Wolf Money(world market review 1-7 May 2023)




Johnny Manahan Philippines 1957

Photographs circa 1974

Collection of National Gallery Singapore  


Market Summary 1-7 May 2023

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- Fed raised interest rates by 25 bps to 5%-5.25% pt , signalled may pause further hikes

- US Treasury announced first buyback scheme in decades to boost liquidity 

- US job openings in Mar fell to the lowest level in nearly 2 years to 9.6m from nearly 10m in Feb  

+ US added 253,000 jobs in Apr vs expected 185,000, jobless rate fell to 3.4% 

+ US private payrolls surged 296,000 in Apr, much higher than expected: ADP

- US Senate launched latest attempt to counter China, include limit flow of technology

+ US sanctions drive Chinese firms to advance AI without latest chips: WSJ

- US Treasury says govt may default on debt as early as Jun 

- Republican debt cap plan to cut jobs, slow growth: Moody’s chief economist 

- US trade deficit contracted 9.1% to US$64.2bn

- US retailers replaced tech firms in cutting most number of jobs in April; the sector has cut 36,000 jobs this year 

+ SEC adopted new disclosure rules for hedge fund and private equity fund advisors, share buybacks 

- Fed data showed large part central bank’s emergency lending activities in recent weeks was to First Republic Bank 

- First Republic Bank seized and sold to JPMorgan Chase, 3rd midsize bank to fail in 2 mths 

- US >2000 banks ae near insolvent as they have burned through their capital buffers: Telegraph 

- US officials assessing possibility of ‘market manipulation’ behind recent big moves in banking sector stocks 

+ US permits more flights of 12 weekly round-trips by Chinese carriers, from current 8 

+ Berkshire Hathaway posted US$35.5bn profit, buy back more shares 

- SVB deposits if had not been covered it would have been catastrophic: Buffett 

- US former top executives of 2 failed banks will testify before Congress this mth 

- Binance faces US probe of possible Russian sanctions violations 

+ Microsoft, Google CEOs called to AI meeting at White House 

+ Apple sales beat expectations owing to strong sales of services n iPhones, sales fell 2.9% in Greater China and 2.5% globally

+ Microsoft opens its AI-powered Bing to all users 

- FTC proposed ban on Meta profiting from minors’ data 

+ US top CEO pay rose 7.7% last year to record US$23.3m 

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+ China will step up policy to support to encourage consumption, unleash purchasing potential; removal of administrative restrictions in housing and automobile markets 

- China’s private Caixin Manufacturing PMI stood at 49.5 in Apr from 50 in Mar 

+ China’s Caixin services PMI hits 56.4 in Apr, 4th consecutive monthly expansion, 2nd highest since Dec 2020

- China’s real estate sector lost its Q1 momentum, housing sales fell 22% short of pre-Covid levels

- China at least 3 nationwide banks cut deposit rates following similar move by smaller rivals last mth 

+ China’s growth plans must focus on manufacturing and technology: Xi 

+ Chinese so far 5155 listed firms released Q1 results, total revenue up 3.8% YoY to ¥17 trillion, total profit up 1.42% to ¥1.5 trillion  

+ China’s domestic listed firms total operating income of ¥71.53 trillion YoY in 2022, up by 7.25%

- China restricts providing key corporate information to overseas clients

+ China approved Mobile trial of 5G air-to-ground (5G-ATG), enables users to access internet on planes 

+ China to speed up construction of charging facilities for EVs 

+ China has been the largest NEV producer for 8-year in a row 

+ China issued new rules on service of accounting firms for SOEs and listed companies 

+ China domestic trips during May Day holidays hit 274m, jumping nearly 71% YoY 

+ China Canton Fair deals worth US$82m for Xingjiang cotton products signed 

+ Chinese firms are flocking to Saudi Arabia especially tech firms focused on AI, cloud, fintech and e-commerce 

+ China’s largest express delivery firm SF Holding started preparations for its HK 2nd listing, expect to raise US$2-US$3bn 

+ HK Q1 GDP expanded by 2.7%, led by strong recovery of inbound tourism and growing local market demand 

