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U.S. stock market braces for rocky week ahead of contentious U.S. election - Reuters
Wall Street faces a rocky run-up to Election Day, with mounting worries about the outcome in Washington adding to nerves about the coronavirus pandemic and fading chances of stimulus.
NEW YORK (Reuters) - Wall Street faces a rocky run-up to Election Day, with mounting worries about the outcome in Washington adding to nerves about the coronavirus pandemic and fading chances of stimulus. The Cboe Volatility Index, Wall Streets fear gauge, surged to 32.46, its highest closing level since Sept. 3., while the S&P 500 had its biggest one-day drop, with investors reluctant to buy ahead of the vote. What were seeing today is people setting up for Election Night: raising cash to preserve capital, lock in capital gains at a lower rate, and to have some cash available for the growing eventuality of lower prices, said Robert Phipps, director at Per Stirling Capital Management in Austin, Texas. Investors have been betting on a win by Democratic challenger Joe Biden by buying alternative energy shares and cannabis stocks, which are expected to benefit from his policy proposals. Bond yields have climbed, partly in anticipation of greater stimulus under a Biden administration. Some of those bets looked a bit weaker on Monday. For instance, the Invesco Solar ETF was down 2.1% and bond yields slipped. Before Monday, investors appeared to be dialing back on election-related volatility bets on the expectation of a clean win. As stocks fell, however, VIX futures rose along with the volatility index. Now market watchers worry that an unexpected victory by President Donald Trump, a Republican, or an uncertain election outcome could force drastic unwinding of positions similar to what occurred in 2016, when investors were overwhelmingly positioned for a Hillary Clinton presidency. Biden still leads in national opinion polls by 7.9 percentage points, though Trump has increased his standing in battleground states Georgia and Michigan, according to polling aggregator RealClearPolitics. A surprise victory by Trump could lead to a post-election jump similar to that in 2016 here, when a rally in drugmakers and financial companies helped reverse deep overnight losses and pushed the S&P 500 up more than 1%, the start of a surge through the end of the year. J.P. Morgan analysts said on Monday that the best outcome for equities is an orderly Trump victory, with the S&P 500 potentially catapulting to 3,900. A divided government could be a net positive, they said, while a Democratic White House and Congress would be neutral with the potential for a larger stimulus weighed against higher corporate taxes. Signs of a close election tend to lead to more volatility in the run-up to Election Day, said King Lip, chief strategist at Baker Avenue Asset Management in San Francisco. The polls appear to be narrowing...and what that causes is just more uncertainty, he said. Overall, the S&P 500 is up approximately 5% for the year to date and remains about 5% below its record high posted in early September. Since then, a widely expected fiscal stimulus bill in Washington has stalled and the U.S. has posted its highest-ever numbers here of new coronavirus cases. The deep drops in the stock market Monday have to do with the lack of a stimulus package and concerns about the pending election, said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. Theres nervousness on both those issues.
Asia shares turn muted as S&P 500 futures slip - Reuters
Asian shares got the week off to a hesitant start on Monday as surging coronavirus cases in Europe and the United states undermined the global outlook, while China's leaders meet to ponder the future of the economic giant.
