Wolf Money(world market review 27 May-2 Jun 2024)

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(Toyko Tower@Minato City,Japan)

Market Summary 27 May-2 Jun 2024

*USA* 

+ US PCE index up 0.3% MoM in Apr, same as previous 2 mths, core index, excludes food n energy set to rise 0.3%

+ US consumer confidence index increased to 102 in May from upwardly revised 97.5 in Apr, after down for 3 straight mths 

-US economic growth revised lower for Q1 to 1.3% annualised rate, down from advanced estimate of 1.6% 

-US pending home sales suffer largest drop in 3 yrs in Apr, lowest since onset of Covid-19: NAR 

+ US banking sector profits surged 79.5% to US$64.2bn in Q1, as large firms shake off failed bank costs 

+ Goldman Sachs Asset Management’s alternative investments platform raised >US$2bn for senior direct lending

+ BoA CEO expects 10%-15% jump in investment banking fees in Q2 

-US slows AI chip exports to Middle East over concern on China access 

+ Biden administration proposed expanding tax credits beyond wind, including nuclear fission and fusion 

-US roughly 1 in 6 households could not pay all their monthly bills in 2023

-Trump found guilty on all counts in hush money trial, first ex-president ever convicted of a crime 

+ Trump could make Elon Musk a White House adviser if he wins the election in Nov: WSJ

+ Tesla makes push to roll out advanced FSD self-driving in China 

+ Nvidia set to overtake Apple as world’s 2nd most valuable company 

+ Apple’s iPhone sales in China jumped 52% in Apr

+ FAA head to meet with Boeing CEO on quality plan: sources 

+ ConocoPhillips to buy Marathon Oil in US$22.5bn deal in latest energy merger 

+ BlackRock’s ETF becomes largest bitcoin fund in world: Bloomberg 

+ US Steel’s proposed US$14.9bn merger with Nippon Steel 

+ Costco tops revenue estimates on rebound in demand for low-prices discretionary items 

*SOUTH AMERICA*

+ Brazil is the top export market for Chinese EVs, surpassed Belgium 

*CHINA*

-China’s May manufacturing activity fell to 49.5 from 50.4 in Apr: NBS

+ China non-manufacturing PMI stood at 51.1, comprehensive PMI 51, remain above expansion territory 

+ China’s industrial profits up 4.3% in Jan-Apr, unchanged from Q1 

+ China non-manufacturing PMI ticked lower to 51.1 in May vs 51.2 in Apr 

+ China’s economy is set to grow 5% this year, after strong Q1, upgrading earlier forecast of 4.6%: IMF

+ China’s central bank vowed to speed up yuan internationalisation, high-level financial opening-up 

-China sold a record number of US bonds in Q1, divested total US$53.3bn in Treasuries and agency bonds combined

+ China set up US$47.5bn investment fund to boost chip sector 

+ China, Japan, South Korea set to engage in further discussions to expediting negotiations for trilateral FTA   

-China rolled out export controls in key aerospace and shipping sectors to safeguard national security 

+ China gears up to make a deal with EU set to conclude its investigation into EV subsidies 

+ Chinese private rocket startup Galactic Energy completed milestone launch, carrying 5 satellites into orbit 535km above earth 

+ China eased curbs on solar and wind installations to cut use of fossil fuel 

+ Chinese cities launched automobile trade-in programs, expect to boost market demand by ¥1 trillion

+ BYD unveiled new hybrid that can drive non-stop for >2000km 

+ China to invest US$820m in cutting-edge battery tech 

-China’s regulator fined Evergrande Gp ¥4.175bn (US$587.67m) for fraudulent bond issuance, information disclosure violations

-Vanke sold SZ land plot via auction for ¥2.24bn at 27% below the price it paid nearly 7 years ago 

+ China lifts most remaining trade bans on Australia beef exports 

-China ends tariff concession on 134 import items from Taiwan 

+ TikTok preparing a US copy of app’s core algorithm” sources 

-HK retail sales plummeted 16.5% YoY in Apr from revised 8.7% fall in Mar 

*EUROPE*

-Euro Area annual inflation rose for the first time in 5 mths to 2.6% in May from 2.4% in each of previous 2 mths 

-EU states including Germany, France asked EU Commission to assess a potential ban on transshipments of Russian LNG could backfire on the bloc 

+ EU commission will postpone decision on Chinese EV tariffs until after European Parliament election on Jun 

-ECB tells banks to get out of Russia 

-Germany retail sales shrank 1.2% MoM in Apr vs forecasts of 0.2% decline, after a strong 2.6% increase in Mar 

+ Volkswagen to develop low-cost EV to tackle Chinese rivals 

+ British Parliament officially dissolved; general election to be held in 5 weeks  

-France credit rating cut by S&P on deficit overshoot from AA to AA-

+ France GDP expanded by 0.2% QoQ in Q1, annual inflation held steady at 2.2% in May vs forecasts of 2.4% 

-French producer prices in domestic market down 3.6% MoM in Apr, household spending fell to 0.8%   

+ French President Marcon reportedly pressed Canada to ease Russian titanium sanctions to help Airbus 

+ Ruble strengthens to 5-mth high 

-Russia plans higher taxes for rich, companies 

-G7 has not reached consensus using of revenue generated by Russian central bank assets frozen abroad to help Ukraine  

*ASIA*/*OCEANIA*

+ Japan expected to post its first YoY rise in household spending in 14 mths: Reuters poll 

+ BOJ policymaker hints at rate hike if yen’s impact on inflation in huge 

+ Japan’s net external assets rose to record US$3 trillion in 2023, up for 6th straight year; boosted by weak yen and overseas corporate acquisition 

+ India’s economy grew at 7.8% YoY in Jan-Mar qtr, faster than expected 

-Samsung Electronics’ union threatens first ever walkout next wk 

+ Saudi Arabia to sell 0.64% of Aramco stake that could raise US$13.1bn 

+ BHP walks away from US$49bn takeover offer for Anglo American 

*ASEAN*

-Indonesia electricity subsidy to cost US$5.11bn in 2025 to keep electricity cheap for consumers 

-Indonesia probed Shopee, Lazada units for alleged competition rule breaches 

+ Thailand cabinet approved application to join BRICS

-Vietnamese EV maker VinFast considers delaying US$4bn US plant 

+ Malaysia-China total trade up by 5.9% YoY in Jan-Apr  

+ Google to invest US$2bn in Malaysia to develop its first data centre and Google Cloud region

-Sg port congestion mounts as Ships divert from red sea

+ Sg to invests S$300m in National Quantum Strategy 

+ Sg bank loans fell to S$804.3bn in Apr, down from 15 mth high of S$807.8bn in Mar

+ Singtel-KKR consortium frontrunner to buy US$1bn stake in data centre provider: sources 

+ Sg tops non-OIC destinations for Muslim travellers in 2024: Mastercard / CrescentRating 


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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