U.S Markets Fall with Economic Data and Profit Booking

Stocks fell from their record highs with economic data and shutdowns causing concerns for investors.

The S&P 500 is in the red after a five-day rally, mostly fueled by tech shares. Home Depot fell on weaker-than-expected results, while Walmart moved up. Production numbers at U.S. factories strengthened by the most in four months.

Stoxx Europe is up by 0.021%

Dow Jones is up by 0.77%

NASDAQ is down by 0.66%

Walmart Reports Strong US Sales, Beats Estimates

American retail corporation Walmart on Tuesday reported solid sales in the US with a 2.4% increase in total revenue to $141 billion in the second quarter compared to last year. U.S store sales rose 5.2% against the 9.3% growth in the June quarter of 2020, but better than the estimated growth of 3.69%. Profits are 34% down to $4.3 billion compared to the Q2 of last year.

U.S Reports Weak Retail Sales In July

The U.S Commerce Department said on Tuesday the retail sales are down by 1.1% in July compared to June, led by a 0.4% drop in auto sector sales. Restaurants and bars reported good numbers with a 1.7% rise in sales. One of the reasons behind this is, people shifted the spending of money from goods to services like entertainment and travel.   

Germany  Stops Development Aid For Afghanistan

German Development Minister Gerd Mueller said on Tuesday the country has temporarily halted the development aid for Afghanistan. The minister also said the government is trying to evacuate local development officials and NGO workers from Afghanistan. Germany is one of the biggest donors to the country, sending 430 million euros (Rs 3,762 crores) a year.

NewZealand Announces Three-Day Nationwide Lockdown

New Zealand Prime Minister Jacinda Ardern announced a three-day nationwide lockdown after one new case of the Coronavirus was reported in its largest city of Auckland. This is the first case since February 2021 and the lockdown will start from midnight tonight. The country’s go-hard-and-early strategy was highly helpful in defending the Covid pandemic.

UK Approves Moderna Covid Vaccine For 12-17-Year-Olds

The UK health regulator on Tuesday approved the use of Moderna’s Covid-19 vaccine in children aged 12 to 17 years. The regulator has already approved the use of Pfizer and German partner BioNTech’s Covid-19 vaccine in children aged 12 to 15. At the time of writing the stock is more than 6% up in NASDAQ.

Chinese Stocks in the U.S. fall after Fresh Regulations

Chinese stocks listed in the U.S. are facing the next round of selling pressure with authorities in Beijing once again putting pressure on these companies. 

The index tracking Chinese stocks in NASDAQ fell more than 4.5% today after the Chinese Administration for Market Regulation issued new rules aimed at preventing unfair online competition. 

Saudi Aramco is in advanced talks for $25 Billion Reliance Deal

Saudi Aramco is said to be in advanced talks to acquire a stake in Reliance’s oil refining and chemicals business. The Saudi Arabian state firm is looking to purchase a 20% stake in the Reliance unit for about $25 Billion(~Rs 1.85 lakh crores) by exchanging the same amount worth of Aramco shares.

U.S. Markets start the week in red; Bonds Move Up

Equities around the world, including in the U.S. moved down with fresh economic data and the fast spread of the delta variant caused concern that the economies are not keeping up with the market rally. Treasury bonds climbed.

Markets were at their all-time highs on Friday, and this could be a small correction move. China’s economy showed lower than expected growth.

Stoxx Europe is down 0.60%

Dow Jones is down by 0.23%

NASDAQ is down by 0.86%

HSBC Holdings Agree To Acquire Axa’s Singapore Assets For $575 Million

British investment bank HSBC Holdings has agreed to acquire French insurer Axa’s Singapore assets for $575 million(Rs 4,265 crores). This is a part of the company’s plan to scale up its wealth-management business in Asia to raise fee income. HSBC expects the combined unit would be the seventh-largest life insurer and the fourth-largest retail health insurer in Singapore.

Will Need $30 Billion More To Fight Covid: Thailand Central Bank Governor 

Bank Of Thailand’s governor said an additional $30 billion(Rs 2,22,570 crores) in government spending will be required to counteract the effect of the Covid pandemic. The governor also said the current economic hit from the pandemic is greater than from the Asian financial crisis in 1997 and the government can fund additional spending by borrowing more.

Hong Kong Tightens Travel Curbs For Residents Returning From 16 Countries

According to the latest reports, Hong Kong has tightened its travel curbs for residents returning from 16 countries and the list includes the U.S., France, and Spain. The new restrictions will take effect starting August 20 and this change is just two months after the country started easing quarantine measures. The reversal is due to the rise in Covid Delta cases in major countries. 

