Beware of second-order impact In Budget 2023, the Singapore government has noble intentions to fight inflation. However, the Budget measures could drive up inflation instead of bring it down. This is due to the second-order impact from measures such as cash handouts and higher taxes. Here are my insights: Inflation Drivers Demand-pull inflation Wage-push inflation Higher HDB Grant Higher property taxes Higher tobacco tax Disinflation Driver Boosting innovation and productivity Inflation Drivers Demand-pull inflation Singapore's 2023 Budget plans to give up to S$9.6 billion in handouts. Total cash distributed to eligible residents would be up to S$1,300 in 2023. In total, S$600 worth of CDC vouchers will be granted to Singapore households in 2023 and 2024.
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25bps Rate Hike in May’s FOMC Meeting: Fed Pause on The Horizon
In a widely anticipated move, the US Federal Reserve raised interest rates for the 10th time in just over a year. The Fed fund rate now stands at a target range of 5%-5.25%, which is the highest it has been since August 2007.Source: Bloomberg During the news conference that followed the meeting, Chairman Jerome Powell confirmed that "a decision on a pause was not made today." This is despite the omission of a sentence stating that “the Committee anticipates that some additional policy firming may be appropriate." It appears that the Fed has finally reached the terminal rates it had set out to achieve. S&P 500 & Nasdaq Index, Source: Bloomberg The bond markets initially priced a rate hike in the June Fed meeting. However, the sentiment soon changed into a likely rate pause
25bps Rate Hike in May’s FOMC Meeting: Fed Pause on The Horizon
SG Budget 2023: An inflation paradox
SG Budget 2023: An inflation paradox
4 Major Impacts on Singapore After 75 Bps FED Rate Hike
75 Bps Hike.The Federal Open Market Committee (FOMC) concluded on 15 June and as expected, interest rate on the upper range of Fed Fund rate was raised by 75bps to 1.75%. This is the largest since 1994 in a bid to ease runaway inflation which came in at 8.6% yoy in May 22.Many have argued that the Fed have been extremely late in the curve last year in addressing that inflation by considering that it was largely transitory.However, it is proved that inflation is stickier than previously thought given the supply side issues have been further exacerbated by on-going supply chain disruptions and the geopolitical crisis between Russia and Ukraine.The Fed continue to guide July’s FOMC rates increase in the range of 50-75bps and forecast a 3.25%-3.5% by end of 2022.Some impacts may
4 Major Impacts on Singapore After 75 Bps FED Rate Hike
Tiger Singapore Weekly Focus-City Development Ltd (C09.SI)
$CITY DEVELOPMENTS LIMITED(C09.SI)$ achieved strong results, despite the overseas property crisis happening now. Singapore’s benchmark $Straits Times Index(STI.SI)$ closed at 3,2469.53 on Friday (26th Aug 2022) and stayed almost stagnant as per last Friday. Overall, the market remains conservative as most investors are expecting the Federal Reserve to maintain their view to tighten monetary settings once again. On the whole, most investors’ view would be correct if their expectations are aligned with Powell’s speech last Friday night.Corporate Profile of City Development Ltd (CDL)City Development Limited provides real estate services that offers renting, buying, and
Tiger Singapore Weekly Focus-City Development Ltd (C09.SI)
Amazon’s AI Ambition
The world of artificial intelligence (AI) is witnessing an unprecedented surge in competition, with tech giants vying for supremacy. Contenders like Amazon.com $AMZN and Samsung Electronics are entering the fray, aiming to challenge established leaders Microsoft and Google. Amazon is developing a new large language model codenamed "Olympus". This ambitious venture, spearheaded by Rohit Prasad, Amazon's Head Scientist of Artificial General Intelligence (AGI), has the potential to revolutionize the AI landscape. Amazon’s Olympus Boasting an impressive two trillion parameters, Olympus is a groundbreaking conversational AI software. The model is anticipated to outperform AWS's current Titan model, offering advancements for Amazon's online retail, Alexa voice assistant, and Amazon Web Services.
