Tensions with China | Weekly Excerpt

Week of November 09 to 13

• The global equity market closed the week in positive territory.
• Optimism is widespread due to news of a potentially effective vaccine against the coronavirus.

To keep in mind about covid-19 and the vaccine

• The China's industrial production grew by 6.9 1Q3Q% year-on-year in October, consolidating the seventh consecutive month of growth.
• The Japan's economy grew by 5.0% in the third quarter of the year above forecasts of 4.4%. The result was the largest expansion since 1980.
• Investors in the world are on the lookout for news from various companies with positive results on the efficiency of the vaccine against Covid-19. It is expected to know details of the tests carried out by Moderna, Johnson & Johnson and AstraZeneca among others.
• The increase in Covid-19 cases in different parts of the world and rumors of new confinement measures in different parts of the world. could put investor optimism on hold, considering the damage that the economy could suffer again. In the United States, on Friday the of 177,000 new cases per day.
• President Donald Trump has signed a executive order prohibiting U.S. investments in 31 Chinese companies. The measure could increasing trade tensions with Chinaeven considering that Joe Biden will soon take office.
• The Asia-Pacific nations (China, Japan, Australia, New Zealand, among others), fhe world's largest regional free trade agreement was signed on Sunday. (RCEP) agreement is expected to reduce tariffs, strengthen supply chains with common rules of origin and codify new e-commerce rules.
• Discussions to reach an agreement Brexit trade agreement could be extended, according to UK Environment Secretary George Eustice, the initial deadline was set to expire on November 15. 
• Volkswagen AG plans to invest about $$ 86 billion in the development of electric vehicles and other new technologies over the next five years. Aiming to overtake Tesla Inc. as the leading electric car manufacturer.