Archives of “February 2020” month

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US weighs new move to limit China’s access to chip technology – report

  
  Analysis
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US continues to target Huawei with proposed changes to restrict its use of chip-making equipment from the US

US China

The WSJ reports that the US is weighing new trade restrictions against China to cut off Huawei access to key semiconductor technology, citing people familiar with the plan.

It is reported that the Commerce Department is drafting changes to the foreign direct product rule, to make it so that chip factories overseas would need licenses if they intend to use American equipment to produce chips for Huawei. The full report can be found here.
That will be quite the change if it goes through as I reckon it won’t only add to more tensions between the US and China but also lead to further supply chain disruption in the industry as there will be a chunk of companies who will be restricted to do business.
But this once again goes to show that any real conciliation between the US and China on trade and other matters is still far away. The fact that the US wants to cut China off one of its key imports goes to show that these two are still clearly “at war”.

Hyundai to suspend one of its five South Korean factories in Ulsan due to virus impact

  
  Analysis

The suspension will take place from Tuesday to Thursday, for now

I’m still thinking that the market has not come to terms with the global implications that the coronavirus outbreak is having at the moment. The severity of the hit to global supply chains is one that shouldn’t be taken lightly and corporate earnings will suffer as such.

But with easy and free money flowing everywhere – as evident by China adding more today – it is truly a different trading/investing landscape than the world has come to know.

Trading Secret Seminar -By Anirudh Sethi ,Date :21st March -Baroda

  
Analysis, Trading Seminar

 

Golden opportunity 

Yes ,Your 3-4 hours……….will change your Trading Life

Technically Yours /ANIRUDH SETHI

Beijing to fast-track new mask factory to meet soaring demand amid virus outbreak

  
  Analysis

Beijing will set up a new mask factory within six days, Xinhua reports

Mask

The factory, to be converted from an industrial building currently, will be able to churn out 250,000 masks each day and is expected to be completed by this Saturday.

I reckon that won’t still be enough to meet the overwhelming demand but at least it will hopefully help with the situation and allow people to be more health-conscious moving forward. Still no clue on how they are going to solve this outbreak though.
I mean considering how contagious it is (Japan cruise as a good example), China has to really zero in on every single case or otherwise risk a resurgence again in the future.

SNB total sight deposits w.e. 14 February CHF 590.1 bn vs CHF 589.6 bn prior

  
Analysis, Economy

Latest data released by SNB – 17 February 2020

  • Domestic sight deposits CHF 504.2 bn vs CHF 503.0 bn prior
Prior week’s release can be found here. A rather minimal increase in overall sight deposits and that continues to suggest limited intervention by the SNB over the past few weeks.
If anything, this reaffirms that they can only slow down the appreciation in the franc and not counteract it altogether by the look of things – or fear incurring the wrath of the US.

China’s NHC says that new coronavirus is preventable and treatable

  
  Analysis

In other words, they are trying to change the public mindset to get the economy back up and running once again

China

Chinese officials are no doubt trying to calm down fears surrounding the situation but one can argue that it is better to be honest and transparent considering this involves the lives of thousands, if not millions of people around the world.
It is certainly preventable if the right measures are taken but all of this comes with a cost – one way or another – and I doubt any of it involves Wuhan or the Hubei province being able to come out of lockdown any time in the near future.
Meanwhile, just take note that WHO experts – including specialists from the US – have arrived in China today and that they will be visiting Beijing, Guangdong and Sichuan for inspections.

Singapore Q4 GDP 1 % y/y (vs expected 0.8 %) – lowers outlook for GDP ahead

  
Analysis, Economy
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Singapore MTI downgrades 2020 GDP growth forecast to -0.5% to 1.5% (previous forecast 0.5% to 2.5%)

  • Singapore MTI says 2020 GDP expected to come in at around 0.5%, the mid-point of the forecast range
  • Singapore says revising down 2020 growth, exports forecasts due to coronavirus outbreak

More:

  • Q4 manufacturing -5.9% % q/q at annualised, seasonally adjusted rate
  • Q4 services 2.2 % q/q at annualised, seasonally adjusted rate
  • 2019 non-oil domestic exports contract 9.2%
  • Singapore lowers 2020 non-oil domestic exports forecast to -0.5%-1.5% from 0%-2% previously

Japan GDP, preliminary for Q4 2019: -1.6% q/q (vs -1.0% expected

  
Analysis, Economy

Low expectations and even a miss on those.

more to come
GDP sa -1.6% q/q
  • expected -1.0%, prior 0.4%
GDP annualised sa -6.3% q/q … so ugly, biggest fall since 2014
  • expected -3.8%, prior 1.8%
GDP nominal q-1.2% q/q
  • expected -0.6%, prior 0.6%
GDP deflator (an inflation indication) 1.3%
  • expected 1.1%, prior 0.6% … some encouragement for the BOJ?
Private consumption -2.9% q/q
  • expected -2.0% q/q, prior 0.5%
Business spending -3.7% q/q
  • expected -1.6%, prior 1.8%
Just awful GDP numbers. Sales tax and typhoon impact cited.
  • imports fell, first time in 3 quarters
  • exports fell for 2nd consecutive quarter
Just wait for Q1 and the coronavirus impact.
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