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Meme Stocks Go Brrrr Again! – Top 10 Global News

1. Bonds Drop With Tech Futures on Inflation Worries

The selloff in global bonds deepened as the benchmark Treasury yield hit a one-year high and debt from the U.K. to Australia came under pressure. U.S. stock futures slumped, with tech shares once again bearing the brunt of selling as investors rotated to companies poised to benefit from an end to pandemic lockdowns. Across markets, investors are betting on a sunnier outlook for the global economy and the risk that inflation is just around the corner. U.S. data showed fewer-than-forecast jobless claims last week. Commodities also extended gains, with investors piling into metals that can ride faster growth trends. Copper moved closer to a record high set a decade ago and aluminium touched a two-year high.

Futures on the S&P 500 Index dipped 0.4% as of 8:16 a.m. New York time.

The Stoxx Europe 600 Index decreased 0.1%.

The MSCI Asia Pacific Index surged 1.3%.

The MSCI Emerging Market Index added 1.2%.

2. GameStop Reignites Meme Stock Frenzy With $7.6 Billion Surge

GameStop soared in premarket trading Thursday as retail investors revived the surge in Reddit-favorite stocks, putting it on pace to reap $7.6 billion in market value over two days. The video-game retailer rose as much as 83% in New York. Among other favourites of traders populating Reddit forums, AMC Entertainment advanced 12% premarket after gaining 59% in the first three days of the week, while Koss surged 78%. Nokia Oyj, also a favourite of the meme crowd, climbed 7.7% in Europe, and BlackBerry added 5.3% in early trading.

3. Coinbase Files to Go Public on Nasdaq Via Direct Listing

Coinbase, the biggest U.S. cryptocurrency exchange, filed to go public via a direct listing, in what’s anticipated to be a break-through moment for the industry. The company won’t raise any proceeds in the transaction, Coinbase said in a filing with the U.S. Securities and Exchange Commission on Thursday. Coinbase’s offering could be the first major direct listing to take place on the Nasdaq. All previous ones, including Spotify, Slack, Asana and Palantir were listed on the New York Stock Exchange.  Started in 2012, Coinbase has raised more than $500 million from backers that include Andreessen Horowitz, Y Combinator and Greylock Partners. It was valued at more than $8 billion in 2018 after a $300 million funding round led by Tiger Global Management.

4. Debt Crisis Threatens Developing Nations: World Bank Head

Developing nations remain at risk of a debt crisis due to the impact of the global pandemic, and the World Bank is working on ways to reduce the burden, President David Malpass said. The Washington-based development lender and the International Monetary Fund are collaborating closely on designing plans that connect debt reductions to freeing up resources for countries to invest in health care and initiatives to fight climate change, Malpass said. A debt crisis is “a prominent risk for some of the countries at the bottom, and that has to do with the difficulty of getting new investment,” Malpass said. “The rest of the world should see that there’s a beneficial linkage” in finding ways to reduce unsustainable debt in developing countries, he said.

5. Facebook, Netflix Face Fresh Scrutiny as India Tightens Grip

India joined the global regulatory push to rein in Silicon Valley technology giants, tightening rules that govern how social media and streaming companies do business in the world’s biggest democracy. The new rules that come into immediate effect will require the likes of Facebook and Twitter to take down unlawful content quicker. Messaging apps can be asked to provide the identity of the originators of unlawful messages on their platforms, implying the likes of Whatsapp may have to break the encryption and dilute users’ privacy safeguards. Streaming services such as Netflix, Google’s YouTube and Amazon.com Inc.’s Prime Video face stricter oversight over content containing sexually explicit scenes, violence and abusive language.

6. Norway’s $1.3 Trillion Fund Dumped Saudi Shares, Added Qatar

Norway’s $1.3 trillion sovereign wealth fund slashed its exposure to Saudi Arabian stocks last year while boosting its portfolio in neighbouring Qatar by almost seven times. Total holdings of shares in Riyadh fell to about $194 million as of the end of December from $420 million the year before. In Doha, exposure surged to $582 million from $80 million. Qatar is now its second-biggest holding in the Gulf after the United Arab Emirates. The shift highlights a turn by the world’s biggest sovereign wealth fund in two Gulf countries that were on opposite sides of a spat in the oil-abundant region that ended in January after almost four years.

7. China’s Traders Are Hoarding Scrap Copper as Rally Powers On

The supply tightness that has helped fuel copper’s epic rally is showing signs of spilling over to the Chinese scrap market, with traders hoarding the metal on bets on further price gains. Refined-copper’s premium over scrap slid to 3,934 yuan ($610) a metric ton on Thursday, a 10% drop from Monday, when it hit the highest in eight years, according to data from Mysteel Global. The spread has narrowed as prices of the waste metal climbed after some traders hoarded supplies in anticipation of even more gains.

8. Pfizer-BioNTech Shot Could Help End Pandemic: Israel Study

Pfizer and BioNTech SE’s Covid-19 vaccine was overwhelmingly effective against the virus in a study that followed nearly 1.2 million people in Israel, results that public-health experts said to show that immunizations could end the pandemic. Two doses of the vaccine prevented 94% of Covid-19 cases in 596,618 people vaccinated between Dec. 20 and Feb. 1, about one-quarter of whom were over the age of 60. The researchers matched each vaccinated person with someone who hadn’t gotten a shot, enabling the best analysis yet of whether extremely good results from an earlier clinical trial would hold up in the real world. The Pfizer-BioNTech shot cleared every hurdle. It was so effective, in fact, that outside experts said that with broad enough use it may be possible to halt the pandemic.

9. Fallen Diamond Billionaire Loses Bid to Stop India Extradition

One-time diamond tycoon Nirav Modi lost a bid to challenge his extradition from the U.K. to India, where he’s wanted on charges that he orchestrated the largest bank fraud in the country’s history. Modi is accused of defrauding state-run Punjab National Bank of around $2 billion over seven years. In addition, the one-time billionaire jeweller is charged with threatening to have a witness killed if he testified against him. London Judge Sam Goozee on Thursday dismissed Modi’s argument that he would face an unfair trial if he were extradited to India.

10. U.K. Companies Say Brexit Paperwork Is Biggest Headache

British companies say new customs forms required following Brexit are the biggest hurdle to trading with the rest of the world. About 38% of exporters and 39% of importers identified form-filling as their main hurdle. While half of the exporters reported no difficulties trading internationally, the concerns on paperwork exceeded those about disruption at U.K. borders and transportation costs. The findings add to evidence that friction at ports is weighing on Britain’s ability to trade following after the nation left the European Union’s common customs system. Importers are warning they face even more red tape when new regulations come into force in April and July. Almost a third of the companies moving goods from Britain to Northern Ireland in  the past two weeks said volumes have fallen.

Curated from Bloomberg.com

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Bitcoin Rally Peaks $50,000 – Top 10 Global News

1. Stocks Set for Longest Winning Streak in 17 Years

Global stocks are in the midst of the longest run of gains in 17 years as optimism over the economic recovery sweeps across markets. The MSCI benchmark for emerging and developed market stocks has risen for 12 straight sessions, while U.S. equities were set to open higher after a public holiday. In Japan, the Nikkei 225 Stock Average extended its advance past the 30,000 level. European markets steadied after a rally on Monday. At the same time, investors are riding a wave of speculative euphoria from penny stocks to Bitcoin amid abundant policy support.

