Thursday, June 16, 2022

Market update: Federal Reserve hikes short-term rates by 0.75% (15 June 22)

S&P 500 after the Fed's 75-basis point rate hike yesterday, which was the largest move in 28 years.

Several central banks elsewhere also raising their key rates:  the Swiss National Bank surprised overnight with a 50-basis point rate hike (its first hike in 15 years), Brazil's central bank raised its key lending rate by 50 basis points, and the Bank of England increased its key lending rate by 25 basis points while projecting a 0.3% decline in Q2 GDP as a whole. 



Wednesday, June 8, 2022

Yen weakness

The Japanese currency has weakened yet again after Bank of Japan Governor Kuroda said “monetary tightening is not at all a suitable measure” citing recession odds and higher commodity prices. As the ECB and RBA look to catch up to the Fed in terms of taming inflation, the BOJ cannot.  


Take a look at the Chinese offshore yuan versus the Japanese yen. Both are major Asian exporters as well as net importers of oil, getting hit hard by higher commodity prices and competing to get their goods to the rest of the world.

When the offshore yuan last hit the 20 level against the Japanese yen in April, China devalued its currency further against the dollar. The logic there is if the yuan is cheaper, then their exports will be more attractive and therefore attract more business.

So keep an eye on the Japanese yen against other pairs, and not just the U.S. dollar. There are ripple effects, especially as consumers try to get their hands on commodities and exports.

Tuesday, June 7, 2022

Global Central Bank Rates (June 2022)

  • India hikes rates for the 2nd time, 50 bps increase to 4.90%.
  • Poland hikes rates for the 9th time, 75 bps increase to 6.00%.

Friday, June 3, 2022

Electric cars: Li Auto (NASDAQ:LI)

Li Auto Inc., also known as Li Xiang, is a Chinese electric vehicle manufacturer headquartered in Beijing, with manufacturing facilities in Changzhou. 
  • Founder and CEO: Xiang Li (2015–)
  • Founded: 2015
  • Headquarters: Beijing, China
  • Full Time Employees: 6,596
  • IPO: July 2020 (Nasdaq)
  • https://www.lixiang.com/
Li Auto competes directly with Tesla (TSLA) and Nio (NIO) in the high-end EV market. The company debuted its first and only model, an electric hybrid SUV called the Li ONE, in December 2019. That vehicle carries a price tag ranging from $29,000 to $76,000 and was one of China's top-10 sellers across all fuel types in 2020.
Li Auto's October 2021 deliveries totaled 7,649 vehicles. That number is up from 7,096 in September and a 107% year-over-year increase. Global chip shortages have weighed on production outputs for automakers like Li. But that supply-chain kink seems to be easing. LI stock edged lower on the news.



June 21, 2022:  Li Auto unveils Li L9, its flagship smart SUV
Li L9 is a six-seat, full-size flagship SUV, offering superior space and comfort for family users. Its self-developed flagship range extension and chassis systems provide excellent drivability with a CLTC range of 1,315 kilometers and a WLTC range of 1,100 kilometers. Li L9 also features the Company's self-developed autonomous driving system, Li AD Max. Li L9 is open for reservation starting today and will arrive at all Li Auto retail stores nation-wide by July 1, with test drives available from July 16. Delivery will commence by the end of August 2022.
  • Company's second model since Li Auto's inception seven years ago, to take on the likes of BMW and Audi.
  • Range: with an extended battery range, will be able to go as far as 1,315km on a single charge.
  • Size:  nearly identical to the BMW X7, and larger than the automaker’s other model – the Li Xiang One which debuted back in 2019.
  • Price: sold at 459,800 yuan (US$68,654). (BMW’s X5 starts at 605,000 yuan in China, while prices for Audi’s Q5 range from 400,000 yuan to 500,000 yuan.)
 
