Wolf Money(world market review for 29March-4april)

Market Summary 29 March -04 April 2021

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+ Nonfarm payrolls increased by 916,000, unemployment rate fell to 6%

+ US manufacturing activity soared to highest level in >37 years in March, driven by new orders, ISM index at 64.7

+ Biden unveiled around US$2 trillion plan for improving nation’s infrastructure and shifting to greener energy next 8 years 

- US will take 15 years of corporate tax increases to fully offset the US$2 trillion infrastructure spending 

- US first-time jobless claims benefits totaled 719,000 last wk vs 658,000 previous wk

+ US private employers hired most workers in 6-mth in March

+ Fed policymakers’ optimistic US economic outlook as more ppl vaccinated, govt aid gets to households and businesses 

+ US expected to unveil 2nd part spending plan, a “care economy” in next coming weeks 

+ S&P 500 crosses 4000 for the first time after Biden unveils US$2.25 trillion spending plan for infrastructure  

+ US home prices jumping in Jan, the most since 2006, rates for 30-year mortgages plunged to record low 2.65% in Jan 

- US pending home sales fall most since April on low inventory 

+ US offices expecting workers back from Sept 

- Archegos, US$10bn single-family office defaulted on margin calls by its banks, may cause global banks to lose over US$6bn 

+ US SPACs raised US$100bn in first 3 mths, equivalent to >2/3 of the haul from all US listings 

+ Coinbase, largest US cryptocurrency exchange, received approval from SEC to direct listing on Nasdaq April 14

- Goldman, Morgan Stanley limit losses with fast sale of Archegos Assets: WSJ

+ Goldman Sachs is close to offering first investment vehicles for Bitcoin and other digital assets to clients 

+ Citigroup jumped 6 spots to become busiest IPO arranger globally in Q1, thanks in part to its status as no. 1 SPAC underwriter 

+ Apple to build battery-based renewable energy storage facility in California 

+ Microsoft won US$2.19bn contract with US Army to supply augmented reality headsets 

+ Google reached licensing deals >600 news outlets around the world 

+ US-China both business representatives expect closer ties to jointly develop EV auto industry  

+ Tesla delivered more cars than expected in Q1 at 184,800 units buoyed by sales in China 

+ Visa settled 1st payment transaction with Crypto, first major payment platform to accept transactions directly in stablecoin 

+ PayPal rolled out new service feature let users pay with bitcoin, ethereum and more 

+ Southwest Airlines orders 100 Boeing 737 MAX planes as it plans to retire older jets 

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+ China exploring options to establish new stock exchange to lure overseas-listed firms 

+ China’s official PMI hit 3-mth high of 51.9 in March, economy boosted by strong domestic consumption and strong foreign demand for Chinese-made goods  

+ China’s crude oil imports from Iran could reach close to 1m bpd in March 

+ China approved 2 state-owned chemical giants, Sinochem and ChemChina merger  

+ PBOC drafting policies to introduce more financial support for country’s neutrality goals

+ China’s central bank tests virtual yuan by allowing select HK residents to sue it to make payment across borders 

+ China’s major internet companies registered 29% YoY increase in business revenue in first 2 mths 2021

+ China’s AUM of public offering of funds reach US$3.32 trillion end Feb 

+ Shanghai Stock Exchange to tighten scrutiny over corporate bond issuance 

+ Chinese firms total 13 listed in US have conducted secondary listings worth combined US$36bn in HK past 16 mths 

- China bond defaults by property developers quadrupled to ¥26.6bn in 2020, as of mid-March had already defaulted ¥8.7bn 

+ Huawei’s net profit rose 3.2% to US$9.9bn, revenue up 3.8% YoY to US$136.7bn in 2020, sale in China up >15% 

+ XIaomi and Oppo expected to overtake Huawei in UK smartphone market 

+ Beido system gives certification to Xiaomi, Apple, Oppo and Vivo for the first time 

- JD fintech arm withdrew its application for an IPO on Shanghai STAR market without reason given 

+ Great Wall Motor plans to roll out first hydrogen-powered SUV this year 

+ BYD’s net income surged 162% to US$644m in 2020, estimated Q1 profit will rise up to 166%

- China giant electronics retailer Gome reported record loss last year affected by Covid-19 

+ HK Monetary Authority and China Central Bank conduct technical tests on cross-border use of digital yuan 

- HKEX suspended 50 listed companies from trading after failed to report earnings by 31 Mar deadline 

+ HK former leader Leung signaled housing as next big issue to tackle 

+ TSMC unveiled plan to invest US$100bn over next years to increase capacity 

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+ Global stocks shoot past all-time high of US$106 trillion 

+ Global energy billionaires got US$51bn richer from 2021 oil rally in Q1

+ Global EV market set to grow at 10.6% compound annual growth rate between 2021 and 2027 to about US$237bn 

- OPEC+ lowered 2021 oil demand growth forecast by 300,000 bpd, expects oil demand to grow by 5.6m bpd in 2021

+ Robots could steal jobs of around 1/5 oil and gas workers worldwide next 10 years 

+ BOJ governor said central bank will continue to buy ETFs as needed with a close eye on market developments: Asahi  

