Wolf Money(world market review 21-27 March 2022)

 

FX Harsono Indonesia 1949

Paling Top (Top Most) circa 1975, remade 2006

Collection of National Gallery Singapore 

Market Summary 21-27 Mar 2022

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- Fed signalled ready to take more aggressive action to bring down unacceptably high inflation, including 0.5% pt interest rate hike at next policy meeting in May

- Powell stated previous inflation projects fell apart and Fed may decide to move more quickly to address the situation 

- US Composite PMI Output Index, tracks manufacturing and services sectors rose to 8-mth high in March 

- US consumer confidence (MCSI) dropped from 62.8 in Feb to 59.4 in March 

- US manufacturing PMI reached 6-mth high in March: IHS Markit in week ending March 19

+ US announced funding opportunity of US$2.9bn earmarked by Transportation Dept for major infrastructure projects this year 

+ Americans filing new claims for jobless benefits hit lowest level since 1969 

- US Treasury Dept warmed gold-related transactions involving Russia may be subjected to sanctions by US authorities 

- US bank profits could be hit by Russia-linked asset swings 

+ US will reinstate exemptions on 352 out of 549 categories of Chinese imports: USTR 

- US will ‘absolutely’ enforce export controls if Chinese firms send semiconductors to Russia made with US technology: commerce secretary

- Yellen: it would not be appropriate to impose sanction on China as Russia’s partner over conflict in Ukraine 

- Powell: current market regulations were not built for digital currencies 

+ White House hosts summit with oil and banking CEOs 

- US crude oil inventories down by 2.5m barrels to 413.4m in week ending March 18: EIA

+ US will supply up to 15bn additional cubic meters of LNG to EU by end 2022: FT

+ US judge ruled China’s ZTE be allowed to end its 5-year probation from 2017 guilty of shipping US tech to Iran n North Korea 

- US FCC added Russia’s Kaspersky, China telecom firms to national security threat list 

+ Apple working on hardware subscription service for iPhones 

- Tesla officially opened its European Gigafactory in Germany and started delivering the first 30 Model Y cars 

+ SpaceX planning to carrying out first orbital flight test for its Starship rocket in May: Musk 

+ Pfizer to deliver up to 4m doses of Covid-19 oral treatment, paxlovid to 95 low- and middle-income countries 

- General Motors to pause production at Indiana plant for 2 weeks next mth due to chip shortage 

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+ China further shortens negative list which foreign investment is restricted, encourages bigger market access for all

+ China issued notice requiring local authorities to mull over an “all-out effort” to guarantee harvest of summer wheat and expand plantation of soybeans 

- China rate-earth firms’ capacity cut at least 25% vs last year after major border gates with Myanmar shut down 

- China developers bracing for one of the worst earnings seasons in more than a decade 

+ China kept benchmark interest rate for corporate and household lending unchanged as expected 

+ China to roll out measures to help firms cope with external uncertainties, to exempt 3% VAT levied on some small firms

- China foreign direct investment in manufacturing sector fell 4.6% in 2021 from 2019 levels: ministry 

+ Chinese firms revealed plans to list on the Swiss Stock Exchange as country pushes for more overseas IPO

+ China stands ready to work with EU to push for implementation of China-EU Comprehensive Agreement 

- China Eastern halted all Boeing flights after Boeing 737 crashed with 133 passengers on board, potentially of grounding >1000 Boeing jets 

+ Sinopec plans its biggest capital expenditure in history, recording best profit in decade, expects to spend US$310.1bn in 2022

+ China issued medium-and long-term plan for development of hydrogen energy (2021-2035) to target green development

+ China Coal Energy Ltd reported biggest profit ever in 2021, net profit to shareholders more than doubled to US$2.1bn 

- China 9000 theatre performances to be cancelled or postponed due to from mid-Feb to mid-Mar Covid-19 resurgence  

+ Tencent’s total revenue for Q4 fiscal year 2021 rises 8% to 144.2bn yuan or US$22.6bn 

+ Alibaba expanded its hare buyback program to record US$25bn 

+ Nio’s total revenues surged 49.1% YoY to reach 9.9bn yuan in Q4 or US$1.55bn 

+ Xiaomi Q4 gross profit up 29.4% to hit 14.65bn yuan or US$2.3bn 

- Evergrande warned investors to “exercise caution”, announced delay release of result 2021 audit, after trading halt in HK

+ Luckin Coffee Q4 revenue up 80.7% YoY to US$381.7m, outlets in China >6000, surpasses Starbucks  

- Sunac China seeks 2-year extension on US$627.85m bond 

+ China central bank issuance of 5bn yuan (US$786.1m) worth of bill in HK was 4.4 times oversubscribed  

+ HK will scrap flight bans on 9 countries including US and UK, reduce quarantine time for arrivals form 14 to 7 days

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+ BOJ governor reiterated a weak yen benefits Japan’s economy 

