Wolf Money(world market review 27 Sept - 2 Oct 2021)

Anthony Poon Singapore 1945-2006

COL-TRI circa 1973

Gift of the late Artist’s Family 

Collection of National Gallery Singapore 

Market Summary 27 Sept – 2 Oct 2021

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+ US consumer spending rose 0.8% in Aug, better than expected, inflation rises

+ US manufacturing expands further in Sept, but factories facing shortages in raw materials, higher prices for inputs 

+ Congress passed legislation extending govt funding through Dec 3, avoiding a shut down

- Republicans say will reject legislation in Senate as they will not support a debt increase or suspension 

+ US trade chief to unveil Biden’s China trade strategy on Monday 

- US approached China to reduce oil imports from Iran, to pressure Iran into nuclear deal negotiations 

- US regulators started countdown that will force many Chinese firms to leave US stock exchanges

- US 2 top central bankers of Boston, Dallas stepping down after reports of potentially unethical investments in 2020 

+ US stocks at 70-year high as a share of household financial wealth

- Democratic lawmakers want to tax estates worth US$5.85m or more, currently only estates worth US$11.7m are taxed 

- US construction spending unexpectedly flat in Aug, increase in public sector projects was offset by weakness in private sector 

+ White House top aide discussed oil prices with Saudi Arabia 

+ Merck to apply for emergency use authorization for pill that may be first to treat Covid-19 

- US Covid-19 deaths top 700,000: Johns Hopkins 

+ Merck to buy Acceleron Pharma for about US$11.5bn with potential treatments could bring in fresh revenue

- US equity funds see biggest weekly outflow in over a mth on concerns on rise in Treasury and inflation levels: Lipper 

- US to spend US$1.9bn fund to pay rural telecoms firms to remove and replace plan banned Huawei and ZTE tech 

+ Biden administration looking into ways to impose bank-like regulation on companies issue stablecoins 

- SEC plans to soon release long-awaited report on GameStop trading saga that could have implications for brokerages, wholesale market makers, exchanges n retail investors 

- US house panel considers bill curbing dual-class stock 

+ Tesla delivered 241,300 vehicles in Q3, hitting another record  

- United Airlines some 600 employees face dismissal for refusing Covid-19 vaccine 

- US-China shipping cost plunged this week after hitting record highs in early Sept 

+ Apple looks to tap into an internet advertising market dominated by FB and Google: RBC Capital 

- Google scrapping plan to offer bank accounts to users

- Coinbase said hackers stole cryptocurrency from at least 6000 customers 

- Amazon-backed EV maker Rivian discloses near US$1bn losses in H1 in IPO filing 

+ GM plans to position itself as tech platform firm focused on software on making EVs 

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+ China vows offering high-level opening-up unmatched in any of current trade deals if it can join CPTPP

- China’s manufacturing PMI contracted in Sept

- China to ban export of core industrial and information data from leaving the country 

+ China’s net flows of overseas investment surged to record high of US$442.8bn in H1 

+ China to build monitoring system to detect security risks, ensure fair and transparent use of algorithms 

+ China to expedite high-quality Intellectual Properties transfer process: Ministry 

+ China coal-fired plants in some areas cleared to hike electricity rates by 10% 

+ China to become world’s largest aviation market by 2040: COMAC

+ China’s top economic planner vowed to prioritize coal transportation to secure supply for domestic power generation  

+ CNOOC discovered huge offshore oil deposit in Bohai Bay

+ China’s state-owned importers step up efforts to secure LNG for winter 

+ China state researcher said hydrogen cars may be as cheap to make as fossil-fuel vehicles by 2030 

+ China drafted new regulation to bar transfer of crucial industrial and telecoms data outside China 

+ Chinese car brand Hongqi (Red Flag) is exporting China-made electric sport-utility vehicles to Norway 

- HNA seeks to repay less than half of debt claims sough against airline unit 

+ Chinese direct investment in overseas jumped 12.3% in 2020, however overall world spending sank 39.4% 

- Guangzhou’s poor results in land auctions show developers pulling back  

+ Chinese regulators ask financial firms, local govts to support, protect consumers, ensure stability of property market 

+ Evergrande to raise US$1.55bn from sale of stake in regional bank

- China Fortune proposed asset sales, business divestitures, and debt for equity swaps 

- Guandong to hike electricity prices for industrial users amid power shortage 

+ CIMC acquired Maersk’s cold container manufacturing unit for US$1bn 

+ CATL acquired Canadian lithium miner in US$297m deal 

+ HK’s exposure to Evergrande Gp is very minimal at 0.05% or HK$14bn of banking assets: Finance Chief 

+ HK-Thai start-up Fraction is using blockchian to slice up a US$462m portfolio of Thai properties, selling in security tokens 

