>>> Asian Market Update

Asia Market Update: Equity markets rise after US markets rose on Fri; USD trades generally weaker; Moderna is expected to present data during the second half of Nov; Data also expected from Pfizer/BioNTech; China’s Oct data was mixed

General Trend:
- Japanese equities trade broadly higher; Topix Marine/Transportation, Air Transportation and Real Estate indices are among the gainers; Banks rise after earnings from MUFJ and SMFG; Panasonic rises over 5% (named new CEO, announced plans to convert to holding company)
-Tokyo Steel to raise prices for Dec
- Tech and Financial firms are among the gainers in HK, property sector lags
- Various HK firms rise after index changes (Budweiser Brewing, ANTA Sports, Meituan)
- HK-listed Chinese Telecom firms extend declines [reminder from Nov 12th: Reportedly Trump Admin is finalizing Executive Order to ban US purchases or sales of securities in Chinese companies with links to the China military]
- Industrial and Financial firms are among the gainers in Shanghai, Consumer Discretionary and IT firms lag
- Chinese companies said to see rise in orders from the US related to vaccine storage products (Global Times)
- Energy, Financial and Resources firms are among the gainers in Australia
- ASX cited software issue for market outage
- US bank M&A on the radar
- Taiwan Semi rises after recent move higher in its ADRs, cos. is also expected to get additional orders from large clients (local press)
- Samsung rises over 4%, shares trade at new record high
- Korean Won (KRW) pares gain after comments from South Korea Finance Ministry
- Japan Q3 prelim GDP data beat ests amid better external demand
- PBOC conducted MLF operation that exceeded the MLF funds that matured in Nov
- China Stats Bureau Official: Q4 growth to accelerate q/q
- RBA Gov Lowe is due to speak at 825 GMT
- RBA is due to release its Nov minutes on Nov 17th (Tuesday); RBA’s Kent is due to speak ahead of the release of the minutes [Tuesday at 10:30 PM GMT]
- Moderna is expected to present Phase 3 vaccine data during the second half of Nov
- Pfizer/BioNTech are also expected to report safety data related to vaccine during 3rd week of Nov
- Regional Comprehensive Economic Partnership (RCEP) involves 10 members of the Association of Southeast Asian Nations (ASEAN) as well as South Korea, China, Japan, Australia and New Zealand was signed over the weekend (as expected)


***Headlines/Economic Data***
Australia/New Zealand
-ASX 200 opened +1.0%
- ASX will not be open for equities trading for the remainder of the day; Has Identified issue, has resolution path for recommencement of trading by 10AM local time on Tuesday (Nov 17th)
- CSL.AU Confirms Australian government to underwrite construction of vaccine production facility, construction to start in 2021 and expected to be up and running in 2026
- ELD.AU Reports FY20 (A$) Net 124.2M v 68.9M y/y; underlying EBIT 119.4M v 73.7M y/y; Rev 2.09B v 1.67B y/y
- (AU) Reserve Bank of Australia (RBA) Offers to buy A$3.5B in Govt bonds v A$3.5B prior week

Japan
-Nikkei 225 opened +1.1%
- (JP) Japan Econ Min Nishimura: Reiterates to compile comprehensive stimulus package, high level of attention needed for downside risks; Boost to economy from past government stimulus will narrow in FY2021, this needs to be taken into account in compiling new stimulus package
- (JP) JAPAN Q3 PRELIMINARY GDP Q/Q: 5.0% V +4.4%E; GDP ANNUALIZED Q/Q: 21.4% V +18.9%E (largest expansion in 52 years)
-8268.JP Confirms KKR to acquire 65% stake and Rakuten a 20% stake from Walmart, deal values Seiyu at ¥172.5B ($1.6B)
- 5423.JP Raises Dec H-beam price to ¥83.0K/t (prior ¥81K); raises hot-rolled coil to ¥69.0K/t (prior ¥67k)
- (JP) Japan Chief Cabinet Sec Kato: GDP Confirms a recovery movement in Japan Economy; Must be duly conscious on downside risk to economy
-(JP) Bank of Japan (BOJ) Board Member Masai: Important to support banks for financial system; Japan Economy remains in severe state but picking up, raising productivity will lead to price target

