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The World
President Biden announced the release of oil from the US’s strategic stockpile in an attempt to drive down gas prices and snuff out a crude market rally that the administration has said poses a threat to the global economic recovery. Biden authorized the release of 50m barrels of oil — about 2.5 days worth of US oil consumption — “over the coming months,” in a move co-ordinated with China, India, Japan, South Korea and the UK. But the effort to drive down oil prices that have doubled in the past year appeared to backfire, as international crude benchmark Brent closed 3.3% higher following the news, at $82.31 a barrel. (Financial Times)
Analysts questioned whether government releases are big enough to cover surging demand, and they said the release might have been aimed largely at showing the White House’s resolve to do everything it can to tame inflation, which is at its highest in more than three decades. Even if crude prices do fall, relief for consumers might be short-lived as demand is expected to keep rising into next year as the global economy continues its recovery from the pandemic. “For drivers wondering if gasoline prices will get lower…the reality is that this may not happen at all, or only with a significant lag time,” Bjørnar Tonhaugen, head of oil market research at consulting firm Rystad Energy, said. (Wall Street Journal)
The Biden administration has invited Taiwan to its "Summit for Democracy" next month, a move likely to infuriate China, which views the democratically governed island as its territory. The first-of-its-kind gathering is a test of President Biden's assertion, announced in his first foreign policy address in office in February, that he would return the U.S. to global leadership to face down authoritarian forces led by China and Russia. (Reuters)
The majority of Central Americans who want to migrate internationally are motivated by economic factors, a new report released Tuesday found. About 92% of individuals surveyed from El Salvador, Guatemala and Honduras who expressed a desire to migrate internationally cited economic reasons such as unemployment, the lack of money for food and basic necessities, the desire to send remittances and the need for a better job, salary or working conditions, according to the report from bipartisan immigration research group Migration Policy Institute. The report comes as migration from Central America has increased substantially over the past three decades, by 137% between 1990 and 2020. An estimated 16.2 million from the region resided in a country other than their country of origin in 2020. (CNBC)
China voiced support for a nuclear weapon-free zone in Southeast Asia in move to ‘contain Aukus’. President Xi Jinping told Asean leaders that Beijing is willing to sign protocol to the treaty ‘as early as possible’. It has indicated it will do so for more than two decades, and observers say the security alliance could speed up the process. (South China Morning Post)
Japan and Australia are preparing to sign a long-debated pact next year that would make it easier for each country's forces to enter the other for joint exercises. The agreement would smooth the way for joint drills as China flexes its muscle. (Nikkei Asia Review)
Several hundred Google employees have signed and circulated a manifesto opposing the company’s Covid vaccine mandate, posing the latest challenge for leadership as it approaches key deadlines for returning workers to offices in person. (CNBC)
Minnesota calls up National Guard as Covid-19 overwhelms hospitals. (Gizmodo)
Even though the pandemic continues, 74% of Americans say their lives have returned to “normal.” (Yahoo News/YouGov poll)
New 10-minute test detects Covid-19 immunity: Researchers have successfully developed a rapid point-of-care test for the detection of SARS-CoV-2 neutralizing antibodies (NAbs). This simple test, only requiring a drop of blood from a fingertip, can be performed within 10 minutes without the need for a laboratory or specially trained personnel. Currently, no similar NAb tests are commercially available within Singapore or elsewhere. (MIT News)
Greenland has had quite a year. For the first time in its history, rain fell at its summit. In August, it experienced one of the latest-occurring melt events in recent memory. This also became the third year with major melting events in the past decade. By the end of the melt season, the ice sheet lost more ice than it gained — for the 25th year in a row. (Washington Post)
Economy