SYDNEY (Reuters) - Asian shares got the week off to a hesitant start on Monday as surging coronavirus cases in Europe and the United states undermined the global outlook, while Chinas leaders meet to ponder the future of the economic giant. FILE PHOTO: A TV reporter stands in front of a large screen showing stock prices at the Tokyo Stock Exchange after market opens in Tokyo, Japan October 2, 2020. REUTERS/Kim Kyung-Hoon/File Photo The U.S. has seen its highest ever number of new COVID-19 cases in the past two days, while France also set unwanted case records and Spain announced a state of emergency. That combined with no clear progress on a U.S. stimulus package to pull S&P 500 futures down 0.6%. EUROSTOXX 50 futures eased 0.7% and FTSE futures 0.4%. MSCIs broadest index of Asia-Pacific shares outside Japan inched up 0.1%, still short of its recent 31-month peak. Japans Nikkei dithered either side of steady, and South Koreas main index lost 0.3%. Chinese blue chips shed 0.5% as the countrys leaders met to chart the nations economic course for 2021-2025, balancing growth with reforms amid an uncertain global outlook and deepening tensions with the United States. A packed week for monetary policy sees three major central banks hold meetings. The Bank of Canada and Bank of Japan are expected to hold fire for now, while the market assumes the European Central Bank will sound cautious on inflation and growth even if they skip a further easing. Data due out Thursday is forecast to show U.S. economic output rebounded by 31.9% in the third quarter, after the seconds quarters historic collapse, led by consumer spending. Analysts at Westpac noted that such a bounce would still leave GDP around 4% lower than at the end of last year, with business investment still lagging badly. To fully recover the activity lost, additional meaningful fiscal stimulus is a must, they argued in a note. The U.S. presidential election will again loom large as markets move to price in the chance of a Democratic president and Congress, which would likely lead to more government spending and borrowing down the road. That outlook drove U.S. 10-year Treasury yields to their highest since early June last week at 0.8720%. They were trading at 0.83% on Monday. We have raised the probability of a Democratic sweep, already our base case, from 40% to just over 50% and have increased our expectation of Biden to win from 65% to 75%, wrote analysts at NatWest Markets in a note. We see steeper U.S. yield curves and a weaker USD as likely to prevail in our base case. The dollar was flatlining on Monday, having fallen broadly last week. The euro was holding at $1.1836 and just under its recent top of $1.1880, while the dollar was pinned at 104.86 yen and not far from last weeks trough of 104.32. The dollar index was a fraction firmer at 92.904, after shedding almost 1% last week. In commodity markets, gold edged down 0.1% to $1,898 an ounce. Oil prices fell further in anticipation of a surge in Libyan crude supply and demand concerns caused by surging coronavirus cases in the United States and Europe. Brent crude futures lost 73 cents to $41.04 a barrel, while U.S. crude also fell 73 cents to $39.12.
Lee Kun-hee, who made South Korea's Samsung a global powerhouse, dies at 78 - Reuters
Lee Kun-hee, who built Samsung Electronics <005930.KS> into a global powerhouse in smartphones, semiconductors and televisions, died on Sunday after spending more than six years in hospital following a heart attack, the company said.
SEOUL (Reuters) - Lee Kun-hee, who built Samsung Electronics 005930.KS into a global powerhouse in smartphones, semiconductors and televisions, died on Sunday after spending more than six years in hospital following a heart attack, the company said. FILE PHOTO: Samsung Electronics Chairman Lee Kun-hee listens to a question from a reporter after touring the Samsung booth at the 2012 International Consumer Electronics Show (CES) in Las Vegas, Nevada January 12, 2012. REUTERS/Steve Marcus/File Photo The charismatic leader of Samsung Group and the countrys richest person, grew it into South Koreas biggest conglomerate. But he was also convicted of bribery and tax evasion, and he and the empire he built were vilified for wielding huge economic clout, and for opaque governance and dubious transfers of the family wealth. Lee is such a symbolic figure in South Koreas spectacular rise and how South Korea