Latest Updates: Second Day Of Sale Leaves Paytm 35% Down From IPO Price


What to watch in Europe today

EU: The bloc publishes flash figures on consumer confidence on Monday. Eurozone consumer confidence cooled in August amid fears of the spread of the Delta variant of Covid-19, but remained above its pre-pandemic level.

Switzerland: The General Council of the World Trade Organization will meet in Geneva. The Council for Trade-Related Aspects of Intellectual Property Rights will provide an overview of India and South Africa’s waiver request aimed at accelerating the development and deployment of Covid-19 vaccines.

UK: The CBI publishes its monthly survey on industrial trends. In September, the CBI said labor supply issues could last for up to two years and would not be resolved by the end of Britain’s job retention program.

Markets: Asian stocks started the week mixed, with benchmarks for Hong Kong, Japan and Australia all falling on Monday, while South Korea and mainland China advanced. FTSE 100 futures rose 0.2% and Euro Stoxx 50 futures rose 0.1%.

Second day of sale leaves Paytm down 35% from IPO price

Paytm shares fell further in their second day of trading, placing the Indian payments and fintech firm one-third below its issue price and raising new questions about its record-breaking initial public offering last week .

Paytm, which had sold itself as India’s multi-purpose financial platform, raised a record $ 2.5 billion in the IPO, valuing it at around $ 20 billion and putting in places a huge salary for major funders, including Chinese fintech giant Ant Group and Japan’s SoftBank.

But the company’s shares closed 27% lower on Thursday and fell a further 10% in morning trading on Monday as markets reopened in Mumbai after a public holiday on Friday. That took Paytm down about 35% from its IPO price and reflected an almost $ 8 billion drop in the company’s market cap in just two days.

Critics of the company say it has little competitive advantage as foreign rivals including Google and Walmart-owned Flipkart have eaten away at its mobile payments market share.

And brokerage firm Macquarie has pushed Paytm down even further, setting a target price for the shares of Rs 1,200 ($ 16.16) which indicates a 44% drop from their issue price.

Asian stocks drop as investors start week cautiously

Most Asia-Pacific markets fell on Monday as investors started the week on a cautious note.

Australian markets fell the most, with the S & P / ASX 200 falling as low as 0.8% in the morning, before recovering to losses of 0.5%.

Japan’s Topix lost 0.7% but recovered from losses of 0.3% around noon, while Hong Kong’s Hang Seng index fell 0.5%.

China and South Korea reversed the trend, with the CSI 300 gaining 0.6% and the South Korean Kospi advancing 1.3%.

Robert Carnell, head of Asia-Pacific research at ING Bank, said global investors were in the mood to take the risk this week as they considered a Covid-19 outbreak in Europe, the potential for a new one. monetary tightening in the United States and signals from the Chinese authorities that they could intervene to fight against the rise in the renminbi price.

Australia will allow visa arrivals from December

Australia will ease entry requirements for visa travelers starting early next month as part of a significant relaxation of some of the world’s toughest pandemic border controls.

Prime Minister Scott Morrison said fully vaccinated holders of 28 types of visas – including working holiday visas – would be allowed to enter the country without requesting a travel exemption. The move extended a relaxation of restrictions that originally applied only to Australian citizens, permanent residents and their families.

Morrison also said Australia would allow visa-free arrivals from Japan and South Korea to enter without quarantine from December, a day after a similar agreement began for arrivals from Singapore.

Home Secretary Karen Andrews estimated the new rules for visa holders would allow around 200,000 people to enter the country.

Andrews added that visa-holding arrivals would be subject to their state of arrival’s quarantine provisions, which vary widely.

In New South Wales, Victoria and the Australian Capital Territory, fully vaccinated arrivals are not subject to quarantine, while those from Queensland must undergo 14 days of isolation at a designated hotel at their own expense .

