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

1. U.S. Futures Rise on Vaccine Hopes

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

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

The Stoxx Europe 600 Index rose 0.7%.

The MSCI Asia Pacific Index gained 0.6%.

The MSCI Emerging Market Index increased 1.7%.

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

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

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

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

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

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

5. Dollar Falls to 2018 Lows

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

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

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

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

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

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

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

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

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

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

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

Curated from Bloomberg.com

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Eurozone GDP posts Highest-Ever Quarterly Rise – Top 10 Global News

1. U.S. Stocks Slump After Tech Earnings Underwhelm

U.S. stocks slumped after earnings from the biggest tech companies disappointed investors concerned a slowing economy will damp profit. The Nasdaq 100 led losses among major U.S. stock gauges. In Europe, equities were mixed. Tech stocks also faltered. The tech slump, coming after an unprecedented run higher this year, is adding to volatility that’s likely to remain elevated heading into next week’s U.S. election. Global equities are on course for the worst weekly decline since March as lockdown measures in some countries and the lack of an agreement on U.S. stimulus dent sentiment.

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

The Nasdaq 100 Index dropped 1.4%.

The Stoxx Europe 600 Index was little changed.

The MSCI Asia Pacific Index sank 1.5%.

2. Eurozone GDP up 12.7% in Q3, biggest-ever quarterly rise

Eurozone output soared by 12.7% in the third quarter, its sharpest recorded increase, as the bloc bounced back from the depths of the coronavirus lockdown, the EU’s statistics agency Eurostat said Friday. But, despite the rebound, total gross domestic product in the 19-country zone is still 4.3% down on the third quarter of 2019, while unemployment numbers for September and the inflation estimate for October remained flat.

3. U.S. Tech Giants – Apple, Facebook, Amazon – beat expectations

Apple beats expectations, but shares slip after the company reported iPhone sales that missed Wall Street estimates and a slump in revenue from China. Sales of Macs and Services reached all-time highs in this quarter. 

Facebook beats revenue estimates by $1.6bn. Facebook’s monthly active users rose to 2.74 billion, but the company warned of a tougher 2021.
Amazon.com on Thursday reported record profits for the second quarter in a row and forecast a jump in holiday sales, as consumers continued to shop more online during the novel coronavirus pandemic.

4. Hong Kong Economy Shows First Signs of Revival Since Protests Began

Hong Kong’s economy showed the first signs of emerging from a crippling recession sparked by political unrest last year and deepened by the global pandemic. GDP declined 3.4% in the third quarter from a year earlier, which was better than the median estimate of a 5.6% contraction. On a quarter-on-quarter basis, GDP rose 3%. This marks the first time the quarter-on-quarter measure has risen since before the start of anti-government protests last year, as a third wave of virus infections subsided last month.

5. Singapore Overtakes Thailand to Become Asia’s Worst Stock Market

Singapore stocks took a beating this week amid the twin uncertainties of the U.S. election and the worsening pandemic in the West, overtaking Thailand to become Asia’s worst equity market this year, taking the 2020 decline so far to 25%, compared with a fractionally smaller loss for Thailand’s SET index. The city-state’s index, which relies heavily on exports, is down about 4.3% this week, among Asia’s worst performances. A recovery in the Southeast Asian nation’s stocks from the market plunge triggered by the pandemic has been hampered by the economy’s integration with global trade and supply chains, and a lack of technology shares in the index. More than 80% of Singapore’s benchmark is made up of cyclical equities — the most among regional peers.

6. German economy will shrink 5.5% this year

Europe’s largest economy will likely shrink by 5.5% this year, the German Economy Ministry said on Friday, before expanding by 4.4% in 2021. The German economy has taken a thrashing from the coronavirus pandemic this year and a circuit-breaker lockdown is due to come into effect nationwide on Monday in a bid to curb a surge in infections. The ministry’s new 2020 forecast would still mean Germany is in one of the worst recessions of the post-World War Two era this year but means it is not faring as badly as during the 2009 global financial crisis.

