Wolf Money(world market review 11-18 July 2021)

Affandi Indonesian 1907-1990

Burong Hitam, Matahari, Manusia (Black Bird, Sun, Man) circa 1950

Collection of the National Gallery Singapore 

Market Summary 12-18 Jul 2021

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- US CPI hit its highest pt since 2008, reporting 5.4% YoY, used-car prices made up >1/3 of growth in top-line inflation 

+ US added 850,000 jobs in June, unemployment rate rose to 5.9%, wages up 0.3% for the mth and 3.6% over the year  

- Fed will continue to provide stimulus until economy fully recovered, even inflation has hit the highest rate in over decade 

+ US retail sales rose 0.6%, unexpectedly increased in June as demand for goods remained strong 

- US consumer sentiment fell sharply and unexpectedly in early July to lowest level in 5 mths on inflations fear 

+ US business inventories increased solidly in May, autos stocks declined 

- US to warn firms of increasing risks of operating in HK

- US Senate Commerce Committee asked Airlines to explain worker shortages despite receiving billions in pandemic bailouts 

- US preparing to impose sanctions on 7 Chinese officials over crackdown on democracy in HK: source 

+ Yellen to meet with regulators to discuss “interagency work” on stablecoins 

- FAA says new Boeing production problem found in undelivered 787 Dreamliners 

+ Delta Air Lines reported Q2 profit of US$652m, breaking 5-qtr streak of losses 

+ Intel in talks to buy semiconductor manufacturer GlobalFoundries for about US$30bn  

+ Broadcom in talks to acquire closely held software company SAS at US$15-US$20bn 

+ Apple and Goldman Sachs in partnership to start a ‘Buy Now, Pay Later’ (BNPL) service 

+ Apple asked suppliers to build 90m next-generation iPhones this year, seeking up to 20% increase in new supply 

+ Google ramping up cloud infrastructure in India with 2nd cluster of data centres 

+ FB would spend US$1bn on social media cerators through end next year in fight for top talents 

+ Netflix planning expansion into video game market

+ American Airlines cancelling extended leaves for 3000 flight attendants, calling them back to work in time for holiday season  

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+ China’s GDP rose by 7.9% in Q2, exports rose 32.2%, imports surged by 43% in June 

+ China’s retail sales climbing 12.1% in June, beverages the fastest-growing sector soaring 29.1% 

- China promised to take necessary measures in response to latest US blacklisting of Chinese companies 

- China vowed to crack down on commodity hoarding, malicious speculation and price hikes to curb rising prices 

+ China’s test of sovereign digital currency reached total transaction value US$5.39bn 

+ PBOC: foreign visitors no longer need to open bank account to make e-payment in China 

+ China to explore cross-border payments in digital yuan, willing to discuss setting global standards for digital fiat currency

+ China considering trial would allow qualified foreign institutions to invest offshore yuan in Shanghai’s STAR market 

+ Chinese households have accumulated US$47 trillion in savings, while govt is gradually allowing citizens to invest overseas 

+ China’s FDI soared by 34% to US$91bn YoY in H1: Ministry 

+ China Southern Airlines to be country’s first to test IATA Covid Pass 

- China aims to sell nearly 99% of Anbang’s remains, valued at US$5.3bn now

+ China major ports saw robust container throughput in H1, with posting annual growth rates >20%  

+ China launched construction of world’s first multi-purpose small modular reactor in Hainan 

- Anhui plans to shut down all cryptocurrency mining projects within next 3 years due to power supply shortage 

+ China to release >10m tons of coal from its reserves for summer peak electricity demand to guarantee supply

+ China’s national carbon market made its debut with turnover of ¥210m in 1st day trading

+ Chinese glove makers new order inquiries surging by 10-20% in weeks mostly from US and Europe 

+ China to exempt HK IPOs from cybersecurity checks 

- China dispatched a team of officials to conduct on-site inspections at Didi as part of probe 

- China’s antitrust regulator to order Tencent music streaming arm to give up exclusive to music labels: source 

+ Tencent makes foray into semiconductor chip business  

+ XIaomi ranked no. 2 for first time in global smartphone market in Q2, overtakes Apple by 3% in global shipments  

- HK customs busted 1st suspected money laundering syndicate involving Cryptocurrency 

+ Taipei grade A office vacancy rates dropped to 21-year low of 1.9% in Q2, supported by demand from tech firms, tight supply 

