1. U.S. Stocks Advance on Stimulus Hope
U.S. stocks rose on fresh optimism over stimulus talks in Washington, even as a grim milestone highlighted the pandemic’s threat to global economic growth. Treasuries slipped along with the dollar. The S&P 500 Index advanced for a second day today, boosted by apparent progress on a spending package and the latest data from China showing its economy continues to rebound. Technology shares led the rise.
The S&P 500 Index gained 0.4% early today morning New York time.
The Stoxx Europe 600 Index lost 0.1%.
The MSCI Asia Pacific Index rose 0.8%.
The MSCI Emerging Market Index rose 0.5%.
2. Abu Dhabi’s ADQ to invest $1 billion to help retailer Lulu expand in Egypt
ADQ, a holding company owned by the Abu Dhabi government, said on Monday it has signed an agreement with Keralite Yusuff Ali’s Lulu International to help fund its expansion in Egypt with an investment of up to $1 billion (7,300 cr INR). ADQ and Lulu will work to develop up to 30 hypermarkets and 100 express mini-market stores, as well as logistics hubs, distribution and fulfilment centres to strengthen the retailer’s e-commerce business across Egypt, ADQ said in a statement.
3. China’s economy grows 4.9% in Q3, extending coronavirus recovery
China’s economy grew 4.9 per cent on-year in the third quarter, sustaining its rebound from bruising virus lockdowns and moving closer to pre-pandemic levels. But the world’s second-largest economy grew slightly below expectations in the July-September period, National Bureau of Statistics (NBS) data showed, which warned of uncertainty ahead as the international environment is still complicated. China’s recovery has so far put it on track to be the only major economy expanding this year, according to International Monetary Fund forecasts, while nations around the world continue to struggle with lockdowns and new waves of infections.
4. COVID-19 Cases Top 4 crores as Europe Readies New Curbs
Global coronavirus cases exceeded 4 crores, with the pandemic showing no signs of slowing. Record numbers of infections are rolling across Europe while the U.S. and India are averaging more than 50,000 cases a day. Millions of Europeans are facing tighter restrictions on movement, with London, Paris and Vienna enforcing stricter curbs and Ireland preparing some of the region’s toughest measures. Iran again reported a record number of daily deaths linked to the virus, while Wales announced a two-week ‘fire-breaker’ lockdown. China’s economic recovery accelerated, aided by aggressive virus containment that has allowed factories to quickly reopen.
5. Migration Plunges in Covid Crisis, Raising Global Economic Risks
International migration plummeted to an unprecedented degree during the Covid crisis, raising concerns over the longer-term outlook for a key driver of the global economy. Issuance of new visas and permits by the OECD’s 37 members fell 46% in the first half of 2020 compared with a year earlier, and the OECD warned that prolonged restrictions and more remote working and studying mean mobility will not return to pre-crisis levels for “some time.” Migrant workers play a crucial role in sectors including transport, domestic services, IT, and agriculture. Migration plays an important role in economic growth and innovation, as well as in responding to rapidly changing labour markets worldwide.
6. Airlines Working With WHO on Testing to Replace Quarantine
The International Air Transport Association is working to set up a testing system that will replace compulsory quarantine to help revive the airline industry that’s been broken by the coronavirus outbreak. IATA, which represents about 290 airlines globally, is working with the International Civil Aviation Organization and the World Health Organization to put in place scalable, affordable and fast testing systems. “We need testing because we need to get rid of quarantines,” said Conrad Clifford, IATA’s regional vice president for Asia-Pacific, in an interview. He added, “What we’ve seen so far is if there’s a 14-day quarantine, it’s the same as closing your borders.”
7. Tesla to Start Exporting China-Made Model 3 Cars to Europe
Tesla will start exporting Model 3 cars made at its gigafactory on the outskirts of Shanghai to Europe from later this month. The car will be shipped to more than 10 countries, including Germany, France and Switzerland. The company’s Shanghai factory — its first outside the U.S. — opened for local deliveries at the start of this year. The Shanghai factory has helped Tesla expand in China, and the company has said it has the capacity to produce 200,000 vehicles a year from there. It delivered nearly 11,000 locally-built cars in China in September.
8. China Finds Active Covid-19 Virus on Frozen Food Packaging
China’s Center for Disease Control and Prevention said it found active Covid-19 virus on the outer component of refrigerated food packaging, adding that it showed the possibility of infection via such contaminated surfaces. The virus was found on food packaging in the coastal city of Qingdao in Shandong province, the report said, without specifying the origin of the product. Qingdao has reported a dozen new virus cases this month, most linked to a hospital where infected travellers from overseas are being treated.
China has said several times in recent months that imported refrigerated goods are risks for re-introducing the coronavirus into the country. It had previously tested product packaging from various countries and found positive cases of the virus. It subsequently banned imported products including seafood from Indonesia and chicken wings from Brazil following positive tests on shipping containers and food packaging.
9. Virus Resurgence Sees World Central Bankers Stick to Gloomy Tone
Global central bankers are under no illusion that they’re through the fallout from the coronavirus, issuing fresh warnings about new government restrictions, struggling recoveries and threats to jobs. Monetary chiefs from the Euro area, Japan and the U.K. were united in their concern about their economies in an online seminar hosted by the Group of 30. They all said risks to the outlook remain to the downside and signalled support is going to be needed for some time. Bank of Japan’s Governor even warned that his economy is at risk of a recession if things turn sour.
10. Hyundai and Kia to Take $2.9 Billion Hit on Engine Problems
South Korea’s two biggest automakers are taking a $2.9 billion (INR 21,000 crore) earnings hit because of costs related to a 2019 settlement of a U.S. class-action lawsuit linked to engine defects. Hyundai and its affiliate Kia is setting aside the amount from its third-quarter earnings to be reported next week. The lawsuit was brought by U.S. drivers over an alleged defect that could cause certain engines to catch fire. As part of the settlement, the two automakers pledged to provide a lifetime warranty on the engines in the U.S. and South Korea.