FOREX TRADING STRATEGY NOV 9 - NEW PRESIDENT
Here are the latest news on Monday after a whole election week in the US. Let's see how the market reacts to the news and how we should trade accordingly.
Newly-elected President Joe Biden is kicking off his transition effort and preparing a plan to curb the coronavirus pandemic while President Donald Trump weighs in on legal challenges and has so far refused to give in. Within Mr Trump's internal circles, recognition is growing that attempts to overturn Mr. Biden's victory will be in vain.
Mr. Biden has called on the Americans to put the split over the past four years in his winning speech. The former vice president who has won or is leading in the states will award him 306 electoral college votes, much higher than the 270 victory threshold. Meanwhile, new Vice President Kamala Harris is the first woman, the first black and the first Indian American to take over the position.
Market on Monday
Asian markets are poised to react to election results after US stocks soared on Friday. The dollar started the new week with a modest drop that spanned last week's move, as markets resumed future valuations under Mr. Joe Biden. Australian and New Zealand dollars rose in early trading on Monday. The Turkish lira rose after the departure of the country's finance minister and central bank governor. Global stocks are having their best week since April - they were up more than 7% last week - as technology stocks are up. Mr. Biden's victory could give impetus to emerging markets.
Chaos in Turkey
Turkish Finance Minister Berat Albayrak, son-in-law of President Recep Tayyip Erdogan, unexpectedly resigned on Sunday, causing further turmoil in the management of the government's economy after the central bank governor suffered fired on Saturday after the lira incident. Albayrak used health reasons to decide to resign. The minister resigned after Erdogan's sudden decision to appoint former Finance Minister Naci Agbal as central bank governor. Agbal is famous for opposing Albayrak's policies over the past two years, when the lira lost nearly half its value against the dollar.
A quiet Singapore
Prime Minister Lee Hsien Loong said the Singapore economy is unlikely to flourish "too dramatically" when key export markets in Europe and the US are facing a new coronavirus outbreak. While many sectors have shown improvement since the blockade measures were eased, some sectors such as aviation, transportation and tourism are likely to remain in a “shutdown" for a while. Mr. Lee Hsien Loong said in a speech to members of his ruling party on Sunday. Singapore will allow some bars and nightclubs to reopen next month as coronavirus infections in the city subside.
Buying from himself
Warren Buffett might just find his next big deal: his own stock buyback. Berkshire Hathaway spent $16 billion to buy back its stock in the first nine months of 2020, more than three times its previous annual record. The acquisitions even surpass many of Berkshire's biggest investments in recent years. Record acquisitions, along with investments in Japanese traders and purchases of natural gas assets, mark a shift from the start of the pandemic, then, Warren Buffett takes a more conservative approach. Buffett spent Berkshire's cash in the third quarter, causing that amount to drop slightly to $145.7 billion.