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Democrats Hopeful of Senate Control – Top 10 Global News

1. Treasury Yields Reach 1%; Nasdaq Futures Tumble

Benchmark Treasury yields touched 1% for the first time since March while investors rotated out of technology and into cyclical stocks on speculation Democrats are on the cusp of taking control of U.S. Congress. Democrat Raphael Warnock ousted Republican Kelly Loeffler in a runoff race, leaving control of the Senate hinging on the state’s other election, which remains too close to call. Cyclical assets posted strong gains on Wednesday. Energy stocks and banks lifted equity benchmarks in Europe. In contrast, technology companies suffered and fell more than 2% in U.S. pre-market trading. 

Futures on the S&P 500 Index fell 0.2% as of afternoon London time.

The Stoxx Europe 600 Index climbed 0.9%.

The MSCI Asia Pacific Index was little changed.

The MSCI Emerging Market Index gained 0.2%.

2. Democrats’ Senate Bid Hangs in Balance After First Georgia Win

Democrats’ hopes of taking control of the U.S. Senate received a huge boost early Wednesday after the party captured one seat in the Georgia runoff elections and waited on the outcome of another race that remained too close to call. To secure a narrow majority, Democrats need to win both Senate seats, which would split the chamber 50-50 between Republicans and the Democratic caucus, with Vice President-elect Kamala Harris casting tie-breaking votes. Senate control, paired with the Democrats’ narrow majority in the House, would give Democratic President-elect Joe Biden full control of the U.S. government and allow him to implement major pieces of his agenda.

3. Saudis Take Charge of Oil Market With Surprise Output Cut

Saudi Arabia surprised the market with a large cut in crude production, an assertion of primacy over the global oil industry that came directly from the kingdom’s de-facto ruler. The move papered over cracks in the OPEC+ coalition and was a U-turn from some recent Saudi oil-policy priorities, but those things paled in comparison next to the global impact of the decision. Crude prices jumped to a 10-month high and shares of energy giants in London and shale drillers in Texas surged. 

4. U.K. Steps Up Biggest Vaccine Drive, With 1 in 50 Now Infected

More than 1 million people in England now have coronavirus, the British government said, as medics raced to vaccinate the most vulnerable against the rapidly spreading disease. Rocketing case rates from the new virus strain mean one person in every 50 in England now has Covid-19, while in London one in 30 is infected. Prime Minister Boris Johnson unveiled the statistics as he vowed to speed up the government’s vaccination program, in order eventually to lift the latest lockdown. He said 23% of all over-80s in England have now been given a dose of a Covid-19 vaccine, meaning some of those at the greatest risk are starting to get the protection they need.

5. Hong Kong Arrests U.S. Citizen, Dozens More Under Security Law

Hong Kong arrested dozens of opposition figures under a controversial national security law, an unprecedented crackdown that included an American lawyer, as authorities work to quash any dissent that remains in the former British colony. Police said they had swept up 53 people in the Wednesday operation and that around 1,000 officers had been dispatched to carry out the detentions. Those arrested included several prominent former lawmakers, with allegations centred on an informal July primary to choose candidates for legislative elections subsequently postponed by the government.

6. Faang Stocks Step Back as Democrats Advance in Senate

The Faang mega-cap stocks fell premarket Wednesday after Democrats won one of two seats in Georgia that they need to take control of the U.S. Senate. The other race remains too close to call. A blue sweep of Georgia that puts the Senate in Democratic control would be a “clear negative” for big tech, raising the potential for greater antitrust regulations in the sector. Facebook Inc. shares dropped 2.4% premarket, while Amazon.com Inc., Apple Inc., Netflix Inc., Alphabet Inc. and Microsoft Corp. fell less than 2%. Nasdaq 100 futures fell 1.4% while S&P 500 futures were trading lower by 0.3%.