Singapore Property Market Rises Again 

Singapore property market rises up as home sales rebound after the easing of Covid restrictions. According to the data from Urban Redevelopment Authority, purchases of new private units rocketed 82% to 1,589 in July against 872 units in June. This is the second-highest purchase compared to 1633 in January. 

Malaysian PM Muhyiddin Yassin Resigns

Malaysian Prime Minister Muhyiddin Yassin and his cabinet resigned after they failed to get majority support. Muhyiddin has been in power for more than 17 months and resigned as the shortest-ruling leader. He will continue as caretaker PM until a successor is found.

Oil Falls and Recovers  after China Economic Data

Crude oil prices in the U.S moved down for the 3rd straight day after Chinese economic data showed the economic recovery in the country was slowing down. Concerns of fall in global demand for crude pulled down the commodity.

West Texas Intermediate(WTI) Crude futures in New York were down 3.5% at one point but now have gained back. $65/barrel looks like a good support for the commodity which is now trading at $67.70/barrel.

Biden to speak on the Afghan Situation Today

U.S. President Joe Biden will return to the White House from the President’s vacation house at Camp David on Monday. He is expected to address his nation about the crisis in Afghanistan, where Taliban terrorists took hold of the capital of Kabul.

Biden will speak soon from the White House, where just 5 days ago he said he did not regret his decision to withdraw U.S. troops from the country. Disturbing footage of civilians running for cover as the final U.S. military aircraft left the country have been shaking countries around the world. Markets do not like instability, let us see if we may see a reaction.

U.S. Markets Move Down; Cool off from Highs

U.S. stocks consolidated near all-time highs and after another bullish week for the global markets. A fall in consumer sentiment was seen in the U.S. showing that slowing economic growth may be seen in the coming months.

The S&P 500 set another intraday record high in a market still rallying on the back of liquidity. The European markets are also at fresh highs.

Stoxx Europe is up 0.22%

Dow Jones is up by 0.11%

NASDAQ is up by 0.015%

US Grants Covid Vaccine Booster For People With A Weakened Immune System

The US government has decided to give an extra dose of the Covid vaccine to people with weakened immune systems. USFDA (United States  Food and Drug Administration) regulator has granted the emergency use authorization for a third injection of Pfizer-BioNTech and Moderna vaccines as Covid Delta cases rise.

China Rejects WHO’s Call For A Probe Into Covid Origin

China on Friday rejected the WHO’s(World Health Organization) call for a renewed probe looking into the origins of Covid-19. Covid was first reported in Wuhan city of China and on Thursday the WHO asked China to share raw data of the earliest Covid-19 cases. China is under a lot of pressure due to the investigations on Covid origin that took the lives of millions.

Taiwan Upgrades Its Growth Outlook

Taiwan’s statistics office said on Friday the country will grow faster than expected and will be powered by exports. Gross domestic product (GDP) is expected to jump 5.88% this year, which will be the fastest in a decade. The previous growth forecast was 5.46% made in June. The exports in 2021 would rise 28.15% compared with last year, versus a previous prediction of 20.4%.

China’s Port Shutdown Brings Fears Among Other Ports

The latest shutdown at the Ningbo-Zhoushan port in China is bringing fear among major ports. The Port of Los Angeles is expecting a huge volume fall in the coming days because of the latest shutdown and will be similar to the fall that happened earlier due to the Covid outbreak at the Yantian port in China during June 2021.

Hong Kong Home Prices Break Levels Set Two Years Ago

According to the Centaline Property Agency, the resale house value in Hong Kong rose 0.65% for the week ended August 8. This is majorly due to supply shortage and low-interest rates and prices are expected to keep rising. The value of the residential property has increased 8.6% since the beginning of the year.

Baring PE Looking for $1 Billion Buyout of Straive

Private Equity firm Baring who just completed a $1.2 Billion buyout of Hinduja Group’s healthcare arm has its eyes on another company now. Straive, earlier known as SPi Global, is a content outsourcing company owned by Swiss buyout firm Partners Group.

Baring is looking to pay around $1 Billion(Rs 7,400 crores) for the Straive, which was bought by Partners Group for $300 Million(~Rs 2,220 crores) in 2017.

Hong Kong sees Economic Growth as Spending Recovers

Hong Kong has raised its economic growth predictions for 2021, with Gross Domestic Product(GDP) expected to grow at 5.5% to 6.5% this year.

This is higher than earlier estimates, and has been boosted by ‘consumption vouchers’ being distributed by the state worth HK$5,000 (~Rs 48,000) to boost spending. to encourage spending. This programme is expected to cost Hong Kong about HK$36 Billion(~Rs 34,000 crores) and give a 0.7% increase to this year’s GDP.

U.S. Markets Move Down; Cool off from Highs

Equity markets in the U.S. moved down after 3-days of green. The markets are cooling down after touching all-time highs yesterday.