Amazon’s AI Ambition
Tackling Inflation: Singapore S$1.5 Billion Aid Package
Global inflation has been on the rise especially due to rising energy prices and food prices because of the ongoing Russian and Ukraine war and the global supply chain disruptions. Inflation is expected to stay higher for longer given that most of the factors are due to supply factors of inflation. Singapore Consumer Price Index (CPI) All Items rose by 5.4% in April according to data from Singapore Department of Statistics. Singapore’s May CPI will be announced today and is expected to trend higher for the next few months, given the import dependence of Singapore due to the lack of natural resources and as a result disrupted supply chain.Targeted aid for lower-income and vulnerable. Singapore has introduced a carefully designed S$1.5 billion support package that is tilted to help lower-inc
Tackling Inflation: Singapore S$1.5 Billion Aid Package
Tiger Market Watch - China EV, US Healthcare, US Homebuilders
Key Market HighlightsUS markets recovered with $S&P 500(.SPX)$ up by 3.5%, after last week's brutal correction. Crude oil$Light Crude Oil - Jul 2022(CL2207)$ which peaked above US$122.1 per barrel earlier in the June, corrected from the recent high to US$103.5 on recessionary fears that may reduce the demand for crude. Markets should welcome this as this gives the Fed more maneuverability in its policies given that energy prices have been a key factor in rising costs. US 10-year yields pulled back sharply from the top of 3.47% to 3.1%, as investors could have overpriced the US rate hike cycle and could see a fourth US bear market rally YTD. Nikkei fell by -1.7% during
Tiger Market Watch - China EV, US Healthcare, US Homebuilders
Tiger Key Market Highlights – Starbucks, Johnson & Johnson
US rebounded marginally from a sequential fall in producer prices, post a sharp sell-off from major US indices on Tuesday, after key inflation data were above estimates with the CPI showing 8.3%, even as energy prices cooled. Core CPI which excludes food and energy components also came in at 6.3% versus prior month of 5.9%, which shows stickiness in key prices such as rent and electricity. While it has already been widely expected that a 75bps rate hike was possible in the upcoming week, the market raised the probability of potentially an even tighter monetary condition. US short term 2-year yields surged to over 3.8%.The ECB also decided on a jumbo rate hike of 75bps from zero last week, after the 50bps hikes in July. Europe is in a catch-22 situation given that inflation in August is exp
Tiger Key Market Highlights – Starbucks, Johnson & Johnson
Jul 1st - Tiger Market Watch: Lockheed Martin, Chevron
US markets fell last week with S&P500 down by 0.25% and hovering around bear market territory year to date having corrected about 20% YTD. The Fed’s preferred measure of inflation, the Personal Consumption Expenditure climbed by 6.3% in May, or 4.7% after stripping out food and fuel, which have started to show some moderation. Nasdaq fell -1.8% underperforming the S&P500 even despite the US 10-year yields falling below 3%, as investors are mixed as to whether the Fed is expected to reduce or maintain the pace of its rate hikes in the upcoming Federal Open Market Committee (FOMC). The ECB plans to start to raise rates in July and September for the first time in 11 years to tighten monetary policy in the medium term; Stoxx 50 was little changed during the week.S&P 500 & Nasda
Jul 1st - Tiger Market Watch: Lockheed Martin, Chevron
Tiger Singapore Weekly Focus: Stocks with Most Net Institutional Inflow YTD
All three US indexes saw a second consecutive week of losses last week due to fear of recession as a result of the Federal Reserve’s continued battle againstinflation by raising its benchmark interest rate to the highest level in 15 years.Both the European Central Bank and The Bank of England also announced a 0.5 point rate increase last week.10 of the$S&P 500(.SPX)$ sectors declined last week with only the energy sector in the green. The $Straits Times Index(STI.SI)$ closed at 3,240.81 points, down 0.16% for the week. Stocks with Most Net Institutional Inflow YTDNearly 300 Singapore-listed stocks have seen a net institutional inflow in the year 2022 t
