May 22 US Markets will be closed Monday for Memorial Day


Covid-19 Globally over 5.3m cases, 342k deaths

US Markets closed Monday for Memorial Day re-open Tuesday



DOW -0.04%, NDX +0.43%, S&P +0.24%, Russel 2K +0.59% Markets opened lower and worked higher through the day with the S&P and NDX turning positive for the last couple of hours.

Hewlett Packard Enterprise -11.5% as earrings missed forecasts and gave no future guidance.

Agilent Tech +5.2% on flat quarterly revenue and recovering demand in China.

Hertz Global Holdings Inc, the vehicle rental company founded with a dozen of Ford Motor Co’s Model Ts more than a century ago, filed for bankruptcy late on Friday after sweeping travel restrictions and the global economic collapse destroyed demand for its vehicles. -VE

DATA

Baker Hughes Total Oil Rig Count 318 vs 339 prior a record low

USD was slightly stronger vs Yen & Euro. Bitcoin +0.7% @ 9261.71, VIX -4.6% @ 28.16,

US T10 0.657%

OIL Brent -2.6%, WTI -2%

Gold +0.7%, Silver +1.9%, Copper -1.7%

AHEAD US Markets Closed no data due


DAX +0.07%, CAC -0.02%, FTSE -0.37% having opened lower markets worked their way higher through the day and then traded sideways when they got to flat. Concerns over US/China relations overhanging the markets as China looks to enforce a ’National Security’ law on HK by passing the normal framework; HSBC -5%, Standard Chartered Bank -2.4% and Prudential -9.3%. UK borrowing rose to a record GBP62.1bn while retail sales dropped 18%.

SBB +9% continued to rally following news earlier in the week that the probe into its CEO over insider dealing had been withdrawn

TAG Immobilien +6.6% on news of talks with fellow German real estate developer LEG Immobilien +0.8% for an all stock deal.

Lloyds -1% as shareholders rebel against planned bonuses for top executives

Lufthansa -1.2% despite saying close to securing US$10bn rescue deal from the German government

DATA

UK Retail Sales Apr -18.1% MoM vs -5.2% Mar (F/casts was -16.9%) [Apr -22.6% YoY vs -5.8% Mar (F/casts was -22.7%)]

Retail Sales Ex Fuel Apr -15.2% MoM vs -3.8% Mar (F/casts was -15.7%) [Apr -18.4% YoY vs -4.2% Mar (F/casts was -19.2%)]

Public Sector Net Borrowing Apr GBP -61.36b vs -14b Mar (F/cast was -30.4b

AHEAD GERMANY GDP Growth Rate, Ifo Business Climate, Expectations and Current Conditions

FRANCE No data due

UK No data due


JAPAN Expect Nikkei to open lower Yen currently 107.62 investors watching the deterioration in US/China relationship

Data due Final Leading Economic index and Coincident Index

Japan plans to fully lift the state of emergency in Tokyo, Kanagawa, Chiba, Saitama and Hokkaido on Monday, a minister said Sunday, given a decline in the number of new coronavirus cases and improved medical systems. +VE

Japan's chief government spokesman on Friday urged China to be open about what it spends on its military and its security goals after Beijing announced a 6.6% increase in its annual defence budget.

Japan is considering a fresh stimulus package worth over $929 billion that will consist mostly of financial aid programmes for companies hit by the coronavirus pandemic, the Nikkei newspaper said on Monday.

Nissan Motor Co is considering cutting 20,000 jobs from its global workforce, focusing on Europe and developing countries, Kyodo news reported on Friday, as the Japanese automaker struggles to recover from plunging car sales -VE Renault


SOUTH KOREA Expect markets to open lower with concerns over US/Chine relations
No data due

KT said Sunday it has rolled out a warehouse automation solution that utilizes 5G networks and self-driving vehicles. +VE

Solgent’s COVID-19 test kit has received emergency use authorization from the US Food and Drug Administration, becoming the 10th South Korean kit to receive the green light from the agency. +VE

Major South Korean companies have resumed operations at their overseas plants and are speeding up business normalization since suffering disruptions from the COVID-19 pandemic.+VE

Lotte Shopping Co., the operator of South Korea's biggest department store chain, said Sunday it will sell 121 brick-and-mortar stores within this year amid the new coronavirus impact on the retail industry.+VE


TAIWAN Expect market to open lower with investors watching US/China standoffs
Data due 
After Market Industrial Production, Retail Sales, M2 Money Supply.

After market Friday Unemployment Apr +4.1% vs +3.76% Mar (F/cast was 4%)

TSMC As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said.

Domestic gasoline and diesel prices are this week to increase by NT$0.5 and NT$0.8 per liter respectively to reflect higher international crude oil prices, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) announced separately yesterday.


CHINA Expect market to open lower with investors watching US/China relationships
No data due

President Xi Jinping said China’s annual economic growth target could have been set around 6% had the new coronavirus epidemic not happened, according to state media reports on Saturday.

China's defence spending this year will rise at the slowest rate in three decades but will still increase by 6.6% from 2019, as the country grapples with what it sees as growing security threats and a wilting economy.

China says the United States should stop wasting time in its fight against the coronavirus and work with China to combat it, rather than spreading lies and attacking the country, the Chinese government's top diplomat Wang Yi said on Sunday.

China's foreign ministry branch in Hong Kong dismissed concerns that its proposed national security laws for the city would harm foreign investors, hitting back at "meddling" countries as Beijing's ties with Washington soured further.

President Xi says China much strengthen healthcare system


HONG KONG ADR’s indicate -90pts to open at 22,839 expect more downside with renewed protests over the weekend in Hong Kong and light volume with US Markets closed.
Data due
after market Balance of Trade, Exports and Imports


Short Selling HSI Friday 25.7% vs 20.5% Thursday (very high considering the uptick rule)

Top Shorts Hang Seng Bank (11) 63%, Wharf REIC (1997) 52%, CLP (2) 49%, HK & China Gas (3), Hang Lung PPTY (101) 42%, MTRC (66) 42%, NWD (17) 38%, CK Asset (1113) 38%, China Overseas (688) 37%, Country Garden (2007) 35%, BoC HK (2388) 35%, Power Assets (6) 35%, HSBC (5) 34%, Henderson land(12) 34%, ICBC (1398) 32% SHKP (16) 31%, CCB (939) 31%, Hengan (1044) 31%, Sino Land (83) 30%, Techtronic (669) 30%, BoC (3988) 29%, CKI (1038) 27%, AIA (1299) 26%, Link Reit (823) 26%, Swire A (19) 26%, BankComm (3328) 25%, Galaxy Ent (27) 25%


WATCH

Pro Beijing Group takes out adverts in local press to explain the imposition of NPC Draft legislation. To me the key remains the fact that Beijing has decided that it will not succeed in getting its wish for legislation via the normal channels. Which undermines the legitimacy of the action -VE

Weekend Property transactions drop due to protests -VE

Centa-City Leading Index (CCL) last stood at a 12-week high of 177.54, +0.91% weekly with the sharpest rally in 27 weeks.  Some homebuyers had entered the market post-Easter, when second-hand deals started to burgeon. The significant home deal rally after the May Day holiday had affirmed the beginning of a new wave of home market upturn.  That may all be in question after the today’s market action.

CHINA RE (1508.HK) the aggregate primary premium income as derived from China Continent Property & Casualty Insurance for the period from 1 January 2020 to 30 April 2020 was RMB16.639 billion, +6.12%YoY.