1. Futures Mixed; Europe Stocks Rise on Cyclicals

U.S. futures were mixed and European stocks rose as investors held out hopes that top officials on both continents will resolve disputes over unleashing further stimulus for their battered economies. S&P 500 futures pared an early decline and Nasdaq 100 contracts edged higher as investor anxiety began easing hours after the unusual public disagreement between the Treasury and the Federal Reserve over releasing funds to further kickstart the economy. The Stoxx Europe 600 Index headed for its third week of gains. Mining and energy firms led the advance as commodities from oil to copper rallied.

S&P 500 futures fell 0.1% at early morning New York time.

The Stoxx Europe 600 index gained 0.3%.

The MSCI Asia Pacific Index rose 0.3%.

The MSCI Emerging Market Index advanced 0.4%.

2. Tesla’s S&P 500 Debut May Spark $8 Billion Demand, Goldman Says

Tesla’s already impressive stock market rally might be on the verge of a further massive boost. The electric carmaker’s scheduled Dec. 21 inclusion in the S&P 500 Index could result in $8 billion (INR 60,000 cr) of demand from active U.S. large-cap mutual funds, according to analysts at Goldman Sachs. “Of the 189 large-cap core funds in our universe, 157 funds that manage around $500 billion in assets under management did not hold Tesla on Sept. 30,” the analysts wrote. Assuming those funds chose to hold the carmaker at benchmark weight, they would need to buy $8 billion of the stock or about 2% of Tesla’s market value, the analysts said.

Tesla is the best-performing large-cap stock in the U.S. this year, soaring about 500%, as investors show increasing confidence that electric cars, trucks and buses will dominate the future of the auto and transportation industries.

3. China Deepens Probe on Banks After Busted Bond Deal

China’s market regulator expanded its investigation into bond sales for a state-backed coal miner that unexpectedly defaulted on bond payments last week, dragging in a number of banks, rating and accounting firms. The probe centers around deals for Yongcheng Coal & Electricity Holding Group Co., whose missed payment last week rocked the Chinese credit market. That default was followed by others from state-linked firms, long considered to be immune from such credit events because of their implicit government backing. The turmoil has caused a sell-off in bonds and some deals to be scrapped. Amid the deepening stress, officials from China’s State Council have asked government departments to conduct a risk assessment.

4. EU Warns U.K. Hasn’t Compromised Enough for Brexit Deal

The European Union warned that the U.K. hasn’t moved sufficiently to overcome the main obstacles to a post-Brexit trade deal as three of the bloc’s leaders called for contingency plans to be stepped up in case there is no agreement. At a meeting in Brussels on Friday, Secretary-General of the Commission Ilze Juhansone told envoys from the EU’s 27 member states that negotiations could now slip into December as progress has been slow. Late on Thursday, the leaders of France, Belgium and the Netherlands called on the bloc to make contingency plans in case a deal fails to materialize. If that happens, businesses and consumers will face disruption as tariffs and quotas return.

5. Singapore Tightens Border Steps for Entry From Malaysia, Japan

Singapore will tighten border measures for travellers who have been to Malaysia or Japan amid a resurgence of coronavirus cases in those countries. All travellers who have been to Malaysia or Japan in the past two weeks will have to serve 14-day stay-home notices at designated facilities. It applies to travellers who have been in either country who enter Singapore after November 22. Travellers who enter from Malaysia after November 27 also must take a Covid-19 test within 72 hours before departure and must show a negative result to enter Singapore. The test requirement won’t apply to Singapore citizens or permanent residents.

6. Hong Kong Virus Cases Surge Again as City Sees ‘Fourth Wave’

Hong Kong will impose new social restrictions and ask more students to stay home as local cases jump by the most in about three months, signalling the arrival of a new wave and threatening a high-profile travel air bubble with Singapore days before its launch. The city reported 26 new infections on Friday, of which 21 are local. Nine of the local cases can’t be traced. The government has also detected over 40 preliminary cases awaiting confirmation, a sign that Friday’s jump is not an anomaly. The surge comes as other parts of Asia see alarming flare-ups as colder weather sets in. Classes for primary school levels 1 to 3 will be suspended from Nov. 23 for two weeks. Kindergartens and nurseries have been suspended since a week ago due to outbreaks of upper respiratory tract infection and the risks of coronavirus resurgence.

7. Philippines Sees Surge in Financial Scams During Pandemic

Suspicious transactions reports received by the Philippines’ anti-money laundering body rose 57% in January to August from a year ago amid the wide use of digital platforms during the pandemic. About 29% of the total reports occurred from mid-March when movement restrictions were imposed to combat Covid-19, from a study conducted by the Anti-Money Laundering Council. Suspicious transaction reports related to electronic banking transactions grew by 1,680% for inward fund transfers and 5,158% for outward fund transfers, the study showed. Reports from electronic money issuers increased by 688%; and from pawnshops and money service businesses by 51%.

8. China says has given debt relief of $2bn to developing countries

China has extended debt relief to developing countries worth a combined $2.1bn (INR 16,000 cr) under the G20 framework, the highest among the group’s members in terms of the amount deferred, the country’s finance minister Liu Kun said on Friday. Liu’s comments come as African countries, struggling with the COVID-19 pandemic, face another debt crisis, and will need more long-term help than the latest G20 Debt Service Suspension Initiative (DSSI) offers them to ward off trouble and keep much-needed investments coming in.

9. Japan consumer prices fall at fastest pace in a decade in October

Japan’s core consumer prices fell in October at the fastest annual pace in nearly a decade as the boost from last year’s sales tax rise petered out, heightening concerns of a return to deflation as the country battles record cases of COVID-19. Analysts expected consumer prices to continue falling in the coming months due to sluggish consumption, casting doubt on the central bank’s view Japan will eventually see prices bounce back towards its elusive 2% inflation target. A resurgence in coronavirus infections also clouds the outlook, as it may hurt consumption and dent the boost to growth from the government’s stimulus measures, they said.

10. UK, Canada could announce free trade deal within days

The UK is negotiating several bilateral trade deals to come into force once it exits a transition arrangement with the EU at the end of the year. The United Kingdom and Canada are very close to agreeing on the terms of a free trade deal, which could be announced in the coming days, a Canadian government source said on Thursday. The UK is negotiating several bilateral trade deals to come into force once it exits a transition arrangement with the European Union at the end of this year, and many of them would simply replace the terms the bloc had already agreed. After leaving the EU in January, Johnson is trying to shape a “global Britain” that can strike out alone and negotiate better agreements than the bloc. But so far, his critics point out, the deals have largely been the same.

Curated from Bloomberg.com