Korea
-Kospi opened +0.5%
- (KR) North Korea leader Kim presides over politburo meeting in first public appearance in 25 days; discussed nationwide anti-coronavirus measures
- (KR) South Korea Oct Exports Y/Y: -3.8%, fewer working days cited; Oct Trade Balance: +$5.8B (6th straight monthly surplus) – Yonhap
-(KR) South Korea to lower maximum legal lending rate to 20%, effective H2 2021
- (KR) South Korea Fin Min: Recent FX moves are excessive; To take action against behaviors causing disorderly currency movements

China/Hong Kong
-Hang Seng opened +0.8%; Shanghai Composite opened +0.5%
- (CN) CHINA PBOC CONDUCTS CNY800B 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) OPERATION: RATE 2.95% V 2.95% PRIOR (7th consecutive unchanged rate)
- (CN) CHINA OCT RETAIL SALES Y/Y: 4.3% V 5.0%E; YTD Y/Y: -5.9% V -5.9%E
- (CN) CHINA OCT INDUSTRIAL PRODUCTION Y/Y: 6.9% V 6.7%E; YTD Y/Y: 1.8% V 1.8%E
- (CN) CHINA OCT NEW HOMES PRICES M/M: 0.2% V 0.3% PRIOR; Y/Y: 4.3% V 4.6% PRIOR
- (CN) CHINA OCT PROPERTY INVESTMENT YTD Y/Y: 6.3% V 6.0%E
- (CN) CHINA OCT FIXED URBAN ASSETS YTD Y/Y: 1.8% V 1.6%E
- (CN) China Oct Surveyed Jobless Rate: 5.3% v 5.3%e
- (CN) China National Bureau of Stats (NBS): National Economy maintained steady recovery in Oct; Multiple challenges need to be conquered to achieve full economic recovery; Q4 growth to accelerate q/q
- (CN) US President Trump said to be looking at implementing additional measures against China during his final weeks in office – press
- (CN) China Oct Foreign Direct Investment (FDI) Y/Y: +18.3% v 3.8% prior
- (CN) China PBOC sets Yuan reference rate: 6.6048 v 6.6285 prior
- (CN) China PBoC Open Market Operation (OMO): Skips reverse repos v Injects CNY160B in 7-day reverse repos; Net inject CNY0B v Net inject CNY160B prior

North America
- TCO Simon And Taubman Modify Merger Price To $43.00/shr cash (prior $52.50/shr cash)
- JNJ Janssen to start Phase 3 COVID vaccine trial in UK, to recruit 6.0K people for 12-month trial - US press
- (US) President elect Biden and VP Harris to speak Monday, Nov 16th on economic recovery plans
- TSLA Elon Musk: "Something extremely bogus is going on. Was tested for covid four times today. Two tests came back negative, two came back positive. Same machine, same test, same nurse. Rapid antigen test from BD." - tweet

Europe
- (UK) PM Johnson self isolating after meeting with an MP last week who has since tested positive for COVID - UK press
- BBVA.ES PNC said to be in advanced talks to acquire US operations, in an $11.0B deal – press
- (UK) Nov Rightmove House Prices M/M: -0.5% v 1.1% prior; Y/Y: 6.3% v 5.5% prior
- (DE) Germany considering increased measures to deal with spread of COVID – press
- (GR) Greece offering tax incentives to Greek and non-Greeks in the tech sector to move to Greece and work in the way of a 50% income tax break for the first 7-years - press

***Levels as of 12:15ET***
- Hang Seng +0.6%; Shanghai Composite +0.9%; Kospi +1.9%; Nikkei225 +2.1%; ASX 200 +1.2% when it stopped trading due to tech issue
- Equity Futures: S&P500 +0.9%; Nasdaq100 +1.0%, Dax +0.6%; FTSE100 +0.4%
- EUR 1.1854-1.1834; JPY 104.75-104.50; AUD 0.7298-0.7265; NZD 0.6890-0.6844
- Commodity Futures: Gold +0.4% at $1,893/oz; Crude Oil +1.5% at $40.75/brl; Copper +2.3% at $3.25/lb

