FOREX TRADING STRATEGY SEP 24 - RISE AND FALL
Today we will turn our heads to the hottest events in the financial world.
TikTok fights back
The owner of TikTok has asked a federal judge to temporarily prevent the Trump administration from removing the viral video sharing network from US app stores. TikTok faces either a deadline to accept the sale of its US operations later this week or a de facto ban in the US, stemming from General's August 6 executive order by President Donald Trump.
Wednesday's request for a preliminary ban - filed by Chinese company ByteDance - challenged new U.S. Commerce Department regulations that will remove TikTok from app stores starting this month and demand changes to its core functionality that the company says will effectively shut down in the US by mid-November. ByteDance requested a trial before the rules went into effect at 11:59 p.m. on September 27 and it is suggested that both sides submit additional briefs this week.
IPO of Ant Group
Jack Ma's Ant Group is aiming to raise $17.5 billion in the sale of shares in Hong Kong and will not seek to limit cornerstone investors, because it believes there will be a lot of investors. much in demand for one of the largest stakes in the financial center. The fintech giant has assessed investor interest, betting that they can capture a sizable market share in Hong Kong post-IPO without the need for key investors often needed for large deals. Ant is inclined to invite these major investors to participate in a Shanghai stake sale to minimize price volatility. The Hangzhou-based company is planning to issue new shares equivalent to about 11-15% of the outstanding shares and split the shares equally between Hong Kong and Shanghai. Ant is considering what could be the largest IPO in the world, looking to raise about $35 billion in dual listing with a valuation of around $250 billion.
Asian stocks tended to decline after warnings from Federal Reserve officials about the need for more stimulus pushed US stocks to an eight-week low. The dollar extended this week's rally. Futures markets in Japan and Hong Kong fell, while the S&P 500 index futures were little changed at the open. The benchmark is now down almost 10% from its recent peak and down another 2.4% on Wednesday. Treasury bonds have changed little. Caution is in place as coronavirus infections are increasing in the United States and other regions of the world. Traders are losing faith in the power of the economic recovery, with the possibility that Congress's stimulus is exhausted ahead of a controversial election war. Global equities are in the first month-to-month slide since March. Oil prices fell.
Can’t take off
The airlines have felt the pain of the coronavirus more clearly than the other companies. Almost overnight, most of their business was suspended. Now, almost eight months after the pandemic, cities are starting to close, and vaccines may be months away. Obviously there won't be a quick return. According to the International Air Transport Association (IATA), international air traffic in July was 92% lower than 2019 levels and showed no sign of improvement in August. According to Bloomberg data, more than 400,000 Airline jobs have been cut since February. Scott Kirby, chief executive of United Airlines, said: “This lasted much longer and was deeper than people thought. And our view is that demand will not return. People won't go back and travel like they used to until there is a widely distributed vaccine."
Time for hedge fund
A number of hedge funds based in Asia have benefited from an early vision of the impact of the pandemic to achieve outstanding returns this year, while hedge funds in the region are on track to surpass the global funds for the 8th time in 12 years.
Funds supervised by Anatole Investment, Aspex Management, CloudAlpha Capital and Franchise Capital have reaped more than 50% of profits this year through the end of August, monetizing bets on the electric car industry to e-commerce. while some tourism sectors suffer from difficulties. The proximity to China, the initial epicenter of the Covid-19 outbreak, has facilitated funds to see how the pandemic will play out elsewhere. Even before March, the four foundations focused on the tech industry and e-commerce - industries that have been supported by the virus epidemic. The flexibility to enter attractively priced private deals also helped them overcome the 23% gain of the MSCI World Growth Index.