2. Bitcoin Jumps to $50,000 as Record-Breaking Rally Accelerates

Bitcoin blew through another milestone, surging past $50,000 for the first time as the blistering rally in the largest cryptocurrency continues to captivate investors worldwide. The world’s largest cryptocurrency reached about $50,191 as of 7:32 a.m. in New York and is now up about 73% so far this year. Ether, a rival crypto, hit a record on Friday and is up about 140% year-to-date. After ending last year with a fourth-quarter surge of 170% to around $29,000, Bitcoin token jumped to $40,000 seven days later. It took just nearly six weeks to breach the latest threshold, buoyed by several endorsements.

3. Plummeting Cases in U.S. Show a Path to Crushing Covid-19

Covid-19 cases and hospitalizations are dropping dramatically across the U.S., suggesting that measures to interrupt transmission are working, at least for now. More than 27.6 million Americans have tested positive, likely giving them some degree of immunity. A rising number — 11.8% of the population — has now received at least one dose of a vaccine. And data gathered from mobile phones suggest people are being more cautious day-to-day. If cases keep falling, it could buy time for the vaccination effort to take hold in the warm summer months ahead, potentially underpinning a long-sought economic recovery. Health experts, though, anticipate challenges. Inoculations need to outpace highly contagious variants from the U.K. and South Africa.

4. Swiss Wealth Tax Rakes in Cash as Covid Stokes Global Debate

Switzerland’s wealth tax offers a rare real-world example of how a levy on assets can work, just as such ideas gain traction elsewhere in the wake of the coronavirus crisis. The measure forces residents in one of the world’s richest nations to tally the value of their investments, real estate, cars, fine art, Bitcoin, and even beehives and cows. A percentage is then skimmed off by cantonal governments, varying in size and method depending on the canton. With the Covid-19 fallout causing government debt to swell, and hurting poorer people most, wealth taxes are being debated from California to the U.K. as a tool both to pay down debt and address inequality.

5. Sunak May ‘Go Big’ On Stimulus Spending in U.K. Budget

Rishi Sunak can afford to follow the U.S. and “go big” on spending to bolster a post-pandemic recovery in the U.K., a Citigroup economist said as the chancellor of the exchequer prepares his annual budget. At the same time, the British measures should be “better targeted” than the ones President Joe Biden set out, according to Ben Nabarro, the bank’s U.K. economist. He warned that many years of deficits mean that the U.K. Treasury has less room for manoeuvre than the U.S. “We have the capacity to go big for sure, but at the same time, it’s important that we do keep a medium-term anchor on the public finances,” Nabarro said at a briefing on Tuesday organized by the Institute for Fiscal Studies in London.

6. GS Opens Investing App to Anyone With as Little as $1,000

Goldman Sachs Group took another step toward going mainstream, launching an investing app for customers that want to put at least $1,000 to work. Investors using the service, which went live Tuesday, can put money into automated portfolios rather than individual stocks and bonds. The move expands the Marcus platform, which also offers a high-interest savings account. Goldman, which has traditionally served a wealthier client base, is taking steps to broaden its reach through new digital products. The investing platform features exchange-traded funds that focus on traditional stock and bond benchmarks, impact investments and smart-beta products designed by Goldman.

7. World’s Fastest Vaccine Pushes Return to Normal in Israel

Israel’s world-leading vaccination campaign is poised to achieve what millions in the country and many more outside it have desperately sought for a year: a return to normal life. In the six weeks since Israel began administering the second dose of the Pfizer/BioNTech vaccine, about 80% of those at highest risk have been inoculated. As the numbers have grown, hospitals have reported a steady decline in seriously ill coronavirus patients and the rate of overall spread. The Pfizer vaccine led to 94% fewer symptomatic illnesses and 92% fewer critically sick cases, according to a study of 1.2 million people by Israel’s largest health maintenance organization. That success has spurred the government to ease restrictions on movement that have been in place for months.

8. Shots Are Helping Control Covid Worldwide: Virus Update

Vaccination drives have begun delivering results, with a report in the U.K. suggesting that people over age 80 — a high-priority group — were the most likely to test positive for Covid antibodies. That followed an Israeli study showing a 94% drop in symptomatic cases among the vaccinated. In Romania, which has immunized most of its health-care workers, infection rates in hospitals have plummeted 87% in recent weeks. U.S. cases and hospitalizations are also dropping dramatically. In Hong Kong, a panel recommended approval of Chinese developer Sinovac Biotech Ltd.’s vaccine, paving the way for a second shot.

9. Gulf Fund Raises $75 Million for Mideast, North African Startups

A Gulf venture capital firm created a year ago has raised $75 million to deploy in startups across the Middle East, as rich Saudi companies and families seek to monetize on the boom in technology firms. Nuwa Capital, based both in Dubai and Riyadh, has finished the first round of investment in its Nuwa Ventures Fund I and targets reaching the $100 million mark this year. The appetite for tech firms has been increasing among Gulf investors as governments in the region step up efforts to steer their economies away from oil. 

10. Singapore Trims Deficit, Digs Deeper Into Reserves for Covid Aid

Singapore plans to rein in its budget deficit as the economy recovers while digging deeper into government reserves for a new S$11 billion ($8.3 billion) package to help households and businesses rebound from the Covid-19 pandemic. The new package comes after Singapore’s economy endured its biggest-ever contraction in 2020, with gross domestic product shrinking 5.4%. Growth is expected to rebound to 4%-6% this year, but the outlook remains challenging for some important sectors including aviation, transport and hospitality.

Curated from Bloomberg.com

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$2 Trillion to Move Out of London on Brexit – Top 10 Global News

1. Stocks, Yields Fall as Reflation Trade Sputters

European stocks followed Asian shares and U.S. futures lower on Friday as President-elect Joe Biden’s much-anticipated $1.9 trillion Covid-19 relief plan came under scrutiny. The dollar pushed higher and Treasury yields dropped. Energy firms and miners led declines in the Stoxx 600 Index. Optimism about the U.S. aid package had helped spur the reflation trade, but the plan is far from a done deal. Biden’s proposal could be watered down under Congressional opposition, and there’s the possibility that some taxes could rise.

Futures on the S&P 500 Index decreased 0.2% as of 10am London time.

The Stoxx Europe 600 Index dipped 0.3%.

The MSCI Asia Pacific Index fell 0.5%.

The MSCI Emerging Market Index dipped 0.4%.

2. Biden Seeks $1.9 Trillion for Relief in First Economic Plan

President-elect Joe Biden will ask Congress for $1.9 trillion to fund immediate relief for the pandemic-wracked U.S. economy, a package that risks swift Republican opposition over big-ticket spending on Democratic priorities including aid to state and local governments. “We have to act and we have to act now,” Biden said Thursday night in Wilmington, Delaware. He said he would lay out a second, broader economic recovery plan next month at a joint session of Congress next month. That initiative will include money for longer-term development goals such as infrastructure and climate change.

3. Oil Retreats From 10-Month High as Stronger Dollar Dents Rally

Oil declined from a 10-month high as the dollar strengthened, taking the steam out of a recent rally, while investors assessed what impact a potential U.S. stimulus package will have on driving fuel demand higher. Futures in New York slid 1.6% to trade near $53 a barrel as a stronger dollar reduced the appeal of raw materials like oil that are priced in the currency. Covid-19 vaccine breakthroughs and a recent pledge by Saudi Arabia to deepen output cuts have driven oil 50% higher since the end of October.