+ TSMC plans for 1st German chip fab with cost up to €10bn 

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+ Japan Astellas Pharma will buy US pharmaceutical firm Iveric Bio for about US $5.9bn in its largest takeover 

+ Japan’s seafood imports from Russia hit record ¥155.2bn in 2022

+ JAL logged an annual net profit for the first time in 3 years, buoyed by soaring domestic n int’l demand 

+ Russian >60% of crude and petroleum products to be shipped to Asia this year: Deputy PM

+ Russian bank could be restored to SWIFT: Turkey 

- Russia accused Ukraine of Putin assassination attempt 

+ Argentina offered to fast-track imports from Brazil if adopts a new credit system that reduces its dependence on the dollar 

+ WHO declares end to Covid global health emergency 

- World Bank board elects US nominee Ex-Master CEO Ajay Banga as President 

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- Eurozone inflation rises to 7% in Apr after mths of decline 

- ECB hikes key interest rates by 25 bps to 3.25%, signalled more tightening to come as it fights inflation 

- ECB will stop investing cash from maturing bonds bought under its €3.2 trillion Asset Purchase Programme from July

- Eurozone unemployment fell to 6.5% in Mar 

- EU nation pledges to transfer seized Russian assets to Ukraine 

- Eurozone retail sales fall more than expected in Mar 

- Airbus posted smaller than expected 39% drop in Q1 core earnings on lower airplane deliveries 

- Germany industrial orders fell 10.7% in Mar MoM 

- German exports fell more than expected in Mar, down by 5.2% on previous mth 

- Adidas mulls selling Russian business 

+ UK plans to loosen IPO rules to make London more attractive as financial centre 

+ UK first trade after Brexit FTA with Australia and NZ will come into force by end May 

- HSBC shareholders rejected proposal of Asia spin-off in AGM voting 

+ Turkey announced major oil discovery, citing will help the country energy independent: Erdogan

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+ Australia’s export to China hit A$19bn in Mar at record high, up 31% YoY

+ Asia set to lead world economic growth pushed by China’s reopening: IMF 

+ India’s exports of goods and services could touch US$900bn in current financial year vs US$770bn in previous year  

- India’s Go First Airways owed financial creditors US$798m 

- South Korea’s exports fell for 7th straight mth in April for their longest losing streak in 3 years, driven by extended slump in Sales to China 

+ South Korea Posco Holdings to spend US$441m to build a nickel refining facility in Indonesia 

+ Bhutan and Nasdaq-listed Bitdeer Tech plan to seek investors for fund up to US$500m fund to develop green crypto mining 

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+ Indonesia’s GDP expanded by 5.03% in Q1; beats forecasts on consumer, govt spending 

+ Indonesia plans to launch carbon exchange in H2 

+ Thailand’s headline CPI rose by 2.67% YoY, lowest since Dec 2022

+ Thailand opposition parties on course to sweep election, could see an end to 9 years of military-backed govt: poll

+ Thailand in talks with CATL and other battery makers to build production facilities in the country 

+ Hozon New Energy Automobile of China to start production in Thailand, to have initial capacity of 20,000 units a year 

+ Vietnam to more than double power generation by 2030, lower offshore wind target 

- Malaysia raised benchmark interest rate by 25bps to 3% citing to normalise monetary 

+ Malaysia in talks with other countries to bring back 1MDB-linked fugitive Jho Low: Anwar   

+ Malaysia govt announced additional funds to expedite construction of Penang LRT project 

- Sg PMI down 0.2% to 49.7 in April, shrinking for 2nd time in a row: SIPMM

+ Sg retail sales up 4.5% in Mar vs Feb double-digit growth 

+ Sg to introduce passport-free clearance at all checkpoints from 2024

- Dyson to build battery plant in Singapore, boost AI development 

+ FedEx plans to move Asia HQ, executives to Singapore from Hong Kong 

- MAS increases DBS additional requirement to S$1.6bn after successive disruptions 

+ Sg and HK neck and neck in wooing MNCs: CBRE 


Contribution by Derek@valueinvestments chat group. Thank you

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