Asian Macro Initial Thoughts: after the selling expect the bounce. RBA rate decision infocus.

NZX opened lower and tested down to 12,126 but seeing a bounce; currently -109pts -0.9% at 12,155

Asia
Monday saw another day of heavy selling across all open markets with most Asian markets closing around their day lows. That selling continued into Europe and the US.  Initial indicators suggest that today we see a rebound but expect some caution with the RBA rate decision in focus.

Overnight CHF/EUR hiked to a nine-year high against the euro as investors flocked to safe-haven currencies amid concerns over US and global economic growth and the impact of a significant fall in global stock markets triggered by tensions in the Middle East. CHF/EUR once surged to 1.0856, the highest since January 2015. CHF/EUR has soared 3.5% since last week's US Federal Reserve interest rate meeting. USD/CHF also declined to 0.8497.Reuters reported that the Swiss central bank refused to comment on whether it would intervene in the market to stop the rise of the Swiss Franc. The Swiss central bank has cut interest rates twice this year, amid concerns that a strong Swiss Franc will affect local exports.

Overnight Regime change in Dhaka. Bangladesh’s dictator flees—leaving behind a dangerous vacuum The army tries to restore order after Sheikh Hasina, the country’s “iron lady”, escapes

Housekeeping
I will be on RTHK’s The Close on Thursday if you have a topic you would like discussed please let me or them know.    

Monday I was on HK Radio 3 Money Talk with Steven Filby to discuss the recession concerns in the United States as manufacturing data released late last week, alongside disappointing tech earnings reports worry global investors.

You can listen here https://lnkd.in/geYKFpkb  or 

on Apple Podcast
https://lnkd.in/geYTgqer
And Spotify
https://lnkd.in/gBU7FXtm

For leading independent research, check out http://ERI-C.com a platform for vendors of interesting research and trading analysis.  ERI-C is free to access, you can browse different independent research providers, most offer free trials so take a look.  

There are lots of contributors on the ERIC platform; many with free trails so let know if you have interest.  

For macro assets allocation checkout Mark Tinker’s  Market Thinking   
https://www.market-thinking.com     His latest blog  ‘It’s supposed to be quiet…..’  But this year is different.  Short Term Uncertainties - US Politics and the Yen. 

MARKET OPENING INDICATIONS 

New Zealand
NZX opened lower and tested down to 12,126 but seeing a bounce; currently -109pts -0.9% at 12,155
Data Due
Global Dairy Trade Price Index Aug/6 vs 0.4% prior

Australia 
ASX to open lower, futures opened -35pts but now -27pts -0.36% at 7,576,  Energy (weak but oil futures opening higher) but Miners weak as Gold and Iron Ore all lower overnight. Expect some caution ahead of the RBA rate decision.  
CBA earnings today too.
Watch Woodside Energy after it announced its second major acquisition in as many weeks; entering into an agreement to acquire OCI Clean Ammonia and its lower carbon ammonia project in Texas for an all-cash consideration of approximately US$2.35 billion (A$3.6 billion). The project is located on the US Gulf Coast and has a phase 1 design capacity of 1.1 Mtpa. First ammonia production, which will be derived from natural gas, is targeted for 2025.
Data out after the open
Job Ads Jul vs -2.2% Jun (F/cast is -0.9%)
Building Permits Final Jun vs 5.7% May (F/cast is -3.5%)
Private House Approvals Final  Jun vs 1.9% May (F/cast is -0.5%)
Lunchtime
RBA Rate Decision & Press Conference F/cast is for no change.