4. London Fund Managers See Post-EU Threat to $2 Trillion Business

As the European Union weighs tighter rules on outsourcing key functions such as stock-picking, there’s a risk that management of some assets could be forced out of London, putting another dent in the city’s status as a global financial centre. Firms in the U.K. handle about 1.4 trillion pounds ($1.9 trillion) for hedge and mutual funds in the EU’s main hubs of Ireland and Luxembourg — nearly half of all fund money managed in Britain. The trade deal reached at the end of last year largely ignored financial services, and said nothing about this kind of outsourcing, known as delegation. Curbing this practice would impact the entire fund-management industry, disrupting their long-standing business model and forcing them to move teams responsible for managing EU funds into the bloc.

5. Global Deaths Near 2 Million; Germany Record Surge: Virus Update

The world’s about to hit a frightening Covid-19 benchmark, with 2 million people dead and few expectations for infections to start dropping any time soon. The U.S. is leading all countries in deaths, with Brazil, India, Mexico and the U.K. next in line. President-elect Joe Biden has called U.S. vaccine efforts a “dismal failure” and vowed to accelerate them. In Germany, Chancellor Angela Merkel wants to tighten the lockdown as the country reported a record number of daily virus deaths. China’s northeastern Covid clusters are growing as an outbreak expands to at least eight other provinces.

6. Brexit Driving Top Dealmakers Out of London and Into the EU

The new rules for the bankers who made London the financial capital of Europe are still uncertain after Brexit, but one outcome is already clear: a stream of dealmakers across the English Channel. While thousands of traders and salespeople have already made the move, the next wave is likely to include the high-flyers who advise on strategy, mergers and capital raising, say more than a dozen officials at global institutions. Goldman Sachs Group Inc., for one, is moving senior investment bankers out of London to the continent. The prospect of losing a highly paid cadre of taxpayers is particularly bad news for the U.K. since it relies so much on financial services for revenue. The industry employs more than one million people, makes up about 7% of the economy, and accounts for more than a 10th of all tax revenue.

7. Insurers Face Covid Payouts as Appeal of Court Ruling Fails

Insurers lost a last-ditch attempt to dodge payouts to thousands of small businesses that were forced to close during the lockdown, as the U.K.’s top court ruled in favour of policyholders in a dispute over Covid-19 claims. The U.K. Supreme Court ruled Friday that policies sold by six firms cover losses sustained when businesses were shut down to help slow the spread of the outbreak. The firms had appealed a lower-court decision in September that found some policies in a test case brought by the U.K.’s top markets regulator should payout. The Supreme Court substantially allowed the appeals brought by the Financial Conduct Authority and substantially dismissed the appeals brought by the insurers.

8. China Central Bank Says Ant Is Working on Timetable for Overhaul

China’s central bank said Ant Group is working on a timetable to overhaul its business while ensuring operations continue, offering little clue on how far the financial technology giant needs to go to assuage Beijing. Regulators are in close contact with the special team at Ant that’s drafting plans and a timetable to rectify its operations, People’s Bank of China Deputy Governor Chen Yulu said at a regular briefing on Friday. The message underscores China’s determination to rein in billionaire Jack Ma’s sprawling business. Global investors have been seeking signs on what the future holds for the world’s largest fintech firm since the government abruptly halted Ant’s $35 billion initial public offering in November.

9. Tencent-backed Yidu Tech Surges 148% in Hong Kong Debut

Yidu Tech Inc., which offers artificial intelligence and big data products to the health-care industry, saw its shares jump 148% in its Hong Kong debut after a HK$4.12 billion ($531 million) initial public offering that met with overwhelming demand from investors. Yidu Tech shares closed at HK$65.2, after rising as high as HK$69.8, a massive jump from the IPO price of HK$26.30. The opening performance is the third-best for a Hong Kong IPO raising over $500 million.

10. Hong Kong Exodus Could Spur $36 Billion in Outflows

Hong Kong could see capital outflows of as much as $36 billion this year as residents leave the city for the U.K. in response to China’s sweeping security law, keeping the local dollar off the strong end of its trading band with the US dollar. More than two-thirds of the city’s population would be eligible for a path to British citizenship, according to the U.K government, which has offered the immigration route in its response to the law that was rapidly enacted in the former British colony last summer. The route is due to officially open at the end of this month. This year 153,300 people could relocate to Britain.

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UK Businesses Face Aftermath of Brexit – Top 10 Global News

1. Stocks Decline; Treasury Yields Extend Climb

U.S. stocks fell and benchmark Treasury 10-year bond yields rose to a 10-month high as investors mulled the prospects of the economic recovery and vaccine rollout. The S&P 500 edged lower for a second day, with the utilities and communication services sectors leading the declines. Europe’s Stoxx 600 Index traded little changed. The dollar weakened following a three-day rally. While progress on a vaccine gives reason to be hopeful, there are lingering concerns over the speculative excess and froth that’s driven stock markets to all-time highs in the middle of a pandemic.

The S&P 500 Index fell 0.5% as of noon New York time.

The Nasdaq Composite Index eased 0.4%.

The Stoxx Europe 600 Index rose 0.2%.

The MSCI All-Country World Index climbed 0.2%..

2. Trump and Pence Signal President Won’t Resign or Be Removed

Vice President Mike Pence signalled he’ll spurn demands to immediately oust Donald Trump over a deadly riot by the president’s supporters as the two met and agreed to work together for the remainder of the term, according to a senior administration official. The discussion adds to indications that Trump has no plans to resign before Joe Biden’s Jan. 20 inauguration. The House is set to issue a largely futile ultimatum to Vice President Mike Pence on Tuesday, demanding he invokes constitutional authority to remove President Donald Trump from office, as a prelude to an expected vote to impeach the president for the second time in little more than a year.

3. Twitter Bans 70,000 QAnon Accounts in Conspiracy Crackdown

Twitter Inc. has permanently suspended more than 70,000 accounts dedicated to sharing QAnon-associated conspiracy theory content and ratcheted up its enforcement in the wake of the Washington, D.C. riot last week. Many of the affected accounts were run by individuals who were operating several of them at a time, Twitter said in a statement detailing its actions. Any tweets labelled for violations of Twitter’s civic integrity policy — a key reason cited by the company in its initial suspension of departing U.S. President Donald Trump — will now be limited in engagement. Users will only be able to quote-tweet such posts, with likes, replies and retweets disabled.

4. Bitcoin Rebounds While Leaving Everyone in Dark on True Worth

Bitcoin rebounded after Monday’s steep plunge left investors grasping for clues about what lies ahead for the world’s largest cryptocurrency. The digital coin rose 4.9%, following yesterday’s 11% slide. The latest bout of roller-coaster volatility recalls past boom and bust cycles including the 2017 bubble, and has investors debating whether this is a healthy correction or the end of the latest bull run for cryptocurrencies.

5. Merkel Anxious That U.K.’s Mutated Virus Will Hit Germany Hard

Chancellor Angela Merkel warned that Germany may need to prolong its coronavirus lockdown until Easter due to risks posed by a fast-spreading variant from the U.K. Europe’s largest economy has already seen its outbreak intensify in recent days, despite tightening restrictions on movement and contact. Now authorities are looking with concern toward Ireland, where the new strain has contributed to one of the world’s worst contagion rates. During a video call on Tuesday, Merkel said harsh curbs might have to remain in place for the next eight to 10 weeks to combat the mutation.

