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NASDAQ Hits Two-Month Low – Top 10 Global News

1. Nasdaq Sinks to Two-Month Low as Bond Yields Jump

The renewed bout of Treasury volatility spurred a surge in bond yields on Wednesday, dragging down stocks as investors grappled with concern overstretched valuations. A selloff in high-flying giants such as Apple and Amazon.com outweighed gains in banks and energy producers. The Nasdaq 100 slumped to a two-month low, bringing its losses from a February peak to about 8%. The S&P 500 extended its slide into a second day, while the Dow Jones Industrial Average outperformed. Benchmark U.S. government yields approached 1.5%, with bonds pricing in the highest five-year inflation expectations since 2008. 

The S&P 500 slid 1.3% as of 4 p.m. New York time.

The Stoxx Europe 600 Index was little changed.

The MSCI Asia Pacific Index increased by 1.1%.

The MSCI Emerging Market Index advanced 1.4%.

2. Senate Final Vote on U.S. Stimulus Likely Pushed Into Weekend

The Senate enters the final stages of debating President Joe Biden’s $1.9 trillion pandemic relief bill on Thursday, with passage in the chamber likely pushed off until the weekend. Senate Majority Leader Chuck Schumer had planned to kick off the process Wednesday night but lacked an official cost estimate on the latest version of the bill, which has been trimmed down from the House-passed measure. In addition to stripping out a minimum-wage increase to comply with Senate rules, Biden agreed to moderate Democrats’ demands for tightening eligibility for $1,400 stimulus checks.

3. Initial Claims for U.S. Jobless Benefits Rose Slightly Last Week

Applications for U.S. state unemployment insurance rose slightly last week, underscoring the pandemic’s lingering restraint on the labour market recovery. Initial jobless claims in regular state programs totalled 745,000 in the week ended Feb. 27, up 9,000 from the prior week. The latest data underscore a labour market still in the grips of a health crisis that’s reducing economic activity across many industries. At the same time, infection rates are declining and more Americans are getting vaccinated against Covid-19, suggesting fewer layoffs in coming months as the economy picks up steam.

4. Brexit Antagonism Escalates as EU, U.K. Go Another Round

When the U.K. and European Union shook hands on a trade deal late last year, few expected the new relationship to be plain sailing. Among the most sensitive issue is Northern Ireland, and tensions ramped up considerably this week when the U.K. announced it will ignore some crucial obligations under the Brexit deal and the EU responded with a dramatic threat of legal action. With Johnson already under pressure from members of his own party to rip up the Northern Ireland deal, the risk is a further escalation that erodes relations. That could have spillovers far beyond politics, and the ongoing saga is a frustration for business. The U.K.’s huge finance industry, for example, is seeing the potential for beneficial trade agreements being slowly whittled away by endless political spats.

5. China Moves to Curb Hong Kong Opposition’s Role in Elections

Chinese lawmakers will advance a proposal to overhaul Hong Kong’s electoral system, pushing ahead with a controversial plan to limit the opposition’s ability to win public office in the Asian financial centre. The National People’s Congress will review a draft resolution on “improving Hong Kong’s electoral system” in the coming days, according to an agenda published Thursday. The rubber-stamp parliament is slated to begin a week-long series of annual meetings Friday in Beijing, meaning the measure could pass as soon as next week. The action is the latest step by Chinese President Xi Jinping’s government to curb dissent in the former British colony following historically large and sometimes violent pro-democracy protests in 2019.

6. ByteDance Said to Invest in Chinese Self-Driving Startup QCraft

Chinese social media titan ByteDance Ltd. is investing in local autonomous driving startup QCraft, another sign of the blurring of boundaries between car companies and Big Tech. The owner of Tiktok is investing in QCraft’s latest fundraising round of at least $25 million, said the people. QCraft’s technology is being trialled in minibuses in parts of China. The deal, which may be announced as early as next week, follows a spate of similar investments and tie-ups between technology firms and car manufacturers, particularly in China. Both conventional and electric automakers are rushing to gain an edge as features like autonomous driving and smart-mobility solutions transform vehicles.

7. Singapore Won’t Allow New Diesel Cars and Cabs From 2025

Singapore won’t allow diesel-powered cars and taxis to be registered from 2025, five years ahead of previously scheduled, as part of its push to reduce emissions and encourage the adoption of electric vehicles. About 2.9% of passenger cars in Singapore run on diesel, while the proportion is as high as 41.5% for taxis, according to Land Transport Authority figures. Most goods vehicles and buses in the city-state run on diesel and won’t be affected by the new rule, announced Thursday by the government.

8. Germany To Lift Debt Spending to Help Tackle Virus

Finance Minister Olaf Scholz said Germany will need to increase debt spending this year to help tackle the impact of the coronavirus crisis on Europe’s largest economy. Merkel’s administration will present its 2022 budget proposal and a medium-term financing plan on March 24. The final decision on public spending beyond this year will be left to the new parliament after September’s elections. The government will likely have to spend aggressively next year as well. Scholz, who is running for chancellor for the Social Democrats, plans to propose a draft 2022 budget that will call for suspending constitutional borrowing limits for a third straight year.

9. Brazil Reports Record Deaths; N.Y. Eases Limits: Virus Update

For the second consecutive day, Brazil reported a record number of deaths from the coronavirus. AstraZeneca’s and Pfizer’s vaccines protected the elderly after a single dose in a new study that validates giving both shots to older people and spacing out injections. An experimental vaccine developed by India’s Bharat Biotech showed 81% efficacy in an interim clinical trial. U.K. Chancellor of the Exchequer Rishi Sunak extended emergency tax cuts to help the British economy recover but warned he will ask profitable businesses to shoulder some of the bills for the country’s pandemic support.

10. Dubai Risks Driving Out Investors as Public Companies Delist

Betting on Dubai to deliver uninterrupted success as a tourism and entertainment hub is turning into a costly business for some stock investors. For the second time in less than three months, one of the emirate’s leading companies said it will effectively delist one of its units for about two-thirds of its original public-offering price. Emaar Properties, which built the city’s iconic Burj Khalifa tower, announced Tuesday it plans to buy back a 15% stake in its Emaar Malls unit at a 36% discount to the 2.9 dirhams a share at which it sold it in 2014. The move has a number of repercussions for a market that’s struggling to sustain interest following a pandemic-triggered selloff last year that was exacerbated by Dubai’s status as a global travel hub.

Curated from Bloomberg.com

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Amsterdam Overtakes London in European Stock-Trading – Top 10 Global News

1. U.S. Stocks Rise Toward Record; Treasuries Decline

U.S. stocks snapped a two-day slide to push back toward records as a decline in jobless claims signalled a modest firming of the labour market. Oil declined. The S&P 500 Index advanced past its closing high, while 10-year Treasury yields held around 1.15%. In Europe, the Stoxx 600 Index was buoyed by strong results. Applications for U.S. state unemployment benefits fell slightly last week in a sign that the labour market is still gradually improving as the vaccine rollout continues and business restrictions ease. In the background, there’s still a debate over whether more U.S. stimulus, the vaccine rollout and the government’s determination to kickstart growth will cause the American economy to overheat.

The S&P 500 Index gained 0.3% as of 9:36 a.m. in New York.

The Stoxx Europe 600 Index advanced 0.4%.

The MSCI Asia Pacific Index increased by 0.2%.

The MSCI Emerging Market Index advanced 0.4%.

2. Amsterdam Topples London as Europe’s Main Share-Trading Hub

Amsterdam overtook London as Europe’s largest share trading centre in January after Brexit saw about half of the city’s volumes move to the continent. An average 9.2 billion euros ($11 billion) of shares a day were traded on various Dutch venues in January, a more than fourfold increase from December. That compares to average daily volumes in London of 8.6 billion euros. Britain lost its rights to access the single market on Dec. 31 and the European Union has not permitted investors inside the bloc to trade shares in companies such as Airbus and BNP Paribas from the U.K. That’s seen more than 6 billion euros of daily EU share trading leave London since the start of the year.

3. IEA Says Oil Market Recovery Still Fragile as Virus Persists

The re-balancing of global oil markets remains “fragile” amid weaker estimates for demand and a recovery in supplies, the International Energy Agency said. The IEA cut forecasts for world oil consumption in 2021 by 200,000 barrels a day as the pandemic continues to limit travel and economic activity. It boosted projections for supplies outside the OPEC cartel by 400,000 barrels a day as a price recovery spurs investment. “Renewed lockdowns, stringent mobility restrictions and a rather slow vaccine rollout in Europe have delayed the anticipated rebound,” the Paris-based agency, which advises major economies, said on Thursday in a monthly report.

4. Democrats Use Video, Trump’s Words in Blaming Him for Riot

House prosecutors used the second day of Donald Trump’s impeachment trial to detail a months-long campaign by the former president to stoke hatred and encourage violence over the election results that they said culminated in the mob attack on the U.S. Capitol that he then did little to stop. Using previously unreleased videos and audio, the Democratic lawmakers vividly showed senators how close the rioters who ransacked the Capitol came to reaching them, as well as then-Vice President Mike Pence. Senators in the chamber listened in rapt silence as the recordings played.

5. Economic Boost from Americans’ Stimulus Checks Doubtful

President Joe Biden has promised to “act fast” in delivering another dose of pandemic relief, including $1,400 checks for millions of Americans. That doesn’t mean all the recipients will be in a hurry to spend the money.  By comparison with the first round of stimulus checks that went out last spring, the payments from Biden’s $1.9 trillion aid bill are much more likely to be saved rather than spent. Some of Biden’s Democratic allies are making that case and calling for a more targeted approach as the administration steers its bill through Congress. They want to lower the income ceiling for people to qualify for the full $1,400, currently set at $75,000 for individuals and $150,000 for couples.

