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Oil Prices Hit $70 A Barrel – Top 10 Global News

1. Nasdaq Leads Surge in Futures as Bonds Rebound

Contracts on the tech-centric Nasdaq 100 rose 2.2% while those on the S&P 500 advanced 0.9%. Markets have been gripped by volatility in tech stocks this week and the Nasdaq 100 has fallen 11% from an all-time high. Investors will be closely watching Treasury sales in the coming days, with the U.S. planning three debt auctions totalling $120 billion. The sales will test appetite for the safest debt after last month’s poorly bid auctions sent shockwaves throughout global markets and short bets climbed to a record. Benchmark 10-year yields traded sharply lower after breaching the 1.6% level to trade at a one-year high last week.

Futures on the S&P 500 Index advanced 0.9% as of 8:30 a.m. New York time.

The Stoxx Europe 600 Index gained 0.5%.

The MSCI Asia Pacific Index increased by 0.4%.

The MSCI Emerging Market Index decreased by 0.2%.

2. Worst-Performing Asia Stock Index Turns Winner on Value Love

Singapore could be the biggest comeback story for Asian equities this year. After becoming the region’s worst performer in 2020 following a 12% slump, the Straits Times Index has surged 9.3% to trounce all other major Asian benchmarks so far this year. That’s come in the wake of a tech rout that saw the Nasdaq 100 enter a correction amid rising U.S. Treasury yields. Singapore’s market revival echoes the global trend of value investing as investors bet on an economic rebound. The island nation’s market is dominated by old economy shares, with more than 80% of the index made up of cyclical stocks without technology and communication services — among the highest contributions in Asia.

3. Bitcoin Hits Highest Level in Two Weeks as Big-Money Bets Flow

Bitcoin rallied to a two-week high, with prices hovering near $54,000 as the digital currency rides a wave of investor demand for crypto assets. The token rose 3.8% to $53,850 in early U.S. trading on Tuesday. While high-flying bets like Tesla and the ARK Innovation ETF have cratered recently, Bitcoin has steadily climbed on news of more institutional involvement in crypto. The narrative that longer-term investors such as family offices, insurers and corporate treasurers are adding exposure to tokens is controversial but gaining traction. Goldman Sachs Group recently said it’s seeing substantial demand from institutions as it works to restart its cryptocurrency trading desk.

4. China’s $1 Trillion Stock Rout Tests Limit of State Intervention

A world-beating rally in Chinese stocks has turned into the biggest rout globally, shocking investors with the severity of its reversal and evading state efforts to slow the pace of losses. In just 14 trading days, the nation’s benchmark CSI 300 Index has plummeted 14% from a 13-year high. That compares with a 3.3% drop by the MSCI All-Country World Index. The plunge has wiped out more than $1 trillion of value and hammered the holdings of retail investors who piled in at the peak, betting that the new lunar year of the Ox, or bull, would be auspicious. State intervention on Tuesday briefly arrested the tumble, before losses resumed.

5. Pfizer-BioNTech Covid Shot Neutralizes Brazilian Strain in Lab

The Covid-19 vaccine from Pfizer and BioNTech showed a high ability to neutralize coronavirus strains first detected in Brazil, the U.K. and South Africa. In lab experiments, the shot demonstrated “roughly equivalent” levels of neutralizing activity against the Brazil and U.K. strains compared with a version of the virus from early last year. It also showed “robust but lower” activity against the South Africa variant. While the research needs to be validated with real-world data, it offers another reason for optimism that the Covid vaccines are generally performing well against variants of the virus. 

6. Oil Flirting With $70 Challenges World’s Economic Recovery

The spike in oil prices has focused attention on how the steady rise in energy costs is threatening to create a drag on the global economic recovery and stoking fears of inflation. After surging more than 30% this year on coordinated supply constraints by major exporters and demand returning from the depths of the Covid-19 crisis, a missile attack Sunday on a key Saudi Arabian export facility sent Brent crude, the international benchmark, above $70 a barrel for the first time since January 2020. While prices have since pulled back, the impact on inflation and the overall global recovery depends on how sustained the underlying rally proves to be. For economists, the cause of higher prices is what matters, rather than the price itself. Rising energy costs on the back of strong demand normally indicate robust and resilient growth, while a surge from crimped supply could weigh on a recovery.

7. Haunted by 2008, China and U.S. Diverge on Stimulus Plans

The U.S. and China are pursuing divergent economic policies in the aftermath of the coronavirus recession in a role reversal from the last time the world economy was recovering from a shock. One of the takeaways from the annual National People’s Congress underway in Beijing is a conservative growth goal, with a tighter fiscal deficit target and restrained monetary settings. That’s a big contrast with Washington, where President Joe Biden is preparing a second major fiscal package after he gets final approval for his $1.9 trillion stimuli. The widening policy divergence is putting strains on exchange rates and could potentially reshape global capital flows. It stems, in part, from different policy lessons from the 2007-09 crisis.

8. Hedge Fund Investors Rush for Private Deals With IPOs Surging

Investors are increasingly betting on private markets — and they want to use hedge funds to do so. Private markets equities have emerged as the strategy most in-demand among non-traditional offerings from hedge funds. The appetite for growth and venture capital investments is increasing as private companies and unicorns become a larger part of the capital markets ecosystem.  More than half of the investors surveyed said they are now using hedge funds to access private markets. That figure rises to more than 70% for family offices, endowments and foundations.

9. Biden Faces Tougher Obstacles for Broad Relief Bill Sequel

President Joe Biden’s soon-to-be-unveiled longer-term economic stimulus package is set for far tougher obstacles in Congress than the pandemic-relief bill that’s on the verge of squeaking through without a single Republican’s backing. The “build back better” program that the White House says will be announced after Biden signs the $1.9 trillion aid bill — heading for final passage as soon as Tuesday — will be far more expansive than its predecessor. Biden has the same three options as for his first package: go without the GOP on a bill that’s as expansive as moderate Democrats and Senate rules will allow, dramatically scale back ambitions to lure at least 10 Senate Republicans, or split the program up and pursue a combination of approaches.

10. Carlyle-Backed China Biotech Firm Plans Hong Kong IPO

Abbisko Therapeutics, an oncology-focused Chinese biotech company, is planning a Hong Kong initial public offering that could raise about $250 million. Abbisko, which is backed by investors including Carlyle Group and Warburg Pincus, is working with advisers on the offering. The company aims to list as soon as this year. The Shanghai-based company joins a growing wave of health-care and biotech firms listing in Hong Kong after a record year for share sales in the sector. So far this year seven health-care companies have debuted in the city, raising a combined $2.1 billion. Abbisko raised $123 million in a Series D funding round in January which was led by Carlyle, Warburg, OrbiMed Advisors and Lake Bleu Capital. That brought its total fundraising to $263 million.

Curated from Bloomberg.com

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NASDAQ Hits Two-Month Low – Top 10 Global News

1. Nasdaq Sinks to Two-Month Low as Bond Yields Jump

The renewed bout of Treasury volatility spurred a surge in bond yields on Wednesday, dragging down stocks as investors grappled with concern overstretched valuations. A selloff in high-flying giants such as Apple and Amazon.com outweighed gains in banks and energy producers. The Nasdaq 100 slumped to a two-month low, bringing its losses from a February peak to about 8%. The S&P 500 extended its slide into a second day, while the Dow Jones Industrial Average outperformed. Benchmark U.S. government yields approached 1.5%, with bonds pricing in the highest five-year inflation expectations since 2008. 

