Tag: Top International news

U.S. Markets Crash Following Others

U.S. stocks crashed on opening after a holiday for Thanksgiving. The selloff was spread from global markets with fears that a new coronavirus variant identified in South Africa could pause economic recovery. 

Haven assets rallied. Gold moved up, Japanese Yen moved up as the dollar weakened.

• Stoxx Europe is down by 2.94%
• Dow Jones is down by 2.45%
• NASDAQ is down by 1.45

Singapore Restricts Travel From Seven African Countries

The Singapore government on Friday imposed travel restrictions on seven African countries as the reports of new Covid-19 variant forces to take immediate action. The Ministry of Health said that people who have been in South Africa, Botswana, Eswatini, Lesotho, Mozambique, Namibia, and Zimbabwe in the last 14 days will not be allowed to enter or transit through Singapore from Nov. 27. Permanent residents and Singapore citizens who are returning to the country will be allowed to enter but will have to complete a 10-day quarantine.

Japan PM Asks Companies To Raise Wages By 3% Or More

Japanese Prime Minister Fumio Kishida said on Friday that companies whose earnings have reached pre-pandemic levels should raise wages by 3% or more,  to achieve a chain of growth and wealth distribution. The world’s third-largest economy is having an uneven recovery among major sectors and the new step is expected to help small businesses pass on costs of raw materials, energy, and labor costs to customers.

BlackRock To Reimburse Hong Kong, Singapore Employees For Quarantine

BlackRock on Friday offered some of its employees to reimburse 50% of hotel quarantine costs up to $2000. The reimbursement is applicable to permanent employees in Hong Kong and Singapore, who are vice presidents and below and have more than 12 months of continuous service. JPMorgan Chase and Morgan Stanley are offering employees about $5,000 to pay quarantine costs.

China Asks Didi To Delist From U.S Market

Media reports say that Chinese regulators have asked Didi Global’s board to come up with a plan to delist from the New York Stock Exchange of the U.S because of concerns about leakage of sensitive data. If the reports are true, this will be a forced delisting and action will have a severe impact on the firm. Proposals under consideration are straight-up privatization or a secondary listing in Hong Kong.

Vaccine Stocks Gain From Covid-19 Variant Fear

Covid-19 related vaccines and other health stocks benefitted on Friday over the concerns of a new coronavirus variant in South Africa. Stocks suck as Vir Biotechnology (+17%,NASDAQ), Pfizer (+7%, NYSE), BioNTech SE (+20%, NASDAQ), Moderna(+27%, NASDAQ), Inovio Pharmaceuticals (+6.7%, NASDAQ), Novavax (+10.6%, NASDAQ), and others moved up. Currently, U.S markets are more than 2% down.

(The values are according to the data available at IST time 9:45 pm. U.S markets are not closed and there will be changes.)

Unlock-Theme Stocks Take A Huge Hit In U.S

Similar to the Indian market, stocks in the U.S that are related to economic reopening are crushed down on the concerns of the new Covid variant. American movie theater chain- AMC Entertainment(-6%), Airline stocks- Delta Airlines(-12%), United Airlines(-13%), American Airlines(-12.5%),  Cruise operator- Carnival Corporation(-13%), Royal Caribbean(-12%), Hotel stocks- Hyatt(-9%), Marriot(-10%), Hilton(-10.5%) moved down. On the other side, videogame publisher Take-Two(+4%), Zoom Video Communications(+7.5%),  fitness company Peloton(+5%) gained well. 

U.S. Markets closed for Thanksgiving; Futures Gain

Global stocks and U.S. index futures moved up with signs of a solid recovery in the world’s largest economy in yesterday’s jobless claims report. 

Trading volumes are down around the globe as the U.S. traders celebrate the Thanksgiving holiday. The turnover in Asia’s equity benchmark was 17% lower than its 30-day average. It shrank 26% in Europe and 30% in Latin America. 

Stoxx Europe is up by 0.42%

Fed To Double Tapering Plan From January, Says Goldman Sachs

Goldman Sachs said on Thursday the U.S. Federal Reserve is expected to double the speed of tapering its monthly bond purchases from January to $30 billion and close its pandemic-era bond-buying scheme by the March of 2022. And also, interest rates will be raised three times in 2022, starting from June. The U.S. investment bank was previously expecting two rate hikes in 2022.

U.K To Expand Development Finance Investment

The U.K government said on Thursday that it will expand development finance investment by billions of pounds to focus more on infrastructure and technology in countries across Asia, Africa, and the Caribbean. The Foreign Office said that government-owned development investment company CDC will be rebranded as British International Investment (BII), a plan to deepen economic, security, and development ties globally. BII will have 9 billion pounds (Rs 89,402 crores) of finance by 2025 and will continue the developments with CDC’s current remit of Africa and South Asia. At the same time, it will also invest in low and middle-income countries in the Indo-Pacific and Caribbean.

