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Why was Jack Ma’s Ant IPO Stalled?

  • The Ant Group, which was earlier known as AliPay and Ant Financial, is an affiliate company of Billionaire Jack Ma’s Alibaba Group. The Ant Group recently announced, what is called the world’s biggest IPO to raise $34 Billion(approx Rs 2.51 lakh crore), with the company’s valuation standing at $313 Billion. A day before the IPO was to be launched, it was called off due to problems with the Chinese regulators. Some say it was because of a direct scuffle with the Communist Party of China. It is also said that Xi Jinping, the party supremo and President of the People’s Republic of China, directly is involved in stalling the IPO. Let us take a peek into the history of Ant Group and the problems that surrounded the IPO.

From AliPay to Ant Group

AliPay was launched in 2003 as a payment platform/gateway for the e-commerce platform Taobao. Taobao is a subsidiary of the Alibaba Group. AliPay’s slick payment app is synonymous with the UPI or digital payment gateway services in India like PayTM, GPay, BharatPe, MobiKwik, etc.

Years back, e-commerce wasn’t really trusted since it was a fairly new concept. There was a lack of regulation and a lack of trust between buyers and sellers. Transactions were pretty much direct. The buyers doubted that the sellers will dupe them of the money and not deliver the product. The sellers were afraid that the customer might not pay as was necessary. Moreover, if the product turned out to be faulty or misplaced, there was no sure-shot refund method. Maybe you have also used cash-on-delivery while ordering goods from Flipkart back in the day. To address this problem in China?, the Alibaba Group came up with AliPay.

AliPay would receive payment for an order from a buyer and keep it in a third account for the time being. Once the buyer received the order promptly and in proper condition, AliPay would transfer the money to the seller’s account. In case of discrepancies, the amount would be refunded and the product would be shipped back. This laid the basis of modern e-commerce across the world.

AliPay then went on to be rebranded into its parent company, Ant Financial, which later became Ant Group. Ant Group ventured various different financial services and products and services. Most of its revenue came from its online lending businesses(39.4%) followed by digital payment and merchant services like AliPay(36.9%). Their products include:

  • Alipay – a mobile wallet app that supports make and accept payments.[59]
  • Huabei (Ant Credit Pay) – a virtual credit card type of product that facilitates credit payments.
  • Jiebei (Ant Cash Now), a consumer loan service.
  • Ant Insurance Services.
  • MYbank – a cloud-based private online bank
  • Ant Fortune – a comprehensive wealth management app.
  • ZOLOZ – a global biometric-based identity verification platform.
  • Zhima Credit – an independent credit filling and scoring service for individuals.

HiRevenue Sources from Various Different Services of Ant Group

Vital Information on Ant Group’s Services

Why was Ant Group’s IPO Cancelled?

The Ant Group’s IPO was bigger than India’s Gross Domestic Product(GDP). It received bids worth more than $3 trillion. The company intended to raise $34 Billion, with the company’s valuation standing $313 Billion. The demand for the issue was so big, that the Ant Group decided to stop taking orders a day earlier than planned. The issue was expected to go live on both Shanghai and Hong-Kong stock exchanges. However, the IPO was called off at the last moment. 

There are various speculations as to what could have gone wrong. Most of them hint at bad blood with the ruling Communist Party of China. Jack Ma had criticized China’s financial regulators and the financial system and how it stifled innovation in that field. The Chinese regulators who were at the conference didn’t take the criticism well. According to some reports, Xi Jinping, the state supremo, personally made the call and got the IPO stopped. 

Right after the conference, the market regulators started making reports on how the Ant Group encourages the youth to take on a debt burden. This capitalistic expansion of Ant Group is apparently against the Communist principles of the nation. The company’s account books suggest that Ant Group itself only assumes the risk for 2% of the debt that is given through its lending platforms. In the essence of it, this is because Huabei and Jiebei, its two lending platforms are simply connecting banks and borrowers, where it itself doesn’t assume any risk whatsoever.