7. Moderna’s Covid Vaccine Wins Backing of EU Drugs Regulator

Moderna Inc.’s Covid-19 vaccine won the backing of the European Union drugs regulator, clearing the way for a second weapon in the bloc’s fight to stem the pandemic. The recommendation was announced by the European Medicines Agency on Wednesday. The European Commission is working “at full speed” on the final clearance step, President Ursula Von Der Leyen said in a tweet. EU leaders are facing growing pressure to speed up clearance and deployment of vaccines to tame a virus resurgence across the continent. The 27-nation bloc began immunizations last week with the vaccine developed by Pfizer Inc. and BioNTech SE, but the pace of the rollout has been uneven, prompting unfavourable comparisons with the U.K. and U.S.

8. China’s Bottled Water King Is Now Richer Than Warren Buffett

The chairman of Nongfu Spring Co., a bottled-water company that’s ubiquitous in China, is now richer than Warren Buffett as his fortune surged $13.5 billion since the start of the year to $91.7 billion on Tuesday. Zhong, 66, is now the sixth-wealthiest person on the planet. Nongfu shares jumped 18% in the first two trading days of 2021, taking the advance since their September listing to more than 200%. It’s only the second time a Chinese national has broken into the world’s Top 10 — property tycoon Wang Jianlin hit No. 8 in 2015 — and no one from the mainland has ever ranked this high. Nicknamed locally as the “Lone Wolf” for avoiding involvement in clubby business groups or politics, Zhong also took vaccine maker Beijing Wantai Biological Pharmacy Enterprise Co. public in April. The stock has soared more than 2,800%.

9. World’s Super-Rich Families Want More Hedge Funds

More than a third of 185 investment firms for wealthy clans plan to boost allocations amid the economic upheaval caused by the Covid-19 pandemic, according to a survey released Wednesday by BlackRock Inc. and Juniper Place, a London-based firm that helps asset managers raise capital. Family offices and other investors soured on hedge funds in recent years, bemoaning high fees and lacklustre returns. But the health crisis has given some of those managers a boost, particularly stock-pickers who benefited from aggressive bets on technology stocks and copious economic stimulus that drove equities to new heights.

10. Gulf Arabs Agree to Restore Qatar Ties But No Word on OPEC Role

Saudi Arabia and three other Arab states agreed to fully restore ties with neighbouring Qatar on Tuesday after a sustained U.S. push for the countries to unite against Iran. The breakthrough ending a dispute among some of the world’s top oil and gas producers that erupted in 2017 came just two weeks before President-elect Joe Biden takes office after pledging a new start with Tehran. Saudi Arabia, Bahrain, the United Arab Emirates and Egypt signed an accord with Qatar in a mirrored concert hall in the northwestern Saudi town of Al Ula during a summit of Gulf Cooperation Council leaders, bringing the regional split to an end — at least on paper. The same day, Saudi Arabia asserted its primacy over the global oil industry by surprising the market with a large crude production cut that secured its leadership among global producers and sent crude prices soaring. The Gulf leaders made no mention of whether Qatar would rejoin the Organization of Petroleum Exporting Countries. The nation, which pumps around 650,000 barrels a day of crude in addition to gas, decided to leave the cartel at the start of 2019, in one of the most visible consequences of the fallout.

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Elon Musk World’s 2nd-Richest Man now – Top 10 Global News

1. Cyclicals Lead Global Stocks Higher; Dollar Drops

Cyclical companies are powering global equities higher for a second day as investors cheered the start of U.S. President-elect Joe Biden’s formal transition and the prospect for more economic stimulus. Futures on the S&P 500 outpaced contracts on the tech-heavy Nasdaq as investors doubled down on economically sensitive sectors such as travel and energy. Oil and gas shares led the Stoxx 600 Index higher. EasyJet and International Consolidated Airlines Group SA rose after England planned to cut its quarantine period for arrivals from high-risk countries.

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

The Stoxx Europe 600 Index rose 0.6%.

The MSCI Asia Pacific Index rose 0.9%.

The MSCI Emerging Market Index was little changed.

