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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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Merry Brexmas! EU-UK Trade Deal Sees Light – Top 10 Global News

1. Stocks & Equity Futures Climb; Bonds Retreat

U.S. equity futures and global stocks pushed higher after President Donald Trump backed away from earlier threats and signed a coronavirus aid package. S&P 500 Index contracts climbed after Trump’s surprise approval of the combined $2.3 trillion Covid-19 relief and government funding package. Germany’s DAX Index rose to a record and the MSCI Asia Pacific Index was up 0.3%. Bonds retreated and the dollar ticked lower.

Futures on the S&P 500 Index rose 0.7% as of early morning in New York.

The Stoxx Europe 600 Index rose 0.8%.

The MSCI Asia Pacific Index gained 0.3%.

The MSCI Emerging Market Index was little changed.

2. EU-U.K. Trade Deal Gets Nod From Bloc’s Envoys in Brussels

European Union ambassadors gave the go-ahead to the bloc’s draft free-trade agreement with the U.K., paving the way for the deal to take effect on Jan. 1. “EU ambassadors have unanimously approved the provisional application of the EU-UK Trade and Cooperation Agreement as of January 1, 2021,” Sebastian Fischer, a Brussels-based spokesman for the German government, whose country currently holds the EU’s rotating presidency, said in a Twitter post on Monday. The thumbs-up by EU member-country envoys sets the stage for formal approval by the 27-nation bloc’s governments on Tuesday and for a vote by the U.K. House of Commons on Dec. 30.

3. Bitcoin on Longest Winning Run Since 2019 – Tops $28,000

Bitcoin is on track for its longest monthly winning streak in more than a year after touching a record above $28,000 over the weekend. The largest cryptocurrency reached an all-time high of $28,365 on Sunday before paring some of the advances. The run of outsized returns over October, November and December so far is the longest such stretch since mid-2019. “My sense is we’re very close to a top — we could hit $30,000 though,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. “We should definitely see a pullback, but the magnitude is probably lesser. We might only see 10% to 15% drops.” The cryptocurrency has advanced about 270% this year.

4. Europe Rushes to Boost Vaccine Output to Speed Pandemic Exit

Germany is pushing to ramp up production of Covid-19 vaccines as Europe faces pressure to close the gap with Britain and the U.S. in a bid to end the pandemic. With inoculations gradually getting started across the region, authorities are concerned about the slow pace of the rollout could force longer lockdowns and cause more economic damage for months to come. “We’re working intensely on having additional production here in Germany soon,” Jens Spahn, the country’s health minister, said Monday on ZDF television, adding that more capacity could be available at a facility in Marburg as soon as February. “That would increase the amount considerably.” The sense of urgency has grown amid concerns about a faster-spreading strain that emerged in the U.K. and has been found in Spain and elsewhere in Europe.

5. Turkey Hikes Minimum Wage by 22%; Short of Labor Demands

Turkey’s minimum wage will rise 22% next year, challenging efforts to keep down inflation while dismaying unions that found it insufficient to address the economic hardships caused by the coronavirus. The monthly net minimum wage will be 2,826 liras ($377), Labor Minister Zehra Zumrut Selcuk said in Ankara on Monday. About half of all workers in the country of 83 million people earn a monthly salary at or near minimum wage. Turkey’s largest labour confederation, Turk-Is, which represented workers at the wage negotiations, called the increase “inadequate.” But unions had no immediate plans to combat the government’s decision.

6. India Stocks Climb to Fresh Records on Steady Foreign Inflows

India stocks rose as inflows from foreign investors headed for a record quarter. The S&P BSE Sensex climbed 0.8% to 47,353.75 in Mumbai. The NSE Nifty 50 Index advanced 0.9%. Both gauges closed at fresh all-time highs. Indian equities have surged as part of a global shift by investors into emerging markets as countries begin rolling out vaccines. The inflows have shown little sign of slowing for the holiday season, as investors poured about $6.5 billion into the market this month. That would be the second-highest monthly total on record.

