· Yen claws back ground as looming winter chills vaccine cheer
The safe-haven Japanese yen climbed to a one-week high and a steady U.S. dollar held commodity currencies in check on Wednesday, as tighter economic restrictions across the United States and Europe tested market optimism over vaccine trials.
At 104.04 per dollar, the yen has recouped nearly two thirds of the steep losses it suffered last week after Pfizer announced it had developed a working Covid-19 vaccine.
Bitcoin, sometimes regarded as a haven asset, or at least a hedge against inflation, soared above $18,000 for the first time in nearly three years, while risk sensitive Asian currencies struggled, save for a rising Chinese yuan.
Surging cases have driven record hospitalizations and fresh restrictions on gathering in the United States, while new outbreaks vex authorities in Japan, South Korea and Australia.
Daily infections hit a record in Tokyo and the city is preparing to lift its alert status to the highest of four levels, local media said, which would involve asking some businesses to shorten their hours.
Federal Reserve Chair Jerome Powell said on Tuesday that there was “a long way to go” to economic recovery.
The Australian and the New Zealand dollar oscillated around flat or just below flat. Australian yields fell after the announcement of a six-day lockdown to combat a new Covid-19 cluster in South Australia.
The euro was steady at $1.1867, having hardly moved on vaccine news over the past week. That news includes Moderna’s successful trials, which European Central Bank President Christine Lagarde said would probably not be a major game changer for next year’s forecasts.
Against a basket of currencies the dollar held at 92.392 – a little softer than earlier in the week as a slight bond rally has knocked the shine off U.S. Treasury yields.
Elsewhere sterling edged higher as traders hoped for a Brexit trade deal breakthrough.
Britain’s chief negotiator David Frost has told Prime Minister Boris Johnson to expect a Brussels trade deal “early next week”, The Sun newspaper reported, with “a possible landing zone” as soon as next Tuesday.
However, while soft U.S. economic data weighs on broader sentiment, strong industrial output in China has kept the yuan’s barnstorming run alive, sending it to a new 29-month low of 6.5485.
The Chinese yuan has gained nearly 9% against the dollar since late May, despite the central bank taking various actions to temper its strength and it is becoming an increasingly popular conduit for bets against the U.S. dollar.
· FDA approves emergency use for first at-home Covid-19 test kit
The U.S. Food and Drug Administration (FDA) has approved emergency use for the first Covid-19 test that can be conducted entirely at home.
The agency cleared the single-use test, which provides results within 30 minutes, for use by anyone aged 14 and over if their health-care provider suspects they may have Covid-19.
Produced by a privately held, California-based biotech company, Lucira Health, the kit is also eligible for use in hospitals, though patients under 14 must have their sample collected by a health-care provider.
· U.S. medical leaders rebuke Trump, urge COVID-19 cooperation with Biden team
The U.S. medical establishment on Tuesday urged President Donald Trump to share critical COVID-19 data with President-elect Joe Biden’s team to avoid needless, deadly lags in tackling a raging pandemic that is threatening to overwhelm hospitals nationwide.
Dr. Vivek Murthy, co-chair of Biden’s COVID-19 taskforce, said Tuesday he and other medical advisers had been unable to discuss the pandemic with current administration officials, an obstacle that could compromise the U.S. response to the virus.
The United States crossed 11 million total infections on Sunday, just eight days after reaching the 10 million mark. The Midwest remains the hardest-hit U.S. region during the latest wave of infections, reporting almost half-million cases in the week ending on Monday.
Experts are predicting a ‘winter spike’ in cases this winter in December and January – right when our carnival calendars get rolling
· As options dwindle, Trump allies ask court to halt Biden's win in Nevada
U.S. President Donald Trump’s campaign on Tuesday announced a lawsuit to halt President-elect Joe Biden’s victory in Nevada, the latest in a flurry of challenges that legal experts have said will not change the election’s outcome.
Biden won Nevada by a 33,596-vote margin, according to the Nevada Secretary of State’s office.
· U.S. judge skeptical of Trump bid to halt Biden win in Pennsylvania
Judges have already tossed lawsuits in Michigan and Georgia, and a loss in the Pennsylvania case would likely doom Trump’s already remote prospects of altering the election’s outcome.
· Biden must get ‘creative’ to regain U.S. respect in Pacific region, says ex-Fed official Richard Fisher
President-elect Joe Biden’s administration will have to get “creative” in its attempts to rebuild America’s relationship with trade partners in the Asia-Pacific region, former Dallas Fed President Richard Fisher told CNBC on Tuesday.