Tiger Singapore Weekly Focus: Stocks with Most Net Institutional Inflow YTD
Equinix: Global Leader in Data Centre
Data is the new oil [By Edmund Chan: CIO of Tiger Fund Management] In a recent Citi Conference, Equinix $Equinix(EQIX)$ CEO Charles Meyers was asked for three reasons to buy Equinix. He replied with the following reasons: 1) continued long-term demand from digital transformation 2) differentiated, durable story in digital competency3) strong track record of delivering durable growth. I concur with his views. Without a doubt, Equinix is the global market leader among data centre companies. Here are some insights: Global leadership Go-to-Market Strategy Growth Potential Premium valuation Global leadership Equinix manages an impressive network of 248 data centers worldwide, with 138 owned by the company. This ownership is equivalent to 67%
Equinix: Global Leader in Data Centre
Tiger Market Watch: Nvidia, Cisco
US mid-term elections ended with a better-than-expected win for the Democrats, which managed to retain control of the senate to prevent a “red-wave” and the Republicans taking control of the house by a slim margin as expected. With one episode of overhanging uncertainty behind markets, US equities saw firm footing over the month with $DJIA(.DJI)$ recovering by 9.9% and $S&P 500(.SPX)$ rising 6.1%. This also comes amid October inflation that finally saw some initial signs of slowdown on both CPI and PPI metrics despite the Fed’s continued hawkish tone. UK inflation rose to the tune of 11.1% in October, a blistering 41-year high, adding to fears that the Ban
Tiger Market Watch: Nvidia, Cisco
Tiger Market Highlights – Energy ETF XLE, Snowflake, Meta
The Fed will be meeting for the Jackson Hole Economic Symposium this week and the market will be looking closely at the potential interest rate trajectory ahead. The market is split on a 50bps to 75bps hike in the upcoming September FOMC meeting, this is amid inflation still stickily high. $S&P 500(.SPX)$rose by 1.4% while $NASDAQ(.IXIC)$ surged 1.7%. China market saw some signs revival after the government after unveiling a RMB1 trillion economic stimulus package to stem growth risks because of the “zero-covid” policy and the ongoing woes in the property market. Energy sector saw renewed investor interests as supplies in the energy market is still tight with a dip in inventories, OPEC+ potentia
Tiger Market Highlights – Energy ETF XLE, Snowflake, Meta
Tiger Weekly Highlights: Booking, Sea, Pharmaceuticals
Market risk on momentum is back with inflation expectations starting to peak, US Consumer Price Index (CPI) for July came in softer at 8.5%, Producer Price Index (PPI) also showed a decrease by 0.5% MoM. This is in line with our expectations that inflation will began to ease in the 2H22 which also implies more policy maneuverability of the Fed in the upcoming FOMC meetings. This helped to drive a sharp reversal in risk assets with Nasdaq recovering by 12.4% and S&P also gaining 9.3% over the last month.While the absolute inflation print still looks high and some would argue that we are in a bear market rally, a more docile inflation expectation and investors remaining cash up on the sidelines after year-to-date drawdown could mean that equity markets volatilities could ease furthe
Tiger Weekly Highlights: Booking, Sea, Pharmaceuticals
20 Jan: Tiger Market Watch - Netflix
US stocks sank afterUS PPI and retail sales came in below expectation, however, the weak figures were interpreted as a forewarning of an impending recession. The initial jobless claims dropped to 190k, signaling that the labor market continue to remain strong which backs up the Federal Reserve’s hawkish tone. Some policymakers also highlighted the need for rates to be raised above 5.0% leading to the $S&P 500(.SPX)$ falling by -0.8% while $NASDAQ(.IXIC)$ fell by -1.0% overnight.China banks maintained their benchmark lending rates, avoiding easing of monetary policy as it gauges the economy’s recovery. China shares rose ahead of the Chinese New Year holidays
20 Jan: Tiger Market Watch - Netflix
