Wolf Money(world market review 20-26 June 2022)

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Preecha Thaothong Thailand 1948 

Temple Interior circa 1975 

Collection of National Gallery Singapore 


Market Summary 20-26 June 2022

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+ US economy will ‘narrowly avoid’ recession in 2022 and 2023 as Fed implements rate-tightening to curb inflation: IMF

+ US all 34 banks passed 2022 stress test, remained above minimum capital requirement: Fed 

+ US central bank’s balance sheet should be “roughly” US$2.5 – US$3 trillion lower compared to current situation, down to size Fed could conduct monetary policy: Powell 

- US gas-tax holiday is certainly “worth considering” as Americans have been burdened by record-high gas prices: Yellen 

+ US inflation to fall close to target of 2% in next years: Powell 

- US existing home sales down 3.4% in May vs previous mth and 8.6% annually 

- US has not seen full effect of China lockdowns: Powell 

+ Biden to visit Saudi Arabia to ask for increase in oil production 

+ US govt is moving forward on China tariffs, Biden to consider possible decisions 

- US services sector activity at 5-mth low at 51.6 in June vs 53.4 in previous mth 

+ Powell: stablecoins should be regulated at federal level 

+ US oil inventories rise by 5.6m barrels: API 

+ US senate passed bipartisan gun safety bill, breaking nearly 3 decades of inaction 

- FDA ordered Juul to stop selling e-cigarettes in US 

- Blackstone-Led Gp provides US$5bn of debt to help fund leveraged buyout of software maker Zendesk 

- Tesla’s Texas, Berlin factories losing billions of dollars due to shortage of batteries and China lockdown: Musk 

+ Apple seeks automotive software engineers in Beijing, Shanghai and Shenzhen, indicates CarPlay push in China 

- Nike latest brand to leave Russia permanently 

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+ China is working on improving its openness to exterior and welcomes any foreign investments that would aid development: Xi

+ China’s core AI industry exceeded US$59.74bn, related enterprises exceeded 3000, smart chips, open-source frameworks technology achieve major breakthrough: minister  

+ Chinese cities rushed to issue local govt bonds under central govt guidelines, Shanghai quota expected to se 46% YoY increase 

+ China mulls extending EV tax break to help Covid-hit sector 

+ Beijing Stock Exchange welcomes 100th listed firm this week 7 mths after opening 

+ Shanghai total cash supply from June 1 to 5 increases nearly 4 times YoY: central bank

- Chinese imports of LNG from US plunged by 95% between Feb and Apr YoY as it ramped up purchases from Russia  

+ China resumed more int’l flights as Covid curbs ease 

+ Chinese property developers in 3rd and 4th tier cities encourage buyers to pay down payment with wheat and garlic 

+ Country Garden announced US$441m bond buyback, 60% of outstanding principal on an offshore due in July 

- China’s trust industry profit decline 31% to US$1.85bn in Q1, operating revenue down 28% YoY  

+ China’s costal provinces to push for sustainable fisheries development 

- China demand for electricity in many provinces set new records at 844m kilowatts amid searing heat and robust factory activity in June   

+ China completed building world’s largest 24,000-TEU container ship by CSSC in Shanghai 

- China’s nearly 80% Logistics firms report falling profits by up to 30% in first 5 mths: survey 

+ TikTok’s Chinese Twin wins right to stream FIFA world cup, it’s revenue on track to triple to US$12bn 

+ HKMA steps up purchases of its local dollar to defend currency peg as faces capital outflows 

+ HK still an IPO magnet for global firms, China startups: UBS 

+ HK audit regulator in talks with Beijing to inspect mainland firms 

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- BoJ will not hesitate to implement further monetary easing in order to maintain stability of financial system, timely recovery

+ Japan’s inflation remains at 2.5% in May at 7 years high 

+ Japan’s composite output index rose by 0.9 pts in May to 53.2 in June

- Sony steps up image sensor tech, targeting 60% market share, hold off rapid gains by Samsung and other players 

