Wolf Money(world market review 24-30 July 2022)

 

Cheong Soo Pieng Singapore 1917-1983

Untitled (standing figure) circa 1950s-60s

Collection of National Gallery Singapore

Market Summary 24-30 July 2022

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- US GDP shrinks 0.9% in Q2 after 1.6% Q1 contraction 

- Fed raised interest rates by 0.75% for 2nd straight mth to tackle inflation, signals 3rd hike possible 

+ US personal consumption expenditures price index rose 6.8% in June, biggest 12-mth move since 6.9% in Jan 1982

+ US house passed US$280bn bill aimed at boosting chip production, to compete with China 

+ US unemployment rate remains at 50-year low 

- US President Biden testes positive for Covid-19 again 

- US mortgage rates fall by 32 basis points after negative GDP report and Fed’s latest hike, mortgage demand declines further  

+ US refiners set to post over profit hikes of >600% for the quarter 

+ US became world’s largest exporter of LNG in H1, exports rose by 12%: EIA 

+ US gas inventories rose by 15 bn cubic feet vs previous week to reach 2,416 bn cubic feet 

+ US oil percentage in total exports gas increased fivefold in just 5 years to 5.53%: census bureau data        

+ US shale explorers drilling climbs to level not seen since early pandemic 

+ US will stop tapping its oil reserve and focus on ramping up production 

+ Exxon, Chevron posted record revenue 

- US crude inventories down by 4.5m barrels: EIA 

+ US launches new 5G mid-band wireless spectrum auction 

- US pending home sales falling by 8.6% in June 

- SEC adds Alibaba to list of Chinese firms facing delisting risk 

+ Microsoft revenue up 12% to €51.98bn in Q4 of fiscal 2022 YoY 

- Meta sees first ever quarterly drop in Q2, misses estimates 

- McDonald posted 3% drop in revenue in H1, partly due to exit from Russian market

- Musk files countersuit under seal vs Twitter over US$44bn deal 

+ Alphabet revenue in Q2 totalled US$69.7bn, up by 13% YoY, slowest quarterly growth in 2 years 

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+ China drops GDP target mention, to stabilise employment and prices, maintain economic operations within reasonable range  

+ Xi holds 2-hr phone talks with Biden, 2nd talk since March 

- China to help property developers by issuing 1 trillion yuan in loans for stalled developments: FT 

- China’s defence ministry issues fresh, rare warning in most powerful language over Pelosi’s Taiwan visit

+ China FDI grows at 17.4% in H1 vs capital outflow; major economies South Korea, US and Germany continued to ramp up investments

+ China industrial enterprises’ profits in H1 hit 4.27 trillion yuan, up 1% YoY

+ Yuan outperformed euro by trading volume on Moscow Exchange for the first time on record at US$908m, in 2nd after USD 

+ China approved 20 new coal mining projects to add 125m tons of annual capacity to secure supply 

- China’s dwindling population to see negative growth by 2025: report 

+ China’s C919 nearing certification, having successfully passed test-flight tasks

+ China’s NEV exports more than double in H1 led by SAIC and joined by Great Wall, BYD, Nio and Xpeng 

+ Guangzhou port launched world’s first fully automated river-sea-railway multifunctional dock 

- China’s July home sale plunged almost 40% from a year ago: WSJ

- Country Garden looking to raise HK$2.83bn selling new shares at discount, 870m shares at HK$3.25 a piece 

+ Zhengzhou held meeting with 7 major real estate enterprises to address current difficulties, ensure house delivery

+ China’s new int’l land-sea corridor saw goods transported jump 30% YoY in H1 

+ Hainan on fast track to become consumption-powered free trade port: white paper

+ China’s problematic rural cooperative banks in Henan and Anhui Province started 2nd round of payment for depositors  

- China Q2 smartphone sales fall 14.2% YoY 

+ Alibaba plans dual primary listing in HK to attract more investors from mainland through stock connect 

- Jack Ma plans to cede control of Ant Gp: report 

+ Huawei launched updated version proprietary operating system HarmonyOS 3 to counter US sanctions 

+ Shenzhou-14 crew receives 1st lab module Wentian at China Space Station 

+ Shanghai becomes coffee capital of the world in terms of the number 7857 coffee shops 

+ HK mulls more measures for convenient return of US-listed mainland firms

- HKMA buys HK$1.92bn from market in NY trading hrs to stop local currency weakening and breaking its peg to USD 

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+ Japan-US launch economic dialogue, agree to cooperate on next-gen semiconductors 

