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Now Trade Water Futures to hedge scarcity – Top 10 Global News

1. Futures Mixed Amid Stimulus Talks, Brexit Deadlock

Stock futures were mixed as traders await more details on a new stimulus package, with coronavirus infections sweeping across U.S. states. The pound fell on concern that Brexit talks could collapse. S&P 500 contracts signalled the equity benchmark would drop from an all-time high, while Nasdaq-100 futures rose. Intel, the world’s largest chipmaker, slid in premarket trading on news that Apple is planning a series of new Mac processors for introduction as early as 2021. 

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

The Stoxx Europe 600 Index slid 0.4%.

The MSCI Asia Pacific Index dropped 0.1%.

2. Water Futures to Start Trading Amid Growing Fears of Scarcity

Water is joining gold, oil and other commodities traded on Wall Street, highlighting worries that the life-sustaining natural resource may become scarce across more of the world. Farmers, hedge funds and municipalities alike will be able to hedge against — or bet on — potential water scarcity starting this week when CME Group launches contracts linked to the $1.1 billion California spot water market. According to Chicago-based CME, the futures will help water users manage risk and better align supply and demand. The contracts, a first of their kind in the U.S., were announced in September as heat and wildfires ravaged the U.S. West Coast. They are meant to serve both as a hedge for California’s biggest water consumers against skyrocketing prices and a scarcity gauge for investors worldwide.

3. $908 Billion U.S. Pandemic Relief Plan Set for Release

Bipartisan negotiators on a $908 billion pandemic relief package are planning to unveil more details of their proposal on Monday, aiming to settle on language that can satisfy enough Republicans and Democrats to secure passage of one final tranche of Covid-19 aid before Congress breaks for the year. The outline of the plan spurred a flurry of optimism last week when it won the endorsement of House Speaker Nancy Pelosi, Senate Minority leader Chuck Schumer and a number of Republican senators as a basis for fresh talks after a half-year of stalemate.

4. Europe, U.S. Economic Activity Slows Further on Virus Resurgence

The economic activity in several of the world’s largest advanced economies slid at the beginning of December, reflecting a surge in the rate of Covid-19 infections and stricter containment measures. After a temporary period of stability in Europe in November, activity slowed further in Germany, Italy and Spain, according to Bloomberg Economics metrics that integrate data such as mobility, energy consumption and public transport usage. France saw some pickup recently, likely reflecting gains from starkly retrenching infections, while activity in the U.S. decelerated.

5. Germany Eyes Tighter Curbs as Infection Rates Remain High

Germany is looking to impose tougher restrictions on movement after a nationwide partial shutdown failed to bring contagion rates down to manageable levels. Germany shut restaurants, gyms and cinemas, but allowed schools and most of the economy to keep running as it tried a softer approach than other European countries. The measures — in place since the beginning of November — have made little impact on the spread of the disease, even as the government spends more than 15 billion euros ($18 billion) a month to compensate affected businesses.

6. China’s Exports Surge in Year-End Rush as Pandemic Fuels Demand

China’s exports jumped in November by the most since early 2018, pushing its trade surplus to a monthly record high and underlining how global demand for pandemic-related goods is supporting a growth rebound in the world’s second-largest economy. Chinese companies shipped $268 billion in goods in November, the most for any single month and more than 21% higher than the same month last year. Import growth eased to 4.5%, leaving a trade surplus of $75.4 billion — the largest on record in data going back to 1990.

7. Airbnb, DoorDash Boost Price Ranges Ahead of Mega Week for IPOs

December is set to be the busiest year-end on record for initial public offerings in the U.S., with DoorDash Inc. and Airbnb Inc. ready to start trading this week in long-awaited listings. The two startups, which are aiming to raise a combined $6.2 billion at the top-end of their price ranges, will propel the month’s IPO volume to an all-time high. IPOs on U.S. exchanges have already raised a record $156 billion this year. Private companies that sat out the market chaos in the early days of the Covid-19 pandemic — and were awaiting a final outcome in the U.S. election — are now rushing to go public. Airbnb and DoorDash will quickly be followed by three other mega-listings that could add billions of dollars to the IPO tally.

8. Japan Set to Unveil $706 Billion Stimulus Package

Yoshihide Suga is set to unveil his first stimulus package as Japan’s prime minister on Tuesday amid an increase in virus cases and a dip in support for his cabinet that is an early test of his leadership. The measures put together by Suga’s government will have an overall value of 73.6 trillion yen ($707 billion). The package will include around 40 trillion yen in fiscal measures, such as loans, investment and direct expenditure. The spending will be partly financed by 19.2 trillion yen from a third extra budget.

