Wolf Money(world market review 11-17 April 2022)

 

Tan Swie Hian Singapore 1943

Portrait of Lu Xun circa 1943

Collection of Singapore Art Museum 

Market Summary 11 – 17 April 2022

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- US inflation reached new record high of 8.5% in March before seasonal adjustment, highest in 40 years 

- White House says expects inflation to be ‘extraordinarily elevated’ in new report 

+ US net foreign inflows into Treasuries rose 4th straight mth in Feb of US$75.3bn: treasury dept data

- Fed expected to deliver 2 back-to-back half-pt interest rate hikes in May and June: economists poll by Reuters  

+ Fed could decide reducing the size of balance sheet in May with reduction in June: Board of Governors member Brainard 

- US small business confidence fell 2.4 pts to 93.2 in March, 3rd mth reading below 48-year average of 98   

- US budget deficit at US$192.7bn in March, monthly receipts amounted to US$315bn, total amount outlay US$508bn 

+ US industrial production increased 0.9% in March vs Feb 

+ US business inventories rose 1.5% after climbing 1.3% in Jan, besting expectations 

- US not planning to return assets confiscated from Russian businessmen: National Security Advisor 

+ US consumer credit and debit card spending so far up 15% in 2022: BofA 

- Goldman Sachs net revenue down by 27% to US$12.93bn, Morgan Stanley net revenues down nearly 6% to US$14.8bn, JPMorgan net revenue of US$8.3bn, down by 42% in Q1

+ Boeing reported gross aircraft orders stood at 53 in March compared to 37 in Feb 

+ US oil inventories jump by 7.76m barrels 

+ US revenues from internet advertisements soared by 35.4% in 2021 

+ Google to invest US$9.5bn in US data centres 

+ Tesla will solve self-driving issues by end this year: Musk 

+ Elon Musk offers US$43bn to buy Twitter and take it private 

- Meta plans to charge creators 47.5% for transactions on its virtual reality platform Horizon Worlds 

+ Meta planning to deliver the first generation of its augmented reality (AR) glasses in 2024

- Amazon in not close to accepting crypotcurrencies as means of payment on its platform: CEO

+ BlackRock revenue increased by 7% to US$4.7bn in Q1 

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+ China cuts reserve requirements by 25 basis points for banks, releasing about 530bn yuan in long term liquidity

- China expected to report sharp deterioration in economic activity in March as Covid bites, but solid Q1 growth 

- China’s producer price index grew 8.3% YoY as oil prices bite 

+ China’s exports rose 15.7% to US$276.1bn YoY in March despite Covid lockdown, while imports flat 

- China’s trade surplus shrinks to 300.6bn yuan in March from 738.8bn yuan previous mth 

+ China called for stabilization of employment and price levels to keep economy running with appropriate range 

- China’s GDP growth seen slowing to 5% in 2022 on Covid hit: Reuters poll

- Shenzhen set GDP growth target of 6% in 2022 after crossing threshold of 3 trillion yuan (US$471bn) last year

+ China’s former central bank chief: SWIFT not irreplaceable, but substitution requires considerable preparations 

+ China to promote steady growth in consumption and foreign trade, stabilise economic fundamentals  

+ China Russia Jan-March trade rises 28% to US$38.2bn 

+ China Eastern Airliners restarted using Boeing 737-800 jetliners for commercial flights after March crash 

- China not planning to release massive reserve of grain to provide relief to Western nations: local media 

- Shanghai reported record number of symptomatic Covid-19 cases on Sat, other areas across China imposed restrictions 

+ China Shenzhou-13 crew safely returned to Earth after epic 6-mth orbit trip 

+ China’s regulator said Didi delisting does not concern other US listed Chinese firms 

- Didi sets shareholder meeting on May 23 to vote on US delisting plans 

+ Foreign companies expected to remain in China: World Bank 

- CNNOC reportedly preparing to exit operations in US, UK and Canada 

+ CATL to join 2 state-owned Indonesian firms to develop an EV battery integration project with investment of US$5.96bn 