6. Bitcoin Hits Record as Mastercard, BNY Mellon Embrace Crypto

Bitcoin jumped to a record high after Mastercard and Bank of New York Mellon moved to make it easier for customers to use cryptocurrencies. The largest digital asset rose as much as 7.4% to $48,364, surpassing the all-time high reached Monday after Tesla announced it would hold $1.5 billion of the cryptocurrency on its balance sheet. The wider Bloomberg Galaxy Crypto Index also touched a record. “The crypto-asset world is bursting into the realms of traditional finance at a staggering pace,” said Simon Peters, an analyst at investment platform eToro. Mastercard has already partnered with crypto card providers such as Wirex and BitPay, but has required digital currencies to be converted into fiat before processing payments for transactions on its network.

7. Biden, in Call With Xi, Talks of ‘Unfair Economic Practices’

Joe Biden, in his first conversation as president with the Chinese leader Xi Jinping, spoke of his concern about China’s “coercive and unfair economic practices” as well as human rights abuses in the Xinjiang region. Biden also expressed misgivings about the country’s growing restrictions on political freedoms in Hong Kong and “increasingly assertive actions in the region, including toward Taiwan,” in the call, which took place Thursday morning Beijing time. Biden, who wished Xi a happy Lunar New Year, was “committed to pursuing practical, results-oriented engagements when it advances the interests of the American people and those of our allies.”

8. Germany Curbs Travel; WHO Warns on Mutations: Virus Update

The World Health Organization warned that a decline in overall virus cases conceals increasing numbers of outbreaks and community spread involving variants, with the strain first identified in South Africa late last year now identified in 19 countries. German Chancellor Angela Merkel said coronavirus mutations will likely become dominant across the country, threatening to derail the progress made in containing the pandemic. The country plans to impose restrictions on travel from Austria and the Czech Republic over concerns about aggressive mutations.

9. Dubai Business Activity Barely Grows As Restrictions Reimposed

Non-oil companies in Dubai increased output for the second month in a row in January but the uptick was marginal in the emirate where authorities have reimposed some restrictive measures imposed to curb the spread of Covid-19. The non-oil private sector economy in the Middle East’s business hub improved fractionally last month, according to IHS Markit. While its Purchasing Managers’ Index fell to 50.6 in January from 51 last month, driven by a decrease in output and new orders, the gauge still remained above the 50 mark that separates growth from contraction. Employment figures in Dubai showed an uptick for the first time in about a year, and at the quickest pace in 14 months as companies expressed optimism toward future business.

10. Kuwait Currency Peg in Spotlight With State Unable to Borrow

The Kuwaiti dinar’s peg to a basket of currencies is coming under scrutiny as concerns grow that one of the world’s richest nations is running short of cash. While other Gulf Arab states tapped global debt markets to bolster strained finances amid the pandemic, Kuwait has been hamstrung by lawmakers’ resistance to approving a law that would enable the government to borrow. Concern over how Kuwait will cover its budget deficit has become more acute after the government transferred the last of its performing assets to the country’s sovereign wealth fund in exchange for cash.

Curated from Bloomberg.com

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Market News Top 10 News Top Global News

U.S. Jobs Data shows Modest Gains – Top 10 Global News

1. Stocks Hit Record as Small Caps Jump; Dollar Gains

Stocks extended their rally into a fourth day as investors parsed through a flurry of corporate results amid signs the U.S. labour market may be gradually improving. The dollar rose. The S&P 500 climbed to a record, led by banks and tech shares, as the Russell 2000 Index jumped 2%. The bull market in U.S. stocks remains on “solid footing” as the rebound in activity and corporate profits alongside an accommodative Federal Reserve create a supportive environment for equities, according to UBS Group. Selected high-frequency data, such as weekly consumer-confidence readings, also point to some strengthening.

The S&P 500 climbed 0.4% as of 9:47 a.m. New York time.

The Stoxx Europe 600 Index advanced 0.2%.

The MSCI Asia Pacific Index increased 0.8%.

2. U.S. Payrolls Rise Less Than Forecasted After Big Dec. Drop

The recovery in the U.S. labour market disappointed for a second month in January with only modest job growth that highlights persistently difficult prospects for millions of unemployed and bolsters calls for more stimulus. Nonfarm payrolls increased by 49,000 from the prior month after a downwardly revised 227,000 December decrease, while the unemployment rate fell to 6.3%, according to a Labor Department report Friday. The labor force participation rate declined as more people left the workforce. The January data may elicit more urgent calls for another pandemic relief package. 

3. Senate Adopts Blueprint for Stimulus as Harris Breaks Tie

The Senate voted 51-50, after Vice President Kamala Harris broke her first tie, to adopt a budget blueprint for President Joe Biden’s $1.9 trillion virus relief package — following nearly 15 hours of wading through amendments from both parties. The House had already adopted its budget resolution but will likely have to vote again Friday to agree on the Senate’s language. Once that’s done, Democrats will be able to craft a relief bill in the coming weeks that can pass without any Republican votes under special budget rules. Budget Chairman Bernie Sanders said adoption means help is on the way to those suffering from an “economic collapse.”

4. U.K. Plans With CureVac; Russia-China Talks: Virus Update

The U.K. has entered into a collaboration accord with CureVac, under which the company will deliver an initial supply of 50 million doses of vaccines against Covid-19 variants. Britain will require travellers arriving from coronavirus hot spots to quarantine in hotels starting Feb. 15, almost three weeks after the plan was announced by Prime Minister Boris Johnson. Russian vaccine developers are in discussions with China’s CanSino Biologics Inc. to test a combination of their shots aimed at better results. Hungary, the first European Union country to approve Russian and Chinese coronavirus vaccines, could gradually start returning to normality this spring by inoculating the most exposed people by March 15.

5. Brace Yourself: Long-Haul Travel May Not Get Going Until 2023

It isn’t clear that vaccines actually stop travellers spreading the disease, even if they’re less likely to catch it themselves. Neither are the shots proven against the more-infectious mutant strains that have startled governments from Australia to the U.K. into closing, rather than opening, borders. An ambitious push by carriers for digital health passports to replace the mandatory quarantines killing travel demand is also fraught with challenges and has yet to win over the World Health Organization. This bleak reality has pushed back expectations of any meaningful recovery in global travel to 2022. Rather than a return to worldwide connectivity – one of the economic miracles of the jet era – prolonged international isolation appears unavoidable.

6. Banks Still Moving $970 Billion of Assets From U.K., ECB Says

Big banks still had 810 billion euros ($970 billion) of capital markets-related assets to move from the U.K. to the European Union at the end of September, underlining the extent of the moves ahead as they adjust to operating after Brexit. International banks have agreed to shift a total of about 1.2 trillion euros of assets to European units, said Andrea Enria, who leads the European Central Bank’s oversight arm. European banks “also planned to move a substantial amount of their capital market business” from the U.K., he said. The ECB and other regulators are prodding the world’s top investment banks to complete their plans to beef up operations in the EU to make sure they can service clients in the region.

7. Astra Vaccine Equally Effective Against New Variant: Study

AstraZeneca’s Covid vaccine is equally effective against the new strain of the virus that emerged in the U.K., according to a study by its co-developer, the University of Oxford. Protection against symptomatic infection was similar for the new variant as well as the original strain, according to the study, which analyzed swabs taken from volunteers from October through mid-January. The results should ease concerns about the effectiveness of existing vaccines against the mutated form of the virus, which health officials have said may be more infectious than the initial one.BioNTech, the developer of another coronavirus vaccine with Pfizer, has also said its shot appears to maintain effectiveness against the new strain.

8. Canada Loses 213,000 Jobs, Unemployment Jumps to 9.4%

Employment in Canada fell more than expected in January as a fresh wave of lockdowns weighs on the nation’s economy. The country lost 212,800 positions in the month, Statistics Canada said Friday in Ottawa. That’s on top of 52,700 jobs lost in December. The unemployment rate jumped to 9.4%, versus 8.8% previously and a forecast of 8.9%. A new round of restrictions over the last couple of months in some regions — including stay-at-home orders and curfews — have triggered fresh lay-offs that have stalled the recovery. Still, Canada’s labour market is faring better now than it did during the first wave of restrictions in March and April when employment fell by 3 million. Losses were entirely in part-time positions, with full-time jobs increasing.

9. World’s Largest Pension Fund Posts $100 Billion Quarterly Gain

The world’s biggest pension fund posted a 10.4 trillion yen ($98 billion) gain in the three months ended December, lifting assets to a record as global equity markets extended their recovery from the pandemic. Japan’s Government Pension Investment Fund gained 6.3%, with assets reaching 177.7 trillion yen, the fund said in a statement. Overseas stocks were its best-performing investment, returning 11.9%, followed by an 11.3% return in domestic stocks. Overseas debt gained 1.2%, while Japanese debt added 0.02%.

10. UBS Boosts Middle East Expansion Drive With New Qatari Hub

UBS Group is setting up a second Middle Eastern hub in Qatar that will eventually add investment banking and asset management services to its wealth-management business as part of an expansion in the region. The new Doha wealth office will open within weeks and UBS intends to hire about 20 people by the end of the year. Appointments will include back office and support staff, as well as relationship managers to build a business with Qatari clients. The wealth management business will be tapping into a market where per-capita income is almost six times that of the world average, according to World Bank data. Having a presence on the ground also opens UBS to the opportunity of potentially managing assets on behalf of one of the world’s largest sovereign wealth funds, the Qatar Investment Authority.

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Bitcoin Crashes as Crazy Rally Ends – Top 10 Global News

1. Stocks Climb Toward Record While Bonds Decline

Stocks rose on speculation that widespread vaccine distribution and government stimulus will reignite economic growth and boost corporate profits. The dollar fell toward an almost three-year low. Markets shrugged off concern over a surge in global coronavirus cases and the threat of more stringent restrictions amid a rally in risk assets on the first trading day of 2021. The S&P 500 advanced toward another record, led by commodity, retail and technology companies.
The S&P 500 Index fell 0.1% as of early morning New York time.