9. Dubai’s Largest Developer Halts New Projects as Glut Hits Values

Dubai’s largest developer is temporarily halting new projects amid a property glut that, combined with the coronavirus pandemic, has shaved nearly a third off house prices in the past six years. “We don’t build anymore,” Emaar Properties PJSC Chairman Mohamed Alabbar said at a conference in Dubai on Monday. “The government entities decided to stop new developments almost a year back, but Covid definitely put the brakes on.” The comments marked a rare admission from Emaar, which for years has resisted calls to stop construction even as new properties flooded the market and drove down values.

10. Israeli Tech Funding Jumps 23% to $9.5 Billion on Virus Demand

Israeli technology companies raised $9.5 billion so far this year, a 23% increase over 2019, as the coronavirus outbreak spurred demand for innovative solutions to overcome challenges posed by the pandemic. Funding rounds ballooned in Israel along with the rest of the world, as the global economy relied more on technology to solve the disruptions caused by restrictions on the movement of goods and people. The biggest rounds this year include the $350 million raised by insurance tech company Hippo Insurance Services, $267 million garnered by cyber-security outfit SentinelOne, $200 million by customer analytics firm Gong.io Ltd., and a $150 million deal by the fintech startup Tipalti Solutions Inc.

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Global Stocks Overbought; Risks Correction – Top 10 Global News

1. Global Stocks Pause at Record Highs; Dollar Slips

Global stocks paused near all-time highs and bonds steadied on Thursday amid mounting concern about fragile economic recoveries and the debate over fiscal support. S&P 500 futures stalled after the underlying gauge closed at another record high. European shares edged lower, pulled down by energy companies, while markets edged up in Asia. Sterling recouped Wednesday’s drop as traders took in stride France’s threat to veto a Brexit deal. And the dollar added to its slump this week that has sent the euro, Australian dollar and the Korean won to their highest levels versus the greenback in more than two years, and the Swiss franc to its strongest since 2015.

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 gained 0.6%.

The MSCI Emerging Market Index advanced 0.6%.

2. Morgan Stanley Says Stocks Overbought, Risk Correction

U.S. equities are overbought and at risk of a correction after their recent surge, according to Morgan Stanley’s Mike Wilson. One key risk that most people are overlooking is that Treasury yields continue to march higher, which could create jitters that send stocks lower, said the firm’s chief investment officer. Surging Treasury yields this week amid renewed optimism about a U.S. stimulus program and positive vaccine news are leaving some investors nervous that a higher discount rate may eventually require an adjustment lower in equity valuations with stocks at all-time highs. The S&P 500 Index is coming off a record monthly gain and is trading at valuations last seen at the bursting of the dotcom bubble.

3. Global Oil Benchmark Brent Could Soon Incorporate American Crude

S&P Global Platts is considering adding a key U.S. crude grade to its North Sea benchmark, a move that could transform the way oil prices are set in many parts of the world. The pricing agency has opened consultations on adding West Texas Intermediate Midland crude to the Dated Brent benchmark and is inviting feedback on the proposal until Feb. 5. Dated Brent is used to set more than two-thirds of the world’s physical oil prices and ultimately helps shape the price of Brent oil futures. The move reflects the growing importance of U.S. crude internationally. 

4. Covid Drug Prices Need U.S. Controls to Prevent Gouging

The U.S. government should set prices for coronavirus vaccines and therapies to prevent gouging, a coalition of companies and other employers said. Medicare, the health program serving older Americans, should determine fair prices for Covid-19 drugs and inoculations that would also be paid by companies, organizations and individuals, Employers’ Prescription for Affordable Drugs said in a statement. The group cited Gilead’s remdesivir antiviral as an example of an overpriced therapy. Employers are growing increasingly uneasy about their share of the treatment costs for rising numbers of patients with Covid-19, more than 90,000 of whom are now hospitalized in the U.S. alone. Remdesivir, one of the few coronavirus treatments, costs private health plans more than $3,000 per treatment course, the group said.

5. Germany Extends Lockdown; Iran’s 1 Million Cases

The number of coronavirus cases reported in Iran surpassed 1 million on Thursday, the Middle East’s worst outbreak. German Chancellor Angela Merkel extended the nation’s partial lockdown for three more weeks, with the daily death toll at its highest since April. Los Angeles (USA) ordered residents to stay home and businesses that require in-person work to cease operations. The U.S. had its deadliest day ever, with Covid-19 fatalities topping 2,700, according to Johns Hopkins University. Hospitalizations in the country surpassed 100,000 for the first time. Thailand will intensify patrolling at its borders after about a dozen people, who illegally entered the country from neighbouring Myanmar, tested positive for coronavirus.

6. China faces Ticking Debt Bomb in China’s $15 Trillion Bond Market

While defaults were once considered a rare occurrence in China’s bond market. After years of debt-fueled spending, Chinese companies are under increasing pressure. They are trying to cope with unsustainable levels of debt against a backdrop of substantially slower economic growth compared with earlier decades. With Beijing pulling back some of its supportive measures introduced to offset the impact of the pandemic, signs of credit stress are returning. A series of failures among state-linked companies sent shockwaves through the market, throwing doubt on the credit risks of a group of borrowers historically considered to enjoy the implicit guarantee of the state or local governments.