embraced globalisation, that his death will be remembered by so many Koreans, said Chung Sun-sup, chief executive of corporate researcher firm Chaebul.com. Samsung Group affiliates 326.7 trillion won ($289.6 billion) in 2019 revenue was worth 17% of South Koreas gross domestic product, according to Fair Trade Commission data and a Reuters calculation. Around 5 p.m. (0800 GMT), Lees son Jay Y. Lee, wearing a face mask, walked into the Samsung Medical Center where a memorial was being held. The area for the memorial was limited to 50 people, a sign said. The funeral will be a small family affair, Samsung said. It did not say when or where the funeral would be. Lee, who was 78, is the latest second-generation leader of a South Korean family-controlled conglomerate, or chaebol, to die, leaving potentially thorny succession issues for the third generation. Ruling party leader and former prime minister Lee Nak-yon praised Lees leadership, but said, It cant be denied that he reinforced chaebol-led economic structure and failed to recognise labour unions. The death of Lee, with a net worth of $20.9 billion according to Forbes, is set to prompt investor interest in a potential restructuring of the group involving his stakes in key Samsung companies such as Samsung Life Insurance 032830.KS and Samsung Electronics. Lee owns 20.76% of the insurance firm and is the biggest individual shareholder of Samsung Electronics with a 4.18% stake. Jay Y. Lee has been embroiled in legal troubles linked to a merger of two Samsung affiliates that helped Lee assume greater control of the groups flagship Samsung Electronics. The younger Lee served jail time for his role in a bribery scandal that triggered the impeachment of then-President Park Geun-hye. The case, being heard on appeal, is scheduled to resume on Monday. A separate trial on charges of accounting fraud and stock price manipulation kicked off this month. "With Lee passing, Samsung Group is now facing the biggest governance shakeup since the merger between Cheil Industries and Samsung C&T" 028260.KS in 2015, said Ahn Sang-hee, a corporate governance expert at Daishin Economic Research Institute. For Jay Y. Lee, getting the most of that stake Lee Kun-hee holds is more important than ever, Ahn said. The key here is with taxes. Coming up with enough taxes related to inheritance and avoiding possible disputes with his sisters are major hurdles. It remains unclear how the elder Lees three children and his wife will split his wealth, an issue that led to family feuds at other chaebols after the deaths of their patriarchs. It has been six years since Lee was hospitalised, so if there is a consensus among the children, Samsung will go through an orderly succession. If not, there is a possibility of a feud, said Park Sang-in, a professor at Seoul National University. Lee died with his family by his side, including Jay Y. Lee, the Samsung Electronics vice chairman, the conglomerate said. Chairman Lee was a true visionary who transformed Samsung into the world-leading innovator and industrial powerhouse from a local business, Samsung said in a statement. The company did not specify the cause of death and declined to comment on whether Lee left a will. Lee became Samsung Group chairman in 1987 but had to resign more than a decade later after being convicted of bribing the countrys president. He was convicted again in 2008 of breach of trust and embezzlement, but the long-time member of the International Olympic Committee was pardoned to help the countrys bid for the 2018 Winter Olympics. His aggressive bets on new businesses, especially semiconductors, helped grow his father Lee Byung-chulls noodle trading business into a sprawling powerhouse with assets worth some $375 billion, with dozens of affiliates stretching from electronics and insurance to shipbuilding and construction. His legacy will be everlasting, Samsung said. Reporting by Joyce Lee, Cynthis Kim and Hyunjoo Jin; additional reporting by Dae-woung Kim and Soo-hyun Mah; Editing by Miyoung Kim and William Mallard Our Standards: The Thomson Reuters Trust Principles.
Asian markets jump on vaccine, U.S. aid hopes; gains capped by China data - Reuters
Asian markets advanced toward a recent 2-1/2-year peak on Monday powered by hopes of a U.S fiscal package and expectations of a coronavirus vaccine by the end of this year, though weaker-than-expected Chinese data capped gains.