The Stoxx Europe 600 Index surged 1.3%.

The MSCI Asia Pacific Index climbed 0.8%.

2. Bitcoin’s Rally Comes to a Halt as Prices Fall Most Since March

Bitcoin fizzled in Monday trading as the famously volatile cryptocurrency pulled back after a spectacular new-year rally. Prices fell as much as 17% in the biggest drop since March before recovering. The losses are small in the context of Bitcoin’s broader rally, with a 50% jump in December alone. After a parabolic 2020, the digital currency had started the new year with a bang, surging as high as $34,000 and hitting all-time highs on Sunday. As ever in the world of crypto, it’s hard to pinpoint the proximate cause for the latest bout of volatility.

3. Tesla Poised for Expansion After Just Missing 2020 Target

Tesla came close to meeting its 500,000 vehicle-deliveries goals for 2020, setting the stage for a new year in which it’s expanding in China and poised to open new factories in Texas and Germany. The electric-car maker said on Jan. 2 it handed over 180,570 vehicles in the year’s final three months, the most for any quarter but just 450 vehicles shy of the half-million mark Chief Executive Officer Elon Musk sought for the year. Tesla has been ramping up output of its more mass-market models to meet rising global demand for battery-powered cars, with 2020’s total jumping 36% from the prior year. Musk and Tesla had a remarkable year, with the company joining the S&P 500 Index in December after five consecutive quarters of profit. The shares rallied 743% in 2020, giving the carmaker a $668.9 billion stock-market capitalization. Musk ended the year as the world’s second-richest person.

4. Dollar Stumbles Into 2021 as Bets on Global Recovery Dominate

The U.S. dollar kicked off the new year with a weak start as expectations for a global economic recovery bolstered demand for riskier assets. It lost ground against almost every major currency on Monday, pushing a gauge of its strength to the lowest level in nearly three years, after purchasing managers indexes across Europe and Asia showed factory activity gathering pace. The euro rose as much as 0.7% against the dollar toward a high last seen more than two years ago, while the greenback touched the weakest level against the Chinese yuan since June 2018. 

5. U.K. Mortgage Approvals Surge to 13-Year High

U.K. mortgage approvals reached the highest since 2007 in November as housing continued to boom in spite of a broader economic downturn. The housing market is surging largely because of a tax cut on house purchases that is worth as much as 15,000 pounds ($20,000) to buyers. That’s pushed prices higher in a nation where demand has outstripped supply for decades, while measures to control the pandemic have also led to a change in working habits, boosting interest in larger properties and those outside of city centres. The jump also reflects pent-up demand from the first lockdown, when the market was largely shuttered and mortgage approvals collapsed.

6. Hong Kong Extends School Closures Until Lunar New Year

Hong Kong pushed back the re-opening of classrooms for more than a month as part of government measures to stamp out the spread of the coronavirus. The suspension of in-person classes at kindergartens through high school, a restriction originally scheduled to expire Jan. 10, will be extended until the lunar new year holidays, which begin on Feb. 12. The city reported 53 new cases for the day, 43 of which were local. Hong Kong has been one of the most aggressive places worldwide to close schools despite research from the likes of the United Nations warning about the adverse consequences of doing so.

7. Johnson Faces Third Lockdown as Virus Surges Across U.K.

Boris Johnson’s government is on the brink of another pandemic U-turn with a third national lockdown looking increasingly inevitable. A surge in infections threatens to overwhelm hospitals and throws his plan to get English children back into classrooms into disarray on a day the British prime minister had hoped to celebrate the delivery of the first shots of a Covid-19 vaccine developed by the University of Oxford and AstraZeneca. Instead, the government is back in crisis mode, with new virus cases exceeding 50,000 a day and hospital admissions soaring past the peak of the first wave in April. Johnson on Monday warned that a “surging epidemic” means stricter rules are coming.

8. Treasuries Inflation Gauge Exceeds 2% for First Time Since 2018

Traders see U.S. inflation averaging at least 2% per year over the coming decade, the first time that expectations have climbed that high since 2018. The 10-year breakeven rate — a measure that draws on pricing for inflation-linked Treasuries — rose as high as 2.0025% Monday, a level last seen more than two years ago. The gauge has gained momentum as traders prepare for an uptick in the world economy in the wake of a deal on Brexit and congressional approval for additional virus-relief aid. The roll-out of vaccinations against the coronavirus has also fueled the move higher. The Federal Reserve is setting the tone for markets, making a renewed push to revive inflation — which has been too low for years. 

9. Oil Fluctuates With OPEC+ Gathering to Decide on Feb Output

Oil swung between gains and losses ahead of an OPEC+ meeting to decide whether the group can keep lifting output as a surging virus threatens the global energy demand recovery. OPEC and its allies are gathering to gauge whether the market has the appetite to absorb another increase in supply after they raised output by 500,000 barrels a day for January. The demand outlook for the first half of this year is mixed and there are still many downside risks to juggle, OPEC Secretary-General Mohammad Barkindo said on Sunday. There are signs that lockdowns in some countries are set to be extended, potentially curbing oil demand. Germany is poised to prolong stricter lockdown measures beyond Jan. 10, while Japan is considering another state of emergency for the Tokyo area.

10. Israel Sets Pace on Vaccine Rollout; Schools Close: Virus Update

Global coronavirus infections climbed above 85 million, after daily cases in the U.S. soared to a record of nearly 300,000 following the New Year holiday. Germany is set to extend its lockdown, while Hong Kong won’t re-open classrooms for more than a month, as many nations opt to delay reopening schools. Japan’s prime minister is considering another state of emergency for the Tokyo area, with cases at records and a vaccine rollout more than a month away. Israel said it plans to vaccinate 70% to 80% of its population by April or May. The U.K. gave the first shots of AstraZeneca’s vaccine on Monday, in a race against a faster-spreading variant that’s prompted lockdowns across the country.

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Editorial

Brexit Explained Simply

Over the past few days, we have been reading reports about certain breakthroughs in the Brexit deal. After more than four years of negotiations, the United Kingdom had finally exited or removed its membership from the European Union (EU) in January 2020. Now, the 11-month transition period will come to an end on December 31. The two sides have also approved a historic trade and co-operation deal. This new deal will provide the framework for the relationship between Britain and the EU in the years to come. Let us understand why the UK decided to exit the EU. Let us also learn about specific details regarding the new trade agreement.

Brief History

To understand why Britain decided to remove its membership from the EU, we need to look at a bit of history. 

It was in 1967 that a group of European countries decided to collectively form one common market. It was initially referred to as ‘The European Communities’. The EU was established as a single European political entity to end the centuries of warfare among European countries (that closed with World War II). The geo-political entity would ensure the freedom of movement of goods, services, people, and money. After 6 years of its formation, Britain decided to join the European Communities. In 1975, a referendum was held in the country, wherein 67% of the population agreed that Britain could be a part of the new common European market. 

In 1999, the EU decided that all countries that fall under it should have a common currency- the Euro. However, Britain stated that they would not agree to this change, and would retain their Pound. The country never fully accepted the legitimacy of European control over British institutions in a way that other EU members did. Since 2008, Britain felt that all major European economies were performing very poorly. This was primarily due to the fall of the Euro after the 2008 recession period. 

Many political leaders and a major size of the population felt that “principle decisions about the UK should be taken in the UK“. They also believed that the country had to regain control over immigration, as well as its borders. This had been the major reason why Britain decided to exit the EU.

The Brexit Referendum

In June 2016, the Brexit referendum was held to ask the British electorate (all people who are entitled to vote) whether the country should remain as a member of the EU, or leave it. “Leave” won the referendum with 51.9% of the ballot with 17.4 million votes, and “Remain” received 48.1% or 16.1 million. The result defied expectations and caused disruptions in the global markets. After almost 30 years, the British Pound fell to its lowest level against the dollar.

Source: BBC

Former Prime Minister David Cameron, who called the referendum and campaigned for the UK to remain in the EU, announced his resignation the following day. He was replaced as leader of the Conservative Party and Prime Minister by Theresa May in July 2016.

Thus, the process of Britain leaving the European Union formally began on March 29, 2017. Britain initially had two years from that date to negotiate a new relationship with the EU. In November 2018, Britain and the EU agreed on a 599-page Withdrawal Agreement. This included important issues such as citizen’s rights, the divorce bill, and the Irish border. However, members of the British parliament voted 432-202 to reject the agreement. Theresa May stepped down as party leader in June 2019, after failing three times to get the withdrawal deal approved by the Parliament. 

She was succeeded by Boris Johnson, the former Mayor of London. After 3 months of his rise to power, the UK Parliament passed the EU (Withdrawal Agreement) Bill. Due to the complex nature of the withdrawal process and political unrest in the UK, there was another significant delay. Finally, after months of negotiations, the UK and European Union agreed on the new withdrawal deal in January 2020.

The Transition Period

The UK left the EU on January 31, 2020. However, they mutually agreed to retain all policies until 31 December. An 11-month transition period was initiated, during which the UK followed EU rules. The leaders from both sides were given time to come up with a new trade deal. This deal would set the framework for trade once the UK leaves the EU market. This transition period will end at 11 pm on December 31, 2020. This means that the free movement of goods, people, services, and capital will stop from January 1 onwards. The EU and Britain will become two separate market spaces with distinct regulations. 

The New Trade Deal

According to the deal agreed upon by the UK & EU, there would be no taxes on each other’s goods when they cross borders (known as tariffs). Also, there would be no limits on the number/quantity of items that can be traded, which are known as quotas. While the UK was a part of the EU, companies could buy and sell goods across EU borders without paying tariffs. Without this new deal, businesses would have had to start paying these taxes- which would have added to their costs. No deal would have also meant more checks at borders, which could have caused delays for lorries transporting products.

