It is expected to be a quieter week for economic news. Thank goodness. Traders need to catch a breath after a topsy-turvy five days of disappointing data from both sides of the world that sent global markets into a tailspin.
But there are still some numbers to keep our eyes on. Indonesia will report GDP figures for the second quarter. The economy probably grew 5% in the April to June quarter. It would represent a slight slowdown but nothing much to worry about.
The central bank of Australia will announce its latest-interest decision. Recent inflation numbers showed that the headline rate of inflation rose slightly but the underlying or core rate of inflation fell slightly. So, the Reserve Bank of Australia could play safe and keep its cash rate on hold.
Staying with the cost of money, the Reserve Bank of India is expected to keep interest rates steady next week, too. The Indian economy is growing strongly, and inflation remains sticky. So, there is little reason for the central bank to cut its benchmark rate, just yet.
Turning to China, the trade balance for July is likely to be yet another positive number of around US$90 billion. But that could be the symptom of a dysfunctional rather than a healthy economy. The trade surplus could be a sign that China is desperately exporting its production overcapacity, whilst falling imports could be a sign that the domestic economy is struggling.
On the results front
Restaurant Brands (NYSE: QSR) is one of the world’s largest quick-service restaurant companies. The owner of Burger King, Tim Hortons and Popeyes could provide some important insights into the spending power of global diners when it reports second quarter numbers. In April, it said system-wide sales grew 8.1% year on year. It expects to grow at a similar rate for the rest of the year. But the key could be pricing.
Staying with food, Yum China (NYSE: YUMC), which is the largest restaurant chain in China, could be an important barometer of Chinese household spending. In April, the operator of KFC and Pizza Hut said first-quarter revenue grew 6% despite a challenging market environment. The company said it is committed to opening 1,500 to 1,700 new stores in 2024.
Jollibee (NYSE: JBFCF) will serve up second-quarter figures. In May, it said revenue grew 11.3% that translated to a 13.7% rise in operating income. Jollibee has also set an ambitious target of trebling profits in five years, as it raises bets on coffee, tea and the China market to drive growth.
Weight watching
Amgen (Nasdaq: AMGN) will report second-quarter numbers. In the first three months of the year, the biotechnology outfit said product sales grew 22%. In May, Amgen said it will scrap its experimental weigh-loss pill but it will move ahead with the injection version of MariTide.
Two other players in the weight-loss space, namely, Novo Nordisk (NYSE: NVO) and Eli Lilly (NYSE: LLY) are also set to report quarterly earnings. In May, the Danish pharmaceutical giant said net profit rose 28% thanks to its weight-loss drug, Wegovy. Not to be outdone, Eli Lilly said first-quarter revenue jumped 26% thanks to insatiable demand for its weight-loss treatment Zepbound.
DBS Group (SGX: D05) will conclude the Singapore bank-reporting season. In May, Singapore’s largest bank reported a strong start to the year as first-quarter profit rose 15%. The bank said loans grew, and both fee income and treasury customer sales reached new highs. But as interest are set to head lower, the bank will probably need to look beyond net interest margins to drive earnings.
Other companies that are set to report include Walt Disney (NYSE: DIS), Singapore Exchange (SGX: S68) and Haw Par (SGX: H01).
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Disclosure: Haw Par is a component of DKIP. David owns shares in DBS Group and Singapore Exchange.
