: Dr. Scott Atlas resigns as Trump’s coronavirus adviser

Debenhams faces uncertain future as JD Sports quits rescue talks

Getty Images

JD Sports is expected to pull out of talks over a rescue deal for department store chain Debenhams on Tuesday.

It was the last remaining bidder for the firm, which is in administration, and up until the end of last week had been closing in on a deal.

But retail giant Arcadia is the biggest concession in Debenhams and its collapse is understood to have been a factor in JD Sports' decision.

Without a buyer, it could face being wound down, risking thousands of jobs.

Debenhams had already cut about 6,500 jobs since May, and now has 12,000 workers across 124 stores.

The 242-year-old retailer had been considering a potential sale since the summer after it went into administration in April for the second time in a year.

• Debenhams hires liquidator in contingency plan
• Topshop owner Arcadia goes into administration
• Debenhams to close more stores with the loss of 300 jobs

Shareholders in JD Sports reacted badly to the news of the potential purchase, with the sports retailer seeing a sharp fall in its share price last week.

That rebounded on Monday off the back of weekend reports claiming that it was reconsidering.

But JD Sports was widely seen as the last chance to save the beleaguered British chain.

If a buyer is not found for Debenhams, the firm could go into liquidation, or face being "wound down". During that process, buyers would be sought for its shops and the business's other assets, like stock.

Hilco Capital, a firm that specialises in winding up struggling retailers, was appointed by Debenhams in August to draw up contingency plans.

Debenhams said at the time though that it was "trading strongly", despite having issued a string of profit warning even before the pandemic hit.

The news that retail giant Arcadia has collapsed into administration has further complicated matters.

Arcadia's brands, such as Miss Selfridge and Dorothy Perkins, are sold across the Debenhams department store chain. They account for about £75m of sales.

JD Sports and Debenhams declined to comment.

Let's block ads! (Why?)

December 01, 2020 at 01:39PM

https://www.bbc.co.uk/news/business-55139713

Coronavirus: MPs to vote on tougher tiers for England

Reuters

MPs will vote later on the government's proposals for stricter tiers across England after a debate in the Commons.

More than 55 million people will enter the two toughest tiers from 00:01 GMT on Wednesday if the plans are approved.

A number of Conservative MPs have criticised the Covid-19 restrictions, saying the "wheels are coming off the government's arguments" to impose them.

But with both Labour and the SNP abstaining from the vote, the measures are expected to pass.

The government announced last week that its

tougher three tiers to tackle the virus would come into force when England's current lockdown ends in the early hours of Wednesday.

It will see the country placed into one of three tiers - medium (one), high (two) and very high (three) - but the majority of the population will face the higher range of restrictions.

In tier two, people are not allowed to mix with anyone outside their household or support bubble indoors, although they can socialise in groups of up to six outdoors.

And in tier three, people must not mix with anyone outside their household or support bubble indoors, or at most outdoor venues.

• Government publishes data behind stricter tiers
• PM calls for 'unity' from MPs on new Covid tiers
• Why is so much of the North and Midlands in the top tier?

Labour leader Sir Keir Starmer said he had "serious misgivings" about the government's plans - but said it was "in the national interest" to not vote against them to ensure some restrictions remained in place.

However a No 10 spokesman accused Sir Keir of "playing politics in the middle of a global pandemic", rather than "working with the government".

Tory backbenchers - including the lockdown-sceptic Covid Recovery Group (CRG) of MPs - have criticised the plans and had called on the government to publish data showing its reasoning for the measures, and the economic impacts.

But the government report - published on Monday - said it was "not possible to forecast the precise economic impact of a specific change to a specific restriction with confidence".

The chairman of the Treasury Committee, Tory MP Mel Stride, called it a "rehashed document [that] offers very little further in economic terms".

Prime Minister Boris Johnson stood by his plans to fight coronavirus, saying on Monday: "We can't afford to take our foot off the throat of the beast... to let it out of control again."

