Latest updates: January 6 committee recommends detaining Steve Bannon for criminal contempt
Coal price drop continues after Beijing signals intervention
The threat of Beijing intervention has caused Chinese coal prices to plummet as authorities seek to lower electricity prices and end an energy crisis that has hampered the country’s economic growth.
The National Development and Reform Commission said on Tuesday it had held a meeting with China’s largest coal producers and would “consider specific measures to intervene on coal prices” if they continued to rise. to augment.
Record prices have kept many of China’s coal-fired power plants from making profits in recent months, forcing them to cut production and leading to widespread power shortages.
The threat of NDRC intervention is the first official signal to have a real impact on coal prices, prompting thermal coal contracts traded on the Zhengzhou Commodity Exchange to drop as high as 8% on Tuesday.
Thermal coal futures continued to tumble on Wednesday with another borderline drop of 8% to 1,755 Rmb per tonne. The CSI Coal index of major listed miners in China fell 8.5%.
China depends on thermal coal for about 70% of its electricity, but Beijing has closed coal mines for pollution and safety reasons and local governments have limited the use of thermal coal this year in an effort to achieve strict emissions targets. This resulted in a shortage of domestic supply and led to a surge in prices as winter approached.
Asian Morning Markets: Stocks Track US Gains As Corporate Profits Boost Investor Sentiment
Asian stocks followed US markets higher on Wednesday morning, supported by strong investor sentiment towards corporate earnings.
In bond markets, the yield on the 10-year US Treasury bill – which moves inversely to its price – hit 1.64%, its highest trading level since May.
Asian stocks looked set to follow the gains, with Japan’s Topix and Australia’s S & P / ASX 200 both up 1% in morning trading on Wednesday and South Korea’s Kospi gaining to 0 , 6%.
Hong Kong’s Hang Seng Index rose 1.1% at the opening. The Chinese CSI 300, meanwhile, opened flat.
The gains marked another positive day for Asian markets, which rose broadly this week.
“The optimistic mood in Asian stocks has spread to Europe and the United States [on Tuesday], amid continued strong corporate earnings, ”Westpac analysts said. “Today’s timeline is light ahead of the September UK and Eurozone CPI, the Fed’s Beige Book and another set of Fed speakers.”
January 6 committee recommends detaining Steve Bannon for criminal contempt
Members of Congress have recommended that the US House of Representatives hold Steve Bannon, former Donald Trump strategist, in criminal contempt for his refusal to comply with a subpoena from Congress.
The special committee investigating the Jan.6 attack on the U.S. Capitol voted unanimously Tuesday night to recommend the measure, which is expected to go to the plenary chamber for a vote. Democrats control the House by a narrow margin.
The committee’s decision came a day after Trump sued lawmakers and the National Archives in an attempt to block the release of nearly 50 documents relating to his presidency. Trump and his allies have so far refused to cooperate with the panel, which was formed this summer to investigate what happened on January 6, when crowds of Trump supporters stormed the Capitol and interrupted the certification of the Electoral College victory of Joe Biden in a violent clash that left at least five dead.
In the lawsuit, filed in federal court in Washington on Monday, Trump and his lawyers argued that the president could withhold documents under “executive privilege,” a legal standard that allows the confidentiality of certain presidential communications.
Trump was indicted on “incitement to insurgency” for his actions on Jan.6, but later cleared after a Senate trial in which only seven Republican senators voted to convict.
The Jan. 6 committee is led by Democrats and has only two Republicans – Liz Cheney of Wyoming and Adam Kinzinger of Illinois – among its members, after the Republican House leadership refused to sign the panel.
Gopinath, the first female IMF chief economist to return to Harvard in January
IMF chief economist Gita Gopinath will leave the fund and return to Harvard University in January 2022 after a three-year term.
Gopinath’s public service leave from Harvard University’s economics department had been exceptionally extended for one year. She intends to return to Ivy League University after her civil service ends, the IMF said on Tuesday.
Gopinath became in 2019 the first woman appointed to the post of chief economist of the IMF. During her tenure, she co-authored the Pandemic Paper which led to the creation of a task force to help end the Covid-19 public health crisis. She also helped set up a climate change team within the fund.
“We have benefited enormously from his keen intelligence and his in-depth knowledge of international finance and macroeconomics as we go through the worst economic crisis since the Great Depression,” said Kristalina Georgieva, Managing Director of the IMF.
The IMF said it would start looking for his successor soon.
Gopinath’s departure comes at a delicate time for the IMF, which chose to keep Georgieva at its helm after being accused by a World Bank investigation of leading efforts to artificially raise China’s ranking in the report. lender’s annual Doing Business.
United Airlines blames Delta variant increase for travel recovery delay
United Airlines reported an adjusted net loss of $ 300 billion as the airline grappled with the ramp-up of the Delta variant.
The Chicago-based company’s revenue was down 32% from the third quarter of 2019, to $ 7.8 billion.
“The recovery has been delayed by the Delta variant, but the United team remains focused on our long-term vision – and not being distracted by short-term volatility,” said general manager Scott Kirby.
Despite the operating loss, the airline returned to profitability with continued help from US taxpayers. United received $ 1.1 billion in the third quarter of payments under the US Cares Act, which provided grants and loans to carriers to protect them from the worst of their pandemic losses.
United reported net profit of $ 500 million.
United said they expect fourth-quarter capacity to drop 23% from the same period in 2019, while revenues will drop as much as 30%.
What to watch in Asia today
China’s key rate Traders and analysts polled by Reuters mainly expect the People’s Bank of China to keep its benchmark policy rate stable when the decision is announced today.
China house prices The Home Price Index, compiled from National Bureau of Statistics mortgage data by Thomson Reuters, will be released today. Yesterday, government figures showed the real estate industry contracted year over year for the first time since the start of the pandemic.
Japan’s trade balance The Ministry of Finance will release Japan’s trade balance figures for September. Analysts polled by Bloomberg expect the trade deficit to narrow but remain negative.
Netflix Reports Solid Subscriber Growth Amid Successful “Squid Game”
The resounding success of Squid Game helped Netflix double its net new subscribers in the third quarter to 4.4 million, beating expectations and signaling a strong year-end.
The South Korean hit drama, released in September, was Netflix’s biggest series launch, reaching over 111 million viewers worldwide.
Most new subscribers grew outside the United States, with the Asia Pacific region contributing 2.2 million net new paid subscribers.
Netflix’s growth slowed in the first half of the year, as production delays related to Covid-19 reduced the number of new shows offered. The company said it expects to see “the positive effect of a stronger roster” in the second half, including Squid Game, the second season of The Witcher and the debut of the action film Red Notice.
The streaming service predicted it would add 8.5 million new subscribers by the end of the year, higher than the 8.33 million expected by Wall Street.
Shares of Netflix, which are up 18% year-to-date, have changed little in after-hours trading.