| U.S. stimulus looks unlikely before the election. Two key vaccine trials may restart this week. And big-name hedge funds raise billions in Asia. U.S. stocks ended a volatile session slightly lower amid signals that an American fiscal stimulus package is unlikely to become law prior to next month's election. Asian stocks were poised for a mixed start to Thursday trading: Futures dipped in Japan and Australia while those in Hong Kong rose. The yield on 10-year Treasuries broke above 0.8% to the highest since June. The offshore yuan continued to strengthen. Elsewhere, the pound jumped after European Union chief Brexit negotiator Michel Barnier said a deal is within reach. U.S. trials of vaccines made by AstraZeneca and Johnson & Johnson are expected to restart as soon as this week, according to Moncef Slaoui, the head of Operation Warp Speed. J&J paused its trial last week when a participant got sick, while AstraZeneca's U.K. trial was paused last month after a woman developed neurological symptoms. In other trial news, a participant who died during Astra's study in Brazil hadn't actually received the company's shot, according to a person familiar with the matter. Meanwhile, U.S. hospitalizations for Covid-19 hit the highest point since Aug. 22. Established Asian hedge funds have attracted the lion's share of new money this year, while startups have been hamstrung by global travel curbs that have made it impossible for face-to-face meetings with European and U.S. asset allocators. Well-known firms including Tribeca Investment, Pleiad Investment Advisors, Dymon Asia Capital (Singapore) and Sylebra Capital have drawn more than $3 billion of new money among them this year, according to Eurekahedge. Meantime, the median raising for new Asia funds this year is just $20 million. Here's where funds made money. U.S.-China tensions escalated as the American government designated six more Chinese publications as "foreign missions." They join a list of media outlets described as controlled by Beijing, which must meet requirements similar to those imposed on embassies and consulates in America. The outlets include the Economic Daily, which provides an important window into Beijing's economic views, and the Jiefang Daily, the official publication of Shanghai's powerful Communist Party Committee. The two nations are already embroiled in an ongoing dispute over journalist visas. Cathay Pacific and Singapore Airlines are both in deep financial strife and shedding thousands of jobs thanks to the coronavirus crisis — but Hong Kong-based Cathay looks a little worse off, analysts say. The airline is laying off nearly 6,000 people and eliminating 2,600 vacant positions, amounting to about 24% of its total workforce. It is also shuttering regional unit Cathay Dragon. The goal is to reduce unsustainable cash burn by HK$500 million ($65 million) a month, a move welcomed by investors: the company's shares climbed as much as 6.6% Wednesday. Cathay's cull follows Singapore Airlines's September announcement that it was cutting 20% of its workforce. What We've Been ReadingThis is what's caught our eye over the past 24 hours: And finally, here's what Tracy's interested in todayWhat would a win by Joe Biden actually mean for China, its economy, and its markets? There's a consensus view that the Democratic nominee would be more beneficial, from China's perspective, after four years of Donald Trump's hardline stance when it comes to trade and putting "America First." Biden would be more predictable when it comes to foreign and economic policy, and far less likely to announce abrupt policy changes over Twitter.  On the other hand, there's a strong argument that Biden could prove to be more economically harmful for China by doing something Trump has never been able to: unite U.S. allies towards shared common goals. Trump's penchant for unilateralism was arguably a help to China as much as a hindrance, ensuring that the president went after multiple trade targets at once and never successfully encouraged other countries to oppose China together. In that sense, Biden's multilateral approach may be a more painful one for China's economy. You can follow Tracy Alloway on Twitter at @tracyalloway. | 
Post a Comment