Market Talk – Monday, Sept. 14

ASIA:

Byte Dance has abandoned the sale of TikTok in the United States on Sunday in pursuit of a partnership with Oracle Corp it hopes will spare it a US ban while appeasing the Chinese government. ByteDance had been in talks to divest TikTok’s US business to either Oracle or a consortium led by Microsoft Corp after US President Donald Trump ordered the sale last month and threatened to shut down the popular short-video app in the United States if it was not sold. Under the proposed deal, Oracle will be ByteDance’s technology partner and will assume management of TikTok’s US user data, the sources said. Oracle is also negotiating taking a stake in the TikTok US assets, the sources added.

The Indian government may declare policy changes to comply with Indian companies that list overseas will have to later launch on a domestic bourse, Reuters reported. India said in March it would allow local firms to list abroad to better access foreign capital for growth directly, but the rules have yet to be decided. Currently, only certain types of securities such as depository receipts are able to be listed in foreign markets, and only after the companies go public in India. But in recent weeks Indian officials told global investors and companies in meetings they were considering mandating a secondary listing for local companies on Indian bourses after they list abroad, sources said. The time period under consideration for such a requirement ranges from 6 months to 3 years, as per sources familiar with the matter.

India said on Sunday it was considering granting an emergency authorization for a COVID-19 vaccine, particularly for the elderly and people in high-risk workplaces, as the country’s number of reported infections passed 4.75 million. India’s Health Ministry said “If there is a consensus, we may go ahead with it, especially in the case of senior citizens and people working in high-risk settings.” The Health Ministry also said the timeline on Phase III trials could be shortened by giving emergency authorization, but stressed no corners would be cut in clinical trials and that a vaccine would only be made available when the government could ensure its safety and efficacy.

Soft Bank will sell its chip designer company- Arm to Nvidia for USD 40 billion. The deal will include USD 21.5 billion in Nvidia stock and USD 12 billion in cash, including USD 2 billion payable at signing. Nvidia will also issue $1.5 billion in equity to Arm employees.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 152.81 points or 0.65% to 23,559.30
  • Shanghai increased 18.47 points or 0.57% to 3,278.81
  • Hang Seng increased 136.97 points or 0.56% to 24,640.28
  • ASX 200 increased 40.10 points or 0.68% to 5,899.50
  • Kospi increased 31.22 points or 1.30% to 2,427.91
  • SENSEX decreased 97.92 points or -0.25% to 38,756.63
  • Nifty50 decreased 24.4 points or -0.21% to 11,440.05
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