The S&P 500 slid 1.3% as of 4 p.m. New York time.

The Stoxx Europe 600 Index was little changed.

The MSCI Asia Pacific Index increased by 1.1%.

The MSCI Emerging Market Index advanced 1.4%.

2. Senate Final Vote on U.S. Stimulus Likely Pushed Into Weekend

The Senate enters the final stages of debating President Joe Biden’s $1.9 trillion pandemic relief bill on Thursday, with passage in the chamber likely pushed off until the weekend. Senate Majority Leader Chuck Schumer had planned to kick off the process Wednesday night but lacked an official cost estimate on the latest version of the bill, which has been trimmed down from the House-passed measure. In addition to stripping out a minimum-wage increase to comply with Senate rules, Biden agreed to moderate Democrats’ demands for tightening eligibility for $1,400 stimulus checks.

3. Initial Claims for U.S. Jobless Benefits Rose Slightly Last Week

Applications for U.S. state unemployment insurance rose slightly last week, underscoring the pandemic’s lingering restraint on the labour market recovery. Initial jobless claims in regular state programs totalled 745,000 in the week ended Feb. 27, up 9,000 from the prior week. The latest data underscore a labour market still in the grips of a health crisis that’s reducing economic activity across many industries. At the same time, infection rates are declining and more Americans are getting vaccinated against Covid-19, suggesting fewer layoffs in coming months as the economy picks up steam.

4. Brexit Antagonism Escalates as EU, U.K. Go Another Round

When the U.K. and European Union shook hands on a trade deal late last year, few expected the new relationship to be plain sailing. Among the most sensitive issue is Northern Ireland, and tensions ramped up considerably this week when the U.K. announced it will ignore some crucial obligations under the Brexit deal and the EU responded with a dramatic threat of legal action. With Johnson already under pressure from members of his own party to rip up the Northern Ireland deal, the risk is a further escalation that erodes relations. That could have spillovers far beyond politics, and the ongoing saga is a frustration for business. The U.K.’s huge finance industry, for example, is seeing the potential for beneficial trade agreements being slowly whittled away by endless political spats.

5. China Moves to Curb Hong Kong Opposition’s Role in Elections

Chinese lawmakers will advance a proposal to overhaul Hong Kong’s electoral system, pushing ahead with a controversial plan to limit the opposition’s ability to win public office in the Asian financial centre. The National People’s Congress will review a draft resolution on “improving Hong Kong’s electoral system” in the coming days, according to an agenda published Thursday. The rubber-stamp parliament is slated to begin a week-long series of annual meetings Friday in Beijing, meaning the measure could pass as soon as next week. The action is the latest step by Chinese President Xi Jinping’s government to curb dissent in the former British colony following historically large and sometimes violent pro-democracy protests in 2019.

6. ByteDance Said to Invest in Chinese Self-Driving Startup QCraft

Chinese social media titan ByteDance Ltd. is investing in local autonomous driving startup QCraft, another sign of the blurring of boundaries between car companies and Big Tech. The owner of Tiktok is investing in QCraft’s latest fundraising round of at least $25 million, said the people. QCraft’s technology is being trialled in minibuses in parts of China. The deal, which may be announced as early as next week, follows a spate of similar investments and tie-ups between technology firms and car manufacturers, particularly in China. Both conventional and electric automakers are rushing to gain an edge as features like autonomous driving and smart-mobility solutions transform vehicles.

7. Singapore Won’t Allow New Diesel Cars and Cabs From 2025

Singapore won’t allow diesel-powered cars and taxis to be registered from 2025, five years ahead of previously scheduled, as part of its push to reduce emissions and encourage the adoption of electric vehicles. About 2.9% of passenger cars in Singapore run on diesel, while the proportion is as high as 41.5% for taxis, according to Land Transport Authority figures. Most goods vehicles and buses in the city-state run on diesel and won’t be affected by the new rule, announced Thursday by the government.

8. Germany To Lift Debt Spending to Help Tackle Virus

Finance Minister Olaf Scholz said Germany will need to increase debt spending this year to help tackle the impact of the coronavirus crisis on Europe’s largest economy. Merkel’s administration will present its 2022 budget proposal and a medium-term financing plan on March 24. The final decision on public spending beyond this year will be left to the new parliament after September’s elections. The government will likely have to spend aggressively next year as well. Scholz, who is running for chancellor for the Social Democrats, plans to propose a draft 2022 budget that will call for suspending constitutional borrowing limits for a third straight year.

9. Brazil Reports Record Deaths; N.Y. Eases Limits: Virus Update

For the second consecutive day, Brazil reported a record number of deaths from the coronavirus. AstraZeneca’s and Pfizer’s vaccines protected the elderly after a single dose in a new study that validates giving both shots to older people and spacing out injections. An experimental vaccine developed by India’s Bharat Biotech showed 81% efficacy in an interim clinical trial. U.K. Chancellor of the Exchequer Rishi Sunak extended emergency tax cuts to help the British economy recover but warned he will ask profitable businesses to shoulder some of the bills for the country’s pandemic support.

10. Dubai Risks Driving Out Investors as Public Companies Delist

Betting on Dubai to deliver uninterrupted success as a tourism and entertainment hub is turning into a costly business for some stock investors. For the second time in less than three months, one of the emirate’s leading companies said it will effectively delist one of its units for about two-thirds of its original public-offering price. Emaar Properties, which built the city’s iconic Burj Khalifa tower, announced Tuesday it plans to buy back a 15% stake in its Emaar Malls unit at a 36% discount to the 2.9 dirhams a share at which it sold it in 2014. The move has a number of repercussions for a market that’s struggling to sustain interest following a pandemic-triggered selloff last year that was exacerbated by Dubai’s status as a global travel hub.

Curated from Bloomberg.com

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$2 Trillion to Move Out of London on Brexit – Top 10 Global News

1. Stocks, Yields Fall as Reflation Trade Sputters

European stocks followed Asian shares and U.S. futures lower on Friday as President-elect Joe Biden’s much-anticipated $1.9 trillion Covid-19 relief plan came under scrutiny. The dollar pushed higher and Treasury yields dropped. Energy firms and miners led declines in the Stoxx 600 Index. Optimism about the U.S. aid package had helped spur the reflation trade, but the plan is far from a done deal. Biden’s proposal could be watered down under Congressional opposition, and there’s the possibility that some taxes could rise.

Futures on the S&P 500 Index decreased 0.2% as of 10am London time.

The Stoxx Europe 600 Index dipped 0.3%.

The MSCI Asia Pacific Index fell 0.5%.

The MSCI Emerging Market Index dipped 0.4%.

2. Biden Seeks $1.9 Trillion for Relief in First Economic Plan

President-elect Joe Biden will ask Congress for $1.9 trillion to fund immediate relief for the pandemic-wracked U.S. economy, a package that risks swift Republican opposition over big-ticket spending on Democratic priorities including aid to state and local governments. “We have to act and we have to act now,” Biden said Thursday night in Wilmington, Delaware. He said he would lay out a second, broader economic recovery plan next month at a joint session of Congress next month. That initiative will include money for longer-term development goals such as infrastructure and climate change.

