In today’s briefing:
- End of Mandatory Lock-Up Periods for 40 Companies in Korea in September 2022
- Biden’s Legislative Wins Provide a Boost to Growth, but Recession Still Inevitable
- CX Daily: Why Chinese Companies Hesitate to Hedge Forex Risk
- EA: Inflation Energises Another 50bp Hike
End of Mandatory Lock-Up Periods for 40 Companies in Korea in September 2022
- We discuss end of the mandatory lock-up periods for 40 stocks in Korea in September 2022, among which 3 are in KOSPI and 37 are in KOSDAQ.
- These 40 stocks on average could be subject to further selling pressures in September and could underperform relative to the market.
- Among these 40 stocks, the top five market cap stocks include Iljin Hysolus, Sebit Chem, Eoflow, Bumhan Fuelcell, and Voronoi. They could be exposed to greater selling pressures in September.
Biden’s Legislative Wins Provide a Boost to Growth, but Recession Still Inevitable
- Fed chair Powell pledged at Jackson Hole to “keep at it until the job is done”. After M2 growth averaging 18.2%YoY in Mar’20-Feb’22, much more monetary tightening is still needed.
- The Fed Funds rate will rise to 3% next month, 3.5% by end-year and 4% by Mar’23. The consequence will be recession by Q1CY24, as telegraphed by the yield-curve.
- Biden’s two legislative wins this month will boost the economy (especially manufacturing), aid the climate fight and lower drug costs in the medium-term. But their net fiscal impact is minimal.
CX Daily: Why Chinese Companies Hesitate to Hedge Forex Risk
Yuan / In Depth: Why Chinese companies hesitate to hedge forex risk
Testing / Local governments’ Covid-19 testing bills pile up, corporate earnings show
Economy / Top officials fan out across China to fend off a slowdown
EA: Inflation Energises Another 50bp Hike
- EA inflation increased by another 0.2pp to 9.1% in Aug-22, 0.1pp above expectations. The biggest upside was in energy prices, but goods also raised the core to 4.3%.
- Increases in the past two months have been less than the previous trend, but it is too early to call a headline turn. We still forecast a Sep-22 rise.
- ECB hawks will be dissatisfied with these developments and probably push through another 50bp hike in September, despite the dangers brewing in the periphery.
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