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China to take Oil-Refining Crown from U.S. – Top 10 Global News

1. U.S. Futures Rise on Vaccine Hopes

U.S. equity futures rose and the dollar weakened on signs of progress toward a Covid-19 vaccine, with AstraZeneca saying its shot prevented illnesses in most people. Pfizer Inc. and Moderna Inc. climbed in pre-market trading after a U.S. government official said immunizations may start soon. Vaccine successes lately have added to a risk-on mood in markets and investors have snapped up assets that could benefit from the end of lockdowns and travel restrictions. Energy companies posted the biggest gain among European stock sectors.

Futures on the S&P 500 Index increased 0.4% as of early morning New York time.

The Stoxx Europe 600 Index rose 0.7%.

The MSCI Asia Pacific Index gained 0.6%.

The MSCI Emerging Market Index increased 1.7%.

2. U.S. Cases Rise 110,000 a Day Since Last Month

The U.S., which recorded 177,552 new infections yesterday, is now averaging almost 110,000 more daily cases than a month ago. Vaccinations against Covid-19 in the U.S. will “hopefully” start in less than three weeks, according to the head of the federal government’s program to accelerate a vaccine. “We have patients gasping for breath, needing a ventilator to survive and too often dying,” some 2,000 employees of the University of Wisconsin health system wrote in an open letter pleading for residents to help stop the virus’s spread. British ministers will weigh the next round of pandemic restrictions on Sunday, while the French government plans a three-phase easing of lockdown measures from December. Italy is also considering a pre-holiday easing.

3. China to Take Oil-Refining Crown Held by U.S. Since 19th Century

America has been top of the refining pack since the start of the oil age in the mid-nineteenth century, but China will dethrone the U.S. as early as next year, according to the International Energy Agency. In 1967, the U.S. had 35 times the refining capacity of China. The rise of China’s refining industry is reverberating through the global energy system. Oil exporters are selling more crude to Asia and less to long-standing customers in North America and Europe. And as they add capacity, China’s refiners are becoming a growing force in international markets for gasoline, diesel and other fuels. The Covid crisis has hastened a seismic shift in the global refining industry as demand for plastics and fuels grows in China and the rest of Asia, where economies are quickly rebounding from the pandemic. In contrast, refineries in the U.S and Europe are grappling with a deeper economic crisis while the transition away from fossil fuels dims the long-term outlook for oil demand. 

4. JPMorgan Sees Possible $300 Billion Rebalancing Flow Out of Stocks

Rebalancing flows may lead to an exodus of around $300 billion (INR 22.2 lakh cr) from global stocks by the end of the year, according to JPMorgan Chase & Co. Large multi-asset investors may need to rotate money into bonds from stocks after strong equity performance so far this month.  If the stock market rallies into December, there could be an additional $150 billion of equity selling into the end of the month pension funds that tend to rebalance on a quarterly basis.

5. Dollar Falls to 2018 Lows

The dollar dropped to a two-and-a-half-year low as the prospect of vaccine roll-outs added to headwinds for the world’s reserve currency. A vaccine that offers adequate protection against infection could help power a rebound in global growth and add momentum to a rally in equities and other riskier investments. That outlook is undermining the dollar, which tends to benefit in times of heightened uncertainty. According to Citigroup Inc., the dollar is likely to drop as much as 20% in 2021 should Covid-19 vaccines become widely distributed and help revive global trade and economic growth. Morgan Stanley recommends selling the dollar in favor of stocks and credit.

6. U.S. Moves to Ban Tech Exports to 89 Chinese Firms

The Trump administration is close to issuing a list of 89 Chinese aerospace and other companies that would be unable to access U.S. technology exports due to their military ties, a move that could escalate tensions as the Biden administration prepares to take over. Such a declaration would restrict the companies from buying American goods and technology. The move could fuel already-heightened tensions between the U.S. and China on fronts ranging from trade and Taiwan to the handling of the coronavirus as President-elect Joe Biden prepares to take over from Donald Trump.

