Tag: us markets today

Categories
Market News Top 10 News Top Global News

Global Retail Investors Bleed Hedge Fund Titans – Top 10 Global News

1. Stocks Rebound From Worst Rout in Three Months

U.S. stocks rebounded from their worst loss since October as investors found the reason for optimism in strong labour data and a solid set of corporate earnings. Volatility continued in pockets of the market where retail traders have taken on an outsize role, whipsawing stocks such as GameStop Corp., American Airlines Inc. and AMC Entertainment Holdings Inc. The Stoxx Europe 600 Index slipped. Also weighing on sentiment is an ongoing dispute between AstraZeneca Plc and the European Union over vaccine supplies.

The S&P 500 Index rose 0.7% as of early morning New York time.

The Stoxx Europe 600 Index dipped 0.2%.

The MSCI Asia Pacific Index fell 1.9%.

The MSCI Emerging Market Index fell 1.5%.

2. U.S. Economic Growth Moderated to 4% in Final Quarter of 2020

The U.S. economy downshifted in the final three months of 2020 after record third-quarter growth, as the pandemic battered the labour market and limited Americans’ ability and willingness to spend. GDP expanded at a 4% annualized rate in the fourth quarter. While the output of goods and services was far slower than the record 33.4% rate in the previous three months, the growth pace still exceeded the average of the decade-long expansion that ended early last year. The deceleration in overall growth largely reflected a sudden moderation in consumer spending after a third-quarter splurge. Personal consumption, the biggest part of the economy, increased at a 2.5% rate, trailing projections for a 3.1% rise.

3. Tesla Slumps After First Results as a Blue Chip Disappoint

Tesla reported a lower-than-expected profit and record revenue, mixed results that disappointed investors used to razzle-dazzle from the newly minted member of the S&P 500 Index. The electric-vehicle market leader reported an adjusted fourth-quarter profit of 80 cents a share Wednesday, falling short of analysts’ consensus for $1.03. The results marked a sixth straight profitable quarter but also the first time the company missed Wall Street’s estimate for earnings per share since July 2019. Tesla shares fell as much as 8.1% before the start of regular trading Thursday. The stock had soared 933% since the beginning of last year.

4. Hedge-Fund Titans Lose Billions to Reddit Traders Running Amok

In a matter of weeks, two hedge-fund legends — Steve Cohen and Dan Sundheim — have suffered bruising losses as amateur traders banded together to take on some of the world’s most sophisticated investors. Driven by the frenzied trading in GameStop and other stocks that hedge funds have bet against, the losses suffered recently would rank among the worst in some of these money managers’ storied careers. Cohen’s Point72 Asset Management declined 10% to 15% so far this month, while Sundheim’s D1 Capital Partners, one of last year’s top-performing funds, is down about 20%. Melvin Capital, Plotkin’s firm, had lost 30% through Friday.

5. German Inflation Jumps by Record After Tax Cut Phased Out

German inflation surged by a record in January after the government phased out a temporary sales-tax cut and introduced a new emissions-pricing scheme. Consumer prices rose 1.4% from the previous month, pushing the annual inflation rate to 1.6%, more than three times economists’ forecasts. Prices were also boosted by an increase in the minimum wage. Inflation slowed sharply last year amid the pandemic crisis and turned negative in August as a result of a reduction in value-added taxes to stimulate demand. 

6. 20% of U.K. Workforce Furloughed with the Third Lockdown

Almost one in five of the U.K. workforce was on furlough leave as a third national lockdown to combat the spread of the coronavirus got under way. The report will raise concerns that removing government lifelines for jobs could wreak havoc on the economy following the worst slump in three centuries last year. Pulling the plug would threaten to decimate consumer spending, the engine of growth. The Office for National Statistics data shows 17% were reliant on Treasury wage support in early January, the highest proportion since July after the government ordered the public to stay home and retail and hospitality businesses were closed. The program pays as much as 80% of an employee’s wage if they’re kept on the payroll.

7. Tech Stocks Drive $123 Billion Gain at Norway Wealth Fund

Norway’s sovereign wealth fund returned $123 billion last year as soaring technology stocks added to market gains fattened by crisis support packages. The result is the fund’s second-highest in over two decades, and Chief Executive Officer Nicolai Tangen has already said it will be “very difficult to replicate.” The increase was driven by a more than 12% bounce in the $1.3 trillion fund’s equity portfolio. Bonds returned 7.5% while real estate lost 0.1%. Tech stocks alone delivered a 42% return, led by the fund’s holdings in Apple and Amazon.com. Tangen said the huge gain in tech stocks was “mainly due to the pandemic resulting in a massive increase in the demand for products for online working, education, trade and entertainment.”

8. China Trucking Startup Eyes $1 Billion U.S. IPO After Profit

Uber-like Chinese startup Full Truck Alliance is preparing for a U.S. initial public offering that could raise at least $1 billion as soon as this year, after eking out a slim 2020 profit thanks to a pandemic-era shipping surge. The startup backed by Tencent Holdings Ltd. is working with Morgan Stanley and China International Capital Corp. on its American debut. The talks are preliminary and details could still change but the company aims to raise $1 billion to $2 billion. China’s economy roared back to pre-pandemic growth rates in the fourth quarter after its industrial engines fired up to meet surging demand for exports. That boom is straining a domestic logistics network already taxed by a Covid 19 resurgence in e-commerce.

9. More Share Offerings Planned by Saudi Aramco: Crown Prince

Saudi Aramco plans to sell more shares to the public in the coming years, Saudi Crown Prince Mohammed bin Salman said at a conference Thursday. “There are going to be IPOs by Aramco in the following years,” Prince Mohammed said in Arabic at the Future Investment Initiative in Riyadh. The kingdom’s de facto ruler didn’t specify if the world’s biggest oil company would list more shares locally, sell them on a foreign exchange, or both. Aramco listed shares for the first time in Riyadh’s Tadawul exchange in late 2019 in the world’s largest initial public offering. The Saudi government still owns around 98% of the company, which has a market value of $1.9 trillion, second only to Apple.

10. Dubai Stocks Tumble Amid More Virus-Linked Curbs on Travel

Dubai’s stock index slumped as the city imposed further restrictions on air travel and hospitals amid another record surge in coronavirus cases. The Middle East business hub reduced the validity of PCR virus tests to three days from four “irrespective of the country they are coming from”. It is also now mandatory to have prior appointments for hospital visits. The United Arab Emirates, of which Dubai is the second-largest emirate, is battling a rise in infections as it opened up for air travel and eased movement restrictions.

Categories
Market News Top 10 News Top Global News

World Markets Turn Bearish – Top 10 Global News

1. S&P 500 Drops the Most Since October; Dollar Jumps

U.S. equities dropped alongside European stocks as a risk-off mood descended on markets. The dollar jumped the most since June and Treasury yields fell. The S&P 500 Index headed to its biggest decline in three months, losing about 2%, with small-cap stocks faring even worse. 

The Stoxx Europe 600 Index declined the most in five weeks as the European Union and AstraZeneca disagreed over vaccine delivery delays. The euro fell after a European Central Bank official said it has the necessary tools to avoid further strengthening of the currency. Officials in the U.K. announced new rules to try to curb the spread of Covid-19 and Germany cut its 2021 economic growth forecast to 3% from 4.4%.

The S&P 500 Index fell 2% as of 9:49 a.m. New York time.

The Stoxx Europe 600 Index declined 1.9%.

The MSCI Asia Pacific Index fell 0.7%.

The MSCI Emerging Market Index dipped 1.3%.

