Wolf Money(world market review 22-28 Nov 2021)

Vincent Leow Singapore 1961

The Artist’s Urine circa 1993-1994

Collection of Singapore Art Museum 

Market Summary 22-28 Nov 2021

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+ US jobless claims plunged to 199,000, lowest in 52-year   

+ Fed will likely double the pace of tapering its monthly bond purchases from Jan to US$30bn, wind down its pandemic-era bond buying scheme by mid-March: Goldman Sachs 

+ US consumer spending increased by 1.3% in Oct, double the 0.6% gained in Sept

- Dow recorded worst drop of >900 pts in 2021 amid fears the new Omicron strain could unravel economic gains 

- US Black Friday shopping in stores drops 28% from pre-pandemic levels as Americans stay home 

+ Biden chooses Jerome Powell for 2nd term as Federal Reserve chairman 

+ Biden ordered the release of 50m barrels of crude from emergency stockpile to battle rising prices, in coordination with several other countries to lower oil prices 

+ US bank regulators will team up to develop crypto rules next year 

- US govt added dozen Chinese firms to blacklist, including 8 quantum computing and semicon sectors 

- US Shale producers saw reinvestment rates hit all-time low in Q3 with record levels of free cash flow 

- Merck’s Covid-19 pill shows significantly less effective in cutting hospitalisations and deaths than previously reported 

- NY declares state of emergence over new Covid variant 

+ Apple taps TSMC to build iPhone 5G modem in 2023, to cut reliance on Qualcomm for key components 

- US companies from cruise operators to airlines were hammered on new variant fears 

- Delta Air and United Airlines said not revising South Africa flights amid variant concerns 

- Tesla forced to turn down €1.1bn in EU subsidies for German battery plant in breach of funding agreement: FT

+ Impossible Food raised US$500m in its most recent funding round, bringing total funding since founded in 2011 to nearly US$2bn

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+ China’s industrial profit growth accelerates in Oct, growing 25% YoY 

- China imposing quarantines of up to 7 weeks or 49 days for returning Chinese ship crews, could worsen supply chain crisis 

- China’s regulator asking insurers to rectify wide range of problems in their multitrillion-dollar investments by year-end  

- China’s regulator in talks with US on auditing and shares delisting problems involving US-listed Chinese companies 

- China’s Lithium price surpasses 200,000 yuan (US$31,305) milestone as EVs sales reach new heights 

- China’s birth rate fall to 4-decade low, stood at 8.52 per 1000 ppl in 2020, first time dropped below 10 since late 1970s

+ China state council approved implementation of plan for high-quality development of foreign trade, highlighted innovation and development mode transformation 

+ China central bank gives go-ahead to credit-scoring venture backed by Ant

+ China’s stock of Coal at power plants expected to hit all-time high by end Nov: NDRC

+ China’s wind power capacity installations strong growth will continue in 2022 despite subsidy ends: Fitch 

+ China Life acquired 1.96bn newly issued HK-listed shares in China Huaraong Asset Mgmt, acting on govt-backed plan 

+ Shanghai Data Exchange started trading for massive amount of data like commodities, including flight information from China Eastern Airlines, data from China 3 big telecos, Cosso Shipping, UnionPay, JD  

+ China starts clinical trials of mRNA vaccines developed by Walvax Biotech and Suzhou Abogen as Covid booster shots 

+ China’s 2nd batch of infrastructure REITs oversubscribed by dozens of times 

- Chinese asked Didi to delist from US over data security fears: sources 

- Alibaba, Baidu Cloud summoned by Cybersecurity Bureau, urged to control prevent fraud, citing allowed users access to large number of scam websites 

- Alibaba reported a 3-year-high effective tax rate in Q3, had paid US$954m in income tax, >3 times same period last year 

- Ping An’s NY -listed OncConnect fintech unit reported lost of US$42m in Q3, revenue rose by 20.8% YoY

- Tencnet barred from releasing new apps over data breaches, also can’t update existing apps without approval 

