Written by Gary
Opening markets fall as new Covid strain spooks investors then staging a roughly 400-point U-turn in midday trading (SPY -0.7%). New contagious Covid mutation in UK prompts severe travel restrictions.
Here is the current market situation from CNN Money | |
 | North and South American markets are broadly lower today with shares in Brazil off the most. The Bovespa is down 1.55% while Mexico’s IPC is off 1.09% and U.S.’s S&P 500 is lower by 0.83%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
| PetroChina Makes Huge Gas FindPetroChina discovered a natural gas field with reserves in excess of 100 billion cubic meters, Chinese states news agency Xinhua reported this weekend. The agency cited a company official who said the field could produce 610,000 cubic meters of gas plus 106.3 cubic meters of crude oil daily. “The discovery marks a major breakthrough in gas exploration in the southern rim of the Junggar Basin, which will further guarantee the gas supply of our company and contribute to the stability and prosperity of the region,” Huo Jin, general manager of PetroChina’s |
| OPEC+ Plans To Meet More Frequently To Discuss Oil Market BalancingOPEC+ will take a more hands-on approach to global oil markets now that it plans to meet more frequently, Bloomberg has reported, citing the leaders of the group, Saudi Arabia and Russia. We are meeting monthly because we believe that the market is still not recovered and is still extremely volatile, Russian Deputy Prime Minister and former Energy Minister Alexander Novak said. We need to adopt a hands-on approach and be able to react faster. This denser meeting schedule will also help OPEC+ get the upperhand in directing |
| Russia Backs Another 500,000 Bpd Oil Production IncreaseDespite renewed fears about oil demand due to the new coronavirus strain, the leader of the non-OPEC group in the OPEC+ pact, Russia, is still in favor of another 500,000 bpd increase in the alliances oil production from February, Bloomberg reported on Monday, citing officials with knowledge of the Russian oil policy. Earlier this month, the OPEC+ group managed to avoid a no-deal outcome at its meetings, which went on for days amid disagreements over how the OPEC cartel and its Russia-led non-OPEC partners would act next year with |
| Iraqs Flaring Policy Is BrokenWith budgets already stretched thin, Iraqs budget is being taxed even more by its policy of flaring natural gas while paying high prices to import natural gas from Iran. The process of flaring natural gasa byproduct of oil productionis controversial on climate grounds. Flaring is the process of burning this natural gas, and is employed when it doesnt make economic or practical sense for oil companies to capture the natural gas and sell it. But the spokesman for the Ministry of Electricity, Ahmed Moussa, said that paying |
| Oil Plunges As New Coronavirus Strain Spooks MarketsOil prices plummeted early on Monday as a new strain of the coronavirus in the UK, found to be spreading faster among people, prompted tougher lockdowns in Britain and many European countries banning flights from the UK. As of 8:41 a.m. ET on Monday, WTI Crude was plunging by 4.20 percent to $47.04, and Brent Crude was down by 4.17 percent on the day at $50.12, after briefly slipping to below $50 a barrel. The steep correction on the oil market, as well as on all European equity markets, followed the news out of the UK that a new mutated strain |
| Fuel Demand In India Is Soaring Despite PandemicIndia, the worlds third-largest oil importer and consumer, turned from the worst-performing demand market in July into one of the fastest-growing fuel demand markets in November, lending support to oil prices together with strong demand in China and progress with vaccine development and rollout. Indias demand for all types of petroleum products has nearly reached pre-COVID levels, prompting domestic refineries to crank up crude oil processing rates. The rebound in one of the worlds biggest oil growth drivers before |
| Millionaire investors are betting on strong market gains in 2021Despite lofty market levels, most millionaires plan to maintain or add to their stock holdings next year, according to the CNC Millionaire Survey. |
