HomeContributorsFundamental AnalysisHK Bill Could Arrive On Trump's Desk By As Soon As Thursday...

HK Bill Could Arrive On Trump’s Desk By As Soon As Thursday Morning

General Trend:

  • Hang Seng underperforms in Asia amid continued focus on the US’ HK bill and trade, HK-listed banks extend declines as PBOC again skipped its daily liquidity injection
  • Banks also trade generally lower in Shanghai
  • Nikkei declines amid continued press speculation about whether the BoJ is tapering its equity purchases; Softbank declines over 2%, said to seek billions in loans from Japanese banks
  • Shares of Westpac have continued to decline after recently disclosed legal proceedings in Australia, weighs on financials index in Australia
  • South Korean chipmakers drop as Trump commented on Apple and Samsung
  • Korean Won (KRW) underperforms in Asia amid trade concerns, Trump commented on Samsung; US Defense Sec said ‘haven’t heard of reports’ that the US may withdraw forces from South Korea [responded to press speculation]
  • White House Trade Advisor Navarro criticized China’s solar policy
  • Recap of Oct FOMC minutes (released on Nov 20th): MOST SAW RATES AS APPROPRIATE UNLESS THERE IS A MATERIAL CHANGE; Officials skeptical of caps on long-term Treasury rates; Not ready to commit to long-term market liquidity plans; Policymakers discussed using balance sheet tools to cap long-term Treasury rates; Officials did not see negative rates as useful tool in the US
  • China Commerce Ministry (MOFCOM) sometimes holds weekly press conference on Thursday’s during European morning

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened -0.1%
  • WBC.AU Australia PM Morrison: Board needs to reflect very deeply on senior management team following Austrac proceedings
  • MVP.AU Announces Penthrox IND approved in China
  • RHP.AU Reports Q1 Rev A$12.8M, +25% y/y; Affirms FY20 Op ~A$16M – AGM
  • MCR.AU Announces A$35M capital raise to be used for nickel development

Japan

  • Nikkei 225 opened -0.3%
  • 6740.JP Confirms former accounting exec embezzled over ¥500M
  • (JP) Speculation that Japan beef exports to China to resume as early as next year; Japan and China foreign ministers to meet in Tokyo next week – Japan Press
  • 2371.JP Announces ¥8.0B share buyback (after the close)
  • (JP) Japan Petroleum Assocation Pres: OPEC and other producers are likely to agree to cut oil output by 1.2M bbl/day

Korea

  • Kospi opened -0.1%
  • (KR) South Korea Unification Min Yeon-chul: Expect the US and North Korea to have 1-2 more opportunities to talk about nuclear weapons program before the end of 2019 – Yonhap
  • (KR) South Korea Nov 1-20 Exports y/y: -9.6% v -19.5% prior; Chip Exports y/y: -23.6% v -28.8% prior
  • (KR) US Sec Def Esper: US does not regret taking high road on halting joint drills; North Korea response was not positive; havent heard of reports to withdraw forces from S. Korea

China/Hong Kong

  • Hang Seng opened -1.1%; Shanghai Composite opened -0.3%
  • (CN) China Vice Premier Liu He: ‘Cautiously optimistic’ about reaching Phase 1 deal; remains confident but confused about US demands – speaking at Dinner Forum
  • (CN) China State Think Tank economist: Hong Kong issue is definitely a negative for US China trade talks; still likely for Phase 1 trade deal to be reached this year if there is no ‘disturbance’
  • (CN) Pres Trump reportedly is expected to sign Hong Kong bill – press
  • (CN) China Premier Li: China has maintained stable economic performance this year; confident we can achieve the main social and economic targets this year; reiterates to keep macro policy stable: proactive fiscal policy and prudent monetary policy
  • (CN) China State Council: China will continue to lower the tax burden on individuals by improving and better implementing the special individual income tax deduction mechanism; current tax breaks for the first 9M of this year total CNY440B for 250M individuals – Xinhua
  • (CN) China Sept Swift Global Payments CNY: 1.65% v 1.95% prior
  • (CN) China PBOC sets Yuan Reference Rate: 7.0217 v 7.0118 prior
  • (CN) China PBoC Open Market Operation (OMO): Skips for 2nd consecutive session
  • (CN) China Vice President Wang Qishan: International order is under attack; China still faces very severe external and internal challenges – speaking at new economy forum
  • (CN) China NDRC Deputy Chief Ning Jizhe: Competition in China’s domestic market is very fierce; China SOEs can compete with world SOEs – speaking at New Economy Forum
  • (HK) Hong Kong Government: Strongly oppose US House passing HK bill, US bill won’t help ease social unrest; sends wrong signal to the violent protesters
  • (CN) China Former PBoC Gov Zhou: Still has scope to deploy monetary policy; IMF can play an important rule in next crisis as in 2008

Other Asia

  • (SG) EU Singapore Free Trade Agreement, which will remove nearly all customs duties, comes into force today
  • (SG) Singapore Q3 Final GDP Q/Q: 2.1% v 1.8%e; Y/Y: 0.5% v 0.4%e; Sees 2020 GDP 0.5-2.5%
  • (SG) Monetary Authority of Singapore: Stance remains appropriate at this time; Policy will advance as economy evolves; core inflation range remains unchanged from Oct forecasts [2019 core CPI at lower half of 1.0-2.0% range]

North America

  • (US) FOMC OCT MINUTES FROM OCT 30TH MEETING: MOST SAW RATES AS APPROPRIATE UNLESS THERE IS A MATERIAL CHANGE; MOST SAW RATES AS WELL CALIBRATED
  • TIF LVMH said to raise offer to $130/shr, receives access to Tiffany’s books – press
  • INTC Sends letter to customers about shipment delays; Affirms Q4 guidance
  • (US) Pres Trump: We’re looking at whether Apple should be exempt from China tariffs, We have a great trade agreement with Korea; have to treat Apple and Samsung on a somewhat similar basis; China wants a trade deal more than I do; China isn’t stepping up to the level I want in trade talks – comments in Austin
  • (US) House passes Hong Kong support bill – press (as expected)
  • (CN) US White House Trade Advisor Navarro: China is exploiting bifacial loophole in solar tariffs, must close the loophole

Europe

  • (DE) Germany Finance Ministry: Oct Tax Rev +2.3% y/y

Levels as of 12:15EST

  • Hang Seng -1.7%; Shanghai Composite -0.4%; Kospi -1.6%; Nikkei225 -0.7%; ASX 200 -0.8%
  • Equity Futures: S&P500 -0.3%; Nasdaq100 -0.3%, Dax -0.4%; FTSE100 -0.3%
  • EUR 1.1073-1.1079; JPY 108.28-108.61; AUD 0.6787-0.6804;NZD 0.6398-0.6420
  • Commodity Futures: Gold -0.2% at $1,471/oz; Crude Oil -0.3% at $56.86/brl; Copper -0.3% at $2.64/lb
Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading