PETER’S BUSINESS & FINANCE BRIEFING – Wednesday 20 November 2024, 06:00 Hong Kong
● Haven assets rise after Putin expands Russia’s nuclear decree ● China pledges more support for Hong Kong’s financial markets ● EU to demand technology transfers from Chinese companies
Wednesday’s Opening Call
Hang Seng (Hong Kong) Projected Open: 19,540 -124 points -0.6%
Nikkei 225 (Japan) Projected Open: 38,275 -139 points -0.4%
Quick Summary - 4 Things To Know Before Asian Markets Open
Global financial markets yesterday saw a shift into haven assets such as gold and Treasury bonds and European stocks fell, hit by rising tensions over Ukraine. On Tuesday, Russian President Vladimir Putin approved an updated nuclear doctrine, outlining the requirements for the country to use nuclear weapons. The Kremlin said, "Russia reserves the right to use nuclear weapons in an event of aggression". It comes as Ukraine struck deep inside Russia using long-range, US-made Atacms missiles for the first time since the Biden administration lifted restrictions on their use on Sunday.
China’s Vice-Premier He Lifeng pledged more support for Hong Kong’s financial markets, saying in a keynote speech at the Global Financial Leaders Investment Summit in Hong Kong yesterday that China would help more Chinese companies to list in the city, improve mutual market access and issue treasury bonds. He said that mainland officials would seek measures to retain Hong Kong’s status as an international financial centre while encouraging greater mutual market access between Hong Kong and the rest of China. The top bosses from Goldman Sachs and Morgan Stanley called for greater transparency from China and for eased movement of capital to restore the appetite of global investors.
Monetary policy in Australia will be sufficiently restrictive until the central bank is confident that inflation is moving sustainably towards the target, minutes of the RBA's November policy meeting showed. At their meeting earlier this month, members of Australia’s central bank maintained that while there was no immediate need to adjust interest rates, it is important to remain “forward looking” and ready to adjust as economic conditions develop. Meanwhile, the outlook for underlying inflation has little changed since the August meeting.
Brussels is planning to force Chinese companies to transfer intellectual property to European businesses in return for EU subsidies as part of a tougher trade regime for clean technologies. New criteria requiring Chinese businesses to have factories in Europe and share technological knowhow will be introduced when Brussels invites bids for €1bn of grants to develop batteries in December, according to two senior EU officials who spoke to the Financial Times. The pilot could be rolled out to other EU subsidy schemes, they said.
G20 Statement Offers Lukewarm Support For Ukraine
The world’s biggest economies have signalled weakening support for Ukraine, issuing a joint declaration that watered down previously agreed criticism of Russia’s war against the country and included only a broad reference to “human suffering” caused by Moscow’s 1,000-day invasion. The statement from the leaders of the G20 group of advanced economies declined for a second year to issue an outright condemnation of Moscow’s invasion. Meeting in Rio de Janeiro, the G20 leaders agreed a statement on Monday that referenced the “negative added impacts of the war” and welcomed “initiatives that support a comprehensive, just, and durable peace”. The Rio document included just one paragraph devoted to the war in Ukraine, compared with seven paragraphs in the New Delhi statement.
The final communiqué also included calls for effective taxation of the super-rich, measures to alleviate poverty, a ceasefire in Gaza and reform of the UN Security Council, top priorities of host nation Brazil and its President Luiz Inácio Lula da Silva. The statement was issued in the name of all G20 members despite objections from Argentina’s President Javier Milei who published a statement that took aim at several elements including state intervention to combat hunger. The declaration also repeated last year’s demand for climate finance to increase from billions to trillions of dollars. However, there was a notable absence of a reference to the transition away from fossil fuels.