| House panel subpoenas HHS, CDC chiefs as investigation into Covid response intensifies“The subpoenas were necessary because … efforts to interfere with scientific work at CDC were far more extensive and dangerous than previously known,” Rep. Jim Clyburn said in a statement. |
| European Medicines Agency authorizes Pfizer vaccine for use in the EUEurope’s medicines regulator authorized the Pfizer-BioNTech coronavirus vaccine for conditional use, opening the door to an inoculation program across the EU. |
| Nike shares rip toward record high, as investors see digital bets paying offNike shares jumped more than 5% Monday, despite a broader market selloff, as investors rallied behind the sneaker maker’s latest quarterly results. |
| ‘The Book of Boba Fett’ is its own series, will arrive on Disney+ in December 2021“The Book of Boba Fett,” revealed during the season two finale of “The Mandalorian,” will be its own series on Disney+. |
| Airline stocks slide as highly contagious Covid mutation in UK prompts travel restrictionsAirline stocks tumbled Monday as a fast-spreading Covid strain in the U.K. prompted travel bans in Europe, Canada. |
| Brooklyn Nets CEO expecting bumpy road ahead for upcoming NBA seasonThe NBA begins its 2020-21 campaign on Tuesday, preparing for in-market games as Covid-19 cases increase. |
| Millionaires are bracing for tax hikes next year, CNBC survey findsNearly two-thirds of millionaires say taxes will go up under a Biden administration, according to the survey. |
| Dr. Scott Gottlieb says new UK Covid strain ‘will not slip past our vaccines very easily’Existing Covid vaccines will likely provide protection against the new strain of coronavirus circulating in Britain, the former FDA chief told CNBC. |
| ‘Out of control’ Covid strain makes UK a global pariah as countries impose travel bansA highly contagious new variant of the coronavirus is causing countries in Europe and elsewhere to block travel from Britain. |
| Experts expect vaccines to protect against the UK’s fast-spreading Covid strainExisting vaccines for Covid-19 will be effective in fighting off infection from new strains of the coronavirus, multiple experts told CNBC on Monday. |
| Airlines would get $15 billion in federal aid, must call back more than 32,000 furloughed workersAirlines received $25 billion in payroll support under the $2.2 trillion CARES Act in March. |
| CDC panel says frontline essential workers, people 75 years and older should get Covid vaccine next“We are faced with the situation, at least in the short term, where we have a limited supply of vaccine available to us,” Dr. Nancy Messonnier of the CDC said. |
| Why Are Mainstream Economic Forecasts So Often Wrong?Why Are Mainstream Economic Forecasts So Often Wrong? Authored by Daniel Lacalle, Every end of the year, by the end of the year, we receive numerous estimates of global GDP growth and inflation for the following year. Historically, almost in all cases, expectations of inflation and growth are too optimistic in December for the following year.
If we look at the track record of central banks, it is particularly poor in predicting inflation while large supranational entities tend to err on the side of optimism in GDP estimates. The IMF or the OECD, for example, have been particularly poor at estimating recessions, but mostly accurate at making long-term trend estimates. Contrary to popular belief, it seems that most forecasts are better at identifying long-term economic dynamics than short term ones. Forecasting is a dirty job, but somebody has to do it. Economic forecasting is exceedingly difficult because ther … |
| Taiwan Scrambles Jets & Warships As China Aircraft Carrier Shandong Sails Through StraitTaiwan Scrambles Jets & Warships As China Aircraft Carrier Shandong Sails Through Strait Just a day after the Chinese PLA Navy trailed a US warship through the contested waters of the Taiwan Strait, alarms have been further raised in the region given China just sent its newest domestic-built aircraft carrier, the Shandong, through the strait on Sunday. While it’s ostensibly for the purpose of “routine drills” in the South China Sea, according to a PLA Navy statement issued Monday, Taiwan still mobilized large forces to monitor the carrier and accompanying battle group of ships.
