Weekly Market Update - 2 January 2023

Next-Generation Chips

TSMC, the primary chipmaker for Apple, kicked off mass production of next-generation chips in a move to remain the linchpin of a critical technology fought over by governments from Washington to Beijing. South Korea’s chip production shrank for a fourth straight month and fell in November by the most since the global financial crisis. The drop in activity suggested a further cooling of overseas demand for tech components as the world economy slows.

Source: Bloomberg

Travel Demand Growing

Italian health authorities announced that they would begin testing all travelers from China for Covid after almost half of the passengers on two flights to Milan were found to have the virus. The US and other nations then announced their own new testing requirements for flights coming from China as the country abandons its Covid Zero policy. This comes as Chinese demand for holiday travel surged after the country announced that quarantine requirements would end in January, resulting in a 254% jump in flight bookings on Trip.com.

Source: Bloomberg

Ukrainian Strike

A Ukrainian strike on a Russian military facility in the occupied eastern town of Makiyivka killed 63 troops being housed there, Russia’s defense ministry said. It is one of the most significant losses acknowledged by Moscow, which rarely provides such figures. Meanwhile, Ukrainian President Volodymyr Zelenskiy warned that Russia is planning a protracted drone attack on Ukraine to “exhaust” the country’s energy infrastructure, air defenses and people.

Source: Bloomberg