Hong Kong Pro-Democracy Leaders Jailed For Up To 10 Years
A Hong Kong court has sentenced 45 pro-democracy leaders to up to 10 years in jail for subversion, following a controversial national security trial. Benny Tai and Joshua Wong were among the so-called Hong Kong 47 group of activists and lawmakers involved in a plan to pick opposition candidates for local elections. Tai, a legal scholar described in court as one of the “principal offenders”, received 10 years while Wong received more than four years. Others received sentences of between 50 and 93 months. A total of 45 people have been jailed for conspiring to commit subversion, after two defendants were acquitted in May. Most of the defendants have been in detention for more than three years after being denied bail and will only have to serve the remainder of their sentences.
The defendants were accused of conspiracy to commit subversion over an opposition primary election in 2020. Prosecutors had alleged that they plotted to “paralyse” the government by winning a majority in the city’s legislature, which would allow them to block budgets and eventually force the city’s leader to resign. The defendants, who were arrested in sweeping dawn raids in 2021, represented some of the city’s most prominent pro-democracy politicians, activists, union officials, journalists, academics and student leaders. The trial of the Hong Kong 47, as the case was known, was the largest under the national security law that Beijing imposed following anti-government protests in 2019. Hong Kong followed up with its own security legislation in March.
The sentences come as five foreign judges have departed from Hong Kong’s top court this year, including former UK Supreme Court judge Lord Jonathan Sumption, who warned in June that the city was “slowly becoming a totalitarian state”. The three judges who presided over Tuesday’s hearing were selected from a government-vetted list for security cases.
The US consulate in Hong Kong strongly condemned the sentences, calling for the city’s government to “immediately release all political prisoners jailed for their peaceful advocacy for rights and freedoms”. Australian foreign minister Penny Wong said in a statement that Canberra was “gravely concerned” and called on China to “cease suppression of freedoms of expression, assembly, media and civil society” and repeal the national security law. China’s foreign ministry hit back at western criticisms on Tuesday, saying “those who break the law must be held accountable”. A spokesman said foreign criticism of the court sentences handed down on Tuesday tramples on the city's rule of law.
China Pledges Support For Hong Kong’s Financial Status
China’s vice-premier He Lifeng delivered a speech in Hong Kong where he said Beijing would look to issue more sovereign bonds in the city and maintain its status as a global financial hub. China said it would deepen market connections with Hong Kong by encouraging “quality enterprises” to sell shares, issue more sovereign bonds and encourage Chinese banks and insurers to set up regional headquarters in the territory. Speaking at the Global Financial Leaders Investment Summit in Hong Kong, vice premier He said that mainland officials would seek measures to retain Hong Kong’s status as an international financial centre while encouraging greater mutual market access between Hong Kong and the rest of China. “As long as it aligns with the central government strategy, benefits the country’s financial development and the development of Hong Kong as a global financial centre, we’ll study all possible measures thoroughly,” he said. Beijing’s stimulus measures have already “benefited” Hong Kong, he said. “The upward trajectory of the economy is more certain.”
The top bosses from Goldman Sachs and Morgan Stanley called for greater transparency from China and for eased movement of capital to restore the appetite of global investors. Speaking at the summit organised by the Hong Kong Monetary Authority, Goldman Sachs’ chief executive warned that global investors are still “predominantly on the sidelines” over deploying capital in China because of weak consumer confidence and difficulties getting money out of the country. David Solomon said investors “continue to be concerned” about cashing out of investments in the world’s second-largest economy. “It’s been very difficult over the course of the last five years to get capital out,” he told the event. “I think you’ve got a combination of issues that have global investors predominantly on the sidelines with respect to capital deployment,” Solomon said. He added that investors would like to see “an improvement in consumption” in China and “continued progress in the opening up of the capital markets”. Speaking on the same panel, Morgan Stanley chief executive Ted Pick said he agreed with Solomon. “Transparency is important and battling deflation takes time,” he said.
