LBLV Australia forces Facebook, Google to pay for news 2020/08/12

LBLV provides an overview of economic news.

Website LBLV is available at - https://lblv.com/

The main economic news for Tuesday, December 8:


0:00 Australia forces Facebook, Google to pay for news
0:54 Japan announces new economic stimulus, GDP growth
1:46 JD Health stocks double on Asian trading debut
2:39 European tech startups close to record investments

1. Australia forces Facebook, Google to pay for news
On Tuesday, Australia completed plans under which Facebook Inc and Google will pay their media for news content. This is the first step in the world aimed at protecting independent journalism, which is strongly opposed by Internet giants. Under laws to be passed by parliament this week, major technology firms must negotiate with local publishers and broadcasters about how much they pay for content that appears on their platforms. The law is the strongest test of market power for technology giants around the world, and it follows a three-year investigation and consultation process that eventually escalates into a public brawl in August, when U.S. companies warned that they could prevent them from offering their services in Australia.

2. Japan announces new economic stimulus, GDP growth
On Tuesday, Japan announced a new economic stimulus package of $708 billion. The package designed to accelerate the country's recovery from a deep coronavirus recession, while at the same time investing in new areas of growth such as green and digital innovation. The Japanese economy showed stronger-than-expected growth in the third quarter as exports and consumer spending recovered. The country’s GDP increased by 5.3% quarter-on-quarter, according to revised data. At an annual rate, the world's third-largest economy grew 22.9% in July-September, stronger than preliminary estimates (21.4%) and better than projected at 21.5%. Meanwhile, consumer spending in October grew 1.9% year on year, showing growth for the first time in 13 months.

3. JD Health stocks double on Asian trading debut
On Tuesday, JD Health International Inc. made its Hong Kong debut on the Hong Kong Stock Exchange 65% higher than the issue price as investors are betting on the growth prospects of the medical business fuelled by the COVID-19 pandemic. JD Health is a subsidiary of e-commerce giant JD.com Inc, specializing in online medical consultations and drug sales. It was among many platforms offering advice on COVID-19 symptoms. The company's initial public offering prospectus (IPO) showed a 36% annual growth in the number of active users at the end of June, reaching 72.5 million. JD Health sold its shares in the IPO for HK$70.58 each. However, they reached the level of $HK116.80, as a result the company's valuation exceeded $40 billion.

4. European tech startups close to record investments
European investment in technology start-ups has bounced back from the spring shock caused by the coronavirus outbreak and plans to reach a record level this year, predicts a study published on Tuesday. According to Venture Company Atomico, technology venture support in September returned to a monthly record of $5 billion, setting a record $41 billion for 2020. With 115 startups supported by venture capital estimated at more than $1 billion, the total value of technology firms established in Europe since 2000 has grown to nearly $1 trillion. Streaming music service Spotify and payment company Adyen lead the list with a stock market value north of $50 billion, placing them among the top 10 high-tech firms in Europe.