Japan 
Futures indicate Nikkei to open higher up 1,927 6.1% at 33,385
Chicago Futures up 450pts 1.35% at 33,770
Yen closed 143.98 in the US.  
Earnings in focus.
Data due pre market 
Average Cash Earnings Jun vs 1.9% May (F/cast is 2.4%)
Overtime Pay Jun YoY vs 2.3% May (F/cast is 1.8%)
Household Spending Jun vs -1.8% May (F/cast is 0.8%)
Lunchtime
10 yr JGB Auction vs 1.091% prior

S Korea 
Market to open lower with continued selling pressure in Tech and broader weakness.
No Data Due

Taiwan 
Market to open lower with broad pressure but also could see some bargain hunting.
Data Due after market 
Inflation Rate Jul MoM vs 0.26% Jun 
Inflation Rate Jul YoY vs 2.42% Jun 

China 
CSI 300 to open flat after Golden Dragon Index closed up 13pts 0.25% at 5,373
FTSE A50 futures up 44pts 0.38% at 11,685
It will be interesting to see whether Beijing’s announcement on Saturday of new initiatives to stimulate consumer spending, will have impact today. The State Council outlined 20 key measures to try and expand basic consumption in sectors such as catering, home services and elderly care.  They are seeking to foster new types of spending, cultivate unmanned retail stores and support the development of electronic sports and live streaming e-commerce.
No Data Due 

Hong Kong 
HSI to open flat after the ADR’s closed up 38pts 0.23% at 16,736 with ADR’s mixed; in the green HSBC, CLP, ICBC, HK EX, AIA, Baba and Meituan.
HK Futures +98pts 0.6% at 16,796
No Data Due 

Singapore 
Data Due 
MAS 4 week Bill Auction vs 3.79% prior
MAS12 week Bill Auction vs 3.72% prior

Indonesia 
No Data Due 

Philippines 
Data Due 
Inflation Rate Jul YoY vs 3.7% Jun (F/cast is 3.8%)
Inflation Rate Jul MoM vs 0.0% Jun (F/cast is 0.1%)
Core Inflation Rate Jul YoY vs 3.1% Jun (F/cast is 3%)
Balance of Trade Jun vs $-4.601b May (F/cast is -3.9b)
Exports Jun YoY vs -3.1% May
Imports  Jun YoY vs -0.03% May

Thailand 
Data Due could get
Inflation Rate Jul YoY vs 0.62% Jun (F/cast was 0.6%)
Core Inflation Jul YoY vs 0.36% Jun (F/cast was 0.4%)

Malaysia
No Data Due

Cambodia
Market re-opens
No Data Due 

Vietnam
No Data Due

India 
As fears of a potential recession in the United States drove investors away from risky assets, Sensex closed Monday's session over 2,200 points lower, while Nifty slipped below the 24,100 level due to selling in heavyweights.  Meanwhile, the market capitalisation of all listed companies on BSE declined by Rs 15.34 lakh crore to Rs 441.82 lakh crore.
No Data Due 

Europe 
Data Due
Eurozone Construction PMI, Retail Sales
Germany Factory Orders,Construction PMI, 5 year Bobl Auction 
France Private Non Farm Payrolls Prelim, Construction PMIUnited Kingdom Construction PMI, 20 year Treasury Gilt Auction 

United States 
Futures Dow 170pts 0.45%, S&P 0.45%, NDX 1%.
Data due Balance of Trade, Exports, Imports, Redbook, TIPP Economic Optimism Index, Total Household Debt, Logistics Managers Index, API Crude Oil Stock Change.
Earnings continue 

HEADLINES and NEWS 

AUSTRALIA 
Uber EV pilot could jumpstart Australian second-hand market. Ride-share and delivery drivers could lease second-hand Japanese electric vehicles starting from $124 a week, as the company bids to be emissions-free by 2040.

Playing whack-a-mole: Scammers set up new WhatsApp group after ASIC arrests. The administrator of a WhatsApp group invited hundreds to join a new stock market manipulation scheme the day after four Australians were arrested for allegedly similar conduct.

The big changes to expect in The Coffee Club’s quiet revival.  Chief executive Scott Meneilly hopes the chain can shake its image of being daggy and “way behind current times”.

ASIO raises terrorism threat level due to emerging ‘twisted’ ideologies. The spy agency has raised the national threat level to “probable” after eight recent alleged terrorist incidents in Australia and difficult-to-define ideological threats.

JAPAN 
Finance Minister Shunichi Suzuki said on Monday authorities were watching exchange-rate moves closely, speaking after the Nikkei stock average (.N225) plummeted in its biggest rout since 1987. He said it was desirable for foreign exchange rates to move in a stable manner and reflect economic fundamentals.  Speaking to reporters, he declined to comment on whether current yen levels were deemed excessive.

