Wolf Money(World Market Review 17-23 May 2021)

National Gallery Singapore (Former Supreme Court)

Market Summary 17-23 May 2021

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+ Fed hinted could reconsider easy policy if economy continues rapid improvement 

+ US jobless claims down 34,000 to 444,000 last week, new low since pandemic hit in March 20

+ US leading economic index at 113.3 in April, recovered to pre-pandemic level: Conference Board 

- US cut price tag of infrastructure package to US$1.7 trillion from US$2.3 trillion, a counter proposal to Republicans 

- US Treasury proposed 15% global minimum corporate tax rate 

- US companies are bearing most of the cost burden from elevated tariffs imposed by Trump: Moody’s 

+ US tax enforcement plan would double staffing over next decade, require banks, payment services, cryptocurrency exchanges to provide information on account flows 

- US Treasury proposed tax on cryptocurrency transfers 

+ SEC approved proposal by Nasdaq to allow companies to raise capital through direct listings 

+ US officials signaled intention to hold trade talks over tariffs with China 

+ US announced 2-week delay of investment ban on some Chinese companies it claims to be linked to Chinese military 

- US FDI in China dropped to US$8.7bn in 2020, down nearly 30% from previous year to the lowest since 2004

+ US stimulus package has helped boost China’s toy exports as demand for home entertainment products heats up 

+ US fuel crisis eases after cyberattack, but many petrol pumps still remain dry 

- US homebuilding fell more than expected in April, likely pulled down by soaring lumber prices, building permits rise modestly 

- US home sales fell 3rd straight mth in April as shortage of properties drove prices to record high 

- Manhattan lost its crown as top choice for foreign investors buying US property, plunged 79% in 12 mths through March 

+ US could produce up to 1bn vaccine doses by year end, to send additional 20m vaccine doses abroad 

+ Tesla is exploring opportunities for establishing a presence in Russia: Elon Musk 

+ Must Tweets hes supports Crypto in battle against fiat currencies 

- Tesla car runs into policemen, killing one in East China 

+ AT&T, Discovery combined media brands in US$43bn deal, will be in competition with Netflix, Amazon, Apple, Disney, Comcast 

- WeWork reported quarterly loss of US$2.06bn ahead of public listing 

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+ China’s retail sales up 17.7% in April YoY as economy gaining strength 

+ China’s industrial output up 9.8% in April YoY as factory activities continued to pick up 

- China-US investment drops to lowest level since 2009 on pandemic and political tensions

+ China should let yuan strengthen to offset imported price rises: central bank official 

+ China expected to be main driver of global economic growth: UNCTAD

+ China approved first batch of 9 real estate investment trusts,  estimated ¥30bn raised for infrastructure project 

- China stressed would crack down on Bitcoin mining and trading during high-level meeting 

- China financial institutions and payment platforms banned from cryptocurrency-related business

+ China kept its benchmark lending rate for corporate and household loans unchanged for 13th straight mth 

+ China will ensure supply of major commodities and curb unreasonable hikes on prices: State Council 

+ China new home prices in 70 large and medium-sized cities edging up 5.8% in April 

+ Chinese regulators moved to stabilize market of ferrous metals, including iron ore and deformed steel bar

+ China’s corn imports may hit record high of >30m tons in 2021, US to benefit the most

+ China’s total personal investable assets will reach US$41.65 trillion by end 2021

- China 18 listed companies stock prices plunged after allegations of involving in manipulation activities 

+ China to extend tariff exemption for 70 US products through end of the year 

- China warns EU is hurting itself by freezing investment deal 

+ China to offer US$3bn to developing countries for Covid-19 response 

+ China’s GDP expected to be 9% this year and 5.8% for 2022: Morgan Stanley

+ Yuan bonds total amount owned by overseas institutions reached 3.22 trillion yuan (>US$500bn) as of end April 

+ China overtaken US to become world’s top recipient of investment flows, total 14,533 new foreign enterprises were established in first 4 mths   

