Market Beats | Trafigura Pays $55mn to Settle Fraud Charges; China Releases Series of Economy Data; A Third of Global Investment is Denominated in Dollar; 98F Heatwave to Hit NYC This Friday; China Launches Anti-dumping Probe Against EU; Apple Battery Suppler Achieves Key Material Breakthrough

—— China Releases Series of Economy Data; A Third of Global Investment is Denominated in Dollar; 98F Heatwave to Hit NYC This Friday; China Launches Anti-dumping Probe Against EU; Apple Battery Suppler Achieves Key Material Breakthrough; Trafigura Pays $55mn to Settle Fraud Charges;

1.  China Releases Series of Economy Data

China’s housing market downturn worsened in May, prompting renewed calls for government intervention to inject cash and credit into the economy. Meanwhile, industrial output, a key driver of growth, fell short of expectations, highlighting ongoing challenges.

In a raft of data released on Monday, analysts focused on negative developments in the property sector, which continues to be the primary drag on China’s economic expansion. Both real estate investment and home prices recorded accelerated declines last month.

According to the National Bureau of Statistics, industrial production increased by 5.6% year-on-year in May, a slowdown from April and below the median forecast from a Bloomberg survey.

Retail sales provided some optimism by exceeding expectations, although Chinese consumer spending has yet to fully regain its pre-pandemic strength.

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2. A Third of Global Investment is Denominated in Dollar

Amid global calls to reduce dependency on the dollar in recent years, the United States has surprisingly attracted nearly one-third of all international investment flows since the onset of the Covid-19 pandemic.

An analysis by the International Monetary Fund, shared with Bloomberg News upon request, reveals that rather than declining, the US share of global investment flows has actually increased. This trend contrasts sharply with the concerns raised in 2020 over a dollar shortage that unsettled global investors, exacerbated by the 2022 freezing of Russian assets which raised doubts about the free movement of capital. Before the pandemic, the US typically captured about 18% of global flows, according to the IMF.

Despite ongoing debates over the dominance of the dollar, the attraction of historically high US interest rates has been a significant pull factor for foreign investors. Additionally, the Biden administration’s substantial incentives aimed at boosting renewable energy and semiconductor production have further bolstered foreign direct investment (FDI) into the country.

This shift marks a notable departure from the pre-pandemic era when capital predominantly flowed into emerging markets, with China in particular experiencing rapid growth. However, China’s share of global inflows has more than halved since the pandemic, reflecting a broader recalibration of global investment patterns.

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3. 98F Heatwave to Hit NYC This Friday

New York and the rest of the US Northeast are about to experience a record-breaking heat wave that will increase electricity demand, elevate health risks, and potentially cause issues for commuters.

According to the National Weather Service, Manhattan’s Central Park is expected to reach 98°F (37°C) by Friday. The most intense heat will spread through the Midwest, upstate New York, and New England this week before descending on New York City and Washington. New York City Mayor Eric Adams stated at a press conference that a heat advisory will likely be issued on Thursday, with temperatures potentially feeling closer to 99°F.

Although summer doesn’t officially begin until Thursday, more than 120 daily high temperature records may be broken or tied across the US, with the majority occurring in the Midwest, Mid-Atlantic, and New England regions, according to the US Weather Prediction Center.

The high humidity will make conditions feel even hotter, driving up power demand as people increase the use of air conditioners.

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4. China Launches Anti-dumping Probe Against EU

Beijing has initiated an anti-dumping investigation into EU pork imports, heightening trade tensions just days after Brussels announced it would impose tariffs on electric vehicle shipments from China.

China’s Ministry of Commerce stated that the investigation, which the European agricultural industry believes will most severely affect farmers in Spain, the Netherlands, Denmark, Germany, and Belgium, will focus on EU pork imports in 2023. The probe is expected to last up to a year but could be extended by six months.

“In recent years, the European Union has been dumping large quantities of low-priced pork and pig by-products into China, impacting China’s pork and pig by-products industry, as well as the related farming sector and farmers,” the China Animal Agriculture Association said in its application to the ministry requesting the investigation.

The announcement of Beijing’s anti-dumping investigation into EU pork imports comes on the heels of Brussels notifying carmakers on Wednesday that it would raise tariffs to nearly 50 percent on some producers.

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5.  Apple Battery Suppler Achieves Key Material Breakthrough

Japan’s TDK is claiming a breakthrough in materials used in its small solid-state batteries, with the Apple supplier predicting significant performance increases for devices such as wireless headphones and smartwatches.

The new material offers an energy density of 1,000 watt-hours per litre, which is about 100 times greater than TDK’s current battery in mass production. Since TDK introduced its current battery in 2020, competitors have developed small solid-state batteries with energy densities of 50 Wh/l, while traditional rechargeable coin batteries using liquid electrolytes offer about 400 Wh/l, according to the company.

“We believe that our newly developed material for solid-state batteries can make a significant contribution to the energy transformation of society. We will continue the development towards early commercialisation,” said TDK’s chief executive Noboru Saito.

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6. Trafigura Pays $55mn to Settle Fraud Charges

Trafigura has agreed to pay a $55 million fine as part of a settlement with US regulators over charges of fraud and manipulation. This marks the latest setback for the trading house, which has been scrutinized by authorities for past misconduct.

The Commodity Futures Trading Commission (CFTC) charged Trafigura with several offenses alleged to have occurred between 2014 and 2020. These include trading gasoline while in possession of nonpublic information, manipulating a fuel oil benchmark, and impeding whistleblower communications.

Trafigura stated that it neither admitted nor denied the allegations but noted that it has “voluntarily undertaken significant steps to enhance its compliance programme” since the period in question.

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7. S&P 500 to Break 30th Record This Year

UK supermarkets have begun removing certain products potentially linked to the E.coli outbreak that has recently resulted in hospitalizations.

The UK’s Food Standards Agency (FSA) announced that Greencore Group, the nation’s largest sandwich maker, had recalled sandwiches, wraps, and salads as a precautionary measure.

While it was not clear on Friday afternoon which specific items were being removed or if they were definitively contaminated, some retailers were taking “swift action” to prevent the products from being sold, according to the British Retail Consortium (BRC), which represents the sector.

Andrew Opie of the BRC stated that following investigations by the FSA and the UK Health Security Agency, several food manufacturers in the supply chain were taking precautionary steps and recalling a limited number of products.

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本文内容来自《Financial TimesBloomberg》,以及《The Real Deal》等多家财经新闻媒体。