Wolf Money(world market review 10-16 May 2022)

 

Koeh Sia Yong Singapore 1938

Studying at Equator circa 1966

Collection of National Gallery Singapore 

Market Summary 10--16 May 2022

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- US inflation for all items saw annual increase of 8.3% in April 

+ Biden says White House could drop Trump China tariffs to lower consumer prices 

- Powell: Hard landing is possible due to factors outside Fed’s control

- Powell: Appropriate for Fed to raised interest rates sooner, bringing inflation back to desired 2% level might include some pain 

- US consumer confidence fell 9.4% MoM in May 

- US producer prices jump 11% in April YoY, indicates high inflation will remain a burden for consumers and businesses 

- US consumer sentiment declined early May to lowest since 2011 to 59.1 from 65.2 in April 

- US 10-year Treasury yield climbs above 3% after CPI report 

+ US mortgage rates jumped to 5.3%, highest since 2009 

+ US export prices index advanced 0.6% in April, import price index remained unchanged as petroleum costs drop 

- US proposed a chip alliance with South Korea, Japan and Taiwan to prevent China from gaining dominance 

+ Biden admin cancelled planned oil and gas leases sales in Gulf of Mexico and Alaska, citing a lack of industry interest in drilling

+ Biden working on a “comprehensive framework” for reducing market risks of digital assets such as stablecoin: Yellen 

- Goldman Sachs officials reached US$79.5m shareholder settlement over 1MDB scandal 

- US House passes US$40bn bill to bolster Ukraine against Russian invasion 

- Airlines pressing US to lift 16-mth-old rule testing requirements 

+ Google announced new cheaper smartphone with Pro headphones and first Pixel smartwatch 

- Elon Musk puts his Twitter deal on hold over fake account data 

+ Tesla’s Shanghai unit export first batch of EVs after work resumption 

- Ford abandoned plans for EV production in India 

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+ China fiscal and monetary policies should prioritise employment and stabilise the overall economy: state council 

+ China’s FDI up 26.1% in Jan-Apr, reaching US$74.47bn 

+ China’s CPI rise 2.1% in April, fastest annual pace in 5 mths 

+ China to offer subsidies, tax breaks and easier loans to spur job prospects for record number of new graduates 

+ COMAC completes first test flight of first C919 aircraft to be delivered, to cost twice the expected price, filing shows 

+ China to launch pilot projects for integration of domestic and foreign trade by removing institutional barriers 

+ China’s stock market saw considerable capital inflows in April 

- China 4th largest property firm by sales Sunac missed a US$29.5m interest payment on US dollar bond  

- Chinese developer Shimao sparks bond selloff by seeking 1-year extension 

- China nearly 73,000 tech workers were let go between July and mid-April alone: TechNode 

+ China mapped out measures to develop US$3.28 trillion bioeconomy by 2025

+ China to step up financial support for clean, efficient use of coal 

+ China has reduced carbon intensity by 34% in past decade, will further boost green development 

- China would strictly limit unnecessary travel outside the country as part of its Covid-19 response  

+ China accounted for 18% of global economy in 2021, rising from 11.4% in 2012 

+ Beijing-Guangzhou high-speed train to reach 350km/h, 5th line in China to operate in such speed 

+ Alibaba opened first data centre in Thailand to tap on growing cloud business 

- Luckin Coffee denied its planning for HK IPO 

- HKMA defends local dollar in first currency intervention since Oct 2020 

+ Macau mulls casino tax cut as gaming revenue plummets 

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- Japan’s FY2021 current account surplus shrinks 22% on fuel price rise to US$97.6bn 

+ Japan to scrap Covid-19 testing requirements for vaccinated with 3 doses 

- SoftBank posted net loss of US$12bn in fiscal 2021 

+ Honda’s Q4 revenue of fiscal year 2022 saw annual rise of 6.95% to ¥3.87 trillion 

+ Toshiba net sales in fiscal year 2021 up 9.3% to ¥3.34 trillion

+ Nissan reported first full-year net profit in 3 years 

- Russian inflation jumped to highest level since 2002 to 17.8% in April 

- Russia to probe US biological activity in Ukraine: UN envoy

- Putin, security council discussed the possibility of Sweden and Finland’s joining NATO