Will the IPO Go Through?

Hopefully, yes. The IPO has faced a lot of turbulence. Firstly from the Chinese regulators and even from Donald Trump. The Trump administration wanted to blacklist the Ant Group and prevent US Investors from putting their money in the IPO. However, the plans for the blacklist were called off later.


The Chinese regulators have now published new norms for online lenders and micro-lending which Ant Group will have to comply with. The regulators have even placed more obstacles for Ant Group to cross such as new capital requirements and some changes in the IPO. The entire process could take anywhere from 3 to 6 months before the IPO goes into effect.

Well, one thing is clear, even China’s richest man isn’t greater than his political bosses. The stalling of IPO cost Jack Ma, $3 Billion, and that is a lot of money. It is well before the time that we know who are the forces behind the stalling of the IPO.

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The UK Goes into Lockdown, Oil Prices Tank – Top 10 Global News

1. U.S. Futures Climb as Oil Touches Five-Month Low

Equity markets started Monday with gains as investors prepared for a crucial week spanning the U.S. election and a Federal Reserve meeting. Futures on the S&P 500 climbed 1% following last week’s sharp selloff. Equity benchmarks across Europe and Asia were also higher, and investors took comfort in data that showed strength in China’s economic expansion. The picture wasn’t uniform across markets. Oil prices touched a five-month low after Libya accelerated production and the U.K. joined other European countries in toughening travel restrictions. 

Futures on the S&P 500 Index increased 1% as of early morning New York time.

The Stoxx Europe 600 Index surged 1.4%.

The MSCI Asia Pacific Index jumped 1.1%.

The MSCI Emerging Market Index increased 0.8%.

2. UK Locks Down as COVID-19 cases pass 10 lakhs

Prime Minister Boris Johnson ordered England back into a national lockdown after the United Kingdom passed the milestone of one million COVID-19 cases and the second wave of infections threatened to overwhelm the health service. The UK, which has the biggest official death toll in Europe from COVID-19, is grappling with more than 20,000 new coronavirus cases a day and scientists have warned the “worst case” scenario of 80,000 dead could be exceeded. In some of the strictest restrictions in the UK’s peacetime history, people will only be allowed to leave home for specific reasons such as education, work, exercise, shopping for essentials and medicines or caring for the vulnerable. Essential shops, schools, and universities will remain open, Johnson said, and while elite sports will continue, amateur sports for adults and children will be asked to stop. Pubs and restaurants will be shut apart from for takeaways. All non-essential retail will close.

3. Ant Group Trades over 50% Premium in Hong Kong Grey Market

Institutional investors are buying Ant Group Co.’s shares at a 50% premium, signalling the Chinese fintech giant is poised to soar in its debut this week following the world’s largest initial public offering. Billionaire Jack Ma’s Ant IPO has become the most anticipated in years, attracting at least $3 trillion in orders for its dual listing in Hong Kong and Shanghai ahead of its trading debut on Nov. 5. The stampede for shares is fueling predictions of a first-day pop, even as skeptics warn of risks including the U.S. election, tightening regulations in China and rising Covid-19 infections worldwide.

4. Strong China factory data show domestic demand driving recovery

China’s manufacturing activity kept up its steady expansion from a deep slump caused by the coronavirus pandemic. The main reason for the growth has been domestic demand as Chinese people spent on travel, leisure and shopping for consumer goods, helped by a long public holiday in October. But export activity remains weak, with analysts saying the continuing coronavirus pandemic in China’s main overseas markets of the United States and Europe is likely to suppress demand there for some time. The latest figure was the highest since January 2011. It had plunged to a historic low in March as most of China’s economy shut down to control the spread of the coronavirus.