UK Retailers Report Strong Pre-Xmas Demand

As per the data from the Confederation of British Industry, U.K retailers are witnessing the strongest pre-Christmas demand since 2015 this month and also the biggest price rises since 1990. Both these are fueled by the fear of shortages that led people to buy gifts early. The monthly retail sales balance – which says whether retailers think annual sales growth is rising or falling, jumped to a three-month high of +39 in November from +30 in October.

New Coronavirus Variant a ‘Serious Concern’ in South Africa

Scientists in South Africa are studying a recently identified new coronavirus variant of concern, stoking fears the country may face a potentially severe fourth wave that could spread internationally. The new discovery, called B.1.1529 until a Greek letter is assigned, carries an unusually large number of mutations and is “clearly very different” from previous incarnations, Tulio de Oliveira, a bio-informatics professor who runs gene-sequencing institutions at two South African universities, said at a briefing on Thursday.  

South Korea to Launch Task Force on Banning Dog Meat

Seoul, South Korea (AP) — South Korea on Thursday said it will launch a task force to consider outlawing dog meat consumption after the country’s president offered to look into ending the centuries-old practice. Restaurants that serve dog meat are dwindling in South Korea as younger people find dog meat a less appetizing dining option and pets are growing in popularity. Recent surveys indicate more people oppose banning dog meat even if many don’t eat it.

BOJ’s Newest Board Member Sees Japan Inflation Creeping Up

The Bank of Japan’s newest board member said she’s seeing a gradual emergence of upward price trends in the country that bears close watching, even as the bank holds its monetary stimulus in place. Japan’s consumer prices “don’t look like they will stay around zero forever,” board member Junko Nakagawa said Wednesday in a conversation that was part of her first set of interviews since joining the bank in June. “The upward pressure is strengthening a little.”

U.S. Markets Move Down Again; Tech Stocks Once more in Red

U.S. stocks fell in the first after the market tried to understand data of how the least jobless claims since 1969 will affect inflation. Personal spending also rose more than expected. 

The tech-heavy NASDAQ 100 underperformed other benchmarks again this week as higher Treasury yields damp the outlook for growth stocks. The S&P 500 pared declines.

• Stoxx Europe is up by 0.01%
• Dow Jones is down by 0.16%
• NASDAQ is up by 0.20%

New Zealand Raises Interest Rates For The Second Time In Two Months

The Central Bank of New Zealand has raised interest rates for the second time in two months and analysts expect that policies will be tightened more quickly than previously expected to control inflation. The Monetary Policy Committee on Wednesday raised the official cash rate by a quarter percentage point to 0.75%, as expected. The Reserve Bank of New Zealand forecasts that the cash rate will be raised to 2% by the end of 2022, a year earlier than projected just three months ago.

Deutsche Boerse’s EEX To Launch Hydrogen-Index Next Year

Deutsche Boerse’s power and gas exchange EEX is planning to launch an index from 2022 to price hydrogen and is expected to help the trading of the commodity. The Bourse’s board said that hydrogen will have a huge impact on the green economy. More details on the index will be available from the end of this year. It would be the first publicly-traded index that tracks hydrogen as a commodity.

Japan To Add $22.1 Trillion Yen To Stimulus 

The Nikkei newspaper on Wednesday reported that the Japanese government is planning to add $22.1 trillion Yen to the pandemic stimulus of $36 trillion yen. The government is trying to boost the recovery with next year’s election as a motivating factor. Anyway, the government failed to spend more than 30 trillion yen it budgeted for stimulus last year and it may be hard to inject all of the new money into the economy quickly.

U.S. Jobless Claims Hit 52-Year Low

The U.S initial Initial jobless claims dropped to 199,000 last week, the lowest level since November 1969. The numbers are below the expectations of 260,000 and the previous week’s 270,000 level. And also the second-quarter GDP growth was revised up slightly to 2.1%, below the estimates for 2.2%. Analysts are expecting an interest rate hike in 2022, and the fears of a hike are fueled by these dropping jobless claims.

Supply Shortages Ease in the U.S., Continue in Europe

Measures by Bloomberg Economics have shown that supply shortages in the U.S. declined in October, even while remaining at a historically high level. This indicates that even though shortages continue, they are becoming less severe. 

However, in Europe, there is an indication that conditions are getting worse.

Iran, UAE Plan to Turn a ‘New Page’ in Relations, Minister Says

Iran pledged to begin a new chapter in its relations with the United Arab Emirates, possibly signaling a thawing of tensions in the oil-rich Persian Gulf as world powers prepare for talks to salvage the 2015 nuclear deal. In a tweet, Iranian Deputy Foreign Minister Ali Bagheri Kani also described a meeting in Dubai with UAE Presidential Adviser Anwar Gargash as “friendly and cordial.” 