6. U.K. Businesses Drowning in Red Tape Under Brexit Border Rules

While the mile-long lines of trucks have dissipated at ports, U.K. businesses are waking up to less visible forms of friction at the border with the European Union that may cause more enduring damage. From health certificates to new taxes and additional paperwork, the cost of moving goods across the English Channel is rising due to Britain’s exit from the EU. While each one of the new rules marks a minor shift from the border-free trade Britain enjoyed for four decades as a member of the EU, together they add up to a significant constraint. That’s already starting to upend supply lines and limit shipments for companies of all sizes. Those hit hardest are the U.K.’s 5.9 million small- and medium-sized businesses, which employ about three-in-five of those working in the private sector. All told, Brexit may cost British exporters 25 billion pounds ($34 billion) this year as a result of weak demand and more red tape, shaving 1.1% off Britain’s GDP.

7. China Won Trump’s Trade War and Got Americans to Foot the Bill

U.S. President Donald Trump famously tweeted that “trade wars are good, and easy to win” in 2018 as he began to impose tariffs on about $360 billion of imports from China. Turns out he was wrong on both counts. Even before the coronavirus infected millions of Americans and sparked the steepest economic downturn since the Great Depression, China was withstanding Trump’s tariff salvos, according to the very metrics he used to justify them. Once China got the virus under control, demand for medical equipment and work-from-home gear expanded its trade surplus with the U.S. despite the levies. “China is too big and too important to the world economy to think that you can cut it out like a paper doll,” said Mary Lovely, an economics professor at Syracuse University. “The Trump administration had a wake-up call.

8. Byju’s to Pay $1 Billion for Blackstone-Backed India Tutor

India’s biggest online-education startup Byju’s has signed a deal to acquire brick & mortar test prep leader Aakash Educational Services Ltd. for $1 billion. The deal for what will be one of the largest ed-tech acquisitions in the world should close in the next two or three months. Bangalore-headquartered Byju’s is valued at $12 billion and has been on a fund-raising spree as the pandemic has sent demand for its online lessons soaring. India’s second-most valuable startup is backed by the likes of Facebook founder Mark Zuckerberg’s Chan Zuckerberg Initiative, Tiger Global Management and Bond Capital, co-founded by Silicon Valley investor Mary Meeker.

9. Asian LNG Cargo Prices Break Records as Cold Makes Traders Scramble

North Asia’s liquefied natural gas benchmark rose above $30 per million British thermal units for the first time, breaking a barrier that few thought possible. Freezing temperatures across North Asia have boosted gas consumption and caught short some end-users, sending the spot rate to new highs. Meanwhile, numerous production issues at export facilities and delays traversing the Panama Canal curbed supplies. This marks a dramatic turnaround for the fuel, which hit an all-time low less than nine months ago amid pandemic lockdowns. Tuesday’s spot price represents an 18-fold rise from that level.

10. Dubai’s Open-City Policy Saw Hotel Bookings Surge in December

Occupancy at Dubai’s hotels surged in December and neared pre-pandemic levels as travellers flocked to the emirate to escape coronavirus lockdowns at home. Hotels were 71% full last month — the highest figure since February. Dubai’s hotel occupancy, for years one of the highest in the world, slumped to 23% in part of 2020 from about 80%. Dubai attracts about 16 million tourists annually and its hotels were initially among the worst-hit by travel restrictions introduced to keep the pandemic in check. The opening up has come at a cost. Infections surged in the United Arab Emirates — of which Dubai is one of seven sheikdoms — from late December.

NOTE TO THE READERS: Due to unavoidable personal reasons, there was a delay in preparing this article today. I apologize for this inconvenience.

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2021 Begins with Record-High Virus Cases & Deaths – Top 10 Global News

1. S&P 500 Rallies to Close the Year at Record High

The S&P 500 Index and Dow Jones Industrial Average turned positive yesterday afternoon and ended at all-time highs. Volume was about 15% below average. Financial companies were among the best performers, while energy producers slumped. European stocks dipped. 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 as officials gave the green light to its first coronavirus vaccine for general public use and data showed a steady economic recovery. The offshore yuan strengthened to the highest since June 2018.

The S&P 500 Index rose 0.6% as of market close in New York.

The Stoxx Europe 600 Index fell 0.3%.

The MSCI Asia Pacific Index was little changed.

The MSCI Emerging Market Index rose 0.1%.

2. Pandemic Exits 2020 With Record Cases Across Globe

One year after a mysterious pathogen first revealed itself in Wuhan, China, the Covid-19 pandemic enters 2021 with no signs of slowing down. Global daily deaths reached record highs this week, while U.S. infections approached 20 million, almost twice as many as second-worst hit country India. Countries from Japan to South Africa ended 2020 with record daily cases. In the U.S., New York state and Florida shattered their previous case records, while Texas saw a new high for hospitalizations. The U.S. added 227,616 cases on Dec. 31. China and Brazil became the latest to report infections of the new, highly transmissible virus strain.

3. Britain Leaps Into Unknown With Split From EU at Critical Moment

The U.K. completed its divorce from the European Union, leaving the bloc’s single market and customs regime more than four years after voting for Brexit and with the country gripped by a deepening crisis. The end of the transition period at 11 p.m. in London on New Year’s Eve launched the U.K. on a new path on its own, free from EU laws, able to strike trade agreements around the world and to reshape its economy. “This is an amazing moment for this country,” Prime Minister Boris Johnson said in his New Year’s message. “We have our freedom in our hands and it is up to us to make the most of it.” Yet many areas — including the critical financial services industry — still need to be agreed to, while in the background the coronavirus pandemic is engulfing more people than ever and another lockdown is weighing on the nation.

4. NYSE to Delist Chinese Telco Giants on U.S. Executive Order

The New York Stock Exchange said it will delist three Chinese corporations to comply with a U.S. executive order that imposed restrictions on companies identified as affiliated with the Chinese military. China Mobile Ltd., China Telecom Corp Ltd., China Unicom Hong Kong Ltd. will be suspended from trading between Jan. 7 and Jan. 11, and proceedings to delist them have started. The three Chinese companies have separate listings in Hong Kong. All generate the entirety of their revenue in China and have no meaningful presence in the U.S. Their shares are also thinly traded on the NYSE compared to their primary listings in Hong Kong, making this NYSE delisting more of a symbolic blow amid geopolitical friction between the U.S. and China.

5. Faster-Spreading Covid Strain Affects Young the Most

The new coronavirus variant that emerged in the U.K. is more transmissible and appears to affect a higher proportion of people under 20. The mutation of concern has “a substantial transmission advantage” and is linked to “epidemic growth in nearly all areas,” the scientists wrote. It can raise the virus’s reproduction rate, which indicates how many people one patient infects, by as much as 0.7. “This will make control more difficult and further accentuates the urgency of rolling out vaccination as quickly as possible,” said Neil Ferguson, a professor at Imperial who has worked on modelling the outbreak. Social distancing measures that worked against earlier strains of the virus were insufficient to control the spread of the new variant. The government had previously said the new strain was as much as 70% more transmissible than other versions.

