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Weekly Brief

Januarius Weekly Brief

Patrick Wong July 2, 2021

US Equities and large cap tech stocks continued to rally in the week ending July 01, 2021. Corporate fixed income and long-term U.S. treasuries were flat and positive respectively.


Global Markets

  • Officials from 130 countries endorsed setting a minimum rate for international corporations like Facebook and Google in what Janet Yellen labeled "a historic day for economic diplomacy." The OECD-brokered deal sets the stage for G-20 finance ministers to sign off on an agreement in principle next week in Venice. Implementation of the new rules could come as soon as 2023. (Bloomberg)
  • OPEC+ talks broke down. An agreement to boost output was thrown into doubt as the UAE blocked a preliminary deal Saudi Arabia forged with Russia on Thursday, prompting the cartel to postpone its talks to Friday. Still, crude futures closed above $75 a barrel in New York for the first time since 2018. (Bloomberg)
  • Goldman doubled down on its back-to-office messaging in Japan. It's preparing to move its Tokyo headquarters into a new tower being built that's slated for completion in 2023. Citi's taking a slightly less hard line on office-vs.-home, with CEO Jane Fraser reiterating the bank's RTO will be a blended approach that allows for some flexibility. Meantime, Credit Suisse is offering selective mid-year salary increases of up to 20% to top wealth managers as it seeks to stem defections. (Bloomberg)
  • TPG Capital is mulling a plan to go public through an IPO or (you guessed it) SPAC, a person familiar said. Bowlero, which owns bowling centers, will go public through a merger with a blank-check firm, people familiar said. Chip equipment maker MKS Instruments will buy specialty chemicals group Atotech for about $5.1 billion. And Philip Morris will purchase nicotine gum maker Fertin for about $820 million. (Bloomberg)
  • The best of the cyclical recovery seems to be behind us after six to nine months of a strong rebound. On a regional basis, Europe seems to be taking the lead now. It was about time, as Europe had been lagging Asia and the US for quite a while. The pandemic and the European response to it were the main reason for that lagging. As it seems infection rates are not falling any further, the question is whether the economic mo- mentum will hold up all the same. Looking at the most recent prints of leading indicators, the catch-up potential is still sizeable. (Julius Baer)
  • When Fed Chair Powell testified to Congress recently, he mainly communicated the same views as that of Williams.
  • During this period, 10 Year U.S. Treasury Rates swung from 1.48 to 1.58 to 1.36 and is now simply back where it started at 1.48

Philippines


  • Employers gearing up for million-job push (BusinessWorld)
  • NEDA ICC approved 20 projects worth P832.056B in 2020 (BusinessWorld)
  • Duterte orders drafting of workforce recovery plan (BusinessWorld)



Life is a continuing string of opportunities to practice.

JJ Atencio