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.