Nov 23 Asian Macro Initial Thoughts Asia to open US futures

24 Nov

Asian Futures Japan closed, HK ADR’s +130pts, Australia trading higher in early trades.

US Futures opened Dow -66pts,  S&P -0.1% and NDX barely changed, expect caution in a shortened trading week as Covid cases continue to rise and more social  distancing measures are proposed.

G20 statement refers to combatting Covid, safeguarding the global economy, addressing international trade disruptions and enhancing global co-operation. For full test.

JAPAN Market closed for Labour Thanksgiving Day re-opens Tuesday. Yen closed at 103.85 strength is still a concern to exporters.
No data due
but Tokyo reported 391 new covid cases reported on Sunday (vs 539 cases on Saturday) and 2,167 cases nationally..
Japanese health experts said the government should consider pausing its domestic travel campaign in some regions amid a record surge in COVID-19 cases and as the nation heads into a holiday weekend.
PM Suga said on Sunday that his country will lead international efforts to combat climate change, in comments on the sidelines of the G20 summit. He has already said that Japan will aim for net-zero emissions by 2050, making a green society one of his key policy priorities.
The government is considering child benefit cuts for high-income households from fiscal 2021, with the idea of using the savings to increase the capacity of child care services and reduce the number of children on nursery school waiting lists. +VE
FT reports Carlyle-backed buyout of Japan Asia Group faces activist challenge Private equity giant is set for a tussle with activist investor; the Murakami family as competition for assets in the country heats up.
Kirin Holdings Co. plans to sell its Australian subsidiary Lion Pty Ltd.’s beverage business to Australian dairy giant Bega Cheese Ltd. for more than ¥40 billion, according to sources. +VE
Restaurant bankruptcies to set new record number this year -VE.
More than 30 major companies in Japan will launch verification tests on a possible private digital currency from fiscal 2021 starting next April, a group aimed at promoting common infrastructure for interoperable cashless payment services said.
Hitachi Metals Ltd seeing interest from Apollo Global Management , Carlyle Group , KKR and Bain Capital as potential bidders in a deal that could fetch more than $6.4 billion.
Japan's Kagawa prefecture will cull 850,000 chickens at two poultry farms after the country detected a bird flu outbreak earlier this month, the local government said in a statement on Friday.
Kajima Corp intending to introduce robots to help the construction industry with labour shortages; showed a prototype robot. +VE
JTB Corp said Friday it will reduce its global workforce by  6,500 under broad restructuring, as it reported its largest-ever net loss for a fiscal first half on slumping tourism demand caused by the coronavirus pandemic. JTB posted a record net loss of 78.17 billion yen.
Nissan Motor Co is looking to breathe new life into its full-size gasoline-powered pickup by electrifying it with the help of a Detroit-based start-up; it is considering buying a battery-electric powertrain from Hercules Electric Vehicles for its Titan pickup and sharing parts for the start-up’s own truck in a prospective strategic partnership. The two planned vehicles would join a crowded field of new electric trucks chasing an as-yet untested market for battery-powered haulers. Hercules plans to produce its first vehicle, a luxury electric truck called the Hercules Alpha, at niche volumes starting in mid-2022. Slight +VE but uncertainty over ethereal remains.

