Singapore is seeing an uptick in sales of semiconductor products to China, as the US-China trade tensions prompt tech firms to diversify geographically. Singapore was the only major supplier to China whose chip exports rose in April, climbing 3.5% compared to March, according to Chinese customs data. Singapore is positioning itself to be a key player in semiconductor assembly and integrated circuit design. Japan and Singapore were the two biggest suppliers of chipmaking equipment to China in April, according to the data.
The S&P 500 index has resisted breaking through the 4,200 point barrier despite flirting with the figure several times, a development which Stockton University's Nathaniel Warner linked to "the markets [being] a game of psychology" and "specific landmarks [being] self-fulfilling" in terms of traders anticipating failure at key levels. Wall Street strategists had been braced to predict a 5% decline by the end of the year after the past 12 months' roiling instability but were taken aback by the coterie of tech giants generating the lion's share of market growth, leaving smaller (usually more vulnerable) companies out in the cold. This situation is leading to qualms among asset allocators, who are remaining cautious even as many increasingly think that the tech stocks are no longer overpriced having enjoyed a several-month-long boom over the past year. Meanwhile, Credit Suisse's equity strategist, Patrick Palfrey, attributed their successful rally to fund managers reversing their decision to underweight the tech firms.
US lawmakers are using investment funds to trade with little scrutiny, causing concerns over conflicts of interest according to reports. Whereas individual stock transactions must be reported within 45 days, senators purchases portfolio positions just once a year. At the end of 2021, almost 90% of senators sold investment funds worth $260m, dwarfing the scale of individual stock trading. Investors with around 50% of senators owning individual stocks with a cumulative value of over $60m, excepted investment funds are typically highly concentrated, prompting an analysis into how they are used. Democracy Forward, a non-profit progressive group is calling for the US securities regulator to expand the scope of stock-trading disclosures.
Concerns around conflicts of interest come particularly as high-ranking officials have been shown to have profited from using confidential briefings to trade stocks during the early stages of Covid-19. While some experts argue that rules have failed to keep up with the investment industry over recent decades, the suggested exemptions from reporting rules are based on the belief that funds are diversified and difficult to exploit. However, according to former chief ethics lawyer for the Bush administration, Richard Painter, industry and country-specific funds create the same issues with respect to conflicts of interest and criminal insider trading that individual stocks do.
Problems with Congress not keeping up-to-date with industry changes are highlighted, and the White House remains subject to tighter restrictions on funds that concentrate on country-specific or particular sectors. There are growing concerns, however, over members of Congress investing their funds heavily in countries that are trading with the US with a principal task to grow the US economy. The calls for greater transparency are likely to continue as the push towards ESG continues to enhance the scrutiny of investment practices across the board.
Germany’s Foreign Minister, Annalena Baerbock, has favoured a pragmatic approach to foreign policy, balancing principles with realpolitik. Praised by political rivals for her performance, Baerbock has taken a strong stance on human rights, environmental matters, and confronting Russia. Active in the fight against climate change, Baerbock attended a conference in Saudi Arabia where she praised the nation’s efforts to solve crises in Yemen and Sudan and extolled its “incredible potential” for renewable energy. However, she also left a copy of her 80-page handbook on feminist foreign policy, as there are still “many things that divide us” in the realm of human rights. Baerbock’s ambition to be chancellor was stalled after embroiling herself in a plagiarism scandal in 2021, but after serving as Green Party leader, she has rebranded herself and risen to become one of Germany’s most popular politicians. Political supporters argue that her pragmatic approach makes Baerbock a perfect fit for her role in Germany’s decentralised coalition government, even if it leads to friction with other parties.
