Planet Finance feels more than a little China-obsessed this morning in the latest sign that post-covid economic policy is running headlong into the long-simmering “new Cold War” between Beijing and some western capitals.

Car assembly is among the first industries it could up-end as many governments — not all of them western — complain that Chinese manufacturers are dumping EVs on their markets at cut-rate prices. Here’s what you need to know this morning:

#1- Allegations that China unfairly subsidizes EVs continue to get plenty of attention, triggered by the USD 441 mn IPO this past Friday of EV maker Zeekr. The Geely unit saw its shares pop 34% in the biggest US debut for a Chinese company since 2021.

Zeekr went public as the Biden administration gets ready to slap tariffs of up to 100% on Chinese EVs, prompting the Financial Times to note that rising protectionism makes “the outlook for Chinese automakers in Europe and the US is highly uncertain.”

That will likely see Chinese car makers push to set up shop in abroad, CNBC says that Thailand, which bills itself as the “Detroit of the East,” could benefit. Byd and rival Neta Auto could start producing in Indonesia soon, as we noted last week.

Sound like a familiar playbook? It’s effectively what Japanese automakers did in the 1980s to smooth-over tensions with the US as imports threatened the American car industry.

Hey, Saudi and Egyptian assemblers — are you taking note?

#2- Speaking of huge subsidies: A “USD 81 bn subsidy surge” is fuelling the global battle for chipmaking supremacy between China and the West, Bloomberg writes in a deep dive this morning.

#3- Fast-fashion retailer Shein is looking at a possible London IPO after it was rebuffed by the United States, Reuters reports.

MARKETS THIS MORNING-

Major Asian benchmarks have started the trading week in the red. It’s anybody’s guess what’s driving sentiment this morning — the Monday blues? Earnings season ennui? — but CNBC suggests it’s because investors are “assessing China’s stronger-than-expected April inflation data.” Whatever the sheep’s entrails suggest…

US and European stock futures are largely unchanged this morning, and CNBC thinks there’s room for US equities in particular to extend last week’s gains. “Earnings estimates may have become too pessimistic leading into 1Q 2024 results, and widespread beat-and-raise throughout reporting season appears to have catalyzed a turnaround in sentiment,” it quotes one analyst as saying.

TASI

12,217

-0.6% (YTD: +2.1%)

MSCI Tadawul 30

1,530

-0.5% (YTD: -1.3%)

NomuC

27,195

0.4% (YTD: +10.9%)

USD : SAR (SAMA)

3.75 Sell

3.75 Buy

Interest rates

6% repo

5.5% reverse repo

EGX30

25,156

-3.3% (YTD: +1.1%)

ADX

9,090

-0.3% (YTD: -5.1%)

DFM

4,173

-0.2% (YTD: +2.8%)

S&P 500

5,223

+0.2% (YTD: +9.5%)

FTSE 100

8,434

+0.6% (YTD: +9.1%)

Euro Stoxx 50

5,085

+0.6% (YTD: +12.5%)

Brent crude

USD 82.79

-1.3%

Natural gas (Nymex)

USD 2.25

-2.1%

Gold

USD 2,375

+1.5%

BTC

USD 61,207

+0.3% (YTD: +44.8%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.6% yesterday on turnover of SAR 5.3 bn. The index is up 2.1% YTD.

In the green: Sadafco (+10%), Chemical (+10%) and AlJouf (+9.9%).

In the red: Thimar (-9.9%), Tanmiah (-9.9%) and Walaa (-9.9%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.4% yesterday on turnover of SAR 28.8 mn. The index is up 10.9% YTD.

In the green: NBM (+6.9%), Lana (+6.3%) and AlRashid Industrial (+5.2%).

In the red: Alhasoob (-9.1%), Pro Medex (-5.7%) and Raoom (-5.4%)

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