Wolf Money(world market review 21-27 June 2021)

 

Georgette Chen Singaporean 1906-1993

The Temple (Peking) circa 1945-1949

Gift of the artist’s estate

Collection of the National Gallery Singapore 

Market Summary 21-27 Jun 2021

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- US risks a default and new financial crisis as soon as Aug if fail to suspend or raise federal borrowing limit: Yellen

- US high inflation may last longer than anticipated: Fed officials 

- US inflation likely to remain elevated for up to 2-4 years: BofA

-US lawmakers strike US$1.2 trillion infrastructure deal 

+ US June manufacturing index at record high amid easing pandemic restrictions 

+ US consumer confidence at 85.5 pts in June, up by 3.1% compared to May’s survey 

+ US consumer spending paused in May as shortages hurt motor vehicle purchases 

+ US companies borrowed US$8.1bn for capital investment in May, 20%  higher than last year: ELFA survey

+ S&P 500, Nasdaq hit all-time highs, lifted by Nike and banks   

+ US all 23 large banks have passed its stress tests: Fed 

+ US biggest banks, led by JPMorgan, BofA expected to pay out US$142bn in capital to shareholders

+ US initial jobless claims down by 7000 to 411,000 last week 

+ US sales of new single-family homes declined 5.9% to 1 year low in May while prices continued to hit record high 

+ US plans to spend billions on charging networks that could encourage more ppl to buy EVs 

+ US Airports to receive US$8bn in govt grants to help pay bills as travel recovers 

- US Int’l Trade Commission said tyre industry hurt by Korea, Taiwan and Thailand  

- US to block some imports of solar products from Xinjiang region 

- FDA adds warning about rare heart inflammation to Pfizer, Moderna Covid-19 vaccines 

- CDC says >4100 have been hospitalized or died with Covid-19 after vaccine

- Trump’s trade tariffs led to losses in billions: Fed research 

+ Sotheby to accept cryptocurrency 1st time as payment for a rare diamond could fetch up to US$15m  at auction in HK

+ Intel CEO predicted shortage of chip to hit bottom out in H2 before starting to improve 

+ GlobalFoundries; chipmaker, plans US$6bn expansion in US, Germany, Singapore 

+ Miami offers its clean nuclear power to bitcoin miners, aims to become crypto capital of the world 

+ Visa to buy European open banking platform Tink for US$2.15bn 

+ US survey shows more stimulus money invested, day trading widespread 

+ Microsoft showed Window 11, first major OS revamp in 6 years, to challenge Apple’s business model 

+ Microsoft rises to join Apple to reach US$2 trillion market value 

- Tesla to recall 285,000 China-made Model 3 and Model Y due to faulty software 

- McAfee founder found dead by suicide in Spanish jail

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+ China’s June PPI likely to rise 10%, adding pressure on downstream consumers 

+ China’s foreign currency deposits in banks jumped >US$260bn, surpassed US$1 trillion 1st time in May 

+ China CNPC announced 2 new massive oil & gas discoveries in Northwest of up to 1bn tone-large oil-gas field 

- China’s central bank urged banks, financial institutions to thoroughly screen clients’ accounts for cryptocrrency transactions 

- China probe into supplies and prices of commodities to rein recent sharp rally in prices and curb speculation

+ China’s central bank conducted ¥30bn of reverse repos to maintain stable liquidity in banking system 

+ Chinese firms new listings in US hit record high in H1, up 94% from same period 2020, despite tightened scrutiny 

- China tech listing drop sharply amid crack down on sector, drive down value of listing globally by 60%: FT 

- China field complaint with WTO over Australia’s anti-dumping and anti-subsidy measures on 3 products 

+ China to auction first batch of reserves total 100,000 tons non-ferrous metals early next mth: Reuters 

- China’s private tutors firms are world’s biggest stock losers this year amid govt crackdown easing students’ workloads and costs 

+ China will create millionaires over 3 times faster than US in 5 years: Credit Suisse 

- China’s biggest maker of cryptocurrency mining machines, Bitmain suspended sales of its products in spot market 

+ China looks to send astronauts to Mars by 2033

+ China replaced UAE as India’s 2nd biggest export destination in fiscal year 2021, rising 27% to >US$21bn 

+ S&P Global ratings affirmed China’s ratings at A+/A- with stable outlook, predicts 8.3% growth 

+ China Tourism Gp Duty Free Corp plans HK secondary listing that could raise up to US$10bn, would be 2nd biggest after Alibaba 

- China may open up to more foreign cotton after Xinjiang ban

+ Evergrande Gp, debt-ridden developer set to pay off US$1.45bn bonds on time next week

+ Didi targets to raise US$4bn in NY listing 

+ Xpeng seeks US$1.97bn in HK listing 

+ Huawei’s sales revenue totaled US$25.7bn for Q1, in line with expectations 

+ Li Ka-shing and Victor Li raised their stakes in CK Asset again

- Taiwan FDI plunged 41% in first 5 mths to US$1.99bn 

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+ IMF said board discussed a proposed US$650bn expansion of its emergency reserves, process to be completed in August  

+ Global growth at 5.9% for 2021, stocks to outperform other asset classes: Credit Suisse 

+ G7 to endorse global minimum corporate tax next mth in Venice 

- WHO urges fully vaccinated ppl to continue to wear masks as delta Covid variant spreads 

