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

 

Juan Luna Philippine 1857-1899

El Violinista (The Violinist)

Collection of The Lopez Museum and Library

Market Summary 10-16 Oct 2022

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- US inflation rose by more than forecast to 40-year high in Sept at 8.2%, paving way for another big Fed hike 

- US producer prices increased more than expected in Sept, underlying goods prices were unchanged 1st time in 2.5 years 

- US retail sales flat in Sept from Aug, as more money spent on rising prices for rent and food 

- US will enter into a recession in next 12-mths: WSJ survey of economists 

- US needs to do more to bring down inflation, which is still too high globally: deputy treasury chief 

- FCC set to ban all US sales to Huawei, ZTE equipment: Axios 

+ US social security benefits to see biggest rise in 40 years, to get 8.7% boost in 2023  

- US proposed rule make it more difficult for firms to treat workers as independent contractors, could shake up gig economy 

- US business groups to file lawsuits to delay or derail rule that would limit firms use of independent contractors 

+ Biden signals new effort to lower gasoline prices next week 

- Biden vows ‘consequences’ for Saudi Arabia over OPEC decision, citing Saudi pushed other OPEC+ nations into an output cut 

+ US shale could peak in 2024: energy aspects 

+ US trade with China actually boosts US employment: Washington-based think tank 

+ US power consumption to reach record high in 2022 due to rising economic activity and hotter summer: EIA 

- US considering complete ban imports on Russian aluminium 

- Intel plans thousands of job cuts in face of PC slowdown 

- Tesla share has tumbled about 50% from all-time high 

- Morgan Stanley profit slumps 30%, Citigroup reports 25% slump 

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+ Xi called on party to build modern socialist China by mid-century at 20th National Congress

+ Xi vows Taiwan reunification, Covid-19 fight, no letting up in corruption fight, to brace for “dangerous storm” ahead

+ China’s consumer inflation hit 2-year high in Sept at 2.8% YoY

+ China’s new yuan loan increased by CNY2.47 trillion in Sept, almost double the amount in Aug 

+ China’s trade to hit new high in Q4 despite US rate hike impacts 

+ China can now deploy hypersonic nukes on its carriers 

+ Xi vows to prioritise environment, protect nature and promote green lifestyles 

+ China seeks local currency settlements with ASEAN and neighbouring countries  

+ China, EU extend currency swap for another 3 years 

+ China’s digital currency passes 100bn yuan (US$13.9bn) in spending: PBoC 

+ China local govts sell more bonds for infrastructure stimulus 

+ China accelerates oil, gas projects to ensure energy supply in winter 

+ China granted 59,000 patents for integrated circuits layout-designs over decade 

+ Shanghai expected annual production NEVs to exceed 1.2m by 2025, total output value exceeding 350bn yuan 

+ China exports 1.59m vehicles in first 9th mths, up 60% YoY 

+ China local authorities encouraging state-owned enterprises purchase housing to help revitalise property market

+ Chinese top 50 real estate developers’ land purchases surged 130% MoM in Sept 

+ Chinese cities are issuing coupons for housing purchases to boost flagging property market in Q4

+ China >30 cities allowed home buyers to pay mortgage by using family members’ housing proficient fund 

+ China number of registered market entities reach 163 million compared with 55 million end 2012

+ China needs US$17 trillion to meet climate goals: World Bank 

+ XPeng affiliate tests self-flying car in Dubai, BYD launched its 1st passenger car in India 

+ China remains largest purchaser of US soybeans 

- HK interbank liquidity close to critical HK$100bn level following HKMA 2nd straight-day local currency purchase to defend peg 

- Hang Seng Index plunges to below 17,000 points to 11-year low 

+ HK to unveil plan for becoming hub for virtual asset investors

+ HK may relax property tax rules and visa restrictions to make it easier to hire expats 

- HK number of property foreclosure deals surged to the level of GFC in 208 

+ TSMC gets 1-year US license for China chip expansion 

+ Taiwan reopens to tourists for first time in >2.5 years 

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- Yen hitting 32-year low, declining past 147 per dollar 

- Japan wholesale prices soar 9.7% in Sept on higher import costs 

- Japan business confidence among big manufacturers fell for 2nd straight mth to hit lowest level in 5 mths: Reuters poll 

