Wolf Money(world market review 14-20 Jun 2021)

 

Latiff Mohidin Malaysian 1941-

Pago-Pago 69(metamorphosis) circa 1969

Collection of the National Gallery Singapore 

Market Summary 14-20 Jun 2021

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- Fed could hike interest rates earlier twice in 2023, committee started to discuss options ending bond purchase program

- US weekly jobless claims hit 412,000 last week, 37,000 more than the previous week 

+ US Conference Board said its index economic indicators (LEI) rose 1.3% to 114.5 in May

+ US import prices rose 1.1% in May after gaining 0.8% in April, 7th straight monthly gain lifted YoY increase to 11.3%

+ Fed expects inflation to climb to 3.4% in 2021, a full percentage point higher than its March forecast 

+ US and EU agreed 5-year truce to end their trade dispute over aircraft subsidies for Boeing and Airbus lasted 17 years 

+ Biden will meet US financial regulators next week for an update on financial systems and institutions 

- US senators proposed 25% tax credit for investments in semiconductor manufacturing 

+ US dollar hit 2-mth high against a basket of currencies on Fed rate-hike projection 

+ US home buying and refinancing boom boosted mortgage lending in 2020

- US won’t agree to any special treatment for China or other countries that would weaken global minimum tax plan: Yellen

+ US yield spread between junk-related corporate bonds and US Treasuries tightened to its lowest level since 2007

+ US healthcare industry prepares for Obamacare expansion after Supreme Court decision to preserve the plan 

- US may ban Chinese surveillance cameras and specified telecommunications, citing security risks 

+ US EIG consortium closes US$12.4bn or 49% of Aramco pipelines deal 

+ Goldman Sachs reiterated its forecast Brent crude to hit US$80 per barrel this summer as demand recovers 

+ Boeing newest 737MAX made its first test flight

+ Chevron returning offshore workers restarts output halted by US storm 

- US safety agency have opened 30 investigations into Tesla crashes involving 10 deaths since 2016

- Google’s adtech business set to face EU probe by end year

+ PayPal will lift merchant costs for is branded payment products as increasingly competitive digitals sector 

+ Ford said its second-quarter operating profit will exceed expectations due to lower costs and higher car prices 

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+ China’s Covid-19 vaccination drive hits 1 billion mark 

+ China to implement policy of reform and opening-up in revitalizing Northeast China: Premier Li

+ China’s outbound direct investment into countries involved in BRI expanding 13.8% YoY in first 5mth to US$7.43bn 

+ China’s retail sales expand 12.4% in May YoY as recovery gains momentum  

+ China’s industrial output rose 8.8% in May YoY, below 9.2% forecast by economists in Bloomberg survey

+ China Jan-May fiscal revenues rose 24.2% YoY, fiscal expenditures up 3.6%  

+ China considers lifting all childbirth restrictions by 2025

+ China shipments of 5G phones topped 108m in first 5 mths, up by 135% YoY 

- China’s pandemic-related restrictions imposed in Guangdong expected to slow down exports near terms 

- China’s Yantian port hit by delays due to pandemic worse than those in Suez Canal incidents

+ China releasing national reserves of copper, aluminum and zinc to stabilize market 

+ China’s new shadow banking rules banned banks and wealth management firms from using money raised by cash WMPs to invest in stocks, convertible bonds, ABS and low-rated corporate bonds 

- China’s outbound investment declined in first 5 mths by 5.3% YoY

- China Photovoltaic Industry Association calling local solar power developers not to hoard raw materials 

- China’s investment in Europe hit a 10-year low in 2020, citing EU’s tighter scrutiny and pandemic 

+ China’s corn imports surged nearly 4 times in May YoY signal record high demand this year 

+ China to issue US$3.1bn in subsidies to farmers to cope with rising costs of production materials 

- China prices of excavators have been rising significantly due to higher raw material costs 

+ Zhejiang Province considers building Shanghai-Hangzhou-Ningbo Bay zone 

+ China Cotton industry launched program to counter Western crackdown on Xinjiang cotton exports  

+ Chinese travelers made >89m trips during 3-day Dragon Boat Festival holidays 

- Chinese 3-day Dragon Boat festival box office sinks to nearly 5-year low to US$72.81m 

+ Alibaba’s chip unit announced technological breakthroughs and achieved world-class performance with Xuantie CPU

+ ByteDance’s annual revenue last year doubled to US$34.3bn 

- Cathay Pacific expects lower H1 loss due to cost-saving measures and strong demand for cargo flights 

+ Taiwan govt will allow Foxconn and TSMC to negotiate for vaccines 

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+ Japan business confidence among large manufacturers likely improved in H2 due to global demand recovery: Reuters poll

+ Japan consumer prices rise for the first time in 14 mths in May 

+ Japanese businesses eye resumption of flights with China with no quarantine to boost business 