2. GameStop Skeptics Citron, Melvin Succumb to Short Squeeze

Melvin Capital and Citron Capital closed out of their short positions on GameStop as the firms succumbed to the stock’s meteoric ascent. Melvin Capital closed its position after repositioning its portfolio. The gaming retailer surged even higher in U.S. premarket trading after an Elon Musk tweet fanned the flames of the stock’s rally that has sent the company’s market value beyond $10 billion. Short sellers have come under ferocious attack as crowds of retail investors pile into the least-loved names on Wall Street. The 50 most-shorted companies on the Russell 3000 Index have surged 33% so far this year, with the Goldman Sachs basket set for its best month since at least 2008.

3. Oil Steady With Market Structure Pointing to Tight Global Supply

Oil steadied near $53 a barrel as signs of tightening supplies around the world offset concerns over the pandemic’s latest hit to demand. U.S industry data pointed to a sharp drop in the nation’s crude stockpiles last week. Saudi Arabia and Iraq are throttling back supplies next month as the OPEC+ coalition seeks to shore up prices against resurgent virus infections and new lockdowns. Russia is reducing seaborne exports and Libya has seen shipments interrupted by internal turmoil. As a result, the overall market structure is reflecting a much stronger picture. 

4. Wall Street’s Eyes on Riyadh Just as Wealth Fund Pivots Home

Saudi Arabia’s $400 billion sovereign wealth fund will find it tough to repeat its success of recent years when it made its mark globally as a source of cash for asset managers, tech entrepreneurs and tycoons. Ahead of the kingdom’s flagship investment conference this week, Saudi Crown Prince Mohammed bin Salman laid out the fund’s strategy through 2025. It’ll spend at least $40 billion a year at home, creating new cities and industries, along with 1.8 million jobs. It plans to more than double assets it controls to over 4 trillion riyals ($1.1 trillion), putting it on par with the current size of Norway’s sovereign fund, the world’s biggest.

5. The World’s Best Stock Rally Is in Sri Lanka

Sri Lanka stocks have returned a world-beating 30% so far in 2021 as domestic investors get more active. Local traders have bought a gross 155 billion rupees ($802 million) worth of equities this month through Tuesday — already 45% of the total domestic purchases last year, according to data from the Colombo Stock Exchange. That’s as overseas investors continue to exit the market, dumping a net $25 million of shares in January on top of the $273 million sold in 2020. 

6. China’s Insatiable Corn Demand Paves Way for Highest Prices

Corn’s surge to a seven-year high on the back on unrelenting Chinese demand looks like it could have a lot further to go. Prices posted one of the biggest gains in recent years on Tuesday after China made its largest one-day purchase from the U.S. since July. China is scooping up record amounts of U.S. corn to feed a pig herd recovering from a deadly virus. That’s helped grain markets hit multi-year highs, stoking worries over global food inflation at a time when hunger is surging around the world due to the Covid-19 pandemic. Money managers are also betting on a continued rally, with bullish wagers on corn near the highest in a decade.

7. ECB Officials Agree to Counter Investor Rate-Cut Skepticism

European Central Bank policymakers are uncomfortable that investors appear to be largely ruling out more interest-rate cuts, and have agreed to stress that such stimulus remains a viable option. The Governing Council last week discussed how market pricing foresees little chance of a reduction further below zero and concurred on the need to highlight that possibility. The euro extended its decline on the news, falling 0.8%, while the yield on 10-year German debt slid three basis points to -0.57%. Money markets brought forward bets on a five-basis-point rate cut to July, from September earlier.

8. UBS Wealth: It’s Time to Bet Big on Emerging Markets Shares

Emerging-market stocks, particularly those in Russia and Latin America, will be the hottest items for equity investors this year. That’s the view of the wealth management arm of UBS Group, which oversees more than $4 trillion for its clients. A reviving global economy helped by vaccine rollouts, reduced uncertainty around U.S. foreign policy, a weaker dollar, stronger commodities and stimulus in major markets should all align behind this theme. In response, UBS Wealth Management has shifted its preference in equities to developing countries, which are more sensitive to global growth and are cheaper than developed markets. MSCI’s emerging-market index trades at 16 times expected earnings in the next 12 months, well below a P/E ratio of 22 times for the S&P 500 and less than the 17 times for the Stoxx Europe 600.

9. Frozen Fish Pileup in China Threatens Global Supply Chains

A huge pile-up of fish cargoes at a Chinese port risks impacting shipments of frozen food across the country and beyond. Hundreds of containers are being held up in Dalian, a major port for seafood imports, as local authorities test the fish for the coronavirus before allowing them to clear customs. That’s leading to scant availability of electric outlets to keep refrigerated containers, known as reefers, cold. The shortage of plug points and dwindling space at the port have prompted shipping liners to cancel new reefer bookings, and the congestion is now spreading to other refrigerated items like fruit and dumplings. It also means frozen containers are being diverted to other ports in China, leading to bottlenecks in Shanghai and Qingdao too.

10. Putin Warns of Global Tensions Similar to 1930s in Davos Speech

Russian President Vladimir Putin said the world risks sliding into an “all against all” conflict amid tensions caused by the Covid-19 pandemic and growing economic inequality. Addressing the World Economic Forum on Wednesday for the first time in 12 years, Putin drew parallels with the 1930s when he said a failure to resolve international problems sparked World War II. “Today, such a global hot conflict is, I hope, in principle impossible,” Putin said in his online speech to The Davos Agenda. “But, I repeat, the situation can develop unpredictably and uncontrollably,” Putin spoke a day after Russia and the U.S. exchanged diplomatic notes agreeing to a five-year extension of the 2010 New START treaty limiting strategic nuclear weapons that were due to expire Feb. 5. Russia’s parliament voted unanimously to back the extension on Wednesday.

Categories
Market News Top 10 News Top Global News

UK Businesses Face Aftermath of Brexit – Top 10 Global News

1. Stocks Decline; Treasury Yields Extend Climb

U.S. stocks fell and benchmark Treasury 10-year bond yields rose to a 10-month high as investors mulled the prospects of the economic recovery and vaccine rollout. The S&P 500 edged lower for a second day, with the utilities and communication services sectors leading the declines. Europe’s Stoxx 600 Index traded little changed. The dollar weakened following a three-day rally. While progress on a vaccine gives reason to be hopeful, there are lingering concerns over the speculative excess and froth that’s driven stock markets to all-time highs in the middle of a pandemic.

The S&P 500 Index fell 0.5% as of noon New York time.

The Nasdaq Composite Index eased 0.4%.

The Stoxx Europe 600 Index rose 0.2%.

The MSCI All-Country World Index climbed 0.2%..

2. Trump and Pence Signal President Won’t Resign or Be Removed

Vice President Mike Pence signalled he’ll spurn demands to immediately oust Donald Trump over a deadly riot by the president’s supporters as the two met and agreed to work together for the remainder of the term, according to a senior administration official. The discussion adds to indications that Trump has no plans to resign before Joe Biden’s Jan. 20 inauguration. The House is set to issue a largely futile ultimatum to Vice President Mike Pence on Tuesday, demanding he invokes constitutional authority to remove President Donald Trump from office, as a prelude to an expected vote to impeach the president for the second time in little more than a year.

3. Twitter Bans 70,000 QAnon Accounts in Conspiracy Crackdown

Twitter Inc. has permanently suspended more than 70,000 accounts dedicated to sharing QAnon-associated conspiracy theory content and ratcheted up its enforcement in the wake of the Washington, D.C. riot last week. Many of the affected accounts were run by individuals who were operating several of them at a time, Twitter said in a statement detailing its actions. Any tweets labelled for violations of Twitter’s civic integrity policy — a key reason cited by the company in its initial suspension of departing U.S. President Donald Trump — will now be limited in engagement. Users will only be able to quote-tweet such posts, with likes, replies and retweets disabled.

