The focus next week could be the US annual personal consumption and expenditure inflation rate (PCE) for May. It is supposedly the US Federal Reserve’s preferred inflation gauge. Over the last couple of months, it has held steady at 2.7%. The good news is that it isn’t going up. The bad news is that it is not coming down, either.
Inflation numbers are also due from Malaysia, Singapore and Indonesia. Consumer prices inflation in Malaysia has been somewhat muted. The latest reading of 1.8% has been below its 10-year average of 2%. However, Bank Negara Malaysia expects headline inflation of between 2% and 3.5% this year. The wider range considers the removal of subsidies for diesel and petrol.
Singapore has recorded its lowest inflation rate since September 2021. At 2.7%, the April rate is within the Monetary Authority of Singapore’s projected range of 2.5% to 3.5%. The main drivers of inflation were food, housing and utilities, and tuition.
Inflation in Indonesia also appears to be subdued. In May, it fell to a three-month low of 2.8%, which is within the central bank’s range of 1.5% to 3.5%. Despite the low inflation rate, the central bank seems reluctant to cut the cost of money in view of the weakness of the rupiah.
Staying in Asia, Vietnam is expected to register a growth rate of around 5%, retail sales growth could increase from 9.5% in May to 11.9% in June, and the inflation rate could be largely unchanged at about 4.5%.
Corporate news
NVIDIA (Nasdaq: NVDA) shareholders will gather for the company’s Annual General Meeting. Apart from high fiving each other, they will want to hear from the man who appears to be able to walk on water. Following the meteoric rise of Jensen Huang and the shares in the company that he runs, investors could be looking for clues as to whether they should hold or fold.
Elsewhere, FedEx (NYSE: FDX) will report full-year results on Tuesday. The company can be seen as a barometer of the US economy, given its exposure to e-commerce and business services both domestically and internationally. In March, FedEx posted a drop in revenue and profit. But it raised its dividend and announced that its board had approved a stock repurchase plan.
H&M (NYSE: NYSE: HNNMY) will report half-year numbers. The Swedish-based global clothing retailer posted significantly higher first-quarter profit. It also said that revenue in the early part of the second quarter was up 2% in local currencies.
Other companies in the news include Want Want China (SEHK: 0151) that could provide some insights into China’s cash-strapped consumers. Geely Automobile (SEHK: 0175) could reveal the impact of the ongoing electric-vehicle price war in China, and Takashimiya (NYSE: TKSHF) could tells us more about the spending pattern of Japanese households.
And finally, Jollibee (NYSE: JBFCY) will be holding its AGM. The company is one of 38 Philippine firms that has made it into the Fortune Southeast Asia 500 list. Did you know that Jollibee holds the master franchise of Tim Ho Wan in Asia Pacific? Did you also know that Jollibee owns The Coffee Bean & Tea Leaf restaurant chain? I wonder if Chickenjoy, Baked Char Siu Bao and Caramel Cold Brew Latte could be served at the annual get-together?
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Disclosure: David Kuo does not own any of the shares mentioned.