6. Huawei Removes Tencent Games in Dispute Over Cooperation

Huawei Technologies Co. removed Tencent Holdings Ltd.’s games from its app store as some terms of cooperation are changing between the two technology giants. The action was taken after Tencent made a “big change” on Dec. 31 to how the companies work with each other. While most smartphones in China use Google’s Android operating system, the U.S. company’s Play Store isn’t available and apps are instead sold by mainland manufacturers and others. Huawei was the biggest smartphone maker in the country during the September quarter with 43% of shipments. Huawei said its decision followed an assessment by its legal team and was based on the premise that Tencent is unilaterally asking to halt cooperation.

7. Millions of Americans Are Calling In Sick, Stunting the Recovery

Amid the surge in the ranks of the unemployed during the pandemic, another crucial problem in the labour market has gone mostly overlooked: Workers are calling out sick in record numbers this year. Whether it’s because they have Covid-19 themselves, are worried about getting it or are taking care of someone who already has it, the number of workers who’ve missed days on the job has doubled in the pandemic. What’s more, unlike the jobless rate, which has steadily declined from its April peak, the rate of absenteeism has remained high. Almost 1.8 million workers were absent in November because of illness, nearly matching the record 2 million set back in April.

8. Tesla Sets Price of China-made Model Y SUV Below Competitors

Tesla will start deliveries of its China-made Model Y SUV this month to customers in the country, as it set the vehicle at a price below some of its rivals to maintain a competitive edge. The Model Y starts from 339,900 yuan ($52,074), while the Model Y Performance car will be from 369,900 yuan. Tesla Chief Executive Officer Elon Musk has said the Model Y has the potential to outsell all other vehicles it makes. Tesla also launched a modified Model 3 sedan which remained at a post-subsidy price of 249,900 yuan for the basic version. The Model 3 qualifies for China’s national subsidy for electric vehicles, while the Model Y doesn’t. China is Tesla’s largest market after the U.S., with sales topping 120,000 units in 2020.

9. Oman Plans 2021 Borrowing as Oil Price, Virus Batter Economy

Oman’s government will finance most of its budget shortfall in 2021 by borrowing to plug a fiscal gap battered by a decline in oil prices and the coronavirus pandemic. The Persian Gulf state is looking into borrowing that will cover 73%, or 1.6 billion rials ($4.2 billion), of the country’s 2.2 billion-rial shortage, with the remaining 600 million rials to be drawn from its reserves. The government based its 2021 budget plan on an oil price of $45 per barrel. Oman has taken measures such as reduced spending and plans to impose a 5% value-added tax in 2021.

10. Singapore and Malaysia Terminate High-Speed Rail Project

The two countries were unable to reach an agreement on the project after Malaysia sought changes because of the pandemic’s economic impact. Malaysia will have to compensate Singapore for costs already incurred. The announcement came just after a Dec. 31 deadline for the second and final extension of the suspension of the project, which was first mooted a decade ago and given the green light in 2013. The on-again, off-again 350 kilometres (218 miles) high-speed rail link would have cut travel time between the centres down to about 90 minutes versus more than four hours by car. The service was due to start in 2026.

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Human-Run Funds Beat Quant Funds in 2020 – Top 10 Global News

1. U.S. Stocks Rise on Vaccine Optimism; Dollar Falls

U.S. stocks climbed as vaccine progress boosted optimism in one of the final trading sessions of 2020. The dollar continued its slide, weakening to the lowest in 2 1/2 years. Energy shares were among the best performers in S&P 500 Index. Travel and leisure companies advanced in Europe after the U.K. approved a coronavirus shot by AstraZeneca and the University of Oxford. Volumes were light during the holiday week, with the Stoxx 600 Index seeing about half of the usual activity as it edged lower. Bitcoin extended its record-breaking rally, trading near $28,000.

The S&P 500 Index gained 0.4% as of 10 a.m. in New York.

The Stoxx Europe 600 Index slipped 0.1%.

The MSCI Emerging Market Index climbed 1.5%.

2. AstraZeneca-Oxford Covid Vaccine Gains First Clearance With U.K. Nod

AstraZeneca and the University of Oxford’s Covid-19 vaccine won U.K. clearance, marking the first approval worldwide for a shot that will be key to mass immunizations despite continuing questions over its efficacy. The vaccine will be prioritized for the country’s most vulnerable groups, with shots starting Monday, according to the government. It’s the second coronavirus injection to be cleared for emergency use in the U.K. after one from Pfizer and BioNTech was authorized in early December. The move will help the U.K. ramp up vaccinations as a surge in coronavirus infections that’s fueled by a new strain puts growing pressure on hospitals.

3. Human-Run Hedge Funds Trounce Quants in Covid Year

After years of being outgunned and outclassed by computer-driven quantitative strategies, human stock-pickers climbed back on top in 2020, helped by aggressive bets in technology and the flood of central bank money that buoyed markets. The dizzying gyrations of the pandemic-stricken year humbled even the most sophisticated of quants — notably behemoths Renaissance Technologies and Two Sigma — whose trading models were thrown off by swings their computers had never seen before. Overall, human-run funds put up some of their best numbers in a decade, with several boldfaced names, including Tiger, Coatue and D1, posting returns in excess of 35%. Whether by luck or by skill, they showed that in this most unusual of years, stock-pickers could still stand up to the seemingly inexorable rise of the machines.

4. England Faces Wider Lockdown in Race to Control New Strain

More areas of England are set to be placed under lockdown, as the new coronavirus strain puts growing pressure on hospitals. People living in London, Essex and Kent should behave as if they have Covid-19, Health Secretary Matt Hancock said in an interview with LBC radio on Wednesday. The spread of the new variant means more parts of the country will be placed under toughest tier 4 lockdown restrictions, Hancock said. He will set out details in a statement to Parliament on Wednesday afternoon. His comments come amid growing fears the National Health Service is at risk of being overwhelmed after the U.K. reported more than 50,000 new cases on Tuesday, the highest daily figure since the start of the pandemic. The number of people being treated in the hospital for coronavirus already exceeds the peak recorded during the first wave of infections in spring.

5. Republicans Rebuff Trump, Democrats by Blocking $2,000 Checks

Senate Majority Leader Mitch McConnell on Tuesday blocked an attempt by Democrats to force quick action increasing direct stimulus payments to $2,000 as President Donald Trump warned that failing to act now amounted to a “death wish” by Republicans. McConnell objected to a motion by Senate Minority Leader Chuck Schumer to approve by unanimous consent a stimulus-checks bill that passed the House on Monday. He also blocked a motion by Senator Bernie Sanders of Vermont to vote on the stimulus checks immediately after the Senate votes on overriding Trump’s veto of a key defence policy bill.

6. Johnson’s Brexit Deal Clears Its First Parliamentary Hurdle

Boris Johnson’s Brexit deal cleared the House of Commons, putting the U.K.’s trade agreement with the European Union on course to become law within hours. Members of parliament voted 521 to 73 to approve the accord after they were recalled from their Christmas break for an emergency session on Wednesday. The House of Lords, the unelected upper chamber, will vote on the legislation later in the evening. With the main opposition Labour Party backing the bill, the legislation is almost certain to become law in a single day, 24 hours before the U.K. leaves the EU’s single market and customs union.

7. U.S.’s First Case of U.K. Mutation Sparks Search for Source

A 20-something man from Colorado is the first American known to be infected with a new variant of coronavirus that emerged this fall in the U.K., raising concern that a more transmissible strain could spread widely across the country. The Colorado State Laboratory confirmed the patient had the mutated form of the virus, known as B.1.1.7, and informed the U.S. Centers for Disease Control and Prevention. The infected man has no recent travel history, challenging health officials to find the possible source of infection and identify others who may be at risk. He is currently in isolation in Elbert County, located halfway between Denver and Colorado Springs.

