DailyBriefers

China’s foreign ministry has confirmed Reuters exclusive report that Premier Li Qiang will lead the country’s delegation at this week’s G20 summit in India, in the place of President Xi Jinping. Xi has participated in all previous G20 meetings of world leaders during his decade in power and his absence scuppers the prospects for meeting with U.S. President Joe Biden in New Delhi amid frayed ties between the superpowers. 

Reuters was first to report U.S. Commerce Secretary Gina Raimondo discussed concerns about restrictions on chipmakers Intel and Micron with Chinese Commerce Minister Wang Wentao in Beijing on Monday. The pair also discussed China’s restrictions on gallium and germanium exports in the conversation. Shares of Micron rose 3% and Intel was up 1.4% in early trading on the news. 

China’s blue-chip CSI 300 Index jumped roughly 3% on Monday after the country confirmed a Reuters scoop on slashing stamp duty on stock trading. Reuters exclusively reported that Chinese authorities were planning to cut stamp duty on stock trading by as much as 50% in a further attempt to revitalize the country’s struggling stock market. The proposed cut comes after China’s leaders vowed in late July to reinvigorate the world’s second-largest stock market, which has been reeling as the country’s economic recovery flags and a debt crisis in the property market deepens. China’s fiscal revenue totalled 20.37 trillion yuan ($3.02 trillion) last year, with 276 billion yuan or 1.35% contributed by stamp duty on securities transactions, official data showed. The finance ministry, in a brief statement on Sunday, said it was reducing the 0.1% duty on stock trades by 50% “in order to invigorate the capital market and boost investor confidence.” 

Reuters was first to report that Hostess Brands, the maker of Twinkies snack cakes, is exploring a sale after fielding takeover interest from major snack food makers. Hostess became an acquisition target after it raised prices on some of its products to boost revenue, fueling investor concerns over its prospects. General Mills Inc, Mondelez International, PepsiCo Inc and Hershey Co are among the companies that have shown an interest in acquiring Hostess. Hostess shares rose as much as 30% on the news. 

Reuters exclusively reported that Novo Nordisk has hired Thermo Fisher as its second contract manufacturer for its hugely popular weight-loss drug Wegovy. Novo Chief Financial Officer Karsten Munk Knudsen told Reuters in May the company had signed up a second contract manufacturer in the United States, but the identity of the company has not previously been reported. This was followed by another exclusive that Catalent’s plant in Bloomington, Indiana, will fill injection pens for Novo Nordisk’s  Wegovy as part of the two companies’ expanded supply agreement. Catalent’s shares briefly jumped on the news. 

Reuters was first to report India is working on a new electric vehicle policy that would slash import taxes for automakers that commit to some local manufacturing, following a proposal by Tesla which is considering entering the domestic market. The policy being considered could allow automakers to import fully-built EVs into India at a reduced tax as low as 15%, compared to the current 100% that applies to many EVs. Shares of potential domestic competitors of Tesla like India’s Tata Motors fell nearly 3% on the Reuters report, while rival Mahindra and Mahindra dropped over 2%, dragging the benchmark auto index to an intra-day low with losses of 1.1%. 

Reuters exclusively reported that China’s central bank has asked domestic banks to limit outflows into foreign bonds, the latest in the raft of steps authorities are taking to contain yuan weakness. 

Reuters was first to report when Turkey’s central bank shocked markets by hiking its interest rate by 750 basis points to 25%, three times the size of the expected tightening. The lira currency immediately rallied more than 7%, bank stocks jumped 8% and dollar bonds gained more than 2 cents. The move was Turkey’s biggest policy surprise in years and marked President Tayyip Erdogan’s clearest step yet toward a more orthodox approach after years of currency crashes and soaring inflation.

Reuters exclusively reported that the world’s second-biggest fashion retailer H&M (HMb.ST) has decided to gradually stop sourcing from Myanmar, as reports of labor abuses in garment factories in the country increase.

Reuters exclusively reported that Bridgewater Associates’ flagship fund had a bearish view on U.S. stocks in late July just as a rally that saw the benchmark S&P 500 soar this year was about to lose steam, according to a presentation to investors seen by Reuters.