>>> Watch SpaceX launch its historic first NASA astronaut crew mission live

Watch SpaceX launch its historic first NASA astronaut crew mission live

SpaceX and NASA have spent years working towards today’s Crew-1 mission, which is set to launch from Florida at 7:27 PM EST (4:27 PM PST). This is the first time that SpaceX’s Dragon capsule and Falcon 9 rocket will be officially used as a spacecraft certified by NASA for human flight on a regular astronaut transportation operation. NASA astronauts Mike Hopkins, Victor Glover and Shannon Walker, along with JAXA astronaut Soichi Noguchi, will also be aboard the Dragon spacecraft and, barring any weather delays, on their way to the International Space Station later Sunday night.
SpaceX has already flown people using Dragon – NASA astronauts Bob Behnken and Doug Hurley had the honor of being the first humans ever to be launched to the ISS aboard a commercial spacecraft when they took part in SpaceX’s Demo-2 mission earlier this year. That was obviously a historic achievement, but it was also technically the last stage in SpaceX’s test and demonstration program for Dragon and Falcon 9, whereas today’s Crew-1 launch no longer qualifies as a test. Think of it this way: If Demo-2 was akin to the Wright Brothers’ Kitty Hawk flight, Crew-1 will be the equivalent of the first U.S. scheduled commercial airline flight in 1914.

Crew-1 will be the first time that a full complement of astronauts are flown on Dragon (there are six total seats but NASA has said it will only ever fly a max of four of its and partner agency crew to the ISS on these flights). The astronauts will join the existing crew on the ISS for a regular tour of performing experiments, maintaining and upgrading the station, which will also see the active ISS population swell by one additional astronaut for the first time during a standard rotation, which means more science can get done according to the agency.
The launch system is designed to work in a completely automated way, which means that it requires no action on the part of the crew on board from launch all the way through its docking with the ISS. That’s also true of the return trip, which will take place sometime around next June.
SpaceX will also be attempting a recovery of the first stage booster used during this launch, using its autonomous drone landing ship in the Atlantic Ocean.
Everything should get started closer to the liftoff target time, but NASA will also have programming all day related to the Crew-1 mission, the Dragon program and much more via the livestream above.

WWD: Alessandro Michele, Gus Van Sant Discuss GucciFest

Alessandro Michele, Gus Van Sant Discuss GucciFest
The designer and Van Sant revealed details about the series of seven episodes that will kick off on Nov. 16 and end on Nov. 22 to present the new Gucci collection.

A backstage still from the first episode
Paige Powell -courtesy image

MILAN — Alessandro Michele never holds back when it’s time to talk about his collection or his projects for Gucci and that was the case on Friday, too, when the designer opened up about his admiration for director Gus Van Sant over three decades, how he wanted to be a costume designer growing up and how as a child he watched Neo-Realistic and old Hollywood films with his mother, who worked in the movies, rather than cartoons.
Michele and Van Sant spoke to the press through a virtual conference to kick off the first digital fashion and film festival, GucciFest, which runs from Monday to Nov. 22. As reported, Gucci’s creative director and Van Sant will present the new course of the brand and the new collection through a seven-part film series they codirected. The collection and the series are dubbed “Ouverture of Something That Never Ended.”


“I needed to experiment and this was a great experiment, it was exhausting, we sometimes forgot to eat, went to sleep at dawn, but I am very happy,” admitted Michele, as Van Sant noted the films were completed on Friday after working on the project for a month. Michele and Van Sant revealed they had been planning a different initiative together a year ago that was shelved by the pandemic.
The director admitted it was not easy to shoot during the second wave of COVID-19 in Rome, as the government has been enforcing more restrictions, but underscored the beauty of a strangely deserted Italian capital, and how he felt in light of the continuous testing for the coronavirus.