4. Bitcoin Rebounds While Leaving Everyone in Dark on True Worth

Bitcoin rebounded after Monday’s steep plunge left investors grasping for clues about what lies ahead for the world’s largest cryptocurrency. The digital coin rose 4.9%, following yesterday’s 11% slide. The latest bout of roller-coaster volatility recalls past boom and bust cycles including the 2017 bubble, and has investors debating whether this is a healthy correction or the end of the latest bull run for cryptocurrencies.

5. Merkel Anxious That U.K.’s Mutated Virus Will Hit Germany Hard

Chancellor Angela Merkel warned that Germany may need to prolong its coronavirus lockdown until Easter due to risks posed by a fast-spreading variant from the U.K. Europe’s largest economy has already seen its outbreak intensify in recent days, despite tightening restrictions on movement and contact. Now authorities are looking with concern toward Ireland, where the new strain has contributed to one of the world’s worst contagion rates. During a video call on Tuesday, Merkel said harsh curbs might have to remain in place for the next eight to 10 weeks to combat the mutation.

6. U.K. Businesses Drowning in Red Tape Under Brexit Border Rules

While the mile-long lines of trucks have dissipated at ports, U.K. businesses are waking up to less visible forms of friction at the border with the European Union that may cause more enduring damage. From health certificates to new taxes and additional paperwork, the cost of moving goods across the English Channel is rising due to Britain’s exit from the EU. While each one of the new rules marks a minor shift from the border-free trade Britain enjoyed for four decades as a member of the EU, together they add up to a significant constraint. That’s already starting to upend supply lines and limit shipments for companies of all sizes. Those hit hardest are the U.K.’s 5.9 million small- and medium-sized businesses, which employ about three-in-five of those working in the private sector. All told, Brexit may cost British exporters 25 billion pounds ($34 billion) this year as a result of weak demand and more red tape, shaving 1.1% off Britain’s GDP.

7. China Won Trump’s Trade War and Got Americans to Foot the Bill

U.S. President Donald Trump famously tweeted that “trade wars are good, and easy to win” in 2018 as he began to impose tariffs on about $360 billion of imports from China. Turns out he was wrong on both counts. Even before the coronavirus infected millions of Americans and sparked the steepest economic downturn since the Great Depression, China was withstanding Trump’s tariff salvos, according to the very metrics he used to justify them. Once China got the virus under control, demand for medical equipment and work-from-home gear expanded its trade surplus with the U.S. despite the levies. “China is too big and too important to the world economy to think that you can cut it out like a paper doll,” said Mary Lovely, an economics professor at Syracuse University. “The Trump administration had a wake-up call.

8. Byju’s to Pay $1 Billion for Blackstone-Backed India Tutor

India’s biggest online-education startup Byju’s has signed a deal to acquire brick & mortar test prep leader Aakash Educational Services Ltd. for $1 billion. The deal for what will be one of the largest ed-tech acquisitions in the world should close in the next two or three months. Bangalore-headquartered Byju’s is valued at $12 billion and has been on a fund-raising spree as the pandemic has sent demand for its online lessons soaring. India’s second-most valuable startup is backed by the likes of Facebook founder Mark Zuckerberg’s Chan Zuckerberg Initiative, Tiger Global Management and Bond Capital, co-founded by Silicon Valley investor Mary Meeker.

9. Asian LNG Cargo Prices Break Records as Cold Makes Traders Scramble

North Asia’s liquefied natural gas benchmark rose above $30 per million British thermal units for the first time, breaking a barrier that few thought possible. Freezing temperatures across North Asia have boosted gas consumption and caught short some end-users, sending the spot rate to new highs. Meanwhile, numerous production issues at export facilities and delays traversing the Panama Canal curbed supplies. This marks a dramatic turnaround for the fuel, which hit an all-time low less than nine months ago amid pandemic lockdowns. Tuesday’s spot price represents an 18-fold rise from that level.

10. Dubai’s Open-City Policy Saw Hotel Bookings Surge in December

Occupancy at Dubai’s hotels surged in December and neared pre-pandemic levels as travellers flocked to the emirate to escape coronavirus lockdowns at home. Hotels were 71% full last month — the highest figure since February. Dubai’s hotel occupancy, for years one of the highest in the world, slumped to 23% in part of 2020 from about 80%. Dubai attracts about 16 million tourists annually and its hotels were initially among the worst-hit by travel restrictions introduced to keep the pandemic in check. The opening up has come at a cost. Infections surged in the United Arab Emirates — of which Dubai is one of seven sheikdoms — from late December.

NOTE TO THE READERS: Due to unavoidable personal reasons, there was a delay in preparing this article today. I apologize for this inconvenience.

Categories
Market News Top 10 News Top Global News

Trump Impeachment Likely After Capitol Riots – Top 10 Global News

1. Dollar Rises as Stocks, U.S. Futures Retreat

After a buying frenzy swept across global markets last week, investors are starting Monday in a cautious mood. The dollar climbed against all its major peers, with demand supported by elevated US bond yields. European stocks pulled back from a 10-month high and S&P 500 futures dipped. Weighing on the minds of investors are worries that equities are running too hot and valuations are stretched at a time when major parts of the world are grappling with the worst of the pandemic.

Futures on the S&P 500 Index decreased 0.9% as of early morning New York time.

The Stoxx Europe 600 Index fell 0.2%.

The MSCI Asia Pacific Index declined 0.2%.

The MSCI Emerging Market Index increased 0.2%.

2. Democrats Eye Fast Trump Impeachment Days Before Biden Sworn In

House Speaker Nancy Pelosi is readying Democrats for a lightning-fast second impeachment of President Donald Trump this week that risks consuming Congress in a bitter political fight just as President-elect Joe Biden’s administration is attempting to get off the ground. With a groundswell of anger among Democrats over the storming of the Capitol on Jan. 6 by a mob encouraged by Trump, Pelosi said Sunday night the House would take up a resolution to impeach Trump for the second time in less than two years unless Vice President Mike Pence and the cabinet invoke the 25th Amendment this week to remove Trump from office.

3. Wall Street Cuts Campaign Spending to Condemn U.S. Politicians

Wall Street will use the power of its campaign-giving to broadly condemn U.S. politicians, including those whose attempt to overturn the November presidential election spurred last week’s attack on the Capitol. Goldman Sachs Group will probably curtail donations to leaders who tried to block the election result, and Morgan Stanley similarly singled out members of Congress who withheld their votes to certify President-elect Joe Biden’s win in November, pausing its contributions to them. JPMorgan Chase & Co., the largest U.S. bank by assets, said it’s planning a six-month suspension to both Republicans and Democrats, and Citigroup said it intends to temporarily stop all political contributions this quarter.

4. Tech Under Attack After Parler Goes Dark, Twitter Drops

Tech firms tried to contain a mounting backlash against their social media sites, with shares of Twitter and Facebook falling in early trading and rival platform Parler forced offline by Amazon.com. Twitter fell 7.8% in pre-market trading in New York after it banned President Donald Trump permanently for risking incitement to violence, citing posts referring to riots in the U.S. capital last week, removing one of Twitter’s biggest accounts. Facebook’s shares were down 2%. Free-speech-centric network Parler was taken offline early on Monday after Amazon Web Services shut down access to its servers, leaving it without an online home. Both Google and Apple kicked Parler from their stores, making it almost impossible to download the app.