7. France Floats Veto Threat on Brexit Deal as EU Feels Strain

France warned it could veto a trade deal between the U.K. and the European Union if it doesn’t like the terms, piling pressure on the EU negotiating team not to make further concessions as talks build to a climax. At a meeting of the bloc’s 27 ambassadors on Wednesday, the French envoy warned chief Brexit negotiator Michel Barnier of how bad it would look if he brokered a deal only to see it vetoed by EU leaders. Once any deal is done, EU leaders must approve it unanimously if it is to take effect, meaning Barnier has to keep all member states on board.

8. China to Allow Australian Coal Cargo Ashore Despite Ban

China is set to allow a shipment of Australian coal into the country, despite a ban on such imports remaining in place as tensions between Beijing and Canberra escalate. A cargo of 135,000 tons of Australian thermal coal on the vessel Alpha Era, which has been waiting since late May to unload at the southern Chinese port of Fangchenggang, is expected to clear customs and is bound for a local user. It isn’t clear why the cargo is expected to clear customs. The ban on Australian coal, except on the Alpha Era cargo, remained unchanged. The person with knowledge of the Alpha Era said customs didn’t explain why they were processing the cargo.

9. Pandemic Pushed 32 Million People Into Extreme Poverty: UN

The coronavirus pandemic has had a devastating impact on the world’s poorest countries, pushing millions into extreme poverty, according to a United Nations report. More than 32 million additional people in the poorest countries in the world now live on less than INR 150 a day – a direct result of the outbreak, the UN Conference on Trade and Development said Thursday. The economic impact in the Least Developed Countries (LDC) has been far more devastating than the health crisis, it said, with growth prospects cut from 5% to -0.4% this year. That would be the worst economic performance of the 47 LDCs since the third-world debt crisis of the 1980s, the UN said. The abrupt halt in world trade and tourism, and the impact of lockdowns on international migration and remittances, dealt a “ruinous” blow.

10. Saudi Arabia, Qatar Near U.S.-Brokered Deal to End Lengthy Rift

Saudi Arabia and Qatar are nearing a preliminary deal to end a rift that’s dragged on for more than three years, prodded by a Trump administration seeking foreign policy wins during its waning days in the White House. The tentative agreement does not involve the three other Arab countries that also severed diplomatic and trade ties with Qatar in June 2017 — the United Arab Emirates, Bahrain and Egypt. A broader realignment remained a long way off as the underlying issues, such as Doha’s relations with Tehran, remained unresolved. The potential breakthrough follows months of intense diplomacy mediated by Kuwait, which reached fruition with a final push from President Donald Trump’s son-in-law and Middle East envoy Jared Kushner, who visited the Gulf this week. The rapprochement is likely to include reopening air space and land borders, an end to the information war Qatar and Saudi Arabia have waged and other confidence-building steps as part of a detailed plan to gradually rebuild relations.

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India out of China Trade Deal with 15 Asian Countries- Top 10 Global News

1. Global Equity Rally Slows After Days of Consecutive Rises

The rally that’s added $6 trillion to global stocks this month slowed on Thursday, as investors assessed whether markets had overheated amid a deteriorating coronavirus situation in many large economies. European stocks headed toward their first drop of the week on disappointing earnings reports tied to the pandemic. Tech shares outperformed, as some investors perceive them to be defensive. Fears that an intensifying pandemic will curb the economic rebound threaten this month’s almost 10% surge in global equities. The International Energy Agency on Thursday cut forecasts for global oil demand amid new lockdown measures.

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

Nasdaq 100 Index futures climbed 0.1%.

The Stoxx Europe 600 Index dropped 1%.

The MSCI Asia Pacific Index was little changed.

2. China and 14 Asian Nations to Sign World’s Biggest Free-Trade Deal

Fifteen Asia-Pacific nations including China aim to clinch the world’s largest free-trade agreement this weekend, the culmination of Beijing’s decade-long quest for greater economic integration with a region that accounts for nearly one-third of the global GDP. The Regional Comprehensive Economic Partnership (RCEP), which includes countries stretching from Japan to Australia and New Zealand, aims to reduce tariffs, strengthen supply chains with common rules of origin, and codify new e-commerce rules. Its passage may disadvantage some U.S. companies and other multinationals outside the zone. Following the withdrawal of India from RCEP negotiations last year, the remaining 15 nations sought to announce the agreement by the end of this week’s ASEAN Summit, which Vietnam is hosting virtually. 

