WORLDWIDE : HEADLINES
U.S. pension funds sue Allianz after $4 billion in coronavirus losses
FRANKFURT – Pension funds for truckers, teachers and subway workers have lodged lawsuits in the United States against Germany’s Allianz, one of the world’s top asset managers, for failing to safeguard their investments during the coronavirus market meltdown.
Market panic around the virus that resulted in billions in losses earlier this year scarred many investors, but no other top-tier asset manager is facing such a large number of lawsuits in the United States connected to the turbulence.
In March, Allianz ALVG.DE was forced to shutter two private hedge funds after severe losses, prompting the wave of litigation the company says is “legally and factually flawed”.
Together, the various suits filed in the U.S. Southern District of New York claim investors lost a total of around $4 billion. The fallout has also prompted questions from the U.S. Securities and Exchange Commission, Allianz has said.
A spokesman for Allianz Global Investors said in a statement to Reuters: “While the losses were disappointing, the allegations made by claimants are legally and factually flawed, and we will defend ourselves vigorously against them.”
Full coverage: REUTERS
Chinese delivery firm ZTO Express up in Hong Kong trading debut
HONG KONG – Shares of Chinese delivery firm ZTO Express (Cayman) Inc 2057.HK are set to open at HK$244 each in their Hong Kong debut on Tuesday, up 11.9% from the offering price of HK$218 apiece.
The New York-listed firm ZTO.N sold 45 million shares in its secondary listing in the city, raising $1.27 billion to build more sorting hubs, expand capacity, strengthen network stability and competitiveness.
The firm priced its shares at HK$218 each when the institutional bookbuild was finalised last week.
There have been 10 secondary listings in Hong Kong in 2020 that have raised $15.1 billion, according to Refinitiv.
Full coverage: REUTERS
EU negotiators willing to work on legal agreement with UK – The Times
European Union negotiators have signaled that they are willing to begin work on a joint legal text of a trade agreement with the UK, ahead of trade talks that resume on Tuesday, The Times reported on Tuesday.
EU chief negotiator Michel Barnier is ready to begin work on a joint draft version of a free trade agreement, known as a “consolidated legal text”, this week, the newspaper reported bit.ly/2EHd1Nr.
Barnier expects Britain’s chief negotiator David Frost to provide more details of fishing quotas and the government’s future subsidy policy, the Times report said, adding that EU has also backed away from a threat to suspend trade and security talks.
Britain left the EU last January and is locked in negotiations on a new trade deal from 2021, as well as on implementing the divorce, as set out in the Withdrawal Agreement, especially on the sensitive Irish border.
Full coverage: REUTERS
WORLDWIDE : FINANCE / MARKETS
Oil slips as demand worries offset hopes for stimulus
MELBOURNE – Oil prices fell on Tuesday as demand concerns driven by COVID-19 outweighed hopes that U.S. lawmakers and the White House were nearing an agreement on a new stimulus package to revive the world’s biggest economy.
U.S. West Texas Intermediate (WTI) crude CLc1 futures slipped 17 cents, or 0.4%, to $40.43 at 0120 GMT, while Brent crude LCOc1 futures also fell 17 cents, or 0.4%, to $42.26 a barrel. Both benchmarks rose about 1% on Monday.
Commodities markets had crept up in earlier trade as Democratic lawmakers unveiled a new $2.2 trillion coronavirus relief bill, which U.S. House of Representatives Speaker Nancy Pelosi said was a compromise measure.
“If it happens, the U.S. stimulus checks will go a long way to shoring up U.S. oil demand at a most critical juncture and could move oil prices back into a pre-September frame of mind,” AxiCorp market strategist Stephen Innes said in a note.
Full coverage: REUTERS
Dollar steadies as markets await Trump-Biden debate
TOKYO – The dollar was steady against a basket of currencies on Tuesday as traders looked out to the first U.S. presidential debate and developments on the U.S. stimulus bill.
The dollar index stood unchanged at 94.150 =USD, drifting away from a two-month high of 94.745 reached last week, as stock markets made solid gains partly on upbeat China data with Wall Street rebounding following last week’s selloff.
All eyes are on the first U.S. presidential election debate where Democrat Joe Biden and Republican Donald Trump will square off later in the day (Wednesday 0100 GMT).
“If the debate puts Trump on the back foot and Biden keeps his lead, I think it could lead people to let go of their dollars,” said Daisuke Karakama, chief market economist at Mizuho Bank.
“The dollar market has been broadly bottoming out from low prices since mid-September. The question is what would be the trend in October,” Karakama said, adding that market participants are also keeping a close watch on any stimulus package plans.
House speaker Nancy Pelosi said on Monday the Democratic lawmakers were unveiling a new $2.2 trillion coronavirus relief bill, which was a compromise measure that reduces the costs of the economic aid.
Full coverage: REUTERS
Asian markets set to push higher after overnight gains
Asian markets look set to rise on Tuesday, building on newfound momentum after bargain hunters helped a recovery in U.S. markets after last week’s selloff.
Australian S&P/ASX 200 futures were up 0.64% in early trading, while Japan’s Nikkei 225 futures rose 0.21%. Hong Kong’s Hang Seng index futures were up 0.61%.
E-mini futures for the S&P 500 were up 0.16%.
Asian markets have been buoyed by positive signs around China’s economic recovery, although the coronavirus pandemic continues to wreak economic havoc globally and raise concern about high valuations.
Investors will remain cautious ahead of the first U.S. presidential debate set to take place later on Tuesday, and as lawmakers continue sporadic efforts to cobble together additional economic stimulus.
U.S. consumer confidence and home price data is also due on Tuesday. Upcoming U.S. economic data should help show how well the country is positioned to rebound from pandemic lockdowns, and how necessary more stimulus will be.
Full coverage: REUTERS