7. Alibaba Probe Stirs Global Worry, $200 Billion China Tech Rout

Alibaba Group Holding Ltd. led a second day of frenetic selling among China’s largest tech firms, driven by fears that antitrust scrutiny will spread beyond Jack Ma’s internet empire and engulf the country’s most powerful corporations. Alibaba and its three largest rivals — Tencent Holdings Ltd., food delivery giant Meituan and JD.com Inc. — have shed nearly $200 billion over two sessions since Thursday when regulators revealed an investigation into alleged monopolistic practices at Ma’s signature company. That marked the formal start of the Communist Party’s crackdown on not just Alibaba but also, potentially, the wider and increasingly influential tech sphere. Alibaba fell 8% Monday, shedding $270 billion of value since its October peak. Tencent and Meituan both tumbled more than 6%. 

8. Oil Gains on U.S. Stimulus and Covid-19 Vaccine Optimism

Oil climbed as the U.K. is poised to grant regulatory approval to another Covid-19 vaccine and as the U.S. passed its stimulus bill into law. Futures in New York are trading 1.2% higher after dipping in early trading. Britain’s drug regulator could clear the shot produced by AstraZeneca Plc and the University of Oxford for use as early as this week. Crude reversed losses of as much as 1.5% after President Donald Trump signed the long-awaited bill containing $900 billion of virus relief, having previously criticized the stimulus package. The bill’s approval weakened the dollar, raising demand for dollar-denominated commodities, and also raised hopes of higher oil consumption in the future.

9. Drugmakers Agree to Halve Prices to Secure Access to China

Drugmakers from AstraZeneca Plc and GlaxoSmithKline to BeiGene agreed to cut prices on some of their newest drugs in China by an average of 51% in order to be covered by the country’s national insurance fund. A total of 119 new therapies — treating ailments from pulmonary diseases and diabetes to cancers and lupus — were added for coverage by the state-run medical safety net after drawn-out negotiations, the National Healthcare Security Administration said in a notice posted on its website Monday. Companies are eager to get their treatments on the list even at steep discounts to gain access to the world’s second-biggest market for pharmaceuticals.

10. Germany Plans Vaccine Boost; Norway’s Quarantine: Virus Update

Germany is seeking to expand production of Covid-19 shots to help bolster Europe’s vaccination program. The sense of urgency has grown amid concerns about a faster-spreading strain that emerged in the U.K. and has since been found elsewhere in Europe. U.S. President Donald Trump signed a bill containing $900 billion in pandemic relief. Top U.S. health officials warned of a post-Christmas surge in infections, as cases slowed amid scattered holiday reporting. Singapore began relaxing virus rules Monday as the city-state moves into the final phase of curbs. Indonesia imposed a temporary ban on all foreigners from visiting the country, while Taiwan will increase the quarantine period for flight crews to seven days.

CURATED FROM ECONOMIC TIMES, THE NEW YORK TIMES, AND BLOOMBERG.

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China Probes Alibaba over Monopoly – Top 10 Global News

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

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

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

The Stoxx Europe 600 Index increased 0.2%.

The MSCI Asia Pacific Index rose 0.5%.

The MSCI Emerging Market Index gained 0.4%.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

9. Turkey Central Banker Tightens Again in Boost to Credibility

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

10. Dover Truck Backups Persist on Christmas Eve Despite Progress

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

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

1. European Stocks Bounce Back as Dollar Advances

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

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

The Stoxx Europe 600 Index jumped 0.8%.

The MSCI Asia Pacific Index decreased 0.9%.

The MSCI Emerging Market Index dipped 0.4%.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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New Covid Strain Shakes Global Markets – Top 10 Global News

1. Stocks, Futures Slump on Virus Curbs; Bonds Rally

Stocks and futures were a sea of red on Monday as a new variant of the coronavirus in the U.K. caused chaos ahead of the Christmas holiday, with regional neighbours suspending travel. Energy and travel shares dragged the Stoxx 600 Index down 2.5% as Italy, the Netherlands, Belgium and France closed their borders to the U.K. The dollar gained the most since June. In the U.S., equity futures pointed to sharp declines at the open even after Congressional leaders reached a deal on spending to support the economy. Losses were concentrated in energy producers and stocks that would benefit from a return to more normal economic activity.  The pound slumped by the most since March as an official said “significant differences” remain in Britain’s trade talks with the European Union. Crude oil fell by more than 3%.

Futures on the S&P 500 Index sank 1.8% as of early morning New York time.

The Stoxx Europe 600 Index sank 2.6%.

The MSCI Asia Pacific Index dipped 0.6%.

The MSCI Emerging Market Index dipped 1.1%.