Mr Johnson said he "understood people's frustration" with the stricter tiers, adding: "The tiering system is tough, but it is designed to be tough to keep [the virus] under control.

"What we can't do is forsake and abandon all the gains we have made now just when we are starting to see real progress in the science."

• LOCKDOWN LOOK-UP: The rules in your area
• SOCIAL DISTANCING: What are the rules now?
• SUPPORT BUBBLES: What are they and who can be in yours?
• FACE MASKS: When do I need to wear one?
• TESTING: How do I get a virus test?

The remarks came after he appealed to his party in two letters over the weekend for their support, and promised they could vote again on the measures in January - with the possibility the tier system could end on 3 February.

The chair of the CRG, Tory MP Mark Harper, repeated accusations that the government's modelling on deaths and hospital capacity had been wrong, adding: "We have asked repeatedly for the information that vindicates these hospital projections and they have not been forthcoming."

The prime minister is due to open the debate, which is scheduled to begin at 12:45, with Health Secretary Matt Hancock set to close it.

Labour leader Sir Keir defended his party's decision to abstain on the vote for measures, saying it was "better that these regulations can be amended and put in place than if there are no regulations".

He said the "serious misgivings" he had included the performance of the test and trace system and "real concerns" over the level of economic support for those in the highest tiers.

But Sir Keir added: "Although the number of cases is coming down as a result of lockdown, the virus is still a significant risk and in principle we accept there are going to have to be continued restrictions."

However, one Labour MP, Richard Burgon, has already said he will vote against the tier system, arguing that it will fail to lower the infection rate and make another lockdown more likely.

Liberal Democrat leader Sir Ed Davey described the system as "chaotic" and said his party would not back the measures until the prime minister addressed their concerns - such as working with local authorities and supporting pubs.

The SNP said it would abstain as the measures only affect England.

On Monday, the Department of Health said a further 12,330 people had tested positive for coronavirus in the UK, while a further 205 deaths had been reported within 28 days of a positive test, taking the death toll by that measure to 58,448.

• NEW CRIME DRAMA 'THE VALHALLA MURDERS': In the desolate darkness of Iceland, a serial killer has links to crimes from years before...
• BINGE-WORTHY SERIES: Thrillingly tense, belly-laugh funny and mind-warpingly weird series to see you through the next lockdown

Let's block ads! (Why?)

December 01, 2020 at 02:00PM

https://www.bbc.co.uk/news/uk-politics-55138507

Immigration: Visa applications open under UK's post-Brexit system

PA Media

New immigration rules will be "simple and flexible", ministers have promised, as the UK's points-based post-Brexit system prepares to go live.

From Tuesday all foreign nationals, including from the European Union, who want to work in the UK from 1 January will have to apply online for a visa.

Those seeking a skilled worker visa will need a job offer, to be proficient in English and earn at least £25,600.

Free movement from and to the EU will come to an end on 31 December.

The UK left the EU on 31 January but has been largely following its rules during the subsequent 11-month transition period, as the two sides try to reach agreement over a trade deal.

As talks continue in London, the UK is stepping up its preparations for leaving the EU's single market and customs union at the end of the year.

• Brexit: Will the borders be ready?
• Post-Brexit migration and farming rules become law
• Foreign butchers and bricklayers 'needed in UK'
• Disused airport confirmed as Brexit lorry park

The government has announced it is setting up a new Border Operations Centre, which it says will ensure round-the-clock surveillance of goods and passengers coming in and out of British ports for the first time.

Border preparations stepped up

Cutting-edge software will be used to gather information about the flow of goods and passengers in the hope of minimising the amount of "short-term" disruption at the border in the days and weeks after 1 January.

