Focal Point
🌀
U.S. restricts chip exports;
Blocks Nvidia & AMD from selling AI chips to China
"Biden administration is working to limit U.S. exports of certain semiconductors and equipment because of fears that Chinese companies could use them for military purposes."
Reference link:
🌀
Singapore GDP forecast for 2022, downgrade to 3.5%,
raise core inflation outlook to 3.8%: survey
"They are now expecting full-year gross domestic product (GDP) to grow 3.5 per cent, slightly worse than the 3.8 per cent projection they made in June." quoted from CNA
Reference link: Economists downgrade 2022 Singapore GDP forecast to 3.5%, raise core inflation outlook to 3.8%: survey
🌀
Straits Times Index (STI) quarterly review
"FTSE Russell announces that there will be one change to the constituents of the Straits Times Index (STI), following the September 2022 quarterly review. Emperador has been added to the STI and ComfortDelGro has been removed from the index.
The STI reserve list, comprising the five highest ranking non-constituents of the STI by market capitalisation, will be (in order of size) Olam Group, Suntec REIT, Keppel REIT, Frasers Centrepoint Trust and Ascott Residence Trust. Stocks on the reserve list will replace any constituents that become ineligible as a result of corporate actions before the next review."
Changes will take effect on 19th Sep.
Quoted from FTSE Russell
🌀
China continue battles with Covid-19 Outbreaks
China shuts world's largest electronics market as Shenzhen imposes lockdowns, and shut down public transport and extended curbs on public activities.
🌀
Investment tip takeaway 🦉 this week:
Singapore market was under pressure after last Tues rebounds, and continue falling throughout the rest of the week approximate of 50 points, closed at 3,205.69 points for the week.
Singapore
SG's Bank Lending, Previous: 841.6B... Actual: 838.0B
-> Change in the total value of outstanding bank loans issued to consumers and businesses dropped.
SG's Manufacturing PMI, Previous: 50.1... Actual: 50.0
-> Unchanged
United Stated
USD's House Price Index (MoM) Jun, Previous: 1.3%... Actual: 0.1%
-> Drop in Single-family house prices, with mortgages backed by Fannie Mae or Freddie Mac
USD's CB Consumer Confidence, Previous: 95.3... Actual: 103.2
-> The confidence of consumers remain optimistic, as spending increased
USD's API Weekly Crude Oil Stock / Crude Oil Inventories,
Previous: -5.632M/-3.282M... Actual: 0.593M/-3.326M
-> Weaker demand; implied bearish for crude prices
USD's ADP Nonfarm Employment Change Aug, Previous: 268K... Actual: 132K
-> Non-farm, private employment, based on the payroll data dropped
USD's Nonfarm Payrolls, Previous: 526K... Actual: 315K
-> Measures the change in the number of people employed; lower than last month but beat the market estimate of 300K
USD's Unemployment Rate, Previous: 3.5%... Actual: 3.7%
-> Increase in unemployment; higher than last month and worth than the market estimate of 3.5%
USD's Factory Orders (MoM) Jul, Previous: 1.8%... Actual: -1.0%
-> New purchase orders placed with manufacturers dropped; lower than last month and worth than the market estimate of 0.2%
Australia
AUD's Building Approvals (MoM), Previous: -0.6%... Actual: -17.2%
-> Drop in new building approvals issued by the government
AUD's Commodity Prices (YoY), Previous: 14.1%... Actual: 21.7%
-> Selling price of exported commodities.. go up
Hong Kong
HKD's M3 Money Supply, Previous: -2.8%... Actual: 1.2%
-> Collection of the money supply increased.
HKD's Retail Sales (YoY), Previous: -1.2%... Actual: 4.1%
-> Consumer spending increased.
To Investors :
US market was under selling pressure last week Friday, after the Unemployment Rate as well as the Factory Orders had missed the market estimates, and the data shown that the current situation are worst than the expected. And Fed Chair Powell and Vice Chair Brainard are speaking this Wed and Thurs, and I expected the market may react more optimistic at the later part of this week. After all, the SORA and Swap rates are moving upward right after last week Jackson Hole Conference, therefore investors who currently service any housing loans need to keep an eye on the rising interest rate as not to over-commit to any long-term payment of big ticket item as the future economic situations are getting more uncertain than ever.
For the Chip industries, I'm concern with the recent law implemented by Biden's administration to restrict the exports of Chips... as the immediate impact will first hit the earnings of chip makers since fund managers will likely slash the sales forecast on the falling demands. Controlling the customer's base are as good as restricting growth, and therefore any business that is interrupted by political intervention... could in return impact the economic growth.
Another pointer for investors to take note : Recently, big Investors or Corporates that are selling off their investments... include BYD plunges after Buffett trims his stake; one fund manager says it could be a warning sign and, Tencent which had been reducing their stakes in various investments on Meituan (HKG: 3690) as well as Sea (NYSE: SE), and planning to reconsolidate their businesses to move on from the current situation. Hence, I agree to the above report from CNBC that it could be a warning sign, that seem dropping hint of what likely be for next year 2023 economic situation.
🌀
My Live Interview with Capital FM95.8 last Friday 2 Sep
🌀
Next Week Focal Point :
📣 United State, important indexes to take note: Investors can take note of Wednesday and Thursday on the speeches from FOMC, Fed Chair as well as Fed Vice Chair. Their remarks can influence the market's directions somehow.
"You are never too old to set another goal or to dream a new dream."📌
Other Focus (Results / Highlights of Corporate Actions):
💡 SGX <Analyst Research>
Other extracted news:
Sembcorp to sell India power plant business to Oman-linked fund for $2.1 billion
ESR-LOGOS REIT continues long-term partnership with AMS-OSRAM after lease renewal of 7000 Ang Mo Kio Avenue 5
Tuas Port officially opens, going 'full steam ahead' towards completion
StanChart, FairPrice-backed Trust Bank officially launches, offers first-to-market numberless credit card
Sembmarine suffers IT breach; employee information accessed
Keppel announces $750 mil plan to develop Singapore’s first hydrogen-ready power plant
Grab, Singtel Join Singapore's Digital Bank Battle Next Week (Grab-Singtel beats Sea to the punch with Singapore digital bank)
Temasek to lead US$100 mil funding for crypto landlord Animoca
Temasek and HSBC establishes sustainable infrastructure debt financing company; commits a combined US$150 mil of equity
Miss-out:
Coming Market Focus (Extract):
Monday, September 5, 2022 | |
USD | Holiday: Labor Day |
SGD | Retail Sales (MoM) Jul, Prv: -1.4%... Actual: 0.6% Retail Sales (YoY) Jul, Prv: 14.9%... Actual: 13.7% |
USD | OPEC Meeting |
Tuesday, September 6, 2022 | |
AUD | RBA Interest Rate Decision Sep GDP YoY QoQ Q2 |
USD | ISM Non-Manufacturing PMI Aug |
CNY | Exports YoY Aug Imports YoY Aug Trade Balance USD Aug |
Wednesday, September 7, 2022 | |
HKD, SGD | Foreign Reserves USD Aug |
USD, CAD, AUD | Exports Imports Trade Balance Jul |
USD | EIA Short-Term Energy Outlook FOMC Member Mester Speaks Fed Vice Chair Brainard Speaks |
Thursday, September 8, 2022 | |
USD | Initial Jobless Claims Fed Chair Powell Speaks Crude Oil Inventories |
CNY | CPI PPI |
Friday, September 9, 2022 | |
USD | Fed Waller Speaks FOMC Member George Speaks |
p.s:
Next FOMC Meetings 2022; September. 20-21
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