U.S. Markets Move Down; Tech Stocks Lead Fall

Stocks in the U.S. market moved down led by technology shares. Tech stocks took the heat of treasury yields gained. 

The S&P 500 fell in volatile trading, along with the sharp fall in Nasdaq 100. Shares of Zoom Video dropped 12% after an indication of growth slowing.

• Stoxx Europe is down by 0.99%
• Dow Jones is down by 0.10%
• NASDAQ is down by 1.27%

Sales of Xiaomi Slows With Chip Shortages

Chinese tech-major Xiaomi reported a slowdown in quarterly sales after supply chain shortages prevented the normal flow of vital parts. Competition from the other smartphone brands also hurt the company’s revenue. Meanwhile, profits are down 84% YoY after losses in investments as the Chinese economy slowed down.

Cold Weather Threatens Coal Shortage in China

Record coal production for the quarter has not yet ended China’s energy crisis. The threat of extreme cold this winter could cause a dent in supplies again soon according to a consultancy owned by China’s biggest coal ports.

The report says that weather predictions show a drop in temperatures for winter, which will increase the demand for coal to heat homes.

U.S. and Other Nations Plans to Release Oil Reserves to Pull Down Price

In a coordinated effort by major economies around the world, oil-consuming nations including the U.S. and India are releasing huge amounts of oil reserves to cause an artificial demand-supply mismatch. The aim of the move is to bring down oil prices after OPEC+ nations refused to increase production.

The U.S. is releasing 50 million barrels from its Strategic Petroleum Reserve. China, India, Japan, South Korea, and the U.K. will join in the effort.

Alibaba Moves Toward Record Low While Investors Bet on JD.com

Alibaba Group Holding Ltd.’s October rally has given way to a renewed slump that has the stock heading for a record low while technology rival JD.com Inc. is extending its recovery and winning favor with analysts. Deutsche Bank AG’s Leo Chiang cut his target price for Alibaba’s Hong Kong stock by almost 4% on Monday, citing “near-term challenges,” while raising his target for JD.com by 16%, noting “resilient growth amid macro uncertainties.”

One Investor Makes a Quick $582 Million in Evergrande Fire Sale

The buyer of China Evergrande Group’s stake in HengTen Networks Group Ltd. is sitting on a paper profit of $582 million after the shares surged in the wake of the sale. Li Shao Yu agreed on Nov. 17 to buy Evergrande’s 18% stake in the internet services firm for HK$2.13 billion ($273 million) at the discounted price of HK$1.28 a share. The stock has since rallied almost 140% to about HK$4. That values her stake at HK$6.67 billion.

BlackRock Says Time to Buy China Stocks, Trim India Exposure

BlackRock Inc. is trimming its investments in Indian equities and becoming more optimistic on China on attractive valuations amid expectations that policy hurdles will ease next year. “Valuations are key right now,” Belinda Boa, head of active investments for Asia Pacific at the world’s biggest asset manager, said at a briefing. “Because of the outperformance we’ve seen in India this year, on a relative basis, we are starting to take profits” and becoming more positive on Chinese growth stocks, she said.

Zoom Falls 25% on Slower Revenue Growth

Shares of Zoom Video Communications fell 25% on Tuesday after the video conferencing company reported its slowest quarterly revenue growth in the third quarter. Even though the growth is weaker, the revenue was reported at $105 crores, better than expectations. The company is not just having slower customer growth, the employee addition is also not promising. The platform is facing tight competition from rivals including Cisco, Microsoft, and Salesforce.

French Nov Business Activity Accelerates Faster Than Ever 

IHS Markit said on Tuesday that its November flash Purchasing Managers Index (PMI) for the French services sector rose to 58.2 points compared to 56.6 points in October. This is great compared to the forecast for 56.0 points. The flash PMI for the French manufacturing sector accelerated to 54.6 points against 53.6 points in October, better than the forecast of 53.0 points.

U.S. Stocks Move Down Once Again

Stocks moved down for the second day as traders continued to book profits after earnings reports from major corporations. There is also the volatility ahead of Friday’s options expiry. 

Cisco Systems, the biggest maker of computer networking equipment, pulled down Dow Jones after a poor sales projection. Alibaba Group also cut its projections for 2022 revenue with reduced consumer spending in China. 

• Stoxx Europe is down by 0.47%
• Dow Jones is down by 0.51%
• NASDAQ is down by 0.10%

Chinese Digital Stocks to Recover in the Long Term, Says Templeton 

Franklin Templeton Investments said on Thursday that digital and internet-related stocks of China had taken huge hits in the previous months, but they will recover and continue to grow in the long term. The Hang Seng Tech Index, which includes internet stocks such as Alibaba Group and Tencent Holdings, has recovered in recent weeks but remains more than 40% below its February peak. China’s tight controls and China-U.S tech war affected these stocks adversely.

