1. Cyclicals Lead Global Stocks Higher; Dollar Drops
Cyclical companies are powering global equities higher for a second day as investors cheered the start of U.S. President-elect Joe Biden’s formal transition and the prospect for more economic stimulus. Futures on the S&P 500 outpaced contracts on the tech-heavy Nasdaq as investors doubled down on economically sensitive sectors such as travel and energy. Oil and gas shares led the Stoxx 600 Index higher. EasyJet and International Consolidated Airlines Group SA rose after England planned to cut its quarantine period for arrivals from high-risk countries.
Futures on the S&P 500 Index rose 0.8% as of early morning New York time.
The Stoxx Europe 600 Index rose 0.6%.
The MSCI Asia Pacific Index rose 0.9%.
The MSCI Emerging Market Index was little changed.
2. Bitcoin Pierces $19,000 for First Time Since 2017
Bitcoin surpassed $19,000 (INR 14 lakh) for the first time since 2017 as the mania over digital currencies continues to grip Wall Street. Bitcoin climbed as high as $19,103 before paring the advance, trading up 2.2%. Prices are approaching an all-time high with many pointing to the wider acceptance of cryptocurrencies among traditional investors as the catalyst behind the surge. PayPal Holding Inc.’s October decision to allow customers to access cryptocurrencies led the coin to spike above $13,000 for the first time in over a year. And Fidelity Investments launched a Bitcoin fund over the summer.
3. Elon Musk Overtakes Bill Gates to Grab World’s Second-Richest Ranking
Elon Musk’s year of dizzying ascents hit a new apex Monday as the Tesla co-founder passed Bill Gates to become the world’s second-richest person. The 49-year-old entrepreneur’s net worth soared from $7.2 billion to $127.9 billion (INR 9.5 lakh cr), driven by yet another surge in Tesla’s share price. In January he ranked 35th. His advance up the wealth ranks has been driven largely by Tesla, whose market value is approaching $500 billion. About three-quarters of his net worth consists of Tesla shares, which are valued more than four times as much as his stake in Space Exploration Technologies Corp., or SpaceX.
4. Biden Begins Formal Transition After Trump Yields on GSA Process
President-elect Joe Biden and his team will begin to delve into Donald Trump’s coronavirus vaccine planning and assess the condition of federal agencies after the president relented and allowed the transition planning to begin. After weeks of inaction, the chief of the General Services administration acknowledged Monday that Biden was the “apparent winner” of the Nov. 3 election. The shift came after the key swing state of Michigan certified Biden as the winner, at least nine Republican senators called for the transition to begin and the Trump legal team suffered fresh setbacks.
5. UAE Allows Full Foreign Ownership of Firms to Boost Economy
The United Arab Emirates abolished the need for companies to have Emirati shareholders, in a major shake-up of foreign ownership laws aimed at attracting investment into an economy reeling from the coronavirus and a decline in oil prices. The amendments to the 2015 commercial companies’ law remove key provisions requiring that a company be chaired by an Emirati national and for the board of directors to be majority Emirati, citing changes issued by the country’s president. The rules come into effect on Dec. 1 and are the latest in a series of measures aimed at liberalizing business activity in the UAE, where foreigners comprise more than 80% of the population. The amendments are designed to reduce costs for companies and attract foreign entrepreneurs often put off by regulations demanding they hand 51% of their business to locals in order to operate onshore.
6. Millions of Americans Expect to Lose Their Homes as Covid Rages
Millions of Americans expect to face eviction by the end of this year, adding to the suffering inflicted by the coronavirus pandemic raging across the U.S. About 58 lakh adults say they are somewhat very likely to face eviction or foreclosure in the next two months, according to a survey completed Nov. 9 by the U.S. Census Bureau. The CARES Act, signed into law last March, allows homeowners to pause mortgage payments for up to a year if they experience hardship as a result of the pandemic. Borrowers who signed up at the start of the program could face foreclosure by March. The Centers for Disease Control and Prevention’s nationwide temporary suspension on evictions — aimed at stemming the spread of coronavirus — is slated to end Dec. 31. The timing is far from ideal given millions of people are also set to lose their unemployment benefits at year-end without an extension from Congress.
7. Boris Johnson Ends England Lockdown But Tougher Regional Rules Follow
Prime Minister Boris Johnson confirmed England’s national lockdown will end next week, to be replaced by a tougher three-tier system of regional restrictions designed to last until spring next year. Ministers are drawing up plans to allow rules to be relaxed across the U.K. in time for Christmas and Johnson said if all goes well with the roll-out of vaccines, “the vast majority” of people who need a shot will get one by April. Under the new rules for England, from Dec. 2 shops, hairdressers and gyms will reopen across the country, but bars and restaurants will be take-away only in areas under the tightest restrictions. The government will announce on Thursday which tiers regions are being placed in after looking at the latest data on infections.
8. Xiaomi’s Sales Grows Fastest in Two Years After Huawei Slide
Xiaomi posted its fastest pace of revenue growth in more than two years after the Chinese smartphone giant grabbed market share from Huawei when American sanctions deepened. China’s No. 2 smartphone name reported a stronger-than-anticipated 34.5% rise in sales in the September quarter. More than half of that originated beyond its home country for the first time as Xiaomi took advantage of Huawei’s retreat to delve deeper into markets from Western Europe to India, where it widened its lead. The company has been among the biggest beneficiaries of the Trump administration’s campaign to ban Huawei and contain China’s technological ascendancy.
9. Russian COVID-19 vaccine to cost less than $20, free for citizens
Russia’s two-shot Sputnik V COVID-19 vaccine will cost less than $20 per person on international markets and will be free of charge for Russian citizens, according to a statement on the official Sputnik V Twitter account. Kirill Dmitriev, head of Russia’s RDIF sovereign wealth fund, told the Reuters news agency Sputnik V earlier on Tuesday that it would be priced significantly lower than rivals with similar efficacy levels. Sputnik V vaccine is 95 percent effective according to second interim analysis of clinical trial data, developers say.
10. Japan and China Agree to Restart Two-way Travel by End November
The foreign ministers of China and Japan agreed at a meeting in Tokyo to lift some virus-related travel restrictions by the end of the month, while also re-stating their differences over disputed islands in the East China Sea. Foreign Minister Wang Yi is the first senior Chinese official to visit Japan since Prime Minister Yoshihide Suga took office in September. The two men are set to meet Wednesday, as China seeks to recalibrate its ties with key American allies ahead of U.S. President-elect Joe Biden’s inauguration next year. Suga, who has little experience of diplomacy, must strike a delicate balance between the U.S., Japan’s only formal military ally, and China, its biggest trading partner.
Curated from Bloomberg.com