SOUTH KOREA markets closed up on Friday just 54pts off its all time high (2,607 in Jan 2018). Expect markets to open higher if we continue to see foreign buying that supported the market last week. Won strength continued
No data due
Govt to increase social distancing measures to level 2 
the third highest level as covid cases hit 330 new cases to midnight Saturday vs 361 to midnight Friday. On Saturday, a KDCA official said the country could be facing an outbreak that surpasses two earlier waves of infections, if it fails to block the current spread.
South Korea’s prime minister on Friday pleaded with the public to avoid social gatherings and warned that tougher measures may be needed if a new wave of coronavirus infections is not quickly contained.
China's foreign minister will visit South Korea next week for talks that will include North Korea and the novel coronavirus, the South Korean foreign ministry said on Friday, as the region prepares for possible changes under a new U.S. administration.
GS Inima Environment said Sunday it has won an overseas desalination project worth 2.3 trillion won ($2.1 billion) in Oman, the biggest in the company’s history.
Samsung Electronics said Sunday that sales of its home appliances launched under the Bespoke brand have increased rapidly.   Bespoke refrigerators, for instance, took up 65% of its total refrigerator sales during the June-October period. Sales of the Bespoke dishwasher +280% and oven models +130% from January to October. +VE
E-Land Group said Sunday it has suspended operations at nearly half of its stores in the country due to a ransomware attack. -VE
SK Telecom said Sunday it has developed a next-generation cloud native core network system with Samsung Electronics Co. that can provide better 5G services. A core network is the central part of a telecommunications infrastructure that handles key tasks, including device certification and quality of service management, for mobile subscribers to access various services.
SK Group, has vowed to end new oil and gas investments overseas and slash its carbon emissions by two-thirds in a shift away from fossil fuels. +VE
KT&G +VE as a Seoul court ruled against the National Health Insurance Service in the case filed against major tobacco companies, saying there was no direct link with the insurer’s financial burden and the firms’ business activities.
Card spending +6.3% YoY during a massive nationwide annual shopping festival earlier this month, the trade ministry said Friday, amid the new coronavirus outbreak. +VE for Retail Sector.
KB Financial Group labor union’s attempt to convince shareholders to appoint two outside directors recommended by them fell through Friday, deflating the union’s yearslong efforts to enter the boardroom. -VE for change.
Korean Air President Woo Ki-hong said the firm would push for employees’ leave of absence instead of cutting headcount once the merger with Asiana Airlines takes place. +VE. But the creditors' plan to sell the debt-laden Asiana Airlines Inc. to its bigger rival Korean Air Lines Co. faces a bumpy road as a local equity fund has filed an injunction against the plan. Also on Sunday concerns were raised about whether the fund raising plans were legal -VE
The US’ International Trade Commission on Friday once again delayed its final ruling on a trade secret suit between Korean companies Medytox and Daewoong involving a botulinum toxin strain. Slight -VE as uncertainty continues.
Apple Inc. and South Korea's three major telecom operators started shipping the iPhone 12 mini and the 12 Pro Max on Friday.