Cabinet Office minister Michael Gove said the new system, which will be manned 24/7, would enable the authorities to identify and get on top of bottlenecks "quickly and decisively"

• Disused airport confirmed as Brexit lorry park
• Ports 'chaos' warning over customs controls

Business groups have said delays at the border are inevitable given the looming changes to customs procedures while Labour said "glaring questions" remained unanswered about what businesses needed to do.

"The government is putting the burden on businesses to prepare for the end of the transition period when it has not explained what it is those businesses are getting ready for," said shadow minister Rachel Reeves.

"The government is re-badging a basic element of preparation but still can't tell us how many customs agents are recruited or trained or whether crucial IT is ready."

To tackle what the Cabinet Office calls the "challenges" of potential disruption at the UK border next year, a Border Operations Centre will use big data technology to try to "identify the root causes" of hold-ups to passengers and freight.

The software system is produced by the controversial US tech firm Palantir and will pull together information from different government computers to monitor the flow of people and vehicles across the UK border.

Palantir has courted controversy in the United States, where its systems are used by US Immigration and Customs Enforcement.

This has led the human rights organisation Amnesty International to warn of "a high risk that Palantir is contributing to serious human rights violations of migrants and asylum-seekers".

The company denies the suggestion and says it remains extremely concerned about protecting human rights, privacy rights, and civil liberties in general.

The UK government has stressed that Palantir will only process data in Britain and that strict measures are in place to protect personal information.

What is changing in immigration?

The UK's new immigration system will determine who can work in the country from 1 January.

Online applications for visas via a range of new "routes" will open on Tuesday.

Applications for skilled worker visas will be judged on the basis of a points system, which is modelled on the system in place in Australia for many years.

Points will be awarded for a job offer at the appropriate skill level in an eligible occupation, knowledge of English and whether applicants meet a salary threshold - which will typically be at least £25,600 or the going rate for the job, whichever is higher.

The cost of applying will be between £610 to £1,408 and people will have to show they have enough money to support themselves as well as having proof of identity.

Applicants will have to wait about three weeks to find out whether they have been successful.

Route for 'exceptional talent'

Home Secretary Priti Patel said the system would be "simple, effective and flexible" and enable employers to fill skills gaps while also placing a greater onus on firms to train and invest in British workers.

Ms Patel and other critics of free movement have long argued it has left British firms overly reliant on low-skilled workers from the continent and put applicants from the rest of the rest of the world at a disadvantage.

But unions have warned of a looming crisis over the recruitment of social care staff under the new rules and says action is also needed to support those foreign-born NHS workers whose visas are expiring.

Applications also opened on Tuesday for Global Talent, Innovator and Start-Up visas designed to attract "those who have an exceptional talent or show exceptional promise in the fields of engineering, science, tech or culture".

New rules for international students came into force in October.

The rights of the more than three million EU citizens already working in the UK are protected under the terms of the Withdrawal Agreement signed by the UK and EU earlier this year.

As of 30 September, 2.1 million people had been granted settled status and 1.6 million pre-settled status - ensuring they can remain in the UK.

Let's block ads! (Why?)

December 01, 2020 at 02:04PM

https://www.bbc.co.uk/news/uk-politics-55133506

USD/JPY at Key Resistance, RBA Rate Decision May Set Market Mood

Dow Jones, USD/JPY, RBA – Talking Points

• The Dow Jones Industrial Average led US equity indexes higher
• USD/JPY faces a key resistance level marked by last year’s low
• RBA interest rate on tap for traders in December’s first session

Advertisement

U.S. equity indexes slipped lower on Monday but the Dow Jones Industrial Average still managed to close out November with the highest monthly gain in over three decades. The 11.84% climb is the best since January 1987. Equity prices were bolstered by positive Covid vaccine news that is fueling hopes for a sharp economic comeback in 2021.

Outside of equities, November has also been a boon for Bitcoin. The cryptocurrency recently overtook its 2017 peak and may continue higher. Meanwhile, anti-fiat gold prices fell nearly 5.5% in November, the worst monthly performance since 2016. Interestingly enough, the US Dollar managed to weaken alongside the precious metal. The DXY index sank a bit over 2% last month, and is now trading under the 92 handle.

