Rounding up top investing articles from around the web, including articles shared on Twitter.
Temasek returns to black in FY 2024 (TechinAsia)
Temasek turned in a one-year total shareholder return (TSR) of 1.6% for the financial year ended March 31, reversing the previous year’s negative showing. However, the recovery was hampered by the weak China market.
The figures were unveiled on July 9 at the launch of the annual Temasek Review, which covers Temasek’s performance overview, performance highlights, as well as its group financial summary for the latest financial year.
On a 10-year basis, Temasek’s TSR remained unchanged at 6%, while its 20-year TSR slipped slightly from 9% last year to 7% this year.
With the 20-year rolling period, the decline was attributed mainly to the exclusion of the economic recovery period of 2004 after the severe acute respiratory syndrome outbreak.
Speaking at a press conference on Tuesday, Chia Song Hwee, the deputy CEO of Temasek, said that the entity’s portfolio returns over 10- and 20-year periods are its main focus.
GIC posts 3.9% annualised return over 20 years (Straits Times)
Sovereign wealth fund GIC posted its weakest 20-year rolling returns in four years, on the back of lower returns in recent years and stubborn inflation.
GIC, one of three entities that contribute to Singapore’s reserves, reported a 3.9 per cent annualised rolling 20-year real rate of return for the financial year ended March 31, 2024. This figure factors in inflation. The latest rate of return, which spans April 2004 to March 2024, is down from 4.6 per cent in 2023, 4.2 per cent in 2022 and 4.3 per cent in 2021.
In his outlook, Mr Lim said: “Uncertainty is a given for any investor, but events in the past few years intensified it to a profound level, challenging foundational assumptions of the past four decades.”
He noted that the world order is being reshaped, domestic politics in several large countries is in a state of flux, and the effects of climate change are becoming both more intense and unpredictable, even as rapid technological changes buffet societies.
“It is no longer sufficient for investors to only consider where we are in the macroeconomic cycle or the future path of interest rates. National security concerns, politically driven regulations, climate impacts and policy, and more must be part of the calculus,” Mr Lim said, adding that the unprecedented uncertainty translates into a wider range of possible outcomes.
He cautioned in a briefing on July 23 that the profound uncertainty the fund faces is likely to continue to weigh on returns. Mr Lim said that amid the volatility, the fund has to play to its strengths and seize new opportunities.
The fund has also set up an investment programme for green assets in 2024, following green shoots in the sustainability solutions group in the private equity department, investing in climate technologies.
Over the past years, GIC said, it has been diversifying on a far more granular level to enhance the resilience of the total portfolio, including stepping up investments in infrastructure and real estate.
Harris leads Trump 44% to 42% in US presidential race: Poll (Straits Times)
Ms Harris, whose campaign says she has secured the Democratic nomination, led Trump 44 per cent to 42 per cent in the national poll, a difference within the 3 percentage point margin of error.
Ms Harris and Trump were tied at 44 per cent in a July 15-16 poll, and Trump led by 1 percentage point in a July 1-2 poll, both within the same margin of error.
While nationwide surveys give important signals of American support for political candidates, just a handful of competitive states typically tilt the balance in the US Electoral College, which ultimately decides who wins a presidential election.
The most recent poll results underscored the rationale for Mr Biden dropping out of the race and for Ms Harris replacing him on the ticket.
Some 56 per cent of registered voters agreed with a statement that Ms Harris, 59, was “mentally sharp and able to deal with challenges”, compared with 49 per cent who said the same of Trump, 78.
Only 22 per cent of voters assessed Mr Biden that way.
Trash-filled balloons from North Korea hit the South’s presidential compound (Straits Times)
Trash-filled balloons sent by North Korea hit the South Korean presidential compound on July 24, security officials told AFP, prompting Seoul to mobilise chemical response teams in the escalating tit-for-tat propaganda war.
It is the first time the South Korean leader’s office in downtown Seoul, which is protected by scores of soldiers and a no-fly zone, has been directly hit by any of the thousands of trash-filled balloons launched by Pyongyang since May.
“The chemical, biological and radiological (warfare) response team has safely collected the trash balloons,” the presidential security service told AFP.
“After investigation, results have confirmed that there was no danger nor contamination,” it said.
South Korea’s Joint Chiefs of Staff had earlier confirmed that the North was once again sending the balloons. Seoul city authorities also issued an alert on the morning of July 24.
Tourist boom and ‘hipster’ cafes in Pahang, Cameron Highlands fuel food price surge (Straits Times)
New tourist attractions as well as “hipster” and franchise cafes that have popped up in many parts of Pahang over recent years have driven up food prices, say residents.
S’pore passport reclaims sole position as world’s most powerful, after sharing title with 5 others (Straits Times)
The Republic has trumped five other countries to become the only one in the top spot in a world ranking of passports, with Singaporeans now having visa-free entry to 195 out of 227 travel destinations.
According to the latest data published by the Henley Passport Index on July 23, the five countries – France, Germany, Italy, Japan and Spain – have dropped to second place, with visa-free entry to 192 destinations.
In the latest rankings, an “unprecedented seven-nation cohort” takes the third spot with access to 191 destinations without a visa. The countries are Austria, Finland, Ireland, Luxembourg, the Netherlands, South Korea and Sweden.
World registers hottest day ever recorded on July 21, monitor says (Straits Times)
Sunday, July 21, was the hottest day ever recorded globally, according to preliminary data from the European Union’s Copernicus Climate Change Service.
The global average surface air temperature on July 21 reached 17.09 deg C – slightly higher than the previous record set in July 2023 of 17.08 deg C.
S’pore core inflation drops to 2-year low in June, full-year overall inflation forecast under review (Straits Times)
Consumer price rises here cooled more than analysts expected in June, with overall inflation hitting a three-year low and core consumer inflation, a more than two-year low.
Core inflation, which excludes private transport and accommodation costs to better reflect the expenses of households here, dropped to 2.9 per cent year on year, after sticking stubbornly to 3.1 per cent for the previous three months.
This is the lowest since March 2022, and below the 3 per cent tipped by analysts in a Bloomberg poll. The drop came on the back of lower inflation for retail, other goods and services.
Overall or headline inflation in June fell more sharply – to 2.4 per cent from 3.1 per cent in May – due to lower private transport costs.
Major global chip equipment makers’ China revenue share has doubled since U.S. imposed export controls (CNBC)
- Four of the world’s largest chip equipment manufacturers have more than doubled the share of their China revenue since late 2022, Bank of America analysts said.
- “China accelerated its purchase of semi manufacturing equipment since the U.S. imposed tighter export restrictions in October 2022, aiming to develop its own semi manufacturing capability,” the report said.
- The research found the companies’ China revenue more than doubled from 17% of total revenue in the fourth quarter of 2022 to 41% in the first quarter of 2024.
Tesla’s profit margin is getting hammered by EV discounts and hefty AI spending (CNBC)
- Tesla’s adjusted operating margin shrank to its lowest in three years in the second quarter.
- The company has been trying to stem a decline in auto sales by offering big incentives and steep discounts.
- Profit missed Wall Street estimates, pushing the stock down by 8% in extended trading on Tuesday.
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