Archives of “February 3, 2020” day

rss

Japan’s January manufacturing PMI improved, but South Korea’s fell. Both are in contraction.

  
Analysis, Economy

Japan’s final manufacturing PMI for January has come in at 48.8 (the preliminary was 48.6)

We have also had the same from South Korea, coming in at 49.8
  • slipping into contraction from December’s 50.1
Elsewhere in the region, a mixed bag:
  • Taiwan January manufacturing PMI 51.8 (vs 50.8 in December)
  • Vietnam at 50.6 (vs 50.8 in December)
  • Malaysia 48.8 (vs 50.0 in December)
  • Philippines 52.1 (vs 51.7 in December)
  • Indonesia 49.3 (vs 49.5 in December)

The Richest Man in Babylon Rules

  
Analysis, Education
#  #  #

The Richest Man in Babylon is a great little personal finance book set as an ancient fictional tale that explains the ‘The Seven Cures to a Lean Purse’ and ‘The Five Rules of Gold’.

The Seven Cures to a Lean Purse:

  1. Start thy purse to fattening. Pay yourself first. Save money before you pay any bills.
  2. Control thy expenditures. Don’t spend every penny you make or you will be broke no matter how high your income becomes.
  3. Make thy gold multiply. Invest capital in assets that go up in value.
  4. Guard thy treasures from loss. Your number one priority is to keep your investment capital safe from loss.
  5. Make of thy dwelling a profitable investment. Buy a home in the right location as a hedge against inflation and to create equity and ownership over the long term.
  6. Insure a future income. Convert your earned income into assets that can create future case flow.
  7. Increase thy ability to earn. Grow your earning power through education, building skills, gaining experience in a field, or promotions to higher levels of responsibility.

The Five Laws of Gold:

  1. Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family. Save 10% of your income each time you are paid and convert it to investment capital.
  2. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field. Invest your capital for growth and compounding.
  3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling. Find a successful model or system to copy for investing your money.
  4. Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep. Never put money in something you don’t fully understand.
  5. Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment. This fastest way to go broke is to try to get rich quick.

the richest man in babylon

Fitch has affirmed Japan’s rating at A with outlook stable

  
  Analysis
#  #

Fitch rating agency of Japan – affirms ‘A’ & outlook stable

  • expects Japan’s broad policy continuity in coming year
  • says in addition to low interest rates, positive nominal GDP growth has kept trajectory of Japan’s public debt in check
  • inflation to remain murted in 2020 after pikcing up slightly in DCec 2019
  • does not expect change in the BOJ’s policy settings

China’s Global Times reports 30 separate measures being taken today to stabilise China markets

  
  Analysis
#  #  #  #  #  #  #  #  #  #

The GT does not outline what the 30 separate measures are unfortunately.

The piece says the outbreak will subtract 2% points from GDP growth and, in response:
  • officials have moved swiftly to implement growth stabilizing measures
GT lead with the People’s Bank of China action to come today
  • PBOC to inject 1.2 trillion yuan into the market … through reserve repurchase operations
Its a shame the GT does not elaborate with the info
  • the net effect is not a 1.2 tln yuan injection due to slightly over 1 tln yuan of funds maturing today.
  • The net injection is in the order of 150bn yuan.

Not doing so raises the question they have been not quite so forthright elsewhere. Which is not helpful. Anyway, this is what the article says further (in brief)

four government agencies that oversee the economy, including the Ministry of Finance (MOF), the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission (CSRC), issued financial support aimed at combating the coronavirus … 30 measures include
  • CSRC – would release and study tools to prevent risks and ease market panic
  • MOF released measures including offering loans with up to 50 percent discounts on interest to companies
  • Special financial services will also be provided for those affected by the epidemic, along with small and medium-sized businesses
  • Other agencies, such as the Ministry of Commerce and the National Development and Reform Commission measures include providing help for companies to resume production and expand foreign supplies for necessary products during this critical period.  

China will limit short-selling on market reopen on Monday

  
  Analysis
#  #  #  #  #  #  #

China will not allow short selling on their stock markets when they reopen for trade on Monday 3 February 2020

The information comes via unnamed sources cited at Reuters . saying China’s regulator (China Securities Regulatory Commission (CSRC)) had issued a verbal directive to brokerages to not permit clients selling borrowed stocks.
  • It was not clear if the suspension – which was first reported on Sunday by Chinese media outlet 21st Century Business Herald – would be extended beyond Monday, one of the sources said.
Over the weekend Adam outlined various other stabilisation measures being taken in China:
  • China unveils economic measures in effort to promote calm with markets set to re-open
On the PBOC cash injection, its not as big as it seems:
  • PBOC to inject cash funds today
Its going to be an “interesting” welcome to the new year for financial markets in China today.

HIV drugs show great promise in treating coronavirus patients

  
  Analysis
#  #

Thai doctors tout improvement with HIV and flu drugs

Thai doctors announced that a 71-year-old patient suffering from coronavirus for 10 days showed rapid improvement after being administered a cocktail of HIV and flu drugs.
The doctors decided to use oseltamivir (often sold as tamiflu and was used to treat SARS), as well as lopinavir and ritonavir, two AIDS drugs.
Doctors in China have also been using the combination because of the structural similarities between HIV and coronavirus. It’s a great sign that even if the virus turns into a global pandemic, the repercussions of the outbreak could be much less severe.
Separately, the drug remdesivir — which is not yet approved in the US — was given to Chinese authorities to conduct trials on patients. A US case in New England was also treated with the drug and was said to experience improvement and that “all symptoms have resolved with the exception of his cough, which is decreasing in severity,” according to researchers.
Go to top