Speaking on the sidelines of the summit, veteran investor Howard Marks said he was hopeful about China’s economy but cautioned that the country’s growth target was a monumental challenge. “I’m still optimistic on China’s long-term possibilities, as long as they execute well and as long as they remain constructive with regard to the rest of the world,” the co-chairman of Oaktree Capital Management said. “Even though the growth rate they are targeting sounds modest compared to their history, it’s still very much above average for the rest of the world and will represent a Herculean challenge.” He said, “you can’t produce economic growth through stimulus perpetually. So their growth rate is abating, their use of stimulus is abating, and they’re trying to engineer the right combination,” adding that he was hopeful China will be able to meet the challenges. China has set a growth target of “around 5%” for 2024. The World Bank has projected China growth in 2024 at 4.8% and expects it to decline further to 4.3% next year.
EU To Demand Technology Transfers From Chinese Companies
Brussels is planning to force Chinese companies to transfer intellectual property to European businesses in return for EU subsidies as part of a tougher trade regime for clean technologies. New criteria requiring Chinese businesses to have factories in Europe and share technological knowhow will be introduced when Brussels invites bids for €1bn of grants to develop batteries in December, according to two senior EU officials who spoke to the Financial Times. The pilot could be rolled out to other EU subsidy schemes, they said.
The requirements, while at a much smaller scale, echo China’s own regime, which pressures foreign companies into sharing their intellectual property in exchange for access to the Chinese market. The criteria could be subject to change ahead of the tender, the FT report said. The plans represent part of a hardening stance from Europe towards China as it seeks to protect companies in the bloc, subject to strict environmental regulations, from being undercut by cheap and more polluting imports.
Chinese Tech Groups Build AI Teams In Silicon Valley
China’s biggest technology groups are building artificial intelligence teams in Silicon Valley, seeking to hire top US talent despite Washington’s efforts to curb the country’s development of cutting-edge technology, according to a report in the Financial Times. Alibaba, ByteDance and Meituan have been expanding their offices in California in recent months, seeking to poach staff from rival US groups who could help them make up ground in the race to profit from generative AI. The push comes despite US efforts to stymie their work. Chinese groups have been hit by a US ban on exports of the highest-end Nvidia AI chips, which are crucial for developing AI models. There are currently no restrictions on US-based entities related to or owned by Chinese tech companies accessing high-end AI chips through data centres located in the US. However, the Department of Commerce proposed introducing a rule in January that cloud providers have to verify the identity of users training AI models and report their activities.
Alibaba is recruiting an AI team in Sunnyvale in California’s San Francisco Bay Area and has approached engineers, product managers and AI researchers who have worked at OpenAI and the biggest US tech groups, according to the FT report. In the past few months, Meituan has been building out its team in California after executives grew alarmed that it was falling behind on AI, according to the report. TikTok owner ByteDance has the most established AI footprint in California, with multiple teams working on different projects. One research team is focused on integrating AI features into TikTok. One former researcher at OpenAI said they had been bombarded with messages from Chinese tech companies trying to learn more information about their experience at the company as well as offering job opportunities.
Trump Picks Howard Lutnick To Be Commerce Secretary
President-elect Donald Trump says he will nominate a key transition adviser and billionaire financial services executive, Howard Lutnick, to lead the Commerce Department. “He will lead our Tariff and Trade agenda, with additional direct responsibility for the Office of the United States Trade Representative,” Trump said in a statement announcing the pick. If confirmed, Lutnick would oversee a department that helps boost domestic manufacturing and US companies.
The Cantor Fitzgerald CEO has led and been the public face of Trump’s transition. Lutnick has been at Cantor Fitzgerald since the early 1980s. The commerce secretary announcement follows days of speculation over who might fill the remaining top Cabinet posts in the incoming Trump administration, including treasury secretary, for which Lutnick was viewed as a top contender. Commerce is smaller than the treasury department, with a workforce of about 50,000 people. Beyond its role in the US-China trade and tech war, its responsibilities include patent approvals, publishing economic data, and conducting the US census.
