BUSINESS

Fed Will Be Tested in 2021 as Vaccines Boost U.S. Economic Outlook | Investing News

(Reuters) – If 2020 was the year the Federal Reserve overhauled its game plan for supporting the U.S. economy, 2021 will be the year its new approach gets tested should a coronavirus vaccine deliver the lift that many analysts expect.

In its final policy meeting of the year this week, the U.S. central bank is expected to keep its key overnight interest rate pinned near zero and to signal it will stay there for years to come; many analysts also expect new guidance on how long the Fed will keep up its massive bond-buying program.

The super-easy monetary policy is part of a long-term strategy the Fed adopted in August to help it navigate a world of persistently low interest rates that limits the central bank’s options for fighting downturns and makes it difficult to hit its 2% inflation goal.

The idea is to counteract any unhealthy downward drag on

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Iron Ore Rockets To $160 A Ton And China Cries Foul

Like all trade wars the David v Goliath fight between China and Australia is morphing into a lose/lose game of point scoring with China trying to humiliate its smaller target only to see Australia skip away unscathed, so far.

What started with China banning the import of Australia barley and other farm products has been ratcheted up with the imposition of punitive tariffs on wine and a formal ban on Australian thermal, or electricity-producing, coal.

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The net result of China’s tariff attack and import bans has been totally negated by a sharp rise in the price of Australian iron ore, causing the Chinese Iron and Steel Association (CISA) to cry foul and call for government intervention.

The problem for CISA is

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Indonesia says China’s CATL plans to invest $5 billion in lithium battery plant

JAKARTA (Reuters) – China’s Contemporary Amperex Technology (CATL) plans to invest $5 billion in a lithium battery plant in Indonesia, Indonesia’s deputy minister at the coordinating ministry of maritime and investment affairs said on Tuesday.



a tall building: FILE PHOTO: Sign of Chinese battery maker Contemporary Amperex Technology Ltd (CATL) is seen on its building in Ningde


© Reuters/CHINA STRINGER NETWORK
FILE PHOTO: Sign of Chinese battery maker Contemporary Amperex Technology Ltd (CATL) is seen on its building in Ningde

The lithium battery plant will start production in 2024, deputy minister, Septian Hario Seto, told a virtual briefing.

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“The target is that they (CATL) will invest around $5 billion… and the first production of batteries can be done in 2024,” Septian said.

He said CATL has signed an agreement with Indonesian state miner PT Aneka Tambang requiring CATL to ensure 60% of nickel be processed into batteries in Indonesia.

“We don’t want them to get our nickel but then process it abroad,” he said.

CATL did not immediately respond to

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Credit Suisse postpones 10%-12% return on tangible equity ambition

Adds further detail from statement, background

ZURICH, Dec 15 (Reuters)Credit Suisse CSGN.Son Tuesday reiterated its key financial ambition for a 10%-12% return on tangible equityin the medium term but avoided re-committing to the 10% goal previously set for this year.

Switzerland’s second-biggest bank also laid out plans to boost growth in wealth management, aiming to grow wealth-related pre-tax profit to 5.0 – 5.5 billion Swiss francs ($5.64- $6.20 billion) by 2023 or approximately 10% annually, as well as investment banking.

It said it expected to turn around its asset management business in 2021 by focusing more on alternative and private market offerings, and those related to sustainable investing.

“Today, we are outlining … broad-based investment initiatives to accelerate growth in our Wealth Management-related businesses and our Investment Bank,” Thomas Gottstein said in remarks prepared for his first investor outlook presentation as

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Oil dips on demand worries as COVID-19 lockdowns tighten

FILE PHOTO: The sun sets behind an oil pump outside Saint-Fiacre, near Paris, France September 17, 2019. REUTERS/Christian Hartmann/File Photo

MELBOURNE/SINGAPORE (Reuters) -Oil prices edged down on Tuesday as tighter lockdowns in Europe and an OPEC forecast for a slower recovery in demand next year outweighed relief from the roll-out of coronavirus vaccines.

U.S. West Texas Intermediate (WTI) crude futures fell 18 cents, or 0.38%, to $46.81 a barrel by 0737 GMT. Brent crude futures fell 20 cents, or 0.4%, to $50.09 a barrel.

London stepped up restrictions requiring bars and restaurants to close, as COVID-19 infection rates continued to rise sharply, which will dent fuel demand in the near term.

Further marring the demand outlook, Italy said it was considering more stringent restrictions over the Christmas holidays, while most stores in Germany have been ordered to shut until Jan. 10.

