Global shares rebound after worst selloff since January

Global shares rebound after worst selloff since January
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Updated 29 September 2021

Global shares rebound after worst selloff since January

Global shares rebound after worst selloff since January
  • Asia managed to slow the falls and the pan-European STOXX 600 index bounced 1 percent in early trading
  • Doubts are re-emerging about the global recovery

Investors sought to staunch the bleed on Wednesday after world stocks suffered their worst rout since January, while U.S. and European borrowing costs raced to their highest in months.


Asia managed to slow the falls and the pan-European STOXX 600 index bounced 1 percent in early trading after shedding 2.2 percent on Tuesday and after all three major Wall Street indexes suffered their steepest drops since mid-July.


The global benchmarks for borrowing costs - the yields on U.S. and German government bonds - edged lower, with traders waiting to hear from the heads of the European Central Bank, the U.S. Federal Reserve, Bank of Japan and Bank of England later.


"The question that will come in the next 10 days is will the U.S. Treasury yield keep pushing above 1.5 percent," said Societe Generale strategist Kenneth Broux. "That was a sort of breaking point for broader risk assets when stops went off and the selloff started accelerating."


Broux said the question for October and the rest of the year would be whether inflation pressures started to abate. "The 1.5 perent level (on U.S. Treasuries) is really pivotal," he said.


Doubts are re-emerging about the global recovery at a time when the Fed is set to taper stimulus and the U.S. administration is stuck in debt ceiling talks that could lead to a government shutdown. China is also grappling with a power crunch that has hit its economic output.


World stocks are heading for their first red quarter since the peak of COVID panic, while the dollar is on course for its best year since 2015 and gas and energy prices have surged.

But companies face pressure on margins as higher energy prices are locked into next year's bills.

U.S. Futures suggested a risk-friendlier mood could return on Wall Street. S&P 500 e-minis were up 0.6 percent and those for the Nasdaq were up 0.8 percent after that index had been pounded 3.6 percent on Tuesday by heavy tech stock selling.


China's worsening power crunch pushed investors out of Chinese stocks vulnerable to factory shutdowns, including chemicals and steelmaking, even as the country's economic planning agency sought to reassure residents and businesses.


Debt saddled property giant China Evergrande's shares leapt 15 percent though after it said it planned to sell a 9.99 billion yuan ($1.5 billion) stake in Shengjing Bank.


Investors are waiting to see whether the developer makes an overdue interest payment on a dollar bond and S&P said another major property firm, Fantasia, was also at risk of default.
 


Apple grabs record China market share as Q4 sales surge: research

Apple grabs record China market share as Q4 sales surge: research
Apple's direct store in Nanjing. Image: Shutterstock
Updated 12 sec ago

Apple grabs record China market share as Q4 sales surge: research

Apple grabs record China market share as Q4 sales surge: research
  • In 2021 as a whole, Apple ranked as China’s third best-selling smartphone brand with 16 percent of the market

Apple Inc. achieved its highest-ever market share in China in the fourth quarter, when it was the top-selling vendor there for the first time in six years, research firm Counterpoint Research reported on Wednesday.


The milestone coincided with the release of the iPhone 13, and amid otherwise stagnant demand for handsets as chief rival Huawei Technologies Co. Ltd’s market share declined.


Apple’s smartphone market share reached 23 percent, a record for the brand.

Its unit sales volume grew 32 percent year-on-year in the quarter, while total smartphone sales in China fell 9 percent, according to Counterpoint.


Counterpoint analyst Mengmeng Zhang cited a lower starting price in China and the impact of US sanctions against Huawei, Apple’s main competitor in the high-end segment, as factors.


Apple last ranked as China’s top-selling smartphone brand in late 2015, just after the company launched its iPhone 6, which attracted Chinese consumers with their large screens.


In 2021 as a whole, Apple ranked as China’s third best-selling smartphone brand with 16 percent of the market.


Vivo and Oppo, two Android handset brands under the privately-owned BBK Electronics, ranked first and second with 22 percent and 21 percent respectively.


Year on year, Apple’s unit sales rose 47 percent while Huawei’s tumbled 68 percent. Overall smartphone sales in China fell 2 percent, according to Counterpoint.


Lengthening upgrade cycles have presented an ongoing dilemma for Chinese smartphone brands looking to maintain growth at home, as consumers delay purchasing new devices.


A global chip and component shortage has meanwhile rattled the entire electronics industry, affecting pricing and margins for all hardware makers.