3. Merkel Warns Germany’s Curbs May Get Extended Through Christmas

Chancellor Angela Merkel opened the door to extending coronavirus restrictions into December as Germany struggles to regain control of the pandemic. While rapid increases in new cases have slowed, levels are still too high, Merkel said on Thursday. Germany is looking to reduce cases to 50 per 100,000 people over seven days from 138 currently. Germany is in the midst of a partial lockdown, with bars, restaurants and gyms closed in a bid to regain control of the outbreak while keeping most of the economy operating. Merkel had raised hopes that the measures could be eased again in time for Christmas.

4. U.S. Initial Jobless Claims Decline by the Most in Five Weeks

Applications for U.S. state unemployment benefits fell by the most in five weeks, signalling the gradual improvement in the labor market is continuing despite a record surge in Covid-19 infections. Initial jobless claims in regular state programs totaled 709,000 in the week ended Nov. 7, down 48,000 from the prior week, Labor Department data showed Thursday. On an unadjusted basis, the figure decreased by about 21,000. Continuing claims — the total number of Americans claiming state unemployment assistance for multiple weeks — fell by 436,000 to 6.79 million in the week ended Oct. 31.

5. UK economy rebounds 15.5% in third quarter

Britain’s economy rebounded by 15.5% in the third quarter, emerging from a historic recession as initial coronavirus lockdown measures were relaxed. The economy, however, was still 9.7% smaller than before this year’s coronavirus-induced recession after a massive contraction in the second quarter. Output in services, the production and construction sectors increased by record amounts in the third quarter, but the reports cautioned that they were still below their pre-pandemic levels seen late last year. The nation entered a painful recession after shrinking by a record 19.8% in the second quarter after 2.5% in the first.

6. Netherlands lender Rabobank is set to close half its branches to cut costs

Netherlands-based lender Rabobank will close roughly half its local branches in coming years to cut costs. There will be an unspecified number of job cuts, but most employees will be relocated. Rabobank, best known internationally as an agriculture lender, did not immediately respond to a request for comment. In 2016, the company said it would trim 9,000 jobs, or a fifth of its workforce as part of cost-cutting measures. The number of local branches will be reduced from around 335 to “100 to 150” in coming years, the newspaper said. It said the decision was prompted by prolonged low-interest rates, digital banking and the COVID-19 pandemic. In July, leading Dutch bank ING said it would close a quarter of its bank branches in the Netherlands as the pandemic has accelerated the switch to digital banking.

7. Saudi Red Sea project plans 16 hotels by 2023 to boost tourism

Saudi Arabia’s flagship tourism project, The Red Sea Development Co (TRSDC), plans to have 16 hotels ready by the end of 2023, two more than initially planned in the first phase. The project’s chief executive, John Pagano, said that he expects a V-shape recovery in global tourism once the coronavirus pandemic abates. Owned by a Saudi sovereign fund, and backed by Crown Prince Mohammed bin Salman, the multibillion-dollar project entails developing luxury resorts on 50 islands off the coral-fringed Red Sea coast, where tourists can dive, visit a nature reserve and see heritage sites. TRSDC plans to finalise a 15-year loan from banks worth 14 billion riyals (INR 28,000 cr) by the end of the year to partly fund its 30bn-riyal capital spending by 2023, and it expects to end 2020 with around 15 billion riyals worth of committed contracts.

8. Moderna Poised to Take Vaccine Spotlight With Data Due

The same U.S. explosion of Covid-19 cases that helped Pfizer get results for its vaccine trial earlier this week is helping speed along Moderna’s trial. Moderna said Wednesday its study has accumulated more than 53 infections, allowing a preliminary analysis of the shot’s effectiveness to begin. The shares jumped. Moderna didn’t predict how long it could take an independent monitoring committee to analyze the data but said the company could get the data to the committee within days. The company said it is still blinded to the data. The bet among top experts in the field is that Moderna’s therapy, which uses a similar mRNA technology to Pfizer’s, will likely prove to be highly effective, perhaps mirroring Pfizer’s announcement earlier this week that its shot appears to be more than 90% effective.

9. Xi Challenges Biden With Move to Snuff Out Hong Kong Dissent

President Xi Jinping effectively defeated the most democratic institution under China’s rule, sending a message to Joe Biden that no amount of pressure will prompt him to tolerate dissent against the Communist Party. China’s top legislative body on Wednesday passed a resolution allowing for the disqualification of any Hong Kong lawmakers who aren’t deemed sufficiently loyal. Chief Executive Carrie Lam’s government immediately banished four legislators, prompting the remaining 15 in the 70-seat Legislative Council to resign en masse.