The PLA statement said it’s part of “normal arrangements made in accordance with annual plans” and that œin the future, we will continue to organize similar operations based on training needs.” Taiwan scrambled a significant amount of naval and aerial assets in response to the Shandong carrier’s sail through:
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| Law Prof Advocates For Black Americans’ Votes To “Count Twice”Law Prof Advocates For Black Americans’ Votes To “Count Twice” Authored by Jon Street via Campus Reform, Washington and Lee University assistant law professor Brandon Hasbrouck says Black Americans and Native Americans should be able to vote twice as a cheaper form of reparations.
Claiming that “Black votes in this country are worth less than White votes,” Hasbrouck wrote in an op-ed for The Nation, “Joe Biden won the Electoral College because Black voters in Atlanta, Detroit, Milwaukee, and Philadelphia turned out in significant numbers. But even with overwhelming Black support – a 94 percent of Detroit voted for Biden! – the outcomes in Georgia, Michigan, Wisconsin, and Pennsylvania were worryingly close.” Hasbrouck said these “reparations” should extend to Native Americans as well.
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| US COVID Hospitalizations Retreat; Mutations Stokes Fears About Vaccine-Resistant Virus: Live UpdatesUS COVID Hospitalizations Retreat; Mutations Stokes Fears About Vaccine-Resistant Virus: Live Updates Summary: Europe shuts doors to UK Mutation announced last week stokes fears worldwide US hospitalizations decline, led by Midwest Sweden imposes travel ban Ireland warns extension likely Colombia capital lifts some retrictions Tokyo mayor urges residents to stay home Canada suspends flights to UK Jakarta extends restrictions for another week Clinical trials for Moderna vaccine in Japan will start in January * * * First revealed last week by Health Secretary Matt Hancock, a mutated version of the coronavirus discovered in parts of the UK, South Africa and other locations has prompted a swath of countries to block travelers and commerce coming from the UK. Some are warning that there’s still not enough data on the variation (which some scientists claim is 70% more infectious than the original) for the public to start panicking about whether this might impact the efficacy of the first wave of vaccines. According to the latest data from the COVID Tracking Project, the number of new cases tumbled back below 200K on Sunday, though the 7-day average was 211,387. Deaths were reported at 1,618, while the 7-day average was 2,613. |
| Supermarkets try to calm food shortage fears amid border chaosBut Sainsbury’s could see “gaps” in supply if the French ban on hauliers travelling from the UK continues. |
| Shares fall as new Covid strain spooks investorsWall Street follows Europe lower as concern over the UK’s new Covid-19 variant takes its toll on markets. |
| Amigo Loans: Bid for survival with plan to cap compensationThe sub-prime lender is facing a deluge of complaints from people who say their loans were unaffordable. |
| Covid and M&A: Investors bet big on India in November, hope for a fast recoveryGlobally investors have been pumping money in capital markets as they think that gold and the US dollar may not as much going ahead. |
| Want to play the solar boom in India? This stock is your best betBorosil last week raised Rs 200 crore through qualified institutional placement for expanding its capacities. FPIs have also increased their stake from 0.42 per cent to 10.08 per cent in the QIP. |
| Market Movers: SpiceJet, InterGlobe Aviation tank; 314 stocks flash sell signalAll the 30 components of the Sensex pack ended in the red. With a fall of 9.15 per cent, ONGC emerged as the top loser in the benchmark equity index. |
| Brett Arends’s ROI: How did these ‘All-Weather’ portfolios weather 2020?These typically look very different from the conventional long-term portfolio |
| Need to Know: A new COVID-19 strain is sending stocks tumbling, but here’s why investors shouldn’t panic, says this analystA new $900 billion coronavirus stimulus deal has finally been struck ” but U.S. stocks look set to tumble at the open. |
| Market Snapshot: Dow dips more than 100 points as new coronavirus strain overshadows fiscal relief dealU.S. stocks are lower to start the week as investors focus on a fast-spreading variant of COVID-19 identified by the U.K., overshadowing optimism from news over the weekend that U.S. lawmakers agreed on a pandemic-relief deal. |
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