Australian Central Bank Discusses November Rate Cuts
Monetary policy in Australia will be sufficiently restrictive until the central bank is confident that inflation is moving sustainably towards the target, minutes of the RBA's November policy meeting showed. At their meeting earlier this month, members of Australia’s central bank maintained that while there was no immediate need to adjust interest rates, it is important to remain “forward looking” and ready to adjust as economic conditions develop. The bank’s members agreed that if consumption were to remain substantially weaker than its forecasts, and this was expected to significantly reduce inflation, then a cut in the cash rate target might be warranted, minutes of the bank’s November 4-5 monetary policy meeting showed. “At the same time, members highlighted that the current monetary policy setting might need to remain in place for longer than assumed if the recovery in consumption proved sharper than the forecast envisaged,” according to the minutes. Meanwhile, the outlook for underlying inflation has little changed since the August meeting. The Board had "minimal tolerance" for inflation above forecasts and would need more than one good quarterly inflation report to justify a rate cut.
Malaysia Trade Surplus Above Forecasts
Malaysia's trade surplus decreased slightly to MYR 12.0 billion (US$2.7bn) in October from MYR 13.0 billion in the same month the previous year, exceeding economists’ forecasts for a gain of MYR 9.6 billion. Exports grew by 1.6% year-on-year to MYR 128.1 billion, an upswing from an upwardly revised 0.6% fall in September, mainly driven by manufacturing (1.9%) and agriculture (8.9%), while mining and quarrying saw a significant decline (-12.1%). Meanwhile, imports increased by 2.6% to MYR 116.1 billion, the softest growth since November 2023. For the first ten months of the year, the trade surplus plunged by 46.3% from the same period of 2023 to MYR 102.8 billion, as exports (4.8%) expanded at a much softer rate than imports (14.6%).
October Eurozone Inflation Rate Confirmed At 2%
A final reading of annual eurozone inflation figures on Tuesday confirmed a preliminary reading of 2% for October, according to data from statistics agency Eurostat. This marked an increase from the 1.7% rate of September, which was the lowest level since April 2021. Inflation has now reached the European Central Bank’s target. Core inflation, which excludes food, energy, alcohol and tobacco prices, came in at 2.7%, the lowest since February 2022, also confirming the preliminary print. Compared to the previous month, the CPI rose 0.3%, following a 0.1% fall in September.
US Housing Starts Tumble To 3-Month Low
US housing starts tumbled, notching a steeper-than-expected monthly drop of 3.1% in October, new data showed. Hurricanes likely played a role in suppressing construction activity. Privately owned new construction totalled a seasonally adjusted annual rate of 1.31 million units, below the Dow Jones estimate for 1.34 million. The total also was 4% below October 2023. Building permits in the United States fell by 0.6%. Permits declined 7.7% from a year ago.
Canada Inflation Rebounds More Than Expected
The annual inflation rate in Canada rose to 2% in October from an over-three-year low of 1.6% in the previous month, exceeding economists’ forecasts of 1.9%. Despite the sharper-than-expected increase, the headline inflation rate remained within the Bank of Canada’s target for the third consecutive month. The increase was largely driven by waning base effects for gasoline prices. Gasoline prices fell by 4% annually from the 10.7% drop in September. Inflation slowed for shelter (4.8% vs 5%) and food (3% vs 2.8%).
Asian Equities Close Higher
Asian equities rose Tuesday, with Australia’s stock market hitting a record high. Australia’s benchmark S&P/ASX 200 climbed 0.9% to reach 8,374 as financial groups heavily weighted in the index registered strong gains.
Japan’s Nikkei 225 rose 0.5% to 38,414. CNBC reported that Sony is in talks to acquire Kadokawa, the Japanese media powerhouse behind the “Elden Ring” game, as the technology giant looks to add to its entertainment portfolio. Kadokawa’s stock closed 23% higher, while Sony’s shares rose 0.6%.
Taiwan’s semiconductor-heavy Taiex rose 1.3%. Taiwan Semiconductor Manufacturing Co gained 1.5% after shedding 6.0% over the previous six trading sessions.