Energy and commodity based sectors moved down after a bullish first three days of the week.

Stoxx Europe is up 0.10%

Dow Jones is down by 0.29%

NASDAQ is up by 0.11%

DoorDash Looking To Buy Instacart For $40-50 Billion

US food delivery company DoorDash is planning to buy grocery delivery firm Instacart in a deal pricing between $40 billion and $50 billion(RS 2.9 lakh crores-3.7 lakh crore). Instacart is preparing to get listed through an IPO in the coming weeks and the company had also separately started talks with Uber Technologies about a sales partnership.

New Zealand To Reopen Borders From Early 2022

New Zealand government said on Thursday the country is planning to cautiously reopen its borders to international travelers from the start of 2022. The government will delay the second vaccine shots in order to boost the first shots to reach more people as global Delta cases rise.

Evergrande May Get More Time To Repay Maturing Loans

Latest reports say China Evergrande Group may get more time from three major creditors- China Minsheng Banking Corp, China Zheshang Bank, and Shanghai Pudong Development Bank to repay maturing loans. Zheshang Bank had given time till 2021 end for the repayment of two loans due in July and August. The other creditors didn’t comment on the reports.

Impossible To Control Covid Spread: Tokyo Advisory Panel

Covid advisory panel of the Tokyo Metropolitan Government said on Thursday it has become impossible to control Covid spread in the capital. The government is considering extending the state of emergency in Tokyo which is currently set to be lifted at the end of August.

Baidu Quarterly Results Beat Estimates

Chinese search giant Baidu reported total revenue of 31.35 billion yuan (Rs 35,927 crores)in the second quarter ended June 30 against analysts’ average estimate of 30.96 billion yuan(Rs 35,480 crores). The results were boosted by higher ad sales, AI demand, and the company spent about 15.9 billion yuan(Rs 18,221 crores) in the quarter to ramp up its products. 

China Forces Smart Car Makers to store data locally

The world’s second largest economy, China, is looking to force smart-car manufacturers to store locally generated data in the country’s local servers. 

Government bodies will need to approve all data exports and even software updates being pushed, in a bid to limit data collected by carmakers including Tesla.

India Set to Clear Boeing 737 Max to Fly Again Within Days

India is set to allow Boeing Co.’s 737 Max jets to resume flights in the country within days, according to a person familiar with the matter, clearing one of the last remaining hurdles for the U.S. planemaker as it seeks to get the model flying again worldwide.

Oil Supertankers in Doldrums With Bunker-Fuel Costs High

The summer doldrums are here for oil supertankers. Freight rates on the benchmark route from the Middle East to Asia have slipped to their lowest levels since March, meaning lower earnings for those vessels, Baltic Exchange data show. At the same time, ship-fuel costs have jumped.

U.S. Markets Move up; Consumer Price Inflation Out

U.S. stocks moved up in the day with data showing that consumer price inflation increased only at a lower pace for July. The S&P 500 moved up to fresh all-time highs, showing CPI rose 0.5% in July, lower than the 0.9% in June.

Crude oil moved from gain to loss after a report that the U.S. will ask OPEC+ to increase production of the commodity back up fast.

Stoxx Europe is up 0.46%

Dow Jones is up by 0.52%

NASDAQ is down by 0.031%

Sputnik V Shows 83% Efficiency Against Delta Variant

Russia Health Minister Mikhail Murashko said on Wednesday Sputnik V is showing 83% effectiveness against the Covid Delta variant. In June the vaccine’s developers had said that Sputnik V was around 90% effective against the Delta variant. Currently, the vaccine is considered safe and effective against all strains of the coronavirus.

Dubai Airport Expects 56 Million Passengers In 2022

The CEO of Dubai International airport said on Wednesday, it is expecting to have 5.6 crore passengers in 2022 which is double the forecast for the year 2021. The airport handled 1 crore passengers in the first half of 2021 and it is very less compared to 2.95 crore passengers last year and 8.64 crores in 2019.

U.S Senate Approves $3.5 Trillion Budget Blueprint

The U.S. Senate on Wednesday approved a $3.5 trillion

(Rs 259 lakh crore) the budget blueprint which will be spending for investments in health, education, and dealing with climatic changes. In detail, the budget targets funding for climate measures, new investments in infrastructure, residency status for millions of migrant workers, and two years of paid tuition at public universities.

U.S. July CPI Rises In A Slower Rate

According to the U.S Labor Department, July Consumer Price Index(CPI), which indicates the prices paid by U.S consumers increased 0.5% against the 0.9% rise in June. Excluding the volatile food and energy components, that is the core CPI rose 4.3% on a year-on-year basis after increasing 4.5% in June.