5. Bitcoin’s Biggest Plunge Since March Shakes Faith in Crypto Boom

A steep selloff in Bitcoin is fueling concern that the cryptocurrency bubble may be about to burst. Bitcoin slid as much as 21% over Sunday and Monday in the biggest two-day slide since March. While the digital token recovered some of the losses during the European session, it was still down for the day. “It’s to be determined whether this is the start of a larger correction, but we have now seen this parabola break so it might just be,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. Bitcoin has more than quadrupled in the past year, evoking memories of the 2017 mania that first made cryptocurrencies a household name before prices collapsed just as quickly. Prices almost reached $42,000 on Jan. 8 with retail traders and Wall Street investors clamouring for a piece of the action.

6. China Stocks Slump Most in Three Weeks on Valuation Concerns

Chinese stocks fell the most in three weeks, led by consumer shares and commodity producers, amid concern valuations for the most popular stocks were stretched and as metal prices slumped. The CSI 300 Index dropped as much 1.5% before paring losses to 1% at the close. Gauges tracking energy, consumer staples and materials producers slumped more than 2%. Mainland investors appeared to flock to Hong Kong equities instead, buying a record HK$19.5 billion ($2.5 billion) of the city’s shares through trading links Monday. Jitters are appearing in China’s $11 trillion equity market after the gauge surpassed its bubble peak in 2015.

7. Hedge Funds Head for Cover as Dollar Rebound Gathers Pace

The dollar rebound is picking up pace, with signs that speculative traders are busy covering short positions after U.S. Treasury yields surged. Traders are reporting strong demand from leveraged funds for the dollar on Monday, with the greenback leading major currency advances. That adds to data released from the Commodity Futures Trading Commission that showed them trimming long positions on major currencies including the euro and the pound. “The dollar is so extremely oversold, over-hated, and over-shorted that it all but has to rally for a while at some point soon,” said Matt Maley, chief market strategist at Miller Tabak + Co. “The dollar is getting very ripe for a tradable bounce — one that will last at least several weeks and maybe even a couple of months.”

8. Brexit Drags U.K. Below U.S. in Global Business Location Ranking

Britain is significantly less attractive as an international business location because of Brexit but remains well positioned compared with other major economies. The U.K. slipped behind the U.S. to second place in the latest rankings, though it remains ahead of the rest of its Group of Seven partners. Canada was fourth, followed by Germany in 17th, France in 18th, Japan in 20th and Italy in 21st and final spot. “Brexit has been a major liability for the U.K.,” the authors of the study wrote. “Future British governments have a long road ahead if they wish to regain their economic dynamism, as promised by Brexit advocates.”

9. T-Mobile to Borrow Up to $2 Billion in Heated Spectrum Bid

T-Mobile US Inc. is borrowing as much as $2 billion as the mobile carrier engages in an expensive battle to buy more spectrum assets. The company will issue the debt in three parts, maturing as late as 2031. Communications providers are amping up their bids in a 5G airwaves auction in the U.S., which may see T-Mobile’s peers such as Verizon and AT&T tap the debt markets as well. The auction — which still has several more rounds of bidding ahead — has now surged past $80 billion, well above analysts’ estimates of $47 billion. The frenzy underscores how crucial these mid-band frequencies are to companies trying to seize global leadership in emerging 5G technology. The airwaves are expected to drive a yearslong surge of profits when deployed for next-generation mobile devices, autonomous vehicles, health-care equipment and manufacturing facilities.

10. Staples Seeks to Buy Office Depot Parent in $2.1 Billion Deal

There could be consolidation ahead in the office-products space, with Staples outlining Monday a proposal to acquire the parent company of Office Depot in a deal that would value the target company at $2.1 billion. A deal would bring together two of the biggest names in office supplies at a time when brick-and-mortar retailers are struggling to cope with broad economic shutdowns in the pandemic. Staples had previously tried to buy Office Depot, but the $6.3 billion acquisition was called off in 2016 amid antitrust scrutiny.

Categories
Market News Top 10 News Top Global News

Elon Musk World’s Richest Man – Top 10 Global News

1. Stocks Rise as Dismal Jobs Data Spur Stimulus Bets

Stocks rose after data showing a sharp slowdown in U.S. hiring bolstered speculation on further stimulus to revive economic growth as the pandemic ravages the country. The S&P 500 climbed toward another record, led by energy producers, retailers and technology companies. While economists expect vaccinations will lead to a faster pace of job growth in the second quarter, the intervening months could bring more labour-market pain until many more Americans are inoculated.
The S&P 500 gained 0.4% as of early morning New York time.

The Stoxx Europe 600 Index advanced 0.6%.

The MSCI Asia Pacific Index gained 2%.

2. Elon Musk Surpasses Bezos to Become World’s Richest Person

On Thursday, Tesla’s shares surged 7.9%, boosting Musk past Amazon.com founder Jeff Bezos on the Bloomberg Billionaires Index, a ranking of the world’s 500 wealthiest people. Musk is worth $194.8 billion, or $9.5 billion more than Bezos, whose Blue Origin is a rival to Musk’s Space Exploration Technologies Ltd., or SpaceX, in the private space race. Tesla’s ascent thrusts its brash founder into a role occupied by only a handful of other people in recent decades and underscores the dramatic stock moves that have upended the global wealth rankings of late. Over the past year the South Africa-born engineer has added more than $165 billion to his fortune in what’s probably the fastest bout of wealth creation in history. 

3. Apple Supplier TSMC’s Revenue Hits Record on iPhone Sales

Taiwan Semiconductor Manufacturing Co. reported record quarterly revenue, joining other Apple Inc. suppliers in signalling strong demand for the new 5G iPhones. The world’s largest contract chipmaker said Friday that December sales totalled $4.2 billion. Shares of Apple’s main chipmaker have rallied more than 70% over the past 12 months and reached a record high on Friday. The company has predicted that the industry “megatrends” of 5G and high-performance computing-related products will continue to drive growth over the long term.

4. U.S. Daily Deaths Surpass 4,000; London Crisis: Virus Update

The U.S. suffered more than 4,000 coronavirus deaths in a single day for the first time, as the pandemic picks up pace. London declared a “major incident” due to a surging number of cases. The U.K. toughened rules for inbound travellers, while the European Union secured an extra 300 million doses of the Pfizer Inc.-BioNTech SE shot. Germany reported the most daily fatalities since the start of the pandemic. Israel agreed to a data deal with Pfizer that will allow all citizens over 16 to be inoculated by the end of March. Moderna Inc.’s vaccination won U.K. emergency approval. Iran banned U.S. and U.K. coronavirus vaccinations, even as it contends with rising numbers of cases.

5. Brent Oil Hits $55 With Saudi Cuts Adding Fuel to Vaccine Rally

Brent oil topped $55 a barrel for the first time since February as gains in broader markets added to investor optimism already buoyed by Saudi Arabia’s unilateral plan to cut output. The move caps a stellar few months for the oil market, with crude emerging as a favoured play to bet on coronavirus vaccines and global reflation. Saudi Arabia’s pledge earlier in the week to cut production by 1 million barrels a day in February and March added vigour to the rally, while Democrat gains in the U.S. have spurred broader markets higher in expectation of additional stimulus.