- OPEC revised down global oil demand growth in 2022 at 0.3m bpd 

- World oil demand growth to slow to 1.9m bpd in Q2: IEA

- Crypto market has been wiped out >US$200bn market value in a day

- Bitcoin recovering from 16-mth low after volatile week dominated by collapse of TerraUSD stablecoin 

- Crypto exchanges are delisting Terra tokens after meltdown 

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- Eurozone industrial production declined by 1.8% MoM in March

- Euro tumbles further against US dollar reaching 5-year low 

+ EU to spend additional €195bn next 5 years for energy independence from Russia 

+ EU to consider allowing it members to limit price of gas within their territories 

+ EU is top destination for China’s overseas M&A in Q1: E&Y

+ ECB to stop buying bonds in July: ECB Vice President 

- EU in favour of introducing a ban on large-scale trading of stablecoins 

- EU to allocate €500m military aid to Ukraine 

- Europe surpasses 2m Covid-19 deaths: WHO 

- EU will not renew Covid-19 state aid program after its expiry date on June 30

+ German passed new energy bill to speed up expropriation 

- Germany not ready for Russian gas embargo: official

+ Deutsche Telekom Q1 revenue amounted to €28.02bn, up by 6.2% YoY 

+ UK’s GDP grew by 0.8% in Q1 

- UK trade deficit up by £14.9bn to £25.2bn in Q1, largest since records began in 1997

- UK imposed sanctions on Putin’s ‘inner circle’

+ Switzerland releases CHF3bn of frozen Russian assets 

- Sweden will decide to join NTAO at govt meeting on Monday, with an official application: report 

- Finland announced the country is planning to seek NATO membership without delay

+ Bulgaria reached deal to buy LNG from US, deliveries will begin in June, lower price than it paid for natural gas from Russia

- Turkey not positive on Sweden, Finland NATO membership: Erdogan 

- Ukraine refused to reopen a key transit point that pumps fuel to Europe 

+ Ukraine exported >1m tonnes of grain in April despite war 

- Ukraine says will stop transporting some Russian gas 

- Central Africa’s regional banking regulator reminds states of its ban on cryptocurrencies 

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- India consumer price inflation hits 8-year high in April to 7.79% on food, energy costs 

- Indian rupee hits new low for 2nd time this week, stocks tumbled to its lowest in 2 mths 

- India, world 2nd largest wheat producer prohibits wheat exports with immediate effect to calm local prices  

+ South Korea drafted US$46bn budget to help Covid-hit businesses 

+ Hyundai expected to announce US$7bn Georgia massive EV plant during Biden visit next week 

- North Korea ordered all cities to lock down after confirmed its “first Covid” case 

+ Saudi Aramco becomes world’s most valuable company, dethroning Apple

+ Emirates plans to use projected profit from this fiscal year to pay back Dubai govt nearly U$4bn lifeline during pandemic 

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- Indonesia’s inflation jumps to nearly 3-year high in April at 3.47% YoY, GDP growth steadied at 5% in Q1 

+ Joko Widodo met Elon Musk in Texas to discuss potential investments and tech in Indonesia 

+ Thailand’s economy likely grew modestly in Q1 thanks to robust exports and easing of Covid-19 restrictions 

+ BoT continued to ease forex regulation to stabilise exchange rate in longer term

- VinFast likely to postpone US listing again until next year on market uncertainty 

+ Vietnam opens 31st SEA Games 

+ Marcos Jr elected as president of the Philippines 

+ Philippines economy grew 8.3% in Q1, above estimated of 6.8%

+ Malaysia’s Q1 GDP at 5%, up from 3.6% in previous qtr, beats forecasts 

+ Malaysia PM invited US Fortune 500 firms to invest or increase investment, mainly in digital economy, green tech and EV  

+ Sarawak in talks with Norway to form sovereign fund 

- Sg tourism and aviation industries allow to temporarily hire more foreign workers as firms face manpower crunch 

- Sg transfer of residential properties into living trust will be subject to ABSD of 35% 

- Sg life insurance new business premiums dips by 2% to S$1.21bn in Q1

+ Sg jobs ads, Malaysian candidates surge as borders reopen

+ Nio to kick off trading in Singapore on May 20

+ Grab in talks to buy majority stake in Malaysia’s 6th largest banking Gp AMMB

+ Lazada gets US$380m from Alibaba for SEA expansion

+ Li Ka-Shing’s family office joins Singapore expansion wave 

Contribution by Derek@valueinvestments chat group. Thank you.

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