Ford-SK Innovation Battery JV Will Extend To Europe

The Electric Vehicle battery joint venture formed by Ford Motors and South Korea’s SK Innovation has decided to extend beyond North America into Europe. The joint venture was formed in May to produce about 60 gigawatt-hours (GWh) annually in battery cells and array modules. The timing for when the joint venture would open a plant in Europe is currently not available.

Oil Falls after U.S. Calls on OPEC to Increase Production

Crude Oil futures dropped suddenly after the U.S. asked OPEC+ alliance to increase back production more quickly. As we know, higher supply usually means the prices move down.

Futures of West Texas Intermediate fell 2.4% in New York after the country’s National Security Adviser Jake Sullivan commented that OPEC’s current plans to boost oil output weren’t sufficient. You can read more about OPEC+ here.

Crypto Firm’s Value Jumps 5x in 5 months to $3.75 Billion

FalconX, a cryptocurrency trading platform led by Indian CEO Raghu Yarlagadda, has jumped its valuation in five months to $3.75 Billion(~Rs 27,750 crores). According to him, the company which has been profitable for a year, saw a revenue growth of 30x in the last year.

The California-based company raised $210 Million(~Rs 1,500 crores) in a funding round led by Altimeter, Sapphire Ventures and Tiger Global.

U.S. Markets Fall after Concerns on Stimulus Slowing

U.S. stocks moved up and the European stock index hit record highs while European stocks touched record highs after strong earnings reports. Investors are waiting for comments from the Federal Reserve officials on scaling back stimulus measures.

Yesterday’s losers, Energy and material shares pushed the S&P 500 up in to the green. Meme stock AMC Entertainment moved up after the theater chain’s second-quarter results beat estimates. Tech focussed NASDAQ 100 dropped.

Stoxx Europe is up 0.40%

Dow Jones is up by 0.32%

NASDAQ is down by 0.53%

Etihad Airways Reports Operating Losses For H2 of 2021 At $400 million 

UAE’s Etihad Airways said on Tuesday it had narrowed the operating loss to $400 million(Rs 2,975 crores) in the first half of the year 2021, achieved by reducing capacity and cutting costs. They had cut operational costs by 27%  to $1.4 billion(Rs 10,413 crores) compared to last year.

China Telecom Looking At $8.4 Billion Shanghai IPO

China Telecom is planning to raise  $8.4 billion(Rs 62,481 crores) through Shanghai Initial Public Offering(IPO) which is expected to be the biggest IPO of 2021. The company was delisted along with other telecom firms by the New York Stock Exchange in January 2021. The company has priced its offer at 4.53 yuan per share.

Singapore Hits 70% Full Vaccination

Singapore said on Tuesday, it has fully vaccinated 70% of its population, and nearly 79% of people have received at least one dose. The country has set a target of vaccinating 80% of its population by early September and more ease of restrictions will be announced soon. Health Minister Ong Ye Kung said Singapore will also be able to offer vaccinations to short-term visa holders who have been living in the country.

Heliene To Open Its Second U.S. Solar Panel Factory

Canada’s solar panel maker Heliene said on Tuesday it has decided to open its second U.S. factory next month. The new factory in Florida will produce a new product targeting the booming residential market. The new factory of 75,000 square feet area will employ 60 workers and will have a manufacturing capacity of 100 megawatts.

Crude Oil Bounces Back; Regains 6%

Crude Oil Futures in New York bounced back up from yesterday’s fall. In trading hours, the contract was up nearly 6% on Tuesday from yesterday’s lows. Crude had fallen yesterday after the world’s largest energy company, Saudi Aramco, posted huge profits along with bumper dividends.

The equity markets in the U.S and Europe moving back up would have given the commodity some confidence.

Qatar Bank asks African Country to Pay $300 Million

Middle-East’s largest lender, Qatar National Bank, has requested a U.S. court to order African country Eritrea to pay back nearly $300 million(~Rs 2,240 crores) of debt. Eritrea had ignored a U.K judge’s order to pay the bank its loans back in 2018 after borrowing $200 million(~Rs 1,480 crores) in 2010. The bank claims Afwerki’s government reneged on the debt in May 2012 after repaying about $45 million.

China’s Evergrande Looking to Sell EV and Property Services

China’s second largest property developer Evergrande is looking to sell off its EV business to raise funds and pay off debts. The EV arm, China Evergrande New Energy Vehicle Group Ltd is part of the fundraising round. Evergrande had acquired 20% of shares in Swedish hypercar maker Koenigsegg, and 51% of shares in National Electric Vehicle Sweden for US$930M and many other European car companies in 2019.

The company is a small part of the global revolution in hypercars and Electric consumer cars with its brands Koenigsegg and NEVS. Buyers are currently unknown.

