Editor Brian Harrod Provides Comprehensive up-to-date news coverage, with aggregated news from sources all over the world from the Roundup Newswires Network
The video game retailer has become one of the hottest stocks this year in a tale that illustrates the changing face of investing
The coronavirus pandemic hit GameStop hard. Like many retailers, already suffering from the shift to online sales, the video games chain is losing money and plans to close 450 stores this year. And yet, surprisingly, GameStop has become one the hottest stocks of the year.
The 37-year-old chain store group is now the focus of a David-and-Goliath battle between an army of small investors and Wall Street that shows no signs of abating and has highlighted some fundamental shifts in investing.
UK footwear brand expected to launch market listing on Monday, with CEO in line for stake worth £58m
The British footwear brand Dr Martens is expected to launch a stock market flotation on Monday that would value the Northamptonshire firm at £3.5bn and generate a huge windfall for its bosses and backers.
The company, known for its boots with chunky air-cushioned soles and distinctive yellow stitching, was owned until 2013 by the Griggs family, who sold to the private equity investment group Permira for £300m but retained a near-10% stake. Just seven years later the business has soared in value and when it lands on the stock market will create numerous multimillionaires.
Despite Covid, global stocks started 2021 on a high. But some analysts warn of an ‘epic’ bubble, amid fears that the flow of stimulus has created a monster
Insurrections are not usually seen by investors as buy signals. Yet even as rioters stormed the seat of US legislative government last week, stock market indices hit new highs in New York, adding another chapter to 12 months of apparent defiance of economic gravity.
Wall Street, measured by the benchmark S&P 500, was not alone in starting 2021 with a bang. London’s FTSE 100 jumped by more than 6% in the first week of the year as investors took in a heady cocktail of a President Joe Biden ready and able to spend money, cheap borrowing costs, and the hopes that vaccines will end the coronavirus lockdowns. Yet amid the exuberance a serious concern looms: are we on the cusp of another colossal crash?
Some forecasters, buoyed by the success of big tech and vaccines, are predicting 10‑15% gains
The new year is traditionally a time for looking forwards, for hopeful resolutions, for celebrating. But for economists and investors, the annual forecasts for 2021 might be something of a painful reminder of exactly how much they failed to foresee.
The pandemic quickly made a mockery of all projections. An entertaining analysis of US chief executives’ statements during 2020 by data company Sentieo for the New York Times showed a 70,000% year-on-year rise in the use of “unprecedented”, while “humbled” tripled – perhaps code for “it wasn’t my fault, so you should still pay me the same”. To be fair, though, in March it really did feel like nobody had a clue what to do – even governments, who are meant to have “pandemic” firmly on their risk radars.
William Evanina speaks of Beijing’s influence campaign ‘on steroids’, as Congress passes bill targeting big companies such as Alibaba
A counterintelligence chief in the US has warned that Chinese agents are already targeting the personnel of President-elect Joe Biden, as well as those close to his team, as Congress unveiled more measures targeting big Chinese companies.
William Evanina, from the office of the US Director of National Intelligence, told the Aspen Institute Cyber Summit on Wednesday it was an influence campaign “on steroids”.
Markets respond as manufacturing in China and South Korea grows at fastest pace in a decade
Hopes that the world will bounce back from the ravages of coronavirus in the new year have been buoyed by strong growth in output from Asia’s huge manufacturing centres, led by an accelerating post-pandemic boom in China.
China’s factory activity expanded at the fastest pace in a decade in November, a closely watched survey showed on Tuesday, in the latest sign that the world’s second-largest economy is recovering to pre-pandemic levels.
Dow rallies by 450 points to close above 30,000 for first time
Investors cheer hopes of vaccine and smooth Biden transition
The Dow Jones Industrial Average has topped the 30,000 mark for the first time as financial markets around the world rally amid hopes for a coronavirus vaccine and smooth transition to a Joe Biden presidency.
The landmark for the Wall Street market comes as investors bet rapid medical advances will bring the Covid outbreak to an earlier end than feared, paving the way for a swift economic rebound next year as business activity returns closer to normal and tough government restrictions are relaxed.
Frantic stock sell-offs across sector anticipating ‘monopoly’ rules, with Alibaba shopping site shares falling 9.8%
Hundreds of millions of dollars have been wiped off the value of China’s biggest internet companies following two days of frenetic selling with investors fearing Beijing plans to curb the power of homegrown tech firms.
Shares in Alibaba, a Chinese version of Amazon, dropped by 9.8% on Wednesday, while its rivals, Tencent, and JD.com, fell by 7.4% and 9.2% respectively.
Mohit Kumar of Jefferies reckons the battle for the Senate could be worth $2tn in potential stimulus measures:
In terms of market impact, a clear result should be positive for risk sentiment, irrespective of a Biden or Trump win.
From a fiscal stimulus perspective, as we have argued before, the Senate elections are as important, if not more, than a Presidential one. A ‘Blue Wave’ with Biden as the President and Democrats having control of both the House and the Senate would see a fiscal stimulus of over $3trn.
Stock markets in the US and Europe fell sharply oas investors focused on signs that rich countries’ efforts to contain the coronavirus pandemic were foundering.