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“It was such a privilege to work with Gus — a true luxury for me, as watching [Van Sant’s 1991 movie] ‘My Own Private Idaho’ almost 30 years ago was an eye-opener for me, it made me understand who I am in a delicate way,” said Michele, wearing a white T-shirt over brown corduroy pants and a mock-fur coat casually worn like a cape, and, characteristically, rings on each finger and a number of bracelets on each wrist. “And the meeting between us came entirely naturally.”
Asked why he chose to work on a series, the designer said “it seemed interesting to help define a time that never ends, and to restart at this moment of suspended time. Creativity is circular, and you can’t stop it.”
Michele referenced the pandemic as slowing life down, captured by the concept of the films, which focus on daily activities. “The slowness becomes significant, and to slow down becomes a luxury,” said Michele, thinking of his own pleasure in taking the time to drink a cup of tea at home and not rushing somewhere on a plane. “I want to hold on to the slowness of these times.”
Admitting to a voyeuristic approach to people, observing their gestures and habits, “Ouverture of Something That Never Ended” follows the daily life of Italian actress Silvia Calderoni at home, at a café, at the theater or at a vintage shop, the “ordinary but beautiful places” in Rome, noted Van Sant.

A backstage still from the first episode. Paige Powell -courtesy image
Michele enthused about the cross-pollination of fashion and films and Van Sant underscored the timing of each industry. “A collection is finished just before you need to show, while a film takes much longer to be ready.” Fashion by definition is “reacting to the moment, while it takes a year or two to prepare a film but the combination of cinema and exposing fashion ideas has lots of potential as cinema starts to get sucked into the computer screen,” he said with a smile.


“In our case we were working with something that was not strictly a normal story, things were disconnected within the storytelling, but there is a cinematic fusing with commerce, where you have something that is going to be sold and you are literally making a film within that world, and this is maybe partly new — something that you’d see at a World’s Fair,” observed Van Sant.
Michele said he found it “beautiful to see clothes become part of the life on the screen, it’s as if they were freed and fled away from the runway and I almost did not recognize them. Costumes and clothes are not so different, fashion infiltrates cinema and the other way around. And cinema allows you to fulfill the need to tell stories. If Michelangelo were alive today, he would be a director. The language of cinema is powerful, and I am still undecided if I am a costume designer or not,” he deadpanned.
Van Sant praised Calderoni as an “anchor among guest stars, she is a very powerful actress and dancer wearing the clothes but acting and reacting. She is very versatile and talented.”
Calderoni in the films will be encountering a number of friends of the house, each wearing garments from the new collection. These include Spanish writer Paul B. Preciado; Italian art critic Achille Bonito Oliva; Grammy Award winner Billie Eilish, whose new song is revealed in the first episode; artist and fine jewelry designer Darius Khonsary; Chinese singer and actor Lu Han, who has fronted Gucci ads; American actor and playwright Jeremy O. Harris; artist Ariana Papademetropoulos; singer Arlo Parks; singer Harry Styles, who has also fronted Gucci ads; German choreographer and dancer Sasha Waltz, and singer Florence Welch.
Asked about future collections and if he envisions films as a means to continue to show them, Michele demurred, saying he would indeed like to do another film, but added: “I don’t know about the future, I did something that was necessary, it needed to be done.”

WWD: Moncler Tops Dow Jones Sustainability Indexes for Second Year in a Row

Moncler Tops Dow Jones Sustainability Indexes for Second Year in a Row
The recognition, said chairman and chief executive officer Remo Ruffini, "is testimony to the fact that sustainability is an increasingly strategic asset in the development of our company."

MILAN — For the second consecutive year, Moncler topped the Dow Jones Sustainability Indices World and Europe as industry leader of the “Textile, Apparel & Luxury Goods” sector.