3. Oil Retreats From 10-Month High as Stronger Dollar Dents Rally

Oil declined from a 10-month high as the dollar strengthened, taking the steam out of a recent rally, while investors assessed what impact a potential U.S. stimulus package will have on driving fuel demand higher. Futures in New York slid 1.6% to trade near $53 a barrel as a stronger dollar reduced the appeal of raw materials like oil that are priced in the currency. Covid-19 vaccine breakthroughs and a recent pledge by Saudi Arabia to deepen output cuts have driven oil 50% higher since the end of October.

4. London Fund Managers See Post-EU Threat to $2 Trillion Business

As the European Union weighs tighter rules on outsourcing key functions such as stock-picking, there’s a risk that management of some assets could be forced out of London, putting another dent in the city’s status as a global financial centre. Firms in the U.K. handle about 1.4 trillion pounds ($1.9 trillion) for hedge and mutual funds in the EU’s main hubs of Ireland and Luxembourg — nearly half of all fund money managed in Britain. The trade deal reached at the end of last year largely ignored financial services, and said nothing about this kind of outsourcing, known as delegation. Curbing this practice would impact the entire fund-management industry, disrupting their long-standing business model and forcing them to move teams responsible for managing EU funds into the bloc.

5. Global Deaths Near 2 Million; Germany Record Surge: Virus Update

The world’s about to hit a frightening Covid-19 benchmark, with 2 million people dead and few expectations for infections to start dropping any time soon. The U.S. is leading all countries in deaths, with Brazil, India, Mexico and the U.K. next in line. President-elect Joe Biden has called U.S. vaccine efforts a “dismal failure” and vowed to accelerate them. In Germany, Chancellor Angela Merkel wants to tighten the lockdown as the country reported a record number of daily virus deaths. China’s northeastern Covid clusters are growing as an outbreak expands to at least eight other provinces.

6. Brexit Driving Top Dealmakers Out of London and Into the EU

The new rules for the bankers who made London the financial capital of Europe are still uncertain after Brexit, but one outcome is already clear: a stream of dealmakers across the English Channel. While thousands of traders and salespeople have already made the move, the next wave is likely to include the high-flyers who advise on strategy, mergers and capital raising, say more than a dozen officials at global institutions. Goldman Sachs Group Inc., for one, is moving senior investment bankers out of London to the continent. The prospect of losing a highly paid cadre of taxpayers is particularly bad news for the U.K. since it relies so much on financial services for revenue. The industry employs more than one million people, makes up about 7% of the economy, and accounts for more than a 10th of all tax revenue.

7. Insurers Face Covid Payouts as Appeal of Court Ruling Fails

Insurers lost a last-ditch attempt to dodge payouts to thousands of small businesses that were forced to close during the lockdown, as the U.K.’s top court ruled in favour of policyholders in a dispute over Covid-19 claims. The U.K. Supreme Court ruled Friday that policies sold by six firms cover losses sustained when businesses were shut down to help slow the spread of the outbreak. The firms had appealed a lower-court decision in September that found some policies in a test case brought by the U.K.’s top markets regulator should payout. The Supreme Court substantially allowed the appeals brought by the Financial Conduct Authority and substantially dismissed the appeals brought by the insurers.

8. China Central Bank Says Ant Is Working on Timetable for Overhaul

China’s central bank said Ant Group is working on a timetable to overhaul its business while ensuring operations continue, offering little clue on how far the financial technology giant needs to go to assuage Beijing. Regulators are in close contact with the special team at Ant that’s drafting plans and a timetable to rectify its operations, People’s Bank of China Deputy Governor Chen Yulu said at a regular briefing on Friday. The message underscores China’s determination to rein in billionaire Jack Ma’s sprawling business. Global investors have been seeking signs on what the future holds for the world’s largest fintech firm since the government abruptly halted Ant’s $35 billion initial public offering in November.

9. Tencent-backed Yidu Tech Surges 148% in Hong Kong Debut

Yidu Tech Inc., which offers artificial intelligence and big data products to the health-care industry, saw its shares jump 148% in its Hong Kong debut after a HK$4.12 billion ($531 million) initial public offering that met with overwhelming demand from investors. Yidu Tech shares closed at HK$65.2, after rising as high as HK$69.8, a massive jump from the IPO price of HK$26.30. The opening performance is the third-best for a Hong Kong IPO raising over $500 million.

10. Hong Kong Exodus Could Spur $36 Billion in Outflows

Hong Kong could see capital outflows of as much as $36 billion this year as residents leave the city for the U.K. in response to China’s sweeping security law, keeping the local dollar off the strong end of its trading band with the US dollar. More than two-thirds of the city’s population would be eligible for a path to British citizenship, according to the U.K government, which has offered the immigration route in its response to the law that was rapidly enacted in the former British colony last summer. The route is due to officially open at the end of this month. This year 153,300 people could relocate to Britain.

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Human-Run Funds Beat Quant Funds in 2020 – Top 10 Global News

1. U.S. Stocks Rise on Vaccine Optimism; Dollar Falls

U.S. stocks climbed as vaccine progress boosted optimism in one of the final trading sessions of 2020. The dollar continued its slide, weakening to the lowest in 2 1/2 years. Energy shares were among the best performers in S&P 500 Index. Travel and leisure companies advanced in Europe after the U.K. approved a coronavirus shot by AstraZeneca and the University of Oxford. Volumes were light during the holiday week, with the Stoxx 600 Index seeing about half of the usual activity as it edged lower. Bitcoin extended its record-breaking rally, trading near $28,000.

The S&P 500 Index gained 0.4% as of 10 a.m. in New York.

The Stoxx Europe 600 Index slipped 0.1%.

The MSCI Emerging Market Index climbed 1.5%.

2. AstraZeneca-Oxford Covid Vaccine Gains First Clearance With U.K. Nod

AstraZeneca and the University of Oxford’s Covid-19 vaccine won U.K. clearance, marking the first approval worldwide for a shot that will be key to mass immunizations despite continuing questions over its efficacy. The vaccine will be prioritized for the country’s most vulnerable groups, with shots starting Monday, according to the government. It’s the second coronavirus injection to be cleared for emergency use in the U.K. after one from Pfizer and BioNTech was authorized in early December. The move will help the U.K. ramp up vaccinations as a surge in coronavirus infections that’s fueled by a new strain puts growing pressure on hospitals.

3. Human-Run Hedge Funds Trounce Quants in Covid Year

After years of being outgunned and outclassed by computer-driven quantitative strategies, human stock-pickers climbed back on top in 2020, helped by aggressive bets in technology and the flood of central bank money that buoyed markets. The dizzying gyrations of the pandemic-stricken year humbled even the most sophisticated of quants — notably behemoths Renaissance Technologies and Two Sigma — whose trading models were thrown off by swings their computers had never seen before. Overall, human-run funds put up some of their best numbers in a decade, with several boldfaced names, including Tiger, Coatue and D1, posting returns in excess of 35%. Whether by luck or by skill, they showed that in this most unusual of years, stock-pickers could still stand up to the seemingly inexorable rise of the machines.