People travelling from the UK will still be able to enter countries under the European Union without a visa. However, they may be subject to screening and will no longer be able to use the biometric passports. Also, European boats will continue to get more access to the UK’s fishing waters and the two parties will jointly manage the fish stocks in EU and UK waters.

For this new deal to be made into a law, both the European and UK Parliaments have to formally approve and sign it. On December 28, Ambassadors from 27 European Union (EU) Member States unanimously approved the EU-UK post-Brexit trade deal. On December 30 (Wednesday), the members of the UK Parliament also voted in favour of the deal. Thus, Brexit will end years of uncertainty weighing over the UK’s economic future.

Will Brexit Affect India?

Now that the new trade agreement has been made into law, India will have to adjust to the change in ‘world order’. Over the past 4 years, the value of British Pounds has been declining alarmingly. It has been reported that its value will keep falling even after the Brexit deal. This could impact India’s exports to the UK. The depreciation of the Indian Rupee will also lead to Indian import companies operating in the UK to report losses. There are also reports which state that Brexit will have a negative short-term impact on the Indian IT sector.

However, the British pound is among the most expensive currencies in the world. After Brexit, the UK currency could become cheaper and would likely boost exports from India as an alternative to the overpriced Eurozone. The cost of travelling to the UK could become much more affordable.

As per EU rules, member countries should not invite immigrants from non-EU countries unless there was a significant shortfall of talent within the EU. Now, Brexit would provide a new opportunity for Indian professionals to look for work options in the UK. There are also reports which state that business ties between the UK and India are most likely to strengthen. After losing access to the EU single market, the UK would want to develop trade relations with emerging markets such as India. 

Market Reaction

Due to relief from the Brexit deal and positive news from Covid-19 vaccines, the FTSE 100 hit a nine-month high on December 29. [The FTSE 100 is an index that tracks the 100 largest public companies by market capitalization that trade on the London Stock Exchange] Interestingly, we also saw that shares of Tata Motors (which has a very strong presence in the UK due to Jaguar Land Rover) rose nearly 6% due to the positive news regarding the new trade deal. Various financial analysts have stated that listed companies that have a significant presence in the UK & EU will continue to enjoy the benefits of free trade. This includes large firms such as Motherson Sumi, Tata Steel, TCS, Wipro, Infosys, and Tech Mahindra.  

The end of the transition period and approval of the new trade deal could have a positive impact on the European stock markets. It would also mark the end of high-political tensions amongst major countries in Europe. Let us look forward to seeing how these significant changes are going to be implemented in the months to come.

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Ambani loses Richest Man of Asia Title – Top 10 Global News

1. Stocks Steady Near All-Time Highs; Dollar Dips

Markets are ending a tumultuous year on a quiet note, with global stock indexes holding near record highs and the dollar at the lowest in two years. U.S. equity futures dipped on the last day of 2020 and all of the industries in the Europe Stoxx 600 were in the red. Markets in Japan, Germany and South Korea were shut for New Year’s Eve. In Asia, China’s benchmark CSI 300 Index closed at a five-year high. The yuan strengthened to the highest since June 2018.

Futures on the S&P 500 Index dipped 0.1% as of early morning London time.

The Stoxx Europe 600 Index fell 0.3%.

The MSCI Asia Pacific Index gained 0.2%.

The MSCI Emerging Market Index climbed 0.4%.

2. Bitcoin Touches $29,000 for Another Record High

Bitcoin vaulted above $29,000 to reach yet another record level on the last day of 2020, in a fitting end to a groundbreaking year for the world’s largest digital currency. It has advanced almost 50% in December, on track for its biggest monthly gain since May 2019. Bitcoin has now quadrupled in value this year amid the global coronavirus pandemic, while the wider Bloomberg Galaxy Crypto Index tracking the largest digital currencies is up about 280% as rival coins such as Ether have also rallied.

3. Slow Vaccine Campaign Raises Doubts of U.S. Dysfunction

U.S. health officials acknowledged that a Covid-19 immunization campaign is crawling out of the starting gate, raising the prospect that the nation’s all-in bet on vaccines could be afflicted by the same dysfunction that hobbled other measures to contain the pandemic. Only about 2.7 million Americans had been vaccinated as of Wednesday evening in New York. With one day remaining in the year, that represented roughly 13.5% of the U.S.’s stated goal of immunizing 20 million Americans by the end of 2020 — a number already repeatedly reduced. The task of delivering shots that could end a pandemic that has killed 341,000 U.S. residents is taxing a largely private medical system designed to maximize profit rather than deliver public health. Governments and institutions are struggling with complex logistics to keep the shots cold, organizing cohorts of people to receive them and persuading those made sceptical by a flood of online disinformation.

4. Homebuyers in the U.S. Face Worst Affordability Squeeze in 12 Years

Record-low mortgage rates were supposed to make it easier for homebuyers. Instead, they’ve helped push affordability to a 12-year low. Buyers in the fourth quarter needed to spend almost 30% of the average wage to afford a typical house, the biggest share for any three-month period since 2008. Low borrowing costs, now below 3% for a 30-year loan, have spurred a buying frenzy, driving up prices across the country as shoppers compete for a shrinking supply of listings. During the pandemic, prices have increased faster than earnings, leaping by double digits in 79% of the 499 counties included in the report. More than half of those counties are now less affordable than their historic averages.

5. Gold Heads for Best Year in a Decade With Dollar on the Ropes

Gold is set for the biggest annual advance in a decade after a tumultuous year, with gains this month aided by the dollar’s decline to the lowest level since April 2018. Bullion hit a record in August as investors feared an unprecedented wave of stimulus by central banks and governments would lead to currency debasement and inflation. Holdings in bullion-backed exchange-traded funds set an all-time high in October. While prices dropped as the roll-out of vaccines injected optimism into financial markets, the dollar’s continued weakness has helped support gold into the year-end.

6. U.K. Tells Public to Stay Home for New Year’s Eve Celebrations

Everyone in England should stay at home when they celebrate the New Year on Thursday night, the U.K. government said. People were asked to act as if they have Covid-19 to avoid spreading the virus. The advice is universal and applies to everyone regardless of which of England’s pandemic restriction tiers their region is in. The advice coincides with new rules putting 78% of the country’s population in the strictest tier 4 pandemic curbs, banning almost all household mixing and closing non-essential shops. While ministers say the rollout of vaccines will allow the country to start getting back normal by spring 2021, they have also warned the weeks ahead may be the hardest yet.

7. Bubble Tea Chain Naixue Raises New Funds at $2 Billion Value

The owner of bubble tea chain Nayuki, also known as Naixue’s Tea in Chinese, has completed a new funding round that values the company at nearly $2 billion. Shenzhen Pindao Restaurant Management Co. has raised more than $100 million in a Series C funding round led by private equity firm PAG. Billionaire Jack Ma’s Yunfeng Capital is also among the investors in the latest round. The bubble tea chain owner is considering an initial public offering in Hong Kong after the coronavirus outbreak clouded its earlier plans for a U.S. listing. The firm will spend the fresh funds on product research and supply chain digitization, while it has no IPO plan in the near term.

8. Tokyo Sets New Case Record; New Strain Spreads: Virus Update

Global deaths from Covid-19 passed 18 lakh. Tokyo recorded a record number of new infections, and Japan warned it could consider a state of emergency if the new outbreak can’t be contained. Cities that had gone weeks without new infections, including Beijing and Melbourne, are now reporting clusters, and the new, highly transmissible virus strain was found in Singapore and California. Countries around the world tightened border controls. The EU said it would bar travellers from the U.K. after Britain’s official exit on Jan. 1. Travel between Sydney and Melbourne will be blocked as of Jan. 2; both cities are seeing a resurgence in cases. Chinese authorities are urging people to stay home during the Lunar New Year holidays, which begin Feb. 11.

9. Putin Battles to Sell Russia’s Vaccine in New Rift With West

Russia is accusing the West of maligning its achievements in the global race to defeat Covid-19 as attempts to win key markets for its Sputnik V vaccine run up against the demands of regulators. Like neighbouring China, which is struggling to reassure nations testing its vaccines, Russia’s drive to convert what it calls a scientific triumph into geopolitical dividends has hit unexpected headwinds. President Vladimir Putin has pushed the inoculation in calls with other world leaders since touting Russia’s approval of Sputnik V in August as the globe’s first Covid-19 vaccine. But many countries’ regulators have been unwilling to give Sputnik V fast-track approval — even as they welcome U.S. and European vaccines that first completed comprehensive trials.

10. Ambani is no longer Asia’s richest man

Zhong Shanshan is a private billionaire who’s rarely quoted in the press. Now, after an improbable career spanning journalism, mushroom farming and health care, he’s become Asia’s richest person, eclipsing India’s Mukesh Ambani and a group of Chinese tech titans including Jack Ma. Zhong’s net worth has surged $70.9 billion this year to $77.8 billion, making him the 11th-richest person on the planet, according to the Bloomberg Billionaires Index. It’s one of the fastest accumulations of wealth in history, and all the more remarkable considering that until this year he was little known outside of China. Zhong, 66, isn’t involved in politics and his business interests aren’t entwined with other rich families such as the property tycoons, which is why he’s known locally as the “Lone Wolf.” He owes his success to two unrelated fields. He took vaccine maker Beijing Wantai Biological Pharmacy Enterprise Co public in April, then months later Nongfu Spring Co, a maker of bottled water, became one of Hong Kong’s hottest listings. Nongfu shares have jumped 155% since their debut, and Wantai’s are up more than 2,000%.

HAPPY NEW YEAR, READERS!

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China Probes Alibaba over Monopoly – Top 10 Global News

1. U.S. Futures Rise; Pound Gains on Brexit Deal Hope

U.S. futures climbed with European stocks and the pound jumped as investors awaited the unveiling of a post-Brexit trade accord after both sides earlier agreed on an outline of the deal. The Stoxx 600 Index edged higher ahead of an expected press conference from Prime Minister Boris Johnson on Thursday, which was delayed over last-minute haggling. Negotiators worked through the night putting the finishing touches on the historic pact, which will formally complete Britain’s separation from the European Union. The pound rose to the highest in about a week, while the euro was steady. Contracts on the S&P 500 Index nudged higher and most Asian stocks gained. Alibaba Group Holding Ltd. sank more than 8% in Hong Kong after China kicked off an investigation into alleged monopolistic practices at the tech giant.