2. Congress Poised for Vote on $900 Billion Pandemic Relief Plan

The House and Senate are set to vote Monday on a roughly $900 billion pandemic relief bill that would be the second-biggest economic rescue measure in the nation’s history. The aid package will be attached to a $1.4 trillion measure to fund government operations through the end of the fiscal year, and congressional leaders said they expect the legislation to easily pass both chambers. The White House said President Donald Trump would sign it. The deal followed more than a week of furious negotiations sparked by a group of Democratic and Republican senators who drew up their own compromise proposal and urged their leaders to act.

3. Tesla Slides in First Day of Trading on the S&P 500 Index

Tesla’s shares fell as much as 6.4% in premarket trading on its first day after being added to the S&P 500 Index, as the broader market slid and the stock retraced gains from Friday when tens of millions of shares were purchased by index-fund managers. Futures contracts on the S&P 500 plunged 2.5%, following European stocks lower after several major countries moved to suspend travel from the U.K. amid concerns about a new strain of Covid-19. Tesla has catapulted 731% this year in anticipation of the historic inclusion, making it the biggest company ever to be added to the benchmark.

4. Biden Will Inherit a Strong Hand Against Xi, Thanks to Trump

Joe Biden will be sworn in as president after Trump’s administration spent years ramping up pressure on China, including levying tariffs on $370 billion in imports, getting Canada to place a Chinese executive for Huawei Technologies Co. under house arrest, threatening access to U.S. capital markets and blaming the Communist Party for the scale of the Covid-19 outbreak. President Trump’s pressure campaign continued last week, as the administration blacklisted more than 60 Chinese companies, limiting their ability to get U.S. technology, in order “to protect national security”.

5. JPMorgan Says Flows to Into Major Crypto Fund Are Key to Bitcoin’s Outlook

The odds of a Bitcoin correction would increase if the flows into the world’s largest traded cryptocurrency fund slow significantly, according to strategists at JPMorgan Chase & Co. The Grayscale Bitcoin Trust’s assets under management have climbed to $13.1 billion from $2 billion at the start of December last year, amid a tripling in the digital currency’s price so far in 2020. Inflows into the fund are running at about $1 billion per month, the strategists wrote in a note Friday. Bitcoin reached an all-time high of $24,291.38 on Sunday. The cryptocurrency’s backers argue it’s gaining ground among longer-term investors as a hedge against dollar weakness and risks such as higher inflation. Others claim an unsustainable speculative fervour, exacerbated by trend-following quant funds, lies behind much of the rally in Bitcoin and other digital assets.

6. Hong Kong May Consider Unprecedented Virus Curbs, Including Curfews

Unprecedented virus control measures including curfews and shutdowns of non-essential businesses may be considered in Hong Kong, according to a government health adviser, as the city continues to see a high number of locally-transmitted cases and the holiday season looms. Limiting the number of people per household allowed to shop for groceries, shuttering all businesses deemed non-essential and shortening mall operating hours are among the curbs that may have to be imposed to prevent another Covid-19 wave.

7. France Halts U.K. Freight Over Virus Alarm, Rocking Supplies

Britain’s biggest port stopped all traffic heading to Europe, triggering delays to food supplies after the discovery of a new variant of the virus prompted a wave of countries to ban travel from the U.K. The escalating crisis prompted Boris Johnson to convene a meeting of the government’s emergency committee on Monday in a bid to keep goods flowing. The concern is focused on links with France, which suspended inbound travel from the U.K., including freight, for 48 hours starting midnight Sunday. The disruption comes at a critical time for Johnson’s government, which is still negotiating the terms of post-Brexit trade with the European Union. It’s also battling a surge in coronavirus infections which forced ministers to put London and much of southeast England into lockdown over the weekend, heaping more misery on businesses in the critical pre-Christmas period.

8. Pound Plummets as Virus Threatens U.K.’s Supply Chains With EU

The pound had its worst day since the coronavirus roiled global markets in March, as a new strain of the pathogen disrupted the U.K.’s supply chains with Europe. Sterling tumbled 2.5% to as low as $1.3188 as Britain’s biggest port in Dover stopped all traffic heading to the continent, and after another Brexit deadline went past without results. The currency’s one-week implied volatility is the highest for a Christmas period in more than a decade. Expectations of monetary easing by the Bank of England mounted, with money markets bringing forward bets for a 10-basis-point interest-rate cut to September, compared with March 2022 on Friday. Ten-year bonds rallied, with yields slipping as much as nine basis points, and the FTSE 100 share index fell as much as 3.3%. 