TAIWAN Expect market to open higher on good data out Friday and continued interest in Tech names and restocking.
Data due
at 9am Consumer Confidence (Sept was 71.6 F/cast is 71).
After market Unemployment, Industrial Production and Retail Sales.
After Market Friday
Export Orders Oct +9.1% YoY vs +9.9% Sept (F/cast was 7.5%)Current Account Q3 $28.65B VS 21.77B Q2 (F/cast was 17.2B)
Export orders hit a new all time high helped by new smartphone launches and ahead of year end holidays. Also helping the strong demand to telco products for WFH. Orders rose for electronic products (17.5%); information & telecom products (4.4%); optical, photographic, cinematographic apparatus (16.8%); machines (13.2%); transport equipment (16.7%) and basic metals and articles thereof (11.5%). Trade partners, increases were seen from the US (17.1%), China (10.7%), Japan (18.6%) and ASEAN countries (6.1%). Orders from Europe dropped 0.1% reflects the covid impact
Current account largest surplus driven by tech orders related to WFH and 5G plus restocking for electronics. Service account went into surplus from deficit, Primary account went to surplus too as an increase in residents' income from outward foreign direct investment. Meanwhile, the secondary income gap went up; due to an increase in workers' outward remittances.
US & Taiwan sign up for stronger economic ties, in a memorandum of understanding include efforts to buttress connections in health care, semiconductors and energy sectors and enhance supply-chain security. Taiwan hopes to build on the framework with the next administration, but it’s unclear how a President Biden would handle the relationship with Taipei. But the move is likely to rankle China. Friday’s inaugural talks over a US-Taiwan Economic Prosperity Partnership Dialogue included discussions on the healthcare, semiconductors, 5G infrastructure and energy sectors and on enhancing supply-chain security.  +VE
Business representatives yesterday urged the government to slow the appreciation of the New Taiwan dollar, saying that some Taiwanese industries have been undercut by rivals due to unfavorable foreign exchange rates.
The government should also assist local industries to expand their domestic market, and push for more bilateral trade deals so that Taiwanese companies can enjoy zero or preferential tariffs on exports, following the nation’s exclusion from the Regional Comprehensive Economic Partnership (RCEP) they said.
Teco Electric and Machinery Co and power cable manufacturer Walsin Lihwa Corp on Friday announced that they would be forming a strategic alliance through a share exchange. “To enhance the competitiveness of both parties, we will cooperate ... in the deployment of next-generation smart grids, smart manufacturing and new energy industry applications,” Teco said in a regulatory filing. +VE
The Ministry of Foreign Affairs (MOFA) last night said that it had no comment about reports that a senior US Navy officer had arrived in Taipei for a visit. Several media outlets reported that Rear Admiral Michael Studeman, director of intelligence of the US Indo-Pacific Command, arrived at Taipei International Airport (Songshan airport) on a special charter flight at about 7pm. Likely to annoy China.
Several US senators across party lines on Friday expressed disappointment with Taiwan’s exclusion from the annual World Health Assembly (WHA), the decisionmaking body of the WHO, and urged the organization to allow the nation meaningful participation in its activities.
Taiwan-Australia Inter-Parliamentary Amity Association establishment will help stabilise the “alliance of democratic values” between Taiwan and Australia, Deputy Legislative Speaker Tsai Chi-chang said yesterday at the association’s inauguration.
The Mainland Affairs Council (MAC) on Saturday condemned the arrest in Hong Kong of an Internet radio disc jockey who launched a crowdfuding campaign for young protesters who wanted to leave the territory to study in Taiwan. The arrest of Wan Yiu-sing, a D100 channel host known as “Giggs” , under Hong Kong’s National Security Law was “another instance of persecution” and “damaging to the stability of Hong Kong society,” the council said in a statement. -VE
The central bank met with eight local lenders on Thursday to call for restraint in real-estate financing, which approached a record high in September, sparking concern that it might drive up property prices. The meeting came less than a week after the monetary policymaker’s talks on Friday last week with six mortgage operators to convey its concern over loose lending. “Banks should better manage their resources to prevent an overflow of credit to the real-estate market, which indirectly encourages property speculation and land hoarding, and contributes to property price hikes,” the bank said in a statement.
E-commerce operator Kuobrothers Corp on Thursday said that it is to buy Mobix Corp its 53% owned e-commerce subsidiary, through a share swap scheme.
Kuobrothers plans to issue 6,631,724 new shares to buy out Mobix shares that it does not own, based on an exchange ratio of 0.91 Kuobrothers shares for one Mobix share. The move is to allow the two companies to improve resource consolidation in an increasingly crowded e-commerce environment, Kuobrothers said.
Pou Chen Corp one of the nation’s largest contract shoemakers, said it would end its unpaid leave program next month, as its business shows signs of rebounding amid the COVID-19 pandemic. Pou Chen, which works with many international footwear brands, such as Nike, Adidas, New Balance, Puma, Reebok, Timberland and Converse, said the furlough program would end a month ahead of schedule because of increasing orders. Pou Chen said retail activity in China has gradually returned to normal, with offline retail sales stabilizing and online retail sales growing. +VE cross read to Yue Yuen (551 HK).
Domestic gasoline, diesel prices to remain unchanged +VE