5. Ryanair posts first summer loss in decades; cuts winter forecasts

Ireland’s Ryanair posted a loss for its key summer period for the first time in decades on Monday and said it may have to cut capacity further this winter as the second wave of COVID-19 infections sparks fresh lockdowns across Europe. Europe’s largest low-cost airline said COVID-19 restrictions pushed passenger numbers down 80% in the six months to Sept. 30, when it typically makes most of its annual profit. The airline, whose chief executive Michael O’Leary in September described the upcoming winter as a “write-off”, declined to forecast profit for the full financial year ending March 31, but said it expected a second-half loss greater than the first. Ryanair reaffirmed plans to fly 3.8 crore passengers this financial year compared with the 15 crore of the same period last year.

6. Italy Considers National Curfew: Government Still Divided

Italy’s government is opting for targeted regional restrictions amid the latest surge in Covid-19 cases, in a bid to avoid a new nationwide lockdown. Regions with the highest transmission levels will be subject to tougher curbs under a new three-tiered system, Prime Minister Giuseppe Conte said Monday. These will come on top of new nationwide measures including a night-time curfew. The newest plan includes shutting down museums across the country and closing shopping malls on weekends. The government will also impose movement restrictions to and from the hardest-hit regions.

7. China Issues Fresh Warning to U.S. in Spat Over Journalist Visas

China issued a new warning to the U.S. over journalist visas, after accusing the Trump administration of giving Chinese media staff new travel documents that would expire in a matter of days. Some Chinese journalists in the U.S. were notified last week that their long-delayed visa applications had been approved, Foreign Ministry spokesman Wang Wenbin told a regular briefing Monday in Beijing. China had expressed its concerns and demands through diplomatic channels made clear that it would take “firm countermeasures” should Washington continue with its “political persecution and suppression against Chinese journalists,” he said.

8. Hong Kong’s Retail Weakness Persisted in September

Hong Kong retailers continued to struggle in September even as other sectors in the economy, notably exports, started showing stronger signs of recovery. Retail sales by value fell 12.9% from a year earlier, according to a government report. The business environment of the retail trade will remain challenging in the near term, as inbound tourism is unlikely to see a swift rebound and the labour market is still under pressure. Sales across most categories continued to drop, led by purchases of food and alcoholic drinks, jewellery and electrical goods. Supermarket sales rose, along with department stores, motor vehicles, furniture, books and newspapers.

9. Xinjiang Covid Outbreak Is China’s Biggest Since Summer

A testing blitz in China’s far west region of Xinjiang uncovered the country’s worst Covid-19 outbreak since the summer, even as authorities said all infections have been found. Authorities in the region — the epicentre of Beijing’s crackdown on ethnic Muslim Uighurs — reported six new so-called asymptomatic infections on Monday. Xinjiang’s tally since the outbreak began with the detection stands at 57 infections and 223 asymptomatic cases, Xinjiang’s health commission reported. Nine people are in “severe condition,” authorities said. The new cases emerged after China tested millions of people across the region last week. 

10. World’s Top Hedge Fund Soars 275% With Bets on China Schools

Between January and September, QQQ Capital Management posted gains of 275%, making it the top hedge fund in the world, according to Eurekahedge data. QQQ says assets under management rose to about $1 billion last month, with most of the money coming from Qian, its founder. The gains have come with concentration risks that many fund managers would balk at: QQQ has more than a third of its assets invested in Chinese education companies. While those stocks had soared this year, they’ve been hit with concerns about regulatory crackdowns and allegations of accounting fraud, and one has plunged in recent weeks amid downgrades from analysts.

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Jack Ma to become 11th Richest Man after Ant IPO – Top10 Global News

1. Stocks Slump on Rising Covid Cases; Dollar Gains

U.S. equities slumped along with European shares on concern that rising coronavirus cases will weaken the global economy and as prospects dimmed for fiscal aid from Washington before the presidential election. Energy and materials companies were among the worst performers on the S&P 500 Index. In Europe, a gauge of tech stocks fell the most since March after German software maker SAP SE plunged 20% following a cut to its revenue forecast and warnings that the pandemic will hurt business through mid-2021. Boeing Co., Lockheed Martin Corp. and Raytheon Technologies Corp. slid on China’s plan to sanction the companies after the U.S. approved $1.8 billion in arms sales to Taiwan last week.

