WORLDWIDE : HEADLINES
Exclusive: World Bank seeks board approval for $12 billion coronavirus vaccine financing plan
WASHINGTON – World Bank President David Malpass said on Tuesday he is seeking board approval for a $12 billion coronavirus vaccine financing plan to help poor and developing countries secure a sufficient share of vaccine doses when they become available in the coming months.
Malpass told Reuters in an exclusive interview that the initiative, part of $160 billion in coronavirus aid financing pledged by the multilateral lender, is aimed at helping countries procure and distribute vaccines early to healthcare and other essential workers and expand global production. He said the board was expected to consider the plan in early October.
Global competition for early coronavirus vaccine doses is already fierce, months ahead of any approvals, as wealthy countries move to secure supplies.
The U.S. government has pledged over $3 billion to secure hundreds of millions of doses of vaccines under development by Britain’s AstraZeneca Plc AZN.L and by U.S. drug giant Pfizer Inc PFE.N and Germany’s BioNTech SE 22UAy.F.
Malpass said the World Bank plan aimed to put poor and middle-income countries, where the virus is spreading most rapidly, on the same footing as richer countries by ensuring they have financing to secure supplies and a system for distribution, which will encourage drugmakers to meet their demand.
Full coverage: REUTERS
Yields range-bound ahead of presidential debate, jobs data
NEW YORK – U.S. Treasury yields fell slightly on Tuesday, trading within a tight range as investors held off from making large moves ahead of the presidential debate later in the day and employment data due on Wednesday and Friday.
The yield on the benchmark 10-year Treasury note US10YT=RR has opened or closed within a range of 0.65% to 0.70% for 15 consecutive sessions, said Andrew Brenner, head of international fixed income at NatAlliance Securities. The yield opened 0.658% on Tuesday and was last trading lower at 0.651%.
The long bond US30YT=RR yield edged down 0.6 basis point to 1.417%. The two-year yield US2YT=RR was down 0.4 basis point on the day at 0.127%. The anchored two-year yield has pulled the yield curve, as measured by the spread between the two- and 10-year yields US2US10=TWEB, slightly flatter.
Full coverage: REUTERS
Japan’s factory output rises for third month in August
TOKYO – Japan’s factory output rose for the third straight month in August, in a positive sign for manufacturers as economic activity gradually recovered further from the impact of the coronavirus pandemic.
Demand among Japan’s global trading partners, and especially China, has come off lows seen earlier this year when the virus crisis forced governments to impose lockdowns that hurt global trade and production.
Separate data showed retail sales posted their sixth straight month of declines in August as worries over a fragile economic recovery kept a lid on consumer spending.
Official data released on Wednesday showed factory output increased 1.7% in August from the previous month, boosted by rebounding production of automobiles and car parts as well as iron, steel and non-ferrous metals.
August’s rise, which was much slower than the previous month’s record 8.7% gain, came in largely in line with the median market forecast of 1.5% growth in a Reuters poll of economists.
But analysts said the recovery in car output was expected to fade in the coming months as a resurgence in coronavirus infections around the world would likely lead to weaker demand.
Full coverage: REUTERS
WORLDWIDE : FINANCE / MARKET
Oil drops second day as surging coronavirus cases prompt demand worries
TOKYO – Oil prices fell for a second day on Wednesday, extending big losses from the previous session amid rising concerns about fuel demand as the coronavirus pandemic worsens.
Brent crude LCOc1 dropped 23 cents, or 0.6%, to $41.03 per barrel by 0048 GMT. West Texas Intermediate CLc1 fell 26 cents, or 0.7%, to $39.29.
The benchmarks fell more than 3% on Tuesday as global COVID-19 cases passed 1 million, having doubled in three months.
“It is important to keep in mind that moves to the downside have the potential to be supersized,” given rising coronavirus cases and increasing oil supplies around the world, said Bob Yawger, director of energy futures at Mizuho in New York.
CEOs of the world’s biggest trading companies are forecasting a weak recovery for oil demand and little movement in prices in the coming months and potentially years.
Full coverage: REUTERS
Asian markets dip as investors brace for U.S. presidential debate
WASHINGTON/SINGAPORE – Asian shares slipped and the dollar was under pressure on Wednesday in the lead up to the first U.S. presidential debate, as financial markets looked to take a measure of both candidates.
The first face-off between Democrat Joe Biden and President Donald Trump, set to begin at 0100 GMT, is seen by some political analysts as Trump’s best chance to upend a race where he has consistently lagged in opinion polls.
Gains for Trump in the debate could lift otherwise cautious market sentiment, said Michael McCarthy, chief strategist at broker CMC Markets in Sydney.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged down 0.1% in early trade. It is headed for a monthly drop of 3.3%, the largest fall since March.
Japan’s Nikkei .N225 was down 0.2% and Australia’s ASX 200 .AXJO fell 1.3%, while markets in Seoul .KS11 rose 0.8%.
Futures pointed to small opening gains in China SFCc1 and Hong Kong HSIc1. S&P 500 futures ESc1 were steady, last trading 0.1% firmer, with moves slight ahead of the debate.
Full coverage: REUTERS
Dollar wobbles as markets await U.S. presidential debate
TOKYO – The dollar edged down in Asian trade on Wednesday as investors counted down to the first U.S. presidential debate between President Donald Trump and Democratic challenger Joe Biden.
The 90-minute presidential debate at 0100 GMT will be closely tracked by financial markets with some political analysts seeing it as Trump’s best chance to get on top of a race he has consistently lagged in opinion polls.
“There is no consensus in the market on how either candidate’s victory will move the dollar,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.
“If, for example, the debate turns out to be a perceived victory by Trump, it’s going to be interesting to see how the markets move– particularly the dollar, U.S. stocks futures and 10-year Treasury yields,” he said.
The dollar index against a basket of currencies fell 0.32% to 93.858, after hitting a two-month high last week.
Also weighing on the greenback were month- and quarter-end currency flows, while better-than-expected U.S. economic data also dented its perceived safe-haven bid.
U.S. consumer confidence rebounded more than expected in September as households’ views of the labour market improved.
Full coverage: REUTERS
