Wolf Money(world market review 9-15 Sept 2024)

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(Image credit: BrainyQuote)


Market Summary 9-15 Sept 2024

*USA* 

+ US CPI up 0.2% in Aug, put the 12-mth inflation rate at 2.5%, down 0.4% from Jul level, lowest in 3.5 yrs  

+ US core CPI up 0.3% in Aug, the 12-mth core inflation rate at 3.2%, in line with forecast 

+ US producer price index rose 0.2% in Aug MoM, in line with expectations 

-US govt for the 1st time has spent >US$1 trillion in fiscal yr on interest payments for its US$35.3 trillion nation debt: Treasury Dept   

-US govt has laid out US$1.049 trillion on debt service, up 30% YoY  

-USD fell to its lowest level in nearly 9 mths against Japanese yen 

+ Biden top aides working on proposal for a US sovereign wealth fund would allow to invest in national security interests 

+ US University of Michigan’s preliminary reading on overall index of consumer sentiment at 69 in Sept vs 67.9 in Aug

-US hikes tariffs on Chinese goods, include a 100% duty on Chinese EVs, 50% on solar cells and 25% on steel, aluminium, EV batteries and key minerals 

+ US 10-year Treasury hovered around 3.65% at lowest level since May 2023, 2-year yield at new 2-year low of 2.50% 

+ US nearly 50% of surveyed firms called for lower tariffs on Chinese goods: business environment report 

-US Commerce Secretary wants Apple and Nvidia to use Intel Foundary for Ai Chips 

-Boeing’s West Coast factory workers will go on strike after 96% vote for walkout 

+ Intel officially qualified up to US$3.5bn in federal grants to make semiconductors for Pentagon 

+ GM, Hyundai Motor to explore JV, aims to bring down costs to compete with Chinese rivals  

-US likely to delay decision over Nippon Steel’s takeover of US Steel 

-Google lost its fight against €2.42bn fine levied by EU antitrust regulators

-US ‘going bankrupt extremely quickly’: Elon Musk 

-Trump pledged 100% tariffs on countries seeking to replace USD in int’l transactions 

*WORLD*

-Crude prices fell to lowest mark since 2021 after OPEC cuts its demand growth forecast for this and next year 

+ Gold price reached all-time high on Fri, soaring >US$2600 per ounce 

*CHINA*

+ China retail sales expanded 2.1% YoY in Aug vs 2.7% growth in Jul 

+ China’s industrial production rose 4.5% in Aug vs 5.1% increase in Jul 

-China’s new home prices in 70 cities fell 5.3% YoY in Aug, 13th straight mth of decrease and steepest pace in >9 years 

+ SZ is the first big city starts to buy up and transform unsold homes to bolster market 

-China saw US$14.8bn net FDI outflow in Q2 at record high

+ China to raise retirement age for the first time since 1978, to take place over 15 yrs starting Jan 1 2025

+ China’s SMEE has filed patent for an EUV chipmaking tool, aims to break shackles of ASML export restrictions 

-China vowed necessary measures against US finalised tariff hikes on Chinese products 

-China criticises EU’s rejection of EV proposal 

+ China drafts law on energy security, renewables to ensure steady supply in emergencies 

-China is losing appeal as an investment destination for Western companies: EU Chamber of Commerce in China 

+ China sets historic Mars mission for 2028, 2 yrs earlier than previously planned 

-China slapped PwC with 6-mth suspension and fined total US$62m over Evergrande audit

+ China will expand HK’s role in Belt and Road Initiative 

-Shein and Temu faced end to tariff-free imports into US 

+ Cathay Pacific completed HK$1.53bn warrant buy-back, part of govt-led HK$39bn package to keep afloat during pandemic  

*EUROPE*

+ European Central Bank set to cut rates again by 25 bps as headline figures hit 3-year low in Aug of 2.2%

-European auto makers facing more plant closures as struggle to keep up with EV transition, thousands jobs at risk: Bloomberg 

-Euro currency expected to slide toward parity with USD within months due to growing political risk and economic weakness: Morgan Stanley projected 

-EU global economic competitiveness has been substantially eroded due to loss of cheap energy from Russia: Mario Draghi 

-EU member states still rely heavily on gas imports from Russia: European Commissioner for Energy 

-EU’s highest court ordered Apple to pay Ireland €13bn in back taxes as part of antitrust crackdown in the bloc  

-Germany must put effort into resolving economic issues: ECB 

-Volkswagen exiting a labour contract that protected workers from layoffs 

-Volkswagen can’t continue as before, major changes are needed to survive: CEO 

-Russia central bank raised key interest rate from 18% to 19%, 2nd increase this year 

-Putin suggests limiting uranium exports, could affect supply of nickel, titanium and uranium to rest of the world 

-Russia First Deputy PM: Western car brands that quit are unlikely to be able to return despite retaining buybacks options  

*ASIA*

+ Japanese companies Tokyo Gas, Eneos, Mitsubishi etc reaped nearly US$56bn from 3 yrs divesting 

+ Japan jumped to no. 2, from 6th place in Best Countries Index 

-India sharply raises import tax on edible oils to support farmers 

-Samsung Electronic plans global cuts of up to 30% in some divisions

*ASEAN*

+ Indonesia begins construction of 87km MRT Jarka east-west line 

+ Prabowo plans US$65bn green fund by 2028 from selling carbon credits 

-Malaysia prepares heavier “sugar tax” in bid to combat diabetes 

-Malaysia Airlines cuts 20% of capacity over incidents, aircraft delivery delays

+ Sg private-sector economists’ median forecast for full-year 2024 growth rose to 2.6% from 2.4% previously 

+ Sg tax revenue expected to increase further this year but more slowly 

-Jurong Lake District tender for mega site not awarded as S$640 psf ppr bid ‘too low’: URA


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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