Wolf Money(world market review 6-12 Sept 2021)

Chuah Thean Teng Malaysia 1914-2008

Man with basket and a child circa 1955

Gift of S. Rajaratnam

Collection of National Gallery Singapore

Market Summary 6-12 Sept 2021

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- Yellen warned US govt will run out of cash in Oct, called to raise debt limit in a letter to Pelosi 

+ US producer price index rose 0.7% in Aug; final demand prices rose 8.3% from a year ago, biggest on record back to 2010  

 + US jobless claims fell to 310,000 near 18-mth low 

+ Biden initiated call with Xi, the first in 7 mths 

- Democrats senate proposed to impose 2% excise tax on corporate stock buybacks as part of US$3.5 trillion bill 

- US Democrats proposed dramatic expansion of EV tax credits that favours Big 3 

- Treasury Dept report showed top 1% earners dodge about US$163bn in taxes every year, the biggest tax evaders 

+ US-China trade volume surged 36.6% YoY to US$470bn from Jan to Aug: Chinese customs 

- Wells Fargo fines US$250m for failure to pay back wronged customers 

- US several airlines warned of slowdown in ticket sales and cut revenue forecasts as Delta variant surged  

+ US targets 20% lower aviation emissions by 2030

- US 1/3 consumer who used “BNPL” services have fallen behind payments  

+ BlackRock raises US$1bn for its maiden Chinese market fund 

- Geroge Soros says BlackRock’s China investments ‘tragic mistake’

- SEC threaten to sue Coinbase if it goes ahead with plans allowing users to earn interest on crypto holdings 

+ Blackstone drops US$3bn bid to buy Chinese developer Soho after failure to satisfy the pre-conditions

+ Tesla significantly expanded production and export of made-in-China vehicles, reaching new all-time record in Aug: CPCA

- Google facing another EU antitrust probe over market dominance 

+ PayPal to acquire Japanese firm Paidy for US$2.7bn, seeks to expand into BNPL sector

- US judge strikes down Apple’s in-app payment restrictions, to allow developers to send their users other payment systems

- Walmart to scrap quarterly bonuses as it raises wages 

- Ford Motor will stop making cars in India after entered 25 years ago; accumulated operating losses >US$2bn in 10 years  

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+ China’s full-year GDP growth forecast to stay above 9%, boosted by strong exports 

+ China’s PPI rose 9.5% YoY in Aug to 13-year high amid soaring bulk commodity prices 

- China’s large and midsize listed banks seeing quality of assets decline due to liquidity problems of debt-ridden developers 

+ China issues plan for Guangdong-Macao in-depth cooperation zone in Hengqin Island of Zhuhai, to promote diversified development of Macao’s economy 

+ China to diversify Macao’s economy, set up special fund to invest in Greater Bay Area projects, pushes tax subsidy to lure top overseas talents 

+ China’s foreign capital utilization will continue to grow beyond expectations this year 

- China’s traditional supervision over recent years insufficient to combat money laundering: ex central bank chief 

+ China to release action plan for revitalizing agricultural to secure food, seed security 

+ China’s big 4 banks shut down 187 service locations and offices in H1

+ Yuan set for highest close in nearly 3 mths 

- China new bank loans in Aug rose less than expected from 9-mth low to 1.22 trillion yuan 

+ China central bank to raise 300bn yuan to support micro, small and medium firms 

+ Shanghai Composite Index reclaimed 3700 pts, first time since Feb as economy showing increased resilience  

+ China revealed plans to publicly sell crude from its state reserves to contain prices 

+ China restarts cross-provincial travel, travelers expects to make 600m trips on National Day holidays 

- China’s vehicles sales slid 17.8% in Aug YoY for 4th consecutive mth, hit by global shortage of semiconductors 

+ Chinese NEV automakers eye European markets, betting on local transition toward low emissions 

- China tells delivery, ride-hailing firms to better protect workers 

+ China launched another plan to deepen opening-up Qianhai Shenzhen-HK 

+ China-Russia first highway bridge ready for operation 

+ China called for low-carbon cooperation with US to normalize trade ties 

+ China to cultivate tech innovation ecology by attracting global youth entrepreneurs

+ China-ASEAN bilateral trade annually growth rate hits 16.5% from 1991 to 2020: customs 

+ China orders top internet platforms operators to take the lead to protect workers’ rights 

- China fines 3 chip dealers for price gouging as global shortage raises costs for automakers 

- China Chipmaker Tsinghua Unigroup starts search for strategic investors to fund bankruptcy restructuring 

- China’s regulator to expand scrutiny of overseas listings by offshore incorporated firms include IPO in HK 

- China 4 central authorities summon Tencent, NetEase and other gaming firms for talk 

+ Chinese apps are now returning to Indian digital ecosystem under various corporate structures with layered ownership

+ WeChat to offer paid cloud storage service for chat records  

+ China’s industry ministry has told Alibaba, Tencent to open platforms up to each other 

- ByteDance founder Zhang Yiming to step down as CEO

- JDcom founder to step back, announce govt-alligned philanthropic goals, retains control 

- XIaomi denies reports its CEO selling 308m company shares 

+ Vivo unveiled self-designed imaging chip, joining Huawei, Xiaomi and OPPO in building in-house chips for self-reliance 