On Monday Nikkei 225 Stock Average closed down 4,451 or 12.4% at 31,458 pts today (5th), logging the biggest drop in its history. USD/ JPY last grew 2.8% at 142.37, peaking at 141.68 during the session, an about-8-month high since the beginning of the year. Japan's Finance Minister Shunichi Suzuki said he is closely monitoring the exchange rate and hoped it will remain stable and reflect the fundamentals of the economy. Yet, he declined to comment on whether the JPY level is too high, adding it is difficult to explain the decline in the stock market at the moment.

Hayashi Yoshimasa, Chief Cabinet Secretary, said he will keep close tab on market trends and take all possible measures to control the economy and financial markets.  Heavyweight trading houses such as Mitsubishi, Mitsui and Co., Sumitomo and Marubeni all plunged more than 14%.

Watch Honda Motor (7267.T) will report tomorrow April-June quarter consolidated first-quarter operating profit of more than 450 billion yen ($3.17 billion), boosted by strong U.S. hybrid vehicle sales, the Nikkei newspaper reported on Monday.  A Honda spokesperson said the information was speculation by Nikkei, adding that it was not something the company had released.

SOUTH KOREA 
NCSoft, a major South Korean game developer, said Monday its operating profit decreased 75 percent from a year earlier on sluggish sales.  Operating profit for the April-June period came to 8.8 billion won ($6.4 million), compared with 35.3 billion won a year ago, and sales fell 16.2 percent on-year to 368.9 billion won, the company said in a regulatory filing. Net profit for the period, however, jumped 132.8 percent on-year to 71.1 billion won thanks to favorable currency exchange rates, according to the company. Market watchers expected NCSoft to post an operating loss, but the company said it was able to post an operating profit thanks to its cost-cutting efforts, including labor costs.

SK Group Chairman Chey Tae-won called for its memory chip-maker SK hynix to seek next-generation profit models to continuously secure its leadership in the burgeoning artificial intelligence semiconductor market. “SK hynix is currently recognized in the high bandwidth memory market, but competition will become more intense when the sixth generation HBM4 is commercialized next year,” Chey said upon his visit to the chip maker’s plant in Icheon, Gyeonggi Province, to inspect the HBM production line. “We shouldn’t be complacent about the present and take our next step more seriously.” The chairman also stressed the necessity for ongoing research and development and effective investment to ensure SK's technological leadership in the AI domain. He further urged employees to join forces and respond strategically in an unpredictable chip business environment.

Woori Investment & Securities, a brokerage house under Woori Financial Group, is poised to bolster its presence in investment banking, backing the potential of its group affiliates. The securities firm, formed through the merger of Woori Investment Bank and Korea Foss Securities, officially launched Thursday. The launch comes nearly 10 years after Woori Financial Group sold its securities firm to NongHyup Financial Group in 2014. “Woori Investment & Securities will be a key affiliate for Woori Financial Group,” the securities firm’s inaugural CEO Nam Ki-cheon said at a press event held Monday in Seoul.

Hyundai Glovis has partnered up with Chinese firm Huayou Cobalt to create an extensive recycling network for electric vehicle batteries, aiming to lead the way in sustainable battery management. Hyundai Glovis, a Korean logistics and distribution powerhouse, inked a memorandum of understanding with Zhejiang Huayou Recycling Technology, or Huayou Recycling, a subsidiary of cobalt giant Huayou Cobalt. Known for being the world's top producer of cobalt -- a crucial element for EV batteries -- Huayou Cobalt also stands out as the second-largest producer of high-nickel precursors and the third-largest producer of high-nickel anodes. The agreement, signed last Thursday at Huayou Recycling's headquarters in Zhejiang, China, was attended by Hyundai Glovis CEO Lee Kyoo-bok and Huayou Recycling General Manager Bao Wei. The partnership aims to enhance cooperation in the domestic and international electric storage system market, establish a global recycling system for EV batteries, and optimize supply chain management and logistics for battery manufacturing and recycling.

