x

Start investing with a
free Kristal.AI account.

icon

Simple. Secure.

*Error message

Weekly Feed Mins Read

Kristal Weekly Feed | 2nd September 2019

Kristal Weekly Feed Banner

All you need to know, in under 1 minute.

Here’s a concise report on what made headlines in the global market last week.

Positives

  • Dow and U.S. Stocks buoyed with hopes that trade tensions will mitigate soon
  • ‘Too Big to Fail’ Makes Eskom Debt a Good Bet for Bondholders

Negatives

  • August ’19 ends as second-worst month of the year for the Dow and the broader Stock Market
  • Antique China Debt: Trump’s New Trade War Tool

Now, for more detail.

Positives 

1. Dow and U.S. Stocks buoyed with hopes that trade tensions will mitigate soon

What You Should Know

Beijing is hoping for continued trade talks with the United States after positive remarks from a Chinese government official on 29th August. That Thursday was said to have been the best day for stocks in the two weeks. With the Dow (INDU) closing at 326 points, or 1.3% higher, the S&P 500 (SPX) finishing at 1.3% higher, and the Nasdaq Composite (COMP) closing up at 1.5%, both The Dow and the broader U.S. stock market are buoyed by hopes that trade tensions between the United States and China might ease.

What You Should Lookout For 

Amid the faint optimism, markets are still at the mercy of trade headlines. The watch is going to be as crucial as fear-induced. Better to be prepared for the most uncertain results the next few days, while hoping for the best.

Suggested Reading:

Stocks rally on hopes that trade tensions will ease

 

2.‘Too Big to Fail’ Makes Eskom Debt a Good Bet for Bondholders

What You Should Know

South Africa’s pledge not to let Eskom Holdings SOC Ltd. fail has restored yield-starved bondholders’ faith in the company further. Bondholders from New York to Seoul want to continue holding onto the power company’s securities, because of their extra return relative to the country’s sovereign debt.

The government’s pledge that it won’t let the company default, effectively guaranteeing the debt, has led investors to play that spread without too much risk even though Eskom isn’t generating enough cash to service its own liabilities.

What You Should Lookout For 

Ever since Ramaphosa has expressed that he would not give up on Eskom, investors holding Eskom bonds are seeing that there is a higher probability that the government will save the company, since the company is just too important for its economy.

Suggested Reading:

‘Too Big to Fail’ Makes Eskom Debt a Good Bet in Low-Yield World

 

Negatives

1. August ’19 ends as second-worst month of the year for the Dow and the broader Stock Market

What You Should Know

Trade tariffs, retaliation, harsh rhetoric and recession warnings have been flashing from the bond market this month. After the Dow slipped 1.7%, while the S&P was down 1.8%, and the Nasdaq shed 2.6%, stocks logged their second worst month of this year, after May. Although August is typically considered to be a quiet month for the market, this hasn’t held true of late.

What You Should Lookout For 

As the trade tensions between U.S. and China escalated, concerns of a currency war might be on the way, particularly after the Chinese government devalued its yuan to fall below the 7-to-1 ratio against the US dollar for the first time in a decade. Also, President Donald Trump comminuted an additional 10% of tariffs on $300 billion of Chinese imports on the first trading day in August, which led the Dow to its biggest intraday swing of the year.

Suggested Reading:

Dow logs second-worst month of the year

 

2. Antique China Debt: Trump’s New Trade War Tool

What You Should Know

As U.S.-China trade war doesn’t seem to see a conclusion, President Trump finds another trade war tool to spar with China. Century-old claims on Chinese bonds sold before the founding of the communist People’s Republic are now being probed by the Trump administration.

The defaulted China bonds can be found hides of thousands of Americans, or on EBay, where the certificates sell as collectibles for as little as a few hundred dollars each. The PRC, which succeeded the Republic of China after it replaced the imperial dynasty, has never recognized the debt, though that hasn’t stopped decades of attempts to collect payment on it.

What You Should Lookout For

According to Jonna Bianco, a Tennessee cattle rancher who leads a group representing pre-revolutionary China bondholders, China is in selective default, having paid out on bonds held by British investors in 1987 as part of the Hong Kong handover deal negotiated by former Prime Minister and ‘Iron Lady’ Margaret Thatcher. If China doesn’t pay out, she says, it should be blocked from selling new debt in international markets.

China, apparently now owes more than $1 trillion on the defaulted debt, once adjusted for inflation, interest, and other damages—a sum roughly equivalent to China’s holdings of U.S. Treasuries.

Suggested Reading:

Trump’s New Trade War Tool Might Just Be Antique China Debt

Disclaimer

The materials and data contained herein are for information only and shall in no event be construed as an offer to purchase or sell or the solicitation of an offer to purchase or sell any securities in any jurisdiction. Kristal Advisors does not make any representation, undertaking, warranty or guarantee as to the update, completeness, correctness, reliability or accuracy of the materials and data herein. All opinions, forecasts or estimation expressed herein are subject to change without prior notice. Kristal Advisors and its affiliates accept no liability or responsibility whatsoever for any direct or consequential loss and/or damages arising out of or in relation to any use of opinions, forecasts, materials and data contained herein or otherwise arising in connection therewith.