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+ Fumio Kishida has won race to lead Japan’s LDP, on course to become next PM

+ Japan may sell more bonds to fund next premier Kishida’s stimulus package

+ Japan’s business mood improved for 5th straight qtr in Sept on solid demand

- Japan’s household spending likely slipped back into contraction in Aug

- Japan business sentiment among manufacturers risen to highest level in nearly 3 years: Tankan survey

+ Toyota outsold GM in US for first 9-mth, GM is the largest seller in US since 1931

+ Russian’s GDP outlook being upgraded to 4% from 3.7% by S&P 

- Russian billionaire Oleg Tinkov agreed to pay US$500m in US fraud case accused him of concealing assets to evade taxes 

+ Russia has not received requests for increased coal exports from EU or China: Ministry

+ Russian-China trade to reach record levels in 2021: Economy Minister 

- Global equity funds see higher outflows on rate hike concerns in the wk to Sept 29: Lipper 

+ Brent crude oil price for Nov exceeded US$80 per barrel first time in 3 years ahead of OPEC+ meeting 

+ OPEC+ considering going beyond existing deal to boost production by 400,000 bpd: sources 

- Oil may hit US$100 this winter and spur economic crisis: BofA

- Natural gas prices reached a level equivalent to US$190 for a barrel of crude

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- Euro zone inflation jumps to 13-year high in Sept, driven mainly by surge in energy prices, natural gas 

- European gas prices set another record to almost US$115 per megawatt-hr in household terms: ICE 

- European stocks slumped to lowest in 2 mths on inflation worries 

- European stocks predicting decline of nearly 10% by year-end: BofA Global Research 

- Germany inflation hits highest since 1993, passing 4% threshold 

+ Daimler shareholders voted in favour of spinning off company’s truck division 

+ UK ended its furlough scheme after spending £70bn to protect workers from pandemic over 18 mths 

- UK factories face mounting supply problems, staff shortages: PMI

- UK govt could deploy military personnel to tackle ongoing petrol crisis

- France’s Sanofi halts work on mRNA Covid-19 vaccine 

+ Norway nearly 80% of new car sales are electric with high demand for Tesla 

+ Hungary inked new gas supply agreement with Russia, by passing Ukraine 

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+ Australia will reopen its int’l border for the first time in pandemic in Nov to vaccinated citizens and their relatives 

- Australia-EU trade talks postponed after cancelation of French submarine contract 

+ Qantas would restart some int’l flights a mth earlier in Nov than planned 

- NZ locks down 2nd city as virus spreads beyond Auckland 

+ Asia had record Q3 for IPOS with US$56bn raised, even as HK turned quiet 

- Asian LNG price soars to record high on competition for fuel 

+ India’s palm oil imports in Sept more than double from a year ago to record 1.4m tones due to lower duties 

+ India hotel aggregator, SoftBank-backed, Oyo Hotels aims for up to US$12bn valuation in India IPO 

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- Indonesia house passes 2022 state budget with 4.85% deficit

- Indonesia recorded 2nd monthly drop in consumer price this year in Sept on cheaper food

+ Indonesia to formulate grand strategy for nickel industry 

+ Thailand Tourism Authority  considers issue its own crypto coin to boost tourism industry 

+ Thailand on track to export 6m tonnes of rice this year due to anticipated uptick in demand 

+ Duterte announced will not run for VP in 2022 elections, will retire from politics

+ Malaysia plans to reopen its borders to foreign travel in Dec once 90% of adult population fully vaccinated 

+ Malaysia pledges spending, green goals in 5-year economic plan 

+ Malaysia to make construction sector more digitalized and sustainable: minister 

- Sg population shrinks 4.1% YoY to 5.45m between Jun 20-Jun 21, largely due to drop in non-residents  amid Covid-19

+ SGX said several China-related SPAC projects expressed interest in raising funds in Sg

- Sg daily number of Covid-19 cases may rise to more than 5000 next week: Minister 

- Sg 59% of business leaders say their companies are surviving in the current pandemic from Jan to Aug: Amex survey

+ MAS grants cryto licenses to DBS and Australian exchange, more licenses expected to be issued 

+ MAS to introduce new digital platform to fight money laundering 

+ MAS to roll out platform requiring information sharing among banks in 2023 to fight money laundering 

+ Sg to set aside S$180m to help at least 6000 firms tap green economy opportunities  

+ Sg PayNow and Malaysia’s DuitNow to link in Q4 2022

+ Sg digital customer services provider TDCX raises US$349m in IPO in NY 

+ Sg office rents showed signs of bottoming out in Q3 of 2021 

Contribution by Derek@valueinvestments chat group. Thank you.

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