+ HK confirmed to ease some Covid-19 restrictions from April 21

+ TSMC reported net income annually surged 45% to record US$7bn, diluted earnings per share of US$0.27 

- Taiwan’s Nanya to put on hold its plans for US$10bn chip plant for >6 mths 

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- Japanese Yen hits 20-year low against dollar

+ BOJ to continue with monetary easing

- Japan approved new anti-Russia sanctions, freezing assets of companies and hundreds of individuals 

+ Japan’s greenhouse gas emissions fall to lowest on record 

- Toyota to cut output by 10% in May due to supply chain instability 

+ Honda to invest US$40bn over next decade on EVs 

- Russia wants to expand ruble use for energy exports, no deadlines have been set 

+ Russia’s foreign obligation totalled US$453.5bn as of April 1, lowest level in 13 years 

+ Russia says ready to sell oil to friendly countries in any price range 

- Russia warns of nuclear deployment if Sweden and Finland join NATO 

+ Russia will not nationalise foreign firms’ assets: top senator 

- Russian oil supply to fall by 3m bpd from May: IEA 

+ Russia, China to boost freight rail traffic as demand for cargo transit services growing strongly 

- 40m tons of coal will need to be sourced from elsewhere after ban on Russian coal 

+ IEA details plan to release 120m barrels of oil over 6 mths to cool prices 

- Global growth optimism at all-time low: fund manager survey

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- Eurozone inflation rate expected to hover around 6% in 2022 and 2.4% in 2023: ECB survey 

+ EU foreign ministers have not agreed on ban on Russian oil and natural gas imports 

- EU new sanctions on Russia to target Sberbank

- Germany’s inflation hits highest point in >40 years in March at 7.3%

- German revised GDP forecast from 4.8% to 2.7%: German economic institutes 

- Germany govt proposed legislative amendments could see energy firms put under temporary management or nationalised

- UK inflation climbs to 7% in March YoY, highest in 30 years 

+ UK jobless rate fell to 3.8% in 3 mths to February below pre-pandemic rate  

- French inflation expanded by 5.1% in March YoY 

- Italy sovereign debt set another record to nearly €2.74 trillion: central bank

- Spanish inflation rose to 9.8% in March, highest in 37 years driven by energy prices

- Turkey’s inflation rate rose to 61% 

+ Hungary says it’s ready to pay for Russian gas in rubles

- Ukraine economy to contract >35% this year: IIF 

+ Ukraine’s EU path with unprecedented speed: envoy   

- Belarus banned EU registered trucks from entering country 

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 - NZ central bank raises benchmark rate by 50bp to 1.5%, biggest rate hike in 20 years 

+ Indian set to increase its purchases of coal from Russia, imports of coal reportedly surged to 2-year high 

- India economic forecast lower by world bank, as well as the whole South Asian region 

+ South Korea plans to phase out all Covid-19 restrictions, except mask mandate 

- Sri Lanka to close stock market for a week to prevent market collapse as economic crisis deepens 

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+ Bank Indonesia signalled to keep benchmark interest rate steady at 3.5% 

- Thailand growth is a bigger worry than inflation for now: Bank of Thailand  

+ Phuket made >3bn bath in revenue from tourist spending in Songkran festival: tourism authority 

+ Vietnam plans to launch of national container shipping operation at investment of US$1.5bn to counter rise in fright costs 

- Malaysia EPF received 5.3m applications worth RM40.1bn for special withdrawal facility as of April 14 

+ Sabah welcomes its first int’l flight after 2 years

- Sg sees consumer price index-all items inflation projected at 4.5% to 5.5% in 2022 

+ Sg Cabinet ministers chosen Lawrence Wong to be the leader of 4G team 

+ Sg economy grew 3.4% in Q1; MTI estimates 

+ MAS takes more aggressive move to tighten monetary policy, raises inflation forecast 

- MAS tightens criteria for family offices to qualify for tax incentives 

Contribution by Derek@valueinvestments chat group. Thank you.

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