The S&P 500 Index decreased 0.9% as of early morning New York time.

The Stoxx Europe 600 Index fell 1.1%.

The MSCI Asia Pacific Index dipped 0.3%.

2. China to Sanction Boeing, Raytheon Over U.S. Arms Sales to Taiwan

China will impose unspecified sanctions on Boeing Co.’s defense unit, Lockheed Martin Corp. and Raytheon Technologies Corp. after the U.S. State Department approved $1.8 billion in arms sales to Taiwan last week. The sanctions will be imposed “in order to uphold national interests,” Chinese Foreign Ministry spokesman Zhao Lijian told reporters Monday in Beijing. The action follows the U.S. State Department’s approval last week of $1.8 billion in sales of new weapons for Taiwan and submission of the package to Congress for a final review. The deals, and an earlier one involving Lockheed F-16 fighters, are taking place amid rising tension between the superpowers ahead of the U.S. election next week. 

3. Pelosi Awaits Virus Stimulus Offer Today as Hope for Vote Fades

The three months of squabbling over a new round of virus relief moved no closer to a resolution over the weekend, all but extinguishing the prospects of a stimulus bill being written, voted on, and signed into law by President Donald Trump before the election. House Speaker Nancy Pelosi said she’s waiting for another counter-offer on Monday from Treasury Secretary Steven Mnuchin, as she and White House Chief of Staff Mark Meadows accused each other of “moving the goalposts” in negotiations. Much of the weekend was devoted to work by congressional committees with the goal of writing legislation, but aides in both parties said little progress was made despite the pledges from both sides that they want to quickly deliver $1,200 (89,000 INR) stimulus payments to most Americans along with aid to struggling businesses.

4. Europe Struggles to Regain Control from Second Covid-19 Wave

Europe took a step closer to the strict rules imposed during the initial wave of the pandemic, with leaders struggling to regain control of the spread while confronting growing opposition to restrictions. The Czech Republic — the European Union’s worst hot spot — and Poland signaled more curbs may be near, and Belgium is mulling a lockdown. AstraZeneca said its vaccine candidate produced a robust immune response in elderly people, while Johnson & Johnson said the first batches of its shot could be available in January. Both companies are resuming trials that had been paused due to safety concerns. U.K. Health Secretary Matt Hancock said his “central expectation” is there will be a vaccine to roll out in the first half of 2021. The World Health Organization’s director general said some countries in the northern hemisphere are facing a “dangerous moment.”

5. Dubai announces $136 million extra stimulus package

Dubai has announced a new 500 million dirhams (INR 1000 cr) stimulus package to support the local economy, taking Dubai’s total stimulus measures this year to 6.8 billion dirhams, the crown prince of the emirate said on Twitter on Saturday. “The private sector is a major partner in Dubai’s development process, and we have adopted a set of new exemptions for some fees and a reduction in rents for some sectors, as well as an extension of the validity of a previous set of exemptions from fees,” said Hamdan Bin Mohammed Al-Maktoum.

6. U.S. appeals WTO ruling on its multi-billion tariffs on China

The United States lodged an appeal on Monday against a WTO ruling last month that found U.S. tariffs imposed on China in 2018 breached global trade rules, a World Trade Organization (WTO) official said. A three-person panel had ruled that U.S. had not justified why the tariffs imposed after a Section 301 investigation against China were a justifiable exception to its obligations. The U.S. delegation, in a speech seen by Reuters announcing its appeal, said that the panel report “reflects a major, missed opportunity for the WTO to begin to address the most serious problem faced by every member that seeks a balanced and fair world trading system: namely, aggressive, state policies that seek to dominate broad industrial sectors.”