US Dollar, Bitcoin, Gold, Dow Jones – Daily Price Chart

Chart created with TradingView

Tuesday’s Asia-Pacific Outlook

Traders will look to capitalize on the recent strength seen across markets as December trading kicks off. USD/JPY remains beholden to its descending channel following Covid-induced volatility in March. However, current price action is seeing some resistance at its 2019 lows. The 20-day moving average also appears to be pressuring price action.

The RBA interest rate decision is in focus on the scheduled event risk front. According to the DailyFX Economic Calendar, no rate change is expected. Economists began hedging expectations for further rate cuts from Australia’s central bank following better-than-expected economic data prints over the last couple of months. Australia’s housing and labor markets appear to be functioning rather well given current conditions.

USD/JPY Daily Price Chart

Chart created with TradingView

USD/JPY TRADING RESOURCES

--- Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwateron Twitter

Let's block ads! (Why?)

December 01, 2020 at 01:00PM
Thomas Westwater
https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/12/01/USDJPY-at-Key-Resistance-RBA-Rate-Decision-May-Set-Market-Mood.html

The Moneyist: My wife pushed me into buying a home because she provided two-thirds of the down payment. Now I’m stuck in a house I hate

The Moneyist: I paid for my wife’s M.A. and vacations. I suggested we save for a house, but she left me — and my in-laws told me to be a man

The Moneyist: ‘I lost my mom 2 months ago and I’m still in a fog’: My brother and his family moved into her home. They want more than half

The Moneyist: My soon-to-be ex-husband placed his money in a trust before we married, and used it to buy properties. Am I entitled to any of these?

Covid vaccine: Moderna seeks approval in US and Europe

Getty Images

Moderna is filing for US and European emergency regulatory approval of its coronavirus vaccine so that it can be recommended for widespread use.

Regulators will look at trial data for the mRNA vaccine and decide if it is safe and effective enough to recommend for roll out.

Clinical studies show the jab is more than 94% effective at protecting people from becoming ill with Covid-19.

Pfizer, which has a similar jab, has already filed for the same US approval.

UK regulators are also reviewing data on the Pfizer vaccine, as well as another type of Covid vaccine from

AstraZenca and Oxford University for emergency approval.

Moderna says it hopes to gain UK approval soon, now that it has trial data from 30,000 volunteers - including high risk groups like the elderly - that suggests it works.

In those studies, 15,000 people received the real vaccine while the other participants got placebo injections. No serious side effects were reported.

During the studies, 185 people in the placebo group fell ill with Covid-19, and some severely so.

In comparison, there were 11 cases in the vaccine group and none were severe.

Full trial data has not been released, but will be published in a peer-reviewed journal in due course.

The three front-runner vaccines have different pros and cons.

The AstraZeneca jab is cheaper - around £3 ($4) for a dose, compared to around £15 ($20) for the Pfizer vaccine and £25 ($33) for Moderna's.

And it is potentially easier to distribute because it does not need to be stored under ultra-low temperatures.

But its efficacy in trials - between 62% and 90% - is a bit lower than the Pfizer and Moderna vaccines.

• Covid vaccine: How will we keep it cold enough?
• Who will get the vaccine first and when can you have it?
• How will I get a coronavirus vaccine?
• Russian Covid vaccine shows encouraging results

The UK has already pre-ordered doses of all three vaccines:

• 7m of the Moderna jab
• 40m of the Pfizer/BioNTech one
• 100m of the AstraZeneca Oxford vaccine

Dr Alexander Edwards, associate professor in biomedical technology at the University of Reading, said: "This is great news indeed - the more trial data that we have, the greater confidence we have that vaccines can be used to blunt the human cost of Covid-19.