Dozens injured in the Christmas parade rampage

At least 20 people were injured Sunday afternoon by a truck that drove through a Christmas parade in a suburb of Milwaukee, Wisconsin.

The Waukesha Police Department said a person of interest has been identified and the vehicle allegedly responsible for the injuries has been found. An unconfirmed number of people have been taken to hospitals, police said.

Videos from the parade showed a red sport utility vehicle accelerating towards the participants.

Police said an unconfirmed number of people were taken to hospitals after a red vehicle was loaded during a Christmas parade in a Milwaukee suburb on Sunday night © Getty Images

Learn more about the Wisconsin Parade.

Asia-Pacific equities set to drop early in trading

Asian stocks looked set to fall on Monday, with Hong Kong and Japan futures falling and Australian stocks falling early in the session.

The S & P / ASX 200 fell 0.8% after the markets opened, while Topix futures in Japan fell 0.6%. Hong Kong futures were also down.

U.S. government bonds rose on Friday as stocks fell as new coronavirus brakes in Europe and hawkish comments from U.S. policymakers prompted investors to look to safe-haven assets.

The broad S&P 500 stock index ended the day 0.1% lower after fluctuating between minor gains and losses as the rise in tech stocks was tempered by declines in US financial services groups and energy companies . Despite the loss, the index ended the week up 0.3 percent.

The Nasdaq Composite Index, which brings together technology and healthcare companies, ended the day up 0.4%, marking its second consecutive record close.

The yield on the 10-year Treasury bill, meanwhile, fell 0.04 percentage point to 1.55% as the price of the benchmark debt rose.

Chile’s business model put to the test as voters go to the polls

Chileans will vote on Sunday in the first general election since mass anti-government protests two years ago, with voters leaning to the extremes as they reject the political establishment.

The elections, which will likely take place in the second round in December, are seen as a referendum on the Chilean economic model which has seen one of the best growths in Latin America in recent decades, but failed to make it. widely distribute the benefits among the population.

“Those who are poor die poor. The wealth of our country is unevenly distributed, ”said Carolina Cavieres, a 35-year-old mother of two who voted in La Pintana, a working-class suburb south of Santiago.

Outside the polling station, José Peredo, 50, who moved to La Pintana in 1983 when it was still the countryside, said Chileans were disillusioned because “[the elite] want all the cake for themselves. . . they promised us equality if we became a democracy, and let’s see what we have ”. He gestured toward the rows of cramped social housing that overlooked a congested freeway.

Learn more about the elections in Chile.

What to watch in Asia today

China’s key rate decision: Policymakers should keep China’s benchmark interest rate stable as they seek to limit risk in the real estate sector.

Economic data : Thailand’s third quarter employment and household debt data is expected to be released, along with data from the monthly Hong Kong consumer price index and revised Taiwan gross domestic product in the third quarter.

Markets: Asian stocks looked set to fall on Monday with Hong Kong and Japan futures falling and Australian stocks falling early in the session. U.S. stocks fell on Friday as new coronavirus brakes in Europe and hawkish comments from U.S. policymakers prompted investors to turn to safe-haven assets.

HSBC struggles to attract offers from Big Four listeners

HSBC bosses fear they will have a hard time convincing some of the UK’s largest accounting firms to bid on the bank’s $ 94 million a year audit after initial contact with competitors suggested that a number of large firms were reluctant to take on the role.

The UK’s largest lender is preparing to bid next year for the audit of its accounts from 2025, people with knowledge of the matter told the Financial Times.

HSBC has been audited since 2015 by PwC, which is eligible for a further 10-year period.

But the bank already expects difficulty in attracting arguments from other top accountants – Deloitte, EY and KPMG – as some candidates have expressed concerns about possible conflicts with lucrative consulting projects and the scale of the resources needed. to audit it, people familiar with the said subject.

The number of jurisdictions in which HSBC operated, the resources and technology required, and the risk involved were all issues in attracting auditors to bid, one of the people said.

Learn more about the HSBC audit.


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