HomeContributorsFundamental AnalysisSome Press Outlets Focused On COVID-Related Concerns

Some Press Outlets Focused On COVID-Related Concerns

General Trend

  • Real Estate and Air Transportation firms are among the decliners in Japan; Banks drop amid results from Mizuho Financial; Nissan Motor rises over 7% after raising outlook
  • Japanese companies expected to report earnings include Mitsubishi UJF and Sumitomo Mitsui Financial
  • Chinese telecoms drop; Reportedly Trump Admin is finalizing Executive Order to ban US purchases or sales of securities in Chinese companies with links to the China military
  • Property and financial firms decline in Shanghai and HK; Tech sector rises amid earnings from Tencent
  • Some outlets have focused on recent corporate debt defaults in China (Chenglong Construction, Yongcheng Coal & Electricity)
  • Decliners in Australia include Energy and Financial firms
  • China PBOC to rollover Medium Term Lending Facility (MLF) on Nov 16th, size to be decided by market demand (from Nov 4th)

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened -0.1%
  • (AU) Australia AOFM: Subject to market conditions a syndicated tap of the 2.75% 21 May 2041 Treasury Bond is planned to be conducted in the week beginning 16 November 2020. Issuance will be up to A$6B
  • (AU) Australia sells A$1.0B v A$1.0B indicated in 4.75% April 2027 bonds, avg yield 0.4439%, bid to cover 5.7x
  • Midway [MWY.AU]: Statement on China Quarantine on Australia Log Shipments: At this stage, ban only applied to softwood logs due to bark beetles; does not see material impact on the co.
  • (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: the assumption the economy will keep growing is a ‘big if’; Very comfortable with FLP and QE programs at present; Foreign asset purchases are not a preferred option
  • (NZ) New Zealand Oct Business NZ Manufacturing PMI: 51.7 v 54.0 prior

China/Hong Kong

  • Hang Seng opened -0.2%, Shanghai Composite -0.3%
  • (CN) Reportedly Trump Admin is finalizing Executive Order to ban US purchases or sales of securities in Chinese companies with links to the China military; Applies to 31 companies and takes effect Jan 11th with full divestment by Nov 2021 – press
  • (CN) Said that certain China banks have lowered holdings of China state Owned Enterprise bonds – Press
  • (CN) Former China Fin Min Jiwei: Time to study the exit of monetary policy, not fiscal policy; Even if Biden is US President, US China trade frictions will not necessarily be eased – Caixin Summit
  • Bytedance: US Commerce Dept issues stay of TikTok shutdown order – press
  • (CN) Stock market ‘anomaly’ in China gets the attention of PBOC scholars; 3 central bank scholars said to have suggested certain measures to deal with ‘irrational herding behavior’ related to the Hang Seng AH Premium index – SCMP
  • (CN) China Daily: China is not likely to make any changes to existing fiscal stimulus package in 2021, cites finance ministry officials; China may focus on additional steps to support the economic recovery
  • (CN) Henan Energy to meet with bondholders on Friday (Nov 13th), the meeting will cover the debt default by a subsidiary of the co. [Yongcheng Coal & Electricity] – Chinese press
  • (CN) Chenglong Construction said to have missed bond payment that was due on Nov 13th, cited liquidity shortage; the payment related to a 5-year CNY denominated bond – financial press
  • (CN) China Premier Li: Affirms China will be able to grow in 2020
  • (CN) China Oct Smartphone shipments -27.7% y/y
  • (CN) China PBOC sets Yuan reference rate: 6.6285 v 6.6236 prior
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY160B in 7-day reverse repos v Injects CNY120B in 7-day reverse repos; Net inject CNY160B v Net inject CNY90B prior

Japan

  • Nikkei225 opened -0.5%
  • (JP) Japan PM Suga: Given instructions to be on alert due to coronavirus spread (in line); No need to halt Go To Travel Promotion program; Experts say Japan is not in situation to declare state of emergency
  • (JP) Japan govt reportedly considering tax incentives for carbon-reducing investments – Nikkei
  • (JP) Japan said to consider clearer tax rate for profits from Fund Managers; Could cut tax on gains to 20% from 55%

Korea

  • Kospi opened -0.2%

Other Asia

  • (MY) Malaysia Q3 GDP Q/Q: 18.2% v 16.5%e; Y/Y: -2.7% v -4.3%e

North America

  • (US) CDC reports record 143.4K new coronavirus cases in the US in last 24 hours (v 134.4K d/d)

Europe

  • (UK) Reportedly UK Fin Min Sunak is preparing another multi-billion pound stimulus program to encourage consumer spending – Telegraph
  • (UK) PM Johnson Top Aide Cummings: the UK will maintain plan to leave EU by the end of 2020; Cummings to leave his role by the end of 2020 – UK media

Levels as of 00:20 ET

  • Nikkei 225, -0.7%, ASX 200 -0.2% , Hang Seng -0.4%; Shanghai Composite -1.1% ; Kospi +0.4%
  • Equity S&P500 Futures: flat; Nasdaq100 +0.3%, Dax flat; FTSE100 -1.1%
  • EUR 1.1813-1.1799 ; JPY 105.16-104.85 ; AUD 0.7242-0.7220 ;NZD 0.6860-0.6818
  • Gold +0.1% at $1,875/oz; Crude Oil -1.7% at $40.42/brl; Copper flat at $3.1355/lb
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