Gemini Crypto Exchange Looking to Raise $400 million Funds

The cryptocurrency exchange Gemini Trust is seeking to raise $400 million funds and take the total valuation to $7 billion. No final decisions have been taken and the terms can still change. Many crypto exchanges are boosting their business thinking that the market is favorable.  The exchange which was founded by Tyler and Cameron Winklevoss recently had about $268.3 million in daily spot volume as compared with Binance at $30.2 billion.

Alibaba Group Slashes its Fiscal 2022 Forecast

Alibaba Group reported a 29% rise YoY in revenue to 200.7 billion yuan (Rs 2,33,171 crores) for the quarter ended September. It expects revenue growth of 20% to 23% in 2022 fiscal, below the analyst expectation of a 27% increase. The slowdown is majorly caused by China’s latest regulations on the domestic technology industry as a part of its data protection rules. Many Chinese tech giants was adversely affected,  including  Alibaba who was fined $2.8 billion (Rs 20,794 crores) in April as part of this anti-monopoly probe.

Turkish Currency Falls to Record Lows

Turkey’s central bank has continued to cut its interest rate for the third consecutive month, with President Recep Erdogan asking for cheaper loans. However, this is damaging the currency of the country and inflation is going through the roof. Read this article from March to learn more about Turkey’s never ending crisis.

Bill Gates says Covid Death Levels may drop by 2022

Microsoft Co-founder and philanthropist Bill Gates said today that Covid deaths and infection rates may dip below seasonal flu levels by the middle of next year assuming new variants of the virus don’t emerge. He was talking at a Bloomberg event in Singapore and said that the vaccines, natural immunity and oral medicines are catching up to the disease spreading rate.

Jack Ma’s Ant Group Sees Profit Rise 39% on Investments

Ant Group Co.’s profit rose an estimated 39% in the June quarter, attributed to a gain in investments as billionaire Jack Ma’s fintech giant grapples with the impact of China’s rapidly shifting rules for private enterprise. The company contributed 6.5 billion yuan ($1 billion) to Alibaba Group Holding Ltd.’s earnings, a filing showed Thursday. Based on Alibaba’s one-third stake in Ant, that translates to an estimated 19.71 billion yuan in profit, up 39% from a year earlier. Ant’s earnings lag one quarter behind Alibaba’s. Ant declined to comment.

U.S. Stocks Move Down From Near All-Time Highs

Stocks in the U.S. market moved down with a consolidation pattern. Traders took a bearish view on the third day of the week as data showed fresh U.S. home construction unexpectedly slowed down. The data suggest that raw material prices along with labour shortage may be affecting multiple projects.

• Stoxx Europe is up by 0.19%
• Dow Jones is down by 0.39%
• NASDAQ is down by 0.06%

China Can’t Remain Isolated From the World, Says Vice President

Chinese Vice President Wang Qishan said on Wednesday that the country can’t develop while being isolated from the world. He also said that the world must work together to boost global economic growth and also Beijing will continue opening up more to foreign investment. The country will provide more market investment and growth opportunities to the world,” he added.

Ericsson Wants Half of its Staff to Work From Home

Ericsson, a Swedish multinational networking and telecommunications company is redesigning its work culture in its 400 offices by shifting half of its workforce to remote working. Peter Laurin, Head of Managed Services at Ericsson said that there will be no going back to the old fashion of working. “Over the long run, we are aiming for a hybrid model”, he added. Currently, 85% of the workforce at Ericsson globally is working from home and a 50-50 hybrid model will be implemented.

China to Establish Special Relending Facility for Cleaner Coal Use

Chinese media reported on Wednesday that it will set up a special re-lending facility for a total of $31.35 billion to support the clean use of coal in the country. The facility will focus on promoting the clean and efficient processing of coal as a part of China’s long-term climate goal. The facility will also look into safe, efficient, green, and smart coal mining, as well as the development and use of coalbed methane.

Amazon Britain to Stop Accepting Visa Credit Cards

The e-commerce giant Amazon said on Wednesday that it will stop accepting Visa credit cards in the U.K from next year because of high transaction fees. Amazon said that such payment costs should drop over time with technological advancements, but instead they continue to rise.

Metaverse Stocks Buzzing in Korea With Multiple ETF Launches

Metaverse stock fans are finding that South Korea is a go-to Asian market to bet on the technology, with a host of exchange-traded products and shares up for grabs. Korea’s ETFs focused on the metaverse, many of them newly listed, have seen double-digit gains this month to trump the Kospi benchmark’s 0.3% decline. Aside from the popular U.S.-listed Roundhill Ball Metaverse ETF, most other vehicles focused on the concept are hosted in South Korea, according to Bloomberg-compiled data.