Tiger Singapore Weekly Focus: ComfortDelGro $(C52.SI)$
COMFORTDELGRO BROADENS INTERNATIONAL FOOTPRINT $COMFORTDELGRO CORPORATION LTD(C52.SI)$Source from TODAY ONLINECorporate Profile of ComfortDelGroThe Group was form in 2003 through the merger of two land transport companies in Singapore – Comfort Group and DelGro Corporation. Following the merger, ComfortDelGro has expanded vastly and now operates in seven countries with a global fleet of about 40,000 vehicles. Beside being one of the market leaders in Singapore, the group current operations extend from the United Kingdom and Ireland to Australia, Malaysia as well as several cities in China.Presence in AustraliaThe ComfortDelGro Corporation Australia (CDC) Group has grown steadily since 2005 and operate in six States. It operates
Tiger Singapore Weekly Focus: ComfortDelGro $(C52.SI)$
Tiger Singapore Weekly Focus: THAI BEVERAGE PUBLIC (Y92.SI)
$THAI BEVERAGE PUBLIC CO LTD(Y92.SI)$Unlocking Shareholder Value with Beer Business Spin-off US entered into a technical recession after reporting a fall in its GDP by 0.9% in the second quarter, the second straight decline and a strong recession signal. GDPis the broadest measure of the economy and encompasses the total goods and services produced by a country during the period.The International Monetary Fund (IMF) projected the economic growth of the Asia-pacific to decelerate to 4.2%, 0.7% points less than its forecast in April.You may interested in:Tiger Singapore Weekly Focus: JAPAN FOODS'Outlook Corporate Profile of $THAI BEVERAGE PUBL
Tiger Singapore Weekly Focus: THAI BEVERAGE PUBLIC (Y92.SI)
Tiger Singapore Weekly Focus: JAPAN FOODS'Outlook
$JAPAN FOODS HOLDING LTD.(5OI.SI)$ success and Halal market expansionCorporate Profile of Japan Foods Holding LtdEstablished in Singapore in 1997, Japan Foods is one of the leading Japanese restaurant chains in Singapore. The company has successfully expanded its restaurant portfolio to encompass both self-developed and franchised Japanese concept brands.Japan Foods has 56 self-operated restaurants in Singapore, 24 restaurants run by associated companies in China, Hong Kong and Indonesia, and 3 restaurants operate by joint venture company. Among its top franchised brands are Ajisen Ramen, Afuri and Osaka Ohsho chains.Expanding Halal segmentJapan Foods’ R&D department developed and created new recipes and concepts for the Halal s
Tiger Singapore Weekly Focus: JAPAN FOODS'Outlook
NIO SGX Leads US Open Price Direction For Majority Of Trading Days
$NIO Inc.(NIO.SI)$ Listed on SGX Mainboard on 20 May 2022. This report was authuirized to Publish by Singapore Exchange.$NIO Inc.(NIO)$ going to release Q3 earnings results on Thursday, November 10th, before market open.Source:carbuyer.com.sg/Trade NIO During Asia Hours via Secondary Listing on SGX ▪ Following NIO Inc.’s secondary listing on SGX on 20 May 2022, SGX NIO daily turnover has doubled from S$2m in May 2022 to S$4m as of Oct 2022. ▪ With more than US$35 billion in market cap, the SGX secondary listing of NIO Inc. is expected to attract institutional and public demand to trade during Asian hours. The SGX listing hedges any risk of a potentia
NIO SGX Leads US Open Price Direction For Majority Of Trading Days
Dovish Tightening by MAS: Singapore is Thriving & Outperforming
MAS policy could be a harbinger of a Fed pivotDespite its small size, Singapore is punching above its weight. Both Singapore equities and Singapore Dollar have outperformed strongly against its regional and global peers.Now, MAS policy is engaging in an early move towards dovish tightening. This could be a sign that a Fed pivot could be coming soon.Here are my insights: Singapore is thriving and outperforming Singapore is a safe haven MAS policy could be a harbinger of a Fed pivot Singapore is thriving and outperformingA record 302,000 fans attended the F1 Grand Prix in Singapore last month. There are so much foreign visitors that the average hotel rates exceeded a historical high of S$440 per night for previous F1 periods. Residential rentals continue to surge. Car pri
Dovish Tightening by MAS: Singapore is Thriving & Outperforming
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