U.S. market futures were all up Monday before the opening bell as markets continue to react to positive vaccine news. Oxford-AstraZeneca has announced that their vaccine is 90% effective, following similar announcements by Pfizer and Moderna regarding their own vaccines. The Regeneron drug used by President Trump when he had COVID also received emergency use authorization over the weekend. While Markets are trending up, there continue to be clear winners and losers.
Markets:
- In Asia, the Shanghai Composite was up 1.1%, Hang Seng up 0.1%, and Nikkei down 0.4%.
- In Europe, the FTSE 100 is down 0.3%, CAC 40 up 0.4% and Dax up 0.3% as of 9am ET.
- In the U.S., Dow futures are up 0.5%, S&P 500 futures up 0.5% and Nasdaq futures up 0.3% as of 9am ET.
Oxford-AstraZeneca Vaccine:
- Unlike other vaccines, testing for this vaccine was assessed with different dosing plans.
- When trial participants received half a dose followed by a full dose a month later, there was a 90% effectiveness. When participants received two full doses a month apart, there was a 62% effectiveness.
- Over 23,000 people participated in the trials, which took place in the U.K. and Brazil.
- Unlike Pfizer's vaccine, which requires expensive deep-freezing for storage, this vaccine can be stored, transported, and used with standard refrigerators for up to six months.
Regeneron:
- The treatment used by President Trump when he was diagnosed with COVID-19 is not a vaccine but a monoclonal antibody treatment. It acts as immune cells and helps fight infections.
- The treatment aims explicitly to eliminate the effect of COVID. It has been shown to help minimize lung damage in non-human primates.
- The drug has been proven to reduce hospital visits by those with mild or moderate symptoms.
Market Winners:
- International Airlines Group jumped 40% on the Pfizer news, and an additional 12.2% following the Moderna news.
- Empire State Realty Trust, which holds Manhattan real estate, jumped 37% on the vaccine news.
- iShares Global REIT ETF representing international real estate is up 13% MTD following the three vaccine announcements.
Market Losers:
- Amazon shares fell 5.1% following the Pfizer announcement.
- Zoom shares fell by 17.4% following the Pfizer announcement.
- Netflix fell 8.6% after the Pfizer announcement.
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In January, millions of American's could be facing eviction as an emergency CDC order expires. The order had prohibited new and ongoing evictions from being enforced. The reasoning behind it was that forcing individuals to move could increase the transmission of COVID-19. The order is currently facing numerous legal challenges, and with an expected change in administration, the order is unlikely to be renewed in early January.
More:
- The order explicitly allows tenants to avoid eviction if they earn less than $100,000, have had a significant decrease in income this year, and have made efforts to seek rent assistance and pay rent.
- The order does not protect eviction in cases involving criminal activity, health or safety concerns, and property damage.
- Lawsuits have been filed on numerous grounds, including irreparable damage to landlords, illegal infringement of state rights by a federal agency, and property rights infringement.
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Do you think the eviction ban should be extended past January?
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Online shopping marketplace Wish has filed to go public. The company has about 100 million monthly active users across 100 countries, and 500,000 merchants listing around 150 million items. At least 18 e-commerce companies have gone public this year, compared to 38 during the entire 2019.
Wish valuation over the years:
- 2012 - $68M
- 2014 - $1.2B
- 2015 - $3.52B
- 2016 - $4B
- 2017 - $8B
- 2019 - $11.2B
More:
- The company reported a $1.7B revenue in the first three quarters of 2020, compared to $1.3B for the same period in 2019. The company’s loss increased from $5M to $176M during Jan-Sept 2020.
- In its filing, the company noted that the global e-commerce market would grow from $3.4T in 2019 to $6.3T in 2024, and the mobile e-commerce market would contribute to 71% of global e-commerce to 63% in 2019. Wish’s mobile app accounts for around 90% of activity and purchases.