Futures on the S&P 500 Index rose 0.1% as of early morning New York time.

The Stoxx Europe 600 Index increased 0.2%.

The MSCI Asia Pacific Index rose 0.5%.

The MSCI Emerging Market Index gained 0.4%.

2. GOP Blocks Bid for $2,000 Payments Trump Demanded

House Republicans blocked Democrats’ attempt to meet President Donald Trump’s demand to pay most Americans $2,000 to help weather the coronavirus pandemic. Republicans objected to the bill House Majority Leader Steny Hoyer sought to pass by unanimous consent Thursday to replace the $600 payments in the latest pandemic relief legislation with the $2,000 payments. Democrats will try again with a roll call vote on a new bill Dec. 28, when the House also plans a vote to override Trump’s veto on the National Defense Authorization Act.

3. China Targets Jack Ma’s Alibaba Empire in Monopoly Probe

China kicked off an investigation into alleged monopolistic practices at Alibaba Group Holding Ltd. and summoned affiliate Ant Group Co. to a high-level meeting over financial regulations, escalating scrutiny over the twin pillars of billionaire Jack Ma’s internet empire. The probe announced Thursday marks the formal start of the Communist Party’s crackdown on the crown jewel of Ma’s sprawling dominion, spanning everything from e-commerce to logistics and social media. The pressure on Ma is central to a broader effort to rein in an increasingly influential internet sphere: Draft anti-monopoly rules released November gave the government wide latitude to restrain entrepreneurs who until recently enjoyed unusual freedom to expand their realms.

4. New Virus Strain’s Transmissibility to Cause More Deaths

The mutated coronavirus strain that’s been spreading in the U.K. appears to be more contagious and will likely lead to higher levels of hospitalizations and deaths next year. The variant is 56% more transmissible than other strains. There’s no clear evidence that it results in more or less severe disease. The U.K. government had previously said the mutated variant appears to be as much as 70% more transmissible than other circulating strains. Additionally, it has almost two dozen mutations that may affect proteins made by the coronavirus. That has raised concern that tests, treatments and vaccines that just started rolling out might be less effective, though Europe’s health regulator said the variant probably isn’t different enough from earlier ones to elude Pfizer Inc. and BioNTech SE’s shot. Countries including Australia, Denmark and Singapore have also discovered the strain.

5. Brexit Deal Gets Held Up by Last-Minute Haggling Over Fish

U.K. and European Union negotiators are locked in talks in Brussels over the final details of a historic post-Brexit trade accord, with both sides engaged in last-minute haggling over fishing rights. While the outline terms of the deal, including broad fishing quotas, were agreed on Wednesday, negotiators have hit a last-minute disagreement over the precise number of each species EU boats will be able to catch in U.K. waters. It isn’t clear how long it will now take for the discussions to reach a conclusion. In a sign the deal may only emerge late on Christmas Eve, EU ambassadors, who are required to scrutinize any agreement after it is made public, were stood down on Thursday afternoon and told to make themselves available over the holiday period.

6. China’s Rebound Continues With Exports and Commodities Booming

China’s economic recovery continued in December, underpinned by booming global demand for exports, rising commodity prices and a rallying stock market. China was already pulling further ahead of other major economies in November, with domestic demand growing, foreign investment rising and record export demand propelling growth even as other major nations struggle amid soaring virus cases. With the Communist Party signalling there won’t be a sudden withdrawal of monetary and fiscal assistance, there’s growing confidence for a healthy expansion in 2021.

7. U.K. Strain 56% More Infectious; Israel Locks Down: Virus Update

China said it would pause flights to and from the U.K., which yesterday imposed tougher regulations across a swath of England in an effort to rein in a new strain of coronavirus. A study showed that the variant is 56% more transmissible than other strains, although there’s no clear evidence that it results in more or less severe disease. Pfizer Inc. and partner BioNTech SE will double the supply of their vaccines to the U.S., which said it has administered a total of more than 1 million shots in 10 days. California became the first U.S. state to surpass 2 million infections after a jump in cases. Israel’s cabinet approved a third national lockdown of as long as four weeks.

8. Robinhood Financial Hit With Class-Action Suit for Selling Stock Orders

Robinhood Financial LLC was sued in a proposed class action for allegedly failing to inform clients it was selling their stock orders to trading firms and effectively charging back-door commission fees. The complaint filed Wednesday in San Francisco federal court follows the company’s $65 million settlement last week with the U.S. Securities and Exchange Commission over similar allegations. While Robinhood touted “commission-free” trading on its platform, it didn’t disclose that it relied extensively on “payment for order flow,” collecting payment from market makers in exchange for executing trades, according to the suit.

9. Turkey Central Banker Tightens Again in Boost to Credibility

Turkey’s central bank governor delivered another meaty interest-rate hike, bolstering credibility with investors after he pledged to tighten policy when needed to keep prices in check. The Monetary Policy Committee led by Governor Naci Agbal lifted the one-week repo rate to 17% from 15% on Thursday. The lira extended gains against the dollar and was trading 0.9% higher. The Borsa Istanbul 100 Index of equities rose as much as 0.8% after the decision. The bank pledged in its rates decision to maintain a tight stance until it sees “a permanent fall in inflation,” citing risks from a weak lira, domestic demand and commodity prices including food costs.

10. Dover Truck Backups Persist on Christmas Eve Despite Progress

The U.K.’s main trucking gateway to the European Union remained backed up for the fifth day, despite progress moving traffic through the Port of Dover. Thousands of truckers were stuck in logjams around Britain’s busiest ferry port on Christmas Eve, separated from families, many as far away as Poland. Some 4,000 trucks alone were crowded onto the site of Manston Airport, a disused airfield in Kent being used to conduct Covid-19 testing required before they can board ferries to Calais, France. Some 170 military personnel tested truckers overnight, enabling their journeys to continue into Europe. France reopened its borders on Wednesday after a two-day blockade, on the condition that drivers have proof of a negative test.

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U.S. Passes $900 Billion Stimulus Package – Top 10 Global News

1. European Stocks Bounce Back as Dollar Advances

Stocks rebounded in Europe after their biggest drop in almost two months as Brexit talks continued and the U.S. Senate passed a coronavirus relief bill. The Stoxx 600 Index climbed as cyclicals staged a comeback following an outbreak of a new strain of the virus and a slew of lockdowns and travel curbs to contain it. Banks and retailers led gains. An 11th-hour proposal by U.K. Prime Minister Boris Johnson to secure a free-trade deal with the European Union was rejected, two officials said, deepening the slump in the pound. The island nation looks increasingly isolated with key transport links frozen to curb the spread of the variant virus taking hold in the U.K.

Futures on the S&P 500 Index climbed 0.2% as of early morning New York time.

The Stoxx Europe 600 Index jumped 0.8%.

The MSCI Asia Pacific Index decreased 0.9%.

The MSCI Emerging Market Index dipped 0.4%.

2. Massive Package of Virus Relief, Federal Funding Passes Congress

Congress passed a $2.3 trillion bill, the second-biggest economic rescue package in U.S. history as part of a massive year-end spending bill, concluding months of discord between Democrats and Republicans over how to address the pandemic that continues to surge across the country. In addition to funding government operations for the rest of the fiscal year, the legislation will provide aid for small businesses, supplemental unemployment benefits and $600 stimulus payments to most Americans and their children starting as soon as next week. It also includes money for schools, airlines and for distribution of vaccines.

3. S&P 500 Slumps Monday on Virus Angst After European Rout

U.S. stocks slumped, joining a global decline as a new variant of the coronavirus in the U.K. and a wave of lockdowns and travel restrictions damped spirits. The S&P 500 Index dipped about 0.4%, dragged lower by losses for Tesla, which fell more than 6% on its first day after being added to the U.S. benchmark. The weakness in U.S. markets was minor compared to the rout seen in Europe, where the Stoxx 600 Index slumped the most since October as Italy, the Netherlands, Belgium and France closed their borders to the U.K. Travel and leisure stocks were hard hit.

4. BioNTech CEO Confident Vaccine Will Work on U.K. Covid-19 Variant

German pharmaceutical company BioNTech is confident that its coronavirus vaccine works against the new UK variant, but further studies are needed to be completely sure, its chief executive said Tuesday. The variant, detected mainly in London and the southeast of England in recent weeks, has sparked concern worldwide because of signs that it may spread more easily. While there is no indication it causes more serious illness, numerous countries in Europe and beyond have restricted travel from the UK as a result. CEO Ugur Sahin told a news conference the day after the vaccine was approved for use in the European Union that the immune response by this vaccine scientifically also can deal with the new virus variants.”

5. Airbus Warns of $5 Billion in Lost Orders on AirAsia X Debt Plan

European plane-maker Airbus SE believes it may lose more than $5 billion of aircraft orders under struggling airline AirAsia X’s restructuring plans. Airbus Asia Pacific President Anand Stanley said in the court filing there’s a “strong possibility that Airbus will suffer substantial losses and prejudice” under the proposed restructuring plan for the Malaysian long-haul budget carrier. Airbus has already built or substantially built seven A330neos for AirAsia X and there are a further 71 of the wide-bodies on order, according to the filing. AirAsia X has also failed to pay $301.2 million in pre-delivery payments for its A330neo orders plus $2.5 million on A321XLR narrow-body jets.