SYDNEY (Reuters) - Asian markets advanced toward a recent 2-1/2-year peak on Monday powered by hopes of a U.S fiscal package and expectations of a coronavirus vaccine by the end of this year, though weaker-than-expected Chinese data capped gains. FILE PHOTO: A man wearing a protective face mask following an outbreak of the coronavirus disease (COVID-19) walks past a screen displaying the world's markets indices outside a brokerage in Tokyo, Japan, March 17, 2020. REUTERS/Issei Kato MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbed 0.6% for its second straight day of gains, paring back slightly following third-quarter gross domestic product data from China. The index has risen in eight of the last 10 sessions amid a rally in risk assets buoyed by hopes of a coronavirus vaccine and expectations of a so-called blue wave, which would see the Democrats claim victory in Novembers elections. Chinese shares started higher though the blue-chip index .CSI300 pared gains after China's GDP data missed forecasts, though separate monthly indicators pointed to an expansion in economic activity. Chinas gross domestic product (GDP) grew 4.9% in July-September from a year earlier, slower than the median forecast of 5.2%. Monthly indicators beat forecasts - industrial output accelerated 6.9% in September from a year earlier, when analysts were looking for a 5.8% gain from a 5.6% rise in August. Retail sales edged up 3.3% last month from a year earlier against expectations for 1.8% growth. The rebound in Q3 GDP was less strong than expected, but was still a decent 4.9% YoY. September data beat expectations, suggesting a pickup in momentum towards the latter part of Q3, said Frances Cheung, head of macro strategy for Asia at Westpac in Singapore. The pickup in momentum was broad-based, which bodes well for the Q4 outlook. Japan's Nikkei .N225 and Australia's benchmark index .AXJO were each up 1.1%. Boosting overall sentiment, drugmaker Pfizer Inc PFE.N said on Friday it could have a coronavirus vaccine ready in the United States by the end of this year. E-Mini futures for the S&P 500 ESc1 jumped 0.6% in Asian trading after House Speaker Nancy Pelosi said on Sunday she was optimistic legislation on a wide-ranging coronavirus relief package could be pushed through before the election. But with her negotiating partner, Treasury Secretary Steven Mnuchin, in the Middle East until Tuesday, such a timeframe would seem to be overly optimistic, analysts said. Investors are also concerned about rising coronavirus cases to help curb the spread of the disease. Global coronavirus cases rose by more than 400,000 for the first time late on Friday, a record one-day increase as much of Europe enacts new restrictions to curb the outbreak. Later in the week, key risk events include minutes of Australias central bank meeting, the final U.S. presidential debate and global manufacturing indicators. Action in currencies was muted with the U.S. dollar, usually perceived as a safe-haven asset, =USD flat at 93.696 against a basket of six major currencies. [USD/] The euro EUR= slightly weaker at $1.1712. Sterling was slightly higher though it was still near two-week lows after UK Prime Minister Boris Johnson told businesses to get ready for a no-deal Brexit in case negotiations with the European Union fail to produce a free trade agreement. EU-UK trade talks are flirting with collapse, ANZ economists said. UK Prime Minister Johnson said the UK needs to prepare for a no-deal outcome, as both sides cannot agree on a Canada-style FTA. Talks resume in London on Monday, but without the political willingness to shift ground, there is little the negotiators can achieve. In commodities, Brent crude futures LCOc1 slipped 14 cents to $42.79 a barrel, and U.S. West Texas Intermediate (WTI) crude futures CLC1 fell 14 cents to $40.74 a barrel. Spot gold XAU= was a shade firmer at $1,900.8 an ounce.
Asian shares retreat as coronavirus surge hits sentiment - Reuters
Financial markets remained shaky on Friday as hopes for a new round of U.S. fiscal stimulus met fears that social restrictions to tackle the coronavirus pandemic would undermine economic recovery.
LONDON (Reuters) - Financial markets remained shaky on Friday as hopes for a new round of U.S. fiscal stimulus met fears that social restrictions to tackle the coronavirus pandemic would undermine economic recovery. Photographers take photos near a large screen showing stock prices at the Tokyo Stock Exchange (TSE) after market opens in Tokyo, Japan October 2, 2020. REUTERS/Kim Kyung-Hoon/Files Oil prices and Asian stocks slid, but European stocks recovered in morning trading after sharp losses the day before. Its a tug-of-war between risks that are well flagged, the pandemic, the U.S. election, Brexit, and at the same time hope that these same risks can be resolved in matter of weeks or months, said Emmanuel Cau, head of European equity strategy at Barclays. In the meantime, its hard for investors to take positions on the short term given all the uncertainties, he said. Looking forward to 2021, theres a good probability these risks will be behind us. The pan-European STOXX 600 .STOXX rose 0.8% about an hour after the open. They had lost over 2% on Thursday as new social restrictions in Europe, including a curfew in major French cities and tighter restrictions in London, spooked investors. The euro also regained some ground, rising about 0.1% to $1.1717 as investors shifted from perceived safe havens such as the dollar and the yen to riskier currencies. Germanys 10-year bond yield was set for its biggest weekly drop since August as doubts grew about the economic recovery in the euro zone. Uncertainty regarding the trade negotiations between the European Union and the UK remained high, as British Prime Minister Boris Johnson was expected to respond to the EUs demand for more concessions. Sterling gained about 0.2% against the euro at 0.9050 pence and rose 0.3% against the dollar at $1.2938. Oil prices continued to slide, dragged down by concerns that resurgent COVID-19 cases in Europe and the United States would curtail demand. Brent crude futures for December dropped 0.5% to $42.93 a barrel. U.S. West Texas Intermediate (WTI) crude futures for November delivery dipped 0.4%, to $40.81 a barrel. Spot gold prices were flat at $1,909.05 but looked set for their first weekly drop in three. Futures for Wall Streets S&P 500 were flat after ending lower on Thursday following a rise in weekly jobless claims. U.S. President Donald Trumps offer on Thursday to increase the size of a fiscal stimulus package to win the support of Republicans and Democrats helped narrow Wall Streets losses, though many investors still believe a deal is unlikely before the Nov. 3 election.