CHINA Expect market to open lower with concerns over credit markets that the govt will allow more faults at SoE’s and Property Developers and the covid lockdown in Tianjin. Sentiment weak on the threat that more companies may be subject to US investment sanctions.
No data due 
but Mainland China reported 16 new COVID-19 cases on Nov. 20, down from 17 the previous day, with seven cases of local transmission and nine cases originating overseas, the country’s health authority said on Saturday. Its daily bulletin that five of the local transmissions took place in Tianjin and two in Shanghai. Tianjin, which neighbours the capital Beijing, will launch a three-day universal screening programme covering nearly 3 million of its residents on Saturday and go into lockdown
CHINA warns bond issuers they can’t ‘run away’ from their debts. The Financial Stability and Development Committee agreed to adopt a zero-tolerance approach and will punish all kinds of “debt evasion” to protect investors. It also promised to investigate “fraudulent issuance, disclosure of false information, malicious transfer of assets and misappropriation of funds”.  New bond issuance plans have been suspended and the yields on some bonds have risen to 34% a strong indicator of the perceived risk. On Sunday Xu Lin, a former official at the National Development and Reform Commission, told a forum in Beijing: “This is just the beginning, and the problem will continue to spread. “We have invested in too many projects through debt financing, and many projects can’t generate enough economic returns to repay the debt. It’s only a matter of time for defaults to emerge.”
The central government is reluctant to bail out local governments and has urged them to solve their own problems and “prevent systemic risks”. Whilst the Govt statement is +VE the expectation of more issues ahead is -VE for sentiment.
President Xi Jinping proposed creating a single international mechanism of health codes based on data from coronavirus tests when he addressed the G20's virtual summit, where many world leaders vowed to ensure a fair distribution of vaccines and drugs and do what is needed to support poorer countries.
China to supply Hungary with up to one million doses of coronavirus vaccine; in the coming months, Hungary’s Foreign Minister Peter Szijjarto told state news agency MTI on Friday after a phone call with his Chinese counterpart.
US Democratic Senator Chris Coons, seen as a contender for secretary of state in the incoming Biden administration, told Reuters on Friday he hoped to see a bipartisan policy take shape for the United States to “out-compete” China. It was essential to cooperate on areas such as climate change, global health and nuclear non-proliferation.
A decision by the Communist Party of China to raise the retirement age under a long-term economic and development plan has sparked anger on social media in fast-greying China. In 2018, nearly 250 million of China’s 1.4 billion people were aged 60 or over. That is 17.8% of the population and it may exceed 33% by 2053, a prominent think-tank has said.
An aggressive China-led shift to electric vehicles is expected to slash global oil demand growth by 70% by 2030 and will help bring an end to the “oil era”, according to research by the Carbon Tracker think tank published on Friday. Within 10 years, China could save more than $80 billion in annual oil import costs as new-energy vehicles (NEVs) become increasingly competitive, Carbon Tracker said.
Chinese vessel dives into world’s deepest ocean valley; Manned submersible touches down on the floor of the Mariana Trench, beaming live footage back to the surface. Scientists will collect specimens and observe life on seabed, state media report says. China is expanding it technology in what is likely to become one of the areas for new resources mining.
China plans to launch an unmanned spacecraft to the moon this week to bring back lunar rocks in the first attempt by any nation to retrieve samples from Earth’s natural satellite since the 1970s.
Chinese cash funds African coal plant building despite environmental concerns; highlights the confused China policy. Whilst saying it is committed to reducing the environmental impact of greenhouse gases and going carbon neutral it will continue to fund others. -VE
China not the origin of the disease, Former Chinese CDC head epidemiologist says post-Sars monitoring systems meant the pathogen was first detected in Wuhan. Comes after Italian researchers found signs of the pathogen circulating in Italy months before it was picked up in China
1 million Chinese injected with Sinopharm vaccine under emergency use scheme. Authorities in Zhejiang say members of the public have also been given a Covid-19 vaccine developed by private firm Sinovac Biotec
China’s ‘bat woman’ virologist rules out Covid-19 virus in fresh tests on old cave samples. In an update to an earlier paper that spawned conspiracy theories, Shi Zhengli details how they found a bat virus ‘96 per cent similar’ to the pandemic coronavirus. But says no signs of the new virus in samples taken from miners sickened eight years ago.
Chinese Communist Party names new provincial chiefs as coronavirus wanes. Promotions appear to be part of reactivated renewal plans, analyst says. According to state media, the governors of Jilin, Hunan, Guizhou and Yunnan provinces were promoted to the top party post in their jurisdictions, taking over as their predecessors retired.
Trump administration adding four more Chinese firms to Pentagon blacklist, insiders say curbing their access to US investors. Expected to be released at any point -VE for sentiment.
MOF: China Prolongs Debt Waiver for Developing Countries, Aggregating US$2.1B. Liu Kun, Minister of Finance, said China prolonged the debt waiver for developing countries in accordance with the framework nailed at the G20 meeting, aggregating US$2.1 billion, which was the highest among the G20 members.