+ BOJ to launch new scheme for fighting climate change, keeps policy steady 

+ Ruble strengthens to 11-mth high against US dollar

+ Russia growth this year has been raised to 5.5% from 3.3% to 3.7% in H2: Fitch  

+ Russia’s agricultural exports to global market will continue and could reach US$30bn by end this year  

+ Russia merchandise exports to EU amounted to €42.5bn in Jan-April, ranked 3rd in EU’s largest exporters 

+ Russia to further develop transit potential under BRI: President of TransContainer 

+ Canada regulator lift capital of country’s largest lenders must hold to guard against risk to record 2.5% of risk-weighted assets 

- Canada extending ban on non-essential travel with US and the rest of the world until Jul 21  

- Brazil farming industry hit by worst drought in a century, accounts for 30% of GDP 

- OPEC told to expect limited US oil output growth will likely remain limited in 2021 despite rising prices: sources 

+ G7 announced infrastructure plan to rival BRI by China 

- Lumber futures for July down 41% from record of US$1711 in early May, declined 14 of past 16 trading days 

+ Gaming industry expected to generate US$175.8bn revenue in 2021, slight decrease from last year

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+ European Commission raises €20bn through 10-year bond to finance 27-nation bloc’s pandemic recovery 

- EU’s Covid progress is being threatened by Delta variant as it begins to spread across Europe 

+ EU lifts ban on 8 banks barred from bond sales 

- Germany wants to exit its stake in flagship carrier Lufthansa soonest: Transport Minister

+ Lufthansa to allow passengers to use new digital Covid-19 vaccination certificate at check-in for their flights 

+ Audi sets 2026 end date for combustion engine cars

- UK airlines and holiday firms planning a “day of action” to ramp up pressure on govt to ease travel restrictions 

+ UK agrees broad terms of post-Brexit trade agreement with Australia 

- UK supermarket gp Morrisons rejected US$7.6bn takeover proposal from US porvate equity firm CD&R

+ Rolls-Royce outlines plans for net zero emissions by 2050 

+ AstraZeneca ordered to deliver 80.2m vaccine doses to EU by Sept 27

+ France’s central bank rejected think tank’s proposal ECB make direct cash transfers to households to meet inflation target  

+ Ireland looking to reach compromise over global taxation with US on 15% global minimum tax push 

+ Greece benefits from healthy relationship with China under BRI cooperation: diplomat 

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- Australia takes wine dispute with China to WTO

+ India’s fuel demand surged by 13% in first 2 weeks of June, first monthly rise since March 

+ India’s exports rose 46% to US$14bn in 1st 2 weeks of June, led by engineering, gems and jewelry, petroleum products 

- India plans to expedite investigation into alleged anti-competitive practices by Amazon and Walmart 

+ Indian payment gp Paytm plans to raise up to US$3bn in listing 

+ South Korea’s largest carrier SK Telecom plans US$5bn splurge to become next SoftBank 

- Emirates airlines reported US$5.5bn annual loss, first in 30 years 

+ Iran said reached a deal with US on lifting on Trump-era economic sanctions 

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+ Indonesia aims to phase out combustion engines by 2050, to sell only EVs

+ Indonesia aims to tax rich more to finance large pandemic deficit

- Garuda’s shares halted after it missed a key payment of US$500m Islamic bond  

- Thailand’s reopening of resort island Phuket in July to vaccinated visitors met lukewarm response 

+ Thailand, Malaysia central banks launched cross-border QR payment linkage 

- Philippines slipped 7 spots to rank 52 out of 64 countries listed in 2021 World Competitiveness Report: IMD

+ Cambodia calling on Sweden’s Ikea and Volvo to take advantage of investment opportunities in Cambodia 

+ Laos to have Mitsubishi to invest in 600-megawatt SEA largest wind farm, will supply electricity to Vietnam 

+ Malaysia used car online platform Carsome plans US IPO that would valued at >US$1bn 

+ Malaysia to move into 2nd phase if average Covid-19 daily cases drop below 4000: Health Minister 

- Malaysia court granted AirAsia X 9-mth extension on restraining order, prevents creditors from filing legal proceedings 

+ Sg reviewing the timing and scope of 2nd stage of economy’s reopening: Minister 

- Sg lost its top spot as world’s most competitive economy to 5th place, remains as Asia’s top performing economy 

+ Sg 2021 GDP tipped to grow 6.5%, led by manufacturing and exports: MAS survey 

+ Sg Nodx expands 8.8% in May, the 6th consecutive mth of growth 

+ Sg >50% of population has received at least 1 Covid-19 shot, first in SEA nation to cross this milestone  

+ MAS further extends US$60bn swap arrangement with US Fed through Dec 

- Sg population growth over last decade slowed to 1.1% vs 2.55 annual rates in the decade before 

+ Sg household incomes rose 1.9% per year for the last decade: Census data 

+ Sg total employment, excluding domestic workers, rose by 12,000 in first 3 mths, after 4 consecutive qtrs decline 

- Sg online car sales startup Carro gets US$360m from a consortium led by SoftBank Gp 

Contribution by Derek@valueinvestments chat group. Thank you.

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