6. Gold Tumbles Back Below $1,900 as Technicals Drive Selling

Gold dropped below $1,900 as technical selling took over after an earlier recovery in the dollar sent prices falling. Bullion slipped as much as 2% in London, erasing gains made at the start of this year, as stock futures rose after data showed a sharp slowdown in U.S. hiring, bolstering speculation on further stimulus. Gold’s initial drop was exacerbated after prices broke below the 100-day moving average, a key technical level. “The move lower is technically driven,” triggered by a stronger U.S. dollar and higher Treasury yields, said Georgette Boele, an analyst at ABN Amro Bank NV. The metal should now test support at $1,870 an ounce, she added.

7. Fastest Rally in History Takes Emerging-Market Stocks to Record

The emerging-market equity benchmark rose to a record Friday, topping its previous high reached before the 2008 financial crisis, as a flood of liquidity and optimism over a global economic rebound fuel risk appetite. The MSCI Emerging Markets Index rose 1.8%, extending its recovery from the March fall to 79%. The milestone comes after stock valuations and market capitalization both reached record highs in a rally that’s added $10.6 trillion in a little over nine months, the fastest bout of wealth creation in the history of emerging markets. While the flurry of records underscores the strength of the risk-on shift in global markets since Joe Biden’s victory in U.S. elections, it is already sparking nervousness among some investors that emerging equities are overheating. Even though earnings estimates continue to rise, the index has surged so fast that technical indicators are flashing red.

8. White-Knuckle Bitcoin Rally Powers Crypto’s Best Week Since 2017

Cryptocurrencies are on course for their biggest weekly surge since the last bubble in Bitcoin peaked about three years ago, ahead of a spectacular crash. The Bloomberg Galaxy Crypto Index, which includes Bitcoin, Ether and three other digital coins, has rallied 52% this week, the most since December 2017. Bitcoin jumped to a new record on Friday, with prices approaching $42,000. Cryptocurrencies are becoming emblematic both of the exuberance in financial markets as well as of the concern that the pace of gains is unsustainable. Believers in Bitcoin see it as a maturing asset that provides a hedge against dollar weakness and inflation risk. 

9. Google Ads Changes Face U.K. Review

U.K. regulators are investigating whether a Google privacy initiative will hurt publishers’ ability to generate revenue, in the first big post-Brexit antitrust probe. The Competition and Markets Authority said it will review Google’s move to curb the ways in which advertising data is collected because the move could “undermine competition in digital advertising, entrenching Google’s market power.” The British investigation adds to Google’s legal headaches around the world. The Mountain View, California-based company faces lawsuits from the U.S. Department of Justice and multiple states over allegedly anti-competitive practices. The increasingly tech-focused CMA is preparing to unveil a new digital regulator later in the spring with powers to rein in firms designated as holding strategic market status.

10. U.K. House Prices Climb to Record as Tax Cut Stokes Market

U.K. house prices rose to a record high last month as a government incentive to buy and a desire to move out of big cities boosted demand. Prices rose 6% from a year earlier in December to an average 253,374 pounds ($340,000). In one month alone, they gained 0.2%. The property boom is being fueled by a tax cut on transactions worth as much as 15,000 pounds to buyers. The Covid-19 pandemic is also boosting interest in moving to larger properties and those outside of city centres as remote working becomes increasingly common. The number of Britons working from home will rise five-fold by 2025, according to a separate survey of chief financial officers published by Deloitte.

Categories
Market News Top 10 News Top Global News

Democrats win Senate; Biden gets Full Govt. Support – Top 10 Global News

1. Stocks Climb Toward Record With Stimulus in Focus

Stocks rose toward a record a day after violence rocked the U.S. Capitol, with investors firmly focused on the prospect for more economic stimulus and the likelihood that calm will prevail as Joe Biden takes the presidency. The S&P 500 extended gains into a third day, led by financial companies. Treasury yields held above 1%, while the dollar advanced. Democrats are set to take control of the U.S. Senate, House and presidency, paving the way for Biden to bring his legislative agenda to life and reshape the American economy. He was recognized by Congress as the next president early Thursday.

The S&P 500 rose 0.7% as of early morning New York time.

The Stoxx Europe 600 Index gained 0.4%.

The MSCI Asia Pacific Index climbed 0.8%.

2. Biden Reaps Best Georgia Prize: Democrats Get Senate

Joe Biden won a huge boost with Democrats securing control of the Senate by the narrowest of margins, giving the president-elect a smoother path for advancing his nominees and legislative agenda. But the wins in two Georgia runoff elections came on a day when rioters backing President Donald Trump stormed the U.S. Capitol during the joint session of Congress that certified Biden’s Electoral College win. Lawmakers sheltered under their desks as security officers drew weapons and barricaded the members in the chamber with whatever furniture they could find.

3. Global Food Prices at Six-Year High and Climbing

Global food prices reached a six-year high in December and are likely to keep rising into 2021, adding to pressure on household budgets while hunger surges around the world. Food prices has jumped 18% since May, as adverse weather, government measures to safeguard supplies and robust demand helped fuel rallies across agricultural commodities. Prices will likely climb further, the UN’s Food & Agriculture Organization said. The spike threatens to push up broader inflation, making it harder for central banks to provide more stimulus to shore up economies. It’s bad news for consumers whose incomes have been hurt by the Covid-19 crisis and adds to concerns about global food security that’s being affected by conflicts and weather shocks.

4. U.S. Vaccine Rollout Hindered by Faulty Coordination, Messaging

As the U.S. grapples with record hospitalizations and deaths from the Covid-19 pandemic, a crucial vaccination rollout campaign is being impeded by inconsistent messaging and myriad state strategies as a new variant of the virus drive up infection rates, according to public health experts. The missteps have put the number of vaccinations well behind targets set by the Trump administration’s U.S. Operation Warp Speed effort. Only 5.46 million doses have been administered in the U.S. since mid-December against a goal of 20 million by the end of 2020. Vaccination rates have ranged significantly across states, with South Dakota using 69% of the doses sent to it and Georgia just 22%.

5. U.S. Trade Gap Widened to Second-Biggest Record in November

The U.S. trade deficit widened to the second-largest on record in November as merchandise imports reached a more than one-year high in the midst of the holiday shopping season, causing the shortfall in goods to climb to the highest yet. The gap in the trade of goods and services expanded to $68.1 billion in November from $63.1 billion in October. Total imports increased 2.9% to $252.3 billion, with inward-bound shipments of goods climbing to $214.1 billion, the highest value since May 2019. The merchandise-trade deficit increased 6.2% to $86.4 billion, the biggest on record, while the nation’s surplus in services to $18.2 billion, the lowest since August 2012.

6. Tokyo in State of Emergency; China Locks Down City: Virus Update

Japan’s Prime Minister Yoshihide Suga declared a state of emergency for Tokyo and the surrounding areas, trying to stem infections that hit a daily record in the capital. China banned all vehicles and people from leaving the city of Shijiazhuang to the south of Beijing after confirming almost 200 coronavirus infections. More than 10 million people will now be tested for the virus. Accelerating caseloads across Europe prompted a call from the World Health Organization for stricter measures across the continent. The U.S. reported a record 3,844 deaths from Covid-19, while confirmed cases globally climbed by an all-time high of 776,435 to more than 87 million.

7. Alibaba, Tencent Shares Drop as U.S. Weighs Investment Ban

Alibaba and Tencent led a technology stocks selloff as the Trump administration considers barring investments in China’s two most valuable companies. Alibaba fell 3.9% and Tencent dropped 4.7% in Hong Kong trading on Thursday, tracking losses in their New York-listed securities. Imposing a ban on the two companies would mark the most dramatic escalation yet by President Donald Trump’s administration, given the sheer size of the two firms and the difficulty unwinding positions. At $1.3 trillion, the combined market value of their primary listings together accounts for about 11% of the weighting for MSCI emerging markets benchmark.