"As the numbers of cases reported grows, confidence grows that this amazing protection will be maintained in a product that can be rolled out to protect the public."

Let's block ads! (Why?)

December 01, 2020 at 01:00AM

https://www.bbc.co.uk/news/health-55129336

Covid-19: Drinkers in tier two 'could order Scotch egg' as substantial meal

Getty Images

Drinkers in tier two areas of England could order a Scotch egg with their pint to keep in line with post-lockdown rules, a cabinet minister has said.

Under new restrictions from Wednesday, pubs in those high risk areas can only open if they function as a restaurant.

And alcohol can only be served as part of a "substantial meal".

Environment Secretary George Eustice told LBC Radio that Scotch eggs would constitute such a meal "if there were table service".

Pubs and restaurants are currently closed across England, apart from for takeaways.

• Postcode check - what is your tier from Wednesday?
• When does lockdown actually end? And other questions
• Shops allowed to open 24-hours a day over Christmas

Mr Eustice said the "substantial meal" provision in tier two was "understood very much by the restaurant trade".

He said: "I think a Scotch egg probably would count as a substantial meal if there were table service.

"Often that might be as a starter but yes I think it would, but this is a term that's understood in licensing... you can have the concept of a table licence for alcohol that also requires you to serve a substantial meal.

"That is the model that is being followed."

What are the post-lockdown rules?

When England's current lockdown ends, the rules will change according to where you live.

In tier one, medium level, people can meet inside or outside in groups of up to six.

In tier two regions, pubs and restaurants must shut at 23:00 GMT, with last orders an hour earlier.

You can only socialise inside with people you live with, or those in your support bubble if you live alone. Groups of up to six can meet outside, but social distancing must be adhered to.

In tier three, very high risk areas, you cannot mix with anyone outside your household either indoors or in pub gardens or private gardens. Hospitality venues - such as bars, pubs, cafes and restaurants - must stay closed, except for delivery and takeaway services.

Most of England is in tier two or three, with only Cornwall, the Isle of Wight and Isles of Scilly in tier one.

Mr Eustice added that there had been issues with pubs "where you had large groups of people congregating and actually not maintaining social distancing, they were just drinking".

"They were more likely to maintain social distancing sat down and having a meal," he said.

On Sky News, Mr Eustice was asked whether people in tier two would have to leave the pub as soon as they had finished their meals.

The environment secretary said people could finish their drinks, but should not have a "small meal and then sit at the table all night ordering drinks".

It comes after Downing Street suggested drinkers visiting pubs in tier two regions would have to leave once they had finished their meal.

The government's latest guidance for hospitality in tier two states: "Venues must close unless they operate as if they were a restaurant.

"This means serving substantial meals, like a main lunchtime or evening meal. They may only serve alcohol as part of such a meal."

Meanwhile, pubs, restaurants and cafes in Wales will be banned from serving alcohol from Friday and will be forced to close at 18:00 GMT, under new rules to tackle a surge in coronavirus cases.

Cornish pasty

The concept of a "substantial meal" is not actually a new one in pubs, bars and restaurants.

It's an extension of the law that covers 16 and 17 year olds drinking alcohol in pubs with table meals.

In October, under England's previous three-tiered system, there was confusion over the definition of a "substantial meal".

Under those restrictions, it was only pubs and bars in tier three areas that faced extra curbs - and were forced to close unless they were serving substantial meals.

Housing Secretary Robert Jenrick responded by saying that a "plated meal" of a Cornish pasty with chips or a side salad would count as a "normal meal".

Let's block ads! (Why?)

December 01, 2020 at 01:38AM

https://www.bbc.co.uk/news/uk-55129828

: Piste-off: EU attempts united front to close ski resorts and prevent COVID

The Ischgl ski resort in Austria, which became a superspreader locality for coronavirus infections among winter vacationers in March 2020.