7. Europe’s Virus Lockdowns Push Economy Into Another Contraction

The widespread imposition of curbs across the 19-nation bloc means the economy is set to shrink for a third-quarter this year. The situation could worsen, and even push the region into a double-dip recession if governments are forced to extend or expand the clampdown on businesses and movement. Governments have kept up financial aid to help companies and workers, and the European Central Bank has said it’s ready to do more.  The latest lockdowns aren’t as severe as those implemented during the first wave of the pandemic, which means the contraction this quarter is expected to be limited to 1.7%. That compares with a drop of almost 12% in the three months through June. However, employment fell for a ninth straight month in November, with the services sector the worst hit.

8. India Flags Investment From Hong Kong Amid China Border Row

India is subjecting foreign investment proposals from Hong Kong at par with China as part of a new policy that makes approval mandatory for plans from countries that share a land border. Nearly 140 investment proposals valued at over $1.75 billion, mostly from China and Hong Kong — China’s special administrative region — have been put on hold pending scrutiny. Amid a border stand-off with China, the Indian government tightened rules for foreign direct investment from all nations sharing a land border, making scrutiny mandatory for such investments — a restriction that was earlier applicable only to Pakistan and Bangladesh. The delays may complicate deal-making and impact the flow of capital from private equity firms and hedge funds, which often include investors domiciled in China or Hong Kong. This may starve Indian companies of investment in the midst of the pandemic-induced economic contraction.

9. World’s Supplier of Nurses to Limit Sending New Hires Abroad

The Philippines will cap the number of newly-hired nurses and other health professionals it annually sends abroad to 5,000 starting in 2021, President Rodrigo Duterte’s spokesman said. Duterte has approved the limit, taking into account the demand for nurses and doctors in the Philippines and abroad. The Philippines is battling the second-worst coronavirus outbreak in Southeast Asia. The Philippines, which sends thousands of medical practitioners to work overseas, has lifted a ban on deployment of health workers imposed earlier this year. About 13,000 nurses leave the Philippines for work abroad annually.

10. Visa Stalls Plans to Raise Fees for Some In-Store Retailers

Visa Inc. is delaying plans to raise the swipe fees paid by certain U.S. merchants each time a customer uses a credit card in-store as the coronavirus pandemic continues to crimp commerce across the country. The network told merchants this month it will leave consumer credit card-present retail rates unchanged, citing the pandemic’s effects on in-store shopping. Visa had planned to make the biggest changes to swipe fees in a decade this year, with higher rates planned for transactions on e-commerce sites. Some retailers, such as those in real estate or education were set to see such fees decline. The network opted to delay the changes as the pandemic took hold across the U.S., forcing consumers to stay inside and crimping transactions on the firm’s network. The planned changes will now happen in April 2021.

Curated from Bloomberg.com

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U.S. Jobless Claims Rise for First Time in 5 Weeks – Top 10 Global News

1. S&P 500 Futures Edge Lower as European Stocks Fall

U.S. equity futures edged lower after a sharp retreat yesterday, while global stocks slumped on worries that tougher virus restrictions will take an economic toll. Contracts on the S&P 500 dipped after U.S. weekly jobless claims came in higher than forecast. In Europe, cyclical shares taking the brunt of the retreat. Norwegian Air plunged 12% after seeking protection from creditors. Germany’s ThyssenKrupp tumbled after saying it would slash 11,000 jobs amid a cash burn at its steel business. Gold dropped for a fourth day amid a drawdown in bullion-backed exchange-traded funds.

Futures on the S&P 500 Index fell 0.3% at early morning New York time.

The Stoxx Europe 600 Index fell 0.6%.

The MSCI Asia Pacific Index declined 0.5%.

The MSCI Emerging Market Index dipped 0.9%.

2. U.S. Initial Jobless Claims Rise for First Time in Five Weeks

Applications for U.S. state unemployment benefits rose for the first time in five weeks, suggesting the labour-market recovery is slowing amid a surging pandemic and fresh business restrictions. Initial jobless claims in regular state programs totalled 742,000 in the week ended Nov. 14, up 31,000 from the prior week, Labor Department data showed Thursday. Continuing claims — the total pool of Americans on ongoing state unemployment benefits –fell 429,000 to 6.37 million in the week ended Nov. 7. The number of Americans claiming extended assistance continued to rise as many unemployed exhausted regular state benefits.

