On August 24, the three major U.S. stock indexes opened slightly higher, and the Nasdaq hit a record high. As of press time, the Dow is up 0.16%, the Nasdaq is up 0.28%, and the S&P 500 is up 0.13%.
The following is a summary of important information in the global market:
Global macro
Brazil staged the most radical rate hike in 20 years, local hedge funds increased bond investment non-stop and reduced equity assets
The hedge fund manager of one of Brazil’s largest asset management companies is trying to profit from the Brazilian central bank’s interest rate hike.
Legacy Capital Gestora de Recursos Ltda. Gustavo Pessoa, a portfolio manager and one of the founding partners, said the company has increased local fixed income and private credit investments. These bets will benefit from higher interest rates while reducing its exposure to the Brazilian stock market. Earlier this month, the Central Bank of Brazil carried out the most aggressive rate hike in nearly 20 years, raising the benchmark interest rate from 4.25% to 5.25% to curb soaring inflation.
In the past few trading days, fiscal worries and political tensions have made it difficult to promote reforms to boost the economy. These factors have put pressure on Brazilian assets and caused the recent exchange rate to soar. Legacy recently told clients that the company has established a short USD/Brazilian real composite position while betting on a decline in the benchmark Ibovespa stock index.
In accepting the media, Pessoa said: “Brazil should strike a balance between higher interest rates, lower growth and greater political uncertainty.”
The central bank of Myanmar puts 10 million U.S. dollars in a single day to balance the exchange rate, setting a record for a single day
On August 23, local time, the Central Bank of Myanmar put 10 million U.S. dollars into the market at a price of 1,660 kyats to 1 U.S. dollar, which also set a record for Myanmar’s single-day U.S. dollar placement into the market. So far, the Central Bank of Myanmar has released 23 million U.S. dollars into the market six times in August alone. Since the beginning of February, the Central Bank of Myanmar has put a total of 116.8 million U.S. dollars into the market to stabilize the kyat exchange rate 30 times, but it is still difficult to contain the decline of the kyat. On August 16th, various currency exchange points in Myanmar respectively listed the actual transaction price of 1,775 kyats to 1 U.S. dollar to 1,790 kyats to 1 U.S. dollar. This is also after the kyat broke through 1,700 kyats to 1 U.S. dollar in May this year. It once again set a record for the lowest exchange rate of the kyat in history.
U.S. stocks in focus
When Taper comes, will U.S. stocks suffer a major impact?
Allianz’s chief economic adviser, Mohamed El-Erian, said on Monday that the stock market is unlikely to see a sharp correction before a “major shock” breaks recent trading patterns. Before the impact of the Fed’s policy plans becomes more apparent, the stock market may continue to shake off any weakness. He said: “Look at the performance of the stock market last week-it fluctuated a bit and then came back straight. We shouldn’t be surprised by this because the market is used to buying on dips.”
The S&P 500 index rebounded from a low point since the epidemic to a record high, thanks in large part to the Fed’s easing policy and the large amount of funds in the market. Erian said that a “major shock” is needed to break the tendency of investors to buy on dips. He said that these shocks may be the Fed’s policy mistakes or a “market surprise.”
Allianz chief economic adviser: U.S. stocks are unlikely to see a sharp correction before the end of the year
Allianz chief economic adviser Erian said on Monday that a “major shock” is needed to break the tendency of investors to buy on dips. He said that these shocks may be the Fed’s policy mistakes or a “market surprise.” Erian has been criticizing the Fed’s practices before, believing that the Fed has maintained easing policies for too long. He said that the next few months will be the key. “It is not until the end of this year that we will find out whether the Fed has made a major policy error. I think it is. I think inflation will not be temporary. People are underestimating inflation dynamics.”
U.S. stock company
Walmart launches commercial delivery service GoLocal to diversify revenue sources
Wal-Mart announced on Tuesday the launch of a delivery service called GoLocal, which will deliver goods from other local retailers to consumers. It is reported that GoLocal is built on the basis that retailers have been proven to have large-scale and efficient distribution capabilities. In just three years, Wal-Mart launched and expanded its customers’ delivery and courier services for more than 160,000 items from more than 3,000 stores, covering nearly 70% of the U.S. population. The company said that it expects to start shipments by the end of 2021, and the delivery fleet will include new technologies such as self-driving cars and drones.
In addition, the company also stated that GoLocal will be a white-label service, which means that deliveries will not be completed by Wal-Mart-branded vehicles. The company will provide shipping at a competitive price within two hours and the option of two-day delivery, while the delivery will be handled jointly by colleagues, odd jobs, and sometimes other delivery companies.
John Furner, President and CEO of Walmart America, said: “In an era where consumers expect speed and reliability, it is more important than ever for companies to cooperate with service providers who understand the needs of businesses.”
Intel will provide chip foundry for the U.S. Department of Defense
The US Department of Defense today awarded Intel an agreement to provide commercial chip foundry services to the Department of Defense. Intel’s foundry service department has reached an agreement with the US Department of Defense. RAMP-C is one of several programs that the US government encourages domestic chip production. This program is mainly to produce chips for defense needs.
Pfizer scoops 17.6 billion to acquire blood cancer drug company Trillium
The US pharmaceutical company Pfizer agreed to acquire Trillium Therapeutics, a Canadian research company for blood cancer drugs, at a premium of 203.8%, or US$2.26 billion.
Pfizer has bought shares of Trillium worth US$25 million last year. Trillium’s technical solution for the treatment of blood cancer is a drug developed for a message in cancer cells to prevent the immune system from dealing with it.
Digital assets receive payment giant’s support for Visa’s acquisition of CryptoPunk NFT for over US$150,000
On August 18, Visa (V.US), an American multinational financial services company, spent more than $150,000 to purchase a Non-Fungible token (NFT) named CryptoPunk #7610 from the CryptoPunks family to represent the cryptocurrency and block Support for this emerging investment field of chain technology. So far, NFT has been a pop culture phenomenon. Emojis, game memorabilia, and concept art are mainly purchased by anonymous buyers or celebrities who want to cause a sensation. This has led many to call it a short-lived, however, this Visa NFT purchase may help make digital asset sales mainstream.
Cuy Sheffield, head of Visa’s cryptocurrency business, said that in the foreseeable future, NFTs will play a key role in areas such as retail, social media, entertainment, and commerce. Visa executives further pointed out that the underlying technology behind the NFT ecosystem will open up new opportunities in the fields of music, games, ticketing, and art. According to Sheffield, Visa believes that NFT will play an important role in the future of business and can help individual content creators and small and medium enterprises in new ways.
Hon Hai and Stellattis form a joint venture to enter the smart cockpit market
Based on the memorandum of cooperation signed on May 18, Hon Hai Technology Group and Stellattis formally entered the smart cockpit and car networking market through a joint venture (Mobile Drive) after more than three months of discussions. The joint venture company was registered and established in the Netherlands, and each party holds a 50% stake in the joint venture company. We will rely on Fu Zhikang’s capabilities in the ICT industry and smart solutions, as well as Stellatis’ long-term expertise in the automotive industry, so that the joint venture can continue to grow in this industry.
(Source: Oriental Wealth Research Center)
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