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India Targets Black Market
Indian PM Narendra Modi announced that the Rs 1000 and Rs 500 notes would become invalid as of midnight last night.
Editor’s Remarks: Modi is stepping up his reforms to improve India’s finances and is establishing a foundation to continue growth. Modi will hope that demonetising the high-value denominations will help cut down on black money, fake currency and other illegal activities. This is a great step in bringing billions of unaccounted money back into the economy and hurt militants that counterfeit the currency. India needs to improve its basic finances and public spending to continue to attract foreign investors.
What to watch: USD/INR, EUR/INR, GBP/INR, IMF, Indian Debt
December Appeal Ruling For Brexit
The British Supreme Court ruling on the appeal by the government on the decision that Parliament should vote to trigger Article 50 will be announced in time for the New Year.
Editor’s Remarks: The Supreme Court released a statement saying that all of its 11 justices would sit on the panel and it will make a decision by the New Year. The exact dates for the appeal will be from the 5th of December to the 8th. However, as predicted, Scotland’s Nicola Sturgeon announced that her government would attempt to intervene in the case. This could make things increasingly difficult for Theresa May to adhere to her strict deadline of triggering Article 50 in March. Theresa May cannot afford further embarrassment in light of her already precarious position.
What to watch: GBP/USD, EUR/GBP, Nicola Sturgeon, Scottish Independence Referendum, Article 50 Appeal
American Apparel Closing
All of the UK and European American Apparel stores will close as the company continues to wind down operations and sell its assets.
Editor’s Remarks: The retailer was rescued from bankruptcy when bondholders took the company over and began the process of selling it. However, the unknown buyer will not purchase the UK and European stores. The stores will most likely close by the New Year. American Apparel highlights the difficulties being endured around the retail industry, with M&S announcing clothing store closures as well yesterday. More attention will come into focus on securities backed by real estate debts and mortgages in the coming future.
What to watch: American Apparel, Kohl’s, Macy’s, M&S
London Land Price Falls
Residential land prices have fallen by their highest value across central London since 2008.
Editor’s Remarks: London real estate has suffered terribly since the referendum earlier this summer. Office land fell by almost 6% since the referendum while residential area decreased by over 10% in the past year. The overall amount of development has been relatively consistent. The fall could potentially be much more severe as investors are currently merely cautious relating to the ambiguity of Brexit. The real implications of Brexit on the real estate market are nowhere near revealing themselves.
What to watch: GBP/USD, EUR/GBP, London Land Prices, Brexit Negotiations
Tesla To Ramp Up
Tesla Motors has bought Grohmann Engineering, a manufacturing specialist, to improve the production capacity and efficiency of its California plant.
Editor’s Remarks: Tesla’s Bond-car-lookalike, the Model 3, has reached the next phase of its march to become mass produced. Tesla is hoping that the addition will allow it to become a viable player in the automobile industry where its competitors have decades of experience. Tech firms involved in the race to produce self-driving cars have slowly fallen out after realising the difficulty in making an automobile. Tesla obviously recognises this fact but it is another thing altogether to overcome it.
What to watch: Tesla, Grohmann Engineering, Nissan, Elon Musk, GM