7. Fiat, PSA to win EU approval for $38 billion merger

Fiat Chrysler and PSA are set to win EU approval for their $38 billion (INR 2.8 lakh cr) merger to create the world’s fourth-largest carmaker, as they strive to meet the industry’s dual challenges of funding cleaner vehicles and the global pandemic. The green light from the European Commission would formalise the creation of Stellantis, a carmaking group that could tap hefty profits from selling RAM pickup trucks and Jeep SUVs to U.S. drivers to fund the expensive development of zero-emission vehicles for sale in Europe and China. The all-share merger announced late last year would unite brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel and DS.

8. Bond Defaults Deliver 99% Losses in New Era of U.S. Bankruptcies

Bankruptcy filings are surging due to the economic fallout of Covid-19, and many lenders are coming to the realization that their claims are almost completely worthless. While few could have foreseen the pandemic’s toll on the economy, the depth of investors’ pain from corporate distress was all too predictable. Desperate to generate higher returns during a decade of rock-bottom interest rates, money managers bargained away legal protections, accepted ever-widening loopholes, and turned a blind eye to questionable earnings projections. Corporations, for their part, took full advantage and gorged on astronomical amounts of debt that many now cannot repay or refinance. It’s a stark reminder of the long-lasting repercussions of the Federal Reserve’s unprecedented easy-money policies. Ultralow rates helped risky companies sell bonds with fewer safeguards, which creditors seeking higher returns were happy to accept. Now, amid a new bout of economic pain, the effects of those policies are coming to bear.

9. Jack Ma Wealth Surges Above Walmart Heirs’ With Record Ant IPO

Jack Ma, the former English teacher who co-founded Alibaba Group Holding Ltd. is poised to become the world’s 11th richest person after Ant Group Co. priced shares for a record IPO. Ma’s 8.8% stake is worth $27.4 billion based on the stock pricing in Hong Kong and Shanghai. That will take the 56-year-old’s fortune to $71.6 billion (INR 5.3 lakh cr) on the Bloomberg Billionaires Index, exceeding that of Oracle’s Larry Ellison, L’Oreal’s heiress Francoise Bettencourt Meyers and individual members of the Waltons, whose family own Walmart Inc. Ant’s mammoth listing is poised to boost the fortunes of a group of early investors and employees. The company has granted staff share-based awards since 2014 and at least 18 other people have become billionaires from the IPO.

10. Brexit decision entirely separate from U.S. election outcome

Britain’s decision on whether to agree a Brexit deal with the European Union is entirely separate to the outcome of the U.S. election next month, Prime Minister Boris Johnson said on Monday.

“The two things are entirely separate,” Johnson said, when asked about an Observer newspaper report that he was waiting to see the U.S. result before making a Brexit decision, and whether he was concerned about the prospect of a Joe Biden presidency.

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Goldman fined $3 billion in Malaysia 1MDB Scandal – Top10 Global News

1. Europe Stocks Climb on Earnings; US Futures Edge Up

European stocks advanced on the back of positive earnings and solid euro-zone economic data, putting them on track for the first increase this week. U.S. futures edged higher. Barclays jumped on an earnings beat, lifting banking shares. Car makers rose after Daimler raised its profit forecast and Renault topped revenue estimates, the latest signs the global auto industry is emerging from its worst slump in decades. The euro strengthened as regional manufacturing data exceeded estimates. In pre-market trading, U.S. chip giant Intel slumped after a surprise drop in data-center sales. Gilead Sciences jumped after its antiviral therapy remdesivir became the first drug formally cleared by FDA to treat Covid-19.

The Stoxx Europe 600 Index gained 0.6%.

Futures on the S&P 500 Index and Nasdaq 100 Index climbed 0.1%.

The MSCI Asia Pacific Index increased 0.2%.