+ China eyes intelligent manufacturing, to bolster the sector amid risks 

- China imposes ¥2.28bn in fines on financial institutions in 2020 

+ China’s Mars rover starts roaming the red planet 

+ China firms are cutting soybean meal content in animal feed 

+ Xi and Putin officially launched the construction of new reactors at 2 nuclear power plants in China 

+ Huawei aims to attract more partners in the smart home sector for its Harmony OS 

+ Huawei planning to sell cars in 200 experience stores by end July, to expand to >1000 stores by year-end 

+ Tencent reported 65% YoY rise in Q1 profit to US$7.42bn  

- Tencent Music told by Chinese regulators to pay a fine, give up exclusive music rights and sell some music assets 

+ Alibaba makes first investment in Vietnam, buys stake in retail chain Masan Gp worth US$400m 

+ JD Logistics to raise US$3.4bn in HK IPO 

- Taiwan’s Covid-19 cases at near peak as ppl told to stay home 

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- Japan’s economy shrank more than expected in Q1 at annualized 5.1% following an 11.6% jump in previous qtr 

+ Japan’s exports grew most in decade as trade-led recovery perks up 

- Japan expanded state of emergency to Okinawa, approved 2 more vaccines 

+ Tokyo Olympic “still a go”: IOC official 

- Japan’s consumer prices in April down for 9th straight mth 

- Japan’s sluggish vaccination rollout may impact economic recovery: BOJ chief 

+ Russia to launch prototype of digital ruble in late 2021: Central Bank 

+ Russia’s all 3 production lines of Arctic LNG2 project may be launched in 2023-2035, ahead of schedule: Novatek 

+ Russia issued euro-dominated obligations worth €1.5bn, first int’l bond sale of 2021 

+ Russia to imposed export tax up to 10% on sales of several sorts of wood to rein in price growth  

+ Rosneft to launch of Rospan Int’l gas project in Yamal in Arctic region, expected to become gas production hub in the region 

+ Russia agricultural products and foodstuffs to China increased by 17.6% in Q1 

- Brazil facing severe drought has farmers worried not enough water to get though dry season; world biggest exporter of coffee 

- Argentina govt limiting beef exports for 30 days to tame runaway inflation nearing 50% annually 

+ World trade’s recovery from Covid-19 crisis hit record high in Q1, up by 10% YoY, 4% QoQ: UNCTAD

- IMF: world could end Covid-19 pandemic by vaccination 40% of ppl by end 2021 and 60% in 2022, at cost of US$50bn  

+ Gold and Silver prices jumped to highest levels in >3 mths as the latest dip in US Treasury yields 

- Colonial Pipeline hackers reportedly received total US$90m in bitcoin ransom payments before shutting down 

- BItcoin sees 2nd daily crash for the week after China vows to clam down on mining and trading 

+ Oil demand set to surge as travel picks up in Europe, not only in gasoline and diesel, but also jet fuel 

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+ EU’s 27 member states to allow vaccinated travellers into the bloc quarantine-free and others deemed safe in the continent 

- Euro zone economy declined by 0.6% in Q1, confirmed technical recession, GDP contracted in all larger countries except France  

- EU parliament: China must remove its sanctions on EU politicians, diplomats to save EU investment pact 

+ Europe’s traffic on highways in biggest cities been rising in recent weeks as economies reopen  

+ EU-US seek to resolve aircraft subsidy dispute by July 

- ECB: property bubbles, corporate debt among Europe’s top risks

+ EU trade ministers will discuss dispute over steel and aluminum tariffs with US 

+ Germany producer prices rose by 5.2% YoY in April, biggest increase in near decade 

+ Germany’s exports to US and China surged 60% and 16.3% respectively YoY in April  

- Germany to ban British travellers amid fears over Indian variant 

+ BMW raise earnings forecast as it expects antitrust fine from EU to be much lower than anticipated 2 years ago