HONG KONG ADR’s indicate +130pts to open at 26,581 as most ADR’s closed in the green but with Chinese banks still seeing weakness. But the announcement of the suspension of the trouble bubble to Singapore due to rising covid cases and 3 profit warnings -VE for sentiment and news that State firms stepping into help Evergande -VE; so expect market to trade lower than the ADR’s indicate.
No data due but
after market Friday
Inflation Rate Oct -0.2% YoY vs -2.2% Sept (F/cast was +0.4%)
Smallest decrease in 4 months as waivers public housing dissipated. Biggest declines were Utilities followed but Clothing/Footwear, Durable Goods and Transport. Rises in cost of food, miscellaneous goods, meals bought out, housing, alcohol and tobacco and miscellaneous services

Covid Saturday Govt announced 68 new covid cases vs (45 Saturday) 50 linked to previous cases but 11 from unknown sources. The Government announced more social distancing measures, which will take effect from November 22 for a period of five days till November 26, 2020. Live performance and dancing must not be allowed in any catering premises (including bars or pubs) as well as clubs or nightclubs. Moreover, premises (commonly known as party rooms) that are maintained or intended to be maintained for hire for holding social gatherings must be closed.

LAW The police would file an appeal against a court verdict which ruled that allowing officers to go on duty without displaying a unique identification violates a human rights bill, Police Commissioner Christ Tang Ping-keung said. The force would stop using operational call signs to identify officers until the legal procedures are completed. In many ways a test case for the legal system and the Bill of Rights that protects citizens against torture and cruel treatment.
Radio host Giggs and his wife have been arrested on suspicion of money laundering and funding secessionist activities, according to a post on his Facebook page; said to be linked to a fundraising campaign to support young protesters to live and study in Taiwan.
The Civil Service Bureau has hosted its first seminar on national security for over 100 Senior Civil Servants. The seminar was joined by Bi Yanying, Deputy Dean of Law School of the University of International Relations, explaining the new National Security Law to the participants.
Groups representing the medical, education and media sectors made a joint declaration yesterday vowing to defend professional autonomy against government suppression. "Since the anti-fugitive bill movement last year, we have seen the authorities trample our professions with lies and violence," the declaration said.

Short Selling Friday 17% vs 14.7% Thursday 
Top Shorts Ping An (2318) 47%, Wharf REIC (1997) 45%, CITIC (267) 39%, Country Garden (2007) 38%, BankkComm (3328) 36%, Sunny Optical (2382) 34%, Hang Lung Ppty (101) 34%, MTRC (66) 32%, HSBC (5) 30%, Bank of China (3988) 30%, Galaxy Ent (27) 30%, CCB (939) 29%, Swire Pac A (19) 27%, Hang Seng Bank (11) 27%, China Unicom (762) 26%, Hengan (1044) 25%.