The head of South Korea's financial regulator said Monday that he will redouble efforts to reduce high household debts via the implementation of tighter curbs.  Kim Byoung-hwan, the chief of the Financial Services Commission, also said the regulator will remain vigilant against potential volatility in the financial market. "The very reason for our financial system's vulnerability to external shocks is relatively high indebtedness and dependence on debts," he said. "We need to change a debt-dependent structure to secure stable and vibrant growth as well as financial stability," the FSC chief said.

TAIWAN 
The Democratic Progressive Party (DPP) caucus yesterday slammed former president Ma Ying-jeou’s  comments that the government was squandering money on national defense, saying he has embarrassed himself by ignoring China’s rapidly expanding armed forces and military threat against Taiwan.  During a speech on Sunday at an event in Bangkok, Ma said the government had taken on a heavy burden by allocating large sums of money for military expenditure, notably to buy US-made weapons, as payment for “protection,” as former US president Donald Trump has said. “Money-pit bills” to buy arms would ruin public finances and only benefit the US defense industry, he said.

Innolux Corp yesterday said it would cut its factory utilization rate by more than 5 percentage points this quarter to ensure stable earnings, as lingering inflation risks and uncertainty about interest rate cuts has dampened demand. As a result, shipments of TV and PC panels would shrink by a low-single-digit percentage this quarter compared with last quarter, Innolux said. The company’s average selling prices would remain steady compared with last quarter’s US$259 per square meter, it said.  We have not seen any indications of a stronger pick-up in demand in the second half of this year,” Innolux president James Yang told investors. “Therefore, any upward or downward adjustments should be minor.” TV panel demand would only recover in the second quarter of next year, when the industry’s seasonal demand cycle emerges, Yang said.

Infineon Technologies AG reported revenue that missed analysts’ expectations after the hoped-for resurgence in the electric vehicle (EV) market was delayed. Sales fell 9.5 percent to 3.7 billion euros (US$4.1 billion) in the past quarter from the same period a year ago, the company said yesterday. That compared to the average 3.79 billion analyst forecast compiled by Bloomberg. Infineon’s segment result margin, a measure of profitability, was 19.8 percent for the quarter, in line with analysts’ estimates.  Infineon is among the European chipmakers that specialize in making the type of chips used in cars and have grown especially dependent on automakers for their sales. The company, alongside peers STMicroelectronics NV and NXP Semiconductors NV, has been affected by the auto industry’s pullback from EVs, which in turn has been driven by higher interest rates, weaker-than-expected economic growth and a continued lack of charging stations.

CHINA
USD Index slipped, as USD/ CNH once shot up above 7.1 Monday  evening (5th) to peak at 7.0954, setting an over-7-month high since last year end before receding. It last rallied 475 bps or 0.66% to 7.1136. 

An uncrewed Chinese military aircraft flew with its tracker switched on close to Vietnam's coast last week, a South China Sea research body told Reuters, the first time in the group's five years of monitoring that Beijing has made such operations visible.  Friday's flight by the WZ-10 aircraft originated on Hainan island and returned there after following a path roughly 100 km (62 miles) from Vietnam's coastline to the southern city of Nha Trang, according to a map of its trajectory seen by Reuters and shared by Van Pham, general manager of the South China Sea Chronicle Initiative, who used publicly available tracking data.

China's coast guard said it was monitoring Philippine patrol and fishing vessels that have gathered around the contested Sabina Shoal, citing China's "indisputable sovereignty" over the Spratly Islands in the South China Sea.  China's coast guard had been monitoring the vessels since Saturday, spokesperson Gan Yu said in a statement late on Sunday.  Gan said patrol boats from the Philippine Bureau of Fisheries and Aquatic Resources (BFAR) and multiple fishing boats have gathered in the waters near a Philippine ship which China has said was "illegally stranded" at the shoal and that "violates" China's territorial sovereignty and maritime rights and interests in the region.  In response, the Philippine Coast Guard (PCG) said China has no reason to complain about its vessels because Sabina Shoal is within its own exclusive economic zone (EEZ).