3. Dollar Loses to Euro as Payment Currency for First Time in Years

The euro was the most used currency for global payments last month, the first time it has outpaced the dollar since February 2013. Data from the Society for Worldwide Interbank Financial Telecommunications (SWIFT), which handles cross-border payment messages for more than 11,000 financial institutions in 200 countries, showed the European Union’s single currency and the greenback were followed by the British pound and the Japanese yen. The Canadian dollar overtook China’s yuan for the fifth spot, Swift said. Trade upheaval, a pandemic-induced recession and political disharmony renewed pressure to reduce the share of international payments in dollars. The U.S. currency has weakened more than 11% from its March peak.

4. Oxford Study Confirms Astra Covid Shot’s Response in Elderly

The University of Oxford confirmed that the Covid-19 vaccine it’s developing with AstraZeneca produced strong immune responses in older adults in an early study, with key findings from the last phase of tests expected in the coming weeks. The results, published Thursday in The Lancet medical journal, shed more light on preliminary data released in recent months showing the experimental shot generated an immune response in the elderly, who are at highest risk of severe illness.

5. IMF Says Global Recovery May Be Fading, Risks Still Very High

The International Monetary Fund warned the world economy’s recovery may be fading as the resurgence of the coronavirus forces fresh restrictions to be imposed on households and companies. The IMF sounded the alert as leaders of the Group of 20 countries prepare for a virtual summit this weekend, hosted by Saudi Arabia. It noted progress on a vaccine, but also said elevated asset prices point to a disconnect from the real economy and a potential threat to financial stability. “While global economic activity has picked up since June, there are signs that the recovery may be losing momentum, and the crisis is likely to leave deep, unequal scars,” officials at the Washington-based fund said in a report published Thursday. “Uncertainty and risks are exceptionally high.”

6. New York MTA Warns of 40% Subway Cut, Shedding 9,300 Jobs

As the economic fallout from the coronavirus deepens and no federal aid in sight, the U.S.’s largest mass-transport system says it has no choice. On Wednesday, New York’s Metropolitan Transportation Authority (MTA) said it will have to slash subways and buses by 40% and chop commuter rail service by half if aid doesn’t come from Washington. Fares and tolls will increase and roughly 9,300 jobs will also be eliminated. For everyday New Yorkers, who rely on mass transit as a way of life, the consequences are hard to overstate. The scale of the cuts threatens major disruptions for commuters and could exert a drag on the city’s economic recovery even after the pandemic recedes. 

7. India’s Economy to Struggle With Effects of Virus Through 2025

India will be worst-affected among the world’s major economies even after the pandemic wanes, with output 12% below pre-virus levels through the middle of the decade. Balance sheet stress that had been building before the coronavirus outbreak will probably worsen. The projected potential growth for India is at 4.5% over the next five years, lower than 6.5% before the virus. While the government has announced a slew of measures to support growth, they have fallen well short of expectations to boost demand, leaving the central bank to do much of the heavy-lifting. A paper published by the Reserve Bank of India last week predicted Asia’s third-largest economy has entered a historic technical recession.

8. South Africa Central Bank Holds Rate and Signals Next Move Is Up

South Africa’s central bank held its benchmark interest rate for a second straight meeting and signalled increases next year, even as its forecasts for the economy and inflation remain muted. The monetary policy committee held the repurchase rate at 3.5%, Governor Lesetja Kganyago said Thursday in an online briefing. Of the five members on the panel, three favoured an unchanged stance and two preferred a 25 basis-point cut, the same vote split as in September. The key rate remains at the lowest level since it was introduced in 1998 after a total easing of 300 basis points this year.

9. Russia COVID Cases Top 2 Million; Tokyo on Highest Alert

Russia surpassed 2 million Covid-19 infections, pushing its hospital system to the brink. The country has the fifth-most cases globally after the U.S., Brazil, India and France and has so far steered clear of a full lockdown during the second wave of the pandemic. In the U.S., deaths from the virus passed the grim milestone of 250,000 and New York City’s public school shutdown and the prospect of a crippled mass transit agency brought a new sense of vulnerability to the city. Tokyo is raising its virus alert to the highest level following a new record of daily cases, while South Australia began one of the world’s toughest lockdowns to contain a cluster of infections.