8. EU, China Give Political Nod to Market-Opening Investment Pact

The European Union and China announced the political approval of an agreement to open the Chinese market further to EU investors, marking a major step in talks that began in 2013. The breakthrough in negotiations on an EU-China investment deal signals the bloc’s determination to focus on economic opportunities in Asia even amid criticism of Beijing’s record on human rights. The accord could enter into force in early 2022. For the EU, the deal risks irking the incoming U.S. administration, which has urged the Europeans to consult with them over China’s economic practices. Failure by the U.S. and EU to forge a common position would give Beijing an advantage as western leaders reassess geopolitical relations in the wake of Donald Trump’s presidency.

9. Pending Sales of U.S. Existing Homes Decline for a Third Month

A gauge of U.S. pending home sales fell for the third consecutive month in November, suggesting higher prices and limited inventory are slowing momentum in the housing market despite record-low borrowing costs. The National Association of Realtors’ index of contract signings to purchase previously owned homes declined 2.6% from the prior month to 125.7, according to data released Tuesday. The drop in the index from the prior month shows more tempered activity in the housing market as prices continue to climb amid lean inventory. Still, the pending sales gauge remains well above pre-pandemic levels, indicating still-elevated demand as buyers seek more space.

10. Qatar Wealth Fund Invests $125 Million in Battery Firm Fluence

Fluence, a global battery storage joint venture of Siemens AG and AES Corp., said it reached an agreement with the sovereign wealth fund of Qatar for a $125 million investment. The funding will give the Qatar Investment Authority a 12% stake in Fluence and values the battery company at more than $1 billion. Siemens and AES will retain a 44% stake each following completion of the deal, the companies said. The global energy storage business is expected to boom in the coming decades as utilities will look to batteries to backstop an increasing amount of intermittent solar and wind power.

Readers!
Thank you for reading the article. Apologies on the slight delay in posting today as I was travelling in the evening with no access to the internet.
Happy New Year!

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Violence at Apple’s India Factory: 450 cr Damages – Top 10 Global News

1. U.S. Stocks Set for a Rebound After Four-Day Slump

U.S. stocks are poised to open higher after a four-day slump, the longest stretch since September, with investors taking comfort in the vaccine rollout and progress on stimulus talks. While investors are pricing in optimism about the start of vaccine shots, there’s also ongoing concern over whether a stimulus bill from a bipartisan group of lawmakers will gain traction. Trading was mixed in other markets. Asian stocks fell the most in two weeks. European equities, oil and Treasuries were steady. In Europe, the pound rose and credit markets strengthened as Brexit negotiators pushed to reach a final trade deal.

Futures on the S&P 500 Index climbed 0.5% as of early morning London time.

The Stoxx Europe 600 Index was little changed.

The MSCI Asia Pacific Index decreased 0.4%.

The MSCI Emerging Market Index declined 0.2%.

2. Moderna Vaccine Found Safe, Effective Ahead of Major FDA Review

Moderna’s vaccine is safe and effective for preventing Covid-19, U.S. regulators said, clearing the way for a second shot to quickly gain emergency authorization and add to the country’s sprawling immunization effort. The Food and Drug Administration’s staff said in a report on Tuesday that the experimental vaccine is 94.1% effective at preventing symptomatic Covid-19, confirming earlier results released by the company. The FDA got a much deeper look at Moderna’s clinical-trial data than the numbers previously released to the public by the company. Notably, the agency was able to review the shot’s effectiveness across a broad range of racial, ethnic and age groups, and look at evidence of how well the shot worked for people with pre-existing medical conditions that make them more vulnerable to severe Covid-19.

3. U.K. Urged to Ban Holiday Mixing; Sweden Shortages: Virus Update

Two medical journals published a rare joint editorial urging the U.K. government to ban household mixing over Christmas. Italy’s prime minister said he plans further curbs to slow cases during the festive season, and the Dutch government is imposing stricter rules for five weeks. Almost all of Sweden’s regional hospitals are struggling with staff shortages as the virus spreads faster than health authorities predicted. Hong Kong plans new relief measures before Christmas, and Singapore is creating a new “bubble” facility near the airport. In the U.S., New York risks a second full shutdown should the number of cases and hospitalizations continue at the current pace.

4. U.K.’s PM to Visit India in January as Trade Talks to Start

U.K. Prime Minister Boris Johnson will visit India in January to try to boost ties, with talks on a free-trade agreement due to start next year. The British government has made the expansion of global trading opportunities a priority after Brexit and is pursuing trade deals with countries including the U.S., New Zealand and Australia. The Indo-Pacific region is also high on the U.K.’s agenda, and Foreign Secretary Dominic Raab held talks with his Indian counterpart Subrahmanyam Jaishankar in New Delhi on Tuesday. India is the U.K.’s 17th-largest trading partner and total trade between the two countries was worth $16.5 billion in 2019.

5. Wave of Foreign Money Threatens India’s Tight Grip on Rupee

A relentless torrent of funds rushing into India’s markets may tip the central bank’s delicate balancing act in 2021. For most of this year, the Reserve Bank of India has capped currency gains as global investors poured around $50 billion into stocks and stakes in companies. This has boosted rupee liquidity in a banking system that’s already flush with cash from the RBI’s stimulus measures. There’s growing consensus among traders and fund managers that the mounting pressures — particularly the liquidity excess distorting money markets — may spur the central bank to consider a range of changes, from relaxing its grip on Asia’s worst-performing currency to curtailing bond purchases.

6. Apple Push Into India Dealt Setback as Protest Turns Violent

Apple’s effort to expand the manufacturing of its products in India ran into trouble after workers at a supplier’s plant rioted over unpaid wages, with many arrested for violence and vandalism. Hundreds of workers stormed Wistron Corp.’s facility in the southern city of Kolar over the weekend, damaging the property and looting thousands of iPhones and laptops, according to local media. More than 150 people were arrested. Wistron estimated damages at as much as $7.1 million and said it’s doing its best to resume operations at the factory. 

7. Airbus CEO Warns No-Deal Brexit Puts U.K. Investment at Risk

Airbus Chief Executive Officer Guillaume Faury said a U.K. split from the European Union without a trade deal could threaten the planemaker’s investment plans in the country. Decisions would be made based on how easy it is to conduct business after Brexit, he said at the Conference of Montreal on Monday. In the meantime, the company has no plans to close or scale down its British factories, which make wings for all of its passenger aircraft, and would find a way to manage a no-deal scenario if it came to that, he said. Airbus was vehemently opposed to Brexit under previous CEO Tom Enders, who warned that the company could pull out of the U.K. if a deal wasn’t reached.

8. Europe May Approve Covid Vaccine by Christmas as Pressure Builds

Pressure is building in Europe for quick approval of Pfizer and BioNTech’s Covid-19 vaccine, with German authorities saying they’re optimistic that sign-off can be pushed forward by a week amid a rising death toll on the continent. Germany is “optimistic” that the European Medicines Agency will be able to make a decision by Dec. 23, Health Minister Jens Spahn said in Berlin on Tuesday. The EMA had previously said an advisory board would convene by Dec. 29 to make a recommendation on the application; approval would come within days after that.

