In today’s briefing:
- End of Mandatory Lock-Up Periods for 42 Companies in Korea in October 2022
- Looming Structural Pressures Suggest Fed’s Anti-Inflation Battle Could Be Prolonged
- CX Daily: Lessons From The Chinese Silk Road Fund’s Eight-Year Journey Along The Belt And Road
- EA: Inflation Burns Up Forecasts Again
End of Mandatory Lock-Up Periods for 42 Companies in Korea in October 2022
- We discuss end of the mandatory lock-up periods for 42 stocks in Korea in October 2022, among which 7 are in KOSPI and 35 are in KOSDAQ.
- These 42 stocks on average could be subject to further selling pressures in October and could underperform relative to the market.
- Among these 42 stocks, the top 3 market cap stocks include NH Investment & Securities, Sungeel Hitech, and Dongwon Systems. They could be exposed to greater selling pressures in October.
Looming Structural Pressures Suggest Fed’s Anti-Inflation Battle Could Be Prolonged
- Financial markets are finally dancing to the tune of the Fed. Unless price pressures ease significantly in Q4, real interest rates may not rise sufficiently to restrain the economy.
- Potential GDP growth has slowed since 2000 which has lowered the neutral federal funds rate. Financial assets have not reflected this outcome due to unprecedented support from the Fed.
- The Fed is confident about restoring price stability. Supply-side forces will play an important role in determining inflation. Labour shortages and higher federal government borrowing will steepen the yield curve.
CX Daily: Lessons From The Chinese Silk Road Fund’s Eight-Year Journey Along The Belt And Road
Exclusive: Lessons From the Chinese Silk Road Fund’s Eight-Year Journey Along the Belt and Road
Restaurant blaze kills 17 in northeastern China
As tensions mount, Xi and Japan’s Kishida discuss future of ties
EA: Inflation Burns Up Forecasts Again
- EA inflation surged beyond forecasts again to rise 82bp to 10.0% in Sep-22. The only consolation is that the upside news was in energy rather than the core.
- Month-Ahead forecasts are consistently exceeded, with the latest 0.36pp miss only about a tenth below the past year’s average. Inflationary trends appear unwavering.
- ECB hawks are likely to seek another 75bps hike in October, despite not being the norm. It is in a rush to get rates back to neutral, if not beyond.
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