The comments from Fisher, also a former deputy U.S. trade representative, came days after China and 14 other countries in the region signed an agreement to form the world’s largest free-trade bloc. The U.S. was not included in the deal, which Fisher said was “not a good thing.” Analysts have said the signing of the Regional Comprehensive Economic Partnership strengthens China’s influence in the area.
The U.S. had once been “viewed as the most important economy in the world. You couldn’t do anything without us. Well, they’ve done something without us in the Pacific region,” Fisher said on “Closing Bell,” noting the participating countries represent almost one-third of the world’s population.
· World’s largest shipping firm reports faster-than-expected third-quarter rebound
Maersk, the world’s largest container shipping firm, matched third-quarter profit expectations on Wednesday amid a stronger-than-expected pickup in demand.
The Danish company, seen as a bellwether for global trade, reported a 39% quarterly increase in earnings before tax, depreciation and amortization (EBITDA) to $2.3 billion, with $1.5 billion in free cash flow.
· Revenue fell by 1.4% on the year, less than the company had expected, with declines in the company’s Ocean and Gateway Terminals operations “partially offset by a revenue increase in Logistics & Services of 11% due to acquisitions,” the earnings report noted.
· Airlines scramble to prepare for ultra-cold COVID-19 vaccine distribution
Airlines are scrambling to prepare ultra-cold shipping and storage facilities to transport COVID-19 vaccines developed by Pfizer and Moderna, whose doses, which require deep freezing, are likely to be among the first to be distributed.
· UK hopes to get a Brexit trade deal, business minister Sharma says
· UK inflation picks up a bit more than expected in October
British inflation picked up by a little more than expected in October, pushed higher by prices for clothing and footwear and food as coronavirus restrictions tightened in much of the country, official data showed on Wednesday.
Consumer prices rose 0.7% in annual terms, after a 0.5% rise in September, the Office for National Statistics said. A Reuters poll of economists had pointed to a reading of 0.6%.
Unlike last year, food prices rose in October and people stocked up on potatoes and fruit.
Some surveys of consumers had pointed to renewed stockpiling as health restrictions spread through Scotland, Wales and Northern Ireland in October. A one-month lockdown was announced for England at the end of the month and started on Nov. 5.
· People will be allowed to work from home about half the time after Covid passes, CEO says
The chief executive of a German software company said feedback from customers indicates that companies will let staff spend half their time working from home after the coronavirus pandemic passes.
· Argentina seeks wealth tax to help COVID-19 hit families
The lower house of Argentina’s Congress on Tuesday began debating a bill seeking to raise 300 billion pesos ($3.75 billion) through a tax on large fortunes to finance programs aimed at helping families hit by the COVID-19 pandemic.
The government-backed bill may be approved late on Tuesday if debate does not continue past midnight, as some local media predicted. The Senate was expected to consider the legislation before the end of the month once it is passed by the house.
· Tokyo reports record daily virus cases, outbreak locks down Australian state
Daily coronavirus cases in Tokyo and South Korea hit fresh highs on Wednesday, as pollution-cloaked New Delhi struggled with rising cases and Australia reported a highly contagious virus strain which forced a state-wide lockdown.
· ‘All eyes’ on the Hong Kong-Singapore travel bubble as other Asian countries prepare for more, bookings firm says
Specially designated “air travel bubble” flights between Hong Kong and Singapore are due to begin on Nov. 22 after further details were released last week, which will see travellers switch quarantine for testing.
· Singapore biotech firm hopes for ‘widespread’ release of new Covid-19 treatment by early 2021
A new Covid-19 treatment could become available in Singapore and beyond by early 2021 as homegrown biotech company Hummingbird Bioscience joins major names in making steps to combat the coronavirus.
· Thai lawmakers vote on constitutional change in face of protests
Thai members of parliament voted on Wednesday on options for changing the constitution, with most of them opposed to a demand from protesters for a proposal that could mean changes to the role of the powerful monarchy.
· Oil mixed as hopes OPEC+ delays supply increase offset demand concerns
Oil prices were mixed on Wednesday as a bigger-than-expected build in U.S. crude stocks and weaker U.S. retail sales stoked fears over fuel demand, although hopes that OPEC and its allies will delay a planned rise in oil output lent support.
Brent crude futures for January LCOc1 rose 3 cents, or 0.1%, to $43.78 a barrel by 0430 GMT, while U.S. West Texas Intermediate crude for December CLc1 eased 3 cents, or 0.1%, to $41.40 a barrel.
The American Petroleum Institute (API) said on Tuesday that U.S. crude stockpiles rose by 4.2 million barrels last week, well above analysts’ expectations in a Reuters poll for a build of 1.7 million barrels. [EIA/S] [API/S].
· Britain to ban new petrol cars and vans by 2030 on road to net zero emissions
Reference: Reuters, CNBC
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