Asian shares perk up on China gains, virus woes linger - Reuters
Asian stocks edged higher on Friday, buoyed by gains in China, but the mood was cautious due to a resurgence of coronavirus infections in Europe and the United States.
TOKYO/NEW YORK (Reuters) - Asian stocks edged higher on Friday, buoyed by gains in China, but the mood was cautious due to a resurgence of coronavirus infections in Europe and the United States. FILE PHOTO: A TV reporter stands in front of a large screen showing stock prices at the Tokyo Stock Exchange after market opens in Tokyo, Japan October 2, 2020. REUTERS/Kim Kyung-Hoon/File Photo MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.27%. U.S. stock futures ESc1 also gained 0.32%. Shares in China .CSI300 rose 0.39% as investors snapped up banking shares due to an improving earnings outlook. Australian stocks .AXJO erased early losses to trade flat. Japanese stocks .N225 edged 0.05% higher, but South Korean shares .KS11 lost 0.32%. Oil futures extended declines in Asian trade as another round of lockdowns to contain the spread of the coronavirus threatens to further weaken global energy demand. U.S. President Donald Trumps offer on Thursday to raise the size of a fiscal stimulus package to win the support of Republicans and Democrats helped narrow Wall Street losses, though many investors still believe a deal is unlikely before the Nov. 3 election. Theres a bit of worry there and also at what were seeing in America and in Europe regarding the virus and how it seems to be taking hold pretty significantly again, said Grant Williamson, investment adviser at Hamilton Hindin Greene in Christchurch, New Zealand. On Wall Street, the Dow Jones Industrial Average .DJI fell 0.07%, the S&P 500 .SPX 0.15% and the Nasdaq Composite .IXIC dropped 0.47%. An unexpected rise in U.S. weekly jobless claims figures added to worries about a sputtering world economy, especially in the face of a spike in COVID-19 cases in Europe. The dollar index =USD stood at 93.78, close to a two-week high as signs of a stalling U.S. economy drove safe-harbour flows into the greenback. The one currency that the dollar fell against was the yen, which strengthened 0.15% to 105.31 per dollar given the Japanese currency is also seen as a haven. The euro EUR= was down 0.01% to $1.1709, while a firmer U.S. dollar dragged on sterling GBP=, which was last trading at $1.2900, down 0.12% on the day. Spot gold XAU= was little changed at $1,908.40 an ounce. The coronavirus outbreak originated in China last year, but Beijings aggressive efforts to control the virus mean its economy is recovering faster than other major countries, which suggests an improvement in corporate earnings. Hong Kong shares in Semiconductor International Manufacturing Corp 0981.HK (SMIC) rose 2.53% on Friday after China's top chipmaker raised revenue and gross margin forecasts for the third quarter. In contrast, many European countries have resumed lockdowns, and London will enter a tighter COVID-19 lockdown from midnight on Friday as Prime Minister Boris Johnson seeks to tackle a swiftly accelerating second coronavirus wave. The European Union put the onus on Britain to compromise on their new economic partnership or stand ready for trade disruptions in less than 80 days, another negative for sterling. The Australian dollar fell 0.2% versus the greenback at $0.7094, hurt by a decline in commodities. Oil prices were weighed by concerns about the coronavirus and its impact on the world economy. Brent crude futures LCOc1 fell 0.6% to $42.90 a barrel, while U.S. crude futures CLc1 slipped by 0.44% to $40.77 a barrel. Traders' preference for safety helped government bonds. The yield on U.S. Treasuries Benchmark 10-year notes US10YT=RR held steady at 0.7339%, while the two-year yield US10YT=RR edged lower to 0.1390%.