PCG Spokesperson Jay Tarriela also said the ship the Chinese say is "illegally stranded", the BRP Teresa Magbanua, "was purposely deployed there to safeguard our EEZ and whether it will stay longer there is not their concern.”  On Sunday, the PCG said it has deployed inflatable boats from Teresa Magbanua to support the fisheries bureau while it distributed fuel to Filipino fishing boats at the shoal.

Chinese regulators have asked a number of large state-owned financial institutions to stop employing PricewaterhouseCoopers (PwC) as their auditor in recent months, Reuters quoted sources as saying. PwC was penalized for its involvement in the audit of EVERGRANDE (03333.HK).  More than 30 listed Chinese companies, including BANK OF CHINA (03988.HK) and CHINA LIFE (02628.HK) have stopped using PwC this year, according to Reuters. The relevant instruction was one of the reasons why these companies terminated their cooperation with PwC, sources said.

Eastern China baked under unseasonably high temperatures, with the excessive heat expected to linger in mega coastal cities in the highly industrialised provinces of Jiangsu and Zhejiang for up to 10 more days.  In the east and northwest of China, temperatures as high as 43.9 degrees Celsius (111.02 degrees Fahrenheit) have scorched Zhejiang, Jiangsu, Shanghai, Anhui, Xinjiang in recent days, state broadcaster CCTV said.  On the coast, Zhejiang's provincial capital Hangzhou recorded a 41.9C historical high on Saturday. The city of 12.5 million people is expected to swelter under temperatures exceeding 40C through Aug. 11.  In nearby Shanghai, the maximum load, or demand, on its power grid exceeded 40 million kilowatts for the first time on Friday as 40C temperatures boosted electricity consumption in the city of nearly 25 million people, according to industry news outlet BJX. Com.  With the extreme heat this summer, electricity usage has also risen due to increased demand for air-conditioning. The spike in electricity demand could threaten a supply crunch.  Zhejiang's State Grid since last month began recommending electric vehicle owners charge their vehicles late at night to stagger electricity use from daily peak hours. It also advised people to turn off air-conditioning when temperatures were milder.

The number of Chinese couples who got married in the first half of this year fell to its lowest level since 2013, official data showed, as more young people deferred nuptials amid a slowing economy and a rise in living costs.  The number of marriages in China is closely tied to the number of births, and the decline is likely to upset policymakers trying hard to boost the population which has been shrinking for years.  A total of 3.43 million couples tied the knot in the first six months of the year, a drop of 498,000 from the same year-ago period, the data on marriage registrations showed.  Marriage is seen as a prerequisite for having children due to widespread incentives and policies, including a requirement for parents to present a marriage certificate to register their child and receive state benefits. 

HONG KONG  
Earnings include Tectronics (669), Wharf REIC (1987), Fugal Glass (3606)

IPO
Zhongmiao Holdings (Qingdao) Co., Ltd. - H Shares(01471.HK), listing today, opened up 2.9% to $7.2 on gray market, and last printed at $7.25, up 3.6% from the listing price , on volume of 226,000 shares and turnover of $1.66 million, according to PhillipMart data.  Futu reported  them opening up 2.3% to $7.16 on gray market, and last printed at $7.3, up 4.3% from the listing price , on volume of 67,000 shares and turnover of $495,190.

It was rumoured that Honor is seeking a listing on the A-share market. According to Chinese media, Honor responded that it is planning to initiate the corresponding shareholding reforms in the fourth quarter of this year, after which it will begin the IPO process in due course, and that the company will publish relevant financial information during the process. From 1 January 2021 to the present, Honor has not received any support from the Shenzhen Municipal Government beyond that which would normally be given to an enterprise. TELLING HOLDING (000829.SZ) and AISIDI (002416.SZ) both of which have a stake in Honor, strongly rallied and triggered a trading curb at around 2:40 pm. However, staff at both companies said they had no prior knowledge of the IPO and learned about it through the news just as investors did.