Biden and Xi Discussed Releasing Oil From Strategic Reserves

President Joe Biden and his Chinese counterpart Xi Jinping discussed the merits of releasing oil from their strategic petroleum reserves to ensure stability in global energy markets. Monday’s virtual summit didn’t make any decisions on the issue and both sides put forward their own views on the subject, according to officials familiar with the discussions, asking not to be named because they aren’t authorized to speak publicly on the matter. 

U.S. Stocks Move Up with Retail Sales Data

Stocks in the U.S. market jumped up after positive economic data was published. Sales data indicated the biggest jump in U.S. retail sales since March. Retail sales rose 1.7% in October, better than expected, both for all items and excluding autos.

Inflation has been rising at its fastest pace in 30 years, but consumers don’t appear to be reducing their purchases.

• Stoxx Europe is up by 0.21%
• Dow Jones is up by 0.32%
• NASDAQ is up by 0.26%

Asian Game stocks rise after Reports Say China to Resume Approvals

Major Asian gaming business-related stocks rose on Tuesday after the 21st Century Business Herald reported that China’s regulators are planning to restart approvals for online games after a three-month halt that will boost the revenue of developers. Gaming-related stocks such as Tencent Holdings (+2.1%), NetEase (+4%) closed in the green. In Tokyo Nexon (+6.3%) which gets 28% of its revenue from China also moved up.

China Asks State-Owned Firm to Stop Cryptocurrency Mining 

China said on Tuesday that it has asked its state-owned companies to stop cryptocurrency mining and strict actions will be taken on companies that defy the ban. The chief economic planner has initiated an investigation to clean up State-Owned Enterprises (SOEs) involved in mining. The country has already been hard on Bitcoin miners this year, blaming them for issues from energy wastage to coal mining accidents. 

Thousands of Australians Want Compensation for Vaccine Side Effect

The Sydney Morning Herald newspaper reported on Tuesday that the Australian government will need at least A$50 million funds as more than 10,000 people to register for a government program that aims to give compensation for those who lost income after being hospitalized for significant side effects from the vaccine. Australia’s Therapeutic Goods Administration has got almost 79,000 reports of significant side effects from 3.68 crore doses of vaccine, and the most reported side effects include a sore arm, headache, fever, and chills.

U.S. Import Prices Rises in October

The U.S Labor Department said on Tuesday that the import prices rose 1.2% in October after accelerating 0.4% in September. On a YoY basis, the prices jumped 10.7% in October against the 9.3% jump in September. The surge in import prices is mainly caused by the increasing costs of petroleum products and food. Imported fuel prices surged 8.6% last month after rising 3.9% in September. This data indicates that inflation could remain high for a while.

Musk Exercises Options and Sells $930 Million More Tesla Shares

Elon Musk exercised his stock options and sold more shares of Tesla, sending the stock down by the most since March 2020. Even though the stock is now 15% down for November, dip-buyers have come in and taken the stock up 3% today. This $930 Million worth of sold shares adds to the $6.9 billion he already sold last week, taking the total to nearly $7.83 billion (~Rs 57,800 crores). Musk said he was selling the stocks to help pay taxes.

Fed Orders China’s ICBC to Fix Risk-Management Deficiencies

Industrial and Commercial Bank of China must fix risk-management deficiencies at its New York branch that were identified by the Federal Reserve, according to a Tuesday statement. The world’s biggest bank by assets agreed to the U.S. central bank’s demands and will submit written plans to the Fed, according to an agreement between the lender and the regulator. The problems were revealed during recent examinations conducted by the Federal Reserve Bank of New York on the Chinese bank’s U.S. operations. The sanctions don’t trigger a fine. 

U.S. Stocks Move Back up after Inflation Data

Stocks in the U.S. market moved amid optimism that companies can move on from the supply-side crisis and central banks will keep interest rates low 

The S&P 500 climbed, led by technology and industrial stocks. Tesla fell once again after Elon Musk tweeted out the idea of selling more of his shares.

• Stoxx Europe is up by 0.14%
• Dow Jones is up by 0.25%
• NASDAQ is down by 0.08%

China to Vaccinate All Children Aged Three and Above by Year-End

China decides to fully vaccinate all kids aged between three and eleven against Covid-19 by the end of this year. It has already fully vaccinated more than 75% of its total population (105 crore people). For the last many weeks the country is focusing on giving boosters for adults and getting the initial shots for teenagers and kids. According to data released by China’s National Health Commission, more than 84 million kids aged 3 to 11 have already received at least one dose.