U.S. airlines await new shot at federal aid as Pelosi, Mnuchin talk - Reuters
U.S. airlines were again holding out hope for another $25 billion in payroll aid after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin discussed the possibility of standalone legislation for the struggling sector on Wednesday.
CHICAGO/WASHINGTON (Reuters) - U.S. airlines were again holding out hope for another $25 billion in payroll aid after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin discussed the possibility of standalone legislation for the struggling sector on Wednesday. A plane passes the air traffic control tower at the airport in Phoenix, Arizona, U.S., July 18, 2017. REUTERS/Lucy Nicholson/Files Their conversation was the latest in a series of turbulent developments on relief prospects in recent weeks for airlines, which last week began the furlough of tens of thousands of employees. Airline shares jumped on Wednesday after sinking abruptly a day earlier on remarks by President Donald Trump that his administration would abandon talks with congressional Democrats over a major stimulus package until after the Nov. 3 election. But an immediate path forward remains unclear. Airlines relief request enjoys wide bipartisan backing, but House of Representatives Transportation Committee Chairman Peter DeFazio failed last week to win approval of a standalone bipartisan measure for airlines by unanimous consent after some Republicans objected. Pelosi asked Mnuchin by phone on Wednesday to review DeFazios bill so that they could have an informed conversation, her spokesman, Drew Hammill, wrote on Twitter. They spoke again on Wednesday evening for 20 minutes and agreed to continue discussions on Thursday, Hammill said. A separate Republican-led attempt to pass standalone legislation in the Senate also failed after opposition from three Republican senators including Rick Scott of Florida. A spokesman for Scott told Reuters on Wednesday he was waiting to hear whether an amendment to that proposal would get a vote. The Republican bill proposes taking unspent money from a first COVID-19 relief package, while the House Democrats proposal does not include any cuts to existing spending to fund the program. Without unanimous consent, any standalone bill would have to go to both chambers for a vote, but Senate Majority Leader Mitch McConnell has said the Senate, battling some COVID-19 cases, would be out until Oct. 19. Pelosis conversation with Mnuchin came as the Trump administration signaled possible piecemeal legislation for airlines a day after abandoning talks over at least $1.6 trillion in additional coronavirus relief funds. A key component of fresh airline relief is to keep workers on the job for another six months. A prior $25 billion airline payroll support program expired on Sept. 30. American Airlines and United Airlines began the furlough of 32,000 workers last week, and tens of thousands more at those airlines and others have agreed to voluntary leaves or reduced hours. Southwest Airlines has warned it will have to carry out the first furlough in its history if workers do not agree to pay cuts in the absence of federal aid. U.S. airlines urged top House and Senate leaders to advance a standalone bill in a letter on Wednesday, warning that many more job losses are expected across the industry in the weeks ahead if aid is not extended. The letter was signed by the main industry lobby, Airlines for America, and a dozen unions.
U.S. House's antitrust report hints at break-up of Big Tech firms: lawmaker - Reuters
The U.S. House of Representatives antitrust report on Big Tech firms contains a "thinly veiled call to break up" the companies, Republican Congressman Ken Buck said in a draft response seen by Reuters.