+ NetEase seeks US$450m in revises HK IPO, down from rumoured US$1bn in May 

+ Xpeng’s Q3 sales beat expectations at US$892m, may launch Robotaxi business next year

+ Xiaomi will build a plant that can produce 300,000 EVs annually in Beijing from as soon as 2024 

- Evergrande founder sold 1.2bn (9%) company shares to raise US$344m to help bail out 

- Evergrande’s land for football stadium in GZ has been reclaimed by local govt for auction  

- HK fallen out of top most attractive global cities for the first time: Global Power City Index 

- Cathay Pacific was forced to cancel some passenger flights to HK after some of its crews refused to follow its quarantine rules 

+ HK Oct home prices ease for 2nd mth after record high 

- Taiwan Far Eastern Gp, linked to ‘Separatist’ of Taiwan, have been fined for regulatory violations

+ Taiwan considering cooperation with Eastern Europe states on semiconductors: minister 

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+ Japan approved first extra budget with spending worth US$313bn 

+ Japan factory activity grows at fastest pace in nearly 4 years 

+ Japan raised its view on private consumption first time in 13 mths, downgrades exports in Nov report 

+ Japan allocates US$5.2bn of its fiscal 2021 supplementary budget to fund chip plants by TSMC and others 

- Japan approved extra defense spending for the first time, bring annual total beyond US$5.3bn, equal to 1.14% of last fiscal GDP

+ BOJ offered payments to nearly 90% of lenders under scheme to revitalise the industry by promoting mergers and cost cuts 

+ Japan PM urges companies to raise wages by 3% or more 

+ Nissan wants EVs to make 50% of its sales by 2030

+ Russians total annual volume of cryptocurrency transactions amounts to US$5bn: central bank 

+ Russia, China to further boost trade with more agriculture, energy deals expected 

- Global deal activity, comprising M&A, private equity, venture financing deals down by 5.7%  in Oct: GlobalData 

- IMF warned bitcoin poses “significant risks” to consumers, citing El Salvador’s recent move using bitcoin as legal tender 

- WHO said new Covid variant Omicron may spread more quickly than other variants, triggered global alarm, market sell-off 

- Oil prices plunged US$10 a barrel in largest 1-day drop since April 20, as new variant of Covid added to concerns 

- OPEC and Russia mulled pause in previously agreed increase in oil production after US announcement to release of strategic crude reserves 

- Nitrogen fertilizer global prices at highest levels in >10 years, may affect next year’s food prices

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+ EU set out 3rd wave of reforms in 6 years; to build a seamless securities market that can compete better with London and NY

+ ECB still plans to end emergency bond purchases in March despite threats from new variant: top 2 officials 

- German import prices rose by 21.7% in Oct YoY, the biggest rise since 1980, drove by higher energy costs 

- German business morale deteriorated for 5th mth running in Nov on supply bottlenecks, Covid

- Germany’s banks vulnerable to housing bubble; should build buffers: Bundesbank 

- Germany’s 7-day Covid-19 incidence rate hist fresh record 

+ Mercedes plans to build EVs in China 

- Germany, UK confirmed Omicron Covid-19 cases, other European countries probe suspected cases 

+ UK retailers report strong pre-Xmas demand since 2015, also the biggest price rises since 1990 

+ UK Manufacturing Purchasing Manager Index (PMI) 58.2 vs 56.3 forecast 

- London Tube network disrupted as drivers held their biggest 24-hr strike since 2018, running 58% of usual services  

- UK; alcoholic drinks could be absent from store shelves this holiday seasons due to truck-driver shortage 

- French fishermen disrupt UK trade routes over fishing licence row 

+ Italy fined Apple and Amazon roughly US$230m of anti-competitive cooperation in sales on Amazon’s Italian platform  

+ Ikea opened its first outlet in Philippines, its largest globally  

+ Roche shareholders approved deal to buy Novartis US$20.7bn 1/3 voting stake

- Turkish lira plunges to historic low, dropping by >15% against dollar  

- Israel becomes the first nation to ban entry of travellers from all countries over Omicron Covid-19 variant 

