Welcome to this week’s edition of top stock market highlights.
The global economy
The world economy is in shambles.
At least, that’s what Bloomberg Economics believes.
The research company has concluded that the global economy is facing one of its worst years in three decades as a plethora of troubles descends on it.
First off, there are energy shocks caused by the ongoing war waged by Russia against Ukraine.
The Eurozone may see a recession next year while the US could end the year with a downturn as rising interest rates slice off a significant chunk of consumer demand.
The US is also facing persistent inflation, setting the US Federal Reserve on a path of increasing rates that should stay till the first quarter of 2024.
Economists from Bloomberg peg next year’s global growth rate at just 2.4%, down from the estimated 3.2% chalked up this year.
However, it is only the lowest growth rate in 30 years if you exclude the years 2009 and 2020.
The former saw the fallout from the Great Financial Crisis while the latter saw the onset of the pandemic that led to a wave of border closures and movement restrictions.
Despite the dour news, we have a consistent message for all our readers: Keep calm and carry on investing.
The easing of China’s COVID-zero policy
Chinese authorities have announced a significant easing of COVID-19 controls that offer a ray of light for its battered economy.
People will no longer be required to produce negative test results or health codes to travel within the country.
Other changes include allowing people to quarantine at home rather than at government-mandated quarantine facilities.
The nationwide easing of restrictions came as huge public protests, the worst since President Xi Jinping came into power, broke out all over China over the draconian protocols.
Authorities have reacted to the wave of dissatisfaction by dialling back many virus-testing requirements, even as the government backpedals on some of its harsh policies.
This easing could have consequences, though.
Two potential problems have been flagged, the first being China’s vaccination rates and the second, being its vaccine efficacy.
Although vaccination rates in China seem to be in line with Western countries, the reality is that these rates decrease with age.
Only 40% of people above 80 years old have received all three required doses, yet this is the segment that is most vulnerable to severe illness should they contract the virus.
Also, it is questionable how effective Chinese-made vaccines are compared to those manufactured by Pfizer-BioNTech and Moderna (NASDAQ: MRNA).
China’s “inactivated virus” shots tend to produce a lower immune response and may have a lower overall efficacy rate in preventing severe illness.
With the widespread lifting of restrictions, the country should brace for a possible wave of infections that could overwhelm its hospitals.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, announced a slew of key executive appointments to expand its team and propel the group forward in its growth as a global real estate investment manager.
A newly-created position of Chief Operating Officer (COO) will be assumed by Mr Andrew Lim, who is currently CLI’s Group Chief Financial Officer (CFO).
The current Group Deputy CFO, Mr Paul Tham, will succeed Mr Lim as the Group CFO.
The Group COO’s role is to assist in business development activities such as deal sourcing, while also overseeing investments and operations in the various markets across the group’s fund and lodging management platforms.
In addition, Mr Lim will oversee the Chinese business together with CEO of CLI China, Mr Puah Tze Shuang.
The new COO role also encompasses sustainability, risk management, and compliance across the property giant.
Meanwhile, CLI also announced three brand-new roles and appointments.
Ms Janine Gui will become CLI’s new Chief M&A Officer while Ms Kng Hwee Tin was appointed as its Group Chief Risk Officer.
Ms Gui is currently serving as the Managing Director and Head of Group Strategic Investment while Ms Kng is currently CEO of China Capital Markets and Finance & Corporate Services.
These two new appointments will be effective 1 January 2023.
A new joiner, Ms Quah Ley Hoon, will take up the role of Chief People and Culture Officer on 1 December.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
