As US stocks rallied on Wednesday, one area of the market deemed sensitive to Joe Biden’s election chances absolutely took off.
Shares of renewable energy companies expected to benefit from Mr Biden’s energy policy plans surged, continuing a trend of outperforming the broader market as the Democrat’s chances to win steadily improve.
The $2 billion Invesco Solar ETF climbed 5.4 per cent, extending a six-day rally to 20 per cent. The S&P 500 is up just 2.5 per cent in that span. Options traders have piled into the exchange-traded fund, with a record 17,000 calls changing hands on Tuesday.
NextEra Energy, the largest renewable supplier, closed with a higher market valuation than Exxon Mobil.
Day traders have also jumped on the bandwagon. A list of the top 10 “buys” among online traders tracked by Fidelity Investments on Wednesday showed that three of them are renewable energy companies – Sunworks, Ocean Power Technologies and Westwater Resources.
Another stock in that ranking is American Resources, which supplies materials for infrastructure – an industry also seen as a beneficiary of a potential fiscal boost.
The latest buying frenzy followed Mr Biden’s first debate with President Donald Trump last week. Since then, the contender’s lead has widened in recent polls, an edge that’s viewed as portending a Democratic sweep of Congress as well as a potential increase in infrastructure and green energy spending.
“The infrastructure and green trade is a very ‘blue wave’ concept,” said Yousef Abbasi, global market strategist at StoneX, referring to a situation where the Democrats take control of both the White House and Congress. “The trade is very much indicating that someone believes that we’ll get the push for a Democratic Senate.”
Bets on a victory by Mr Biden in the November 3 election and a Democratic sweep of Congress have quickly become a scenario that investors can’t afford to ignore. While some analysts say the party’s proposed tax hikes may hurt corporate profits, others are focusing on the potential benefit from their agenda, such as a boost in fiscal stimulus.
The trade is very much indicating that someone believes that we'll get the push for a Democratic Senate
Mr Biden’s chances of winning rose to a record 82.8 per cent from 82.3 per cent on October 6, according to the latest run of poll aggregator FiveThirtyEight’s election forecasting model. A CNN poll released on Tuesday suggests last week’s debate might have been pivotal. By 57 per cent to 26 per cent, registered voters who watched it said Mr Biden did a better job than President Trump.
“As investors digest a greater likelihood of a clean-energy-friendly Biden administration, demand for solar and other alternative energy has increased,” said Todd Rosenbluth, head of ETF and mutual fund research for CFRA Research “TAN is the largest solar ETF and has benefited from growing liquidity.”
The rush to buy building and solar shares is echoing the market froth that underpinned the summer rally, when day traders chased high-flying stocks such as Apple and Tesla, with many wagering in the option markets for quick profits. Now, similar exuberance showed up in the Invesco Solar ETF, with the cost of call options rising to a two-year high relative to puts, according to three-month implied volatility data compiled by Bloomberg.
To Dennis DeBusschere, head of portfolio strategy at Evercore ISI, optimism in the solar ETF may have gone too far. The odds for a Democratic sweep scenario now stand at 61 per cent, according to PredictIt.
“The Dem sweep is not a slam dunk,” DeBusschere wrote in a note to clients. “Some type of options strategy to take advantage of the solar ETF crashing back to Earth might be interesting.”
The Global X YieldCo & Renewable Energy Income ETF, ticker YLCO, rose for a 10th straight day – the longest winning stretch on record. Shares of American Resources jumped about 60 per cent on Wednesday, while Sunworks and Ocean Power each surged more than 36 per cent.
SAUDI RESULTS
Team Team Pederson (-40), Team Kyriacou (-39), Team De Roey (-39), Team Mehmet (-37), Team Pace (-36), Team Dimmock (-33)
Individual E. Pederson (-14), S. Kyriacou (-12), A van Dam (-12), L. Galmes (-12), C. Hull (-9), E. Givens (-8),
G. Hall (-8), Ursula Wikstrom (-7), Johanna Gustavsson (-7)
More Expo 2020 Dubai pavilions:
Bharatanatyam
A ancient classical dance from the southern Indian state of Tamil Nadu. Intricate footwork and expressions are used to denote spiritual stories and ideas.
MATCH INFO
Quarter-finals
Saturday (all times UAE)
England v Australia, 11.15am
New Zealand v Ireland, 2.15pm
Sunday
Wales v France, 11.15am
Japan v South Africa, 2.15pm
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Company profile
Name: Fruitful Day
Founders: Marie-Christine Luijckx, Lyla Dalal AlRawi, Lindsey Fournie
Based: Dubai, UAE
Founded: 2015
Number of employees: 30
Sector: F&B
Funding so far: Dh3 million
Future funding plans: None at present
Future markets: Saudi Arabia, potentially Kuwait and other GCC countries
The specs
Engine: 1.5-litre 4-cyl turbo
Power: 194hp at 5,600rpm
Torque: 275Nm from 2,000-4,000rpm
Transmission: 6-speed auto
Price: from Dh155,000
On sale: now
Moral education needed in a 'rapidly changing world'
Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.
Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.
"Moral education touches on every aspect and subject that children engage in.
"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.
"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."
More from Neighbourhood Watch:
Sly%20Cooper%20and%20the%20Thievius%20Raccoonus
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Sucker%20Punch%20Productions%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Sony%20Computer%20Entertainment%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%202%20to%205%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A
Chatham House Rule
A mark of Chatham House’s influence 100 years on since its founding, was Moscow’s formal declaration last month that it was an “undesirable
organisation”.
The depth of knowledge and academics that it drew on
following the Ukraine invasion had broadcast Mr Putin’s chicanery.
The institute is more used to accommodating world leaders,
with Nelson Mandela, Margaret Thatcher among those helping it provide
authoritative commentary on world events.
Chatham House was formally founded as the Royal Institute of
International Affairs following the peace conferences of World War One. Its
founder, Lionel Curtis, wanted a more scientific examination of international affairs
with a transparent exchange of information and ideas.
That arena of debate and analysis was enhanced by the “Chatham
House Rule” states that the contents of any meeting can be discussed outside Chatham
House but no mention can be made identifying individuals who commented.
This has enabled some candid exchanges on difficult subjects
allowing a greater degree of free speech from high-ranking figures.
These meetings are highly valued, so much so that
ambassadors reported them in secret diplomatic cables that – when they were
revealed in the Wikileaks reporting – were thus found to have broken the rule. However,
most speeches are held on the record.
Its research and debate has offered fresh ideas to
policymakers enabling them to more coherently address troubling issues from climate
change to health and food security.
Women & Power: A Manifesto
Mary Beard
Profile Books and London Review of Books
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Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
Bio
Born in Dibba, Sharjah in 1972.
He is the eldest among 11 brothers and sisters.
He was educated in Sharjah schools and is a graduate of UAE University in Al Ain.
He has written poetry for 30 years and has had work published in local newspapers.
He likes all kinds of adventure movies that relate to his work.
His dream is a safe and preserved environment for all humankind.
His favourite book is The Quran, and 'Maze of Innovation and Creativity', written by his brother.
Company%20Profile
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Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
More on animal trafficking
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
