Wolf Money(world market review 17-23 Jan 2022)

 

Chua Tiag Ming Singapore 1931-2003

Chase Circa 1960s-1970s

Collection of National Gallery Singapore

Market Summary 17-23 Jan 2022

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+ US leading economic index Conference Board rose 0.8% in Dec after advancing 0.7% in Nov 

+ Biden administration raises minimum wage for US federal employees to US$15 an hr 

+ Fed should recalibrate the support it provides to US economy 

+ Fed floated the notion of a “digital dollar” to keep up with cryptocurrencies 

+ Wall St banks expects ‘new normal’ for trading revenue after stellar 2 years 

- US reviewing Alibaba cloud business to determine whether it poses risk to US national security 

- US 5G internet rollout downscaled as major airlines suspend multiple flights amid safety concerns 

+ US in talks with Qatar over supplying LNG to EU

- US suspends 44 China-bound flights from US by 4 Chinese carriers in response to Chia decision to suspend some US carrier flights over Covid-19 concerns 

- US-China flights between the 2 countries in risk of suspension in Feb as China’s continued to cancel inbound flights to country due to imported cases of Covid-19 

- US major airlines warned 5G could ground some planes, wreak havoc

- US warned it may ban chip exports to Russia if Ukraine is attacked 

+ Tesla signed deal to get key battery component outside China 

+ Intel to invest up to uS$100bn to build potentially world’s largest chip-making complex in Ohio 

+ Microsoft to pay US$69bn for Activation Blizzard, maker of Candy Crush and Call of Duty

+ Amazon to open first-ever clothing store at California mall 

+ China will be able to achieve economic growth of around 5.5% in 2022: cabinet adviser 

+ China’s central bank to cut 1-year and 5-year LPR (Loan Prime Rates) by 10 and 5 basis points respectively

+ China vowed to curb influence of tech companies and root out corruption tied to disorderly expansion of capital 

+ China’s GDP grows 8.1% YoY in 2021, fastest in nearly a decade 

- China’s factories face ‘rather large’ downward pressure in the 1st qtr: official 

+ China’s GDP per capital reaches US$12,551 in 2021, overtaking global average GDP per capital 

+ Chinese yuan reached its highest level of popularity in cross-border payments since 2015

+ China handles US rate hikes better with stronger yuan, financial opening-up: forex regular 

+ Guangdong Province marks milestone as GDP reached 12.4 trillion yuan or US$1.95 trillion in 2021 

+ Beijing and Shanghai bother record per capita disposable income of >70,000 (US$11.033), highest in nation 

+ Shanghai becomes 2nd Chinese city after Beijing with annual GDP surpassing 4 trillion yuan

+ China’s SOEs revenue grew 19.5% to 26.3 trillion yuan (US$5.72 trillion) in 2021, reaching record high 

+ China moves swiftly to expedite infrastructure projects amid economic pressure 

+ China’s direct outward investment hits US$145bn across all industries in 2021, YoY increase of 9.2% in dollar terms

+ China top regulators step up regulations on online platform to ensure sound development  

+ China cellphone shipments rose 13.9% in 2021 to 351m units, with rapid growth in shipments of 5G devices 

+ China’s population reaches 1.41bn end 2021, with 10.62m newborn babies 

+ China developed C919 aircraft deliveries expected to take off in 2022  

+ China reported first official Iranian oil imports since Dec 2020 

+ CNNOC said free cash flow and net output both hit historical highs in 2021

+ Fosun Pharmaceutical on course to produce cheap version of Merc Covid pill, deal struck by US-backed agency 

+ Chinese test kit suppliers are working overtime to expand production in response to surging demand from overseas 

+ Evergrande’s restructuring wants to separate offshore assets and sell them to pay off foreign debt 

+ Country Garden raising US$500m from sales of convertible bonds 

+ China Merchants Bank-backed SPAC Aquila Acquisition Corp applied to list in HK, the first company to do so

+ Greater Bay Area launched its first cross-border e-commerce China-Europe freight train with special purchased for  2022 Spring Festival 

- HK govt expected to record a budget deficit of HK$25.2bn for fiscal year ending March 31, about 75% less than forecast 

+ Taiwan Dec export orders hit record high, rose 12.1% YoY, govt warned of supply chain uncertainty 