9. Saudi Arabia, Oman Suspend Foreign Travel Over Mutant Virus

Saudi Arabia and Oman halted international flights and closed their borders for a week over fears about the fast-spreading new strain of the coronavirus. State-run Saudi Press Agency said the kingdom may extend the suspension for another week depending on the nature of the virus spread. Oman halted passenger traffic through its air, land and seaports for a week starting Tuesday, but freight services are exempt from the ban. The U.K. has warned that the new virus strain is “out of control,” prompting countries including France and Germany to suspend travel from Britain. 

10. Dubai Stocks Fall Most in Seven Months on Travel Worries

Stocks in Dubai slumped the most since May on fears of further travel restrictions after a new variant of the coronavirus was found in the U.K. A travel corridor between Britain and Dubai was expected to help air traffic on the route to climb by a third this month. Any anticipated boost to the city’s struggling tourism sector could also be threatened by several countries including neighbouring Saudi Arabia imposing fresh curbs.

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Global Investors Dump Indian Bonds – Top 10 Global News

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

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

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

The Stoxx Europe 600 Index dipped 0.1%.

The MSCI Asia Pacific Index sank 0.4%.

The MSCI Emerging Market Index declined 0.3%.

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

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

3. Global Investors Are Dumping Indian Bonds Like Never Before

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

4. EU Gives Johnson Fishing Ultimatum as Brexit Reaches Climax

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

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

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

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

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

7. Chinese E-Commerce Newcomers Doubles Amid IPO Frenzy

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

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

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

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

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

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

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

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Countries Rush to Secure Vaccines. – Top 10 Global News

1. Global Stocks Advance, Dollar Weakens

Global stocks rallied, with confidence among investors building on the back of stronger German factory data, the vaccine rollout and the prospect for more U.S. stimulus. Markets were green across the board. The Stoxx 600 Index rose 0.9%, notching a third day of gains, and the DAX Index outperformed. In the U.S., S&P 500 futures were higher and the dollar weakened as investors waited for details from the Federal Reserve’s recent meeting. Economists say the Fed may deliver fresh guidance on its asset purchases and progress in meeting its goals of full employment and 2% inflation.

Futures on the S&P 500 Index increased 0.3% as of early morning London time.

The Stoxx Europe 600 Index jumped 0.8%.

The MSCI Asia Pacific Index increased 0.8%.

The MSCI Emerging Market Index gained 0.8%.

2. Fishing Rights Are Now Major Last Hurdle, EU Says: Brexit Update

European Commission President Ursula von der Leyen said fishing rights are now the last major hurdle to a post-Brexit trade deal, as Prime Minister Boris Johnson warned the U.K. has a “natural right” to control its own waters. With negotiations continuing in Brussels, von der Leyen told the European Parliament that a deal is possible but difficult. “As things stand, I can’t tell you if there will be a deal or not,” she said. Optimism has grown after the two sides agreed to continue discussions past their self-imposed Sunday deadline and the EU’s chief negotiator Michel Barnier said he saw a “narrow path” to a deal this week if differences can be bridged.

3. China Secures 100 Million Doses of BioNTech Vaccine

A Chinese drugmaker has secured 100 million doses of the coronavirus vaccine co-developed by Pfizer and BioNTech, as the country seeks overseas shots in addition to home-made ones to ensure immunization for the world’s most populous nation. Shanghai Fosun Pharmaceutical Group Co., which in March made an agreement with BioNTech to develop and market the mRNA shot in China, will make an advance payment of $300 million for an initial 50 million doses. The German vaccine maker will supply no fewer than 100 million doses for China by the end of 2021, Fosun said in a statement filed with the Hong Kong Stock Exchange.

4. New York Is on a Path Toward a Second Full Shutdown

New York is headed toward a second full shutdown if Covid-19 cases and hospitalizations continue at their current pace, Governor Andrew Cuomo said. “If we do not change the trajectory, we could very well be headed to shut down” all non-essential businesses, Cuomo said Monday at a virus briefing. The state reported 5,712 hospitalizations, an increase of more than 1,000 in the past week. If that pace continues, it will be at 11,000 in a month, and some regions may be overwhelmed, Cuomo said. The increase is of particular concern in dense regions like New York City, the governor said. Cuomo shut down the city’s indoor dining on Monday, even as he cited statistics showing that three-fourths of new cases come from private gatherings.