WASHINGTON (Reuters) - The U.S. House of Representatives antitrust report on Big Tech firms contains a thinly veiled call to break up the companies, Republican Congressman Ken Buck said in a draft response seen by Reuters. FILE PHOTO: The logos of Amazon, Apple, Facebook and Google in a combination photo from Reuters files./File Photo The House antitrust subcommittee is expected to publish its report this week on Amazon.com Inc, Apple Inc, Facebook Inc and Google owner Alphabet Inc. A Buck representative confirmed to Reuters the authenticity of the draft response, which was first reported by Politico. In the draft, Buck said he shared Democratic concerns about the power of Big Tech firms, with their penchant for killer acquisitions to eliminate rivals and self-preferencing in guiding customers to their other products. However, he objected to a plan to require them to delineate a clear single line of business. Social media platform Facebook also owns Instagram and WhatsApp, search engine provider Googles businesses include YouTube and Android, and e-commerce leader Amazon operates a massive cloud computing unit. This proposal is a thinly veiled call to break up Big Tech firms. We do not agree with the majoritys approach, Buck wrote. It is not yet known how many Republicans will support the report, which is being led by Democratic Chairman David Cicilline. Reports and recommendations with bipartisan support usually have a bigger impact. The report offers a chilling look into how Apple, Amazon, Google and Facebook have used their power to control how we see and understand the world, Buck wrote. He agreed with some of the reports recommendations, such as making it easier for the Justice Department and Federal Trade Commission to stop mergers by lowering their burden of proof, and allowing consumers to take control of their data through data portability and interoperability between platforms. These potential changes need not be dramatic to be effective, Buck wrote. Buck also said he was displeased that the report failed to address conservative allegations that some platforms have tried to stifle conservative voices.
Global stocks rise as signs of Trump's improving health calm markets - Reuters
Stocks rose on Monday as signs that President Donald Trump's health was improving eased some of the political uncertainty caused by his coronavirus infection, which sent investors rushing for safety last week.
TOKYO (Reuters) - Stocks rose on Monday as signs that President Donald Trumps health was improving eased some of the political uncertainty caused by his coronavirus infection, which sent investors rushing for safety last week. FILE PHOTO: The New York Stock Exchange is pictured in the Manhattan borough of New York City, New York, U.S., October 2, 2020. REUTERS/Carlo Allegri/File Photo Trump, 74, was flown to hospital for treatment for the coronavirus on Friday, but his doctors say he has responded well and could return to the White House on Monday. That helped U.S. S&P 500 e-mini futures EScv1 rise 0.62%, while Nasdaq futures NQc1 gained 0.89%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1.08%. Euro Stoxx 50 futures STXEc1 were up 0.82%, German DAX futures FDXc1 rose 0.72%, and FTSE futures FFIc1 gained by 0.91%. Overhanging the relief rally, however, are continued uncertainty about his condition and some concerns that Trumps case could be more severe than public disclosures suggest. Equities and other risk-on traders should be well-supported by easing concerns about Trumps health, said Junichi Ishikawa, senior currency strategist at IG Securities in Tokyo. For the dollar, the impact is not quite as clear cut. It should fall against most currencies due to an increase in risk appetite, but the yen is also weak, and thats the one currency the dollar can rise against. Australian stocks .AXJO jumped 2.48% for the biggest daily gain since July 21. Japan's Nikkei .N225 rose 1.19%. China's financial markets are closed for a public holiday. The dollar edged higher against the yen but fell slightly against the Swiss franc as traders jockeyed for position ahead of what could be a volatile day in global markets. Treasury yields rose slightly on reduced demand for the safety of holding government debt. Doctors treating Trump say they are pleased with his progress. Relief about his health has fuelled a rally in equities and other risky assets as investors prepare for the run-up to next months U.S. presidential election. Investors around the world were stunned late Thursday after Trump announced that he and the first lady had tested positive for coronavirus. With less than a month until the presidential election on Nov. 3, Trumps contraction of the coronavirus is another source of market volatility that makes the outcome of the vote even more difficult to predict. Democrat Joe Biden opened his widest lead in a month in the U.S. presidential race, according to a Reuters/Ipsos poll released on Sunday. The White House initially sent mixed messages about Trumps health, helping fuel political uncertainty and putting the investor focus tightly on any news about his condition. Some traders were particularly concerned by doctors admission that Trump had been given supplementary oxygen and steroids, which are normally used to treat severe cases of COVID-19. Doctors not involved in Trumps treatment said they suspected his condition might be worse than initially reported, because his age makes him more vulnerable to complications. White House doctors used remdesivir, an intravenous antiviral drug sold by Gilead Sciences GILD.O, to treat the president. The U.S. dollar rose 0.21% to 105.56 yen but fell 0.39% to 0.9174 Swiss franc CHF=EBS as some investors adjusted positions in safe-harbour currencies. The Australian dollar rose 0.26% to $0.7183 after the Australian government, which hands down a federal budget on Tuesday, announced additional wage subsidies to help the labour market. Yields on benchmark 10-year Treasuries rose to 0.7072% and the yield curve US2US10=TWEB steepened slightly in a sign that the majority of investors felt comfortable taking on more risk. Gold, another asset often bought during times of uncertainty, fell 0.32% to $1,892.74, highlighting increased risk appetite. Brent crude futures LCOc1 rose 2.09% to $40.09 a barrel while U.S. crude futures CLc1 gained 2.38% to $37.93 per barrel.