4. England Faces Wider Lockdown in Race to Control New Strain

More areas of England are set to be placed under lockdown, as the new coronavirus strain puts growing pressure on hospitals. People living in London, Essex and Kent should behave as if they have Covid-19, Health Secretary Matt Hancock said in an interview with LBC radio on Wednesday. The spread of the new variant means more parts of the country will be placed under toughest tier 4 lockdown restrictions, Hancock said. He will set out details in a statement to Parliament on Wednesday afternoon. His comments come amid growing fears the National Health Service is at risk of being overwhelmed after the U.K. reported more than 50,000 new cases on Tuesday, the highest daily figure since the start of the pandemic. The number of people being treated in the hospital for coronavirus already exceeds the peak recorded during the first wave of infections in spring.

5. Republicans Rebuff Trump, Democrats by Blocking $2,000 Checks

Senate Majority Leader Mitch McConnell on Tuesday blocked an attempt by Democrats to force quick action increasing direct stimulus payments to $2,000 as President Donald Trump warned that failing to act now amounted to a “death wish” by Republicans. McConnell objected to a motion by Senate Minority Leader Chuck Schumer to approve by unanimous consent a stimulus-checks bill that passed the House on Monday. He also blocked a motion by Senator Bernie Sanders of Vermont to vote on the stimulus checks immediately after the Senate votes on overriding Trump’s veto of a key defence policy bill.

6. Johnson’s Brexit Deal Clears Its First Parliamentary Hurdle

Boris Johnson’s Brexit deal cleared the House of Commons, putting the U.K.’s trade agreement with the European Union on course to become law within hours. Members of parliament voted 521 to 73 to approve the accord after they were recalled from their Christmas break for an emergency session on Wednesday. The House of Lords, the unelected upper chamber, will vote on the legislation later in the evening. With the main opposition Labour Party backing the bill, the legislation is almost certain to become law in a single day, 24 hours before the U.K. leaves the EU’s single market and customs union.

7. U.S.’s First Case of U.K. Mutation Sparks Search for Source

A 20-something man from Colorado is the first American known to be infected with a new variant of coronavirus that emerged this fall in the U.K., raising concern that a more transmissible strain could spread widely across the country. The Colorado State Laboratory confirmed the patient had the mutated form of the virus, known as B.1.1.7, and informed the U.S. Centers for Disease Control and Prevention. The infected man has no recent travel history, challenging health officials to find the possible source of infection and identify others who may be at risk. He is currently in isolation in Elbert County, located halfway between Denver and Colorado Springs.

8. EU, China Give Political Nod to Market-Opening Investment Pact

The European Union and China announced the political approval of an agreement to open the Chinese market further to EU investors, marking a major step in talks that began in 2013. The breakthrough in negotiations on an EU-China investment deal signals the bloc’s determination to focus on economic opportunities in Asia even amid criticism of Beijing’s record on human rights. The accord could enter into force in early 2022. For the EU, the deal risks irking the incoming U.S. administration, which has urged the Europeans to consult with them over China’s economic practices. Failure by the U.S. and EU to forge a common position would give Beijing an advantage as western leaders reassess geopolitical relations in the wake of Donald Trump’s presidency.

9. Pending Sales of U.S. Existing Homes Decline for a Third Month

A gauge of U.S. pending home sales fell for the third consecutive month in November, suggesting higher prices and limited inventory are slowing momentum in the housing market despite record-low borrowing costs. The National Association of Realtors’ index of contract signings to purchase previously owned homes declined 2.6% from the prior month to 125.7, according to data released Tuesday. The drop in the index from the prior month shows more tempered activity in the housing market as prices continue to climb amid lean inventory. Still, the pending sales gauge remains well above pre-pandemic levels, indicating still-elevated demand as buyers seek more space.

10. Qatar Wealth Fund Invests $125 Million in Battery Firm Fluence

Fluence, a global battery storage joint venture of Siemens AG and AES Corp., said it reached an agreement with the sovereign wealth fund of Qatar for a $125 million investment. The funding will give the Qatar Investment Authority a 12% stake in Fluence and values the battery company at more than $1 billion. Siemens and AES will retain a 44% stake each following completion of the deal, the companies said. The global energy storage business is expected to boom in the coming decades as utilities will look to batteries to backstop an increasing amount of intermittent solar and wind power.

Readers!
Thank you for reading the article. Apologies on the slight delay in posting today as I was travelling in the evening with no access to the internet.
Happy New Year!

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China Probes Alibaba over Monopoly – Top 10 Global News

1. U.S. Futures Rise; Pound Gains on Brexit Deal Hope

U.S. futures climbed with European stocks and the pound jumped as investors awaited the unveiling of a post-Brexit trade accord after both sides earlier agreed on an outline of the deal. The Stoxx 600 Index edged higher ahead of an expected press conference from Prime Minister Boris Johnson on Thursday, which was delayed over last-minute haggling. Negotiators worked through the night putting the finishing touches on the historic pact, which will formally complete Britain’s separation from the European Union. The pound rose to the highest in about a week, while the euro was steady. Contracts on the S&P 500 Index nudged higher and most Asian stocks gained. Alibaba Group Holding Ltd. sank more than 8% in Hong Kong after China kicked off an investigation into alleged monopolistic practices at the tech giant.

Futures on the S&P 500 Index rose 0.1% as of early morning New York time.

The Stoxx Europe 600 Index increased 0.2%.

The MSCI Asia Pacific Index rose 0.5%.

The MSCI Emerging Market Index gained 0.4%.

2. GOP Blocks Bid for $2,000 Payments Trump Demanded

House Republicans blocked Democrats’ attempt to meet President Donald Trump’s demand to pay most Americans $2,000 to help weather the coronavirus pandemic. Republicans objected to the bill House Majority Leader Steny Hoyer sought to pass by unanimous consent Thursday to replace the $600 payments in the latest pandemic relief legislation with the $2,000 payments. Democrats will try again with a roll call vote on a new bill Dec. 28, when the House also plans a vote to override Trump’s veto on the National Defense Authorization Act.

3. China Targets Jack Ma’s Alibaba Empire in Monopoly Probe

China kicked off an investigation into alleged monopolistic practices at Alibaba Group Holding Ltd. and summoned affiliate Ant Group Co. to a high-level meeting over financial regulations, escalating scrutiny over the twin pillars of billionaire Jack Ma’s internet empire. The probe announced Thursday marks the formal start of the Communist Party’s crackdown on the crown jewel of Ma’s sprawling dominion, spanning everything from e-commerce to logistics and social media. The pressure on Ma is central to a broader effort to rein in an increasingly influential internet sphere: Draft anti-monopoly rules released November gave the government wide latitude to restrain entrepreneurs who until recently enjoyed unusual freedom to expand their realms.

4. New Virus Strain’s Transmissibility to Cause More Deaths

The mutated coronavirus strain that’s been spreading in the U.K. appears to be more contagious and will likely lead to higher levels of hospitalizations and deaths next year. The variant is 56% more transmissible than other strains. There’s no clear evidence that it results in more or less severe disease. The U.K. government had previously said the mutated variant appears to be as much as 70% more transmissible than other circulating strains. Additionally, it has almost two dozen mutations that may affect proteins made by the coronavirus. That has raised concern that tests, treatments and vaccines that just started rolling out might be less effective, though Europe’s health regulator said the variant probably isn’t different enough from earlier ones to elude Pfizer Inc. and BioNTech SE’s shot. Countries including Australia, Denmark and Singapore have also discovered the strain.