 


Beijing-based Li Auto, Shanghai-headquartered Nio, Guangzhou-based Xpeng are all regarded as Chinese rivals to Tesla, the runaway leader in China’s premium EV segment.


Li Unveils 2021 SUV Model
Li Auto rolled out the 2021 version of the Li ONE on May 25. The latest model includes upgrades to its advanced driver-assistance system (ADAS) and powertrain systems.

These improvements will extend the range capacity of the Li ONE to 1,080 kilometers, or 671 miles. Deliveries of the vehicle began in June.

Li Auto's focus on cost-effective SUVs is the heart of its business strategy. The company was one of the first to successfully commercialize Extended Range Electric Vehicles (EREVs), which require a smaller battery pack. A smaller battery means lower production costs. And multiple power sources provide consumers with a practical solution to China's notorious lack of battery charging infrastructure.

Unlike most other electric vehicles, Li Xiang One is a plug-in hybrid vehicle (PHEV), which can be powered by either petrol or electricity

IPO: July 2020 (Nasdaq)

Founder and CEO Xiang Li 

Before Li Auto, Xiang Li established Autohome, a site for consumers to shop online for cars. By 2008, Autohome became China’s leading online platform for car dealers and consumers with its AI-generated content, comprehensive automobile library and extensive car listings. The company had an impressive 90 per cent market share.

In 2013, Autohome was listed on the New York Stock Exchange with a market value of US$3 billion.

Sunday, May 15, 2022

ETF composition – Invesco DBA

Invesco DB Agriculture Fund (DBA) : The fund is composed of futures contracts on some of the most liquid and widely traded agricultural commodities.
  • Source
  • Avg. Volume 3,673,278  (5/13/22)
  • Expense Ratio (net) 0.85%
(5/13/22)
NAMECONTRACT EXPIRY DATE% OF NET ASSETS
CornCBOT Corn Future09/14/202215.00
SoybeansCBOT Soybean Future11/14/202213.49
SugarNYBOT CSC Number 11 World Sugar Future09/30/202210.94
Live CattleCME Live Cattle Future08/31/202210.19
CoffeeNYBOT CSC C Coffee Future07/19/202210.13
CocoaNYBOT CSC Cocoa Future07/14/20229.18
WheatKCBT Hard Red Winter Wheat Future07/14/20228.94
WheatCBOT Wheat Future07/14/20228.20
Lean HogsCME Lean Hogs Future07/15/20227.50
Feeder CattleCME Feeder Cattle Future08/25/20223.23
CottonNYBOT CTN Number 2 Cotton Future07/07/20223.22
100.02

  
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Wednesday, May 11, 2022

Travel services stocks

 (by market cap)                        
Company name Mkt Cap

Expedia (NASDAQ: EXPE) 

Booking.com (NASDAQ: BKNG) Booking Holdings (BKNG) 
Booking.com (NASDAQ: BKNG) Booking Holdings (BKNG) is a provider of online travel and related services, available to customers and partners in over 220 countries and territories through six primary consumer-facing brands - Booking.com, priceline, agoda.com, Rentalcars.com, KAYAK and OpenTable.

Airbnb (NASDAQ: ABNB)

Trip.com (NASDAQ: TCOM) Trip.com Group Limited is a travel service provider consisting of Trip.com, Ctrip, Skyscanner, and Qunar.

Tripadvisor (NASDAQ: TRIP) Travelers across the globe use the Tripadvisor site and app to browse more than 860 million reviews and opinions of 8.7 million accommodations, restaurants, experiences, airlines and cruises. 

Trivago (NASDAQ: TRVG) Trivago is a global hotel and accommodation search platform used by travelers to search for and compare different types of accommodations, such as hotels, vacation rentals and apartments

Sabre Corporation (NASDAQ: SABR) Sabre’s software, data, mobile and distribution solutions are used by hundreds of airlines and thousands of hotel properties to manage critical operations, including passenger and guest reservations, revenue management, flight, network and crew management.