Biden: Failure to aid transition means “people may die”
US president-elect Joe Biden said Donald Trump’s refusal to concede defeat and cooperate with the handover of power could cost lives. “More people may die if we don’t coordinate,” Biden stated. “If we have to wait until January 20 to start that planning, it puts us behind for a month, a month-and-a-half. And so it’s important that it be done, that there be coordination now.” Biden said containing the coronavirus pandemic was essential for economic recovery. Sources: Bloomberg, CNBC, Deutsche Welle, Financial Times and NPR.
Hungary & Poland veto EU budget
Budapest and Warsaw blocked the EU’s €1.1trn budget for 2021-2027, including the €750bn covid recovery fund, because the budget includes ‘rule of law’ provisions. EU leaders will discuss the impasse on Thursday. Sources: BBC, Euractiv, Financial Times, Deutsche Welle and Politico.
Moderna says covid jab highly effective so far
The American drugmaker Moderna said its covid-19 vaccine candidate was 94.5% effective in early trials. Last week Pfizer said its candidate was more than 90% effective. Sources: CNBC, Financial Times, The Guardian, MIT Technology Review and NPR.
Warren Buffett bets on drugmakers
The investment firm Berkshire Hathaway bought $5.7bn in pharmaceutical shares, and reduced its stake in Apple and several banks. Sources: Financial Times, Reuters and Seeking Alpha.
French restrictions could continue
The French newspaper LePoint said (in French) that bars and restaurants in France may not open until 15 January or 1 February 2021. The French industry minister said some shops in France may be able to reopen on 1 December, when the current set of lockdown rules tentatively end, per the AFP.
Latest Luxembourg covid-19 data
Out of 797 PCR tests conducted on Sunday, 164 Luxembourg residents tested positive for the coronavirus. That is a rate of 127.29 new cases per 100,000 inhabitants (compared to 87.52 on Saturday). There were 211 patients in hospital (compared to 207), including 46 in intensive care (unchanged). Ten people died due to covid-19, bringing the total to 236.
Lux hospitals form supply group
Several Luxembourg hospitals have formed a not-for-profit outfit to purchase and manage the stock of supplies such as PPE. Sources: Delano and Paperjam.
Press conference later today
Xavier Bettel, the prime minister (DP), and Paulette Lenert, the health minister (LSAP) will hold a press conference on the coronavirus pandemic, following a special cabinet meeting, scheduled for 12:30pm. More: Delano.
Gov admits IT security breach
The government was forced to upgrade its computer security system after a civil servant illicitly accessed the secret service’s HR files. Source: Delano.
Trump to order troop reductions
Donald Trump will reportedly order the withdrawal of significant numbers of US troops from Afghanistan and Iraq, against the advice of military leaders, before Joe Biden takes office. Sources: Associated Press, BBC, The Guardian and NPR.
Russians to build base in Sudan
Russia will set up a naval base on Sudan’s Red Sea coast, its first military site in Africa. Sources: BBC, Financial Times and Reuters.
Airbnb plans IPO
Despite the coronavirus pandemic, the accommodation booking site Airbnb released its IPO prospectus and plans to list its shares. It aims to raise $3bn, valuing the company at $30bn. Sources: BBC, CNBC, Financial Times and Reuters.
Apple hit with privacy complaints
The Austrian privacy activist group Noyb, known for its successful campaigns against Facebook, filed a pair of complaints against Apple, saying an Iphone tracking code breaches EU rules. Apple said it complies with European law. Sources: CNBC, Euractiv and RTE.
Rising air cargo shipments
Richard Forson, CEO of Luxembourg freight airline Cargolux, said demand in recent weeks has been strong because there is less cargo capacity on passenger flights and due to the coming release of several new consumer electronic devices. Source: Bloomberg.
EU regulator supports delegation, warns fund managers to prepare for future shocks
“We are very much in favour of delegation”, Steven Maijoor, chair of the European Securities and Markets Authority, said last week. He was referring to a business model frequently used by Luxembourg fund firms. He stated that earlier comments were not a call to EU change rules, but simply to clarify them, per Reuters. Maijoor also called on asset managers “to step up their efforts to ensure the liquidity of their funds is adequately managed” and be ready to handle another cash crunch like the covid-related one experienced in March, per the Financial Times and Pensions & Investments.
Santander buys Wirecard assets
The Spanish financial group Banco Santander will acquire the European assets of collapsed payments firm Wirecard for roughly €100m. Sources: Financial Times and Reuters.
Swift catalogue sold to PE fund
The singer Taylor Swift said a music executive had sold her master recordings to the private equity outfit Shamrock Capital for $300m. Sources: Financial Times, Reuters and Variety.
Tesla to enter S&P 500
Shares in the electric carmaker Tesla rose on the announcement it would join the benchmark S&P 500 index in December, which will lead index funds to buy its stock. Sources: Bloomberg, CNBC, Financial Times, and Seeking Alpha.
Agenda
Tuesday 17-Thursday 19 November: This year’s Luxembourg Internet Days conference focusses on network and cloud security. Tuesday 17-Wednesday 18 November, 10am-11am: Check out sportstech and healthtech startup pitches. Wednesday 18 November, 10am-11am: Step Benelux webinar on ultimate beneficial owner register rules. Wednesday 18-Thursday 19 November: Forum for anti-money laundering and financial crime professionals. Weekends through 6 December: “Bâtiment 4”, one of the largest exhibitions of local artists, in Esch-Alzette.
Getting the holidays into gear, despite pandemic
In response to coronavirus restrictions, an innkeeper in the German state of Bavaria set up a drive-through Christmas market, per Reuters (video).
Today’s breakfast briefing was written by Aaron Grunwald