China-Made Tesla Car Shipments Falls In July

The shipments of China-made Tesla cars to the local market fell sharply by 69% to 8,621 units in July compared to the previous month. This is majorly caused by negative publicity and the recall of a large number of vehicles the company has sold in the country. Tesla stock in NASDAQ fell more than 1.6% in the opening itself and is now trying to cut the losses.

U.S. Markets Fall after Concerns on Stimulus Slowing

Stocks in the U.S. markets moved lower mixed with the major indices slightly down.Commodity prices including that of Gold and Oil also fell with investors concerned about the Delta variant of Covid-19 spreading strongly across the world.

In S&P 500, energy and industrial shares fell the most. The NASDAQ 100 consolidated as tech stocks moved sideways.

Stoxx Europe is up 0.083%

Dow Jones is up by 0.30%
NASDAQ is up 0.01%

UN Climate Change Report Says, It’s Code Red For Humanity And It Will Get Worse

 UN climate change report says that the world will cross the 1.5 degrees Celsius warming mark in the 2030s, earlier than some past predictions. The report co-author Linda Mearns, a senior climate scientist said it’s sure that it’s going to get worse. This is a serious concern and in about a decade the temperature will reach a level of warming that world leaders have sought to prevent.

Saudi Arabia Grows For The First Time Since The Covid Pandemic

 As per the Government data, Saudi Arabia reported economic growth of 1.5% for the second quarter compared to last year. The seasonally-adjusted real gross domestic product grew 1.1% in the second quarter from the first quarter. The growth is majorly powered by a 10.1% growth in the non-oil sector.

Tesla Rises After Jefferies Upgraded The Target To $850

American financial services company, Jefferies upgraded the target of Tesla at $850 after setting a ‘buy’ status on the stock. The stock was earlier rated as ‘neutral’ by the brokerage and the new target price is 21.6% above Friday close of $699.10. At the time of writing the stock is trading nearly 2% up.

China Punishes 30 Officials For Covid Delta Spread

China has punished 30 officials for the Covid-19 outbreak that resulted in nearly 900 cases across the country in less than a month. The list includes mayors, local health directors, heads of hospitals and airports, etc.  Nanjing in China is considered as the biggest hotspot of Delta variant in the country with 308 confirmed cases reported as of Monday

Uber Falls After The Plan To Raise $1.5 Billion Debt

Uber in NYSE fell 2% just after Monday’s opening as the company decided to raise $1.5 billion(Rs 11140 crores) in debt via an issue of senior notes due 2029. At the end of June Uber had long-term debt of $7.79 billion (Rs 57,858 crores).

Crude Oil Falls to 11-week low on Covid Fears

Oil prices fell to an 11-week low, in the commodities worst week since October, with fears that new waves of Covid-19 will threaten fuel demand.

Futures of West Texas Intermediate fell below $66/barrel in New York. Prices are down more than 15% from July’s high. This also comes just when major oil companies are announcing record profits. Goldman Sachs downgraded China’s economic growth forecast after the Delta virus breakout in the country.

Saudi Aramco Posts Bumper Profits on Higher Oil Prices

Saudi Aramco, the world’s biggest energy company posted a net income of 95.5 Billion riyals(~Rs 1.88 lakh crore) in April-June quarter, its highest level since the end of 2018. Free cash flow(FCF) for the company rose to $22.6 billion(~Rs 1.67 lakh crores).

The company also declared its first quarterly dividend since the pandemic started of $18.8 billion(~Rs 1.39 lakh crore). The announcement coincided with a drop in crude oil prices.

U.S. Markets Consolidate after Jobs Report

Stocks in the U.S. markets remained mixed with the S&P 500 sideways and NASDAQ 100 lower. The U.S. job report showed growth increased in July and the unemployment rate fell.

While earnings reports from top companies have kept the market volatile, all indices in the U.S market are near all-time highs. Similarly, all global markets including ours are consolidating in the day.

Stoxx Europe is up 0.02%

Dow Jones is up by 0.34%
NASDAQ is down by 0.50%

Questions Arise As Google Founder Gets New Zealand Residency

Last Friday, reports confirmed that Google co-founder Larry Page has gained New Zealand residency. He first applied for residency in November under a special visa open to people with at least 10 million New Zealand dollars (~Rs 52 crore) to invest. Now, many people are asking whether highly wealthy people can get residency in the country. Anyway, this would not affect his residency status in the US or any other nation.

The U.S. Opens Investigation Into Mercedes Vans On ’After Parking’ Issues

The American National Highway Traffic Safety Administration has opened a preliminary investigation into Mercedes vans used for Amazon deliveries and ambulances. This is based on the reports of some 2019 Mercedes-Benz vans configured for use as Amazon delivery vehicles or ambulances showed some ‘after parking issues’. The reports say that the vans roll away shortly after being shifted to park using the Auto-P function. Daimler and Amazon did not immediately comment on this.