South Korea’s Kospi climbed 0.1%. Shares of Samsung Electronics dipped 0.7% after surging 13.6% over the previous two sessions. Last week, it announced a US$7.2bn share buyback. It is the first time that Samsung has decided to buy back shares since 2017, and the amount is equal to nearly 3% of its market value.
Singapore equities rose to a 17-year high. The Straits Times Index added 0.7% to 3,346, the highest level since October 2007. In August, the Monetary Authority of Singapore announced the formation of a review group to recommend steps to strengthen the development of the equities market in the island nation, which hosts over US$4 trillion in assets under management.
In India, the Nifty 50 rose 0.3%. Indian stocks have had a weak start to the fourth quarter, with the Nifty declining 8.9%, even though it is up 8.2% for the year-to-date.
Asian defence stocks including arms makers and naval shipbuilders have been some of the world’s best performers this year as investors bet that the region’s companies are primed to lead a rearmament boom. US allies in Europe and Asia are bracing for Donald Trump’s second presidency to push them to pay more for their own defence. Big arms companies listed in South Korea and Japan are among the top 20 gainers on the MSCI All-Country World index for 2024. South Korea broke into the world’s top 10 arms-exporting countries last year, according to the Stockholm International Peace Research Institute. Shares in Hanwha Aerospace, South Korea’s largest defence group, have tripled this year to a market value of nearly Won 18tn (US$12.9bn), leaving them in dollar terms just behind Nvidia among the MSCI All-Country World’s biggest gainers. Hyundai Rotem, which is selling tanks to Poland, has risen about 140%. Mitsubishi Heavy Industries, Japan’s biggest defence contractor which manufactures battle tanks, submarines, surface ships and fighter jets, has gained more than 180% in Tokyo this year to a market value of ¥7.8tn (US$50bn). Kawasaki Heavy Industries, Japan’s second largest defence contractor, is up 100%. IHI, a key supplier of jet engines and rocket systems, up over 200%, is the third best performing stock on the Topix. In India, state-owned Hindustan Aeronautics and Bharat Electronics have outperformed domestic stock benchmarks, with the latter rising to become the Nifty index’s third biggest gainer in 2024. In Singapore ST Engineering, a maker of fighting vehicles and patrol vessels, is a top 10 performer. Kuang-Chi Technologies, a Shenzhen-based developer of so-called “metamaterials” that have applications such as stealth, has risen 150% this year in dollar terms.
Chinese Stocks Higher
The CSI 300 ended the session 0.7% higher at 3,977. China’s blue-chip index is down 6.6% from a post-stimulus peak on October 8. In Hong Kong the Hang Seng closed with gains of 87 points, or 0.4%, to end the day at 19,664. Support pledges by regulators did little to boost sentiment and the EU is also reportedly to demand tech transfers from Chinese companies in return for EU subsidies which would apply to batteries but could be expanded to other green sectors. The Tech index jumped 1.2% higher.
Better-than-expected earnings from Xiaomi failed to lift shares in the smartphone/EV maker, which fell 1.7%. Trip.com rallied 5.8% after posting a 16% jump in third-quarter revenue to 15.9 billion yuan (US$2.2bn). Zijin Mining jumped 4.7% as gold prices increased.
China may add commodity trading to the connect programme that now allows overseas investors access to yuan-denominated stocks, bonds and wealth-management products via Hong Kong, Wu Qing, chairman of the China Securities Regulatory Commission, said at the Global Financial Leaders Investment Summit in Hong Kong Tuesday. More options and futures will also be included in the cross-border investment scheme, he said.