6. U.K. Deficit Hits $323 Billion With Economy Facing Recession

U.K. government borrowing climbed to a record $323 billion in the first eight months of the fiscal year, reflecting the damage inflicted on an economy now at risk of falling back into recession. In November alone, spending exceeded tax revenue amid the escalating cost of supporting firms and households through the pandemic. It leaves Britain facing its largest ever peacetime budget deficit. Separate figures confirmed the economy rebounded strongly in the third quarter. But a contraction is expected this quarter, and hopes of recovery early next year are fading after the government tightened restrictions to combat a mutated coronavirus and several European countries banned entry from Britain.

7. EU Rebuffs Boris Johnson’s Latest Brexit Concession on Fish

The European Union rebuffed Prime Minister Boris Johnson’s latest concessions on fishing rights, dealing a setback to efforts to secure a post-Brexit trade deal. Johnson spoke with Commission President Ursula von der Leyen twice by phone on Monday to try and break the deadlocked negotiations. The U.K. made an offer that would see the value of the fish EU boats catch in British waters shrink by 30%, a substantially smaller drop than the 60% it was demanding last week. The bloc, however, refused to accept a reduction of more than 25%, saying even that was hard for countries like France and Denmark to accept.

8. Oil’s Slump Deepens as New Virus Strain Threatens Fuel Demand

Oil extended this week’s slump on fears that rising virus infections and a faster-spreading strain will inflict a new blow on fuel consumption. Futures are down more than 3% in New York since Friday’s close. Many countries have suspended travel with the U.K., where a new Covid-19 variant is forcing more than 1.6 crore people to stay at home. A resurgence of the virus gathered pace in Asia, with Taiwan recording its first locally transmitted infection since April and a cluster of cases swelling in Sydney.

9. Hang Seng Proposes Major Overhaul of Hong Kong Stock Index

Hang Seng Indexes is considering wide-ranging changes to Hong Kong’s stock benchmark that would dilute the influence of its largest companies. The five proposals include maintaining “a certain number of constituents classified as Hong Kong companies,” according to a 16-page consultation paper released Tuesday. Hang Seng is also considering increasing the number of companies to between 65 and 80, as well as capping weightings at 8% and fast-tracking new listings. The index currently has 52 members with weights limited to 10%. The sweeping proposal comes amid significant changes within the city’s stock market, as a wave of Chinese mega-caps chooses the financial hub as a preferred venue to sell shares.

10. World’s Longest Virus-Free Streak Ends With New Taiwan Case

The first locally transmitted case of Covid-19 in more than eight months was reported in Taiwan, ending what was the world’s longest stretch without a domestic infection and providing a reminder of the virus’s ability to outfox even the most successful efforts to contain it. A 30-year-old woman was confirmed to have caught Covid-19 in Taiwan, Health Minister Chen Shih-chung said at a briefing in Taipei Tuesday. While it has seen cases in travellers arriving from outside, Taiwan’s last infection within the community was April 12. The woman came into repeated contact between Dec. 7 and Dec. 12 with a pilot from New Zealand who had caught Covid-19 in the U.S. before travelling to Taiwan, according to Chen.

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Global Investors Dump Indian Bonds – Top 10 Global News

1. Futures Steady After S&P Record; Dollar Rebounds

A more sober mood settled on markets Friday amid fresh U.S.-China tensions and little progress on a federal spending deal in Washington. The dollar rose for the first day in five. S&P 500 futures steadied after the index closed at an all-time high on Thursday, as Congress rushed to complete a pandemic-relief deal. In a sign of renewed friction between Washington and Beijing, the U.S. Commerce Department announced it’s blacklisting Semiconductor Manufacturing International Corp. and more than 60 other Chinese companies “to protect U.S. national security.” U.S. stocks may also be more volatile than usual today with options and futures on indexes and equities set to expire.

Futures on the S&P 500 Index were little changed at early morning New York time.

The Stoxx Europe 600 Index dipped 0.1%.

The MSCI Asia Pacific Index sank 0.4%.

The MSCI Emerging Market Index declined 0.3%.

2. U.S. Blacklists More Than 60 Chinese Firms, Including SMIC

The U.S. Commerce Department announced it’s blacklisting Semiconductor Manufacturing International Corp. and more than 60 other Chinese companies “to protect U.S. national security.” “This action stems from China’s military-civil fusion doctrine and evidence of activities between SMIC and entities of concern in the Chinese military-industrial complex,” the Commerce Department said in a statement. Commerce Secretary Wilbur Ross confirmed the move in a Friday morning interview with Fox Business. It was reported first by Reuters overnight. Shares in China’s top chipmaker slid 5.2% Friday in Hong Kong on the news.

3. Global Investors Are Dumping Indian Bonds Like Never Before

Even when viewed in isolation, the $14 billion outflows from India’s bond market in 2020 is remarkable: Foreign investors have never sold so much in a single year. That they did so at a time when Chinese bonds are attracting record foreign inflows underscores just how frustrated some money managers have become with the pace of capital-market reforms by Narendra Modi’s government. While China’s steady progress on bond-market liberalization has earned it a spot in benchmark indexes and helped lure $119 billion of inflows this year, India still has some of Asia’s toughest restrictions on foreign funds. The country’s failure thus far to join China in global debt indexes is adding to investor concerns about meagre inflation-adjusted yields and a widening fiscal deficit.

4. EU Gives Johnson Fishing Ultimatum as Brexit Reaches Climax

The European Union’s chief Brexit negotiator, Michel Barnier, warned British Prime Minister Boris Johnson that he will have to accept limits on access to the single market in return for greater control overfishing — or face no deal. After his British counterpart issued a statement on Thursday night describing the talks as “blocked,” Barnier said a deal could be struck if both sides make “a real effort.” But, in a speech to the European Parliament on Friday, he gave a stark assessment of the ultimatum the EU is giving to the British: access to the EU’s single market will be conditional on keeping British fishing waters open to boats from the bloc.

5. Lloyds Bank Scraps All Bonuses for 2020 After Pandemic Hammers Profit

Lloyds Banking Group is cancelling bonuses for all staff this year as the Covid-19 pandemic weighs heavily on its earnings. A spokesperson for the bank confirmed it will not pay out any group performance share awards in light of expected profitability in 2020. Lloyds expects to set aside at least 4.5 billion pounds ($6 billion) this year for loans likely to fail in the economic turmoil that’s accompanied the pandemic. While it swung to a profit in the third quarter, full-year net income is set to be sharply lower at about 1.1 billion pounds, compared to 2.5 billion pounds in 2019. The lender had already said its group executive committee had given up their bonus entitlements for the year.

6. Finablr Uncovers $1 Billion in Hidden Debt as NMC Scandal Widens

Finablr, the listed owner of two foreign-exchange businesses, uncovered about $1 billion of debt hidden from its board that may have been used for purposes outside of the company, compounding a scandal that pushed its sister firm NMC Health into administration. The London-listed company and its creditors found that Finablr Group’s overall debt was about $1.3 billion, excluding the debt of its Travelex Holdings Ltd. unit and “materially above” its last reported figure, according to a statement. Finablr had $334 million of debt at the end of June, according to a statement at the time. Chairman B.R. Shetty resigned in the wake of this corruption scandal. The announcement of Shetty’s departure was followed by news that Britain’s tax authority intends to shut down Finablr’s UAE Exchange UK and Xpress Money Services.

7. Chinese E-Commerce Newcomers Doubles Amid IPO Frenzy

Two Chinese stocks that started trading in New York this week more than doubled Thursday amid an end-of-year frenzy for newly listed companies. Oriental Culture, a provider of e-commerce services for the collectibles and art market, climbed as much as 324%. And online organic food retailer Wunong Net Technology rose as much as 147%, adding to the 440% jump in its second trading session Wednesday. Both stocks triggered a handful of volatility halts on Thursday. 

8. Bank of Japan to Extend Covid Programs Amid Virus Surge

The Bank of Japan is widely expected Friday to extend its special funding measures for pandemic-hit businesses amid a resurgence of the virus that earlier this week forced the government to suspend domestic travel incentives. Some 66% of 38 economists surveyed said the bank will lengthen the duration of crisis programs that include increased purchases of corporate bonds and commercial paper and $1.1 trillion in funding tools to support bank lending to struggling firms. The programs are currently set to expire in March. All the analysts said the BOJ will likely keep its key interest rate and main asset purchases unchanged at the meeting.

9. Mandatory Covid-19 Vaccines for Travel Would ‘Kill the Sector’

The rollout of vaccines against Covid-19 has intensified the debate about whether they should be made mandatory, with the head of a major tourism lobby saying that doing so would cause irreparable harm to the struggling sector. “I don’t think governments will require vaccination next year” for travel, Gloria Guevara, head of the World Travel and Tourism Council, said at a press conference Thursday. “If they do that they will kill their sector.” Those first in line to get the jabs include the elderly and vulnerable, who “are the last people who will travel,” she said. Instead, rules for virus testing before departure are likely to be bolstered. So far, no country has made vaccination compulsory for people crossing borders.

10. Saudi Wealth Fund Put 2008 Crisis Lessons to Use in 2020

The fund received a $40 billion transfer from the nation’s reserves in March so it could take advantage of the crash in markets, buying stakes in companies including Citigroup, Facebook and cruise-ship operator Carnival. By the end of June, it had sold most of those stakes and switched to holding about $7 billion in exchange-traded funds. The $350 billion sovereign wealth fund is a key lever for Crown Prince Mohammed bin Salman to revive growth. He is seeking to get his economic master plan, known as Vision 2030, back on track after what may be the deepest recession the world’s largest crude exporter has experienced in decades.

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U.S. Revisits Economic Stimulus Package – Top 10 Global News

1. Stocks Rise, Bonds Dip Amid Hope for Stimulus Deal

Global stocks approached another record high as hopes for a U.S. stimulus deal countered fears about resurgent coronavirus cases. Benchmark Treasuries and the dollar slipped for the first time this week. Health-care and banking shares led gains in Europe after equities rose across much of the Asia Pacific. Global equities were energized by the White House’s surprise re-entry into pandemic-relief talks with a $916 billion proposal that opened a potential new path to a year-end deal. S&P 500 futures edged up. Nasdaq 100 contracts slipped following the gauge’s 10th straight gain.