- Russia cuts gas further through Nord Stream 1 to 20% of capacity 

- Russia to opt out of int’l space station after 2024 

+ Russia to issue ruble bond in Sept with limited offer 

- Russia halts gas supply to Baltic state, reduces gas flow to EU via vital pipeline 

- Global economy could be hurtling toward one of the sharpest slowdowns in 50 years: IMF

- IMF cuts 2022 global growth forecast to 3.2%, economy at risk of deglobalisation 

+ Bitcoin up nearly 40% from year low in June 

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- Eurozone inflation rose by 8.9%, highest ever recorded 

- Eurozone grows 0.7% in 2nd qtr despite gas crisis, inflation surge

- EU ban on Russian gas impossible, embargo would hurt bloc: Austria 

+ EU eases sanction on Russian oil exports, Rosneft and Gazprom may now be able to ship to 3rd countries 

+ EU announced plan for Russian gas substitute, looking to boost LNG imports from Nigeria 

- Western countries plan to introduce mechanism for Russian oil price cap in Dec 

- EU gas rationing plan won’t succeed: Economist 

- EU gas prices highest since March

- US reaches deal on slashing gas consumption, non-exempted member states will voluntarily reduce usage by 15% 

- Airbus revenue down 10% YoY to €12.8bn in Q2, net income plunged 64% to €682m 

- EU wine harvest under threat as record heat and wildfires hit, output could be remarkably low 

- German inflation down to 7.5% in July, above estimates 

- Volkswagen reportedly preparing to sell its business in Russia 

- Germans waned of toilet paper shortage, reduced supply Russian gas could badly affect production: media 

+ Deutsche Bank’s Q2 net profit up 33% to €1.5bn, highest since 2011

+ British Airway owner IAG ordered 37 A320neo and A321neo jets, with option to purchase additional 50 aircraft from Airbus 

- UK top court turned away Venezuela’s bid to repatriate its own gold 

- UK McDonald’s staple see first price hike in 14 years 

- France’s Total and Norway’s Equinor will sell their stakes in Russian oil project 

+ French-based satellite firm Eutelsat in discussing merger with UK provider Oneweb, could challenge Musk’s Starlink 

- Renault recorded over US$2bn write down on quitting Russia 

+ Ukraine to export 3m tons wheat n other agricultural products per mth through Black Sea ports after UN-brokered deal 

- Ukraine energy giant Naftogaz has failed to make payments on its Eurobonds, requested a 2-year payments delay 

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- Australia’s inflation rises 6.1% in Q2, fastest pace in over 2 decades  

+ India wants to open up lithium mining to allow private firms to extract lithium in quest for EV batteries 

+ South Korea’s economy grew 2.9% YoY in Q2, beats growth forecasts 

- South Korea President promised aggressively cut spending and sell non-core assets at public enterprises 

+ South Korea may possibly overtake Japan to become China’s no. 4 trading partner as Japan decoupling moves with China 

+ Iran’s oil revenue soar by 580% during first 4 mths of Iranian year begins in Mar

- Pakistan army chief seeks US help in quick release of IMF funds 

- Sri Lank limits fuel imports for 12 mths due to foreign exchange shortage, seeks China help with trade, investment and tourism

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+ Jokowi met Chinese President Xi in Beijing, trade and investment the top of agenda 

+ Indonesia to issue “digital rupiah” for use by banks and payment services providers on wholesale level 

+ Indonesia sees more multi-billion EVs industry investments 

+ Indonesia could be the next Mitsubishi Motors new investment destination of around US$667m 

- Indonesia blocks PayPal, Yahoo gaming websites over licence breaches 

+ Thailand central bank likely to hike rate next mth, up GDP outlook: official 

+ Malaysia parliament passed bipartisan bill to ban party-hopping MPs 

+ Malaysia’s net financing grew by 5% in June from 4.5% in May, driven by higher growth in outstanding loans 

+ Malaysia Minister says Indonesia agrees to lift freeze on sending migrant workers 

+ Sg total employment grows, with foreign workers returning after borders reopen

+ SIA soars into black in Q1 with second highest quarterly operating profit, passenger traffic improves 

+ MAS to cut carbon footprint of equities portfolio by up to half by FY2030 

+ Sg 114 shophouses sold for S$938.8m in H1, full-year sales to hit below S$2bn 

+ Sg private property up 3.2% in Q2

+ Sg industrial occupancy rate inches up to 90% in Q2 

+ Sg savings bonds applications for Aug issue surge by 85% 

- Crypto platform Zipmex files for bankruptcy protection in Singapore 

- UOB sues China developer Shimao and 4 units  over loan terms in HK  

Contribution by Derek@valueinvestments chat group. Thank you.

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