- Nikkei poll: 46% in Japan want BOJ to halt ultraloose policy 

- Russia closer to default with bond deadlines looming due to cutting off avenues to transfer cash 

+ Bank of Russia to consider further lowering key rate, ruble hit 7-year high vs USD

- Russia might completely cut gas to Europe: IEA 

+ Russia commodities traders replaced Switzerland with Dubai 

+ Russia becomes China’s top oil supplier: media 

- Canadian inflation hits 7.7% YoY in May, highest since 1983 

- G7 to ban imports of Russian Gold to tightening sanctions 

- WHO considers declaring monkeypox ‘emergency of int’l concern’ as Asia reports more imported cases 

+ BRICS to expand green energy, digital cooperation to tackle climate change 

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- Europe is now in its worst corporate-bond selloff in decades, surpassing 2008 GFC

- ECB likely to hike key interest rates by 25 basis pts in July, 50 basis points in Sept: Kazimir 

- ECB: gradual rate hikes to be appropriate after Sept 

- Eurozone’s PMI composite output index down to 51.9 in June to 16-mth low: S&P Global 

+ European 2/3 companies operating in China saw revenues grew 24% YoY in 2021 

+ EU says Russian food and fertilizer are free from sanctions 

+ EU country to launch test route for Ukraine grain

- Germany producer price inflation rose at record pace in May to 33.6% YoY following April’s 33.5% increase 

- German business climate index fell to 92.3 in June from 93 in May, below expectations: Ifo

- Germany plans to nationalise parts of Nord Stream 2 gas pipeline: report 

+ BMW, Volkswagen announced plans for new factories and expanded production in China 

- UK inflation increased by 9.1% YoY in May, highest in 40 years; “worse is yet to come”: BoE  

- UK retail sales volume declines 0.5% in May compared to previous mth 

- Spain’s La Liga terminates broadcasting deal with Chinese partner after Wuhan DDMC’s Super Sports missed US$47m payment 

+ Norway plans to increase gas deliveries to EU 

- Demark dozens of companies face closure if energy supply is reduced: industry gp 

+ Ukraine will “very likely” become EU member: Biden 

- Israel to dissolve parliament and call 5th election in 3 years 

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- Australia central bank says more rate hikes will be needed 

+ India says ready to help Sri Lanka in quick economic recovery 

- Sri Lanka in talks with IMF as govt moves to cut President’s powers, halted all non-essential govt services, beginning a 2-week shutdown to conserve fast-depleting fuel reserves 

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- indonesia’s rate should rise sooner rather than later: HSBC

+ Thailand declared whole nation a green zone, allowing full-scale resumption of business and other activities, lifts mandatory mask rule for both indoor and outdoor

+ Thailand’s reopening and push for economic recovery expected to generate double-digit growth in employment rate 

- Vietnam’s first metro line Hanoi Metro starts running at a loss 

+ Malaysia plans record RM77.3bn in subsidies and cash aid to help rising prices, largest amount in history 

- Malaysia Carsome to delay its US-Singapore dual listing amid valuation concerns 

+ Sg factory output grows 13.8% in May as semiconductors productions surges 

- Sg headline CPI rose to 5.6% YoY in May, core inflation up 3.6%, highest in >13 years, led by rising prices of food and utilities

+ Sg announced S$1.5bn support package to help lower-income households 

+ Sg commences first renewable energy electricity import up to 100 megawatts from Laos through Thailand and Malaysia  

- Sg COE premiums for larger cars stay above S$100,000 for 2nd consecutive bidding exercise 

+ Sg expect to get 1000 jobs created by chip giant GlobalFoundries with new plant on track to open in 2023 


Contribution by Derek@valueinvestments chat group. Thank you.

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Disclaimers 

All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for education only. Buyer beware,do you own due diligence.

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