Wolf Money(world market review 28 Jun - 04 Jul 2021)

Svay Ken Cambodia 1933-2008

Greed circa 2006 

Collection of Singapore Art Museum

Market Summary 28 Jun – 04 Jul 2021

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+ US growth will hit 7% this year, much stronger than previous forecast: IMF 

+ US added 850,000 jobs in June after advancing 583,000 in May, unemployment rate rose to 5.9% from 5.8% in May 

+ US claims for state unemployment benefits fell 51,000 last wk to fresh pandemic low of 364,000, layoffs at 21-year low 

+ US consumer confidence increased for 5th mth in June to highest level since pandemic started last year  

+ US factory new orders rebounded sharply in May, surged 17% after slipping 0.1% in April

+ Yellen said 130 nations agreed to global minimum tax on corporations 

+ US housing prices jump the most in more than 3 decades 

+ US dollar held by global central banks totaled 59.5% from Jan-Mar, up from 58.9% recorded in previous qtr: IMF 

 + US dollar at 15-mth high on yen and at multi-mth peaks against other majors 

- US Supreme Court declined to lift national moratorium on eviction of tenants fallen behind on their rent during pandemic 

+ Dow Jones, S&P 500, Nasdaq all ended the session posting 5th consecutive quarterly gains in H1

+ S&P 500 companies spend US$171.5bn on stock repurchases in Q1: Bloomberg Data 

+ US shale could be looking at record profits of US$60bn in 2021

- Biden ordered probe of latest ransomware attack hundreds of businesses and led to suspicious of Russian gang involvement 

- Massive ransomware attack on US IT firm potentially targeted 1000 businesses: researches 

+ Musk’s Starlink on track to bean broadband internet everywhere in the world except Polar Regions by August 

+ Tesla delivers 201,250 cars in Q2, setting a new record 

+ United Airlines making its biggest ever plane orders of 270 aircrafts, bets air travel to rebound strongly from pandemic 

- Trump Organization was indicted for fraud, CFO surrendered to NY prosecutors, expected to be charged with tax-related crime

- US bipartisan group lawmakers’ expert in antitrust urged to press on lawsuit against FB 

+ BlackRock gets ready to launch in China’s booming mutual-fund market  

+ Robinhood Markets filed for IPO, disclosing it became profitable last year 

+ FB unveiled plans for subscription newsletter product called Bulletin 

+ J&J said its Covid-19 vaccine showed strong signs of protecting against Delta variant in small laboratory study 

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 + China celebrated the 100th anniversary of the Chinese Communist Party 

+ China’s economic growth projected to reach 8.5% in 2021 amid robust recovery: World Bank 

+ China’s industrial profits soar over 83% YoY in first 5 mth to US$527bn 

- China’s manufacturing activity at 3-mth low but remained in expansion territory in June at 51.3: Caixin 

- China’s June PMI fell slightly for 3rd consecutive mth at 50.9 due to weak recovery in demand and tight supply of raw materials 

+ Chinese yuan held by global central banks reached new high of 2.45% in Q1: IMF

- China’s factory activity dipped to 4-mth low in June, weighed by higher raw material costs, global shortage semiconductors 

+ China around 599 (60%) firms had released their H1 estimates, with about 67% signaling an improvement

+ China’s nuclear deterrence guild up cannot be tied down by US: Global Times 

+ China leads in total number of Top500 supercomputers with 186 machines showcased on the list 

+ China’s investment in countries participating in B&R initiative exceeded US$130bn 

+ China’s SiEngine Tech announced they had developed a 7-nanometer intelligent car cockpit control chip SE1000

- China lithium electricity upstream materials rise significantly amid EV boom 

+ Chinese suppliers, customs in Yiwu cope with early orders for Christmas, Halloween from Europe, US 

- China property sector downgraded by Morgan Stanley, citing govt may cool the heated market to reduce developers’ debt  

+ China chipmaker Loongson Tech filed IPO application on Shanghai STAR market to raise US$542m 

+ Beijing-Urumqi express completes, marking the full operation of world’s longest across-desert expressway  

+ Hainan duty free stores sales reached US$7.23bn in 12 mths, up by 226% YoY 

+ Huawei CFO Meng to provide new evidence showing false and misleading arguments made by US, seeking to end the case

- China’s cyberspace regulator ordered Didi to remove its app from domestic app stores over national security 

- Vanke says property development glory days are over

- Luckin discloses it overstated 2019 revenue by US$328m 

+ Alibaba Gp-led consortium, Jiangsu provincial govt to buy stake in Suning retail arm 

- Jack Ma and Joe Tsai have pledged chunks of their combined US$35bn stake in Alibaba in exchange for significant loans: FT 

+ HK local property transactions surged 74% YoY to HK$469bn in H1, hitting 24-year high: Midland Realty 

+ HK predicted to remain top 3 IPO market in 2021, with expected total fundraising of HK$500bn: PwC

+ HK retail saels jumped by 10.5% in May YoY, however still far below pre-pandemic level 

+ Taiwan, US resumed long-stalled trade talks with vaccines chips on agenda 

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+ OPEC+ could add 2m bpd oil to market by Dec: Reuters 

+ OPEC expects increase in global oil demand in 2021 amid world’s post-pandemic recovery 

- Tokyo reported its highest Covid-19 cases of 716 new infections on Sat, highest in >5 weeks 

- Japan’s factory output fell 5.9% in May amid pandemic and chip scarcity 

- Japan’s jobless rate hit 5-mth high in May, number of ppl in work fell 130,000 from previous mth 

+ Japan auto sales up 11.6% in Jan-Jun period to 365,631 units 

+ Nissan with Chinese partner Envision to build a gain battery plant power 100,000 vehicles a year in UK

