Jul 10 2020 0
The followings are the most important events of today, July 10th.
First move from US
The United States has punished a leading member of the ruling Communist Party and three other officials for violating human rights in Xinjiang province - a major escalation in the increasingly tense relationship between the government. Mr. Trump with China. The US move comes from the detention of Uyghur Muslims in Xinjiang - a policy that has been strongly criticized by top US officials and human rights groups.
The sanctions come amid tensions between Washington and Beijing over the source of the coronavirus pandemic and when China is applying national security laws to Hong Kong to quell dissent and a debate over whether the United States and its allies should use Chinese technology. Everything seems to be in turmoil - for now, global banks are at risk of violating China's new security laws if they comply with the United States.
Asian stocks are following US stocks slightly lower amid fears that a revival in coronavirus infections could slow global economic recovery. Oil fell below $40/barrel and Treasury Bonds soared. The futures markets in Japan, Hong Kong and Australia all fell. The S&P 500 had previously fallen 0.6%, with the worst performance coming from financial companies' stocks as Wells Fargo was preparing to cut thousands of jobs because of the pandemic. However, the technology-oriented Nasdaq has reached a new record high. Treasury bonds with longer maturities have rallied because of strong demand. The beginning of Chinese deals will focus on Friday when the Shanghai Composite Index offers bids for the ninth day of gains.
Singapore will conduct the polls today as Prime Minister Lee Hsien Loong's ruling party seeks to expand its 55-year rule with a new mission to combat the worst recession ever. far by the state. Special precautions such as temperature screening, disposable gloves and safety distance rules are being implemented at polling stations, open from 8:00 am to 8:00 pm . The vote counting will start soon after, the final results may be announced at the end of Friday or early Saturday. This may be Lee's final election before he authorizes officials known as the "fourth generation" of the People's Action Party (PAP) led by Deputy Prime Minister Heng Swee Keat, who assisted the government's spearhead in responding to the Covid-19 epidemic. While Singapore bans public opinion polls during election campaigns, analysts and opposition parties still hope that PAP will easily win the most votes and form the next government. However, any drop in support compared to the 2015 election could potentially affect Mr. Li's succession plan, or cause the government to adopt populist measures like in 2011 after their worst election results ever.
Reaching the limit
The widespread selling of debt around the world poses a risk to bond buyers, typically Man Group, the world's largest publicly-traded hedge fund company. Companies worldwide have sold more than $2 trillion in bonds this year, up 55% from the same period last year and have reached a record, according to data compiled by Bloomberg. With Covid-19's devastation to the global economy, the government and state agencies have raised $1.6 trillion this year to fund stimulus spending. economically, the most since 2009. Lisa Chua, portfolio manager at Man GLG - a unit of Man Group, also participates in other big funds like Oaktree Capital Management, said: "After the The sell-off in the market in March, the supply can easily be absorbed by demand when investors increase the risk of going back to a cheaper valuation, but we think that we can now be near to the tipping point." - A warning that the market may reverse after a brief rebound. Meanwhile, a devastating sell-off, which for the Chinese government has made government bonds one of the world's worst performers, is showing no end soon.
SoftBank wins big
With a rise to the highest price in two decades of SoftBank shares, the total net worth of founder Masayoshi Son reached $20 billion on Thursday, more than doubling from $8.4 billion. in March, according to the Bloomberg Billionaires Index. This is the first time the 62-year-old man's fortune has hit the $20 billion mark since January 2013, when the wealth charts began putting him on the watchlist for the first time.
This 20 billion figure excludes about $13.3 billion of his SoftBank Group stock pledged as collateral, accounting for about 40% of his stake. In addition, more than 26% of his other shares are lent to various entities, mainly brokerage firms, that are able to add liquidity to the market. These shares are included in Mr. Son's net worth because he still controls them. SoftBank shares have risen 134% from a bottom in March, bringing the market value of the Tokyo-based company to $123 billion. While its Vision Fund lost nearly $18 billion in its most recent fiscal year when investments in WeWork, Uber, and others failed, the acquisition of equity and a series of victories helped SoftBank's stock to recover.