European Markets At 3-Month Low After Russia Comments
European stocks turned negative, reversing early gains, hit by rising tensions over Ukraine. On Tuesday, Russian President Vladimir Putin approved an updated nuclear doctrine, outlining the requirements for the country to use nuclear weapons. The Kremlin said, "Russia reserves the right to use nuclear weapons in an event of aggression". It comes as Ukraine struck deep inside Russia using long-range, US-made Atacms missiles for the first time since the Biden administration lifted restrictions on their use on Sunday. The broad-based Stoxx Europe was down 0.5% at its lowest level for more than three months. Bank stocks fell 1.4% and travel was down 1.0%%, though health care managed a 0.6% gain. Paris’s Cac 40 dropped 0.7%, while Frankfurt’s Dax closed 0.7% lower. London’s FTSE 100 fell 0.1% with the outperformance helped by the index’s exposure to defence stocks.
Germany’s steel maker Thyssenkrupp jumped 11.7%, making the company the biggest gainer on the Stoxx 600, after narrowing its net loss and booking a US$1 billion impairment charge. Rheinmetall shares added 3.9%, taking the share price to an all-time high. Its defence segments are set to more than double from current figures to the 2027 forecast, the company said, as European countries boost their defence spending. Aéroports de Paris shares rose 3.3% after the operator of 26 airports said traffic across the group rose 6.5% in October. Imperial Brands shares, the owner of brands including Gauloises, Golden Virginia, Rizla and Blu, rose 3.1% after it said revenues from smoking alternatives such as vapes had jumped 26% in the past year. Big Yellow Group shares fell 4.9% after the London-listed self-storage operator said earnings per share fell 3% in the six months to September.
The German 10-year Bund yield dropped to 2.28% at one stage, its lowest in nearly four weeks, as investors sought safety amid geopolitical tensions and dovish signals from ECB officials. It later rebounded to 2.34%.
On Tuesday, the governor of the Bank of Italy said in a speech in Milan that the European Central Bank (ECB) should cut interest rates quickly over the coming months and effectively ditch its current “meeting-by-meeting” approach. “With inflation close to target and domestic demand stagnant, restrictive monetary conditions are no longer necessary,” Fabio Panetta said, urging policymakers to focus on the risk of inflation falling “well below 2%”. The ECB has cut interest rates three times this year to 3.25% and swaps markets are projecting a further 25 bps reduction in borrowing costs again in December.
The Bank of England (BoE) governor, Andrew Bailey, said Tuesday that he sees risks in both directions with regards to inflation. Bailey told the Treasury committee that progress on getting inflation down had been more rapid than the BoE had expected. However, he said that the BoE must approach further interest-rate cuts carefully as it assesses the impact of the Budget measure to raise employer national insurance contributions. “A gradual approach to removing monetary policy restraint will help us to observe how this plays out,” Bailey said in a report to the Treasury committee.
Wall Street Looks Past Russia-Ukraine Tensions
US stocks were higher Tuesday as investors turned their attention to earnings from bellwether companies in the consumer and technology sectors and overlooked worsening tensions in Ukraine. The S&P 500 was up 0.4% at the end of Tuesday trading at 5,916, recovering from a 0.7% decline earlier in the session. The Dow dipped 121 points, or 0.3%, to settle at 43,269. The Nasdaq Composite was up 1.0% at 18,987, with every “Magnificent Seven” stock trading higher. Nvidia surged 4.9% as investors look forward to the chipmaker's latest quarterly earnings report later today.
Tesla's stock added 2.1%, following a report that President-elect Donald Trump’s team plans to prioritise creating federal regulations for self-driving vehicles. The move could significantly benefit Tesla, which has long aimed to deliver fully autonomous cars but has yet to achieve this milestone. The stock is now up 60% in three months and 95% in six months.
Investors looked at two retail bellwethers for fresh insight into the state of the economy. Walmart, America’s biggest bricks-and-mortar retailer by market value, topped third-quarter earnings and revenue expectations. The retailer hiked its outlook again as its customers bought more discretionary merchandise, ordered more deliveries to their homes and started their holiday shopping. Shares of Walmart closed up 3.0% at a record high. Walmart’s shares have gained almost 60% this year, reflecting increasing confidence in its profit outlook.