5. Brexit Deal Gets Held Up by Last-Minute Haggling Over Fish

U.K. and European Union negotiators are locked in talks in Brussels over the final details of a historic post-Brexit trade accord, with both sides engaged in last-minute haggling over fishing rights. While the outline terms of the deal, including broad fishing quotas, were agreed on Wednesday, negotiators have hit a last-minute disagreement over the precise number of each species EU boats will be able to catch in U.K. waters. It isn’t clear how long it will now take for the discussions to reach a conclusion. In a sign the deal may only emerge late on Christmas Eve, EU ambassadors, who are required to scrutinize any agreement after it is made public, were stood down on Thursday afternoon and told to make themselves available over the holiday period.

6. China’s Rebound Continues With Exports and Commodities Booming

China’s economic recovery continued in December, underpinned by booming global demand for exports, rising commodity prices and a rallying stock market. China was already pulling further ahead of other major economies in November, with domestic demand growing, foreign investment rising and record export demand propelling growth even as other major nations struggle amid soaring virus cases. With the Communist Party signalling there won’t be a sudden withdrawal of monetary and fiscal assistance, there’s growing confidence for a healthy expansion in 2021.

7. U.K. Strain 56% More Infectious; Israel Locks Down: Virus Update

China said it would pause flights to and from the U.K., which yesterday imposed tougher regulations across a swath of England in an effort to rein in a new strain of coronavirus. A study showed that the variant is 56% more transmissible than other strains, although there’s no clear evidence that it results in more or less severe disease. Pfizer Inc. and partner BioNTech SE will double the supply of their vaccines to the U.S., which said it has administered a total of more than 1 million shots in 10 days. California became the first U.S. state to surpass 2 million infections after a jump in cases. Israel’s cabinet approved a third national lockdown of as long as four weeks.

8. Robinhood Financial Hit With Class-Action Suit for Selling Stock Orders

Robinhood Financial LLC was sued in a proposed class action for allegedly failing to inform clients it was selling their stock orders to trading firms and effectively charging back-door commission fees. The complaint filed Wednesday in San Francisco federal court follows the company’s $65 million settlement last week with the U.S. Securities and Exchange Commission over similar allegations. While Robinhood touted “commission-free” trading on its platform, it didn’t disclose that it relied extensively on “payment for order flow,” collecting payment from market makers in exchange for executing trades, according to the suit.

9. Turkey Central Banker Tightens Again in Boost to Credibility

Turkey’s central bank governor delivered another meaty interest-rate hike, bolstering credibility with investors after he pledged to tighten policy when needed to keep prices in check. The Monetary Policy Committee led by Governor Naci Agbal lifted the one-week repo rate to 17% from 15% on Thursday. The lira extended gains against the dollar and was trading 0.9% higher. The Borsa Istanbul 100 Index of equities rose as much as 0.8% after the decision. The bank pledged in its rates decision to maintain a tight stance until it sees “a permanent fall in inflation,” citing risks from a weak lira, domestic demand and commodity prices including food costs.

10. Dover Truck Backups Persist on Christmas Eve Despite Progress

The U.K.’s main trucking gateway to the European Union remained backed up for the fifth day, despite progress moving traffic through the Port of Dover. Thousands of truckers were stuck in logjams around Britain’s busiest ferry port on Christmas Eve, separated from families, many as far away as Poland. Some 4,000 trucks alone were crowded onto the site of Manston Airport, a disused airfield in Kent being used to conduct Covid-19 testing required before they can board ferries to Calais, France. Some 170 military personnel tested truckers overnight, enabling their journeys to continue into Europe. France reopened its borders on Wednesday after a two-day blockade, on the condition that drivers have proof of a negative test.

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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.

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New Covid Strain Shakes Global Markets – Top 10 Global News

1. Stocks, Futures Slump on Virus Curbs; Bonds Rally

Stocks and futures were a sea of red on Monday as a new variant of the coronavirus in the U.K. caused chaos ahead of the Christmas holiday, with regional neighbours suspending travel. Energy and travel shares dragged the Stoxx 600 Index down 2.5% as Italy, the Netherlands, Belgium and France closed their borders to the U.K. The dollar gained the most since June. In the U.S., equity futures pointed to sharp declines at the open even after Congressional leaders reached a deal on spending to support the economy. Losses were concentrated in energy producers and stocks that would benefit from a return to more normal economic activity.  The pound slumped by the most since March as an official said “significant differences” remain in Britain’s trade talks with the European Union. Crude oil fell by more than 3%.

Futures on the S&P 500 Index sank 1.8% as of early morning New York time.

The Stoxx Europe 600 Index sank 2.6%.

The MSCI Asia Pacific Index dipped 0.6%.

The MSCI Emerging Market Index dipped 1.1%.

2. Congress Poised for Vote on $900 Billion Pandemic Relief Plan

The House and Senate are set to vote Monday on a roughly $900 billion pandemic relief bill that would be the second-biggest economic rescue measure in the nation’s history. The aid package will be attached to a $1.4 trillion measure to fund government operations through the end of the fiscal year, and congressional leaders said they expect the legislation to easily pass both chambers. The White House said President Donald Trump would sign it. The deal followed more than a week of furious negotiations sparked by a group of Democratic and Republican senators who drew up their own compromise proposal and urged their leaders to act.

3. Tesla Slides in First Day of Trading on the S&P 500 Index

Tesla’s shares fell as much as 6.4% in premarket trading on its first day after being added to the S&P 500 Index, as the broader market slid and the stock retraced gains from Friday when tens of millions of shares were purchased by index-fund managers. Futures contracts on the S&P 500 plunged 2.5%, following European stocks lower after several major countries moved to suspend travel from the U.K. amid concerns about a new strain of Covid-19. Tesla has catapulted 731% this year in anticipation of the historic inclusion, making it the biggest company ever to be added to the benchmark.

4. Biden Will Inherit a Strong Hand Against Xi, Thanks to Trump

Joe Biden will be sworn in as president after Trump’s administration spent years ramping up pressure on China, including levying tariffs on $370 billion in imports, getting Canada to place a Chinese executive for Huawei Technologies Co. under house arrest, threatening access to U.S. capital markets and blaming the Communist Party for the scale of the Covid-19 outbreak. President Trump’s pressure campaign continued last week, as the administration blacklisted more than 60 Chinese companies, limiting their ability to get U.S. technology, in order “to protect national security”.

5. JPMorgan Says Flows to Into Major Crypto Fund Are Key to Bitcoin’s Outlook

The odds of a Bitcoin correction would increase if the flows into the world’s largest traded cryptocurrency fund slow significantly, according to strategists at JPMorgan Chase & Co. The Grayscale Bitcoin Trust’s assets under management have climbed to $13.1 billion from $2 billion at the start of December last year, amid a tripling in the digital currency’s price so far in 2020. Inflows into the fund are running at about $1 billion per month, the strategists wrote in a note Friday. Bitcoin reached an all-time high of $24,291.38 on Sunday. The cryptocurrency’s backers argue it’s gaining ground among longer-term investors as a hedge against dollar weakness and risks such as higher inflation. Others claim an unsustainable speculative fervour, exacerbated by trend-following quant funds, lies behind much of the rally in Bitcoin and other digital assets.