10. China Power Giant Makes Foray Into Mexican Renewables With Zuma

China’s State Power Investment Corp. is expanding in Latin America’s clean-energy market by acquiring Mexico’s largest independent renewables company. The energy giant known as SPIC bought Zuma Energia through its Hong Kong-based unit China Power International Holding. SPIC has more than $170 billion in assets across 41 countries, including wind, solar and hydropower projects in Brazil and Chile. The deal marks SPIC’s first move into Mexico and comes at a complicated time for the country’s renewable energy industry. Under the administration of President Andres Manuel Lopez Obrador, the nation has stepped up its defense of state energy producers Petroleos Mexicanos and Comision Federal de Electricidad by attempting to crack down on private competition. Still, SPIC is bullish on Mexico’s prospects.

Curated from Bloomberg.com

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Market News Top 10 News Top Global News

Amazon faces price-war with Ambani in Diwali sales – Top 10 Global News

1. Europe Defensive Stocks Rise; Tech Stocks Selloff Pauses

Defensive shares including health-care stocks advanced in Europe alongside U.S. futures, helping prolong a global rally in equities. Crude oil jumped for the third day. The Stoxx Europe 600 Index climbed 1% to its highest level since late February as defensives including grocery stores and real estate also rose. Equity gauges rose across much of Asia despite the tech selloff in China that deepened after Beijing’s crackdown on Internet and fintech firms. In the U.S. the tech picture was more positive, with Nasdaq 100 futures rebounding as much as 1.4%. 

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

Nasdaq 100 Index futures gained 1.2%.

The Stoxx Europe 600 Index increased 1%.

The MSCI Asia Pacific Index advanced 0.6%.

2. Record U.S. Hospitalizations; Russia Vaccine Data – COVID Update

A resurgence of cases and deaths continued in Europe, with Germany reporting its highest daily fatalities since mid-April. A state premier warned that German Christmas markets and religious services may be in jeopardy with the current rate of infection. The coronavirus is also returning in U.S. cities. Hospitalizations in the country reached a record, and cases topped 1 million in the first 10 days of November alone. The developer of Russia’s flagship vaccine said it shows a 92% efficacy rate in preventing infections, as the country pushes for a top slot in the virus fight after Pfizer reported a similar breakthrough.

3. OPEC Cuts Demand Estimate for Its Crude Again Amid New Lockdowns

OPEC once again cut estimates for the amount of crude it will need to provide in the coming year as the return of measures to contain the global pandemic hits fuel use. The virus’s effects will “linger” next year even with the announcement of a vaccine breakthrough, the group said. The group reduced forecasts — from estimates in its previous report — for the volume of crude it needs to pump this quarter by 960,000 barrels a day to 26.51 million a day. This follows significant downgrades in the past two months.

4. Deep-Freeze Hurdle Makes Pfizer’s Vaccine One for the Rich

When Pfizer and BioNTech’s Covid-19 vaccine rolls off production lines, Shanghai Fosun Pharmaceutical Group Co. will be waiting to distribute it through a complex and costly system of deep-freeze airport warehouses, refrigerated vehicles and inoculation points across China. After they reach vaccination centres, the shots must be thawed from -70 degrees celsius and injected within five days, if not they go bad. Then the herculean journey from warehouse freezer to rolled-up sleeve must be undertaken all over again — to deliver the second booster shot a month later. The roadmap sketched out by the company, which has licensed the vaccine for Greater China, offers a glimpse into the enormous and daunting logistical challenges faced by those looking to deliver Pfizer’s experimental vaccine after it showed “extraordinary” early results from final-stage trials, making it practical only for rich and developed countries.