2. Bitcoin Pierces $19,000 for First Time Since 2017

Bitcoin surpassed $19,000 (INR 14 lakh) for the first time since 2017 as the mania over digital currencies continues to grip Wall Street. Bitcoin climbed as high as $19,103 before paring the advance, trading up 2.2%. Prices are approaching an all-time high with many pointing to the wider acceptance of cryptocurrencies among traditional investors as the catalyst behind the surge. PayPal Holding Inc.’s October decision to allow customers to access cryptocurrencies led the coin to spike above $13,000 for the first time in over a year. And Fidelity Investments launched a Bitcoin fund over the summer.

3. Elon Musk Overtakes Bill Gates to Grab World’s Second-Richest Ranking

Elon Musk’s year of dizzying ascents hit a new apex Monday as the Tesla co-founder passed Bill Gates to become the world’s second-richest person. The 49-year-old entrepreneur’s net worth soared from $7.2 billion to $127.9 billion (INR 9.5 lakh cr), driven by yet another surge in Tesla’s share price. In January he ranked 35th. His advance up the wealth ranks has been driven largely by Tesla, whose market value is approaching $500 billion. About three-quarters of his net worth consists of Tesla shares, which are valued more than four times as much as his stake in Space Exploration Technologies Corp., or SpaceX.

4. Biden Begins Formal Transition After Trump Yields on GSA Process

President-elect Joe Biden and his team will begin to delve into Donald Trump’s coronavirus vaccine planning and assess the condition of federal agencies after the president relented and allowed the transition planning to begin. After weeks of inaction, the chief of the General Services administration acknowledged Monday that Biden was the “apparent winner” of the Nov. 3 election. The shift came after the key swing state of Michigan certified Biden as the winner, at least nine Republican senators called for the transition to begin and the Trump legal team suffered fresh setbacks.

5. UAE Allows Full Foreign Ownership of Firms to Boost Economy

The United Arab Emirates abolished the need for companies to have Emirati shareholders, in a major shake-up of foreign ownership laws aimed at attracting investment into an economy reeling from the coronavirus and a decline in oil prices. The amendments to the 2015 commercial companies’ law remove key provisions requiring that a company be chaired by an Emirati national and for the board of directors to be majority Emirati, citing changes issued by the country’s president. The rules come into effect on Dec. 1 and are the latest in a series of measures aimed at liberalizing business activity in the UAE, where foreigners comprise more than 80% of the population. The amendments are designed to reduce costs for companies and attract foreign entrepreneurs often put off by regulations demanding they hand 51% of their business to locals in order to operate onshore.

6. Millions of Americans Expect to Lose Their Homes as Covid Rages

Millions of Americans expect to face eviction by the end of this year, adding to the suffering inflicted by the coronavirus pandemic raging across the U.S. About 58 lakh adults say they are somewhat very likely to face eviction or foreclosure in the next two months, according to a survey completed Nov. 9 by the U.S. Census Bureau.  The CARES Act, signed into law last March, allows homeowners to pause mortgage payments for up to a year if they experience hardship as a result of the pandemic. Borrowers who signed up at the start of the program could face foreclosure by March. The Centers for Disease Control and Prevention’s nationwide temporary suspension on evictions — aimed at stemming the spread of coronavirus — is slated to end Dec. 31. The timing is far from ideal given millions of people are also set to lose their unemployment benefits at year-end without an extension from Congress.

7. Boris Johnson Ends England Lockdown But Tougher Regional Rules Follow

Prime Minister Boris Johnson confirmed England’s national lockdown will end next week, to be replaced by a tougher three-tier system of regional restrictions designed to last until spring next year. Ministers are drawing up plans to allow rules to be relaxed across the U.K. in time for Christmas and Johnson said if all goes well with the roll-out of vaccines, “the vast majority” of people who need a shot will get one by April. Under the new rules for England, from Dec. 2 shops, hairdressers and gyms will reopen across the country, but bars and restaurants will be take-away only in areas under the tightest restrictions. The government will announce on Thursday which tiers regions are being placed in after looking at the latest data on infections.