GAC GROUP (02238.HK)'s GAC Aion is pushing ahead with its plan to list in Hong Kong. According to an investment document released by the China Beijing Equity Exchange (CBEX), GAC plans to transfer a portion of its shares of the NEV unit by way of listing on CBEX. The investing entity is CHINA CINDA (01359.HK)  -0.010 (-1.587%)    Short selling $1.83M; Ratio 6.073%   , but the announcement did not mention the number of shares or proportion of the shares it intends to transfer. The period is from 1 August 2024 to 22 January 2025.

The investment announcement showed that GAC Aion is preparing for an IPO in Hong Kong recently, and the preparatory work for listing is now underway as scheduled.

Buybacks
AIA (01299.HK)  announced that it repurchased 7.553 million shares of the company Monday (5th) at $50.1-53.05 per share, involving a total of $394 million. Since the repurchase authorization resolution was passed, the Group has repurchased nearly 194 million shares, representing 1.7233% of its issued share capital.

SWIRE PACIFIC A (00019.HK) repurchased 169,500 shares on the Stock Exchange Monday at a price per share ranging from $64.65 to $67.15, involving approx. $11.18 million, according to SWIRE PACIFIC A's disclosure return. Since the ordinary resolution was passed, the Company has repurchased a total of 9.202 million shares, accounting for 1.1018% of its share capital.

HSI Short Selling  Monday 19.7% vs 20.9% Friday 
Top shorts  Hang Seng Bank (11) 54%, New World Development (17) 49%, Sands China (1928) 43%, Zhong Sheng (881) 40%, Bud APAC (1876) 36%, BoC HK (2388) 36%, Anta Sports (2020) 35%, CM Bank (3968) 35%, Bank of China (3988) 34%,  Xinyi Glass (868) 34%, HSBC (5) 32%, China Res Beer (291) 31%, Haidilao (6862) 30%, Haier Smarthome (6690) 30%, Xinyi Solar (968) 30%, China Life (2628) 29%, MTRC (966) 28%, Sinopec (386) 27%, CSPC Pharma (1093) 27%, Geely (175) 27%, Wharf REIC (1997) 27%, Sino BioPharm (1177) 27%, Nongfu Spring (9633) 27%, China Overseas (688) 27%, ICBC (1398) 26%, Hansoh Pharma (3692) 25%, CCB (939) 25%, Hengan (1044) 25%, BYD (1211) 25%, JD Health (6618) 25%.

Government 
Civil servants have to obtain authorization from department heads before using a range of cloud storage and instant messaging services -- including WhatsApp Web and WeChat -- after implementing the new Government Information Technology Security Policy and Guidelines.  The Guidelines, which were updated in April, noted that civil servants were restricted from using personal emails, public cloud storage, and web-based instant messaging services on office computers due to security concerns.  

WATCH
China Evergrande (3333.HK) said on Monday the indebted property developer has obtained injunctions against three executives, and it seeks to recover about $6 billion from legal proceedings against seven individuals.  In late March, liquidator Alvarez & Marsal started legal proceedings against seven individuals, including the company's former top brass, in a Hong Kong Court. The company aims to recover the $6 billion it paid on the basis of allegedly misstated financial statements for each of the financial years ended December 2017 to December 2020.

Country Garden (2007) saw its contracted sales plunge 72 percent to 3.41 billion yuan (HK$3.73 billion) in July from a year ago, adding to the Chinese developer's woes as it tries to avoid liquidation. This follows a 73 percent slide in June, corporate filings show. The distressed real estate giant is counting on a turnaround in sales to increase its survival chances, as it fights a wind-up petition in a Hong Kong court following its 2023 default. Last week, it was given more time to work on an offshore debt restructuring plan when the case was adjourned to January.

Yum China Holdings (9987.HK) said finance chief Andy Yeung intends to resign for personal reasons, effective Sept. 30. Adrian Ding, the company's chief investment officer, has been named as acting CFO, effective Oct. 1. Yeung, who has served as Yum China's chief financial officer since October 2019, will serve as senior adviser to the company's CEO Joey Wat from Oct. 1 to Feb. 28, 2025. The company also named Mikel Durham to the board, increasing the size of its board to 12 directors.