+ Japan’s exports and imports both reached record highs in Dec on surging energy prices and weaker yen 

- Tokyo hits record 10,000 new Covid-19 cases, Japan exceeded 50,000 cases for the first time 

- Toyota production in Japan hit by parts crunch from Covid-19 

- Japan’s GDP per capita will fall behind South Korea in 2027 and Taiwan in 2028

- Sony shares plunge close to 10%, biggest drop since 2020 after Microsoft’s deal to buy Activision 

- Russian proposed to ban on use and mining of cryptocurrencies 

+ Russia’s gold and foreign currency reserves surged by US$77bn to total holding reaching record US$638.2bn 

+ Russia’s MC-21 airliner is now certificated to fly to challenge Airbus and Boeing 

- Crude hits 7-year high on low supplies 

- Bitcoin had fallen more than 50% form record high, wiped out >US$600bn in market value, >US$1 trillion lost from aggregate crypto market 

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- ECB may need to cool pervasive housing bubbles: de Guindos 

- Euro zone consumer confidence falls to -8.5% in Jan 

- Airbus revoked a separate contract Qatar order for 50 smaller A321s as rift widens  

+ Airbus signed MOU with Chengdu and Tarmac Aerosave for first sustainable aircraft lifecycle service centre in China  

+ Europe sales of EVs overtake diesel for the first time 

+ German 10-year bond yield trades in positive territory first time since May 2019 

+ German govt expects inflation to reach 3.3% on average in 2022 

- German natural reserves fallen to historically low levels 

+ Germany wants to attract 400,000 qualified workers from abroad each year to tackle labour shortages 

+ UK PM announced end of Covid-19 measures including mandatory face masks, no longer advising ppl to work from home 

- UK inflation rises to highest in nearly 30 years

- UK govt plans to tighten rules on cryptocurrency advertising to protect public from misleading promotions 

- France TotalEnergies to withdraw from Myanmar, the latest Western firms to pull out

- Credit Suisse chairman quits over Covid breaches 

+ Morocco signed an accord with China to join Belt Road Initiative (BRI) implementation, first North African country to do so  

- India PM Modi said all nations should unite in tackling the threats posed by cryptocurrencies 

+ South Korea unveiled US$12bn budget to cushion blow of Covid curbs 

+ South Korea’s economy likely accelerated in last qtr, buoyed by strong exports and investments 

- Indonesia’s monetary policy rate to rise by at least 50bps this year: Fitch Solutions and Maybank

+ Indonesia to partner with Foxconn to support development of EVs in SEA 

+ Indonesia will introduce new tax breaks on property and car sales to accelerate tis economic recovery from pandemic 

- Indonesia’s largest IPO Bukalapak has lost more than half its value since raising US$1.5bn on IPO Aug 21 

- Indonesia court extends Garuda debt restricting by 60 days to verify claims 

+ Indonesia’s parliament passed bill to relocate nation’s capital from Jakarta, to be called Nusantara 

+ Thailand’s Dec exports top forecast with full 2021 growth at 17.1%, highest in 11 years  

+ Thailand to resume quarantine-free travel for vaccinated arrivals in Feb

+ Vietnam 2022 GDP growth to reach 8% with policy support: DBS

+ Laos’ central bank issued licenses to 2 companies to trade in cryptocurrencies

+ Malaysia’s central bank keeps interest rate at record low

+ Malaysia started assessment of potential benefits of central bank-backed digital currency 

+ Malaysia approved and licensed another 2 domestic airline startup to operate

+ Malaysia resumes ticket sales for quarantine-free travel to Singapore

- Genting HK files to dissolve the company after failing to secure funding 

- Sg taking easily 20,000-25,000 infected Covid-19 cases a day in Omicron wave: Minister 

+ Sg non-oil domestic exports rise 18.4% in Dec, above forecasts 

+ Sg first SPAC VTAC makes market debut 

+ Sg REITs double their overseas investment to US$12bn 

- Sg to shut down cryptocurrency after marketing clampdown 

- MAS: trading cryptocurrencies is highly risky and not suitable for general public

- Sg-based cryptocurrency exchange crypto.com hacked, affected >400 users 

+ Singtel and Grab each bought 16.3% stake in Indonesian bank 

+ Sg eases some testing rules for vaccinated travellers 

Contribution by Derek@valueinvestments chat group. Thank you.

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