1. U.S. Stocks Advance on Stimulus Hope
U.S. stocks rose as lawmakers race to finalize a stimulus deal before the Nov. 3 election. The S&P 500 rebounded from Monday’s selloff over reported differences in stimulus negotiations. Overnight gains faded after the U.S. Justice Department said it was poised to sue Google for allegedly abusing its power. In Europe, UBS rose with banking stocks after the Swiss firm’s traders performed better than most of their Wall Street rivals in the third quarter. Tech shares were among the biggest decliners.
The S&P 500 Index gained 0.6% early morning New York time.
The Nasdaq 100 Index advanced 0.6%.
The Stoxx Europe 600 Index decreased 0.3%.
The MSCI Asia Pacific Index dipped 0.3%.
2. American Justice Department to file landmark anti-trust case against Google on Tuesday
The U.S. Justice Department is expected to file a lawsuit Tuesday alleging that Google has been abusing its online dominance in online search to stifle competition, harm consumers and boost its profits. The litigation marks the government’s most significant act to protect competition since its groundbreaking case against Microsoft more than 20 years ago. Critics contend that multibillion-dollar fines and mandated changes in Google’s practices imposed by European regulators in recent years weren’t severe enough and that structural changes are needed for Google to change its conduct.
3. Singapore Wins Against COVID-19; Sees Last Phase of Pandemic Curbs
Singapore is looking to ease up more on pandemic curbs, with the size of social gatherings possibly raised to 8, in a further step toward normalized activity as new daily coronavirus cases reach near zero. Phase Three, which may start by year-end, would allow the following easing of measures, the Ministry of Health said in a release on Tuesday, while also outlining a pilot program for on-site testing of attendants at large-scale gatherings. Higher-risk settings like bars, karaoke lounges and nightclubs aren’t expected to reopen as activities pose a higher risk of transmission. The city-state will gradually allow more travel to resume, and is exploring ways to deploy more frequent testing to let more travelers enter Singapore without needing to quarantine.
4. Sweden Bans Huawei, ZTE From New 5G Infrastructure
Sweden has banned Huawei and ZTE from gaining access to its 5G wireless networks, adding to the increasing number of European governments forcing local telecom companies to shift away from Chinese suppliers. The Swedish Post and Telecom Authority said in a statement Tuesday that the “influence of China’s one-party state over the country’s private sector brings with it strong incentives for privately owned companies to act in accordance with state goals and the communist party’s national strategies.”
5. Cathay-Pacific to Cut 6,000 Jobs and Close Dragon Brand
Cathay Pacific Airways will cut 6,000 jobs and close its Cathay Dragon brand, as part of a strategic review to combat the deep damage caused by the coronavirus pandemic. The Hong Kong-based airline is expected to officially announce the plan after the market closes on Wednesday. It initially planned about 8,000 layoffs globally, but after government intervention reduced that to 18% of its total workforce, including some 5,000 jobs in Hong Kong. The company posted a $1.3 billion (INR 9500 cr) loss in the first half. Cathay said in September it wouldn’t survive unless it adapted its airlines for the “new travel market.”
6. EU May Shut Door to Travel But Allow Singapore Visitors
The European Union plans to shut inbound travel from most countries across the world amid the coronavirus pandemic. The EU intends at the same time to reopen its doors to travelers from Singapore as a result of improved virus trends there. The U.S. will remain blacklisted along with most other countries in the world. The changes would be the first in more than two months to the EU’s recommended travel “white list,” shrinking it from 11 foreign nations at present to nine. The other eight are Australia, China, Japan, New Zealand, Rwanda, South Korea, Thailand and Uruguay.
7. India Considers Taiwan Trade Talks as Both Fight With China
Support is growing within India’s government to formally start talks on a trade deal with Taiwan as both democracies see relations with China deteriorate. Taiwan has sought trade talks with India for several years, but Prime Minister Narendra Modi’s government has been reluctant to move ahead because it would involve a messy fight with China once any pact is registered at the World Trade Organization. A trade deal with Taiwan would help India’s goal of seeking greater investments in technology and electronics. It is unclear when a final decision would be made on whether to start talks.
8. Alibaba takes over China’s top hyper-mart chain for $3.6 billion
China’s e-commerce behemoth Alibaba has bought a controlling $3.6 billion (INR 26,400 cr) stake in Sun Art which runs hundreds of hypermarkets on the mainland for French shopping giant Auchan. The move to take a 72% ownership in Sun Art tightens Alibaba’s grip on China’s vast e-commerce sector as it looks to soak up the new customers pushed online to buy groceries, fresh food and healthcare products by the coronavirus. It also hands over control of 140 million square feet of retail space in scores of cities across the country.
9. Nokia and NASA are going to build a mobile network on the moon
Finland’s Nokia has been selected by NASA to build the first cellular network on the moon. The lunar network will be part of the U.S. space agency’s efforts to return humans to the moon by 2024 and build long-term settlements there under its Artemis programme. Nokia said the first wireless broadband communications system in space would be built on the lunar surface in late 2022, before humans make it back there. Nokia will partner with Texas-based private spacecraft design firm Intuitive Machines to deliver the network equipment to the moon on their lunar lander. After delivery, the network will configure itself and establish the first LTE (Long-Term Evolution) communications system on the moon. The network will provide critical communication capabilities for many different data-transmission applications, including vital command and control functions, remote control of lunar rovers, real-time navigation and streaming of high definition video.
10. Defeat for Trump Would Mean Some Other Leaders Also Lose Out
If Donald Trump is forced from the White House in the November election, he won’t be the only loser. Though many governments would likely celebrate the end of the most unconventional and chaotic U.S. presidency of modern times, others will have reason to miss it. For the leaders of Turkey, North Korea and Israel, the ledger has been almost entirely positive. Trump’s ejection would confront them with immediate challenges. The scorecard for countries like China is more nuanced. Even so, what the mostly authoritarian winners from Trump’s four years in office have in common is a fear his departure would spell the return of a more conventional U.S. foreign policy. That could see the U.S. mending alliances and promoting the universality of values such as democracy and human rights, or the fight against climate change.