+ UK private sector reported fastest growth >2 decades, numbers in May hitting highest points since HIS Markets began 1998

- UK inflation rate more than doubles in April to 1.5% due to higher energy and clothing prices 

+ UK unemployment rate fell to 4.8% in Q1 as lockdown eases 

+ French economy should grow by at least 5.5% in 2021: Bank of France governor 

+ France to reopen Eiffel Tower this summer 

- Italy’s sovereign debt reached new all-time high of >€2.65 trillion: Bank of Italy

+ Lamborghini set to invest >€15bn to electrify its range of high-performance cars over next 3 years 

+ Sweden’s housing market soared at fastest pace ever to another record 

- Ireland to impose stamp duty charge of 10% on multiple purchase of 10 or more residential properties 

+ Israel and Hamas agree to cease-fire to end bloody 11-day war 

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- Australia roughly 20% table grape exports to China have been delayed in clearing customs at destination ports 

+ India’s foreign exchange reserves rose by US$563m to US$590bn as at 14 May, nearing the all-time high mark: Bank of India 

+ India to begin Sputnik V production in Aug, to produce 850m doses 

- South Korea exported US$132.5bn of goods to China in 2020, almost double the US$74bn worth of exports to US 

- Samsung might be forced by US to restrict exports to China, but complete decoupling unlikely: Global Times 

+ Saudi eases travel ban for vaccinated citizens 

+ Iran planning an oil export boost of crude oil as talks on nuclear deal with US continue to progress

+ Qatar Investment Authority mulls injecting London HSBC HQ into Singapore Reit 

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+ Jokowi has notified House of Representatives of his intent to introduce another tax amnesty program 

+ Indonesia booked trade surplus for 12 consecutive mths at US$2.19bn in April 

+ Gojek, Tokopeida completed merger to form GoTo, created US$18bn tech giant, to go public by end 2021 

- Thailand economy shrank 2.6% in Q19

- Thailand plans to borrow additional B700bn (S$29.6bn) for Covid-19 relief 

- Thailand’s official jobless rate hit new peak in Q1 at 2% of labour force, jobless had remained below 1% for > a decade 

+ Vietnam wooing Singapore investors to play bigger role in transformation of Da Nang City beyond tourist hotspot 

+ Philippines food company Monde Nissin expected to raise up to US$1.2bn for its IPO, biggest on record in the country 

+ Philippines, China hold friendly dialogue on South China Sea 

- Malaysia’s CPI rose 4.7% YoY in April, highest since 2018

- Malaysia to impose tighter MCO enforcement as daily Covid-19 cases crossing 6000 mark 

- Malaysia nationwide ICU occupancy rate now at 91%: Health DG

+ Malaysia taking steps to help oil and gas companies’ transition to a low-carbon economy

+ Malaysia and China are exploring new areas of common interest to strengthen bilateral collaboration: PM

+ Sg NODX grew by 6% YoY in April, 5th consecutive mth to record growth 

+ Sg to review support for vulnerable firms amid new wave of Covid-19 infections that curbed business activity 

- SG-HK air travel bubble bursts again, spiked y rising Cvid-19 cases in Sg  

+ Sg considers giving more ppl at least one Coid-19 vaccine dose 

+ Sg grants additional S$27m support for Covid-19 driver relief fund 

+ Cluny Hill bungalow under construction sold for record S$4291 psf or S$63.7m with 14,843 sqft land area 

+ Sg 999-year leasehold Samsung Hub 9th floor in Raffles Place transacted at record S$4050 psf for S$53.1m  

- World Economic Forum 2021 due to take place in Singapore has been cancelled

- Shangri-La dialogue in Sg cancelled due to Covid-19 concerns 

- SIA reported biggest annual net loss of S$4.3bn for financial year ended March 31, revenue plunged 76%  

Contribution by Derek@valueinvestments chat group. Thank you.

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