8. Xiaomi’s Sales Grows Fastest in Two Years After Huawei Slide

Xiaomi posted its fastest pace of revenue growth in more than two years after the Chinese smartphone giant grabbed market share from Huawei when American sanctions deepened. China’s No. 2 smartphone name reported a stronger-than-anticipated 34.5% rise in sales in the September quarter. More than half of that originated beyond its home country for the first time as Xiaomi took advantage of Huawei’s retreat to delve deeper into markets from Western Europe to India, where it widened its lead. The company has been among the biggest beneficiaries of the Trump administration’s campaign to ban Huawei and contain China’s technological ascendancy.

9. Russian COVID-19 vaccine to cost less than $20, free for citizens

Russia’s two-shot Sputnik V COVID-19 vaccine will cost less than $20 per person on international markets and will be free of charge for Russian citizens, according to a statement on the official Sputnik V Twitter account. Kirill Dmitriev, head of Russia’s RDIF sovereign wealth fund, told the Reuters news agency Sputnik V earlier on Tuesday that it would be priced significantly lower than rivals with similar efficacy levels. Sputnik V vaccine is 95 percent effective according to second interim analysis of clinical trial data, developers say.

10. Japan and China Agree to Restart Two-way Travel by End November

The foreign ministers of China and Japan agreed at a meeting in Tokyo to lift some virus-related travel restrictions by the end of the month, while also re-stating their differences over disputed islands in the East China Sea. Foreign Minister Wang Yi is the first senior Chinese official to visit Japan since Prime Minister Yoshihide Suga took office in September. The two men are set to meet Wednesday, as China seeks to recalibrate its ties with key American allies ahead of U.S. President-elect Joe Biden’s inauguration next year. Suga, who has little experience of diplomacy, must strike a delicate balance between the U.S., Japan’s only formal military ally, and China, its biggest trading partner.

Curated from Bloomberg.com

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Market News Top 10 News Top Global News

The UK Goes into Lockdown, Oil Prices Tank – Top 10 Global News

1. U.S. Futures Climb as Oil Touches Five-Month Low

Equity markets started Monday with gains as investors prepared for a crucial week spanning the U.S. election and a Federal Reserve meeting. Futures on the S&P 500 climbed 1% following last week’s sharp selloff. Equity benchmarks across Europe and Asia were also higher, and investors took comfort in data that showed strength in China’s economic expansion. The picture wasn’t uniform across markets. Oil prices touched a five-month low after Libya accelerated production and the U.K. joined other European countries in toughening travel restrictions. 

Futures on the S&P 500 Index increased 1% as of early morning New York time.

The Stoxx Europe 600 Index surged 1.4%.

The MSCI Asia Pacific Index jumped 1.1%.

The MSCI Emerging Market Index increased 0.8%.

2. UK Locks Down as COVID-19 cases pass 10 lakhs

Prime Minister Boris Johnson ordered England back into a national lockdown after the United Kingdom passed the milestone of one million COVID-19 cases and the second wave of infections threatened to overwhelm the health service. The UK, which has the biggest official death toll in Europe from COVID-19, is grappling with more than 20,000 new coronavirus cases a day and scientists have warned the “worst case” scenario of 80,000 dead could be exceeded. In some of the strictest restrictions in the UK’s peacetime history, people will only be allowed to leave home for specific reasons such as education, work, exercise, shopping for essentials and medicines or caring for the vulnerable. Essential shops, schools, and universities will remain open, Johnson said, and while elite sports will continue, amateur sports for adults and children will be asked to stop. Pubs and restaurants will be shut apart from for takeaways. All non-essential retail will close.

3. Ant Group Trades over 50% Premium in Hong Kong Grey Market

Institutional investors are buying Ant Group Co.’s shares at a 50% premium, signalling the Chinese fintech giant is poised to soar in its debut this week following the world’s largest initial public offering. Billionaire Jack Ma’s Ant IPO has become the most anticipated in years, attracting at least $3 trillion in orders for its dual listing in Hong Kong and Shanghai ahead of its trading debut on Nov. 5. The stampede for shares is fueling predictions of a first-day pop, even as skeptics warn of risks including the U.S. election, tightening regulations in China and rising Covid-19 infections worldwide.