The recognition, said chairman and chief executive officer Remo Ruffini, “is testimony to the fact that sustainability is an increasingly strategic asset in the development of our company. It is a commitment we make to all stakeholders and a moral duty to our children and to everyone’s
future.”

The Dow Jones Sustainability Index ranks the leading sustainability-driven companies based on economic, environmental and social responsibility criteria, which are analyzed by top credit ratings provider S&P Global.

“At Moncler, we dedicate our best energies every day to promoting an integrated business model in which the people and the environment are represented, respected and protected,” Ruffini said. “Only in this way will we be able to deliver a strong vision, new inspiration and renewed hope to the next generations.”

Last month, Moncler presented its new sustainability plan Born to Protect, which extends to 2025 and focuses on five strategic drivers: climate action, circular economy, fair sourcing, enhancing diversity and giving back to local communities.

As per the Nurture Genius project part of the plan, Moncler will establish a Diversity and Inclusion Council to boost cultural change, internally and externally, by January. By 2022, 100 percent of employees will be engaged in a three-year cultural awareness plan. By 2023, a new organizational model based on cross-functional and cross-cultural working groups will be implemented.

With the new sustainability plan, Moncler is setting a number of goals, which include becoming carbon neutral worldwide by 2021 and employing 100 percent renewable energy globally by 2023.

The company’s achievements to date include:

• 100 percent of purchased down traced and certified according to the DIST Protocol since 2015;
• progressive introduction of low impact fabrics and accessories (i.e. recycled, bio-based) into collections;
• 90 percent of product packaging made with sustainable materials;
• a 30 percent reduction of direct CO2 emissions in the last three years;
• 100 percent renewable energy used in Italy and at the directly owned production site in Romania;
• 100 percent of outerwear manufactures audited by an independent party on ethical and social aspects in the last three years;
• 45,000 children protected from the cold in collaboration with UNICEF in the last three years.

Last July, Moncler, which is a signatory of the Fashion Pact, signed a financing credit line granted by Intesa Sanpaolo SpA for a maximum amount of 400 million euros and based on a rewarding mechanism linked to the achievement of environmental impact reduction targets, similar to other brands in the industry such as Prada and Salvatore Ferragamo.

In November, the company signed an agreement for foreign exchange risk hedging with Intesa Sanpaolo, which provides for a premium in terms of improvement in hedging strikes on currencies based on the recognition of high sustainability standards by an external and independent assessment body.

Business of Fashion : Why Is Everyone Betting on Farfetch?

Why Is Everyone Betting on Farfetch?
The marketplace-turned-platform has emerged, finally, as the clear leader in the race to win luxury’s online shopper, with a path to profitability. What changed?

The pandemic has been good to Farfetch.

On Thursday, the online luxury power player reported another record quarter, with the value of goods sold reaching $798 million in the three months ending September 30, a 62 percent increase from the same period a year earlier. Revenue was $438 million, up 71 percent year over year, while gross profit was up 82 percent.

Farfetch shares were up nearly 15 percent in aftermarket trading, another good sign for a stock that’s soared to record highs this year. The company credited a growing user base — 900,000 new customers gained in the second and third quarters of the year — lower customer acquisition costs and less discounting for the tremendous sales growth in its marketplace. It expects to be profitable in the last quarter of 2020 and overall in 2021.

“We believe we are witnessing a paradigm shift in the way people buy luxury,” said Farfetch chief executive José Neves, noting that, in a survey conducted by the company, 45 percent of new customers said that they will continue to do “more” shopping online, while 23 percent said they will do “most” of their shopping online.

It’s quite the reversal of fortune for a business that just over a year ago had investors dizzy with confusion. After its acquisition of brand development platform New Guards Group (NGG), which owns the rights to produce Off-White by Virgil Abloh, among other youth-culture brands, the market wondered where exactly Farfetch, which was still not profitable, was going. Its share price fell to $7.90 in early March, a post-IPO low.

