Global Market News

Global equities declined on the week
Global equities took a tumble this week as Covid-19 cases surged across the US and Europe. The yield on the US 10-year Treasury note reached a four-month high of 0.84% while the price of a barrel of West Texas Intermediate crude oil dropped 2.8% to $39.73. Volatility continued its uptick, increasing to 28 from 26 last week.

China to be only major world economy to grow in 2020
Recent economic data out of China shows the national recovery is picking up steam. The growth rate reported for Q3 GDP was 4.9% as compared to a year ago, bringing the first three quarters of the year to a growth rate of 0.7%. Chinese consumption rates continue to lag but industrial production rose 6.9% in September. The International Monetary Fund expects China will be the only major world economy to post positive growth this year, at a rate of 1.9%.

Updated Market Figures

Coronavirus Updates

Covid-19 by the numbers
Global Confirmed Covid-19 cases: 42,000,000 Global Covid-19 deaths: 1,140,000
US Confirmed Covid-19 cases: 8,490,000 US Covid-19 deaths: 223,000
*As of Friday evening

The world hits 40 million Covid-19 cases as second wave gains strength
The global coronavirus case count surpassed 40 million this week as, what many are calling a second wave, gained strength. Europe and the US are having a particularly hard time controlling the virus. Some experts believe a second wave in Europe began in August as national lockdowns were eased. Now, more and more European government are reintroducing restrictive measures. Daily new cases in the US are continuing to rise in more than half of the states.

Geopolitics Spotlight

Libya announces permanent ceasefire
Libya’s warring factions have agreed to a permanent ceasefire in all areas of Libya. The announcement comes after the internationally recognized Government of National Accord (GNA) and rebel commander Khalifa Haftar’s Libyan National Army (LNA) met for talks in Geneva this month. The bloody civil war, which has included the involvement of a host of foreign powers on both sides, began almost ten years ago, after Muammar al-Qaddafi was overthrown.

Nigerian security forces fire on protesters
Amnesty International reported on Wednesday that Nigeria’s security forces had fired on peaceful protesters, killing at least 12 and injuring others. For the last few weeks there have been widespread protests against police violence. The demonstrations initially began to demand the end of the police Special Anti-Robbery Squad (SARS), but have since become a wider demand for an end to police brutality and for better governance. So far, at least 56 people have died during the protests.

US Social & Political Developments

Last presidential debate highlights competing visions
In a much more civil debate as compared to their first face-off, President Trump and Joe Biden clashed over the economy, the nation’s coronavirus response, and several foreign policy issues, among other topics. According to Five Thirty Eight polls, Biden has about an 8% lead over President Trump.

Corporate/Sector News

Google anti-trust case

The US Department of Justice and 11 states have filed an antitrust suit against Google. The lawsuit centers around Google’s search engine with allegations that the company uses deals with distributors to make sure Google is the default search engine for US customers. The lawsuit is being called the highest profile antitrust case since the Microsoft case in the 1990s.

Goldman Sachs to pay for scandal

Goldman Sachs will pay a record-breaking fine of $2.9 billion and plead guilty for its involvement in the 1MDB investment fund scandal. Adding to the fines and settlements paid in Hong Kong and Malaysia, this new penalty being paid in the US brings the bank’s total cost to more than $5 billion.

PayPal launches new cryptocurrency service
PayPal has launched a new cryptocurrency service that allows customers to buy, hold and sell cryptocurrencies from their PayPal account. The company also has plans to make cryptocurrency available as a payment option for purchases at its merchants.

Recommended Reads

James Stavridis on global order amid potential election chaos
The Justice Department’s lawsuit against Google will not stop Big Tech’s abuses
EU Targets $36 Billion Social Bonds This Year After Record Deal
China-US shipping costs soar on pandemic restocking
How the U.S. Presidential Election Looms Over Trans-Atlantic Trade Ties
A distracted US is dangerous for Taiwan
Europe fears the worst as coronavirus surge threatens to overwhelm hospitals

This week from Black Summit

Necessary but Insufficient: Monetary Boogeymen and Valuations – Joel Charalambakis
Covid-19, US Elections, and the Day After – Tyler Thompson and Rachel Poole

Image of the Week

Video of the Week

The rise of robots…is actaually good news for us humans

Source: World Economic Forum