UK’s Bentley pouring billions into electric car overhaul

UK’s Bentley pouring billions into electric car overhaul
Image: Shutterstock
Updated 16 min 54 sec ago

UK’s Bentley pouring billions into electric car overhaul

UK’s Bentley pouring billions into electric car overhaul

Luxury automaker Bentley said Wednesday it is pouring billions into upgrading manufacturing to accelerate its electric vehicle development plan, joining other auto brands shifting away from gasoline engines.


UK-based Bentley Motors said that it’s investing 2.5 billion pounds ($3.4 billion) into sustainability efforts over the next decade.

The company said the money will be used to secure the company’s “first step into electrification at the production plant” in Crewe, south of Manchester, which employs 4,000 people.


Under the electrification program, Bentley will abandon the powerful 12-cylinder gasoline engines that the marque’s luxurious vehicles are known for in favor of battery power.

The first model is scheduled to roll off the production line in 2025 and by 2030 all of Bentley’s model lineup will be electric.


Bentley, which is owned by Volkswagen, already makes hybrid version of its Bentayga SUV and Flying Spur sedan.


“Our aim is to become the benchmark not just for luxury cars or sustainable credentials but the entire scope of our operations,” Chairman Adrian Hallmark said in a press release.


Qatar could reroute some gas to Europe with US mediation: source

Qatar could reroute some gas to Europe with US mediation: source
Image: Shutterstock
Updated 25 min 10 sec ago

Qatar could reroute some gas to Europe with US mediation: source

Qatar could reroute some gas to Europe with US mediation: source

Qatar will need help from the United States to persuade Doha’s natural gas customers to reroute some supplies to Europe in case a Russia-Ukraine conflict disrupts Russian deliveries to the continent, a source familiar with the discussions said.


The issue will be discussed at talks in Washington next week between the Emir of Qatar Sheikh Tamim bin Hamad Al-Thani and President Joe Biden, one of the sources said.


Saudi PIF-owned Savvy makes debut with acquisition of ESL and FACIT

Saudi PIF-owned Savvy makes debut with acquisition of ESL and FACIT
Updated 46 min 17 sec ago

Saudi PIF-owned Savvy makes debut with acquisition of ESL and FACIT

Saudi PIF-owned Savvy makes debut with acquisition of ESL and FACIT

RIYADH: Saudi Arabia's Public Investment Fund launched Savvy Gaming Group that will be chaired by Crown Prince Mohammed bin Salman.

The group seeks to be a leading developer of games at home and internationally, according to a statement from the Fund, known as PIF.

The Saudi-owned Savvy will acquire ESL and FACEIT platform and merge them into one entity to be the cornerstone of reaching the group goals, the statement added.

Savvy has acquired ESL Gaming Co. for $1.08 billion.

The deal is expected to close in the second quarter of 2022, Handelblatt reported, citing an announcement from ESL FACEIT Group.

The group, backed by Saudi Arabia's Public Investment Fund, acquired the esports platform FACEIT in an earlier $500 million deal.

“Our merger with FACEIT, along with the backing of SGG, will give us more know-how, capabilities, and resources than ever before to deliver on this vision,” CEO of ESL, Craig Levine, said.

“Whether you are competing or watching, doing so socially or at a professional level, every stage of the pathway will be improved through this merger,” he added. 

Electronic gaming, or egaming, is an increasingly popular activity, with a recent study suggesting that 50 percent of the Saudi population consider themselves regular gamers.

Prince Faisal bin Bandar bin Sultan, president of the Saudi Esports Federation told Arab News in October that the sector will contribute about 1 percent of Saudi GDP by 2030, which might seem a small proportion but the amount of money potentially involved is significant.

 


UAE’s Chimera, US Alpha Wave to lead $10bn tech fund

UAE’s Chimera, US Alpha Wave to lead $10bn tech fund
Image: Getty
Updated 56 min 27 sec ago

UAE’s Chimera, US Alpha Wave to lead $10bn tech fund

UAE’s Chimera, US Alpha Wave to lead $10bn tech fund
  • The fund’s ticket size ranges from “tens of millions to hundreds”

RIYADH: Abu Dhabi based investment firm Chimera Capital has joined global alternative asset manager Alpha Wave in leading a $10 billion tech fund.

The fund will have a global remit but with a concentration on India and will focus on private firms across a wide array of sectors including artificial intelligence, financial technology, and life sciences, Bloomberg reported.

Both institutions will work hand in hand to pinpoint and run potential management opportunities in the South Asian country.

The fund’s ticket size ranges from “tens of millions to hundreds,” Bloomberg reported, citing Seif Fikry, Chimera’s chief executive officer.

This falls in line with the Gulf’s growing role as a major channel of capital for international firms such as SoftBank Group Corp. and Silver Lake.

The Gulf region has hit a record year for tech investments with an accumulated balance of $621 billion dispersed worldwide.