9. Lawmakers Rush to Complete Relief Before Break: US Stimulus Update

Democratic leaders Nancy Pelosi and Chuck Schumer face pressure to allow a vote on a Covid-19 assistance plan without the aid for states they’ve said is vital, after a bipartisan group split that and liability protections from other relief spending. With the congressional session winding down and a government funding package needed by Friday, time is running out for an agreement on the two most contentious and partisan pandemic-relief issues — Covid-19 liability protections for employers and aid for state and local governments. A bipartisan group that had floated a $908 billion plan at the start of the month offered it up in two bills on Monday.

10. Abu Dhabi Turns to Poultry, Fish Farms for Food Security

The oil-rich desert emirate of Abu Dhabi is investing $143 million to boost local production of produce, fish, cattle and poultry in its push to improve food security. Much of the money will go toward using new technologies to improve large-scale production of food in climate-controlled conditions, the Abu Dhabi Government Media Office said. Abu Dhabi — like the rest of the United Arab Emirates — must import most of its food. The coronavirus pandemic, however, has laid bare the UAE’s vulnerability to disruptions in foreign food supplies.

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Facebook-Instagram-Whatsapp to be Broken Up – Top 10 Global News

1. U.S. Futures Drop After Tech Slide; Pound Slumps

U.S. stock futures turned lower with European equities as investors assessed a dimmer outlook for fiscal stimulus and for any tech-stock rebound after Wednesday’s tumble. Nasdaq 100 contracts signalled the gauge may fall further after its biggest drop in a month on news that Facebook was being sued by U.S. antitrust officials. In Europe, German bonds dropped and the euro turned higher after the European Central Bank boosted its emergency bond-buying program by 500 billion euros ($605 billion). The pound sank further after a report that talks between the EU and the U.K. are on course to end without a trade deal, barring a dramatic last-minute intervention.

The Stoxx Europe 600 Index dropped 0.2%

Nasdaq 100 Index futures sank 0.5%.

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

The MSCI Asia Pacific Index gained 0.6%.

2. Facebook Breakup Would Demolish Zuckerberg’s Social Media Empire

The U.S. Federal Trade Commission took a major step toward the possible breakup of Facebook by formally filing an antitrust lawsuit against the technology giant, accusing it of abusing its monopoly powers in social networking to stifle competition. Whatsapp and Instagram acquisitions were meant to erase competition. Now, the FTC wants Facebook to divest the two businesses — an idea that poses an existential threat to the empire built by CEO Mark Zuckerberg. Because much of the company’s revenue growth is already coming from Instagram, and WhatsApp is central to Facebook’s bet on digital commerce, losing the two platforms would threaten to erase much of Facebook’s long-term value.

3. EU Leaders to Unlock Budget & Stimulus Deal at Major Summit

European Union leaders gathering in Brussels are expected to sign off on the bloc’s landmark $2.2 trillion stimulus package after a compromise struck with Poland and Hungary was set to unblock the flow of rescue funds to the continent’s battered economies. The governments in Warsaw and Budapest vehemently opposed making funding conditioned on rule-of-law standards and threatened to torpedo the EU’s 750 billion-euro pandemic aid fund and the 2021-2027 budget. But after long negotiations with Germany, which holds the bloc’s rotating presidency, they agreed on a statement clarifying the way the link would work.

4. Airbnb Reaches $47 Billion Value in Above-Range IPO

Airbnb priced its long-awaited initial public offering above a marketed range to raise about $3.5 billion, seizing on investor demand for a home-rental business roaring back from a pandemic-fueled slump. The company’s IPO came just hours after DoorDash almost doubled from its listing price in its debut trading session, adding to a flurry of consumer-facing web-based companies going public this month. Airbnb and its investors sold about 52 million shares Wednesday for $68 each after marketing them for $56 to $60 apiece. At that price, Airbnb has a fully diluted value of about $47 billion, which includes employee stock options and restricted stock units.

5. Morgan Stanley to Shift About $120 Billion of Assets to Germany

Morgan Stanley plans to move about 100 billion euros ($120 billion) of assets to Frankfurt, the latest Wall Street bank to shift business away from the U.K. The U.S. lender expects to transfer the bulk of the assets in the first quarter of next year when the transition period for Britain’s exit from the European Union will likely have elapsed. They will sit in the Frankfurt-based subsidiary Morgan Stanley Europe SE. The move is in line with efforts by several other U.S. banks such as JPMorgan Chase & Co. and Goldman Sachs Group Inc. to beef up their EU operations amid Brexit. 

6. Fidelity Digital to Hold Bitcoin as Collateral for Cash Loans

Fidelity Digital Assets will allow its institutional customers to pledge Bitcoin as collateral against cash loans in a partnership with blockchain startup BlockFi. The unit of Boston-based asset manager Fidelity Investments will hold the digital asset and not make loans itself. The target is Bitcoin investors who want to turn their digital stash into cash without selling, and potential customers include hedge funds, crypto miners and over-the-counter trading desks. The new service from Fidelity comes after Bitcoin beat its 2017 highest price earlier this month before retreating in recent days. The world’s most valuable digital asset has risen 164% this year, hitting a high of $19,462 on Dec. 3. Other cryptocurrencies like Ether and Litecoin have also seen gains.

7. World’s Second-Largest Cigarette Market Raises Levy by 12.5%

Indonesia will raise the excise duty on cigarette products by an average of 12.5% as the country seeks higher earnings from the industry. The world’s second-largest cigarette market, after China, boosted the levy as it seeks to earn $12 billion in state revenue from tobacco products in 2021, a 5% increase from this year’s target. The industry accounts for a majority of the government’s excise revenue. The higher levies are effective Feb. 1, 2021. While Indonesia seeks to reduce the number of smokers, it’s also mindful of workers who rely on the tobacco industry, which is why it isn’t raising the levy for hand-rolled cigarettes.

8. U.K.-Singapore Sign Free Trade Agreement to Replace EU Deal

The U.K. and Singapore signed a free trade agreement on Thursday, under which companies from both countries will continue to enjoy the same benefits on about $23 billion worth of goods and services they receive under an existing EU-Singapore deal. The signing sustains the two nations’ trade relationship beyond the U.K. departure from the European single market. Under the agreement, duties will remain eliminated on 84% of tariff lines for Singapore’s exports to the U.K.

9. China to Sanction U.S. Officials, Curb Some Diplomat Travel

China said it will sanction more U.S. officials and place new travel restrictions on American diplomats in retaliation for measures taken by the Trump administration over Hong Kong. Chinese Foreign Ministry spokeswoman Hua Chunying didn’t provide specific names of those sanctioned but said they included people in the executive and legislative branches and their immediate families, as well as non-government organizations. China would also revoke visa-free entry to Hong Kong and Macau for U.S. diplomatic passport holders.

10. JPMorgan Says Gold Will Suffer for Years Because of Bitcoin

The rise of cryptocurrencies in mainstream finance is coming at the expense of gold, says JPMorgan Chase & Co. Money has poured into Bitcoin funds and out of gold since October, a trend that’s only going to continue in the long run as more institutional investors take a position in cryptocurrencies, according to the bank’s quantitative strategists. JPMorgan is one of the few Wall Street banks that’s predicting a major shift in gold and crypto markets as digital currencies become increasingly popular as an asset class. The trend poses a problem for bulls in precious metals markets over the coming years if investors move, even a small slice, of their allocations away from gold and into crypto.