8. Abu Dhabi’s Mubadala Wants to Take Crack at Top 10 Sovereign Wealth Funds

Abu Dhabi’s Mubadala Investment is overhauling its structure and deploying capital to double in size to nearly half a trillion dollars in the next decade, a plan that will vault it into the top ranks of the world’s sovereign wealth funds. With stakes in businesses from Reliance Industries Ltd.’s retail unit to private equity firm Silver Lake, Mubadala was among a few sovereign investors that last year seized on opportunities from a dislocation in markets caused by the coronavirus pandemic. The focus will be on technology, infrastructure, life sciences and other “future-oriented asset classes,” alongside continued investment in renewables and other clean technologies.

9. India’s GDP Set to Drop 7.7%, Biggest Contraction Since 1952

India’s economy is set for its biggest annual contraction in records going back to 1952 as the rapid spread of coronavirus cases and measures to contain them hurt businesses and households. The gross domestic product will shrink 7.7% in the financial year ending March 2021, the statistics ministry said in its first advance estimate published on Thursday. That’s steeper than a 7.5% drop forecast by the Reserve Bank of India. The estimates may undergo sharp revisions due to disruptions caused by steps to contain the pandemic, said the statistics office, which had suspended data collection coinciding with a nationwide lockdown.

10. U.S. Initial Jobless Claims Remain Elevated Heading Into 2021

Applications for U.S. state unemployment benefits were little changed at elevated levels in the final week of 2020, indicating the labour market remains battered with the pandemic dragging on. Initial jobless claims in regular state programs fell by 3,000 to 787,000 in the week ended Jan. 2, Labor Department data showed Thursday. Continuing claims for state programs — a rough approximation of the number of people receiving those benefits — declined by 126,000 to 5.07 million in the week ended Dec. 26. While initial claims dropped for a third consecutive week, the figures underscore a labour-market rebound that remains fragile, with Friday’s jobs report forecast to show a sharp slowdown in December hiring. The surge in Covid-19 cases sparked a wave of renewed restrictions on businesses and activity, spurring businesses to cut jobs.

Categories
Market News Top 10 News Top Global News

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.

Categories
Market News Top 10 News Top Global News

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.

Categories
Market News Top 10 News Top Global News

2021 Begins with Record-High Virus Cases & Deaths – Top 10 Global News

1. S&P 500 Rallies to Close the Year at Record High

The S&P 500 Index and Dow Jones Industrial Average turned positive yesterday afternoon and ended at all-time highs. Volume was about 15% below average. Financial companies were among the best performers, while energy producers slumped. European stocks dipped. Markets in Japan, Germany and South Korea were shut for New Year’s Eve. In Asia, China’s benchmark CSI 300 Index closed at a five-year high as officials gave the green light to its first coronavirus vaccine for general public use and data showed a steady economic recovery. The offshore yuan strengthened to the highest since June 2018.

The S&P 500 Index rose 0.6% as of market close in New York.

The Stoxx Europe 600 Index fell 0.3%.

The MSCI Asia Pacific Index was little changed.

The MSCI Emerging Market Index rose 0.1%.

2. Pandemic Exits 2020 With Record Cases Across Globe

One year after a mysterious pathogen first revealed itself in Wuhan, China, the Covid-19 pandemic enters 2021 with no signs of slowing down. Global daily deaths reached record highs this week, while U.S. infections approached 20 million, almost twice as many as second-worst hit country India. Countries from Japan to South Africa ended 2020 with record daily cases. In the U.S., New York state and Florida shattered their previous case records, while Texas saw a new high for hospitalizations. The U.S. added 227,616 cases on Dec. 31. China and Brazil became the latest to report infections of the new, highly transmissible virus strain.

3. Britain Leaps Into Unknown With Split From EU at Critical Moment

The U.K. completed its divorce from the European Union, leaving the bloc’s single market and customs regime more than four years after voting for Brexit and with the country gripped by a deepening crisis. The end of the transition period at 11 p.m. in London on New Year’s Eve launched the U.K. on a new path on its own, free from EU laws, able to strike trade agreements around the world and to reshape its economy. “This is an amazing moment for this country,” Prime Minister Boris Johnson said in his New Year’s message. “We have our freedom in our hands and it is up to us to make the most of it.” Yet many areas — including the critical financial services industry — still need to be agreed to, while in the background the coronavirus pandemic is engulfing more people than ever and another lockdown is weighing on the nation.

4. NYSE to Delist Chinese Telco Giants on U.S. Executive Order

The New York Stock Exchange said it will delist three Chinese corporations to comply with a U.S. executive order that imposed restrictions on companies identified as affiliated with the Chinese military. China Mobile Ltd., China Telecom Corp Ltd., China Unicom Hong Kong Ltd. will be suspended from trading between Jan. 7 and Jan. 11, and proceedings to delist them have started. The three Chinese companies have separate listings in Hong Kong. All generate the entirety of their revenue in China and have no meaningful presence in the U.S. Their shares are also thinly traded on the NYSE compared to their primary listings in Hong Kong, making this NYSE delisting more of a symbolic blow amid geopolitical friction between the U.S. and China.

5. Faster-Spreading Covid Strain Affects Young the Most

The new coronavirus variant that emerged in the U.K. is more transmissible and appears to affect a higher proportion of people under 20. The mutation of concern has “a substantial transmission advantage” and is linked to “epidemic growth in nearly all areas,” the scientists wrote. It can raise the virus’s reproduction rate, which indicates how many people one patient infects, by as much as 0.7. “This will make control more difficult and further accentuates the urgency of rolling out vaccination as quickly as possible,” said Neil Ferguson, a professor at Imperial who has worked on modelling the outbreak. Social distancing measures that worked against earlier strains of the virus were insufficient to control the spread of the new variant. The government had previously said the new strain was as much as 70% more transmissible than other versions.

6. Huawei Removes Tencent Games in Dispute Over Cooperation

Huawei Technologies Co. removed Tencent Holdings Ltd.’s games from its app store as some terms of cooperation are changing between the two technology giants. The action was taken after Tencent made a “big change” on Dec. 31 to how the companies work with each other. While most smartphones in China use Google’s Android operating system, the U.S. company’s Play Store isn’t available and apps are instead sold by mainland manufacturers and others. Huawei was the biggest smartphone maker in the country during the September quarter with 43% of shipments. Huawei said its decision followed an assessment by its legal team and was based on the premise that Tencent is unilaterally asking to halt cooperation.

7. Millions of Americans Are Calling In Sick, Stunting the Recovery

Amid the surge in the ranks of the unemployed during the pandemic, another crucial problem in the labour market has gone mostly overlooked: Workers are calling out sick in record numbers this year. Whether it’s because they have Covid-19 themselves, are worried about getting it or are taking care of someone who already has it, the number of workers who’ve missed days on the job has doubled in the pandemic. What’s more, unlike the jobless rate, which has steadily declined from its April peak, the rate of absenteeism has remained high. Almost 1.8 million workers were absent in November because of illness, nearly matching the record 2 million set back in April.

8. Tesla Sets Price of China-made Model Y SUV Below Competitors

Tesla will start deliveries of its China-made Model Y SUV this month to customers in the country, as it set the vehicle at a price below some of its rivals to maintain a competitive edge. The Model Y starts from 339,900 yuan ($52,074), while the Model Y Performance car will be from 369,900 yuan. Tesla Chief Executive Officer Elon Musk has said the Model Y has the potential to outsell all other vehicles it makes. Tesla also launched a modified Model 3 sedan which remained at a post-subsidy price of 249,900 yuan for the basic version. The Model 3 qualifies for China’s national subsidy for electric vehicles, while the Model Y doesn’t. China is Tesla’s largest market after the U.S., with sales topping 120,000 units in 2020.