The Stoxx Europe 600 Index climbed 0.7% as of early morning New York time.

Nasdaq 100 Index futures sank 0.1%.

Futures on the S&P 500 Index climbed 0.2%.

The MSCI Asia Pacific Index gained 0.8%.

2. White House Return to Stimulus Talks Boosts Chance of a Deal

Treasury Secretary Steven Mnuchin made a surprise re-entry into talks on a 2020 pandemic-relief package with a $916 billion proposal that opened a potential new path to a year-end deal despite objections from Democrats over elements of the plan. After largely leaving the task to Senate Majority Leader Mitch McConnell since Election Day, Mnuchin pitched a $916 billion stimulus plan to House Speaker Nancy Pelosi in a Tuesday afternoon telephone call. The Mnuchin plan differs in important ways from the alternative that Pelosi and Schumer endorsed as a basis for fresh talks. It includes $600 stimulus payments to individuals, which could win support from both Republicans and Democrats.

3. China State-Backed Covid Vaccine Has 86% Efficacy

China’s state-backed coronavirus vaccine protected 86% of people against Covid-19 in trials conducted in the United Arab Emirates, giving credence to the quickly developed shot that Beijing intends to distribute around the developing world. The data was from trials that included 31,000 volunteers in the UAE, which found the vaccine was highly effective in preventing moderate and severe cases of Covid-19 and had no serious safety concerns. That’s expected to pave the way for full public use of the vaccine and a re-opening of the Gulf nation’s economy. In an early sign of how the vaccine could be a gamechanger to “resume all activities within two weeks” including economic, tourism and cultural operations.

4. DoorDash Set for Trading Debut After IPO Raises $3.37 Billion

DoorDash is making its trading debut Wednesday after raising $3.37 billion in an initial public offering with Airbnb’s IPO set to follow within hours. San Francisco-based DoorDash sold 33 million shares Tuesday for $102 each after marketing them for $90 to $95 each. The company has a fully diluted value of about $38 billion, which includes employee stock options and restricted stock units as detailed in its filings. DoorDash’s IPO is the third-largest U.S. listing this year. The food delivery company is part of a cadre of consumer-facing, web-based businesses that have successfully navigated the coronavirus pandemic and are expected to go public this month.

5. Tesla Shares Are Dramatically Overvalued : JPMorgan

Tesla’s shares are now “dramatically” overvalued and investors thinking of raising their holdings in the company ahead of its impending addition to the S&P 500 Index should not, JPMorgan analyst Ryan Brinkman wrote in a note on Wednesday. The analyst pointed out that in the past two years Tesla shares have risen over 800%. Analysts have raised their price targets by about 450%, and also simultaneously lowered their earnings estimates for the company for the years 2020 through 2024. This data is “strongly suggestive of the idea that something apart from the fundamentals (speculative fervour?) is driving the shares higher,” Brinkman added.

6. Ray Dalio Sees ‘Flood of Money’ With Soaring Asset Prices

Ray Dalio stressed the importance of diversification in a Reddit Ask Me Anything event on Tuesday where he said that a “flood of money and credit” was unlikely to recede. “Assets will not decline when measured in the depreciating value of money,” the billionaire investor told users of the discussion network who asked for his perspective on where financial markets are headed. “I believe that with the enormous amount of debt and money that has been created and will be created in the future, the most important thing to pay attention to is the value of debt and money relative to the value of assets and other currencies.” Dalio added that he saw no reason that stocks couldn’t trade at 50 times earnings and recommended “smart diversification” among asset classes, currencies and countries.

7. Johnson Says No U.K. Leader Could Accept EU Terms: Brexit Update

Boris Johnson said no British prime minister could accept the European Union’s Brexit demands as he prepared to head to Brussels for a showdown with the European Commission’s Ursula von der Leyen on Wednesday. The premier’s team hopes the face-to-face conversation with the Commission president will inject political impetus into the deadlocked process. If the dinner goes well, negotiators could be back in a room hammering out the details within hours. If it goes badly, officials on both sides fear the chances of an agreement being ready before the end of December — when the Brexit transition period expires — will fade away.

8. JPMorgan Says Equities to Get a $1.1 Trillion Boost Next Year

Those with a bullish outlook for stocks in 2021 are set to get another uplift: more demand and less supply to the tune of $1.1 trillion. That’s the conclusion of global market strategists at JPMorgan Chase & Co. as they expect a rise in equity demand of about $600 billion relative to this year. Meanwhile, supply will drop by $500 billion, returning to the very low levels of 2016 to 2018. “This is similar to the equivalent equity demand/supply improvement in 2019 relative to 2018 which at the time had seen global equities rising by around 25%,” JPMorgan said.

9. China’s Yuan Rapidly Falls at Close After Hitting Strongest Level in 2 Years

China’s yuan weakened minutes before Wednesday’s official close, reversing an earlier gain that had pushed the currency to its strongest level in more than two years. The onshore yuan fell as much as 0.26%, touching its session low. The rapid move came after the offshore yuan had earlier strengthened past 6.5 per dollar for the first time since 2018, expanding the gap between the two rates to one of the widest seen this year. A few large Chinese banks were seen buying dollars in a large volume around market close.

10. U.K.’s Vaccine Warning; Merkel Urges Sacrifice: Virus Update

The U.K.’s vaccination campaign hit a snag on its second day as two people with allergies experienced reactions to the shot, and France and Germany battled worsening virus numbers despite weeks of curbs. Chancellor Angela Merkel urged Germans to make an additional sacrifice over the Christmas holidays to contain the coronavirus as the country’s soft shutdown fails to slow its spread. People with a significant history of allergies should not get the vaccine from Pfizer Inc. and BioNTech SE, the U.K.’s National Health Service said after two people experienced reactions. U.S. regulators indicated they may grant the shot emergency-use authorization.

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U.K. approves Pfizer Vaccine – Top 10 Global News

1. U.S. Futures Dip; Pound Slides on Brexit Angst

Futures on U.S. equity indexes slipped a day after closing at record highs and European shares edged lower as investors struggled to find fresh catalysts to add more risk. Pro-cyclical sectors including auto and travel shares dragged the Stoxx Europe 600 Index modestly lower. Britain’s pound slumped after the European Union’s chief Brexit negotiator Michel Barnier reportedly told envoys the outcome of any deal is still too close to call. Salesforce.com fell more than 4% in pre-market trading after agreeing to buy software maker Slack. for $27.7 billion. Pfizer climbed after its Covid-19 shot was cleared for deployment in the U.K. as soon as next week.

Futures on the S&P 500 Index decreased 0.2% as of early morning New York time.

Nasdaq 100 Index futures declined 0.2%.

The Stoxx Europe 600 Index fell 0.2%.

The MSCI Asia Pacific Index increased 0.2%.

2. The U.K. Approves Pfizer’s Vaccine, Roll-out Next Week

Now that Britain has become the first western country to approve a Covid-19 shot, the spotlight shifts to the high-stakes rollout. Vaccinating the country’s roughly 6.7 crore people won’t happen overnight. The U.K. has ordered enough doses of the two-shot Pfizer-BioNTech vaccine to immunize 2 crore people. The government plans to prioritize as it begins to deploy the vaccine, starting with residents and staff in care homes, then moving to people over 80 years old and health-care workers. Britain will immunize people throughout the wider population next, based on age and risk. The shot is expected to be available from next week.

3. Barnier Voices Caution as Brexit Negotiators Race to a Deal

British and European Union officials are racing to strike a post-Brexit trade deal before the start of next week, with EU chief negotiator Michel Barnier telling envoys the outcome is still too close to call. While intensive, round-the-clock talks in London are making progress, genuine disagreement remains on the two biggest obstacles, meaning it’s impossible to predict an outcome with any certainty. A third issue — how the deal would be enforced — can only be overcome at the end. However, two officials said the general mood on both sides is one of optimism. 

4. OPEC+ Works Silently to Repair Crack at Oil Coalition’s Core

After failed talks exposed a dangerous fissure at the alliance’s core, OPEC and its partners are quietly working to repair the damage. Key players in the 23-nation alliance are making diplomatic efforts to resolve a dispute — centred around Saudi Arabia and the United Arab Emirates — over how much crude to pump in the new year. On Monday, differences between the Saudis and the UAE prevented the cartel from reaching a clear agreement on whether to delay a planned production increase. Traditionally stalwart allies, a fissure has emerged between the two Persian Gulf exporters as Abu Dhabi pursues a more independent oil policy.

5. Global Bank Job Cuts Reach Five-Year High

Banks around the world have announced the most job cuts in five years as the pandemic adds further pressure to business models upended by the digital revolution. ABN Amro Bank and Banco de Sabadell disclosed plans to eliminate as many 4,600 positions between them this week, taking the total to 85,540 globally, according to data compiled by Bloomberg. That’s the most since 2015, when deep overhauls of several major lenders called for a combined 91,448 positions to be axed. These moves are a reminder that Europe is at the epicenter of the industry’s job cuts, with its lenders facing record-low and even negative interest rates.

6. Grab, Gojek Close In on Terms for Merger

Grab and Gojek have made substantial progress in working out a deal to combine their businesses in what would be the biggest internet merger in Southeast Asia. The region’s two most valuable startups have narrowed their differences of opinion, though some parts of the agreement still need to be negotiated. The final details are being worked out among the most senior leaders of each company with the participation of SoftBank Group’s Masayoshi Son, a major Grab investor.

