Apple became the first company with a market capitalization of $3 trillion, the Philippine peso reversed in a week, and Turkey ordered exporters to convert 25% of their revenues into lira | overseas financial references

21st Century Business Herald reporter Hu Tianjiao comprehensive report

1. Global financial markets

Apple became the first company with a market capitalization of $3 trillion

Apple became the first company to reach a market capitalization of $3 trillion. In less than 16 months, Apple's market value grew by $1 trillion with the outbreak of covid-19. In August 2018, the iPhone maker became a $1 trillion company, and two years later became the first to reach a market capitalization of $2 trillion. On Monday, the company's shares rose 3 percent to $182.86, breaking through the latest milestone before retreating to close at $182.01. At the end of October, Apple briefly ceded the title of the world's most valuable company to Microsoft. However, a strong rally last November brought it back to the top spot, with only a handful of companies with market capitalizations of more than $1 trillion, including Tesla and Amazon. Google's parent company Alphabet and oil conglomerate Saudi Aramco are worth about $2 trillion, while Microsoft's is worth about $2.5 trillion. Apple shares rose more than 30 percent in 2021 as the company skilfully weathered the supply chain crisis and benefited from additional demand for iPhones, Macs and iPads during the pandemic.

Inflation in Turkey soared to its highest level

Inflation in Turkey has reached its highest level since Recep Tayyip Erdogan took office nearly 20 years ago as prices soared due to the president's controversial economic management. Data released by the Turkish Statistical Office on Monday showed that in December last year, the country's consumer price index (CPI) rose 36% year-on-year. This marked the highest level of consumer price increase since September 2002, when Turkey was waddling from the financial crisis that paved the way for Erdogan's Justice and Development Party (AKP) to a landslide victory in elections in November of the same year. That figure rose sharply from the official inflation rate of 21 percent last month after Erdogan ordered the central bank to cut interest rates several times in recent months, despite double-digit inflation.

The Philippine peso went from being the best currency in emerging asia to the worst in a week

As the seasonal boost from remittances faded, the Philippine peso went from being the best currency last December to the worst-performing emerging Asian currency. Strategists believe that the bearish momentum will continue. Last week, the Philippine peso fell by about 2 percent, erasing all gains in the first three weeks of December that made it stand out in the region. Nomura Holdings Inc and Barclays Plc. The peso is expected to lose more in the coming months. The Philippine peso faces dovish resistance from the central bank. The country's central bank left interest rates unchanged last month and hinted that it would maintain accommodative monetary policy, in stark contrast to the 2022 rate hike set by the Federal Reserve. It could also face pressure from a growing current-account deficit.

2. International Regulatory Developments

Biden began cracking down on the largest meat producer in the United States

President Joe Biden will crack down on some of the largest meat producers in the United States, including pushing for stricter "Made in America" labeling rules that could exacerbate tensions between the United States and trading partners. The Biden administration noted that the over-concentration of the U.S. meat industry's market is a key source of fragility in the country's food supply chain and one of the reasons for high inflation. The White House said four companies controlled 85 percent of the beef market, 70 percent of the pork market and 54 percent of the poultry market. "Farmers' share of profits has decreased, but U.S. consumer spending has increased — meat and poultry prices are now the single biggest contributor to rising food prices that people consume domestically," the White House said. And when there are too few companies that control such a large market share, our food supply chain is vulnerable. ”

Turkey ordered exporters to convert 25% of their earnings into lira

Turkey's requirement that exporters convert a quarter of their earnings into lira is the latest move by the government to increase foreign exchange reserves and support the national currency. A decree issued Monday by Turkey's monetary authority said the central bank would buy 25 percent of all goods export revenues whenever exporters received payments in dollars, euros or pounds. The measure is aimed at forcing companies to price some of their overseas sales revenues in their national currency, thereby increasing Turkey's foreign exchange reserves. Prior to this, the lira experienced a year of severe depreciation. Last year, the lira fell nearly half against the dollar as Turkish President Recep Tayyip Erdogan called on the central bank to lower its benchmark interest rate.

3. Green finance is related to ESG

The EU plans to classify nuclear energy as "sustainable development", with member states launching attacks

Germany, Austria and Luxembourg slammed a Brussels-bashing plan that classifies nuclear energy as a sustainable category in the EU's green investment labelling system. The Green Investment Labelling System is at the heart of Europe's plan to decarbonise the eurozone economy. German Economy Minister Robert Habeck said: "It is doubtful whether this 'greenwashing' behavior of the EU can be accepted by the financial markets. In our opinion, there is no need to add this item to the classification rule. Brussels' proposal is part of a so-called 'classified' list designed to help channel the billions of euros of investment needed to decarbonise the EU's economy. Austrian Climate and Energy Minister Leonore Gewessler said Vienna would consider suing the European Commission if nuclear energy was classified as a green energy source. Meanwhile, Luxembourg's energy minister, Claude Turmes, called the inclusion of nuclear energy on the list a "provocation."

Denmark wants to reduce the use of fossil fuels on domestic flights by 2030

The Danish government wants to reduce the use of fossil fuels in domestic air travel by 2030, the latest effort to meet its climate goals. In his annual speech for the New Year, Danish Prime Minister Mette Frederiksen said Denmark had recently proposed to increase investment in the green hydrogen industry, hoping to launch domestic flights using green fuels as early as 2025. It's the latest in a series of policies designed to help governments meet one of the world's most ambitious climate goals. Denmark plans to reduce carbon emissions by 70 percent from 1990 levels by 2030. In her speech, Fredrickson also pledged to impose a more streamlined emissions tax on businesses to ensure that the highest emitters pay the highest taxes.

4. Fintech and virtual currency, etc

After accusations from regulators, Binance promised to comply with Canada's restrictions

After a meeting with the Ontario Securities Commission, Binance said it would not allow Ontario users of its cryptocurrency trading platform to trade or open new accounts. The day before the commitment was made, the SFC publicly reprimanded Binance for telling its Ontario users that it could trade despite not registering with the securities regulator as a trading platform. To date, there are 6 cryptocurrency platforms registered in Ontario for trading, but none of them. Binance has now promised not to market its services to Ontario users.

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