5. Cathay Still Mired in Covid Trouble With Traffic Down 99%

Cathay Pacific Airways carried just 37,815 passengers in November, down 98.6% from a year earlier, and warned that its second-half losses will be significantly worse than the $1.3 billion haemorrhages in the first six months. Average passenger capacity in the second half is only likely to be 8.4% of pre-pandemic levels, compared with 34.3% in the first half, the Hong Kong-based carrier said Wednesday. Restructuring and impairment costs will add to the pressure on earnings as demand remains elusive. Cathay’s passenger traffic has been down around 99% every month since April as Covid-19 and related travel restrictions decimated demand. November revenue passenger kilometres fell 97.9% from a year earlier, while passenger load factor was just 18.5%.

6. Hong Kong’s Lalamove Seeks Funds at $8 Billion Valuation

Hong Kong’s on-demand logistics and delivery firm Lalamove is seeking new funding round at an $8 billion valuation. The company, also known as Huolala in China, is looking to raise at least $500 million. The startup could raise more depending on investor demand. Founded in 2013 by Stanford graduate and former professional poker player Chow Shing-yuk, Lalamove provides van-hailing and courier services on demand. It operates in 24 markets across Asia, Latin America and the U.S. with a pool of more than 700,000 driver-partners. Lalamove’s business is anchored in China. Transportation and logistics companies have seen a surge in demand globally amid a boom in e-commerce, one of the beneficiaries of coronavirus-driven lockdowns this year.

7. FDA Clears First At-Home, Over-the-Counter Covid-19 Test

The first Covid-19 test that can be performed entirely at home was cleared by U.S. regulators on Tuesday, and it can be acquired without a prescription. While availability will be limited initially, the new test and others in development could make virus screenings as accessible as over-the-counter pregnancy tests in the U.S. for the first time. The advance follows months of criticism that the Food and Drug Administration has been too slow to approve rapid home tests for the virus. Manufactured by East Brisbane, Australia-based Ellume, the self-administered, single-use nasal swab test is small enough to fit in the palm of a person’s hand. It detects proteins on the virus’s surface in 15 minutes and delivers results to an app.

8. Boris Johnson Urges ‘Extreme Caution’ in U.K. Over Christmas

U.K. Prime Minister Boris Johnson urged people to exercise “extreme caution” over Christmas, despite pressing ahead with plans to ease coronavirus restrictions over the holidays. “We can celebrate it sensibly, but we have to be extremely cautious in the way we behave,” Johnson told lawmakers in the House of Commons on Wednesday. As many as three households will be able to gather together for five days between Dec. 23 and 27 in England. Ministers have faced growing demands to rethink the approach after a surge in Covid-19 infections in recent days.

9. German Virus Deaths at Record: Virus Updates

Germany recorded the biggest increase in Covid-19 deaths since the pandemic began as Chancellor Angela Merkel hinted that a hard shutdown that takes effect Wednesday will remain in force beyond January. Tokyo cases rose to an all-time high, while South Korea also reported record infections. China secured 100 million doses of the vaccine developed by Pfizer Inc. and BioNTech SE. In the U.K., almost 140,000 people have been vaccinated against Covid-19. Across the U.S., cases are surging. New York City’s mayor told residents to prepare for a shutdown of all but essential businesses soon after Christmas. California is stockpiling body bags, recruiting medical workers and considering whether to request a U.S. Navy hospital ship.

10. Saudis Stop Disclosing Oil Revenue Following Aramco’s Listing

Saudi Arabia has stopped disclosing projected revenue from oil following the listing of Aramco, as doing so could give clues about the state energy giant’s dividend plans. The kingdom is relying on payouts from Aramco, the world’s biggest oil company, to help plug its budget deficit and bolster an economy that’s been hammered this year by coronavirus lockdowns and the crash in crude prices. The Dhahran-based firm sold shares for the first time in December 2019, though the government still owns around 98% of them.

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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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Tech Giants may face 10% fine in EU – Top 10 Global News

1. Stocks, Futures Set Bullish Tone as Pound Rises

Stocks started off the week in a sea of green as investors took comfort from further stimulus bill negotiations and the impending deployment of the first vaccine in the U.S. S&P 500 futures gained about 0.7%, with the first deliveries of the Pfizer-BioNTech vaccine in the U.S. due to arrive Monday morning. A bipartisan group of lawmakers is set to unveil a $908 billion pandemic relief bill, although there is “no guarantee” Congress will pass it. European shares got a boost after the EU’s chief Brexit negotiator told a private meeting of ambassadors that a trade deal with the U.K. could come as soon as this week. The pound jumped by the most in almost two months.