2. US election debate does little to sway stock market investors

Global stocks barely budged on Friday as investors remained wary with less than two weeks to go before the United States presidential election and the final debate between President Donald Trump and his Democratic challenger Joe Biden on Thursday night presented no surprises for election watchers but slightly reinforced investor caution heading into the November 3 polls. US S&P 500 stock index futures had dipped slightly after the debate but were mostly flat by midday trade in Asia. 

3. US Readies for an Eye-Popping GDP Numbers

The Covid-19 pandemic caused the deepest U.S. recession since at least World War II. GDP shrank at an annual rate of 31.4% in the second quarter. Covid-19 is infecting more than 50,000 Americans a day, the most since early August. Somehow, though, the economy has roared back. On Oct. 29, the government is likely to report that GDP rose an annualized 30% in the third quarter—also a postwar record.Two things explain the economy’s rebound. States ended the general shutdowns that squelched growth in the second quarter. And Congress and the Federal Reserve came to the rescue with unprecedented fiscal and monetary relief.

4. China sends Warning by Remembering Its Only War With U.S.

China is going all out in remembrance of its participation against the U.S. in the Korean War, sending a message to the U.S. that it’s not intimidated by American military might. President Xi Jinping took part in a ceremony Friday in Beijing marking the 70th anniversary since its army took up fighting in a conflict China’s government describes as the “War to Resist U.S. Aggression and Aid Korea.” The war “shatters the legend that the U.S. Army is not defeatable,” Xi said in an address at the Great Hall of the People attended by party dignitaries, military representatives and veterans. “The Korean War shows that the Chinese people should not be provoked. If you make trouble, be prepared to bear the consequences.”

5. Goldman Sachs to pay billions in new 1MDB scandal penalties

Goldman Sachs Group Inc. admitted its role in the biggest foreign bribery case in U.S. enforcement history, reaching multiple international settlements to end probes into its fundraising for the scandal-plagued Malaysian fund known as 1MDB. Goldman officials helped spread $1.6 billion in illegal payments across Malaysia and the Middle East as part of a scheme that diverted money raised for development projects into an international spending spree on mansions and lavish parties, the bank said. Goldman agreed to pay $2.9 billion in penalties to settle criminal charges in the scandal.

6. Gilead’s remdesivir first to win US approval to treat COVID-19

The United States Food and Drug Administration has approved Gilead Sciences Inc’s antiviral drug Veklury – better known as remdesivir – for the treatment of COVID-19. Veklury is the brand name for remdesivir, which was previously authorised by the FDA for emergency use to treat patients who have been hospitalised with COVID-19. Gilead becomes the first and only company to receive approval for a COVID-19 treatment in the US. Remdesivir, which was developed by Gilead as a treatment for Ebola, works to stop the replication of SARS-CoV-2, the coronavirus that causes COVID-19. Gilead said in its press release that Veklury “shortened time to recovery by five days” in patients hospitalised with the virus.

7. US home sales and jobless claims underscore rising inequality

The National Association of Realtors said on Thursday that sales of previously owned homes grew for a fourth consecutive month in September, with completed transactions rising to an annual 6.54 million units – the highest level in 14 years. The report signals that the US housing market remains red hot – even in a month when housing sales traditionally start to slow down.

The rock bottom mortgage rates and people who can afford it upgrading to bigger and better digs are keeping the housing market hot. At the close of September, the U.S. economy had only recovered a little over half of the 22 million jobs lost during March and April. Many layoffs have turned into permanent job losses and as last week’s data demonstrate, showing rising inequality.

8. Philippines Lets Foreigners In, Eases Travel Rules for Citizens

The Philippines will welcome back foreign nationals starting Nov. 1 and allow Filipino travelers to leave without Covid-19 antigen tests as the Southeast Asian nation continues to reopen. Religious gatherings in areas under a looser form of quarantine will be allowed up to 30% of seating capacity from 10% previously. Early this week, the government shortened curfew hours in the capital region and eased stay-at-home order in response to a request from the Cabinet to allow more businesses to thrive.

