FT News Briefing Stimulus uncertainty, Conoco-Concho deal, China’s semiconductor push
Oct 20, 2020
US stocks are on edge as a stimulus deadline approaches and COVID-19 cases rise. ConocoPhillips is making a bold move by acquiring Concho Resources for $9.7 billion, betting on a post-pandemic oil revival. Meanwhile, Chinese companies are diving headfirst into the semiconductor sector, responding to the country's heavy import reliance and U.S. tech restrictions. This shift hints at a major transformation in global tech dynamics, raising questions about the future of chip manufacturing amid intensifying competition.
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Market Volatility
- US stocks fell over rising COVID cases and stimulus uncertainty.
- Pelosi set a Tuesday deadline for a deal to pass before the election.
Conoco-Concho Deal
- ConocoPhillips is buying Concho Resources, betting on oil's future despite the pandemic.
- This is the biggest independent oil and gas deal, focusing on the Permian Basin.
China's Chip Dependence
- China relies heavily on semiconductor imports, but excels in chip design due to its engineering talent.
- US restrictions hinder China, especially Huawei, pushing them towards self-sufficiency.