Some local media reported this morning (5 Aug) that the Health Bureau is planning to amend the terms of the Voluntary Health Insurance Scheme (VHIS) to extend its coverage to include Chinese medicine hospital services. The Hong Kong Federation of Insurers (HKFI) responded that it had no particular position on the matter and it was negotiating with the Health Bureau, the VHIS Office and the Chinese Medicine Hospital on the relevant details. According to HKFI, the insurance sector needs to understand the future treatment options of Chinese medicine hospitals and the requirements of the VHIS Office on the coverage and level of protection before formulating an appropriate health insurance plan, and therefore it is not clear whether there will be any impact on premiums for the time being. The HKFI has also disclosed that it will continue to discuss and communicate with the above three organisations, with a view to obtaining details as soon as possible, so as to design appropriate coverage to tie in with the commissioning of the Chinese Medicine Hospital.

WYNN MACAU (01128.HK) announced that "Wynn Signature", the exclusive lifestyle brand of Wynn Resorts, presented the "Wynn Signature - 2024 Hypercar Exhibition" at Wynn Macau and Wynn Palace from 1 August through 13 October. The exhibition showcases 30 of the ultra-luxury hypercars valued at HK$1.5 billion.  Models at the Exhibition include Apollo, Aston Martin, Bugatti, De Tomaso, Ferrari, Gunther Werks (renowned for remastering the Porsche), Koenigsegg, Lamborghini, McLaren, Pagani, and more masterpieces. 

MGM CHINA (02282.HK)  will host its first major poker tournament series, "2024 MGM Poker Tournament Series", in September. It will run from 3 to 15 September for a total of 13 days at MGM Cotai, featuring four events and multiple satellites.  The series will kick off with two Millionaire Maker Poker Tournament satellites on 3 September, followed by two single table satellites each day to 12 September. The series proper will begin on 4 September.

UBTECH ROBOTICS (09880.HK) announced a recent strategic partnership with GEELY and MIRACLE (002009.SZ) to integrate their respective resource strengths to jointly promote the application of humanoid robots in the field of intelligent manufacturing of automobiles and parts, and to jointly create innovative demonstration applications. ZEEKR 5G Smart Factory under Geely Holding Group welcomed its first humanoid robot “staff”, Walker S Lite, in early July, which is a new lightweight and rapidly deployable product launched by UBTECH for the fields of smart manufacturing and smart logistics. Up to now, Walker S Lite has been a "trainee" in ZEEKR 5G Smart Factory for 21 straight days, and has been working with employees in CTU loading station to carry out transportation tasks. It is not only the first humanoid robot in China to carry out the whole process of container transportation and show it to the world, but also has the best degree of completion of the operation and the degree of difficulty of execution in the industry.

A number of voltage dip incidents occurred in various districts of Hong Kong during the year. CLP HOLDINGS (00002.HK)  recognized the inconvenience caused to the public by the recent electrical accident, and the Company is striving to further improve the reliability of electricity supply, Chiang Tung Keung, CEO of CLP HOLDINGS, said. Chiang explained that the voltage dip lasted for about 0.1 second. Although it was only a short period of time during which there was no interruption in power supply, it would still affect the normal operation of customers' equipment.  Hence, emphasis would be placed on examining ways to minimize the impact of the voltage dip on the operation of customers' equipment in the future. In 1H24, CLP HOLDINGS' average net tariff decreased by 1.6%. Chiang added that Hong Kong's electric bill is mainly affected by international fuel prices, and that tariffs in 8M24 decreased by about 2%, with the fuel cost adjustment (FCA) in August being $2.7 cents per unit lower than the level in January. There is expected to be room for tariff adjustment if the trend of international fuel prices is relatively stable or further decline for the rest of the year.

CLP HOLDINGS (00002.HK) declared a second interim dividend of $63 cents per share, on par with the first interim dividend and the dividend for the same period last year.  CLP HOLDINGS has always maintained a stable and sustainable shareholder return approach, and will consider increasing the dividend where possible as its results continue to grow, but everything is still subject to the Board's scrutiny, Chiang Tung Keung, CEO of CLP HOLDINGS, said.  The old projects of CLP China's renewable energy subsidiary should record a national subsidiary receivable amount of over $2.7 billion by the end of June 2024. Chiang said that the Company continued to receive subsidies, and there is no collection issues. All of the wind farms and solar photovoltaic power stations currently under development by CLP China are "grid-parity" projects, with no need to rely on national subsidies for operation, Chiang added.