Li Ka-shing and Victor T K Li, through Li Ka Shing Foundation Limited, acquired a total of 470,000 shares in CK ASSET (01113.HK) at the average price of HK$41.45, HK$42.6833, HK$43.275 and HK$43.5727 per share on 16 November, 17 November, 18 November and 19 November 2020 respectively. As a result, the deemed interests of Li Ka-shing and Victor T K Li in CK Asset increased from 35.75% to 35.77%, and increased from 35.82% to 35.83%, respectively.
Karen Lo Ki-yan, added to her stake in Esprit (0330) buying 35 million shares at HK$1 on average on Wednesday, involving HK$35 million. Her shareholding has risen from 24.11 percent to 25.97 percent. This was the fifth time she increased her interest in Esprit this month. Lo became the biggest shareholder of Esprit since July.
TRAVEL BUBBLE Singapore / Hong Kong due to starts Sunday was suspended due to the rising COVID-19 confirmed cases in Hong Kong. It has been postponed for two weeks. -VE Cathay Pac and SIngapore Airways

EVERGRANDE (3333 HK) State firms step in to assist the company as a key investor demanded an exit -VE for sentiment.
CHINA TANGSHANG (00674.HK) issued a profit warning. It was expected that the Group will record a loss of approximately HK$48 million for the six months ended 30 September 2020, representing a significant increase as compared to the loss of approximately HK$26.9 million recorded by the Group during the corresponding period in 2019.
SINCEREWATCH HK (00444.HK) issued a profit warning. The Group was expected to record an increase in the consolidated net loss by more than 20% for the six months ended 30 September 2020 as compared to the corresponding period of last year.
LUK FOOK HOLD (00590.HK) issued a profit warning. The revenue and net profit for the six months ended 30 September 2020 may record decrease of around 50% and 40% respectively year-on-year. Due to the continuation of the COVID-19 pandemic and its negative impact on the macro-economy, the Group still recorded a decline in the revenue and net profit for the quarter from July to September 2020. However, due to the subsidies under the Employment Support Scheme of Hong Kong Government and the increase in overall gross profit margin attributed by the rising gold price, the decline was less than expected and narrowed as compared to that of the First Quarter.
New World Development (0017) collected HK$4.7 billion after selling all 396 units on offer at phase two of The Pavilia Farm in Tai Wai. They had an average price of HK$20,988 per sq ft after discounts, 5.8% higher than the first price list.
Secondary transactions at major housing estates -36% WoW, as covid concerns kept home viewers away.
LIFESTYLE INT'L (01212.HK) finalised the acquisition of the headquarters property of BP International in London from the latter for a cash consideration of GBP250 million (approximately HK$2.571 billion). Upon completion, the company leases back the Property to BP International for a term of 24 months at the principal rent of GBP11.21 million (approximately HK$115 million) per annum. Interesting deal as the leaseback is only for 2 years which doesn’t given the normal protection of 5 or 10 years  Slight -VE the building I think would face a serious re-letting risk.
DONGFENG GROUP (00489.HK) announced that during the 14th five-year plan period, more than 20 brand new vehicle models will be launched, of which more than 50% are new energy vehicles. The Company is dedicated to the development of its high-end brand “Voyah”, and will reach the scale of an annual sales of 150,000 vehicles by the end of the 14th Five-year plan period to become a leading enterprise in the industry of high-end new energy.
CHINA CINDA (01359.HK) announced that it completed the issue of tier-2 capital bonds in an aggregate amount of RMB8 billion, which are ten-year fixed rate bonds with coupon rate of 4.5%.
CHINA STRATEGIC (00235.HK) announced that it issued 3.397 billion new shares of the company to Cheng Kar-Shun, Henry, the Chairman of NEW WORLD DEV (00017.HK) , an independent third party, being 16.67% of the issued shares of the Company as enlarged by the allotment and issue of the Subscription Shares. The Subscription Price of $0.06 per Subscription Share represented a discount of 10.45% to the closing price of as quoted on the Stock Exchange on 20 November. The net proceeds from the Subscription are estimated to be approximately $204 million. Upon completion, Cheng will become the company's single largest shareholder.
BRILLIANCE CHI (01114.HK) announced that its controlling shareholder Huachen had received the civil ruling issued by Shenyang Intermediate People’s Court. According to the Civil Ruling, the Court held that the application made by Gezhi Automobile Technology for the restructuring of Huachen was accepted. So far, the Company’s business operation continues as usual.
LEE'S PHARM (00950.HK) announced that the Company received the approval from the Stock Exchange on 20 November 2020 that it may proceed with the Possible Spin-Off and Listing of its non-wholly owned subsidiary Zhaoke Ophthalmology. So far, the details of the Possible Spin-off and Listing have yet to be finalised.
Macao Legislative Assembly discussed with government representatives on the 2021 Fiscal Budget at the first standing committee. The government forecast that Macau's GGR may reach approximately MOP130 billion next year, and the number of visitors from China and Hong Kong may hit around 14 million.
CHINA TELECOM (00728.HK) announced that the mobile subscribers totaled 350 million in October, with a net increase of 810,000. For 5G package subscribers, the number hit 71.86 million, with a net increase of 7.06 million.
CHINA UNICOM (00762.HK) announced that in October 2020, the aggregate number of mobile billing subscribers declined by a net of 148,000 monthly to 309 million, against the September's growth of 514,000 users. The aggregate number of 4G subscribers increased by 2.128 million monthly to 269 million in October, slower than the 2.468-million addition last month.
TRULY INT'L (00732.HK) announced results for the first three quarter ended September 2020. Net profit amounted to HK$408 million, up 141.7% yearly. EPS. equaled HK12.42 cents.
Evergrande Property, a spin-off of EVERGRANDE (03333.HK) , will start IPO next week, where valuation may reach US$13.3 billion and fundraising may approximate US$2 billion, said market rumors.
HANG SENG BANK (00011.HK) will adopt a "future banking branch" concept at its MOSTown branch, which will open next Monday (23 November). The new branch will provide on-phone ticket dispensing system, online reservation for account opening and such other innovative digital services. The bank stated that the concept will hopefully be implemented in all branches within 1-2 years, while its branches in Yau Ma Tei and PolyU are putting this concept into practice.
Centa-City Leading Index (CCL) last posted at 177.57, up 0.5% weekly said Centaline Property, said
CCL Mass went up 0.50% weekly to 181.33;
CCL (small-and-medium units) increased 0.53% weekly to 178.67;
CCL (large units) inched up 0.32% weekly to 171.79.
SINOPEC CORP (00386.HK) and CHINA TELECOM (00728.HK) entered into a strategic cooperation framework agreement in Beijing. Under the cooperation, the two companies will establish a clean energy chemical company.
CHINA MOBILE (00941.HK) inked a strategic cooperation framework deal with Peng Cheng Laboratory at China Mobile Global Partner Conference 2020. Both sides will continue to scale up their tech and innovation inputs, while bolstering R&D on the integrated development of telecom sector and other businesses.
CHINA TOWER (00788.HK) noted a third-party has been engaging in illegal business activities via an app registered in the name of "China Tower" on the grounds of new infrastructure investment, according to its Weibo statement. It clarified that no third-party has been authorized by the Company for public fundraising or opening business. It also claimed to take legal action to protect its legitimate rights.

