Oct 09 2020 0
Here are the most important news of today, October 9th.
Ant Group’s IPO
Jack Ma's highly anticipated market launch opportunity for Ant Group has probably shrunk to the US electoral chaos. Their bankers grapple with any potential delays stemming from a Washington debate over restrictions on huge payments. Discussions on how and whether to limit Ant - as well as Tencent's payment systems - have been heated among senior US officials in recent weeks, though not yet raised. final decision. The talks come as Ant Group is expected to raise about $35 billion from parallel IPOs in both Shanghai and Hong Kong earlier this month. China's largest payment company has been approved for listing on the mainland, but is awaiting a hearing with the Hong Kong Stock Exchange. If Ant aims to pass the US election on November 3, it must at least be given a green light in Hong Kong in mid-October.
A quiet market
Asian stocks are likely to start the quiet session as investors continue to research the possibility of US stimulus amid increased deal activity. Treasury bonds go up and the dollar depreciates. The futures market has changed little in Japan, with an increase in Hong Kong and Australia. The S&P 500 Index closed with a gain despite mixed comments from Presidents Donald Trump and Nancy Pelosi upset the market earlier in the day. Crude oil soared as Hurricane Delta approached the already devastated Louisiana coast. All eyes will be on the reopening of the Chinese market on Friday after a week-long holiday.
Gorman’s big move
Morgan Stanley chief executive James Gorman made a blitz to turn a traditional company from a Wall Street expert into a giant in the world of money management. Gorman's two latest major acquisitions - the takeover of E*Trade Financial and now the $7 billion acquisition by asset manager Eaton Vance Corp., announced on Thursday - are the biggest ever. by any of the major banks in Wall Street's post-crisis rebirth. And both were done over a period of just 10 months. The acquisition guarantees Morgan Stanley's wealth and wealth management group to hold a position that eclipses the bank's core operations, despite its dominance. And Gorman, who has been backed by stock prices outperforming major Wall Street rivals this year, says the 38% premium he pays to acquire Eaton Vance's roughly $500 billion fortune is "reasonable".
Investment in Bitcoin
Square said it has invested around $50 million in Bitcoin, reinforcing CEO Jack Dorsey's vision of the currency as an economic empowerment tool. The financial settlement firm said it had bought about 4,709 Bitcoins, representing about 1% of Square's total assets as of the end of the second quarter. Dorsey has long been interested in cryptocurrencies. In 2014, Square started allowing merchants to accept Bitcoin and has since introduced Bitcoin trading to its Cash App users. In 2019, the company founded Square Crypto, an independent group focused on contributing to open source work using Bitcoin and cryptocurrencies. Bitcoin recovered its previous losses in Thursday trading, up 0.9% to trade around $10,740. Square shares rose 1.7 percent at 9:31 a.m. in New York.
According to Japan's new Deputy Finance Minister, China's repression of Hong Kong and new restrictions on foreign workers in Singapore could help Japan elevate its status as a global financial hub. regardless of the higher tax rate. Kenji Nakanishi said in an interview on Wednesday: “It is not possible to put exactly the same taxes in places where the cost of social security is not as high. But we often hear that even a small change makes a difference and the government needs to send some kind of clear message ”. Prime Minister Yoshihide Suga, who took office last month and appointed Nakanishi, sees the need to make Japan able to invite more overseas financiers as part of his reform agenda. This week, he said he wants to accelerate his efforts to cut some taxes to achieve this goal and provide more business services in English.