The number of fraud cases in Hong Kong reached 39,800 in 2023, up 42.6% YoY, meaning that nearly one out of every two crimes was a fraud case, with the amount of loss exceeding $9.1 billion, according to the statistics from the Hong Kong Police. In order to enhance customer protection, HSBC will continue to spend more on anti-fraud work this year, with a double-digit increase in the amount invested compared to 2023, the Head of Anti-fraud of Wealth and Personal Banking at HSBC Hong Kong said.

EUROPE & US RECAP
DAX -1.82%, CAC -1.42%, FTSE -2.04%
Markets opened lower and trended lower through the morning but did see find a bottom late morning and then trade better in the PM session. Tech clawed back some ground from over -3% to end 1% lower. All sectors and major bourses nonetheless finished in the red, with utilities and oil and gas stocks both losing over 3%.  Yen strength and a re-rating of Tech being blamed.  But the reality is that markets wee priced for perfection and the BoJ’s move was unexpected.  Nothing has fundamentally changed most stocks.

U.K. services PMI rose in July to 52.5 vs 52.1 Jun.  Corresponding data for Italy and Spain also pointed to sustained growth in the sector but at a slower pace than previous months.

DOW -2.6%, NDX -3.43%, S&P -3%, Russel 2K -3.33%
US stocks opened lower but rallied initially, pulled back and then worked better into lunch. But then eased back in the afternoon but closed well off the initial lows.

Many worry that the Fed may now be behind the curve when it comes to cutting rates and see an increased risk of a hard landing for the US economy.   But I think the Fed can compensate if needed with a 50bpt rate cut but there is a lot of data to come before the next FOMC meeting.  I think this is a knee jerk reaction having been priced for perfection.  The VIX hit 65 level. Intraday; a level not seen since covid hit in 2020.  Even Bitcoin came under selling pressure.

Nvidia -6.5% after going into the session already down more than 23% from its recent high.

Apple -4.8%after Warren Buffett’s Berkshire Hathaway cut its stake in the iPhone-maker in half.

Other losers included Tesla -4.2% and Super Micro Computer -2.5%.

The US services sector expanded at a faster-than-expected pace in July at 51.4 vs 48.8 Jun (f/cast was 50.9), providing a respite of positive economic news to counter fears of a looming recession. Other areas of the PMI survey also showed positive signs. The employment index rose 5 points, coming out of contraction for a reading of 51.1%. In addition, the business activity and new orders indexes also came out of contraction while inventories, new orders and backlogs all saw sharp gains.

Banks JPMorgan Chase -2.13%, Citigroup -3.42% Wells Fargo -2.14%, Amex -2.74%
Ecommerce Meta -2.54%, Apple -4.82%, Amazon -4.1%, Netflix -2.46%,  Disney -2%, Zoom Video -4.89%, Alphabet -4.61% and Microsoft -3.27%,
Tech NXP Semi -0.98%, Nvidia -6.36%, Micron -2.46%, AMD 1.75%, Skyworks -4.78%
Industrial/Discretionary  Boeing -1.72%, Caterpillar -1.27%, Simon Property -2%, Kohl’s -3.07%, Nordstrom 0.19%, Gap -3%, United Airlines -5.75%, Carnival -2.7%, Wynn Resorts -4.23%, 
Energy Chevron22.%, Exxon Mobil -1.81%,  
Consumer Staples Campbell Soup -0.55% General Mills -1.44%, JM Smucker -1.24%

DAILY DATA
USD volatile, Bitcoin -7.74% at 54,638.00,  VIX 64.9% at 38.57,  
US T10 down 3 bpts at 3.765% and T2  slightly higher at 3.875% 
OIL Brent -0.66%, WTI -0.79% hitting a six month low on recession fears.  Oil futures in Asia opening higher..
Gold -0.72%, Silver -3.63%, Copper -2.41% Platinum -5.1%, Palladium -5.16%.