9. Oman Plans 2021 Borrowing as Oil Price, Virus Batter Economy

Oman’s government will finance most of its budget shortfall in 2021 by borrowing to plug a fiscal gap battered by a decline in oil prices and the coronavirus pandemic. The Persian Gulf state is looking into borrowing that will cover 73%, or 1.6 billion rials ($4.2 billion), of the country’s 2.2 billion-rial shortage, with the remaining 600 million rials to be drawn from its reserves. The government based its 2021 budget plan on an oil price of $45 per barrel. Oman has taken measures such as reduced spending and plans to impose a 5% value-added tax in 2021.

10. Singapore and Malaysia Terminate High-Speed Rail Project

The two countries were unable to reach an agreement on the project after Malaysia sought changes because of the pandemic’s economic impact. Malaysia will have to compensate Singapore for costs already incurred. The announcement came just after a Dec. 31 deadline for the second and final extension of the suspension of the project, which was first mooted a decade ago and given the green light in 2013. The on-again, off-again 350 kilometres (218 miles) high-speed rail link would have cut travel time between the centres down to about 90 minutes versus more than four hours by car. The service was due to start in 2026.

Categories
Market News Top 10 News Top Global News

Ambani loses Richest Man of Asia Title – Top 10 Global News

1. Stocks Steady Near All-Time Highs; Dollar Dips

Markets are ending a tumultuous year on a quiet note, with global stock indexes holding near record highs and the dollar at the lowest in two years. U.S. equity futures dipped on the last day of 2020 and all of the industries in the Europe Stoxx 600 were in the red. Markets in Japan, Germany and South Korea were shut for New Year’s Eve. In Asia, China’s benchmark CSI 300 Index closed at a five-year high. The yuan strengthened to the highest since June 2018.

Futures on the S&P 500 Index dipped 0.1% as of early morning London time.

The Stoxx Europe 600 Index fell 0.3%.

The MSCI Asia Pacific Index gained 0.2%.

The MSCI Emerging Market Index climbed 0.4%.

2. Bitcoin Touches $29,000 for Another Record High

Bitcoin vaulted above $29,000 to reach yet another record level on the last day of 2020, in a fitting end to a groundbreaking year for the world’s largest digital currency. It has advanced almost 50% in December, on track for its biggest monthly gain since May 2019. Bitcoin has now quadrupled in value this year amid the global coronavirus pandemic, while the wider Bloomberg Galaxy Crypto Index tracking the largest digital currencies is up about 280% as rival coins such as Ether have also rallied.

3. Slow Vaccine Campaign Raises Doubts of U.S. Dysfunction

U.S. health officials acknowledged that a Covid-19 immunization campaign is crawling out of the starting gate, raising the prospect that the nation’s all-in bet on vaccines could be afflicted by the same dysfunction that hobbled other measures to contain the pandemic. Only about 2.7 million Americans had been vaccinated as of Wednesday evening in New York. With one day remaining in the year, that represented roughly 13.5% of the U.S.’s stated goal of immunizing 20 million Americans by the end of 2020 — a number already repeatedly reduced. The task of delivering shots that could end a pandemic that has killed 341,000 U.S. residents is taxing a largely private medical system designed to maximize profit rather than deliver public health. Governments and institutions are struggling with complex logistics to keep the shots cold, organizing cohorts of people to receive them and persuading those made sceptical by a flood of online disinformation.

4. Homebuyers in the U.S. Face Worst Affordability Squeeze in 12 Years

Record-low mortgage rates were supposed to make it easier for homebuyers. Instead, they’ve helped push affordability to a 12-year low. Buyers in the fourth quarter needed to spend almost 30% of the average wage to afford a typical house, the biggest share for any three-month period since 2008. Low borrowing costs, now below 3% for a 30-year loan, have spurred a buying frenzy, driving up prices across the country as shoppers compete for a shrinking supply of listings. During the pandemic, prices have increased faster than earnings, leaping by double digits in 79% of the 499 counties included in the report. More than half of those counties are now less affordable than their historic averages.

5. Gold Heads for Best Year in a Decade With Dollar on the Ropes

Gold is set for the biggest annual advance in a decade after a tumultuous year, with gains this month aided by the dollar’s decline to the lowest level since April 2018. Bullion hit a record in August as investors feared an unprecedented wave of stimulus by central banks and governments would lead to currency debasement and inflation. Holdings in bullion-backed exchange-traded funds set an all-time high in October. While prices dropped as the roll-out of vaccines injected optimism into financial markets, the dollar’s continued weakness has helped support gold into the year-end.

6. U.K. Tells Public to Stay Home for New Year’s Eve Celebrations

Everyone in England should stay at home when they celebrate the New Year on Thursday night, the U.K. government said. People were asked to act as if they have Covid-19 to avoid spreading the virus. The advice is universal and applies to everyone regardless of which of England’s pandemic restriction tiers their region is in. The advice coincides with new rules putting 78% of the country’s population in the strictest tier 4 pandemic curbs, banning almost all household mixing and closing non-essential shops. While ministers say the rollout of vaccines will allow the country to start getting back normal by spring 2021, they have also warned the weeks ahead may be the hardest yet.

7. Bubble Tea Chain Naixue Raises New Funds at $2 Billion Value

The owner of bubble tea chain Nayuki, also known as Naixue’s Tea in Chinese, has completed a new funding round that values the company at nearly $2 billion. Shenzhen Pindao Restaurant Management Co. has raised more than $100 million in a Series C funding round led by private equity firm PAG. Billionaire Jack Ma’s Yunfeng Capital is also among the investors in the latest round. The bubble tea chain owner is considering an initial public offering in Hong Kong after the coronavirus outbreak clouded its earlier plans for a U.S. listing. The firm will spend the fresh funds on product research and supply chain digitization, while it has no IPO plan in the near term.

8. Tokyo Sets New Case Record; New Strain Spreads: Virus Update

Global deaths from Covid-19 passed 18 lakh. Tokyo recorded a record number of new infections, and Japan warned it could consider a state of emergency if the new outbreak can’t be contained. Cities that had gone weeks without new infections, including Beijing and Melbourne, are now reporting clusters, and the new, highly transmissible virus strain was found in Singapore and California. Countries around the world tightened border controls. The EU said it would bar travellers from the U.K. after Britain’s official exit on Jan. 1. Travel between Sydney and Melbourne will be blocked as of Jan. 2; both cities are seeing a resurgence in cases. Chinese authorities are urging people to stay home during the Lunar New Year holidays, which begin Feb. 11.

9. Putin Battles to Sell Russia’s Vaccine in New Rift With West

Russia is accusing the West of maligning its achievements in the global race to defeat Covid-19 as attempts to win key markets for its Sputnik V vaccine run up against the demands of regulators. Like neighbouring China, which is struggling to reassure nations testing its vaccines, Russia’s drive to convert what it calls a scientific triumph into geopolitical dividends has hit unexpected headwinds. President Vladimir Putin has pushed the inoculation in calls with other world leaders since touting Russia’s approval of Sputnik V in August as the globe’s first Covid-19 vaccine. But many countries’ regulators have been unwilling to give Sputnik V fast-track approval — even as they welcome U.S. and European vaccines that first completed comprehensive trials.