Restrictions Fail To Curb Covid Cases In  Australia

Australia’s largest city Sydney reported a record 279 Covid-19 over the past 24 hours, up from the previous high of 259 the day before. New South Wales reported 291 cases, up from 262. Govt is expecting a surge in Covid cases in the coming days as the current restrictions are not enough to control the spread. 

United Airlines Asks U.S Employees To Have Compulsory  Covid Vaccination

American airline- United Airlines have asked all its domestic employees to have compulsory vaccination against Covid-19, the first U.S. airline to do so. The company said the action is taken due to the spread of Delta Covid cases and the U.S employed should be vaccinated by any of the three vaccines approved by the U.S drug regulators, Pfizer, Moderna, or J&J.

Morrisons Agrees To A Takeover Offer From Fortress Led Group

British supermarket group Morrisons said on Friday it has agreed to an improved takeover offer of 6.7 billion pounds (Rs 68,953 crores) in cash from a consortium led by Fortress Investment Group. This is a better offer compared to the previous offer of 6.3 billion pounds(Rs 64,836 crores) by the same group. But the major Morrisons investors Silchester, M&G, and JO Hambro consider the offer as very low.

Japan’s Pension Fund Posts Another Quarterly Profits

Japan’s Government Pension Investment Fund(GPIF) has posted a quarterly gain for the fifth straight quarter as its profits from international markets offset losses in domestic stocks.

GPIF is the world’s biggest pension fund and returned 2.7% profits for investors, with assets under management reaching to a record 191.6 trillion yen(~Rs 132 lakh crores), it announced on Friday. For context, India’s Real Gross Domestic Product (GDP) in the year 2020-21 was estimated to be Rs 135.13 lakh crore.

U.S. Markets Trying to Move to Green; ADP Jobs Data Out

Stocks in the U.S. market rose along with other global markets on the day. Investors are deciding between corporate results and threats of the virus to economic recovery.

S&P 500 and Nasdaq gained with quarterly results from today giving the markets initial push. Gold cooled down after moving up yesterday.

Stoxx Europe is up 0.32%

Dow Jones is down by 0.44%
NASDAQ is up by 0.43%

We May See 200 Million Covid Cases Globally By Next Week: WHO

World Health Organization said on Thursday the dangerous Covid Delta variant has now been reported in 135 countries and the total global Covid cases could exceed 200 million by next week. Four million cases were reported in the past week ended August 1 but during the period deaths decreased by 8% as compared to the previous week.

Moderna Vaccine Shows 93% Effective 4-6 Months After The Second Dose

 American pharmaceutical company Moderna said on Thursday its Covid vaccine shows 93% effective four to six months after the second dose. This is in line with the 94% efficacy reported in its original clinical trial and a better result as Pfizer Inc and BioNTech vaccine’s efficacy fades 6% every two months, declining to around 84% six months after the second shot

ByteDance To Layoff Employees In Its Education Business

ByteDance has decided to lay off staff including teachers, sales and advertising employees in the educational business. The decision was taken after China started imposing regulations on the private tutoring sector. The company is also planning to shut down its curriculum-focused preschool and K12 tutoring businesses in China

Biden Aiming For 50% EVs By 2030

The White House said the U.S. President Joe Biden will sign an order on Thursday targetting at 50% of all new vehicles sold in 2030 to be Electric Vehicles. He will also propose rules to cut pollution through 2026. Major automakers are in favor of the decision, expecting huge funding from the government side.

US jobless claims drop by 14,000 in last week

The U.S Labor Department reported on Thursday the number of Americans applying for unemployment benefits fell last week by 14,000 to 385,000. The fall is a clear indication of economic recovery and at the time of writing major U.S Market indices are trading in the green. This is a great improvement compared to January 2021, when the claims were around 900,000.

Qualcomm Bids Rs 34,000 crores for Tech Company

Chipmaking giant Qualcomm has offered to takeover automotive technology company Veoneer Inc for $4.6 Billion(~Rs 34,000 crore). 

The counter bid was placed against Canadian company, Magna, who offered $3.8 billion(~28,000 crores) for Veoneer. The offer paid by Qualcomm is 18% higher than the Magna bid.

Europe Facing High Energy Bills; Inflation Moving Up

Just like citizens of many other countries, Europeans are also feeling the pain of high energy bills. The cost of natural gas and electricity has shot up across Europe, threatening small businesses as they open up after lockdowns. 

In Germany, power prices have gone up by 60% this year. Natural gas prices and energy prices in India may also jump up as our economy also opens up and energy demand shoots up. Keep a watch on energy prices and energy stocks.

