Wolf Money(world market review 3-9 Jun 2024)

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(Fuji Broadcasting Center@Odaiba, Minato City, Japan)


Market Summary 3-9 Jun 2024

*USA* 

+ US nonfarm payrolls added 272k jobs in May, the most in 5 mths vs forecasts of 185k 

+ US unemployment rate ticked up to 4% from 3.9% in Apr

+ US private payrolls up by 152k in May: ADP

-US trade deficit widens to US$74.6bn in Apr, largest in 18 mths 

-US total consumer credit up by US$6.4bn in Apr, following US$6.27bn rise in Mar 

-US job openings fell in Apr to lowest level since 2021 to 8.1m vs revised 8.4m in Mar

-US initial jobless claims up by 8000 to 229,000 in week ending Jun 1 

+ US average hourly earnings for all employees on private nonfarm payrolls up by 0.4% to US$34.91 in May  

+ US household wealth rose to record >US$160 trillion in Q1, due to stock market’s record run and gains in real estate: Fed 

-US used car prices extended decline by 0.6% MoM in May for 4th consecutive mth, after 2.3 fall in Apr 

-US and its allies could give Ukraine a loan based on profits from blocked funds frozen from Russian assets: Yellen 

-Fitch to lower this year aircraft delivery forecast for Boeing due to recent developments 

-Federal Trade Commission started investigating of Microsoft’s AI deal with startup Inflection AI

+ Apple reportedly held talks with China Mobile to expand its streaming platform Apple TV+ to China 

+ Nvidia becomes world’s second-most-valuable company 

-Google reportedly to have fired a hundred employees in its Cloud unit this week 

+ Ford reported 11.2% rise in US sales for May, driven by strong demand for its hybrid, EVs and trucks 

+ CrowdStrike, KKR and GoDaddy to join S&P 500 

-McDonald has lost its Big Mac trademark in EU 27-nation bloc

*OTHER*

-World food prices at 6-mth high, FAO Food Price Index up 0.9% MoM to 120.4 in May

*CHINA*

+ China’s exports grow 7.6% to US$302.35bn in May, fastest pace in more than a year 

+ Caixin China General Manufacturing PMI at 51.7 in May, up 0.3 pts from previous mth 

+ Caixin China General Services PMI at 54 in May, expanding for 17th consecutive mth, reaching highest level since Aug 2023

+ China’s foreign trade in first 5 mths recorded yearly increase of 6.3% to ¥17.5 trillion (US$2.42 trillion)

+ China’s trade surplus rose to US$82.62bn in May

+ China’s foreign exchange reserves rose to US$3.23 trillion in May from US$3.2 trillion in Apr 

-China top 100 developers spent total ¥314.6bn on land purchase first 5 mths, down 26.7% YoY 

+ China’s home mortgage rates dropped in May as central bank scrapped national minimum mortgage rate 

-China imposed first fine on Nonbank payment provider, firm was fined US$3.9m for violations 

+ China sets up fund of abt US$828m to spur development of solid-state EV batteries: sources 

+ China has allocated US$889m for auto trade-in, with sales of EVs expected to receive a major boost 

+ China could have million hydrogen-powered vehicles on its roads by 2035

+ China will announce policies to accelerate construction of overseas warehouses, boost cross-border e-commerce 

+ China rolls out test scheme for first batch of automobile vehicles on public roads 

-China solar giant Longi cuts SEA production as US tariff exemption for Malaysia, Cambodia, Thailand and Vietnam expires 

-China state-owned firms, financial institutions terminated or to terminate audit deals with PwC China due to Evergrande scandal 

+ China’s Chang’e-6 spacecraft collected samples from moon’s far side, on track to bring them back to Earth 

*EUROPE*

+ ECB cuts interest rates first time since 2019 by 25 bps to 3.75% from all-time high of 4% 

+ Eurozone GDP expanded 0.3% in Q1, recovering from 0.1% contraction in each of previous 2 qtrs 

+ German GDP to grow 0.3% in 2024, inflation at 2.8%: Bundesbank 

-German industrial production manufacturing sector down 0.1% in Apr, factory orders down by 0.2%  

+ German exports up 1.6% MoM to 14-mth high of €136.5bn in Apr, imports up 2% to 10-mth high of €114.5bn  

+ Germany and France opposed EU restrictions on luxury cars to Russia: Politico 

+ VW to open a large-electricity storage facility in northern Germany in 2025

-UK tribunal allows £13.6bn adtech suit against Google to go ahead 

-France’s trade deficit widened to €7.6bn in Apr, largest in 6 mths 

+ Russian oil revenues up 50%, attributed to increased prices for Urals crude

+ Russia ready to support new ways of facilitating int’l payments, including cryptocurrencies: Minister 

+ St. Petersburg Int’l Economic Forum opened with participation of delegates from 139 countries and regions 

*ASIA* / *OCENIA*

+ Japan household spending rose 0.5% YoY in Apr, first up in 14 mths  

-Japan’s real wages fell 0.7% in Apr YoY for the 25th straight mth of decline 

+ Japanese coalition of >400 companies plans to set up US$1bn fund to bolster hydrogen supply chains 

-Toyota, Mazda, Honda and Suzuki have committed fraud during approval applications; Ministry  

+ SoftBank seeks to open AI data centre next year 

+ India BSE Sensex ends at new record high at 76,693; anticipation of stability within the coalition govt 

-Indian govt may require more Chinese companies to reduce their stakes in JVs in the country

+ SK Gp chairman meets with TSMC to discuss furthering of cooperation on AI chip technologies 

-Samsung Electronics workers in S Korea staged first walkout over better pay and benefits 

+ Saudi Arabia decided not to renew a US-Saudi security agreement expire on 9 Jun, to decouple from the Dollar 

+ Saudi Arabia has joined China dominated central bank digital currency (CBDC) cross-border trial 

+ Qatar sovereign fund to buy 10% stake in China 2nd largest mutual fund company, China Asset Management  

-Australia orders 5 Chinese investors to sell stake in rare earths miner, given 60 days to dispose of shares in Northern Minerals 

*ASEAN*

-Indonesia is set to face larger budget deficit and higher debt next yr due to high interest rates and weakened currency: FM

+ Thailand to add US$3.4bn to budget to fund cash handout plan

-Malaysia’s automotive supply chain costs 30% more than China: Geely chairman 

+ ByteDance plans US$2.1bn investment to set up an AI hub in Malaysia: Trade Minister 

+ Sg forex reserves edged up to S$500.86bn in May, largest amt since Apr 2022 

+ Temasek, GIC part of global coalition investing US$25bn in Indo-Pacific emerging 

-Changi Business Park emptying out as global tech, finance layoffs take toll


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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