10. Ambani is no longer Asia’s richest man

Zhong Shanshan is a private billionaire who’s rarely quoted in the press. Now, after an improbable career spanning journalism, mushroom farming and health care, he’s become Asia’s richest person, eclipsing India’s Mukesh Ambani and a group of Chinese tech titans including Jack Ma. Zhong’s net worth has surged $70.9 billion this year to $77.8 billion, making him the 11th-richest person on the planet, according to the Bloomberg Billionaires Index. It’s one of the fastest accumulations of wealth in history, and all the more remarkable considering that until this year he was little known outside of China. Zhong, 66, isn’t involved in politics and his business interests aren’t entwined with other rich families such as the property tycoons, which is why he’s known locally as the “Lone Wolf.” He owes his success to two unrelated fields. He took vaccine maker Beijing Wantai Biological Pharmacy Enterprise Co public in April, then months later Nongfu Spring Co, a maker of bottled water, became one of Hong Kong’s hottest listings. Nongfu shares have jumped 155% since their debut, and Wantai’s are up more than 2,000%.

HAPPY NEW YEAR, READERS!

Categories
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!

Categories
Market News Top 10 News Top Global News

U.S. Passes $900 Billion Stimulus Package – Top 10 Global News

1. European Stocks Bounce Back as Dollar Advances

Stocks rebounded in Europe after their biggest drop in almost two months as Brexit talks continued and the U.S. Senate passed a coronavirus relief bill. The Stoxx 600 Index climbed as cyclicals staged a comeback following an outbreak of a new strain of the virus and a slew of lockdowns and travel curbs to contain it. Banks and retailers led gains. An 11th-hour proposal by U.K. Prime Minister Boris Johnson to secure a free-trade deal with the European Union was rejected, two officials said, deepening the slump in the pound. The island nation looks increasingly isolated with key transport links frozen to curb the spread of the variant virus taking hold in the U.K.

Futures on the S&P 500 Index climbed 0.2% as of early morning New York time.

The Stoxx Europe 600 Index jumped 0.8%.

The MSCI Asia Pacific Index decreased 0.9%.

The MSCI Emerging Market Index dipped 0.4%.

2. Massive Package of Virus Relief, Federal Funding Passes Congress

Congress passed a $2.3 trillion bill, the second-biggest economic rescue package in U.S. history as part of a massive year-end spending bill, concluding months of discord between Democrats and Republicans over how to address the pandemic that continues to surge across the country. In addition to funding government operations for the rest of the fiscal year, the legislation will provide aid for small businesses, supplemental unemployment benefits and $600 stimulus payments to most Americans and their children starting as soon as next week. It also includes money for schools, airlines and for distribution of vaccines.

3. S&P 500 Slumps Monday on Virus Angst After European Rout

U.S. stocks slumped, joining a global decline as a new variant of the coronavirus in the U.K. and a wave of lockdowns and travel restrictions damped spirits. The S&P 500 Index dipped about 0.4%, dragged lower by losses for Tesla, which fell more than 6% on its first day after being added to the U.S. benchmark. The weakness in U.S. markets was minor compared to the rout seen in Europe, where the Stoxx 600 Index slumped the most since October as Italy, the Netherlands, Belgium and France closed their borders to the U.K. Travel and leisure stocks were hard hit.

4. BioNTech CEO Confident Vaccine Will Work on U.K. Covid-19 Variant

German pharmaceutical company BioNTech is confident that its coronavirus vaccine works against the new UK variant, but further studies are needed to be completely sure, its chief executive said Tuesday. The variant, detected mainly in London and the southeast of England in recent weeks, has sparked concern worldwide because of signs that it may spread more easily. While there is no indication it causes more serious illness, numerous countries in Europe and beyond have restricted travel from the UK as a result. CEO Ugur Sahin told a news conference the day after the vaccine was approved for use in the European Union that the immune response by this vaccine scientifically also can deal with the new virus variants.”

5. Airbus Warns of $5 Billion in Lost Orders on AirAsia X Debt Plan

European plane-maker Airbus SE believes it may lose more than $5 billion of aircraft orders under struggling airline AirAsia X’s restructuring plans. Airbus Asia Pacific President Anand Stanley said in the court filing there’s a “strong possibility that Airbus will suffer substantial losses and prejudice” under the proposed restructuring plan for the Malaysian long-haul budget carrier. Airbus has already built or substantially built seven A330neos for AirAsia X and there are a further 71 of the wide-bodies on order, according to the filing. AirAsia X has also failed to pay $301.2 million in pre-delivery payments for its A330neo orders plus $2.5 million on A321XLR narrow-body jets.

6. U.K. Deficit Hits $323 Billion With Economy Facing Recession

U.K. government borrowing climbed to a record $323 billion in the first eight months of the fiscal year, reflecting the damage inflicted on an economy now at risk of falling back into recession. In November alone, spending exceeded tax revenue amid the escalating cost of supporting firms and households through the pandemic. It leaves Britain facing its largest ever peacetime budget deficit. Separate figures confirmed the economy rebounded strongly in the third quarter. But a contraction is expected this quarter, and hopes of recovery early next year are fading after the government tightened restrictions to combat a mutated coronavirus and several European countries banned entry from Britain.

7. EU Rebuffs Boris Johnson’s Latest Brexit Concession on Fish

The European Union rebuffed Prime Minister Boris Johnson’s latest concessions on fishing rights, dealing a setback to efforts to secure a post-Brexit trade deal. Johnson spoke with Commission President Ursula von der Leyen twice by phone on Monday to try and break the deadlocked negotiations. The U.K. made an offer that would see the value of the fish EU boats catch in British waters shrink by 30%, a substantially smaller drop than the 60% it was demanding last week. The bloc, however, refused to accept a reduction of more than 25%, saying even that was hard for countries like France and Denmark to accept.

8. Oil’s Slump Deepens as New Virus Strain Threatens Fuel Demand

Oil extended this week’s slump on fears that rising virus infections and a faster-spreading strain will inflict a new blow on fuel consumption. Futures are down more than 3% in New York since Friday’s close. Many countries have suspended travel with the U.K., where a new Covid-19 variant is forcing more than 1.6 crore people to stay at home. A resurgence of the virus gathered pace in Asia, with Taiwan recording its first locally transmitted infection since April and a cluster of cases swelling in Sydney.

9. Hang Seng Proposes Major Overhaul of Hong Kong Stock Index

Hang Seng Indexes is considering wide-ranging changes to Hong Kong’s stock benchmark that would dilute the influence of its largest companies. The five proposals include maintaining “a certain number of constituents classified as Hong Kong companies,” according to a 16-page consultation paper released Tuesday. Hang Seng is also considering increasing the number of companies to between 65 and 80, as well as capping weightings at 8% and fast-tracking new listings. The index currently has 52 members with weights limited to 10%. The sweeping proposal comes amid significant changes within the city’s stock market, as a wave of Chinese mega-caps chooses the financial hub as a preferred venue to sell shares.

10. World’s Longest Virus-Free Streak Ends With New Taiwan Case

The first locally transmitted case of Covid-19 in more than eight months was reported in Taiwan, ending what was the world’s longest stretch without a domestic infection and providing a reminder of the virus’s ability to outfox even the most successful efforts to contain it. A 30-year-old woman was confirmed to have caught Covid-19 in Taiwan, Health Minister Chen Shih-chung said at a briefing in Taipei Tuesday. While it has seen cases in travellers arriving from outside, Taiwan’s last infection within the community was April 12. The woman came into repeated contact between Dec. 7 and Dec. 12 with a pilot from New Zealand who had caught Covid-19 in the U.S. before travelling to Taiwan, according to Chen.