With Donald Trump looking increasingly more chaotic by the day, “The Smart Look At The Week Ahead” has been revived to bring back some sanity into the way that we make investment decisions.
Trump together his Treasury Secretary, and even his Fed chair appointee, appear to be living on a different plant to the rest of us. So, the best thing that we can do is to focus on the facts and make decisions based on real data rather than wild distortions, exaggerations, untruths, and figments of Trump’s distortions.
A great deal of time next week could be spent dissecting Fed chair Kevin Warsh’s speech at Jackson Hole. Will he be brave enough to address the bond market sell-off? Will he touch on stubbornly-high inflation that has remained above the Fed’s target for years? Will he dare to talk about de-dollarisation and debasement? He will need to check with his boss first.
There will be another US jobs report that could indicate the unemployment rate is not that terrible. With the American unemployment rate at 4.1%, it should be low enough for the Fed to focus on controlling inflation rather than worry about achieving full employment.
The Reserve Bank of New Zealand will announce its latest interest-rate decision. In July, the central bank raised its cash rate by 0.25%. It was the first rate hike in three years. The bank also said further increases remain possible.
Bank Negara Malaysia will also announce its latest interest rate. At its July meeting, the central bank kept the overnight policy rate unchanged at 2.75%. The Monetary Policy Committee noted that the current policy stance should preserve price stability, whilst supporting steady economic growth.
As we near the tail-end of the earnings season, a couple of tech companies could still surprise the market. Dell Technologies (NYSE: DELL) has morphed into a pivotal player in the build out of AI infrastructure. The company has said that it has an order backlog that remains to be completed, as hyperscalers continue to spend aggressively.
Broadcom (Nasdaq: AVGO) appears to be in the right place at the right time. The chip maker could announce a jump in both third-quarter revenue and earnings, as demand for AI semiconductors shows little sign of abating.
Chinese EV maker NIO (SGX: NIO) has been delivering more cars. So, second-quarter revenue should be strong. But an aggressive price war in the EV space could put pressure on margins. Consequently, a bottom-line profit could still be out of reach, for now.
Trip.com (Nasdaq: TCOM) has been fined by China’s market regulator for abusing its market dominance by forcing hotels into exclusive arrangements. The slap on the wrist will hurt. But it could be the general slowdown in domestic travel that could slow the travel portal’s revenue growth.
Hong Kong property developer Sino Land (SEHK: 0083) could be one to watch when it reports full-year results. According to a Bloomberg report, Hong Kong is witnessing a marked resurgence in its expatriate population. It seems that foreign professionals are being lured back to the Special Administrative Region of China by a combination of increased career prospects, a bustling city atmosphere and an attractive low-tax environment.
David owns shares in Sino Land through his DKIP portfolios.
