WORLDWIDE : HEADLINES
Biden taps progressives, unions for economic, trade and finance transition
WASHINGTON – U.S. President-elect Joe Biden tapped finance, trade, and banking regulatory experts for his transition team that ranged from core Democrats to progressive activists, reflecting ongoing debate within the party about how to address economic issues from wealth inequality to climate change.
Biden’s “agency transition teams,” named in a statement here on Tuesday afternoon, are tasked with liaising with the outgoing Donald Trump administration for a smooth transition.
The names on the list will not necessarily join the new administration, although some may. They “reflect the values and priorities of the incoming administration,” the statement said.
Experts on economics, the Federal Reserve and Treasury Department include familiar names from the Democrats’ deep bench of former Barack Obama administration officials to emerging voices who have argued that the U.S. government should do more to reduce inequality.
Experts tapped for the U.S. Trade Representative’s office show strong union interests, including AFL-CIO campaign leaders Julie Greene and former AFL-CIO trade official Celeste Drake.
Notable advisers to the banking and markets regulatory team include its lead, Gary Gensler, who served as chair of the Commodity Futures Trading Commission (CFTC) from 2009 to 2014 and oversaw the implementation of key reforms following the 2009 financial crisis; and Andy Green, managing director of Economic Policy at liberal think tank the Center for American Progress.
Full coverage: REUTERS
Brazil backs U.S. Clean Network proposal for transparent 5G technology
BRASILIA – Brazil’s government on Tuesday backed the United States’ Clean Network proposal to build a global digital alliance that excludes technology that Washington sees as manipulated by China’s Communist government.
The adherence came during a visit by Keith Krach, U.S. under secretary of state for economic growth, energy and environment, who has advised Brazil not to buy fifth-generation (5G) telecommunications network equipment from China’s Huawei Technologies Co Ltd [HWT.UL], which he has called “the backbone of China’s global surveillance.”
Huawei has repeatedly denied being a security risk. It has said it abides by Brazil’s laws and is available for tests and clarifications that authorities considered necessary.
“Brazil supports the principles contained in the Clean Network proposal made by the United States,” said a joint U.S.-Brazil statement issued after Krach met with Brazilian foreign ministry officials.
The initiative is “aimed at promoting, in the context of 5G and other new technologies, a safe and transparent environment compatible with democratic values and fundamental freedoms,” it said.
Full coverage: REUTERS
WORLDWIDE : FINANCE / MARKETS
Stocks up as vaccine shields against second-wave worries
SYDNEY/BOSTON – Stock markets gained on Wednesday, as news of a working COVID-19 vaccine seemed to inoculate investors against worry about surging infections in Europe and the United States, while the kiwi rose as traders thought the central bank sounded upbeat.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4% and Japan’s Nikkei rose 1%, although most of the action was switching between sectors within markets, as investors shift from coronavirus winners into some of the hardest hit sectors.
Banks, for example, made modest additions to Tuesday gains, as did energy and some travel stocks while tech companies fell. Oil futures sat by two-month highs on anticipation of better demand in a post-pandemic world. [O/R]
Currency markets were mostly steady save for the kiwi, which climbed half a percent to a 19-month high after the Reserve Bank of New Zealand kept rates on hold, as expected, but sounded less dovish than forecast about the outlook.
Other majors and fixed income markets were mostly flat with traders unwilling to extend a selloff in the haven assets of bonds and the yen while a trying northern winter looms. [FRX/]
S&P 500 futures wobbled either side of flat and Nasdaq 100 futures rose 0.4% after another session of Wall Street selling of hitherto soaring big tech firms. [.N]
“A rotation theme remains evident in equity markets,” said National Australia Bank strategist Rodrigo Catril in a note.
“Big tech, which has benefited from our virus-driven change in behaviour, is now falling out of favour while small-cap stocks and those that have been most affected by social distancing restrictions have outperformed.”
Full coverage: REUTERS
Dollar bounce put on hold as coronavirus vaccine euphoria fades
TOKYO – The dollar’s gains were put on hold on Wednesday as optimism about a coronavirus vaccine was offset by worries about how the drug will be delivered and by a surge of new infections in the United States.
The New Zealand dollar is in focus ahead of a central bank meeting later on Wednesday that may shed light on whether policymakers will adopt negative interest rates.
Initial optimism about coronavirus vaccine testing pushed the dollar up against the safe-harbour yen and the Swiss franc, but this momentum is starting to fade because there are still several obstacles to clear before a vaccine can be distributed.
“The dollar recovery is on hold for now because, when you look at the details, there are still a lot of hurdles to clear before any vaccine is rolled out,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.
“However, the dollar is supported by rising Treasury yields, which should help the dollar make another push higher before year’s end.
The dollar was last quoted at 105.23 yen JPY=D3, trading near a three-week high.
Against the euro EUR=D3, the dollar was little changed at $1.1820.
The British pound GBP=D3 traded at $1.3260, close to a two-month high due to growing optimism that Britain and the European Union will agree a long-sought-after trade deal.
Sterling also held on to overnight gains against the euro EURGBP=.
Sentiment for the dollar got a boost after Pfizer Inc PFE.N and BioNTech 22UAy.DE said on Monday their experimental coronavirus vaccine was 90% effective.
Full coverage: REUTERS
Nearly $2 trillion traded on COVID-19 vaccine news
LONDON – News of a breakthrough in the race to find a COVID-19 vaccine sparked one of the heaviest trading days since the height of the pandemic crisis, according to early data analysed by Reuters, with nearly $2 trillion changing hands on Monday.
Traders stampeded to the riskier plays in equities, foreign exchange and bond markets after Pfizer Inc PFE.N released positive data on its vaccine trial, while rotating out of safe havens such as technology stocks, Japanese yen JPY= and top-rated bonds.
“Volumes (are) also surging as programmes and baskets go to work to either correct portfolio balances or address margin calls,” said Mark Taylor, sales trader at Mirabaud Securities, highlighting a jump in volumes in the airlines and banking sectors.
In the United States, nearly $500 billion worth of trades went through stock markets on Monday, one of the busiest days since March, when coronavirus lockdown fears rattled financial markets. Europe saw $120 billion traded, according to Refinitiv data.
Value stocks, typically companies that are more sensitive to economic cycles, notched their best one-day performance against their growth-focused peers ever in the United States after Monday’s news of an effective vaccine against the coronavirus.
Full coverage: REUTERS