Futures on the S&P 500 Index rose 0.7% as of early morning New York time.

The Stoxx Europe 600 Index jumped 0.8%.

The MSCI Asia Pacific Index increased 0.2%.

The MSCI Emerging Market Index decreased 0.1%.

2. Tech Firms Risk EU Fines Up to 10% of Sales in Bid to Curb Power

Tech giants deemed to be gatekeepers could face fines as high as 10% of annual revenue if they don’t comply with new European Union rules on data usage to be unveiled Tuesday. Companies that could include Google, Amazon.com and Apple will be banned from using any data from business users to compete with them or from treating their own services more favourably in rankings, among other obligations. A company that “systemically infringes” the obligations could face orders by the European Commission to make behavioural and structural changes, such as divesting businesses. Companies will be considered to be in systematic non-compliance if the EU has issued at least three fines within a period of five years.

3. Google Services Including Gmail, YouTube Suffer Major Outage

Services from Alphabet Inc.’s Google experienced widespread outages around the world, preventing people from accessing Gmail, YouTube and other products. Errors ranged from “something went wrong” on YouTube, to “there was an error. Please try again later,” when attempting to log into the company’s mail product from about 6:30 a.m. in New York. Google tools were failing to load for users in the U.S., the U.K. and across Europe, but began functioning again for many people after about an hour. Google confirmed there was an outage for the majority of its services according to a Workspace Status Dashboard, which monitors the health of its products. Later, it said functionality was restored to the “vast majority” of users.

4. Europe Hit With Tougher Virus Curbs Ahead of Vaccine Rollout

Europe is sharpening curbs on people and businesses to slow the rapid spread of the coronavirus, risking another knock to battered economies even with the rollout of a vaccine tantalizingly close. With months of pandemic fighting ahead, authorities are tightening measures without resorting to the strict curbs that triggered a collapse in business activity in the spring. Following record daily cases and deaths on Friday, Germany is urging, but not requiring, employers to close workplaces as it starts a hard lockdown on Wednesday. Italy and the Netherlands are among the countries expected to sharpen restrictions as well.

5. China Fines Alibaba, Tencent Unit Under Anti-Monopoly Laws

China’s antitrust watchdog fined Alibaba Group Holding and a Tencent Holdings unit over a pair of years-old acquisitions and said it’s reviewing an impending Tencent-led merger, signalling Beijing’s intention to tighten oversight of internet sector deals. The State Administration for Market Regulation said Monday it’s reviewing the combination of DouYu International Holdings Ltd. with Huya Inc., which could create a Chinese game streaming leader akin to Amazon’s Twitch. It fined Alibaba 500,000 yuan ($76,500) for failing to seek approval before increasing its stake in department store chain Intime Retail Group Co. to 73.79% in 2017, while China Literature Ltd., the e-books business spun off by Tencent, was also censured over a previous deal, according to a statement.

6. U.S. Government Agencies Hit by Suspected Russian Hackers

In one of the most audacious hacks in recent memory, U.S. government agencies were attacked as part of a global campaign that exploited a flaw in the software updates of a U.S. company. The hackers are suspected to be part of a notorious hacking group tied to the Russian government. The attack included breaches in the U.S. Treasury and Commerce departments and those of other government agencies in an attack that started months ago. The same hacking group is also believed to be behind the recent attack on the cyber-security firm FireEye Inc.

7. Barnier Tells EU Envoys Deal Could Come This Week: Brexit Update

The European Union’s chief negotiator, Michel Barnier, told a private meeting of ambassadors that a trade deal with the U.K. could be completed as soon as this week, but there are still significant differences to be bridged. The U.K. has made concessions on the level playing field and is now pushing the bloc to soften its demands on fisheries, Barnier told envoys from the EU’s 27 member states on Monday, according to two diplomats with knowledge of the meeting. A compromise on the latter subject could unlock the accord, Barnier said.