Pfizer Generates Comparatively More Antibodies, Study Says

According to a study in the journal Cell Host and Microbe, Pfizer Inc. and BioNTech SE’s Covid-19 vaccine has the strongest immune response compared to the other three vaccines selected for the study, Sinopharm, Sputnik V, AstraZeneca vaccines. The study was conducted in July among 196 fully-immunized people in Mongolia. The study does not provide details of intervals between doses, which may directly affect the number of antibodies produced.

Trading Starts at Beijing Stock Exchange

Today a total of 81 stocks started trading on the Beijing Stock Exchange, marking its official launch. The new exchange focuses on increasing investment for small and medium-sized enterprises (SMEs) that aren’t profitable enough to list on other Chinese markets. Out of these 81 companies, 10 companies that recently conducted initial public offerings (IPOs) on the new exchange rose as much as six-fold and made an amazing debut. The auto parts maker Henan Tongxin Transmission and quartz crystal component maker Anhui Jing Sai Technology jumped  511% and 255% respectively.

Heineken to Buy Distell Group Holding Distell and Namibian Breweries

The brewing company Heineken said on Monday that it has agreed to buy South African wine and spirits maker Distell Group Holdings and Namibia Breweries for 2.2 billion euros (Rs 18,686 crores) and 1.8 billion euros (Rs 15,289 crores) respectively. The takeover of Distell will brighten the wine and spirits portfolio of Heineken and it will sell Distell’s British-based Scotch whiskies.

Big Short’s Michael Burry Thinks Elon Musk ‘Just Wants to Sell Tesla’

Michael Burry is once again commenting on Elon Musk, saying that the Tesla Inc. CEO doesn’t need cash, he just wants to sell his company’s stock. “He doesn’t need cash. He just wants to sell $TSLA,” the investor made famous in “The Big Short” film said in a tweet. He also tweeted a chart of Tesla’s share price — last closed at $1,033.42 — with an arrow pointing to when Musk said that the automaker’s stock was trading “too high.”

Morgan Stanley Says Steer Clear of U.S. Stocks and Bonds in 2022

Stay away from U.S. stocks and bonds next year, and seek out better returns in Europe and Japan.

That’s the advice of Morgan Stanley’s strategy team, which sees fading monetary support and high valuations holding back American assets in 2022, even as growth improves and inflation moderates. Fundamentals are more attractive in Europe and Japan, where central bankers will be more patient and inflationary pressures are lower, according to the strategists in their annual investment outlook.

U.S. Stocks Move Back up after Inflation Data

Equities in the U.S. market fell from opening gains along with European stocks on the last week of the day. Inflation pressures continued to shake up markets.

The S&P 500 and NASDAQ stayed flat. Johnson & Johnson gained after preparing for a stock split. Europe and Asian markets climbed. Oil, gold, and Bitcoin slipped.

• Stoxx Europe is up by 0.16%
• Dow Jones is up by 0.29%
• NASDAQ is up by 0.21%

AirAsia X Creditors Approve The Restructuring Plan

Malaysia’s AirAsia X (AAX) creditors on Friday approved the restructuring that will pay just 0.5% of the debt owed and close its existing contracts. After the announcement shares of   AirAsia X (AAX) rose 30%. Recapitalization will start after receiving court approval and is expected to be completed in the first quarter of 2022.

China Metaverse Stocks Fall After Newspaper Warning

The shares of metaverse-related China stocks fell heavily on Friday after a local newspaper warned about speculative trading in the immature concept. Metaverse is a virtual shared space based on virtual reality technologies and many people think it has the potential to be as big as the internet. The newspaper said that the metaverse project requires long-term investment and construction and people should not invest heavily in such a new and immature concept. 

Digital content provider AVIT(-9.5%), gaming company Shenzhen ZQGAME(-8.1%), content production firm Shanghai Fengyuzhu Culture and Technology(-5.1%), and media marketing business Inmyshow Digital Technology Group(-8.1%) closed in the red.

Big Short’s Michael Burry Calls Out the Federal Reserve

Michael Burry, the trader famously known for shorting the U.S. housing market in 2008 tweeted his concerns over inflation going on the economy right now. He said that there are threats that are multiplying in the markets.

He was tweeting for an article out against Tesla-rival Rivian which said we are living in the age of free money and endless government subsidies.

Pakistan Rupee Falls to Record Low

Pakistan’s currency fell to a record low on concerns from investors about the delay in the government reviving a $6 Billion(~Rs 44,000 crores) loan from the International Monetary Fund.

India’s neighbour has been in talks to renegotiate the lending programme and the country’s Finance Minister had earlier said the deal would be completed last week.