6. Hong Kong May Consider Unprecedented Virus Curbs, Including Curfews

Unprecedented virus control measures including curfews and shutdowns of non-essential businesses may be considered in Hong Kong, according to a government health adviser, as the city continues to see a high number of locally-transmitted cases and the holiday season looms. Limiting the number of people per household allowed to shop for groceries, shuttering all businesses deemed non-essential and shortening mall operating hours are among the curbs that may have to be imposed to prevent another Covid-19 wave.

7. France Halts U.K. Freight Over Virus Alarm, Rocking Supplies

Britain’s biggest port stopped all traffic heading to Europe, triggering delays to food supplies after the discovery of a new variant of the virus prompted a wave of countries to ban travel from the U.K. The escalating crisis prompted Boris Johnson to convene a meeting of the government’s emergency committee on Monday in a bid to keep goods flowing. The concern is focused on links with France, which suspended inbound travel from the U.K., including freight, for 48 hours starting midnight Sunday. The disruption comes at a critical time for Johnson’s government, which is still negotiating the terms of post-Brexit trade with the European Union. It’s also battling a surge in coronavirus infections which forced ministers to put London and much of southeast England into lockdown over the weekend, heaping more misery on businesses in the critical pre-Christmas period.

8. Pound Plummets as Virus Threatens U.K.’s Supply Chains With EU

The pound had its worst day since the coronavirus roiled global markets in March, as a new strain of the pathogen disrupted the U.K.’s supply chains with Europe. Sterling tumbled 2.5% to as low as $1.3188 as Britain’s biggest port in Dover stopped all traffic heading to the continent, and after another Brexit deadline went past without results. The currency’s one-week implied volatility is the highest for a Christmas period in more than a decade. Expectations of monetary easing by the Bank of England mounted, with money markets bringing forward bets for a 10-basis-point interest-rate cut to September, compared with March 2022 on Friday. Ten-year bonds rallied, with yields slipping as much as nine basis points, and the FTSE 100 share index fell as much as 3.3%. 

9. Saudi Arabia, Oman Suspend Foreign Travel Over Mutant Virus

Saudi Arabia and Oman halted international flights and closed their borders for a week over fears about the fast-spreading new strain of the coronavirus. State-run Saudi Press Agency said the kingdom may extend the suspension for another week depending on the nature of the virus spread. Oman halted passenger traffic through its air, land and seaports for a week starting Tuesday, but freight services are exempt from the ban. The U.K. has warned that the new virus strain is “out of control,” prompting countries including France and Germany to suspend travel from Britain. 

10. Dubai Stocks Fall Most in Seven Months on Travel Worries

Stocks in Dubai slumped the most since May on fears of further travel restrictions after a new variant of the coronavirus was found in the U.K. A travel corridor between Britain and Dubai was expected to help air traffic on the route to climb by a third this month. Any anticipated boost to the city’s struggling tourism sector could also be threatened by several countries including neighbouring Saudi Arabia imposing fresh curbs.

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Global Markets Rally on Vaccine and Aid Hopes – Top 10 Global News

1. Stocks Hold Gains as Lawmakers Debate Over Economic Aid

U.S. stocks held a modest gain that put them at all-time highs after data showing a further slowdown in the labour market stoked bets Congressional leaders will clinch a deal on federal spending. The S&P 500 climbed for a third day as lawmakers continued to negotiate details of almost $900 billion in coronavirus aid. The dollar slumped as weekly jobless claims rose to 885,000 versus an estimate of 818,000. Bitcoin breached $23,000 for the first time. In Europe, cyclical shares such as miners and retailers rose on news that the rollout of a Covid vaccine would begin this month.

The S&P 500 Index advanced 0.5% as of afternoon New York time, the highest on record.

The Dow Jones Industrial Average gained 0.4%.

The Nasdaq Composite Index climbed 0.5%.

2. U.S. Congress Struggles to Finish Economic Stimulus Details

Congressional leaders are working through the final sticking points of a coronavirus relief deal, although the agreement probably won’t come together in time for both chambers to vote before Friday. People briefed on the talks say the draft of the roughly $900 billion proposal includes $600 in payments for individuals, $300-per-week in supplemental unemployment insurance payments and aid for small businesses, as well as about $17 billion for airlines. But it omits aid to state and local governments and lawsuit liability protection, the two issues that stalled earlier attempts at an agreement.

3. India Rejoins US Watchlist in Possible Boost For Rupee & Bonds

India’s addition to the U.S. watchlist for currency manipulation is a trial for its central bank, and a possible boon for local currency- and bond markets. The U.S. Treasury Department’s latest foreign-exchange report cited India’s “significant” goods trade surplus with the U.S. and “sustained” net currency purchases through the year to June. Authorities should limit such intervention to periods of excessive volatility while allowing the rupee to adjust based on economic fundamentals. The central bank’s headache — which comes on top of above-target inflation and struggling growth — looks like a boost for the rupee. The currency has been Asia’s worst performer this year, as the Reserve Bank of India has countered relentless foreign investment inflows with dollar purchases that have pushed the country’s reserves to a record $579 billion.

4. London’s Economy Shaken With Covid Curbs and Brexit Fears

London enters the final days of 2020 with its position as the U.K.’s economic growth engine being whittled away by Brexit and the struggle to contain the coronavirus. The decision to place the capital under the toughest Covid-19 curbs caps a year that saw the virus inflict a bigger hit on London’s job market than other regions. The city, which accounts for more than one-fifth of the U.K. economy, is also seeing global banks shift some people and assets to other European countries. Figures published Thursday by the Institute for Fiscal Studies showed that consumer spending in London was still 10% below its pre-crisis level in November.

5. U.S. Jobless Claims Jump to Highest Levels in Three Months

Applications for U.S. state unemployment benefits unexpectedly jumped to the highest level in three months, suggesting the labour market’s recovery is faltering amid the surge in Covid-19 cases and widening business restrictions. Initial jobless claims in regular state programs rose by 23,000 to 885,000 in the week ended Dec. 12, Labor Department data showed Thursday. Continuing claims for state programs declined by 273,000 to 5.51 million in the week ended Dec. 5. That figure roughly approximates the number of people receiving state unemployment benefits but doesn’t include the millions of people who have already exhausted those benefits or are receiving assistance through federal pandemic jobless aid programs.

6. Credit Suisse Charged Over Money Laundering in Cocaine Ring

Credit Suisse Group and one of its former bank managers have been indicted by Swiss prosecutors over the lender’s alleged failure to prevent money laundering by a Bulgarian drug ring. The Zurich-based bank failed to take all the organizational measures that were “reasonable and required” to guard against the laundering of cash made from the sale of cocaine that was then used to buy real estate in Switzerland and Bulgaria. Swiss prosecutors can target banks criminally if they believe institutions didn’t do enough to screen clients for obvious ties to illicit activity.

7. China Lags as Thailand, Russia Rank Top Emerging Market Picks

Thailand and Russia are well placed to be among the emerging-market standouts that could beat expectations next year. That’s according to a Bloomberg study of 17 developing markets gauging their outlook for 2021 based on 11 indicators of economic and financial performance. Thailand topped the list, owing to its solid reserves and a high potential for portfolio inflows, while Russia scored No. 2 thanks to robust external accounts and a strong fiscal profile, in addition to an undervalued ruble. China scores fairly poorly given that high expectations are already baked in.