+ TSMC said revenue would grow at least 10% sequentially this qtr to another record high

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- BOJ cuts this fiscal year growth, outline new scheme aimed at boosting funding combating climate change 

+ Russia and US trade turnover jumped 7.7% in Q1 YoY to US$3.88bn despite sanctions 

+ Russia Nord Stream 2 pipeline to be completed in Aug

- Cuba’s economy shrank by 11% in 2020, sharpest contraction since the collapse of Soviet Union

+ OPEC+ agrees to boost output after Saudi, UAE end standoff 

+ OPEC+ projected global oil demand to grow by 6m bpd in H2, reaching pre-pandemic levels by 2022

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+ EU commission to delay its plan to propose EU digital tax as awaiting for global deal on fairer taxation 

+ EU unveiled ambitious plan to reduce greenhouse gas emissions by 55% from 1990 levels by 2030 

+ EU hopes to come up with a list of “high impact and visible projects” to rival the BRI 

- EU court said Russia’s access to OPAL gas pipeline should be limited 

- EU automakers sold almost 2m fewer cars in Europe in H1 compared with 2 years ago prior to Covid-19 pandemic 

- German banks are rapidly cutting back office space as rising number of staff work from home 

+ UK inflation soared 2.5% in June, highest rate since Aug 2018, from 2.1% in May 

+ UK’s exports to EU rose in May to their highest level since Oct 2019 

+ UK average household wealth rose by £7800 due to asset price rises 

- UK small shops are facing £1.7bn debt mountain 

- UK police seized record hauls of cyrpotcurrecny totaling £294m as part of investigation into money laundering

+ Richard Branson’s Virgin Galactic announced would raise up to £360m through selling shares 

- Frances fines Google €500m for failing to negotiate “in good faith” with media companies over use of their content 

+ Ericsson unveiled US$8.3bn its biggest single contract ever, to provide Verizon equipment for its 5G network  

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+ NZ ends QE program nearly a year after implement; the NZ$100bn program wasn’t expected to end until June 2022

+ AIIB, Chin-backed Asian Infrastructure Investment Bank makes first move into Sub-Saharan Africa 

- India banned MasterCard from adding new customers over data storage breach

+ Bank of Korea said would discuss raising its key interest rate from next meeting in Aug 

+ Samsung considering 2nd Texas site for US$17bn US semiconductor plant 

+ LG Chem to invest US$8.7bn through 2025 in green products 

+ Egypt’s Suez Canal netted record US$5.48bn in past tax year 

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- SEA economy’s growth could significantly hit by Covid Delta Variant: Goldman Sachs  

+ Indonesia estimates amount of debt issuance this year will be 18% less than initial target with higher tax collection 

+ Indonesia palm oil exports reached decade high to around US$3bn in May, accounted almost 1/5 of country’s total exports 

+ Indonesia extended at least 6 tax incentives to year-end to support businesses, workers 

- Thailand expands Covid-19 restrictions include travel curbs, mall closures and night time curfew after reported record cases 

- Thailand more hotels may opt to sell their properties if stringent measures set for financial aid schemes 

- Bank of Thailand: ceiling rate cut for consumer loans would not be a holistic solution to help ease debt burden of individual  

- Myanmar’s electricity sector close to collapse as ppl refuse to pay their bill 

+ Malaysia sets new target of fully vaccinating 100% of adult population by Oct 

+ Malaysia to decide restriction relaxation for fully vaccinated individuals to be decided next week

+ Sg exports soared by 15.9% in Jun, driven by non-electronic exports, sharp increased from 8.6% expansion in May 

+ Temasek reported 25% rise in its portfolio value to record S$381bn in year ended Mar 2021, biggest gain since 2010

+ Sg introducing differentiated Covid rules for people who are vaccinated 

- Sg reported 88 new locally-transmitted Covid-19 cases on Sunday, highest in 11 mths

- Sg cuts dine-in group size, pivoted nightsports suspended amid spiked in Covid-19 cases due to KTV cluster  

+ CBD grade A office rents grew 0.5% QoQ after 5 qtrs of decline, reaching S$9.60 psf in Q2: Cushman & Wakefield

- Sg saw 87.5% decrease in arrivals to just 2.7m visitors in 2020, nearly all coming from first two mths 

+ Sg plans to become a key regional special coffee trading hub: SG Coffee Association 

Contribution by Derek@valueinvestments chat group. Thank you.

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