Europe Under Pressure Over Energy Supply Concern

Reports say that Europe may enter into another energy crisis as the winter season gets harder and harder. The Weather Company said that temperatures will drop starting next week, and Italy, Southern France, Spain, and Germany will experience ‘colder-than-usual’ situations. U.K.’s top energy supplier Centrica warned its 9 million customers to be ready for a tough situation that could last as long as six weeks.

U.S. Stocks Move Back up after Inflation Data

Equities in the U.S. market recovered initial losses during a volatile start to the trading session.  Data published today showed that consumer prices inflation at the fastest pace since 1990.

The S&P 500 reached back to slightly in the green after falling as much as 0.5%. Bitcoin moved past $68,000 and gold jumped to the highest since June.

• Stoxx Europe is up by 0.24%
• Dow Jones is down by 0.41%
• NASDAQ is down by 0.69%

FWD May Shift US IPO to Hong Kong

Reports say that Hong Kong-based Asian insurer FWD Group is considering shifting its $2-$3 billion IPO from the United States to Hong Kong due to various reasons. The company has filed confidentially in June for the New York initial public offering (IPO), but now it is facing delays by U.S. regulators scrutinizing the plan and lack of interest from investors. 

Southeast Asia Internet Economy to Reach $1 Trillion by 2030

According to a report by Alphabet’s Google, Temasek Holdings, and Bain & Company, Southeast Asia’s internet economy is expected to reach $1 trillion by 2030, as millions of more people enter into online shopping and start using food delivery. The report says that the region had added 6 crore new internet users since the start of the coronavirus pandemic, and the total is now at  4.4 crores. Developments in 5G in the region are expected to give a boost to the numbers. Many Indian companies will benefit from this 5G revolution, starting from telecom operators, to network-component manufacturers.

China Market Makes a Perfect V-Shape Recovery

The Chinese Shanghai Composite Index on Wednesday made an amazing recovery and cut the initial losses. The index fell more than 1.5% in the first half and took support at the 3450 level. From there it moved back and closed 0.41% down, near today’s open.

What was the reason for the 1.5% fall? The producer price index rose 13.5% on a YoY basis, the fastest jump in 26 years. The consumer price index(CPI) rose 1.5%, the highest since September 2020, and was above the expectations of a 1.4% gain. The recovery happened after state media reported that authorities are likely to loosen controls for the nation’s real estate companies to issue local-currency notes, part of efforts to prevent a further deterioration in their financing.

U.S October CPI Rises 6.2% YoY

The U.S Labor Department said on Wednesday the consumer price index(CPI) rose 0.9% last month after expanding 0.4% in September. On a YoY basis, the CPI accelerated 6.2%, the largest year-on-year advance since November 1990. The core CPI(excluding the volatile food and energy components), gained 0.6% after increasing 0.2% in September.

Asia’s Most Expensive Apartment Sold in Hong Kong’s Peak Area

A Hong Kong apartment sold for HK$640 million ($82.2 million), making it Asia’s most expensive per square foot in a further sign of buoyancy in the city’s upscale housing market. Wharf Holdings Ltd. and Nan Fung Development Ltd. sold an apartment at Mount Nicholson, one of the most iconic upscale projects in the city, for HK$140,800 per square foot, according to the companies. 

U.S. Stocks Move Down; Change in Fed Leadership Possible

U.S. stocks moved down on the second day of the week as investors expected a change in leadership at the Federal Reserve.

The S&P 500 was flat after closing in the green for eight straight days to reach an all-high. PayPal Holdings fell after its guidance disappointed analysts. Shares of General Electric moved up after saying it will split into three companies. 

• Stoxx Europe is up by 0.14%
• Dow Jones is down by 0.41%
• NASDAQ is down by 0.69%

China’s Factory Inflation Increases to 26-Year High

Change in prices that Chinese factories charge for their outputs increased to a 26-years high last month. It was fueled by the increase in commodity prices and an energy shortage. Bad weather in the country also likely contributed. 

The producer price index is estimated to have climbed 12.3% last month compared to a year before.

GCC Reserves To Grow By $300-$350 Billion In Three Years, Says IMF

The International Monetary Fund (IMF) said on Tuesday that the foreign reserves of the Gulf Cooperation Council (GCC) will increase by $300-$350 billion (Rs 22 lakh-25 lakh crores) in the next three years. The GCC comprises six countries, Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain, Oman, and all are expected to benefit from fuel price hikes.

German Monthly Export Falls Again

The data from the German statistics office on Tuesday showed that the country’s September seasonally adjusted exports dropped 0.7%to 112.3 billion euros (Rs 9,60,471 crores). The imports rose up 0.1% to 99.2 billion euros, lower than the estimates of 0.6%. Exports dropped for the second consecutive month, caused by the supply chain disruptions.

