Headlines (Politics, General News)
- The UK and EU have agreed to a trade deal. Trade on most goods will be tariff-free. There will be a platform for co-operation on crime, energy, and data-sharing. An arbitration system was created for circumstances where one side perceives regulatory changes as creating unfair advantages. No provision was made for financial services. On January 1 customs declarations and checks will begin for UK-EU trade. It is the first trade deal in modern history that erects barriers between markets. The OBR predicted this deal would result in a 4% loss of GDP over 15 years compared to membership of the EU, whereas no deal would have resulted in a 6% reduction.
- U.S lawmakers agreed on a $900 billion stimulus relief package that will help small businesses, and struggling families affected by Covid-19.
- A growing number of countries have banned flights entering from the UK after a significant increase in Covid-19 cases caused by a new strain of virus which is 70% more infectious.
- Global temperatures will be 2.1C higher than pre-industrial levels by 2100, assuming all countries with a net zero target meet it, according to research by NewClimate Institute and Climate Analytics. Global emissions fell by 6.7% this year, largely due to coronavirus.
Economy and Central Banks
- Factories across China are experiencing power shortages, due to tight regulations on electricity use, combined with an embargo on imports of Australian coal.
- As emerging market debt soared even higher during the pandemic, global institutions and creditors are hastily trying to come up with solutions to what could be a wave of sovereign debt defaults in emerging economies over the course of the next year.
Finance and Markets
- CEO of Credit Suisse, Thomas Gottstein, has stated the bank will start a “clean slate” in 2021 after a challenging year including high profile civil lawsuits and lending failures.
- $559 billion of private equity deals were struck this year, the highest value since 2007.
Tech
- Apple’s supply chain has been affected by its contractors’ workers in Asia, primarily, India and China, protesting over unpaid wages/bonuses.
- Tesla was added to the S&P 500 on Monday.
CompaniesGlobal airline passenger numbers are expected to still be 40% below pre-coronavirus levels in 2021.
The Sweeney Club 