7. SoftBank Is Winding Down Options Bets After Investor Fallout

SoftBank Group is quietly winding down its controversial derivatives strategy after a sustained backlash from investors. The Japanese conglomerate is letting its options expire, instead of maintaining its positions. About 90% of the contracts will close out by the end of December because they are short-term. SoftBank will hold on to its underlying portfolio of big tech stocks, which included Amazon and Facebook. SoftBank shareholders balked after SoftBank’s foray into derivatives trading was first disclosed in September, cutting the company’s market value by as much as $17 billion. Investors have questioned the rationale of a company known for its years-long bets on technology startups dabbling in public securities, especially derivatives. They have also criticized founder Masayoshi Son for taking a personal stake in the trading.

8. HSBC’s Loyal Hong Kong Investors Find Redemption in 51% Rally

Europe’s biggest lender is up 51% in Hong Kong since touching its 25-year low in September and is the best-performing stock on the Hang Seng Index this quarter. Just two months ago, investors were fretting over how mounting regulatory and economic pressures would squeeze the firm’s key businesses in Asia. But a lot has changed since then. British regulators have signalled they would consider softening their stance on a dividend ban imposed on banks in March at the height of the pandemic. Also, HSBC recorded better-than-expected third-quarter results on cost savings while investors have piled into financial stocks as part of a sector rotation.

9. After Aramco, Plenty More IPOs rain in Saudi Arabia

One year on from oil giant Saudi Aramco’s record-busting initial public offering in Riyadh, the exchange has continued to enjoy a steady stream of listings. Deals are already lining up for 2021. For years, the twists and turns leading up to Aramco’s listing dominated Saudi Arabia’s IPO market. The decision to float on Riyadh’s Tadawul exchange and to largely forgo international investors sparked concerns that the $29 billion deal would soak up all the available local liquidity for years. That fear has turned out to be unfounded. This year, four companies have gone public on the Saudi exchange, raising a combined $1.5 billion. That’s more than the $1.3 billion worth of IPOs in Germany, though far behind the Aramco year of 2019.

10. Australia’s economy bounced back in the third quarter

Australia’s economy rebounded sharply in the third quarter from a coronavirus-induced recession as consumer spending surged, though the country’s top central banker signalled monetary policy will stay supportive of growth for a while. The latest data show that the 2-trillion Australian dollar ($1.5 trillion) economy expanded at a faster-than-expected rate of 3.3% in the September quarter, following a 7% contraction in June, as the country largely brought COVID-19 under control. The rebound was led by household spending, which rose 7.9%, driven by aggressive fiscal and monetary stimulus programmes since March.

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Giant U.K. Retailers go Bankrupt – Top 10 Global News

1. Stocks Bounce Back With U.S. Futures; Dollar Slips

Global stocks and U.S. futures are starting December on a bullish note with a rebound from Monday’s retreat. Cyclical shares led the Stoxx Europe 600 Index higher as banks, miners and energy firms climbed. U.K. stocks were up almost 2% after Goldman Sachs strategists called them a buy ahead of a Brexit trade deal. The risk-on mood carried across other markets. Bitcoin is approaching $20,000 and futures on the Russell 2000 Index of small-cap stocks outperformed the tech-heavy Nasdaq 100 Index. The dollar weakened against most of its major peers.

Futures on the S&P 500 Index increased 0.8% as of morning London time.

The Stoxx Europe 600 Index gained 0.9%.

The MSCI Asia Pacific Index rose 1%.

The MSCI Emerging Market Index rose 1.2%.

2. Pfizer, BioNTech Seek EU Clearance for Covid-19 Vaccine

Pfizer and BioNTech sought regulatory clearance for their Covid-19 vaccine in the European Union, putting the shot on track for potential approval there before the end of the year. The European Medicines Agency said it could issue an opinion within weeks, with a meeting on the assessment scheduled for Dec. 29 at the latest. Submitted on Monday, the formal application caps a rolling review process that started on Oct. 6 and allowed Europe’s drugs regulator to examine data on the vaccine as it emerged. Governments around the world are eager to start vaccinating their populations to curb the pandemic. Rival Moderna requested clearance in the U.S. and Europe on Monday. The U.K. invoked a special rule to allow its regulator to bypass its EU counterpart and maybe the first to sign off on the Pfizer-BioNTech product. The U.S. isn’t far behind, with a Food and Drug Administration panel set to meet on Dec. 10 to discuss the vaccine.

3. Exxon Faces Historic Writedown After Energy Markets Implode

Exxon Mobil is about to incur the biggest writedown in its modern history as the giant U.S. oil and gas producer reels from this year’s collapse in energy prices. Exxon — traditionally far more reluctant to cut the book value of its business than other oil majors — on Monday disclosed it will write down North and South American natural gas fields by $17 billion to $20 billion. That could make it the industry’s steepest impairment since BP’s 2010 Gulf of Mexico oil spill that killed 11 workers and fouled the sea for months. Meanwhile, capital spending will be drastically reduced through 2025. The announcement comes in the waning days of a gruelling year for Chief Executive Officer Darren Woods, who’s resorted to laying off thousands of employees, curtailing retirement benefits and cancelling ambitious growth projects. 

4. Two U.K. Retail Collapses Threaten 25,000 Jobs in 24 Hours

The U.K. retail industry suffered one of the harshest blows yet after two of the country’s best-known retailers collapsed, putting 25,000 jobs at risk in less than 24 hours. Debenhams said Tuesday morning it’s preparing to close its doors for good after failing to find a buyer. Late Monday, Philip Green’s Arcadia Group, which owns brands including Topshop and Dorothy Perkins, began insolvency proceedings. Both retailers have anchored malls and main streets across Britain for decades and operate about 600 stores combined. U.K. retailers have suffered a double whammy: the pandemic hit as many were struggling to adjust to online competition. The industry is set to lose 235,000 retail jobs this year, according to the Centre for Retail Research.

5. European Central Bank Warns Against Hopes for Blockbuster Stimulus

The European Central Bank should focus on keeping financial conditions at current levels through the crisis rather than announcing a blockbuster stimulus package that beats market expectations, according to Executive Board member Isabel Schnabel. Just over a week before the ECB Governing Council’s policy decision, Schnabel confirmed that more support is likely because the pandemic will be more protracted than expected. But she also noted that borrowing costs have dropped to record lows because of monetary and fiscal aid, and what is most important is sustaining that state of affairs until the crisis is past.

6. Pound Rises as Traders Bet on Brexit Breakthrough Within Days

The pound advanced to the highest level in three months as anticipation grew that the U.K. and European Union may strike a trade deal soon. Pound sterling rose as much as 0.6%, sending the currency above September-highs. Irish Prime Minister Micheal Martin told the Irish Times he’s hopeful for a Brexit deal by the end of the week, echoing similar comments by French European Affairs Minister Clement Beaune. With time running short to ratify any agreement before the transition period ends on Dec. 31, momentum is building for a pact. It was spurred by relief the U.K. and EU seemed willing to negotiate a deal and on optimism over the developments of several Covid-19 vaccinations.

7. Xiaomi Seeks Up to $4 Billion in Shares, Convertible Bonds

China’s No. 2 smartphone maker Xiaomi Corp. is seeking to raise as much as $4 billion from a combined share placement and sale of convertible bonds, adding to a war chest aimed at expanding its market share from competitor Huawei. Xiaomi is selling 100 crore shares in a top-up placement to raise as much as $3.2 billion. Xiaomi is also seeking $855 million through a seven-year, zero-coupon convertible bond. Xiaomi shares had been on a rally this year, rising 146% from a year ago. However, its stock slipped after it disclosed that its internet services revenue had grown at its slowest pace in three years in the September quarter. It grabbed market share from Huawei when American sanctions deepened particularly in overseas markets from Europe to India.

8. OPEC+ Talks Delayed as Split Deepens Between Key Gulf Allies

OPEC+ talks were delayed for two days to give ministers more time to reach a deal, after a long and tense meeting on oil production broke down without an agreement. The move was the most dramatic sign yet of the deep division inside the cartel after hours of talks on Monday yielded no result. Oil prices, which have rallied on vaccine hopes as well as expectations that OPEC will maintain its current output curbs, slipped on the news. OPEC ministers met on Monday and had been scheduled to talk to their non-OPEC partners on Tuesday. At one point, there had appeared to be a consensus building between ministers yesterday, but the meeting then became unusually fraught. The run-up to the meeting saw new cracks emerge in the relationship between the United Arab Emirates — a core part of the group — and other members. The UAE’s national long-term strategy to crank up production is clashing with the cartel’s current restrictions.

9. Oyo Has $1 Billion to Fund Operations Until IPO, CEO Tells Employees

Ritesh Agarwal, founder and CEO of Oyo Hotels, told employees the Indian startup is making progress in recovering from the coronavirus fallout and has about $1 billion (INR 7500 cr) to fund operations until an IPO. The 27-year-old entrepreneur made the comments in a fireside chat with Oyo board member Troy Alstead, after the once high-flying company endured months of layoffs and losses as Covid-19 hammered its business. Oyo is one of the largest startups in the portfolio of SoftBank Group, reaching a valuation of $10 billion (INR 75,000 cr) before the downturn. Agarwal said the company’s focus is on getting revenue per available room to 60% to 80% of pre-pandemic levels across all markets. India, China, Japan and Southeast Asia are making progress in reaching that range, he added.

10. Wendy’s to Open 250 Cloud Kitchens in India as Virus Hits

Wendy’s has struck a deal with India’s Rebel Foods to open about 250 cloud kitchens across the country, one of the most ambitious efforts yet to serve customers through delivery rather than the traditional fast-food stores as the industry adapts to the coronavirus pandemic. The U.S. company is experimenting with a new format as the Covid-19 outbreak makes many consumers unwilling or unable to visit traditional stores. Cloud kitchens, which derive their name from cloud computing, are remote facilities without seating or cashiers that prepare food exclusively for delivery. Wendy’s, with nine brick-and-mortar outlets in India, said it believes its cloud kitchen alliance is the largest yet in the industry. Rebel Foods, backed by Sequoia Capital and Goldman Sachs Group is the world’s largest cloud-kitchen operator with more than 300 locations.