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TESLA to join S&P 500 – Top 10 Global News

1. Global Stocks Fall on Virus Fears

A global stock rally powered by hopes that new Covid-19 vaccines will bolster economic growth halted on Tuesday as investors weighed the near-term spread of the virus. S&P 500 futures retreated a day after the underlying benchmark closed at an all-time high on Monday. Contracts on the tech-heavy Nasdaq 100 outperformed. Travel shares and banks led a decline in the Stoxx Europe 600 Index. The pound rose on signs the U.K. and European Union are nearing a breakthrough on Brexit as early next week.

Futures on the S&P 500 Index fell 0.5% as of early morning New York time.

The Stoxx Europe 600 Index declined 0.4%.

The MSCI Asia Pacific Index increased 0.2%.

The MSCI Emerging Market Index fell 0.2%.

2. America Locks Down From Atlantic to Pacific as Covid Rages

In a matter of days, America’s long effort to revive its virus-battered economy has been put on pause — or thrown into reverse — as new infections soar at the fastest pace since the pandemic’s earliest days. California on Monday reinstituted bans on many indoor businesses, and its governor warned he may impose a curfew. Michigan has ordered a three-week partial shutdown, while states including Oregon, Washington and New Jersey tightened curbs.  The new restrictions follow a rapid surge in cases — with the country adding a million infections in the first 10 days of November alone — that has led health officials to issue dire warnings about the prospect of uncontrollable outbreaks as the Thanksgiving holiday approaches.

3. France’s Bars, Restaurants May Stay Closed Until Mid-January

French bars and restaurants will remain closed until mid-January as the government tries to tamp down the resurgent coronavirus outbreak. The government closed non-essential businesses at the end of October as the number of virus cases surged, with a goal to reopen shops on Dec. 1 if health conditions permit. Prime Minister Jean Castex made clear that didn’t apply to bars and restaurants, however, government spokesman Gabriel Attal said Tuesday in an interview on France 2 television. Government officials will review the situation for bars and restaurants next month, he said when asked about the France Info report of a Jan. 15 re-opening.

4. America’s Zombie Companies Have Racked Up $1.4 Trillion of Debt

From Boeing, Carnival and Delta Air Lines to Exxon Mobil and Macy’s, many of the nation’s most iconic companies aren’t earning enough to cover their interest expenses (a key criterion, as most market experts define it, for zombie status). Almost 200 corporations have joined the ranks of so-called zombie firms since the onset of the pandemic. In fact, zombies now account for nearly 20% of publicly-traded firms. Even starker, they’ve added almost $1 trillion (INR 75 lakh cr) of debt to their balance sheets in the span, more than double zombie companies owed at the peak of the 2008 financial crisis. The Federal Reserve’s effort to stave off a rash of bankruptcies by purchasing corporate bonds might very well have prevented another depression. But in helping hundreds of ailing companies gain virtually unfettered access to credit markets, policymakers may inadvertently be directing the flow of capital to unproductive firms, depressing employment and growth for years to come.

5. Brexit Negotiators Zero In on a Deal as Soon as Next Week

The U.K. and European Union could strike a deal on their future trading and security relationship early next week as the two sides edge closer to an agreement on the biggest sticking points. As talks continue in Brussels, officials are planning for the possibility of a breakthrough to be announced as soon as Monday, although no precise day has been settled on. They also warned that there was still the potential for the negotiations to collapse, with the two sides still some way apart on the familiar stumbling blocks that have plagued the talks since they started in March. Getting a deal will still need the U.K. to make big political decisions over whether it is prepared to compromise, particularly on the thorny topic of access to British fishing waters.

6. Tesla to Join S&P 500 Next Month as Largest-Ever New Member

Tesla, Elon Musk’s 17-year-old upstart carmaker, took a giant step toward blue-chip respectability on Monday, getting named to one of the world’s most famous stock indexes in an action that will greatly broaden its investor base. The announcement that Tesla will enter the S&P 500 on Dec. 21 follows months of speculation. The anticipation has helped drive a nearly fivefold rally in the stock this year to almost $390 billion. It will also be one of the index’s most influential constituents with a weighting that falls around those of Berkshire Hathaway, Johnson & Johnson and Procter & Gamble. Tesla shares jumped 12% in premarket trading.

7. China Gives Long Explanation for Pummeling Australia on Trade

China gave one of its most detailed explanations yet for souring ties with Australia, calling on the nation to stop trying to impose its will on others. “Looking back on China-Australia relations in the past few years, we see some people in Australia adhere to a Cold War mentality and harbour ideological prejudice, regard China’s development as a threat, and have then made a series of wrong moves related to China,” Chinese Foreign Ministry spokesman Zhao Lijian told. Ties between the two key trading partners have been strained since 2018 when Australia banned Huawei from building its 5G network. But relations have really been in the deep freeze since Prime Minister Scott Morrison’s government in April led calls for an inquiry into the origins of the coronavirus outbreak — a move that bruised China’s pride and unleashed a torrent of criticism that Australia is a puppet of the U.S.

8. BofA Says Market Is So Bullish It’s Time to Sell on Vaccine News

Fund managers overseeing $526 billion are the most bullish they’ve been this year following the U.S. election outcome and progress on a vaccine, prompting a call from Bank of America Corp. strategists that it’s time to start selling risk assets. Cash holdings plunged to the lowest level since April 2015, while economic growth expectations surged to a 20-year high. Investors snapped up more volatile assets, such as small-caps, value, banks and emerging-market stocks, while shifting away from bonds and staples. But with the S&P 500 hitting a record high, fund managers face a moment of reckoning on whether it’s worth taking profit or staying invested for potentially even more returns.

9. Amazon opens online pharmacy, shaking up another industry

The company opened an online pharmacy Tuesday, giving Amazon shoppers the chance to buy their medication and order refills on their phones and have it delivered to their doorsteps in a couple of days. The move propels Amazon into a new business, potentially shaking up the pharmacy industry as it has done to everything from booksellers to toy stores and grocers. Big chains like CVS and Walgreens rely on their pharmacies to bring them a steady flow of shoppers who stop by frequently to pick up their medications. Amazon said it will offer commonly prescribed medications starting Tuesday, including creams, pills, as well as medications that need to stay cold, like insulin. Shoppers have to set up a profile on Amazon’s website and have doctors send prescriptions to the Seattle-based e-commerce giant. Most insurance is accepted, Amazon said. But Prime members who don’t have insurance can also buy generic or brand name drugs from Amazon for a discount.

10. DBS to Allow Employees to Work Remotely for up to 40% of Time

All employees at DBS Group will be granted the flexibility to work remotely up to 40% of the time to address the “massive changes” brought about by the Covid-19 pandemic. The company’s Future of Work task force found that more than four in five of its 29,000 staff were able to work seamlessly remotely. However, some expressed that they preferred a hybrid work arrangement, which allowed them to stay engaged with colleagues. The bank will also introduce a formal job-sharing scheme to give greater support to employees who need more flexibility. Under the scheme, two employees will be able to share the responsibilities of one full-time role. More part-time work arrangements will also be introduced.

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

1. Stocks Slump on Rising Covid Cases; Dollar Gains

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

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

The Stoxx Europe 600 Index fell 1.1%.

The MSCI Asia Pacific Index dipped 0.3%.

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

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

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

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

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

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

5. Dubai announces $136 million extra stimulus package

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

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

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

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

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

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

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

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

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

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

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

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