10. Singapore to Introduce New Visa to Draw Top Global Tech Talent

Singapore is rolling out the red carpet for top talent, launching a program to initially attract 500 individuals with a proven track record of contributing to the global technology ecosystem. Under the so-called “Tech.Pass” program, qualified individuals will be able to secure a new type of visa allowing them to start and operate more than one company and become an investor, consultant or mentor for local startups. This offers more flexibility than current government regulations, which require companies to sponsor an employment pass for workers they want to bring in. The two-year visa isn’t designed for mid-tier tech workers who might compete with locals for jobs, a political issue that has prompted the government to tighten its framework for issuing employment passes to foreigners this year. It’s targeted at highly accomplished entrepreneurs and technical experts who can bring in capital, networks and knowhow, as Singapore aims to become the region’s technology and innovation hub.

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Eurozone GDP posts Highest-Ever Quarterly Rise – Top 10 Global News

1. U.S. Stocks Slump After Tech Earnings Underwhelm

U.S. stocks slumped after earnings from the biggest tech companies disappointed investors concerned a slowing economy will damp profit. The Nasdaq 100 led losses among major U.S. stock gauges. In Europe, equities were mixed. Tech stocks also faltered. The tech slump, coming after an unprecedented run higher this year, is adding to volatility that’s likely to remain elevated heading into next week’s U.S. election. Global equities are on course for the worst weekly decline since March as lockdown measures in some countries and the lack of an agreement on U.S. stimulus dent sentiment.

The S&P 500 Index decreased 0.7% as of early morning New York time.

The Nasdaq 100 Index dropped 1.4%.

The Stoxx Europe 600 Index was little changed.

The MSCI Asia Pacific Index sank 1.5%.

2. Eurozone GDP up 12.7% in Q3, biggest-ever quarterly rise

Eurozone output soared by 12.7% in the third quarter, its sharpest recorded increase, as the bloc bounced back from the depths of the coronavirus lockdown, the EU’s statistics agency Eurostat said Friday. But, despite the rebound, total gross domestic product in the 19-country zone is still 4.3% down on the third quarter of 2019, while unemployment numbers for September and the inflation estimate for October remained flat.

3. U.S. Tech Giants – Apple, Facebook, Amazon – beat expectations

Apple beats expectations, but shares slip after the company reported iPhone sales that missed Wall Street estimates and a slump in revenue from China. Sales of Macs and Services reached all-time highs in this quarter. 

Facebook beats revenue estimates by $1.6bn. Facebook’s monthly active users rose to 2.74 billion, but the company warned of a tougher 2021.
Amazon.com on Thursday reported record profits for the second quarter in a row and forecast a jump in holiday sales, as consumers continued to shop more online during the novel coronavirus pandemic.

4. Hong Kong Economy Shows First Signs of Revival Since Protests Began

Hong Kong’s economy showed the first signs of emerging from a crippling recession sparked by political unrest last year and deepened by the global pandemic. GDP declined 3.4% in the third quarter from a year earlier, which was better than the median estimate of a 5.6% contraction. On a quarter-on-quarter basis, GDP rose 3%. This marks the first time the quarter-on-quarter measure has risen since before the start of anti-government protests last year, as a third wave of virus infections subsided last month.

5. Singapore Overtakes Thailand to Become Asia’s Worst Stock Market

Singapore stocks took a beating this week amid the twin uncertainties of the U.S. election and the worsening pandemic in the West, overtaking Thailand to become Asia’s worst equity market this year, taking the 2020 decline so far to 25%, compared with a fractionally smaller loss for Thailand’s SET index. The city-state’s index, which relies heavily on exports, is down about 4.3% this week, among Asia’s worst performances. A recovery in the Southeast Asian nation’s stocks from the market plunge triggered by the pandemic has been hampered by the economy’s integration with global trade and supply chains, and a lack of technology shares in the index. More than 80% of Singapore’s benchmark is made up of cyclical equities — the most among regional peers.

6. German economy will shrink 5.5% this year

Europe’s largest economy will likely shrink by 5.5% this year, the German Economy Ministry said on Friday, before expanding by 4.4% in 2021. The German economy has taken a thrashing from the coronavirus pandemic this year and a circuit-breaker lockdown is due to come into effect nationwide on Monday in a bid to curb a surge in infections. The ministry’s new 2020 forecast would still mean Germany is in one of the worst recessions of the post-World War Two era this year but means it is not faring as badly as during the 2009 global financial crisis.

7. U.K. Accelerates Reviews of Pfizer and Astra-Oxford Vaccines

The U.K.’s drug regulator has started accelerated reviews of Covid-19 vaccines under development from Pfizer and AstraZeneca as Britain gets ready to approve the first successful shot as quickly as possible. The U.K. Medicines and Healthcare Products Regulatory Agency started a so-called rolling review of the Pfizer vaccine in recent weeks. The agency is also conducting an expedited review of Astra’s vaccine, which the company is co-developing with the University of Oxford. Rolling reviews allow regulators to see clinical data in real time and have discussions with companies about ongoing trials and manufacturing processes so that approvals can be granted more quickly.