Wall Street banks are planning for a sustained period of higher inflation, running internal health checks, monitoring whether clients in exposed sectors could pay back loans, devising hedging strategies and counseling caution when it comes to deals. Senior bank executives have become less convinced by central bankers' arguments that the spike is a temporary blip caused by supply chain disruption and are stepping up risk management. (Reuters)
Women are investing in the stock market at higher rates than ever—67% of women now say they're investing outside of retirement accounts, compared to 44% in 2018. The pandemic and cultural events like GameStop and meme stocks are drawing women to the markets. (Fortune)
The Turkish lira suffered a historic retreat after President Recep Tayyip Erdogan praised a recent interest rate cut and declared that his country was fighting an “economic war of independence”. The currency, which is down more than 40 per cent against the dollar this year, plunged as much as 15% — a drop that eclipsed even Turkey’s currency crisis of 2018 — and broke through the symbolic threshold of 13 to the dollar after Erdogan used a combative speech to expound his vision for the country’s economy. The fall eased to around 11% in mid-afternoon dealings in London. “It’s like a horror film,” said Enver Erkan, an analyst at the Istanbul-based Terra Investment. (Financial Times)
The Singaporean government forecast a growth rate of 3% to 5% for 2022, predicting a continued rebound from COVID-19 as global borders gradually reopen and domestic restrictions ease. (Nikkei Asia Review)
Gap shares cratered 15% after the retailer saw millions in lost sales from delayed product shipments, cutting its forecast. Gap slashed its full-year outlook as its 3Q21 results fell short as Covid-related factory closures led to significant product delays in the quarter. Gap said it invested in air freight to help mitigate some of the port congestion challenges over the holidays. But that also means added expenses that will weigh on profits in the near term. (CNBC)
Nordstrom shares tumble more than 20% as earnings fall short, hurt by higher labor costs, weak Nordstrom Rack sales. (CNBC)
For the first time in history, private equity is on track to invest more than $1 trillion in American businesses over the course of a single calendar year. Through the end of 3Q21, private equity has invested $788 billion in 4,806 U.S. businesses. The amount invested represents an 86% increase from the same period in 2020. (Private Equity Wire)
San Francisco property owners fight their taxes after Covid cooldown: Dropbox Inc., fully embracing remote work, filed an appeal to have its building’s assessed value cut by half. The recent buyer of the iconic Transamerica Pyramid is seeking a 50% reduction in the tower’s taxable value. Even the vaunted Golden State Warriors aren’t immune: The developer of the NBA team’s arena wants to slash the complex’s assessed value by more than $1 billion. (Bloomberg)
Technology
Tesla will spend over $1 billion on a new vehicle factory in Austin, TX, and aims to complete construction of several major elements of the complex by Dec. 31, according to construction filings with the Texas Department of Regulation. Tesla plans to spend at least $1.06 billion on what the company calls a “Gigafactory” that will produce the company’s forthcoming electric pickup truck, Cybertruck, as well as Model 3 and Model Y vehicles. (CNBC)
Apple sued Israeli spyware maker NSO Group for targeting the users of its devices, saying the firm at the center of the Pegasus surveillance scandal needs to be held accountable. The suit from the Silicon Valley giant adds new trouble for NSO, which was engulfed in controversy over reports that tens of thousands of activists, journalists and politicians were listed as potential targets of its Pegasus spyware. (Times of Israel)
Apple is forging a closer partnership with Taiwan Semiconductor Manufacturing Co. in hopes of reducing its reliance on Qualcomm, Nikkei Asia has learned, with plans to have the Taiwanese chip titan make 5G iPhone modems from 2023. (Nikkei Asia Review)
Investors have pumped record amounts into south-east Asian financial technology companies this year, as locked-down consumers have switched to mobile payment and banking apps. There have been 80 fintech deals worth $3bn in 2021 — more than what was raised in 2020 and 2019 combined. (Financial Times)
Smart Links
Blockbuster art week sets record with more than $2.6 billion in sales. (CNBC)
41% of managers allow employees to set their own hours. (Robert Half)
Walmart launches drone delivery hubs. (Specialty Food)
The worst is over for global supply chains, but shipping association says industry faces lingering issues. (CNBC)
NYC’s recovery trails other U.S. cities as tourism loss weighs. (Bloomberg)
YouTube TV in talks to add more free channels in search for TV ad dollars. (The Information)