DOW -0.75%, NDX -0.42%, S&P -0.68%, Russel 2K +0.07% Markets opened lower; Dow and S&P then drifted lower through the day to close on the lows. NDX opened lower but then traded around flat with a small sell down into the close. Concerns over rising covid cases as we approach Thanksgiving; a period when traditionally a lot of people travel and party. The Centers for Disease Control and Prevention advised Americans against traveling for Thanksgiving. Average daily cases now 165k; +24% WoW, with 187,833 announced on Thursday; with more social distancing planned and some lockdowns; stay at home orders. Many are warning that the restrictions will delivery -VE growth in Q1 2021. The market sentiment is in tension between rising covid cases and the approach of vaccine availability as Pfizer announced it was applying to the FDA for emergency use authorisation; saying they can start shipping the vaccine within hours of approval.
Gilead Sciences fell after the World Health Organization recommended against prescribing its remdesivir drug to Covid patients.
Also in tension is the Treasury wanting to end a number of emergency funding measures and the prospect of Stimulus pack talks to resume. Mnuchin says that his decision is misunderstood and that there is still plenty of money available for those that require it.
Trump’s suffered significant setbacks on Friday after Georgia officially certified Joe Biden’s win and top Republican lawmakers in Michigan dismissed the idea they would give the state to the president; reportedly he’s coming under more pressure from senior party members to concede the election.
President-elect Joe Biden will announce the first of his Cabinet appointments on Tuesday and is planning for a scaled-down inauguration due to the coronavirus pandemic, aides said on Sunday, as he lays the foundation for his new administration despite President Donald Trump’s refusal to concede.
Banks JPMorgan Chase -0.9%, Citigroup -0.94% and Wells Fargo -2.6%, AMEX -1.4%
Work from home names: Facebook -1.2%, Apple -1.1%, Amazon -0.6%, Netflix +0.7% (but off the spike seen late afternoon), Zoom Video +6%, Alphabet -1.3% and Microsoft -1%,
Nvidia -2.6%, Micron -0.4%, AMD -1%, Skyworks +0.7%
Re-opening stocks Boeing +2.9%, Caterpillar -0.4%, Simon Property +0.6%, Kohl’s -2.6%, Nordstrom -0.9%, Gap -0.1%, United Airlines -2.5%, Carnival -4.5%, Wynn Resorts -3.5%, Chevron +0.1%, Exxon Mobil -1.2%,
Lock down names Campbell Soup -0.7% General Mills -1%, JM Smucker -0.7%
Baker Hughes Total Rig Count 310 vs 312 prior
USD was stronger vs Yen & weaker vs Euro. Bitcoin +0.3% @ 18,812, VIX +2.55% @ 23.70, US T10 @ 0.824% with concerns over funding as Treasury & Fed standoff over emergency funding.
OIL Brent +1.3%, WTI +1%
Gold +0.4%, Silver +0.7%, Copper +2.8%. As negotiations over stimulus to resume.
Data due Chicago Fed National Activity Index; Flash Manufacturing, Services and Composite PMI
Fed Speakers Daly and Evans