U.S. Markets Trying to Move to Green; ADP Jobs Data Out

U.S. equities lost momentum and stayed flat in the early hours of trade with mixed emotions on corporate results. ADP Jobs data report, which came out today, has also shown that lesser than expected jobs were added by American companies last month.

Treasury yields moved down while gold prices moved up., gold surged, and the dollar was weaker against major peers. Shares of General Motors fell more than 7% with lower sales due to chip shortage. 

Stoxx Europe is up 0.53%

Dow Jones is down by 0.74%
NASDAQ is up by 0.073%

GM Results Fall as Chip Shortage Continues; Stock Tanks

General Motors, one of the ‘Big Three’ Automakers in the USA, has posted results that missed analysts’ expectations of profit numbers.

The company blamed semiconductor shortages along with recalls of its Chevrolet Bolt EV due to fires for the fall in profit. However, the auto-giant has raised its expectations of profit for the year 2021, as margins have increased with high prices due to an increase in supply and a decrease in demand.

Shares of General Motors are down more than 7.5% today. Nifty Auto was also down nearly 1% in the day. 

Brazil Sugar Production To Fall Due To Bad Winter

The largest sugar producer and exporter of the world-Brazil will face a huge fall in sugar production in the coming months due to bad winter and as frost events hit crops in the country’s center-south region in June and July. Broker StoneX cut its projection for Brazil’s sugar production to 34.6 million tonnes from the previous estimate of 35.7 million tonnes.

Saudi Arabia Hikes Sept Crude Selling Prices For Asia

State Oil Producer Aramco said on Wednesday Saudi Arabia has hiked the September official selling prices (OSPs) for the Arab light crude to $3 a barrel above the Oman/Dubai average for Asia. Fo the United States this is at a premium of $1.35 a barrel over the Argus Sour Crude Index (ASCI).

U.S. July Private Payrolls Growth Falls Below Estimates

U.S National Employment Report shows that Private payrolls increased by 330,000 jobs against the expectations of an increase of 695,000 jobs. Though half of America has been vaccinated, the surge in new cases is pulling back the people from going outside. A record 9.2 million job openings are reported in the U.S, but employers say that they are failing to find willing workers that fit the job.

Apple Joins Hands With Chinese Suppliers For Latest iPhones

Japan’s Nikkei newspaper has reported that U.S tech giant Apple has joined hands with more Chinese suppliers to produce its latest iPhones. Due to the pandemic situation global supply chain is already affected and the tech war between U.S and China has poured more fuel into it. The reports say that Apple will work with multiple firms for the supply of different parts of the iPhone to keep the supply steady.

Indonesia struggling to fight Delta Variant; Pushes Back Herd Immunity Goals

Indonesia has said that it is taking a step back on its goal of reaching herd immunity for Covid-19, as the rise in cases puts the healthcare system under heavy stress. According to studies, the vaccines available now are not much effective at stopping transmission of the delta variant. Indonesia is not alone in this fight.

A report from the Infectious Diseases Society of America has estimated that the U.S. should vaccinate 90% of its population to reach herd immunity. Herd immunity is a general level of protection that arises when many people have immunity against the virus, making it hard for it to circulate between humans.

Extreme Weather in China Threatening Inflation Again

Cyclones in China are the latest threat to global inflation. With bad weather forcing many of the world’s busiest ports to shut down, containers are getting stuck crushing supply chains around the world.

Supply chains have been struggling to get back into full strength with a series of events starting with the Chinese New Year, then Covid-19, Container shortages and now typhoons crushing it down. The Yantian port in China said it had stopped drop-off services of containers on Tuesday night due to a typhoon alert just weeks after Shanghai port evacuated ships due to another Typhoon.

Demand for goods is remaining strong with the low interest rates, but supply is not keeping up. If goods get stuck in China, a lot of supply chains will struggle around the world which could force up prices and cause inflation. 

U.S. Markets Consolidating; Positive Earnings Push Europe

U.S. markets traded sideways slightly in the red, even while stocks in Europe try to stay at their record highs. Positive corporate results have been pushing up the markets around the world, including in India.

Nasdaq 100 moved down after Chinese tech-company Tencent fell. Energy stocks are moving up, British Conglomerate BP(5% in NYSE) had announced increasing dividends and share buybacks.

Stoxx Europe is up 0.17%

Dow Jones is up by 0.13%
NASDAQ is down by 0.39%

UAE To Allow Transit Passengers From India, Pakistan, Nigeria, And Other Countries

The National Emergency and Crisis Management Authority (NCEMA) said on Monday UAE has decided to lift a ban on transit passenger travel from India, Pakistan, Nigeria, and other countries from August 5. The passengers will require a negative PCR test taken 72 hours before departure.

