In today’s briefing:
- A Sharp Likely Decline in Total Return (TR) ETFs in Korea Due to an Amendment in Regulations
- The Week That Was in ASEAN@Smartkarma – BFI Finance Indonesia, Ultrajaya Milk, and Thai Banks
- EA: Flash, Bang, Inflation Fanned
- The Commodity Report #75
- CX Daily: Illuminating The Silver Screen For The Visually Impaired
A Sharp Likely Decline in Total Return (TR) ETFs in Korea Due to an Amendment in Regulations
- Chosun Business Daily reported that TR ETFs worth nearly 7 trillion won in Korea is in danger of losing demand from institutional investors due to an amendment to financial regulations.
- The change in the regulations of not allowing reinvestment of dividends but requiring annual distribution of dividends will discourage many institutional investors from investing in TR ETFs in Korea.
- The two biggest advantages of a total return ETF in Korea has been the automatic reinvestment of dividend distributions and tax deferral.
The Week That Was in ASEAN@Smartkarma – BFI Finance Indonesia, Ultrajaya Milk, and Thai Banks
- The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.
- The past week saw insights on BFI Finance Indonesia (BFIN IJ), Kino Indonesia (KINO IJ), Mitra Keluarga Karyasehat (MIKA IJ), Ultrajaya Milk (ULTJ IJ), and BFI Finance Indonesia (BFIN IJ)
- We also had commentary on the latest eConomy SEA report plus the end of the GoTo (GOTO IJ) lockup period and updates in Moya Holdings Asia and the Thai Banks.
EA: Flash, Bang, Inflation Fanned
- Flash EA inflation rose with another bang in Oct-22 as it flew up by 0.7pp to 10.7%. That was near our well-above consensus forecast after volatile news in national releases.
- A 1pp trouncing of the earlier monthly consensus means the consistent upwards forecast drift is not abating. The trend rise might yet extend for another couple of months.
- If the forecast drift continues in November, the ECB will probably deliver another 75bps hike in December rather than slow to our current 50bps call.
The Commodity Report #75
- With the beginning of this week’s newsletter, I probably won’t make any new friends in my home country.
- What makes me sad is that literally nobody is speaking about the untapped natural gas reserves we have underground in Germany that are indeed accessible.
- A short calculation: In 2021 Russia delivered 55 billion cubic meters to Germany or 55% of the total German gas consumption.
CX Daily: Illuminating The Silver Screen For The Visually Impaired
Film / In Depth: Illuminating the silver screen for the visually impaired
Personnel / Beijing Mayor Chen Jining appointed Shanghai Party boss
Corruption / Graft crackdown at China’s biggest policy lender snares another official
💡 Before it’s here, it’s on Smartkarma
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