8. Rapid China Inflows Spur Call for Strongest Yuan Since 1993

The unrelenting pace of inflows heading for China’s bonds and stocks has one yuan bull predicting the currency could strengthen to a level not seen in nearly three decades. A “flood” of foreign cash will chase yuan-denominated assets in 2021 because they’ll offer far better yield than the rest of the world. He predicts the currency could rally 10% or even more by the end of next year. The yuan hasn’t been that strong since late 1993, just before China’s unification of official and market exchange rates triggered a plunge in the currency.

9. Dubai Business Conditions Worsen as Pandemic Weighs on Demand

Business activity in Dubai dropped for a second month in November as the coronavirus pandemic continued to weigh on demand. The non-oil private sector economy in the Middle East’s business hub deteriorated last month to the lowest since May. Its Purchasing Managers’ Index dipped to 49 from 49.9 in October, falling further below the 50 mark that separates growth from contraction. Employment figures continued to stabilize after having dipped to the lowest on record earlier this year and the pace of job losses was the mildest seen in nine months, though a possible lapse in demand could lead to another setback for employment in the short-term, the report said.

10. Adidas Plans to Sell Reebok by Early March 2021

Adidas has begun a review of whether to sell its Reebok brand, part of the development of the German sports company’s new five-year strategy. Adidas will announce a decision on March 10, when it presents its new plan, the company said Monday. The company acquired Reebok for $3.8 billion in 2006 and in recent years returned the division to profitability and growth. Adidas was exploring a sale and might start a strategic review in October. Private-equity firms Permira and Triton have looked at acquiring Reebok, though any plans are at an exploratory stage and may not ripen into an offer. Other interested parties include VF Corp., which owns the Timberland and North Face brands, as well as China’s Anta International Group Holdings.

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Hyundai buys Boston Dynamics – Top 10 Global News

1. Stocks Slump, Dollar Rebounds Amid Risk-Off Mood

Investors are winding up the week doing risk-off trades, with U.S. stimulus talks hung up and coronavirus developments weighing on sentiment. The dollar rose the most in a month. European stocks fell 1% as record virus deaths in Germany prompts discussion about whether to impose a hard lockdown over the holiday season. The pound slumped 1% as a key European official warned a no-deal split with the U.K. was the likeliest outcome by Dec. 31. U.S. equity futures sank in the wake of stimulus talks stalling over whether to shield companies from virus lawsuits. 

Futures on the S&P 500 Index dipped 0.7% as of early morning New York time.

Nasdaq 100 Index futures decreased 0.7%.

The Stoxx Europe 600 Index dipped 1.1%.

The MSCI Emerging Market Index advanced 0.1%.

2. Hyundai Motor Buys 80% of Robotics Firm Boston Dynamics

Hyundai Motor Group agreed to buy a controlling stake in Boston Dynamics in a deal that values the mobile robot firm at $1.1 billion. Hyundai Motor Group, along with some associated companies, will acquire an 80% interest in the U.S. robotics company from SoftBank Group, leaving the Japanese firm with a 20% share. South Korean conglomerate Hyundai Motor Group has been beefing up its research in robotics as it expands further into electric and autonomous vehicles. It is also exploring practical uses for industrial robots.

3. FDA Vows Fast Pfizer Vaccine Action Amid Political Pressure

The U.S. Food and Drug Administration said it’s working toward rapid emergency-use authorization of Pfizer Inc.’s Covid-19 vaccine that was backed Thursday by a panel of agency advisers. The drug regulator has “notified the U.S. Centers for Disease Control and Prevention and Operation Warp Speed, so they can execute their plans for timely vaccine distribution,” the FDA said Friday in a statement. The FDA statement comes as the agency is under tremendous political pressure from President Donald Trump and his administration to clear the vaccine, which has already been approved by the U.K. and Canada. Weary Americans are also eager for an end to a pandemic that has killed nearly 300,000 and dealt a crippling blow to the economy.

4. Sri Lanka Debt Concerns Mount After Downgrade Deeper Into Junk

Markets are showing mounting concern about Sri Lanka’s ability to manage debt loads, amid financial deterioration that sparked a downgrade deeper into junk Friday. Prices of the country’s dollar bonds show that while traders expect securities next year to be repaid, they’re increasingly uneasy about dwindling cash reserves for debt bills down the line. Notes due in 2021 are indicated at about 88 cents on the dollar. That’s a level that shows some misgivings yet not alarm. But securities maturing in 2023 are at about 66 cents, while it’s even worse for ones due 2030 at 57 cents.