Pepsico To Sell Its Controlling Stake In Major Juice Brands

According to a Wall Street Journal report on Tuesday, the beverage giant Pepsico has decided to sell its controlling stakes in Tropicana, Naked, and other juice brands in North America to private equity firm PAI Partners for $3.3 billion(Rs 24,501 crores). Both the firms didn’t respond to the report.

BMW Raises 2021 Outlook On Strong Quarterly Results

BMW on Tuesday raised its 2021 profit outlook after the strong quarterly results, but the company also expects chip shortage and rising raw materials prices to have more impact in the second half of the year. BMW reported a quarterly net profit of 4.8 billion euros (Rs 42,333 crores) versus a loss of 212 million euros last year(Rs 1,69 crores).

Tencent Falls After Chinese Media Calls Online Gaming “Opium For The Mind”

Tencent stock fell 6% on Tuesday in Hong Kong after a state media called online gaming “opium for the mind”. Investors are afraid because regulators in China have increased scrutiny of the country’s tech and education giants and gaming platforms could be the next ones on the list.

Alibaba Falls Over Bad Quarterly Revenue Reports

Alibaba on Tuesday fell more than 3% on the NYSE after it missed quarterly expectations. Revenue in the June quarter rose 34% to RMB205.74 billion (Rs 2,36,205 crores) compared to last year, but below the analysts’ expectation of RMB209.16 billion(Rs 2,40,132 crores).

Crude Oil Dips on Concerns of Demand Fall

Crude oil prices fell in New York with concerns of fall in demand. The delta variant is continuing its spread and this is causing fresh lockdown around the world including in Europe and in India.

West Texas Intermediate fell 2.5% today to $70/barrel in New York with U.S. equity markets also not showing much strength.

China’s Sinopharm Vaccine Shows Bad Results in Hungary

The Chinese-made Sinopharm vaccine has once again failed to create sufficient antibodies in a study conducted in Hungary. The vaccine created very few antibodies in more than 25% of a group of elderly people in Budapest, according to a study by Budapest City Hall.

The Sinopharm vaccine has been used heavily in countries around the world including those in the Middle East and Africa. Booster shots by Pfizer are being recommended to such individuals.

U.S. Markets Near Record Highs; GDP Data Out

U.S. stocks gained along with other global markets, opening the week in green. The S&P 500, Dow Jones and NASDAQ touched all-time highs today, as The U.S Senate is ready to pass a $550 billion(~Rs 40.7 lakh crore) infrastructure package this week.

Stoxx Europe is up 0.50%
Dow Jones is up by 0.56%
NASDAQ is up by 0.46%

The UK Reports Slower Growth In July

The UK reports slower economic growth in July as the IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell to 60.4 from June’s 63.9. A survey shows that the fall is majorly contributed by the staff shortages and supply chain problems caused by the Covis-19 pandemic.

Japan’s MUFG Posts 10% Jump Quarterly Profits

The biggest bank of Japan MUFG reported on Monday a profit of 383.1 billion yen for the first quarter against 183.5 billion yen a year earlier. The net interest income increased 5.9% at 496.9 billion yen compared to last year and the bank currently expects a full-year profit forecast of 850 billion yen. 

HSBC Quarterly Results Beat Estimates

HSBC on Monday reported the pretax profit at $10.8 billion(Rs 80299 crores) against the $4.32 billion(Rs 80299 crores) a year earlier. Though the revenue fell 4% due to a low-interest rate, the profits beat the estimate of $9.45 billion. The company is looking for investment opportunities in Hong Kong and Asia.

UAE Starts Sinopharm Vaccination For Children Aged 3-17

The UAE government said on Monday the government will start giving China’s Sinopharm COVID-19 vaccine to children aged 3-17 soon. The government is already giving the Pfizer-BioNTech vaccine for children aged 12-15.  UAE is one of the countries with the highest vaccination rate.

Insurer Axa’s Net Income Rises Up In H1 Of 2021

Axa- Europe’s second-largest insurer after Allianz on Monday reported net profit more than doubled to 3.99 billion euros(Rs 35238 crores) in the first half against 1.43 billion euros a year earlier. Underlying income is at 619 million euros against a loss of 843 million euros last year.

Goldman Sachs Raises Pay for Junior Bankers

Goldman Sachs has raised the base pay for its junior investment bankers. This comes after analysts from the bank pointed out their intense workloads, and they are among the last of the big Wall Street banks to raise the pay. First-year analysts at the firm will earn at least $110,000(~Rs 76 lakh) per year.

WallStreet Journal Owner to Buy Oil Data Firm 

S&P Global and IHS Markit are getting ready to sell fuel price and commodities information services to News Corp. for $1.15 billion(~Rs 8,500 crores). News Corp is the owner of WallStreet Journal. 

Both S&P and Markit, who are looking for a merger, had said in May that they would look to sell many of their operations to ensure that their deal would be approved.