7. U.K. Accelerates Reviews of Pfizer and Astra-Oxford Vaccines

The U.K.’s drug regulator has started accelerated reviews of Covid-19 vaccines under development from Pfizer and AstraZeneca as Britain gets ready to approve the first successful shot as quickly as possible. The U.K. Medicines and Healthcare Products Regulatory Agency started a so-called rolling review of the Pfizer vaccine in recent weeks. The agency is also conducting an expedited review of Astra’s vaccine, which the company is co-developing with the University of Oxford. Rolling reviews allow regulators to see clinical data in real time and have discussions with companies about ongoing trials and manufacturing processes so that approvals can be granted more quickly.

8. Exxon Mobil to lay off 1,900 US employees

Exxon Mobil Corp said on Thursday it will lay off about 1,900 employees in the United States as the COVID-19 pandemic batters energy demand and prices. Exxon was once the largest US publicly-traded company but has been cutting costs due to a collapse in oil demand and ill-timed bets on new oil-fields and expansions. It has promised to shed more than $10bn this year in project spending and cut operating expenses by 15%. The company lost nearly $1.7bn in the first six months of the year and is expected to post another quarterly loss on Friday. Exxon said the job cuts, part of a global reorganisation, will come mainly from its Houston, Texas office and will include voluntary and involuntary cuts.

9. Air France-KLM warns of bigger losses amid lockdowns

Air France-KLM unveiled a $1.24 billion (INR 9200 cr) quarterly operating loss and warned of worse to come as a resurgent coronavirus brings new travel curbs. The Franco-Dutch airline group reported a 67% drop in Q3 revenue, as France returned to full lockdown for at least a month. New COVID-19 outbreaks pose a threat to network airlines already weakened by the crisis and long-haul travel collapse. 

10. Japan Airlines forecasts over $2.3 billion annual net loss as pandemic grounds air travel

Japan Airlines said it had forecast an annual net loss of more than $2.3 billion (INR 17,100 cr) after the coronavirus pandemic grounded air travel around the world. The air carrier is Japan’s second-largest by market share. It did not issue annual forecasts when it published first-quarter earnings in August, citing deep uncertainty surrounding the pandemic. The company reported a 74% reduction in sales and plans to slash 3,500 jobs through a hiring freeze, while also deciding to stop hiring for next year.

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U.S. economy rebounds with 33% growth in Q3 – Top10 Global News

1. U.S. Stocks Push Higher; Oil Tumbles on Virus Concerns

U.S. stocks rose a day after their biggest fall in four months, with investors encouraged by better-than-forecast GDP data even as they kept a wary eye on growing coronavirus infections. Oil plunged for a second day on concern lockdowns will sap demand. Automakers led the S&P 500 Index higher after reports showed record growth in the third quarter and a decline in weekly jobless claims. The tech-heavy Nasdaq 100 outperformed ahead of earnings reports from Apple, Amazon, Alphabet and Facebook due after the close. In Europe, stocks erased most of their losses after European Central Bank President Christine Lagarde said officials could look at new instruments for supporting the economy when they meet in December.

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

The Nasdaq 100 Index increased 1.5%.

The Stoxx Europe 600 Index rose 0.2%.

The MSCI Asia Pacific Index decreased 0.2%.

2. US economy turns in record Q3 growth, but the crisis is not over

The United States economy grew at its fastest pace on record in the third quarter, rebounding at an annual rate of 33.1%. The blockbuster reading follows on from a record-shattering 31.4% contraction in the Q2 and a -5% hit in Q1– when the economy officially entered recession in February.The balance signals that though the economy is crawling out of the deep hole dug by COVID-19 it still has a way to go to recapture its pre-pandemic strength. Moreover, some sectors of the economy are recovering faster than others and those disparities are rippling through the fabric of American society in the form of deepening inequalities. Those with a job and assets like stock portfolios and homes are doing well, while those who are jobless or own a business ravaged by virus restrictions are falling further behind. Racial wealth and income disparities are widening.  Women are dropping out of the workforce at an alarming rate as the demands of jobs and looking after children learning remotely force tough choices on parents.

3. Three killed in ‘terrorist attack’ on French church

An attacker armed with a knife killed three people inside a church Thursday in the Mediterranean city of Nice, prompting the country to raise its security alert status to the highest level. It was the third attack in two months in France that authorities have attributed to Muslim extremists, including the beheading of a teacher. It comes amid a growing furor over caricatures of the Prophet Muhammad that were republished by the satirical newspaper Charlie Hebdo — renewing vociferous debate in France and the Muslim world over the depictions that Muslims consider offensive but are protected by French free speech laws.

