In the World

Japanese general

Japan Has A New Leadership But It’s The Same Stock Pickers’ Market

Akira Horiguchi (Capital Group) | 2020 was a rather eventful year for Japan following a series of headline-grabbing events, including COVID-19, a delay of the Tokyo Summer Olympics and a surprise change in leadership in September. Yoshihide Suga’s succession of his ally Shinzo Abe as prime minister, in particular, has provided investors plenty to think about in terms of what Suga’s leadership could mean for Japanese stocks heading into the new year.


Abengoa copper mine

Chile, Egypt, Senegal, Malaysia and Vietnam: Bright Spots In A World Economy That Just Begins To Recover From Covid-19

Theo Smid (Atradius) | With the economic outlook improving, there are opportunities to be found. We identify markets that have relatively strong prospects. Promising markets are identified based on three criteria: (1) the pace of GDP recovery in the wake of the Covid-19 crisis, (2) a relatively low number of Covid-19 cases (per 100,000 inhabitants), and (3) stable political and institutional conditions. We do acknowledge that for some countries there may be an underreporting of Covid-19 cases, as testing capabilities differ per country. Therefore, we attach a higher weight to the other two factors in the selection of countries. Based on these broad criteria alongside our market experience, we have identified Chile, Egypt, Senegal, Malaysia and Vietnam as the most promising markets.


Oil rigTC

The Cold Snap In Texas Raises Oil prices Temporarily – It Is Reasonable For The Rise To Be Gradual

Bankinter | The price of oil rebounded strongly yesterday (Brent $63.3, +1.4%; West Texas $59.5, +2.1%), due to the cold weather in Texas, the main US oil state, which is causing supply problems. Therefore, the rise is one-off. In our view, a strong and sustained rise in crude oil prices poses a risk for the stock markets due to the impact this would have on economic growth.


inflation

Morgan Stanley’s Global Inflation Surprise Index Enters Positive Territory For The First Time In Two Years

Our strategists have identified a list of European companies with the best and worst pricing dynamics, which is a good way to play reflation. This is in line with our estimates which keep unchanged the narrative that global growth and inflation will surprise on the upside this year, even more strongly, as the global inflation surprise index has entered positive territory for the first time in two years. Moreover, the index is at 10-year highs for the US, while leading indicators point to further rallies on the way.


vaccine2021

The $4 Trillion Economic Cost Of Not Vaccinating The Entire World

Sebnem Kalemli-Ozcan (The Conversation) | Rolling out a vaccine to stop the spread of a global pandemic doesn’t come cheap. Billions of dollars have been spent developing drugs and putting in place a program to get those drugs into people’s arms. But amid an uneven distribution of vaccines – with poorer countries lagging far behind richer nations – another concern presents itself: the cost of not vaccinating everyone. My colleagues and I sought to find out what the total hit to the global economy of uneven vaccination distribution might be.


fallen angels sculpture

Fallen Angels Reached A Maximum Of $166 Bn In 2020

Bonds that lost their investment grade rating and came to be considered by the high-yield rating agencies exceeded $200 billion (about €166 billion) in 2020, the highest annual peak on record to date, according to BNY Mellon IM. According to its data, some $1.5 trillion (€1.25 trillion) in bonds are rated ‘BBB-‘, the lowest rating before losing investment grade, so the firm expects the universe of so-called ‘fallen angels’ to increase in the current year.


China starmarket

China Reaches For The STAR Market- The Domestic Nasdaq

Christian McCormick , Shannon Zheng (Allianz GI) | China’s new STAR market has been billed as the country’s answer to the Nasdaq – the technology-focused US exchange. Its listing rules make it easier for the country’s tech and science startups to list domestically, thereby supporting the fast-growing sectors that are driving China’s growth. Since opening in July 2019 with 25 listings, the STAR market now comprises almost 200 firms – and nearly 500 are in the IPO pipeline.


Tesla Bitcoin

Tesla And Cryptocurrencies: From Joking About Them, To Buying $1.5 Bn In Bitcoins

Fernando Alberca | The US Securities and Exchange Commission confirmed yesterday that Tesla had reported a $1.5 Bn bitcoin purchase. The firm has also enabled customers to buy its vehicles with this cryptocurrency. In the last weeks, Musk had been asking in Twitter whether bitcoin had sufficient liquidity to handle large volumes, but, as he had also encouraged on ironies of cryptocurrencies in the past, bitcoiners considered Musk’s words to be just another manifestation of his peculiar sense of humor. 


Amazon Bezos

How Bezos And Amazon Changed The World

Venkatesh Shankar via The Conversation | What’s in store for Amazon as Bezos steps down from his CEO role later this year? I believe that Amazon’s future – and humanity’s – is inextricably linked to the rise of artificial intelligence. Starting with Alexa, the company’s virtual assistant, Amazon is betting on AI. Amazon’s future success will depend on how the incoming CEO – current head of cloud computing Andy Jassy – navigates these new technologies while pushing the company into more industries, such as health care and financial services. His challenge is to keep Bezos’ legacy and Amazon’s disruptive culture alive.


GameStop

Is Wall Street A Wave Or A Particle? GameStop Affair May Be Its First True Quantum Joke

Peter Isackson | There have been enough commentaries in the past week on the great GameStop affair to fill several editions of Encylopaedia Britannica and possibly Wikipedia as well. After all, we should really be asking this questions: are Wall Street share prices not simply fluctuating numbers on a hyperreal tracking system operated by that archetypal form of artificial (i.e., inhuman) intelligence we call “free markets?” Is Wall Street something that both exists and doesn’t exist at any given moment?