Getty Images

Some governments have ordered the shutdown of all ski resorts, fearing a repeat of earlier this year, when thousands of European tourists were infected in a trendy Austrian ski destination and spread COVID-19 throughout the continent. But others are reluctant to forego crucial business.

• The French government reiterated its decision to ban all forms of ski lifts in mountain resorts during the Christmas season, after French President Emmanuel Macron announced last week that ski resorts wouldn’t be allowed to reopen.
• In Italy, where similar measures have been taken by the government, Prime Minister Giuseppe Conte called this week for a coordination at the European level to avoid ending up with different rules in neighboring alpine countries.
• German Chancellor Angela Merkel said this week that she would “try to get a vote at the European level on the possibility to close all ski resorts,” in order to curb the pandemic.
• Switzerland, however, intends to keep its ski resorts open during the winter season, with the Swiss health minister saying this week that this could go on as long as strict safety measures are in place.
• In Austria, where the village of Ischgl became a cluster later linked to infections in 45 countries, finance minister Gernot Blümel said the European Union “would have to pay for it” if it demanded the closure of ski resorts.

The outlook: The EU doesn’t have the legal power to order the closure of tourist resorts in member states, so the only agreement that could be reached at the European level would be a political one, which governments would promise to implement.

But a deal at the EU level wouldn’t solve the case of Switzerland. The two regions where the economic impact of a total closure would be hardest would be the Alps — which straddle Austria, Italy, Switzerland, and France, and the Pyrenees which delineate the Franco-Spanish border.

If an agreement cannot be reached, the risk is that governments might once again have to resort to travel bans and border closures.

From the archives (August 2020): Some of Europe’s biggest travel companies are leaving consumers covering the cost of coronavirus ⁠— holding on to cash while handing out credit notes

Let's block ads! (Why?)

December 01, 2020 at 12:06AM

http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D13C6B442ECB%7D&siteid=rss&rss=1

Peter Morici: Antitrust crackdown on Big Tech could impair U.S. competitiveness

Europe Markets: European stocks struggle and U.S. futures fall as blockbuster November comes to a close

: Ericsson and Vodafone have tested ‘safe sky corridors for drones’ with telecom tech

Autotrader: Are winter tires worth the cost?

istock

Winter doesn’t just mean a wardrobe change for you. For potentially millions of drivers it can also mean a change in what your car is wearing — specifically its tires.

Tires are literally where the rubber meets the road, and it’s crucial that these four contact points maintain grip. For many drivers that means swapping the usual all-season tires for winter ones that are especially suited for snowy, slick roads. Is that something you should do?

Here are experts’ answers to some common questions.

Do I need winter tires?

The short answer is: If you live in the snow belt or parts of the country that experience freezing temperatures for about four months out of the year, then yes. If that’s you, swapping to winter tires from December to mid-April is a good idea.

Related: 8 easy tasks to make your car safer for winter

“In some regions, all-season tires provide adequate traction for the winter months. But when you are dealing with real winter weather, all-season tires are a jack-of-all-trades and master of none,” said TJ Campbell, tire information and testing manager for Tire Rack. “Nothing will provide safety and confidence for a driver in true winter weather conditions than a dedicated set of winter tires.”

How much do these tires cost?

About the same as other replacement tires. Campbell also points out that the cost is usually less than an insurance deductible for an accident – the very thing winter tires can help prevent. Also, since they are temporarily swapped for your usual tires, that extends the life of those.

Do I need winter tires if my car is all-wheel drive or front-wheel drive?

Such vehicles already have an inherent advantage of better grip, and adding winter tires will make your car even more effective.

Even if you don’t live where you need winter tires, it’s a good idea to take some other precautions as the cold season approaches. In particular, Tire Rack recommends you check your tread to make sure your tires aren’t balding or worn down, make sure your tire pressure is at the recommended level (most cars have a sticker in the driver’s door panel with such information), and that you keep extra space between you and the car ahead. Rain and slick roads make stopping take longer.

