Wolf Money(world market review 9-15 Oct 2023)

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Ong Kim Seng Singapore 1945

Singapore River circa 1980

Collection of National Heritage Board, Singapore


Market Summary 9-15 Oct 2023

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- US CPI rose 0.4% in Sept MoM and 3.7% YoY, core CPI up 0.3% MoM and 4.1% YoY, shelter costs accounting >50% the rise  

- US national debt surged >US$500bn in just 20 days to reach US$33.5 trillion, borrowed by federal govt to cover operating expenses 

+ Fed Reserve Harker: amid ongoing disinflation, rate hikes likely over 

+ US jobless claims remains at historically low level of 209,000, job market remains strong in face higher interest rates

- US average long-term mortgage rate surges to 7.57%, holding at highest level since 2000 

+ US import prices edged up 0.1% in Sept, below expectation due to strong dollar 

- US consumer sentiment fell sharply in Oct as household anticipated higher inflation over next yr 

+ US major banks; JPMorgan, Wells Fargo, Citigroup profits get boosted by higher interest rates 

+ US EV sales jumped >300,000 first time in Q3

- Boeing deliveries of new airline jets slumped in Q3 as it struggled with production issues 

+ Delta Air posts US$1.1bn profit in Q3, sees strong holiday bookings 

+ Microsoft closes US$69bn Activision deal after UK’s nod 

- IRS says Microsoft owes US treasury US$28.9bn in back taxes, plus penalties and interest, Microsoft disagrees 

- Tesla’s market share slipped to lowest on record, now dominates just 50% of the market, down from 62% it held in Q1

- Ford to temporarily layoff 700 workers at EV plant 

+ US casino industry generates nearly US$329bn a year in economic activity: study shows 

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+ China’s CPI remained flat in Sept YoY, but rose 0.2% vs previous mth as consumption continues to recover: NBS 

- China’s PPI fell by 2.5% in Sept, indicator has fallen for 12 mths in a row 

+ China’s central bank expected to keep borrowing costs unchanged but ramp up liquidity support when rolls over >¥500bn medium-term policy loans next wk 

- China’s consumer spending still isn’t growing as fast as it dd before pandemic

-  China number of births last year slide 10% to hit lowest on record with 9.56m births  

+ Chinese banks issued ¥2.31 trillion (US$316.15bn) of new yuan loans in Sept vs ¥1.36 trillion in Aug

- China’s foreign trade reached ¥30.8 trillion (US$3.21 trillion) in first 9-mth, down 0.2% YoY, exports up 0.6%, imports fell 1.2% 

+ China ready to elevate BRI economic, trade cooperation to new level: official 

+ China’s Sept foreign trade hits new monthly high of 2023, hitting ¥3.74 trillion  

+ China’s trade surplus with US widens to US$33.19bn in Sept vs US$30.06bn in Aug 

- China’s chip imports fell 15% in first 9-mth YoY, from 416.7bn to 355.9bn units, total value down 19.8% to US$252.9bn    

+ China Sept coal imports surged 27.5% YoY  

- Country Garden founding family recently provides US$300m interest free loan, trying to sell private jet: media report 

+ Huawei unveiled world’s first comprehensive 5.5G product solution, says network capacity to increase 10 times 

+ TSMC expects to receive approval from US to supply its China plant with US chipmaking tools indefinitely 

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+ Japan’s core inflation likely stayed above central bank’s 2% target for 19th straight mth in Sept 

- Japan number of corporate bankruptcies jumped 37.7% to an 8-year high in Apr-Sept 

- Japanese about half of 1400 firms in China foresee drop in investment; survey 

+ Japan foreign tourists arrival surged to 10.15m in H1 

- Toshiba to delist in Japan on Dec 20 after 74 years of history 

+ Putin to deepen no-limits partnership with China in meeting with Xi at Beijing’s BRI Forum next week 

+ Putin urged CIS countries to rely more on national currencies in trade, less vulnerable to outside influences 

- Oil surges nearly 6% after Israel begins ground raids into Gaza 

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- European natural gas prices surged to 6-mth high

+ EU was committed to managing bilateral relations with China in a constructive and responsible manner: Borrell 

- EU to hand over US$1.8bn in taxes collected from Russian assets to Ukraine 

- German economy expected to contract 0.4% in 2023 due to persistent inflation: ministry 

+ German inflation eased to 4.3% in Sept, inflation is on downward trajectory: Bundesbank President

- German industrial production dropped for 4th mth straight in Aug to the lowest level this year 

+ Volkswagen deliveries rose 7.4% in Q3; strong demand in Europe and US offset China weakness 

- UK employers cut job vacancies 1st time in >2.5 yrs in Sept and reduced hiring again

+ France on course for modest economic growth heading into end year; lower food inflation offers consumer some relief: INSEE

+ Ferrari to accept crypto as payment for its cars in the US 

+ Greece eyes to raise >€5bn in 2024 from sales of state assets including stake in Athens airport and concession 2 toll roads 

- Israel: next stages of war against Hamas will include coordinated attack from air, sea and land 

- Israel raised US$200m from diaspora bond sales since war with Hamas began, debt insurance costs surge 

- Israel shekel fell to almost 8-year low against US dollar as conflict in ME escalate; central bank’s to sell US$30bn of forex 

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+ Australia-China trade sees 10.2% growth in first 9-mth YoY in trade volume 

- Australia Indigenous leaders call for week of silence after referendum rejected by majority of population 

+ NZ opposition leader Luxon is poised to form a new govt after PM Hipkins conceded defeat 

- India’s merchandise trade deficit in Sept stood at US$19.37bn: Reuters 

- South Korea to fine 2 HK banks for naked short-selling 

- Qatari investors dropped bid to buy Manchester United 

+ Sri Lanka president to visit China as debt restructuring talks progress 

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+ Indonesia allocated education budget of Rp660.8 trillion education budget; 20% of 2024 state budget to focus on high-quality human resources 

- Indonesia need to import another 1.5m tonnes of rice to brace for El Nino: Jokowi 

+ Indonesia holding on to its goal of becoming a developed economy by 2045 

+ Thailand is committed to driving country forward as regional economic hub, supporting employment, narrowing income gaps, promoting foreign investments: PM

+ Thai SEC takes measures to restore investor trust in capital market, as funding and saving destination 

+ Anwar govt tables record RM393.8bn federal budget for 2024, >40% to be allotted for finance, education and health

+ Malaysia to cut diesel subsidies in a phased manner, expects inflation to tick up at 2.1% to 3.6% next yr due to removal of some subsidies

+ Malaysia to introduce capital gain and tax on high-value goods and gradually cut subsidies to bolster fiscal position 

+ Malaysia set to increase settlements in local currencies to reduce reliance on the US dollar: Anwar 

+ Malaysia to introduce min tax in 2025 for companies with global income at least US$789m per yr, in line with int’l standard

+ Malaysia to relax conditions for My Second Home (MM2H) applications to woo foreign tourists, investors 

+ Malaysia to lift price controls on chicken, eggs to allow free market

- Goldman Sachs sued Malaysia in UK court over 1MDB settlement 

+ Sg and US to venture into new areas to beef up ties: DPM 

- Sg economy grew 0.7% YoY in Q3 vs 0.5% YoY growth in Q2 

+ Sg is fighting rising seas to save S$70bn in real estate 

+ MAS keeps monetary policy unchanged, expects Sg economy to improve gradually next year 

- Sg gym industry could consolidate further, especially n central areas: observers 


Contribution by Derek@valueinvestments chat group. Thank you

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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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