5. Hong Kong Buys 15 Million Vaccine Doses From Pfizer, Sinovac

The Chinese company with the rights to market the Pfizer-BioNTech coronavirus vaccine in Hong Kong is preparing to seek approval of the shot soon after the U.S. clears it. Shanghai Fosun Pharmaceutical Group. is getting ready to submit paperwork to the drug regulator in Hong Kong for review as soon as next week. The development comes as Hong Kong on Friday announced it has struck deals for 15 million doses of shots from Pfizer-BioNTech and Chinese developer Sinovac Biotech Ltd., with the first vaccines to be received next month.

6. Sweden Explores Moving to a Digital Currency

Sweden’s government will start exploring the feasibility of having the country move to a digital currency, marking another step into the unknown for the world’s most cashless society. Sweden is among the first countries in the world to consider introducing a digital currency. Its central bank is already running a pilot project with Accenture to introduce an electronic krona based on the same blockchain technology that underpins digital currencies like Bitcoin. From the point of view of the government, Bolund said that “it’s crucial that the digitalized payments market functions safely, and that it’s available to everybody.”

7. Johnson and EU Warn of No Deal as Deadline Nears

Prime Minister Boris Johnson and European Commission President Ursula von der Leyen both warned that a no-deal Brexit is looming on Dec. 31 as they continued last-ditch talks to try to reach a deal before Sunday. Johnson said on Friday that a no-deal Brexit at the end of the year now looks “very, very likely.” His pleas for European Union leaders to step in and salvage the faltering negotiations were frustrated as summit talks overran on Thursday night, pushing Brexit to the fringes. On Friday, von der Leyen spent just 10 minutes briefing government leaders on the subject. Both sides have said they will continue discussions until Sunday, but officials concede that, without fresh political direction, the negotiating teams will have little to talk about.

8. Gold Declines as Investors Weigh Stimulus and U.S. Job Woes

Gold declined as the dollar strengthened amid weak risk sentiment while fading prospects for a U.S. stimulus deal and poor jobs data raised questions over the economic recovery. European stocks and U.S. equity futures fell as investors wound up the week with risk-off trades, amid a worsening of the coronavirus pandemic. German cases and deaths rose the most since the outbreak began, while Indonesia reported record deaths. The dollar strengthened the most in almost two weeks, putting pressure on gold. U.S. efforts to draw up a coronavirus relief package hit another roadblock as Senate Majority Leader Mitch McConnell’s top lieutenants said key portions of a compromise proposal aren’t likely to get backing from most Republicans. Meanwhile, applications for U.S. unemployment benefits surged last week, topping estimates with the highest level since September, casting a shadow over the strength of the recovery.

9. Malaysia’s Ringgit Erases Covid-19 Losses to Rise to Strongest Since 2018

Malaysia’s ringgit climbed to the strongest since July 2018, erasing its virus-fueled losses for the year. The currency rose as much as 0.3%. The gains came amid weakness in the greenback and a recent advance in crude prices. The ringgit has climbed with Asian peers this quarter as the dollar weakened and risk assets were boosted by Covid-19 vaccine developments. An easing of domestic political tension also helped, after Prime Minister Muhyiddin Yassin survived a key test to his leadership.

10. Aramco Hires Moelis to Raise Billions From Asset Sales

Saudi Arabia is looking to emulate neighbouring Abu Dhabi by using its state energy firm to raise billions of dollars from investors, as the kingdom seeks cash to counter a severe recession. Saudi Aramco, the world’s biggest oil company, has hired Moelis & Co. to devise a strategy for selling stakes in some subsidiaries. The plan includes raising around $10 billion from a stake sale in Aramco’s pipelines, said the people, who asked not to be identified because the matter is private. Saudi Arabia has been hammered this year by coronavirus lockdowns and the slump in crude prices. The economy will contract 5.4% in 2020, the most since the 1980s, according to the International Monetary Fund. The budget deficit could widen to 12% of gross domestic product.

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Market News Top 10 News Top Global News

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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Market News Top 10 News Top Global News

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

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

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

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

Nasdaq 100 Index futures sank 0.1%.

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

The MSCI Asia Pacific Index gained 0.8%.

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

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

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

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

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

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

5. Tesla Shares Are Dramatically Overvalued : JPMorgan

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

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

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

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

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

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

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

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

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

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

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