And then Covid-19 hit, throwing Farfetch’s advantage into stark relief. Where its competitors struggled to profit from the unexpected e-commerce boom, overwhelmed by lockdown-related logistics and customer service challenges, Farfetch’s inventory-free marketplace model shined. In the second quarter, the total value of products sold via the site was $721 million, a 48 percent jump year-over-year, generating $365 million in revenue. Over 500,000 new customers bought something on Farfetch during the three-month period, increasing site traffic by 60 percent from a year earlier.

Then, last week, Farfetch announced a joint venture with Chinese tech giant Alibaba and Swiss luxury group Richemont, positioning itself as the bridge between Western brands and Chinese consumers. The $1.15 billion in funding to build a platform that will allow Western brands to sell more inventory in China also included $50 million from Artemis, the family office of the Pinault family, owners of the French luxury group Kering. It was a clear indicator that the luxury industry at large is confident that Farfetch can move the online market ahead, and potentially serve as a technology partner for brands across the board. Richemont Executive Chairman Johann Rupert, who owns Farfetch’s greatest rival, Yoox Net-a-Porter Group (YNAP), characterised the Farfetch China product as “a hybrid platform that will be attractive for all partners.”

Farfetch has never had trouble finding money; it has raised billions of dollars over its 13 years in business from institutional investors, sovereign wealth funds and the public market. But this is the first time in its history where it has emerged as the clear leader in the race to win the customer shopping for luxury online. What changed?

A Better Business Model

Farfetch had its doubters from the beginning. While many investors love a marketplace model, a luxury marketplace seemed, to some, difficult to regulate. But even when that model was proven out, investors remained skeptical of new additions to the strategy, including the move into product development and manufacturing through the $675 million acquisition of NGG in 2019.

However, the pandemic further underscored that vertical integration, from product development to the sales floor, is a major advantage today when control over supply chain and distribution is more crucial than ever. Wholesale, the model on which most of Farfetch’s competitors rely, is increasingly seen as a marketing channel to be used sparingly, rather than the main avenue for selling goods. The marketplace model, or “e-concession,” in which the platform takes a percentage of sales instead of buying the product outright, allows participating brands to manage their own inventory while benefiting from the broad exposure a large platform like Farfetch affords.

Farfetch has also become a preferred white-label partner for independent fashion brands and retailers, from Thom Browne to Harrods, that want to set up their own e-commerce businesses but don’t necessarily want to invest in the technology to make them run smoothly and efficiently. Yoox, part of YNAP, used to be a major technology provider, but over the years partners have defected from the platform. Moncler, for instance, announced that it was moving off the Yoox platform earlier this year, and now works with Farfetch on certain e-commerce elements, including its business in China.

But it’s not just online where Farfetch is developing tech. To make good on its end-to-end approach, it has also launched tools for retailers to use in-store. Chanel, which doesn’t have e-commerce, has partnered with Farfetch to improve its clienteling capabilities. The new venture in China will likely make other fashion brands and groups more reliant on the company as well.

“The deal is a powerful industry nod to the benefit of Farfetch’s platform and luxury community,” Cowen analyst Oliver Chen said in a recent note. “This unites industry leaders that are choosing to invest alongside Farfetch rather than build their own capabilities.”

While Farfetch has long struggled to define its brand with consumers, it says its most recent marketing campaign and site refresh have been well received with consumers and brand partners alike. It is now positioned, intentionally or not, as the upscale everything store — in some ways, the Amazon of luxury, even as Amazon itself makes a real attempt to capture more of that market. For Farfetch, being everything to every luxury consumer makes sense with younger generations whose tastes frequently change, and newness is an imperative. Farfetch’s long-tail assortment gives customers more parts with which to compose their anything-but-static identities.

Maintaining Its Lead

But while Farfetch may be best placed out of its peers to succeed at the moment, there are challenges ahead.

Although the pandemic inspired a slew of new customers to join the platform, it’s still spending a lot of money on acquisition: $46 million in this most recent quarter alone.