Global Markets: U.S. stock futures rise on Trump's health progress - Reuters India
Stocks and other risk assets rose on Monday as signs that Donald Trump's health was improving brought relief to markets after the uncertainty of his COVID-19 infection sent investors rushing for safety last week.
MILAN (Reuters) - Stocks and other risk assets rose on Monday as signs that Donald Trumps health was improving brought relief to markets after the uncertainty of his COVID-19 infection sent investors rushing for safety last week. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 2, 2020. REUTERS/Staff/File photo The U.S. President, 74, was flown to a hospital for treatment on Friday, but his doctors said he had responded well and could return to the White House as soon as on Monday. The MSCI world equity index, which tracks shares in 49 countries, was up 0.4% by 0812 GMT, supported by overnight gains across Asia and a positive start in Europe. The pan-European STOXX 600 rose 0.7%. S&P 500 futures rose 0.5% and Nasdaq futures 0.8%, indicating a similarly strong start on Wall Street later. Overhanging the relief rally, however, were concerns that Trumps case could be more severe than public disclosures suggest, and that more restrictive measures by governments to slow coronavirus infections could harm the economic recovery. Some traders were concerned by doctors admission that Trump had been given supplementary oxygen and steroids. Many questions remain including the use of the steroid drug ... which is usually reserved for those with severe illness, said Raymond James strategist Chris Bailey in London. Global cases now top 35 million and various new restrictions in Paris, New York, etc, A survey on Monday showed the euro zones economic recovery faltered last month as new restrictions sent its dominant service sector into reverse. IHS Markits final composite Purchasing Managers Index fell to 50.4, just above the 50 mark separating growth from contraction. Trumps infection also comes less than one month before the presidential election on Nov. 3, potentially fuelling more market volatility and making the outcome of the vote even more difficult to predict. In terms of the impact on the election, we havent seen enough polling to assess whether this increases or decreases his chances of winning, said Deutsche Bank strategists. According to a Reuters/Ipsos poll released on Sunday, Democrat contender Joe Biden opened his widest lead in a month in the U.S. presidential race. The volatility VIX index, known as Wall Streets fear gauge, remained close to the one-week high it hit on Friday. Meantime, suggestions Trump could leave hospital sent oil prices up more than 2%. An escalating workers strike in Norway that has shut four of Equinors oil and gas fields also helped drive the gains. Brent prices were up 2% at $40.1 a barrel and U.S. West Texas Intermediate added 2.2% to $37.9 a barrel. The dollar was little changed as investors awaited news about U.S. Trumps health and developments in fiscal aid talks in Washington. [FRX/] The dollar index was last down less than 0.1% on the day at 93.722. Yields on benchmark 10-year Treasuries rose to 0.7088% and the yield curve steepened slightly, signalling investors felt comfortable taking on more risk. But euro zone bond yields edged lower on concerns about possible new restrictions to fight the coronavirus. The French government has announced new restrictions, closing bars for two weeks. Other countries across Europe are also weighing up more measures. Gold, which is often bought during times of uncertainty, fell 0.35% to $1,892.1, highlighting increased risk appetite.