Key themes on Global Economy
The U.S. government said Americans should avoid traveling to Japan, with the country under a state of emergency over a widening Covid-19 outbreak that has sown doubt about Tokyo’s plan to host the Olympics in less than two months. Coronavirus infections in the U.S. rose last week at the slowest pace of the pandemic, but at the same time, the Centers for Disease Control and Prevention warned that under-vaccinated areas could become hot spots for a mutation of the virus first detected in India. In Singapore, Changi Airport will impose stricter measures at its terminals to safeguard against further Covid-19 transmission there.
China’s corporate bond tab currently stands at a mind-numbing $1.3 trillion of domestic debt payable in the next 12 months. That’s 30% more than what U.S. companies owe, 63% more than in all of Europe and enough money to buy Tesla—twice. What’s more, it’s all coming due at a time when Chinese borrowers are defaulting on onshore debt at a record-breaking pace. This could get messy.
Technology shares led gains in U.S. stocks. Ten out of the 11 groups in the S&P 500 rose, while the Nasdaq 100 outperformed major equity benchmarks amid a rally in giants such as Apple, Amazon and Tesla. But the big news on Monday was reserved for battered Bitcoin: The world’s largest cryptocurrency soared after plunging as much as 18% on Sunday. Here is your markets wrap.
Ray Dalio said he would rather own Bitcoin than a bond. Should cryptocurrencies continue to gain traction, investors might decide to invest in them rather than government debt, the hedge fund giant said.
Chia Network, a blockchain and digital currency platform founded by BitTorrent creator Bram Cohen, has more than doubled its valuation after raising $61 million from investors including Richmond Global Ventures and Andreessen Horowitz.
Amazon is poised to announce an acquisition of the Metro-Goldwyn-Mayer movie studio as soon as Tuesday, marking the e-commerce giant’s biggest push yet into Hollywood.
Elon Musk says Tesla can develop a fully self-driving car without using laser-sensor technology. Which is strange, since the electric automaker has a contract for those kinds of sensors from Luminar Technologies for testing and development.
Source: Bloomberg