Gold Inches Up On Weaker Dollar
Gold edged higher on Monday and the dollar fell against its major rivals as Asia-Pacific nations including China, Japan and South Korea on Sunday signed the world’s largest regional free-trade agreement after eight years of negotiations.
Spot gold rose 0.3 percent to $1,892.05 per ounce, after having earlier hit its highest level since Nov. 9 at $1,898.81. U.S. gold futures were up 0.3 percent at $1,891.85.
The U.S. dollar weakened across the board as the establishment of a China-backed trade bloc and upbeat economic data from China and Japan bolstered investor sentiment.
China’s factory output rose faster than expected in October and retail sales growth accelerated from the previous month, suggesting a broader economic recovery from the coronavirus pandemic.
Elsewhere, Japan’s economy grew at the fastest pace on record in the third quarter, rebounding sharply from its biggest postwar slump.
The yellow metal is also benefiting from hopes of more stimulus in the wake of mounting coronavirus cases in many parts of the world.
As the number of coronavirus cases in the United States crossed the 11-million mark to reach yet another grim milestone, two of U.S. President-elect Joe Biden’s coronavirus advisers said a national Covid-10 lockdown isn’t on the agenda and that they favor targeted local measures to stem the pandemic.
RCEP Trade Deal May Buoy Post-Covid Economic Growth in Asia
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The signing of the Regional Comprehensive Economic Partnership by China, Japan, South Korea, and 12 other Asia Pacific states over the weekend paves the way for a reduction in trade barriers at a time that the U.S.-China decoupling and the Covid-19 pandemic pose challenges to global commerce. The RCEP deal may support a relatively faster recovery for its members, particularly China: The agreement may buoy China’s gross domestic product by 0.5% a year through 2030,Bloomberg Economics estimates. South Korea could benefit from a 1.4% boost and Japan by 1.3%, assuming 90% of tariffs are eliminated.
EARNINGS SUMMARY: Details of China Yuchai International Ltd Q3 Earnings Report
Below are the earnings highlights for China Yuchai International Ltd (CYD):
-Earnings: RMB108.4 million in Q3 vs. RMB50.3 million in the same period last year.
-Revenue: RMB5.4 billion in Q3 vs. RMB3.3 billion in the same period last year.
China's Didi Chuxing, BYD roll out customized car model for ride-hailing service
BEIJING (Reuters) – China’s Didi Chuxing and electric vehicle maker BYD on Monday launched their purpose-built D1 van model for ride-hailing services, the ride-hailing giant’s CEO Will Cheng said on Monday.
SoftBank-backed Didi and Shenzhen-based BYD, which is backed by U.S. investor Warren Buffett, started to jointly design and develop the model from early 2018, which will have larger leg-room for back seat passengers.
China Yuchai International Q3 Profit More Than Doubles – Quick Facts
China Yuchai International Ltd. (CYD) announced Monday selected preliminary unaudited data for the third quarter, reporting that total net earnings attributable to shareholders for the quarter was RMB 108.4 million, higher than RMB 50.3 million in the same quarter in 2019.
Revenue for the quarter increased to RMB 5.4 billion from RMB 3.3 billion last year.
China Yuchai has previously announced that it will only announce six month and annual financial results in the future. However, the Company is announcing these selected preliminary third quarter to provide investors with a timely update, giving consideration to the business uncertainty caused by the impact of the COVID-19 pandemic.
U.S. Consumer Sentiment Unexpectedly Deteriorates In November
Reflecting a less favorable assessment of future economic prospects, the University of Michigan released a report on Friday showing an unexpected decrease in U.S. consumer sentiment in the month of November.
The preliminary report said the consumer sentiment index fell to 77.0 in November after rising to a seven-month high of 81.8 in October. The pullback came as a surprise to economists, who had expected index to inch up to 82.0.
The unexpected decrease by the headline index came as the index of consumer expectations tumbled to 71.3 in November from 79.2 in October.
The report showed a much more modest drop by the current economic conditions index, which edged down to 85.8 in November from 85.9 in the previous month.
“The outcome of the presidential election as well as the resurgence in covid infections and deaths were responsible for the early November decline,” said Surveys of Consumers chief economist Richard Curtin
“Interviews conducted following the election recorded a substantial negative shift in the Expectations Index among Republicans, but recorded no gain among Democrats,” he added. “It is likely that Democrats’ fears about the covid resurgence offset gains in economic expectations.”
On the inflation front, the report said one-year inflation expectations crept up to 2.8 percent in November from 2.6 percent in October, while five-year inflation expectations rose to 2.6 percent from 2.4 percent.
Run-It-Hot, Household Finances, Black Friday: Eco Day
Welcome to Monday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the week:
Joe Biden will outline his team’spost-Covid recovery plan today, with the program set to push the notion that unemployed peopleneed jobs, not new skills
- Eight months into the pandemic, Americans’ household finances are in thebest shape in decades
- The formula for retailers on Black Friday is usually pretty simple: Cut prices, stock shelves, prepare for crowds and make sure orders arrive on time. This year — like everything in 2020 —it’s anything but