Tag: new strain covid-19

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Bitcoin Crashes as Crazy Rally Ends – Top 10 Global News

1. Stocks Climb Toward Record While Bonds Decline

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

The Stoxx Europe 600 Index surged 1.3%.

The MSCI Asia Pacific Index climbed 0.8%.

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

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

3. Tesla Poised for Expansion After Just Missing 2020 Target

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

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

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

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

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

6. Hong Kong Extends School Closures Until Lunar New Year

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

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

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

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

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

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

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

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

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

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Market News Top 10 News Top Global News

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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Editorial

The New Strain of Covid-19: Explained

As we are aware, stock markets around the world saw a major crash on December 21 (Monday). After witnessing a very impressive bull run over the past few weeks, the Nifty50 Index fell by 432.15 points (or 3.14%) on a single day! The major reason behind such an absolute bloodbath in the markets has been linked to the emergence of a new coronavirus strain in the United Kingdom. People all around the world have entered into a panic mode. Certain governments have also banned international flights to limit the spread of the virus. It has turned out to be a major cause of concern for all of us. 

Let us understand the specific details surrounding the new Covid-19 strain, and find out what experts have stated about it. 

Important Facts on the New Strain of Covid-19

Viruses keep mutating and changing their behaviour as time passes. Here are specific details regarding the new variant/strain of coronavirus that poses a threat:

  • The United Kingdom has identified a fast-moving new variant of the coronavirus, which is more than 70% more transmissible than existing strains. It has been termed as “B.1.1.7”. Three major factors are causing concern over the new variant:
    1. The new strain is said to spread faster than the other versions and is 70% more infectious.
    2. It is the most common version of the virus in the UK. It is also rapidly replacing other versions of the virus.
    3. There have been changes to the spike protein of the virus, which plays a key role in unlocking the doorway to the body’s cells.
  • The new Covid-19 variant is believed to have been first detected in September. By November, around a quarter of cases in London were of the new variant. And, by mid-December, nearly two-thirds of cases in London were of the new virus. Over the last week, the number of cases in London doubled, with at least 60% of the infections being from this strain.
  • This new strain was identified by the COVID-19 Genomics UK (COG-UK) consortium. It is a partnership of the UK’s four public health agencies, as well as the Wellcome Sanger Institute and 12 academic institutions. The group undertakes random genetic sequencing of positive coronavirus samples around the UK.
  • The most likely explanation is that the variant has emerged in a patient with a weakened immune system that was unable to beat the virus. Instead, their body became a breeding ground for the virus to mutate.
  • There is no proper evidence that suggests that this new strain or variant is more dangerous. However, the increase in the rate of transmission means more people could get infected than before. This leads to an added burden on an already strained healthcare system. 
  • It has been found that this new strain has been spread from the UK to Denmark, Netherlands, Australia, and even India.
  • It has been found that vaccines produce antibodies against many regions in the spike protein. Spike proteins are what allows the coronavirus to enter into human cells. So, it is unlikely that this change would make the approved Covid-19 vaccine less effective.

“With this variant, there is no evidence that it will evade the vaccination or a human immune response. But if there is an instance of vaccine failure or reinfection then that case should be treated as high priority for genetic sequencing.” – Sharon Peacock, Director of COG-UK. 

What is happening in UK?

On December 20 (Sunday), the UK alerted the World Health Organisation (WHO) and stated that the new Covid-19 variant appears to be accelerating the spread of Covid-19. While UK Prime Minister Boris Johnson announced Tier-4 restrictions for London and Southern England, several countries like Italy and Belgium have suspended incoming travel from Britain. Under the Tier-4 restrictions, mixing of households will not be allowed- except under very limited conditions outside in public places. Travel in and out of Tier 4 areas won’t be allowed unless it is an emergency.

The following graph shows the spike in Covid-19 cases in the United Kingdom (as of December 21):

Source: The New York Times

International Developments

On December 21, the Kingdom of Saudi Arabia has halted all international flights for a week and has taken several precautions against the new Covid-19 strain. Countries such as Poland, Germany, France, Ireland, Canada, and around 15 others have also suspended all flights from the UK. India has also taken a proactive step and has banned all flights from the UK till December 31.

On the same day, the German Health Minister, Jens Spahn, stated that the vaccines are effective against the new coronavirus strain. This is very promising news indeed. 

We also received another shocking update on December 22. Five out of 266 passengers and crew members of a flight which arrived at Delhi from London have tested positive for Covid-19. Experts also believe that the new variant of coronavirus is already spreading across India. 

Conclusion

The news related to vaccine approvals had lifted our spirits, and in turn, the stock markets. The United States and UK governments have already launched a massive vaccination drive in their respective countries. Despite such positive news, the number of coronavirus cases is surging all around the world. The second wave of Covid-19 is surely upon us, and countries are gearing up to make sure that the situation is contained. Moderna and Pfizer-BioNTech are confident about tackling this new strain. The general global sentiment has returned to the confidence that we can beat the pandemic.

Keeping the markets aside, the new variant of Covid-19 poses a threat to all of humanity. India has the second-highest infection count in the world. This is the time to prepare ourselves for the worst-case scenario. As the Christmas season is upon us, we need to refrain from moving around and stop the spread of the virus. Will this lead to a huge surge in global cases and stress the healthcare sectors? Will India and other countries return to strict lockdowns? We will have to patiently wait and watch.