This story originally ran on Autotrader.com.

Let's block ads! (Why?)

November 30, 2020 at 11:06PM

http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D13ADF145ECB%7D&siteid=rss&rss=1

Next Avenue: This is what it’s like being in a COVID-19 vaccine trial

Joe Biden: President-elect fractures foot while playing with dog

Delaware Humane Association

US President-elect Joe Biden has fractured his foot while playing with one of his dogs, his doctor has said.

Mr Biden, 78, twisted his ankle on Saturday when he slipped while with Major, one of his two German shepherds.

The Democrat visited an orthopaedist in Newark, Delaware, a day later "out of an abundance of caution".

His personal physician, Kevin O'Connor, said initial x-rays did not show an "obvious fracture", but ordered a more detailed CT scan.

The subsequent scan found that Mr Biden had suffered "hairline fractures" of two small bones in the middle of his right foot, the doctor said.

"It is anticipated that he will likely require a walking boot for several weeks," Mr O'Connor said.

• Biden announces all-female senior press team
• Trump signals he is prepared to leave White House

On Sunday, US President Donald Trump tweeted: "Get well soon!"

Mr Biden, who beat Republican Mr Trump in November's election, is due to receive his first presidential daily briefing on Monday. This was made possible by the announcement a week ago that the transition process had begun.

Delaware Human Association

Mr Biden, who turned 78 earlier this month, will become the oldest US president to take office after he's inaugurated on 20 January next year.

Given this, Mr Biden's health is expected to be watched closely by allies and opponents.

His doctor described him as "healthy, vigorous" and "fit to successfully execute the duties of the presidency" in a medical report released last December.

Mr Biden is set to bring his two German shepherds - Champ and Major - with him to the White House.

• Champ, Major and other White House pets

The president-elect and his wife, Jill Biden, fostered Major from a dog shelter in Delaware and made his adoption official in November 2018.

Champ lived with the Bidens on Capitol Hill in Washington DC during Barack Obama's presidency, when the former senator for Delaware was vice-president.

More on President-elect Biden:

• Could Biden's win doom this town?
• Biden says White House co-operation 'sincere'

Let's block ads! (Why?)

November 30, 2020 at 08:24PM

https://www.bbc.co.uk/news/world-us-canada-55127559

DAX 30 Index May Fall as Germany Extends Nationwide Partial Lockdown

DAX 30 Index, German National Lockdown, Coronavirus, Fiscal Aid – Talking Points:

• End-of-month dynamics made for a relatively mixed APAC trading session.
• The extension of Germany’s nationwide ‘partial’ lockdown may undermine regional risk assets.
• However, the provision of additional fiscal aid may soothe investors’ concerns.
• DAX 30 index probing key resistance. Is a reversal lower in the offing?

Advertisement

Asia-Pacific Recap

Month-end flows made for a mixed day of trade during the Asia-Pacific session, as investors mulled coronavirus vaccine developments.

The ASX 200 index fell 1.26% as trade tensions between Australia and China continued to escalate, while Japan’s Nikkei 225 slipped 0.8% lower.

China’s CSI 300 index rose 0.64%, buoyed by better-than-expected PMI figures for the month of November.

The cyclically-sensitive Australian Dollar clambered back above the 0.7400 mark before retreating lower, after the Trump administration added two Chinese firms – Semiconductor Manufacturing International Corporation (SMIC) and China National Offshore Oil Corporation (CNOOC) – to its defense blacklist.

Gold extended its slide lower alongside silver, while crude oil prices plunged over 2% after OPEC+ officials failed to reach agreement on delaying a planned output hike in January.

Looking ahead, preliminary inflation data out of Germany headlines the economic docket alongside a speech from European Central Bank President Christine Lagarde.