9. Ant’s IPO Lures Fidelity, T. Rowe Price, UBS Asset

T. Rowe Price Group, UBS Asset Management and Fidelity Investments, are among the money managers angling for a piece of Ant Group’s blockbuster IPO. Each of the firms is considering investments worth several billion dollars in Ant’s Hong Kong-listed shares. Ant is expected to start taking orders for the Hong Kong portion of its dual listing on Oct. 26 and price shares as soon as Oct. 29, people familiar with the matter said. The company may raise about $35 billion in Hong Kong and Shanghai combined.

10. Vietnam’s Stocks Erase 2020 Losses Amid Optimism Over Economy

Vietnam’s stocks rallied the most in seven weeks on Friday, helping the benchmark gauge erase its year-to-date losses. The VN Index rallied 1.2%. The measure has rallied more than 12% over the past three months, the best performance in Southeast Asia, taking its rebound from this year’s low in March up by 46%. Vietnam’s economy is one of the few in Asia that are expected to expand this year after the country successfully curbed the pandemic.

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EU to UK: “Don’t take the cake and eat it too” – Top10 Global News

Boris Johnson visits a community shop...Mayor of London, Boris Johnson eats a bacon sandwich as he visits the cafe at the Community Shop in west Norwood, London where he met volunteers and staff and publicised the Mayor's High Street Fund.

1. Treasuries Slump With Dollar Amid Stimulus Bets

Treasuries slid alongside the dollar amid speculation that Washington lawmakers will make progress on talks for stimulus legislation to be financed by trillion-dollar borrowing. U.S. stocks were little changed. The U.S. 10-year treasury yield broke above 0.8% to the highest since June and European yields also rose after Democratic House Speaker Nancy Pelosi expressed hope for political compromise on a bill this week. The S&P 500 fluctuated. Netflix Inc. tumbled after missing subscriber estimates. Tesla Inc. was mixed before financial results later Wednesday, and social-media company Snapchat soared after an earnings beat. European stocks slumped for a third day.

The S&P 500 Index fell less than 0.1% as of early morning New York time.

The Stoxx Europe 600 Index decreased 0.9%.

The MSCI Asia Pacific Index rose 0.7%.

2. IMF cuts Asia’s growth forecast, warns of pandemic-driven risks

The International Monetary Fund slashed this year’s economic forecast for Asia, reflecting a sharper-than-expected contraction in countries like India, a sign the coronavirus pandemic continues to take a heavy toll on the region. While the IMF upgraded next year’s growth forecast, it warned the recovery will be sluggish and patchy with countries dependent on tourism seen taking a particularly hard hit.

The IMF said it expects Asia’s economy to contract 2.2% this year. That decline is 0.6% higher than its forecast in June, due to sharp slumps in countries like India, the Philippines and Malaysia. India’s economy is likely to shrink 10.3% this year in stark contrast to China, which is set to expand 1.9%.

3. EU to UK on Brexit talks: ‘You can’t have cake, eat it too’

The European Union took a defiant tone on Wednesday as the standoff over resuming post-Brexit trade negotiations with the United Kingdom intensified, telling London that “you cannot have your cake and eat it too.” European Council President Charles Michel refused to bow to British insistence for the EU to fundamentally change its negotiating stance and cede more to U.K. demands. Michel said instead that if Britain wants vast access to the 27-member bloc’s markets, it will equally have to keep its waters open to EU fishermen, something the UK government has said it doesn’t want to do.

4. China urges Sweden to reverse its Huawei, ZTE ban to avoid backlash on Swedish companies in China

Sweden should reverse its ban on Chinese telecommunications companies Huawei and ZTE from a planned 5G spectrum auction to avoid a “negative impact” on its own companies, said China’s foreign ministry. “China expresses strong dissatisfaction with Sweden,” said foreign ministry spokesman Zhao Lijian, speaking at a regular news briefing in Beijing on Wednesday.