8. DoorDash Sinks After Citron Calls IPO ‘Most Ridiculous’ of 2020

DoorDash‘s shares fell on Thursday after short-seller Citron Research called its initial public offering the “most ridiculous” of the year and said the stock is worth a fraction of its current price. The stock is worth $40 a share, Citron said in a research report, citing intense competition in the market for food delivery, lack of brand loyalty from customers and potential government regulation. That would represent a 75% decline from Wednesday’s closing price. The stock fell as much as 5.1% following Citron’s comments.

9. Goldman Trading Bonus May Jump Nearly 20% This Year

Goldman Sachs is planning to boost bonuses for the trading division by up to 20% after the business reclaimed its stature as the firm’s golden goose. The fatter paychecks come on the back of a 49% jump in revenue following a sluggish decade for a group that was once the envy of Wall Street. Corners of trading, particularly in fixed income, could expect much bigger payouts. There will be a greater divergence in payouts than in previous years, with some people potentially getting pay cuts despite generating more revenue. Goldman’s bonus decisions have been a touchy topic ever since the firm’s success through the 2008 financial crisis drew public attention. But this year, banks all along Wall Street saw staggering gains, giving powerhouses more cover to share spoils.

10. U.S. to Limit Use of Chinese Power Equipment on Military Bases

The Trump administration is issuing new prohibitions on the use of Chinese power equipment on military bases, citing the need to protect the U.S. facilities from foreign adversaries. Utilities that supply military bases and other critical defence facilities will be barred from using high-voltage transformers and other so-called bulk power equipment from China under an order being issued Thursday by Energy Secretary Dan Brouillette. The order is another step in the Trump administration’s wide-ranging effort to restrict access by Huawei and other Chinese companies to Western networks and technology.

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Violence at Apple’s India Factory: 450 cr Damages – Top 10 Global News

1. U.S. Stocks Set for a Rebound After Four-Day Slump

U.S. stocks are poised to open higher after a four-day slump, the longest stretch since September, with investors taking comfort in the vaccine rollout and progress on stimulus talks. While investors are pricing in optimism about the start of vaccine shots, there’s also ongoing concern over whether a stimulus bill from a bipartisan group of lawmakers will gain traction. Trading was mixed in other markets. Asian stocks fell the most in two weeks. European equities, oil and Treasuries were steady. In Europe, the pound rose and credit markets strengthened as Brexit negotiators pushed to reach a final trade deal.

Futures on the S&P 500 Index climbed 0.5% as of early morning London time.

The Stoxx Europe 600 Index was little changed.

The MSCI Asia Pacific Index decreased 0.4%.

The MSCI Emerging Market Index declined 0.2%.

2. Moderna Vaccine Found Safe, Effective Ahead of Major FDA Review

Moderna’s vaccine is safe and effective for preventing Covid-19, U.S. regulators said, clearing the way for a second shot to quickly gain emergency authorization and add to the country’s sprawling immunization effort. The Food and Drug Administration’s staff said in a report on Tuesday that the experimental vaccine is 94.1% effective at preventing symptomatic Covid-19, confirming earlier results released by the company. The FDA got a much deeper look at Moderna’s clinical-trial data than the numbers previously released to the public by the company. Notably, the agency was able to review the shot’s effectiveness across a broad range of racial, ethnic and age groups, and look at evidence of how well the shot worked for people with pre-existing medical conditions that make them more vulnerable to severe Covid-19.

3. U.K. Urged to Ban Holiday Mixing; Sweden Shortages: Virus Update

Two medical journals published a rare joint editorial urging the U.K. government to ban household mixing over Christmas. Italy’s prime minister said he plans further curbs to slow cases during the festive season, and the Dutch government is imposing stricter rules for five weeks. Almost all of Sweden’s regional hospitals are struggling with staff shortages as the virus spreads faster than health authorities predicted. Hong Kong plans new relief measures before Christmas, and Singapore is creating a new “bubble” facility near the airport. In the U.S., New York risks a second full shutdown should the number of cases and hospitalizations continue at the current pace.

4. U.K.’s PM to Visit India in January as Trade Talks to Start

U.K. Prime Minister Boris Johnson will visit India in January to try to boost ties, with talks on a free-trade agreement due to start next year. The British government has made the expansion of global trading opportunities a priority after Brexit and is pursuing trade deals with countries including the U.S., New Zealand and Australia. The Indo-Pacific region is also high on the U.K.’s agenda, and Foreign Secretary Dominic Raab held talks with his Indian counterpart Subrahmanyam Jaishankar in New Delhi on Tuesday. India is the U.K.’s 17th-largest trading partner and total trade between the two countries was worth $16.5 billion in 2019.

5. Wave of Foreign Money Threatens India’s Tight Grip on Rupee

A relentless torrent of funds rushing into India’s markets may tip the central bank’s delicate balancing act in 2021. For most of this year, the Reserve Bank of India has capped currency gains as global investors poured around $50 billion into stocks and stakes in companies. This has boosted rupee liquidity in a banking system that’s already flush with cash from the RBI’s stimulus measures. There’s growing consensus among traders and fund managers that the mounting pressures — particularly the liquidity excess distorting money markets — may spur the central bank to consider a range of changes, from relaxing its grip on Asia’s worst-performing currency to curtailing bond purchases.

6. Apple Push Into India Dealt Setback as Protest Turns Violent

Apple’s effort to expand the manufacturing of its products in India ran into trouble after workers at a supplier’s plant rioted over unpaid wages, with many arrested for violence and vandalism. Hundreds of workers stormed Wistron Corp.’s facility in the southern city of Kolar over the weekend, damaging the property and looting thousands of iPhones and laptops, according to local media. More than 150 people were arrested. Wistron estimated damages at as much as $7.1 million and said it’s doing its best to resume operations at the factory. 

7. Airbus CEO Warns No-Deal Brexit Puts U.K. Investment at Risk

Airbus Chief Executive Officer Guillaume Faury said a U.K. split from the European Union without a trade deal could threaten the planemaker’s investment plans in the country. Decisions would be made based on how easy it is to conduct business after Brexit, he said at the Conference of Montreal on Monday. In the meantime, the company has no plans to close or scale down its British factories, which make wings for all of its passenger aircraft, and would find a way to manage a no-deal scenario if it came to that, he said. Airbus was vehemently opposed to Brexit under previous CEO Tom Enders, who warned that the company could pull out of the U.K. if a deal wasn’t reached.

8. Europe May Approve Covid Vaccine by Christmas as Pressure Builds

Pressure is building in Europe for quick approval of Pfizer and BioNTech’s Covid-19 vaccine, with German authorities saying they’re optimistic that sign-off can be pushed forward by a week amid a rising death toll on the continent. Germany is “optimistic” that the European Medicines Agency will be able to make a decision by Dec. 23, Health Minister Jens Spahn said in Berlin on Tuesday. The EMA had previously said an advisory board would convene by Dec. 29 to make a recommendation on the application; approval would come within days after that.