- Japan’s machinery orders post biggest fall in 6 mths 

+ Honda, Sony to jointly make EVs for 2026 US delivery 

- Nissan will sell all its Russian assets to Russia state-owned firm NAMI, worth symbolic sum of €1: trade ministry  

- Russia’s oil revenues drop to the lowest level this year to US$15.3bn in Sept 

- Russia may redirect 25m tons coal supply to EU, could be shipped east instead: deputy PM  

+ Russia offers Turkey best route to redirect gas to EU after Nord Stream pipeline damage 

+ Putin offers Europe gas through Nord Stream 2 

- Crypto hackers set for record year after looting >US$3bn 

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+ Eurozone industrial production increased by 1.5% in Aug after -2.3% drop in July  

- ECB may have bigger impact on markets by raising interest rates than bond unwind: ECB chief economist Lane

- EU gas price cap would lead to supply halt: Gazprom CEO 

+ Europe’s gas prices started to soften as storage facilities become full 

- Europe likely entering another Covid wave: WHO, ECDC

- EU trade commissioner Dombrovskis: decoupling from China not an option for EU firms 

+ Europe turns to Africa for gas, but exports remain low, EU gas prices drop to 3-mth low 

+ BMW set to move production of its electric minis from UK to China: The Times 

- UK PM Truss sacked chancellor, scrapped parts of economic package 

- UK new finance minister Hunt to delay planned reduction basic rate income tax by 1-year 

- UK’s economy set to go into recession, data showed it unexpectedly shrank in Aug 

- UK top pub chain Marston plans to sell some sites due to energy prices 

+ France started sending natural gas directly to Germany to ease its energy crisis 

- French gas stations running out of fuel amid union strike

- France Finance minister: US is selling gas to EU for 4 times what it charges at home 

- France told TotalEnergies to hike wages as fuel strikes spread 

- ASML tell US employees to stop working with customers in China after new US export curbs 

- Credit Suisse preparing to sell parts of its Swiss domestic bank to close capital hole of around 4.5bn Swiss francs 

+ Turkey backed Russian proposals to build a gas hub in the country as an alternative supply 

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- Asia govts spent around US$50bn reserves in Sept to defend their currencies, highest level since Mar 2020

- India’s industrial output unexpectedly fell YoY in Aug for the first time in 18 mths 

+ India, US will join hands to address supply chain challenges of semiconductor: economictimes 

+ South Korea will scarp taxes on foreigners’ income from investments in bonds: minister 

- South Korea raises benchmark rate to 3% 

+ SK Hynix gets 1-year waiver from US govt to keep receiving chip equipment needed for production facilities in China 

- Saudi Arabia express its total rejection after Biden threatened “there will be consequences” 

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- Bank Indonesia recorded net capital outflow of Rp4.22 trillion from financial market from Oct 10 to 13 

+ Indonesia exports of palm oil and its derivatives skyrocketed in Aug amid levy waivers 

- Indonesia consumer confidence plunges to 5-mth low 

+ Jokowi to present achievements of Jakarta-Bandung railway at G20 summit 

+ Thailand economy projected with expansion of 2.8% this year and 3.7% in 2023: IMF

+ Thailand consumer confidence rose for 4th straight mth in Sept at 8-mth high 

+ Thailand industrial sentiment rose 4th straight mth in Sept to highest level in 32 mths 

+ Thailand plans 5bn baht Phuket Medical Hub to boost tourism 

+ Malaysia PM dissolved parliament to clear way for snap elections 

- Malaysia ringgit reached all-time low against SGD, near record low against USD 

+ Sg economic growth at 4.4% YoY in Q3: MTI 

+ MAS tightened its monetary policy for 4th time since Oct 2021 to curb inflation

+ Sg yields for 6 and 12-mth T-Bills rise as high as 3.77% in Oct auction 

+ Sg announced S$1.5bn support package for all Singaporean households 

- Sg current wave of Covid-19 infections driven by XBB sub-variant expected to peak average 15,000 daily cases by mid-Nov

- Sg does not rule out reimposing mask mandate, closely monitoring XBB wave: Minister 

Contribution by Derek@valueinvestments chat group. Thank you.

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