate the Pandemic Induced Recession

According to a new study in the US, many people who have lost jobs at the start of the pandemic have remained unemployed for over six months. The phenomenon, called long term joblessness, is now threatening recovery from the Covid 19 pandemic induced recession, which is already considered as worse than the Great Recession. As per reports, a rising proportion of job losses appear to be permanently gone in the US (and probably in many other countries too).

Major Dubai-based Construction Firm Enter Liquidation

Arabtec Holding PJSC, the Dubai-based construction company that helped build Burj Khalifa – world’s tallest building and other engineering marvels in the United Arab Emirates such as  Louvre Abu Dhabi, Abu Dhabi’s Emirates Palace hotel announced Thursday it would enter liquidation, the final step in a long collapse from the country’s economic crisis a decade ago hastened by the coronavirus pandemic.
The collapse of Arabtec will likely have a further knock-on effect on the vital construction industry in Dubai as it remains attached to other major projects in the city-state.

China Pushes Joint Promotion of Belt-Road-Initiative with Bangladesh

Chinese President Xi Jinping said he stands ready with Bangladesh leaders to better align the two countries’ strategies and jointly promote the construction of his multi-billion dollar Belt and Road Initiative (BRI) to take the strategic partnership of the two countries to new heights. This China-initiated infrastructure project is a looming threat to India’s position in its the Indian subcontinent, as more of its neighbours enter strategic partnerships with China.