In Europe, the Stoxx 600 index lost 1.8% after heavy falls in German blue-chip stocks. In the US the Dow Jones industrial average closed 2.3% down at 27685.38, while the benchmark S&P 500 fell 1.9% to 3400.97.
Financial technology firm will list on Shanghai and Hong Kong stock markets in snub to US
Chinese billionaire Jack Ma’s financial technology firm is aiming to raise more than $34bn (£26.15bn) in the world’s biggest initial public offering, valuing the business at more than $313bn.
Ant Group, which on Monday set the price for its much anticipated flotation and is expected to start trading early next month, will beat the record $25.6bn sold by state-backed oil giant Saudi Aramco in its flotation last December.
Investors scramble to buy shares in Big Hit Entertainment amid speculation that the boy band members could be allowed to defer military service
The management company behind the popular South Korean boy band BTS has scored a huge hit on the country’s stock market after its shares doubled on their first day of trading.
Investors scrambled to buy into the success story of Big Hit Entertainment amid speculation that the South Korean government could allow K-pop and other celebrities to defer their military service, citing their huge contribution to the country’s economy and international reputation.
1.5m jobs at risk as Covid-19 restrictions continue
In the 1960s, Robert Wilson began to investigation auctions with a common value - one that is unknown beforehand, but is the same to all bidders, the Academy continues.
That could be bidding for fishing quotas - where the value is determined by not only the quota, but the future value of the fish. Bidders need to estimate that value, so they could potentially overpay.
This is something known as the Winner’s Curse.
Auctions are everywhere. People use auctions to buy and sell items on internet sites, explains the Royal Academy.
Electricity markets are organized as auctions. Financial assets, CO2 emissions allowances and radio spectrum are all organised as auctions.
The auction theory provided by Paul Milgrom and Robert Wilson is key for understanding how these objectives can be reached.
It’s a myth that Republicans handle the economy better – US recessions almost always occur under the GOP
Joe Biden has consistently held a wide polling lead over US President Donald Trump ahead of November’s election. But, despite Trump’s botched response to the Covid-19 pandemic – a failure that has left the economy far weaker than it otherwise would have been – he has maintained a marginal edge on the question of which candidate would be better for the US economy. Thanks to Trump, a country with just 4% of the world’s population now accounts for more than 20% of total Covid-19 deaths – an utterly shameful outcome, given America’s advanced (albeit expensive) healthcare system.
The presumption that Republicans are better than Democrats at economic stewardship is a longstanding myth that must be debunked. In our 1997 book, Political Cycles and the Macroeconomy, the late (and great) Alberto Alesina and I showed that Democratic administrations tend to preside over faster growth, lower unemployment and stronger stock markets than Republican presidents do.
Carmaker’s value plunges after failing to make S&P 500 listing as all major US stock markets fall
The US tech sell-off on Wall Street extended to a third day on Tuesday, with electric carmaker Tesla among the biggest fallers suffering its worst day in nearly six months.
The tech-heavy Nasdaq stock market dropped close to 3% in morning trading, following similar falls on Thursday and Friday. Wall Street was closed on Monday for the Labor Day holiday.
Zhong Shanshan’s net worth rises to $51bn as Nongfu Spring shares launch in Hong Kong
The stock market flotation of China’s biggest bottle water company has made its founder the country’s third-richest man, as shares in his company rocketed on their debut in Hong Kong.
At one point the paper fortune of Zhong Shanshan, the biggest shareholder in bottled water company Nongfu Spring, briefly surpassed that of China’s two richest men, Alibaba founder Jack Ma and Tencent founder Pony Ma.
Mark Haefele, chief investment officer, UBS Global Wealth Management, said:
While we expect the Fed to shy away from more radical easing measures, such as explicit controls on government bond yields, we believe Powell will likely outline other dovish measures. These could include a move toward average inflation targeting, giving the central bank more leeway to allow inflation to overshoot the 2% target while keeping rates pegged close to zero.
Maybe the age of the independent, activist central bank head is also coming to an end. Fiscal policy is more powerful and monetary policy needs to work in harmony with it. Monetary policy is being asked to do things (like tackle economic inequality) that it really isn’t suited to. But, here we are, waiting for Jay Powell to turn up at Grafton’s Saloon. He’s already done everything he can, he’s almost out of bullets and he may even have already won the fight, but we have placed our faith in him and desperately want fresh encouragement.
The economic collapse in Britain during the second quarter of 2020 was the most brutal on record. Unemployment is forecast by the Bank of England to soar to 2.5m by Christmas. The Brexit cliff edge approaches. Yet in the City, the FTSE 100 has been on the up.
Never has the disconnect between financial trading and economic fundamentals appeared so extreme. What explains surging asset prices (the FTSE jumped 2% on the same day it was revealed the economy had slumped by 20%) when the outlook for many workers is so grim?
S&P edges towards all-time record with oil prices and hospitality stocks rising as investor optimism rebounds
US stock markets moved closer to record highs on Tuesday after investors bet on a fresh round of government spending to lift the economy and counter the effects of the Covid-19 pandemic.
The S&P 500, seen as the broadest measure of US investor sentiment, raced to a 10-point gain by mid afternoon to leave it just 16 points short of the all-time high reached in February.