Wolf Money(world market review 2-8 Sept 2024)

 


Selamat Datang Monument@Bundaran HI, Jakarta


Market Summary 2-8 Sept 2024

*USA* / NORTH AMERICA*

+ US Composite PMI Output Index at 54.6 in Aug vs 54.3 registered in Jul 

-S&P Global US Manufacturing PMI revised down to 47.9 in Aug from a preliminary 48

-US ISM manufacturing PMI edged higher to 47.2 in Aug at 21st monthly contraction in factory activity in last 22 periods 

+ US services PMI at 51.5 in Aug vs 51.4 in Jul

+ US new orders for manufactured goods increased by 5% in Jul MoM to US$592.1bn 

-US stocks weighed down by concerns over slowing labour market and tech selloff 

-US trade deficit at US$78.8bn in Jul, expanding from deficit of US$73bn in Jun 

+ US nonfarm payrolls up by 142,000 in Aug vs expectations of 160,000, jobless rate held steady at 4.2%

-US private payrolls rose by 99,000 in Aug, lowest since Jan 2021: ADP

-US 10-year Treasury yield lowest since Jun 2023 under 3.7% following nonfarm employment report 

+ US average hourly earnings for all employees on private nonfarm payrolls up 0.4% or 14 cents to US$35.21 in Aug   

-US job openings at 7.7m in Jul, lowest level in 3.5 years 

-US job cuts stood at 75,891 in Aug, hitting highest total for the mth in 15 yrs: Challenger 

+ US initial jobless claims down 5000 to 227,000 

+ US banking industry recorded higher profits in Q2, profit for the sector up 11.4% to US$71.5bn 

-US signs of strain in commercial real estate and credit card borrowing had jumped to levels not seen in a decade: FDIC

-Berkshire offloads Bank of American shares again, total sales near US$7bn 

+ Dell, Palantir and Erie Indemnity to join S&P 500

+ Apple new iPhone will use Arm’s chip technology for AI: FT

+ Tesla plans to launch full self-driving service in China and Europe in early 2025

+ Tesla EV sales in China surpassed 63,000 units in Aug, up 37% MoM, setting new record for the year 

+ Trump said to embrace Elon Musk’s proposal of creating a govt efficiency commission: WSJ

-Canada jobless rate rose to 6.6% in Aug from 6.4% in Jul to 34 mths high 

*CHINA*

+ Caixin manufacturing PMI increased to 50.40 points in Aug from 49.80 points in Jul 

+ Caixin China General Composite PMI stood at 51.2 in Aug, unchanged from Jul's 9-month low

+ PBOC: there is still room to reduce the reserve requirement ratio for banks 

+ China forex reserves rose by US$31.8bn in Aug, hitting highest level since Dec 2015

+ China’s digital yuan used for nearly US$1 trillion of transactions 

+ China-US commercial, trade working gp holds 2nd vice-ministerial meeting in Tianjin 

-China’s central bank paused gold pruchases for a 4th mth in Aug 

-China said “dissatisfied” with new Dutch export controls on ASML chipmaking tools 

+ Chinese leading securities firm Guotai Junan to merge with rival Haitong to build a first-class investment bank  

-China >5300 listed companies posted total revenue around US$4.9 trillion for H1, down 1.4% YoY  

+ China issued draft rules for foreign accounting firms’ domestic operations

+ China issued guideline on high-level opening-up in the service sector, containing 20 specific measures

+ China opens manufacturing, healthcare to foreign investment 

+ China signed IP cooperation agreement with 57 BRI partner countries

+ China will need 9000 new aircraft over next 2 decades: C919 plane designer 

+ Huawei to unveil the world’s first Three-Fold Phone 

+ China to give all least developed countries including 33 Africans countries zero-tariff treatment for 100% tariff lines 

+ China simplified trade rules and green lanes will enable high-value African goods to enter Chinese market 

