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World economy

Ant Group

In the World, World economy 14th November 2020

Ant Group: Jack Ma’s Biggest Market Debut Suspended Amid Fears Over Regulation

Daniel Broby via The Conversation | In a surprise last minute decision, the flagship stock exchange listing of Ant Group was suspended by regulators in China and Hong Kong. The Chinese tech giant, backed by Alibaba billionaire Jack Ma, was to be the biggest initial public offering (IPO) in history. The suspension puts in doubt the future of the US$34.4 billion share sale, part of the US$313 billion dual listing of this giant financial technology (fintech) payments company.

Pfizer vaccine

World economy 13th November 2020

Pfizer’s Vaccine Breakthrough Sweet Nectar For Corporate Bonds

Mondher Bettaieb Loriot / Claudia Fontanive-Wyss (Vontobel AM) | The recovery takes hold now that a Covid-19 vaccine is on the immediate horizon. Pfizer has announced that they, together with BIoNTech, are the first drugs-makers to achieve credible positive readings on the effectiveness of their Covid-19 vaccine trials. The recovery stage is generally the sweet spot for corporate bonds and credit spreads as corporates further increase cash flows, act for the benefit of bondholders and, in the end, reduce leverage.

Brazil

In the World, World economy, World politics 12th November 2020

Brazil–Less Significant Economic Contraction Than Originally Expected

The impact of the coronavirus pandemic has put an end to the modest economic rebound since 2017. The recovery followed Brazil’s longest and deepest recession in 2014-2016, when GDP shrank by almost 9%. However, Brazil’s less stringent containment measures and stronger fiscal support have led to smaller output losses compared to most other countries in the region. In 2020 GDP is expected to contract by 4.6% (an upward revision from the 6.2% contraction expected in August). Business confidence has rebounded since June.

Singles Day.jpg

World economy 11th November 2020

China’s Singles’ Day Expectations: 800 M Consumers To Buy At The “Holiday Season” Start

Bankinter | As China has overcome the confinement phase, there are good prospects for Singles’ Day in China (11.11) which is expected to reach new highs on the day of the highest volume of online purchases in the world. This year it is expected that 800 million consumers will buy on Singles’ Day (200 of the Generation Z- born at the end of the decade of the 90s – recently incorporated into the consumption chain).

morocco inmigration

In the World, World economy 5th November 2020

Covid-19 Aggravates Sub-Saharan African Debt Problems

Currently, more than 1.1 million confirmed Covid-19 infections are reported in Sub-Saharan Africa (SSA), and infections have spread through almost all countries. However, this spread is quite uneven throughout the region. Just five countries account for more than 75% of all confirmed infections. Of these five, South Africa has by far the most confirmed infections, followed by Ethiopia, Nigeria, Ghana, and Kenya. At the end of March 2020, South Africa introduced one of the strictest lockdowns in the world. However, in order to soften the negative impact on the economy, lockdown restrictions were gradually eased in June. This has resulted in a sharp increase in Covid-19 cases, as the virus spread rapidly in the impoverished and densely populated areas.

blue wave

World economy 4th November 2020

Market Flash – US elections

The list of potential outcomes is narrowing, but we may still not have a result today. While some races looked closer this morning, we are down to 6 states that will determine the outcome. Right now, Joe Biden is ahead in Wisconsin and Michigan, which, if Biden holds Nevada, would be enough to put him in the White House. If Biden does not win all three, the scenarios include Pennsylvania, which might need until Friday. We should have results for North Carolina and Georgia today, with both potentially going to Trump.

edtech

In the World, World economy 1st November 2020

Education: Fast Forward To The Future; Accelerating Edtech Adoption In A Post- Covid-19 World

Thomas A. Singlehurst/ Nithin Pejaver, CFA/ Mark Li, CFA/ Brian Gong (Citi GPS) | COVID-19 has created one of the most significant disruptions to students in history, with 1.6 Bn learners in 190+ countries being affected by school closures. Education technology (edtech) currently makes up only 3% of the $6 Tr+ overall market primarily because of inertia on the part of educational institutions. We see the current crisis driving an acceleration in edtech growth with the market doubling over the next 5 years to $360 Bn.

Trump coronavirus 1

World economy 30th October 2020

45 Million And Counting

Compared to the spring we have higher economic activity today even with much higher coronavirus cases. However, we have currently reached a point where controlling the further acceleration of the virus means accepting new economic costs. Lockdowns are back and we don’t even have the nice weather to help us deal with being stuck at home. The current wave could peak in the next few weeks, but the economic costs will persist and that means it is important that there are new policy measures in the pipeline. The ECB is going further in December and the US should deliver on more fiscal support in 2021. However, the game changer will be a vaccine which will help reduce the health costs and boost economic growth. A bullish outlook for 2021 really relies on that happening.      

hedge funds

In the World, World economy 28th October 2020

A Moment In Markets – The Big Movers Coming Up

Positive economic data from China last week gave markets the confidence that there is a way out of the ongoing slump for the global economy. But are the US and Europe going to paint an equally encouraging picture? The US will disclose its third quarter gross domestic product (GDP) growth numbers on Thursday 29 October while Eurozone’s figures will be released the following day. Quarter-on-quarter GDP change in Q3 is forecasted to be 29.9% for the US (after a decline of 31.4% in Q2) and 9.3% for Eurozone (after a fall of 11.8% in Q2). Risk assets will draw comfort from knowing that an economic recovery is underway globally.