Customer acquisition costs were the lowest they’ve been in two years — just 6.9 percent of gross merchandise value — with many new users coming in through the NGG brands that now operate via Farfetch. But in order to keep benefiting from NGG machine, the group will need to keep producing hits. Neves said that NGG’s platform model allows it to easily bring on existing labels and develop original ones for continual newness, noting that the partnership with Farfetch has increased NGG’s online direct-to-consumer sales significantly. Pre-deal, they were 2 percent of NGG’s business; just a year later, the channel makes up 20 percent of revenue.

The group has also not yet proven that its white-label technology is a long-term solution for brands and retailers, who may in the end decide it makes more sense to build that technology in house or use a more universal white-label solution, such as Shopify.

“The manifestation of the new luxury store – the connected experience and how Farfetch can deliver unique physical experiences to brands and boutiques – this remains to be seen,” Chen said.

The latest version of its much-heralded Store of the Future, physical store/clienteling technology that was being developed exclusively with Chanel, will be rolled out to other brands in 2021. Neves said that Chanel has seen good results and, as proof of its success, has begun using the technology at more of its stores.

Finally, Farfetch cannot ignore the threat of Amazon. The e-commerce giant’s Luxury offering has been lacklustre thus far, but the company has plenty of resources at its disposal to solve the platform’s problems. With its global distribution network, Amazon may also end up being a more convenient option for some customers.

“Amazon is a formidable competitor,” Neves said. “It’s all about convenience, it’s all about value, it’s all about, in a way, killing physical retail. That is the complete antithesis of luxury. As a consumer, I love Amazon, I am a Prime subscriber, but it’s not a brand where I would buy something that is driven by emotion.”

Where Farfetch certainly has a strong advantage is in its China venture — a market inaccessible to Amazon — and also in its upper hand with luxury brands and retailers alike, which have sold on the platform for years and generally have its trust. It’s also in a position to lead the industry’s inevitable consolidation: a potential partnership with YNAP, for instance, is now on investors' minds.

“It would be an incredible coup, if Farfetch and YNAP merged,” said Luca Solca, an analyst at Bernstein, noting that the benefits include lower competition, greater skill, “editorial skills and curation capabilities that Farfetch currently misses” and combined client lists.

As for Neves, he said, “There’s nothing to report,” only noting that Richemont and its stable of brands “was a big get. We want to be the platform for the entire industry.”

FT : US surge in coronavirus cases darkens outlook for economy

US surge in coronavirus cases darkens outlook for economy
Biden team calls for urgent action on stimulus as health situation worsens

The US economy is facing an accelerating surge in coronavirus cases and harsh new restrictions on business activity without the cushion of meaningful fiscal support, raising fears of a blow to the recovery.

Even though equity markets have rallied strongly on advances in the development of a vaccine, the deteriorating health situation across the country is presenting an imminent threat to the US economy as the winter months approach.

The US has already recorded more than 1m new coronavirus cases so far this month, with the healthcare system in parts of the country now under severe strain. Lockdown measures have been introduced in a number of states and major cities in an attempt to contain the spread.

Whereas the White House and Congress agreed to $3tn in government spending measures to counter the initial pandemic lockdowns in March and April, they failed to reach a deal on further stimulus before the election and have made little if any progress towards an agreement since the vote.

Joe Biden, the US president-elect, has called for a compromise even before he takes office in January given the urgency of the situation, a position that was reinforced on Sunday by Ron Klain, his pick for White House chief of staff.

“There’s a lot of things that are going to have to wait until Joe Biden is president, but this is not one of them,” he told NBC on Sunday, adding that direct help to people and state and local governments to prevent job losses was crucial. “This is a national crisis, it needs bipartisan action now.”

Even Donald Trump, the outgoing president who has waxed and waned over the issue of new coronavirus economic relief for months, said in a tweet over the weekend that he wanted an agreement.

Still, big differences remain between congressional Democrats who are pushing for a broader and more costly package worth more than $2tn, and Republican lawmakers who think the economy needs far less. This has economists worried that no significant agreement will be reached, leaving households and businesses to fend for themselves even as new lockdowns are introduced and workers are furloughed or dismissed.