- Nomura flagged possible US$2bn loss at US subsidiary liked to sales of holdings by Archegos Capital 

- MUFG Securities arm will book US$270m, Mizuho Financial faces about US$90m in potential losses tied to Archegos Capital  

+ Japan chip maker Kioxia said to focus on IPO in next few months 

+ Hitachi to buy US software company GlobalLogic for US$9.6bn, biggest outbound acquisition US hi-tech firm on record 

+ ANA trials Covid digital health passport at Tokyo airport 

+ Russia’s first prototype digital ruble could be just several months away 

+ Russia to invest up to US$100m to develop vessel for Arctic survey 

+ Russia’s Arctic sea route draws growing global investor interest in the development: Ministry 

+ Russia exports of agricultural products rose 22.3% YoY as of March 21, amounting to <US$6nn 

+ Canada home prices jumped 25% in Feb YoY with average resale price hitting record C$678,091 

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+ Eurozone factory activity reached record 24-year high, PMI jumped to 62.5 in March from Feb 57.9

+ EU disbursed €13bn to 6 EU members states to help in public expenditure to preserve jobs 

+ ECB could launch digital currency within 4 years: Christine Lagarde 

- EU has lost 6m jobs due to pandemic, half of them were young workers  

- Europe’s crop losses driven by heat waves and drought tripled on last 50 years 

+ German factory activity grew at fastest pace on record in March, PMI reached 66.6

+ Germany’s federal bank successfully tested a blockchain-based settlement interface for electronic securities 

+ German Handelsblatt commentary: China poses more of an opportunity to Europe than a threat 

- Deutsche Bank sold around US$4bn of holdings sized of Archegos Capital in private deal, one of the buyer was Marshall Wace  

- Commerzbank will post restructuring charge of €470m for job reductions 

+ UK semicon Arm says its latest chip isn’t subjects to US export restrictions, could be made available to Huawei 

- Deliveroo stock plunged as much as 31% in its London public debut 

- UK trade minister told G7 to get tough on China over “pernicious practice” that undermine int’l trading system  

- France cuts growth to 5% forecast from 6% as country goes into 3rd lockdown  

- Frances sees biggest jump in Covid-19 intensive care patients in mths 

- Credit Suisse outlook cut to negative by S&P as bonds tumble 

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+ Australia’s March home prices surge at fastest pace in 3 decades 

+ Asian bourses are considering rule changes to allow listing of SPACs

+ India considers >US$1bn in cash incentives for every chip maker setting up in the country 

- India’s economic output this year likely to remain below 2019 level: UN report  

+ South Korea will roll out blockchain-protected digital ‘vaccine passport’ to immunized citizens 

+ Saudi announced plans to pump investments worth US$3.2 trillion into national economy by 2030 

+ Egypt’s Suez Canal shipping traffic resumed after stranded ship refloated, to offer discounts for ships left stranded  

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+ Indonesia’s manufacturing PMI hits 10-year high in March stood at 53.2 

- Indonesia facing acute shortage of Covid-19 vaccines as supplies drying up fast 

- Bank Indonesia’s nation’s sovereign debt has surpassed global fund for the first time 

+ Bank of Thailand will begin testing use of retail digital currency for general public in Q2 next year

- Thai Songkran festival spending expected to dive by 17% to 113bn bath, lowest in 9 years  

- Thailand has lost 1.45m tourism jobs since Covid-19 broke out 

+ Malaysia economy growth will likely be in range of 6-7.5% in 2021: Central Bank 

- Malaysia has paid Singapore S$102.8m in compensation after HSR termination 

+ Malaysia to allow private hospital to join its Covid-19 vaccination to speed up vaccine drive 

+ Malaysia >279,000 individuals completed both doses of Covid-19 vaccination 

+ Sg can play be base for Chinese firms to expand into SEA, to support opening up its financial and capital markets: FM  

+ Sg total value stock rose 7% in March, led by blue-chip gains 

+ SGX launched consultation on SPACs with proposals to minimize dilution and better align interest 

+ Sg analysts are flagging higher odds of cooling measures by govt as private home prices rise for 4th straight qtr 

+ Sg startups raised total US$5.5bn in 2020 despite pandemic vs US$8.5bn in 2019 

+ Sg Nassim Rd GCB sets record price of S$4005 psf on land area, transacted at S$128.8m   

+ Sg private home prices rose 2.9% in Q1, rising for a 4th straight qtr 

+ HDB resale prices up 8% YoY in Q1, with S$53m flats sold 

- Sg hotel occupancy average 41.7% in Feb compared with 43.8% in Jan

+ Sg new code of conduct for fairer lease between landlords and retail tenants headed for legislation  

+ Sg bank lending extended growth for 4th straight mth in Feb, lifted by continued growth in housing and construction loans 

+ DBS to double down on its presence in China and India, grow focus on digital assets 

+ Sg banks to cease issuance of SOR derivatives andSibor-linked financial products by Sept 

+ iFast launched stocks and ETFs brokerage services in Malaysia 

Contribution by Derek@valueinvestments chat group. Thank you.

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