8. Exxon Mobil to lay off 1,900 US employees

Exxon Mobil Corp said on Thursday it will lay off about 1,900 employees in the United States as the COVID-19 pandemic batters energy demand and prices. Exxon was once the largest US publicly-traded company but has been cutting costs due to a collapse in oil demand and ill-timed bets on new oil-fields and expansions. It has promised to shed more than $10bn this year in project spending and cut operating expenses by 15%. The company lost nearly $1.7bn in the first six months of the year and is expected to post another quarterly loss on Friday. Exxon said the job cuts, part of a global reorganisation, will come mainly from its Houston, Texas office and will include voluntary and involuntary cuts.

9. Air France-KLM warns of bigger losses amid lockdowns

Air France-KLM unveiled a $1.24 billion (INR 9200 cr) quarterly operating loss and warned of worse to come as a resurgent coronavirus brings new travel curbs. The Franco-Dutch airline group reported a 67% drop in Q3 revenue, as France returned to full lockdown for at least a month. New COVID-19 outbreaks pose a threat to network airlines already weakened by the crisis and long-haul travel collapse. 

10. Japan Airlines forecasts over $2.3 billion annual net loss as pandemic grounds air travel

Japan Airlines said it had forecast an annual net loss of more than $2.3 billion (INR 17,100 cr) after the coronavirus pandemic grounded air travel around the world. The air carrier is Japan’s second-largest by market share. It did not issue annual forecasts when it published first-quarter earnings in August, citing deep uncertainty surrounding the pandemic. The company reported a 74% reduction in sales and plans to slash 3,500 jobs through a hiring freeze, while also deciding to stop hiring for next year.

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U.S. economy rebounds with 33% growth in Q3 – Top10 Global News

1. U.S. Stocks Push Higher; Oil Tumbles on Virus Concerns

U.S. stocks rose a day after their biggest fall in four months, with investors encouraged by better-than-forecast GDP data even as they kept a wary eye on growing coronavirus infections. Oil plunged for a second day on concern lockdowns will sap demand. Automakers led the S&P 500 Index higher after reports showed record growth in the third quarter and a decline in weekly jobless claims. The tech-heavy Nasdaq 100 outperformed ahead of earnings reports from Apple, Amazon, Alphabet and Facebook due after the close. In Europe, stocks erased most of their losses after European Central Bank President Christine Lagarde said officials could look at new instruments for supporting the economy when they meet in December.

The S&P 500 Index rose 0.8% as of early morning New York time.

The Nasdaq 100 Index increased 1.5%.

The Stoxx Europe 600 Index rose 0.2%.

The MSCI Asia Pacific Index decreased 0.2%.

2. US economy turns in record Q3 growth, but the crisis is not over

The United States economy grew at its fastest pace on record in the third quarter, rebounding at an annual rate of 33.1%. The blockbuster reading follows on from a record-shattering 31.4% contraction in the Q2 and a -5% hit in Q1– when the economy officially entered recession in February.The balance signals that though the economy is crawling out of the deep hole dug by COVID-19 it still has a way to go to recapture its pre-pandemic strength. Moreover, some sectors of the economy are recovering faster than others and those disparities are rippling through the fabric of American society in the form of deepening inequalities. Those with a job and assets like stock portfolios and homes are doing well, while those who are jobless or own a business ravaged by virus restrictions are falling further behind. Racial wealth and income disparities are widening.  Women are dropping out of the workforce at an alarming rate as the demands of jobs and looking after children learning remotely force tough choices on parents.

3. Three killed in ‘terrorist attack’ on French church

An attacker armed with a knife killed three people inside a church Thursday in the Mediterranean city of Nice, prompting the country to raise its security alert status to the highest level. It was the third attack in two months in France that authorities have attributed to Muslim extremists, including the beheading of a teacher. It comes amid a growing furor over caricatures of the Prophet Muhammad that were republished by the satirical newspaper Charlie Hebdo — renewing vociferous debate in France and the Muslim world over the depictions that Muslims consider offensive but are protected by French free speech laws.

4. China aims for sustained, healthy growth in the five years to 2025

President Xi Jinping and members of the Central Committee, the largest of the ruling party’s elite decision-making bodies, met behind closed doors this week to lay out the 14th five-year plan, a blueprint for economic and social development. China’s external environment “is getting more complicated”, the state news agency said, adding, “There is a significant increase in instabilities and uncertainties.” However, the country’s development was still in a period of important strategic opportunities, despite new challenges, it said. It added that China aims to boost its gross domestic product (GDP) per person to the level of moderately developed countries by 2035, while GDP is due to cross $15 trillion by the end of 2020. China will also deepen reforms and let market forces play a decisive role in resources allocation.