DAX +0.39%, CAC +0.39%, FTSE +0.27% Markets opened slightly lower on covid concerns and news that the US was looking at ending some of the emergency funding measures when they end. Then traded higher peaking late morning and then eased back through the PM with a small rally into the close. Oil and Gas lead the market higher with most sectors closed in the green. Pfizer and BioNTech announced that they would apply to the U.S. FDA for emergency authorization for the vaccine +VE. Brexit talks have been suspended due to a member of the EU team testing positive for covid. Deadline for a deal is just 10 days away.
Retail sector under pressure with concerns on the impact of covid on the Christmas shopping period. -VE
Sage group -13.4% as profit dropped due to cloud investment.
Thyssenkrupp +4.3% announced a further 5,000 job cuts to ease the impact from the pandemic on its various businesses.
Flash Consumer Confidence Nov -17.6 vs -15.5 Oct (F/cast was -18)
PPI Oct +0.1% MoM vs +0.4% Sept (F/cast was +0.2%)
PPI Oct -0.7% YoY vs -1% Sept (F/cast was -0.6%)
Retail Sales Oct +5.8% YoY vs +4.6% Sept revised (F/cast was +4%)
Retail Sales Oct +1.2% MoM vs +1.4% Sept revised (F/cast was +0.4%)
Retail Sales Ex Fuel Oct +1.3% MoM vs +1.5% Sept revised (F/cast was +0.5%)
Retail Sales Ex Fuel Oct +7.8% vs +6.4% Sept (F/cast was +6%)
EUROZONE Flash Manufacturing, Services and Composite PMI.
ECB’s Schnabel speaks
GERMANY Flash Manufacturing, Services and Composite PMI
FRANCE Flash Manufacturing, Services and Composite PMI
UK Flash Manufacturing, Services and Composite PMI

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