4. Strong China factory data show domestic demand driving recovery

China’s manufacturing activity kept up its steady expansion from a deep slump caused by the coronavirus pandemic. The main reason for the growth has been domestic demand as Chinese people spent on travel, leisure and shopping for consumer goods, helped by a long public holiday in October. But export activity remains weak, with analysts saying the continuing coronavirus pandemic in China’s main overseas markets of the United States and Europe is likely to suppress demand there for some time. The latest figure was the highest since January 2011. It had plunged to a historic low in March as most of China’s economy shut down to control the spread of the coronavirus.

5. Ryanair posts first summer loss in decades; cuts winter forecasts

Ireland’s Ryanair posted a loss for its key summer period for the first time in decades on Monday and said it may have to cut capacity further this winter as the second wave of COVID-19 infections sparks fresh lockdowns across Europe. Europe’s largest low-cost airline said COVID-19 restrictions pushed passenger numbers down 80% in the six months to Sept. 30, when it typically makes most of its annual profit. The airline, whose chief executive Michael O’Leary in September described the upcoming winter as a “write-off”, declined to forecast profit for the full financial year ending March 31, but said it expected a second-half loss greater than the first. Ryanair reaffirmed plans to fly 3.8 crore passengers this financial year compared with the 15 crore of the same period last year.

6. Italy Considers National Curfew: Government Still Divided

Italy’s government is opting for targeted regional restrictions amid the latest surge in Covid-19 cases, in a bid to avoid a new nationwide lockdown. Regions with the highest transmission levels will be subject to tougher curbs under a new three-tiered system, Prime Minister Giuseppe Conte said Monday. These will come on top of new nationwide measures including a night-time curfew. The newest plan includes shutting down museums across the country and closing shopping malls on weekends. The government will also impose movement restrictions to and from the hardest-hit regions.

7. China Issues Fresh Warning to U.S. in Spat Over Journalist Visas

China issued a new warning to the U.S. over journalist visas, after accusing the Trump administration of giving Chinese media staff new travel documents that would expire in a matter of days. Some Chinese journalists in the U.S. were notified last week that their long-delayed visa applications had been approved, Foreign Ministry spokesman Wang Wenbin told a regular briefing Monday in Beijing. China had expressed its concerns and demands through diplomatic channels made clear that it would take “firm countermeasures” should Washington continue with its “political persecution and suppression against Chinese journalists,” he said.

8. Hong Kong’s Retail Weakness Persisted in September

Hong Kong retailers continued to struggle in September even as other sectors in the economy, notably exports, started showing stronger signs of recovery. Retail sales by value fell 12.9% from a year earlier, according to a government report. The business environment of the retail trade will remain challenging in the near term, as inbound tourism is unlikely to see a swift rebound and the labour market is still under pressure. Sales across most categories continued to drop, led by purchases of food and alcoholic drinks, jewellery and electrical goods. Supermarket sales rose, along with department stores, motor vehicles, furniture, books and newspapers.

9. Xinjiang Covid Outbreak Is China’s Biggest Since Summer

A testing blitz in China’s far west region of Xinjiang uncovered the country’s worst Covid-19 outbreak since the summer, even as authorities said all infections have been found. Authorities in the region — the epicentre of Beijing’s crackdown on ethnic Muslim Uighurs — reported six new so-called asymptomatic infections on Monday. Xinjiang’s tally since the outbreak began with the detection stands at 57 infections and 223 asymptomatic cases, Xinjiang’s health commission reported. Nine people are in “severe condition,” authorities said. The new cases emerged after China tested millions of people across the region last week. 

10. World’s Top Hedge Fund Soars 275% With Bets on China Schools

Between January and September, QQQ Capital Management posted gains of 275%, making it the top hedge fund in the world, according to Eurekahedge data. QQQ says assets under management rose to about $1 billion last month, with most of the money coming from Qian, its founder. The gains have come with concentration risks that many fund managers would balk at: QQQ has more than a third of its assets invested in Chinese education companies. While those stocks had soared this year, they’ve been hit with concerns about regulatory crackdowns and allegations of accounting fraud, and one has plunged in recent weeks amid downgrades from analysts.