- In Nov. 2018, Marketplace Pulse reported that around 94% of Wish items come from China, 45 from the U.S., and the U.K., Canada, and India together contribute 0.7%. Wish said that the agreement between U.S. Postal Service and China Post could affect the company. It added that it is making efforts to diversify its merchant base, and the merchants in North America, Latin America, and Europe have grown by more than 230% since 2019.
- The company has raised $2.1B in funding from investors including Keith Rabois and Naval Ravikant. The company has set a goal to raise $1B in IPO, at a valuation of around $25B - $30B.
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Holiday Sales: For the first time in years, many retailers will remain closed on Thanksgiving Day. According to a survey by Deloitte, around 61% of consumers are planning to shop online, and 57% of consumers are anxious about shopping in stores due to the pandemic. Though online sales seem to have increased, it contributes to only around 16% of total retail sales.
More:
- eMarketer reported that online sales during Black Friday would increase by 39% YoY to $10B, and Cyber Monday sales will increase by 38% YoY to $12.9B.
- However, WSJ reported that more shoppers are visiting malls to shop ahead of Black Friday crowds and potential lockdowns. Retailers, including Macy, have lobbied local officials to remain open, as clothing retailers could be forced to close as they are deemed "non-essential."
- Shopify has assigned a team of 1,000 people to advise its merchants on growing e-commerce business between the Black Friday and Cyber Monday period, including providing insights on boosting sales with Pinterest and TikTok integration. Shopify's major customers include Johnson & Johnson, Chipotle, and Heinz.
- Best Buy announced it has partnered with Instacart to offer same-day delivery across the U.S. Demand for same-day delivery has surged during the pandemic, leading to food and grocery delivery services expanding their offerings. For example, DoorDash has partnered with Macy's to offer same-day delivery during the holiday season. Instacart has partnered with Target, Sephora, and Bed Bath & Beyond ahead of a $30B IPO in 2021.
- Walmart announced earlier this year it will hire 20,000 seasonal workers while Amazon hired 100,000 workers across U.S. and Canada. Target and Kohl's will add 130,000 and 90,000, respectively.
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Last week, Nvidia launched the beta version of its web-based cloud gaming service "GeForce Now" to iOS devices through Safari. The gaming platform will bring back Fortnite to iPhones, which was banned by Apple. Launching through a web app also means that Apple would not take its revenue cut of 15% or 30%.
More:
- The company first launched its GeForce Now in Chromebook in August, and currently around 10% of gameplay comes through the web.
- After banning Fortnite, Apple said that its App Store policies prohibit cloud-gaming services from streaming games. It later said that the games would be approved for streaming if they were submitted individually for review. Microsoft and Facebook publicly expressed their dissatisfaction with app-store policies.
- In September, Amazon launched its cloud-gaming service Luna on Apple's platforms as a Progressive Web App, a home screen icon that can be launched through a web browser.
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Quick Hits:
- An algorithm that analyzes Twitter comments and invests in crypto is beating the S&P.*
- Universal Basic Income becomes more likely as European governments see benefits during the pandemic.
- Calls to boycott Netflix are strong in India following the release of a series that shows a Muslim man kissing a Hindu woman in a Hindu temple.
- Snapchat unveils Spotlight, it's TikTok copycat.
- The European Central Bank announced last week that as of 2022, bank balance sheets would need to account for environmental risks such as floods and storms.
* This is sponsored content
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Liam Gill is an experienced entrepreneur passionate about business strategy and law. In business, Liam is best known for founding Fumarii Technologies, a top 20 ranked cloud computing service (Yahoo Finance!). Academically, he is working towards a Canadian Masters of Law having completed a UK Law Degree and Masters of Management. He aims to support other entrepreneurs with free legal templates through Law4Startups.com and is happy to chat on Twitter or Linkedin. Reach out!
Nataraajan Arulolie is a Business Researcher at Inside and is keen on telling stories through data.
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Editor
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Alexander Huls is a Toronto-based journalist. He has contributed articles about true crime and pop culture to The New York Times, Men's Health, Popular Mechanics, and other fine publications. Follow him on Twitter @alxhuls.
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