Home-improvement chain Lowe’s topped third-quarter earnings and revenue estimates on Tuesday. The retailer raised its outlook, but still expects full-year sales to decline from the prior year. Shares of Lowes fell 4.6%.
Treasury Bonds Rally After Putin Nuclear Decree
Assets considered havens climbed after Vladimir Putin signed a decree allowing Russia to launch nuclear weapons in the event of a massive conventional attack on its soil. The warning comes as Ukrainian forces carried out their first strike within Russian territory with a Western-supplied ATACMS missile, RBC-Ukraine reported. The yield on the US 10-year Treasury note declined 4 bps to 4.38% on Tuesday, retreating from the nearly five-month high of 4.45% reached last week. The yield on the two-year note fell 1 bp to 4.27%.
Haven Currencies Rise
The dollar index initially strengthened on Tuesday amid a general flight to safety as concerns mount about an escalation over the Ukraine-Russia conflict. It later pared gains to end unchanged around 106.2 on Tuesday, after falling in the previous two sessions. The Swiss franc and Japanese yen advanced as investors sought the safest place for their money. The yen rose 0.6% at one stage to ¥153.77 before retreating to ¥154.70. Japanese Finance Minister Kato said it is important for currencies to move in a stable manner reflecting fundamentals and they will continue to take appropriate action against excessive forex moves.
The offshore yuan weakened 0.2% to Rmb 7.24 per dollar, hovering close to its lowest level in over three months, as concerns over potential US tariffs continue to cloud its outlook. Traders’ attention is also focused on the upcoming Loan Prime Rate decision from the People's Bank of China, scheduled for today.
The euro was unchanged at $1.0592, close to an over-one-year low of $1.0496 hit last week, as concerns over US trade tariffs impact on Eurozone growth and geopolitical tensions weighed on sentiment. Sterling was unchanged at $1.2675
Gold Continues Rebound
Gold prices extended a rebound to start the week, rising 0.8% to $2,631 an ounce, owing to its haven status. On Monday, Goldman Sachs said gold will surge to a record high next year on central bank buying and rate cuts from the Federal Reserve. The American investment bank listed the metal among the top trades for 2025 and said prices could extend to as much as $3,000 an ounce during Donald Trump’s second term as president.
Oil Slips On Risk Off Sentiment
Oil was initially on the back foot after Putin expanded Russia’s nuclear decree. Brent crude oil later rebounded to settle at $73.42 a barrel, unchanged on the day.
Bitcoin Close To Record High
Bitcoin is trading above $93,000 and close to a record high, up 37% since Donald Trump was elected on November 5. Bitcoin set an all-time peak of $93,462 shortly after the US election. Trump has vowed to create a friendly regulatory framework for digital assets, set up a strategic Bitcoin stockpile and make the US the industry’s global hub. The optimism in crypto has led to bullish bets, with some analysts predicting Bitcoin could reach $100,000 in the near future. The Nasdaq listed options on BlackRock’s Bitcoin exchange-traded fund yesterday, allowing investors to use derivatives to bet on or against the world’s largest digital asset.
Microstrategy, a once obscure software maker, said Monday it had bought about US$4.6 billion of bitcoin, its largest bitcoin purchase since it first started acquiring the cryptocurrency more than four years ago. It now holds about 331,200 bitcoins worth nearly US$30 billion, making it richer than IBM or Nike.
Peter Lewis’ Money Talk Podcast
On Wednesday’s “Peter Lewis’ Money Talk” podcast, I’ll be joined by Kenny Wen, Head of Investment Strategy at KGI Asia, and Carlos Casanova, Senior Asia Economist at UBP. With a view from Japan is Nick Smith, Japan strategist at CLSA.
The podcast is also available on Apple Podcasts, YouTube Studio and Spotify.
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This podcast is sponsored by Surfin Group, which is headquartered in Singapore and offers online financial services to 50 million customers across 9 countries. You can find out more about them by going to their website www.surfin.sg
