Some good news this Christmas

By Beansprout • 24 Dec 2022 • 0 min read

T-bill yield, government handouts & last minute shopping rush

Weekly market update.png

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Merry Christmas!

Since you’re reading this on Christmas Day, we decided to share 3 pieces of good news to make your day merry and bright. 

#1 – The yield on the latest 6-month T-bill auction was at 4.28%, despite a general decline in bond yields globally.

#2 – The government will be giving out another $300 of CDC vouchers to each household next year.

#3 – You made it through another year!

It has been a challenging year in the financial markets, and we’re thankful to have emerged from the volatility with a few lessons learnt.

We wish you joy, love and peace this holiday season. 

Stock market update
Source: Bloomberg. Price as of market close on 23 Dec

🏖 Return of Chinese tourists 

What happened? 

China may relax quarantine restrictions for international travellers next month, according to a Bloomberg report. This will potentially cut the need for hotel quarantine, and only require overseas arrivals to observe 3 days of monitoring. 

What does this mean?

The move will mark a further step towards China’s re-opening efforts, despite a surge in domestic infections. 

Experts have estimated that there are close to one million new infections daily. The surge in cases has also led to a slowdown in economic activity as residents stay home. 

For example, car traffic and subway ridership in Shanghai and Shenzhen has been significantly lighter than usual.

Why should I care? 

The world’s second largest economy has been effectively cut off from the rest of the world since the Covid-19 outbreak. 

The easing of border restrictions could open up a significant source of tourists for many parts of the world and provide a boost to the global travel industry. 

 

 

🚗 MOVING THIS WEEK

  • Tesla's (TSLA) share price fell further after the company started offering discounts of $7,500 on some of its higher-priced models in the US, driving concerns of slowing demand. 
  • Micron (MU) said that the worst industry oversupply in more than a decade will make it difficult for it to return to profitability in 2023. The company announced various cost-cutting measures, including a 10% workforce reduction.
  • Nio (NIO) announced that its computer systems had been hacked and that the hackers had obtained information about its users and vehicle sales.
  • Nike (NKE) reported better-than-expected quarterly results and raised its revenue forecast.
  • Sea (SE) will be freezing salaries for the majority of its staff and paying out smaller bonuses in the current year. 

Source: Bloomberg, CNBC, Business Times, Edge Singapore

 

 

💡 THE BIG IMPORTANT STORY

GST hikes are coming. Will Retail REITs get a boost?

The goods and services tax (GST) will increase to 8% from January next year. With Singaporeans rushing to buy big ticket items, will this help to lift retail REITs?

 

S-REITs GST hike.png

Image source: Shin Min Daily News

 

🤓 WHAT WE’RE LOOKING OUT FOR THIS WEEK

  • Tuesday, 27 Dec: Singapore Savings Bonds Closing Date

Source: MAS 

 

 

🍭 THAT’S INTERESTING

Only $100,000 left

FTX co-founder Sam Bankman-Fried (SBF) has been assigned a bail package of $250 million, one of the largest in US history. However, at a bail hearing in federal court in Manhattan, both the prosecution and defence agreed that SBF’s assets have "diminished significantly," with SBF stating that he may only have $100,000. This means that he may not be required to personally provide the full amount of the bail package.

Source: Bloomberg

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