1. U.S. Markets Rally Boosted by Quarterly Profits
U.S. markets are set to close at the week’s high after a dramatic fall on Monday and last Friday. Major indices are heading towards fresh all-time highs with corporate profits for the last quarter beating all estimates.
Data from Bloomberg shows that 87% of S&P 500 companies who have reported profits so far have beaten analysts estimates. Credit card company American Express jumped more than 5% after adding a record number of new customers to its Platinum card in the quarter.
Stoxx Europe is up 0.96%
Dow Jones is up 0.56%
NASDAQ is up 0.25%
2. Chip Shortages To Continue In 2022
Economists and Analysts expect the semiconductor chip shortage to continue in 2022 and will hit smart devices like mobile phones etc. Many Taiwanese semiconductor companies have boosted production in China because the Covid restrictions have affected the production in Taiwan. But this won’t be sufficient as the auto sector has already been in pain.
3. Tokyo Olympics Linked Covid Cases Tops 100 Mark
The number of Tokyo Olympics linked Covid-19 positive cases crossed the worrying 100 marks on Friday with the addition of 19 new cases. The Olympic games will open officially today with a ceremony having a maximum of 1000 people.
4. Cobham Offers $3.6 Billion To Buy Ultra Electronics
British Aerospace and defense group Cobham on Friday offered $3.6 billion(Rs 26,796 crores) to take over the rival Ultra Electronics. The latest bid is about a 42% premium to Ultra’s last closing price and the new offer of 35 pounds a share is better than the previous offer of 28 pounds a share.
5. Sinopharm Vaccine may offer poor protection for Elderly, study says
A study from Hungary has shown that China’s Sinopharm vaccine offers ‘poor protection’ from Covid-19 for the elderly. Many South American and Middle Eastern countries, including United Arab Emirates have taken Sinopharm shots for their population.
Even though it was a small sample size of 450 people, not even one subject above 80 years had antibodies after taking the vaccine.
6. China asks Tutoring Companies to go Non-Profit
China is planning to ask companies that offer tutoring on the school curriculum to go non-profit. The country has an education industry valued at more than $100 Billion(~Rs 7.4 lakh crores). Shares related to the industry crashed.
These platforms won’t be allowed to raise capital or go public. Listed firms may also no longer be allowed to invest in or acquire education firms teaching school subjects.
7. Volvo Cars Jumps to Profit in First Half of the Year, IPO Soon
Volvo Cars, owned by China’s Geely Holding, has returned to profits in the first half of the year. It posted a profit of over $1.5 Billion(Rs 11,000 crores) against a loss of $989 Million(~Rs 7300 crores) in H1 last year.
Profits have been boosted by growing demand for electric cars, and is higher than the 1st half profits of 2019 before Covid-19 hit.
The company is considering carrying out an initial public offering (IPO) before the end of this year.
8. Telegram Founder Says He Was Aware Of Pegasus Spyware Since 2018
Telegram founder Pavel Durov said on Friday he was aware of being a target of Pegasus spyware since 2018 itself. He received the information saying that one of his mobile numbers was on the spyware target list. He said that he was not worried about being tracked.
9. Banks Rethink Evergrande Mortgage Halt After HKMA Queries
At least two of Hong Kong’s biggest lenders are reconsidering halts on mortgages for China Evergrande Group’s unfinished properties, after the decisions were questioned by the city’s de facto central bank, according to people familiar with the matter.
The potential turnabout by HSBC Holdings Plc and Bank of China Ltd.’s Hong Kong unit comes just days after the banks suspended the mortgages amid mounting doubts about Evergrande’s financial health.