“While the market has

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Lessor BOC Aviation says AirAsia X restructuring favours Airbus, calls for debt-to-equity swap

By Liz Lee



a large passenger jet sitting on top of a runway: FILE PHOTO: File photo of an AirAsia X Airbus passenger jet arriving at Orly airport near Paris


© Reuters/Charles Platiau
FILE PHOTO: File photo of an AirAsia X Airbus passenger jet arriving at Orly airport near Paris

KUALA LUMPUR (Reuters) – Lessor BOC Aviation Limited (BOCA) has asked a Malaysian court to dismiss AirAsia X Bhd’s debt restructuring scheme as it rules out a debt-to-equity swap and gives too much power to Airbus as a creditor, an affidavit filed by a top BOCA executive shows.

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AirAsia X (AAX), the long-haul unit of budget airline AirAsia Group, has proposed to reconstitute $15.3 billion of debt into a principal amount of 200 million ringgit ($48 million) and have the rest waived.

The airline, which has posted losses since June 2019, said the alternative was to face liquidation with no returns to creditors. It is now seeking court approval to convene a meeting with creditors to vote on the scheme.

In an affidavit filed at

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Downtown Dallas skyscraper threatened with foreclosure sale

One of downtown Dallas’ largest skyscrapers is facing foreclosure — the largest foreclosure filing in the Dallas area since the start of the COVID-19 pandemic.

The 56-story Renaissance Tower — best known for its double X lighting and decorative towers on top — is owned by a New York investment group. It was the tallest building in Dallas when it opened in 1974, and it’s the second-largest downtown building in terms of office space, behind only the 72-story, 1.8 million-square-foot Bank of America Plaza.

The 1.73 million-square-foot skyscraper has been for sale for several months and is only about 65% leased.

Renaissance Tower is facing foreclosure after defaulting on loans, according to reports from real estate information service Costar.

Since 2006, the Elm Street building has been owned by a partnership headed by New York-based Moinian Group and SMA Equities.

The owners got $118 million in new financing for the

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Scott Morrison lashes China over reported ban on Australian coal imports

Scott Morrison has accused China of breaching international trade rules and its agreement with Australia through its reported ban on Australian coal imports.



Scott Morrison wearing a suit and tie: Photograph: Sam Mooy/Getty Images


© Provided by The Guardian
Photograph: Sam Mooy/Getty Images

On Tuesday the prime minister and the trade minister, Simon Birmingham, responded to a report in the Global Times confirming that China was restricting imports of coal only from Australia and prioritising imports from Mongolia, Indonesia and Russia.



Scott Morrison wearing a suit and tie: Prime minister Scott Morrison has accused China of breaching World Trade Organization rules over the reported ban on coal from Australia.


© Photograph: Sam Mooy/Getty Images
Prime minister Scott Morrison has accused China of breaching World Trade Organization rules over the reported ban on coal from Australia.

The Global Times report triggered a plunge in shares of Australian coalminers on Tuesday morning, with Whitehaven Coal down 8.36% about 11.15am and Yancoal down 10.44%.

Since China’s ambassador announced a consumer boycott in April, Australian producers have been hit by tariffs on goods and disruptions in agricultural and resource exports.

From Tasmania Morrison

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Former Boeing CEO makes comeback at self-driving tractor venture

Dennis Muilenburg, who was then Boeing’s CEO, speaks at the 2018 GeekWire Summit. After his ouster from Boeing in 2019, Muilenburg has resurfaced as an adviser to Monarch Tractor. (GeekWire Photo / Dan DeLong)

It’s been almost a year since Boeing fired CEO Dennis Muilenburg over his handling of the 737 MAX crisis, but now he’s found a new role in the manufacturing industry — as an investor and adviser at a company building self-driving electric tractors.

California-based Monarch Tractor says Muilenburg, who grew up on a farm in Iowa and served as a Boeing engineer and executive for more than 30 years, will bring his experience in the aerospace world to agricultural technology.

“Monarch is at the perfect intersection of my experience paths,” Muilenburg said in a news release.

The company unveiled its “driver optional” tractor just last week. The electric vehicle is designed to perform pre-programmed tasks in

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Disney shares fall more than 2 percent after analyst warns company needs to do more after coronavirus

Disney shares dipped more than 2 percent Monday after a Wall Street analyst cautioned that the company has a lot of work to do before it rebounds from the pandemic and its economic fallout.

Ticker Security Last Change Change %
DIS WALT DISNEY COMPANY 169.30 -6.42 -3.65%

BMO analyst Daniel Salmon, who lowered the rating on Disney stock from “outperform” to “market perform,” said streaming giant Netflix was his “top pick” in the space, despite Disney’s lengthy investor presentation Friday touting its rival Disney+ streaming service, which goosed the company’s stock last week.

DISNEY’S STOCK RISES AFTER MONUMENTAL INVESTOR DAY ANNOUNCEMENTS

In a report titled “Now the Hard Part Begins,” Salmon said Monday that he has decided to “step to the sidelines” even as Disney+, which has garnered over 80 million subscribers since last fall, rolled out

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