5. Asia’s Richest Man Takes on Amazon in India’s Booming Online Market

Billionaire Mukesh Ambani obliterated rivals in India’s telecommunications sector by selling the cheapest data plans and free voice calls. Four years later, he’s deploying a very similar tactic — cutthroat pricing — to gain an edge in the country’s increasingly competitive e-commerce space. As India this week hits the peak of its biggest shopping season, the festival of Diwali, the tycoon’s retail websites — including JioMart — are elbowing their way into a space long dominated by Amazon.com and Walmart’s local unit Flipkart. Ratcheting up competition, Ambani’s portals are offering blockbuster discounts of as much as 50% on popular sugary confections and other holiday staples like spice mixes for India’s rice delicacy, biryani. Meanwhile, his Reliance Digital website is selling some flagship Samsung smartphones at prices cheaper than rivals, with as much as 40% discounts.

6. Saudi Aramco Proposes Selling Gas to China to Build on Oil Ties

Saudi Aramco wants to sell natural gas to China to help its biggest customer for oil make the transition to cleaner fuels, Chief Executive Officer Amin Nasser said. The Saudis, who have fought to remain among China’s largest crude suppliers, are also looking at options to develop and supply energy sources such as hydrogen and new kinds of chemicals to broaden their relationship with China.

7. Alibaba Leads Chinese Internet Selloff Nearing $290 Billion

Chinese technology giants from Alibaba Group Holding Ltd. and Tencent Holdings Ltd shed almost $290 billion of market value over two days of frantic selling, as investors scrambled to assess the fallout from China’s broadest attempt to control its most powerful private-sector firms. Technology shares tumbled for a second day after China issued regulations designed to curb the growing influence of internet-sector leaders including JD.com Inc., Meituan and Xiaomi Corp. The Hang Seng Tech Index slumped more than 6% on Wednesday in Hong Kong, taking its two-day loss to 11%. China on Tuesday unveiled regulations to root out monopolistic practices in the internet industry, pivoting away from a mostly hands-off approach while dealing a blow to businesses at the heart of the world’s No. 2 economy. 

8. Hong Kong-Singapore travel bubble to begin on November 22

A travel bubble between Hong Kong and Singapore will begin on November 22, the two cities announced on Wednesday, as they moved to re-establish overseas travel links and lift the hurdle of quarantine for visiting foreigners. Hong Kong’s Commerce Secretary and Singapore’s Transport Minister said the scheme would begin with one flight a day into each city, with a quota of 200 travellers per flight. This would be increased to two flights a day into each city from December 7. If the COVID-19 situation deteriorated in either city the travel bubble would be suspended, they said. Singapore’s Transport Minister Ong Ye Kung said he believed the travel bubble was the first of its kind in the world and enabled both cities to open up borders in a controlled manner while maintaining safety. Travellers from both cities must travel on designated flights and must undertake COVID-19 tests within 72 hours before their departure, while people arriving in Hong Kong must take a second test at the airport. They must also have no history of travel to any places other than Singapore or Hong Kong in the 14 days prior to departure.

9. China’s Singles’ Day bags record shopping revenues

Chinese e-commerce giant Alibaba Group Holding Ltd said orders made during its Singles’ Day mega-shopping festival had exceeded $56bn (INR 4.2 lakh cr) by Wednesday morning, as consumers sought to cash in on a deluge of discounts. This year’s shopping extravaganza comes a week after Alibaba lost almost 6% of its market value following China’s suspension of the IPO listing of Ant Group, the financial technology firm which Alibaba owns a third of. It also takes place as China experiences an economic rebound after getting the spread of the novel coronavirus under control within its borders, following the virus’ emergence in the central city of Wuhan late last year.

10. Norwegian Air furloughs staff, pleads for help to survive in 2021

Already heavily in debt, Norwegian Air sees its problems exacerbated by the coronavirus pandemic. Norwegian Air’s cash crisis could force the debt-laden budget airline to halt operations early next year, the company warned as it issued another plea for rescue funding after reporting quarterly results on Tuesday. The rapid expansion of the pioneer in low-fare transatlantic flights has left it with heavy debts and problems that have been compounded by the COVID-19 pandemic. It is now serving domestic routes only, with just 6 of its 140 aircraft flying. Its latest plea comes after Norway’s government on Monday rejected calls for more state support for the airline, the shares of which have lost 99% of their value since January, saying it would be too risky. Following that rejection, the company said that it would furlough 1,600 more staff, leaving only 600 people still working out of its total 10,000 workers before the pandemic.