Five Things You Need to Know to Start Your Day
July 21, 2020 @ 10:38 +03:00
Leaders of 27 European Union countries reached a unanimous agreement on 750 billion euros ($860 billion) in coronavirus recovery funds, divided into grants worth 390 billion euros and low-interest loans worth 360 billion euros. Reaching the deal took more than four days of acrimonious negotiations and represents a victory for German Chancellor Angela Merkel and French President Emmanuel Macron, who had drafted its first version. Almost a third of the funds are earmarked for fighting climate change. “I believe this agreement will be seen as a pivotal moment in Europe’s journey,” European Council President Charles Michel said.
Virus statistics overnight hold some hope with California’s hospitalization growth reducing and daily case growth in other hot spots like Florida and Arizona slowing too. Still, in New York, Governor Andrew Cuomo threatened to close bars and restaurants if large street gatherings continue and if social distancing and mask regulations aren’t enforced.
It was all about tech on Wall Street Monday as the Nasdaq 100 index had its best gain in three months to close at a record high. The stay-at-home trade drove a rise in the Fang bloc of megacap technology companies including Amazon.com Inc., while other pandemic beneficiaries such as Zoom Video Communications Inc. also gained. Later on, tech investors also digested numbers from International Business Machines Corp. that beat analysts’ estimates on second-quarter revenue. Cloud sales are helping to offset coronavirus-fueled declines in the consulting services business, sending IBM shares higher in late trading. Here in Europe, stock futures are higher this morning.
A day after the U.K. suspended extraditions and arms sales to Hong Kong due to human rights concerns around China’s national security law, Prime Minister Boris Johnson is under pressure from his U.S. allies and British lawmakers to further toughen his stance on China.
It’s a busy morning of earnings. UBS Group AG reported second-quarter net new money that beat analyst expectations and said that share buybacks may resume in the fourth quarter. Novartis AG narrowed its full-year guidance toward the lower end of its previous range while booze maker Remy Cointreau SA boosted guidance and chocolatier Lindt & Spruengli AG beat sales estimates.
Five Things You Need to Know to Start Your Day, Bloomberg, Jul 21