LBLV U.S. can stay in the WHO if Biden wins 2020/08/07

LBLV provides an overview of economic news.


The main economic news for Wednwsday, July 8:

1. U.S. can stay in the WHO if Biden wins
According to the United Nations’ announcement, the U.S. will leave the World Health Organization (WHO) on July 6, 2021, due to the President Donald Trump’s notification after accusing the agency of misinformation about the coronavirus pandemic. After more than 70 years of membership, the United States moved to quit the WHO amid escalating tensions with China over the COVID-19. U.S. House of Representatives Speaker Nancy Pelosi described Trump’s official withdrawal as “an act of true senselessness as WHO coordinates the global fight against COVID-19.” However, the decision could be overturned before it takes effect if the current president is defeated by his Democratic rival, former Vice President Joe Biden, in a November election.

2. Boohoo set to revise its supply chain in Britain
British online fashion retailer Boohoo announced a launch of an independent review of its supply chain in the country, following a media report about harsh working conditions in one English factory that has hammered its shares. The review will be led by Alison Levitt QC. The company’s shares lost about a third of their value since The Sunday Times newspaper wrote workers in a factory in Leicester, central England, making clothes destined for Boohoo were being paid as little as 3.50 pounds an hour. Boohoo said it was also accelerating its independent third party supply chain review with ethical audit and compliance specialists, Verisio and Bureau Veritas, and would invest 10 million pounds ($12.5 million) to resolve this issue.

3. Global shares mostly fall, oil futures decline
World’s share markets decreased on Wednesday as an increase in coronavirus cases in some countries undermined prospects for a quick economic recovery, while oil prices showed the drop due to oversupply concerns. European markets opened the session lower, with Eurostoxx 50 and German DAX futures declined 0.7% each. Britain’s FTSE futures slipped 0.85%. In the U.S., E-mini futures for the S&P 500 dropped 0.25%. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed, but was still lower than a 4-1/2-month high reached on Tuesday. Chinese shares fluctuated between green and red zones during the session, but were last 0.9% higher, while Japan’s stocks fell 0.8%. On the commodity market, Brent crude futures tumbled 0.3% to $42.97 a barrel. U.S. West Texas Intermediate (WTI) crude contracts also traded down 0.3% at $40.51 a barrel, holding to the narrow range of the past few weeks.

4. Credit Suisse aims to expand in China
Credit Suisse, the second largest Swiss financial company, aims to raise its China securities joint venture stake to 100% and increase its market share after getting the regulatory approval to take a majority holding. Switzerland’s bank is also looking to hire more staff and invest in China, considering the Asian country as its most significant business opportunity in the world. After gaining 51% control of securities joint venture in June and appointing Janice Hu as chairwoman, Credit Suisse plans to take on full ownership from Founder Securities as it seeks to build out its private and investment banking businesses.