- OPEC+ reportedly discuss increasing oil output to meet rising global demand in upcoming meeting next week

+ Oil prices climbed for 5th week to highest since Oct 2018

+ Japan ratified RCEP trade deal involving China, South Korea and ASEAN, the 3rd member to do so  

- Japan could declare new state of emergency: Minister 

- Toshiba shareholders voted outs board chairman n one other director after found colluded with govt in suppressing foreign investor interests 

+ Panasonic sold entire stake in Tesla for US$3.61bn, to raise cash for growth investment 

+ Russia may adopt temporary export tariffs on metals to protect domestic market from price spikes 

- Canada court rejects Huawei CFO’s requests for publication ban on new evidence in US extradition case 

+ El Salvador to make bitcoin legal tender in Sept

+ West African regional bloc 15 members adopted new plan to launch single currency in 2027

+ Egypt signed non-disclosure deal over canal blockage compensation 

- South Africa cryptocurrency investors may have lost up to US$3.6bn after the founders of Bitcoin Exchange disappeared 

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+ ECB could lift restriction on bank dividend payments in coming mths 

+ Euro zone business growth accelerated fastest pace in 15 years this mth, incoming economic indicators point to strong recovery: ECB

- EU to extend economic sanctions on Russia by 6 mths 

- EU launched new investigation into Google to determine whether breaching EU antitrust regulations

- EU urged US to ease Covid-19 travel restrictions on Europeans 

+ Germany economy would grow by 1.3% in Q2 and 3.6% in Q3, bouncing back from pandemic: Ifo economist  

+ Germany frontrunner to succeed Merkel says EU best served by co-operation with China 

+ Germany to phase out coal by 2038 

- Germany anti-monopoly launched investigation into Apple on abusing its dominant position in market 

+ UK begins negotiations to join trans-Pacific trade deal 

+ UK to publish plans to allow fully vaccinated ppl to travel unrestricted 

+ BOE kept size of its stimulus program unchanged and left interest rate at time low of 0.1%  

- UK’s regulator started formal investigation into Amazon, Google on possible fake reviews  

+ Richard Branson’s Virgin Galactic said received approval from US aviation safety regulator to fly ppl to space 

+ French business confidence index rose to 113 in June, the highest level in 14 years

- Swedish court upheld previous decision to keep Huawei away from its 5G network, citing security reasons 

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- Australia New South Wales entered 2-week lockdown as it battles Delta outbreak 

- NZ immediately pause trans-Tasman travel bubble with Australia follows update public health advice  

- India reportedly looking to tax crypto purchases from overseas exchanges 

+ India richest Ambani plans to invest US$10bn over 3 years in green energy 

+ South Korea stocks end at record high, post 6th straight weekly gain 

+ Iran started pumping oil at giant new reservoir at offshore oilfield in Gulf 

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+ Indonesia targets to administer 2m doses of Covid-19 vaccine per day in August 

- Indonesia targets those earnings >US$348,000 annual income with 35% tax rate 

+ Indonesia to set up own bullion bank to boost domestic gold trade as soon as 2024: Trade Minister 

+ Indonesia accelerates development of telecoms infrastructure in rural areas to support growth of digital economy

- Garuda mulling over ways to extricate from debt crisis, one of favoured options involves creating a new national carrier  

+ Indonesia approved operational license for new budget airline Super Air Jet 

- Thailand’s Covid-19 panel headed by PM mulls Bangkok lockdown as cases surge 

+ Thailand’s exports surged 41.6% in May YoY, fastest pace in nearly 11 years 

+ Thailand Finance Ministry asked state-run banks to consider 0% interest rate until end year to curb household debt 

+ Thailand targets 100m doses to cover 70% population with 2 doses each by end 2021 

- Thai Baht hits 13-mth low after BoT holds key rate at record low, cuts 2021 growth forecast 

+ Thailand Tourism Authority targets 100,000 vaccinated int’l tourists to Phuket by end Q3 

+ Cambodia kicks off first commercial gold production that should fetch US$185m per year national income 

+ Laos to conduct first test on Chinese-built 422-km high-speed railway linking to Vientiane with China’s border in August  

- Malaysia will extend lockdown by another 2 weeks after daily cases still over 5000

+ Malaysia aims to inoculate 60% of population by end-Sept 

+ Malaysia surpassed Indonesia to become India’s top palm oil supplier 

- Malaysia benchmark CPO spot prices fell below US$900/tone from around US$1150 in May for the first time since Jan 

+ Genting Gp opens its US$3.4bn extravaganza newest resort in Las Vegas   

+ Axiata and Norway’s Telenor agreed on US$15bn merger to form Malaysia’s biggest mobile operator   

+ Sg plans road map to reopening, under assumption Covid-19 can be controlled through mass vaccination: Ministers 

+ Sg manufacturing output grew 30% in May, biggest gain in a decade 

+ Sg will accelerate national vaccination programme, aims to fully vaccinate 2/3 of population by National Day 

+ Sg SMEs, individuals will be given final extension to resume full loan repayments: MAS 

+ Sg needs land that can be easily converted to other uses: Minister 

+ Sg will spend S$3.8bn on procurement of information and communications technology, up by 10% from a year ago

+ Sg millionaires can be expected to increase by 62% by 2025: Bloomberg 

Contribution by Derek@valueinvestments chat group. Thank you.

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