5. Germany Imposes Toughest Restrictions Since Lockdown

Chancellor Angela Merkel will impose the toughest restrictions on Germany since a national lockdown earlier this year, closing bars and restaurants in Europe’s largest economy to regain control of the rapid spread of the coronavirus. The one-month partial shutdown, which will go into effect on Monday, is designed to keep most businesses operating. Officials will discuss again in two weeks to assess the impact of the measures. With the public weary of pandemic measures and protests increasing, the government sought to ease pressure by making available up to $11.7 billion (INR 88,600 cr) in aid for companies affected by the measures, including reimbursing as much as 75% of lost sales in November.

6. China Marks Another Step in Virus Rebound With Singapore Opening

Singapore will lift border restrictions on visitors from mainland China from Nov. 6, a further reminder that the nation where the coronavirus outbreak first began is firmly on the road to recovery as the pandemic rages elsewhere. Visitors will have to undergo a coronavirus PCR test upon arrival at Singapore’s Changi Airport. If the result is negative, they will be allowed to enter Singapore without having to serve a stay-home notice.

New cases in China have remained below 100 a day since mid-August, with travelers into the country subject to a mandatory 14-day quarantine. Masks and temperature checks are generally still required in public places.

7. Record 200 Days With No Local Case Makes Taiwan World’s Envy

While many countries around the world are hitting new highs in coronavirus cases, Taiwan has achieved a different kind of record — 200 days without a locally transmitted case. Taiwan holds the world’s best virus record by far and reached the new landmark on Thursday, even as the pathogen explodes anew in Europe and the U.S. Taiwan’s last local case came on April 12; there has been no second wave. What did this island of 23 million people do right? It has had 553 confirmed cases, with only seven deaths. Experts say closing borders early and tightly regulating travel have gone a long way toward fighting the virus. Other factors include rigorous contact tracing, technology-enforced quarantine and widespread mask wearing. Further, Taiwan’s deadly experience with SARS has scared people into compliance.

8. Central Banks Sell Gold for First Time in a Decade

Central banks became gold sellers for the first time since 2010 as some producing nations exploited near-record prices to soften the blow from the coronavirus pandemic. Net sales totaled 12.1 tons of gold bullion in the third quarter, compared with purchases of 141.9 tons a year earlier, according to a report by the World Gold Council. Selling was driven by Uzbekistan and Turkey, while Russia’s central bank posted its first quarterly sale in 13 years, the WGC said. 

9. Asian stocks extend global market sell-off as virus cases surge

Asian share markets fell on Thursday but not as sharply as Wall Street’s sell-off overnight, while oil bounced off lows and US stock futures jumped, as Asia’s brighter economic outlook offset investor worries about fresh COVID-19 lockdowns in Europe. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1 percent. Japan’s Nikkei fell 0.8 percent and drops in Hong Kong, Sydney, Shanghai and Seoul were smaller than 1.5 percent.  Those are heavy losses, but much less than the United States’s S&P 500 index’s 3.5-percent drop in New York or the 4.2-percent fall by Germany’s DAX, which led European shares to their lowest level since late May.

10. Abu Dhabi to issue FDI licences allowing 100% foreign ownership

Abu Dhabi, the capital of the United Arab Emirates, will issue foreign direct investment (FDI) licences to allow foreign investors to own 100% of projects in the emirate in sectors including agriculture, industry and services. The move implements a foreign investment law approved in 2018 allowing foreign investors to own more than 49% and up to 100% of some UAE businesses, as the country seeks to boost private sector activity. About 122 economic activities, which were approved by the UAE cabinet last year across 13 sectors, would allow 100% foreign ownership in Abu Dhabi.

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No U.S. stimulus package before elections – Top10 Global News

1. Tech Shares Gain After Chipmaker M&A: Global Markets Update

Tech shares rose after Advanced Micro Devices (AMD) announced a $35 billion takeover of another chipmaker Xilinx, helping to blunt concern about the impact of growing coronavirus infections. Losses for shares in energy and financial companies were a drag on the S&P 500 as it struggled to bounce back from its worst loss in a month yesterday. The Stoxx Europe 600 Index headed toward its lowest close since June amid concern about the faster spread of the coronavirus on the continent.

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

The Stoxx Europe 600 Index decreased 0.5%.

The MSCI Asia Pacific Index was little changed.

2. U.S. Stimulus Hope On Hold: Senate Leaves for pre-election break

U.S. senators departed the Capitol for a pre-election break Monday, making the logistics for passing a fiscal stimulus package by next Tuesday practically impossible, leaving the economy more vulnerable to damage from a resurgent coronavirus pandemic. The Senate’s departure after the confirmation vote for Amy Coney Barrett to join the Supreme Court left House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin to continue negotiating over the stimulus package. After their latest call on Monday, agreement remains pending on both the amount and language of the bill. 