- Israeli tech firm NSO Gp facing US$500m default after being blacklisted in US over using its tech to spy political dissidents 

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- Australia detected first Covid-19 Omicron infections in 2 passengers from South Africa arrived in Sydney 

+ India Inc to show strong significant EBITDA growth in next 12-18 mths, benefiting from strong consumer demand and high commodity prices: Moody’s 

+ Tata group reportedly to build semiconductor assembly-and-test unit

+ India ultra-low-cost carrier Akasa Air, placed a US$9bn order for 72 Boeing 737 MAX jets  

- India’s Paytm Sept quarter net loss widened by 8.4% as expenses rose 

- India’s proposal to ban all private cryptocurrencies has been added to agenda of its parliament 

- India govt advised ppl against subscribing to Musk’s Starlink Internet Services as it dose not have a license to operate 

- South Korea raises rates by 25 basis pts to 1%, amid household debt, inflation concerns 

+ Samsung plans to invest US$17bn to build advanced chip plant in Texas Taylor, to create 1800 jobs  

- Aramco and India’s Reliance Industries to call off planned joint refining project worth US$15bn on valuation differences

+ Sir Lanka awarded port project to China in Colombo, after dropping Japan, India 

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+ ASEAN fintech funding hits record high of US$3.5bn for first 9 mths

+ Indonesia expects to meet 2021 tax revenue goal: FM

+ Bank Indonesia to reduce liquidity in 2022 without disrupting lending, keep rates low until sees signs of inflation rising 

- Indonesia may stop allowing exports of bauxite, copper ore and tin in 2022, 23, 24 respectively: Jokowi 

- Indonesia media gp pushing for draft regulation to make news aggregators pay publishers for displayed content 

+ Thailand 2nd and 3rd largest telecom operators, True Corp and DTAC exploring merger 

- Thailand as many as 40% of SMEs face high risk of closure due to tight liquidity and higher operation costs: UTCC

- Thailand govt plans introducing excise tax on salty, processed foods: FM 

- Thai night life industry closed until Jan 16 as govt extended emergency decree for another 2 mths 

- Thailand drops further in English proficiency to worst in SEA

- Myanmar’s shadow govt raises over US$6m from ‘revolution bonds’

+ Malaysia to focus on VTL with neighbouring countries before expanding to other countries: Minister 

+ Malaysia Oct CPI rises to 2.9%, higher than JPMorgan consensus 

- Malaysia’s retail sales still below pre-Covid levels, but food and consumer electronics have outperformed: Fitch Solutions 

+ Malaysia’s 5G network fees will cost telecos less: FM 

+ Malaysia 83% of adolescent population aged 12-17 had completed Covid-19 vaccination 

- AirAsia reported wider net loss for Q3 amid weak travel demand 

- Singapore may fore to roll back easing of Covid safety measures: PM Lee 

+ Sg manufacturing output grows 16.9% in Oct YoY after a 3.4% fall in Sept

+ Sg GDP growth to slow to 3.5% in 2022 after 7% gain this year 

+ SG-Malaysia land VTL to open on Nov 29, up to 2880 travellers each day from both countries 

+ Sg added 6 countries to its VTL scheme, raises traveller quota to 15,000 

- Sg Oct core inflation up 1.5%, biggest jump in nearly 3 years

- MAS called the 2 consecutive days mass service disruption at DBS a “serious” one

+ Sg services industries saw business receipts rise 16% YOY for Q3, business receipts also up 4.8% QoQ

- Sg at least 1 in 2 job roles in logistics expected to undergo a medium degree of change or displacement in coming 3 to 5 years 

+ Sg domestic wholesale trade soars 38.4% YoY in Q3 

+ Sg Jurong Island oil hub will be transformed into a sustainable energy and chemicals park 

+ Sg businesses hope land VTL with Malaysia will let in new workers 

+ Novavax applies for approval to use it non-mRNA Covid-19 vaccine in Singapore 

+ Sg ranks 14th for countries with NFT ownership

Contribution by Derek@valueinvestments chat group. Thank you.

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