+ Tokyo CPI expanding by 1.3% in March due to higher energy costs 

+ Nikkei extended its rally to 9 days, longest since Sept 2019 

+ Japan land prices rebounded after falling for the first time in 6 years

- Toshiba shareholders voted down proposal to split company into 2 public entities, major win for foreign activist shareholders 

- Russia moves to seek payment in rubles for natural gas sold to “unfriendly” countries 

+ Russian Central Bank to buy gold form credit institutions at fixed price 

- Russia is due to return hundreds of aircraft leased from overseas next wk, lessors are worried they won’t see the planes 

- Russia central bank imposed restrictions on movement of funds to countries that introduced economic sanctions 

- Russian warned potential consequences of refusing to buy gas in rubles cold lead to global crisis 

+ Russian stocks rebounded sharply after markets reopened, trading was suspended since Feb 28 

+ Gazprom continues to supply Europe with gas via Ukraine, received requests for 108m cubic meters of gas for March 22 

+ Russia looking to China, India, Iran and Turkey as alternatives to the exodus of western brands 

+ Canada to scale up its oil export to make up for oil not coming from Russia 

- Argentina confirmed US$45bn loan approved by IMF

- Precious metals declined on Friday with Palladium tumbling >6% at one point 

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+ EU, US strike LNG deal as Europe seeks to cut dependency on Russian gas by 2/3 this year 

+ European Commission will receive mandate for joint energy purchase to allow EU to manage its energy supplies better 

+ Eurozone manufacturing PMI fell to 57 in March from 58.2 in Feb to 14-mth low: IHS Markit 

- Europe major clearing house blocked Russian holders, investors of European stocks and bonds from receiving their money 

+ EU relaxes state aid rules to allow member states to grant limited amounts of aid to companies to curb impact of sanctions 

+ ECB on time and on budget with digital euro development and implementation: Lagarde 

- Eurozone consumer confidence fell further in March

- EU to unveil digital markets act to limit market domination of tech giants 

- German producer index for industrial products surged by 25.9% in Feb YoY

+ Germany unveiled €1.3bn package to ease burden of rising energy prices 

- Germany’s business climate index at 90.8, far below Feb 98.5

+ Volkswagen announced 5-year US$7.1bn investment to boost vehicles portfolio, research, development, manufacturing in North American  

+ Volkswagen plans to build a battery cell worth €7bn factory in Spain ready in 2026

- UK Consumer Price Index increased to 6.2% in Feb YoY, another multi-decade high 

- UK producer prices up by 10.1% in the 12-mth to Feb 

- UK added ban on transactions with Russian gold 

+ Italy ready to fund up to 40% of Intel’s total investment to build a chip packaging and assembly plant in the country 

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+ India has bought more Russian oil despite US sanctions 

- Lotte Gp is set to liquidate its China HQ after many of its subsidiaries downsized presence in China 

- Saudi Aramco petroleum storage hit by Houthi attack, fire erupts 

- Qatar said replacing Russian natural gas on European market is “not practically possible”

+ Iran and Russia developing SWIFT alternative to connect their interbank messaging systems to bypass Western sanctions 

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+ Indonesian govt not ruling out use of crowdfunding to raise funds for development of planned new capital Nusantara 

+ Indonesia VAT hike to go ahead as planned amid surging prices, to raise to 11% this year and 12% three year later form 10% 

+ Indonesia GoTo Gp has received sufficient investor orders for its IPO to raise at least US$1.1bn 

- Thailand govt decided to ban use of cryptocurrencies as mean of payment for goods and services 

+ Indonesia says it will not exclude Russia from G-20

+ Thailand’s exports beat expectations by growing 16.2% in Feb

+ Thai govt to fully support production and sale of EVs, aiming to become regional hub of EV industry 

- Malaysia govt to review petroleum subsidy mechanisms to ensure directly benefit to the needy 

+ Malaysia CPI increased by 2.2% in Feb YoY, driven mainly by increase in food inflation

+ Sg will allow fully vaccinated travellers and non-vaccinated children to enter quarantine free 

+ Malaysia should adopt crypto as legal tender: communication ministry 

+ Sg relaxes Covid measures further, musk rules, group size cap, border curbs eased 

+ Sg and Malaysia land border to reopen without testing or quarantine for all modes of travel from April 1

+ Sg factory output rebounded sharply to 17.6% in Feb, highest level in 8 mths 

- Sg Feb inflation rises to 4.3%, beating market expectations of 4.2% 

+ Sg M&A activities in Q1 increased by 13% YoY to US$28.6bn

+ Sg extended foreign worker levy rebate for construction, marine shipyard sectors extended still June 

- Sg investment banking fees decline 15.6% to US$221.3m in Q1: Refinitiv

+ Sg homes to see firm rents, more leasing deals when border with Malaysia reopens further 

+ Dyson to invest S$1.55bn in Singapore business activities over next 4 years

Contribution by Derek@valueinvestments chat group. Thank you.

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