DailyFX Economic Calendar

Extended Lockdown to Weigh on DAX 30

The extension of Germany’s nationwide ‘partial’ lockdown – implemented at the start of November – may cap the benchmark DAX 30 index’s potential upside, as the nation’s total coronavirus cases surpass 1 million.

With infections tripling since the start of October, Chancellor Angela Merkel and the premiers of Germany’s 16 states opted to protract the current measures until December 20.

However, the lockdown has proved relatively ineffective at driving case numbers lower, with the 7-day average of infections continuing to hover just under 18,000.

Source – Worldometer

Indeed, Merkel has stressed that “case numbers have stagnated at far too high a level [and] we undoubtedly have some difficult months ahead of us again”.

The Chancellor stated that for restrictions to be loosened, the seven-day incidence rate per 100,000 must drop back below 50 and stay there on a consistent basis. It currently sits at just under 140.

With that in mind, it seems rational to expect that tighter curbs may have to be enforced in the short-term. In fact, Merkel’s chief of staff Helge Braun has flagged the possibility of restrictions being extended until March.

Therefore, the DAX 30 could lose ground in the coming days if the number of infections remains stubbornly elevated, as investors begin to price in more stringent measures.

Budget Expansion May Underpin Regional Risk Assets

That being said, the federal government’s decision to expand its budget in 2021 may underpin regional risk assets.

As mentioned in previous reports, the International Monetary Fund had implored the German government to provide additional fiscal aid.

The IMF’s mission chief for Germany Shekhar Aiyar stressed that “the more severe a recession, the more you should err on the side of generosity [and] Germany is in the somewhat enviable position of having ample fiscal space”.

Clearly German policymakers have heeded these warnings, announcing almost €500 billion in total spending and doubling the amount of new debt budgeted for next year.

The government also moved to extend bridge aid for companies until June next year, with the program currently allowing businesses affected by restrictions to receive up to 75% of their previous year’s revenue in compensation.

These moves may soothe investors’ concerns and limit the DAX 30 index’s downside.

Recommended by Daniel Moss

Trading Forex News: The Strategy

Get My Guide

DAX 30 Index Futures Daily Chart – Challenging Key Inflection Point

DAX 30 index futures daily chart created using Tradingview

From a technical perspective, Germany’s benchmark DAX 30 index could be at risk of a short-term correction lower, as price begins to probe the key resistance range at 13350 – 13450.

Bearish RSI divergence, combined with a potential bearish crossover on the MACD indicator, imply that the path of least resistance is lower.

Failure to clear the September high (13464) could ignite a pullback towards the 2020 open, with a break below opening the door for price to challenge the trend-defining 50-day moving average (12760).

Alternatively, a daily close above 13500 would likely signal the resumption of the primary uptrend and bring the yearly high (13829) into focus.

DAX 30 Index Futures 4-Hour Chart – Bearish RSI Divergence Hints at Pullback

DAX 30 index futures 4-hour chart created using Tradingview

Zooming into a four-hour chart reinforces the bearish outlook depicted on the daily timeframe, as the DAX fails to pierce through the 78.6% Fibonacci (13362) and slips back below the 21-MA (13300).

With the RSI slipping below 50 and the slopes of all four moving averages notably plateauing, further declines look likely.

Breaching the 38.2% Fibonacci (13206) would probably bring the yearly open (13126) into the cross hairs, with a push below bringing psychological support at 13000 into play.

Conversely, gaining a firm foothold above the November 25 high (13372) could neutralize near-term selling pressure and carve a path for price to probe the yearly high (13828).

-- Written by Daniel Moss, Analyst for DailyFX

Follow me on Twitter @DanielGMoss

Recommended by Daniel Moss

Improve your trading with IG Client Sentiment Data

Get My Guide

Let's block ads! (Why?)

November 30, 2020 at 08:30PM
Daniel Moss
https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/11/30/DAX-30-Index-May-Fall-as-Germany-Extends-Nationwide-Partial-Lockdown.html