Biden names economic team
Joe Biden announced his top economic policy advisors. As widely expected, Biden formally named Janet Yellen as his nominee for treasury secretary. Yellen was chair of the US Federal Reserve from 2014 and 2018. Biden will tap Neera Tanden, a former senior aide to Hillary Clinton, as his budget chief, and Wally Adeyemo, currently president of the Obama Foundation, as deputy treasury secretary. All three need to be confirmed by the US senate. Sources: Financial Times, The Guardian, Marketwatch, NPR and Reuters.
Eurogroup reaches ESM revamp deal
Eurozone finance ministers agreed on an overhaul of the European Stability Mechanism, the euro area’s bailout fund based in Kirchberg. Under the reform, the ESM could back up the EU’s bank resolution fund. The deal needs to be approved by member states. Sources: DW, Financial Times and Irish Times.
Lux econ ministry creates “forward-looking” unit
Franz Fayot, the economy minister (LSAP), outlined a new “Luxembourg strategy” unit within his ministry that would focus on long-term economic development. Fayot said the goal was to learn from the crisis and make Luxembourg’s economy “more resilient, sustainable and competitive”. Sources: Delano and Paperjam.
Lux econ less impacted by crisis: Moody’s
The credit ratings agency Moody’s said it expected Luxembourg’s economy “to remain resilient to the coronavirus crisis.” Sources: Delano.
Latest Luxembourg coronavirus update
Nine people died due to covid-19 on Sunday, bringing the national total to 321. There were 214 patients in hospital (compared to 203 on Saturday), including 42 in intensive care (unchanged). The effective reproduction rate was 0.98, below the threshold of 1.00. Source: Health ministry.
Canadian gov announces fresh stimulus package
Ottawa unveiled a three-year C$100bn spending plan to jumpstart the Canadian economy. Sources: BBC, Bloomberg, CBC and National Post.
Opec+ meeting delayed
The oil price continued to drop after a meeting of the Opec+ group of oil producing countries was pushed back. Opec+ ministers are divided on whether to pump more or maintain production cuts. Sources: Bloomberg, Financial Times, Marketwatch and Reuters.
Amazon deforestation reaches 12-year high
The rate of deforestation in Brazil’s Amazon rainforest is the highest since 2008, according to the Brazilian government’s own figures. Sources: AFP, BBC, DW and The Guardian.
Paris to rewrite police bill
French MPs dropped a draft law that would have effectively banned publishing images of police officers. The governing party said the bill would be “completely rewritten”. Sources: AP, BBC, Euronews and France 24.
Financial data transaction creates Bloomberg competitor
S&P Global has agreed to acquire IHS Markit, a rival provider of data to financial firms, in $44bn deal. Sources: Bloomberg, Financial Times, The Guardian, Reuters and Wall Street Journal.
Moderna seeks vaccine approval
The drugmaker Moderna filed for emergency authorisation for its covid-19 vaccine candidate in both the EU and US, based on initial trials that found it 94% effective. Sources: BBC, Bloomberg, CNBC, DW and Wall Street Journal.
Top Shop owner in administration
Arcadia Group, which owns Top Shop and other high street retailers, has filed for insolvency. Sources: AP, BBC, Bloomberg and Reuters.
Tesla stock supercharged on S&P news
Tesla shares surged on news that it would enter the S&P 500 index in a single step, instead of several tranches, on 21 December. Sources: Bloomberg, CNBC, Financial Times, Marketwatch and Seeking Alpha.
Unicredit CEO to leave in April
Jean-Pierre Mustier will step down as chief of the Italian bank Unicredit after clashing with its board. Sources: Financial News, Financial Times and Reuters.
Unilever to trial 4 days a week in NZ
The consumer brands group Unilever will try putting staff in New Zealand on a four-day workweek (without a cut to their salaries). The test will last 12 months. Sources: Financial Times, Reuters, New Zealand Herald and Radio New Zealand.
Zoom shares down on 2021 guidance
Zoom had a good third quarter, but said growth was slowing. Sources: Bloomberg, CNBC, Financial Times and Seeking Alpha.
Hearings start in Lux City bomb smuggling case
The trial opened, in Antwerp last week, of an Iranian diplomat accused by Belgian authorities with allegedly handing over a bomb for a foiled terror attack to conspirators at a Pizza Hut in Luxembourg City. The diplomat disputes the charges and is claiming diplomatic immunity. The conspirators said they thought the package contained fireworks. Sources: BBC, DW, New York Times and Politico. More background: Delano.
Lux films in US spotlight
Two Luxembourg co-productions have been named to Time magazine’s list of “The 10 best movies of 2020”: “Wolfwalkers” (co-produced by Mélusine) and “Collective” (co-produced by Samsa Film). “Wolfwalkers” is number one on Variety’s list of predicted Oscars best animated feature nominees; “Collective” is number nine on Variety’s list of predicted Oscars best documentary feature nominees.
Agenda
Tuesday 1-Wednesday 2 December: The Association of the Luxembourg Fund Industry’s annual alternative funds conference (check out Delano’s preview interviews here). Wednesday 2 December, 6pm: Paperjam Club talk on “the systemic risks in the Luxembourg real estate markets”. Monday 7 December: Amcham teleworking seminar. Tuesday 8 December, 9am-10am: Chinalux webinar on Chinese investment. Thursday 10 December, 11am-12:15pm: Luxembourg for Finance panel on the financial sector in 2021.
Monolith mystery continues
The metallic monolith that mysteriously appeared in the middle of a Utah desert, featured in the breakfast briefing last Friday, has apparently vanished in a flash. Sources: CNN, The Guardian and NBC News.
DIY payoff
A couple renovating their home in New York state found 66 bottles of 100-year-old Scottish whiskey hidden in the walls and floorboards, which are apparently worth $1,000 each, per CNN.
Today’s breakfast briefing was written by Aaron Grunwald