- China fined clothing firm Canada Goose for false advertising, calling several foreign brands for misleading customers 

+ HK growth to match Singapore for the first time since 2008

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+ Japan upgrades Q2 GDP on stronger business spending 

- Japan extends Covid-19 emergency curbs in Tokyo, other areas

+ Japan said >50% of population has been fully vaccinated, may ease limits in Nov

- Japan has confirmed first cases of Mu variant of the coronavirus in the country, detected in 2 travelers arrived in June and July  

- Japan PM Suga announced he will resign as early as this mth 

+ Japan’s exports likely surged for 6th straight mth in Aug due to strong global demand for machinery goods 

+ Japan Airlines finalizes US$2.7bn raising to position for post-Covid-19 era 

- Toyota cuts production further on chip woes, virus issues 

+ Russia hikes key interest rate by 25 basis pts to 6.75% to bring inflation under control 

+ Russia to export up to 50m tons of hydrogen by 2050

+ Russia-China trade surged 30% from Jan-Aug, amounting to US$88.99bn, on course to reach US$200bn by 2024

+ Russia’s exports of aluminum see tenfold surge in July YoY amounting to US$7.4bn 

+ Gazprom announced the final sections of Nord Stream 2 pipeline completed 

+ Russia’s foreign exchange reserves risen to record high of US$618.1bn as of 1 Sept, up by US$17bn in Aug 

- Russia not ready to recognize bitcoin or other cryptocurrencies as it would harm its financial system 

+ Brazil looks to become top-5 oil producer  

- Brazil confirmed mad cow disease causes, suspends China beef export 

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+ ECB will trim emergency bond purchases over coming quarter 

- Europe’s high energy prices are just the beginning: Bloomberg 

+ Europe’s biggest banks are booking average of €20bn in tax havens every year: new report 

- EU green investments to be part of its budget rules review 

+ Volkswagen opens to software partnerships: CEO

+ BMW confident sales in China will increase next year, attributing to higher demand for premium cars and travel restrictions left consumer with more money to spend: finance chief 

+ UK PM to set Covid-19 plans in winter, to scrap the introduction of vaccine passports, to end some emergency powers 

+ France’s Total signed mega oil and gas deals with Iraq as other big oil firms are looking to exit 

+ Greece’s economy to grow 5.9% in 2021, far more than original 3.6% estimate: PM

+ Ukraine parliament adopted a law legalizes bitcoin and regulates cryptocurrency 

-DR Congo President called for review of mining contract with China in 2008 by his predecessor, citing wanted fairer deals 

- Guinea’s recent coup, as major global supplier of main ore for aluminum production, sent aluminum prices to 10-year high  

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- Australia urged to phase out coal by UN climate envoy, citing climate change will dramatically damage its economy 

- Australia outlined trade pivot away from China called “China-plus” strategy to urge business to move into other markets 

+ Australia-China trade grows 39.9% from Jan to Aug to reach US$152bn: Chinese custom 

+ India-China trade continued to rise, from Jan to Aug growing 51.9% to US$78.55bn YoY: Chinese custom 

+ India in talks with Russian energy giant Novatek to buy 9.9% stake in the Arctic LNG 2 project  

+ India cuts import taxes on vegetable oils to calm prices 

+ South Korean to train 8,000 engineers in shipbuilding, improve the productivity by 30% by 2030

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+ ASEAN and China expected to expand cooperation in vaccine, digital economy and investment 

+ Indonesia and China begin using local currencies for bilateral transactions 

+ Indonesia to close massive number of branches over next 10 years to shift more to digital banking services  

+ Thailand to shift strategy to ‘learning to live with Covid-19’, preliminary plans being drawn up to relax some restrictions 

+ Thailand’s headline CPI dropped for the first time in 5 mths, down 0.2% in Aug YoY, due mainly to govt subsidies 

+ Thailand pushes ahead with reopening plans in 5 provinces including Bangkok, Chiang Mai early Oct for vaccinated travelers 

+ Vietnam to reopen resort island Phu Quoc to foreign tourists from Oct to boost economy 

+ Malaysia's opposition PH said inclined accepting deal offered by govt would lead to a rare bipartisan truce 

+ Malaysia will start treating Covid as endemic around end Oct: Trade Minister 

- Malaysia has left about RM300bn from various stimulus packages to be spent to aid rakyat and businesses 

- Malaysia’s July industrial production fell 5.2%, more than expected

+ Langkawi set to open to vaccinated tourists from 16 Sept onwards

- Malaysia ex-PM Najib to get economic advisor role in govt 

+ Top Glove’s export ban lifted by US over forced labour 

- Sg new Covid-19 wave ‘happening faster expected’: Lawrence Wong 

+ Sg to start Covid-19 boosters in mid-Sept for at-risk groups 

+ Sg changing its quarantine and treatment protocols accordingly; shorter quarantine, home recovery as default 

+ Sg to have 4th egg farm to be built by Japan’s top egg producer investment of S$100m 

- CDL sells Chinese unit Chongqing Sincere for US$1 after US$1.4 billion write-off 

+ Sea Ltd seeking to raise US$6.3bn in SE Asia’s biggest fundraising 

Contribution by Derek@valueinvestments chat group. Thank you.

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