+ SoftBank sold US$3.85bn dollar-denominated debt and €2.95bn of notes 

+ Russia’s GDP growth speeds up to 10.9% YoY in May: Ministry  

+ Russia in final stage of negotiations with Egypt to build US$7bn industrial park in Port Said 

- Russia-linked hacking group hacks roughly 200 businesses in a large-scale ransomware attach: Huntress Lab

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+ Euro zone manufacturing activity expanded at its fastest pace on record in June: PMI

- ECB to come down on banks taking too much risk via financial instruments such as leveraged loans n equity-related derivatives 

- Euro global reserve down 4.4% to 20.6% in Q1 against 21.3% in previous qtr: IMF 

- EU new 10-year recovery fund bond dipped below 0% for the first time 

+ Germany will have 1m EVs on the road in July, hitting its target 6 mths late

+ UK Covid-19 data looks ‘very positive’ for lifting lockdown: Minister 

+ UK home prices surged by the most in >16 years in Jun, demand expected to remain strong 

- UK GDP QoQ -1.6%, YoY -6.1%

- UK ordered Binance to shut down all regulated activities in the country 

+ UK 4th largest supermarket Morrisons agrees to £6.3bn (£9.5bn with debts) takeover by SoftBank-owned Fortress Investment

- France opens probe into 4 retailers; Uniqlo, Zara, CMCP and Skechers over forced labour in Xinjiang

+ Italy first charter flight to China since Covid-19 outbreak set to take off on July 12

- Norwegian Telenor conceded to write off entire investment US$782m in Myanmar as coup had severe impact 

- H&M’s China sales plunged 28% in Q2 after Xinjiang cotton ban

- Sweden’s supermarket giant had to temporarily close 800 stores nationwide after cyberattack blocked access to its checkouts 

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+ NZ central bank said economic activity was returning to pre-pandemic levels 

+ Asian M&A activity surged to its 2nd highest level ever for H1, SEA and private-equity deals hit records 

- Asia factories activity saw momentum weaken on rising costs, new Covid curbs 

+ APAC top-performing market H1; Taiex +20.52%, Kospi +14.73%, Nifty 50 +12.44%, ASX 200 +11.02%

+ India announced US$94.9bn relief package to support economy against pandemic 

+ India oil demand expected to get back to normal by end year

+ India’s consumer digital economy expected to reach US$800bn by 2030

+ Indian making rules to encourage firms switch entirely to renewable power

- South Korea’s consumer inflation in June near 9-year peak, stood above 2% for 3rd straight mth 

 + Saudi plans new national airline, to make the kingdom a global logistic hub, build ports, rail, in move away from oil 

- UAE rejected an oil output deal pushed by top producers Russia and Saudi Arabia, calling for much higher production limit 

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- Indonesia imposed a partial lockdown in the capital Jakarta

- Indonesia business warns risk of layoffs, bankruptcies from new Covid-19 curbs

- Thailand needs structural change in its economy to fully recover from pandemic: IMF

- Thailand has lost 2m tourism jobs to Covid-19 amid near-total collapse of tourism 

- Thai baht hit fresh 13-mth low 

+ Phuket received >1300 visitors first 3 days of July under quarantine-free “sandbox” scheme 

+ Vietnam govt ordered its central bank to study virtual money using blockchain tech over 3 years 

+ Vietnam to open 123 new hotels projects and 51,515 rooms in pipeline up to 2024 and beyond 

+ Philippines fintech startup Voyager raised US$167m in funding round, plans include venture into digital banking 

+ Malaysia unveiled RM150bn package, 4th stimulus this year includes RM10bn direct fiscal injection, extends lockdown 

+ Malaysia those applying for 6-mth moratorium on loan repayments will be given automatic approval

+ Malaysia govt to reconvene Parliament before Aug 1

+ Malaysia’s central bank received 29 bids for digital banking licenses, expected to issue up to 5 licenses by Q1 2022

- Malaysia new Covid-19 cases stayed above 6000 for 5th straight day 

+ Sg economy could exceed 4-6% forecast: MAS, govt could upgrade GDP forecast for 2021 

+ Sg private residential property prices rose by 0.9% in Q2, up for 5th straight qtr 

+ Sg jobless rate down to 2.8 in May from 2.9% previous mth: MoM

+ Sg tourism could shift into fast gear soon as its steps up vaccinations: Minister 

+ MAS to conduct additional stress tests to assess lift on Sg banks’ dividend cap

+ Vaccinated Singaporeans may soon be allowed to travel abroad and return with more relaxed measures: Minister 

+ Sg job postings rose 30% in April, exceeded pre-Covid level in mid-Oct 2019

+ Sg property not overheated, but it will watch rising prices closely: MAS

+ Sg developers may seek extension to delivery date of possession 

+ Sg real estate investment sales volume surged to S$9.17bn in H1, already at 79% of 2020’s volume: CBRE

+ Sg eyes to be an e-commerce hub as Asia’s digital economy grows 

+ SGX RegCo enforces new whistleblowing policy for issuers 

- Sg 16 banks suffered nearly US$300m in actual monetary loss out of total US$2.77bn loans to Hin Leong 

+ MAS made a net profit S$5.2bn for FY ending 31 Mar, 51% lower than S$10.6bn same period last year 

+ MAS proposes more investigative powers, enter premises without prior notice or warrant 

- MAS to follow up on Binance’s Sg unit, amidst probed by several agencies in US, Japan, UK etc

+ Sg inked advance purchase deal with GSK for Covid-19 drug sotrovimab

+ GIC agreed to invest US$1bn in Biomat, US-based plasma collection firm owned by Grifols 

+ Grab-Singtel, iFast apply for Malaysian digital bank license 

Contribution by Derek@valueinvestments chat group. Thank you.

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