3. Germany Plans Restrictions as Italy Boosts Aid

Germany is looking at closing restaurants and prohibiting large events as governments across Europe seek to tackle rising infections and fatalities while avoiding full-scale lockdowns. Italy, the continent’s original epicenter of the pandemic, is coming up with more aid for businesses hardest hit by restrictions. U.K. Prime Minister Boris Johnson faces growing discontentment within his party over lockdown measures imposed on northern regions. Many countries in Eastern Europe reported fresh daily records for cases and deaths. Hong Kong, meanwhile, will ease some social distancing rules and announced plans for mandatory testing of specific groups. India’s daily infections fell below 40,000 for the first time in more than three months.

4. Dubai to launch ‘Nasdaq’ market for emerging firms & SMEs

Dubai plans to launch a “Nasdaq Dubai Growth Market” to help emerging companies, and small and medium enterprises (SMEs) attract investors and finance their projects, crown prince of the emirate, Sheikh Hamdan bin Mohammed bin Rashid al- Maktoum, said on Tuesday. The Nasdaq Dubai Growth Market will allow SMEs to list if they are valued below $250 million, with a minimum operating history of one year, compared to three years for Nasdaq Dubai’s main market. Nasdaq Dubai is collaborating with government bodies, UAE free zones and expert advisory companies as partners to launch the growth market in early 2021.

5. ADNOC seeks Indian partners for $45 bn petro-chem expansion plans

Abu Dhabi National Oil Company (ADNOC), UAE’s biggest energy producer, is seeking Indian companies for partnership in its ambitious $45 billion (INR 3.3 lakh cr) downstream petrochemical expansion plans. ADNOC CEO Sultan Ahmed Al Jaber, during a virtual session Prime Minister Narendra Modi had with global energy chief executives on Monday evening, sought opportunities to strengthen the UAE-India energy relationships. Speaking at the roundtable, Al Jaber said India has always been and will always remain one of the UAE’s closest friends and one of its most important trading partners.

6. Global foreign direct investment halved in first six months of 2020

Global foreign direct investment (FDI) plunged by 49% in the first half of 2020 from the same period a year ago and is on course to fall by up to 40% for the year, driven by fears of a deep recession. FDI flows to European economies turned negative for the first time ever, falling to -$7 billion from $202 billion, while flows to the United States fell by 61% to $51 billion, the U.N. Conference for Trade and Development (UNCTAD) said in a report. Global FDI fell as multinationals postponed investments to preserve cash.

7. Russia Begins Producing Second Covid-19 Vaccine as Cases Spike

Russia has begun production of a second Covid-19 vaccine that hasn’t completed trials as the Kremlin rushes to develop a shield against the pandemic. Output of the vaccine, developed by former biological weapons lab Vector State Virology and Biotechnology Center in Novosibirsk, will ramp up by the end of the year. President Vladimir Putin announced the approval of Vector’s vaccine earlier this month, following a similar trajectory of the Sputnik V inoculation in August, which he claimed was the first to be registered in the world. Both were tested on a limited number of people before receiving provisional registration that will allow for widespread use as they undergo Phase 3 trials to prove they are safe and effective.

8. Pfizer not yet ready to release COVID-19 vaccine data from late-stage trial

Pfizer said on Tuesday it was not yet ready to release data from the late-stage trial of the COVID-19 vaccine candidate it is developing with Germany’s BioNTech. Pfizer’s CEO Albert Bourla has said the company could release data on whether or not the vaccine works as early as this month, but the company said in a presentation that the independent data monitoring board which will determine whether or not the trial has been successful has not conducted any interim efficacy analyses yet. This is a prime vaccine candidate touted by President Trump to be ready by November.

9. China Ramps Up Imports From U.S. as Trade Deal Target Looms

China ramped up purchases of American goods in September as its economy strengthened, though it still remains far from the full-year target set out under its Phase One trade deal with the U.S. The monthly value of U.S. goods that China bought under the trade agreement reached a monthly record high of $9.9 billion in September as oil, soybean and car imports surged. That still leaves China’s purchases at only 38.5% of a total target of more than $170 billion for the year. Under the agreement signed in January, China promised to buy an additional $200 billion of U.S. goods and services over the 2017 level by the end of 2021. The coronavirus pandemic upended some of those plans as demand crashed in the first quarter, but China’s recovery since then is gaining momentum, with imports gradually accelerating.

10. Rolls-Royce Gets Investor Approval for $2.6 Billion Equity Sale

Rolls-Royce shareholders backed a $2.6 billion equity raise, a key step toward shoring up the British jet engine maker’s finances to outlast the Covid-19 pandemic. Investors voted 99.5% in favour of the rights issue.  Rolls-Royce’s engine business has been dealt a heavy blow by the coronavirus, with both unit sales and maintenance revenue hurt by a mass grounding of widebody aeroplanes. The company announced a 5 billion-pound refinancing plan at the start of this month, funded through a combination of debt issuance, a rights offer and loans, and now has no pressing need to extend borrowings guaranteed by the U.K. government.