“Sweden should uphold an objective and fair attitude, and correct its wrong decision, to avoid bringing a negative impact to China-Sweden economic and trade cooperation and the operations of Swedish enterprises in China,” said Zhao.

5. UK borrowing exceeds forecasts, debt highest since 1960

Britain’s government borrowing exceeded forecasts in September and over the first half of the financial year was more than six times higher than a year earlier, due to the huge cost of the coronavirus pandemic. Public sector net borrowing totalled 36 billion pounds  (3.5 lakh cr INR) last month.Driven by a surge in coronavirus-related spending and a fall in tax revenue after the biggest economic hit since at least the 1920s, borrowing in the first half of the financial year broke through the roof.

6. Australian watchdog considers its own Google antitrust case after US sues search giant

Australia’s competition watchdog will consider its own antitrust case against Google, the commission chairman said Wednesday after the U.S. Justice Department sued the company for abusing its dominance in online search and advertising. Sims is drafting legislation to address the imbalance in bargaining power between Google and the Australian media businesses that want the tech giant to pay for journalism. The bills, that will be ready to be introduced to Parliament by December, would empower an arbitrator to make binding decisions on how much Google and Facebook must pay media companies for news content.

Google has said the proposed laws would result in “dramatically worse Google Search and YouTube,” put free services at risk and could lead to users’ data “being handed over to big news businesses.” Facebook has warned it might block Australian news content rather than pay for it.

7. Dubai leads major Gulf markets higher in early trade

Most major Gulf stock markets were in positive territory early on Wednesday, led by financial stocks, with Dubai’s index boosted by gains in DAMAC Properties. Dubai’s main share index rose 0.7%, buoyed by a 14.4% surge in DAMAC Properties as investors hunted for bargains. There has been speculation about possible plans to take the company private but no final decision has been taken yet. Saudi Arabia’s benchmark index gained 0.3%, with Al Rajhi Bank rising 0.6% and petrochemical firm Saudi Basic Industries increasing 0.7%.

8. Israel, UAE agree to visa-free travel as ties deepen

Israel and the United Arab Emirates agreed to visa-free travel on Monday, an unprecedented arrangement between Israel and an Arab state, signed as the first ever official UAE delegation landed in Tel Aviv. The visit, hailed as a “glorious day for peace” by Prime Minister Benjamin Netanyahu, came after Israel and the UAE agreed to normalise ties in a deal inked at the White House last month. With their economies hard-hit by the coronavirus pandemic, the UAE and Israel are hoping for rapid dividends from the normalisation deal – which broke years of Arab consensus that there should be no relations with the Jewish state until it makes peace with the Palestinians.

9. Jack Ma’s Ant Receives China Approval for IPO in Shanghai

Jack Ma’s Ant Group got the green light from China’s securities watchdog for its initial public offering in Shanghai, clearing another hurdle as the Chinese fintech giant tries to complete its share sale before the U.S. election. China’s securities regulator approved the listing on Shanghai’s STAR market. Ant is said to have earlier won approval from the Hong Kong stock exchange for an IPO. Ant is seeking to raise $35 billion in a dual listing, with about half coming in Hong Kong and the other half in Shanghai. Ant’s IPO could be the world’s biggest, surpassing Saudi Aramco’s record $29 billion sale last year.

10. China Will Likely See Positive Economic Growth for 2020

China will likely post positive economic growth for the full year and the debt-to-GDP ratio is expected to stabilize in 2021 after debt climbed in the wake of the coronavirus pandemic, the Chinese central bank governor said. Data this week showed GDP rose 4.9% in the third quarter from a year ago, putting China in line to be the only major economy to expand this year after bringing the pandemic under control. At the same time, debt has climbed, reaching 269.2% of GDP last quarter. The macro leverage ratio — the percentage of debt in households, non-financial enterprises and governments to total gross domestic product — “has increased this year due to the fight against the pandemic.”