Other stories you might like

cross
Change your country to India?

You’re now visiting Kristal.AI Worldwide.
To explore diverse offerings in Indian and global products, select India as your country.

ind

India

hkg

Hong Kong

sgp

Singapore

global

Other
Accredited Investor Declaration

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.

An Accredited Investor is an individual
  • Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
  • Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
  • Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)

I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.

< Back Proceed as Private Wealth

Wealth Management Solutions
Accredited Investor Declaration

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.

An Accredited Investor is an individual
  • Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
  • Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
  • Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)

I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.

Proceed as Private Wealth

STOCKS

Seamless investing enabled by easy and instant access to a wide range of cross border stocks of acclaimed and high potential companies, handpicked by our expert investment committee.

For investors who desire enhanced returns while co-owning shares of global companies.

*The range of stocks will be made accessible, post login

OVERVIEW

Only the best

A range top performing and high potential stocks carefully selected by our seasoned investment committee

Instant Access

Wide range of global stocks made easily accessible with a single click

Diversity

Companies from varied sectors and fields made available for investment enabling clients to diversify investments and effectively mitigate risks

Innovative

High potential companies leading with disruptive technologies made available to clients enabling them to future proof their investments

THEMATIC STRATEGIES

Enabling clients to invest in trending themes like FAMANGThe FAMANG Kristal invests in Facebook, Apple, Amazon, Netflix and Alphabet’s Google stocks. Assets are carefully chosen by an algorithm in order to deliver a superior returns based on past performance. The strategy is rebalanced every quarter., TECHGlobal Technology ETFs is a genetic algorithmic strategy focussed specifically on the Technology sector., ESGProvides exposure to higher rated environmental, social, and governance (ESG) companies while accessing large- and mid-cap stocks in Europe, Australia, Asia and the Far East., etc. with a single click or just create your own thematic basket.

Future-proof your portfolio and capture emerging investment themes.

*The range of Thematic Strategies will be made accessible, post login

OVERVIEW

Explore and Identify

Select from a range of expertly designed trending and diverse themes

Efficient Execution

Enabling easy exposure to your preferred themes without the hassle and costs of individual security selection and execution

Only the Best

A ready-made collection of Kristals that derive the best of the specific asset class or theme

Unique Mix

An optimised blend of ETFs and individual counters, enhancing efficiency and profitability

Contact our Relationship Manager
ALTERNATIVE INVESTMENTS

Diversify your portfolio with exclusive Private Equity, Pre-IPO deals, VC Funds & other investments like Bitcoin, Gold, Hedge Funds and many more.

Kristal fractionalizes difficult-to-access deals and opportunities.

View Alternative Investments

OVERVIEW

Instant Access

A wide range of alternative asset classes such as Gold, Bitcoins, Hedge Funds and many more; readily made available

Risk Management

Enables investments in diversified assets hence spreading the risk

Easy Tracking

Enables you to get a consolidated view of investments in all assets at one place, hence facilitating easy monitoring and tracking

Exclusive Deals

Access to exclusive Venture Capitalist, Startup as well as pre-IPO investment opportunities

Low Investment Tickets

Facilitates fractionalization of investments in deals

Contact our Relationship Manager
FUNDS PLATFORM

Professionally managed funds with active investment strategies, screened for you by our investment committee to diversify your portfolio.

Enabling clients to access exclusive investment strategies.

View Funds

View Funds

OVERVIEW

Access

Provides Access to Professional Fund Managers

Low Investment Tickets

Facilitates fractionalization of investments in funds

Diversity

A wide spectrum of investment strategies ranging from Arbitrage to Credit to Hedge Funds and many more

Fees

No additional costs are charged by Kristal.AI

Exceptional Performance

Funds with an impressive track record and potential for high profitability

Leverage

Benefits from insights of the expert selection and advisory team

Easy Management

No time consuming management of portfolios

Contact our Relationship Manager
TAILOR-MADE PRODUCTS

Customize products based on your market outlook and specific needs across equities, bonds, gold and more.

For investors looking to enhance portfolio yield based on market views.

*The range of Tailor Made Products will be made accessible, post login

OVERVIEW

Enhanced Earnings

Structures with potential to enhance portfolio yield based on market movements

Customization

Product features can be designed to articulate investor views

Fees

A flat and transparent fee structure like nowhere else

One-Click Access

A single feature ‘Ideas’ enables you to access recently launched and trending market opportunities

Contact our Relationship Manager
BUILD YOUR OWN KRISTAL

Can’t find what you are looking for? Create your own exclusive investment strategy with risk management & periodic reporting.

For seasoned investors who prefer to design their own portfolio.

OVERVIEW

Empowered Investing

Enables clients to create their own custom portfolio based on their unique needs

Unlimited Choice

Access to all possible exchange traded assets

Flexible Management

Flexibility in delegating the portfolio management role to us or actively taking up the day to day investment decisions, in your custom Kristal

Custom Fee Structure

A simple, transparent and a customized fee structure

Access to Expertise

Custom performance reporting as well as advisory support

Contact our Relationship Manager