The Morning Call – U.S. Markets surge over night to push to new highs.

Asian Markets

Asian shares and the dollar pared their modest gains, with risk appetites supported by advances on Wall Street but capped by concern as investors awaited the U.S. Senate’s vote on U.S. tax reform legislation.

U.S. Markets

U.S. stocks jumped to new record highs, fueled by increased optimism regarding the feasibility of a tax overhaul.

Today’s News

China’s factory activity expanded at the weakest pace in five months in November as subdued growth in new orders and a substantial fall in employment coincided with a decline in business sentiment, survey results from IHS Markit showed Friday. The Caixin Purchasing Managers’ Index dropped to 50.8 in November from 51.0 in October. The expected reading was 50.9. Although the index remained above the crucial 50.0 value, the index dipped to its lowest level for five months to signal only a marginal upturn in operating conditions.

Jeremy Corbyn hit back at investment bank Morgan Stanley, telling the firm it is right to regard him as a threat. The UK Labour leader’s comments come after the US-owned bank released a report warning that the prospect of his party taking power was a bigger threat to the UK economy than Brexit. In a video message released on social media in response, Corbyn pledged that a Labour government would reform banking regulation to rein in the “speculators and gamblers” who crashed the economy in 2008.

Indivior has received approval from the US drug regulator to market its once-monthly injectable treatment for moderate to severe opioid use disorder, which analysts believe could lift company sales north of $1bn. The US Food and Drug Administration has approved what Indivior has branded Sublocate, an extended-release form of buprenorphine, meaning it is expected to be available to patients in the US in the first quarter of 2018. “Sublocade is a scientific innovation that represents a new treatment option to help patients attain more illicit opioid-free weeks during their treatment program,” said the company’s chief executive officer, Shaun Thaxter.

Barclays has transferred shares of Barclays Africa Group Limited shares to complete a sale agreed in June and confirm its 14.9% stake in its former subsidiary. The transfer, which is expected to occur on 5 December 2017, will increase Barclays’ pro-forma CET1 ratio as at 30 September by 12 basis points. From an accounting perspective, Barclays’ results had already reflected the 14.9% ownership level since the sale of a 33.7% stake on 1 June and contribution of a further 1.5% of BAGL’s ordinary shares to a Black Economic Empowerment scheme in the third quarter.

Hikma Pharmaceuticals’ venture capital arm, Hikma International Ventures and Development, has participated in a $20.5m series C round of financing for Prognos alongside Merck Global Health Innovation Fund, Safeguard Scientifics, Guardian Health, Cigna, and other investors. Prognos leverages clinical diagnostic data and Artificial Intelligence (AI) to develop advanced analytics solutions for the payer, diagnostics, and life science markets. The Prognos Registry of 13 billion clinical records for 180 million patients in over 50 therapeutic areas enables earlier identification of patients who can benefit from enhanced treatment decision-making, risk management, and quality.

Gold rose after OPEC and other major producers agreed to extend their production curbs in a widely expected move aimed at ending a persistent glut in global supplies.

Oil Prices steadied near a 3-1/2 week low touched in the previous session, as investors opted for riskier assets amid a surge in U.S. equities and expectations of an interest rate hike by the Federal Reserve later this month.