4. China aims for sustained, healthy growth in the five years to 2025

President Xi Jinping and members of the Central Committee, the largest of the ruling party’s elite decision-making bodies, met behind closed doors this week to lay out the 14th five-year plan, a blueprint for economic and social development. China’s external environment “is getting more complicated”, the state news agency said, adding, “There is a significant increase in instabilities and uncertainties.” However, the country’s development was still in a period of important strategic opportunities, despite new challenges, it said. It added that China aims to boost its gross domestic product (GDP) per person to the level of moderately developed countries by 2035, while GDP is due to cross $15 trillion by the end of 2020. China will also deepen reforms and let market forces play a decisive role in resources allocation.

5. Germany Imposes Toughest Restrictions Since Lockdown

Chancellor Angela Merkel will impose the toughest restrictions on Germany since a national lockdown earlier this year, closing bars and restaurants in Europe’s largest economy to regain control of the rapid spread of the coronavirus. The one-month partial shutdown, which will go into effect on Monday, is designed to keep most businesses operating. Officials will discuss again in two weeks to assess the impact of the measures. With the public weary of pandemic measures and protests increasing, the government sought to ease pressure by making available up to $11.7 billion (INR 88,600 cr) in aid for companies affected by the measures, including reimbursing as much as 75% of lost sales in November.

6. China Marks Another Step in Virus Rebound With Singapore Opening

Singapore will lift border restrictions on visitors from mainland China from Nov. 6, a further reminder that the nation where the coronavirus outbreak first began is firmly on the road to recovery as the pandemic rages elsewhere. Visitors will have to undergo a coronavirus PCR test upon arrival at Singapore’s Changi Airport. If the result is negative, they will be allowed to enter Singapore without having to serve a stay-home notice.

New cases in China have remained below 100 a day since mid-August, with travelers into the country subject to a mandatory 14-day quarantine. Masks and temperature checks are generally still required in public places.

7. Record 200 Days With No Local Case Makes Taiwan World’s Envy

While many countries around the world are hitting new highs in coronavirus cases, Taiwan has achieved a different kind of record — 200 days without a locally transmitted case. Taiwan holds the world’s best virus record by far and reached the new landmark on Thursday, even as the pathogen explodes anew in Europe and the U.S. Taiwan’s last local case came on April 12; there has been no second wave. What did this island of 23 million people do right? It has had 553 confirmed cases, with only seven deaths. Experts say closing borders early and tightly regulating travel have gone a long way toward fighting the virus. Other factors include rigorous contact tracing, technology-enforced quarantine and widespread mask wearing. Further, Taiwan’s deadly experience with SARS has scared people into compliance.

8. Central Banks Sell Gold for First Time in a Decade

Central banks became gold sellers for the first time since 2010 as some producing nations exploited near-record prices to soften the blow from the coronavirus pandemic. Net sales totaled 12.1 tons of gold bullion in the third quarter, compared with purchases of 141.9 tons a year earlier, according to a report by the World Gold Council. Selling was driven by Uzbekistan and Turkey, while Russia’s central bank posted its first quarterly sale in 13 years, the WGC said. 

9. Asian stocks extend global market sell-off as virus cases surge

Asian share markets fell on Thursday but not as sharply as Wall Street’s sell-off overnight, while oil bounced off lows and US stock futures jumped, as Asia’s brighter economic outlook offset investor worries about fresh COVID-19 lockdowns in Europe. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1 percent. Japan’s Nikkei fell 0.8 percent and drops in Hong Kong, Sydney, Shanghai and Seoul were smaller than 1.5 percent.  Those are heavy losses, but much less than the United States’s S&P 500 index’s 3.5-percent drop in New York or the 4.2-percent fall by Germany’s DAX, which led European shares to their lowest level since late May.

10. Abu Dhabi to issue FDI licences allowing 100% foreign ownership

Abu Dhabi, the capital of the United Arab Emirates, will issue foreign direct investment (FDI) licences to allow foreign investors to own 100% of projects in the emirate in sectors including agriculture, industry and services. The move implements a foreign investment law approved in 2018 allowing foreign investors to own more than 49% and up to 100% of some UAE businesses, as the country seeks to boost private sector activity. About 122 economic activities, which were approved by the UAE cabinet last year across 13 sectors, would allow 100% foreign ownership in Abu Dhabi.