LB Morning Call | Senate vote on tax and climate bill

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Asia Pacific

This morning, the U.S. stock futures index opened little change, Nasdaq futures rose 0.15%, Dow futures, S & P 500 futures rose 0.02%.

IPO

Shuangcaizhuang intends to offer 241 million shares globally. The offer price will not exceed HK $0.56 per share and not be less than HK $0.52. It will be offered from August 8 to August 11. It is expected that the shares will be offered on August 2022. Trading on the Stock Exchange began on the 19th.

Lehua Entertainment passed the listing hearing of the Hong Kong Stock Exchange. Lehua Entertainment was established in June 2009. Its main business is divided into four major sectors: Lehua Music, Lehua Brokerage, Lehua Film and Television and Lehua Variety Show.

Biosetto (Beijing) Pharmaceutical Technology joint stock company passed the listing hearing of the Hong Kong Stock Exchange and intends to be listed on the main board market. Goldman Sachs and CICC are joint sponsors. The company is a revenue-generating company for biopharmaceutical and preclinical research services.

US Stock News

1. Apple has "started recording" its September virtual event, which is expected to unveil the new iPhone 14, Apple Watch Series 8 and a new "durable" Apple Watch.

2. Buffett's Berkshire Hathaway lost $43.8 billion in net profit in the second quarter, of which stock investment lost $66.8 billion on paper. Among the top five stocks in the company's holdings, Apple, American Express, and Bank of America all fell by more than 20% in the second quarter.

3. CICC believes that there is not much problem with the general direction and logic of the current round of US stock rebound, but there are some suspicions of "preemptive running" and "overdraft" in terms of timing and magnitude. Therefore, under the background that short-term US bond interest rates are fully included in easing expectations and recession fears, or it is difficult to further decline significantly, it is not ruled out that both US bonds and US stocks will return to the consolidation trend, waiting for the policy turn to certainty in the fourth quarter.

4. Tesla CEO Elon Musk said that Tesla FSD Beta 10.69 will be launched on August 20.

5. Facebook parent company Meta Platforms has agreed to delay the completion of its acquisition of VR company Within Unlimited, whose products include fitness app Supernatural.

6. Lisa Su, chairperson and CEO of AMD, said that the 5-nanometer Ryzen7000 processor codenamed Rapheal will be launched in the third quarter. In addition, AMD has expanded its lineup of 5-nanometer product lines, and TSMC will directly benefit from exclusively undertaking foundry orders, maintaining full capacity utilization.

Singapore News

1. Lincotrade & Associates, a local construction and decoration company, was listed on the Kelly Board today through a reverse takeover (RTO) backdoor listing of explosives manufacturer Fabchem China. Lincotrade & Associates issued 5.45 million 5,000 new shares at 0.22 yuan per share, raising about 1.2 million yuan for working capital and listing expenses. This is the 11th new stock listed on the Singapore Exchange (SGX) this year and the seventh new stock listed on the Kelly Board.

2. A consortium led by Alibaba Group and Perennial Holdings plans to develop a 305-meter-high mixed-use skyscraper project at 8 Shenton Avenue, which is set to become the tallest building in Singapore. Investors in the consortium include Penrelli Group, Penrelli controlling shareholders Guo Kongfeng and Wilmar International, Chip Eng Seng and Ji Yongcheng controlling shareholders Tang Yigang and his wife.

3. Koh Brothers Group achieved a net profit of 5 million yuan in the first half of the 2022 fiscal year ended June, an increase of 151% over the same period of the previous fiscal year.

4. Yangzijiang Shipbuilding's net profit from continuing operations in the first half of this year increased by 32% year-on-year to 1.1 billion 70 million yuan (about 200 million 39 million Singapore dollars), and revenue increased by 70% year over year to 9.7 billion 4,000 yuan.

Macroeconomy

1. In US dollar terms, China's total import and export value in July 564.66 billion US dollars, an increase of 11% year over year. Among them, exports 332.96 billion US dollars, an increase of 18%, expected 16.2%, and the previous value of 17.9%; imports 231.7 billion US dollars, an increase of 2.3%, expected 4.5%, and the previous value of 1%; the trade surplus 101.26 billion US dollars, a new high, expanding by 81.5% year over year.

2. The U.S. Senate has passed a landmark tax, climate and health care bill (the Inflation Reduction Act). Currently, the bill is before the House of Representatives and is expected to pass on Friday. Among them, the new 1% tax on share buybacks will not take effect until 2023, which means that there may be a series of buybacks before the end of this year.

3. In the face of soaring energy prices such as natural gas and electricity, there has been a boom in the installation of solar panels in British households, and the market for related products has risen. It is expected that by October this year, the average annual energy bill of British households will exceed 3,300 pounds, a year over year surge of about 70%.

4. According to the CME "Fed Watch", the probability of the Fed raising interest rates by 50 basis points in September is 32%, and the probability of raising interest rates by 75 basis points is 68%; the probability of raising interest rates by 75 basis points in November is 18%, the probability of accumulating 100 basis points of interest rate hike is 52.3%, and the probability of accumulating 125 basis points of interest rate hike is 29.7%.

Reminders

17:00, Singapore's foreign exchange reserves in July