Saudi Q3 GDP Jumps 6.8%

Saudi Arabia’s Q3 economy grew 6.8%, compared to the same quarter of last year and this is the fastest expansion since 2012. The growth is mainly contributed by a 9% rise in oil activities and also the country has increased its oil production in 2021. On a QoQ comparison, seasonally adjusted real GDP grew 5.8%, powered by 2.9% growth in oil activities. Non-oil activities grew 6.2% in the third quarter.

HSBC Chosen to Advise on Saudi Food Giant’s IPO as Boom Rolls On

Almunajem Foods Co., one of the largest Saudi food companies, has appointed HSBC Holdings Plc as an adviser to manage its initial public offering, according to people familiar with the matter. Riyadh-based Almunajem, which specializes in the import and distribution of food in the kingdom, could announce the deal as soon as in the next few weeks, the people said, asking not to be identified because the information is private.

Philippines Q3 GDP Slows, Below Estimates

The Philippines’ annual third-quarter economy grew at a slower pace than the estimates of analysts. The Gross Domestic Product(GDP) grew for a second straight quarter in July-September by 7.1%, at a much slower pace. Compared to the second quarter, the growth is 3.8% during the period, versus a 1.4% contraction in the June quarter. Analysts expect the central bank to leave its interest rate at a record low of 2.0%.

Evergrande Faces Biggest Payment Test Yet as Grace Periods End

China Evergrande Group is facing its biggest payment test since signs of a liquidity crisis emerged at the firm five months ago. Investors are waiting to see if the embattled developer makes coupon payments totaling $148.1 million for three-dollar bonds before the end of the 30-day grace periods Wednesday. Evergrande missed the initial interest deadlines last month, Bloomberg-compiled data show.  

U.S. Stocks Extend Rally to All-Time Highs; Tesla Falls

U.S. stocks extended their rally to record highs with the S&P 500 on its longest daily winning streak in 4 years. After corporate earnings and strong hiring data, the world’s largest economy. The dollar fell.

Smallcaps, energy stocks, and materials companies led the rally as investors moved into companies that benefit most from a strong economy. 

• Stoxx Europe is up by 0.19%
• Dow Jones is up by 0.41%
• NASDAQ is up by 0.20%

Tesla Falls After Twitter Users Ask Musk To Sell Stock

The share of EV maker Tesla fell 6% on Monday after a large number of Elon Musk’s Twitter followers supported his proposal to sell a 10% stake in the company.  In a Twitter poll that Musk ran during the weekend, 58% of the users supported his plan. He has decided to exercise a large number of stock options in the next three months, which will result in a big tax bill. The fund freed from the stock selling will be used to pay the taxes.

Toshiba To Split Itself Into Three Companies

Toshiba said on Monday that it is planning to split itself into three companies to boost shareholder value. The three companies will focus on areas such as infrastructure, devices, and semiconductor memory as early as 2023. The Nikkei news organization reported the companies are expected to get listed at some point.

AMC To Bring Back ‘Fan-Favorite’ Movies, Up 7%

The shares of AMC Entertainment Holdings rose 7% on Monday after it decided to bring back fan-favorite movies to the big screen during November 12-14. The firm will partner with Walt Disney Animation Studios, Pixar Animation Studios, Walt Disney Studios, and Lucasfilm as a part of this strategy. The American movie theater chain is expecting to bring back movie lovers to the cinemas as the Covid-19 pandemic continues to fade.

Crypto Market Hits $3 Trillion Market Cap as Ethereum and Bitcoin Gain

The entire cryptocurrency market is now worth $3 Trillion. The decade-old market for digital assets has jumped 4x from its 2020 year-end value. Memecoins and non-fungible tokens (NFT) are also a growing market with Dogecoin and Shiba Inu continuing to attract attention.

Investors have also gotten more comfortable with established tokens such as Bitcoin and networks like Ethereum. Bitcoin has gained more than 4% today.

Gas Prices in Europe Fly up as Russia Fails to Deliver

European gas and power prices moved up as Russia failed to deliver the boost in supplies today that President Vladimir Putin promised last month. Gas Futures in the Netherlands moved up as much as 9.7% today. Power contracts were also up with concerns that there won’t be enough fuel to feed thermal plants in Europe’s tough winter.

PepsiCo To Get Tesla Electric Trucks In The Fourth Quarter 

The maker of Mountain Dew drink and Doritos chips- PepsiCo said that it is expecting to receive the Tesla Electric trucks in the fourth quarter, helping to reduce fuel costs and fleet emissions. In 2017 December PepsiCo placed an order for 100 electric semi-trucks from Tesla as transportation causes 10% of the company’s total gas emissions. Major nations are going for Carbon zero in the coming decades. Which companies will lead the rally in India? Do the research and prepare your own portfolio, from power stocks to automakers.