9. Lawmakers Rush to Complete Relief Before Break: US Stimulus Update

Democratic leaders Nancy Pelosi and Chuck Schumer face pressure to allow a vote on a Covid-19 assistance plan without the aid for states they’ve said is vital, after a bipartisan group split that and liability protections from other relief spending. With the congressional session winding down and a government funding package needed by Friday, time is running out for an agreement on the two most contentious and partisan pandemic-relief issues — Covid-19 liability protections for employers and aid for state and local governments. A bipartisan group that had floated a $908 billion plan at the start of the month offered it up in two bills on Monday.

10. Abu Dhabi Turns to Poultry, Fish Farms for Food Security

The oil-rich desert emirate of Abu Dhabi is investing $143 million to boost local production of produce, fish, cattle and poultry in its push to improve food security. Much of the money will go toward using new technologies to improve large-scale production of food in climate-controlled conditions, the Abu Dhabi Government Media Office said. Abu Dhabi — like the rest of the United Arab Emirates — must import most of its food. The coronavirus pandemic, however, has laid bare the UAE’s vulnerability to disruptions in foreign food supplies.

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U.S. Revisits Economic Stimulus Package – Top 10 Global News

1. Stocks Rise, Bonds Dip Amid Hope for Stimulus Deal

Global stocks approached another record high as hopes for a U.S. stimulus deal countered fears about resurgent coronavirus cases. Benchmark Treasuries and the dollar slipped for the first time this week. Health-care and banking shares led gains in Europe after equities rose across much of the Asia Pacific. Global equities were energized by the White House’s surprise re-entry into pandemic-relief talks with a $916 billion proposal that opened a potential new path to a year-end deal. S&P 500 futures edged up. Nasdaq 100 contracts slipped following the gauge’s 10th straight gain.

The Stoxx Europe 600 Index climbed 0.7% as of early morning New York time.

Nasdaq 100 Index futures sank 0.1%.

Futures on the S&P 500 Index climbed 0.2%.

The MSCI Asia Pacific Index gained 0.8%.

2. White House Return to Stimulus Talks Boosts Chance of a Deal

Treasury Secretary Steven Mnuchin made a surprise re-entry into talks on a 2020 pandemic-relief package with a $916 billion proposal that opened a potential new path to a year-end deal despite objections from Democrats over elements of the plan. After largely leaving the task to Senate Majority Leader Mitch McConnell since Election Day, Mnuchin pitched a $916 billion stimulus plan to House Speaker Nancy Pelosi in a Tuesday afternoon telephone call. The Mnuchin plan differs in important ways from the alternative that Pelosi and Schumer endorsed as a basis for fresh talks. It includes $600 stimulus payments to individuals, which could win support from both Republicans and Democrats.

3. China State-Backed Covid Vaccine Has 86% Efficacy

China’s state-backed coronavirus vaccine protected 86% of people against Covid-19 in trials conducted in the United Arab Emirates, giving credence to the quickly developed shot that Beijing intends to distribute around the developing world. The data was from trials that included 31,000 volunteers in the UAE, which found the vaccine was highly effective in preventing moderate and severe cases of Covid-19 and had no serious safety concerns. That’s expected to pave the way for full public use of the vaccine and a re-opening of the Gulf nation’s economy. In an early sign of how the vaccine could be a gamechanger to “resume all activities within two weeks” including economic, tourism and cultural operations.

4. DoorDash Set for Trading Debut After IPO Raises $3.37 Billion

DoorDash is making its trading debut Wednesday after raising $3.37 billion in an initial public offering with Airbnb’s IPO set to follow within hours. San Francisco-based DoorDash sold 33 million shares Tuesday for $102 each after marketing them for $90 to $95 each. The company has a fully diluted value of about $38 billion, which includes employee stock options and restricted stock units as detailed in its filings. DoorDash’s IPO is the third-largest U.S. listing this year. The food delivery company is part of a cadre of consumer-facing, web-based businesses that have successfully navigated the coronavirus pandemic and are expected to go public this month.

5. Tesla Shares Are Dramatically Overvalued : JPMorgan

Tesla’s shares are now “dramatically” overvalued and investors thinking of raising their holdings in the company ahead of its impending addition to the S&P 500 Index should not, JPMorgan analyst Ryan Brinkman wrote in a note on Wednesday. The analyst pointed out that in the past two years Tesla shares have risen over 800%. Analysts have raised their price targets by about 450%, and also simultaneously lowered their earnings estimates for the company for the years 2020 through 2024. This data is “strongly suggestive of the idea that something apart from the fundamentals (speculative fervour?) is driving the shares higher,” Brinkman added.

6. Ray Dalio Sees ‘Flood of Money’ With Soaring Asset Prices

Ray Dalio stressed the importance of diversification in a Reddit Ask Me Anything event on Tuesday where he said that a “flood of money and credit” was unlikely to recede. “Assets will not decline when measured in the depreciating value of money,” the billionaire investor told users of the discussion network who asked for his perspective on where financial markets are headed. “I believe that with the enormous amount of debt and money that has been created and will be created in the future, the most important thing to pay attention to is the value of debt and money relative to the value of assets and other currencies.” Dalio added that he saw no reason that stocks couldn’t trade at 50 times earnings and recommended “smart diversification” among asset classes, currencies and countries.

7. Johnson Says No U.K. Leader Could Accept EU Terms: Brexit Update

Boris Johnson said no British prime minister could accept the European Union’s Brexit demands as he prepared to head to Brussels for a showdown with the European Commission’s Ursula von der Leyen on Wednesday. The premier’s team hopes the face-to-face conversation with the Commission president will inject political impetus into the deadlocked process. If the dinner goes well, negotiators could be back in a room hammering out the details within hours. If it goes badly, officials on both sides fear the chances of an agreement being ready before the end of December — when the Brexit transition period expires — will fade away.

8. JPMorgan Says Equities to Get a $1.1 Trillion Boost Next Year

Those with a bullish outlook for stocks in 2021 are set to get another uplift: more demand and less supply to the tune of $1.1 trillion. That’s the conclusion of global market strategists at JPMorgan Chase & Co. as they expect a rise in equity demand of about $600 billion relative to this year. Meanwhile, supply will drop by $500 billion, returning to the very low levels of 2016 to 2018. “This is similar to the equivalent equity demand/supply improvement in 2019 relative to 2018 which at the time had seen global equities rising by around 25%,” JPMorgan said.

9. China’s Yuan Rapidly Falls at Close After Hitting Strongest Level in 2 Years

China’s yuan weakened minutes before Wednesday’s official close, reversing an earlier gain that had pushed the currency to its strongest level in more than two years. The onshore yuan fell as much as 0.26%, touching its session low. The rapid move came after the offshore yuan had earlier strengthened past 6.5 per dollar for the first time since 2018, expanding the gap between the two rates to one of the widest seen this year. A few large Chinese banks were seen buying dollars in a large volume around market close.

10. U.K.’s Vaccine Warning; Merkel Urges Sacrifice: Virus Update

The U.K.’s vaccination campaign hit a snag on its second day as two people with allergies experienced reactions to the shot, and France and Germany battled worsening virus numbers despite weeks of curbs. Chancellor Angela Merkel urged Germans to make an additional sacrifice over the Christmas holidays to contain the coronavirus as the country’s soft shutdown fails to slow its spread. People with a significant history of allergies should not get the vaccine from Pfizer Inc. and BioNTech SE, the U.K.’s National Health Service said after two people experienced reactions. U.S. regulators indicated they may grant the shot emergency-use authorization.