“From a health perspective and as a result from an economic perspective we’re really not in a good place, there’s really no way to sugarcoat it. We have essentially a fairly long winter ahead of us,” said Gregory Daco, chief US economist at Oxford Economics.

“The vaccine news, the pent-up savings, the possibility of coming back to a new normal in six months’ time are all very encouraging, and a source of optimism, but they do nothing for us today.”

Michael Feroli, a senior US economist at JPMorgan Chase, said if fiscal support ended up being slower or smaller than expected this time, compared with the aid delivered during the first virus wave, it would “definitely present some considerable risks to growth” at a time when momentum was already waning.

JPMorgan Chase data on its own credit and debit card spending released last week showed a notable dip in November, particularly in states suffering big rises in coronavirus cases.

“I wouldn’t say the evidence right now is conclusive that we are entering a double dip. But there are certainly some warning signs out there,” Mr Feroli said.

Nancy Pelosi, the Democratic speaker of the House of Representatives, on Friday said a stimulus package was a top priority for the next few weeks in Congress, during the “lame duck” session before new lawmakers and Mr Biden take office. “This is a red alert, all hands on deck,” she told reporters.

But Mitch McConnell, the Kentucky Republican and Senate majority leader, does not feel the same level of urgency and no serious negotiations have resumed on Capitol Hill.

The lack of fiscal support in the world’s largest economy as the coronavirus crisis worsens could raise pressure on the Federal Reserve to take further action, even though it has already delivered huge amounts of monetary support and lacks the tools to help struggling workers and companies directly.

The Fed refrained from any new policy moves in early November at its policy meeting following the presidential election, but discussed changes to its asset purchase programme that could “deliver more accommodation if it turns out to be appropriate”, as Jay Powell, the Fed chairman, described it in his press conference.

The prospects for such a step is likely to be a key focus when the Federal Open Market Committee next meets in mid-December, but some strategists said the US central bank may be forced to move even sooner.

Steve Englander, head of North America Macro Strategy at Standard Chartered, wrote in a note that the Fed could increase its asset purchases and try to expand its credit facilities for struggling businesses as its next move.

>>> On Saturday Pres Trump tweets more allegations about a "rigged" election and

On Saturday Pres Trump tweets more allegations about a "rigged" election and urges on his supporters; "I concede nothing"; says Giuliani will spearhead the legal effort; Criticizes Georgia's Republican Governor and Sec of State over how their recount is being conducted

- Trump tweets: "There is tremendous evidence of wide spread voter fraud in that there is irrefutable proof that our Republican poll watchers and observers were not allowed to be present in poll counting rooms. Michigan, Pennsylvania, Georgia and others. Unconstitutional!"

"I look forward to Mayor Giuliani spearheading the legal effort to defend OUR RIGHT to FREE and FAIR ELECTIONS! Rudy Giuliani, Joseph diGenova, Victoria Toensing, Sidney Powell, and Jenna Ellis, a truly great team, added to our other wonderful lawyers and representatives!"

"He only won in the eyes of the FAKE NEWS MEDIA. I concede NOTHING! We have a long way to go. This was a RIGGED ELECTION!"

"People are not going to stand for having this Election stolen from them by a privately owned Radical Left company, Dominion, and many other reasons!" "Hundreds of thousands of people showing their support in D.C. They will not stand for a Rigged and Corrupt Election!"

"@FoxNews and the Fake News Networks aren’t showing these massive gatherings. Instead they have their reporters standing in almost empty streets. We now have SUPPRESSION BY THE PRESS. MAGA!"

"The Consent Decree signed by the Georgia Secretary of State, with the approval of Governor @BrianKempGA, at the urging of @staceyabrams, makes it impossible to check & match signatures on ballots and envelopes, etc. They knew they were going to cheat. Must expose real signatures!"

"The hand recount taking place in Georgia is a waste of time. They are not showing the matching signatures. Call off the recount until they allow the MATCH. Don’t let the Radical Left Dems STEAL THE ELECTION!"