-China submitted request to Canada for consultations at WTO over additional tariffs imposed on EVs, steel, aluminium products  

-China will launch anti-dumping investigations into canola seeds imported from Canada  

-China announced an end of foreign adoption of its children 

-China 21.1% of population is now aged 60 yrs and older, up 1.3% YoY, exceeding 20% for the first time  

+ Xi pledged US$50.7bn in financial assistance to countries in Africa in next 3 yrs 

+ Chinese car manufacturer Chery, became the largest foreign company in Russia by revenue in 2023: Forbes

+ HK to offer more yuan products and risk management tools to enable int’l investors to use yan for trade and investment 

+ HK foreign exchange reserves increased to US$423.4bn in Aug, at 5-mth high 

*EUROPE*

+ Eurozone’s composite PMI rose to 51 in Aug vs 50.2 in Jul

+ Euro area retail sales up by 0.1% in Jul MoM 

-Eurozone’s GDP expanded by 0.2% in Q2, revising down the previous report at 0.3%

+ Europe’s largest banks likely to achieve 2024 profitability in line with strong levels of 2023: Fitch Ratings 

-Germany’s economy likely at ‘zero growth’ this year: Ifo institute 

-German industrial production fell 2.4% MoM in Jul from 1.7% in Jun, down >5% on YoY

+ German industrial orders rose by 2.9% in Jul, flattered by some large orders 

+ Germany’s trade surplus at €16.8bn in Jul, exports up 1.7% MoM at €130bn, imports at €113.2bn, up 5.4%

-Germany’s EV registrations dropped 69% YoY in Aug 

+ Mercedes-Benz plans to invest US$1.97bn with local partners in China to enrich its localised portfolio of cars and vans 

-Volkswagen may close down at least 2 factories in Germany and end job security schemes, cited tough economic times 

+ Britain needs extra £1 trillion investment in the next decade to grow the enomy: report 

+ UK house prices up by 4.3% in Aug, biggest annual gain since Nov 2022: Halifax

-France industrial production back to contraction 

-Hungary cannot srivive without Russian oil: Foreign Minister 

+ Turkiye officially applied to join BRICS 

+ Russian’s budget deficit fell to 0.2% of GDP in Aug as both oil and gas and non-energy budget revenues rose, spending slowed 

+ Russia plans to significantly expand northern sea route: Putin 

+ Russia’s gold reserves stood at nearly US$190bn as of Spet 1, bullion’s share in int’l reserves now exceeds 30% 

-Ukraine reached agreement with bondholders on a debt restructuring assisted by Rothchild & Co.: Reuters 

*ASIA*

-Japan revived debate on raising the country’s tax on income from investments 

-Japanese convenience store chain 7-Eleven rejected US$38.7bn takeover bid, says offer ‘grossly undervalues’ 

+ India foreign exchange reserves surged to US$684bn as of Aug 30th, highest on record  

+ Indonesia cuts planned energy subsidies for 2025 by US$72.26m or 0.54% of allocation proposed 

-Thai Commerce Ministry vowed to tackle issue of Chinese products flooding into Thailand

+ Malaysia approved investment from Jan-Jun up 18% to RM150bn: Anwar 

+ Malaysia reported 19% rise in domestic tourism in Q1 

+ Malaysia prioritised for BRICS membership: Anwar 

+ Malaysia ready to resume FTA negotiations with EU: Minister 

+ Sg tax revenue up 17% to S$80.3bn in FY 23/24 due to strong economic, wage growth 

+ Changi Airport T5 construction to begin in first half of 2025, targeting 200 city connections, handling capacity by another 50m  

+ Sg-India inked 4 pacts covering digital technologies, semiconductors and other areas 

+ Sg to study viable decarbonization strategies for more sustainable urban environment 

-Emirates is stopping its flights between Singapore and Melbourne, route serviced since 1996 


Contribution by Derek@valueinvestments chat group. Thank you.

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